[House Report 114-675]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-675
======================================================================
EMPOWERING STUDENTS THROUGH ENHANCED FINANCIAL COUNSELING ACT
_______
July 11, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Kline, from the Committee on Education and the Workforce, submitted
the following
R E P O R T
[To accompany H.R. 3179]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 3179) to amend the loan counseling
requirements under the Higher Education Act of 1965, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Empowering Students Through Enhanced
Financial Counseling Act''.
SEC. 2. ANNUAL COUNSELING.
Section 485(l) of the Higher Education Act of 1965 (20 U.S.C.
1092(l)) is amended to read as follows:
``(l) Annual Financial Aid Counseling.--
``(1) Annual disclosure required.--
``(A) In general.--Each eligible institution shall
ensure that each individual who receives a Federal Pell
Grant or a loan made under part D (other than a Federal
Direct Consolidation Loan) receives comprehensive
information on the terms and conditions of such Federal
Pell Grant or loan and the responsibilities the
individual has with respect to such Federal Pell Grant
or loan. Such information shall be provided, for each
award year for which the individual receives such
Federal Pell Grant or loan, in a simple and
understandable manner--
``(i) during a counseling session conducted
in person;
``(ii) online, with the individual
acknowledging receipt of the information; or
``(iii) through the use of the online
counseling tool described in subsection
(n)(1)(B).
``(B) Use of interactive programs.--In the case of
institutions not using the online counseling tool
described in subsection (n)(1)(B), the Secretary shall
require such institutions to carry out the requirements
of subparagraph (A) through the use of interactive
programs, during an annual counseling session that is
in-person or online, that test the individual's
understanding of the terms and conditions of the
Federal Pell Grant or loan awarded to the individual,
using simple and understandable language and clear
formatting.
``(2) All individuals.--The information to be provided under
paragraph (1)(A) to each individual receiving counseling under
this subsection shall include the following:
``(A) An explanation of how the individual may budget
for typical educational expenses and a sample budget
based on the cost of attendance for the institution.
``(B) An explanation that an individual has a right
to annually request a disclosure of information
collected by a consumer reporting agency pursuant to
section 612(a) of the Fair Credit Reporting Act (15
U.S.C. 1681j(a)).
``(C) Based on the most recent data available from
the American Community Survey available from the
Department of Commerce, the estimated average income
and percentage of employment in the State of domicile
of the individual for individuals with--
``(i) a high school diploma or equivalent;
``(ii) some post-secondary education without
completion of a degree or certificate; and
``(iii) a bachelor's degree.
``(D) An introduction to the financial management
resources provided by the Financial Literacy and
Education Commission.
``(3) Students receiving federal pell grants.--The
information to be provided under paragraph (1)(A) to each
student receiving a Federal Pell Grant shall include the
following:
``(A) An explanation of the terms and conditions of
the Federal Pell Grant.
``(B) An explanation of approved educational expenses
for which the student may use the Federal Pell Grant.
``(C) An explanation of why the student may have to
repay the Federal Pell Grant.
``(D) An explanation of the maximum number of
semesters or equivalent for which the student may be
eligible to receive a Federal Pell Grant, and a
statement of the amount of time remaining for which the
student may be eligible to receive a Federal Pell
Grant.
``(E) An explanation that if the student transfers to
another institution not all of the student's courses
may be acceptable in transfer toward meeting specific
degree or program requirements at such institution, but
the amount of time remaining for which a student may be
eligible to receive a Federal Pell Grant, as provided
under subparagraph (D), will not change.
``(F) An explanation of how the student may seek
additional financial assistance from the institution's
financial aid office due to a change in the student's
financial circumstances, and the contact information
for such office.
``(4) Borrowers receiving loans made under part d (other than
parent plus loans).--The information to be provided under
paragraph (1)(A) to a borrower of a loan made under part D
(other than a Federal Direct PLUS Loan made on behalf of a
dependent student) shall include the following:
``(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the eligibility
of the borrower for other forms of student financial
assistance.
``(B) An explanation of the use of the master
promissory note.
``(C) An explanation that the borrower is not
required to accept the full amount of the loan offered
to the borrower.
``(D) An explanation that the borrower should
consider accepting any grant, scholarship, or State or
Federal work-study jobs for which the borrower is
eligible prior to accepting Federal student loans.
``(E) A recommendation to the borrower to exhaust the
borrower's Federal student loan options prior to taking
out private education loans, an explanation that
Federal student loans typically offer better terms and
conditions than private education loans, an explanation
of treatment of loans made under part D and private
education loans in bankruptcy, and an explanation that
if a borrower decides to take out a private education
loan--
``(i) the borrower has the ability to select
a private educational lender of the borrower's
choice;
``(ii) the proposed private education loan
may impact the borrower's potential eligibility
for other financial assistance, including
Federal financial assistance under this title;
and
``(iii) the borrower has a right--
``(I) to accept the terms of the
private education loan within 30
calendar days following the date on
which the application for such loan is
approved and the borrower receives the
required disclosure documents, pursuant
to section 128(e) of the Truth in
Lending Act (15 U.S.C. 1638(e)); and
``(II) to cancel such loan within 3
business days of the date on which the
loan is consummated, pursuant to
section 128(e)(7) of such Act (15
U.S.C. 1638(e)(7)).
``(F) An explanation of the approved educational
expenses for which the borrower may use a loan made
under part D.
``(G) Information on the annual and aggregate loan
limits for Federal Direct Stafford Loans and Federal
Direct Unsubsidized Stafford Loans.
``(H) Information on how interest accrues and is
capitalized during periods when the interest is not
paid by either the borrower or the Secretary.
``(I) In the case of a Federal Direct PLUS Loan or a
Federal Direct Unsubsidized Stafford Loan, the option
of the borrower to pay the interest while the borrower
is in school.
``(J) The definition of half-time enrollment at the
institution, during regular terms and summer school, if
applicable, and the consequences of not maintaining at
least half-time enrollment.
``(K) An explanation of the importance of contacting
the appropriate offices at the institution of higher
education if the borrower withdraws prior to completing
the borrower's program of study so that the institution
can provide exit counseling, including information
regarding the borrower's repayment options and loan
consolidation.
``(L) For a first-time borrower--
``(i) a statement of the anticipated balance
on the loan for which the borrower is receiving
counseling under this subsection;
``(ii) based on such anticipated balance, the
anticipated monthly payment amount under, at
minimum--
``(I) the standard repayment plan;
and
``(II) an income-based repayment plan
under section 493C, as determined using
regionally available data from the
Bureau of Labor Statistics of the
average starting salary for the
occupation in which the borrower has an
interest in or intends to be employed;
and
``(iii) an estimate of the projected monthly
payment amount under each repayment plan
described in clause (ii), based on the average
cumulative indebtedness at graduation for
borrowers of loans made under part D who are in
the same program of study as the borrower.
``(M) For a borrower with an outstanding balance of
principal or interest due on a loan made under this
title--
``(i) a current statement of the amount of
such outstanding balance and interest accrued;
``(ii) based on such outstanding balance, the
anticipated monthly payment amount under, at
minimum, the standard repayment plan and, using
regionally available data from the Bureau of
Labor Statistics of the average starting salary
for the occupation the borrower intends to be
employed, an income-based repayment plan under
section 493C; and
``(iii) an estimate of the projected monthly
payment amount under each repayment plan
described in clause (ii), based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
student is receiving counseling under
this subsection; and
``(III) a projection for any other
loans made under part D that the
borrower is reasonably expected to
accept during the borrower's program of
study based on at least the expected
increase in the cost of attendance of
such program.
``(N) The obligation of the borrower to repay the
full amount of the loan, regardless of whether the
borrower completes or does not complete the program in
which the borrower is enrolled within the regular time
for program completion.
``(O) The likely consequences of default on the loan,
including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation, and a notice of the institution's most
recent cohort default rate (defined in section 435(m)),
an explanation of the cohort default rate, the most
recent national average cohort default rate, and the
most recent national average cohort default rate for
the category of institution described in section
435(m)(4) to which the institution belongs.
``(P) Information on the National Student Loan Data
System and how the borrower can access the borrower's
records.
``(Q) The contact information for the institution's
financial aid office or other appropriate office at the
institution the borrower may contact if the borrower
has any questions about the borrower's rights and
responsibilities or the terms and conditions of the
loan.
``(5) Borrowers receiving parent plus loans for dependent
students.--The information to be provided under paragraph
(1)(A) to a borrower of a Federal Direct PLUS Loan made on
behalf of a dependent student shall include the following:
``(A) The information described in subparagraphs (A)
through (C) and (N) through (Q) of paragraph (4).
``(B) The option of the borrower to pay the interest
on the loan while the loan is in deferment.
``(C) For a first-time borrower of such loan--
``(i) a statement of the anticipated balance
on the loan for which the borrower is receiving
counseling under this subsection;
``(ii) based on such anticipated balance, the
anticipated monthly payment amount under the
standard repayment plan; and
``(iii) an estimate of the projected monthly
payment amount under the standard repayment
plan, based on the average cumulative
indebtedness of other borrowers of Federal
Direct PLUS Loans made on behalf of dependent
students who are in the same program of study
as the student on whose behalf the borrower
borrowed the loan.
``(D) For a borrower with an outstanding balance of
principal or interest due on such loan--
``(i) a statement of the amount of such
outstanding balance;
``(ii) based on such outstanding balance, the
anticipated monthly payment amount under the
standard repayment plan; and
``(iii) an estimate of the projected monthly
payment amount under the standard repayment
plan, based on--
``(I) the outstanding balance
described in clause (i);
``(II) the anticipated outstanding
balance on the loan for which the
borrower is receiving counseling under
this subsection; and
``(III) a projection for any other
Federal Direct PLUS Loan made on behalf
of the dependent student that the
borrower is reasonably expected to
accept during the program of study of
such student based on at least the
expected increase in the cost of
attendance of such program.
``(E) Debt management strategies that are designed to
facilitate the repayment of such indebtedness.
``(F) An explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans.
``(G) For each Federal Direct PLUS Loan made on
behalf of a dependent student for which the borrower is
receiving counseling under this subsection, the contact
information for the loan servicer of the loan and a
link to such servicer's Website.
``(6) Annual loan acceptance.--Prior to making the first
disbursement of a loan made under part D (other than a Federal
Direct Consolidation Loan) to a borrower for an award year, an
eligible institution, shall, as part of carrying out the
counseling requirements of this subsection for the loan, ensure
that after receiving the applicable counseling under paragraphs
(2), (4), and (5) for the loan the borrower accepts the loan
for such award year by--
``(A) signing the master promissory note for the
loan;
``(B) signing and returning to the institution a
separate written statement that affirmatively states
that the borrower accepts the loan; or
``(C) electronically signing an electronic version of
the statement described in subparagraph (B).''.
SEC. 3. EXIT COUNSELING.
Section 485(b) of the Higher Education Act of 1965 (20 U.S.C.
1092(b)) is amended--
(1) in paragraph (1)(A)--
(A) in the matter preceding clause (i), by striking
``through financial aid offices or otherwise'' and
inserting ``through the use of an interactive program,
during an exit counseling session that is in-person or
online, or through the use of the online counseling
tool described in subsection (n)(1)(A)'';
(B) by redesignating clauses (i) through (ix) as
clauses (iv) through (xii), respectively;
(C) by inserting before clause (iv), as so
redesignated, the following:
``(i) a summary of the outstanding balance of principal and
interest due on the loans made to the borrower under part B, D,
or E;
``(ii) an explanation of the grace period preceding repayment
and the expected date that the borrower will enter repayment;
``(iii) an explanation that the borrower has the option to
pay any interest that has accrued while the borrower was in
school or that may accrue during the grace period preceding
repayment or during an authorized period of deferment or
forbearance, prior to the capitalization of the interest;'';
(D) in clause (iv), as so redesignated--
(i) by striking ``sample information showing
the average'' and inserting ``information,
based on the borrower's outstanding balance
described in clause (i), showing the
borrower's''; and
(ii) by striking ``of each plan'' and
inserting ``of at least the standard repayment
plan and the income-based repayment plan under
section 493C'';
(E) in clause (ix), as so redesignated--
(i) by inserting ``decreased credit score,''
after ``credit reports,''; and
(ii) by inserting ``reduced ability to rent
or purchase a home or car, potential difficulty
in securing employment,'' after ``Federal
law,'';
(F) in clause (x), as so redesignated, by striking
``consolidation loan under section 428C or a'';
(G) in clauses (xi) and (xii), as so redesignated, by
striking ``and'' at the end; and
(H) by adding at the end the following:
``(xiii) for each of the borrower's loans made under part B,
D, or E for which the borrower is receiving counseling under
this subsection, the contact information for the loan servicer
of the loan and a link to such servicer's Website; and
``(xiv) an explanation that an individual has a right to
annually request a disclosure of information collected by a
consumer reporting agency pursuant to section 612(a) of the
Fair Credit Reporting Act (15 U.S.C. 1681j(a)).'';
(2) in paragraph (1)(B)--
(A) by inserting ``online or'' before ``in writing'';
and
(B) by adding before the period at the end the
following: ``, except that in the case of an
institution using the online counseling tool described
in subsection (n)(1)(A), the Secretary shall attempt to
provide such information to the student in the manner
described in subsection (n)(3)(C)''; and
(3) in paragraph (2)(C), by inserting ``, such as the online
counseling tool described in subsection (n)(1)(A),'' after
``electronic means''.
SEC. 4. ONLINE COUNSELING TOOLS.
Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092) is
further amended by adding at the end the following:
``(n) Online Counseling Tools.--
``(1) In general.--Beginning not later than 1 year after the
date of enactment of the Empowering Students Through Enhanced
Financial Counseling Act, the Secretary shall maintain--
``(A) an online counseling tool that provides the
exit counseling required under subsection (b) and meets
the applicable requirements of this subsection; and
``(B) an online counseling tool that provides the
annual counseling required under subsection (l) and
meets the applicable requirements of this subsection.
``(2) Requirements of tools.--In maintaining the online
counseling tools described in paragraph (1), the Secretary
shall ensure that each such tool is--
``(A) consumer tested, in consultation with other
relevant Federal agencies, to ensure that the tool is
effective in helping individuals understand their
rights and obligations with respect to borrowing a loan
made under part D or receiving a Federal Pell Grant;
``(B) understandable to students receiving Federal
Pell Grants and borrowers of loans made under part D;
and
``(C) freely available to all eligible institutions.
``(3) Record of counseling completion.--The Secretary shall--
``(A) use each online counseling tool described in
paragraph (1) to keep a record of which individuals
have received counseling using the tool, and notify the
applicable institutions of the individual's completion
of such counseling;
``(B) in the case of a borrower who receives annual
counseling for a loan made under part D using the tool
described in paragraph (1)(B), notify the borrower by
when the borrower should accept, in a manner described
in subsection (l)(6), the loan for which the borrower
has received such counseling; and
``(C) in the case of a borrower described in
subsection (b)(1)(B) at an institution that uses the
online counseling tool described in paragraph (1)(A) of
this subsection, the Secretary shall attempt to provide
the information described in subsection (b)(1)(A) to
the borrower through such tool.''.
SEC. 5. LONGITUDINAL STUDY ON THE EFFECTIVENESS OF STUDENT LOAN
COUNSELING.
(a) In General.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Education, acting through the Director of
the Institute of Education Sciences, shall begin conducting a rigorous,
longitudinal study of the impact and effectiveness of the student loan
counseling--
(1) provided under subsections (b), (l), and (n) of section
485 of the Higher Education Act of 1965 (20 U.S.C. 1092), as
amended by this Act; and
(2) provided through such other means as the Secretary of
Education may determine.
(b) Contents.--
(1) Borrower information.--The longitudinal study carried out
under subsection (a) shall include borrower information, in the
aggregate and disaggregated by race, ethnicity, gender, income,
and status as an individual with a disability, on--
(A) student persistence;
(B) degree attainment;
(C) program completion;
(D) successful entry into student loan repayment;
(E) cumulative borrowing levels; and
(F) such other factors as the Secretary of Education
may determine.
(2) Exception.--The disaggregation under paragraph (1) shall
not be required in a case in which the number of borrowers in a
category is insufficient to yield statistically reliable
information or the results would reveal personally identifiable
information about an individual borrower.
(c) Interim Reports.--Not later than 18 months after the commencement
of the study under subsection (a), and annually thereafter, the
Secretary of Education shall evaluate the progress of the study and
report any short-term findings to the appropriate committees of
Congress.
SEC. 6. AVAILABILITY OF FUNDS.
(a) Use of Existing Funds.--Of the amount authorized to be
appropriated for maintaining the Department of Education's Financial
Awareness Counseling Tool, $2,000,000 shall be available to carry out
this Act and the amendments made by this Act.
(b) No Additional Funds Authorized.--No funds are authorized to be
appropriated by this Act to carry out this Act or the amendments made
by this Act.
Purpose
H.R. 3179, the Empowering Students through Enhanced
Financial Counseling Act, promotes financial literacy through
enhanced counseling for recipients of federal financial aid.
Committee Action
As the Committee on Education and the Workforce (Committee)
continues the Higher Education Act reauthorization process,
increasing transparency and usefulness of higher education
data; simplifying and improving the federal student aid
programs; and promoting innovation, access, and completion
remain top priorities.
112TH CONGRESS
Hearings--First session
On March 1, 2011, the Committee held a hearing in
Washington, D.C., on ``Education Regulations: Weighing the
Burden on Schools and Students.'' The hearing was the first in
a series examining the burden of federal, state, and local
regulations on the nation's education system. The purpose of
the hearing was to uncover the damaging effects of federal
regulations on schools and institutions. These rules
increasingly stifle growth and innovation, raise operating
costs, and limit student access to affordable colleges and
universities throughout the nation. Testifying before the
Committee were Dr. Edgar Hatrick, Superintendent, Loudon County
Public Schools, Ashburn, Virginia; Ms. Kati Haycock, President,
The Education Trust, Washington, D.C.; Mr. Gene Wilhoit,
Executive Director, Council of Chief State School Officers,
Washington, D.C.; and Mr. Christopher B. Nelson, President, St.
John's College, Annapolis, Maryland.
On March 11, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Education
Regulations: Federal Overreach into Academic Affairs.'' The
purpose of the hearing was to discuss the most egregious and
intrusive pieces of the program integrity regulations issued by
the U.S. Department of Education, specifically, the state
authorization regulation and the credit hour regulation, and to
uncover the unintended consequences of the regulations to
states and institutions of higher education. Testifying before
the Subcommittee were Mr. John Ebersole, President, Excelsior
College, Albany, New York; Dr. G. Blair Dowden, President,
Huntington University, Huntington, Indiana; The Honorable
Kathleen Tighe, Inspector General, U.S. Department of
Education, Washington, D.C.; and Mr. Ralph Wolff, President,
Western Association of Schools and Colleges, Alameda,
California.
On March 17, 2011, the Committee held a hearing in
Washington, D.C., on ``Education Regulations: Roadblocks to
Student Choice in Higher Education.'' The purpose of the
hearing was to explore the harmful consequences of the gainful
employment regulation issued by the U.S. Department of
Education. Testifying before the Committee were Ms. Catherine
Barreto, Graduate, Monroe College, and Senior Sales Associate,
Doubletree Hotels, Brooklyn, New York; Mr. Travis Jennings,
Electrical Supervisor of the Manufacturing Launch Systems
Group, Orbital Sciences Corporation, Chandler, Arizona; Dr.
Arnold Mitchem, President, Council for Opportunity in
Education, Washington, D.C.; and Ms. Jeanne Herrmann, Chief
Operating Officer, Globe University/Minnesota School of
Business, Woodbury, Minnesota.
On March 21, 2011, the Committee held a hearing in Wilkes-
Barre, Pennsylvania, on ``Reviving our Economy: The Role of
Higher Education in Job Growth and Development.'' The purpose
of the hearing was to highlight work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Mr. James Perry,
President, Hazelton City Council, Hazelton, Pennsylvania; Mr.
Jeffrey Alesson, Vice President of Strategic Planning and
Quality Assurance, Diamond Manufacturing, Exeter, Pennsylvania;
Dr. Reynold Verret, Provost, Wilkes University, Wilkes-Barre,
Pennsylvania; Mr. Raymond Angeli, President, Lackawanna
College, Scranton, Pennsylvania; Ms. Joan Seaman, Executive
Director, Empire Beauty School, Moosic, Pennsylvania; and Mr.
Thomas P. Leary, President, Luzerne County Community College,
Nanticoke, Pennsylvania.
On March 22, 2011, the Committee held a hearing in Utica,
New York, on ``Reviving our Economy: The Role of Higher
Education in Job Growth and Development.'' The purpose of the
hearing was to highlight work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Mr. Anthony J. Picente,
Jr., County Executive, Oneida County, Utica, New York; Mr. Dave
Mathis, Director, Oneida County Workforce Development, Utica,
New York; Dr. John Bay, Vice President and Chief Scientist,
Assured Information Security, Inc., Rome, New York; Dr. Bjong
Wolf Yeigh, President, State University of New York Institute
of Technology, Utica, New York; Dr. Ann Marie Murray,
President, Herkimer County Community College, Herkimer, New
York; Dr. Judith Kirkpatrick, Provost, Utica College, Utica,
New York; and Mr. Phil Williams, President, Utica School of
Commerce, The Business College, Utica, New York.
On April 21, 2011, the Committee held a hearing in
Columbia, Tennessee, on ``Reviving our Economy: The Role of
Higher Education in Job Growth and Development.'' The purpose
of the hearing was to highlight the work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Dr. Janet Smith,
President, Columbia State Community College, Columbia,
Tennessee; Dr. Ted Brown, President, Martin-Methodist College,
Pulaski, Tennessee; Mr. Jim Coakley, President, Nashville Auto-
Diesel College, Nashville, Tennessee; The Honorable Dean
Dickey, Mayor, City of Columbia, Columbia, Tennessee; Ms. Susan
Marlow, President and Chief Executive Officer, Smart Data
Strategies, Franklin, Tennessee; Ms. Jan McKeel, Executive
Director, South Central Tennessee Workforce Board, Columbia,
Tennessee; and Ms. Margaret Prater, Executive Director,
Northwest Tennessee Workforce Board, Dyersburg, Tennessee.
On July 8, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training, together with the House Committee on Oversight and
Government Reform Subcommittee on Regulatory Affairs, Stimulus
Oversight, and Government Spending, held a hearing in
Washington, D.C., on ``The Gainful Employment Regulation:
Limiting Job Growth and Student Choice.'' The purpose of the
hearing was to explore the harmful consequences of the gainful
employment regulation issued by the U.S. Department of
Education. Testifying before the subcommittees were Dr. Dario
A. Cortes, President, Berkeley College, New York City, New
York; Dr. Anthony P. Carnevale, Director, Georgetown University
Center on Education and the Workforce, Washington, D.C.; Ms.
Karla Carpenter, Graduate, Herzing University and Program
Manager, Quest Software, Madison, Wisconsin; and Mr. Harry C.
Alford, President and Chief Executive Officer, National Black
Chamber of Commerce, Washington, D.C.
On August 16, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Greenville, South Carolina, on
``Reviving Our Economy: The Role of Higher Education in Job
Growth and Development.'' The purpose of the hearing was to
highlight the work by local colleges and universities to
respond to local and state economic needs. Testifying before
the Subcommittee were The Honorable Knox White, Mayor, City of
Greenville, Greenville, South Carolina; Mr. Werner Eikenbusch,
Section Manager, Associate Development and Training, BMW
Manufacturing Co., Spartanburg, South Carolina; Ms. Laura
Harmon, Project Director, Greenville Works, Greenville, South
Carolina; Dr. Brenda Thames, Vice President of Academic
Development, Greenville Health System, Greenville, South
Carolina; Mr. James F. Barker, President, Clemson University,
Clemson, South Carolina; Dr. Thomas F. Moore, Chancellor,
University of South Carolina Upstate, Spartanburg, South
Carolina; Dr. Keith Miller, President, Greenville Technical
College, Greenville, South Carolina; and Ms. Amy Hickman,
Campus President, ECPI College of Technology, Greenville, South
Carolina.
On October 25, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Government-
Run Student Loans: Ensuring the Direct Loan Program is
Accountable to Students and Taxpayers.'' The purpose of the
hearing was to examine the switch to and implementation of the
Direct Loan program. Testifying before the Subcommittee were
Mr. James W. Runcie, Chief Operating Officer, Office of Federal
Student Aid, U.S. Department of Education, Washington, D.C.;
Mr. Ron H. Day, Director of Financial Aid, Kennesaw State
University, Kennesaw, Georgia; Ms. Nancy Hoover, Director of
Financial Aid, Denison University, Granville, Ohio; and Mr.
Mark. A. Bandre, Vice President for Enrollment Management and
Student Affairs, Baker University, Baldwin City, Kansas.
On November 30, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Keeping
College Within Reach: Discussing Ways Institutions Can
Streamline Costs and Reduce Tuition.'' The purpose of the
hearing was to highlight innovative practices institutions of
higher education are implementing to reduce their costs to
limit tuition increases for students. Testifying before the
Subcommittee were Ms. Jane V. Wellman, Executive Director,
Delta Project on Postsecondary Costs, Productivity, and
Accountability, Washington, D.C.; Dr. Ronald E. Manahan,
President, Grace College and Seminary, Winona Lake, Indiana;
Mr. Jamie P. Merisotis, President and Chief Executive Officer,
Lumina Foundation for Education, Indianapolis, Indiana; and Mr.
Tim Foster, President, Colorado Mesa University, Grand
Junction, Colorado.
Legislative action--First session
On February 17, 2011, the House of Representatives
considered an amendment offered by Committee Chairman John
Kline (R-MN), Higher Education and Workforce Training
Subcommittee Chairwoman Virginia Foxx (R-NC), and Rep. Alcee
Hastings (D-FL) to H.R. 1, the Disaster Relief Appropriations
Act of 2013. The amendment prohibited the use of funds by the
U.S. Department of Education to implement and enforce the
gainful employment regulation. The amendment was agreed to by a
bipartisan vote of 289 to 136.
On February 19, 2011, the House of Representatives passed
H.R. 1 by a vote of 235 to 189. This bill was not signed into
law.
On June 3, 2011, Chairman John Kline (R-MN) and
Subcommittee Chairwoman Virginia Foxx (R-NC) introduced H.R.
2117, the Protecting Academic Freedom in Higher Education Act.
The bill repealed the state authorization regulation, one piece
of the credit hour regulation, and prohibited the Secretary of
Education (Secretary) from defining credit hour for any purpose
under the Higher Education Act of 1965.
On June 15, 2011, the Committee considered H.R. 2117 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 27 to 11.
The Committee considered and adopted the following
amendment to H.R. 2117:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to add a
short title to the legislation. The amendment was adopted by
voice vote.
The Committee further considered the following amendments
to H.R. 2117, which were not adopted:
Rep. Raul Grijalva (D-AZ) offered an amendment to
maintain pieces of the state authorization regulation,
including the complaint process. The amendment failed by a vote
of 17 to 22.
Ranking Member George Miller (D-CA) offered an
amendment to prohibit implementation until the U.S. Department
of Education Inspector General certifies there are equal or
greater protections in place related to program integrity under
Title IV of the Higher Education Act of 1965. The amendment
failed by a vote of 17 to 22.
Rep. Rush Holt (D-NJ) offered an amendment to
stipulate the act would be effective only if the maximum Pell
Grant award is at least $5,550 for the 2012-2013 school year.
The amendment was ruled out of order.
Rep. Tim Bishop (D-NY) offered an amendment to
strike the repeal of the credit hour regulation that
establishes a federal definition of a credit hour. The
amendment failed by a vote of 11 to 27.
Rep. Tim Bishop (D-NY) offered an amendment to
strike the prohibition on the Secretary of Education from
defining credit hour in the future. The amendment failed by a
vote of 16 to 22.
Hearings--Second session
On July 18, 2012, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Keeping
College Within Reach: Exploring State Efforts to Curb Costs.''
The purpose of the hearing was to highlight innovative
practices at the state level to assist postsecondary
institutions in keeping costs affordable and to promote
accountability of public funds. Testifying before the
Subcommittee were Mr. Scott Pattison, Executive Director,
National Association of State Budget Officers, Washington,
D.C.; Ms. Teresa Lubbers, Commissioner for Higher Education,
State of Indiana, Indianapolis, Indiana; Mr. Stan Jones,
President, Complete College America, Zionsville, Indiana; and
Dr. Joe May, President, Louisiana Community and Technical
College System, Baton Rouge, Louisiana.
On September 20, 2012, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Assessing
College Data: Helping to Provide Valuable Information to
Students, Institutions, and Taxpayers.'' The purpose of the
hearing was to examine data collected by the federal government
from institutions of higher education, including data
requirements established during the last reauthorization of the
Higher Education Act. Testifying before the Subcommittee were
Dr. Mark Schneider, Vice President, American Institutes for
Research, Washington, D.C.; Dr. James Hallmark, Vice Chancellor
for Academic Affairs, Texas A&M System, College Station, Texas;
Dr. Jose Cruz, Vice President for Higher Education Policy and
Practice, The Education Trust, Washington, D.C.; and Dr. Tracy
Fitzsimmons, President, Shenandoah University, Winchester,
Virginia.
Legislative action--Second session
On February 28, 2012, the House of Representatives passed
H.R. 2117 by a bipartisan vote of 303 to 114. The bill was sent
to the Senate and referred to the Senate Committee on Health,
Education, Labor, and Pensions.
On April 25, 2012, Rep. Judy Biggert (R-IL) introduced H.R.
4628, the Interest Rate Reduction Act. The bill reduced the
interest rate on subsidized Stafford loans made to
undergraduate students from 6.8 percent to 3.4 percent for one
year, from July 1, 2012, through June 30, 2013. To offset the
increase in mandatory spending, the bill repealed the
Prevention and Public Health Fund authorized under Section 4002
of the Patient Protection and Affordable Care Act and rescinded
the balance of unobligated monies made available for the fund.
On April 27, 2012, the House of Representatives passed H.R.
4628 by a vote of 215 to 195.
While H.R. 4628 was never considered by the Senate, its
provisions were included in the Conference Report for H.R.
4348, the Moving Ahead for Progress in the 21st Century Act
(MAP-21), sponsored by Rep. John Mica (R-FL). To partially
offset the increase in mandatory spending that resulted from
the temporary reduction in interest rates on subsidized
Stafford loans, the bill permanently restricted the period of
eligibility to borrow subsidized Stafford loans to 150 percent
of the published length of a student's educational program.
On June 29, 2012, the House of Representatives passed the
Conference Report to H.R. 4348 by a bipartisan vote of 373 to
52.
On June 29, 2012, the Senate passed the Conference Report
to H.R. 4348 by a bipartisan vote of 74 to 19.
On July 6, 2012, the President of the United States signed
H.R. 4348 into law (P.L. 112-141).
113TH CONGRESS
Hearings--First session
On March 13, 2013, the Committee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Examining
Opportunities to Strengthen Federal Student Loan Programs.''
The purpose of the hearing was to examine ways to strengthen
federal student loans, as well as how moving to a market-based
or variable interest rate on all federal student loans could
benefit both students and taxpayers. Testifying before the
Committee were Dr. Deborah J. Lucas, Sloan Distinguished
Professor of Finance, Massachusetts Institute of Technology,
Cambridge, Massachusetts; Mr. Jason Delisle, Director, Federal
Education Budget Project, The New America Foundation,
Washington, D.C.; Mr. Justin Draeger, President and Chief
Executive Officer, National Association of Student Financial
Aid Administrators, Washington, D.C.; and Dr. Charmaine Mercer,
Vice President of Policy, Alliance for Excellent Education,
Washington, D.C.
On April 9, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Monroe, Michigan, entitled
``Reviving Our Economy: The Role of Higher Education in Job
Growth and Development.'' The purpose of the hearing was to
highlight work being done by local colleges and universities to
respond to local and state economic needs. Testifying before
the Subcommittee were Mr. Henry Lievens, Commissioner, Monroe
County, Monroe, Michigan; Ms. Lynette Dowler, Plant Director,
Fossil Generation, DTE Energy, Detroit, Michigan; Ms. Susan
Smith, Executive Director, Economic Development Partnership of
Hillsdale County, Jonesville, Michigan; Mr. Dan Fairbanks,
United Auto Workers International Representative, UAW-GM Skill
Development and Training Department, Detroit, Michigan; Dr.
David E. Nixon, President, Monroe County Community College,
Monroe, Michigan; Sister Peg Albert, OP, Ph.D., President,
Siena Heights University, Adrian, Michigan; Dr. Michelle
Shields, Career Coach/Workforce Development Director, Jackson
Community College, Jackson, Michigan; and Mr. Douglas A. Levy,
Director of Financial Aid, Macomb Community College, Warren,
Michigan.
On April 16, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: The Role of Federal Student Aid
Programs.'' The purpose of the hearing was to examine shifting
the focus of federal student aid programs from enhancing access
to improving student outcomes. Testifying before the
Subcommittee were Mr. Terry W. Hartle, Senior Vice President,
Division of Government and Public Affairs, American Council on
Education, Washington, D.C.; Ms. Moriah Miles, State Chair,
Minnesota State University Student Association, Mankato,
Minnesota; Ms. Patricia McGuire, President, Trinity Washington
University, Washington, D.C.; and Mr. Dan Madzelan, Former
Employee (Retired), U.S. Department of Education, University
Park, Maryland.
On April 24, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Enhancing Transparency for Students,
Families, and Taxpayers.'' The purpose of the hearing was to
examine ways to improve the information provided by the federal
government to inform students and families about their
postsecondary education options. Testifying before the
Subcommittee were Dr. Donald E. Heller, Dean, College of
Education, Michigan State University, East Lansing, Michigan;
Mr. Alex Garrido, Student, Keiser University, Miami, Florida;
Dr. Nicole Farmer Hurd, Founder and Executive Director,
National College Advising Corps, Carrboro, North Carolina; and
Mr. Travis Reindl, Program Director, Postsecondary Education,
National Governors Association Center for Best Practices,
Washington, D.C.
On June 13, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Discussing Program Quality through
Accreditation.'' The purpose of the hearing was to examine the
historical role of accreditation, discuss the role of regional
and national accreditors in measuring institutional quality,
and contemplate areas for reform. Testifying before the
Subcommittee were Dr. Elizabeth H. Sibolski, President, Middle
States Commission on Higher Education, Philadelphia,
Pennsylvania; Dr. Michale McComis, Executive Director,
Accrediting Commission of Career Schools and Colleges,
Arlington, Virginia; Ms. Anne D. Neal, President, American
Council of Trustees and Alumni, Washington, D.C.; and Mr. Kevin
Carey, Director of the Education Policy Program, The New
America Foundation, Washington, D.C.
On July 9, 2013, the Committee held a hearing in
Washington, D.C., entitled ``Keeping College Within Reach:
Improving Higher Education through Innovation.'' The purpose of
the hearing was to highlight innovation in higher education
occurring at the state and institutional level and in the
private sector. Testifying before the Committee were Mr. Scott
Jenkins, Director of External Relations, Western Governors
University, Salt Lake City, Utah; Dr. Pamela J. Tate, President
and Chief Executive Officer, Council for Adult and Experiential
Learning, Chicago, Illinois; Dr. Joann A. Boughman, Senior Vice
Chancellor for Academic Affairs, University System of Maryland,
Adelphi, Maryland; and Mr. Burck Smith, Chief Executive Officer
and Founder, StraighterLine, Baltimore, Maryland.
On September 11, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Supporting Higher Education Opportunities
for America's Servicemembers and Veterans.'' The purpose of the
hearing was to examine the efforts of higher education to
improve postsecondary education opportunities for
servicemembers and veterans. Testifying before the Subcommittee
were Mrs. Kimrey W. Rhinehardt, Vice President for Federal and
Military Affairs, The University of North Carolina, Chapel
Hill, North Carolina; Dr. Arthur F. Kirk, Jr., President, Saint
Leo University, Saint Leo, Florida; Dr. Russell S. Kitchner,
Vice President for Regulatory and Governmental Relations,
American Public University System, Charles Town, West Virginia;
and Dr. Ken Sauer, Senior Associate Commissioner for Research
and Academic Affairs, Indiana Commission for Higher Education,
Indianapolis, Indiana.
On September 18, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Improving Access and Affordability
through Innovative Partnerships.'' The purpose of the hearing
was to examine the efforts of higher education institutions to
expand access and reduce costs by partnering with local
employers, other colleges, or online course providers.
Testifying before the Subcommittee were Dr. Jeffrey Docking,
President, Adrian College, Adrian, Michigan; Ms. Paula R.
Singer, President and Chief Executive Officer, Laureate Global
Products and Services, Baltimore, Maryland; Dr. Rich Baraniuk,
Professor, Rice University, and Founder, Connexions, Houston,
Texas; and Dr. Charles Lee Isbell, Jr., Professor and Senior
Associate Dean, College of Computing, Georgia Institute of
Technology, Atlanta, Georgia.
On November 13, 2013, the Committee held a hearing in
Washington, D.C., entitled ``Keeping College Within Reach:
Simplifying Federal Student Aid.'' The purpose of the hearing
was to examine the need to streamline, consolidate, and
simplify federal student aid programs. Testifying before the
Committee were Ms. Kristin D. Conklin, Founding Partner, HCM
Strategies, LLC, Washington, D.C.; Dr. Sandy Baum, Research
Professor of Education Policy, George Washington University
Graduate School of Education and Human Development, and Senior
Fellow, Urban Institute, Washington, D.C.; Ms. Jennifer
Mishory, J.D., Deputy Director, Young Invincibles, Washington,
D.C.; and Mr. Jason Delisle, Director, Federal Education Budget
Project, New America Foundation, Washington, D.C.
On December 3, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Strengthening Pell Grants for Future
Generations.'' The purpose of the hearing was to examine Pell
Grant program reform proposals to better target funds to the
neediest students and put the program on a fiscally responsible
and sustainable path. Testifying before the Subcommittee were
Mr. Justin Draeger, President and Chief Executive Officer,
National Association of Student Financial Aid Administrators,
Washington, D.C.; Dr. Jenna Ashley Robinson, Director of
Outreach, John W. Pope Center for Higher Education Policy,
Raleigh, North Carolina; Mr. Michael Dannenberg, Director of
Higher Education and Education Finance Policy, The Education
Trust, Washington, D.C.; and Mr. Richard C. Heath, Director of
Student Financial Services, Anne Arundel Community College,
Arnold, Maryland.
Legislative action--First session
On May 9, 2013, Chairman John Kline (R-MN) and Subcommittee
Chairwoman Virginia Foxx (R-NC) introduced H.R. 1911, the
Smarter Solutions for Students Act. The bill moved all federal
student loans (except Perkins loans) to a market-based interest
rate.
On May 16, 2013, the Committee considered H.R. 1911 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 24 to 13.
The Committee considered and adopted the following
amendment to H.R. 1911:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to make a
technical change to the bill. The amendment was adopted by
voice vote.
The Committee further considered the following amendments
to H.R. 1911, which were not adopted:
Rep. Joe Heck (R-NV) offered an amendment to
allocate a portion of the savings generated under the bill to
Pell Grants. The amendment was withdrawn.
Rep. Joe Heck (R-NV) offered an amendment to
provide the Secretary of Education with authority to reduce the
interest rate on student loans if a borrower makes the first 48
payments on time. The amendment was withdrawn.
Rep. John Tierney (D-MA) offered an amendment to
set the federal student loan interest rates at the same rate
the Federal Reserve charges to banks for two years. The
amendment failed by a vote of 14 to 23.
Rep. Joe Courtney (D-CT) offered an amendment to
extend the 3.4 percent interest rate on subsidized Stafford
loans for two years. The amendment failed by a vote of 15 to
21.
On May 23, 2013, the House of Representatives passed H.R.
1911 by a bipartisan vote of 221 to 198.
On July 24, 2013, the Senate passed a substitute version of
H.R. 1911, the Bipartisan Student Loan Certainty Act, by a
bipartisan vote of 81 to 18. The legislation allowed student
loan interest rates to reset once a year by the market, but
they would be locked into a fixed rate once the loan is
disbursed to the student. Interest rates would be set using the
following formulas:
Undergraduate Stafford loans (subsidized and
unsubsidized): 10-year Treasury Note plus 2.05 percent, capped
at 8.25 percent.
Graduate Stafford loans: 10-year Treasury Note
plus 3.6 percent, capped at 9.5 percent.
PLUS loans (graduate and parent): 10-year Treasury
Note plus 4.6 percent, capped at 10.5 percent.
On July 31, 2013, the House of Representatives agreed to
suspend the rules and agree to the Senate amendment to H.R.
1911 by a bipartisan vote of 392 to 31.
On August 9, 2013, the President of the United States
signed H.R. 1911 into law (P.L. 113-28).
On May 13, 2013, Rep. Luke Messer (R-IN) introduced H.R.
1949, the Improving Postsecondary Education Data for Students
Act. The bill directed the Secretary to convene an Advisory
Committee on Improving Postsecondary Education Data to conduct
a study on the factors students and families want, need, and
already consider when choosing a higher education institution.
On May 16, 2013, the Committee considered H.R. 1949 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 1949:
Rep. Luke Messer (R-IN) offered an amendment in
the nature of a substitute to H.R. 1949 to (1) include
individuals who represent undergraduate and graduate education;
college and career counselors at secondary schools; experts in
data policy, collection, and use; and experts in labor markets
on the list of individuals required to be represented on the
Advisory Committee on Improving Postsecondary Education Data;
(2) ensure individuals on the advisory committee represent
economic, racial, and geographically diverse populations; (3)
require the advisory committee to examine information related
to the sources of financial assistance, including federal
student loans, as part of the required aspects of the study;
(4) require the advisory committee to examine how information
regarding student outcomes should be disaggregated for first-
generation students; and (5) provide other conforming and
technical changes to the bill. The amendment was adopted by
voice vote.
On May 22, 2013, the House of Representatives agreed to
suspend the rules and pass H.R. 1949 by voice vote. The bill
was sent to the Senate and referred to the Senate Committee on
Health, Education, Labor, and Pensions.
On July 10, 2013, Chairman John Kline (R-MN), Subcommittee
Chairwoman Virginia Foxx (R-NC), and Rep. Alcee Hastings (D-FL)
introduced H.R. 2637, the Supporting Academic Freedom through
Regulatory Relief Act. The bill, which included the text of the
Protecting Academic Freedom in Higher Education Act (H.R. 2117)
and the Kline/Foxx/Hastings amendment to H.R. 1 from the 112th
Congress, repealed the credit hour, state authorization, and
gainful employment regulations and amended the statute to
clarify the incentive compensation regulation. Additionally,
the bill prohibited the U.S. Department of Education from
issuing related regulations until after Congress reauthorizes
the Higher Education Act.
On July 24, 2013, the Committee considered H.R. 2637 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 22 to 13.
The Committee considered and adopted the following
amendment to H.R. 2637:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to change a
subsection title in the legislation. The amendment was adopted
by voice vote.
The Committee further considered the following amendment to
H.R. 2637, which was not adopted:
Rep. Tim Bishop (D-NY) offered an amendment to
strike the prohibition on the U.S. Department of Education from
issuing regulations related to state authorization, gainful
employment, and credit hour. The amendment failed by a vote of
13 to 22.
Hearings--Second session
On January 28, 2014, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Sharing Best Practices for Serving Low-
Income and First Generation Students.'' The purpose of the
hearing was to highlight best practices at institutions of
higher education for serving low-income and first generation
students. Testifying before the Subcommittee were Dr. James
Anderson, Chancellor, Fayetteville State University,
Fayetteville, North Carolina; Mrs. Mary Beth Del Balzo, Senior
Executive Vice President and Chief Executive Officer, The
College of Westchester, White Plains, New York; Mr. Josse Alex
Garrido, Graduate Student, University of Texas--Pan American,
Edinburg, Texas; and Rev. Dennis H. Holtschneider, President,
DePaul University, Chicago, Illinois.
On February 27, 2013, the Committee on Education and the
Workforce Subcommittee on Early Childhood, Elementary, and
Secondary Education and Subcommittee on Higher Education and
Workforce Training held a joint hearing in Washington, D.C., on
``Exploring Efforts to Strengthen the Teaching Profession.''
The purpose of the hearing was to discuss the state of teacher
preparation nationwide. Testifying before the subcommittees
were Dr. Deborah A. Gist, Commissioner, Rhode Island Department
of Elementary and Secondary Education, Providence, Rhode
Island; Dr. Marcy Singer-Gabella, Professor of the Practice of
Education, Vanderbilt University, Nashville, Tennessee; Dr.
Heather Peske, Associate Commissioner for Educator Quality,
Massachusetts Department of Elementary and Secondary Education,
Malden, Massachusetts; and Ms. Christina Hall, Co-Founder and
Co-Director, Urban Teacher Center, Baltimore, Maryland.
On March 12, 2014, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Examining the
Mismanagement of the Student Loan Rehabilitation Process.'' The
purpose of the hearing was to examine the U.S. Department of
Education's ability to oversee the processing of rehabilitated
loans issued under the Direct Loan program. Testifying before
the Subcommittee were Ms. Melissa Emrey-Arras, Director of
Education, Workforce, and Income Security Issues, U.S.
Government Accountability Office, Boston, Massachusetts; The
Honorable Kathleen Tighe, Inspector General, U.S. Department of
Education, Washington, D.C.; Mr. James Runcie, Chief Operating
Officer, Federal Student Aid, U.S. Department of Education,
Washington, D.C.; and Ms. Peg Julius, Executive Director of
Enrollment Management, Kirkwood Community College, Cedar
Rapids, Iowa.
On March 20, 2014, the Committee held a hearing in Mesa,
Arizona, entitled ``Reviving Our Economy: Supporting a 21st
Century Workforce.'' The purpose of the hearing was to explore
the role of local higher education institutions in fostering
job creation and growth through innovative partnerships with
the business community and new modes of teaching delivery.
Testifying before the Committee were The Honorable Rick
Heumann, Vice Mayor, City of Chandler, Chandler, Arizona; Ms.
Cathleen Barton, Education Manager, Intel Corporate Affairs,
Southwestern United States, Intel Corporation, Chandler,
Arizona; Mr. Lee D. Lambert, J.D., Chancellor, Pima Community
College, Tucson, Arizona; Dr. William Pepicello, President,
University of Phoenix, Tempe, Arizona; Dr. Michael Crow,
President, Arizona State University, Tempe, Arizona; Dr. Ann
Weaver Hart, President, The University of Arizona, Tucson,
Arizona; Dr. Ernest A. Lara, President, Estrella Mountain
Community College, Avondale, Arizona; and Ms. Christy Farley,
Vice President of Government Affairs and Business Partnerships,
Northern Arizona University, Phoenix, Arizona.
On April 2, 2014, the Committee on Education and the
Workforce held a hearing in Washington, D.C., entitled
``Keeping College Within Reach: Meeting the Needs of
Contemporary Students.'' The purpose of the hearing was to
examine how institutions, states, and other entities assist
contemporary college students in accessing and completing
postsecondary education. Testifying before the Committee were
Dr. George A. Pruitt, President, Thomas Edison State College,
Trenton, New Jersey; Dr. Kevin Gilligan, Chairman and Chief
Executive Officer, Capella Education Company, Minneapolis,
Minnesota; Mr. David Moldoff, Chief Executive Officer and
Founder, AcademyOne, Inc., West Chester, Pennsylvania; Dr.
Joann A. Boughman, Senior Vice Chancellor for Academic Affairs,
University System of Maryland, Adelphi, Maryland; Mr. Stan
Jones, President, Complete College America, Indianapolis,
Indiana; and Dr. Brooks A. Keel, President, Georgia Southern
University, Statesboro, Georgia.
Legislative action--Second session
On September 19, 2013, Rep. Matt Salmon (R-AZ), Rep. Susan
Brooks (R-IN), and Rep. Jared Polis (D-CO) introduced H.R.
3136, the Advancing Competency-Based Education Demonstration
Project Act of 2013. The bill directed the Secretary to select
institutions or consortia of institutions for voluntary
participation in competency-based education demonstration
projects. The demonstration projects would have provided
participating entities with the ability to offer competency-
based education programs that do not meet certain statutory and
regulatory requirements which would otherwise prevent them from
participating in federal student aid programs.
On July 10, 2014, the Committee considered H.R. 3136 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 3136:
Rep. Matt Salmon (R-AZ) and Rep. Jared Polis (D-
CO) offered an amendment in the nature of a substitute to add
certain requirements to the applications to participate in a
competency-based education project; allow eligible entities to
submit amendments to their previously-approved applications;
set requirements for the entities the Secretary must choose to
participate in the programs; require institutions to provide
student information to the director of the Institute of
Education Sciences (IES); require the Director of IES to
annually evaluate each project and provide a report with
specified information to the authorizing committees; authorize
funds to be available from the amount appropriated for salaries
and expenses of the U.S. Department of Education, and make
conforming and technical changes to the introduced bill. The
amendment was adopted by voice vote.
The Committee further considered the following amendment to
H.R. 3136, which was not adopted:
Rep. Tierney (D-MA) offered an amendment that
would have allowed students with federal student loans and
private student loans issued prior to 2013 to refinance those
loans into new federal loans at the interest rate set for the
2013-2014 academic year. The amendment was ruled non-germane.
Ranking Member George Miller (D-CA) appealed the ruling of the
chair. Rep. Glenn Thompson (R-PA) offered a motion to table the
appeal of the ruling of the chair, which was adopted by a vote
of 22 to 16.
On July 23, 2014, the House of Representatives considered
H.R. 3136 and passed it, as amended, by a recorded vote of 414-
0 on July 23, 2014. The bill was sent to the Senate and was
referred to the Senate Committee on Health, Education, Labor,
and Pensions.
On June 26, 2014, Subcommittee Chairwoman Virginia Foxx (R-
NC) and Rep. Luke Messer (R-IN) introduced H.R. 4983, the
Strengthening Transparency in Higher Education Act. The bill
simplified and streamlined the information made publicly
available by the Secretary regarding institutions of higher
education.
On July 10, 2014, the Committee considered H.R. 4983 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 4983:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute that
required additional information on the College Dashboard;
required the Secretary to conduct consumer testing in
consultation with appropriate federal departments and agencies;
ensured consumer testing addresses whether the College
Dashboard provides useful and relevant information to students
and families; required the Secretary to submit to the
authorizing committees recommendations based on the results of
consumer testing; set new minimum requirements for net price
calculators, required funding to come from funds already
appropriated to maintain the College Navigator; and made other
conforming and technical changes. The amendment was adopted by
voice vote.
The Committee further considered the following amendment to
H.R. 4983, which was not adopted:
Ranking Member George Miller (D-CA) offered an
amendment that required the Commissioner of Education
Statistics to establish a formula for determining the
percentage of student borrowers who have completed their course
of study and who are in repayment or in an authorized deferment
period at three, five and 10 years after completion of a
program of study. The amendment failed by a vote of 13 to 21.
On July 23, 2014, the House of Representatives considered
H.R. 4983 under suspension of the rules. The bill was agreed to
by voice vote, sent to the Senate, and referred to the Senate
Committee on Health, Education, Labor, and Pensions.
On June 26, 2014, Rep. Brett Guthrie (R-KY) and Rep.
Richard Hudson (R-NC) introduced H.R. 4984, the Empowering
Students through Enhanced Financial Counseling Act. The bill
amended the loan counseling requirements under the Higher
Education Act and required counseling for Federal Pell Grant
recipients.
On July 10, 2014, the Committee considered H.R. 4984 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 4984:
Reps. Brett Guthrie (R-KY) and Suzanne Bonamici
(D-OR) offered an amendment in the nature of a substitute that
removed the requirement that annual counseling for Pell Grant
recipients be tied to disbursement of the grant; required
additional information be disclosed to borrowers during annual
counseling and exit counseling sessions; required institutions
to provide annual counseling to borrowers receiving Parent PLUS
loans; required any funds used to carry out the act to come
from funds already appropriated to maintain the Financial
Awareness Counseling Tool; and made conforming and technical
changes. The amendment was adopted by voice vote.
The Committee further considered the following amendment to
H.R. 4984, which was not adopted:
Rep. Susan Davis (D-CA) offered an amendment to
modify the rule requiring for-profit colleges to receive at
least 10 percent of their revenue from sources other than the
U.S. Department of Education to remain eligible for federal
student aid to include all federal aid, including veterans'
educational benefits and some Workforce Investment Act funds,
in the 90 percent portion of the calculation and only private
funds in the 10 percent portion of the calculation. The
amendment was ruled non-germane. Ranking Member George Miller
(D-CA) appealed the ruling of the chair. Rep. Glenn Thompson
(R-PA) offered a motion to table the appeal of the ruling of
the chair, which was adopted by a vote of 20 to 13.
On July 24, 2014, the House of Representatives considered
H.R. 4984 and passed it, as amended, by a vote of 405-11. The
bill was sent to the Senate and referred to the Senate
Committee on Health, Education, Labor, and Pensions.
114TH CONGRESS
Hearings--First session
On February 4, 2015, the Committee held a hearing in
Washington, D.C., on ``Expanding Opportunity in America's
Schools and Workplaces.'' The purpose of the hearing was to
allow Committee members to learn about efforts made by state
leaders to strengthen education, to make sure those who
graduate are prepared to pursue a postsecondary education and
compete in the workforce, and promote efforts to spur job
creation. Testifying before the Committee were Dr. Michael
Amiridis, Provost and Executive Vice President for Academic
Affairs, University of South Carolina, Columbia, South
Carolina; Mr. Drew Greenblatt, President and CEO, Marlin Steel
Wire Products, Baltimore, Maryland; Dr. Lawrence Mishel, Ph.D.,
President, Economic Policy Institute, Washington, D.C.; and The
Honorable Mike Pence, Governor, State of Indiana, Indianapolis,
Indiana.
On March 17, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Strengthening
America's Higher Education System.'' The purpose of the hearing
was to explore policy proposals that align with the Committee's
four pillars for reauthorization of the HEA: (1) empowering
students and families to make informed decisions; (2)
simplifying and improving student aid; (3) promoting
innovation, access, and completion; and (4) ensuring strong
accountability and a limited federal role. Testifying before
the Subcommittee were Mr. Willis Goldsmith, Partner, Jones Day,
New York, New York who testified on behalf of the U.S. Chamber
of Commerce; Mr. Stan Soloway, President and CEO, Professional
Services Council, Arlington, Virginia; Ms. Angela Styles,
Partner, Crowell & Moring LLP, Washington, D.C.; and Ms. Karla
Walter, Associate Director, American Worker Project, Center for
American Progress, Washington, D.C.
On April 30, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Improving
College Access and Completion for Low-Income and First-
Generation Students.'' The purpose of the hearing was to
explore policy proposals and best practices to strengthen
programs to help disadvantaged students access and complete
higher education. Testifying before the Subcommittee were Dr.
Laura Perna, James S. Riepe Professor, Executive Director,
Alliance for Higher Education and Democracy, University of
Pennsylvania, Philadelphia, Pennsylvania; Dr. Charles J.
Alexander, Associate Vice Provost for Student Diversity,
Director, Academic Advancement Program, Associate Adjunct
Professor, University of California, Los Angeles, California;
Dr. Michelle Asha Cooper, President, Institute for Higher
Education Policy, Washington, D.C.; and Dr. Joe D. May,
Chancellor, Dallas County Community College District, Dallas,
Texas.
On September 10, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Preventing
and Responding to Sexual Assault on College Campuses.'' The
purpose of the hearing was to explore policy proposals and best
practices to help institutions address and respond to campus
sexual assault and violence. Testifying before the Subcommittee
were Ms. Dana Scaduto, General Counsel, Dickinson College,
Carlisle, Pennsylvania; Dr. Penny Rue, Vice President for
Campus Life, Wake Forest University, Winston-Salem, North
Carolina; Ms. Lisa M. Maatz, M.A., Vice President for
Government Relations, American Association of University Women,
Washington, D.C.; and Mr. Joseph Cohn, Legislative and Policy
Director, Foundation for Individual Rights in Education,
Philadelphia, Pennsylvania.
On November 18, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training, together with the House Committee on Oversight and
Government Reform Subcommittee on Government Operations held a
hearing in Washington, D.C., on ``Federal Student Aid:
Performance-Based Organization Review.'' The purpose of the
hearing was to review the Office of Federal Student Aid's (FSA)
responsibilities as a Performance-Based Organization (PBO),
evaluate the PBO's performance, and identify possible areas of
reform. Testifying before the subcommittees were Mr. James
Runcie, Chief Operating Officer, U.S. Department of Education,
Washington, D.C.; Ms. Melissa Emrey-Arras, Director, Education
Workforce, and Income Security, U.S. Government Accountability
Office, Washington, D.C.; The Honorable Kathleen Tighe,
Inspector General, U.S. Department of Education, Washington,
D.C.; Mr. Ben Miller, Senior Director, Postsecondary Education,
Center for American Progress, Washington, D.C.; and Mr. Justin
Draeger, President, National Association of Student Financial
Aid Administrators, Washington, D.C.
Legislative action--First session
On July 23, 2015, Higher Education and Workforce Training
Subcommittee Chairwoman Virginia Foxx along with Chairman John
Kline (R-MN), Ranking Member Robert C. Scott (D-VA), and Reps.
Luke Messer (R-IN), Gregorio Sablan (D-MP), Tim Walberg (R-MI),
Joe Heck (R-NV), Buddy Carter (R-GA), Elise Stefanik (R-NY),
Susan Davis (D-CA), Raul Grijalva (D-AZ), and Mark DeSaulnier
(D-CA) introduced H.R. 3178, the Strengthening Transparency in
Higher Education Act. The bill ensures straightforward and
useful information is easily accessible to students and parents
and improves coordination between federal agencies to publish
information about colleges and universities.
On July 23, 2015, Rep. Brett Guthrie (R-KY) along with
Chairman John Kline (R-MN), Ranking Member Robert C. Scott (D-
VA), and Reps. Rick Allen (R-GA), Suzanne Bonamici (D-OR),
Duncan Hunter (R-CA), Tim Walberg (R-MI), Joe Heck (R-NV), Luke
Messer (R-IN), Buddy Carter (R-GA), Elise Stefanik (R-NY),
Susan Davis (D-CA), Raul Grijalva (D-AZ), Gregorio Sablan (D-
MP), Mark Pocan (D-WI), Mark Takano (D-CA), Katherine Clark (D-
MA), Mark DeSaulnier (D-CA), and Richard Hudson (R-NC)
introduced H.R. 3179, the Empowering Students Through Enhanced
Financial Counseling Act. The bill promotes financial literacy
through enhanced counseling for all recipients of federal
financial aid.
On September 24, 2015, Reps. Mike Bishop (R-MI) and Mark
Pocan (D-WI) introduced H.R. 3594, the Higher Education
Extension Act of 2015. The bill extends the authorization of
the National Advisory Committee on Institutional Quality and
Integrity and the authority of institutions of higher education
to make loans to new borrowers under the federal Perkins loan
program through September 30, 2016.
On September 28, 2015, the House of Representatives passed
H.R. 3594 by a voice vote. The bill was sent to the Senate and
referred to the Senate Committee on Health, Education, Labor,
and Pensions. The Senate amended the bill to extend the
authorization of the federal Perkins loan program to September
30, 2017. The amendment was adopted by unanimous consent, and
the underlying legislation was subsequently passed in the
Senate on December 16, 2015, by voice vote.
On December 17, 2015, the House agreed to the Senate
amendment by unanimous consent. The Higher Education Extension
Act of 2015 was signed into law by the President on December
18, 2015.
Legislative action--Second session
On June 22, 2016, the Committee on Education and the
Workforce considered H.R. 3178 in legislative session and
reported it favorably, as amended, to the House of
Representatives by voice vote. The Committee considered and
adopted the following amendment to H.R. 3178:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to make
conforming and technical changes. The amendment was adopted by
voice vote.
On June 22, 2016, the Committee considered H.R. 3179 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 3179:
Rep. Brett Guthrie (R-KY) offered an amendment in
the nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps.
David ``Phil'' Roe (R-TN), Jared Polis (D-CO), and Mark Pocan
(D-WI) introduced H.R. 5528, the Simplifying the Application
for Student Aid Act. The bill ensures continued allowance for
earlier notification of federal student aid, leverages
technology to make the application for federal student aid more
accessible and easier to fill out, and provides more time for
aid administrators to verify and package student aid.
On June 22, 2016, the Committee considered H.R. 5528 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5528:
Rep. Joe Heck (R-NV) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps.
Ruben Hinojosa (D-TX) and Raul Ruiz (D-CA) introduced H.R.
5529, the Accessing Higher Education Opportunities Act. The
bill expands the authorized uses of funds for Hispanic-Serving
Institutions (HSIs) so they may promote dual enrollment
opportunities and encourage Hispanic students to pursue
doctoral degree programs in the healthcare industry.
On June 22, 2016, the Committee considered H.R. 5529 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5529:
Rep. Joe Heck (R-NV) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Reps. Alma Adams (D-NC) and Bradley Byrne
(R-AL) introduced H.R. 5530, the HBCU Capital Financing
Improvement Act. The bill improves the program by requiring the
advisory board to send an annual report to Congress regarding
the status of the Historically Black College and University
(HBCU) Capital Financing Program. Additionally, the bill
renames the escrow account to ``bond insurance fund.'' Lastly,
this bill allows for financial counseling to potential eligible
HBCUs to assist in their preparation to qualify, apply for, and
maintain a capital improvement loan.
On June 22, 2016, the Committee considered H.R. 5530 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5530:
Rep. Alma Adams (D-NC) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
Summary
The Empowering Students through Enhanced Financial
Counseling Act creates a roadmap to repayment for borrowers by
improving the timing and frequency of loan counseling and
allows counseling to be tailored to a borrower's individual
situation. The legislation ensures both student and parent
borrowers have the most current information by requiring annual
counseling before they take out loans.
The legislation requires annual counseling for student
borrowers to include recommendations to exhaust available
grant, work-study, and scholarship assistance before taking out
loans, as well as a recommendation to exhaust federal student
loan options before taking out a private loan. The counseling
must also include a notice informing borrowers they are not
required to accept the full amount of the loan they are offered
and information on any outstanding federal loan balance the
borrower may have. Based on that outstanding balance and any
new loans being taken out, the information must include
anticipated monthly payments under standard and income-based
repayment plans.
The legislation requires counseling for borrowers of Parent
PLUS loans on behalf of dependent students. Similar to
counseling for student borrowers, the counseling will provide
parent borrowers individualized information on their
outstanding loan balance and on anticipated monthly payments.
The counseling will also include debt management strategies,
information on the National Student Loan Data System, and
contact information for the servicer of each loan.
Additionally, the legislation bolsters exit counseling for
students. Exit counseling under the bill will include
information on the borrower's outstanding loan balance,
anticipated monthly payments under the standard and income-
based repayment plans, the grace period preceding repayment, as
well as contact information for those organizations servicing
the borrower's loans. This information will empower borrowers
to make smart financial decisions as they leave school and
begin to repay their college loan commitments.
The legislation requires colleges annually to provide
important counseling and disclosures to Pell Grant recipients.
A Pell Grant recipient will receive counseling on the terms and
conditions of his or her grant; the approved educational
expenses to which the grant could be applied; the maximum
length of time a student is eligible to receive Pell Grants;
the amount of assistance a student is eligible to receive; a
notice that Pell Grant eligibility is not reset when a student
transfers institutions; conditions under which a student may be
required to repay a Pell Grant; and how a student may seek
additional assistance due to a change in his or her financial
circumstances. All aid recipients will also receive state-
specific information on the average income and employment
status of individuals based on various levels of educational
attainment, and Pell Grant recipients and student borrowers
will receive an introduction to the Financial Literacy and
Education Commission's financial management resources.
The legislation requires the Secretary to maintain a
consumer-tested, online counseling tool institutions could use
to provide required counseling to their students. Institutions
could choose to use this tool to provide their students
financial counseling or they could offer institution-created
counseling directly to their students, either during an in-
person session or through an online tool created for the
institution.
Finally, the legislation directs the Secretary, acting
through the Director of IES, to conduct a longitudinal study of
the impact and effectiveness of the new annual counseling,
updated exit counseling, and online counseling tool, as well as
counseling provided through other means determined by the
Secretary. The evaluation will also explore how counseling
affects outcomes for students of different races, ethnicities,
genders, and income levels.
Committee Views
Introduction
With tuition increasing and economic pressures faced by
graduates mounting, responsibly financing a higher education
has never been more critical. However, many students and
parents are unprepared to navigate the complex maze of loans
and grants offered by the federal government, states, the
private sector, and institutions of higher education. Further,
upon graduation, many borrowers also struggle to manage the
repayment of the loans used to finance their education, leading
to significant financial hardship and greater risk for
taxpayers. Student financial literacy is vital to reversing
this trend, yet current efforts are failing to equip students
and parents with the crucial information they need to make wise
financial decisions.
Many students never receive meaningful financial literacy
assistance as they review options for paying for college. The
Higher Education Act currently requires counseling for only
those students receiving federal student loans, while parents
who take out loans on behalf of their student as well as
students who receive only a Pell Grant do not receive any
counseling. More robust and timely financial literacy support
must be made available.
Enhancing loan counseling for students
To help students make smart decisions about financing their
higher education, Reps. Brett Guthrie (R-KY), Rick Allen (R-
GA), and Suzanne Bonamici (D-OR) introduced H.R. 3179, the
Empowering Students through Enhanced Financial Counseling Act.
H.R. 3179 improves the timing and frequency of loan counseling
and ensures students have the most current information
available to them. Under current law, students who receive
federal student loans are required to complete one-time
entrance counseling only regarding the terms and conditions of
their loans. This counseling is only required to occur prior to
disbursement of the loan, so many students receive it after
they have already decided how much to borrow. During a November
13, 2013, hearing entitled ``Keeping College Within Reach:
Simplifying Federal Student Aid,'' the Committee explored
opportunities to streamline the federal aid system for
students. At the hearing, Ms. Jennifer Mishory, Deputy Director
of Young Invincibles, highlighted the need for enhanced and
more frequent financial aid counseling:
In a recent Young Invincibles survey, 40 percent of
high-debt borrower respondents reported that they did
not receive federally mandated loan counseling. It is
perhaps unlikely that so many schools are out of
compliance, but that statistic warns us that many young
people benefit so little from loan counseling that they
do not remember receiving it--or did not consider what
they received to constitute counseling.
With student loan default rates on the rise, the Committee
believes students should be given a complete picture of not
only their rights and obligation with respect to their federal
loans, but also the impact taking out loans may have on their
financial futures each year--before they accept a new round of
student loans. H.R. 3179 requires loan counseling to occur
annually before a student accepts a federal student loan for
the year. The legislation also requires counseling be
personalized to the individual borrower's situation, rather
than just providing general information applicable to a range
of borrowers. In the course of just one school year, Indiana
University was able to reduce undergraduate Stafford loan
disbursements by 11 percent, or $31 million, by telling
students annually what their monthly payment would be after
graduation before they took out loans for the next year. This
was more than five times the decrease in outlays at four-year
public institutions nationally.\1\ Data also show borrower
defaults concentrate around the millions of students with
smaller debts who drop out without a degree. In fact, 34
percent of those borrowing under $5,000 for college eventually
end up in default.\2\ Annual counseling that includes
individualized anticipated monthly payments under income-based
repayment can help student borrowers who do not complete
college avoid these harmful defaults. The Committee believes
better information about loans and the post-college obligations
and responsibilities that come with those loans will help
students make wise borrowing decisions.
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\1\http://www.bloomberg.com/news/2014-07-03/here-s-how-indiana-
university-students-borrowed-31-million-less.html.
\2\http://www.nytimes.com/2015/09/01/upshot/why-students-with-
smallest-debts-need-the-greatest-help.html.
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During a March 17, 2015, Committee on Education and
Workforce Subcommittee on Higher Education and Workforce
Training hearing entitled ``Strengthening America's Higher
Education System,'' Michael J. Bennett, Associate Vice
President of Financial Assistance Services at St. Petersburg
College in Florida, highlighted the complexity of the federal
student loan system, the confusion students often face, and the
need for enhanced loan counseling:
One online entrance and exit counseling session is
not enough for some students to fully understand the
realities of excessive debt and over-borrowing. . . .
We also must embrace at the institutional level the
importance of financial literacy. And lastly and most
importantly, these initiatives and simplification
efforts must be paired with the availability of
personalized, comprehensive financial education
services to help students.
About 61 percent of students who earned bachelor's degrees
in the 2013-2014 academic year from the public and private
nonprofit four-year schools at which they began their studies
graduated with debt, and that debt averaged $26,900--a 17
percent increase since the 2003-2004 academic year.\3\ In
addition, during the 2011-2012 academic year, roughly half of
private loan borrowers did not exhaust federal Stafford loan
options before taking out private student loans.\4\ The
Committee is concerned about the growing amount of student loan
debt in the country and wants to ensure students are aware of
the terms and conditions of their student loans and the
differences between options that may be available to them.
Annual counseling will now include recommendations for students
to exhaust available grant, work-study, and scholarship
assistance before taking out loans, a recommendation to exhaust
federal student loan options before taking out a private loan,
and an explanation of the rights and obligations associated
with a private loan. The counseling will also include a notice
that students are not required to accept the full amount of the
federal student loan offered and information on any outstanding
federal student loan balance the borrower may have.
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\3\3http://trends.collegeboard.org/sites/default/files/trends-
student-aid-web-final-508-2.pdf. p. 4.
\4\http://ticas.org/sites/default/files/pub_files/
private_loan_facts_trends.pdf.
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The Committee believes information should be available to
help students make the most informed decisions about ways to
finance their postsecondary education and encourages the
Secretary of Education to make annual percentage rates of
federal student loans under part D of the Higher Education Act
publically available to current and prospective borrowers. The
Committee feels annual percentage rates will provide borrowers
with accurate rates for their federal student loans,
particularly as it relates to grad and parent PLUS loans, so
they will not be surprised by the fees associated with them.
The Committee also believes there is other important
information apart from rates that students should both be aware
of and have access to when making these decisions. Federal
loans for example, offer income-based repayment plans, loan
forgiveness options, eligibility for deferment or forbearance,
fixed interest rates, eligibility for a direct consolidation
loan, and most do not require a credit check. A system designed
to help students make informed choices should include these
benefits as well as annual percentage rates to help borrowers
determine which loan is best for them.
H.R. 3179 also requires more robust exit counseling. Under
current law, students who receive federal student loans must
complete exit counseling before they conclude their course of
study. This counseling must include information on available
repayment plans, debt management strategies, and loan
forgiveness options; however, this counseling is very general
and does not provide any information on the borrower's specific
situation. Under H.R. 3179, exit counseling includes a
statement of the borrower's outstanding loan balance;
anticipated monthly payments based on the borrower's actual
balance under both the standard repayment plan and income-based
repayment plan, based on the borrower's anticipated salary;
information on the grace period preceding repayment; and
contact information for those organizations servicing the
borrower's loans. The Committee believes this additional
information empowers borrowers to make smarter financial
decisions as they leave school and begin to repay their college
loan commitments.
Parent PLUS borrowers
Parents taking out a federal loan to help their children
achieve the dream of a postsecondary education comprised over
11 percent of federal student loan volume disbursed last
year.\5\ Parent borrowers are subject to the majority of the
same terms, conditions, and responsibilities as student
borrowers, but they can borrow up to the cost of attendance--
much more than the typical student borrower. However, parent
borrowers currently receive very little information about their
loan obligations or assistance in planning for repayment. The
Committee believes providing to parents the same information
and disclosures students receive prior to taking out a loan is
crucial for encouraging smart borrowing and on-time repayment.
The Empowering Students through Enhanced Financial Counseling
Act requires annual counseling for all borrowers of a Parent
PLUS loan prior to, or in conjunction with, the acceptance of
the Parent PLUS loan.
---------------------------------------------------------------------------
\5\http://trends.collegeboard.org/sites/default/files/trends-
student-aid-web-final-508-2.pdf.
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In 2014, the U.S. Department of Education released three-
year cohort default rates for borrowers of Parent PLUS loans
that covered a multi-year period from FY 2006-FY 2010. The most
current cohort default rate for borrowers who had a student at
any type of school was 4.1 percent, up from 1.8 percent in
2006.\6\ To stop this upward trend, the Committee believes
these parent borrowers should be provided with counseling each
year they wish to take out an additional loan. Similar to
counseling for student borrowers, the counseling will provide
parent borrowers individualized information on their
outstanding loan balance and anticipated monthly payments based
on the actual balance. The counseling will also include debt
management strategies, information on the National Student Loan
Data System, and contact information for the servicer of each
of their loans.
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\6\http://www2.ed.gov/policy/highered/reg/hearulemaking/2012/
programintegrity.html.
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Better information for Pell Grant recipients
The Empowering Students through Enhanced Financial
Counseling Act requires all recipients of a Pell Grant to
receive annual disclosures on the terms and conditions of their
grants. The disclosures will include information on the
approved educational expenses to which the grants could be
applied, the conditions under which a student may be required
to repay Pell Grants, and how students may seek additional
assistance due to changes in their financial circumstances.
Additionally, the disclosures will provide students with
information on the maximum number of semesters, or the
equivalent, for which they may be eligible to receive Pell
Grants, as well as a statement of the actual amount of time
remaining for which they personally may be eligible, and a
notice that Pell Grant eligibility does not reset when a
student transfers schools. The information will ensure students
are aware of their time-limited eligibility to receive Pell
Grants and would encourage them to complete their academic
program prior to exhausting their eligibility for the program.
The Committee recognizes the important role the Pell Grant
program plays in helping low-income students access and
complete a postsecondary education and does not intend for this
counseling to be a hurdle for students to receive their grants.
H.R. 3179 ensures those students have the knowledge needed to
use their Pell Grant eligibility in the most effective way
possible.
Developing a consumer-tested online tool
A recent study on federally mandated student loan
counseling that examined actual borrowers going through the
federal government's online counseling tool found borrowers
thought the tool to be too text heavy and wanted more
personalized information.\7\ The Committee appreciates the work
the U.S. Department of Education has done in creating the
Financial Awareness Counseling tool but believes more can be
done to make the tool more relevant and meaningful for
borrowers. The Empowering Students through Enhanced Financial
Counseling Act requires the Secretary to maintain an online
counseling tool institutions can use to provide required
counseling to their students. The Committee expects the U.S.
Department of Education to build upon the existing tool to meet
this requirement of the legislation. Additionally, H.R. 3179
requires the Department to conduct consumer testing of the
online financial aid counseling tool, in consultation with
other relevant federal agencies, to ensure the information
provided through the tool is presented in the most user-
friendly manner possible to better assist students and parents
in understanding their rights and obligations with respect to
borrowing student loans or receiving Pell Grants.
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\7\http://chronicle.com/blogs/headcount/new-research-points-to-
gaps-in-student-loan-counseling/
38665?cid=at&utm_source=at&utm_medium=en.
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Recognizing some institutions already provide their
students with robust loan counseling, H.R. 3179 allows
institutions to choose the manner in which they provide
counseling to their students and parents. Institutions have the
option to provide financial counseling directly, either during
an in-person session or through an online tool created for or
by the institution, or an institution can elect to have the
students use the consumer-tested online tool administered by
the Department. If an institution opts to provide the
counseling themselves, the Committee notes an institution will
meet the requirements under H.R. 3179 by contracting with
entities that have experience in offering this type of
counseling to students, such as guaranty agencies. If an
institution chooses to use the U.S. Department of Education's
online tool, the Department will then be responsible for
keeping a record of which individuals have completed counseling
and notifying borrowers of the obligation to complete the
counseling.
Ensuring counseling is effective
The Empowering Students through Enhanced Financial
Counseling Act directs the Secretary, acting through the
Director of IES, to conduct a rigorous longitudinal study of
the impact and effectiveness of loan counseling on student
persistence, program completion, successful entry into
repayment, and cumulative borrowing, among other factors. The
evaluation will explore how counseling affects outcomes for
students of different races, ethnicities, genders, and income
levels. This study is intended to help inform Congress, the
Secretary, and institutions of whether further policy changes
need to be made to promote successful outcomes.
Conclusion
The current financial counseling policies are inadequate
for providing student and parent borrowers with the information
they need to plan for college costs and responsibly manage
their loan repayment. Currently, counseling occurs too late to
guide students' decisions for smart borrowing and too
infrequently to make a lasting impression about the
implications of student debt. The Empowering Students through
Enhanced Financial Counseling Act provides students and parents
the tools and information they need to borrow and repay their
student loans in a responsible way.
Section-by-Section Analysis
Section 1. Short title
States the short title is the Empowering Students through
Enhanced Financial Counseling Act.
Section 2. Annual counseling
Amends section 485(l) of the Higher Education Act to
require institutions to ensure each individual who receives a
federal student loan also receives interactive annual
counseling on the terms, conditions, and responsibilities of
such loan. Likewise, Pell Grant recipients will receive annual
counseling on the terms, conditions, and responsibilities of
their grants.
Requires institutions to ensure, as a part of carrying out
the counseling requirements, all federal student loan borrowers
annually affirmatively accept new loans prior to the
disbursement of those loans.
Section 3. Exit counseling
Amends section 485(b) of the Higher Education Act to ensure
students who receive federal student loans receive
individualized, interactive exit counseling regarding their
loan portfolios and repayment options.
Section 4. Online counseling tools
Requires the Secretary to maintain consumer-tested online
counseling tools that provide the required annual and exit
counseling.
Section 5. Longitudinal study on the effectiveness of student loan
counseling
Requires the Secretary, acting through the Director of IES,
to begin conducting a rigorous, longitudinal study of the
impact and effectiveness of the counseling under section
485(b), (l), and (n), as well as counseling provided through
other means determined by the Secretary. Requires the Secretary
to report findings to the appropriate committees of Congress no
later than 18 months after the study's commencement and
annually thereafter.
Section 6. Availability of funds
Reserves $2 million from funding authorized to be
appropriated for maintaining the U.S. Department of Education's
Financial Awareness Counseling tool to be available to carry
out this legislation and specifies no additional funds are
authorized to be appropriated by this legislation.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. H.R. 3179, the Empowering Students through Enhanced
Financial Counseling Act, promotes financial literacy through
enhanced counseling for recipients of federal financial aid.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. This issue is addressed in the CBO letter.
Earmark Statement
H.R. 3179 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of House Rule XXI.
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of House Rule XIII, the
goals of H.R. 3179 are to promote financial literacy through
enhanced counseling for recipients of federal financial aid.
Duplication of Federal Programs
No provision of H.R. 3179 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The committee estimates that enacting H.R. 3179 does not
specifically direct the completion of any specific rule makings
within the meaning of 5 U.S.C. 551.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the committee's oversight findings and recommendations are
reflected in the body of this report.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the committee has received
the following estimate for H.R. 3179 from the Director of the
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 5, 2016.
Hon. John Kline,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3179, the
Empowering Students Through Enhanced Financial Counseling Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Justin
Humphrey.
Sincerely,
Keith Hall.
Enclosure.
H.R. 3179--Empowering Students Through Enhanced Financial Counseling
Act
H.R. 3179 would reserve $2 million from funding for the
Department of Education to change the requirements for
counseling students who participate in the federal student aid
programs, such as federal student loans and Pell grants, and to
study the effectiveness of that counseling.
CBO estimates that implementing H.R. 3179 would cost $2
million for the department's administrative expenses over the
2017-2021 period; such spending would be subject to the
availability of appropriated funds.
Enacting the bill would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 3179 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 3179 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Justin Humphrey.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 3179.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
* * * * * * *
Part G--General Provisions Relating to Student Assistance Programs
* * * * * * *
SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--(1) Each eligible
institution participating in any program under this title shall
carry out information dissemination activities for prospective
and enrolled students (including those attending or planning to
attend less than full time) regarding the institution and all
financial assistance under this title. The information required
by this section shall be produced and be made readily available
upon request, through appropriate publications, mailings, and
electronic media, to an enrolled student and to any prospective
student. Each eligible institution shall, on an annual basis,
provide to all enrolled students a list of the information that
is required to be provided by institutions to students by this
section and section 444 of the General Education Provisions Act
(commonly known as the ``Family Educational Rights and Privacy
Act of 1974''), together with a statement of the procedures
required to obtain such information. The information required
by this section shall accurately describe--
(A) the student financial assistance programs
available to students who enroll at such institution;
(B) the methods by which such assistance is
distributed among student recipients who enroll at such
institution;
(C) any means, including forms, by which application
for student financial assistance is made and
requirements for accurately preparing such application;
(D) the rights and responsibilities of students
receiving financial assistance under this title;
(E) the cost of attending the institution, including
(i) tuition and fees, (ii) books and supplies, (iii)
estimates of typical student room and board costs or
typical commuting costs, and (iv) any additional cost
of the program in which the student is enrolled or
expresses a specific interest;
(F) a statement of--
(i) the requirements of any refund policy
with which the institution is required to
comply;
(ii) the requirements under section 484B for
the return of grant or loan assistance provided
under this title; and
(iii) the requirements for officially
withdrawing from the institution;
(G) the academic program of the institution,
including (i) the current degree programs and other
educational and training programs, (ii) the
instructional, laboratory, and other physical plant
facilities which relate to the academic program, (iii)
the faculty and other instructional personnel, and (iv)
any plans by the institution for improving the academic
program of the institution;
(H) each person designated under subsection (c) of
this section, and the methods by which and locations in
which any person so designated may be contacted by
students and prospective students who are seeking
information required by this subsection;
(I) special facilities and services available to
students with disabilities;
(J) the names of associations, agencies, or
governmental bodies which accredit, approve, or license
the institution and its programs, and the procedures
under which any current or prospective student may
obtain or review upon request a copy of the documents
describing the institution's accreditation, approval,
or licensing;
(K) the standards which the student must maintain in
order to be considered to be making satisfactory
progress, pursuant to section 484(a)(2);
(L) the completion or graduation rate of certificate-
or degree-seeking, full-time, undergraduate students
entering such institutions;
(M) the terms and conditions of the loans
that students receive under parts B, D, and E;
(N) that enrollment in a program of study abroad
approved for credit by the home institution may be
considered enrollment in the home institution for
purposes of applying for Federal student financial
assistance;
(O) the campus crime report prepared by the
institution pursuant to subsection (f), including all
required reporting categories;
(P) institutional policies and sanctions
related to copyright infringement, including--
(i) an annual disclosure that
explicitly informs students that
unauthorized distribution of
copyrighted material, including
unauthorized peer-to-peer file sharing,
may subject the students to civil and
criminal liabilities;
(ii) a summary of the penalties for
violation of Federal copyright laws;
and
(iii) a description of the
institution's policies with respect to
unauthorized peer-to-peer file sharing,
including disciplinary actions that are
taken against students who engage in
unauthorized distribution of
copyrighted materials using the
institution's information technology
system;
(Q) student body diversity at the
institution, including information on the
percentage of enrolled, full-time students
who--
(i) are male;
(ii) are female;
(iii) receive a Federal Pell Grant;
and
(iv) are a self-identified member of
a major racial or ethnic group;
(R) the placement in employment of, and types
of employment obtained by, graduates of the
institution's degree or certificate programs,
gathered from such sources as alumni surveys,
student satisfaction surveys, the National
Survey of Student Engagement, the Community
College Survey of Student Engagement, State
data systems, or other relevant sources;
(S) the types of graduate and professional
education in which graduates of the
institution's four-year degree programs
enrolled, gathered from such sources as alumni
surveys, student satisfaction surveys, the
National Survey of Student Engagement, State
data systems, or other relevant sources;
(T) the fire safety report prepared by the
institution pursuant to subsection (i);
(U) the retention rate of certificate- or
degree-seeking, first-time, full-time,
undergraduate students entering such
institution; and
(V) institutional policies regarding
vaccinations.
(2) For the purpose of this section, the term ``prospective
student'' means any individual who has contacted an eligible
institution requesting information concerning admission to that
institution.
(3) In calculating the completion or graduation rate under
subparagraph (L) of paragraph (1) of this subsection or under
subsection (e), a student shall be counted as a completion or
graduation if, within 150 percent of the normal time for
completion of or graduation from the program, the student has
completed or graduated from the program, or enrolled in any
program of an eligible institution for which the prior program
provides substantial preparation. The information required to
be disclosed under such subparagraph--
(A) shall be made available by July 1 each year to
enrolled students and prospective students prior to the
students enrolling or entering into any financial
obligation; and
(B) shall cover the one-year period ending on August
31 of the preceding year.
(4) For purposes of this section, institutions may--
(A) exclude from the information disclosed in
accordance with subparagraph (L) of paragraph
(1) the completion or graduation rates of
students who leave school to serve in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government; or
(B) in cases where the students described in
subparagraph (A) represent 20 percent or more
of the certificate- or degree-seeking, full-
time, undergraduate students at the
institution, recalculate the completion or
graduation rates of such students by excluding
from the calculation described in paragraph (3)
the time period during which such students were
not enrolled due to their service in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government.
(5) The Secretary shall permit any institution of higher
education that is a member of an athletic association or
athletic conference that has voluntarily published completion
or graduation rate data or has agreed to publish data that, in
the opinion of the Secretary, is substantially comparable to
the information required under this subsection, to use such
data to satisfy the requirements of this subsection; and
(6) Each institution may provide supplemental information to
enrolled and prospective students showing the completion or
graduation rate for students described in paragraph (4) or for
students transferring into the institution or information
showing the rate at which students transfer out of the
institution.
(7)(A)(i) Subject to clause (ii), the information
disseminated under paragraph (1)(L), or reported under
subsection (e), shall be disaggregated by gender, by
each major racial and ethnic subgroup, by recipients of
a Federal Pell Grant, by recipients of a loan made
under part B or D (other than a loan made under section
428H or a Federal Direct Unsubsidized Stafford Loan)
who did not receive a Federal Pell Grant, and by
recipients of neither a Federal Pell Grant nor a loan
made under part B or D (other than a loan made under
section 428H or a Federal Direct Unsubsidized Stafford
Loan), if the number of students in such subgroup or
with such status is sufficient to yield statistically
reliable information and reporting will not reveal
personally identifiable information about an individual
student. If such number is not sufficient for such
purposes, then the institution shall note that the
institution enrolled too few of such students to so
disclose or report with confidence and confidentiality.
(ii) The requirements of clause (i) shall not apply
to two-year, degree-granting institutions of higher
education until academic year 2011-2012.
(B)(i) In order to assist two-year degree-granting
institutions of higher education in meeting the
requirements of paragraph (1)(L) and subsection (e),
the Secretary, in consultation with the Commissioner
for Education Statistics, shall, not later than 90 days
after the date of enactment of the Higher Education
Opportunity Act, convene a group of representatives
from diverse institutions of higher education, experts
in the field of higher education policy, state higher
education officials, students, and other stakeholders
in the higher education community, to develop
recommendations regarding the accurate calculation and
reporting of the information required to be
disseminated or reported under paragraph (1)(L) and
subsection (e) by two-year, degree-granting
institutions of higher education. In developing such
recommendations, the group of representatives shall
consider the mission and role of two-year degree-
granting institutions of higher education, and may
recommend additional or alternative measures of student
success for such institutions in light of the mission
and role of such institutions.
(ii) The Secretary shall widely disseminate the
recommendations required under this subparagraph to
two-year, degree-granting institutions of higher
education, the public, and the authorizing committees
not later than 18 months after the first meeting of the
group of representatives convened under clause (i).
(iii) The Secretary shall use the recommendations
from the group of representatives convened under clause
(i) to provide technical assistance to two-year,
degree-granting institutions of higher education in
meeting the requirements of paragraph (1)(L) and
subsection (e).
(iv) The Secretary may modify the information
required to be disseminated or reported under paragraph
(1)(L) or subsection (e) by a two-year, degree-granting
institution of higher education--
(I) based on the recommendations received
under this subparagraph from the group of
representatives convened under clause (i);
(II) to include additional or alternative
measures of student success if the goals of the
provisions of paragraph (1)(L) and subsection
(e) can be met through additional means or
comparable alternatives; and
(III) during the period beginning on the date
of enactment of the Higher Education
Opportunity Act, and ending on June 30, 2011.
(b) Exit Counseling for Borrowers.--(1)(A) Each eligible
institution shall, [through financial aid offices or otherwise]
through the use of an interactive program, during an exit
counseling session that is in-person or online, or through the
use of the online counseling tool described in subsection
(n)(1)(A), provide counseling to borrowers of loans that are
made, insured, or guaranteed under part B (other than loans
made pursuant to section 428C or loans under section 428B made
on behalf of a student) or made under part D (other than
Federal Direct Consolidation Loans or Federal Direct PLUS Loans
made on behalf of a student) or made under part E of this title
prior to the completion of the course of study for which the
borrower enrolled at the institution or at the time of
departure from such institution. The counseling required by
this subsection shall include--
(i) a summary of the outstanding balance of principal
and interest due on the loans made to the borrower
under part B, D, or E;
(ii) an explanation of the grace period preceding
repayment and the expected date that the borrower will
enter repayment;
(iii) an explanation that the borrower has the option
to pay any interest that has accrued while the borrower
was in school or that may accrue during the grace
period preceding repayment or during an authorized
period of deferment or forbearance, prior to the
capitalization of the interest;
[(i)] (iv) information on the repayment plans
available, including a description of the different
features [of each plan] of at least the standard
repayment plan and the income-based repayment plan
under section 493C and [sample information showing the
average] information, based on the borrower's
outstanding balance described in clause (i), showing
the borrower's anticipated monthly payments, and the
difference in interest paid and total payments, under
each plan;
[(ii)] (v) debt management strategies that are
designed to facilitate the repayment of such
indebtedness;
[(iii)] (vi) an explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans;
[(iv)] (vii) for any loan forgiveness or cancellation
provision of this title, a general description of the
terms and conditions under which the borrower may
obtain full or partial forgiveness or cancellation of
the principal and interest, and a copy of the
information provided by the Secretary under section
485(d);
[(v)] (viii) for any forbearance provision of this
title, a general description of the terms and
conditions under which the borrower may defer repayment
of principal or interest or be granted forbearance, and
a copy of the information provided by the Secretary
under section 485(d);
[(vi)] (ix) the consequences of defaulting on a loan,
including adverse credit reports, decreased credit
score, delinquent debt collection procedures under
Federal law, reduced ability to rent or purchase a home
or car, potential difficulty in securing employment,
and litigation;
[(vii)] (x) information on the effects of using a
[consolidation loan under section 428C or a] Federal
Direct Consolidation Loan to discharge the borrower's
loans under parts B, D, and E, including at a minimum--
(I) the effects of consolidation on total
interest to be paid, fees to be paid, and
length of repayment;
(II) the effects of consolidation on a
borrower's underlying loan benefits, including
grace periods, loan forgiveness, cancellation,
and deferment opportunities;
(III) the option of the borrower to prepay
the loan or to change repayment plans; and
(IV) that borrower benefit programs may vary
among different lenders;
[(viii)] (xi) a general description of the types of
tax benefits that may be available to borrowers; [and]
[(ix)] (xii) a notice to borrowers about the
availability of the National Student Loan Data System
and how the system can be used by a borrower to obtain
information on the status of the borrower's loans;
[and]
(xiii) for each of the borrower's loans made under
part B, D, or E for which the borrower is receiving
counseling under this subsection, the contact
information for the loan servicer of the loan and a
link to such servicer's Website; and
(xiv) an explanation that an individual has a right
to annually request a disclosure of information
collected by a consumer reporting agency pursuant to
section 612(a) of the Fair Credit Reporting Act (15
U.S.C. 1681j(a)).
(B) In the case of borrower who leaves an institution without
the prior knowledge of the institution, the institution shall
attempt to provide the information described in subparagraph
(A) to the student online or in writing, except that in the
case of an institution using the online counseling tool
described in subsection (n)(1)(A), the Secretary shall attempt
to provide such information to the student in the manner
described in subsection (n)(3)(C).
(2)(A) Each eligible institution shall require that the
borrower of a loan made under part B, D, or E submit to the
institution, during the exit interview required by this
subsection--
(i) the borrower's expected permanent address after
leaving the institution (regardless of the reason for
leaving);
(ii) the name and address of the borrower's expected
employer after leaving the institution;
(iii) the address of the borrower's next of kin; and
(iv) any corrections in the institution's records
relating the borrower's name, address, social security
number, references, and driver's license number.
(B) The institution shall, within 60 days after the
interview, forward any corrected or completed information
received from the borrower to the guaranty agency indicated on
the borrower's student aid records.
(C) Nothing in this subsection shall be construed to prohibit
an institution of higher education from utilizing electronic
means, such as the online counseling tool described in
subsection (n)(1)(A), to provide personalized exit counseling.
(c) Financial Assistance Information Personnel.--Each
eligible institution shall designate an employee or group of
employees who shall be available on a full-time basis to assist
students or potential students in obtaining information as
specified in subsection (a). The Secretary may, by regulation,
waive the requirement that an employee or employees be
available on a full-time basis for carrying out
responsibilities required under this section whenever an
institution in which the total enrollment, or the portion of
the enrollment participating in programs under this title at
that institution, is too small to necessitate such employee or
employees being available on a full-time basis. No such waiver
may include permission to exempt any such institution from
designating a specific individual or a group of individuals to
carry out the provisions of this section.
(d) Departmental Publication of Descriptions of Assistance
Programs.--(1) The Secretary shall make available to eligible
institutions, eligible lenders, and secondary schools
descriptions of Federal student assistance programs including
the rights and responsibilities of student and institutional
participants, in order to (A) assist students in gaining
information through institutional sources, and (B) assist
institutions in carrying out the provisions of this section, so
that individual and institutional participants will be fully
aware of their rights and responsibilities under such programs.
In particular, such information shall include information to
enable students and prospective students to assess the debt
burden and monthly and total repayment obligations that will be
incurred as a result of receiving loans of varying amounts
under this title. Such information shall also include
information on the various payment options available for
student loans, including income-sensitive and income-based
repayment plans for loans made, insured, or guaranteed under
part B and income-contingent and income-based repayment plans
for loans made under part D. In addition, such information
shall include information to enable borrowers to assess the
practical consequences of loan consolidation, including
differences in deferment eligibility, interest rates, monthly
payments, and finance charges, and samples of loan
consolidation profiles to illustrate such consequences. The
Secretary shall provide information concerning the specific
terms and conditions under which students may obtain partial or
total cancellation or defer repayment of loans for service,
shall indicate (in terms of the Federal minimum wage) the
maximum level of compensation and allowances that a student
borrower may receive from a tax-exempt organization to qualify
for a deferment, and shall explicitly state that students may
qualify for such partial cancellations or deferments when they
serve as a paid employee of a tax-exempt organization. The
Secretary shall also provide information on loan forbearance,
including the increase in debt that results from capitalization
of interest. Such information shall be provided by eligible
institutions and eligible lenders at any time that information
regarding loan availability is provided to any student.
(2) The Secretary, to the extent the information is
available, shall compile information describing State and other
prepaid tuition programs and savings programs and disseminate
such information to States, eligible institutions, students,
and parents in departmental publications.
(3) The Secretary, to the extent practicable, shall update
the Department's Internet site to include direct links to
databases that contain information on public and private
financial assistance programs. The Secretary shall only provide
direct links to databases that can be accessed without charge
and shall make reasonable efforts to verify that the databases
included in a direct link are not providing fraudulent
information. The Secretary shall prominently display adjacent
to any such direct link a disclaimer indicating that a direct
link to a database does not constitute an endorsement or
recommendation of the database, the provider of the database,
or any services or products of such provider. The Secretary
shall provide additional direct links to information resources
from which students may obtain information about fraudulent and
deceptive practices in the provision of services related to
student financial aid.
(4) The Secretary shall widely publicize the location of the
information described in paragraph (1) among the public,
eligible institutions, and eligible lenders, and promote the
use of such information by prospective students, enrolled
students, families of prospective and enrolled students, and
borrowers.
(e) Disclosures Required With Respect to Athletically Related
Student Aid.--(1) Each institution of higher education which
participates in any program under this title and is attended by
students receiving athletically related student aid shall
annually submit a report to the Secretary which contains--
(A) the number of students at the institution of
higher education who received athletically related
student aid broken down by race and sex in the
following sports: basketball, football, baseball, cross
country/track, and all other sports combined;
(B) the number of students at the institution of
higher education, broken down by race and sex;
(C) the completion or graduation rate for students at
the institution of higher education who received
athletically related student aid broken down by race
and sex in the following sports: basketball, football,
baseball, cross country/track and all other sports
combined;
(D) the completion or graduation rate for students at
the institution of higher education, broken down by
race and sex;
(E) the average completion or graduation rate for the
4 most recent completing or graduating classes of
students at the institution of higher education who
received athletically related student aid broken down
by race and sex in the following categories:
basketball, football, baseball, cross country/track,
and all other sports combined; and
(F) the average completion or graduation rate for the
4 most recent completing or graduating classes of
students at the institution of higher education broken
down by race and sex.
(2) When an institution described in paragraph (1) of this
subsection offers a potential student athlete athletically
related student aid, such institution shall provide to the
student and the student's parents, guidance counselor, and
coach the information contained in the report submitted by such
institution pursuant to paragraph (1). If the institution is a
member of a national collegiate athletic association that
compiles graduation rate data on behalf of the association's
member institutions that the Secretary determines is
substantially comparable to the information described in
paragraph (1), the distribution of the compilation of such data
to all secondary schools in the United States shall fulfill the
responsibility of the institution to provide information to a
prospective student athlete's guidance counselor and coach.
(3) For purposes of this subsection, institutions
may--
(A) exclude from the reporting requirements
under paragraphs (1) and (2) the completion or
graduation rates of students and student
athletes who leave school to serve in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government; or
(B) in cases where the students described in
subparagraph (A) represent 20 percent or more
of the certificate- or degree-seeking, full-
time, undergraduate students at the
institution, calculate the completion or
graduation rates of such students by excluding
from the calculations described in paragraph
(1) the time period during which such students
were not enrolled due to their service in the
Armed Forces, on official church missions, or
with a recognized foreign aid service of the
Federal Government.
(4) Each institution of higher education described in
paragraph (1) may provide supplemental information to students
and the Secretary showing the completion or graduation rate
when such completion or graduation rate includes students
transferring into and out of such institution.
(5) The Secretary, using the reports submitted under this
subsection, shall compile and publish a report containing the
information required under paragraph (1) broken down by--
(A) individual institutions of higher education; and
(B) athletic conferences recognized by the National
Collegiate Athletic Association and the National
Association of Intercollegiate Athletics.
(6) The Secretary shall waive the requirements of this
subsection for any institution of higher education that is a
member of an athletic association or athletic conference that
has voluntarily published completion or graduation rate data or
has agreed to publish data that, in the opinion of the
Secretary, is substantially comparable to the information
required under this subsection.
(7) The Secretary, in conjunction with the National Junior
College Athletic Association, shall develop and obtain data on
completion or graduation rates from two-year colleges that
award athletically related student aid. Such data shall, to the
extent practicable, be consistent with the reporting
requirements set forth in this section.
(8) For purposes of this subsection, the term ``athletically
related student aid'' means any scholarship, grant, or other
form of financial assistance the terms of which require the
recipient to participate in a program of intercollegiate
athletics at an institution of higher education in order to be
eligible to receive such assistance.
(9) The reports required by this subsection shall be due each
July 1 and shall cover the 1-year period ending August 31 of
the preceding year.
(f) Disclosure of Campus Security Policy and Campus Crime
Statistics.--(1) Each eligible institution participating in any
program under this title, other than a foreign institution of
higher education, shall on August 1, 1991, begin to collect the
following information with respect to campus crime statistics
and campus security policies of that institution, and beginning
September 1, 1992, and each year thereafter, prepare, publish,
and distribute, through appropriate publications or mailings,
to all current students and employees, and to any applicant for
enrollment or employment upon request, an annual security
report containing at least the following information with
respect to the campus security policies and campus crime
statistics of that institution:
(A) A statement of current campus policies regarding
procedures and facilities for students and others to
report criminal actions or other emergencies occurring
on campus and policies concerning the institution's
response to such reports.
(B) A statement of current policies concerning
security and access to campus facilities, including
campus residences, and security considerations used in
the maintenance of campus facilities.
(C) A statement of current policies concerning campus
law enforcement, including--
(i) the law enforcement authority of campus
security personnel;
(ii) the working relationship of campus
security personnel with State and local law
enforcement agencies, including whether the
institution has agreements with such agencies,
such as written memoranda of understanding, for
the investigation of alleged criminal offenses;
and
(iii) policies which encourage accurate and
prompt reporting of all crimes to the campus
police and the appropriate law enforcement
agencies, when the victim of such crime elects
or is unable to make such a report.
(D) A description of the type and frequency of
programs designed to inform students and employees
about campus security procedures and practices and to
encourage students and employees to be responsible for
their own security and the security of others.
(E) A description of programs designed to inform
students and employees about the prevention of crimes.
(F) Statistics concerning the occurrence on campus,
in or on noncampus buildings or property, and on public
property during the most recent calendar year, and
during the 2 preceding calendar years for which data
are available--
(i) of the following criminal offenses
reported to campus security authorities or
local police agencies:
(I) murder;
(II) sex offenses, forcible or
nonforcible;
(III) robbery;
(IV) aggravated assault;
(V) burglary;
(VI) motor vehicle theft;
(VII) manslaughter;
(VIII) arson;
(IX) arrests or persons referred for
campus disciplinary action for liquor
law violations, drug-related
violations, and weapons possession; and
(ii) of the crimes described in subclauses
(I) through (VIII) of clause (i), of larceny-
theft, simple assault, intimidation, and
destruction, damage, or vandalism of property,
and of other crimes involving bodily injury to
any person, in which the victim is
intentionally selected because of the actual or
perceived race, gender, religion, national
origin, sexual orientation, gender identity,,
ethnicity, or disability of the victim that are
reported to campus security authorities or
local police agencies, which data shall be
collected and reported according to category of
prejudice; and
(iii) of domestic violence, dating violence,
and stalking incidents that were reported to
campus security authorities or local police
agencies.
(G) A statement of policy concerning the monitoring
and recording through local police agencies of criminal
activity at off-campus student organizations which are
recognized by the institution and that are engaged in
by students attending the institution, including those
student organizations with off-campus housing
facilities.
(H) A statement of policy regarding the possession,
use, and sale of alcoholic beverages and enforcement of
State underage drinking laws and a statement of policy
regarding the possession, use, and sale of illegal
drugs and enforcement of Federal and State drug laws
and a description of any drug or alcohol abuse
education programs as required under section 120 of
this Act.
(I) A statement advising the campus community where
law enforcement agency information provided by a State
under section 170101(j) of the Violent Crime Control
and Law Enforcement Act of 1994 (42 U.S.C. 14071(j)),
concerning registered sex offenders may be obtained,
such as the law enforcement office of the institution,
a local law enforcement agency with jurisdiction for
the campus, or a computer network address.
(J) A statement of current campus policies
regarding immediate emergency response and
evacuation procedures, including the use of
electronic and cellular communication (if
appropriate), which policies shall include
procedures to--
(i) immediately notify the campus
community upon the confirmation of a
significant emergency or dangerous
situation involving an immediate threat
to the health or safety of students or
staff occurring on the campus, as
defined in paragraph (6), unless
issuing a notification will compromise
efforts to contain the emergency;
(ii) publicize emergency response and
evacuation procedures on an annual
basis in a manner designed to reach
students and staff; and
(iii) test emergency response and
evacuation procedures on an annual
basis.
(2) Nothing in this subsection shall be construed to
authorize the Secretary to require particular policies,
procedures, or practices by institutions of higher education
with respect to campus crimes or campus security.
(3) Each institution participating in any program under this
title, other than a foreign institution of higher education,
shall make timely reports to the campus community on crimes
considered to be a threat to other students and employees
described in paragraph (1)(F) that are reported to campus
security or local law police agencies. Such reports shall be
provided to students and employees in a manner that is timely,
that withholds the names of victims as confidential, and that
will aid in the prevention of similar occurrences.
(4)(A) Each institution participating in any program under
this title, other than a foreign institution of higher
education, that maintains a police or security department of
any kind shall make, keep, and maintain a daily log, written in
a form that can be easily understood, recording all crimes
reported to such police or security department, including--
(i) the nature, date, time, and general location of
each crime; and
(ii) the disposition of the complaint, if known.
(B)(i) All entries that are required pursuant to this
paragraph shall, except where disclosure of such information is
prohibited by law or such disclosure would jeopardize the
confidentiality of the victim, be open to public inspection
within two business days of the initial report being made to
the department or a campus security authority.
(ii) If new information about an entry into a log becomes
available to a police or security department, then the new
information shall be recorded in the log not later than two
business days after the information becomes available to the
police or security department.
(iii) If there is clear and convincing evidence that the
release of such information would jeopardize an ongoing
criminal investigation or the safety of an individual, cause a
suspect to flee or evade detection, or result in the
destruction of evidence, such information may be withheld until
that damage is no longer likely to occur from the release of
such information.
(5) On an annual basis, each institution participating in any
program under this title, other than a foreign institution of
higher education, shall submit to the Secretary a copy of the
statistics required to be made available under paragraph
(1)(F). The Secretary shall--
(A) review such statistics and report to the
authorizing committees on campus crime statistics by
September 1, 2000;
(B) make copies of the statistics submitted to the
Secretary available to the public; and
(C) in coordination with representatives of
institutions of higher education, identify exemplary
campus security policies, procedures, and practices and
disseminate information concerning those policies,
procedures, and practices that have proven effective in
the reduction of campus crime.
(6)(A) In this subsection:
(i) The terms ``dating violence'', ``domestic
violence'', and ``stalking'' have the meaning given
such terms in section 40002(a) of the Violence Against
Women Act of 1994 (42 U.S.C. 13925(a)).
(ii) The term ``campus'' means--
(I) any building or property owned or
controlled by an institution of higher
education within the same reasonably contiguous
geographic area of the institution and used by
the institution in direct support of, or in a
manner related to, the institution's
educational purposes, including residence
halls; and
(II) property within the same reasonably
contiguous geographic area of the institution
that is owned by the institution but controlled
by another person, is used by students, and
supports institutional purposes (such as a food
or other retail vendor).
(iii) The term ``noncampus building or property''
means--
(I) any building or property owned or
controlled by a student organization recognized
by the institution; and
(II) any building or property (other than a
branch campus) owned or controlled by an
institution of higher education that is used in
direct support of, or in relation to, the
institution's educational purposes, is used by
students, and is not within the same reasonably
contiguous geographic area of the institution.
(iv) The term ``public property'' means all public
property that is within the same reasonably contiguous
geographic area of the institution, such as a sidewalk,
a street, other thoroughfare, or parking facility, and
is adjacent to a facility owned or controlled by the
institution if the facility is used by the institution
in direct support of, or in a manner related to the
institution's educational purposes.
(v) The term ``sexual assault'' means an offense
classified as a forcible or nonforcible sex offense
under the uniform crime reporting system of the Federal
Bureau of Investigation.
(B) In cases where branch campuses of an institution of
higher education, schools within an institution of higher
education, or administrative divisions within an institution
are not within a reasonably contiguous geographic area, such
entities shall be considered separate campuses for purposes of
the reporting requirements of this section.
(7) The statistics described in clauses (i) and (ii) of
paragraph (1)(F) shall be compiled in accordance with the
definitions used in the uniform crime reporting system of the
Department of Justice, Federal Bureau of Investigation, and the
modifications in such definitions as implemented pursuant to
the Hate Crime Statistics Act. For the offenses of domestic
violence, dating violence, and stalking, such statistics shall
be compiled in accordance with the definitions used in section
40002(a) of the Violence Against Women Act of 1994 (42 U.S.C.
13925(a)). Such statistics shall not identify victims of crimes
or persons accused of crimes.
(8)(A) Each institution of higher education participating in
any program under this title and title IV of the Economic
Opportunity Act of 1964, other than a foreign institution of
higher education, shall develop and distribute as part of the
report described in paragraph (1) a statement of policy
regarding--
(i) such institution's programs to prevent domestic
violence, dating violence, sexual assault, and
stalking; and
(ii) the procedures that such institution will follow
once an incident of domestic violence, dating violence,
sexual assault, or stalking has been reported,
including a statement of the standard of evidence that
will be used during any institutional conduct
proceeding arising from such a report.
(B) The policy described in subparagraph (A) shall address
the following areas:
(i) Education programs to promote the awareness of
rape, acquaintance rape, domestic violence, dating
violence, sexual assault, and stalking, which shall
include--
(I) primary prevention and awareness programs
for all incoming students and new employees,
which shall include--
(aa) a statement that the institution
of higher education prohibits the
offenses of domestic violence, dating
violence, sexual assault, and stalking;
(bb) the definition of domestic
violence, dating violence, sexual
assault, and stalking in the applicable
jurisdiction;
(cc) the definition of consent, in
reference to sexual activity, in the
applicable jurisdiction;
(dd) safe and positive options for
bystander intervention that may be
carried out by an individual to prevent
harm or intervene when there is a risk
of domestic violence, dating violence,
sexual assault, or stalking against a
person other than such individual;
(ee) information on risk reduction to
recognize warning signs of abusive
behavior and how to avoid potential
attacks; and
(ff) the information described in
clauses (ii) through (vii); and
(II) ongoing prevention and awareness
campaigns for students and faculty, including
information described in items (aa) through
(ff) of subclause (I).
(ii) Possible sanctions or protective measures that
such institution may impose following a final
determination of an institutional disciplinary
procedure regarding rape, acquaintance rape, domestic
violence, dating violence, sexual assault, or stalking.
(iii) Procedures victims should follow if a sex
offense, domestic violence, dating violence, sexual
assault, or stalking has occurred, including
information in writing about--
(I) the importance of preserving evidence as
may be necessary to the proof of criminal
domestic violence, dating violence, sexual
assault, or stalking, or in obtaining a
protection order;
(II) to whom the alleged offense should be
reported;
(III) options regarding law enforcement and
campus authorities, including notification of
the victim's option to--
(aa) notify proper law enforcement
authorities, including on-campus and
local police;
(bb) be assisted by campus
authorities in notifying law
enforcement authorities if the victim
so chooses; and
(cc) decline to notify such
authorities; and
(IV) where applicable, the rights of victims
and the institution's responsibilities
regarding orders of protection, no contact
orders, restraining orders, or similar lawful
orders issued by a criminal, civil, or tribal
court.
(iv) Procedures for institutional disciplinary action
in cases of alleged domestic violence, dating violence,
sexual assault, or stalking, which shall include a
clear statement that--
(I) such proceedings shall--
(aa) provide a prompt, fair, and
impartial investigation and resolution;
and
(bb) be conducted by officials who
receive annual training on the issues
related to domestic violence, dating
violence, sexual assault, and stalking
and how to conduct an investigation and
hearing process that protects the
safety of victims and promotes
accountability;
(II) the accuser and the accused are entitled
to the same opportunities to have others
present during an institutional disciplinary
proceeding, including the opportunity to be
accompanied to any related meeting or
proceeding by an advisor of their choice; and
(III) both the accuser and the accused shall
be simultaneously informed, in writing, of--
(aa) the outcome of any institutional
disciplinary proceeding that arises
from an allegation of domestic
violence, dating violence, sexual
assault, or stalking;
(bb) the institution's procedures for
the accused and the victim to appeal
the results of the institutional
disciplinary proceeding;
(cc) of any change to the results
that occurs prior to the time that such
results become final; and
(dd) when such results become final.
(v) Information about how the institution will
protect the confidentiality of victims, including how
publicly-available recordkeeping will be accomplished
without the inclusion of identifying information about
the victim, to the extent permissible by law.
(vi) Written notification of students and employees
about existing counseling, health, mental health,
victim advocacy, legal assistance, and other services
available for victims both on-campus and in the
community.
(vii) Written notification of victims about options
for, and available assistance in, changing academic,
living, transportation, and working situations, if so
requested by the victim and if such accommodations are
reasonably available, regardless of whether the victim
chooses to report the crime to campus police or local
law enforcement.
(C) A student or employee who reports to an institution of
higher education that the student or employee has been a victim
of domestic violence, dating violence, sexual assault, or
stalking, whether the offense occurred on or off campus, shall
be provided with a written explanation of the student or
employee's rights and options, as described in clauses (ii)
through (vii) of subparagraph (B).
(9) The Secretary, in consultation with the Attorney General
of the United States, shall provide technical assistance in
complying with the provisions of this section to an institution
of higher education who requests such assistance.
(10) Nothing in this section shall be construed to require
the reporting or disclosure of privileged information.
(11) The Secretary shall report to the appropriate committees
of Congress each institution of higher education that the
Secretary determines is not in compliance with the reporting
requirements of this subsection.
(12) For purposes of reporting the statistics with respect to
crimes described in paragraph (1)(F), an institution of higher
education shall distinguish, by means of separate categories,
any criminal offenses that occur--
(A) on campus;
(B) in or on a noncampus building or property;
(C) on public property; and
(D) in dormitories or other residential facilities
for students on campus.
(13) Upon a determination pursuant to section 487(c)(3)(B)
that an institution of higher education has substantially
misrepresented the number, location, or nature of the crimes
required to be reported under this subsection, the Secretary
shall impose a civil penalty upon the institution in the same
amount and pursuant to the same procedures as a civil penalty
is imposed under section 487(c)(3)(B).
(14)(A) Nothing in this subsection may be construed to--
(i) create a cause of action against any institution
of higher education or any employee of such an
institution for any civil liability; or
(ii) establish any standard of care.
(B) Notwithstanding any other provision of law, evidence
regarding compliance or noncompliance with this subsection
shall not be admissible as evidence in any proceeding of any
court, agency, board, or other entity, except with respect to
an action to enforce this subsection.
(15) The Secretary shall annually report to the
authorizing committees regarding compliance with this
subsection by institutions of higher education,
including an up-to-date report on the Secretary's
monitoring of such compliance.
(16)(A) The Secretary shall seek the advice and counsel of
the Attorney General of the United States concerning the
development, and dissemination to institutions of higher
education, of best practices information about campus safety
and emergencies.
(B) The Secretary shall seek the advice and counsel of the
Attorney General of the United States and the Secretary of
Health and Human Services concerning the development, and
dissemination to institutions of higher education, of best
practices information about preventing and responding to
incidents of domestic violence, dating violence, sexual
assault, and stalking, including elements of institutional
policies that have proven successful based on evidence-based
outcome measurements.
(17) No officer, employee, or agent of an institution
participating in any program under this title shall retaliate,
intimidate, threaten, coerce, or otherwise discriminate against
any individual for exercising their rights or responsibilities
under any provision of this subsection.
(18) This subsection may be cited as the ``Jeanne Clery
Disclosure of Campus Security Policy and Campus Crime
Statistics Act''.
(g) Data Required.--
(1) In general.--Each coeducational institution of
higher education that participates in any program under
this title, and has an intercollegiate athletic
program, shall annually, for the immediately preceding
academic year, prepare a report that contains the
following information regarding intercollegiate
athletics:
(A) The number of male and female full-time
undergraduates that attended the institution.
(B) A listing of the varsity teams that
competed in intercollegiate athletic
competition and for each such team the
following data:
(i) The total number of participants,
by team, as of the day of the first
scheduled contest for the team.
(ii) Total operating expenses
attributable to such teams, except that
an institution may also report such
expenses on a per capita basis for each
team and expenditures attributable to
closely related teams such as track and
field or swimming and diving, may be
reported together, although such
combinations shall be reported
separately for men's and women's teams.
(iii) Whether the head coach is male
or female and whether the head coach is
assigned to that team on a full-time or
part-time basis. Graduate assistants
and volunteers who serve as head
coaches shall be considered to be head
coaches for the purposes of this
clause.
(iv) The number of assistant coaches
who are male and the number of
assistant coaches who are female for
each team and whether a particular
coach is assigned to that team on a
full-time or part-time basis. Graduate
assistants and volunteers who serve as
assistant coaches shall be considered
to be assistant coaches for the
purposes of this clause.
(C) The total amount of money spent on
athletically related student aid, including the
value of waivers of educational expenses,
separately for men's and women's teams overall.
(D) The ratio of athletically related student
aid awarded male athletes to athletically
related student aid awarded female athletes.
(E) The total amount of expenditures on
recruiting, separately for men's and women's
teams overall.
(F) The total annual revenues generated
across all men's teams and across all women's
teams, except that an institution may also
report such revenues by individual team.
(G) The average annual institutional salary
of the head coaches of men's teams, across all
offered sports, and the average annual
institutional salary of the head coaches of
women's teams, across all offered sports.
(H) The average annual institutional salary
of the assistant coaches of men's teams, across
all offered sports, and the average annual
institutional salary of the assistant coaches
of women's teams, across all offered sports.
(I)(i) The total revenues, and the revenues
from football, men's basketball, women's
basketball, all other men's sports combined and
all other women's sports combined, derived by
the institution from the institution's
intercollegiate athletics activities.
(ii) For the purpose of clause (i), revenues
from intercollegiate athletics activities
allocable to a sport shall include (without
limitation) gate receipts, broadcast revenues,
appearance guarantees and options, concessions,
and advertising, but revenues such as student
activities fees or alumni contributions not so
allocable shall be included in the calculation
of total revenues only.
(J)(i) The total expenses, and the expenses
attributable to football, men's basketball,
women's basketball, all other men's sports
combined, and all other women's sports
combined, made by the institution for the
institution's intercollegiate athletics
activities.
(ii) For the purpose of clause (i), expenses
for intercollegiate athletics activities
allocable to a sport shall include (without
limitation) grants-in-aid, salaries, travel,
equipment, and supplies, but expenses such as
general and administrative overhead not so
allocable shall be included in the calculation
of total expenses only.
(2) Special rule.--For the purposes of paragraph
(1)(G), if a coach has responsibilities for more than
one team and the institution does not allocate such
coach's salary by team, the institution should divide
the salary by the number of teams for which the coach
has responsibility and allocate the salary among the
teams on a basis consistent with the coach's
responsibilities for the different teams.
(3) Disclosure of information to students and
public.--An institution of higher education described
in paragraph (1) shall make available to students and
potential students, upon request, and to the public,
the information contained in the report described in
paragraph (1), except that all students shall be
informed of their right to request such information.
(4) Submission; report; information availability.--
(A) On an annual basis, each institution of higher
education described in paragraph (1) shall provide to
the Secretary, within 15 days of the date that the
institution makes available the report under paragraph
(1), the information contained in the report.
(B) The Secretary shall ensure that the reports
described in subparagraph (A) are made available to the
public within a reasonable period of time.
(C) Not later than 180 days after the date of
enactment of the Higher Education Amendments of 1998,
the Secretary shall notify all secondary schools in all
States regarding the availability of the information
made available under paragraph (1), and how such
information may be accessed.
(5) Definition.--For the purposes of this subsection,
the term ``operating expenses'' means expenditures on
lodging and meals, transportation, officials, uniforms
and equipment.
(h) Transfer of Credit Policies.--
(1) Disclosure.--Each institution of higher education
participating in any program under this title shall
publicly disclose, in a readable and comprehensible
manner, the transfer of credit policies established by
the institution which shall include a statement of the
institution's current transfer of credit policies that
includes, at a minimum--
(A) any established criteria the institution
uses regarding the transfer of credit earned at
another institution of higher education; and
(B) a list of institutions of higher
education with which the institution has
established an articulation agreement.
(2) Rule of construction.--Nothing in this subsection
shall be construed to--
(A) authorize the Secretary or the National
Advisory Committee on Institutional Quality and
Integrity to require particular policies,
procedures, or practices by institutions of
higher education with respect to transfer of
credit;
(B) authorize an officer or employee of the
Department to exercise any direction,
supervision, or control over the curriculum,
program of instruction, administration, or
personnel of any institution of higher
education, or over any accrediting agency or
association;
(C) limit the application of the General
Education Provisions Act; or
(D) create any legally enforceable right on
the part of a student to require an institution
of higher education to accept a transfer of
credit from another institution.
(i) Disclosure of Fire Safety Standards and Measures.--
(1) Annual fire safety reports on student housing
required.--Each eligible institution participating in
any program under this title that maintains on-campus
student housing facilities shall, on an annual basis,
publish a fire safety report, which shall contain
information with respect to the campus fire safety
practices and standards of that institution,
including--
(A) statistics concerning the following in
each on-campus student housing facility during
the most recent calendar years for which data
are available:
(i) the number of fires and the cause
of each fire;
(ii) the number of injuries related
to a fire that result in treatment at a
medical facility;
(iii) the number of deaths related to
a fire; and
(iv) the value of property damage
caused by a fire;
(B) a description of each on-campus student
housing facility fire safety system, including
the fire sprinkler system;
(C) the number of regular mandatory
supervised fire drills;
(D) policies or rules on portable electrical
appliances, smoking, and open flames (such as
candles), procedures for evacuation, and
policies regarding fire safety education and
training programs provided to students,
faculty, and staff; and
(E) plans for future improvements in fire
safety, if determined necessary by such
institution.
(2) Report to the secretary.--Each institution
described in paragraph (1) shall, on an annual basis,
submit to the Secretary a copy of the statistics
required to be made available under paragraph (1)(A).
(3) Current information to campus community.--Each
institution described in paragraph (1) shall--
(A) make, keep, and maintain a log, recording
all fires in on-campus student housing
facilities, including the nature, date, time,
and general location of each fire; and
(B) make annual reports to the campus
community on such fires.
(4) Responsibilities of the secretary.--The Secretary
shall--
(A) make the statistics submitted under
paragraph (1)(A) to the Secretary available to
the public; and
(B) in coordination with nationally
recognized fire organizations and
representatives of institutions of higher
education, representatives of associations of
institutions of higher education, and other
organizations that represent and house a
significant number of students--
(i) identify exemplary fire safety
policies, procedures, programs, and
practices, including the installation,
to the technical standards of the
National Fire Protection Association,
of fire detection, prevention, and
protection technologies in student
housing, dormitories, and other
buildings;
(ii) disseminate the exemplary
policies, procedures, programs and
practices described in clause (i) to
the Administrator of the United States
Fire Administration;
(iii) make available to the public
information concerning those policies,
procedures, programs, and practices
that have proven effective in the
reduction of fires; and
(iv) develop a protocol for
institutions to review the status of
their fire safety systems.
(5) Rules of construction.--Nothing in this
subsection shall be construed to--
(A) authorize the Secretary to require
particular policies, procedures, programs, or
practices by institutions of higher education
with respect to fire safety, other than with
respect to the collection, reporting, and
dissemination of information required by this
subsection;
(B) affect section 444 of the General
Education Provisions Act (commonly known as the
``Family Educational Rights and Privacy Act of
1974'') or the regulations issued under section
264 of the Health Insurance Portability and
Accountability Act of 1996 (42 U.S.C. 1320d-2
note);
(C) create a cause of action against any
institution of higher education or any employee
of such an institution for any civil liability;
or
(D) establish any standard of care.
(6) Compliance report.--The Secretary shall annually
report to the authorizing committees regarding
compliance with this subsection by institutions of
higher education, including an up-to-date report on the
Secretary's monitoring of such compliance.
(7) Evidence.--Notwithstanding any other provision of
law, evidence regarding compliance or noncompliance
with this subsection shall not be admissible as
evidence in any proceeding of any court, agency, board,
or other entity, except with respect to an action to
enforce this subsection.
(j) Missing Person Procedures.--
(1) Option and procedures.--Each institution of
higher education that provides on-campus housing and
participates in any program under this title shall--
(A) establish a missing student notification
policy for students who reside in on-campus
housing that--
(i) informs each such student that
such student has the option to identify
an individual to be contacted by the
institution not later than 24 hours
after the time that the student is
determined missing in accordance with
official notification procedures
established by the institution under
subparagraph (B);
(ii) provides each such student a
means to register confidential contact
information in the event that the
student is determined to be missing for
a period of more than 24 hours;
(iii) advises each such student who
is under 18 years of age, and not an
emancipated individual, that the
institution is required to notify a
custodial parent or guardian not later
24 hours after the time that the
student is determined to be missing in
accordance with such procedures;
(iv) informs each such residing
student that the institution will
notify the appropriate law enforcement
agency not later than 24 hours after
the time that the student is determined
missing in accordance with such
procedures; and
(v) requires, if the campus security
or law enforcement personnel has been
notified and makes a determination that
a student who is the subject of a
missing person report has been missing
for more than 24 hours and has not
returned to the campus, the institution
to initiate the emergency contact
procedures in accordance with the
student's designation; and
(B) establish official notification
procedures for a missing student who resides in
on-campus housing that--
(i) includes procedures for official
notification of appropriate individuals
at the institution that such student
has been missing for more than 24
hours;
(ii) requires any official missing
person report relating to such student
be referred immediately to the
institution's police or campus security
department; and
(iii) if, on investigation of the
official report, such department
determines that the missing student has
been missing for more than 24 hours,
requires--
(I) such department to
contact the individual
identified by such student
under subparagraph (A)(i);
(II) if such student is under
18 years of age, and not an
emancipated individual, the
institution to immediately
contact the custodial parent or
legal guardian of such student;
and
(III) if subclauses (I) or
(II) do not apply to a student
determined to be a missing
person, inform the appropriate
law enforcement agency.
(2) Rule of construction.--Nothing in this subsection
shall be construed--
(A) to provide a private right of action to
any person to enforce any provision of this
subsection; or
(B) to create a cause of action against any
institution of higher education or any employee
of the institution for any civil liability.
(k) Notice to Students Concerning Penalties for Drug
Violations.--
(1) Notice upon enrollment.--Each institution of
higher education shall provide to each student, upon
enrollment, a separate, clear, and conspicuous written
notice that advises the student of the penalties under
section 484(r).
(2) Notice after loss of eligibility.--An institution
of higher education shall provide in a timely manner to
each student who has lost eligibility for any grant,
loan, or work-study assistance under this title as a
result of the penalties listed under section 484(r)(1)
a separate, clear, and conspicuous written notice that
notifies the student of the loss of eligibility and
advises the student of the ways in which the student
can regain eligibility under section 484(r)(2).
[(l) Entrance Counseling for Borrowers.--
[(1) Disclosure required prior to disbursement.--
[(A) In general.--Each eligible institution
shall, at or prior to the time of a
disbursement to a first-time borrower of a loan
made, insured, or guaranteed under part B
(other than a loan made pursuant to section
428C or a loan made on behalf of a student
pursuant to section 428B) or made under part D
(other than a Federal Direct Consolidation Loan
or a Federal Direct PLUS loan made on behalf of
a student), ensure that the borrower receives
comprehensive information on the terms and
conditions of the loan and of the
responsibilities the borrower has with respect
to such loan in accordance with paragraph (2).
Such information--
[(i) shall be provided in a simple
and understandable manner; and
[(ii) may be provided--
[(I) during an entrance
counseling session conduction
in person;
[(II) on a separate written
form provided to the borrower
that the borrower signs and
returns to the institution; or
[(III) online, with the
borrower acknowledging receipt
of the information.
[(B) Use of interactive programs.--The
Secretary shall encourage institutions to carry
out the requirements of subparagraph (A)
through the use of interactive programs that
test the borrower's understanding of the terms
and conditions of the borrower's loans under
part B or D, using simple and understandable
language and clear formatting.
[(2) Information to be provided.--The information to
be provided to the borrower under paragraph (1)(A)
shall include the following:
[(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the
eligibility of the borrower for other forms of
student financial assistance.
[(B) An explanation of the use of the master
promissory note.
[(C) Information on how interest accrues and
is capitalized during periods when the interest
is not paid by either the borrower or the
Secretary.
[(D) In the case of a loan made under section
428B or 428H, a Federal Direct PLUS Loan, or a
Federal Direct Unsubsidized Stafford Loan, the
option of the borrower to pay the interest
while the borrower is in school.
[(E) The definition of half-time enrollment
at the institution, during regular terms and
summer school, if applicable, and the
consequences of not maintaining half-time
enrollment.
[(F) An explanation of the importance of
contacting the appropriate offices at the
institution of higher education if the borrower
withdraws prior to completing the borrower's
program of study so that the institution can
provide exit counseling, including information
regarding the borrower's repayment options and
loan consolidation.
[(G) Sample monthly repayment amounts based
on--
[(i) a range of levels of
indebtedness of--
[(I) borrowers of loans under
section 428 or 428H; and
[(II) as appropriate,
graduate borrowers of loans
under section 428, 428B, or
428H; or
[(ii) the average cumulative
indebtedness of other borrowers in the
same program as the borrower at the
same institution.
[(H) The obligation of the borrower to repay
the full amount of the loan, regardless of
whether the borrower completes or does not
complete the program in which the borrower is
enrolled within the regular time for program
completion.
[(I) The likely consequences of default on
the loan, including adverse credit reports,
delinquent debt collection procedures under
Federal law, and litigation.
[(J) Information on the National Student Loan
Data System and how the borrower can access the
borrower's records.
[(K) The name of and contact information for
the individual the borrower may contact if the
borrower has any questions about the borrower's
rights and responsibilities or the terms and
conditions of the loan.]
(l) Annual Financial Aid Counseling.--
(1) Annual disclosure required.--
(A) In general.--Each eligible institution
shall ensure that each individual who receives
a Federal Pell Grant or a loan made under part
D (other than a Federal Direct Consolidation
Loan) receives comprehensive information on the
terms and conditions of such Federal Pell Grant
or loan and the responsibilities the individual
has with respect to such Federal Pell Grant or
loan. Such information shall be provided, for
each award year for which the individual
receives such Federal Pell Grant or loan, in a
simple and understandable manner--
(i) during a counseling session
conducted in person;
(ii) online, with the individual
acknowledging receipt of the
information; or
(iii) through the use of the online
counseling tool described in subsection
(n)(1)(B).
(B) Use of interactive programs.--In the case
of institutions not using the online counseling
tool described in subsection (n)(1)(B), the
Secretary shall require such institutions to
carry out the requirements of subparagraph (A)
through the use of interactive programs, during
an annual counseling session that is in-person
or online, that test the individual's
understanding of the terms and conditions of
the Federal Pell Grant or loan awarded to the
individual, using simple and understandable
language and clear formatting.
(2) All individuals.--The information to be provided
under paragraph (1)(A) to each individual receiving
counseling under this subsection shall include the
following:
(A) An explanation of how the individual may
budget for typical educational expenses and a
sample budget based on the cost of attendance
for the institution.
(B) An explanation that an individual has a
right to annually request a disclosure of
information collected by a consumer reporting
agency pursuant to section 612(a) of the Fair
Credit Reporting Act (15 U.S.C. 1681j(a)).
(C) Based on the most recent data available
from the American Community Survey available
from the Department of Commerce, the estimated
average income and percentage of employment in
the State of domicile of the individual for
individuals with--
(i) a high school diploma or
equivalent;
(ii) some post-secondary education
without completion of a degree or
certificate; and
(iii) a bachelor's degree.
(D) An introduction to the financial
management resources provided by the Financial
Literacy and Education Commission.
(3) Students receiving federal pell grants.--The
information to be provided under paragraph (1)(A) to
each student receiving a Federal Pell Grant shall
include the following:
(A) An explanation of the terms and
conditions of the Federal Pell Grant.
(B) An explanation of approved educational
expenses for which the student may use the
Federal Pell Grant.
(C) An explanation of why the student may
have to repay the Federal Pell Grant.
(D) An explanation of the maximum number of
semesters or equivalent for which the student
may be eligible to receive a Federal Pell
Grant, and a statement of the amount of time
remaining for which the student may be eligible
to receive a Federal Pell Grant.
(E) An explanation that if the student
transfers to another institution not all of the
student's courses may be acceptable in transfer
toward meeting specific degree or program
requirements at such institution, but the
amount of time remaining for which a student
may be eligible to receive a Federal Pell
Grant, as provided under subparagraph (D), will
not change.
(F) An explanation of how the student may
seek additional financial assistance from the
institution's financial aid office due to a
change in the student's financial
circumstances, and the contact information for
such office.
(4) Borrowers receiving loans made under part d
(other than parent plus loans).--The information to be
provided under paragraph (1)(A) to a borrower of a loan
made under part D (other than a Federal Direct PLUS
Loan made on behalf of a dependent student) shall
include the following:
(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the
eligibility of the borrower for other forms of
student financial assistance.
(B) An explanation of the use of the master
promissory note.
(C) An explanation that the borrower is not
required to accept the full amount of the loan
offered to the borrower.
(D) An explanation that the borrower should
consider accepting any grant, scholarship, or
State or Federal work-study jobs for which the
borrower is eligible prior to accepting Federal
student loans.
(E) A recommendation to the borrower to
exhaust the borrower's Federal student loan
options prior to taking out private education
loans, an explanation that Federal student
loans typically offer better terms and
conditions than private education loans, an
explanation of treatment of loans made under
part D and private education loans in
bankruptcy, and an explanation that if a
borrower decides to take out a private
education loan--
(i) the borrower has the ability to
select a private educational lender of
the borrower's choice;
(ii) the proposed private education
loan may impact the borrower's
potential eligibility for other
financial assistance, including Federal
financial assistance under this title;
and
(iii) the borrower has a right--
(I) to accept the terms of
the private education loan
within 30 calendar days
following the date on which the
application for such loan is
approved and the borrower
receives the required
disclosure documents, pursuant
to section 128(e) of the Truth
in Lending Act (15 U.S.C.
1638(e)); and
(II) to cancel such loan
within 3 business days of the
date on which the loan is
consummated, pursuant to
section 128(e)(7) of such Act
(15 U.S.C. 1638(e)(7)).
(F) An explanation of the approved
educational expenses for which the borrower may
use a loan made under part D.
(G) Information on the annual and aggregate
loan limits for Federal Direct Stafford Loans
and Federal Direct Unsubsidized Stafford Loans.
(H) Information on how interest accrues and
is capitalized during periods when the interest
is not paid by either the borrower or the
Secretary.
(I) In the case of a Federal Direct PLUS Loan
or a Federal Direct Unsubsidized Stafford Loan,
the option of the borrower to pay the interest
while the borrower is in school.
(J) The definition of half-time enrollment at
the institution, during regular terms and
summer school, if applicable, and the
consequences of not maintaining at least half-
time enrollment.
(K) An explanation of the importance of
contacting the appropriate offices at the
institution of higher education if the borrower
withdraws prior to completing the borrower's
program of study so that the institution can
provide exit counseling, including information
regarding the borrower's repayment options and
loan consolidation.
(L) For a first-time borrower--
(i) a statement of the anticipated
balance on the loan for which the
borrower is receiving counseling under
this subsection;
(ii) based on such anticipated
balance, the anticipated monthly
payment amount under, at minimum--
(I) the standard repayment
plan; and
(II) an income-based
repayment plan under section
493C, as determined using
regionally available data from
the Bureau of Labor Statistics
of the average starting salary
for the occupation in which the
borrower has an interest in or
intends to be employed; and
(iii) an estimate of the projected
monthly payment amount under each
repayment plan described in clause
(ii), based on the average cumulative
indebtedness at graduation for
borrowers of loans made under part D
who are in the same program of study as
the borrower.
(M) For a borrower with an outstanding
balance of principal or interest due on a loan
made under this title--
(i) a current statement of the amount
of such outstanding balance and
interest accrued;
(ii) based on such outstanding
balance, the anticipated monthly
payment amount under, at minimum, the
standard repayment plan and, using
regionally available data from the
Bureau of Labor Statistics of the
average starting salary for the
occupation the borrower intends to be
employed, an income-based repayment
plan under section 493C; and
(iii) an estimate of the projected
monthly payment amount under each
repayment plan described in clause
(ii), based on--
(I) the outstanding balance
described in clause (i);
(II) the anticipated
outstanding balance on the loan
for which the student is
receiving counseling under this
subsection; and
(III) a projection for any
other loans made under part D
that the borrower is reasonably
expected to accept during the
borrower's program of study
based on at least the expected
increase in the cost of
attendance of such program.
(N) The obligation of the borrower to repay
the full amount of the loan, regardless of
whether the borrower completes or does not
complete the program in which the borrower is
enrolled within the regular time for program
completion.
(O) The likely consequences of default on the
loan, including adverse credit reports,
delinquent debt collection procedures under
Federal law, and litigation, and a notice of
the institution's most recent cohort default
rate (defined in section 435(m)), an
explanation of the cohort default rate, the
most recent national average cohort default
rate, and the most recent national average
cohort default rate for the category of
institution described in section 435(m)(4) to
which the institution belongs.
(P) Information on the National Student Loan
Data System and how the borrower can access the
borrower's records.
(Q) The contact information for the
institution's financial aid office or other
appropriate office at the institution the
borrower may contact if the borrower has any
questions about the borrower's rights and
responsibilities or the terms and conditions of
the loan.
(5) Borrowers receiving parent plus loans for
dependent students.--The information to be provided
under paragraph (1)(A) to a borrower of a Federal
Direct PLUS Loan made on behalf of a dependent student
shall include the following:
(A) The information described in
subparagraphs (A) through (C) and (N) through
(Q) of paragraph (4).
(B) The option of the borrower to pay the
interest on the loan while the loan is in
deferment.
(C) For a first-time borrower of such loan--
(i) a statement of the anticipated
balance on the loan for which the
borrower is receiving counseling under
this subsection;
(ii) based on such anticipated
balance, the anticipated monthly
payment amount under the standard
repayment plan; and
(iii) an estimate of the projected
monthly payment amount under the
standard repayment plan, based on the
average cumulative indebtedness of
other borrowers of Federal Direct PLUS
Loans made on behalf of dependent
students who are in the same program of
study as the student on whose behalf
the borrower borrowed the loan.
(D) For a borrower with an outstanding
balance of principal or interest due on such
loan--
(i) a statement of the amount of such
outstanding balance;
(ii) based on such outstanding
balance, the anticipated monthly
payment amount under the standard
repayment plan; and
(iii) an estimate of the projected
monthly payment amount under the
standard repayment plan, based on--
(I) the outstanding balance
described in clause (i);
(II) the anticipated
outstanding balance on the loan
for which the borrower is
receiving counseling under this
subsection; and
(III) a projection for any
other Federal Direct PLUS Loan
made on behalf of the dependent
student that the borrower is
reasonably expected to accept
during the program of study of
such student based on at least
the expected increase in the
cost of attendance of such
program.
(E) Debt management strategies that are
designed to facilitate the repayment of such
indebtedness.
(F) An explanation that the borrower has the
options to prepay each loan, pay each loan on a
shorter schedule, and change repayment plans.
(G) For each Federal Direct PLUS Loan made on
behalf of a dependent student for which the
borrower is receiving counseling under this
subsection, the contact information for the
loan servicer of the loan and a link to such
servicer's Website.
(6) Annual loan acceptance.--Prior to making the
first disbursement of a loan made under part D (other
than a Federal Direct Consolidation Loan) to a borrower
for an award year, an eligible institution, shall, as
part of carrying out the counseling requirements of
this subsection for the loan, ensure that after
receiving the applicable counseling under paragraphs
(2), (4), and (5) for the loan the borrower accepts the
loan for such award year by--
(A) signing the master promissory note for
the loan;
(B) signing and returning to the institution
a separate written statement that affirmatively
states that the borrower accepts the loan; or
(C) electronically signing an electronic
version of the statement described in
subparagraph (B).
(m) Disclosures of Reimbursements for Service on Advisory
Boards.--
(1) Disclosure.--Each institution of higher education
participating in any program under this title shall
report, on an annual basis, to the Secretary, any
reasonable expenses paid or provided under section
140(d) of the Truth in Lending Act to any employee who
is employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other financial aid of
the institution. Such reports shall include--
(A) the amount for each specific instance of
reasonable expenses paid or provided;
(B) the name of the financial aid official,
other employee, or agent to whom the expenses
were paid or provided;
(C) the dates of the activity for which the
expenses were paid or provided; and
(D) a brief description of the activity for
which the expenses were paid or provided.
(2) Report to congress.--The Secretary shall
summarize the information received from institutions of
higher education under paragraph (1) in a report and
transmit such report annually to the authorizing
committees.
(n) Online Counseling Tools.--
(1) In general.--Beginning not later than 1 year
after the date of enactment of the Empowering Students
Through Enhanced Financial Counseling Act, the
Secretary shall maintain--
(A) an online counseling tool that provides
the exit counseling required under subsection
(b) and meets the applicable requirements of
this subsection; and
(B) an online counseling tool that provides
the annual counseling required under subsection
(l) and meets the applicable requirements of
this subsection.
(2) Requirements of tools.--In maintaining the online
counseling tools described in paragraph (1), the
Secretary shall ensure that each such tool is--
(A) consumer tested, in consultation with
other relevant Federal agencies, to ensure that
the tool is effective in helping individuals
understand their rights and obligations with
respect to borrowing a loan made under part D
or receiving a Federal Pell Grant;
(B) understandable to students receiving
Federal Pell Grants and borrowers of loans made
under part D; and
(C) freely available to all eligible
institutions.
(3) Record of counseling completion.--The Secretary
shall--
(A) use each online counseling tool described
in paragraph (1) to keep a record of which
individuals have received counseling using the
tool, and notify the applicable institutions of
the individual's completion of such counseling;
(B) in the case of a borrower who receives
annual counseling for a loan made under part D
using the tool described in paragraph (1)(B),
notify the borrower by when the borrower should
accept, in a manner described in subsection
(l)(6), the loan for which the borrower has
received such counseling; and
(C) in the case of a borrower described in
subsection (b)(1)(B) at an institution that
uses the online counseling tool described in
paragraph (1)(A) of this subsection, the
Secretary shall attempt to provide the
information described in subsection (b)(1)(A)
to the borrower through such tool.
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