[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1972 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1972
To increase college transparency, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2023
Mr. Cassidy (for himself, Mr. Cornyn, Mr. Grassley, Mr. Scott of South
Carolina, and Mr. Tuberville) introduced the following bill; which was
read twice and referred to the Committee on Health, Education, Labor,
and Pensions
_______________________________________________________________________
A BILL
To increase college transparency, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Lowering Education Costs and Debt
Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--COLLEGE TRANSPARENCY
Sec. 101. Postsecondary student data system.
Sec. 102. Repeal of prohibition on student data system.
Sec. 103. Institutional requirements.
Sec. 104. Transition provisions.
TITLE II--UNDERSTANDING THE TRUE COST OF COLLEGE
Sec. 201. Institution Financial Aid Offer Form.
Sec. 202. Mandatory form.
TITLE III--INFORMED STUDENT BORROWING
Sec. 301. Counseling and financial aid disclosures.
Sec. 302. Annual requirement to manually enter loan amount.
Sec. 303. Work study.
TITLE IV--STREAMLINING ACCOUNTABILITY AND VALUE IN EDUCATION FOR
STUDENTS
Sec. 401. Loan repayment simplification and income-driven repayment
reform.
Sec. 402. Taxpayer and consumer protection on student loans.
Sec. 403. Phase out of income-based repayment.
TITLE V--GRADUATE OPPORTUNITY AND AFFORDABLE LOANS
Sec. 501. Loan limits.
TITLE I--COLLEGE TRANSPARENCY
SEC. 101. POSTSECONDARY STUDENT DATA SYSTEM.
Section 132 of the Higher Education Act of 1965 (20 U.S.C. 1015a)
is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Postsecondary Student Data System.--
``(1) In general.--
``(A) Establishment of system.--Not later than 4
years after the date of enactment of the Lowering
Education Costs and Debt Act, the Commissioner of the
National Center for Education Statistics (referred to
in this subsection as the `Commissioner') shall develop
and maintain a secure and privacy-protected
postsecondary student-level data system in order to--
``(i) accurately evaluate student
enrollment patterns, progression, completion,
and postcollegiate outcomes, and higher
education costs and financial aid;
``(ii) assist with transparency,
institutional improvement, and analysis of
Federal aid programs;
``(iii) provide accurate, complete, and
customizable information for students and
families making decisions about postsecondary
education; and
``(iv) reduce the reporting burden on
institutions of higher education, in accordance
with section 104 of the Lowering Education
Costs and Debt Act.
``(B) Avoiding duplicated reporting.--
Notwithstanding any other provision of this section, to
the extent that another provision of this section
requires the same reporting or collection of data that
is required under this subsection, an institution of
higher education, or the Secretary or Commissioner,
shall use the reporting or data required for the
postsecondary student data system under this subsection
to satisfy both requirements.
``(C) Development process.--In developing the
postsecondary student data system described in this
subsection, the Commissioner shall--
``(i) focus on the needs of--
``(I) users of the data system; and
``(II) entities, including
institutions of higher education,
reporting to the data system;
``(ii) take into consideration, to the
extent practicable--
``(I) the guidelines outlined in
the U.S. Web Design Standards
maintained by the General Services
Administration and the Digital Services
Playbook and TechFAR Handbook for
Procuring Digital Services Using Agile
Processes of the U.S. Digital Service;
and
``(II) the relevant successor
documents or recommendations of such
guidelines;
``(iii) use modern, relevant privacy- and
security-enhancing technology, and enhance and
update the data system as necessary to carry
out the purpose of this subsection;
``(iv) ensure data privacy and security is
consistent with any relevant Federal law
relating to privacy or data security,
including--
``(I) the requirements of
subchapter II of chapter 35 of title
44, United States Code, specifying
security categorization under the
Federal Information Processing
Standards or any relevant successor of
such standards;
``(II) security requirements that
are consistent with the Federal agency
responsibilities in section 3554 of
title 44, United States Code, or any
relevant successor of such
responsibilities; and
``(III) security requirements,
guidelines, and controls consistent
with cybersecurity standards and best
practices developed by the National
Institute of Standards and Technology,
including frameworks, consistent with
section 2(c) of the National Institute
of Standards and Technology Act (15
U.S.C. 272(c)), or any relevant
successor of such frameworks;
``(v) follow Federal data minimization
practices to ensure only the minimum amount of
data is collected to meet the system's goals,
in accordance with Federal data minimization
standards and guidelines developed by the
National Institute of Standards and Technology;
and
``(vi) provide notice to students outlining
the data included in the system and how the
data are used.
``(2) Data elements.--
``(A) In general.--Not later than 4 years after the
date of enactment of the Lowering Education Costs and
Debt Act, the Commissioner, in consultation with the
Postsecondary Student Data System Advisory Committee
established under subparagraph (B), shall determine--
``(i) the data elements to be included in
the postsecondary student data system, in
accordance with subparagraphs (C) and (D); and
``(ii) how to include the data elements
required under subparagraph (C), and any
additional data elements selected under
subparagraph (D), in the postsecondary student
data system.
``(B) Postsecondary student data system advisory
committee.--
``(i) Establishment.--Not later than 2
years after the date of enactment of the
Lowering Education Costs and Debt Act, the
Commissioner shall establish a Postsecondary
Student Data System Advisory Committee
(referred to in this subsection as the
`Advisory Committee'), whose members shall
include--
``(I) the Chief Privacy Officer of
the Department or an official of the
Department delegated the duties of
overseeing data privacy at the
Department;
``(II) the Chief Security Officer
of the Department or an official of the
Department delegated the duties of
overseeing data security at the
Department;
``(III) representatives of diverse
institutions of higher education, which
shall include equal representation
between 2-year and 4-year institutions
of higher education, and from public,
nonprofit, and proprietary institutions
of higher education, including
minority-serving institutions;
``(IV) representatives from State
higher education agencies, entities,
bodies, or boards;
``(V) representatives of
postsecondary students;
``(VI) representatives from
relevant Federal agencies;
``(VII) individuals with expertise
in data privacy and security; and
``(VIII) other stakeholders
(including individuals with consumer
protection and postsecondary education
research).
``(ii) Requirements.--The Commissioner
shall ensure that the Advisory Committee--
``(I) adheres to all requirements
under chapter 10 of title 5, United
States Code (commonly known as the
`Federal Advisory Committee Act');
``(II) establishes operating and
meeting procedures and guidelines
necessary to execute its advisory
duties; and
``(III) is provided with
appropriate staffing and resources to
execute its advisory duties.
``(C) Required data elements.--The data elements in
the postsecondary student data system shall include, at
a minimum, the following:
``(i) Student-level data elements necessary
to calculate the information within the surveys
designated by the Commissioner as `student-
related surveys' in the Integrated
Postsecondary Education Data System (IPEDS), as
such surveys are in effect on the day before
the date of enactment of the Lowering Education
Costs and Debt Act, except that in the case
that collection of such elements would conflict
with subparagraph (F), such elements in
conflict with subparagraph (F) shall be
included in the aggregate instead of at the
student level.
``(ii) Student-level data elements
necessary to allow for reporting student
enrollment, persistence, retention, transfer,
and completion measures for all credential
levels separately (including certificate,
associate, baccalaureate, and advanced degree
levels), within and across institutions of
higher education (including across all
categories of institution level, control, and
predominant degree awarded). The data elements
shall allow for reporting about all such data
disaggregated by the following categories:
``(I) Enrollment status as a first-
time student, recent transfer student,
or other non-first-time student.
``(II) Attendance intensity,
whether full-time or part-time.
``(III) Credential-seeking status,
by credential level.
``(IV) Race or ethnicity, in a
manner that captures all the racial
groups specified in the most recent
American Community Survey of the Bureau
of the Census.
``(V) Age intervals.
``(VI) Gender.
``(VII) Program of study (as
applicable).
``(VIII) Military or veteran
benefit status (as determined based on
receipt of veteran's education
benefits, as defined in section
480(c)).
``(IX) Status as a distance
education student, whether exclusively
or partially enrolled in distance
education.
``(X) Federal Pell Grant recipient
status under section 401 and Federal
loan recipient status under title IV,
provided that the collection of such
information complies with paragraph
(1)(B).
``(D) Other data elements.--
``(i) In general.--The Commissioner may,
after consultation with the Advisory Committee
and provision of a public comment period,
include additional data elements in the
postsecondary student data system, such as
those described in clause (ii), if those data
elements--
``(I) are necessary to ensure that
the postsecondary data system fulfills
the purposes described in paragraph
(1)(A); and
``(II) are consistent with data
minimization principles, including the
collection of only those additional
elements that are necessary to ensure
such purposes.
``(ii) Data elements.--The data elements
described in clause (i) may include--
``(I) status as a first generation
college student, as defined in section
402A(h);
``(II) economic status;
``(III) participation in
postsecondary remedial coursework or
gateway course completion; or
``(IV) other data elements that are
necessary in accordance with clause
(i).
``(E) Reevaluation.--Not less than once every 3
years after the implementation of the postsecondary
student data system described in this subsection, the
Commissioner, in consultation with the Advisory
Committee described in subparagraph (B), shall review
the data elements included in the postsecondary student
data system and may revise the data elements to be
included in such system.
``(F) Prohibitions.--The Commissioner shall not
include individual health data (including data relating
to physical health or mental health), student
discipline records or data, elementary and secondary
education data, an exact address, citizenship status,
migrant status, or national origin status for students
or their families, course grades, postsecondary
entrance examination results, political affiliation, or
religion in the postsecondary student data system under
this subsection.
``(3) Periodic matching with other federal data systems.--
``(A) Data sharing agreements.--
``(i) The Commissioner shall ensure secure
and privacy-protected periodic data matches by
entering into data sharing agreements with each
of the following Federal agencies and offices:
``(I) The Secretary of the Treasury
and the Commissioner of the Internal
Revenue Service, in order to calculate
aggregate program- and institution-
level earnings of postsecondary
students.
``(II) The Secretary of Defense, in
order to assess the use of
postsecondary educational benefits and
the outcomes of servicemembers.
``(III) The Secretary of Veterans
Affairs, in order to assess the use of
postsecondary educational benefits and
outcomes of veterans.
``(IV) The Director of the Bureau
of the Census, in order to assess the
earnings outcomes of former
postsecondary education students.
``(V) The Chief Operating Officer
of the Office of Federal Student Aid,
in order to analyze the use of
postsecondary educational benefits
provided under this Act.
``(VI) The Commissioner of the
Social Security Administration, in
order to evaluate labor market outcomes
of former postsecondary education
students.
``(VII) The Commissioner of the
Bureau of Labor Statistics, in order to
assess the wages of former
postsecondary education students.
``(ii) The heads of Federal agencies and
offices described under clause (i) shall enter
into data sharing agreements with the
Commissioner to ensure secure and privacy-
protected periodic data matches as described in
this paragraph.
``(B) Categories of data.--The Commissioner shall,
at a minimum, seek to ensure that the secure and
privacy-protected periodic data matches described in
subparagraph (A) permit consistent reporting of the
following categories of data for all postsecondary
students:
``(i) Enrollment, retention, transfer, and
completion outcomes for all postsecondary
students.
``(ii) Financial indicators for
postsecondary students receiving Federal grants
and loans, including grant and loan aid by
source, cumulative student debt, loan repayment
status, and repayment plan.
``(iii) Post-completion outcomes for all
postsecondary students, including earnings,
employment, and further education, by program
of study and credential level and as measured--
``(I) immediately after leaving
postsecondary education; and
``(II) at time intervals
appropriate to the credential sought
and earned.
``(C) Periodic data match streamlining and
confidentiality.--
``(i) Streamlining.--In carrying out the
secure and privacy-protected periodic data
matches under this paragraph, the Commissioner
shall--
``(I) ensure that such matches are
not continuous, but occur only
periodically at appropriate intervals,
as determined by the Commissioner to
meet the goals of subparagraph (A); and
``(II) seek to--
``(aa) streamline the data
collection and reporting
requirements for institutions
of higher education;
``(bb) minimize duplicative
reporting across or within
Federal agencies or
departments, including
reporting requirements
applicable to institutions of
higher education under the
Workforce Innovation and
Opportunity Act (29 U.S.C. 3101
et seq.) and the Carl D.
Perkins Career and Technical
Education Act of 2006;
``(cc) protect student
privacy; and
``(dd) streamline the
application process for student
loan benefit programs available
to borrowers based on data
available from different
Federal data systems.
``(ii) Review.--Not less often than once
every 3 years after the establishment of the
postsecondary student data system under this
subsection, the Commissioner, in consultation
with the Advisory Committee, shall review
methods for streamlining data collection from
institutions of higher education and minimizing
duplicative reporting within the Department and
across Federal agencies that provide data for
the postsecondary student data system.
``(iii) Confidentiality.--The Commissioner
shall ensure that any periodic matching or
sharing of data through periodic data system
matches established in accordance with this
paragraph--
``(I) complies with the security
and privacy protections described in
paragraph (1)(C)(iv) and other Federal
data protection protocols;
``(II) follows industry best
practices commensurate with the
sensitivity of specific data elements
or metrics;
``(III) does not result in the
creation of a single standing, linked
Federal database at the Department that
maintains the information reported
across other Federal agencies; and
``(IV) discloses to postsecondary
students what data are included in the
data system and periodically matched
and how the data are used.
``(iv) Correction.--The Commissioner, in
consultation with the Advisory Committee, shall
establish a process for students to request
access to only their personal information for
inspection and request corrections to
inaccuracies in a manner that protects the
student's personally identifiable information.
The Commissioner shall respond in writing to
every request for a correction from a student.
``(4) Publicly available information.--
``(A) In general.--The Commissioner shall make the
summary aggregate information described in subparagraph
(C), at a minimum, publicly available through a user-
friendly consumer information website and analytic tool
that--
``(i) provides appropriate mechanisms for
users to customize and filter information by
institutional and student characteristics;
``(ii) allows users to build summary
aggregate reports of information, including
reports that allow comparisons across multiple
institutions and programs, subject to
subparagraph (B);
``(iii) uses appropriate statistical
disclosure limitation techniques necessary to
ensure that the data released to the public
cannot be used to identify specific
individuals; and
``(iv) provides users with appropriate
contextual factors to make comparisons, which
may include national median figures of the
summary aggregate information described in
subparagraph (C).
``(B) No personally identifiable information
available.--The summary aggregate information described
in this paragraph shall not include personally
identifiable information.
``(C) Summary aggregate information available.--The
summary aggregate information described in this
paragraph shall, at a minimum, include each of the
following for each institution of higher education:
``(i) Measures of student access,
including--
``(I) admissions selectivity and
yield; and
``(II) enrollment, disaggregated by
each category described in paragraph
(2)(C)(ii).
``(ii) Measures of student progression,
including retention rates and persistence
rates, disaggregated by each category described
in paragraph (2)(C)(ii).
``(iii) Measures of student completion,
including--
``(I) transfer rates and completion
rates, disaggregated by each category
described in paragraph (2)(C)(ii); and
``(II) number of completions,
disaggregated by each category
described in paragraph (2)(C)(ii).
``(iv) Measures of student costs,
including--
``(I) tuition, required fees, total
cost of attendance, and net price after
total grant aid, disaggregated by in-
State tuition or in-district tuition
status (if applicable), program of
study (if applicable), and credential
level; and
``(II) typical grant amounts and
loan amounts received by students
reported separately from Federal,
State, local, and institutional
sources, and cumulative debt,
disaggregated by each category
described in paragraph (2)(C)(ii) and
completion status.
``(v) Measures of postcollegiate student
outcomes, including employment rates, mean and
median earnings, loan repayment and default
rates, and further education rates. These
measures shall--
``(I) be disaggregated by each
category described in paragraph
(2)(C)(ii) and completion status; and
``(II) be measured immediately
after leaving postsecondary education
and at time intervals appropriate to
the credential sought or earned.
``(D) Development criteria.--In developing the
method and format of making the information described
in this paragraph publicly available, the Commissioner
shall--
``(i) focus on the needs of the users of
the information, which will include students,
families of students, potential students,
researchers, and other consumers of education
data;
``(ii) take into consideration, to the
extent practicable, the guidelines described in
paragraph (1)(C)(ii)(I), and relevant successor
documents or recommendations of such
guidelines;
``(iii) use modern, relevant technology and
enhance and update the postsecondary student
data system with information, as necessary to
carry out the purpose of this paragraph;
``(iv) ensure data privacy and security in
accordance with standards and guidelines
developed by the National Institute of
Standards and Technology, and in accordance
with any other Federal law relating to privacy
or security, including complying with the
requirements of subchapter II of chapter 35 of
title 44, United States Code, specifying
security categorization under the Federal
Information Processing Standards, and security
requirements, and setting of National Institute
of Standards and Technology security baseline
controls at the appropriate level; and
``(v) conduct consumer testing to determine
how to make the information as meaningful to
users as possible.
``(5) Permissible disclosures of data.--
``(A) Data reports and queries.--
``(i) In general.--Not later than 4 years
after the date of enactment of the Lowering
Education Costs and Debt Act, the Commissioner
shall develop and implement a secure and
privacy-protected process for making student-
level, non-personally identifiable information,
with direct identifiers removed, from the
postsecondary student data system available for
vetted research and evaluation purposes
approved by the Commissioner in a manner
compatible with practices for disclosing
National Center for Education Statistics
restricted-use survey data as in effect on the
day before the date of enactment of the
Lowering Education Costs and Debt Act, or by
applying other research and disclosure
restrictions to ensure data privacy and
security. Such process shall be approved by the
National Center for Education Statistics'
Disclosure Review Board (or successor body).
``(ii) Providing data reports and queries
to institutions and states.--
``(I) In general.--The Commissioner
shall provide feedback reports, at
least annually, to each institution of
higher education, each postsecondary
education system that fully
participates in the postsecondary
student data system, and each State
higher education body as designated by
the governor.
``(II) Feedback reports.--The
feedback reports provided under this
clause shall include program-level and
institution-level information from the
postsecondary student data system
regarding students who are associated
with the institution or, for State
representatives, the institutions
within that State, on or before the
date of the report, on measures
including student mobility and
workforce outcomes, provided that the
feedback aggregate summary reports
protect the privacy of individuals.
``(III) Determination of content.--
The content of the feedback reports
shall be determined by the Commissioner
in consultation with the Advisory
Committee.
``(iii) Permitting state data queries.--The
Commissioner shall, in consultation with the
Advisory Committee and as soon as practicable,
create a process through which States may
submit lists of secondary school graduates
within the State to receive summary aggregate
outcomes for those students who enrolled at an
institution of higher education, including
postsecondary enrollment and college
completion, provided that those data protect
the privacy of individuals and that the State
data submitted to the Commissioner are not
stored in the postsecondary education system.
``(iv) Regulations.--The Commissioner shall
promulgate regulations to ensure fair, secure
and privacy-protected, and equitable access to
data reports and queries under this paragraph.
``(B) Disclosure limitations.--In carrying out the
public reporting and disclosure requirements of this
subsection, the Commissioner shall use appropriate
statistical disclosure limitation techniques necessary
to ensure that the data released to the public cannot
include personally identifiable information or be used
to identify specific individuals.
``(C) Sale of data prohibited.--Data collected
under this subsection, including the public-use data
set and data comprising the summary aggregate
information available under paragraph (4), shall not be
sold to any third party by the Commissioner, including
any institution of higher education or any other
entity.
``(D) Limitation on use by other federal
agencies.--
``(i) In general.--The Commissioner shall
not allow any other Federal agency to use data
collected under this subsection for any purpose
except--
``(I) for vetted research and
evaluation conducted by the other
Federal agency, as described in
subparagraph (A)(i); or
``(II) for a purpose explicitly
authorized by this Act.
``(ii) Prohibition on limitation of
services.--The Secretary, or the head of any
other Federal agency, shall not use data
collected under this subsection to limit
services to students.
``(E) Law enforcement.--Personally identifiable
information collected under this subsection shall not
be used for any Federal, State, or local law
enforcement activity or any other activity that would
result in adverse action against any student or a
student's family, including debt collection activity or
enforcement of immigration laws.
``(F) Limitation of use for federal rankings or
summative rating system.--The comprehensive data
collection and analysis necessary for the postsecondary
student data system under this subsection shall not be
used by the Secretary or any Federal entity to
establish any Federal ranking system of institutions of
higher education or a system that results in a
summative Federal rating of institutions of higher
education.
``(G) Rule of construction.--Nothing in this
paragraph shall be construed to prevent the use of
individual categories of aggregate information to be
used for accountability purposes.
``(H) Rule of construction regarding commercial use
of data.--Nothing in this paragraph shall be construed
to prohibit third-party entities from using publicly
available information in this data system for
commercial use.
``(6) Submission of data.--
``(A) Required submission.--Each institution of
higher education participating in a program under title
IV, or the assigned agent of such institution, shall,
for each eligible program, in accordance with section
487(a)(17), collect, and submit to the Commissioner,
the data requested by the Commissioner to carry out
this subsection.
``(B) Voluntary submission.--Any institution of
higher education not participating in a program under
title IV may voluntarily participate in the
postsecondary student data system under this subsection
by collecting and submitting data to the Commissioner,
as the Commissioner may request to carry out this
subsection.
``(C) Personally identifiable information.--In
accordance with paragraph (2)(C)(i), if the submission
of an element of student-level data is prohibited under
paragraph (2)(F) (or otherwise prohibited by law), the
institution of higher education shall submit that data
to the Commissioner in the aggregate.
``(7) Unlawful willful disclosure.--
``(A) In general.--It shall be unlawful for any
person who obtains or has access to personally
identifiable information in connection with the
postsecondary student data system described in this
subsection to willfully disclose to any person (except
as authorized in this Act or by any Federal law) such
personally identifiable information.
``(B) Penalty.--Any person who violates
subparagraph (A) shall be subject to a penalty
described under section 3572(f) of title 44, United
States Code, and section 183(d)(6) of the Education
Sciences Reform Act of 2002 (20 U.S.C. 9573(d)(6)).
``(C) Employee of officer of the united states.--If
a violation of subparagraph (A) is committed by any
officer or employee of the United States, the officer
or employee shall be dismissed from office or
discharged from employment upon conviction for the
violation.
``(8) Data security.--The Commissioner shall produce and
update as needed guidance and regulations relating to privacy,
security, and access which shall govern the use and disclosure
of data collected in connection with the activities authorized
in this subsection. The guidance and regulations developed and
reviewed shall protect data from unauthorized access, use, and
disclosure, and shall include--
``(A) an audit capability, including mandatory and
regularly conducted audits;
``(B) access controls;
``(C) requirements to ensure sufficient data
security, quality, validity, and reliability;
``(D) confidentiality protection in accordance with
the applicable provisions of subchapter III of chapter
35 of title 44, United States Code;
``(E) appropriate and applicable privacy and
security protection, including data retention and
destruction protocols and data minimization, in
accordance with the most recent Federal standards
developed by the National Institute of Standards and
Technology; and
``(F) protocols for managing a breach, including
breach notifications, in accordance with the standards
of National Center for Education Statistics.
``(9) Data collection.--The Commissioner shall ensure that
data collection, maintenance, and use under this subsection
complies with section 552a of title 5, United States Code.
``(10) Definitions.--In this subsection:
``(A) Institution of higher education.--The term
`institution of higher education' has the meaning given
the term in section 102.
``(B) Minority-serving institution.--The term
`minority-serving institution' means an institution of
higher education listed in section 371(a).
``(C) Personally identifiable information.--The
term `personally identifiable information' means
personally identifiable information within the meaning
of section 444 of the General Education Provisions
Act.''.
SEC. 102. REPEAL OF PROHIBITION ON STUDENT DATA SYSTEM.
Section 134 of the Higher Education Act of 1965 (20 U.S.C. 1015c)
is repealed.
SEC. 103. INSTITUTIONAL REQUIREMENTS.
(a) In General.--Paragraph (17) of section 487(a) of the Higher
Education Act of 1965 (20 U.S.C. 1094(a)) is amended to read as
follows:
``(17) The institution or the assigned agent of the
institution will collect and submit data to the Commissioner
for Education Statistics in accordance with section 132(l), the
nonstudent related surveys within the Integrated Postsecondary
Education Data System (IPEDS), or any other Federal institution
of higher education data collection effort (as designated by
the Secretary), in a timely manner and to the satisfaction of
the Secretary.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date that is 4 years after the date of enactment of
this Act.
SEC. 104. TRANSITION PROVISIONS.
The Secretary of Education and the Commissioner for Education
Statistics shall take such steps as are necessary to ensure that the
development and maintenance of the postsecondary student data system
required under section 132(l) of the Higher Education Act of 1965, as
added by section 101 of this Act, occurs in a manner that reduces the
reporting burden for entities that reported into the Integrated
Postsecondary Education Data System (IPEDS).
TITLE II--UNDERSTANDING THE TRUE COST OF COLLEGE
SEC. 201. INSTITUTION FINANCIAL AID OFFER FORM.
Section 484 of the Higher Education Opportunity Act (20 U.S.C. 1092
note) is amended to read as follows:
``SEC. 484. INSTITUTION FINANCIAL AID OFFER FORM.
``(a) Standard Format and Terminology.--The Secretary of Education,
in consultation with the heads of relevant Federal agencies, shall
develop standard terminology and a standard format for financial aid
offer forms based on recommendations from representatives of students,
veterans, servicemembers, students' families, institutions of higher
education (including community colleges, for-profit institutions, four-
year public institutions, and four-year private nonprofit
institutions), financial aid experts, secondary school and
postsecondary counselors, nonprofit organizations, and consumer groups.
``(b) Key Required Contents for Offer Form.--The standard format
developed under subsection (a) shall include, in a consumer-friendly
manner that is simple and understandable, a form titled `Financial Aid
Offer', which shall include the following items, with costs listed
first followed by grants and scholarships, clearly separated from each
other with separate headings:
``(1) Cost information.--
``(A) Information on the student's estimated cost
of attendance, including the following:
``(i) Total direct costs, including the
component totals each for--
``(I) tuition and fees, as
determined under section 472 of the
Higher Education Act of 1965 (20 U.S.C.
1087ll); and
``(II) college-sponsored housing
and food costs (as determined based on
the costs for room and board under such
section).
``(ii) Total estimated other expenses,
including--
``(I) the component totals each for
housing and food costs for students who
reside off-campus; and
``(II) for all students, books,
supplies, transportation, and
miscellaneous personal expenses (which
may include costs of health insurance
and dependent care), as determined
under section 472 of the Higher
Education Act of 1965 (20 U.S.C.
1087ll).
``(B) An indication of the academic period covered
by the financial aid offer, and an explanation that the
financial aid offered may change for academic periods
not covered by the aid offer or by program.
``(C) An indication of whether cost and aid
estimates are based on full-time or part-time
enrollment.
``(D) An indication, as applicable, about whether
the tuition and fees are estimated based on the
previous year, or are set, for the academic period
indicated in accordance with subparagraph (B).
``(2) Grants and scholarships.--The aggregate amount of
grants and scholarships by source that the student does not
have to repay, such as grant aid offered under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and grant
aid offered through other Federal programs, grant aid offered
by the institution, grant aid offered by the State, and, if
known, grant aid from an outside source to the student for such
academic period, including--
``(A) a disclosure that the grants and scholarships
do not have to be repaid; and
``(B) if institutional aid is included--
``(i) the conditions under which the
student can expect to receive similar amounts
of such financial aid for each academic period
the student is enrolled at the institution; and
``(ii) whether the institutional aid offer
may change if grants or scholarships from
outside sources are applied after the student
receives the offer form, and, if applicable,
how that aid will change.
``(3) Net price.--
``(A) The net price that the student, or the
student's family on behalf of the student, is estimated
to have to pay for the student to attend the
institution for such academic period, equal to--
``(i) the cost of attendance as described
in paragraph (1)(A) for the student for the
period indicated in paragraph (1)(B); minus
``(ii) the amount of grant aid described in
paragraph (2) that is included in the financial
aid offer form.
``(B) A disclosure that the net price is an
estimate of the total expenses for the year and not
equivalent to the amount the student will owe directly
to the institution.
``(4) Loans.--
``(A) Information on any loan under part D or part
E of title IV of the Higher Education Act of 1965 (20
U.S.C. 1087a et seq.; 20 U.S.C. 1087aa et seq.) (except
a Federal Direct PLUS Loan under part D of that Act)
that the institution recommends for the student for the
academic period covered by the offer, which shall be
made--
``(i) with clear use of the word `loan' to
describe the recommended loan amounts; and
``(ii) with clear labeling of subsidized
and unsubsidized loans.
``(B) A disclosure that such loans have to be
repaid and a disclosure that the student can borrow a
lesser or, if applicable, greater amount than the
recommended loan amount.
``(C) A disclosure that the interest rates and fees
on such loans are set annually and affect total cost
over time, and a link to a Department of Education
website that includes current information on interest
rates and fees.
``(D) A link to the Department of Education's
repayment calculator website for students with
instruction that this website contains customizable
estimates of expected repayment costs under different
loan repayment plans.
``(5) Process for accepting or declining aid and next
steps.--
``(A) The deadlines and a summary of the process
(including the next steps) for--
``(i) accepting the financial aid offered
in the financial aid offer form;
``(ii) requesting higher loan amounts if
recommended loan amounts were included; and
``(iii) declining aid offered in the form.
``(B) Information on when and how direct costs to
the institution must be paid.
``(C) A disclosure that verification of financial
circumstances may require the student to submit further
documentation.
``(D) Information about where a student or the
student's family can seek additional information
regarding the financial aid offered, including contact
information for the institution's financial aid office
and the Department of Education's website on financial
aid.
``(6) Additional information.--Any other information the
Secretary of Education, in consultation with the heads of
relevant Federal agencies, including the Secretary of the
Treasury and the Director of the Bureau of Consumer Financial
Protection, determines necessary (based on the results of the
consumer testing under paragraph (g)(2)) so that students and
parents can make informed loan borrowing decisions, which may
include--
``(A) the most recent cohort default rate, as
defined in section 435(m) of the Higher Education Act
of 1965 (20 U.S.C. 1085(m)) with respect to an
institution where more than 30 percent of enrolled
students borrow loans to pay for their education, and a
comparison to the national average cohort default rate;
``(B) the percentage of students at the institution
who borrow student loans;
``(C) the median loan debt at graduation for
students at the institution (clearly marked as
including only Federal loans if private loan data are
not available to be included); and
``(D) any additional calculations determined
necessary for ensuring that students understand full
college costs, financial aid gaps, and options for
covering those gaps.
``(c) Other Required Contents for the Offer Form.--The standard
form developed under subsection (a) shall include, in addition to the
information described in subsection (b), the following information to
be included on the financial aid offer form in a concise format
determined by the Secretary of Education, in consultation with the
heads of relevant Federal agencies:
``(1) At the institution's discretion--
``(A) additional options and potential resources
for paying for the amount listed in subsection (b)(3),
such as tuition payment plans; and
``(B) a disclosure that Federal Direct PLUS Loans
or private education loans may be available to cover
remaining need, except that the institution may not
include an amount for Federal Direct PLUS Loans or
private education loans and must include a disclosure
for Federal Direct PLUS Loans that such loans are
subject to an additional application process, and a
disclosure that both types of loans have to be repaid
by the borrower, and may not be eligible for all the
benefits available for Federal Direct Stafford Loans or
Federal Direct Unsubsidized Stafford Loans.
``(2) The following information relating to private student
loans:
``(A) A statement that students considering
borrowing to cover the cost of attendance should
consider available Federal student loans prior to
applying for private education loans, including an
explanation that Federal student loans offer generally
more favorable terms and beneficial repayment options
than private loans.
``(B) The impact of a proposed private education
loan on the student's potential eligibility for other
financial assistance, including Federal financial
assistance under title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070 et seq.).
``(C) A statement explaining the student's ability
to select a private educational lender of the student's
choice.
``(3) Information on work-study employment opportunities,
offered in accordance with part C of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087-51 et seq.) including a
disclosure that the work-study aid offered is subject to the
availability of qualified employment opportunities and is
disbursed over time as earned by the student. Work-study
employment opportunities (or a student's potential income based
on those opportunities) shall not be included in the category
of financial aid described under subsection (b)(2).
``(d) Additional Requirements for Financial Aid Offer Form.--The
financial aid offer form shall meet the following requirements:
``(1) Include, in addition to the requirements described in
subsections (b) and (c), a concise summary, in plain language,
of--
``(A) the terms and conditions of financial aid
recommended under paragraphs (2) and (4) of subsection
(b) and subsection (c)(3), and a method to provide
students with additional information about such terms
and conditions, such as links to the supplementary
information; and
``(B) Federal, State, or institutional conditions
required to receive and renew financial aid and a
method to provide students with additional information
about these conditions, such as links to the
supplementary information.
``(2) Clearly distinguish between the aid offered under
paragraphs (2) and (4) of subsection (b) and subsection (c)(3),
by including a subtotal for the aid offered in each of such
paragraphs and by refraining from commingling the different
types of aid described in such paragraphs.
``(3) Use standard terminology and definitions, as
described in subsection (e)(1) and use plain language where
possible.
``(4) If an institution's recommended Federal student loan
aid offered in subsection (b)(4) is less than the Federal
maximum available to the student, the institution shall provide
additional information on Federal student loans, including the
types and amounts for which the student is eligible in an
attached document or web page.
``(5) Use the standard offer form described in subsection
(e)(2).
``(6) Include the standardized statement regarding the
possible availability of Federal education benefits, as
established by the Secretary in accordance with subsection
(e)(3).
``(7) Include a delivery confirmation for electronic
financial aid offer forms, except that receipt of the financial
aid offer form shall not be considered an acceptance or
rejection of aid by the student.
``(8) With respect to dependent students, any reference to
private education loans shall be accompanied by--
``(A) information about the availability of, and
terms and conditions associated with, Federal Direct
PLUS Loans under section 455 of the Higher Education
Act of 1965 (20 U.S.C. 1087e) for the student's parents
regardless of family income; and
``(B) a notification of the student's increased
eligibility for Federal student loans under title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.) if the student's parents are not able to borrow
under the Federal Direct PLUS Loan program.
``(e) Standard Information Established by the Secretary.--
``(1) Standard terminology.--Not later than 3 months after
the date of enactment of the Lowering Education Costs and Debt
Act, the Secretary of Education, in consultation with the heads
of relevant Federal agencies, including the Secretary of the
Treasury and the Director of the Consumer Financial Protection
Bureau, representatives of institutions of higher education,
nonprofit consumer groups, students, and secondary school and
higher education guidance counselors, shall establish standard
terminology and definitions for the terms described in
subsection (b).
``(2) Standard form.--
``(A) In general.--The Secretary of Education shall
develop multiple draft financial aid offer forms for
consumer testing, carry out consumer testing for such
forms, and establish a finalized standard financial aid
offer form, in accordance with the process established
in subsection (g) and the requirements of this section.
``(B) Separate financial aid offer forms.--The
Secretary may develop separate financial aid offer
forms for--
``(i) undergraduate students and graduate
students; and
``(ii) first-time students and returning
students.
``(3) Additional benefits.--The Secretary of Education, in
consultation with the heads of relevant Federal agencies,
including the Secretary of the Treasury, the Secretary of
Veterans Affairs, the Secretary of Defense, and the Director of
the Consumer Financial Protection Bureau, shall establish
standard language notifying students that they may be eligible
for education benefits (and where students can locate more
information about such benefits) including benefits in
accordance with each of the following:
``(A) Chapter 30, 31, 32, 33, 34, or 35 of title
38, United States Code.
``(B) Chapter 101, 105, 106A, 1606, 1607, or 1608
of title 10, United States Code.
``(C) Section 1784a, 2005, or 2007 of title 10,
United States Code.
``(f) Supplemental Information; Removal of Information.--
``(1) Nothing in this section shall preclude an institution
from supplementing the financial aid offer form with additional
information if such additional information supplements the
financial aid offer form and is not located on the financial
aid offer form, and provided such information utilizes the same
standard terminology identified in subsection (e)(1).
``(2) Nothing in this section shall preclude an institution
from deleting a required item if the student is ineligible for
such aid.
``(g) Development of Financial Aid Offer Form.--
``(1) Draft form.--Not later than 9 months after the date
of enactment of the Lowering Education Costs and Debt Act, the
Secretary of Education, in consultation with the heads of
relevant Federal agencies, including the Secretary of the
Treasury and the Director of the Consumer Financial Protection
Bureau, representatives of institutions of higher education,
nonprofit consumer groups, students, and secondary school and
higher education guidance counselors, shall design and produce
multiple draft financial aid offer forms for consumer testing
with postsecondary students or prospective students. In
developing that form, the Secretary shall ensure--
``(A) that the headings described in paragraphs (1)
through (4) of subsection (b) are in the same font,
appear in the same order, and are displayed prominently
on the financial aid offer form, such that none of that
information is inappropriately omitted or de-
emphasized;
``(B) that the other information required in
subsection (b) appears in a standard format and design
on the financial aid offer form; and
``(C) that the institution may include a logo or
brand alongside the title of the financial aid offer
form.
``(2) Consumer testing.--
``(A) In general.--Not later than 9 months after
the date of enactment of the Lowering Education Costs
and Debt Act, the Secretary of Education, in
consultation with the heads of relevant Federal
agencies, shall establish a process to submit the
financial aid offer form drafts developed under
paragraph (1) for consumer testing among
representatives of students (including low-income
students, first generation college students, adult
students, veterans, servicemembers, and prospective
students), students' families (including low-income
families, families with first generation college
students, and families with prospective students),
institutions of higher education, secondary school and
postsecondary counselors, and nonprofit consumer
groups.
``(B) Pilot.--During such consumer testing, the
Secretary shall ensure that not less than 16 and not
more than 24 eligible institutions use the draft forms
developed under paragraph (1), including institutions--
``(i) that reflect a proportionate
representation (based on the total number of
students enrolled in postsecondary education)
of community colleges, for-profit institutions,
four-year public institutions, and four-year
private nonprofit institutions; and
``(ii) that reflect geographic diversity.
``(C) Length of consumer testing.--The Secretary of
Education shall ensure that the consumer testing under
this paragraph lasts no longer than 8 months after the
process for consumer testing is developed under
subparagraph (A).
``(3) Final form.--
``(A) In general.--The results of consumer testing
under paragraph (2) shall be used in the final
development of the financial aid offer form.
``(B) Reporting requirement.--Not later than 3
months after the date the consumer testing under
paragraph (2) concludes, the Secretary of Education
shall submit to Congress and publish on its website the
final standard financial aid offer form and a report
detailing the results of such testing, including
whether the Secretary of Education added any additional
items to the standard financial aid offer form pursuant
to subsection (b)(6).
``(4) Authority to modify.--The Secretary of Education may
modify the definitions, terms, formatting, and design of the
financial aid offer form based on the results of consumer
testing required under this subsection and before finalizing
the form, or in subsequent consumer testing. The Secretary may
also recommend additional changes to Congress.''.
SEC. 202. MANDATORY FORM.
Part B of title I of the Higher Education Act of 1965 (20 U.S.C.
1011 et seq.) is amended by adding at the end the following:
``SEC. 124. USE OF MANDATORY FINANCIAL AID OFFER FORM AND TERMS.
``(a) In General.--Notwithstanding any other provision of law, each
institution of higher education that receives Federal financial
assistance under this Act shall--
``(1) use the financial aid offer form developed under
section 484 of the Higher Education Opportunity Act (20 U.S.C.
1092 note) in providing paper, mobile-optimized offers, or
other electronic offers to all students who apply for aid and
are accepted at the institution; and
``(2) use the standard terminology and definitions
developed by the Secretary of Education under subsection (e)(1)
of that Act for all communications from the institution related
to financial aid offers.
``(b) Effective Dates.--The requirements under this section shall
take effect at the start of the first award year after the Secretary of
Education finalizes the standard terminology and form developed in
accordance with section 484 of the Higher Education Opportunity Act (20
U.S.C. 1092 note).''.
``(c) Administrative Procedures.--Section 492 of the Higher
Education Act (20 U.S.C. 1098a) shall not apply with respect to
regulations promulgated in accordance with this section.''.
TITLE III--INFORMED STUDENT BORROWING
SEC. 301. COUNSELING AND FINANCIAL AID DISCLOSURES.
Section 485(l) of the Higher Education Act of 1965 (20 U.S.C.
1092(l)) is amended--
(1) in the subsection heading, by striking ``Entrance'';
(2) in paragraph (1)(A)--
(A) in the matter preceding clause (i), by striking
``a disbursement to a first-time borrower'' and
inserting ``the first disbursement to a borrower in
each award year''; and
(B) in the matter preceding subclause (I) of
paragraph clause (ii), by striking ``may'' and
inserting ``shall'';
(3) in paragraph (2)--
(A) by redesignating subparagraphs (A) through (K)
as subparagraphs (B) through (L);
(B) by inserting before subparagraph (B), as so
redesignated, the following:
``(A) An explanation that the borrower will need to
affirmatively determine and manually enter, in
accordance with subsection (n), the Federal loan amount
that the borrower will borrow (which may be equal to or
less than the Federal loan amount for which the
borrower is eligible) for each award year.'';
(C) by striking subparagraph (G) and inserting the
following:
``(G) Sample monthly repayment amounts, under a
standard repayment plan and under the income-driven
repayment plan that had the highest enrollment in the
previous year for borrowers (excluding parent
borrowers), based on--
``(i)(I) the median levels of indebtedness,
as appropriate, of--
``(aa) undergraduate borrowers of
Federal Direct Stafford Loans or
Federal Unsubsidized Stafford Loans who
were enrolled in the institution;
``(bb) graduate borrowers of
Federal Direct Stafford Loans, Federal
Unsubsidized Stafford Loans, or Federal
Direct Plus Loans who were enrolled in
the institution; and
``(cc) parent borrowers of Federal
Direct Plus Loans made on behalf of
dependent students who were enrolled at
the institution;
``(II) the median cumulative indebtedness
of borrowers of loans described in subclause
(I) in the same program as the borrower at the
same institution; and
``(ii) the median annual earnings for
individuals who attended the institution, as
described in subparagraph (N).''; and
(D) by adding at the end the following:
``(M) A statement that the borrower does not have
to accept the full amount of loans for which the
borrower is eligible, and an explanation that loan
eligibility calculations are determined based on a cost
of attendance that may include expenses such as
housing, food, and transportation.
``(N) The most recent College Scorecard information
(or information from a similar successor website) that
shows the median annual earnings of students who
received Federal student aid and who are no longer
enrolled at the institution and are working, at the
time that is 10 years after the date of such students'
entry to the institution--
``(i) for individuals who were enrolled in
the institution; and
``(ii) if available through the College
Scorecard (or similar successor website), for
individuals who were enrolled in the borrower's
undergraduate or graduate program.
``(O) The percentage of borrowers who attended the
institution and have completed or are no longer
enrolled that are in active repayment (as compared to
all borrowers who attended the institution and have
completed or are no longer enrolled).
``(P) For undergraduate borrowers, the completion
rate of the institution, as available through the
College Scorecard (or similar successor website), for
the most recent year for which data are available.
``(Q) A statement that--
``(i) the statistics provided under this
paragraph are averages and median values based
on past years;
``(ii) the borrower's repayment amounts,
median earnings, and likelihood of completion
may vary from such statistics; and
``(iii) as appropriate, parent borrowers
should be aware that information about the
median earnings, completion rate, and
percentage of borrowers in active repayment is
based on data that excludes parent borrowers.
``(R) A statement in writing and in a form the
borrower may keep, of the annual percentage rate
applicable to the loan based on a 10-year standard
repayment plan, taking into account--
``(i) the amount of the loan;
``(ii) the stated interest rate of the
loan;
``(iii) the standard term for a loan of the
same type;
``(iv) any fees or additional costs
associated with the loan; and
``(v) any capitalization of interest on the
loan.''; and
(4) by adding at the end the following:
``(3) Information from the department of education.--The
Secretary shall provide institutions with the data and
statistics necessary to enable institutions to carry out this
subsection.''.
SEC. 302. ANNUAL REQUIREMENT TO MANUALLY ENTER LOAN AMOUNT.
Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092),
as amended by section 301, is further amended by adding at the end the
following:
``(n) Annual Requirement To Manually Enter Loan Amount.--
``(1) In general.--In addition to the other requirements of
this section and in accordance with paragraph (2), each
eligible institution shall ensure that, for each award year,
each borrower enrolled in the institution who receives a
Federal Direct Loan (other than a Federal Direct Consolidation
Loan) and each parent borrower who is borrowing a Federal
Direct PLUS Loan made on behalf of a student who is enrolled in
the institution, for such year, shall manually enter, either in
writing or through electronic means, the exact dollar amount of
Federal Direct Loan funding that such borrower desires to
borrow for such year.
``(2) Method.--The eligible institution shall ensure that
the borrower carries out the activity described in paragraph
(1)--
``(A) in the case of a student borrower, in the
course of the process used by the institution for
students to accept a student loan award;
``(B) prior to the institution certifying a Federal
Direct Loan (other than a Federal Direct Consolidation
Loan), including a Federal Direct PLUS Loan made on
behalf of a student, for disbursement to a borrower;
and
``(C) in the case of a student borrower, after
ensuring that the student has completed all of the
counseling requirements under subsection (l).''.
SEC. 303. WORK STUDY.
Section 485 of the Higher Education Act of 1965 (20 U.S.C. 1092),
as amended by sections 301 and 302, is further amended by adding at the
end the following:
``(o) Work Study.--If an institution provides a student or a
prospective student with a financial aid award notification that
includes work study, the institution shall ensure that the notification
includes an explanation that any work study funds are not directly
awarded to the student or institution, and such amounts must be earned
through the student's completion of work over time.''.
TITLE IV--STREAMLINING ACCOUNTABILITY AND VALUE IN EDUCATION FOR
STUDENTS
SEC. 401. LOAN REPAYMENT SIMPLIFICATION AND INCOME-DRIVEN REPAYMENT
REFORM.
Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e)
is amended--
(1) in subsection (d)--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting ``not
later than June 30, 2024,'' before ``a
graduated'';
(ii) in subparagraph (C), by inserting
``not later than June 30, 2024,'' before ``an
extended'';
(iii) in subparagraph (D)--
(I) by inserting ``not later than
June 30, 2024,'' before ``an income
contingent''; and
(II) by striking ``and'' after the
semicolon;
(iv) in subparagraph (E)--
(I) by inserting ``and not later
than June 30, 2024,'' after ``beginning
on July 1, 2009,''; and
(II) by striking the period at the
end and inserting ``; and''; and
(v) by adding at the end the following:
``(F) beginning on July 1, 2024, an income
contingent repayment plan known as the `Revised Pay As
You Earn Repayment plan', consistent with subsection
(e)(9).'';
(B) in paragraph (2), by striking ``in subparagraph
(A), (B), or (C) of paragraph (1)'' and inserting ``in
subparagraph (A) or (F) of paragraph (1)''; and
(C) in paragraph (4), by inserting ``not later than
June 30, 2024, and'' after ``The Secretary may
provide,''; and
(2) in subsection (e), by adding at the end the following:
``(9) Revised pay as you earn repayment plan.--
``(A) In general.--The Secretary shall carry out a
Revised Pay As You Earn Repayment plan in accordance
with section 685.209(c) of title 34, Code of Federal
Regulations, as in effect on December 17, 2015, except
as otherwise provided in this paragraph as follows:
``(i) A borrower may complete loan
rehabilitation on a defaulted loan through
making eligible payments in accordance with
this paragraph for 9 consecutive months.
``(ii) A borrower who no longer wishes to
repay under the Revised Pay As You Earn
Repayment plan may change only to a standard
repayment plan.
``(iii) In addition to that provided under
paragraph (5)(iv) of such section 685.209(c), a
qualifying monthly payment may also include a
month for which the borrower received--
``(I) deferment under subsection
(f)(3) due to receiving treatment for
cancer;
``(II) deferment under subsection
(f)(2) for rehabilitation training;
``(III) deferment under subsection
(f)(2) for unemployment;
``(IV) deferment under subsection
(f)(2) for economic hardship, including
any period of deferment for Peace Corps
service;
``(V) deferment under subsection
(f)(2) for military service;
``(VI) deferment under subsection
(f)(2) for post-active duty service;
``(VII) forbearance under section
428(c)(3)(A)(i)(III), for national
service;
``(VIII) forbearance under section
685.205(a)(7) of title 34, Code of
Federal Regulations, for National Guard
Duty;
``(IX) forbearance under section
428(c)(3)(A)(i)(IV), for service for
which the borrower would qualify for a
partial repayment of his or her loan
under the Student Loan Repayment
Programs administered by the Department
of Defense; or
``(X) administrative forbearance
under paragraph (8) or (9) of section
685.205(b) of title 34, Code of Federal
Regulations.
``(iv) A borrower shall be automatically
enrolled in a Revised Pay As You Earn Repayment
plan for a loan at 75 days delinquent on such
loan.
``(v) A borrower who missed qualifying
payments during a forbearance or deferment
period not listed in clause (iii), shall have
the opportunity to provide a back payment for
the missed payments in order have those
payments counted toward the 20-year or 25-year
forgiveness period, except there shall be no
opportunity to provide a back payment for
periods of in-school deferment.
``(vi) For a borrower who is solely an
undergraduate borrower--
``(I) who has borrowed $10,000 or
less in total in loans under this part,
not including loan fees, the Secretary
may determine that the borrower has met
the loan forgiveness requirements after
120 payments under the Revised Pay As
You Earn Repayment plan;
``(II) who has borrowed more than
$10,000 but $11,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 132
payments under the Revised Pay As You
Earn Repayment plan;
``(III) who has borrowed more than
$11,000 but $12,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 144
payments under the Revised Pay As You
Earn Repayment plan;
``(IV) who has borrowed more than
$12,000 but $13,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 156
payments under the Revised Pay As You
Earn Repayment plan;
``(V) who has borrowed more than
$13,000 but $14,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 168
payments under the Revised Pay As You
Earn Repayment plan;
``(VI) who has borrowed more than
$14,000 but $15,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 180
payments under the Revised Pay As You
Earn Repayment plan;
``(VII) who has borrowed more than
$15,000 but $16,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 192
payments under the Revised Pay As You
Earn Repayment plan;
``(VIII) who has borrowed more than
$16,000 but $17,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 204
payments under the Revised Pay As You
Earn Repayment plan;
``(IX) who has borrowed more than
$17,000 but $18,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 216
payments under the Revised Pay As You
Earn Repayment plan; and
``(X) who has borrowed more than
$18,000 but $19,000 or less in total in
loans under this part, not including
loan fees, the Secretary may determine
that the borrower has met the loan
forgiveness requirements after 228
payments under the Revised Pay As You
Earn Repayment plan.
``(B) Transfer of borrowers in repayment.--
Notwithstanding any other provision of this Act, on
July 1, 2024, the Secretary shall transfer each
borrower who is in repayment on a loan made under this
part under an income contingent repayment plan pursuant
to subsection (d)(1)(D) to the Revised Pay As You Earn
Repayment plan under this paragraph.''.
SEC. 402. TAXPAYER AND CONSUMER PROTECTION ON STUDENT LOANS.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)) is amended by adding at the end the following:
``(30)(A) The institution certifies that no funds available
under this title may be used by an undergraduate student for
enrollment in an educational program offered by the institution
that is described in subparagraph (B).
``(B) An educational program at an institution is described
in this subparagraph if the program is a program--
``(i) in the case of a program that awards an
associate's degree or a lesser degree or credential, in
which the median earnings of students 6 years after the
date of entry into the program who are no longer
enrolled in the program and are working is, for not
less than 2 of the 3 years preceding the date of the
determination, less than the median earnings of a
working adult who is aged 25 to 34 with only a high
school diploma or its recognized equivalent, as
determined under subparagraph (C) and in accordance
with subparagraph (D); or
``(ii) in the case of a program that awards a
bachelor's degree, in which the median earnings of
students 10 years after the date of entry into the
program who are no longer enrolled in the program and
are working is, for not less than 2 of the 3 years
preceding the date of the determination, less than the
median earnings of a working adult who is aged 25 to 34
with only a high school diploma or its recognized
equivalent, as determined under subparagraph (C) and in
accordance with subparagraph (D).
``(C) The median earnings of a working adult who is aged 25
to 34 with only a high school diploma or its recognized
equivalent shall be based on data from the Census Bureau--
``(i) for the State in which the institution is
located; or
``(ii) if fewer than 50 percent of the students
enrolled in the institution reside in the State where
the institution is located, for the entire United
States.
``(D) For any year for which the programmatic cohort is
fewer than 30 individuals, the Secretary shall--
``(i) first, aggregate additional years of
programmatic data in order to achieve a cohort of at
least 30 individuals;
``(ii) second, aggregate additional cohort years of
programmatic data for degrees or certificates of
equivalent length in order to achieve a cohort of at
least 30 individuals; and
``(iii) if such data cannot be aggregated, use an
institution-based undergraduate-level measure, in lieu
of a programmatic measure.
``(E) An educational program shall not lose eligibility
under subparagraph (A) unless the institution has had the
opportunity to appeal the programmatic median earnings of
students working and not enrolled determination. During such
appeal, the Secretary may permit the educational program to
continue to participate in a program under this title. If an
educational program continues to participate in a program under
this title, and the institution's appeal of the loss of
eligibility is unsuccessful, the institution shall pay to the
Secretary an amount equal to the amount of interest, and any
related payments made by the Secretary (or which the Secretary
is obligated to make) with respect to loans made under this
title to students attending, or planning to attend, that
educational program during the pendency of such appeal.
``(31)(A) The institution certifies that no funds available
under this title may be used by a graduate student for
enrollment in an educational program offered by the institution
that is described in subparagraph (B).
``(B) An educational program at an institution is described
in this subparagraph if the program is a program--
``(i) in the case of a program that awards a
master's degree or a lesser degree or credential, in
which the median earnings of students 6 years after the
date of entry into the program who are no longer
enrolled in the program and are working is, for not
less than 2 of the 3 years preceding the date of the
determination, less than the median earnings of a
working adult who is aged 25 to 34 with only a
bachelor's degree, as determined under subparagraph (C)
and in accordance with subparagraph (D); or
``(ii) in the case of program that awards a
professional degree or doctoral degree, in which the
median earnings of students 10 years after the date of
entry into the program who are no longer enrolled in
the program and are working is, for not less than 2 of
the 3 years preceding the date of the determination,
less than the median earnings of a working adult who is
aged 25 to 34 with only a bachelor's degree, as
determined under subparagraph (C) and in accordance
with subparagraph (D).
``(C) The median earnings of a working adult who is aged 25
to 34 with only a bachelor's degree shall be based on data from
the Census Bureau--
``(i) for the State in which the institution is
located; or
``(ii) if fewer than 50 percent of the students
enrolled in the institution reside in the State where
the institution is located, for the entire United
States.
``(D) For any year for which the programmatic cohort is
fewer than 30 individuals, the Secretary shall--
``(i) first, aggregate additional years of
programmatic data in order to achieve a cohort of at
least 30 individuals;
``(ii) second, aggregate additional cohort years of
programmatic data for degrees or certificates of
equivalent length in order to achieve a cohort of at
least 30 individuals; and
``(iii) if such data cannot be aggregated, use an
institution-based graduate-level measure, in lieu of a
programmatic measure.
``(E) An educational program shall not lose eligibility
under subparagraph (A) unless the institution has had the
opportunity to appeal the programmatic median earnings of
students working and not enrolled determination. During such
appeal, the Secretary may permit the educational program to
continue to participate in a program under this title. If an
educational program continues to participate in a program under
title, and the institution's appeal of the loss of eligibility
is unsuccessful, the institution shall pay to the Secretary an
amount equal to the amount of interest, and any related
payments made by the Secretary (or which the Secretary is
obligated to make) with respect to loans made under this title
to students attending, or planning to attend, that educational
program during the pendency of such appeal.''.
SEC. 403. PHASE OUT OF INCOME-BASED REPAYMENT.
Section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e)
is amended--
(1) in subsection (b)(1), by inserting ``who enters
repayment on such loan before July 1, 2024, and'' after ``a
borrower of any loan made, insured, or guaranteed under part B
or D (other than an excepted PLUS loan or excepted
consolidation loan)''; and
(2) in subsection (e)--
(A) in the subsection heading by inserting ``, and
Before July 1, 2024'' after ``July 1, 2014''; and
(B) by inserting ``, and before July 1, 2024''
after ``July 1, 2014''.
TITLE V--GRADUATE OPPORTUNITY AND AFFORDABLE LOANS
SEC. 501. LOAN LIMITS.
Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e)
is amended--
(1) in subsection (a)--
(A) in paragraph (3)(A)--
(i) in the matter preceding clause (i), by
striking ``part B'' and inserting ``part B--'';
(ii) beginning in the matter preceding
clause (i), by striking ``for any period'' and
all that follows through ``professional
student'' and inserting the following:
``(i) for any period of instruction
beginning on or after July 1, 2012, a graduate
or professional student''; and
(iii) in clause (ii), by inserting ``for
any period of instruction beginning on July 1,
2012, and ending on June 30, 2024 (subject to
paragraph (4)(C)),'' before ``the maximum
annual''; and
(B) by adding at the end the following:
``(4) Graduate and professional annual and aggregate limits
for unsubsidized stafford loans beginning july 1, 2024.--
``(A) Annual limits beginning july 1, 2024.--
Subject to subparagraph (C), beginning on July 1, 2024,
the maximum annual amount of Federal Direct
Unsubsidized Stafford loans--
``(i) a graduate student, who is not a
professional student, may borrow in any
academic year (as defined in section 481(a)(2))
or its equivalent shall be $20,500; and
``(ii) a professional student may borrow in
any academic year (as defined in section
481(a)(2)) or its equivalent shall be $40,500.
``(B) Aggregate limits beginning july 1, 2024.--
Subject to subparagraph (C), beginning on July 1, 2024,
the maximum aggregate amount of Federal Direct
Unsubsidized Stafford loans--
``(i) a graduate student, who is not a
professional student, may borrow is $65,000, in
addition to the amount borrowed for
undergraduate education; and
``(ii) a professional student may borrow is
$130,000, in addition to the amount borrowed
for undergraduate education.
``(C) Phase out provisions.--Notwithstanding the
date of the applicability of the limits set forth in
this paragraph, an eligible graduate student, including
a professional student, who received a disbursement of
a Federal Direct Unsubsidized Stafford loan after June
30, 2023, and before July 1, 2024, for the 2023-2024
award year, may receive a Federal Direct Unsubsidized
Stafford loan for the 2024-2025 award year in amounts
that are subject to the annual and aggregate loan
limits applicable prior to July 1, 2024, if the
borrower did not graduate prior to the 2024-2025 award
year.
``(D) Definitions.--In this paragraph:
``(i) Graduate student.--The term `graduate
student' means a student enrolled in a program
at the postbaccalaureate level, such as a
postbaccalaureate certificate, a master's
degree, or a doctor's degree.
``(ii) Professional student.--The term
`professional student' means a student enrolled
in a doctor's degree-professional practice
program.
``(iii) Postbaccalaureate certificate;
master's degree; doctor's degree; doctor's
degree professional-practice.--The terms
`postbaccalaureate certificate', `master's
degree', `doctor's degree', and `doctor's
degree professional-practice' shall have the
meaning provided in the 2022-2023 glossary of
the Integrated Postsecondary Education Data
System (OMB NO. 1859-0582 v. 30).
``(5) Termination of authority to make federal direct plus
loans to graduate and professional students.--
``(A) In general.--Notwithstanding any other
provision of law, for any period of instruction
beginning on or after July 1, 2024, a graduate student
(including a professional student) shall not be
eligible to receive a Federal Direct PLUS Loan under
this part for enrollment in a program of graduate or
doctor's degree professional-practice education.
``(B) Phase out provisions.--Not later than 30 days
after the date of enactment of the Lowering Education
Costs and Debt Act, each institution of higher
education that enrolls graduate students or
professional students shall notify prospective and
enrolled graduate students and professional students
that the Federal Direct PLUS Loan program will end for
graduate students and professional students on June 30,
2024.
``(C) Definitions.--The definitions in paragraph
(4)(D) shall apply to this paragraph.
``(6) Institutionally determined limits.--Notwithstanding
any other provision of this part, an eligible institution (at
the discretion of a financial aid administrator at the
institution) may prorate or limit the amount of a loan a
student who is enrolled in a program of study at that
institution for a period of instruction beginning on or after
July 1, 2024, may borrow under this part for an academic year,
as long as any proration or limit is applied consistently to
all borrowers entering such program of study.''.
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