[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3727 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 3727
To establish the Proprietary Education Interagency Oversight Committee
and to facilitate the disclosure and reporting of information regarding
complaints and investigations related to proprietary institutions of
higher education eligible to receive Federal education assistance.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 1, 2024
Mr. Durbin (for himself, Ms. Smith, Mr. Blumenthal, Mr. Merkley, and
Ms. Warren) introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To establish the Proprietary Education Interagency Oversight Committee
and to facilitate the disclosure and reporting of information regarding
complaints and investigations related to proprietary institutions of
higher education eligible to receive Federal education assistance.
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 ``Proprietary Education Oversight Task
Force Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Accrediting agency.--The term ``accrediting agency''
means a private educational association that acts as a reliable
authority on the quality of education or training provided by
an institution of higher education and is recognized by the
Secretary under section 496 of the Higher Education Act of 1965
(20 U.S.C. 1099b).
(2) Department.--Unless otherwise expressly provided, the
term ``Department'' means the Department of Education.
(3) Executive officer.--The term ``executive officer'',
with respect to a proprietary institution of higher education
that is a publicly traded corporation, means--
(A) the president of the corporation;
(B) a vice president of the corporation who is in
charge of a principal business unit, division, or
function of the corporation, such as sales,
administration, or finance; or
(C) any other officer or person who performs a
policy-making function for the corporation, including
an executive officer of a subsidiary of the corporation
if the officer performs a policy making function for
the corporation.
(4) Federal education assistance.--The term ``Federal
education assistance'' when used with respect to a proprietary
institution of higher education, means Federal funds that are
disbursed or delivered by the Department, the Department of
Veterans Affairs, or the Department of Defense to, or on behalf
of, a student to be used for tuition, fees, instruction, or any
other component of the student's cost of attendance (as defined
in section 472 of the Higher Education Act of 1965 (20 U.S.C.
1087ll)) to attend the institution.
(5) Institutional debt.--The term ``institutional debt''
means any debt owed by a student or the parent of a student to
an institution of higher education, including--
(A) debt owed through a private loan program,
income-share agreement, or other financing product
operated by the institution;
(B) debt owed from a return of student assistance
made, insured, or guaranteed under title IV of the
Higher Education Act 1965 (20 U.S.C. 1070 et seq.) to
the Department; and
(C) debt owed from the student's nonpayment of
institutional charges or fees.
(6) Private education loan.--The term ``private education
loan''--
(A) means a loan provided by a private educational
lender (as defined in section 140(a) of the Truth in
Lending Act (15 U.S.C. 1650(a))) that--
(i) is not made, insured, or guaranteed
under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.);
(ii) is issued expressly for postsecondary
educational expenses to a borrower, regardless
of whether the loan is provided through the
educational institution that the subject
student attends or directly to the borrower
from the private educational lender (as so
defined); and
(iii) is not made, insured, or guaranteed
under title VII or title VIII of the Public
Health Service Act (42 U.S.C. 292 et seq. and
296 et seq.); and
(B) does not include an extension of credit under
an open-end consumer credit plan, a reverse mortgage
transaction, a residential mortgage transaction, or any
other loan that is secured by real property or a
dwelling.
(7) Proprietary institution of higher education.--The term
``proprietary institution of higher education'' has the meaning
given the term in section 102(b) of the Higher Education Act of
1965 (20 U.S.C. 1002(b)).
(8) Recruiting and marketing activities.--
(A) In general.--Except as provided in subparagraph
(B), the term ``recruiting and marketing activities''
means activities that include any of the following:
(i) Advertising and promotional activities,
including paid announcements in newspapers,
magazines, radio, television, billboards,
electronic media, naming rights, or any other
public medium of communication, including
paying for displays or promotions at job fairs,
military installations, or college recruiting
events, that are made directly or indirectly to
a student, a prospective student, the public,
an accrediting agency, a State agency, or to
the Secretary by a proprietary institution of
higher education, one of its representatives,
or any person with whom the institution has an
agreement to provide educational programs,
advertising, or admissions services.
(ii) Misleading statement,
misrepresentation, and substantial
misrepresentation (as defined in section
668.71(c) of title 34, Code of Federal
Regulations, or any successor regulation).
(iii) Efforts to identify and attract
prospective students, either directly or
through a contractor or other third party,
including contact concerning a prospective
student's potential enrollment or application
for a grant, a loan, or work assistance under
title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.) or participation in
preadmission or advising activities, including
soliciting an individual to provide contact
information to a proprietary institution of
higher education, including through websites
established for that purpose and funds paid to
third parties for that purpose.
(iv) Other activities as the Secretary may
prescribe, including paying for promotion or
sponsorship of education or military-related
associations.
(B) Exceptions.--Any activity that is required as a
condition of the receipt of funds by an institution of
higher education under title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070 et seq.), is specifically
authorized under that title, or is otherwise specified
by the Secretary, is not a recruiting and marketing
activity under subparagraph (A).
(9) Secretary.--Unless otherwise expressly provided, the
term ``Secretary'' means the Secretary of Education.
(10) State approval agency.--The term ``State approval
agency'' means any State agency that determines whether an
institution of higher education is legally authorized within
the State to provide a program of education beyond secondary
education.
(11) Veterans service organization.--The term ``veterans
service organization'' means an organization that is--
(A) recognized by the Secretary of Veterans Affairs
for the representation of veterans under section 5902
of title 38, United States Code;
(B) congressionally chartered under title 36,
United States Code, and serves or represents veterans;
(C) recognized by the Secretary of Veteran Affairs
under section 14.628 of title 38, Code of Federal
Regulations (or a successor regulation), as a national
organization, State organization, tribal organization,
or regional or local organization; or
(D) an organization that has a record of
demonstrating expertise in, assists in, or serves the
interests of veterans in education.
SEC. 3. ESTABLISHMENT OF PROPRIETARY EDUCATION INTERAGENCY OVERSIGHT
COMMITTEE.
(a) Establishment.--There is established the Proprietary Education
Interagency Oversight Committee (referred to in this Act as the
``Committee'') to be composed of the head (or the designee of the head
who is designated under subsection (d)) of each of the following:
(1) The Department.
(2) The Consumer Financial Protection Bureau.
(3) The Department of Justice.
(4) The Securities and Exchange Commission.
(5) The Department of Defense.
(6) The Department of Veterans Affairs.
(7) The Federal Trade Commission.
(8) The Department of Labor.
(9) The Internal Revenue Service.
(10) At the discretion of the President, any other relevant
Federal agency.
(b) Purposes.--The Committee shall have the following purposes:
(1) To improve enforcement of applicable Federal laws and
regulations.
(2) To increase accountability of proprietary institutions
of higher education to students and taxpayers.
(3) To ensure the promotion of high-quality education
programs.
(4) To reduce and prevent fraud and abuse by proprietary
institutions of higher education.
(c) Responsibilities.--To meet the purposes described in subsection
(b), the Committee shall--
(1) coordinate administrative oversight of proprietary
institutions of higher education--
(A) such that the Federal agencies represented on
the Committee may develop a memorandum of understanding
to specify responsibilities of each of those agencies
in creating the report under section 6;
(B) to encourage information-sharing, to the extent
practicable, among those agencies related to Federal
investigations, audits, or inquiries of proprietary
institutions of higher education; and
(C) to increase coordination and cooperation
between Federal and State agencies, including State
Attorneys General and State approval agencies, with
respect to improving oversight and accountability of
proprietary institutions of higher education; and
(2) synthesize cross-agency industry data on proprietary
institutions of higher education to--
(A) develop an annual report under section 6;
(B) publish a ``For-Profit College Warning List for
Parents and Students'', in accordance with section 7;
and
(C) develop consistency among Federal and State
agencies in the dissemination of consumer information
regarding proprietary institutions of higher education
to ensure that students, parents, and other
stakeholders have easy access to that information.
(d) Membership.--
(1) Designees.--The head of a Federal agency listed in
subsection (a) may designate a high-ranking official of the
agency to serve as a designee on the Committee. The designee
shall be, whenever possible, the head of the portion of the
agency that is most relevant to the purposes described in
subsection (b).
(2) Chairperson.--The Secretary or the Secretary's designee
shall serve as the Chairperson of the Committee.
(3) Committee support.--The Chairperson of the Committee
shall ensure that appropriate staff and officials at the
Department are available to support Committee-related work.
(e) Committee Meetings.--The members of the Committee shall meet
regularly, but not less often than once during each quarter of each
fiscal year, to carry out the purposes described in subsection (b) and
the responsibilities described in subsection (c).
(f) Notification to Individuals Who Submit Complaints.--The head of
each Federal agency listed in subsection (a) shall notify each
individual who submits to the Federal agency a complaint with respect
to a proprietary institution of higher education that information from
the complaint may be used to carry out the purposes described in
subsection (b).
SEC. 4. PROPRIETARY EDUCATION OVERSIGHT ADVISORY COMMITTEE.
(a) In General.--The Department shall establish a Proprietary
Education Oversight Advisory Committee (referred to in this Act as the
``Advisory Committee'') to advise the Committee. The Advisory Committee
shall meet not less often than twice each fiscal year.
(b) FACA Applicability.--The Advisory Committee shall be subject to
chapter 10 of title 5, United States Code (commonly referred to as the
``Federal Advisory Committee Act'').
(c) Membership.--
(1) In general.--The Advisory Committee shall have 13
members, of which--
(A) 4 members shall be representatives from State
attorneys general--
(i) 2 of whom shall be appointed by the
Speaker of the House of Representatives, 1 of
whom shall be appointed on the recommendation
of the majority leader of the House of
Representatives, and 1 of whom shall be
appointed on the recommendation of the minority
leader of the House of Representatives; and
(ii) 2 of whom shall be appointed by the
President pro tempore of the Senate, 1 of whom
shall be appointed on the recommendation of the
majority leader of the Senate, and 1 of whom
shall be appointed on the recommendation of the
minority leader of the Senate; and
(B) 9 members shall be appointed by the Secretary,
of whom--
(i) 1 member shall be a representative from
a State approval agency;
(ii) 1 member shall be a representative
from a veterans service organization;
(iii) 1 member shall be a representative
from an accrediting agency;
(iv) 1 member shall be a representative
from a civil rights organization;
(v) 1 member shall be a representative from
a proprietary institution of higher education;
(vi) 1 member shall be a current student of
a proprietary institution of higher education
who is a dependent student;
(vii) 1 member shall be a current student
of a proprietary institution of higher
education who is an independent student;
(viii) 1 member shall be a representative
from a consumer advocate organization; and
(ix) 1 member shall be a representative
from a legal assistance organization that
represents students or borrowers.
(2) Qualifications.--Individuals shall be appointed as
members of the Advisory Committee--
(A) on the basis of the individuals' experience,
integrity, impartiality, and good judgment; and
(B) on the basis of the individuals' technical
qualifications, professional standing, and demonstrated
knowledge in the field of proprietary education.
(3) Terms of members.--The term of office of each member of
the Advisory Committee shall be for 6 years, except that any
member appointed to fill a vacancy occurring prior to the
expiration of the term for which the member's predecessor was
appointed shall be appointed for the remainder of such term.
(4) Vacancy.--A vacancy on the Advisory Committee shall be
filled in the same manner as the original appointment was made
not later than 90 days after the vacancy occurs. If a vacancy
occurs in a position to be filled by the Secretary, the
Secretary shall publish a Federal Register notice soliciting
nominations for the position not later than 30 days after being
notified of the vacancy.
(d) Duties.--The Advisory Committee shall provide advice and
recommendations to the Committee with respect to--
(1) complaints filed against proprietary institutions of
higher education with State attorneys general or State approval
agencies;
(2) State enforcement actions against proprietary
institutions of higher education;
(3) minority enrollment in proprietary institutions of
higher education;
(4) veteran enrollment in proprietary institutions of
higher education;
(5) outcome measures at proprietary institutions of higher
education, including graduation rates, percent of graduates
earning more than a high school graduate, and licensure pass
rates;
(6) student loan burden from enrollment at proprietary
institutions of higher education, including median amount owed
disaggregated by degree type, cohort default rate, and percent
of students in repayment;
(7) marketing and recruitment practices at proprietary
institutions of higher education;
(8) per pupil expenditure for instructional purposes at
proprietary institutions of higher education;
(9) enforcement actions the Federal Government should take
against proprietary institutions of higher education; and
(10) preparation of the report under section 6.
(e) Sharing of Data From Complaints.--To carry out the duties
described under subsection (d), the Advisory Committee may share among
the members of the Advisory Committee and the Committee information
from complaints filed against proprietary institutions of higher
education consistent with the protection of the privacy and
confidentiality of personally identifiable information.
SEC. 5. COLLECTION AND TRACKING OF COMPLAINTS.
(a) In General.--
(1) Centralized collection, monitoring, and response.--In
consultation with the Committee, the Secretary shall establish
a single, toll-free telephone number, a website, and a database
(or use an existing database) to facilitate the centralized
collection of, monitoring of, and response to student
complaints regarding the services or activities of any
proprietary institution of higher education that is eligible
for Federal education assistance.
(2) Coordination.--The Committee shall coordinate with the
Federal agencies represented on the Committee to route
complaints to those agencies, where appropriate, and consistent
with--
(A) the protection of the privacy and
confidentiality of personally identifiable information;
and
(B) data security and integrity.
(b) Use of Complaint Information.--Information collected from
complaints under subsection (a) shall be used--
(1) to facilitate coordination among the Federal agencies
represented on the Committee;
(2) to facilitate investigations and enforcement actions
against proprietary institutions of higher education;
(3) to prepare the report under section 6; and
(4) to prepare the For-Profit College Warning List for
Parents and Students under section 7.
(c) Routing Complaints to States.--To the extent practicable, State
approval agencies may receive appropriate complaints from the systems
established under subsection (a), if--
(1) the State approval agency system has the functional
capacity to receive calls or electronic reports routed by the
systems of the Department;
(2) the State approval agency has satisfied any conditions
of participation in the system that the Department may
establish, including treatment of personally identifiable
information and sharing of information on complaint resolution
or related compliance procedures and resources; and
(3) participation by the State approval agency includes
measures necessary to provide for protection of personally
identifiable information that conform to the Federal laws and
standards for protection of the privacy and confidentiality of
personally identifiable information and for data integrity and
security that apply to the Federal agencies described in
subsection (d).
(d) Data-Sharing Required.--
(1) In general.--To facilitate preparation of the reports
required under section 6, supervision and enforcement
activities, and monitoring of the market for educational
services provided by any proprietary institution of higher
education that is eligible for Federal education assistance,
the Committee members shall share student complaint information
with accrediting agencies, the Federal Trade Commission, other
Federal agencies, and State agencies, subject to the Federal
laws and standards applicable to Federal agencies for the
protection of the privacy and confidentiality of personally
identifiable information and for data security and integrity.
(2) Sharing of data with the department.--The accrediting
agencies, the Federal Trade Commission, and other Federal
agencies shall share data relating to student complaints
regarding educational services provided by any proprietary
institution of higher education with the Department, subject to
the Federal laws and standards applicable to Federal agencies
for the protection of the privacy and confidentiality of
personally identifiable information and for data security and
integrity.
SEC. 6. REPORT.
(a) In General.--The Committee shall submit an annual report to the
Committee on Health, Education, Labor, and Pensions of the Senate, the
Committee on Education and the Workforce of the House of
Representatives, and any other committee of Congress that the Committee
determines appropriate.
(b) Confidentiality and Public Access.--The report described in
subsection (a)--
(1) shall not contain any personally identifiable
information; and
(2) shall be made available to the public in a manner that
is easily accessible to parents, students, and other
stakeholders.
(c) Contents.--
(1) In general.--The report described in subsection (a)
shall include--
(A) a description of the role of each member of the
Committee in achieving the purposes described in
section 3(b);
(B) an accounting of any negative or adverse action
taken by the Federal Government, any member agency of
the Committee, or a State to enforce Federal or State
laws and regulations applicable to a proprietary
institution of higher education;
(C) a summary of complaints received, resolved, or
pending against each proprietary institution of higher
education during the applicable year, including--
(i) student complaints collected by the
complaint system established under section 5 or
received by any member agency of the Committee;
(ii) any complaint filed by a Federal or
State agency in a Federal, State, local, or
Tribal court;
(iii) any administrative proceeding by a
Federal or State agency involving noncompliance
of any applicable law or regulation;
(iv) any other review, audit, or
administrative process by any Federal or State
agency that results in a penalty, suspension,
or termination from any Federal or State
program; and
(v) any complaint, review, audit, or
administrative process by an accrediting agency
that results in probation or equivalent action,
denial, withdrawal, suspension, or termination
of accreditation;
(D) the data described in paragraph (2) and any
other data relevant to proprietary institutions of
higher education that the Committee determines
appropriate; and
(E) recommendations of the Committee for the
legislative and administrative actions as the Committee
determines are necessary to--
(i) improve enforcement of applicable
Federal laws;
(ii) increase accountability of proprietary
institutions of higher education to students,
parents, and taxpayers;
(iii) reduce and prevent fraud and abuse by
proprietary institutions of higher education;
and
(iv) ensure the promotion of quality
education programs.
(2) Data.--
(A) Industry-wide data.--The report described in
subsection (a) shall include data on all proprietary
institutions of higher education that consists of
information regarding--
(i) the total amount of Federal education
assistance that proprietary institutions of
higher education received for the previous
academic year, and the percentage of the total
amount of Federal education assistance provided
to institutions of higher education (as defined
in section 102 of the Higher Education Act of
1965 (20 U.S.C. 1002)) for the previous
academic year that reflects the total amount of
Federal education assistance provided to
proprietary institutions of higher education
for the previous academic year;
(ii) the total amount of Federal education
assistance that proprietary institutions of
higher education received for the previous
academic year, disaggregated by--
(I) educational assistance in the
form of a loan provided under title IV
of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.);
(II) educational assistance in the
form of a grant provided under title IV
of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.);
(III) educational assistance
provided under chapter 33 of title 38,
United States Code;
(IV) assistance for tuition and
expenses under section 2007 of title
10, United States Code;
(V) assistance provided under
section 1784a of title 10, United
States Code; and
(VI) Federal education assistance
not described in subclauses (I) through
(V);
(iii) the percentage of the total amount of
Federal education assistance provided to
institutions of higher education (as defined in
section 102 of the Higher Education Act of 1965
(20 U.S.C. 1002)) for the previous academic
year for each of the programs described in
subclauses (I) through (VI) of clause (ii),
that reflects the total amount of Federal
education assistance provided to proprietary
institutions of higher education for the
previous academic year for each of those
programs;
(iv) the average retention and graduation
rates for students pursuing a degree at
proprietary institutions of higher education;
(v) the average cohort default rate (as
defined in section 435(m) of the Higher
Education Act of 1965 (20 U.S.C. 1085(m)) for
proprietary institutions of higher education,
and the cohort default rate for each
proprietary institution of higher education;
(vi) the average pre-enrollment
expenditures on a per-enrolled-student basis,
including expenditures on recruiting and
marketing activities;
(vii) the average educational and general
expenditures (as defined in section 502 of the
Higher Education Act of 1965 (20 U.S.C. 1101a))
per student, excluding all pre-enrollment
expenditures;
(viii) for careers requiring the passage of
a licensing examination--
(I) the passing rate of individuals
who attended a proprietary institution
of higher education taking the
examination to pursue such a career;
and
(II) the passing rate of all
individuals taking the exam to pursue
such a career; and
(ix) the use of private education loans at
proprietary institutions of higher education
that includes--
(I) an estimate of the total number
of those loans;
(II) information on the average
debt, default rate, and interest rate
of those loans; and
(III) the names of each lender
providing private education loans to
borrowers with respect to each
proprietary institution of higher
education in the prior academic year,
including--
(aa) the number of
borrowers receiving loans from
each lender; and
(bb) the volume of dollars
provided to borrowers with
respect to the proprietary
institution of higher education
by each lender.
(B) Data on publicly traded corporations.--
(i) In general.--The report described in
subsection (a) shall include data on
proprietary institutions of higher education
that are publicly traded corporations,
consisting of information on--
(I) any pre-tax profit of those
proprietary institutions of higher
education--
(aa) reported as a total
amount and an average percent
of revenue for all those
proprietary institutions of
higher education; and
(bb) reported for each of
those proprietary institutions
of higher education;
(II) revenue for those proprietary
institutions of higher education spent
on recruiting and marketing activities,
student instruction, and student
support services, reported--
(aa) as a total amount and
an average percentage of
revenue for all those
proprietary institutions of
higher education; and
(bb) for each of those
proprietary institutions of
higher education;
(III) total compensation packages,
including bonuses, of the executive
officers of each of those proprietary
institutions of higher education;
(IV) a list of institutional loan
programs offered by each of those
proprietary institutions of higher
education that includes information on
the default and interest rates of those
programs; and
(V) the data described in clauses
(ii) and (iii).
(ii) Disaggregated by ownership.--The
report shall include data on proprietary
institutions of higher education that are
publicly traded corporations, disaggregated by
corporate or parent entity, brand name, and
campus, consisting of--
(I) the average total cost of
attendance at each proprietary
institution of higher education, and
information comparing the total cost
for each program to--
(aa) the average total cost
of attendance--
(AA) at each public
institution of higher
education; and
(BB) at each public
institution of higher
education that offers
the same level of
education degree or
certification as the
proprietary institution
of higher education;
and
(bb) the average total cost
of attendance--
(AA) at all
institutions of higher
education, including
institutions that are
public and institutions
that are private; and
(BB) at all
institutions of higher
education that offer
the same level of
education degree or
certification as the
proprietary institution
of higher education,
including institutions
that are public and
institutions that are
private;
(II) total enrollment,
disaggregated by--
(aa) individuals enrolled
in programs taken online;
(bb) individuals enrolled
in programs that are not taken
online; and
(cc) individuals enrolled
in programs taken both online
and not online;
(III) the average retention and
graduation rates for students pursuing
a degree at proprietary institutions of
higher education;
(IV) the percentage of students
enrolled in proprietary institutions of
higher education who complete a program
of an institution within--
(aa) the standard period of
completion for the program; and
(bb) a period that is 150
percent of the standard period
of completion;
(V) the average total cost of
attendance for each program at
proprietary institutions of higher
education;
(VI) the average cohort default
rate, as defined in section 435(m) of
the Higher Education Act of 1965 (20
U.S.C. 1085(m)), for proprietary
institutions of higher education, and
an annual list of cohort default rates
(as so defined) for all proprietary
institutions of higher education;
(VII) the median Federal
educational debt incurred by students
who complete a program at a proprietary
institution of higher education;
(VIII) the median Federal
educational debt incurred by students
who start but do not complete a program
at a proprietary institution of higher
education;
(IX) the job placement rate for
students who complete a program at a
proprietary institution of higher
education and the type of employment
obtained by those students;
(X) for careers requiring the
passage of a licensing examination, the
passing rate for individuals who
attended a proprietary institution of
higher education and passed the
examination;
(XI) the number of complaints from
students enrolled in proprietary
institutions of higher education who
have submitted a complaint to any
member agency of the Committee; and
(XII) the volume of institutional
debt, number of students who owe
institutional debts, and average amount
of institutional debt owed by each
student.
(iii) Department of defense and veterans
affairs assistance.--
(I) In general.--To the extent
practicable, the report described in
subsection (a) shall provide
information on the data described in
clause (ii) for individuals using, to
pay for the costs of attending a
proprietary institution of higher
education, Federal education assistance
provided under--
(aa) chapter 33 of title
38, United States Code;
(bb) section 2007 of title
10, United States Code; and
(cc) section 1784a of title
10, United States Code.
(II) Revenue.--The report shall
provide information on the revenue of
proprietary institutions of higher
education that are publicly traded
corporations that is derived from the
Federal education assistance described
in subclause (I).
(C) Comparison data.--To the extent practicable,
the report shall provide information comparing the data
described in subparagraph (B) for proprietary
institutions of higher education that are publicly
traded corporations with data for public institutions
of higher education disaggregated by State.
(3) Accounting of any action.--As used in paragraph (1)(B),
the term ``any negative or adverse action'' includes--
(A) a complaint filed by a Federal or State agency
in a local, State, Federal, or Tribal court;
(B) an administrative proceeding by a Federal or
State agency involving noncompliance with any
applicable law or regulation; or
(C) any other review, audit, or administrative
process by any Federal or State agency that results in
a penalty, suspension, or termination from any Federal
or State program.
SEC. 7. FOR-PROFIT COLLEGE WARNING LIST FOR PARENTS AND STUDENTS.
(a) In General.--Each academic year, the Secretary on behalf of the
Committee shall publish a list to be known as the ``For-Profit College
Warning List for Parents and Students'' to be comprised of the names of
proprietary institutions of higher education--
(1) that have been sued for financial relief by a Federal
or State authority, or through a qui tam action in which the
Federal Government has intervened;
(2) that are required to pay a debt or incur a liability
from a settlement, arbitration proceeding, or final judgment in
a judicial proceeding with a Federal or State agency and the
case addresses misrepresentation, fraud, liability under
sections 3729 through 3733 of title 31, United States Code
(commonly known as the ``False Claims Act''), or other
borrower-defense-to-repayment claims;
(3) that have pending claims for borrower relief discharge
under the borrower defense to repayment regulations from
students or former students of the institution and the
Secretary has formed a group process to consider the claims;
(4) that have had any eligibility for participation
withdrawn or suspended with respect to--
(A) educational assistance in the form of a loan
provided under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.);
(B) educational assistance in the form of a grant
provided under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.);
(C) educational assistance provided under chapter
33 of title 38, United States Code;
(D) assistance for tuition and expenses under
section 2007 of title 10, United States Code;
(E) assistance provided under section 1784a of
title 10, United States Code; or
(F) Federal education assistance not described in
subparagraphs (A) through (E); or
(5) that have been deemed ineligible to receive Federal
education assistance for the next year or required to repay
Federal education assistance previously received in an
applicable report year.
(b) Summary.--The For-Profit College Warning List for Parents and
Students shall include a summary in plain language of the basis of each
proprietary institution of higher education's inclusion on the list.
(c) Procedures.--The Committee shall establish and apply review
procedures for the For-Profit College Warning List for Parents and
Students, including evaluation and withdrawal proceedings that
provide--
(1) for adequate written specification of--
(A) the procedure for identifying proprietary
intuitions of higher education for inclusion on the
list; and
(B) identified deficiencies at the proprietary
institutions of higher education; and
(2) for sufficient opportunity for a written response by a
proprietary institution of higher education regarding any
deficiencies identified by the Committee--
(A) within a timeframe determined by the Committee;
and
(B) prior to the final publication of the For-
Profit College Warning List for Parents and Students.
(d) Publication.--
(1) In general.--Not later than July 1 of each fiscal year,
on behalf of the Committee, the Secretary shall publish the
For-Profit College Warning List for Parents and Students
prominently and in a manner that--
(A) is easily accessible to parents, current
students, prospective students, and other stakeholders;
and
(B) does not contain any personally identifiable
information.
(2) Use of preexisting platform.--The Secretary may
incorporate the For-Profit College Warning List for Parents and
Students into preexisting, widely used platforms.
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