,,ii #aaf? ,,congress #a/ ,session ,s4 #hfg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,m>* #bf1 #bjai ,ms4 ,hassan 7= h]self1 ,mr4 ,durb91 & ,mr4 ,br[n7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,a ,,bill ,to protect /ud5ts ( in/itutions ( high] education & ! taxpay] inve/m5t 9 in/itutions ( high] education by improv+ ov]sight & acc\ntability ( in/itutions ( high] education1 p>ticul>ly =-pr(it colleges1 improv+ protections = /ud5ts & borr[]s1 & ensur+ ! integrity ( po/second>y education programs1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,prev5t+ ,risky ,op]ations f ,?reat5+ ! ,education & ,c>e] ,trajectories ( ,/ud5ts ,act ( #bjai or ! ,,protect ,/ud5ts ,act ( #bjai4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,ref]5ces4 ,sec4 #c4 ,effective date4 ,sec4 #d4 ,def9itions4 ,,title ,i--,=-pr(it in/itutions ,sec4 #aja4 ,clos+ ! ,,gi ,bill loophole & re/or+ ! #he_/ae rule = =-pr(it in/itutions4 ,sec4 #ajb4 ,process = =-pr(it in/itutions to conv]t to nonpr(it or public /atus4 ,sec4 #ajc4 ,=-,pr(it ,education ,ov]sight ,coord9ation ,committee4 ,,title ,,ii--,/ud5t & borr[] protections ,sec4 #bja4 ,ga9ful employm5t programs4 ,sec4 #bjb4 ,prohibition on in/itutions limit+ /ud5t legal action4 ,sec4 #bjc4 ,en=cem5t unit e/abli%$ 9 ! ,(fice ( ,f$]al ,/ud5t ,aid4 ,sec4 #bjd4 ,e/abli%m5t & ma9t5ance ( compla9t resolution & track+ sy/em4 ,sec4 #bje4 ,borr[] def5se to repaym5t4 ,,title ,,iii--,ensur+ integrity at in/itutions ( high] education ,sec4 #cja4 ,re/rictions on s\rces ( funds = recruit+ & m>ket+ activities4 ,sec4 #cjb4 ,/r5g!n+ ! inc5tive comp5sation ban4 ,sec4 #cjc4 ,def9ition ( nonpr(it in/itution ( high] education4 ,sec4 #cjd4 ,def9ition ( public in/itution ( high] education4 ,sec4 #cje4 ,enhanc$ civil p5alties1 ,/ate en=cem5t1 & private "r ( action4 ,sec4 #cjf4 ,sub/antial misrepres5tation prohibit$4 #b4 ,ref]5ces ,except z o!rwise expressly provid$1 :5ev] 9 ?is ,act an am5dm5t or repeal is express$ 9 t]ms ( an am5dm5t to1 or repeal (1 a section or o!r provision1 ! ref]5ce %all be consid]$ to be made to a section or o!r provision ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajja et seq474 #c4 ,effective date ,except z o!rwise specifi$1 ?is ,act1 & ! am5dm5ts made by ?is ,act1 %all take effect beg9n+ on ,july #a1 #bjbj4 #d4 ,def9itions 7a7 ,9 g5]al ,section #ajc 7#bj ,u4,s4,c4 #ajjc7 is am5d$-- 7#a7 by r$esignat+ p>agraphs 7#ae7 ?r\gh 7#bb71 7#bc71 & 7#bd7 z p>agraphs 7#ag7 ?r\gh 7#bd71 7#bf71 & 7#bg72 7#b7 by ins]t+ aft] p>agraph 7#ad7 ! foll[+3 7#af7 ,rev5ue %>+ arrangem5ts ,! t]m rev5ue %>+ arrangem5t means an arrangem5t betwe5 an in/itution ( high] education & a ?ird p>ty contractor "u :i*-- 7,a7 ! ?ird p>ty contractor provides1 exclusively or nonexclusively1 educational products or s]vices to prospective /ud5ts or /ud5ts att5d+ ! in/itution ( high] education2 & 7,b7 ! ?ird p>ty contractor or in/itution ( high] education pays a fee or provides o!r mat]ial b5efits1 includ+ rev5ue- or pr(it-%>+1 to ! in/itution ( high] education or ?ird p>ty contractor 9 connection ) ! educational products or s]vices provid$ to prospective /ud5ts or /ud5ts att5d+ ! in/itution ( high] education4 2 & 7#c7 by ins]t+ aft] p>agraph 7#bd71 z r$esignat$ by p>agraph 7#a71 ! foll[+3 7#be7 ,?ird p>ty contractor ,! t]m ?ird p>ty contractor means any ,/ate1 p]son1 or entity t ent]s into a contract or agreem5t1 includ+ a rev5ue %>+ arrangem5t1 ) an eligible in/itution ( high] education to act on ! in/itution's behalf1 includ+ any entity t-- 7,a7 sells ! names ( prospective /ud5ts 7also kn[n z a lead g5]ator72 or 7,b7 (f]s s]vices includ+ recruit+1 f9ancial aid packag+1 curriculum developm5t1 facilities managem5t1 hir+ & ov]sight ( faculty1 & ! provision ( /ud5t s]vices repres5tatives1 job placem5t c\nselors1 or o!r employees 7also kn[n z an onl9e program manag]74 4 7b7 ,r5am+ propriet>y in/itutions =-,pr(it in/itutions 7#a7 ,9 g5]al ,section #ajb 7#bj ,u4,s4,c4 #ajjb7 is am5d$-- 7,a7 9 subsection 7a77#a77;,a71 by /rik+ propriet>y in/itution & ins]t+ =-pr(it in/itution2 & 7,b7 9 subsection 7b7-- 7i7 9 ! subsection head+1 by /rik+ ,propriet>y & ins]t+ ,=-pr(it2 7ii7 9 ! matt] prec$+ subp>agraph 7,a7 ( p>agraph 7#a71 by /rik+ propriet>y & ins]t+ =-pr(it2 & 7iii7 9 p>agraph 7#b71 by /rik+ propriet>y ea* place ! t]m appe>s & ins]t+ =-pr(it4 7#b7 ,con=m+ am5dm5ts 7,a7 ,dep>tm5t ( ,education ,organization ,act ,! ,dep>tm5t ( ,education ,organization ,act 7#bj ,u4,s4,c4 #cdja et seq47 is am5d$-- 7i7 9 section #bai 7#bj ,u4,s4,c4 #cdbf7-- 7,i7 9 ! section head+1 by /rik+ ,propriet>y & ins]t+ ,=-pr(it2 7,,ii7 by /rik+ ,propriet>y ea* place ! t]m appe>s & ins]t+ ,=-,pr(it2 & 7,,iii7 by /rik+ propriet>y ea* place ! t]m appe>s & ins]t+ =-pr(it2 & 7ii7 9 section #a1 by /rik+ ! item relat+ to section #bai 9 ! table ( cont5ts & ins]t+ ! foll[+3 #bai4 ,liaison = ,=-,pr(it ,in/itutions ( ,high] ,education4 4 7,b7 ,high] ,education ,act ( #aife ,! ,act 7#bj ,u4,s4,c4 #ajja et seq47 is am5d$-- 7i7 9 ea* ( sections #dce & #ddc7;b77#h71 by /rik+ propriet>y ea* place ! t]m appe>s & ins]t+ =-pr(it2 & 7ii7 9 section #hjg7;d77#a77;,a77iii71 by /rik+ propriet>y & ins]t+ =-pr(it4 7,c7 ,sci5tific & ,advanc$-,te*nology ,act ( #aiib ,section #c7;j77#b77;,b7 ( ! ,sci5tific & ,advanc$-,te*nology ,act ( #aiib 7#bj ,u4,s4,c4 #ahfb;i7j77#b77;,b77 is am5d$ by /rik+ propriet>y in/itution & ins]t+ =-pr(it in/itution4 7#c7 ,ref]5ces 7,a7 ,propriet>y in/itution ,any ref]5ce to a propriet>y in/itution1 z def9$ 9 section #ajb7;b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajjb7 on ! day be=e ! date ( enactm5t ( ?is ,act1 9 any law1 rule1 regulation1 c]tificate1 directive1 in/ruction1 or o!r (ficial pap] 9 =ce on ! date ( enactm5t ( ?is ,act %all be consid]$ to ref] & apply to a =-pr(it in/itution1 z def9$ 9 section #ajb7;b7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajjb7;b771 z am5d$ by ?is ,act4 7,b7 ,liaison ,any ref]5ce to ! ,liaison = ,propriet>y ,in/itutions ( ,high] ,education 9 any law1 rule1 regulation1 c]tificate1 directive1 in/ruction1 or o!r (ficial pap] 9 =ce on ! date ( enactm5t ( ?is ,act %all be consid]$ to ref] & apply to ! ,liaison = ,=-,pr(it ,in/itutions ( ,high] ,education e/abli%$ "u section #bai ( ! ,dep>tm5t ( ,education ,organization ,act 7#bj ,u4,s4,c4 #cdja71 z am5d$ by ?is ,act4 ,i ,=-pr(it in/itutions #aja4 ,clos+ ! ,,gi ,bill loophole & re/or+ ! #he_/ae rule = =-pr(it in/itutions 7a7 ,9 g5]al ,section #ajb7;b7 7#bj ,u4,s4,c4 #ajjb71 z am5d$ by section #d7;b71 is fur!r am5d$-- 7#a7 9 p>agraph 7#a7-- 7,a7 9 subp>agraph 7,d71 by /rik+ & aft] ! semicolon2 & 7,b7 9 subp>agraph 7,e71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7,c7 by add+ at ! end ! foll[+3 7,f7 meets ! requirem5ts ( p>agraph 7#b74 2 7#b7 by r$esignat+ p>agraph 7#b7 z p>agraph 7#c72 & 7#c7 by ins]t+ aft] p>agraph 7#a7 ! foll[+3 7#b7 ,rev5ue s\rces 7,a7 ,9 g5]al ,9 ord] to qualify z a =-pr(it in/itution ( high] education "u ?is subsection1 an in/itution %all d]ive n less ?an #ae p]c5t ( ! in/itution's rev5ues f s\rces o!r ?an ,f$]al education assi/ance funds1 z calculat$ 9 accordance ) subp>agraphs 7,b7 & 7,c74 7,b7 ,f$]al education assi/ance funds ,9 ?is p>agraph1 ! t]m ,f$]al education assi/ance funds means any ,f$]al f9ancial assi/ance provid$1 "u ?is ,act or any o!r ,f$]al law1 ?r\gh a grant1 contract1 subsidy1 loan1 gu>antee1 insurance1 or o!r means to an in/itution ( high] education1 includ+ ,f$]al f9ancial assi/ance t is disburs$ or deliv]$ to an in/itution or on behalf ( a /ud5t or to a /ud5t to be us$ to att5d ! in/itution1 except t su* t]m %all n include any mon?ly h\s+ /ip5d provid$ "u ! ,po/-#i_/aa ,vet]ans ,educational ,assi/ance ,program "u *apt] #cc ( title #ch1 ,unit$ ,/ates ,code4 7,c7 ,implem5tation ( non-,f$]al rev5ue requirem5t ,9 mak+ calculations "u subp>agraph 7,a71 an in/itution ( high] education %all-- 7i7 use ! ca% basis ( acc\nt+2 7ii7 consid] z rev5ue only ^? funds g5]at$ by ! in/itution f-- 7,i7 tuition1 fees1 & o!r in/itutional *>ges = /ud5ts enroll$ 9 programs eligible = assi/ance "u title ,,iv2 7,,ii7 activities conduct$ by ! in/itution t are necess>y = ! education & tra9+ ( ! in/itution's /ud5ts1 if su* activities are-- 7aa7 conduct$ on campus or at a facility "u ! control ( ! in/itution2 7bb7 p]=m$ "u ! sup]vision ( a memb] ( ! in/itution's faculty2 & 7cc7 requir$ to be p]=m$ by all /ud5ts 9 a specific educational program at ! in/itution2 & 7,,iii7 a contractual arrangem5t ) a ,f$]al ag5cy = ! purpose ( provid+ job tra9+ to l[-income individuals :o are 9 ne$ ( su* tra9+2 7iii7 presume t any ,f$]al education assi/ance funds t are disburs$ or deliv]$ to an in/itution on behalf ( a /ud5t or directly to a /ud5t w be us$ to pay ! /ud5t's tuition1 fees1 or o!r in/itutional *>ges1 reg>dless ( :e!r ! in/itution cr$its su* funds to ! /ud5t's acc\nt or pays su* funds directly to ! /ud5t1 except to ! ext5t t ! /ud5t's tuition1 fees1 or o!r in/itutional *>ges are satisfi$ by-- 7,i7 grant funds provid$ by an outside s\rce t-- 7aa7 has no affiliation ) ! in/itution2 & 7bb7 %>es no employees1 executives1 or bo>d memb]s ) ! in/itution2 7,,ii7 funds provid$ "u a contractual arrangem5t ) a ,f$]al1 ,/ate1 or local gov]nm5t ag5cy = ! purpose ( provid+ job tra9+ to l[-income individuals :o are 9 ne$ ( t tra9+2 or 7,,iii7 in/itutional s*ol>%ips describ$ 9 clause 7v72 7iv7 include no loans made by an in/itution ( high] education z rev5ue to ! s*ool1 except = paym5ts made by /ud5ts on su* loans2 7v7 include a s*ol>%ip provid$ by ! in/itution-- 7,i7 only if ! s*ol>%ip is 9 ! =m ( monet>y aid bas$ ^u ! academic a*ievem5ts or f9ancial ne$ ( /ud5ts1 disburs$ to qualifi$ /ud5t recipi5ts dur+ ea* fiscal ye> f an e/abli%$ re/rict$ acc\nt2 & 7,,ii7 only to ! ext5t t funds 9 t acc\nt repres5t designat$ funds1 or income e>n$ on su* funds1 f an outside s\rce t-- 7aa7 has no affiliation ) ! in/itution2 & 7bb7 %>es no employees1 executives1 or bo>d memb]s ) ! in/itution2 & 7vi7 exclude f rev5ues-- 7,i7 ! am\nt ( funds ! in/itution receiv$ "u "p ,c ( title ,,iv1 unless ! in/itution us$ ^? funds to pay a /ud5t's in/itutional *>ges2 7,,ii7 ! am\nt ( funds ! in/itution receiv$ "u subp>t #d ( "p ,a ( title ,,iv2 7,,iii7 ! am\nt ( funds provid$ by ! in/itution z mat*+ funds = any ,f$]al program2 7,,iv7 ! am\nt ( ,f$]al education assi/ance funds provid$ to ! in/itution to pay in/itutional *>ges = a /ud5t t 7 refund$ or return$2 & 7,v7 ! am\nt *>g$ = books1 supplies1 & equipm5t1 unless ! in/itution includes t am\nt z tuition1 fees1 or o!r in/itutional *>ges4 7,d7 ,report to congress ,n lat] ?an ,july #a1 #bjbj1 & by ,july #a ( ea* succe$+ ye>1 ! ,secret>y %all submit to ! au?oriz+ committees a report t conta9s1 = ea* =-pr(it in/itution ( high] education t receives assi/ance "u title ,,iv & z provid$ 9 ! audit$ f9ancial /atem5ts submitt$ to ! ,secret>y by ea* in/itution pursuant to ! requirem5ts ( section #dhg7;c7-- 7i7 ! am\nt & p]c5tage ( su* in/itution's rev5ues receiv$ f ,f$]al education assi/ance funds2 & 7ii7 ! am\nt & p]c5tage ( su* in/itution's rev5ues receiv$ f o!r s\rces4 4 7b7 ,repeal ( exi/+ requirem5ts ,section #dhg 7#bj ,u4,s4,c4 #ajid7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by /rik+ p>agraph 7#bd72 7,b7 by r$esignat+ p>agraphs 7#be7 ?r\gh 7#bi7 z p>agraphs 7#bd7 ?r\gh 7#bh71 respectively2 7,c7 9 p>agraph 7#bd77;,a77ii7 7z r$esignat$ by subp>agraph 7,b771 by /rik+ subsection 7e7 & ins]t+ subsection 7d72 & 7,d7 9 p>agraph 7#bf7 7z r$esignat$ by subp>agraph 7,b771 by /rik+ subsection 7h7 & ins]t+ subsection 7g72 7#b7 by /rik+ subsection 7d72 7#c7 by r$esignat+ subsections 7e7 ?r\gh 7j7 z subsections 7d7 ?r\gh 7i71 respectively2 7#d7 9 subsection 7d7 7z r$esignat$ by p>agraph 7#c771 by /rik+ 7a77#be7 & ins]t+ 7a77#bd72 7#e7 9 subsection 7f77#a7 7z r$esignat$ by p>agraph 7#c771 by /rik+ subsection 7e77#b7 & ins]t+ subsection 7d77#b72 & 7#f7 9 subsection 7g77#a7 7z r$esignat$ by p>agraph 7#c771 by /rik+ subsection 7a77#bg7 9 ! matt] prec$+ subp>agraph 7,a7 & ins]t+ subsection 7a77#bf74 7c7 ,con=m+ am5dm5ts ,! ,act 7#bj ,u4,s4,c4 #ajja et seq47 is am5d$-- 7#a7 9 section #aeb 7#bj ,u4,s4,c4 #ajai;a7-- 7,a7 9 subsection 7a77#a77;,a71 by /rik+ subsections 7a77#bg7 & 7h7 ( section #dhg & ins]t+ subsections 7a77#bf7 & 7g7 ( section #dhg2 & 7,b7 9 subsection 7b77#a77;,b77i77,i71 by /rik+ section #dhg7;e7 & ins]t+ section #dhg7;d72 7#b7 9 section #aec7;c77#c7 7#bj ,u4,s4,c4 #ajai;b7c77#c771 by /rik+ section #dhg7;a77#be7 ea* place ! t]m appe>s & ins]t+ section #dhg7;a77#bd72 7#c7 9 section #dif7;c77#c77;,a7 7#bj ,u4,s4,c4 #ajii;b7c77#c77;,a771 by /rik+ section #dhg7;f7 & ins]t+ section #dhg7;e72 & 7#d7 9 section #dih7k77#a7 7#bj ,u4,s4,c4 #ajii;c7k77#a771 by /rik+ section #dhg7;f7 & ins]t+ section #dhg7;e74 #ajb4 ,process = =-pr(it in/itutions to conv]t to nonpr(it or public /atus 7a7 ,conv]sion process ,"p ,b ( title ,i 7#bj ,u4,s4,c4 #ajaa et seq47 is fur!r am5d$ by add+ at ! end ! foll[+3 #abd4 ,process = =-pr(it in/itutions to conv]t to nonpr(it or public /atus 7a7 ,det]m9ation 7#a7 ,9 g5]al ,9 any case :]e ! ,secret>y det]m9es t a =-pr(it in/itution ( high] education1 z def9$ 9 section #ajb7;b71 meets ! applicable requirem5ts ( subsection 7b71 ! ,secret>y %all approve ! conv]sion ( ! in/itution ( high] education to a nonpr(it or public in/itution ( high] education = n m ?an a #e-ye> p]iod4 7#b7 ,p]iodic review ,= ea* =-pr(it in/itution t is conv]t$ "u ?is section to a nonpr(it or public in/itution ( high] education1 ! ,secret>y %all-- 7,a7 review ! det]m9ation n less ?an once e #e ye>s2 & 7,b7 at ! conclusion ( a review describ$ 9 subp>agraph 7,a7-- 7i7 9 a case :]e ! ,secret>y det]m9es ! in/itution cont9ues to meet ! requirem5ts ( ?is section1 approve ! in/itution's /atus z a nonpr(it in/itution ( high] education or public in/itution ( high] education = an additional p]iod n to exce$ #e ye>s2 & 7ii7 9 a case :]e ! ,secret>y det]m9es ! in/itution no long] meets ! requirem5ts1 classify ! in/itution z a =-pr(it in/itution4 7b7 ,requirem5ts ,to be eligible to conv]t to a nonpr(it or public in/itution ( high] education1 a =-pr(it in/itution ( high] education %all submit an application to ! ,secret>y t demon/rates t-- 7#a7 ! in/itution1 z ( ! date ( ! application1 meets ! def9ition ( a nonpr(it or public in/itution ( high] education2 7#b7 ! in/itution has n acquir$ any o!r in/itution ( high] education 7z def9$ 9 section #ajb71 or a significant portion ( ! assets ( su* o!r in/itution1 = m ?an ! value ( su* o!r in/itution or su* assets1 respectively1 z det]m9$ 9 accordance ) subsection 7d72 & 7#c7 9 ! case ( an in/itution t has be5 acquir$ by ano!r p>ty1 su* in/itution is n controll$ by su* p>ty4 7c7 ,transition p]iod ,a =-pr(it in/itution ( high] education approv$ = conv]sion "u subsection 7a7 %all be subject to any rules & regulations t apply to =-pr(it in/itutions ( high] education1 z def9$ 9 section #ajb7;b71 = a m9imum #e-ye> p]iod aft] conv]sion1 :i* may be ext5d$ by ! ,secret>y if ! ,secret>y id5tifies a reason = conc]n relat+ to ! in/itution's conv]t$ /atus4 7d7 ,value ,! t]m value1 ) respect to an acquisition "u subsection 7b77#b7-- 7#a7 includes ! value ( any ongo+ relation%ip 7includ+ any contract1 agreem5t1 lease1 or o!r arrangem5t betwe5 ! acquir+ in/itution & ! acquir$ in/itution7 betwe5 affiliates1 z def9$ 9 section #ahj4ije ( title #b1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( enactm5t ( ! ,,protect ,/ud5ts ,act ( #bjai2 & 7#b7 may be demon/rat$ ?r\gh-- 7,a7 ?ird-p>ty valuation2 7,b7 indep5d5t f9anc+ ( ! acquisition bas$ ^u ! assets acquir$2 or 7,c7 full & op5 competition 9 ! acquisition1 z su* t]m is def9$ 9 section #b4aja7;b7 ( title #dh1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( ! enactm5t ( ! ,,protect ,/ud5ts ,act ( #bjai1 ( s]vices or assets4 7e7 ,publication 7#a7 ,application ,be=e ! ,secret>y may approve ! conv]sion ( an in/itution ( high] education "u subsection 7a71 ! ,secret>y %all publi% ! application ( ! in/itution 9 ! ,f$]al ,regi/] ) a notice & comm5t p]iod ( n less ?an #fj days4 7#b7 ,det]m9ation ,! ,secret>y %all publi% ea* det]m9ation on an application = conv]sion "u ?is section1 & ! reasons = su* det]m9ation1 9 ! ,f$]al ,regi/]4 7f7 ,tax exempt /atus ,9 c>ry+ out ?is section1 ! ,secret>y may consid] ! nonpr(it corporation /atus "u ,/ate law or ! tax exempt /atus ( an in/itution ( high] education "u section #eja7;c77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 b %all n use su* /atuses z ! sole det]m9+ factor = approval "u subsection 7a74 7g7 ,public repres5tation & m>ket+ ( nonpr(it /atus ,a =-pr(it in/itution ( high] education t receives assi/ance "u title ,,iv t is seek+ to conv]t "u ?is section %all n promote or m>ket itself1 9 any mann]1 z a nonpr(it in/itution ( high] education until-- 7#a7 ! ,secret>y has approv$ ! conv]sion ( ! in/itution to a nonpr(it in/itution "u ?is section2 7#b7 ! ,commission] ( ,int]nal ,rev5ue has approv$ ! in/itution z tax exempt = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf & ! in/itution is an organization describ$ 9 clause 7ii7 or 7vi7 ( section #agj7;b77#a77;,a7 ( su* ,code2 & 7#c7 a nationally recogniz$ accr$it+ ag5cy or association recogniz$ by ! ,secret>y pursuant to section #dif has approv$ ! nonpr(it /atus ( ! in/itution4 4 7b7 ,review & en=cem5t process 7#a7 ,9 g5]al ,section #dhg7;c77#a7 ( ! ,act 7#bj ,u4,s4,c4 #ajid7;c77#a77 is am5d$-- 7,a7 by r$esignat+ subp>agraphs 7,b7 ?r\gh 7,i7 z subp>agraphs 7,c7 ?r\gh 7,j71 respectively2 & 7,b7 by ins]t+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 7i7 a requirem5t t an in/itution ( high] education %all use ! same qualifi$1 indep5d5t organization or p]son1 9 accordance ) /&>ds e/abli%$ by ! ,comptroll] ,g5]al = ! audit ( gov]nm5tal organizations1 programs1 & functions1 & z prescrib$ 9 regulations ( ! ,secret>y1 = bo? ! f9ancial & compliance audits requir$ = a giv5 ye> "u subp>agraph 7,a72 7ii7 a requirem5t t ! qualifi$1 indep5d5t organization or p]son *os5 to conduct ! annual f9ancial & compliance audits "u subp>agraph 7,a7 %all docum5t1 9 ! audit1 any transactions or relation%ips t may conflict ) an in/itution's /atus z a nonpr(it in/itution ( high] education or public in/itution ( high] education2 & 7iii7 9 accordance ) section #dhi;,a1 9 any case :]e ! ,secret>y det]m9es1 aft] provid+ an in/itution ) reasonable notice & an opportunity = a he>+1 t ! in/itution is classifi$ z a public in/itution ( high] education or a nonpr(it in/itution = purposes ( ?is ,act b is 9 violation (1 or has fail$ to c>ry out1 any requirem5ts relat+ to su* nonpr(it or public /atus 9 accordance ) p>agraphs 7#ac7 & 7#ae7 ( section #ajc or section #abd1 a process ?r\gh :i* ! ,secret>y may-- 7,i7 limit1 susp5d1 or t]m9ate ! in/itution's p>ticipation 9 any program "u ?is title "u section #dhi;,a7b77#a72 7,,ii7 impose a civil p5alty "u section #dhi;,a7c72 or 7,,iii7 take an em]g5cy action "u section #dih;,a7d7 aga9/ an in/itution4 2 7#b7 ,con=m+ am5dm5ts ,section #dhg7;i7 7#bj ,u4,s4,c4 #ajid7;i771 z r$esignat$ by section #aja7;b77#c71 is fur!r am5d$-- 7,a7 by /rik+ subsection 7c77#a77;,d712 & 7,b7 by ins]t+ or subsection 7b77#a7 or 7c7 ( section #dhi;,a aft] ( ?is section4 #ajc4 ,=-,pr(it ,education ,ov]sight ,coord9ation ,committee ,"p ,b ( title ,i 7#bj ,u4,s4,c4 #ajaa et seq471 z am5d$ by section #ajb1 is fur!r am5d$ by add+ at ! end ! foll[+3 #abe4 ,=-,pr(it ,education ,ov]sight ,coord9ation ,committee 7a7 ,def9itions ,9 ?is section3 7#a7 ,executive (fic] ,! t]m executive (fic]1 ) respect to a =-pr(it in/itution t is a publicly trad$ corporation1 means-- 7,a7 ! presid5t ( su* corporation2 7,b7 a vice presid5t ( su* corporation :o is 9 *>ge ( a pr9cipal bus9ess unit1 division1 or function ( su* corporation1 su* z sales1 adm9i/ration1 or f9ance2 or 7,c7 any o!r (fic] or p]son :o p]=ms a policy-mak+ function = su* corporation4 7#b7 ,f$]al education assi/ance funds ,! t]m ,f$]al education assi/ance funds has ! mean+ giv5 ! t]m 9 section #ajb7;b77#b77;,b74 7#c7 ,=-pr(it in/itution ,! t]m =-pr(it in/itution-- 7,a7 means a =-pr(it in/itution ( high] education z def9$ 9 section #ajb7;b77#b72 & 7,b7 includes a =m] =-pr(it in/itution ( high] education t has be5 approv$ = conv]sion "u section #abd b is /ill 9 ! transition p]iod requir$ "u section #abd7;c74 7#d7 ,private education loan ,! t]m private education loan-- 7,a7 means a loan provid$ by a private educational l5d] 7z def9$ 9 section #adj7;a7 ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afej7;a777 t-- 7i7 is n made1 insur$1 or gu>ante$ "u title ,,iv2 7ii7 is issu$ expressly = po/second>y educational exp5ses to a borr[]1 reg>dless ( :e!r ! loan is provid$ ?r\gh ! educational in/itution t ! subject /ud5t att5ds or directly to ! borr[] f ! private educational l5d]2 & 7iii7 is n made1 insur$1 or gu>ante$ "u title ,,vii or title ,,viii ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bib et seq4 & #bif et seq472 & 7,b7 does n include an ext5sion ( cr$it "u an op5 end consum] cr$it plan1 a rev]se mortgage transaction1 a resid5tial mortgage transaction1 or any o!r loan t is secur$ by real prop]ty or a dwell+4 7#e7 ,recruit+ & m>ket+ activities ,! t]m recruit+ & m>ket+ activities means ! recruit+ & m>ket+ activities describ$ 9 section #abf7;d77#b74 7#f7 ,/ate approval ag5cy ,! t]m ,/ate approval ag5cy means any ,/ate ag5cy t det]m9es :e!r an in/itution ( high] education is legally au?oriz$ )9 su* ,/ate to provide a program ( education beyond second>y education4 7#g7 ,vet]ans s]vice organization ,! t]m vet]ans s]vice organization means an organization recogniz$ by ! ,secret>y ( ,vet]ans ,affairs = ! repres5tation ( vet]ans "u section #eijb ( title #ch1 ,unit$ ,/ates ,code4 7b7 ,e/abli%m5t ( committee 7#a7 ,e/abli%m5t ,!re is e/abli%$ 9 ! executive bran* a committee to be kn[n z ! ,=-,pr(it ,education ,ov]sight ,coord9ation ,committee 7ref]r$ to 9 ?is section z ! ,committee7 & to be compos$ ( ! head 7or ! designee ( su* head7 ( ea* ( ! foll[+ ,f$]al entities3 7,a7 ,! ,dep>tm5t ( ,education4 7,b7 ,! ,bureau ( ,consum] ,f9ancial ,protection4 7,c7 ,! ,dep>tm5t ( ,ju/ice4 7,d7 ,! ,securities & ,ex*ange ,commission4 7,e7 ,! ,dep>tm5t ( ,def5se4 7,f7 ,! ,dep>tm5t ( ,vet]ans ,affairs4 7,g7 ,! ,f$]al ,trade ,commission4 7,h7 ,! ,dep>tm5t ( ,labor4 7,i7 ,! ,int]nal ,rev5ue ,s]vice4 7,j7 ,! en=cem5t unit ( ! ,p]=mance-,bas$ ,organization e/abli%$ "u section #ada7;g74 7,k7 ,at ! discretion ( ! ,*airp]son ( ! ,committee1 any o!r relevant ,f$]al ag5cy or dep>tm5t4 7#b7 ,purposes ,! ,committee %all h ! foll[+ purposes3 7,a7 ,coord9ate ,f$]al ov]sight ( =-pr(it in/itutions to-- 7i7 improve en=cem5t ( applicable ,f$]al laws & regulations2 7ii7 increase acc\ntability ( =-pr(it in/itutions to /ud5ts & taxpay]s2 & 7iii7 ensure ! promotion ( quality education programs4 7,b7 ,coord9ate ,f$]al activities to protect /ud5ts f unfair1 deceptive1 abusive1 une?ical1 fraudul5t1 or pr$atory practices1 policies1 or proc$ures ( =-pr(it in/itutions4 7,c7 ,enc\rage in=mation %>+ among ag5cies relat$ to ,f$]al inve/igations1 audits1 program reviews1 inquiries1 compla9ts1 f9ancial /atem5ts1 & o!r in=mation relevant to ! ov]sight ( =-pr(it in/itutions4 7,d7 ,develop b9d+ memor&a ( und]/&+ t ! ,f$]al entities repres5t$ on ! committee w use reg>d+ ! %>+ ( in=mation to ex]cise ! ov]sight describ$ 9 ?is section4 7,e7 ,increase coord9ation & coop]ation betwe5 ,f$]al & ,/ate ag5cies1 includ+ ,/ate ,attorneys ,g5]al & ,/ate approval ag5cies1 ) respect to improv+ ov]sight & acc\ntability ( =-pr(it in/itutions4 7,f7 ,develop be/ practices & consi/5cy among ,f$]al & ,/ate ag5cies 9 ! dissem9ation ( consum] in=mation reg>d+ =-pr(it in/itutions to ensure t /ud5ts1 p>5ts1 & o!r /akehold]s h easy access to su* in=mation4 7#c7 ,memb]%ip 7,a7 ,designees ,= any designee describ$ 9 p>agraph 7#a71 ! head ( ! memb] entity %all appo9t a high-level (ficial :o ex]cises significant decision-mak+ au?ority = ! ov]sight or inve/igatory activities & responsibilities relat$ to =-pr(it in/itutions ( ! respective memb] entity4 7,b7 ,*airp]son ,! ,secret>y ( ,education or ! designee ( su* ,secret>y %all s]ve z ! ,*airp]son ( ! ,committee4 7,c7 ,committee support ,! head ( ea* entity describ$ 9 p>agraph 7#a7 %all ensure appropriate /aff & (ficials ( su* entity are available to support ! ,committee-relat$ "w ( su* entity4 7c7 ,meet+s 7#a7 ,committee meet+s ,! memb]s ( ! ,committee %all meet regul>ly1 b n less ?an once dur+ ea* qu>t] ( ea* fiscal ye>1 to c>ry out ! purposes describ$ 9 subsection 7b77#b74 7#b7 ,meet+s ) ,/ate ag5cies & /akehold]s ,! ,committee %all meet n less ?an once ea* fiscal ye>1 & %all o!rwise int]act regul>ly1 ) ,/ate ,attorneys ,g5]al1 ,/ate approval ag5cies1 vet]ans s]vice organizations1 & consum] advocates to c>ry out ! purposes describ$ 9 subsection 7b77#b74 7d7 ,director ,! ,*airp]son %all appo9t a full-"t executive director to support ! ,committee & may appo9t & fix ! pay ( additional /aff z ! ,*airp]son consid]s appropriate4 7e7 ,report 7#a7 ,9 g5]al ,! ,committee %all submit a report ea* ye> to ! au?oriz+ committees & any o!r committee ( ,congress t ! ,committee det]m9es appropriate4 7#b7 ,public access ,! report describ$ 9 p>agraph 7#a7 %all be made available to ! public 9 a mann] t is easily accessible to p>5ts1 /ud5ts1 & o!r /akehold]s1 9 accordance ) ! be/ practices develop$ "u subsection 7b77#b77;,f74 7#c7 ,cont5ts 7,a7 ,9 g5]al ,! report %all include-- 7i7 an acc\nt+ ( any action 7z def9$ 9 subp>agraph 7,c77 tak5 by ! ,f$]al ,gov]nm5t1 any memb] entity ( ! ,committee1 or a ,/ate-- 7,i7 to en=ce ,f$]al or ,/ate laws & regulations applicable to =-pr(it in/itutions2 7,,ii7 to hold =-pr(it in/itutions acc\ntable to /ud5ts & taxpay]s2 & 7,,iii7 to promote quality education programs2 7ii7 a summ>y ( compla9ts aga9/ ea* =-pr(it in/itution receiv$ by any memb] entity ( ! ,committee2 7iii7 ! data describ$ 9 subp>agraph 7,b7 & any o!r data relevant to =-pr(it in/itutions t ! ,committee det]m9es appropriate2 & 7iv7 recomm5dations ( ! ,committee = su* legislative & adm9i/rative actions z ! ,committee det]m9es are necess>y to-- 7,i7 improve en=cem5t ( applicable ,f$]al laws2 7,,ii7 increase acc\ntability ( =-pr(it in/itutions to /ud5ts & taxpay]s2 & 7,,iii7 ensure ! promotion ( quality education programs4 7,b7 ,data 7i7 ,indu/ry-wide & in/itution-level data ,! report %all include data on all =-pr(it in/itutions1 includ+ ! foll[+3 7,i7 ,! foll[+ data1 9 ! aggregate = all =-pr(it in/itutions & disaggregat$ = ea* individual =-pr(it in/itution3 7aa7 ,! total am\nt ( ,f$]al education assi/ance funds t =-pr(it in/itutions receiv$ = ! previ\s academic ye>1 & ! p]c5tage ( ! total am\nt ( ,f$]al education assi/ance funds provid$ to in/itutions ( high] education 7z def9$ 9 section #ajb7 = su* previ\s academic ye> t reflects su* total am\nt ( ,f$]al education assi/ance funds provid$ to =-pr(it in/itutions = su* previ\s academic ye>4 7bb7 ,! total am\nt ( ,f$]al education assi/ance funds t =-pr(it in/itutions receiv$ = ! previ\s academic ye>1 disaggregat$ by :e!r ! funds 7 provid$-- 7,,aa7 9 ! =m ( a loan "u title ,,iv2 7,,bb7 9 ! =m ( a grant "u su* title2 7,,cc7 "u *apt] #cc ( title #ch1 ,unit$ ,/ates ,code2 7,,dd7 = tuition & exp5ses "u section #bjjg ( title #aj1 ,unit$ ,/ates ,code2 7,,ee7 "u section #aghd;a ( title #aj1 ,unit$ ,/ates ,code2 & 7,,ff7 9 a mann] n describ$ 9 subitems 7,,aa7 ?r\gh 7,,ee74 7cc7 ,! p]c5tage ( ! total am\nt ( ,f$]al education assi/ance funds provid$ to in/itutions ( high] education 7z def9$ 9 section #ajb7 = su* previ\s academic ye> = ea* ( ! programs describ$ 9 subitems 7,,aa7 ?r\gh 7,,ee7 ( item 7bb7 t reflects su* total am\nt ( ,f$]al education assi/ance funds provid$ to =-pr(it in/itutions = su* previ\s academic ye> = ea* ( su* programs4 7dd7 ,exp5ses by classification1 includ+ sep>ate classifications =-- 7,,aa7 pre-enrollm5t recruit+ & m>ket+ activities2 7,,bb7 /ud5t in/ruction2 & 7,,cc7 /ud5t support s]vices4 7ee7 ,net income & o!r *anges 9 equity4 7ff7 ,executive comp5sation = ! #aj highe/-paid =-pr(it in/itution executives4 7gg7 ,! av]age ret5tion & graduation rates = /ud5ts pursu+ a c]tificate or a degree at =-pr(it in/itutions4 7hh7 ,! av]age cohort default rate 7z def9$ 9 section #dce7m774 7ii7 ,) respect to all c>e]s requir+ ! passage ( a lic5s+ exam9ation1 & disaggregat$ by ea* su* c>e]-- 7,,aa7 ! av]age passage rate ( individuals :o att5d$ a =-pr(it in/itution tak+ su* exam9ation to pursue su* a c>e]2 7,,bb7 ! av]age passage rate ( all individuals tak+ su* exam to pursue su* a c>e]2 & 7,,cc7 ! p]c5tage ( all individuals tak+ su* exam :o att5d$ a =-pr(it in/itution4 7jj7 ,in=mation reg>d+ ! use ( private education loans at =-pr(it in/itutions t includes-- 7,,aa7 an e/imate ( ! total numb] ( su* loans2 & 7,,bb7 in=mation on ! av]age debt1 default rate1 & int]e/ rate ( su* loans4 7,,ii7 ,! f9ancial composite scores1 9 accordance ) section #dih1 = ea* =-pr(it in/itution1 ! "n & doll> am\nt ( any lett]s ( cr$it requir$ "u subp>t ,l ( "p #ffh ( title #cd1 ,code ( ,f$]al ,regulations 7or any successor regulation71 & ! "n ( ea* in/itution plac$ "u ! height5$ ca% monitor+ paym5t me?od1 z e/abli%$ "u section #ffh4afb7;d7 ( title #cd1 ,code ( ,f$]al ,regulations 7or any successor regulation74 7ii7 ,data on corporations 7,i7 ,9 g5]al ,! report %all include data on =-pr(it in/itutions t are publicly trad$ corporations1 consi/+ ( in=mation on-- 7aa7 any pre-tax pr(it ( su* =-pr(it in/itutions-- 7,,aa7 report$ z a total am\nt & z ! av]age p]c5tage ( rev5ue = all su* =-pr(it in/itutions2 & 7,,bb7 report$ z a total am\nt & z ! av]age p]c5tage ( rev5ue = ea* su* =-pr(it in/itution2 7bb7 sp5d+ on pre-enrollm5t recruit+ & m>ket+ activities1 /ud5t in/ruction1 & /ud5t support s]vices1 & = ea* ( ! #c categories sep>ately report$-- 7,,aa7 z a total am\nt & ! av]age p]c5tage ( rev5ue = all su* =-pr(it in/itutions2 & 7,,bb7 = ea* su* =-pr(it in/itution2 7cc7 total comp5sation packages ( ! executive (fic]s ( ea* su* =-pr(it in/itution2 7dd7 a li/ ( in/itutional loan programs (f]$ by ea* su* =-pr(it in/itution t includes in=mation on ! default & int]e/ rates ( su* programs2 & 7ee7 ! data describ$ 9 subclauses 7,,ii7 & 7,,iii74 7,,ii7 ,disaggregat$ by own]%ip ,! report %all include data on =-pr(it in/itutions t are corporations1 disaggregat$ by corporate or p>5t entity1 br& "n1 & campus1 consi/+ (-- 7aa7 ! total co/ ( att5dance = ea* program at ea* su* =-pr(it in/itution2 7bb7 total enrollm5t1 disaggregat$ by-- 7,,aa7 individuals enroll$ 9 programs tak5 exclusively onl9e2 7,,bb7 individuals enroll$ 9 programs t are exclusively 9 p]son2 & 7,,cc7 individuals enroll$ 9 programs t are a mix ( onl9e & 9 p]son2 7cc7 ! ret5tion & graduation rates = /ud5ts pursu+ a degree at su* =-pr(it in/itutions1 includ+ ! numb] ( /ud5ts :o enroll ea* ye> & )draw 9 less ?an "o ye>2 7dd7 ! p]c5tage ( /ud5ts enroll$ 9 su* =-pr(it in/itutions :o complete a program ( su* an in/itution )9-- 7,,aa7 ! /&>d p]iod ( completion = su* program2 & 7,,bb7 a p]iod t is #aej p]c5t ( su* /&>d p]iod ( completion2 7ee7 ! av]age cohort default rate1 z def9$ 9 section #dce7m71 = su* =-pr(it in/itutions1 & an annual li/ ( cohort default rates 7z s def9$7 = all =-pr(it in/itutions2 7ff7 ! m$ian educational debt incurr$ by /ud5ts :o complete a program at su* a =-pr(it in/itution ( high] education2 7gg7 ! m$ian educational debt incurr$ by /ud5ts :o />t b d n complete a program at su* a =-pr(it in/itution ( high] education2 7hh7 ! job placem5t rate = /ud5ts :o complete a program at su* a =-pr(it in/itution ( high] education & ! type ( employm5t obta9$ by su* /ud5ts2 7ii7 = c>e]s requir+ ! passage ( a lic5s+ exam9ation1 ! rate ( individuals :o att5d$ su* a =-pr(it in/itution & pass$ su* an exam9ation2 & 7jj7 ! numb] ( compla9ts f /ud5ts enroll$ 9 su* =-pr(it in/itutions t h be5 submitt$ to any memb] entity ( ! ,committee4 7,,iii7 ,dep>tm5t ( ,def5se & ,vet]ans ,affairs assi/ance 7aa7 ,9 g5]al ,to ! ext5t practicable1 ! report %all provide in=mation on ! data describ$ 9 subclause 7,,ii7 = individuals :o pay = ! co/s ( att5d+ a =-pr(it in/itution ( high] education t is a corporation by us+ ,f$]al education assi/ance provid$ "u-- 7,,aa7 *apt] #cc ( title #ch1 ,unit$ ,/ates ,code2 7,,bb7 section #bjjg ( title #aj1 ,unit$ ,/ates ,code2 & 7,,cc7 section #aghd;a ( title #aj1 ,unit$ ,/ates ,code4 7bb7 ,rev5ue ,! report %all provide in=mation on ! rev5ue ( su* =-pr(it in/itutions t is d]iv$ f ! ,f$]al education assi/ance describ$ 9 item 7aa74 7iii7 ,comp>ison data ,! report %all provide in=mation comp>+1 9 ! aggregate & disaggregat$ by ,/ate1 ea* ( ! data elem5ts describ$ 9 clause 7ii7 = =-pr(it in/itutions t are publicly trad$ corporations1 =-pr(it in/itutions t are n own$ or op]at$ by a publicly trad$ company1 nonpr(it in/itutions1 & public in/itutions4 7iv7 ,in=mation reg>d+ own]%ip int]e/s ,! report %all1 = ea* =-pr(it in/itution ( high] education t is n a publicly trad$ corporation1 report ! "n ( any individual1 p>tn]%ip1 or corporation t holds an own]%ip int]e/ ( #e p]c5t or great] ( ! =-pr(it in/itution ( high] education4 7,c7 ,acc\nt+ ( any action ,= ! purposes ( subp>agraph 7,a77i71 ! t]m any action %all include-- 7i7 a compla9t fil$ by a ,f$]al or ,/ate ag5cy 9 a local1 ,/ate1 ,f$]al1 or ,tribal c\rt2 7ii7 an adm9i/rative proce$+ by a ,f$]al or ,/ate ag5cy involv+ noncompliance ( any applicable law or regulation2 7iii7 any o!r review1 audit1 or adm9i/rative process by any ,f$]al or ,/ate ag5cy t results 9 a p5alty1 susp5sion1 or t]m9ation f any ,f$]al or ,/ate program2 or 7iv7 a negative or adv]se action tak5 by an accr$it+ ag5cy or association recogniz$ by ! ,secret>y pursuant to section #dif ) respect to an approv$ in/itution or program4 7f7 ,=-,pr(it college w>n+ li/ = p>5ts & /ud5ts 7#a7 ,9 g5]al ,ea* academic ye>1 ! ,committee %all publi% a li/ to be kn[n z ! ,=-,pr(it ,college ,w>n+ ,li/ = ,p>5ts & ,/ud5ts to be compris$ ( =-pr(it in/itutions-- 7,a7 t h engag$ 9 illegal activity dur+ ! previ\s academic ye> z det]m9$ by a ,f$]al or ,/ate c\rt2 7,b7 t h ent]$ into a settlem5t ) a ,f$]al or ,/ate entity result+ 9 a monet>y paym5t2 7,c7 t h _h any high] education program limit$1 )drawn1 or susp5d$ by an ext]nal entity 7su* z a ,f$]al or ,/ate entity or an accr$it+ ag5cy or association recogniz$ by ! ,secret>y pursuant to section #dif72 & 7,d7 = :i* ! ,committee has suffici5t evid5ce ( widespread or sy/emic unfair1 deceptive1 abusive1 une?ical1 fraudul5t1 or pr$atory practices1 policies1 or proc$ures t pose a ?reat to ! academic success1 f9ancial security1 or g5]al be/ int]e/ ( /ud5ts4 7#b7 ,det]m9ations ,9 mak+ a det]m9ation pursuant to p>agraph 7#a77;,d71 ! ,committee may consid] evid5ce t includes ! foll[+3 7,a7 ,any consum] compla9t collect$ by any memb] entity ( ! ,committee4 7,b7 ,any compla9t fil$ by a ,f$]al or ,/ate entity 9 a ,f$]al1 ,/ate1 local1 or ,tribal c\rt4 7,c7 ,any adm9i/rative proce$+ by a ,f$]al or ,/ate entity involv+ noncompliance ( any applicable law or regulation4 7,d7 ,any o!r review1 audit1 or adm9i/rative process by any ,f$]al or ,/ate entity t results 9 a p5alty1 susp5sion1 or t]m9ation f any ,f$]al or ,/ate program4 7,e7 ,data or in=mation submitt$ by a =-pr(it in/itution to any accr$it+ ag5cy or association recogniz$ by ! ,secret>y pursuant to section #dif or ! f9d+s or adv]se actions ( any su* accr$it+ ag5cy or association4 7,f7 ,in=mation submitt$ by a =-pr(it in/itution to any memb] entity ( ! ,committee4 7,g7 ,any o!r evid5ce t ! ,committee det]m9es relevant 9 mak+ su* det]m9ation4 7#c7 ,publication ,n lat] ?an ,july #a ( ea* fiscal ye>1 ! ,committee %all publi% ! li/ "u p>agraph 7#a7 prom95tly & 9 a mann] t is easily accessible to p>5ts1 /ud5ts1 & o!r /akehold]s1 9 accordance ) any be/ practices develop$ "u subsection 7b77#b77;,f74 4 ,,ii ,/ud5t & borr[] protections #bja4 ,ga9ful employm5t programs 7a7 ,9 g5]al ,section #ajb 7#bj ,u4,s4,c4 #ajjb71 z am5d$ by sections #d7;b7 & #aja1 is fur!r am5d$-- 7#a7 9 subsection 7b77#a77;,a7-- 7,a7 by /rik+ clause 7ii72 7,b7 by /rik+ 7i7 provides & ins]t+ provides2 & 7,c7 by /rik+ recogniz$ occupation2 or & ins]t+ recogniz$ occupation1 z describ$ 9 subsection 7e722 7#b7 9 subsection 7c77#a77;,a71 by ins]t+ 1 z describ$ 9 subsection 7e7 aft] recogniz$ occupation2 & 7#c7 by add+ at ! end ! foll[+3 7e7 ,ga9ful employm5t 9 a recogniz$ occupation 7#a7 ,def9itions ,9 ?is subsection3 7,a7 ,debt-to-e>n+s rates ,! t]m debt-to-e>n+s rates means ! discretion>y income rate & ! annual e>n+s rate1 z det]m9$ "u ! ga9ful employm5t rules4 7,b7 ,eligible tra9+ program ,! t]m eligible tra9+ program means a program ( tra9+ t-- 7i7 9 ord] to qualify = assi/ance "u title ,,iv1 is requir$ "u subsection 7b77#a77;,a77i7 or 7c77#a77;,a71 or section #aja7;b77#a71 to satisfy ! ga9ful employm5t requirem5ts ( ?is subsection2 & 7ii7 is (f]$ by an in/itution eligible to receive assi/ance "u su* title4 7,c7 ,ga9ful employm5t rules ,! t]m ga9ful employm5t rules means ! rules issu$ "u subp>t ,q ( title #cd1 ,code ( ,f$]al ,regulations1 z publi%$ on ,octob] #ca1 #bjad1 relat+ to ga9ful employm5t 9 a recogniz$ occupation4 7#b7 ,9 g5]al ,an eligible tra9+ program prep>es /ud5ts = ga9ful employm5t 9 a recogniz$ occupation if ! eligible tra9+ program complies ) all requirem5ts ( ! ga9ful employm5t rules 7includ+ any modifications made by ?is subsection71 includ+-- 7,a7 ! provisions relat+ to ! calculation ( debt-to-e>n+s rates = ! eligible tra9+ program1 us+ actual annual e>n+s data ( /ud5ts :o complet$ ! eligible tra9+ program2 7,b7 ! provisions relat+ to ! det]m9ation ( outcomes = an eligible tra9+ program bas$ on ! debt-to-e>n+s rates1 includ+ :e!r an eligible tra9+ program is a pass+1 fail+1 or zone program2 7,c7 ! provisions relat+ to ! associat$ consequ5ces = an eligible tra9+ program t is n pass+ ! debt-to-e>n+s rates1 includ+ a /ud5t w>n+ & ultimate loss ( eligibility = assi/ance "u title ,,iv2 7,d7 ! requirem5ts relat+ to disclosure1 report+1 & c]tification2 & 7,e7 ! calculation ( completion rates1 )drawal rates1 repaym5t rates1 program cohort default rates1 & m$ian loan debt = ! eligible tra9+ program4 7#c7 ,annual calculations & v]ifications ,! ,secret>y %all c>ry out all ( ! foll[+3 7,a7 ,on an annual cal5d> ye> basis 7not)/&+ section #ffh4djc7;c77#e7 ( ! ga9ful employm5t rules7 & = ea* eligible tra9+ program1 calculate = ea* aw>d ye> bo? ( ! debt-to-e>n+s rates = ! eligible tra9+ program1 issue a notice ( det]m9ation1 & en=ce re/rictions bas$ on ^? det]m9ations4 ,9 ord] to c>ry out ! prec$+ s5t5ce1 ! ,secret>y %all-- 7i7 create a li/ ( /ud5ts :o complet$ ! eligible tra9+ program dur+ ! cohort p]iod id5tifi$ by ! ,secret>y2 7ii7 provide ! li/ to ! in/itution (f]+ ! eligible tra9+ program & all[ ! in/itution a #de-;day p]iod beg9n+ ! day aft] ! date t ! ,secret>y provides ! li/ to ! in/itution1 to submit any corrections to ! li/2 7iii7 aft] resolv+ any corrections1 provide ! in/itution ) ! f9al li/ & submit ! f9al li/ ( /ud5ts :o complet$ ! eligible tra9+ program to ! ,social ,security ,adm9i/ration1 ! ,int]nal ,rev5ue ,s]vice1 or any o!r ,f$]al ag5cy t adm9i/]s a database t conta9s e>n+s in=mation t c be mat*$ to ! individuals nam$ 9 ! f9al li/1 & retrieve ! mean & m$ian annual e>n+s ( /ud5ts on ! li/s1 9 aggregate & n 9 individual =m1 )9 #aj bus9ess days aft] submission2 7iv7 calculate & s5d ! debt-to-e>n+s rates to ! in/itution (f]+ ! eligible tra9+ program & all[ ! in/itution a #de-;day p]iod1 beg9n+ aft] ! date ! ,secret>y notifies an in/itution ( ! debt-to-e>n+s rates1 to *all5ge ! accuracy ( in=mation us$ to calculate ! eligible tra9+ program's m$ian loan debt2 7v7 subject to ! resolution ( any *all5ge1 issue a notice ( det]m9ation in=m+ ! in/itution-- 7,i7 ( ! f9al debt-to-e>n+s rates ( ea* eligible tra9+ program to ! in/itution (f]+ ! program2 7,,ii7 ( ! f9al det]m9ation reg>d+ :e!r ! program is a pass+1 fail+1 or zone program1 or is ineligible1 & ! consequ5ces ( t det]m9ation2 7,,iii7 :e!r ! program c\ld become ineligible bas$ on its f9al debt-to-e>n+s rates = ! next aw>d ye>2 7,,iv7 :e!r ! in/itution is requir$ to provide w>n+s to enroll$ /ud5ts & prospective /ud5ts2 & 7,v7 if ! program is det]m9$ to be a fail+ or zone program due to ! f9al debt-to-e>n+s rates1 h[ ! program may make an alt]nate e>n+s appeal1 9 accordance ) p>agraph 7#d72 7vi7 ) respect to an in/itution t receives a notification f ! ,secret>y "u clause 7v77,,iii7 & t does n submit an int5t to appeal 9 accordance ) p>agraph 7#d7 or = :i* ! appeal is d5i$1 require ! in/itution1 n lat] ?an #cj days aft] receiv+ ! notification ( ! det]m9ation or d5ial1 to-- 7,i7 issue w>n+s to enroll$ /ud5ts & prospective /ud5ts2 & 7,,ii7 update ! disclosure template1 z requir$ by ! ga9ful employm5t rules1 z modifi$ by p>agraph 7#e72 & 7vii7 en=ce re/rictions :]eby-- 7,i7 an in/itution may n disburse program funds "u title ,,iv to /ud5ts enroll$ 9 an ineligible program2 & 7,,ii7 an in/itution may n seek to ree/abli% ! eligibility ( a fail+ or zone program t x discont9u$ volunt>ily1 ree/abli% ! eligibility ( a program t is ineligible "u ! debt-to-e>n+s rates1 or e/abli% ! eligibility ( a program t is sub/antially simil> to ! discont9u$ or ineligible program1 until #c ye>s foll[+ ! date specifi$ 9 ! notice ( det]m9ation in=m+ ! in/itution ( ! program's ineligibility or ! date ! in/itution discont9u$ ! fail+ or zone program2 & 7,b7 develop processes to v]ify1 on an annual cal5d> ye> basis1 t-- 7i7 requir$ w>n+s "u ! ga9ful employm5t rules are deliv]$ to enroll$ /ud5ts & prospective /ud5ts & are publi%$ on ! eligible tra9+ program's disclosure template1 9 accordance ) subp>agraph 7,a77vii72 & 7ii7 ea* eligible tra9+ program is publi%+ ! disclosure template on ! website ( ! eligible tra9+ program1 z requir$ by ! ga9ful employm5t rules1 z modifi$ by p>agraph 7#e74 7#d7 ,alt]nate e>n+s appeals process ,! ,secret>y %all e/abli% & en=ce an appeals process = any in/itution ( high] education t wi% to file an alt]nate e>n+s appeal = an eligible tra9+ program t is a fail+ or zone program "u ! debt-to-e>n+s rates4 ,! appeals process %all be c>ri$ out 9 accordance ) ! ga9ful employm5t rules1 except t ! appeals process %all also-- 7,a7 all[ an in/itution to file an alt]nate e>n+s appeal1 9 accordance ) ! ga9ful employm5t rules1 to reque/ ! recalculation ( a ga9ful employm5t program's mo/ rec5t f9al debt-to-e>n+s rates issu$ by ! ,secret>y1 except t-- 7i7 any in/itution t elects to submit alt]nate e>n+s f an in/itutional survey %all1 9 addition to ! o!r requirem5ts 9 ! ga9ful employm5t rules-- 7,i7 include a te/ = non-response bias2 7,,ii7 all[ = an exception to issues ( bias due to sample sizes bel[ #aj2 & 7,,iii7 subject ! in/itutional survey in/rum5t & survey responses to an audit by ! ,inspector ,g5]al ( ! ,dep>tm5t2 & 7ii7 ! ,inspector ,g5]al ( ! ,dep>tm5t %all-- 7,i7 audit ! in/itutional survey in/rum5t1 & ! survey responses1 submitt$ by an in/itution "u clause 7i72 & 7,,ii7 furni% data %[+ ! ,inspector ,g5]al v]ifi$ ! accuracy ( /ud5t survey responses2 & 7,b7 require ! ,secret>y to accept ! alt]nate e>n+s e/imate f an in/itutional survey if ! te/ = non-response bias includes a response rate t gu>antees t ! l[] b\nd ( ! #ie p]c5t confid5ce int]val ( ! alt]nate e>n+s e/imate is at or above ! e>n+s level retriev$ f ! ,social ,security ,adm9i/ration1 ! ,int]nal ,rev5ue ,s]vice1 or any o!r ,f$]al ag5cy ) a database conta9+ individual-level e>n+s data4 7#e7 ,ga9ful employm5t disclosure requirem5ts ,not)/&+ section #ffh4dab7;a7 ( ! ga9ful employm5t rules1 ! ,secret>y %all include 9 ! disclosure template all ! in=mation li/$ 9 p>agraphs 7#a7 ?r\gh 7#af7 ( section #ffh4dab7;a7 ( ! ga9ful employm5t rules1 unless ! ,secret>y-- 7,a7 det]m9es t consum] te/+ supports ! non9clusion ( ! in=mation li/$ 9 any su* p>agraph2 & 7,b7 publi%es ! ,secret>y's det]m9ation1 & ! consum] te/+ support+ ! det]m9ation1 on ! public website ( ! ,dep>tm5t4 7#f7 ,role ( ,social ,security ,adm9i/ration1 ! ,int]nal ,rev5ue ,s]vice1 & o!r ,f$]al ag5cies ,! ,commission] ( ,social ,security1 ! ,commission] ( ,int]nal ,rev5ue1 & ! head ( any o!r ,f$]al ag5cy t adm9i/]s ! database ( individual-level e>n+s data %all1 9 coord9ation ) ! ,secret>y1 timely provide ! ,secret>y ) ! e>n+s in=mation z requir$ 9 accordance ) p>agraph 7#c77;,a77iii7 & ! ga9ful employm5t rules4 4 7b7 ,con=m+ am5dm5t ,section #aja7;b77#a7 7#bj ,u4,s4,c4 #ajja7;b77#a77 is am5d$ by ins]t+ 1 z describ$ 9 section #ajb7;e71 aft] recogniz$ occupation4 7c7 ,effective date ,not)/&+ section #c1 ?is section %all take effect on ! date ( enactm5t ( ?is ,act4 #bjb4 ,prohibition on in/itutions limit+ /ud5t legal action 7a7 ,en=cem5t ( arbitration agreem5ts 7#a7 ,9 g5]al ,*apt] #a ( title #i1 ,unit$ ,/ates ,code1 7relat+ to ! en=cem5t ( arbitration agreem5ts7 %all n apply to an enrollm5t agreem5t made betwe5 a /ud5t & an in/itution ( high] education4 7#b7 ,def9ition ,9 ?is section1 ! t]m in/itution ( high] education has ! mean+ giv5 su* t]m 9 section #ajb ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajjb71 z am5d$ by section #aja ( ?is ,act4 7b7 ,prohibition on limitations on ability ( /ud5ts ,to pursue claims aga9/ c]ta9 in/itutions ( high] education ,section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a771 z am5d$ by section #aja1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#bi7 ,! in/itution w n require any /ud5t to agree to1 & w n en=ce1 any limitation or re/riction 7includ+ a limitation or re/riction on any available *oice ( applicable law1 a jury trial1 or v5ue7 on ! ability ( a /ud5t to pursue a claim1 individually or ) o!rs1 aga9/ an in/itution 9 c\rt4 4 7c7 ,effective date ,not)/&+ section #c1 ?is section %all take effect on ! date ( enactm5t ( ?is ,act4 #bjc4 ,en=cem5t unit e/abli%$ 9 ! ,(fice ( ,f$]al ,/ud5t ,aid ,section #ada 7#bj ,u4,s4,c4 #ajah7 is am5d$-- 7#a7 by r$esignat+ subsections 7g7 ?r\gh 7i7 z subsections 7h7 ?r\gh 7j71 respectively2 & 7#b7 by ins]t+ aft] subsection 7f7 ! foll[+3 7g7 ,en=cem5t unit 7#a7 ,9 g5]al ,! ,*ief ,op]at+ ,(fic]1 9 consultation ) ! ,secret>y1 %all e/abli% an en=cem5t unit )9 ! ,,pbo 7ref]r$ to 9 ?is section z ! en=cem5t unit74 7#b7 ,appo9tm5t 7,a7 ,*ief en=cem5t (fic] ,! ,*ief ,op]at+ ,(fic]1 9 consultation ) ! ,secret>y1 %all appo9t a ,*ief ,en=cem5t ,(fic] z a s5ior manag]1 9 accordance ) subsection 7e71 to p]=m ! functions describ$ 9 ?is subsection4 ,! ,*ief ,en=cem5t ,(fic] %all report solely & directly to ! ,*ief ,op]at+ ,(fic]4 7,b7 ,bonus ,not)/&+ subsection 7e71 ! ,*ief ,en=cem5t ,(fic] may receive a bonus1 sep>ately det]m9$ f ! me?odology :i* applies to ! calculation ( bonuses = o!r s5ior manag]s1 bas$ ^u ! ,*ief ,op]at+ ,(fic]'s evaluation ( ! ,*ief ,en=cem5t ,(fic]'s p]=mance 9 relation to ! goals set =? 9 a p]=mance agreem5t relat$ to ! specific duties ( ! en=cem5t unit4 7#c7 ,duties ,! en=cem5t unit %all-- 7,a7 receive1 process1 & analyze allegations & compla9ts reg>d+ ! pot5tial violation ( ,f$]al or ,/ate law 7includ+ civil & crim9al law7 or o!r unfair1 deceptive1 or abusive acts or practices1 by in/itutions ( high] education1 ?ird p>ty s]vic]s t contract ) su* in/itutions1 & ?ird p>ty contractors2 7,b7 inve/igate & coord9ate inve/igations ( pot5tial or actual misconduct ( in/itutions ( high] education1 ?ird p>ty s]vic]s t contract ) su* in/itutions1 & ?ird p>ty contractors2 & 7,c7 en=ce compliance ) laws gov]n+ ,f$]al /ud5t f9ancial assi/ance programs "u title ,,iv1 includ+ ?r\gh ! use ( an em]g5cy action 9 accordance to section #dhi;,a1 ! limitation1 susp5sion1 or t]m9ation ( ! p>ticipation ( an eligible in/itution 9 a program "u title ,,iv1 or ! imposition ( a civil p5alty 9 accordance ) section #dhi;,a4 7#d7 ,coord9ation & /aff+ ,! en=cem5t unit %all-- 7,a7 coord9ate ) relevant ,f$]al & ,/ate ag5cies & ov]sight bodies1 includ+ ! ,=-,pr(it ,education ,ov]sight ,coord9ation ,committee e/abli%$ "u section #abe2 & 7,b7 hire /aff1 7includ+ by appo9t+ n m ?an #aj individuals 9 positions ( except$ s]vice1 z describ$ 9 subsection 7h77#c77 ) su* exp]tise z is necess>y to conduct inve/igations1 respond to allegations & compla9ts1 & en=ce compliance ) laws gov]n+ ,f$]al /ud5t f9ancial assi/ance programs "u title ,,iv4 7#e7 ,divisions 7,a7 ,9 ,g5]al ,! en=cem5t unit %all h sep>ate divisions ) ! foll[+ focus areas3 7i7 ,an inve/igations division to inve/igate pot5tial or actual misconduct at in/itutions ( high] education1 ?ird p>ty s]vic]s t contract ) su* in/itutions1 & ?ird p>ty contractors4 7ii7 ,a division focus$ on evaluat+ ! claims ( borr[]s :o ass]t a def5se to repaym5t ( ,f$]al /ud5t loans1 or gr\ps ( borr[]s :o qualify to ass]t su* a def5se to repaym5t1 "u section #dee7;h74 7iii7 ,a division focus$ on ov]sight ( ! ,jeanne ,cl]y ,disclosure ( ,campus ,security ,policy & ,campus ,crime ,/ati/ics ,act1 ! report+ ( crime & fire /ati/ics by in/itutions ( high] education1 & ! ov]sight & en=cem5t ( section #abj 7relat+ to drug & alcohol abuse prev5tion74 7iv7 ,a division to adm9i/] ! ,secret>y's au?ority to f9e1 limit1 susp5d1 t]m9ate1 or take action aga9/ in/itutions ( high] education1 ?ird p>ty s]vic]s t contract ) su* in/itutions1 & ?ird p>ty contractors1 p>ticipat+ 9 ! ,f$]al /ud5t f9ancial assi/ance programs "u title ,,iv4 7v7 ,a division t adm9i/]s a program ( compliance monitor+ & ov]sight ( in/itutions ( high] education1 ?ird p>ty s]vic]s t contract ) su* in/itutions1 & ?ird p>ty contractors1 includ+ sy/ems & proc$ures to support ! eligibility1 c]tification1 & ov]sight ( program p>ticipants1 = all in/itutions ( high] education p>ticipat+ 9 ! ,f$]al /ud5t f9ancial assi/ance programs "u title ,,iv4 7vi7 ,any o!r division t ! ,*ief ,en=cem5t ,(fic]1 9 coord9ation ) ! ,*ief ,op]at+ ,(fic] & ! ,secret>y1 det]m9es is necess>y4 7,b7 ,report+ ,! /aff ( ea* division describ$ 9 subp>agraph 7,a7 %all report to ! ,*ief ,en=cem5t ,(fic]4 7#f7 ,actions recomm5d$ ,! ,*ief ,en=cem5t ,(fic] may recomm5d1 z appropriate to ! p>ticul> circum/ance1 t ! ,*ief ,op]at+ ,(fic]-- 7,a7 t]m9ate1 susp5d1 or limit an in/itution ( high] education1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor1 f p>ticipation 9 "o or m programs "u title ,,iv 79 accordance ) section #dhi;,a71 or provisionally c]tify su* p>ticipation 79 accordance to section #dih7;h772 7,b7 impose a civil p5alty 9 accordance ) section #dhi;,a2 7,c7 make a recomm5dation to ! ,secret>y ab\t :e!r to approve or d5y ! claims ( borr[]s1 includ+ gr\ps ( borr[]s1 :o ass]t a def5se to repaym5t 9 accordance ) section #dee7;h72 or 7,d7 c>ry out any o!r en=cem5t activity applicable to ! ,dep>tm5t "u section #dhi;,a4 7#g7 ,def9itions ,9 ?is subsection-- 7,a7 ! t]m in/itution ( high] education has ! mean+ giv5 t t]m 9 section #ajb2 & 7,b7 ! t]m ?ird p>ty s]vic] has ! mean+ giv5 t t]m 9 section #dha7;c74 4 #bjd4 ,e/abli%m5t & ma9t5ance ( compla9t resolution & track+ sy/em ,title ,i 7#bj ,u4,s4,c4 #ajja et seq47 is am5d$ by add+ at ! end ! foll[+ new "p3 ,f ,compla9t track+ sy/em #afa4 ,compla9t track+ sy/em 7a7 ,9 ,g5]al 7#a7 ,9 g5]al ,! ,secret>y %all ma9ta9 a compla9t track+ sy/em t includes a s+le1 toll-free telephone numb] & a website to facilitate ! c5traliz$ collection (1 monitor+ (1 & response to compla9ts & reports 7includ+ evid5ce1 z available7 ( suspici\s activity 7su* z unfair1 deceptive1 or abusive acts or practices7 reg>d+-- 7,a7 ,f$]al /ud5t f9ancial aid & ! s]vic+ ( po/second>y education loans by loan s]vic]s2 7,b7 educational practices & s]vices ( in/itutions ( high] education2 & 7,c7 ! recruit+ & m>ket+ practices ( in/itutions ( high] education4 7#b7 ,def9itions ,9 ?is section-- 7,a7 ! t]m in/itution ( high] education has ! mean+ giv5 t t]m 9 section #ajb2 & 7,b7 ! t]m recruit+ & m>ket+ activities means activities describ$ 9 section #abf7;d77#b7 7z add$ by section #cja ( ! ,prev5t+ ,risky ,op]ations f ,?reat5+ ! ,education & ,c>e] ,trajectories ( ,/ud5ts ,act ( #bjai74 7b7 ,compla9ts ,compla9ts & reports ( suspici\s activity submitt$ to ! track+ sy/em by /ud5ts1 borr[]s ( /ud5t loans1 /aff1 or ! g5]al public-- 7#a7 may rema9 anonym\s1 if ! compla9ant s *ooses2 & 7#b7 may describe problems t are sy/ematic 9 nature & n associat$ ) a p>ticul> /ud5t4 7c7 ,e/abli%m5t ( compla9t track+ (fice ,! ,secret>y %all e/abli% )9 ! ,dep>tm5t an (fice ^: functions %all include e/abli%+ & adm9i/]+ ! compla9t track+ sy/em1 & widely dissem9at+ in=mation ab\t ! compla9t track+ sy/em1 e/abli%$ "u ?is subsection4 ,! ,secret>y %all-- 7#a7 to ! ext5t necess>y1 comb9e & consolidate ! o!r (fices & functions ( ! ,dep>tm5t to ensure t ! (fice e/abli%$ "u ?is subsection is ! s+le po9t ( contact = /ud5ts & borr[]s ) compla9ts or reports ( suspici\s activity reg>d+ ,f$]al /ud5t f9ancial aid1 /ud5t loan s]vic]s1 educational practices & s]vices ( in/itutions ( high] education1 & recruit+ & m>ket+ activities ( in/itutions ( high] education2 & 7#b7 to ! ext5t practicable1 ensure t ! (fice e/abli%$ "u ?is subsection w "w ) ! ,/ud5t ,loan ,ombudsman appo9t$ 9 accordance ) section #ada7;f7 & ! ,/ud5t ,loan ,ombudsman ( ! ,bureau ( ,consum] ,f9ancial ,protection to assi/ borr[]s ( ,f$]al /ud5t loans t submit compla9ts or reports ( suspici\s activity to ! compla9t track+ sy/em4 7d7 ,h&l+ ( compla9ts 7#a7 ,timely response to compla9ts ,! ,secret>y %all e/abli%1 9 consultation ) ! heads ( appropriate ag5cies 7includ+ ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection71 reasonable proc$ures to provide a response to compla9ants n m ?an #ij days aft] receiv+ a compla9t 9 ! compla9t track+ sy/em1 9 writ+ :]e appropriate4 ,ea* response %all include a description (-- 7,a7 ! /eps t h be5 tak5 by ! ,secret>y 9 response to ! compla9t or report ( suspici\s activity2 7,b7 any responses receiv$ by ! ,secret>y f ! in/itution ( high] education or f a s]vic]2 & 7,c7 any additional actions t ! ,secret>y has tak51 or plans to take1 9 response to ! compla9t or report ( suspici\s activity4 7#b7 ,timely response to secret>y by in/itution ( high] education or loan s]vic] ,if ! ,secret>y det]m9es t x is necess>y1 ! ,secret>y %all notify an in/itution ( high] education or loan s]vic] t is ! subject ( a compla9t or report ( suspici\s activity ?r\gh ! compla9t track+ sy/em "u ?is subsection reg>d+ ! compla9t or report & directly address & resolve ! compla9t or report 9 ! sy/em4 ,n lat] ?an #fj days aft] receiv+ su* notice1 su* in/itution or loan s]vic] %all provide a response to ! ,secret>y conc]n+ ! compla9t or report1 includ+-- 7,a7 ! /eps t h be5 tak5 by ! in/itution or loan s]vic] to respond to ! compla9t or report2 7,b7 all responses receiv$ by ! in/itution or loan s]vic] f ! compla9ant2 & 7,c7 any additional actions t ! in/itution or loan s]vic] has tak51 or plans to take1 9 response to ! compla9t or report4 7#c7 ,fur!r inve/igation ,! ,secret>y may1 9 ! ev5t t ! compla9t is n adequately resolv$ or address$ by ! responses ( ! in/itution ( high] education or loan s]vic] "u p>agraph 7#b71 ask additional que/ions ( su* in/itution or loan s]vic] or seek additional in=mation f or action by ! in/itution or loan s]vic]4 7#d7 ,provision ( in=mation 7,a7 ,9 g5]al ,an in/itution ( high] education or loan s]vic] %all1 9 a timely mann]1 comply ) a reque/ by ! ,secret>y = in=mation 9 ! control or possession ( su* in/itution or loan s]vic] conc]n+ a compla9t or report ( suspici\s activity receiv$ by ! ,secret>y "u ?is subsection1 includ+ support+ writt5 docum5tation1 subject to subp>agraph 7,b74 7,b7 ,exceptions ,an in/itution ( high] education or loan s]vic] %all n be requir$ to make available "u ?is subsection-- 7i7 any nonpublic or confid5tial in=mation1 includ+ any confid5tial comm]cial in=mation2 7ii7 any in=mation collect$ by ! in/itution = ! purpose ( prev5t+ fraud or detect+ or mak+ any report reg>d+ o!r unlawful or pot5tially unlawful conduct2 or 7iii7 any in=mation requir$ to be kept confid5tial by any o!r provision ( law4 7#e7 ,compliance ,an in/itution ( high] education or loan s]vic] %all comply ) ! requirem5ts to provide responses & in=mation1 9 accordance ) ?is subsection1 z a condition ( receiv+ funds "u title ,,iv or z a condition ( ! contract ) ! ,dep>tm5t1 z applicable4 7e7 ,transp>5cy 7#a7 ,collect+ & %>+ in=mation ) ,f$]al1 ,/ate1 & nationally recogniz$ accr$it+ ag5cies ,9 accordance ) section #ddd ( ! ,g5]al ,education ,provisions ,act 7#bj ,u4,s4,c4 #abcb;g7 7commonly ref]r$ to z ! ,family ,educational ,rights & ,privacy ,act ( #aigd7 & o!r laws1 ! ,secret>y %all coord9ate ) ! heads ( relevant ,f$]al or ,/ate ag5cies or entities1 & nationally recogniz$ accr$it+ ag5cies or associations recogniz$ by ! ,secret>y pursuant to section #dif to-- 7,a7 collect any compla9ts & reports ( suspici\s activity describ$ 9 subsection 7a77#a7 f su* ag5cies1 entities1 or associations2 & 7,b7 r\te compla9ts & reports receiv$ by ! compla9t track+ sy/em "u ?is section & compla9ts & reports collect$ 9 accordance ) subp>agraph 7,a7 to ! ,dep>tm5t1 ! ,dep>tm5t ( ,ju/ice1 ! ,dep>tm5t ( ,def5se1 ! ,dep>tm5t ( ,vet]ans ,affairs1 ! ,f$]al ,trade ,commission ,consum] ,s5t9el ,network1 ! ,bureau ( ,consum] ,f9ancial ,protection1 any equival5t ,/ate ag5cy1 or ! relevant nationally recogniz$ accr$it+ ag5cy or association4 7#b7 ,int]action ) exi/+ compla9t sy/ems ,to ! ext5t practicable1 all proc$ures e/abli%$ "u ?is section1 & all coord9ation c>ri$ out "u p>agraph 7#a71 %all be e/abli%$ & c>ri$ out 9 accordance ) ! compla9t track+ sy/ems e/abli%$ "u ,executive ,ord] #acfjg 7#gg ,f$4 ,reg4 #behfa2 relat+ to e/abli%+ pr9ciples ( excell5ce = educational in/itutions s]v+ s]vicememb]s1 vet]ans1 sp\ses1 & o!r family memb]s74 7#c7 ,public in=mation 7,a7 ,9 g5]al ,! ,secret>y %all1 on an annual basis1 publi% on ! website ( ! ,dep>tm5t in=mation on ! compla9ts & reports ( suspici\s activity receiv$ = ea* in/itution ( high] education or loan s]vic] "u ?is subsection1 includ+-- 7i7 ! numb] ( compla9ts & reports receiv$2 7ii7 ! types ( compla9ts & reports receiv$2 & 7iii7 :]e applicable1 in=mation ab\t ! resolution ( ! compla9ts & reports4 7,b7 ,data privacy ,9 c>ry+ out subp>agraph 7,a71 ! ,secret>y %all-- 7i7 comply ) applicable data privacy laws & regulations2 & 7ii7 ensure t p]sonally id5tifiable in=mation is n %>$4 7#d7 ,reports ,ea* ye>1 ! ,secret>y %all prep>e & submit to ,congress a report describ+-- 7,a7 ! types & nature ( compla9ts or reports ! ,secret>y has receiv$ "u ?is section2 7,b7 ! ext5t to :i* compla9ants are receiv+ adequate resolution pursuant to ?is section2 7,c7 :e!r p>ticul> types ( compla9ts or reports are m common 9 a giv5 sector ( in/itutions ( high] education or ) p>ticul> loan s]vic]s2 7,d7 any legislative recomm5dations t ! ,secret>y det]m9es are necess>y to bett] assi/ /ud5ts & families reg>d+ ! activities describ$ 9 subsection 7a77#a72 & 7,e7 ! in/itutions ( high] education & loan s]vic]s ) ! highe/ volume ( compla9ts & reports1 z det]m9$ by ! ,secret>y4 4 #bje4 ,borr[] def5se to repaym5t ,section #dee7;h7 7#bj ,u4,s4,c4 #ajhg;e7 is am5d$ to read z foll[s3 7h7 ,borr[] def5ses 7#a7 ,application 7,a7 ,9 ,g5]al ,a borr[] ( a loan "u ?is "p or "p ,b may submit an application to ! ,secret>y claim+ a def5se to repaym5t ( ! loan 7z describ$ 9 p>agraph 7#g77 7ref]r$ to 9 ?is subsection z a borr[] def5se71 at any "t & reg>dless ( ! curr5t paym5t /atus ( ! loan4 ,! application %all-- 7i7 c]tify t ! borr[] receiv$ ! proce$s ( a loan or loans issu$ "u ?is "p or "p ,b to att5d an eligible in/itution ( high] education2 7ii7 provide evid5ce t supports ! borr[] def5se2 7iii7 indicate :e!r ! borr[] has made a claim ) respect to ! in=mation und]ly+ ! borr[] def5se ) any ?ird p>ty1 su* z ! hold] ( a p]=mance bond or a tuition recov]y program1 &1 if s1 ! am\nt ( any paym5t receiv$ by ! borr[] or cr$it$ to ! borr[]'s loan obligation2 & 7iv7 provide any o!r in=mation or support+ docum5tation reasonably reque/$ by ! ,secret>y4 7,b7 ,borr[] def5se = a gr\p 7i7 ,9 g5]al 7,i7 ,gr\p def5se ,! ,secret>y may initiate & c>ry out a process to det]m9e :e!r a gr\p ( borr[]s1 id5tifi$ by ! ,secret>y1 has a borr[] def5se4 7,,ii7 ,id5tification ( gr\p ,! ,secret>y may-- 7aa7 id5tify memb]s ( su* a gr\p f individually fil$ applications submitt$ "u subp>agraph 7,a72 or 7bb7 if ! ,secret>y det]m9es t !re are common facts & claims t apply to borr[]s :o h n fil$ an application "u subp>agraph 7,a71 id5tify su* memb]s bas$ on in=mation 9 ! possession ( ! ,secret>y4 7,,iii7 ,repres5tative ,9 ! case ( a gr\p id5tifi$ by ! ,secret>y "u ?is clause1 ! ,secret>y %all designate a ,dep>tm5t (ficial to pres5t ! gr\p's claim 9 ! process describ$ "u p>agraph 7#b74 7ii7 ,application = a gr\p ,a ,/ate attorney g5]al or nonpr(it legal assi/ance organization t repres5ts borr[]s may submit an application describ$ 9 subp>agraph 7,a7 on behalf ( a gr\p ( borr[]s ^: claims are simil> or id5tical1 )\t requir+ an application f ea* individual borr[] 9 t gr\p or class4 7iii7 ,notification 7,i7 ,^u initiation ( ! process "u clause 7i7 or receipt ( an application "u clause 7ii71 ! ,secret>y %all provide ! borr[]s :o may be memb]s ( a gr\p borr[] def5se claim ) a writt5 notice ( su* initiation or receipt1 z ! case may be1 & an option to opt out ( ! proce$+ "u ?is subsection = t gr\p4 7,,ii7 ,^u receipt ( an application on behalf ( a gr\p ( borr[]s "u clause 7ii71 ! ,secret>y %all provide ! entity submitt+ t application ) a writt5 det]m9ation1 n lat] ?an #abj days aft] receipt ( ! application1 /at+-- 7aa7 :e!r ! ,secret>y w =go ! review ( claims = individual borr[]s & in/ead w review ! claims = ! gr\p describ$ 9 t application 7or = a subset ( borr[]s 9 t gr\p1 if applicable72 7bb7 if ! ,secret>y det]m9es n to evaluate ! application = t gr\p 7or n to evaluate ! application = all ! reque/$ memb]s ( t gr\p71 ! reasons = ! det]m9ation2 & 7cc7 t ! ,secret>y may reconsid] ! det]m9ation 9 item 7bb7 if pres5t$ ) new evid5ce t w\ld all[ = ! consid]ation ( claims = ! gr\p describ$ 9 ! application4 7iv7 ,relief ,if ! ,secret>y approves a gr\p application = relief "u ?is subsection1 all borr[]s 9 ! gr\p :o h n affirmatively opt$ out are entitl$ to relief1 reg>dless ( :e!r an individual borr[] fil$ an application4 7#b7 ,process 7,a7 ,9 ,g5]al ,^u receipt ( an application f an individual borr[] or ^u receipt ( an application f a gr\p ( borr[]s or initiation ( a claim on behalf ( a gr\p ( borr[]s1 z describ$ 9 p>agraph 7#a77;,b71 ! ,secret>y %all c>ry out ! foll[+ activities3 7i7 ,) reg>d to ! borr[]'s paym5t /atus 7includ+ ea* borr[] 9 su* gr\p :o does n opt out "u p>agraph 7#a77;,b77iii77,i771 ! ,secret>y %all-- 7,i7 grant an adm9i/rative =be>ance )\t requir+ docum5tation f ! borr[]1 includ+ a =be>ance = any p]iod necess>y = ! ,secret>y to det]m9e ! borr[]'s eligibility = dis*>ge2 7,,ii7 notify ! borr[] ( ! option to decl9e t =be>ance & cont9ue mak+ paym5ts on ! loan2 7,,iii7 provide ! borr[] ) in=mation ab\t ! availability ( an income-bas$ repaym5t plan2 & 7,,iv7 if ! borr[]'s loan is 9 default-- 7aa7 susp5d collection activity on ! loan1 includ+ any g>ni%m5ts or (fsets1 until a decision on ! borr[]'s claim is issu$2 7bb7 notify ! borr[] ( ! susp5sion ( collection activity2 7cc7 notify ! borr[] t if ! ,secret>y det]m9es ! borr[] does n qualify = a dis*>ge ( ! loan1 collection activity w resume unless ! borr[] *ooses to make paym5ts "u any repaym5t plan1 includ+ income-bas$ repaym5t describ$ "u section #dic;,c2 & 7dd7 notify ! borr[] t if ! ,secret>y det]m9es ! borr[] does n qualify = a dis*>ge ( ! loan1 & if ! borr[] makes paym5ts "u any repaym5t plan1 includ+ an income-bas$ repaym5t1 z describ$ 9 item 7cc71 ! ,secret>y %all submit a report to ! consum] report+ ag5cies to :i* ! ,secret>y previ\sly made adv]se cr$it reports ) reg>d to ! borr[]'s loan "u ?is "p or "p ,b to remove ! borr[]'s record ( default & ! ,secret>y %all refund any collection co/s paid by ! borr[] subsequ5t to ! borr[] submitt+ an application "u p>agraph 7#a71 b prior to ! susp5sion ( ! collection activity1 z describ$ 9 item 7aa74 7ii7 ,) reg>d to ! fact-f9d+ process1 ! ,secret>y %all designate a ,dep>tm5t (ficial 7:i* %all n be an (ficial designat$ "u p>agraph 7#a77;,b77i77,,iii7 & %all be a /aff memb] 9 ! en=cem5t unit1 9 accordance ) section #ada7;g77 to-- 7,i7 notify ! in/itution ( high] education ( ! borr[] def5se application or ! initiation ( ! borr[] def5se claim2 7,,ii7 det]m9e :e!r ! borr[] has e/abli%$ a borr[] def5se1 :i* %all include-- 7aa7 consid]ation ( evid5ce or argum5t pres5t$ by ! borr[]2 & 7bb7 consid]ation ( additional in=mation1 includ+-- 7,,aa7 ,dep>tm5t records2 7,,bb7 any response or submission f ! in/itution2 & 7,,cc7 any additional in=mation2 & 7,,iii7 ^u ! borr[]'s reasonable reque/1 id5tify & provide to ! borr[] any records ! ,secret>y is consid]+ z "p ( ! borr[]'s claim4 7iii7 ,n lat] ?an #ah mon?s aft] ! date ( receipt ( an application "u p>agraph 7#a77;,a7 or 7#a77;,b77ii71 or ! initiation ( a claim "u p>agraph 7#a77;,b77i71 z ! case may be1 ! ,secret>y %all det]m9e if a borr[] or gr\p ( borr[]s has a successful borr[] def5se claim4 ,if ! ,secret>y fails to issue a det]m9ation by ! date t is #ah mon?s aft] ! date ( receipt ( su* application or initiation1 ! loan und]ly+ ! borr[] def5se claim %all be automatically dis*>g$4 7,b7 ,in/itution's response ,an in/itution %all provide in=mation to ! ,secret>y1 n lat] ?an #cj days aft] ! date ( a reque/ by ! ,secret>y1 & z direct$ by ! ,secret>y1 reg>d+ any response or submission t is reque/$ f ! ,secret>y relat+ to a borr[] def5se claim4 7#c7 ,/&>d ( evid5ce ,a borr[] def5se claim %all be approv$ "u ?is subsection1 if ! ,secret>y f9ds t a prepond]ance ( ! evid5ce %[s t ! borr[] has e/abli%$ a borr[] def5se t meets ! requirem5ts ( ?is subsection4 7#d7 ,successful borr[] def5se claim 7,a7 ,borr[] relief ,if a borr[] is det]m9$ to h a borr[] def5se 9 accordance ) ?is subsection1 ! ,secret>y %all-- 7i7 dis*>ge ! borr[] ( ! borr[]'s obligation to repay ! loan 7includ+ associat$ int]e/1 co/s1 & fees t ! borr[] w\ld o!rwise be obligat$ to pay7 9 reg>ds to :i* !re is a borr[] def5se2 7ii7 notify ! borr[] ( ! dis*>ge describ$ 9 clause 7i7 & ! o!r in=mation describ$ 9 subp>agraph 7,c72 7iii7 retroactively waive any int]e/ t accru$ aft] ! borr[] submitt$ an application "u ?is subsection2 7iv7 provide ! borr[] su* fur!r relief z ! ,secret>y det]m9es is appropriate "u ! circum/ances1 :i* %all include-- 7,i7 reimburs+ ! borr[] = am\nts paid t[>d ! loan volunt>ily or ?r\gh en=c$ collection2 & 7,,ii7 det]m9+ t ! borr[] is n 9 default on ! loan & is eligible to receive assi/ance "u title ,,iv2 & 7v7 n lat] ?an #cj days aft] ! date ( su* det]m9ation1 submit new reports to consum] report+ ag5cies to :i* ! ,secret>y previ\sly made adv]se cr$it reports ) reg>d to ! borr[]'s loan "u ?is "p or "p ,b4 7,b7 ,am\nt ( loan dis*>ge 7i7 ,9 ,g5]al ,!re %all be a presumption t on ! f9d+ ( a successful borr[] def5se claim1 ! full am\nt ( ! borr[]'s loan %all be dis*>g$ z describ$ 9 subp>agraph 7,a74 ,if ! ,secret>y det]m9es t dis*>ge ( ! full am\nt ( ! loan is n appropriate 9 a p>ticul> case1 ! ,secret>y %all provide ! borr[] )-- 7,i7 a writt5 explanation z to :y p>tial relief is appropriate2 & 7,,ii7 if ! borr[] def5se is a def5se bas$ on ,/ate law & describ$ 9 p>agraph 7#g77;,b77i7 or is a def5se describ$ 9 p>agraph 7#g77;,b77ii7 or 7#g77;,b77iii71 include an assurance t ! am\nt ( relief is n less ?an ! am\nt ( relief t w\ld be af=d$ "u ,/ate law4 7ii7 ,sub/antial misrepres5tation ,not)/&+ clause 7i71 9 ! case ( a det]m9ation t a borr[] def5se bas$ on p>agraph 7#g77;,b77iv7 has be5 e/abli%$1 ! full am\nt ( ! borr[]'s loan %all be dis*>g$4 7iii7 ,limitation ,! total am\nt ( relief grant$ ) respect to a borr[] def5se reg>d+ a loan "u ?is "p or "p ,b %all n exce$ ! am\nt ( ! loan "u ?is "p or "p ,b1 z ! case may be1 & any associat$ int]e/1 co/s1 & fees4 ,su* am\nt w be r$uc$ by ! am\nt ( any refund1 reimbursem5t1 indemnification1 re/itution1 comp5satory damages1 settlem5t1 debt =giv5ess1 dis*>ge1 cancellation1 compromise1 or any o!r f9ancial b5efit receiv$ by1 or on behalf (1 ! borr[] t 0 relat$ to ! borr[] def5se & t r$uc$ ! borr[]'s debt = ! loan "u ?is "p or "p ,b4 7iv7 ,relief = a non-,f$]al loan or out-(-pocket exp5ses ,any relief provid$ to a borr[]1 su* z relief = an education loan t is n a ,f$]al loan or refunds f a ,/ate tuition recov]y fund = out-(-pocket exp5ses1 %all n decrease ! am\nt ( relief t ! borr[] %all be entitl$ to = a loan "u ?is "p or "p ,b bas$ on a borr[] def5se4 7v7 ,m9imum am\nt ( relief ,a borr[] t has a borr[] def5se bas$ on ,/ate law & describ$ 9 p>agraph 7#g77;,b77i7 or a def5se describ$ 9 p>agraph 7#g77;,b77ii7 or 7#g77;,b77iii7 %all n receive an am\nt ( relief t is less ?an ! relief ! borr[] w\ld receive "u ! applicable ,/ate law4 7,c7 ,notification ,if a borr[] def5se is successful ! ,secret>y %all notify ! borr[] 7or ! entity t submitt$ ! application1 9 ! case ( an application describ$ 9 p>agraph 7#a77;,b77ii77 9 writ+-- 7i7 ( ! reasons = ! approval & ! evid5ce t 0 reli$ ^u2 7ii7 t ! borr[] is reliev$ ( ! obligation to repay ! loan 7or a portion ( ! loan1 z describ$ 9 subp>agraph 7,b77 & associat$ co/s & fees t ! borr[] w\ld o!rwise be obligat$ to pay2 7iii7 9 ! ev5t ! ,secret>y does n grant a dis*>ge ( ! full am\nt ( ! loan1 an explanation ( ! reason :y p>tial relief is grant$1 & 7if applicable7 an assurance describ$ 9 subp>agraph 7,b77i77,,ii72 7iv7 t ! borr[] w be reimburs$ = "s or all ( ! am\nts paid t[>d ! loan volunt>ily or ?r\gh en=c$ collection1 if applicable2 7v7 ( ! am\nt ( any portion ( ! loan t is due & payable to ! ,secret>y2 7vi7 t if any balance rema9s on ! loan1 ! loan w return to ! /atus prior to ! borr[]'s submission ( ! application1 except t 9 ! case ( a loan t 0 9 default prior to su* application1 ! borr[] %all fir/ be remov$ f default /atus & giv5 ! opportunity to ent] repaym5t1 includ+ income-bas$ repaym5t describ$ "u section #dic;,c1 be=e ! loan w be s5t to collections2 7vii7 t if ! borr[] *ooses to make paym5ts1 includ+ paym5ts "u income-bas$ repaym5t z describ$ 9 clause 7vi71 ! ,secret>y %all-- 7,i7 submit a report to ! consum] report+ ag5cies to :i* ! ,secret>y previ\sly made adv]se cr$it reports ) reg>d to ! borr[]'s loan "u ?is "p or "p ,b to remove ! record ( default2 & 7,,ii7 refund any collection co/s paid ) reg>d to t loan by ! borr[] subsequ5t to ! borr[] submitt+ an application "u p>agraph 7#a72 7viii7 t if only "s ( ! loan w be dis*>g$1 ! borr[] w h ! opportunity = reconsid]ation ( ! borr[]'s claim z describ$ 9 p>agraph 7#f72 7ix7 t ! borr[] is eligible to receive assi/ance "u title ,,iv1 if applicable2 & 7x7 t reports to consum] report+ ag5cies to :i* ! ,secret>y previ\sly made adv]se cr$it reports ) reg>d to ! borr[]'s loan %all be updat$ n lat] ?an #cj days f ! date ! det]m9ation "u ?is p>agraph 0 made4 7#e7 ,d5ial ( borr[] def5se claim ,if ! ,secret>y d5ies a borr[] def5se1 ! ,secret>y %all retroactively waive a portion ( int]e/ t accru$ dur+ ! =be>ance p]iod 7z describ$ 9 subp>agraph 7,b77 & notify ! borr[]-- 7,a7 ( ! reasons = ! d5ial & ! evid5ce t 0 reli$ ^u2 7,b7 t ! int]e/ accru+ on ! relevant loan aft] ! fir/ #ab-mon? p]iod ( =be>ance t occurr$ f ! "t ! borr[]'s application 0 submitt$ "u ?is subsection w be retroactively waiv$2 7,c7 ( ! am\nt ( any portion ( ! loan t is due & payable to ! ,secret>y2 7,d7 :e!r ! ,secret>y w reimburse any am\nts previ\sly collect$ prior to ! susp5sion ( ! collection activity1 z describ$ 9 p>agraph 7#b77;,a77i77,,iv77aa72 7,e7 t if any balance rema9s on ! loan1 ! loan w return to ! /atus prior to ! borr[]'s submission ( ! application1 except t 9 ! case ( a loan t 0 9 default prior to su* application1 ! borr[] %all fir/ be remov$ f default /atus & giv5 ! opportunity to ent] repaym5t1 includ+ income-bas$ repaym5t describ$ "u section #dic;,c1 be=e ! loan w be s5t to collections2 & 7,f7 t ! borr[] %all h ! opportunity = reconsid]ation ( ! borr[]'s claim z describ$ 9 p>agraph 7#f74 7#f7 ,reconsid]ation 7,a7 ,9 ,g5]al ,! decision ( ! ,secret>y & any relief t may be grant$ on ! claim %all be consid]$ ! f9al ag5cy action t %all be subject to appeal 9 di/rict c\rt1 except t-- 7i7 if ! borr[] def5se is d5i$ 9 full or 9 "p1 ! borr[] may reque/ t ! ,secret>y reconsid] ! borr[] def5se ^u ! id5tification ( new evid5ce 9 support ( ! borr[]'s claim2 & 7ii7 ! ,secret>y may reop5 a borr[] def5se application at any "t to consid] evid5ce t 0 n consid]$ 9 mak+ ! previ\s decision on t application4 7,b7 ,prohibition on resc9d+ relief ,! ,secret>y %all n r$uce ! am\nt ( any relief t 0 previ\sly grant$ to a borr[] "u ?is section1 or re9/ate any am\nts ow$ on a previ\sly dis*>g$ loan4 7#g7 ,borr[] def5se claims & e/abli%+ a borr[] def5se 7,a7 ,claims 7i7 ,9 ,g5]al ,not)/&+ any o!r provision ( ,/ate or ,f$]al law1 a borr[] may claim z a def5se to repaym5t ( a loan made "u ?is "p or "p ,b any borr[] def5se e/abli%$ "u subp>agraph 7,b74 ,su* a borr[] def5se claim may include-- 7,i7 a def5se to repaym5t ( am\nts ow$ to ! ,secret>y on a loan "u ?is "p or "p ,b1 9 :ole or 9 "p2 & 7,,ii7 a "r to recov] am\nts previ\sly collect$ by ! ,secret>y on su* loan1 9 :ole or 9 "p4 7ii7 ,consolidation loan ,9 ! case ( a ,direct ,consolidation ,loan-- 7,i7 ! ,secret>y %all consid] a borr[] def5se claim to su* loan by det]m9+ :e!r a borr[] def5se describ$ 9 subp>agraph 7,b7 has be5 e/abli%$ ) reg>d to a loan made "u ?is "p or "p ,b t 0 paid (f by ! ,direct ,consolidation ,loan2 7,,ii7 ! ,secret>y %all dis*>ge ! appropriate portion ( ! ,direct ,consolidation ,loan if ! borr[] is det]m9$ to h a borr[] def5se ) respect to a loan made "u ?is "p or "p ,b t 0 paid (f by ! ,direct ,consolidation ,loan2 & 7,,iii7 ! ,secret>y %all return to ! borr[] any paym5ts made by ! borr[] or o!rwise recov]$ on ! ,direct ,consolidation ,loan or ! loans t 7 paid (f by ! ,direct ,consolidation ,loan t exce$ ! am\nt ow$ on t portion ( ! ,direct ,consolidation ,loan t 0 n dis*>g$1 if-- 7aa7 ! borr[] is det]m9$ to h a borr[] def5se ) respect to a loan made "u ?is "p or "p ,b t 0 paid (f by ! ,direct ,consolidation ,loan2 & 7bb7 ! paym5t 0 made directly to ! ,secret>y on ! loan4 7iii7 ,,plus ,loan ,9 ! case ( a ,direct ,,plus ,loan made on behalf ( a /ud5t1 ! ,secret>y %all consid] a borr[] def5se claim relat$ to ! /ud5t on ^: behalf ! ,direct ,,plus ,loan 0 borr[$4 ,any am\nts dis*>g$ w be appli$ to ! p>5t or borr[] ( ! ,direct ,,plus ,loan4 7,b7 ,e/abli%+ a borr[] def5se ,a borr[] has e/abli%$ a borr[] def5se if-- 7i7 ! borr[] 7:e!r z an individual or z a memb] ( a gr\p or class7 or a gov]nm5t ag5cy1 has obta9$ aga9/ ! in/itution ( high] education a judgm5t relat+ to ! borr[]'s claim bas$ on ,/ate or ,f$]al law 9 a c\rt or adm9i/rative tribunal ( compet5t jurisdiction2 7ii7 ! in/itution ( high] education t ! borr[] att5d$ us+ a loan "u ?is "p fail$ to p]=m ! in/itution's obligations "u ! t]ms ( a contract ) ! borr[]2 7iii7 ! borr[] 0 subject to any act or omission ( ! in/itution relat$ to ! mak+ ( ! loan = enrollm5t at ! in/itution or ! provision ( educational s]vices = :i* ! loan 0 provid$ t w\ld give rise to a cause ( action aga9/ ! in/itution "u applicable ,/ate law2 7iv7 ! in/itution ( high] education1 a ?ird s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor made a sub/antial misrepres5tation2 or 7v7 ! in/itution has made any o!r act or omission t ! ,secret>y1 ?r\gh regulations1 or any ,f$]al law1 has e/abli%$ is an act or omission t con/itutes a borr[] def5se "u ?is subsection4 7,c7 ,limitation ,a violation by an in/itution ( a requirem5t 9 ?is ,act 7includ+ implem5t+ regulations7 is n a basis = a borr[] def5se "u ?is subsection unless ! violation w\ld o!rwise con/itute a basis = a borr[] def5se1 z describ$ 9 ?is p>agraph4 7#h7 ,f9d+ ( sub/antial misrepres5tation ,an eligible in/itution is deem$ to h engag$ 9 a sub/antial misrepres5tation = purposes ( ?is subsection :5 an eligible in/itution1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor1 commits a sub/antial misrepres5tation1 z def9$ 9 section #dhi;,a4 ,a sworn /atem5t or atte/ation f ! borr[] %all be consid]$ z evid5ce1 &1 9 ! ,secret>y's discretion1 may be suffici5t evid5ce = ! ,secret>y to f9d t a sub/antial misrepres5tation 0 made to a borr[]4 ,if ! ,secret>y det]m9es t an eligible in/itution1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor1 has engag$ 9 a sub/antial misrepres5tation1 ! ,secret>y %all1 9 addition to f9d+ a borr[] def5se "u ?is section1 take en=cem5t action aga9/ ! in/itution1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor1 9 accordance ) section #dhi;,a4 7#i7 ,action aga9/ ! in/itution ,if a borr[] is det]m9$ to h e/abli%$ a borr[] def5se 9 accordance ) ?is subsection1 ! ,secret>y %all initiate an appropriate proce$+ to require ! in/itution ^: act or omission result$ 9 ! borr[] def5se to repay to ! ,secret>y ! am\nt dis*>g$ "u p>agraph 7#g77;,a7 :e!r by (fset1 claim on a lett] ( cr$it1 or o!r protection provid$ by ! in/itution4 7#aj7 ,report+ ,n less ?an once e #c mon?s1 ! ,secret>y %all publi% on a website1 & report to ,congress1 data-- 7,a7 = ea* in/itution1 on-- 7i7 ! numb] ( claims consid]$ "u ?is subsection2 7ii7 ! numb] ( ^? claims p5d+ & ! date ( receipt ( ! application1 or ! date ( ! initiation ( ! claim by ! ,secret>y1 ( ^? claims2 & 7iii7 ! numb] ( claims "u ?is subsection = :i* a det]m9ation has be5 made & ! results ( ea* su* det]m9ation2 & 7,b7 9 ! aggregate1 & disaggregat$ by ,/ate1 on-- 7i7 ! total numb] ( claims p5d+ "u ?is subsection2 7ii7 ! numb] ( ^? claims t are approv$ borr[] def5se claims & total doll> am\nt ( relief2 7iii7 ! p]c5tage ( ^? total approv$ claims receiv+ p>tial relief & ! m$ian /ud5t loan debt rema9+ = borr[]s receiv+ p>tial relief2 & 7iv7 ! numb] ( ^? claims t are d5i$ borr[] def5se claims4 4 ,,iii ,ensur+ integrity at in/itutions ( high] education #cja4 ,re/rictions on s\rces ( funds = recruit+ & m>ket+ activities 7a7 ,repeal ,section #aai ( ! ,high] ,education ,opportunity ,act 7#bj ,u4,s4,c4 #ajaam7 is repeal$4 7b7 ,am5dm5t to ! ,high] ,education ,act ( #aife ,"p ,b ( title ,i ( ! ,act 7#bj ,u4,s4,c4 #ajaa et seq471 z am5d$ by title ,i1 is fur!r am5d$ by add+ at ! end ! foll[+3 #abf4 ,use ( ,f$]al funds2 re/rictions on s\rces ( funds = recruit+ & m>ket+ activities 7a7 ,prohibition 7#a7 ,9 ,g5]al ,no ,f$]al /ud5t aid fund+ "u ?is ,act receiv$ by an in/itution ( high] education may be us$ to pay any p]son = influ5c+ or attempt+ to influ5ce an (fic] or employee ( any ag5cy1 a ,memb] ( ,congress1 an (fic] or employee ( ,congress1 or an employee ( a ,memb] ( ,congress 9 connection ) any ,f$]al action describ$ 9 p>agraph 7#b74 7#b7 ,applicability ,! prohibition 9 p>agraph 7#a7 applies ) respect to ! foll[+ ,f$]al actions3 7,a7 ,! aw>d+ ( any ,f$]al contract4 7,b7 ,! mak+ ( any ,f$]al grant4 7,c7 ,! mak+ ( any ,f$]al loan4 7,d7 ,! ent]+ into ( any ,f$]al coop]ative agreem5t4 7,e7 ,! ext5sion1 cont9uation1 r5ewal1 am5dm5t1 or modification ( any ,f$]al contract1 grant1 loan1 or coop]ative agreem5t4 7b7 ,lobby+ & ,e>m>ks ,no ,f$]al /ud5t aid fund+ "u ?is ,act may be us$ to hire a regi/]$ lobbyi/ or pay any p]son or entity = secur+ an e>m>k4 7c7 ,re/rictions on s\rces ( funds = recruit+ & m>ket+ activities 7#a7 ,9 g5]al ,an in/itution ( high] education may n use rev5ues d]iv$ f ,f$]al education assi/ance funds = recruit+ or m>ket+ activities describ$ 9 p>agraph 7#b74 7#b7 ,cov]$ activities 7,a7 ,9 ,g5]al ,except z provid$ 9 subp>agraph 7,b71 ! recruit+ & m>ket+ activities subject to p>agraph 7#a7 %all include ! foll[+3 7i7 ,adv]tis+ & promotion activities1 includ+ paid ann\ncem5ts 9 newspap]s1 magaz9es1 radio1 television1 billbo>ds1 electronic m$ia1 nam+ rights1 or any o!r public m$ium ( communication1 includ+ pay+ = displays or promotions at job fairs1 milit>y in/allations1 or college recruit+ ev5ts4 7ii7 ,ef=ts to id5tify & attract prospective /ud5ts1 ei!r directly or ?r\gh a ?ird p>ty contractor1 includ+ contact conc]n+ a prospective /ud5t's pot5tial enrollm5t or application = grant1 loan1 or "w assi/ance "u title ,,iv or p>ticipation 9 preadmission or advis+ activities1 includ+-- 7,i7 pay+ employees responsible = ov]see+ enrollm5t & = contact+ pot5tial /ud5ts 9-p]son1 by phone1 by email1 or by o!r ,int]net communications reg>d+ enrollm5t2 & 7,,ii7 solicit+ an individual to provide contact in=mation to an in/itution ( high] education1 includ+ websites e/abli%$ = su* purpose & funds paid to ?ird p>ties = su* purpose4 7iii7 ,su* o!r activities z ! ,secret>y may prescribe1 includ+ pay+ = promotion or sponsor%ip ( education or milit>y-relat$ associations4 7,b7 ,exceptions ,any activity t is requir$ z a condition ( receipt ( funds by an in/itution "u title ,,iv1 is specifically au?oriz$ "u su* title1 or is o!rwise specifi$ by ! ,secret>y1 %all n be consid]$ to be a cov]$ activity "u ?is p>agraph4 7#c7 ,rule ( con/ruction ,no?+ 9 ?is subsection %all be con/ru$ z a limitation on ! use by an in/itution ( rev5ues d]iv$ f s\rces o!r ?an ,f$]al education assi/ance funds4 7#d7 ,reports ,ea* in/itution ( high] education1 t d]ives #fe p]c5t or m ( rev5ues f ,f$]al education assi/ance funds %all report annually to ! ,secret>y & to ,congress & %all include 9 su* report-- 7,a7 ! in/itution's exp5ditures on adv]tis+1 m>ket+1 & recruit+2 7,b7 a v]ification f an indep5d5t auditor t ! in/itution is 9 compliance ) ! requirem5ts ( ?is subsection2 & 7,c7 a c]tification f ! in/itution t ! in/itution is 9 compliance ) ! requirem5ts ( ?is subsection4 7#e7 ,f$]al education assi/ance funds ,9 ?is subsection1 ! t]m ,f$]al education assi/ance funds has ! mean+ giv5 t t]m 9 section #ajb7;b77#b77;,b7 7z add$ by section #aja ( ! ,prev5t+ ,risky ,op]ations f ,?reat5+ ! ,education & ,c>e] ,trajectories ( ,/ud5ts ,act ( #bjai74 7d7 ,c]tification ,ea* in/itution ( high] education receiv+ ,f$]al fund+ "u ?is ,act1 z a condition = receiv+ su* fund+1 %all annually c]tify to ! ,secret>y t ! requirem5ts ( ?is section h be5 met4 7e7 ,actions ,to ,implem5t & ,en=ce ,! ,secret>y %all take su* actions z are necess>y to ensure t ! provisions ( ?is section are implem5t$ & en=c$4 4 #cjb4 ,/r5g!n+ ! inc5tive comp5sation ban 7a7 ,s5se ( congress reg>d+ inc5tive comp5sation ,x is ! s5se ( ,congress t-- 7#a7 ! use ( commission-paid sales practices1 also kn[n z inc5tive comp5sation1 leads to ov]ly aggressive1 manipulative1 & (t5 mislead+ tactics 9 adv]tis+1 recruit+1 & c\nsel+ /ud5ts2 7#b7 su* practices are inappropriate at any in/itution b5efitt+ f ,f$]al fund+ & an impli$ ,f$]al endorsem5t ?r\gh p>ticipation 9 programs "u title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj et seq472 7#c7 previ\s inve/igations by ! ,f$]al ,trade ,commission1 z well z by ,congress1 includ+ ! ,p]man5t ,subcommittee on ,inve/igations ( ! ,s5ate 7ref]r$ to z ! ,nunn ,commission7 9 #aiia & ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ( ! ,s5ate 9 #bjab1 f\nd t inc5tive comp5sation s*emes frequ5tly contribute to high-pressure sales & o!r pr$atory abuses at f$]ally support$ s*ools2 7#d7 ! ban on inc5tive comp5sation "u section #dhg7;a77#bj7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajid7;a77#bj771 z am5d$ by subsection 7b71 is int5d$ to preclude ! use ( su* abusive practices at any po9t 9 ! process ( recruit+ or enroll+ /ud5ts1 or assi/+ /ud5ts 9 secur+ employm5t2 & 7#e7 an in/itution t receives assi/ance "u title ,,iv ( su* ,act rema9s responsible = ! actions ( any entity t p]=ms functions & tasks on ! in/itution's behalf1 & ^! responsibilities include ensur+ t employees1 ?ird p>ty s]vic]s t contract ) su* in/itutions1 & ?ird p>ty contractors are n paid = s]vices t w\ld conv]t ^! paym5ts into prohibit$ inc5tive comp5sation because ( ! activities 9 :i* ! employees1 ?ird p>ty s]vic]s t contract ) su* in/itutions1 or ?ird p>ty contractors engage4 7b7 ,am5dm5ts ,section #dhg 7#bj ,u4,s4,c4 #ajid7 is am5d$-- 7#a7 9 subsection 7a71 by /rik+ p>agraph 7#bj7 & ins]t+ ! foll[+3 7#bj7 ,! in/itution1 any ?ird p>ty s]vic] t contracts ) su* in/itution1 & any ?ird p>ty contractor w comply ) ! ban on prohibit$ inc5tive comp5sation ban "u subsection 7j74 2 & 7#b7 by add+ at ! end ! foll[+3 7j7 ,inc5tive comp5sation ban 7#a7 ,def9itions ,9 ?is subsection3 7,a7 ,cov]$ activity 7i7 ,9 g5]al ,! t]m cov]$ activity means any ( ! foll[+ activities3 7,i7 ,secur+ enrollm5t ( /ud5ts into ! in/itution ( high] education1 :i* includes-- 7aa7 activities t an individual or entity engages 9 at any po9t 9 "t dur+ an educational program = ! purpose ( ! admission or matriculation ( /ud5ts = any p]iod ( "t1 includ+ contact 9 any =m ) a prospective /ud5t1 su* z contact ?r\gh preadmission or advis+ activities1 s*$ul+ an appo9tm5t to visit ! enrollm5t (fice or any o!r (fice ( ! in/itution1 att5dance at su* an appo9tm5t1 or involvem5t 9 a prospective /ud5t's sign+ ( an enrollm5t agreem5t or f9ancial aid application2 & 7bb7 o!r recruitm5t & m>ket+ activities4 7,,ii7 ,secur+ or aw>d+ f9ancial aid to /ud5ts = att5dance at ! in/itution1 includ+-- 7aa7 any involvem5t 9 a prospective /ud5t's sign+ ( a f9ancial aid application2 & 7bb7 complet+ f9ancial aid applications on behalf ( a prospective applicant 7includ+ activities au?oriz$ by ! ,dep>tm5t1 su* z ! ,,faa ,access tool1 :i* c be us$ to ent]1 correct1 v]ify1 or analyze f9ancial aid application data74 7,,iii7 ,improv+ job placem5t activities = /ud5ts att5d+1 or :o h att5d$1 ! in/itution4 7,,iv7 ,r$uc+ ! numb] ( /ud5ts :o default on _! /ud5t loans4 7ii7 ,exclusion ,! t]m cov]$ activity does n include-- 7,i7 ! provision ( /ud5t contact in=mation = prospective /ud5ts1 if any paym5t = su* s]vice is n bas$ on-- 7aa7 any additional conduct or action by ! ?ird p>ty s]vic] t contracts ) su* in/itutions or ?ird p>ty contractor or ! prospective /ud5t1 su* z p>ticipation 9 preadmission or advis+ activities1 s*$ul+ an appo9tm5t to visit ! enrollm5t (fice or any o!r (fice ( ! in/itution or att5dance at su* an appo9tm5t1 or ! sign+1 or be+ involv$ 9 ! sign+1 ( a prospective /ud5t's enrollm5t agreem5t or f9ancial aid application2 or 7bb7 ! numb] ( /ud5ts 7calculat$ at any po9t 9 "t ( an educational program7 :o apply = enrollm5t1 are aw>d$ f9ancial aid1 or are enroll$ = any p]iod ( "t1 includ+ ?r\gh completion ( an educational program2 or 7,,ii7 /ud5t support s]vices n includ$ 9 ! cov]$ activities "u clause 7i74 7,b7 ,prohibit$ inc5tive comp5sation 7i7 ,9 g5]al ,! t]m prohibit$ inc5tive comp5sation includes-- 7,i7 any commission1 bonus1 or o!r inc5tive paym5t1 ( a sum ( money or o!r item ( value1 paid to or giv5 to a p]son or an entity t is n a fix$ sal>y or wages & t is paid or giv5 = meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 relat+ to cov]$ activities2 7,,ii7 o!r direct or indirect =ms ( paym5t = meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 relat+ to cov]$ activities1 includ+-- 7aa7 tuition %>+ z a measure ( comp5sation :5 bas$ on a =mula t relates ! am\nt payable to ! entity to meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 z a result ( ! cov]$ activity ( ! entity2 7bb7 pr(it-%>+ plans f :i* di/ributions are made to individuals bas$ on meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 z a result ( cov]$ activities by ! recipi5t2 7cc7 sal>y adju/m5ts t take ! =m ( inc5tive paym5ts bas$ directly or indirectly on meet+ a quota or num]ical t>get4 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 ) respect to a cov]$ activity2 7dd7 paym5ts bas$ on meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 relat+ to cov]$ activities2 & 7ee7 bonuses or o!r paym5ts bas$ on meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 relat+ to cov]$ activities2 7,,iii7 a decrease or removal ( a paym5t or b5efit describ$ 9 subclause 7,i7 or 7,,ii7 7& n exclud$ "u clause 7ii771 if t decrease or removal is bas$ directly or indirectly on meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 relat+ to cov]$ activities2 & 7,,iv7 a *ange 9 employm5t /atus1 su* z a promotion1 demotion1 or t]m9ation if bas$ on meet+ a c]ta9 quota or num]ical t>get1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 relat+ to cov]$ activities4 7ii7 ,exclusions ,! foll[+ paym5ts or b5efits %all n be consid]$ prohibit$ inc5tive comp5sation1 if ! paym5t or b5efit is det]m9$ 9 a way t is n relat$ to ! role ! recipi5t plays 9 any cov]$ activity3 7,i7 ,a pr(it %>+ plan1 includ+ a qualifi$ ca% or def]r$ arrangem5t 7z def9$ 9 section #dja7k77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 (f]$ to all employees on a basis t is neutral ) respect to ! role ! recipi5t plays 9 any cov]$ activity4 7,,ii7 ,an employee b5efits plan (f]$ to all employees on a basis t is neutral ) respect to ! role ! recipi5t plays 9 any cov]$ activity4 7,,iii7 ,a co/ ( liv+ adju/m5t4 7,,iv7 ,a paym5t to a s5ior executive ) responsibility = ! developm5t ( policies t affect m>ket+ & recruitm5t1 enrollm5t1 f9ancial aid1 or /ud5t support s]vices1 includ+ job placem5t s]vices4 7,c7 ,recruitm5t & m>ket+ activity ,! t]m recruitm5t & m>ket+ activity means-- 7i7 broad in=mation dissem9ation & dissem9at+ t>get$ in=mation to individuals2 7ii7 solicit+ individuals reg>d+ an in/itution2 7iii7 adv]tis+ a program t dissem9ates in=mation to pot5tial /ud5ts2 7iv7 collect+ contact in=mation2 7v7 contact+ pot5tial applicants = ! admission or matriculation ( a /ud5t into an in/itution2 7vi7 scre5+ pre-enrollm5t in=mation to det]m9e :e!r a prospective /ud5t meets ! requirem5ts t an in/itution has e/abli%$ = enrollm5t 9 an academic program2 7vii7 aid+ individuals 9 fill+ out any in=mation relat+ to an application = admission or matriculation into an in/itution2 7viii7 det]m9+ :e!r an enrollm5t application is mat]ially complete1 z long z ! enrollm5t decision rema9s ) ! in/itution2 or 7ix7 any o!r activity describ$ 9 section #abf7;d77#b74 7,d7 ,/ud5t support s]vices ,! t]m /ud5t support s]vices means any ( ! foll[+ s]vices3 7i7 ,c\nsel+ or o!r nonacademic support activities provid$ to /ud5ts t is n a cov]$ activity4 7ii7 ,in/itutional s]vices provid$ to /ud5ts1 su* z in=mation te*nology assi/ance1 food s]vice1 or h\s+1 t is n a cov]$ activity4 7iii7 ,o!r s]vices involv$ 9 ! adm9i/ration ( support = /ud5ts t is n a cov]$ activity4 7#b7 ,inc5tive comp5sation ban 7,a7 ,9 g5]al ,! in/itution1 any ?ird p>ty s]vic] t contracts ) su* in/itution1 & any ?ird p>ty contractor %all n provide any prohibit$ inc5tive comp5sation to any p]son or entity4 7,b7 ,applicability ,! ban on prohibit$ inc5tive comp5sation "u ?is subsection applies to any entity or individual engag$ 9 any cov]$ activity1 includ+-- 7i7 ) respect to an entity engag$ 9 any /ud5t recruitm5t or admission activity or 9 mak+ decisions ab\t ! aw>d ( f9ancial aid1 any in/itution or entity t und]takes ! recruit+ or ! admitt+ ( /ud5ts or t makes decisions ab\t & aw>ds program funds "u ?is title2 & 7ii7 ) respect to an individual engag$ 9 any /ud5t recruitm5t or admission activity or 9 mak+ decisions ab\t ! aw>d ( f9ancial aid-- 7,i7 any employee :o und]takes recruit+ or admitt+ ( /ud5ts or :o makes decisions ab\t & aw>ds program funds "u ?is title2 & 7,,ii7 any high]-level employee ) responsibility = recruitm5t or admission ( /ud5ts1 or mak+ decisions ab\t aw>d+ program funds "u ?is title4 7,c7 ,exclusion ( c]ta9 employees ,! ban on prohibit$ inc5tive comp5sation "u ?is subsection %all n apply to any s5ior manag] or executive level employee :o-- 7i7 is involv$ only 9 ! developm5t ( policy relat$ to ! mann] 9 :i* m>ket+ & recruitm5t1 enrollm5t1 f9ancial aid1 or /ud5t support s]vices w be pursu$ or provid$2 & 7ii7 does n engage 9 individual /ud5t contact or o!r cov]$ activities4 7,d7 ,individual ) multiple adju/m5ts to comp5sation ,an employee ( an in/itution1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor1 :o receives multiple adju/m5ts to comp5sation 9 a cal5d> ye> & is engag$ 9 a cov]$ activity %all be consid]$ to be engag$ 9 prohibit$ inc5tive comp5sation if ! adju/m5ts create comp5sation t is bas$ 9 any "p1 directly or indirectly1 ^u meet+ c]ta9 quotas or num]ical t>gets1 or avoid+ p5alties = a b5*m>k set 9 ,f$]al law1 reg>d+ ^? cov]$ activities4 7#c7 ,notice ( inc5tive comp5sation ban 7,a7 ,notice to s]vic] & contractor ,! in/itution %all provide notice ( ! ban on prohibit$ inc5tive comp5sation "u ?is subsection at lea/ once a ye> to ea* ?ird p>ty s]vic] & ?ird p>ty contractor t contracts ) ! in/itution4 7,b7 ,notice to employees ,! in/itution1 & any ?ird p>ty contractor or ?ird p>ty s]vic] t contracts ) su* in/itution1 %all-- 7i7 provide notice ( ! ban on prohibit$ inc5tive comp5sation "u ?is subsection at lea/ once a ye> to employees2 & 7ii7 publi% a cle> /atem5t 9 all int]nal recruitm5t mat]ials1 includ+ guides or manuals1 ackn[l$g+ ! ban on prohibit$ inc5tive comp5sation "u ?is subsection4 7#d7 ,consequ5ces = inc5tive comp5sation violation 7,a7 ,9 g5]al ,! ,secret>y1 9 coord9ation ) ! ,(fice ( ! ,inspector ,g5]al ( ! ,dep>tm5t ( ,education1 %all develop a writt5 policy = ! en=cem5t ( ! ban on prohibit$ inc5tive comp5sation "u ?is subsection1 & %all update t policy z ne$$4 7,b7 ,cont5ts ( policy ,! policy develop$ "u subp>agraph 7,a7-- 7i7 %all require t compliance review occur on an annual basis2 7ii7 may include automatic trigg]s = inquiries by ! ,dep>tm5t or regul> secret %opp] or audit-bas$ inve/igations to ensure t in/itutions ( high] education rema9 9 compliance ) ! ban2 & 7iii7 %all expla9 ! range ( sanctions1 z describ$ 9 section #dhi;,a1 t ! ,secret>y may c>ry out to en=ce ?is subsection4 7,c7 ,report ,! ,dep>tm5t %all publi% an annual report1 & %all submit t report to ! au?oriz+ committees & ! ,=-,pr(it ,education ,ov]sight ,coord9ation ,committee e/abli%$ "u section #abe1 :i* %all include-- 7i7 a description ( ! /atus ( any inve/igations conduct$ "u ?is subsection2 7ii7 ! names ( in/itutions f\nd to be n 9 compliance ) ?is subsection2 7iii7 ! sanctions ! non-compliant in/itution ( high] education fac$2 & 7iv7 9 ! case ( an in/itution subject to liability = funds "u ?is title pursuant to subp>agraph 7,b77iii71 ! am\nt ( su* liability4 4 #cjc4 ,def9ition ( nonpr(it in/itution ( high] education ,section #ajc 7#bj ,u4,s4,c4 #ajjc7 is am5d$ by /rik+ p>agraph 7#ac7 & ins]t+ ! foll[+3 7#ac7 ,nonpr(it 7,a7 ,9 g5]al ,! t]m nonpr(it-- 7i7 z appli$ to a s*ool1 ag5cy1 organization1 or in/itution1 means a s*ool1 ag5cy1 organization1 or in/itution controll$1 own$1 & op]at$ by "o or m nonpr(it corporations or associations1 no "p ( ! net e>n+s ( :i* inures1 or may lawfully inure1 to ! b5efit ( any private %>ehold] or individual2 & 7ii7 z appli$ to an in/itution ( high] education1 means an in/itution-- 7,i7 t meets ! requirem5ts ( subp>agraph 7,a72 7,,ii7 t is an organization describ$ 9 section #agj7;b77#a77;,a77ii7 or 7vi7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 & 7,,iii7 ) respect to :i*-- 7aa7 no memb] ( ! gov]n+ bo>d ( ! in/itution 7o!r ?an any ex (ficio memb] s]v+ at ! pleasure ( ! rema9d] ( ! gov]n+ bo>d & receiv+ a fix$ sal>y7 receives any sub/antial direct or indirect economic b5efit 7includ+ a lease1 promissory note1 or o!r contract7 f ! in/itution2 & 7bb7 no p]son ) ! p[] to appo9t or remove memb]s ( ! gov]n+ bo>d receives any su* sub/antial direct or indirect economic b5efit 7includ+ a lease1 promissory note1 or o!r contract7 f ! in/itution4 7,b7 ,exclusions 7i7 ,9 g5]al ,an in/itution ( high] education %all n be consid]$ a nonpr(it in/itution ( high] education1 z def9$ 9 ?is p>agraph1 if-- 7,i7 "o or m core functions are "u ! control (1 or subject to significant direction f an entity t is n a public in/itution ( high] education or is n =m$ z a nonpr(it corporation2 or 7,,ii7 a sub/antial %>e ( ! assets ( ! in/itution are committ$ to a jo9t v5ture ) a p]son or entity t is n a public in/itution ( high] education & is n a nonpr(it corporation1 & ! core functions ( ! v5ture are conduct$ by1 "u ! control (1 or subject to significant direction f t p]son or entity4 7ii7 ,presumption ( significant direction ,!re %all be a conclusive presumption t an entity ex]cises significant direction if "o or m ( ! entity's employees or own]s s]ves z an (fic]1 memb] ( ! bo>d1 or p]son hold+ simil> au?ority = ! in/itution ( high] education4 4 #cjd4 ,def9ition ( public in/itution ( high] education ,section #ajc 7#bj ,u4,s4,c4 #ajjc71 z am5d$ by section #d1 is fur!r am5d$-- 7#a7 by ins]t+ aft] p>agraph 7#ad7 ! foll[+3 7#ae7 ,public in/itution ( high] education 7,a7 ,9 g5]al ,! t]m public1 :5 us$ ) respect to an in/itution ( high] education1 means an in/itution ( high] education-- 7i7 7,i7 op]at$ by-- 7aa7 ! ,f$]al ,gov]nm5t2 7bb7 a ,/ate1 z def9$ 9 section #ccjf7;j77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf2 7cc7 a local gov]nm5t1 z def9$ 9 section #acic7;a77#e7 ( su* ,code2 or 7dd7 an ,indian tribal gov]nm5t1 z def9$ 9 section #ggja7;a77#dj7 ( su* ,code2 7,,ii7 = :i* all obligations ( ! in/itution are valid & b9d+ obligations ( ! ,/ate1 local gov]nm5t1 or ,indian tribal gov]nm5t2 & 7,,iii7 = :i* ! full fai? & cr$it ( su* ,/ate1 local gov]nm5t1 or ,indian tribal gov]nm5t is pl$g$ = ! timely paym5t ( su* obligations2 or 7ii7 t is an in/rum5tality ( a ,/ate or local gov]nm5t 7z su* t]ms are def9$ 9 subp>agraph 7,a774 7,b7 ,in/rum5tality ( a /ate or local gov]nm5t ,an in/itution %all be consid]$ an in/rum5tality ( a ,/ate or local gov]nm5t = purposes ( ?is p>agraph if ! in/itution meets all ( ! foll[+ requirem5ts3 7i7 ,! employees ( ! in/itution are employees ( ! ,/ate or local gov]nm5t4 7ii7 ,any liability ( ! in/itution is payable to ! same degree z if ! liability 0 a liability ( ! ,/ate or local gov]nm5t1 9 ! ,/ate or local gov]nm5t jurisdiction :]e ! in/itution is =m$4 7iii7 ,! in/itution is subject to ! same f9ancial ov]sight & op5 public records laws z ! ,/ate or local gov]nm5t1 9 ! ,/ate or local gov]nm5t jurisdiction :]e ! in/itution is =m$4 4 #cje4 ,enhanc$ civil p5alties1 ,/ate en=cem5t1 & private "r ( action 7a7 ,9 g5]al ,"p ,g ( title ,,iv 7#bj ,u4,s4,c4 #ajhh et seq47 is am5d$ by ins]t+ aft] section #dhi ! foll[+3 #dhi;,a4 ,enhanc$ civil p5alties1 ,/ate en=cem5t1 & private "r ( action 7a7 ,def9itions ,9 ?is section3 7#a7 ,misrepres5tation ,! t]m misrepres5tation means any false1 errone\s1 or mislead+ /atem5t an eligible in/itution ( high] education1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor makes directly or indirectly to a /ud5t1 prospective /ud5t1 or any memb] ( ! public1 or to an accr$it+ ag5cy or association1 ,/ate approval ag5cy1 or ! ,secret>y4 ,a misrepres5tation includes-- 7,a7 ! mak+ ( a /atem5t t has ! likelihood or t5d5cy to deceive2 or 7,b7 ! omission ( any mat]ial facts necess>y 9 ord] to make any /atem5ts made1 9 light ( ! circum/ances "u :i* !y 7 made1 n false1 deceptive1 unfair1 errone\s1 or mislead+4 7#b7 ,(fic] ( an in/itution ( high] education ,! t]m (fic] ( an in/itution ( high] education includ+ at any nonpr(it1 =-pr(it1 or public in/itution ( high] education1 includes ! presid5t1 *ief executive (fic]1 & *ief f9ancial (fic] ( an in/itution ( high] education z well z all (fic]s *>g$ ) ov]see+ a pr9cipal bus9ess unit1 division1 or function1 su* z sales1 adm9i/ration1 or f9ance4 7#c7 ,prospective /ud5t ,! t]m prospective /ud5t means any individual :o has contact$ an in/itution ( high] education = ! purpose ( reque/+ in=mation ab\t enroll+ at ! in/itution ( high] education or :o has be5 contact$ directly or indirectly by ! in/itution ( high] education or a ?ird p>ty contractor ?r\gh adv]tis+ ab\t enroll+ at ! in/itution4 7#d7 ,/ate approval ag5cy ,! t]m ,/ate approval ag5cy means any ,/ate ag5cy t det]m9es :e!r an in/itution ( high] education is legally au?oriz$ )9 su* ,/ate to provide a program ( education beyond second>y education4 7#e7 ,sub/antial misrepres5tation ,! t]m sub/antial misrepres5tation means any misrepres5tation on :i* ! p]son to :om x 0 made c\ld reasonably be expect$ to rely1 or has reasonably reli$1 to t p]son's detrim5t4 7b7 ,limitation1 susp5sion1 or t]m9ation ( eligibility /atus 7#a7 ,9 g5]al ,^u det]m9ation1 aft] reasonable notice & opportunity = a he>+1 t an eligible in/itution1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor has violat$ or fail$ to c>ry out any provision ( ?is title1 any regulation prescrib$ "u ?is title1 or any applicable special arrangem5t1 agreem5t1 or limitation1 ! ,secret>y may limit1 susp5d1 or t]m9ate ! p>ticipation ( t in/itution 9 any program "u ?is title1 or ! eligibility ( t ?ird p>ty contractor or ?ird p>ty s]vic] to contract ) any in/itution1 subject to ! requirem5ts ( p>agraph 7#b74 7#b7 ,susp5sion proc$ures ,no p]iod ( susp5sion "u ?is section %all exce$ #fj days unless ! in/itution & ! ,secret>y agree to an ext5sion or unless limitation or t]m9ation proce$+s are initiat$ by ! ,secret>y )9 t p]iod ( "t4 7#c7 ,sub/antial misrepres5tation ,^u det]m9ation1 aft] reasonable notice & opportunity = a he>+1 t an eligible in/itution1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor has engag$ 9 sub/antial misrepres5tation1 includ+ a misrepres5tation relat+ to ! nature ( an educational program1 f9ancial *>ges1 ! space availability 9 a program ( ! in/itution = :i* a /ud5t is consid]+ enrollm5t1 admission requirem5ts1 ! transf]ability ( cr$its1 :e!r "o ( t in/itution's programs meets necess>y ,/ate /&>ds to obta9 c]tification or sit = lic5s+ exam9ations1 ! passage rates ( /ud5ts 9 obta9+ c]tifications or sitt+ = lic5s+ exam9ations1 or ! employability or e>n+s ( graduates1 ! ,secret>y may susp5d1 limit1 or t]m9ate ! eligibility /atus = any or all programs "u ?is title ( any o!rwise eligible in/itution1 or ( any ?ird p>ty contractor or ?ird p>ty s]vic] to contract ) any in/itution1 9 accordance ) proc$ures specifi$ 9 p>agraph 7#a71 until ! ,secret>y f9ds t su* practices h be5 correct$4 7c7 ,civil p5alties 7#a7 ,9 ,g5]al ,! ,secret>y %all impose a civil p5alty ^u an eligible in/itution1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor1 ^u mak+ a det]m9ation1 aft] reasonable notice & opportunity = a he>+1 t an eligible in/itution1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor has-- 7,a7 violat$ or fail$ to c>ry out any provision ( ?is title or any regulation prescrib$ "u ?is title2 or 7,b7 engag$ 9 a sub/antial misrepres5tation1 includ+ a sub/antial misrepres5tation describ$ 9 subsection 7b77#c74 7#b7 ,am\nt ( civil p5alties 7,a7 ,a civil p5alty impos$ = a violation or failure describ$ "u p>agraph 7#a77;,a7 %all n exce$ #ajj1jjj 7subject to su* adju/m5ts = inflation z may be prescrib$ 9 regulation7 = ea* su* violation4 7,b7 ,a civil p5alty impos$ = a violation describ$ "u p>agraph 7#a77;,b7 %all be 9 an am\nt n to exce$ ! great] (-- 7i7 #ajj1jjj 7subject to su* adju/m5ts = inflation z may be prescrib$ 9 regulation7 = ea* su* violation2 or 7ii7 7,i7 9 ! case ( an in/itution1 #a4j p]c5t ( ! am\nt ( funds ! in/itution receiv$ ?r\gh ?is title 9 ! mo/ rec5t aw>d ye> prior to ! det]m9ation = ea* su* violation2 & 7,,ii7 9 ! case ( a ?ird p>ty s]vic] t contracts ) su* in/itution or a ?ird p>ty contractor1 ! am\nt ( ! contract ) ! in/itution4 7#c7 ,treatm5t ( multiple in/itutions ,= ! purpose ( det]m9+ ! am\nt ( civil p5alties "u ?is subsection1 any violation by a p>ticul> in/itution w accrue aga9/ all id5tification codes us$ by ! ,(fice ( ,po/second>y ,education to designate campuses & in/itutions affiliat$ ) ! in/itution1 & )9 ! p]iod ( p>ticipation = ! in/itution z def9$ 9 section #ffh4ac7;b7 ( title #cd1 ,code ( ,f$]al ,regulations1 or any successor regulation4 7d7 ,em]g5cy action ,! ,secret>y may take an em]g5cy action aga9/ an in/itution1 a ?ird p>ty s]vic] t contracts ) su* in/itution1 or a ?ird p>ty contractor1 "u :i* ! ,secret>y %all1 effective on ! date on :i* a notice & /atem5t ( ! basis ( ! action is mail$ to ! in/itution1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor 7by regi/]$ mail1 return receipt reque/$71 )hold funds f ! in/itution or its /ud5ts1 or f ! ?ird p>ty s]vic] t contracts ) su* in/itution or ?ird p>ty contractor1 & )draw ! in/itution's au?ority to obligate funds "u ?is title1 or ! au?ority ( ! ?ird p>ty s]vic] t contracts ) su* in/itution or ?ird p>ty contractor to act on behalf ( an in/itution "u any program "u ?is title1 if ! ,secret>y-- 7#a7 receives in=mation1 det]m9$ by ! ,secret>y to be reliable1 t ! in/itution1 or ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor is violat+ any provision ( ?is title1 any regulation prescrib$ "u ?is title1 or any applicable special arrangem5t1 agreem5t1 or limitation2 7#b7 det]m9es t imm$iate action is necess>y to prev5t misuse ( ,f$]al funds2 & 7#c7 det]m9es t ! likelihood ( loss outweighs ! importance ( ! proc$ures prescrib$ 9 subsection 7b7 = limitation1 susp5sion1 or t]m9ation1 except t an em]g5cy action %all n exce$ #cj days unless ! limitation1 susp5sion1 or t]m9ation proce$+s are initiat$ by ! ,secret>y aga9/ ! individual or organization )9 t p]iod ( "t1 & except t ! ,secret>y %all provide ! individual or organization an opportunity to %[ cause1 if x s reque/s1 t ! em]g5cy action is unw>rant$4 7e7 ,individual or organization ) sub/antial control ,if an individual :o1 or entity t1 ex]cises sub/antial control1 z det]m9$ by ! ,secret>y 9 accordance ) ! def9ition ( sub/antial control 9 subp>t #c ( "p ,h1 ov] "o or m in/itutions p>ticipat+ 9 any program "u ?is title1 or1 = purposes ( ?is section ov] "o or m organizations t contract ) an in/itution to adm9i/] any aspect ( ! in/itution's /ud5t assi/ance program "u ?is title1 is det]m9$ to h committ$ "o or m violations ( ! requirem5ts ( any program "u ?is title1 or has be5 susp5d$ or deb>r$ 9 accordance ) ! regulations ( ! ,secret>y1 ! ,secret>y may use su* det]m9ation1 susp5sion1 or deb>m5t z ! basis = impos+ an em]g5cy action on1 or limit+1 susp5d+1 or t]m9at+1 9 a s+le proce$+1 ! p>ticipation ( any or all in/itutions "u ! sub/antial control ( t individual or entity4 7f7 ,disposition ( am\nts recov]$ 7#a7 ,use = /ud5t relief fund ,= ea* fiscal ye>1 an am\nt equal to #ajj p]c5t ( ! am\nts recov]$ or collect$ "u ?is section %all be deposit$ into ! ,/ud5t ,relief ,fund e/abli%$ "u subsection 7g74 7#b7 ,report ,! ,secret>y %all regul>ly publi%1 on ! website ( ! ,dep>tm5t1 a detail$ acc\nt+ ( ! funds 9 ! ,/ud5t ,relief ,fund1 includ+ ! am\nt ( funds t 7 collect$ & deposit$ into ! ,/ud5t ,relief ,fund "u p>agraph 7#a71 & h[ ^? funds 7 us$1 pursuant to subsection 7g77#a74 7g7 ,/ud5t relief fund 7#a7 ,e/abli%m5t ,! ,secret>y %all e/abli% a ,/ud5t ,relief ,fund 7ref]r$ to 9 ?is subsection z ! ,fund7 t %all be us$1 subject to ! availability ( funds1 to provide f9ancial relief to any /ud5t t is enroll$ 9 an in/itution ( high] education t-- 7,a7 has fail$ to comply ) an eligibility requirem5t "u section #aja or #ajb or an obligation incurr$ "u ! t]ms ( ! program p>ticipation agreem5t "u section #dhg2 or 7,b7 has be5 sanction$ "u subsection 7b7 or 7c74 7#b7 ,treatm5t & availability ( funds 7,a7 ,funds t are n gov]nm5t funds ,funds obta9$ by or transf]r$ to ! ,fund %all n be con/ru$ to be ,gov]nm5t funds1 appropriat$ monies1 or ,f$]al education assi/ance funds1 z def9$ 9 section #ajb7;b77#b77;,b7 7z add$ by section #aja ( ! ,prev5t+ ,risky ,op]ations f ,?reat5+ ! ,education & ,c>e] ,trajectories ( ,/ud5ts ,act ( #bjai74 7,b7 ,am\nts n subject to apportionm5t ,not)/&+ any o!r provision ( law1 am\nts 9 ! ,fund %all n be subject to apportionm5t = purposes ( *apt] #ae ( title #ca1 ,unit$ ,/ates ,code1 or "u any o!r au?ority4 7,c7 ,no fiscal ye> limitation ,sums deposit$ 9 ! ,fund %all rema9 9 ! ,fund & be available = exp5diture "u ?is subsection )\t fiscal ye> limitation4 7h7 ,/ate en=cem5t 7#a7 ,9 g5]al 7,a7 ,/ate cause ( action ,a violation describ$ 9 subp>agraph 7,b7 %all be a cause ( action en=ceable by a ,/ate1 ?r\gh ! attorney g5]al 7or ! equival5t !re(7 ( su* ,/ate1 9 any di/rict c\rt ( ! ,unit$ ,/ates 9 t ,/ate or 9 a ,/ate c\rt t is locat$ 9 t ,/ate & t has jurisdiction ov] ! def5dant4 ,! ,/ate may seek any relief provid$ "u p>agraph 7#c7 = su* violation1 includ+ a civil p5alty "u subsection 7c71 or any rem$ies o!rwise available "u law4 7,b7 ,violations ,a violation describ$ 9 ?is subp>agraph is3 7i7 ,a sub/antial misrepres5tation4 7ii7 ,a violation ( section #dhg7;a77#bj74 7iii7 ,a violation ( ! default manipulation regulations promulgat$ by ! ,secret>y "u section #dce7m77#c74 7iv7 ,a violation ( ! program integrity regulations promulgat$ by ! ,secret>y "u ?is ,act1 includ+ regulations promulgat$ 9 section #ajb1 section #dee1 & "p ,h4 7v7 ,9 accordance ) section #dee7;h71 any act or omission ( ! in/itution1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor1 relat$ to ! mak+ ( ! loan = enrollm5t at ! in/itution or ! provision ( educational s]vices = :i* ! loan 0 provid$ t w\ld give rise to a cause ( action aga9/ ! in/itution "u applicable ,/ate law4 7#b7 ,notice requir$ 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 be=e initiat+ any action 9 a c\rt or o!r adm9i/rative or regulatory proce$+ aga9/ any in/itution ( high] education1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor1 z au?oriz$ by p>agraph 7#a71 a ,/ate attorney g5]al or ! equival5t !re( %all timely provide to ! ,secret>y a copy ( ! complete compla9t to be fil$ & writt5 notice describ+ su* action or proce$+4 7,b7 ,waiv] ( prior notice ,if prior notice is n practicable "u subp>agraph 7,a71 ! ,/ate attorney g5]al or equival5t !re( %all provide to ! ,secret>y a copy ( ! complete compla9t & ! notice describ$ 9 subp>agraph 7,a7 imm$iately ^u in/itut+ ! action or proce$+4 7,c7 ,cont5ts ( notice ,! notification requir$ "u ?is p>agraph %all1 at a m9imum1 describe-- 7i7 ! id5tity ( ! p>ties2 7ii7 ! alleg$ facts und]ly+ ! proce$+2 & 7iii7 :e!r !re may be a ne$ to coord9ate ! prosecution ( ! proce$+ s z n to int]f]e ) any action1 includ+ any rulemak+1 und]tak5 by ! ,secret>y or ano!r ,f$]al ag5cy4 7#c7 ,pres]vation ( ,/ate au?ority 7,a7 ,/ate claims ,no?+ 9 ?is subsection %all be con/ru$ z alt]+1 limit+1 or affect+ ! au?ority ( a ,/ate attorney g5]al or any o!r regulatory or en=cem5t ag5cy or au?ority to br+ an action or o!r regulatory proce$+ aris+ solely "u ! law 9 effect 9 t ,/ate4 7,b7 ,relief 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 relief "u ?is subsection may include1 )\t limitation-- 7,i7 rescission or re=mation ( contracts2 7,,ii7 refund ( moneys or return ( real prop]ty2 7,,iii7 re/itution2 7,,iv7 disgorgem5t or comp5sation = unju/ enri*m5t2 7,v7 paym5t ( damages or o!r monet>y relief2 7,,vi7 public notification reg>d+ ! violation1 includ+ ! co/s ( notification2 or 7,,vii7 limits on ! activities or functions ( involv$ p]sons1 in/itutions1 ?ird p>ty s]vic]s t contract ) in/itutions1 or ?ird p>ty contractors4 7ii7 ,exclusion ,relief "u ?is subsection %all n include ! ability to susp5d or t]m9ate ! eligibility /atus ( an in/itution ( high] education = programs "u ?is title or )drawal ( ! au?ority ( ! ?ird p>ty s]vic] or ?ird p>ty contractor to act on behalf ( an in/itution or contract ) an in/itution4 7i7 ,private ,"r ( ,action 7#a7 ,9 g5]al 7,a7 ,private "r ( action ,a violation describ$ 9 subp>agraph 7,b7 %all be subject to a private "r ( action en=ceable by a /ud5t or =m] /ud5t ( an in/itution ( high] education1 on behalf ( su* individual or su* individual & a class1 9 an appropriate di/rict c\rt ( ! ,unit$ ,/ates or any o!r c\rt ( compet5t jurisdiction t also has jurisdiction ov] ! def5dant4 ,! /ud5t or =m] /ud5t may seek any relief provid$ "u subsection 7h77#c77;,b7 = su* violation1 or any rem$ies o!rwise available to ! individual "u law & equity4 7,b7 ,violations ,a violation describ$ 9 ?is subp>agraph is3 7i7 ,a sub/antial misrepres5tation4 7ii7 ,a violation ( section #dhg7;a77#bj74 7iii7 ,a violation ( ! default manipulation regulations promulgat$ by ! ,secret>y "u section #dce7m77#c74 7iv7 ,a violation ( ! program integrity regulations promulgat$ by ! ,secret>y "u ?is ,act1 includ+ regulations promulgat$ 9 section #ajb1 section #dee1 & "p ,h4 7#b7 ,am\nt ( damages 7,a7 ,9 g5]al ,any in/itution ( high] education1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor1 t commits a sub/antial misrepres5tation may be held liable to a /ud5t or =m] /ud5t ( t in/itution 9 an am\nt equal to ! sum (-- 7i7 any actual damage su/a9$ by su* individual z a result ( ea* sub/antial misrepres5tation2 7ii7 any additional damages z ! c\rt may all[2 & 7iii7 9 ! case ( any successful action to en=ce ! =ego+ liability1 ! co/s ( ! action1 toge!r ) a reasonable attorney's fee z det]m9$ by ! c\rt4 7,b7 ,ability to assess punitive damages 7i7 ,9 ,g5]al ,on a f9d+ by ! c\rt t ! in/itution ( high] education1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor1 has committ$ a violation describ$ 9 p>agraph 7#a77;,b7 ) actual or con/ructive k or reckless disreg>d = su* violation1 ! c\rt may assess punitive damages n to exce$ ?reefold ! sum ( actual damages su/a9$ by ! pla9tiff or class1 includ+ c\rt co/s & a reasonable attorney's fee4 7ii7 ,factors consid]$ by c\rt ,9 det]m9+ ! am\nt ( liability 9 any action "u clause 7i71 ! c\rt %all consid]1 among o!r relevant factors-- 7,i7 9 any individual action "u ?is subsection1 ! frequ5cy & p]si/5ce ( noncompliance by ! in/itution ( high] education1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor & ! nature ( su* noncompliance2 or 7,,ii7 9 any class action "u ?is subsection1 9 addition to ! factors li/$ 9 clause 7i71 ! f9ancial res\rces ( ! in/itution ( high] education1 ?ird p>ty s]vic] t contracts ) su* in/itution1 or ?ird p>ty contractor & ! numb] ( p]sons adv]sely affect$4 7#c7 ,jurisdiction ,an action to en=ce any liability creat$ by ?is subsection may be br\ght 9 any appropriate ,unit$ ,/ates di/rict c\rt )\t reg>d to ! am\nt 9 controv]sy1 or 9 any o!r c\rt ( compet5t jurisdiction4 4 7b7 ,con=m+ am5dm5ts ,section #dhg7;c71 z am5d$ by section #ajb7;b71 is fur!r am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ subp>agraphs 7,g7 ?r\gh 7,j72 7#b7 by /rik+ p>agraphs 7#b7 & 7#c72 & 7#c7 by r$esignat+ p>agraphs 7#d7 ?r\gh 7#g71 z p>agraphs 7#b7 ?r\gh 7#e71 respectively4 #cjf4 ,sub/antial misrepres5tation prohibit$ ,section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a771 z am5d$ by section #bjb7;b71 is fur!r am5d$ by add+ at ! end ! foll[+3 7#cj7 ,! in/itution w n make a sub/antial misrepres5tation1 z def9$ 9 section #dhi;,a4 4