,,ii #aaith ,,congress #ast ,session ,s4 #iid ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ab1 #bjbe,mr4 ,durbin 7for himself1 ,ms4 ,warren1 and ,mr4 ,merkley7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to provide for accountability in higher education4 #a4 ,short title ,this ,act may be cited as the ,preventing ,risky ,operations from ,threatening the ,education and ,career ,trajectories of ,students ,act of #bjbe or the ,,protect ,students ,act of #bjbe4 #b4 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title4,sec4 #b4 ,table of contents4,sec4 #c4 ,references4,,title ,i--,student and taxpayer protections,sec4 #aja4 ,gainful employment and financial value transparency4,sec4 #ajb4 ,borrower defense and substantial misrepresentations4,sec4 #ajc4 ,closed school discharge4,sec4 #ajd4 ,prohibition on institutions limiting student legal action4,sec4 #aje4 ,incentive compensation4,,title ,,ii--,ensuring integrity at institutions of higher education and institutional contractors,sec4 #bja4 ,updating ,federal oversight of third-party servicers4,sec4 #bjb4 ,job placement rates4,sec4 #bjc4 ,allocation of tuition and fee revenue by title ,,iv institutions4,sec4 #bjd4 ,past performance4,sec4 #bje4 ,recoupment4,,title ,,iii--,improving oversight,sec4 #cja4 ,enforcement in the ,office of ,federal ,student ,aid4,sec4 #cjb4 ,for-,profit ,education ,oversight ,coordination ,committee4,sec4 #cjc4 ,establishment and maintenance of complaint resolution and tracking system4,sec4 #cjd4 ,reforms to eligibility and certification procedures4,sec4 #cje4 ,state oversight4,sec4 #cjf4 ,accrediting agency oversight4,sec4 #cjg4 ,mandatory spending for administrative costs of operating the student aid programs4,,title ,,iv--,improving access to student and taxpayer information,sec4 #dja4 ,reporting and disclosures from institutions of higher education4,sec4 #djb4 ,transparency of oversight activities4 #c4 ,references ,except as otherwise expressly provided in this ,act1 wherever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or a repeal of1 a section or other provision1 the reference shall be considered to be made to that section or other provision of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq474 ,i ,student and taxpayer protections #aja4 ,gainful employment and financial value transparency 7a7 ,defining gainful employment programs 7#a7 ,additional institutions ,section #aja7;b7 7#bj ,u4,s4,c4 #ajja7;b77 is amended in paragraph 7#a71 by inserting 1 including that meets the standards for debt-to-earnings and earnings premium in section #dih;,c1 after gainful employment in a recognized occupation4 7#b7 ,proprietary institution of higher education ,section #ajb7;b77#a77;,a77i7 7#bj ,u4,s4,c4 #ajjb7;b77#a77;,a77i77 is amended1 by inserting 1 including that meets the standards for debt-to-earnings and earnings premium in section #dih;,c after gainful employment in a recognized occupation4 7#c7 ,postsecondary vocational institution ,section #ajb7;c77#a77;,a7 7#bj ,u4,s4,c4 #ajjb7;c77#a77;,a77 is amended1 by inserting 1 including that meets the standards for debt-to-earnings and earnings premium in section #dih;,c after gainful employment in a recognized occupation4 7#d7 ,eligible program ,section #dha7;b77#a77;,a77i7 7#bj ,u4,s4,c4 #ajhh7;b77#a77;,a77i77 is amended1 by inserting 1 including that meets the standards for debt-to-earnings and earnings premium in section #dih;,c after gainful employment in a recognized profession4 7b7 ,debt-to-,earnings and earnings premium ,subpart #c of part ,h of title ,,iv 7#bj ,u4,s4,c4 #ajii;c et seq47 is amended by adding at the end the following3 #dih;,c4 ,debt-to-earnings and earnings premium 7a7 ,definitions ,in this section3 7#a7 ,annual debt-to-earnings rate ,the term annual debt-to-earnings rate means the rate that is calculated for a cohort of students by taking the annual loan payment for such cohort1 as calculated by the ,secretary1 divided by the median annual earnings for such cohort4 7#b7 ,annual loan payment ,the term annual loan payment means1 for a cohort of students1 as defined by the ,secretary1 who completed an eligible program1 their total annual payment on loans borrowed to enroll in the institution that offered the eligible program1 measured not less than #b and not more than #d years after their completion4 7#c7 ,discretionary debt-to-earnings rate ,the term discretionary debt-to-earnings rate means the rate that is calculated for a cohort of students by taking the annual loan payment for such cohort1 as calculated by the ,secretary1 divided by the discretionary earnings for such cohort4 7#d7 ,discretionary earnings ,the term discretionary earnings means1 for a cohort of students1 as defined by the ,secretary1 who completed an eligible program1 the median annual earnings minus the amount that is #aej percent of the poverty level for an individual1 as determined by the ,department of ,health and ,human ,services4 7#e7 ,earnings premium ,the term earnings premium means the amount by which the median annual earnings exceed the median earnings for working adults with not more than a high school diploma1 as determined using data from the ,bureau of the ,census-- 7,a7 in the ,state where the institution that provides the eligible program is located2 or 7,b7 if fewer than half of the students in the eligible program are from the ,state where the institution that provides the eligible program is located1 or if the institution is a foreign institution1 nationally4 7#f7 ,median annual earnings ,the term median annual earnings means1 for a cohort of students1 as defined by the ,secretary1 who completed an eligible program1 the midpoint of their annual earnings measured not less than #b and not more than #d years after their completion4 7b7 ,standards 7#a7 ,in general ,an eligible program does not meet the standards for debt-to-earnings or earnings premium if it fails the debt-to-earnings rates or fails the earnings premium1 as described in paragraph 7#b71 in #b out of any #c consecutive years4 7#b7 ,failing ,an eligible program-- 7,a7 fails the debt-to-earnings rates if it has-- 7i7 a discretionary debt-to-earnings rate equal to or greater than #bj percent2 and 7ii7 an annual debt-to-earnings rate equal to or greater than #h percent2 and 7,b7 fails the earnings premium if it has an earnings premium of zero or a negative amount4 7c7 ,process 7#a7 ,data match ,in order to ensure compliance with paragraph 7#b71 the ,commissioner of the ,internal ,revenue ,service1 the ,commissioner of the ,social ,security ,administration1 and the head of any other ,federal agency that administers the database of individual-level earnings data shall1 in coordination with the ,secretary1 timely ensure secure1 annual data matches of earnings data with ,department of ,education data to produce the median annual earnings of each eligible program4 7#b7 ,requirements of the secretary ,the ,secretary shall-- 7,a7 on an annual calendar year basis-- 7i7 for each eligible program-- 7,i7 calculate for each award year the discretionary debt-to-earnings rate1 the annual debt-to-earnings rate1 and the earnings premium for the program2 and 7,,ii7 publish the discretionary debt-to-earnings rate1 the annual debt-to-earnings rate1 and the earnings premium for the eligible program for each award year on a website established and maintained by the ,secretary2 7ii7 for each eligible program that is a program of training to prepare students for gainful employment in a recognized occupation or a graduate or professional degree program offered by an institution of higher education described in section #aja7;a71 issue a notice of determination not later than #de days after completing the data match described in paragraph 7#a71 informing the institution that provides the program-- 7,i7 of the final discretionary debt-to-earnings rate1 the annual debt-to-earnings rate1 and the earnings premium for the program1 which may not be appealed by the institution unless the institution believes that the ,secretary erred in the calculation of any such measure2 7,,ii7 of the final determination regarding whether the program fails the debt-to-earnings rates or fails the earnings premium1 as described in subsection 7b77#b72 7,,iii7 whether the program does not meet the standards for debt-to-earnings or earnings premium as described in subsection 7b77#a7 or could not meet such standards in the next year if it fails the debt-to-earnings rates or fails the earnings premium1 as described in subsection 7b77#b71 in such next year2 and 7,,iv7 whether the institution is required to provide warnings to enrolled students and prospective students of the program's failure1 or risk of failure1 to meet the standards1 as determined under subclause 7,,iii72 and 7iii7 for each eligible program that is a program of training to prepare students for gainful employment in a recognized occupation that does not meet the standards for debt-to-earnings and earnings premium as described in subsection 7b77#a71 enforce the consequences under subsection 7d72 and 7,b7 develop processes to verify1 on an annual calendar year basis-- 7i7 that each eligible program that is a program of training to prepare students for gainful employment in a recognized occupation or a graduate or professional degree program offered by an institution of higher education described in section #aja7;a71 provides the warning described in subparagraph 7,a77ii77,,iv71 if applicable2 and 7ii7 that each eligible program that is a program of training to prepare students for gainful employment in a recognized occupation that does not meet the standards for debt-to-earnings or earnings premium as described in subsection 7b77#a71 does not receive funds as described in subsection 7d74 7d7 ,consequences of not meeting standards 7#a7 ,no disbursement of funds for enrollment in ineligible programs ,an institution may not disburse program funds under this title to students enrolled in a program of training to prepare students for gainful employment in a recognized occupation that does not meet the standards for debt-to-earnings and earnings premium as described in this section4 7#b7 ,time period to reestablish eligibility ,an institution may not seek to reestablish the eligibility of a program of training to prepare students for gainful employment in a recognized occupation that does not meet the standards for debt-to-earnings and earnings premium as described in this section or establish the eligibility of a program of training to prepare students for gainful employment in a recognized occupation that is substantially similar to the program that did not meet such standards until the date that is #c years after the date of the notice of determination issued under subsection 7c77#b77;,a77ii7 that the program of training to prepare students for gainful employment in a recognized occupation does not meet the standards4 7e7 ,regulations ,the ,secretary shall issue regulations to carry out this section not later than #a year after the date of enactment of the ,preventing ,risky ,operations from ,threatening the ,education and ,career ,trajectories of ,students ,act of #bjbe1 except that such regulations shall not be subject to the requirements of sections #dhb or #dib4 4 #ajb4 ,borrower defense and substantial misrepresentations 7a7 ,borrower defense to repayment ,section #dee7;h7 7#bj ,u4,s4,c4 #ajhg;e7h77 is amended to read as follows3 7h7 ,borrower defenses 7#a7 ,in general ,notwithstanding any other provision of ,state or ,federal law1 the ,secretary shall discharge a covered loan in repayment made to a borrower with a defense to repayment of the loan1 as described in this section4 7#b7 ,definitions ,in this subsection3 7,a7 ,repayment ,the term repayment means the period after any in-school deferment or grace period and before a loan is paid in full other than by a consolidation loan made under this title1 including1 without limitation1 a loan in default4 7,b7 ,covered loan ,the term covered loan means a loan made1 insured1 or guaranteed under this title that has an outstanding balance comprised in whole or in part by repayment obligations incurred to cover the cost of attendance at an institution of higher education4 7#c7 ,basis for defense to repayment 7,a7 ,in general ,for purposes of discharge under this section1 a borrower defense to repayment is established when the ,secretary concludes by a preponderance of the evidence that a qualifying act1 omission1 or event occurred1 and the student whose cost of attendance was paid in whole or in part by the proceeds of a covered loan suffered detriment in the nature and degree warranting a borrower defense discharge4 7,b7 ,qualifying acts1 omissions1 or events ,a qualifying act1 omission1 or event includes without limitation any of the following3 7i7 ,the institution1 one of its representatives1 or a third-party servicer of the institution made a substantial misrepresentation 7as described in section #dha7;g771 directly or indirectly1 to the borrower in connection with the borrower's decision to attend1 or to continue attending1 the institution or the borrower's decision to take out a covered loan4 7ii7 ,the institution failed to perform its obligations under the terms of a contract with the student and such obligation was undertaken as consideration or in exchange for the borrower's decision to attend1 or to continue attending1 the institution1 for the borrower's decision to take out a covered loan1 or for funds disbursed in connection with a covered loan4 7iii7 ,the institution engaged in aggressive and deceptive recruitment conduct or tactics in connection with the borrower's decision to attend1 or to continue attending1 the institution or the borrower's decision to take out a covered loan4 ,aggressive and deceptive recruitment tactics or conduct include actions by the institution1 any of its representatives1 or any entity1 organization1 or person with whom the institution has an agreement to provide educational programs1 marketing1 recruitment1 or lead generation services that pressure a student to make enrollment or loan-related decisions1 take unreasonable advantage of a student's lack of knowledge1 discourage a student or prospective student from consulting an advisor prior to making enrollment or loan-related decisions1 use threatening or abusive language1 or repeatedly engage in unsolicited contact4 7iv7 ,the borrower1 whether as an individual or as a member of a class1 or a governmental agency has obtained against the institution a favorable judgment based on ,state or ,federal law in a court or administrative tribunal of competent jurisdiction based on the institution's act or omission relating to the making of a covered loan1 or the provision of educational services for which the loan was provided1 notwithstanding any possible appeal4 7v7 ,the ,secretary sanctioned or otherwise took adverse action against the institution at which the borrower enrolled1 based on the institution's acts or omissions that could give rise to a borrower defense under clause 7i71 7ii71 or 7iii74 7vi7 ,the institution committed any act or omission that relates to the making of the covered loan for enrollment at the institution or the provision of educational services for which the covered loan was provided that would give rise to a cause of action against the institution under applicable ,state law without regard to any statute of limitations4 7,c7 ,determination whether detriment warrants discharge ,in determining whether the nature and degree of detriment warrants a borrower defense discharge1 the ,secretary shall consider the totality of the circumstances1 including the nature and degree of detriment shown by previous recipients of borrower defense discharge1 and drawing all inferences and presumptions warranted by the evidence under the circumstances4 7#d7 ,effect of discharge ,to effectuate a borrower defense discharge of a covered loan in repayment1 the ,secretary shall carry out the following3 7,a7 ,discharge all amounts owed to the ,secretary1 including interest and fees1 on the covered loan1 subject to the limitation in paragraph 7#e74 ,in the case of a covered loan that is a ,federal ,direct ,consolidation ,loan or a ,federal ,consolidation ,loan under section #dbh;,c comprised only in part of repayment obligations incurred to cover the cost of attendance at the institution whose acts or omissions are the basis of the discharge1 the ,secretary may discharge less than the total amount of the covered loan when loan account records clearly establish the portion of the covered loan not subject to the defense to repayment4 7,b7 ,reimburse all payments previously made to the ,secretary on the covered loan1 subject to the limitation in paragraph 7#e74 7,c7 ,for borrowers in default1 determine that the borrower is not in default on the covered loan and therefore not ineligible to receive assistance under this title on the basis of default on the covered loan4 7,d7 ,update or delete adverse reports the ,secretary previously made to consumer reporting agencies regarding the covered loan4 7,e7 ,remove the discharged covered loan and any grant made under this title related to the student's attendance at the institution whose acts are omissions are the basis of the discharge from the borrower's loan history for purposes of calculating eligibility for further grants and loans under this title4 7#e7 ,limitation on discharge and reimbursement ,the ,secretary may reduce the amount of discharge and reimbursement provided for in paragraph 7#d7 if the borrower received a money payment from the institution or related entity in compensation for the acts or omissions forming the basis of the borrower defense4 ,in deciding whether a reduction is warranted1 and in what amount1 the ,secretary shall consider the extent to which the payment received by the borrower compensated for non-economic damages1 out-of-pocket expenses1 or payments previously made directly to the institution1 and whether the borrower has non-,federal student loans as a result of attending the institution4 ,the ,secretary may not reduce the amount of discharge and reimbursement provided for in a covered loan in paragraph 7#d7 because the borrower received funds from a ,state tuition recovery fund4 7#f7 ,finality ,a borrower defense discharge is final upon the ,secretary's notification to the borrower4 ,the ,secretary may not thereafter revoke or reduce the amount of discharge or reimbursement1 absent a finding of fraud on the part of the borrower4 7#g7 ,group process ,where substantial misrepresentations are widespread1 the ,secretary shall seek to assess the eligibility of all potentially affected borrowers as a group or in multiple groups to expedite the process4 ,if such discharges are approved1 the ,secretary shall discharge the covered loans of all eligible borrowers in the group1 in accordance with the processes in this section and without requiring application materials1 to the extent practicable4 7#h7 ,regulations ,the ,secretary may promulgate regulations or otherwise prescribe procedures in relation to borrower defense discharge1 consistent with the provisions of this section4 ,nothing in this section modifies or displaces existing powers1 authorities1 and obligations of the ,secretary1 including obligations imposed under chapter #e of title #e1 ,united ,states ,code 7commonly known as the ,administrative ,procedures ,act74 4 7b7 ,substantial misrepresentation ,section #dha 7#bj ,u4,s4,c4 #ajhh7 is amended by adding at the end the following3 7g7 ,substantial misrepresentation ,in this title1 the term substantial misrepresentation1 when used with respect to an institution of higher education1 includes-- 7#a7 any statement about the nature of the institution's educational program1 its financial charges1 or the employability or earnings of its graduates that is false1 erroneous1 or has the likelihood or tendency to mislead under the circumstances1 on which the person to whom it was made could reasonably be expected to rely1 or has reasonably relied1 to that person's detriment2 and 7#b7 any omission of fact1 such as the concealment1 suppression1 or absence of material information about the nature of the institution's educational program1 its financial charges1 the employability or earnings of its graduates1 the availability of enrollment openings in the student's desired program1 the factors that would prevent an applicant from meeting the legal or other requirements to be employed1 licensed1 or certified in the field for which the training is provided which a reasonable person would have considered in making a decision to attend1 or to continue attending1 the institution or to take out a covered loan4 4 #ajc4 ,closed school discharge ,section #dcg7;c77#a7 7#bj ,u4,s4,c4 #ajhg7;c77#a77 is amended to read as follows3 7#a7 ,in general 7,a7 ,in general ,if a borrower who received1 on or after ,january #a1 #aihf1 a loan made1 insured1 or guaranteed under this part and the student borrower1 or the student on whose behalf a parent borrowed1 is unable to complete the program in which such student is enrolled due to the closure of the institution or if such student's eligibility to borrow under this part was falsely certified by the eligible institution or was falsely certified as a result of a crime of identity theft1 or if the institution failed to make a refund of loan proceeds which the institution owed to such student's lender1 then the ,secretary shall discharge the borrower's liability on the loan 7including interest and collection fees7 by repaying the amount owed on the loan4 7,b7 ,additional discharge 7i7 ,in general ,in addition to the authorization of discharge under subparagraph 7,a71 the ,secretary shall discharge a borrower's 7including an endorser's7 liability on a ,federal ,direct ,loan made under part ,d if-- 7,i7 the institution at which the borrower who took the loan 7or on whose behalf it was taken or endorsed7 was enrolled1 ceased to provide educational instruction as a whole1 or ceased to provide instruction in the programs in which more than #ej percent of the students were enrolled2 or 7,,ii7 the borrower who took the loan 7or on whose behalf it was taken or endorsed7 was enrolled in an institution at any time within the period not earlier than #ahj days before the date of the closure of the institution4 7ii7 ,extension of #ahj days ,the ,secretary may extend the #ahj day period described in clause 7i77,,ii7 in cases where exceptional circumstances are demonstrated1 including if-- 7,i7 the institution was placed on probation or order to show cause or approval was withdrawn or terminated by an accrediting agency or association or an institution's institutional accreditor1 or a ,state authorizing or licensing authority2 7,,ii7 the institution was placed on ,heightened ,cash ,monitoring status by the ,department or was placed on ,provisional ,program ,participation ,approval status1 or the institution's participation in a program under this title was terminated by the ,department2 7,,iii7 the institution was found to have violated ,federal or ,state law related to enrolling or providing education services to students by a ,federal or ,state ,government agency1 or is the subject of a ,federal or ,state court judgment that the institution violated laws related to enrolling or providing education services to students2 7,,iv7 the teach-out plan 7as required under section #dhg7;f77 of the borrower's educational program exceeds the #ahj day period described in clause 7i77,,ii72 7,v7 the institution responsible for the teach-out of the borrower's educational program fails to perform the material terms of the teach-out plan 7as required under section #dhg7;f771 such that the borrower does not have a reasonable opportunity to complete the borrower's program of study2 and 7,,vi7 the institution permanently closed all or most of its in-person locations while maintaining online programs or permanently closed many programs4 7,c7 ,no application requirement ,a borrower who took a loan 7or on whose behalf it was taken or endorsed7 that is eligible for discharge under this paragraph due to institutional closure is entitled to discharge without an application or statement from the borrower #a year after the institution's closure date if the student did not complete the program at the institution4 7,d7 ,pursing claims ,after discharging liability on a loan under this paragraph1 the ,secretary shall pursue any claim available to a borrower against the institution and its affiliates and principals or settle the loan obligation pursuant to the financial responsibility authority under subpart #c of part ,h4 4 #ajd4 ,prohibition on institutions limiting student legal action 7a7 ,enforcement of arbitration agreements 7#a7 ,in general ,chapter #a of title #i1 ,united ,states ,code1 7relating to the enforcement of arbitration agreements7 shall not apply to an enrollment agreement made between a student and an institution of higher education4 7#b7 ,definition ,in this section1 the term institution of higher education has the meaning given such term in section #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb74 7b7 ,prohibition on limitations on ability of students ,to pursue claims against certain institutions of higher education ,section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a77 is amended by adding at the end the following3 7#cj7 ,the institution-- 7,a7 will not require any student to agree to1 and will not enforce1 any limitation or restriction 7including a limitation or restriction on any available choice of applicable law1 a jury trial1 or venue7 on the ability of a student to pursue a claim1 individually or with others1 against an institution in court2 and 7,b7 will provide written notification to students enrolled at the institution that any limitation or restriction on the ability of a student to pursue a claim1 individually or with others1 against an institution in court contained in any enrollment or other agreement with a student will not be enforced4 4 7c7 ,private right of action 7#a7 ,in general 7,a7 ,private right of action ,a violation described in subparagraph 7,b7 shall be subject to a private right of action enforceable by a student or former student of an institution of higher education1 on behalf of such individual or such individual and a class1 in an appropriate district court of the ,united ,states or any other court of competent jurisdiction that also has jurisdiction over the defendant4 ,the student or former student may seek any relief provided under section #dee7;h7 for such violation1 or any remedies otherwise available to the individual under law and equity4 7,b7 ,violations ,a violation described in this subparagraph is any of the following3 7i7 ,a substantial misrepresentation1 including a substantial omission of fact4 7ii7 ,a violation of section #dhg7;a77#bj7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#bj774 7iii7 ,a violation of the default rate regulations promulgated by the ,secretary under section #dce7m77#c7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhe7m77#c774 7iv7 ,a violation of the program integrity regulations promulgated by the ,secretary under the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq471 including regulations promulgated to carry out section #ajb1 section #dee1 and part ,h of such ,act4 7#b7 ,amount of damages 7,a7 ,in general ,any institution of higher education1 third party servicer that contracts with such institution1 or third party contractor that commits a substantial misrepresentation may be held liable to a student or former student of that institution in an amount equal to the sum of-- 7i7 any actual damage sustained by such individual as a result of each substantial misrepresentation2 7ii7 any additional damages as the court may allow2 and 7iii7 in the case of any successful action to enforce the foregoing liability1 the costs of the action1 together with a reasonable attorney's fee as determined by the court4 7,b7 ,ability to assess punitive damages 7i7 ,in general ,on a finding by the court that an institution of higher education1 third party servicer that contracts with such institution1 or third party contractor has committed a violation described in paragraph 7#a77;,b7 with actual or constructive knowledge or reckless disregard for such violation1 the court may assess punitive damages not to exceed threefold the sum of actual damages sustained by the plaintiff or class1 including court costs and a reasonable attorney's fee4 7ii7 ,factors considered by the court ,in determining the amount of liability in any action under clause 7i71 the court shall consider1 among other relevant factors-- 7,i7 in any individual action under this subsection1 the frequency and persistence of noncompliance by the institution of higher education1 third party servicer that contracts with such institution1 or third party contractor and the nature of such noncompliance2 or 7,,ii7 in any class action under this subsection1 in addition to the factors listed in subclause 7,i71 the financial resources of the institution of higher education1 third party servicer that contracts with such institution1 or third party contractor and the number of persons adversely affected4 7#c7 ,jurisdiction ,an action to enforce any liability created by this subsection may be brought in any appropriate ,united ,states district court without regard to the amount in controversy1 or in any other court of competent jurisdiction4 7d7 ,prohibition on transcript withholding ,section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a771 as amended by subsection 7b71 is further amended by adding at the end the following3 7#ca7 ,the institution-- 7,a7 will not withhold official transcripts related to a balance owed by the student to the institution2 and 7,b7 will provide an official transcript to a student upon request by the student4 4 #aje4 ,incentive compensation 7a7 ,incentive compensation 7#a7 ,revocation ,example #b-;,b of ,question #b of the ,department of ,education ,dear ,colleague ,letter ,,gen-#aa-je 7,march #ag1 #bjaa7 is revoked4 7#b7 ,prohibition ,the ,department of ,education may not issue a regulation or subregulatory guidance that would establish an exception to the prohibition provided in section #dhg7;a77#bj7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#bj774 7b7 ,institutional compliance with the incentive compensation ban ,section #dhg7;a77#bj7 7#bj ,u4,s4,c4 #ajid7;a77#bj77 is amended-- 7#a7 by striking ,the institution and inserting 7,a7 ,the institution2 and 7#b7 by adding at the end the following3 7,b7 ,not later than #a year after the date of enactment of the ,preventing ,risky ,operations from ,threatening the ,education and ,career ,trajectories of ,students ,act of #bjbe1 the institution shall attest to the ,secretary that the institution is in compliance with subparagraph 7,a7 notwithstanding the guidance provided in ,department of ,education ,example #b-;,b of ,question #b of ,dear ,colleague ,letter ,,gen-#aa-je 7,march #ag1 #bjaa71 in such form as required by the ,secretary4 ,if the institution is not in compliance as of the date of enactment of the ,preventing ,risky ,operations from ,threatening the ,education and ,career ,trajectories of ,students ,act of #bjbe1 the ,secretary shall revoke the institution's program participation agreement under this section4 7,c7 ,following the attestation required under subparagraph 7,b71 the institution shall annually provide verification from an independent auditor that the institution is in compliance with subparagraph 7,a74 4 ,,ii ,ensuring integrity at institutions of higher education and institutional contractors #bja4 ,updating ,federal oversight of third-party servicers ,section #dha7;c77#a7 7#bj ,u4,s4,c4 #ajhh7;c77#a77 is amended by inserting 1 including related to the delivery of funds under this title1 recruitment or retention of students1 compliance with cohort default rate 7as defined in section #dce7m77 requirements1 the development and delivery of instructional content1 and other applicable activities as described by the ,secretary after title4 #bjb4 ,job placement rates 7a7 ,definition ,section #dha 7#bj ,u4,s4,c4 #ajhh71 as amended by section #ajb7;b71 is further amended by adding at the end the following3 7h7 ,job placement rates ,the ,secretary shall establish a single definition of job placement rate for purposes of this ,act that ensures consistent determinations across institutions and accrediting agencies regarding when students are placed in a job1 to improve accuracy and minimize the opportunity for misleading or deceptive information4 4 7b7 ,program participation agreement ,section #dhg7;a77#h7 7#bj ,u4,s4,c4 #ajid7;a77#h77 is amended to read as follows3 7#h7 ,in the case of an institution that advertises or discloses job placement rates to prospective students or that is required to provide regular reporting of job placement rates to an accrediting agency1 ,state authorizer1 or other regulator1 the institution will utilize the definition provided under section #dha7;h71 and shall make available to prospective students1 at or before the time of application-- 7,a7 the most recent available data concerning employment statistics1 graduation statistics1 the methodology used by the institution to calculate the job placement rate1 and any other information necessary to substantiate the truthfulness of the advertisements or disclosures1 and 7,b7 relevant ,state licensing requirements of the ,state in which such institution is located for any job for which the course of instruction is designed to prepare such prospective students4 4 7c7 ,accrediting agency recognition ,section #dif7;a77#e77;,a7 7#bj ,u4,s4,c4 #ajii;b7a77#e77;,a77 is amended by inserting 1 as defined pursuant to section #dha7;h7 before the semicolon4 7d7 ,nonapplicability of rulemaking requirements ,the amendments made under this section shall not be subject to the requirements provided under section #dib 7#bj ,u4,s4,c4 #ajih;a74 #bjc4 ,allocation of tuition and fee revenue by title ,,iv institutions ,section #dih7;c7 7#bj ,u4,s4,c4 #ajii;c7c77 is amended by inserting at the end the following3 7#g7 ,requirement to spend revenue 7,a7 ,in general 7i7 ,beginning in academic year #bjbf-bjbg and in each academic year thereafter through #bjca-bjcb1 each institution of higher education1 in order to be eligible to participate in programs under this title1 shall spend an amount equal to not less than #cj percent of their tuition and fee revenue 7net of allowances and discounts7 on instruction4 7ii7 ,beginning in academic year #bjbg-bjbh and in each academic year thereafter through #bjcj-bjca1 the ,secretary shall assess the data described in subparagraph 7,b7 and issue a report that identifies the following3 7,i7 ,the total amount of spending on instruction for each institution4 7,,ii7 ,the total amount of spending on student services for each institution1 excluding advertising1 recruiting1 marketing1 compensation of executives or officers1 lobbying1 and other pre-enrollment expenses1 consistent with section #acb7l74 7,,iii7 ,tuition and fee revenue 7net of allowances and discounts7 for each institution4 7,,iv7 ,the median increase in total spending on student services and instruction combined relative to spending on instruction relative to tuition and fee revenue 7net of allowances and discounts74 7,v7 ,other relevant information the ,secretary determines appropriate to include4 7iii7 ,in academic year #bjca-bjcb1 the ,secretary shall issue a regulation that establishes a minimum threshold percentage for institutional spending on instruction and student services combined that shall be-- 7,i7 not less than #cj percent2 and 7,,ii7 consistent with the median increase in total spending1 as identified under clause 7ii77,,iv7 averaged across academic years #bjbh-bjbi1 #bjbi-bjcj1 and #bjcj-bjca4 7iv7 ,beginning in academic year #bjca-bjcb and in each academic year thereafter1 each institution of higher education1 in order to be eligible to participate in programs under this title1 shall spend an amount equal to not less than the threshold percentage established under clause 7iii7 of their tuition and fee revenue 7net of allowances and discounts7 on instruction and student services combined4 7,b7 ,reporting from institutions ,the ,secretary shall use data from reports received and definitions established under section #acb7l7 to carry out this paragraph4 7,c7 ,warnings ,the ,secretary shall-- 7i7 establish through regulation appropriate thresholds for an institution of higher education that meets the spending requirements under clauses 7i7 and 7iv7 of subparagraph 7,a71 but which is at risk of missing such thresholds2 and 7ii7 require each institution of higher education that is at risk of missing such thresholds to provide warnings to prospective students and enrolled students of the institution regarding the low instructional spending4 7,d7 ,regulations ,the ,secretary shall issue such regulations as determined necessary by the ,secretary to ensure compliance with the requirements of this paragraph1 taking into consideration cost and convenience4 4 #bjd4 ,past performance ,section #dhg7;a77#af7 7#bj ,u4,s4,c4 #ajid7;a77#af77 is amended by inserting at the end the following3 7,c7 ,the institution will not knowingly employ an individual who was an owner1 director1 officer1 or employee who exercised substantial control over an institution that owes a liability4 7,d7 ,the institution will not knowingly-- 7i7 employ an individual who was-- 7,i7 an owner1 director1 officer1 or employee of an institution that has-- 7aa7 been found to have engaged in fraud1 misuse of funds1 or any material violation of law2 or 7bb7 had its participation in programs under this title terminated1 its certification revoked1 or its application for certification or recertification for participation in such programs denied2 or 7,,ii7 a #aj percent-or-higher equity owner1 director1 officer1 principal1 or executive of1 or contractor affiliated with1 another institution in any year in which the other institution incurred a loss of ,federal funds1 as determined by the ,secretary1 in excess of #e percent of the other institution's annual funds under this title2 or 7ii7 contract with any institution1 third-party servicer1 individual1 agency1 or organization that has1 or whose owners1 officers1 or employees have-- 7,i7 been found to have engaged in fraud1 misuse of funds1 or any material violation of law2 7,,ii7 had its participation in programs under this title terminated1 its certification revoked1 or its application for certification or recertification for participation in such programs denied2 or 7,,iii7 been a #aj percent-or-higher equity owner1 director1 officer1 principal1 executive of1 or contractor affiliated with1 another institution in any year in which the other institution incurred a loss of ,federal funds1 as determined by the ,secretary1 in excess of #e percent of the other institution's annual funds under this title4 4 #bje4 ,recoupment 7a7 ,clarifying the authority ,to recoup liabilities from title ,,iv institutions ,section #dhg7;c77#a7 7#bj ,u4,s4,c4 #ajid7;c77#a77 is amended by striking subparagraph 7,f7 and inserting the following3 7,f7 the limitation1 suspension1 or termination of the participation in any program under this title of an eligible institution1 the recoupment of liabilities established pursuant to section #dic;,e1 or the imposition of a civil penalty under paragraph 7#c77;,b7 whenever the ,secretary has determined1 after reasonable notice and opportunity for hearing1 that such institution has violated or failed to carry out any provision of this title1 any regulation prescribed under this title1 or any applicable special arrangement1 agreement1 or limitation1 except that no period of suspension under this section shall exceed #fj days unless the institution and the ,secretary agree to an extension or unless limitation or termination proceedings are initiated by the ,secretary within that period of time4 4 7b7 ,recoupment of liabilities ,part ,g of title ,,iv 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by adding at the end the following3 #dic;,e4 ,recoupment 7a7 ,in general ,the ,secretary shall assess liabilities and seek to recoup funds provided under this title from an institution of higher education as a result of student loan discharges1 findings from program reviews or compliance audits1 or due to other forms of misconduct or noncompliance4 7b7 ,waiver authority ,the ,secretary may waive some or all of the liabilities described in subsection 7a7 based on the individual circumstances of the institution4 4 7c7 ,owner signatures ,section #dih7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajii;c7b77 is amended-- 7#a7 in paragraph 7#d71 by striking and after the semicolon2 7#b7 in paragraph 7#e71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7#f7 requires both an authorized representative of the institution and1 if applicable1 an authorized representative of any entity with ownership and substantial control over the institution to sign the program participation agreement1 as described under section #dhg1 for the institution1 which shall ensure that the institution and its owner1 if applicable1 agree to repay any liabilities assessed against the institution by the ,secretary4 4 ,,iii ,improving oversight #cja4 ,enforcement in the ,office of ,federal ,student ,aid 7a7 ,enforcement unit established in the ,office of ,federal ,student ,aid ,section #ada 7#bj ,u4,s4,c4 #ajah7 is amended-- 7#a7 by redesignating subsections 7g7 through 7i7 as subsections 7h7 through 7j71 respectively2 and 7#b7 by inserting after subsection 7f7 the following3 7g7 ,enforcement unit 7#a7 ,in general ,the ,chief ,operating ,officer1 in consultation with the ,secretary1 shall establish an enforcement unit within the ,,pbo 7referred to in this section as the enforcement unit74 7#b7 ,appointment 7,a7 ,chief enforcement officer ,the ,chief ,operating ,officer1 in consultation with the ,secretary1 shall appoint a ,chief ,enforcement ,officer as a senior manager1 in accordance with subsection 7e71 to perform the functions described in this subsection4 ,the ,chief ,enforcement ,officer shall report solely and directly to the ,chief ,operating ,officer4 7,b7 ,bonus ,notwithstanding subsection 7e71 the ,chief ,enforcement ,officer may receive a bonus1 separately determined from the methodology which applies to the calculation of bonuses for other senior managers1 based upon the ,chief ,operating ,officer's evaluation of the ,chief ,enforcement ,officer's performance in relation to the goals set forth in a performance agreement related to the specific duties of the enforcement unit4 7#c7 ,duties ,the enforcement unit shall-- 7,a7 receive1 process1 and analyze allegations and complaints regarding the potential violation of ,federal or ,state law 7including civil and criminal law7 or other unfair1 deceptive1 or abusive acts or practices1 by institutions of higher education1 third-party servicers that contract with such institutions1 and loan servicers2 7,b7 investigate and coordinate investigations of potential or actual misconduct of institutions of higher education1 third-party servicers that contract with such institutions1 and loan servicers1 including engaging in a regular program of secret shopping at online and campus-based institutions of higher education2 7,c7 develop and implement a written policy for the enforcement of the ban on prohibited incentive compensation not less than annually1 which may include automatic triggers for inquiries by the ,department or regular secret shopper or audit-based investigations1 and shall update such policy as needed2 and 7,d7 enforce compliance with laws governing ,federal student financial assistance programs under title ,,iv1 including through the use of an emergency action in accordance to section #dhg7;c77#a77;,i71 the limitation1 suspension1 or termination of the participation of an eligible institution in a program under title ,,iv1 or the imposition of a civil penalty in accordance with section #dhg7;c77#c77;,b74 7#d7 ,coordination and staffing ,the enforcement unit shall-- 7,a7 coordinate with relevant ,federal and ,state agencies and oversight bodies1 including the ,for-,profit ,education ,oversight ,coordination ,committee established under section #abd2 and 7,b7 hire staff1 7including by appointing not more than #aj individuals in positions of excepted service1 as described in subsection 7h77#c77 with such expertise as is necessary to conduct investigations1 respond to allegations and complaints1 and enforce compliance with laws governing ,federal student financial assistance programs under title ,,iv4 7#e7 ,divisions 7,a7 ,in general ,the enforcement unit shall have separate divisions with the following focus areas3 7i7 ,an investigations division to investigate potential or actual misconduct at institutions of higher education1 third-party servicers that contract with such institutions1 and loan servicers4 7ii7 ,a division focused on evaluating the claims of borrowers who assert a defense to repayment of ,federal student loans1 or groups of borrowers who qualify to assert such a defense to repayment1 under section #dee7;h74 7iii7 ,a division focused on oversight of the ,jeanne ,clery ,disclosure of ,campus ,security ,policy and ,campus ,crime ,statistics ,act1 the reporting of crime and fire statistics by institutions of higher education1 and the oversight and enforcement of section #abj 7relating to drug and alcohol abuse prevention74 7iv7 ,a division to administer the ,secretary's authority to fine1 limit1 suspend1 terminate1 or take action against institutions of higher education1 and third-party servicers that contract with such institutions1 participating in the ,federal student financial assistance programs under title ,,iv4 7v7 ,a division that administers a program of compliance monitoring and oversight of institutions of higher education1 and third-party servicers that contract with such institutions1 including systems and procedures to support the eligibility1 certification1 and oversight of program participants1 for all institutions of higher education participating in the ,federal student financial assistance programs under title ,,iv4 7vi7 ,any other division that the ,chief ,enforcement ,officer1 in coordination with the ,chief ,operating ,officer and the ,secretary1 determines is necessary4 7,b7 ,reporting ,the staff of each division described in subparagraph 7,a7 shall report to the ,chief ,enforcement ,officer4 7#f7 ,actions recommended ,the ,chief ,enforcement ,officer may recommend1 as appropriate to the particular circumstance1 that the ,chief ,operating ,officer-- 7,a7 terminate1 suspend1 or limit an institution of higher education or a third-party servicer that contracts with such institution from participation in #a or more programs under title ,,iv 7in accordance with section #dhg71 or provisionally certify such participation 7in accordance with section #dih7;h772 7,b7 impose a civil penalty in accordance with section #dhg7;c77#c77;,b72 7,c7 for a student loan servicer1 obtain all relief1 including any penalties and suspension or termination of the agreement1 provided in the loan servicer agreement to the contract of the servicer2 or 7,d7 make a recommendation to the ,secretary about whether to approve or deny the claims of borrowers1 including groups of borrowers1 who assert a defense to repayment in accordance with section #dee7;h74 4 7b7 ,extend subpoena power ,to assist with investigations ,section #dij;,a7a7 7#bj ,u4,s4,c4 #ajig;a7a77 is amended to read as follows3 7a7 ,authority ,to assist the ,secretary in the conduct of investigations of possible violations of the provisions of this title1 the ,secretary is authorized to-- 7#a7 require by subpoena the production of information1 documents1 reports1 answers1 records1 accounts1 papers1 and other documentary evidence pertaining to participation in any program under this title1 the production of which may be required from any place in a ,state2 and 7#b7 require by subpoena oral testimony by any person1 including any legal entity1 concerning information pertaining to participation in any title ,,iv program1 the appearance for which may be required at any place in a ,state4 4 7c7 ,program reviews ,section #dih;,a of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajii;c-#a7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking and financial responsibility and inserting 1 financial responsibility1 and other eligibility-related2 and 7,b7 in paragraph 7#b7-- 7i7 by redesignating subparagraphs 7,a7 through 7,f7 as subparagraphs 7,b7 through 7,g71 respectively2 7ii7 by inserting before subparagraph 7,b71 as so redesignated1 the following3 7,a7 identified as high-risk institutions based on a risk-review process developed by the ,department that shall include risk factors1 including-- 7i7 significant changes in enrollment2 7ii7 high volumes of student complaints or borrower defense claims2 7iii7 indicators of issues related to financial capability2 7iv7 low completion rates2 7v7 indications of misleading or deceptive practices1 aggressive recruiting1 or substantial misrepresentation2 7vi7 significant completion gaps between students of different demographic groups2 or 7vii7 other indicators of risk to students or taxpayers2 2 and 7iii7 in subparagraph 7,g71 as so redesignated1 by striking or financial responsibility and inserting 1 financial responsibility1 or other eligibility-related2 7#b7 in subsection 7d71 by striking criminal investigative training and inserting criminal and civil investigative training 7including training in identifying misrepresentations in marketing and recruitment materials72 7#c7 by redesignating subsection 7e7 as subsection 7f72 and 7#d7 by inserting after subsection 7d7 the following3 7e7 ,program reviews ,program reviews shall1 at minimum1 include a review of all-- 7#a7 recruiting and marketing materials1 including scripts and training materials provided to institution and third-party servicer staff involved in recruiting1 admissions1 or financial aid2 7#b7 consumer complaints held by the institution and consumer agencies1 borrower defense claims1 the institution's response to such complaints or claims1 and any related investigative materials2 7#c7 actions against the institution by ,state or ,federal regulators or enforcement agencies1 including ,state authorizing agencies and ,state attorneys general1 or through qui tam actions2 and 7#d7 actions against the institution by accreditors4 4 7d7 ,enhanced civil penalties ,section #dhg7;c77#c77;,b7 of the ,higher ,education ,act 7#bj ,u4,s4,c4 #ajid7;c77#c77;,b77 is amended-- 7#a7 in clause 7i7-- 7,a7 by inserting or its third-party servicer after eligible institution2 and 7,b7 by striking #be1jjj for each violation or misrepresentation and inserting #ajj1jjj for each violation or misrepresentation1 or-- 7,i7 in the case of an institution1 #a4j percent of the amount of funds the institution received through this title in the most recent award year prior to the determination for each such violation2 and 7,,ii7 in the case of a third-party servicer that contracts with such institution1 the amount of the contract with the institution4 2 7#b7 by redesignating clause 7ii7 as clause 7iii72 7#c7 by inserting after clause 7i7 the following3 7ii7 ,the ,secretary may consider each time a substantial misrepresentation is viewed or experienced1 including static or standing misrepresentations1 as a separate violation or misrepresentation4 2 and 7#d7 by adding at the end the following3 7iv7 ,for the purpose of determining the amount of civil penalties under this subsection1 any violation by a particular institution will accrue against all institutions or affiliates with common ownership4 4 #cjb4 ,for-,profit ,education ,oversight ,coordination ,committee ,part ,b of title ,i 7#bj ,u4,s4,c4 #ajaa et seq47 is amended by adding at the end the following3 #abd4 ,for-,profit ,education ,oversight ,coordination ,committee 7a7 ,establishment of committee 7#a7 ,in general ,there is established in the executive branch a committee to be known as the ,for-,profit ,education ,oversight ,coordination ,committee 7referred to in this section as the ,committee7 and to be composed of the head 7or the designee of such head7 of each of the following ,federal entities3 7,a7 ,the ,department of ,education4 7,b7 ,the ,bureau of ,consumer ,financial ,protection4 7,c7 ,the ,department of ,justice4 7,d7 ,the ,securities and ,exchange ,commission4 7,e7 ,the ,department of ,defense4 7,f7 ,the ,department of ,veterans ,affairs4 7,g7 ,the ,federal ,trade ,commission4 7,h7 ,the ,department of ,labor4 7,i7 ,the ,internal ,revenue ,service4 7,j7 ,the enforcement unit of the ,performance-,based ,organization established under section #ada7;g74 7,k7 ,at the discretion of the ,chairperson of the ,committee1 any other relevant ,federal agency or department4 7#b7 ,purposes ,the ,committee shall have the following purposes3 7,a7 ,coordinate ,federal oversight of for-profit institutions of higher education to-- 7i7 improve enforcement of applicable ,federal laws2 7ii7 increase accountability of for-profit institutions of higher education to students and taxpayers2 and 7iii7 ensure the promotion of quality education programs4 7,b7 ,coordinate ,federal activities to protect students from unfair1 deceptive1 abusive1 unethical1 fraudulent1 or predatory practices1 policies1 or procedures of for-profit institutions of higher education4 7,c7 ,encourage information sharing among agencies related to ,federal investigations1 audits1 program reviews1 inquiries1 complaints1 financial statements1 and other information relevant to the oversight of for-profit institutions of higher education4 7,d7 ,develop binding memoranda of understanding that the ,federal entities represented on the ,committee will use regarding the sharing of information to exercise the oversight described in this section4 7,e7 ,increase coordination and cooperation between ,federal and ,state agencies 7including ,state authorizing agencies1 ,state attorneys general1 and ,state approving agencies designated under section #cfga of title #ch1 ,united ,states ,code7 with respect to improving oversight and accountability of for-profit institutions of higher education4 7,f7 ,develop best practices and consistency among ,federal and ,state agencies in the dissemination of consumer information regarding for-profit institutions of higher education to ensure that students1 parents1 and other stakeholders have easy access to such information4 7#c7 ,chairperson ,the ,secretary of ,education or the designee of the ,secretary shall serve as the ,chairperson of the ,committee4 7b7 ,meetings 7#a7 ,committee meetings ,the members of the ,committee shall meet regularly1 but not less than once during each quarter of each fiscal year1 to carry out the purposes described in subsection 7a77#b74 7#b7 ,meetings with state agencies and stakeholders ,the ,committee shall meet not less than once each fiscal year1 and shall otherwise interact regularly1 with ,state authorizing agencies1 ,state attorneys general1 ,state approving agencies designated under section #cfga of title #ch1 ,united ,states ,code1 veterans service organizations1 and consumer advocates to carry out the purposes described in subsection 7a77#b74 7c7 ,director ,the ,chairperson shall appoint a full-time executive director to support the ,committee and may appoint and fix the pay of additional staff as the ,chairperson considers appropriate4 4 #cjc4 ,establishment and maintenance of complaint resolution and tracking system 7a7 ,complaint tracking system ,title ,i 7#bj ,u4,s4,c4 #ajja et seq47 is amended by adding at the end the following3 ,f ,complaint tracking system #afa4 ,complaint tracking system 7a7 ,definitions ,in this section3 7#a7 ,complainant ,the term complainant means an individual making a complaint1 or report of suspicious activity1 through the complaint tracking system4 7#b7 ,complaint tracking system ,the term complaint tracking system means the tracking system established under subsection 7b74 7#c7 ,third-party servicer ,the term third-party servicer has the meaning given the term in section #dha7;c74 7b7 ,in general ,the ,secretary shall-- 7#a7 establish and operate1 in coordination with the ,student ,loan ,ombudsman1 a complaint tracking system that includes a single1 toll-free telephone number and a website to facilitate the centralized collection of1 monitoring of1 and response to complaints or reports of suspicious activity regarding-- 7,a7 ,federal student financial aid and the servicing of postsecondary education loans by loan servicers2 7,b7 educational practices and services of institutions of higher education or third-party servicers2 and 7,c7 the recruiting and marketing practices of institutions of higher education or third-party servicers2 and 7#b7 ensure that-- 7,a7 complaints or reports submitted by students1 borrowers of student loans1 staff of loan servicers1 institutions of higher education1 or third-party servicers1 or the general public-- 7i7 may remain anonymous if the complainant so chooses1 including by providing complainants with an option for the individual complaint to not be reported to the loan servicer1 institution1 or third-party servicer1 as the case may be2 and 7ii7 may describe problems that are systematic in nature and not associated with a particular student or institution2 7,b7 complaints and reports are provided to the loan servicers1 institutions of higher education1 or third-party servicers that are the subject of such complaints or reports2 7,c7 such loan servicer1 institution of higher education1 or third-party servicer provides a timely response to the complainant2 and 7,d7 the complaint tracking system has the capacity to retrieve1 search1 and categorize complaints or reports for purposes of identifying problematic trends and systemic practices4 7c7 ,handling of complaints or reports 7#a7 ,in general ,the ,secretary shall establish1 in consultation with the heads of appropriate agencies 7including the ,director of the ,bureau of ,consumer ,financial ,protection71 reasonable procedures to provide a timely response to individuals who file a complaint or report of suspicious activity in the complaint tracking system4 7#b7 ,timely response to complaints ,the ,secretary shall provide a response to a complainant not more than #ij days after receiving the complaint1 or report of suspicious activity1 through the system1 in writing where appropriate4 ,each response shall include a description of-- 7,a7 the steps that have been taken by the ,secretary in response to the complaint or report2 7,b7 any responses received by the ,secretary from the loan servicer1 institution of higher education1 or third-party servicer2 and 7,c7 any additional actions that the ,secretary has taken1 or plans to take1 in response to the complaint or report4 7#c7 ,timely response to ,secretary by institution of higher education or servicer 7,a7 ,notice ,if the ,secretary determines that it is necessary1 the ,secretary shall-- 7i7 notify a loan servicer1 institution of higher education1 or third-party servicer that is the subject of a complaint1 or report of suspicious activity1 through the complaint tracking system regarding the complaint or report2 and 7ii7 directly address and resolve the complaint or report in the system4 7,b7 ,institution or servicer response ,not later than #fj days after receiving a notice under subparagraph 7,a71 a loan servicer1 institution of higher education1 or third-party servicer shall provide a response to the ,secretary concerning the complaint or report1 including-- 7i7 the steps that have been taken by the loan servicer1 institution1 or third-party servicer to respond to the complaint or report2 7ii7 all responses received by the loan servicer1 institution1 or third-party servicer from the complainant2 and 7iii7 any additional actions that the loan servicer1 institution1 or third-party servicer has taken1 or plans to take1 in response to the complaint or report4 7,c7 ,further investigation ,in the event that a complaint or report received by the complaint tracking system is not adequately resolved or addressed by the responses of the loan servicer1 institution of higher education1 or third-party servicer under subparagraph 7,b71 the ,secretary may-- 7i7 ask additional questions of such loan servicer1 institution1 or third-party servicer2 or 7ii7 seek additional information from or action by the loan servicer1 institution1 or third-party servicer4 7#d7 ,provision of information 7,a7 ,in general ,a loan servicer1 institution of higher education1 or third-party servicer shall1 in a timely manner1 comply with a request by the ,secretary for information in the control or possession of such loan servicer1 institution1 or third-party servicer1 respectively1 concerning a complaint or report of suspicious activity received by the ,secretary under the complaint tracking system1 including supporting written documentation1 subject to subparagraph 7,b74 7,b7 ,exceptions ,a loan servicer1 institution of higher education1 or third-party servicer shall not be required to make available under this paragraph-- 7i7 any nonpublic or confidential information1 including any confidential commercial information2 7ii7 any information collected by the loan servicer1 institution1 or third-party servicer for the purpose of preventing fraud or detecting or making any report regarding other unlawful or potentially unlawful conduct2 or 7iii7 any information required to be kept confidential by any other provision of law4 7#e7 ,compliance ,a loan servicer1 institution of higher education1 or third party servicer shall comply with the requirements to provide responses and information1 in accordance with this subsection1 as a condition of receiving funds under title ,,iv or as a condition of the contract with the ,department1 as applicable4 7d7 ,transparency 7#a7 ,data publication ,the ,secretary shall1 on an annual basis1 publish data on the website of the ,department that shall include1 for each loan servicer1 institution1 and third-party servicer-- 7,a7 the number of complaints and reports received2 7,b7 the types of complaints and reports received2 7,c7 information about the resolution of the complaints and reports2 and 7,d7 if the complainant consents1 the narrative content of the complaint or report4 7#b7 ,report ,each year1 the ,secretary shall prepare and submit to the authorizing committees a report describing-- 7,a7 the types and nature of complaints or reports the ,secretary has received under the complaint tracking system2 7,b7 the extent to which complainants are receiving adequate resolution pursuant to this section2 7,c7 whether particular types of complaints or reports are more common in a given sector of institutions of higher education or with particular loan servicers or third-party servicers2 7,d7 any concerning trends or systemic practices identified2 7,e7 any legislative recommendations that the ,secretary determines are necessary to better assist students and families regarding the activities described in subsection 7c77#a72 and 7,f7 the loan servicers1 institutions of higher education1 and third-party servicers with the highest volume of complaints and reports1 as determined by the ,secretary4 4 7b7 ,program participation agreement requirement ,section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a77 is amended by adding at the end the following3 7#cb7 ,the institution will comply with any requirement under section #afa1 or any other requirement by the ,department1 to provide information or responses with respect to a complaint or report of suspicious activity about the institution4 4 #cjd4 ,reforms to eligibility and certification procedures 7a7 ,eligibility and certification procedures ,section #dih 7#bj ,u4,s4,c4 #ajii;c7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking ,for purposes and inserting the following3 7#a7 ,in general ,for purposes 2 7,b7 by striking status1 and and inserting status12 7,c7 by inserting 1 and the institution's compliance with all other eligibility requirements in accordance with paragraph 7#b71 after an institution of higher education2 and 7,d7 by adding at the end the following3 7#b7 ,compliance 7,a7 ,in general ,in making a determination of institutional eligibility under this section1 the ,secretary shall-- 7i7 require that an institution demonstrate compliance with each provision required under this title in order to receive a full1 non-provisional certification of eligibility for purposes of this section2 7ii7 reflect that an institution is not entitled to continued participation in programs under this title absent a demonstration of full compliance2 and 7iii7 determine that an institution is not eligible for participation in programs under this title if it is not in full compliance with section #dhg7;a77#af74 2 and 7#b7 in subsection 7f7-- 7,a7 by striking ,the ,secretary shall ensure and inserting the following3 7#a7 ,in general ,the ,secretary shall ensure 2 and 7,b7 by striking ,the personnel and inserting the following3 ,the ,secretary shall not automatically certify or recertify an institution for participation in a program under this title as a result of delay in conducting a full review of the institution's application4 7#b7 ,site visits ,the personnel 4 7b7 ,provisional certification of high-,risk institutions ,section #dih 7#bj ,u4,s4,c4 #ajii;c7 is amended-- 7#a7 in subsection 7h7-- 7,a7 in paragraph 7#a77;,b7-- 7i7 in clause 7ii71 by striking or after the semicolon2 7ii7 in clause 7iii71 by striking the period at the end and inserting a semicolon2 and 7iii7 by adding at the end the following3 7iv7 the institution has violated any requirement of this title2 7v7 the institution has violated the terms of its program participation agreement under section #dhg2 or 7vi7 the ,secretary determines that the institution's continued participation in programs under this title poses a significant risk to students and taxpayers4 2 7,b7 by redesignating paragraphs 7#b7 and 7#c7 as paragraphs 7#c7 and 7#d71 respectively2 and 7,c7 by inserting after paragraph 7#a7 the following3 7#b7 ,additional conditions ,the ,secretary shall require a provisionally certified institution to comply with such additional conditions as the ,secretary determines necessary or appropriate based on the circumstances of the institution1 as specified in the institution's program participation agreement under section #dhg4 2 7#b7 by redesignating subsections 7i71 7j71 and 7k7 as subsections 7j71 7k71 and 7l71 respectively2 and 7#c7 by inserting after subsection 7h7 the following3 7i7 ,termination action ,if an institution that is provisionally certified under subsection 7h7 is unable to meet its responsibilities under its program participation agreement or is in violation of any requirement established under this title 7including if the institution has engaged in substantial misrepresentations71 or if a final administrative finding or judicial judgment determines that the institution violated a ,state or ,federal consumer protection law or regulation1 the ,secretary may terminate the institution's participation in the programs under this title4 4 7c7 ,program participation agreement claims 7#a7 ,false claims ,section #dhg7;c7 7#bj ,u4,s4,c4 #ajid7;c77 is amended by adding at the end the following3 7#h7 ,false claims 7,a7 ,in general ,an institution that submits a misrepresentation or false claim on an application for funds under this title1 or knowingly 7as defined in section #cgbi of title #ca1 ,united ,states ,code7 fails to comply with the requirements of the program participation agreement under this section1 shall be subject to sections #cgbi through #cgcc of such title4 7,b7 ,amount of damages ,for purposes of section #cgbi7;a7 of title #ca1 ,united ,states ,code1 the amount of damages that the ,government sustains because of the act of the institution described in subparagraph 7,a7 shall be the total amount of funds distributed to the institution for loans made to students under part ,d during the period beginning on the date of the submission of the application or the failure to comply 7as the case may be7 and ending on the date on which a final decision finding a violation of section #cgbi of such ,code is made4 4 7#b7 ,certification of compliance ,paragraph 7#ba7 of section #dhg7;a7 7#bj ,u4,s4,c4 #ajid7;a77#ba77 is amended to read as follows3 7#ba7 ,the institution-- 7,a7 acknowledges that the agreement certifies the institution's compliance with all terms of the program participation agreement and all applicable ,federal laws and regulations that govern an institution's eligibility to receive funds under this title2 7,b7 agrees that any violation of the terms of a program participation agreement or any other ,federal law or regulation described in subparagraph 7,a7 constitutes material noncompliance with a condition of payment2 and 7,c7 will meet the requirements established by the ,secretary and accrediting agencies or associations1 and will provide evidence to the ,secretary that the institution has the authority to operate within a ,state4 4 #cje4 ,state oversight 7a7 ,in general ,section #aja 7#bj ,u4,s4,c4 #ajja7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by redesignating paragraphs 7#c71 7#d71 and 7#e7 as paragraphs 7#d71 7#e71 and 7#f71 respectively2 and 7,b7 by inserting after paragraph 7#b7 the following3 7#c7 if providing education through distance education or correspondence in a ,state in which the institution is not located-- 7,a7 meets the requirements of such ,state for offering postsecondary education2 or 7,b7 if the institution is authorized by a ,state pursuant to an interstate reciprocity agreement-- 7i7 the institution must have fewer than #bjj students in such ,state enrolled annually2 7ii7 the agreement must allow ,states to enforce all non-registration and non-fee laws with respect to out-of-,state institutions2 and 7iii7 decisions regarding eligibility to participate in the reciprocity agreement and the standards that apply to participating institutions shall be made exclusively by representatives of member ,state regulatory agencies or ,state attorneys general offices2 2 and 7#b7 in subsection 7b77#a71 by striking paragraphs 7#a71 7#b71 7#d71 and 7#e7 of subsection 7a7 and inserting paragraphs 7#a71 7#b71 7#c71 7#e71 and 7#f7 of subsection 7a74 7b7 ,conforming amendments ,section #ajb 7#bj ,u4,s4,c4 #ajjb7 is amended-- 7#a7 in subsection 7a77#b77;,a71 by striking section #aja7;a77#d7 each place the term appears and inserting section #aja7;a77#e72 7#b7 in subsection 7b77#a7-- 7,a7 in subparagraph 7,b71 by striking paragraphs 7#a7 and 7#b7 of section #aja7;a7 and inserting paragraphs 7#a71 7#b71 and 7#c7 of section #aja7;a72 and 7,b7 in subparagraph 7,c71 by striking paragraph 7#d7 of section #aja7;a7 and inserting paragraph 7#e7 of section #aja7;a72 and 7#c7 in subsection 7c77#a77;,b71 by striking requirements of paragraphs 7#a71 7#b71 7#d71 and 7#e7 of section #aja7;a7 and inserting requirements of paragraphs 7#a71 7#b71 7#c71 7#e71 and 7#f7 of section #aja7;a74 #cjf4 ,accrediting agency oversight ,section #dif7;c7 77#bj ,u4,s4,c4 #ajii;b7c77 is amended-- 7#a7 in paragraph 7#h71 by striking and after the semicolon2 7#b7 in paragraph 7#i77;,b71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7#aj7 7,a7 assesses the risk to students of any institution or program1 including assessing the risk to students and institutions of any program managed by a third-party servicer1 in accordance with factors provided by the ,secretary2 7,b7 effectively determines whether each such institution or program warrants additional oversight or action2 and 7,c7 provides adequate monitoring of the quality and risk of such institutions or programs4 4 #cjg4 ,mandatory spending for administrative costs of operating the student aid programs ,paragraph 7#c7 of section #deh7;a7 7#bj ,u4,s4,c4 #ajhg;h7a77#c77 is amended to read as follows3 7#c7 ,funds for administrative costs 7,a7 ,in general ,each fiscal year1 there shall be available to the ,secretary from funds not otherwise appropriated1 funds to be obligated for administrative costs under this part1 including the costs of the student loan program under this part1 except that the total expenditures by the ,secretary under this subparagraph shall not exceed #e percent of the amount of the average outstanding ,federal student loan portfolio under this part for the preceding fiscal year4 7,b7 ,availability ,funds made available under subparagraph 7,a7 shall remain available until expended4 ,the ,secretary is authorized to use funds available under this paragraph for a fiscal year for a subsequent fiscal year4 7,c7 ,budget ,no funds may be expended under this paragraph unless the ,secretary includes in the annual budget request of the ,department to ,congress a detailed description of-- 7i7 the specific activities for which the funds made available by this paragraph have been used in the most recent fiscal year2 7ii7 the activities and costs planned for the fiscal year for which the request is made2 and 7iii7 the projection of activities and costs for the fiscal year immediately following the fiscal year for which administrative expenses under this paragraph are made available4 4 ,,iv ,improving access to student and taxpayer information #dja4 ,reporting and disclosures from institutions of higher education 7a7 ,gainful employment and financial value transparency disclosures and warnings ,section #dih;,c1 as added by section #aja7;b71 is amended-- 7#a7 by redesignating subsection 7e7 as subsection 7f72 and 7#b7 by inserting after subsection 7d7 the following3 7e7 ,disclosures and warnings 7#a7 ,in general ,for each gainful employment program or graduate or professional degree program of an institution that does not meet the standards described in subsection 7b71 the institution shall-- 7,a7 provide warnings to prospective students and enrolled students of the institution regarding the failing program status in a manner specified by the ,secretary2 and 7,b7 shall require prospective students to acknowledge receipt of the warning4 7f7 ,disclosure ,an institution of higher education shall provide the link to the website described in subsection 7c77#b77;,a77ii7 to prospective and enrolled students in a manner specified by the ,secretary4 4 7b7 ,instructional spending data and disclosures ,section #acb 7#bj ,u4,s4,c4 #ajae;a7 is amended-- 7#a7 by redesignating subsection 7l7 as subsection 7n72 and 7#b7 by inserting after subsection 7k7 the following3 7l7 ,investments in instruction and student services 7#a7 ,institutional expenditures 7,a7 ,in general ,the ,secretary shall establish definitions for calculating instructional expenditures that shall separately account for the expenditures of an institution of higher education on each of the following3 7i7 ,instruction4 7ii7 ,student services4 7iii7 ,marketing4 7iv7 ,recruitment4 7v7 ,advertising4 7vi7 ,lobbying4 7,b7 ,exclusions ,expenditures on instruction and student services1 as defined in accordance with clauses 7i7 and 7ii7 of subparagraph 7,a71 shall not include expenditures on marketing1 recruitment1 advertising1 compensation of executives or officers1 or lobbying1 or other pre-enrollment expenditures4 7#b7 ,reporting ,each institution of higher education receiving ,federal funds under title ,,iv shall report to the ,secretary-- 7,a7 the total dollar amount of title ,,iv funds received by the institution2 7,b7 the proportion of title ,,iv funds spent on recruitment activities and marketing activities2 7,c7 the proportion of title ,,iv funds spent on instruction and student services2 and 7,d7 for each program of education or division of the institution for which the tuition is charged1 the price of tuition relative to the institution's allocation of revenues to spending on instruction and student services4 7#c7 ,disclosures by the ,department of ,education ,the ,secretary shall make the disclosures reported under paragraph 7#b7 publicly available on the ,college ,navigator website4 4 7c7 ,transparency of online programs ,section #acb 7#bj ,u4,s4,c4 #ajae;a71 as amended by subsection 7b71 is further amended by inserting after subsection 7l71 as added by subsection 7b77#b71 the following3 7m7 ,improving transparency for online and contracted programs 7#a7 ,annual reporting requirements for third-party servicer activities ,each institution of higher education that receives ,federal funds under title ,,iv shall report annually to the ,secretary-- 7,a7 the name of each third-party servicer with which the institution contracts2 and 7,b7 for each such third-party servicer-- 7i7 the names of any programs for which each such third-party servicer is contracted to provide support2 7ii7 the services each such third-party servicer is contracted to offer for each program2 7iii7 the number of students enrolled in any program for which the third-party servicer is contracted to provide services2 7iv7 whether the third-party servicer administers or provides any private or institutional student loan products2 and 7v7 the third-party servicer's total expenditures on advertising1 marketing1 and recruiting on behalf of the institution4 7#b7 ,disclosure requirements ,if an institution of higher education receiving ,federal funds under title ,,iv contracts with a third-party servicer to offer one or more programs of education1 and such third-party servicer provides recruitment activities1 retention activities1 or similar activities 7as specified by the ,secretary7 for the program-- 7,a7 the institution and third-party servicer shall prominently disclose for each such program of education1 in a manner specified by the ,secretary and using language developed by the ,secretary1 the nature of the relationship between the institution and third-party servicer-- 7i7 in advertisements2 7ii7 in marketing materials2 and 7iii7 on the website of the institution2 and 7,b7 individuals who are employed by the third-party servicer to provide admissions1 recruitment1 retention1 or advising activities shall prominently disclose to prospective or enrolled students that the individuals are employees of that third-party servicer and not the institution1 including in any communication about the program of education4 7#c7 ,annual reporting requirements for online education ,each institution of higher education receiving ,federal funds under title ,,iv shall report annually to the ,secretary-- 7,a7 the institution's expenditures on activities to secure enrollments for each online1 on-campus1 and hybrid program1 and its total expenditures for all activities of the institution2 7,b7 the status of each student receiving ,federal student aid as enrolled online1 on-campus1 or in a combination of both modalities1 sufficient for the ,secretary to calculate the total student enrollment1 retention and completion rates1 student loan borrowing levels1 student loan repayment outcomes1 and median earnings for each such program2 and 7,c7 the annual net price charged for each such program4 4 7d7 ,disclosure of material facts for proprietary institutions ,section #dih7;c7 7#bj ,u4,s4,c4 #ajii;c7c771 as amended by section #bjc1 is further amended by adding at the end the following3 7#h7 7,a7 ,the ,secretary shall require each proprietary institution of higher education 7as defined in section #ajb7;c77 to file promptly with the ,secretary-- 7i7 all public filings that the institution files with the ,securities and ,exchange ,commission that include references to matters that affect students1 including-- 7,i7 mergers and acquisitions2 7,,ii7 changes of ownership2 7,,iii7 changes of leadership and board membership2 7,,iv7 school or campus closings2 7,v7 civil lawsuits2 7,,vi7 law enforcement actions1 investigations1 subpoenas1 and demand letters2 and 7,,vii7 material change in financial status2 and 7ii7 in the case of an institution that is not required to make disclosures to the ,securities and ,exchange ,commission1 notifications regarding matters that affect students similar to the filings described in clause 7i71 in a form and manner determined by the ,secretary4 7,b7 ,the ,secretary shall promptly make all information received under subparagraph 7,a7 available on the website of the ,department4 4 #djb4 ,transparency of oversight activities 7a7 ,borrower defense claims and discharges data ,section #dee7;h7 7#bj ,u4,s4,c4 #ajhg;e7h771 as amended by section #ajb7;a71 is further amended-- 7#a7 by redesignating paragraph 7#h7 as paragraph 7#i72 and 7#b7 by inserting after paragraph 7#g7 the following3 7#h7 ,transparency ,the ,secretary shall make publicly available1 and keep regularly updated1 information regarding the number of borrower defense claims filed and discharges granted1 disaggregated by institution of attendance1 ,state of residence as of the date of the claim1 student loan servicer1 and the amount of discharge and reimbursement1 based on increments of not less than #aj1jjj4 4 7b7 #ij_/aj rule transparency ,paragraph 7#c7 of section #dhg7;d7 7#bj ,u4,s4,c4 #ajid7;d77#c77 is amended-- 7#a7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively1 and adjusting the margins appropriately2 7#b7 by striking ,the ,secretary and inserting the following3 7,a7 ,public disclosure of failure to meet requirements ,the ,secretary 2 and 7#c7 by adding at the end the following3 7,b7 ,public disclosure of #ij_/aj data 7i7 ,in general ,the ,secretary shall publicly disclose on the website of the ,department the data provided by proprietary institutions for purposes of this subsection 7referred to in this subparagraph as the #ij_/aj database7 in a prompt1 comprehensive1 and user-friendly manner4 7ii7 ,temporary omissions ,if any data for a proprietary of institution required to be disclosed under clause 7i7 is omitted because of issues unresolved at a given deadline of the ,secretary1 the ,secretary shall-- 7,i7 include1 in the #ij_/aj database on the ,college ,navigator website1 a notice that the information is omitted for such proprietary institution and a clear explanation of the reason for the delay2 and 7,,ii7 timely amend the #ij_/aj database to include the information required to be disclosed for the relevant reporting period4 4 7c7 ,change of ownership and conversion transparency ,section #dih7;j7 7#bj ,u4,s4,c4 #ajii;c7j771 as redesignated by section #cjd7;b77#b71 is further amended by adding at the end the following3 7#e7 ,the ,secretary shall promptly disclose on the website of the ,department-- 7,a7 any application for a change of ownership of an institution or for a conversion of an institution from proprietary to nonprofit status2 and 7,b7 any decision by the ,secretary regarding approval or disapproval of a change of ownership application1 or an application for conversion from proprietary to nonprofit status1 and all external communications describing or explaining those decisions4 4 7d7 ,transparency in financial standing of institutions ,section #dih7;c7 7#bj ,u4,s4,c4 #ajii;c7c771 as amended by section #dja7;d71 is further amended by adding at the end the following3 7#i7 ,the ,secretary shall promptly post on the ,department website1 for all institutions participating in a program under this title-- 7,a7 the annual audited financial statements submitted by each institution under this section and a list of any institutions that have failed to timely submit audited financial statements2 7,b7 7i7 the terms1 amounts1 and withdrawals for letters of credit and other sureties required of institutions of higher education under paragraph 7#c71 including by providing updates as new financial guarantees are required and as changes are made to existing agreements2 and 7ii7 all external communications between institutions of higher education and the ,department describing or implementing the ,secretary's requirements or determinations regarding financial guarantees under paragraph 7#c72 and 7,c7 7i7 each decision of the ,secretary as to the imposition or removal of heightened cash monitoring status and other financial protections regarding an institution2 and 7ii7 all external communications between institutions of higher education and the ,department describing or implementing such decisions4 4 7e7 ,institutional participation in the title ,,iv programs ,section #dih 7#bj ,u4,s4,c4 #ajii;c7 is amended by adding at the end the following3 7m7 ,transparency ,the ,secretary shall post on the ,department website the full program participation agreement under section #dhg for each institution that enters into such an agreement and shall indicate if the institution is on provisional1 temporary provisional1 or expired certification status4 4 7f7 ,accrediting agency transparency ,section #dif 7#bj ,u4,s4,c4 #ajii;b7 is amended-- 7#a7 in subsection 7o7-- 7,a7 by inserting after ,regulations4-- the following3 7#a7 ,in general 2 and 7,b7 by adding at the end the following3 7#b7 ,disclosures 7,a7 ,in general ,the ,secretary shall publicly disclose on the ,department's website-- 7i7 all of the ,department's draft and final accrediting agency or association recognition reports1 and monitoring reports and investigations of any accrediting agency or association1 under this section2 and 7ii7 the reports and accompanying exhibits that each accreditation agency or association submits to the ,department in the course of recognition and re-recognition reviews under this section4 7,b7 ,disclosure requirements ,the ,secretary shall disclose the information required under subparagraph 7,a7 promptly1 so that members of the public may thoroughly and timely respond via public comment in the course of ,department reviews of accrediting agencies and associations4 2 and 7#b7 by adding at the end the following3 7r7 ,transparency of accrediting agency or association actions 7#a7 ,in general ,an accrediting agency or association recognized by the ,secretary under this section shall promptly post on the website of the accrediting agency or association and shall submit to the ,department1 all communications sent from the accrediting agency or association to an institution explaining1 or informing an institution of1 an action taken by the agency with respect to the institution1 including-- 7,a7 to impose or remove a status of probation1 warning1 concern1 stipulation1 or reporting1 or similar status2 7,b7 to impose or revoke a show cause order2 or 7,c7 to impose or revoke a limitation1 suspension1 or termination action4 7#b7 ,no redaction ,the communication posted and submitted under paragraph 7#a7 shall be without redaction1 except for personally identifiable information4 7#c7 ,disclosure by the ,secretary ,the ,secretary shall promptly publicly disclose on the website of the ,department all communications submitted pursuant to paragraph 7#a74 4