Text: S.2954 — 113th Congress (2013-2014)All Information (Except Text)

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Introduced in Senate (11/20/2014)


113th CONGRESS
2d Session
S. 2954


To improve the Higher Education Act of 1965, and for other purposes.


IN THE SENATE OF THE UNITED STATES

November 20, 2014

Mr. Harkin introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions


A BILL

To improve the Higher Education Act of 1965, 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 “Higher Education Affordability Act”.

SEC. 2. Table of contents.

The table of contents for this Act is as follows:


Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. References.

Sec. 4. General effective date.

TITLE I—GENERAL PROVISIONS

Sec. 101. Graduate medical schools; postsecondary career and technical education institutions.

Sec. 102. 85–15 revenue source requirement for proprietary institutions.

Sec. 103. Definitions.

Sec. 104. Authorization of appropriations for drug and alcohol abuse prevention.

Sec. 105. Mandatory financial aid award letter.

Sec. 106. Code of conduct in affiliated consumer financial products or services.

Sec. 107. Restriction on marketing with Federal educational assistance funds.

Sec. 108. Minimum standards for net price calculators.

Sec. 109. Benefits for borrowers who are members of the Armed Forces.

Sec. 110. Data improvements for college navigator.

Sec. 111. College scorecard.

Sec. 112. Reporting requirements.

Sec. 113. In-State tuition rates for certain individuals.

Sec. 114. State higher education information system pilot program.

Sec. 115. Responsibilities of FSA Ombudsman; addition of point of contact for military families and homeless children.

Sec. 116. Responsibilities of covered institutions, institution-affiliated organizations, and lenders.

Sec. 117. Establishment of complaint resolution and tracking system.

Sec. 118. Proprietary education oversight coordination committee.

TITLE II—IMPROVING EDUCATOR PREPARATION

Sec. 201. Improving educator preparation.

TITLE III—INSTITUTIONAL AID

Sec. 301. Rule of construction.

Sec. 302. Program purpose.

Sec. 303. Duration of grant.

Sec. 304. American Indian tribally controlled colleges and universities.

Sec. 305. Alaska Native and Native Hawaiian-serving institutions.

Sec. 306. Predominantly Black Institutions.

Sec. 307. Native American-serving nontribal institutions.

Sec. 308. Asian American and Native American Pacific Islander-serving institutions.

Sec. 309. Native American education tuition cost share.

Sec. 310. Grants to institutions.

Sec. 311. Allotments to institutions.

Sec. 312. Professional or graduate institutions.

Sec. 313. Applications for assistance.

Sec. 314. Limitations on Federal insurance for bonds issued by the designated bonding authority.

Sec. 315. Authorization of appropriations.

TITLE IV—STUDENT ASSISTANCE

PART A—GRANTS TO STUDENTS

SUBPART 1—FEDERAL PELL GRANTS

Sec. 401. Year-round Federal Pell Grants; extension of Federal Pell Grant inflation adjustments.

Sec. 401A. College opportunity and graduation bonus demonstration program.

SUBPART 2—EARLY AWARENESS OF COLLEGE FINANCING OPTIONS

Sec. 403. Federal TRIO programs authorization.

Sec. 404. Postbaccalaureate achievement program authorization.

Sec. 405. Gaining early awareness and readiness for undergraduate programs authorization.

Sec. 405A. Early awareness of college financing options.

Sec. 405B. Awareness of postsecondary education financing options for adult learners.

SUBPART 3—FEDERAL SUPPLEMENTAL EDUCATION OPPORTUNITY GRANTS

Sec. 407. Authorization of appropriations.

Sec. 408. Institutional share of Federal supplemental educational opportunity grants.

Sec. 409. Federal supplemental educational opportunity grants allocation of funds.

SUBPART 4—AMERICAN DREAM GRANTS AND LEAP PROGRAM

Sec. 415. Purpose; appropriations authorized.

Sec. 416. American Dream grants.

SUBPART 5—REAUTHORIZATION OF APPROPRIATIONS FOR OTHER PART A PROGRAMS.

Sec. 417. Reauthorization of appropriations for other part A programs.

PART B—FEDERAL FAMILY EDUCATION LOAN PROGRAM

Sec. 421. Simplification of income-based repayment options for federally insured student loans.

Sec. 422. Improvements to military loan deferment; clarification of SCRA protections; simplification of income-based repayment options.

Sec. 423. Simplification of income-based repayment options for Federal Consolidation Loans.

Sec. 424. Reasonable collection costs and rehabilitation payments.

Sec. 425. FFEL loan forgiveness for certain American Indian educators.

Sec. 426. Reauthorization of appropriations for certain loan forgiveness programs.

Sec. 427. Improvements to credit reporting for Federal student loans.

Sec. 428. Reduced duplication in student loan servicing.

Sec. 429. Improved determination of cohort default rates; publication of default prevention plan.

Sec. 430. Improved disability determinations.

Sec. 431. Treatment of borrowers falsely certified as eligible to borrow due to identity theft.

PART C—FEDERAL WORK-STUDY PROGRAMS

Sec. 441. Authorization of appropriations.

Sec. 442. Federal work study allocation of funds.

Sec. 443. Institutional share of Federal work study funds.

Sec. 444. Additional funds to conduct community service work-study programs.

Sec. 445. Work colleges.

PART D—FEDERAL DIRECT LOAN PROGRAM

Sec. 451. Elimination of origination fees and other amendments to terms and conditions of loans.

Sec. 452. Improved student loan servicing and debt collection practices.

Sec. 453. Funds for administrative expenses.

Sec. 454. Federal Direct Loan forgiveness for certain American Indian educators.

PART E—FEDERAL PERKINS LOANS

Sec. 461. Appropriations authorized.

Sec. 462. Perkins allocation of funds.

Sec. 463. Institutional contributions for Perkins.

Sec. 464. Simplification of military deferment eligibility.

Sec. 465. Forgiveness of loans for eligible military service.

Sec. 466. Distribution of assets from student loan funds.

PART F—NEED ANALYSIS

Sec. 471. Increased income protection allowance for dependent students.

Sec. 472. Increased income protection allowance for independent students without dependents other than a spouse.

Sec. 473. Increased income protection allowance for independent students with dependents other than a spouse.

Sec. 474. Updated tables and amounts for income protection allowance.

Sec. 475. Prior prior year; definition of independent student.

PART G—GENERAL PROVISIONS

Sec. 481. Definitions.

Sec. 482. Standard notification format for delinquent borrowers; explanation of benefits of Federal loans.

Sec. 483. Institutional financial aid award letter.

Sec. 483A. Consumer testing.

Sec. 483B. Loan repayment rate and speed-based repayment rate.

Sec. 483C. One-time FAFSA pilot program.

Sec. 484. Ability to benefit.

Sec. 485. Reasonable collection costs in State court judgments.

Sec. 486. Improved disclosures, counseling, and financial assistance information for students.

Sec. 487. Improvements to National Student Loan Data System.

Sec. 488. Competency-based education demonstration program.

Sec. 489. Program participation agreements.

Sec. 490. Civil penalties.

Sec. 491. Advisory Committee on Student Financial Assistance.

Sec. 492. Income-based repayment.

Sec. 493. Extending the protections for student loans for active duty borrowers.

Sec. 493A. Disbursement of credit balance.

Sec. 493B. Disclosure of cohort rates based on repayment plan and deferment status.

Sec. 493C. Institutional reporting requirements.

PART H—PROGRAM INTEGRITY

Sec. 496. Public disclosure of finalized accreditation documents; prohibition on pre-dispute arbitration mandates.

Sec. 497. Improved targeting of program reviews.

Sec. 498. Program review and data.

PART I—STATE-FEDERAL COLLEGE AFFORDABILITY PARTNERSHIP

Sec. 499. State-Federal college affordability partnership.

TITLE V—DEVELOPING INSTITUTIONS

Sec. 501. Rule of construction.

Sec. 502. Authorized activities under part A of title V.

Sec. 503. Duration of grants under title V.

Sec. 504. Authorized activities under part B of title V.

Sec. 505. Duration of grants under part B of title V.

Sec. 506. Waiver authority; reporting requirement; technical assistance.

Sec. 507. Authorizations of appropriations for developing institutions.

TITLE VI—INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Technical and conforming amendment.

Sec. 602. Authorization of appropriations for international and foreign language studies.

Sec. 603. Authorization of appropriations for business and international education programs.

Sec. 604. Authorization of appropriations for the Institute for International Public Policy.

Sec. 605. Authorization of appropriations for the science and technology advanced foreign language education grant program.

TITLE VII—GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Authorization of appropriations for the Jacob K. Javits Fellowship Program.

Sec. 702. Authorization of appropriations for graduate assistance in areas of national need.

Sec. 703. Authorization of appropriations for the Thurgood Marshall Legal Educational Opportunity Program.

Sec. 704. Authorization of appropriations for masters degree programs at historically Black colleges and universities and Predominantly Black Institutions.

Sec. 705. Authorization of appropriations for the fund for improvement of postsecondary education.

Sec. 706. Correctly recognizing educational achievements to empower graduates.

Sec. 707. Authorization of appropriations for demonstration projects to support postsecondary faculty, staff, and administrators in educating students with disabilities.

Sec. 708. Authorization of appropriations for transition programs for students with intellectual disabilities.

Sec. 709. Authorization of appropriations for the Commission on Accessible Materials and programs to support improved access to materials.

Sec. 710. Authorization of appropriations for the National Technical Assistance Center; Coordinating Center.

Sec. 711. First in the world competitive grant program.

Sec. 712. Dual enrollment and early college high school programs.

Sec. 713. Minority-serving institutions innovation fund.

Sec. 714. State competitive grant program for reforms to improve higher education persistence and completion.

TITLE VIII—ADDITIONAL PROGRAMS

Sec. 801. Reorganization.

Sec. 802. Authorization of appropriations for Project Grad.

Sec. 803. Authorization of appropriations for the mathematics and science scholars program.

Sec. 804. Community college and industry partnerships program.

Sec. 805. Authorization of appropriations for capacity for nursing students and faculty.

Sec. 806. Authorization of appropriations for Teach for America.

Sec. 807. Authorization of appropriations for the Patsy T. Mink Fellowship Program.

Sec. 808. Authorization of appropriations for improving science, technology, engineering, and mathematics education with a focus on Alaska Native and Native Hawaiian Students.

Sec. 809. Authorization of appropriations for student safety and campus emergency management.

Sec. 810. Authorization of appropriations for the education disaster and emergency relief program.

Sec. 811. Authorization of appropriations for the jobs to careers program.

Sec. 812. Authorization of appropriations for rural development grants for rural-serving colleges and universities.

Sec. 813. Authorization of appropriations for training for realtime writers.

Sec. 814. Authorization of appropriations for centers of excellence for veteran student success.

Sec. 815. Authorization of appropriations for path to success.

Sec. 816. Authorization of appropriations for the Henry Kuualoha Giugni Kupuna Memorial Archives.

Sec. 817. Appropriations for masters degree programs.

Sec. 818. Appropriations for postbaccalaureate programs.

Sec. 819. Tyler Clementi Program.

TITLE IX—HIGHER EDUCATION OPPORTUNITIES AND SUPPORTS FOR STUDENTS WITH DISABILITIES

Sec. 901. Higher education opportunities and supports for students with disabilities.

TITLE X—AMENDMENTS TO OTHER LAWS

PART A—TRUTH IN LENDING ACT

SUBPART 1—DEFINITIONS

Sec. 1010. Definitions.

SUBPART 2—AMENDMENTS TO TRUTH IN LENDING ACT

Sec. 1011. Exempted transactions.

Sec. 1012. Mandatory certification.

Sec. 1013. Civil liability.

Sec. 1014. Definition of private education loan.

Sec. 1015. Revenue sharing and disclosure of affiliation.

Sec. 1016. Improved consumer protections for student loan servicing.

SUBPART 3—REGULATIONS AND REPORTS

Sec. 1017. Implementation of regulations.

Sec. 1018. Report on credit reporting and student lending.

Sec. 1019. Ombudsman report on private education loan market.

PART B—INTERNAL REVENUE CODE OF 1986

Sec. 1022. Information sharing authority relating to income-based repayment.

PART C—TITLE 11 OF THE UNITED STATES CODE

Sec. 1031. Private loan discharge in bankruptcy.

PART D—SERVICEMEMBERS CIVIL RELIEF ACT

Sec. 1041. Modification of limitation on rate of interest on student loans during and immediately after period of military service.

PART E—UNITED STATES INSTITUTE OF PEACE ACT

Sec. 1051. United States Institute of Peace Act.

TITLE XI—REPORTS, STUDIES, AND MISCELLANEOUS PROVISIONS

Sec. 1101. Consumer protections for students.

Sec. 1102. Longitudinal study of the effectiveness of student loan counseling.

Sec. 1103. Recommendations for student loan counseling.

Sec. 1104. Working group on improvement of resources available to members of the Armed Forces and their spouses in using tuition assistance programs of the Department of Defense.

Sec. 1105. Study on public service loan forgiveness.

Sec. 1106. Longitudinal study of the causes of student loan default.

Sec. 1107. Institutional Risk-Sharing Commission.

Sec. 1108. GAO report on educational attainment of homeless children and youth and foster care children and youth.

Sec. 1109. American Dream Accounts.

Sec. 1110. Study on the impact of Federal financial aid changes on graduate students.

SEC. 3. References.

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 4. General effective date.

Except as otherwise provided in this Act or the amendments made by this Act, this Act and the amendments made by this Act shall take effect on the date of enactment of this Act.

TITLE IGeneral provisions

SEC. 101. Graduate medical schools; postsecondary career and technical education institutions.

(a) In general.—Section 102 (20 U.S.C. 1002) is amended—

(1) in subsection (a)—

(A) in paragraph (1)(B), by striking “vocational” and inserting “career and technical education”; and

(B) in paragraph (2)(A)—

(i) in the matter preceding clause (i), by striking “part D of title IV unless—” and inserting “part D of title IV unless the school meets 1 of the following requirements:”;

(ii) by striking clause (i) and inserting the following:

“(i) GRADUATE MEDICAL SCHOOL.—

“(I) IN GENERAL.—In the case of a graduate medical school located outside the United States—

“(aa)(AA) not less than 60 percent of those enrolled in, and not less than 60 percent of the graduates of, such graduate medical school located outside the United States were not persons described in section 484(a)(5) in the year preceding the year for which a student is seeking a loan under part D of title IV; and

“(BB) not less than 75 percent of the individuals who were nationals of the United States who were students or graduates of the graduate medical school located outside the United States or Canada taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part D of title IV; or

“(bb) the institution—

“(AA) has or had a clinical training program that was approved by a State as of January 1, 1992; and

“(BB) continues to operate a clinical training program in at least 1 State that is approved by that State.

“(II) EXPIRATION OF ALTERNATIVE QUALIFICATION.—The authority of a graduate medical school described in subclause (I)(bb) to qualify for participation in the loan programs under part D of title IV pursuant to this clause shall expire beginning on the first July 1 following the date of enactment of the Higher Education Affordability Act.”;

(iii) in clause (ii)—

(I) by striking “in the case of a veterinary school” and inserting “Veterinary school.—In the case of a veterinary school”; and

(II) by striking “; or” and inserting a period; and

(iv) in clause (iii), by striking “in the case of a nursing school” and inserting “Nursing school.—In the case of a nursing school”; and

(2) in subsection (c)—

(A) in the subsection heading, by striking “vocational” and inserting “career and technical education”;

(B) in paragraph (1), by striking “vocational” and inserting “career and technical education”; and

(C) in paragraph (2), by striking “vocational” and inserting “career and technical education”.

(b) Loss of eligibility.—If a graduate medical school loses eligibility to participate in the loan programs under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) due to the enactment of the amendments made by subsection (a), then a student enrolled at such graduate medical school on or before the date of enactment of this Act may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under such part D while attending such graduate medical school in which the student was enrolled upon the date of enactment of this Act, subject to the student continuing to meet all applicable requirements for satisfactory academic progress, until the earliest of—

(1) withdrawal by the student from the graduate medical school;

(2) completion of the program of study by the student at the graduate medical school; or

(3) the fourth June 30 after such loss of eligibility.

SEC. 102. 85–15 revenue source requirement for proprietary institutions.

Section 102(b) (20 U.S.C. 1002(b)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (D), by striking “and” after the semicolon;

(B) in subparagraph (E), by striking the period and inserting “; and”; and

(C) by adding at the end the following:

“(F) meets the requirements of paragraph (2).”;

(2) by redesignating paragraph (2) as paragraph (3); and

(3) by inserting after paragraph (1) the following:

“(2) REVENUE SOURCES.—

“(A) IN GENERAL.—In order to qualify as a proprietary institution of higher education under this subsection, an institution shall derive not less than 15 percent of the institution's revenues from sources other than Federal funds, as calculated in accordance with subparagraphs (B) and (C).

“(B) FEDERAL FUNDS.—In this paragraph, the term ‘Federal funds’ means any Federal financial assistance provided, under this Act or any other Federal law, through a grant, contract, subsidy, loan, guarantee, insurance, or other means to a proprietary institution, including Federal financial assistance that is disbursed or delivered to an institution or on behalf of a student or to a student to be used to attend the institution, except that such term shall not include any monthly housing stipend provided under chapter 33 of title 38, United States Code.

“(C) CALCULATION OF REVENUE.—In making calculations under subparagraph (A), an institution of higher education shall—

“(i) use the cash basis of accounting;

“(ii) consider as revenue only those funds generated by the institution from—

“(I) tuition, fees, and other institutional charges for students enrolled in programs eligible for assistance under title IV;

“(II) activities conducted by the institution that are necessary for the education and training of the institution's students, if such activities are—

“(aa) conducted on campus or at a facility under the control of the institution;

“(bb) performed under the supervision of a member of the institution's faculty; and

“(cc) required to be performed by all students in a specific educational program at the institution; and

“(III) a contractual arrangement with a Federal agency for the purpose of providing job training to low-income individuals who are in need of such training;

“(iii) presume that any Federal funds that are disbursed or delivered to an institution on behalf of a student or directly to a student will be used to pay the student's tuition, fees, or other institutional charges, regardless of whether the institution credits such funds to the student's account or pays such funds directly to the student, except to the extent that the student's tuition, fees, or other institutional charges are satisfied by—

“(I) grant funds provided by an outside source that—

“(aa) has no affiliation with the institution; and

“(bb) shares no employees with the institution; and

“(II) institutional scholarships described in clause (v);

“(iv) include no loans made by an institution of higher education as revenue to the school, except for payments made by students on such loans;

“(v) include a scholarship provided by the institution—

“(I) only if the scholarship is in the form of monetary aid based upon the academic achievements or financial need of students, disbursed to qualified student recipients during each fiscal year from an established restricted account; and

“(II) only to the extent that funds in that account represent designated funds, or income earned on such funds, from an outside source that—

“(aa) has no affiliation with the institution; and

“(bb) shares no employees with the institution; and

“(vi) exclude from revenues—

“(I) the amount of funds the institution received under part C of title IV, unless the institution used those funds to pay a student's institutional charges;

“(II) the amount of funds the institution received under subpart 4 of part A of title IV;

“(III) the amount of funds provided by the institution as matching funds for any Federal program;

“(IV) the amount of Federal funds provided to the institution to pay institutional charges for a student that were refunded or returned; and

“(V) the amount charged for books, supplies, and equipment, unless the institution includes that amount as tuition, fees, or other institutional charges.

“(D) REPORT TO CONGRESS.—Not later than July 1, 2015, and by July 1 of each succeeding year, the Secretary shall submit to the authorizing committees a report that contains, for each proprietary institution of higher education that receives assistance under title IV and as provided in the audited financial statements submitted to the Secretary by each institution pursuant to the requirements of section 487(c)—

“(i) the amount and percentage of such institution's revenues received from Federal funds; and

“(ii) the amount and percentage of such institution's revenues received from other sources.”.

SEC. 103. Definitions.

Section 103 (20 U.S.C. 1003) is amended—

(1) by redesignating paragraphs (4) through (9), (10) through (14), and (15) through (24), as paragraphs (5) through (10), (13) through (17), and (20) through (28), respectively;

(2) by inserting after paragraph (3) the following:

“(4) DEFAULT MANIPULATION.—The term ‘default manipulation’ means engaging in a device or practice, such as branching, consolidation of campuses, consolidation or manipulation of the identification codes used by the Office of Postsecondary Education to designate campuses and institutions, change of ownership or control, serial forbearance, or any similar device or practice (as determined by the Secretary) when, but for the device or practice, one or more campuses of an institution of higher education would be at risk of cohort default rate sanctions under section 435 or student default risk sanctions under section 489A.”;

(3) by inserting after paragraph (10), as redesignated by paragraph (1), the following:

“(11) FEDERAL EDUCATIONAL ASSISTANCE FUNDS.—The term ‘Federal educational assistance funds’ means funds provided directly to an institution or to a student attending such institution under any of the following provisions of law:

“(A) Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).

“(B) Chapter 30, 31, 32, 33, 34, or 35 of title 38, United States Code.

“(C) Chapter 101, 105, 106A, 1606, 1607, or 1608 of title 10, United States Code.

“(D) Section 1784a, 2005, or 2007 of title 10, United States Code.

“(E) Title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.) or title I of the Workforce Innovation and Opportunity Act (Public Law 113–128).

“(F) The Adult Education and Family Literacy Act (20 U.S.C. 9201 et seq.).

“(12) FOSTER CARE CHILDREN AND YOUTH.—The term ‘foster care children and youth’—

“(A) means children and youth whose care and placement is the responsibility of the State or Tribal agency that administers a State plan under part B or E of title IV of the Social Security Act (42 U.S.C. 621 et seq. and 670 et seq.), without regard to whether foster care maintenance payments are made under section 472 of such Act (42 U.S.C. 672) on behalf of the child or youth; and

“(B) includes individuals whose care and placement was the responsibility of the State or Tribal agency that administers a State plan under part B or E of title IV of the Social Security Act (42 U.S.C. 621 et seq. and 670 et seq.) when they were age 13 or older but are no longer under the care and responsibility of the State or tribal agency.”;

(4) by inserting after paragraph (17), as redesignated by paragraph (1), the following:

“(18) RECRUITING AND MARKETING ACTIVITY.—

“(A) IN GENERAL.—Except as provided in subparagraph (B), the term ‘recruiting and marketing activity’ means an activity that consists of the following:

“(i) Any advertising or promotion activity, including a paid announcement in newspapers, magazines, radio, television, billboards, electronic media, naming rights, or any other public medium of communication, including paying for a display or promotion at a job fair, military installation, or postsecondary education recruiting event.

“(ii) Any effort to identify and attract prospective students, directly or through a contractor or other third party, which shall include any contact concerning a prospective student’s potential enrollment or application for grant, loan, or work assistance under title IV or participation in preadmission or advising activities, including—

“(I) paying employees responsible for overseeing enrollment and for contacting potential students in person, by phone, by email, by internet communications, or by other means, regarding enrollment;

“(II) compensating a person to provide to an institution of higher education contact information regarding prospective students, including information obtained through websites established for such purpose; and

“(III) providing funds to a third party to create or maintain a website for the purpose of obtaining contact information regarding prospective students.

“(iii) Any other activity as the Secretary may determine, including paying for promotion or sponsorship of education or military-related associations.

“(B) EXCEPTION.—An activity that is required as a condition of receipt of funds by an institution under title IV, or under another applicable Federal law, shall not be considered to be a recruiting and marketing activity under subparagraph (A).

“(19) PRIVATE EDUCATION LOAN.—The term ‘private education loan’ has the meaning given the term in section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a)).”; and

(5) in paragraph (28), as redesignated by paragraph (1)—

(A) in the matter before subparagraph (A), by striking “scientifically valid” and inserting “research-based”; and

(B) in subparagraph (B), by striking “all students, including students with disabilities and students who are limited English proficient.” and inserting “all students.”.

SEC. 104. Authorization of appropriations for drug and alcohol abuse prevention.

Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended by striking “2009” and inserting “2015”.

SEC. 105. Mandatory financial aid award letter.

Part B of title I (20 U.S.C. 1011 et seq.) is amended by adding at the end the following:

“SEC. 124. Use of mandatory financial aid award letter.

“(a) In general.—Notwithstanding any other provision of law, each institution of higher education that participates in any program under title IV shall use the financial aid award letter developed under section 483B in providing written or electronic financial aid offers to students enrolled in, or accepted for enrollment in, the institution.

“(b) Effective date.—The requirement under subsection (a) shall take effect 12 months after the Secretary finalizes the financial aid award letter developed under section 483B.”.

SEC. 106. Code of conduct in affiliated consumer financial products or services.

Part B of title I (20 U.S.C. 1011 et seq.), as amended by section 105, is further amended by adding at the end the following:

“SEC. 125. Code of conduct in affiliated consumer financial products or services.

“(a) Definitions.—In this section:

“(1) AFFILIATED.—

“(A) IN GENERAL.—The term ‘affiliated’, when used with respect to a consumer financial product or service and an institution of higher education, means an association between such institution and product or service resulting from—

“(i) the name, emblem, mascot, or logo of the institution being used with respect to such product or service; or

“(ii) some other word, picture, or symbol readily identified with the institution in the marketing of the consumer financial product or service in any way that implies that the institution endorses the consumer financial product or service.

“(B) RULE OF CONSTRUCTION.—Nothing in subparagraph (A) shall be construed to deem an association between an institution of higher education and a consumer financial product or service to be affiliated if such association is solely based on an advertisement by a financial institution that is delivered to a wide and general audience consisting of more than enrolled students at the institution of higher education.

“(2) ASSOCIATED INDIVIDUAL.—The term ‘associated individual’, when used with respect to an institution of higher education, means an individual who is—

“(A) an officer of such institution of higher education;

“(B) an employee or agent of the institution of higher education who is involved in the contracting, approval, analysis, or decisionmaking process for an affiliated consumer financial product or service; or

“(C) an employee or agent of the institution of higher education involved in the marketing or solicitation process pertaining to an affiliated consumer financial product or service.

“(3) CONSUMER FINANCIAL PRODUCT OR SERVICE.—The term ‘consumer financial product or service’ has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481).

“(4) FINANCIAL INSTITUTION.—The term ‘financial institution’ has the meaning given the term in section 140B of the Truth in Lending Act.

“(5) INSTITUTION OF HIGHER EDUCATION.—The term ‘institution of higher education’ means an institution of higher education as defined in section 102.

“(b) Code of conduct.—Notwithstanding any other provision of law, no institution of higher education that is affiliated with a consumer financial product or service shall be eligible to receive funds or any other form of financial assistance under this Act, unless the institution—

“(1) develops a code of conduct with respect to affiliated consumer financial products or services with which associated individuals shall comply that—

“(A) prohibits a conflict of interest with the responsibility of an associated individual with respect to such affiliated consumer financial product or services;

“(B) requires each associated individual to act in the best interest of the students enrolled at the institution of higher education in carrying out their duties; and

“(C) at a minimum, is aligned with the requirements and prohibitions described under subsections (c) through (g);

“(2) publishes such code of conduct prominently on the institution's website; and

“(3) administers and enforces such code by, at a minimum, requiring that all of the institution's associated individuals be annually informed of the provisions of the code of conduct.

“(c) Ban on revenue-Sharing arrangements.—

“(1) PROHIBITION.—An institution of higher education that is affiliated with a consumer financial product or service shall not enter into any revenue-sharing arrangement with the financial institution.

“(2) DEFINITION.—In this subsection, the term ‘revenue-sharing arrangement’—

“(A) means an arrangement between an institution of higher education and a financial institution under which—

“(i) the financial institution provides or issues a consumer financial product or service to students attending the institution of higher education;

“(ii) the institution of higher education recommends, promotes, sponsors, or otherwise endorses the financial institution, or the consumer financial products or services offered by the financial institution; and

“(iii) the financial institution pays a fee or provides other material benefits, including revenue or profit sharing, to the institution of higher education in connection with the consumer financial products or services provided to students of the institution of higher education; and

“(B) does not include an arrangement solely based on a financial institution paying a fair market price to an institution of higher education for the institution of higher education to advertise or market the financial institution to the general public.

“(d) Gift ban.—

“(1) PROHIBITION.—No associated individual of an institution of higher education shall solicit or accept any gift from a financial institution that has a consumer financial product or service with which the institution is affiliated.

“(2) DEFINITION OF GIFT.—

“(A) IN GENERAL.—In this subsection, the term ‘gift’ means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimis amount. The term includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.

“(B) EXCEPTIONS.—The term ‘gift’ shall not include any of the following:

“(i) Standard material, activities, or programs on issues related to a consumer financial product or service or financial literacy, such as a brochure, a workshop, or training. Such material, training, or program shall not promote a product or service of any specific financial institution.

“(ii) Food, refreshments, training, or informational material furnished to an associated individual as an integral part of a training session that is designed to improve the service of a financial institution to the institution of higher education, if such training contributes to the professional development of the associated individual.

“(iii) Favorable terms, conditions, and borrower benefits on a consumer financial product or service provided to all employees of the institution of higher education if such terms, conditions, or benefits are comparable to those provided to all students of the institution.

“(iv) Philanthropic contributions to an institution of higher education from a financial institution that are unrelated to the affiliated consumer financial product or service or the financial institution in general or any contribution from the financial institution that is not made in exchange for any advantage related to the financial institution.

“(C) RULE FOR GIFTS TO FAMILY MEMBERS.—For purposes of this subsection, a gift to a family member of an associated individual of an institution of higher education shall be considered a gift to the associated individual if—

“(i) the gift is given with the knowledge and acquiescence of the associated individual; and

“(ii) the associated individual has reason to believe the gift was given because of the official position of the associated individual.

“(e) Contracting arrangements prohibited.—

“(1) PROHIBITION.—No associated individual of an institution of higher education shall accept from a financial institution that has a consumer financial product or service with which the institution is affiliated a fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to the financial institution or on behalf of the financial institution.

“(2) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed as prohibiting the conduct of an individual who is not an associated individual.

“(f) Ban on staffing assistance.—An institution of higher education shall not request or accept from a financial institution with which the institution has an affiliated consumer financial product or service any assistance with call center staffing, financial aid office staffing, or any other office or department of the institution of higher education.

“(g) Advisory board compensation.—Any associated individual of an institution of higher education who serves on an advisory board, commission, or group established by a financial institution that has a consumer financial product or service with which the institution is affiliated shall be prohibited from receiving anything of value from the financial institution, except that the individual may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.”.

SEC. 107. Restriction on marketing with Federal educational assistance funds.

(a) Transfer.—Section 119 of the Higher Education Opportunity Act (20 U.S.C. 1011m) is amended—

(1) by transferring such section so as to follow section 125 of the Higher Education Act of 1965, as added by section 106; and

(2) by redesignating such section as section 126 of the Higher Education Act of 1965.

(b) Amendments.—Section 126, as transferred and redesignated by subsection (a), is further amended—

(1) in the section heading, by inserting “and Restrictions on Sources of Funds for Recruiting and Marketing Activities” after “Funds”;

(2) in subsection (d), by striking “subsections (a) through (c)” and inserting “subsections (a), (b), (c), and (e)”;

(3) by redesignating subsection (e) as subsection (f);

(4) by inserting after subsection (d) the following:

“(e) Restrictions on sources of funds for recruiting and marketing activities.—

“(1) IN GENERAL.—An institution of higher education, or other postsecondary educational institution, may not use revenues derived from Federal educational assistance funds for recruiting or marketing activities.

“(2) RULE OF CONSTRUCTION.—Nothing in this section shall be construed as a limitation on the use by an institution of revenues derived from sources other than Federal educational assistance funds.

“(3) REPORTING.—Each institution of higher education, or other postsecondary educational institution, that receives revenues derived from Federal educational assistance funds shall report annually to the Secretary and to Congress the institution's expenditures on advertising, marketing, and recruiting, and shall include in such report a verification from an independent auditor that the institution of higher education is in compliance with the requirement under paragraph (1).”;

(5) by striking “the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)” each place the term appears and inserting “this Act”; and

(6) by striking “Secretary of Education” each place the term appears and inserting “Secretary”.

SEC. 108. Minimum standards for net price calculators.

Section 132(h) (20 U.S.C. 1015a(h)) is amended—

(1) by redesignating paragraph (4) as paragraph (6);

(2) in paragraph (2), by inserting before the period “, and, not later than 1 year after the date of enactment of the Higher Education Affordability Act, shall meet the requirements of paragraph (4)(B)”;

(3) in paragraph (3), by inserting after the first sentence the following: “Not later than 1 year after the date of enactment of the Higher Education Affordability Act, such calculator shall meet the requirements of paragraph (4).”;

(4) by inserting after paragraph (3) the following:

“(4) MINIMUM REQUIREMENTS FOR NET PRICE CALCULATORS.—Not later than 1 year after the date of enactment of the Higher Education Affordability Act, a net price calculator for an institution of higher education shall, at a minimum, meet the following requirements:

“(A) The link for the calculator—

“(i) is clearly labeled as a ‘net price calculator’ and is prominently and clearly posted in locations on the institution’s website where information on costs and aid is provided; and

“(ii) may also be included on the institution’s compliance webpage, which contains information relating to compliance with Federal, State, and local laws.

“(B) The results screen for the calculator specifies the following information:

“(i) The net price (as calculated under subsection (h)(2)) for the individual student, which is the most visually prominent figure on the results screen.

“(ii) Cost of attendance for the institution, including—

“(I) tuition and fees;

“(II) the average annual cost of room and board for the institution for a first-time, full-time undergraduate student enrolled in the institution;

“(III) the average annual cost of books and supplies for a first-time, full-time undergraduate student enrolled in the institution; and

“(IV) the estimated cost of other expenses (including personal expenses and transportation) for a first-time, full-time undergraduate student enrolled in the institution.

“(iii) Estimated amount of need-based grant aid and merit-based grant aid, from Federal, State, and institutional sources, that students receive at the institution, showing the subtotal for each category and the total for all sources of grant aid.

“(iv) Percentage of the first-time, full-time undergraduate students enrolled in the institution that received any type of grant aid described in clause (iii).

“(v) The disclaimer described in paragraph (6).

“(vi) In the case of a calculator that—

“(I) includes questions to estimate a student’s (or prospective student’s) eligibility for veterans’ education benefits (as defined in section 480) or educational benefits for active duty service members, such benefits are displayed on the results screen in a manner that clearly distinguishes them from the grant aid described in clause (iii); or

“(II) does not include questions to estimate eligibility for the benefits described in subclause (I), the results screen indicates that certain students (or prospective students) may qualify for such benefits and includes a link to official Federal information about such benefits.

“(C) The institution populates the calculator with data from no earlier than 2 academic years prior to the most recent academic year.

“(5) PRIVACY REQUIREMENTS AND DISCLOSURES.—

“(A) PRIVACY REQUIREMENTS.—An institution of higher education—

“(i) shall carry out this subsection in a manner that complies with the requirements of section 444 of the General Education Provisions Act (commonly known as the ‘Family Educational Rights and Privacy Act of 1974’) (20 U.S.C. 1232g); and

“(ii) shall not—

“(I) allow any personal information, voluntarily provided by users for the net price calculator for the institution to be sold or made available to third parties;

“(II) store any responses made by users through the net price calculator;

“(III) require that a user provide any personally identifiable information in order to use the net price calculator.

“(B) PRIVACY DISCLOSURES.—A net price calculator shall—

“(i) clearly indicate which questions are required to be completed for an estimate of the net price from the calculator;

“(ii) in the case of a calculator that requests contact information from users, clearly mark such requests as ‘optional’;

“(iii) clearly state ‘Any information that you provide on this site is confidential. The Net Price Calculator does not require personally identifiable information of any kind and does not store your responses.’; and

“(iv) be established, maintained, and operated in a manner that is in compliance with the requirements of section 444 of the General Education Provisions Act (commonly known as the ‘Family Educational Rights and Privacy Act of 1974’) (20 U.S.C. 1232g)”; and

(5) by adding at the end the following:

“(7) UNIVERSAL NET PRICE CALCULATOR.—Not later than 2 years after the date of enactment of the Higher Education Affordability Act, the Secretary shall develop a universal net price calculator that—

“(A) enables users to answer one set of questions and receive net prices for any institution that is required to have a net price calculator under this subsection;

“(B) provides the information required under subparagraphs (B) and (C) of paragraph (4) for each institution for which a net price is being sought;

“(C) is developed in consultation with—

“(i) the heads of relevant Federal agencies;

“(ii) representatives of institutions of higher education, nonprofit consumer groups, and secondary and postsecondary students; and

“(iii) secondary school and postsecondary guidance counselors;

“(D) before being finalized and publicly released, is tested in accordance with the consumer testing process described in section 483C; and

“(E) complies with the privacy requirements described in paragraph (5).

“(8) REPORT FROM SECRETARY.—Not later than 2 years after the date of enactment of the Higher Education Affordability Act, the Secretary shall submit a report to Congress on—

“(A) steps taken to raise awareness of net price calculators among prospective students and families, particularly among students in middle school and high school and students from low-income families;

“(B) how institutions are complying with the requirements of this subsection, including an analysis of where institutions are placing the net price calculators on their websites and the design of the net price calculators by institutions; and

“(C) an analysis of how students are benefitting from the use of net price calculators.

“(9) WEBSITE LINK.—The Secretary shall ensure that a link to the website containing the net price calculator and the universal net price calculator (once the universal net price calculator has been developed) is available on each of the following websites:

“(A) The College Navigator website described under subsection (i).

“(B) The College Scorecard website described under section 133.

“(C) The website of the College Affordability and Transparency Center.

“(D) The website of the Office of Federal Student Aid.”.

SEC. 109. Benefits for borrowers who are members of the Armed Forces.

Section 131(f) (20 U.S.C. 1015(f)) is amended to read as follows:

“(f) Benefits for members of the Armed Forces.—

“(1) WEBSITE.—

“(A) IN GENERAL.—The Secretary, in coordination with the Secretary of Defense, the Secretary of Veterans Affairs, and the Secretary of Homeland Security, shall create a revised and updated searchable Internet website that—

“(i) contains information, in simple and understandable terms, about all Federal and State student financial assistance, readmission requirements under section 484C, and other student services, for which members of the Armed Forces (including members of the National Guard and Reserves), veterans, and the dependents of such members or veterans may be eligible; and

“(ii) is easily accessible through the Internet website described in subsection (e)(3).

“(B) IMPLEMENTATION.—Not later than 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall make publicly available the revised and updated Internet website described in subparagraph (A).

“(C) DISSEMINATION.—The Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans Affairs, shall make the availability of the Internet website described in subparagraph (A) widely known to members of the Armed Forces (including members of the National Guard and Reserves), veterans, the dependents of such members or veterans, States, institutions of higher education, and the general public.

“(D) DEFINITION.—In this paragraph, the term ‘Federal and State student financial assistance’ means any grant, loan, work assistance, tuition assistance, scholarship, fellowship, or other form of financial aid for pursuing a postsecondary education that is—

“(i) administered, sponsored, or supported by the Department of Education, the Department of Defense, the Department of Veterans Affairs, or a State; and

“(ii) available to members of the Armed Forces (including members of the National Guard and Reserves), veterans, or the dependents of such members or veterans.

“(2) ENROLLMENT FORM.—

“(A) IN GENERAL.—The Secretary, in consultation with the Director of the Bureau of Consumer Financial Protection, the Secretary of Defense, and the heads of any other relevant Federal agencies, shall create a simplified disclosure and enrollment form for borrowers who are performing eligible military service (as defined in section 481(d)).

“(B) CONTENTS.—The disclosure and enrollment form described in subparagraph (A) shall include—

“(i) information about the benefits and protections under title IV and under the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) that are available to such borrower because the borrower is performing eligible military service; and

“(ii) an opportunity for the borrower, by completing the enrollment form, to invoke certain protections, activate certain benefits, and enroll in certain programs that may be available to that borrower, which shall include the opportunity—

“(I) to invoke applicable protections that are available under the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.), as such protections relate to Federal student loans under title IV; and

“(II) to activate or enroll in any other applicable benefits that are available to such borrower under this Act because the borrower is performing eligible military service, such as eligibility for a deferment or eligibility for a period during which interest shall not accrue.

“(C) IMPLEMENTATION.—Not later than 365 days after the date of the enactment of the Higher Education Affordability Act, the Secretary shall make available to eligible institutions, eligible lenders, and personnel at the Department of Defense and other Federal agencies that provide services to borrowers who are members of the Armed Forces or the dependents of such members, the disclosure and enrollment form described in subparagraph (A).

“(D) NOTICE REQUIREMENTS.—

“(i) SCRA INTEREST RATE LIMITATION.—The completion of the disclosure and enrollment form created pursuant to subparagraph (A) by the borrower of a loan made, insured, or guaranteed under part B or part D of title IV who is otherwise subject to the interest rate limitation in subsection (a) of section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527(a)) and submittal of such form to the Secretary shall be considered, for purposes of such section, provision to the creditor of written notice as described in subsection (b)(1) of such section.

“(ii) FFEL LENDERS.—The Secretary shall provide each such disclosure and enrollment form completed and submitted by a borrower of a loan made, insured, or guaranteed under part B of title IV who is otherwise subject to the interest rate limitation in subsection (a) of section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527(a)) to any applicable eligible lender under part B of title IV so as to satisfy the provision to the lender of written notice as described in subsection (b)(1) of such section.”.

SEC. 110. Data improvements for college navigator.

Section 132(i)(1) (20 U.S.C. 1015(i)(1)) is amended by striking subparagraph (M) and inserting the following:

“(M) The student faculty ratio, the number of full-time faculty, the ratio of the number of course sections taught by part-time instructors to the number of course sections taught by full-time faculty, the mean and median years of employment for part-time instructors, and the number of graduate assistants with primarily instructional responsibilities, at the institution.”.

SEC. 111. College scorecard.

Part C of title I (20 U.S.C. 1015 et seq.) is amended—

(1) by redesignating sections 133 through 137 as sections 134 through 138, respectively; and

(2) by inserting after section 132 the following:

“SEC. 133. College scorecard.

“(a) Definitions.—In this section:

“(1) COLLEGE SCORECARD.—The term ‘College Scorecard’ refers to the College Scorecard website developed and operated by the Department under subsection (b) and any successor website.

“(2) INSTITUTION OF HIGHER EDUCATION.—The term ‘institution of higher education’ means an institution of higher education, as defined in section 102, that awards a degree or certificate.

“(3) RECENT GRADUATE.—The term ‘recent graduate’, when used in reference to a graduate of an institution of higher education, shall mean a student who completed a course of study and earned a certificate or degree at the institution in any of the 6 most recent preceding years for which data are available.

“(b) In general.—The Secretary shall develop and make publicly available a College Scorecard website to provide students and families with information regarding higher education affordability and value for each institution of higher education that receives funds under title IV.

“(c) Standard format.—

“(1) IN GENERAL.—The Secretary, in consultation with the heads of relevant Federal agencies, shall develop a standard format to be used by the Secretary for public disclosure of information related to higher education affordability and value, including the information described in subsections (d) and (e).

“(2) RECOMMENDATIONS FROM OTHER GROUPS.—The standard format developed under paragraph (1) shall be based on recommendations from representatives of secondary school students and postsecondary students, the families of secondary school and postsecondary students, institutions of higher education, secondary school and postsecondary education counselors, and nonprofit consumer groups.

“(3) SOURCES OF DATA.—The data used in the standard format shall be data that are available to the Secretary through other sources and reports.

“(d) Key required contents.—The standard format developed under subsection (c) shall include, in a consumer-friendly manner that is simple and understandable, the following information for each degree- and certificate-granting institution of higher education that receives funds under title IV for the most recent year for which data are available:

“(1) NET PRICE INFORMATION.—

“(A) The average net price paid by enrolled students to attend the institution, calculated in a manner consistent with section 132(a)(3), for the subgroups of students at the institution in each of the following annual family income categories, and the percentage of students in each category:

“(i) $0 to $30,000.

“(ii) $30,001 to $48,000.

“(iii) $48,001 to $75,000.

“(iv) $75,001 to $110,000.

“(v) $110,001 and more.

“(B) A visual representation that provides context for the information conveyed under subparagraph (A), including how the net price information compares to other institutions.

“(C) The Commissioner of the National Center for Education Statistics may periodically adjust the annual family income categories described under subparagraph (A).

“(2) COMPLETION AND TRANSFER DATA.—

“(A) For each institution, the percentages of certificate- or degree-seeking undergraduate students enrolled at the institution who obtain a certificate or degree within—

“(i) 100 percent of the normal time for completion of, or graduation from, the student’s educational program; and

“(ii) 150 percent of the normal time for completion of, or graduation from, the student’s educational program.

“(B) For each institution, the percentages of certificate- or degree-seeking undergraduate students enrolled at the institution—

“(i) who persist and remain enrolled in the institution from academic term to academic term; and

“(ii) who persist and remain enrolled in the institution from year to year.

“(C) For each institution, the percentages of certificate- or degree-seeking undergraduate students who have transferred to a 4-year institution of higher education within—

“(i) 100 percent of the normal time for completion of, or graduation from, the student’s initial educational program; and

“(ii) 150 percent of the normal time for completion of, or graduation from, the student’s initial educational program.

“(D) For each institution, a visual representation that provides context for the information conveyed under subparagraphs (A) and (B) and, as applicable, subparagraph (C), including how the completion, transfer, and persistence rates compare to other institutions.

“(3) LOAN INFORMATION.—

“(A) The percentage of students at the institution who have completed their certificate or degree program and who borrowed 1 or more loans under part B, D, or E of title IV, or private education loans, while attending the institution.

“(B) The institution's speed-based loan repayment rate, as calculated under section 483D(c) and the comparison information described in section 483D(c)(4).

“(C) A visual representation that provides context for the information conveyed under this paragraph, including how the information described in subparagraphs (A) and (B) compares to other institutions.

“(4) DEBT INFORMATION.—

“(A) The mean and median student loan debt, including private education loan debt, incurred by students who have earned a certificate or degree from the institution and who borrowed student loans in the course of obtaining such certificate or degree in the most recent year for which data are available.

“(B) The percentage of students at the institution who have borrowed money to attend the institution.

“(C) A visual representation that provides context for the information conveyed under subparagraphs (A) and (B), including how the debt information compares to other institutions.

“(5) REPAYMENT INFORMATION.—

“(A) The expected monthly repayment amounts for the mean and median student loan debt described in paragraph (4), under a standard repayment plan described in section 455(d)(1)(A) based on a 10-year period.

“(B) A visual representation that provides context for the information conveyed under subparagraph (A), including how the repayment information compares to other similar institutions.

“(6) TYPE OF INSTITUTION.—A specification as to—

“(A) whether the institution of higher education is a public, private nonprofit, or private for-profit institution; and

“(B) whether the institution is a 4-year, 2-year, or less than 2-year institution and which degree type the institution primarily awards.

“(7) ADDITIONAL INFORMATION.—Any other information the Secretary, in consultation with the heads of relevant Federal agencies, representatives of institutions of higher education, nonprofit consumer groups, and secondary and postsecondary students, and secondary school and postsecondary guidance counselors, determines necessary so that students and parents can make informed decisions regarding postsecondary education.

“(e) College tuition transparency information.—The standard format developed for institutions of higher education under subsection (c) shall—

“(1) prominently and clearly identify if the institution has been identified under section 132(c)(1), and the reasons for each institution's identification; and

“(2) provide a link to the webpage of the net price calculator of the institution, as required under section 132(h)(3).

“(f) Additional requirements.—The standard format developed by the Secretary under subsection (c) shall—

“(1) use, for the terms described in subsection (d), standard definitions and names that are developed by the Secretary in consultation with the heads of relevant Federal agencies, representatives of institutions of higher education, nonprofit consumer groups, secondary and postsecondary students, and secondary school and higher education guidance counselors; and

“(2) use standard formatting and design that the Secretary, in consultation with the heads of relevant Federal agencies, representatives of institutions of higher education, nonprofit consumer groups, secondary school students, postsecondary students, and secondary school and higher education guidance counselors determine are clear, understandable, and suitable for secondary school students.

“(g) Consumer testing.—The Secretary shall carry out consumer testing for the College Scorecard in accordance with section 483C.

“(h) Final standard format and availability of college scorecard.—Not later than 60 days after the conclusion of the consumer testing required under subsection (h), the Secretary shall—

“(1) submit to the authorizing committees the final standard format for the College Scorecard and a report describing the results of consumer testing, including whether the Secretary added any additional items pursuant to subsection (d)(8); and

“(2) make the final College Scorecard, including all information required for the standard format under subsections (d) and (e) for all institutions of higher education that receive funds until title IV, publicly available through a College Scorecard website and through a link on the following other websites:

“(A) The College Navigator website described under section 132(i).

“(B) The website of the College Affordability and Transparency Center.

“(C) The website of the Office of Federal Student Aid.

“(i) Distribution of college scorecard.—Each institution of higher education receiving funds under title IV shall—

“(1) make the most recent College Scorecard for the institution publicly available on the website of the institution;

“(2) distribute the most recent College Scorecard for the institution to prospective students and accepted students of the institution—

“(A) in the same format in which the institution communicates with prospective and accepted students about applying to and enrolling in the institution; and

“(B) in a manner that allows for the student or the family of the student to take such information into account before applying or enrolling, without regard to whether the information was requested; and

“(3) in the case of an institution with high student default risk that is required under section 487(a)(32) to provide a student accepted for enrollment with a waiting period of not less than 2 weeks to consider postsecondary options, disclose to the student the College Scorecard of the institution at or before the start of such waiting period.

“(j) Public awareness campaign.—

“(1) IN GENERAL.—Not later than 180 days after the date of enactment of the Higher Education Affordability Act, the Secretary shall coordinate, with entities such as States, institutions of higher education, State educational agencies, local educational agencies, secondary schools, and other agencies, and organizations involved in access to higher education and student financial aid, and implement a public awareness campaign in order to increase national awareness of the College Scorecard.

“(2) CONTENT AND IMPLEMENTATION OF CAMPAIGN.—The public awareness campaign carried out under this subsection shall disseminate information regarding the functions and methods of accessing the College Scorecard, and shall be implemented, to the extent practicable, using a variety of media, including print, television, radio, and the Internet.

“(3) USE OF RESEARCH-BASED STRATEGIES.—The Secretary shall design and implement the public awareness campaign carried out under this subsection based on relevant independent research and information on dissemination strategies found suitable for students in secondary school and postsecondary education.”.

SEC. 112. Reporting requirements.

Section 135(b), as redesignated by section 111, is amended—

(1) in paragraph (1), by striking “and” after the semicolon;

(2) in paragraph (2), by striking the period and inserting “; and”; and

(3) by adding at the end the following:

“(3) is developed pursuant to the institutional reporting requirements under section 493G.”.

SEC. 113. In-State tuition rates for certain individuals.

Section 136, as redesignated by section 111, is amended to read as follows:

“SEC. 136. In-State tuition rates for certain individuals.

“(a) Members of the Armed Forces on active duty.—

“(1) REQUIREMENT.—In the case of a member of the Armed Forces who is on active duty for a period of more than 30 days and whose domicile or permanent duty station is in a State that receives assistance under this Act, such State shall not charge such member (or the spouse or dependent child of such member) tuition for attendance at a public institution of higher education in the State at a rate that is greater than the rate charged for residents of the State.

“(2) CONTINUATION.—If a member of the Armed Forces (or the spouse or dependent child of a member) pays tuition at a public institution of higher education in a State at a rate determined by paragraph (1), the provisions of paragraph (1) shall continue to apply to such member, spouse, or dependent while continuously enrolled at that institution, notwithstanding a subsequent change in the permanent duty station of the member to a location outside the State.

“(b) Homeless children or youths and foster care children or youths.—A State shall not charge a homeless child or youth or a foster care child or youth tuition for attendance at a public institution of higher education in the State at a rate that is greater than the rate charged for residents of the State, if the homeless child or youth or foster care child or youth—

“(1) graduated from secondary school or obtained the recognized equivalent of a secondary school diploma in such State;

“(2) resided in such State as a homeless child or youth or a foster care child or youth while attending secondary school in an adjacent State, as verified by—

“(A) a local educational agency homeless liaison, designated pursuant to section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii));

“(B) the director (or a designee of the director) of an emergency or transitional shelter, street outreach program, homeless youth drop-in center, or other program serving homeless youth or families;

“(C) the director (or a designee of the director) of a program funded under chapter 1 or 2 of subpart 2 of part A of title IV; or

“(D) the State or tribal organization that administers a State plan under part B or E of title IV of the Social Security Act (42 U.S.C. 621 et seq. and 670 et seq.).

“(c) Effective dates.—

“(1) ARMED FORCES.—With respect to an individual described in subsection (a)(1), this section shall take effect at each public institution of higher education in a State that receives assistance under this Act for the first period of enrollment at such institution that begins after July 1, 2009.

“(2) HOMELESS CHILDREN OR YOUTHS AND FOSTER CARE CHILDREN OR YOUTHS.—With respect to an individual described in subsection (b), this section shall take effect at each public institution of higher education in a State that receives assistance under this Act for the first period of enrollment at such institution that begins after July 1, 2015.

“(d) Definitions.—

“(1) Armed Forces AND active duty for a period of more than 30 days.—In this section, the terms ‘Armed Forces’ and ‘active duty for a period of more than 30 days’ have the meanings given those terms in section 101 of title 10, United States Code.

“(2) HOMELESS CHILDREN AND YOUTHS.—The term ‘homeless children and youths’ has the meaning given the term in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a).”.

SEC. 114. State higher education information system pilot program.

Section 137(g), as redesignated by section 111, is amended by striking “2009” and inserting “2015”.

SEC. 115. Responsibilities of FSA Ombudsman; addition of point of contact for military families and homeless children.

Section 141(f) (20 U.S.C. 1018(f)) is amended—

(1) in paragraph (3)—

(A) in subparagraph (A), by striking “and” after the semicolon;

(B) in subparagraph (B), by striking the period at the end and inserting “; and”; and

(C) by adding at the end the following:

“(C) receive, review, and resolve expeditiously complaints regarding a student's independence under subparagraph (B) or (H) of section 480(d)(1), in consultation with knowledgeable parties, including child welfare agencies, local educational agency liaisons for homeless children and youths designated under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et seq.) or State Coordinators for Education of Homeless Children and Youths established under such subtitle.”;

(2) by redesignating paragraph (4) as paragraph (5); and

(3) by inserting after paragraph (3) the following:

“(4) MILITARY AND VETERAN POINT OF CONTACT.—

“(A) IN GENERAL.—The Chief Operating Officer, in consultation with the Secretary, shall designate 1 or more employees to act as the military and veteran point of contact within the office of the Student Loan Ombudsman.

“(B) FUNCTIONS.—The designated military and veteran point of contact described in subparagraph (A) shall—

“(i) monitor the complaints received from the Ombudsman under paragraph (3)(A) from, and provide timely assistance to, members of the Armed Forces (including members of the National Guard and Reserves), veterans, and their dependents;

“(ii) coordinate with other agencies, including the Department of Defense, the Department of Veterans Affairs, the Department of Homeland Security, and the Bureau of Consumer Financial Protection, to ensure that members of the Armed Forces, veterans, and the dependents of members of the Armed Forces and veterans, who are students, borrowers, or potential borrowers, are aware of the availability and functions of the Ombudsman; and

“(iii) issue to the Committee on Health, Education, Labor, and Pensions of the Senate, the Committee on Education and the Workforce of the House of Representatives, the Committee on Veterans' Affairs of the Senate, the Committee on Veterans' Affairs of the House of Representatives, the Committee on Armed Services of the Senate, and the Committee on Armed Services of the House of Representatives an annual report on the challenges that such members of the Armed Forces, veterans, and dependents are facing as students, borrowers, and potential borrowers.”.

SEC. 116. Responsibilities of covered institutions, institution-affiliated organizations, and lenders.

Section 152 (20 U.S.C. 1019a) is amended—

(1) in the matter preceding clause (i) of subsection (a)(1)(A), by striking “(h) of section 487” and inserting “(g) of section 487”; and

(2) in subsection (b)(1)(B)(i)(I), by striking “section 487(e)” and inserting “section 487(d)”.

SEC. 117. Establishment of complaint resolution and tracking system.

Title I (20 U.S.C. 1001 et seq.) is amended—

(1) by striking section 155; and

(2) by adding at the end the following:

“PART FComplaint Tracking System

“SEC. 161. Complaint tracking system.

“(a) Definition of complainant.—In this section, the term ‘complainant’ means—

“(1) a student of a postsecondary educational institution;

“(2) a family member of a student of a postsecondary educational institution;

“(3) a third party acting on behalf of a student of a postsecondary educational institution; or

“(4) a staff member or employee of a postsecondary educational institution.

“(b) Establishment of complaint tracking system.—

“(1) ESTABLISHMENT OF COMPLAINT TRACKING SYSTEM.—

“(A) IN GENERAL.—Not later than 1 year after the enactment of the Higher Education Affordability Act, the Secretary shall complete the establishment of a complaint tracking system that includes a single, toll-free telephone number and a website to facilitate the centralized collection of, monitoring of, and response to complaints or inquiries regarding the educational practices and services, and recruiting and marketing practices, of all postsecondary educational institutions.

“(B) PURPOSE.—The purpose of the complaint tracking system is to address allegations of fraud, misrepresentation, or negligence with respect to recruitment and marketing to students.

“(2) ESTABLISHMENT OF COMPLAINT TRACKING OFFICE.—The Secretary shall establish within the Department an office whose functions shall include establishing, administering, and disseminating widely information about the complaint tracking system established under paragraph (1). The Secretary shall—

“(A) to the extent necessary, combine and consolidate the other offices and functions of the Department in order to ensure that the office established under this paragraph is the single point of contact for students and borrowers with complaints; and

“(B) to the extent practicable, ensure that the office established in this paragraph will work with the Student Loan Ombudsman appointed in accordance with section 141(f) to assist borrowers that have complaints regarding the educational practices and services, and recruiting and marketing practices, of postsecondary educational institutions.

“(c) Handling of complaints.—

“(1) TIMELY RESPONSE TO COMPLAINTS.—The Secretary shall establish, in consultation with the heads of appropriate agencies, reasonable procedures to provide a timely response to complainants, in writing where appropriate, to complaints against, or inquiries concerning, an institution of higher education that receives funds under this Act. Each response shall include a description of—

“(A) the steps that have been taken by the Secretary in response to the complaint or inquiry;

“(B) any responses received by the Secretary from the institution of higher education; and

“(C) any additional actions that the Secretary has taken, or plans to take, in response to the complaint or inquiry.

“(2) TIMELY RESPONSE TO SECRETARY BY INSTITUTION OF HIGHER EDUCATION.—The Secretary shall notify each institution of higher education that receives funds under this Act and that is the subject of a complaint or inquiry under this section regarding the complaint or inquiry. Not later than 60 days after receiving such notice, such institution shall provide a response to the Secretary concerning the complaint or inquiry, including—

“(A) the steps that have been taken by the institution to respond to the complaint or inquiry;

“(B) all responses received by the institution from the complainant; and

“(C) any additional actions that the institution has taken, or plans to take, in response to the complaint or inquiry.

“(3) FURTHER INVESTIGATION.—The Secretary may, in the event that the complaint is not adequately resolved or addressed by the responses of the institution of higher education receiving funds under this Act under paragraph (2), ask additional questions of such institution or seek additional information from or action by the institution.

“(4) PROVISION OF INFORMATION.—

“(A) IN GENERAL.—An institution of higher education that receives funds under this Act shall, in a timely manner, comply with a request by the Secretary for information in the control or possession of such institution concerning a complaint or inquiry received by the Secretary under subsection (a), including supporting written documentation, subject to subparagraph (B).

“(B) EXCEPTIONS.—An institution of higher education that receives funds under this Act shall not be required to make available under this subsection—

“(i) any nonpublic or confidential information, including any confidential commercial information;

“(ii) any information collected by the institution for the purpose of preventing fraud or detecting or making any report regarding other unlawful or potentially unlawful conduct; or

“(iii) any information required to be kept confidential by any other provision of law.

“(5) COMPLIANCE.—An institution of higher education that receives funds under this Act shall comply with the requirements to provide responses and information, in accordance with this subsection, as a condition of receiving such funds.

“(d) Transparency.—

“(1) SHARING INFORMATION WITH FEDERAL AND STATE AGENCIES.—As appropriate and in accordance with section 444 of the General Education Provisions Act (20 U.S.C. 1232g) (commonly referred to as the “Family Educational Rights and Privacy Act of 1974”) and other laws, the Secretary shall coordinate with the heads of relevant Federal and State agencies to—

“(A) collect complaints related to the complaint tracking system described in subsection (b) from such agencies; and

“(B) route such complaints to relevant Federal and State agencies when appropriate.

“(2) INTERACTION WITH EXISTING COMPLAINT SYSTEMS.—To the extent practicable, all procedures established under this section, and all coordination carried out under paragraph (1), shall be done in accordance with the complaint tracking systems established under Executive Order 13607 (77 Fed. Reg. 25861; relating to establishing principles of excellence for educational institutions serving servicemembers, veterans, spouses, and other family members).

“(3) PUBLIC INFORMATION.—

“(A) IN GENERAL.—The Secretary shall regularly publish on the website of the Department information on the complaints and inquiries received for each postsecondary educational institution under this section, including—

“(i) the number of complaints and inquiries received;

“(ii) the types of complaints and inquiries received; and

“(iii) where applicable, information about the resolution of the complaints and inquiries.

“(B) DATA PRIVACY.—In carrying out subparagraph (A), the Secretary shall—

“(i) comply with applicable data privacy laws and regulations; and

“(ii) ensure that personally identifiable information is not shared.

“(C) APPEALS PROCESS.—The Secretary shall establish an appeals process to allow postsecondary educational institutions to challenge or appeal a complaint after such complaint has been made public. A postsecondary educational institution shall provide adequate documentation to the Secretary to demonstrate that such a complaint is unfounded before the Secretary may decide to remove the complaint from the website of the Department.

“(4) REPORTS.—Each year, the Secretary shall prepare and submit a report to the authorizing committees describing—

“(A) the types and nature of complaints the Secretary has received under this section;

“(B) the extent to which complainants are receiving relief pursuant to this section;

“(C) whether particular types of complaints are more common in a given sector of postsecondary educational institutions;

“(D) any legislative recommendations that the Secretary determines are necessary to better assist students and families; and

“(E) the schools with the highest volume of complaints, as determined by the Secretary.”.

SEC. 118. Proprietary education oversight coordination committee.

Title I (20 U.S.C. 1001 et seq.), as amended by section 117, is further amended by adding at the end the following:

“PART GProprietary Education Oversight Coordination Improvement

“SEC. 166. Definitions.

“In this part:

“(1) 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 such corporation;

“(B) a vice president of such corporation who is in charge of a principal business unit, division, or function of such corporation, such as sales, administration, or finance; or

“(C) any other officer or person who performs a policy making function for such corporation.

“(2) FEDERAL FUNDS.—The term ‘Federal funds’ means Federal funds described in section 102(b)(2)(B).

“(3) PROPRIETARY INSTITUTION OF HIGHER EDUCATION.—The term ‘proprietary institution of higher education’ has the meaning given the term in section 102(b).

“(4) STATE APPROVAL AGENCY.—The term ‘State approval agency’ means any State agency that determines whether an institution of higher education is legally authorized within such State to provide a program of education beyond secondary education.

“(5) VETERANS SERVICE ORGANIZATION.—The term ‘veterans service organization’ means an organization recognized by the Secretary of Veterans Affairs for the representation of veterans under section 5902 of title 38, United States Code.

“SEC. 167. Establishment of Committee.

“(a) Establishment.—There is established a committee to be known as the ‘Proprietary Education Oversight Coordination Committee’ (referred to in this title as the ‘Committee’) and to be composed of the head (or the designee of such head) of each of the following Federal entities:

“(1) The Department of Education.

“(2) The Bureau of Consumer Financial Protection.

“(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 or department.

“(b) Purposes.—The Committee shall have the following purposes:

“(1) Coordinate Federal oversight of proprietary institutions of higher education to—

“(A) improve enforcement of applicable Federal laws and regulations;

“(B) increase accountability of proprietary institutions of higher education to students and taxpayers; and

“(C) ensure the promotion of quality education programs.

“(2) Coordinate Federal activities to protect students from unfair, deceptive, abusive, unethical, fraudulent, or predatory practices, policies, or procedures of proprietary institutions of higher education.

“(3) Encourage information sharing among agencies related to Federal investigations, audits, or inquiries of proprietary institutions of higher education.

“(4) 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.

“(5) Develop best practices and 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 such information.

“(c) Membership.—

“(1) DESIGNEES.—For any designee described in subsection (a), the head of the member entity shall appoint a high-level official who exercises significant decision making authority for the oversight or investigatory activities and responsibilities related to proprietary institutions of higher education of the respective Federal entity of such head.

“(2) CHAIRPERSON.—The Secretary of Education or the designee of such Secretary shall serve as the Chairperson of the Committee.

“(3) COMMITTEE SUPPORT.—The head of each entity described in subsection (a) shall ensure appropriate staff and officials of such entity are available to support the Committee-related work of such entity.

“SEC. 168. Meetings.

“(a) Committee meetings.—The members of the Committee shall meet regularly, but not less than once during each quarter of each fiscal year, to carry out the purposes described in section 167(b).

“(b) Meetings with State agencies and stakeholders.—The Committee shall meet not less than once each fiscal year, and shall otherwise interact regularly, with State Attorneys General, State approval agencies, veterans service organizations, and consumer advocates to carry out the purposes described in section 167(b).

“SEC. 169. Report.

“(a) In general.—The Committee shall submit a report each year to the authorizing committees, and any other committee of Congress that the Committee determines appropriate.

“(b) Public access.—The report described in subsection (a) shall be made available to the public in a manner that is easily accessible to parents, students, and other stakeholders in accordance with the best practices developed under section 167(b)(5).

“(c) Contents.—

“(1) IN GENERAL.—The report shall include—

“(A) an accounting of any action (as defined in paragraph (3)) taken by the Federal Government, any member entity of the Committee, or a State—

“(i) to enforce Federal or State laws and regulations applicable to proprietary institutions of higher education;

“(ii) to hold proprietary institutions of higher education accountable to students and taxpayers; and

“(iii) to promote quality education programs;

“(B) a summary of complaints against each proprietary institution of higher education received by any member entity of the Committee;

“(C) the data described in paragraph (2) and any other data relevant to proprietary institutions of higher education that the Committee determines appropriate; and

“(D) recommendations of the Committee for such 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 and taxpayers; and

“(iii) ensure the promotion of quality education programs.

“(2) DATA.—

“(A) INDUSTRY-WIDE DATA.—The report shall include data on all proprietary institutions of higher education that consists of information regarding—

“(i) the total amount of Federal funds that proprietary institutions of higher education received for the previous academic year, and the percentage of the total amount of Federal funds provided to institutions of higher education (as defined in section 102) for such previous academic year that reflects such total amount of Federal funds provided to proprietary institutions of higher education for such previous academic year;

“(ii) the total amount of Federal funds that proprietary institutions of higher education disbursed or delivered, on behalf of a student, or to a student to be used to attend an institution of higher education, for the previous academic year, disaggregated by—

“(I) educational assistance in the form of a loan provided under title IV;

“(II) educational assistance in the form of a grant provided under title IV;

“(III) educational assistance provided under chapter 33 of title 38, United States Code;

“(IV) tuition assistance provided under section 2007 of title 10, United States Code;

“(V) assistance provided under section 1784a of title 10, United States Code; and

“(VI) Federal funds not described in subclauses (I) through (V);

“(iii) the percentage of the total amount of Federal funds provided to institutions of higher education (as defined in section 102) for such previous academic year for each of the programs described in subclauses (I) through (V) of clause (ii) that reflects such total amount of Federal funds provided to proprietary institutions of higher education for such previous academic year for each of such 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)) for proprietary institutions of higher education, and an annual list of cohort default rates (as defined in such section) for all proprietary institutions of higher education;

“(vi) for careers requiring the passage of a licensing examination—

“(I) the passage rate of individuals who attended a proprietary institution of higher education taking such examination to pursue such a career; and

“(II) the passage rate of all individuals taking such exam to pursue such a career; and

“(vii) the use of private education loans at proprietary institutions of higher education that includes—

“(I) an estimate of the total number of such loans; and

“(II) information on the average debt, default rate, and interest rate of such loans.

“(B) DATA ON PUBLICLY TRADED CORPORATIONS.—

“(i) IN GENERAL.—The report shall include data on proprietary institutions of higher education that are publicly traded corporations, consisting of information on—

“(I) any pre-tax profit of such proprietary institutions of higher education—

“(aa) reported as a total amount and an average percent of revenue for all such proprietary institutions of higher education; and

“(bb) reported for each such proprietary institution of higher education;

“(II) revenue for such 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 percent of revenue for all such proprietary institutions of higher education; and

“(bb) for each such proprietary institution of higher education;

“(III) total compensation packages of the executive officers of each such proprietary institution of higher education;

“(IV) a list of institutional loan programs offered by each such proprietary institution of higher education that includes information on the default and interest rates of such 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 total cost of attendance for each program at each such proprietary institution of higher education, and information comparing such total cost for each such program to—

“(aa) the total cost of attendance for each program at each public institution of higher education; and

“(bb) the average total cost of attendance for each program at all institutions of higher education, including such institutions that are public and such institutions that are private;

“(II) total enrollment, disaggregated by—

“(aa) individuals enrolled in programs taken online; and

“(bb) individuals enrolled in programs that are not taken online;

“(III) the average retention and graduation rates for students pursuing a degree at such proprietary institutions of higher education;

“(IV) the percentage of students enrolled in such proprietary institutions of higher education who complete a program of such an institution within—

“(aa) the standard period of completion for such program; and

“(bb) a period that is 150 percent of such standard period of completion;

“(V) the total cost of attendance for each program at such proprietary institutions of higher education;

“(VI) the average cohort default rate, as defined in section 435(m), for such proprietary institutions of higher education, and an annual list of cohort default rates (as defined in such section) for all proprietary institutions of higher education;

“(VII) the median educational debt incurred by students who complete a program at such a proprietary institution of higher education;

“(VIII) the median educational debt incurred by students who start but do not complete a program at such a proprietary institution of higher education;

“(IX) the job placement rate for students who complete a program at such a proprietary institution of higher education and the type of employment obtained by such students;

“(X) for careers requiring the passage of a licensing examination, the rate of individuals who attended such a proprietary institution of higher education and passed such an examination; and

“(XI) the number of complaints from students enrolled in such proprietary institutions of higher education who have submitted a complaint to any member entity of the Committee.

“(iii) DEPARTMENT OF DEFENSE AND VETERANS AFFAIRS ASSISTANCE.—

“(I) IN GENERAL.—To the extent practicable, the report shall provide information on the data described in clause (ii) for individuals using, to pay for the costs of attending such a proprietary institution of higher education, Federal funds provided under title 10, United States Code or title 38, 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 funds 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 such data for public institutions of higher education disaggregated by State.

“(3) ACCOUNTING OF ANY ACTION.—For the purposes of paragraph (1)(A), the term ‘any action’ shall include—

“(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 of 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. 170. Warning list for parents and students.

“(a) In general.—Each academic year, the Committee shall publish a list to be known as the ‘Warning List for Parents and Students’ to be comprised of proprietary institutions of higher education—

“(1) that have engaged in illegal activity during the previous academic year as determined by a Federal or State court;

“(2) that have entered into a settlement resulting in a monetary payment;

“(3) that have had any higher education program withdrawn or suspended; or

“(4) for which the Committee has sufficient evidence of widespread or systemic unfair, deceptive, abusive, unethical, fraudulent, or predatory practices, policies, or procedures that pose a threat to the academic success, financial security, or general best interest of students.

“(b) Determinations.—In making a determination pursuant to subsection (a)(4), the Committee may consider evidence that includes the following:

“(1) Any consumer complaint collected by any member entity of the Committee.

“(2) Any complaint filed by a Federal or State agency in a Federal, State, local, or tribal court.

“(3) Any administrative proceeding by a Federal or State agency involving noncompliance of any applicable law or regulation.

“(4) 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.

“(5) Data or information submitted by a proprietary institution of higher education to any accrediting agency or association recognized by the Secretary of Education pursuant to section 496 or the findings or adverse actions of any such accrediting agency or association.

“(6) Information submitted by a proprietary institution of higher education to any member entity of the Committee.

“(7) Any other evidence that the Committee determines relevant in making a determination pursuant to subsection (a)(4).

“(c) Publication.—Not later than July 1 of each fiscal year, the Committee shall publish the list described in subsection (a) prominently and in a manner that is easily accessible to parents, students, and other stakeholders in accordance with any best practices developed under section 167(b)(5).”.

TITLE IIImproving educator preparation

SEC. 201. Improving educator preparation.

Title II (20 U.S.C. 1021 et seq.) is amended to read as follows:

“TITLE IIImproving Educator Preparation

“SEC. 200. Definitions.

“In this title:

“(1) APPLIED LEARNING.—The term ‘applied learning’ means a strategy that—

“(A) engages students in opportunities to apply rigorous academic content aligned with postsecondary-level expectations to real world experience, through such means as work experience, work-based learning, problem-based learning, project-based learning or service-learning; and

“(B) develops students’ cognitive competencies and pertinent employability skills.

“(2) CLINICAL TRAINING.—The term ‘clinical training’ means sustained and high-quality preservice experiences based on scientifically valid research to further develop the teaching skills or leadership skills of prospective teachers or school leaders, including (as applicable) early childhood educators. Such experiences shall include each of the following:

“(A) Experiential clinical training in an elementary school or secondary school that, to the extent practicable, is aligned with the grade level and subject area where the teacher or school leader will be placed upon program completion, and that includes—

“(i) opportunities for teacher or school leader candidates to develop and demonstrate teaching skills or leadership skills as supervised classroom teachers or school leaders to better prepare such teachers or school leaders to meet the needs of serving in high-need local educational agencies, high-need schools, or schools in rural areas, or being a teacher in a high-need subject or field;

“(ii) opportunities to work with diverse learners;

“(iii) ongoing assessment and regular opportunities for feedback for teacher candidates or school leader candidates from faculty and current teachers or school leaders;

“(iv) aligning school-based clinical experiences with coursework in educational theory and content through supervised clinical practice and regular feedback on the development of teaching skills or leadership skills and performance that include integrating social and emotional development, building a positive classroom or school culture and climate, and developing effective classroom management or school leadership techniques;

“(v) for teachers, developing the ability to—

“(I) link teaching practice to student learning;

“(II) create effective teaching units and lesson plans that provide all students with the ability to apply content knowledge, think critically, solve complex problems, communicate effectively, and work collaboratively with their peers;

“(III) develop and implement formative and interim assessments to diagnose student learning and modify instruction as a result of the data derived from such assessments;

“(IV) implement evidence-based differentiated instruction strategies; and

“(V) teach diverse learners, including students with special needs and English learners;

“(vi) for school leaders, developing the ability to—

“(I) lead effective teams of teachers;

“(II) identify and model effective classroom practices;

“(III) learn how to recruit and support effective teachers; and

“(IV) engage community members and parents.

“(B) Align the coursework offered at the educator preparation entity with the needs of the local educational agencies, including the academic needs of students, served by the educator preparation entity and the clinical experiences offered under subparagraph (A).

“(C) Provide high-quality mentoring.

“(D) Be offered over the course of an educator preparation program.

“(E) Be designed through collaboration between faculty or staff at the educator preparation entity and employees, including teachers and school leaders, of the local educational agencies served by the educator preparation entity.

“(F) Provide support and training for faculty or staff at educator preparation entities and for individuals who serve as mentors for new and prospective teachers or school leaders.

“(3) CORE ACADEMIC SUBJECTS.—The term ‘core academic subjects’ has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

“(4) EARLY CHILDHOOD EDUCATOR.—The term ‘early childhood educator’ means an individual with primary responsibility for the education of children in an early childhood education program.

“(5) EDUCATIONAL SERVICE AGENCY.—The term ‘educational service agency’ has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

“(6) EDUCATOR PREPARATION ENTITY.—The term ‘educator preparation entity’ means a teacher preparation entity or a school leader preparation entity.

“(7) EDUCATOR PREPARATION PROGRAM.—The term ‘educator preparation program’ means a teacher preparation program or a school leader preparation program offered by an educator preparation entity, including an early childhood education teacher or school leader program.

“(8) EDUCATOR RESIDENCY PROGRAM.—The term ‘educator residency program’ means a teacher residency program or a school leader residency program within a teacher preparation program or school leader preparation program.

“(9) EFFECTIVE LITERACY INSTRUCTION.—The term ‘effective literacy instruction’ means literacy instruction that—

“(A) includes age-appropriate, explicit, systematic, and intentional instruction in phonological awareness, phonic decoding, vocabulary, language structure, reading fluency, and reading comprehension;

“(B) includes age-appropriate, explicit instruction in writing, including opportunities for children to write with clear purposes, with critical reasoning appropriate to the topic and purpose, and with specific instruction and feedback from instructional staff;

“(C) uses differentiated instructional approaches, including individual and small group instruction and discussion;

“(D) uses age-appropriate, valid, and reliable screening assessments, diagnostic assessments, formative assessment processes, and summative assessments to identify a child's learning needs, to inform instruction, and to monitor the child's progress and the effects of instruction;

“(E) uses strategies to enhance children's motivation to read and write and children's engagement in self-directed learning;

“(F) incorporates the principles of universal design for learning;

“(G) depends on teachers' collaboration in planning, instruction, and assessing a child's progress and on continuous professional learning; and

“(H) links literacy instruction to the challenging academic content standards under section 1111(b)(1) of the Elementary and Secondary Education Act of 1965, including the ability to navigate, understand, and write about, complex print and digital subject matter.

“(10) ELIGIBLE PARTNERSHIP.—Except as otherwise provided in section 216, the term ‘eligible partnership’ means an entity that—

“(A) shall include—

“(i) a high-need local educational agency;

“(ii) (I) a high-need school or a consortium of high-need schools served by the high-need local educational agency; or

“(II) as applicable, a high-need early childhood education program;

“(iii) a partner institution; and

“(iv) a school, department, or educator preparation program within such partner institution; and

“(B) may include any of the following:

“(i) The Governor of the State.

“(ii) The State educational agency.

“(iii) The State board of education.

“(iv) The State agency for higher education.

“(v) A school or department of arts and sciences within such partner institution.

“(vi) A business.

“(vii) A public or private nonprofit educational organization.

“(viii) An educational service agency.

“(ix) A teacher organization.

“(x) A high-performing local educational agency, or a consortium of such local educational agencies, that can serve as a resource to the partnership.

“(xi) A charter school (as defined in section 5210 of the Elementary and Secondary Education Act of 1965).

“(xii) A school or department within the partner institution that focuses on psychology and human development.

“(xiii) A school or department within the partner institution with comparable expertise in the disciplines of teaching, learning, and child and adolescent development.

“(xiv) An entity operating a program that provides alternative routes to State certification of teachers or school leaders.

“(11) ENGLISH LEARNER.—The term ‘English learner’ means an individual—

“(A) who is aged 3 through 21;

“(B) who is enrolled or preparing to enroll in an elementary school or secondary school;

“(C) (i) who was not born in the United States;

“(ii) whose native language is a language other than English;

“(iii) (I) who is a Native American or Alaska Native, or a native resident of the outlying areas; and

“(II) who comes from an environment where a language other than English has had a significant impact on the individual’s level of English language proficiency; or

“(iv) who is migratory, whose native language is a language other than English, and who comes from an environment where a language other than English is dominant; and

“(D) whose difficulties in speaking, reading, writing, or understanding the English language may be sufficient to deny the individual—

“(i) the ability to meet or exceed the State challenging student academic achievement standards under section 1111(b)(1) of the Elementary and Secondary Education Act of 1965 in a subject for the individual’s grade level, as determined based on the State academic assessments described in section 1111(b)(3) of such Act;

“(ii) the ability to successfully achieve in classrooms where the language of instruction is English; or

“(iii) the opportunity to participate fully in society.

“(12) HIGH-NEED EARLY CHILDHOOD EDUCATION PROGRAM.—The term ‘high-need early childhood education program’ means an early childhood education program serving children from low-income families that is located within the geographic area served by a high-need local educational agency, particularly focused on a prekindergarten through third grade continuum.

“(13) HIGH-NEED LOCAL EDUCATIONAL AGENCY.—The term ‘high-need local educational agency’ means a local educational agency—

“(A) (i) for which not less than 20 percent of the children served by the agency are children from low-income families;

“(ii) that serves not fewer than 10,000 children from low-income families;

“(iii) that meets the eligibility requirements for funding under the Small, Rural School Achievement Program under section 6211(b) of the Elementary and Secondary Education Act of 1965; or

“(iv) that meets the eligibility requirements for funding under the Rural and Low-Income School Program under section 6221(b) of the Elementary and Secondary Education Act of 1965; and

“(B) (i) for which 1 or more schools served by the agency is identified by the State as a low-performing school under section 1116 of the Elementary and Secondary Education Act of 1965 or identified as eligible to receive funds under section 1003(g) of such Act; or

“(ii) for which there is—

“(I) a shortage of teachers in high-need subjects or fields; or

“(II) a high teacher turnover rate.

“(14) HIGH-NEED SCHOOL.—The term ‘high-need school’ means—

“(A) an elementary school or middle school in which not less than 50 percent of the enrolled students are children from low-income families; or

“(B) a high school in which not less than 40 percent of the enrolled students are children from low-income families, which may be calculated using comparable data from feeder schools.

“(15) HIGH-QUALITY PROFESSIONAL DEVELOPMENT.—The term ‘high-quality professional development’ means activities based on scientifically valid research that are coordinated and aligned to increase the effectiveness of teachers or school leaders and are regularly assessed to determine the activities' effectiveness, and that—

“(A) are designed and implemented to improve student achievement and classroom practice;

“(B) are aligned with—

“(i) State challenging academic content standards and State challenging student academic achievement standards adopted under section 1111(b) of the Elementary and Secondary Education Act of 1965;

“(ii) related academic and school improvement goals of the school, local educational agency, and, as appropriate, statewide and local curricula;

“(iii) for teachers, rigorous teaching standards; and

“(iv) for school leaders, rigorous standards for leadership skills;

“(C) increase teachers' or school leaders'—

“(i) knowledge and understanding about how students learn;

“(ii) academic content knowledge;

“(iii) knowledge and understanding about the link between social and emotional development and student outcomes;

“(iv) ability to analyze student work and achievement data from multiple sources, including teacher developed assessments and how to adjust instructional strategies, assessments, and materials based on such analysis;

“(v) ability to instruct students with disabilities and English learners so that such students with disabilities and English learners are able to meet the State challenging academic content standards and State challenging student academic achievement standards;

“(vi) ability to effectively manage a classroom, including the ability to—

“(I) implement multi-tiered systems of support;

“(II) create a positive learning environment that conveys high expectations for all students; and

“(III) equitably implement school discipline policies;

“(vii) ability to lead teams of effective teachers, in the case of school leaders;

“(viii) ability to implement opportunities for applied learning;

“(ix) knowledge and understanding of culturally relevant practices; and

“(x) teaching skills and school leadership skills;

“(D) are informed by, and aligned with, such teachers' and school leaders' evaluations;

“(E) are collaborative, data-driven, and classroom- or school-focused;

“(F) provide the teacher or school leader with high-quality feedback with actionable steps to improve their practice;

“(G) are sustained, intensive, and job-embedded, and not limited in scope to a 1-day or short-term workshop or conference;

“(H) are, as appropriate, designed to—

“(i) provide teachers or school leaders with the knowledge and skills to work more effectively with parents and families; and

“(ii) where applicable, address the transition from prekindergarten to elementary school, including issues related to school readiness across all major domains of early learning, as well as transitions from elementary school to middle school and middle school to high school; and

“(I) for school leaders, provide comprehensive opportunities to practice effective strategies and help school leaders develop the abilities to lead effective teams of teachers and maintain active engagement with families and community organizations.

“(16) HIGHLY COMPETENT.—The term ‘highly competent’, when used with respect to an early childhood educator, means an educator—

“(A) with specialized education and training in development and education of young children from birth until entry into kindergarten, including children with disabilities and English learners;

“(B) with—

“(i) a baccalaureate degree in an academic major in the arts and sciences; or

“(ii) an associate’s degree in a related educational area; and

“(C) who has demonstrated a high level of knowledge and use of content and pedagogy in the relevant areas associated with quality early childhood education.

“(17) INDUCTION PROGRAM.—The term ‘induction program’ means a formalized program for new teachers or school leaders during not less than the first 2 years of teaching or leading a school that is designed to provide support for, improve the professional performance of, and advance the retention of beginning teachers or school leaders. Such program shall promote effective teaching or leadership skills and shall include the following components:

“(A) High-quality mentoring.

“(B) Periodic, structured time for collaboration and observation opportunities with teachers or school leaders, as well as interdisciplinary collaboration among highly effective teachers, school leaders, faculty, researchers, other educators, and other staff who prepare new teachers or school leaders.

“(C) The application of empirically based practice and scientifically valid research on instructional and behavioral interventions.

“(D) Opportunities for new teachers or school leaders to draw directly on the expertise of mentors, faculty, local educational agency personnel, and researchers to support the integration of empirically based practice and scientifically valid research with practice.

“(E) The development of content expertise.

“(F) Faculty who—

“(i) model the integration of research and practice in the classroom and innovative practices that support the acquisition and transferability of college- and career-ready skills, including critical thinking, complex problem solving, effective communication and collaboration, such as through project-based and applied learning;

“(ii) assist new teachers and school leaders with the effective use and integration of technology in instruction;

“(iii) for teachers, assist in the creation and use of teacher-developed assessments for the purpose of informing and targeting instructional practice;

“(iv) demonstrate the content knowledge and skills necessary to be effective in advancing student achievement; and

“(v) are able to substantially participate in the early childhood program or elementary school or secondary school classroom setting, as applicable, which may include receiving release time or workload credit for such participation.

“(G) Assistance with the understanding of data, particularly student assessment achievement data, including data from interim, formative, and summative assessments and the application of such data in classroom instruction or school leadership.

“(H) Regular, structured observation and evaluation of new teachers or school leaders, including post-observation feedback and dialogue, by multiple-trained evaluators, using valid and reliable measures of teaching and leadership skills.

“(18) LOW-INCOME FAMILY.—The term ‘low-income family’ means a family who—

“(A) has a student who is eligible for a free or reduced priced lunch under the Richard B. Russell National School Lunch Act;

“(B) is eligible for means tested benefits or public assistance at the local, State, or Federal level; or

“(C) lives in a high-poverty area or has a student who attends an elementary school or high school with an attendance area in a high-poverty area.

“(19) MENTOR.—The term ‘mentor’ means an experienced educator who shall—

“(A) provide opportunities for prospective or new teachers or school leaders to develop and demonstrate teaching skills or school leadership skills to better prepare such prospective or new teachers or school leaders to meet the unique needs of serving in high-need local educational agencies, high-need schools, or schools in rural areas, or being a teacher in a high-need subject or field;

“(B) provide ongoing assessment of and regular feedback to mentees;

“(C) possess—

“(i) a demonstrated record of strong teaching skills or leadership skills and improving student achievement;

“(ii) strong verbal and written communication skills; and

“(iii) knowledge, skills, and attitudes to—

“(I) establish and maintain a professional learning community that uses data, feedback, and coaching to improve mentee performance; and

“(II) create and maintain a learning culture for mentees that provides a climate conducive to the professional development of the mentees; and

“(D) have a demonstrated record of improving student achievement.

“(20) MENTORING.—The term ‘mentoring’ means the advising of prospective or new educators through a program that includes the following:

“(A) Clear criteria for the selection of mentors that takes into account the mentor’s effectiveness.

“(B) Provides high-quality training for such mentors in how to support teachers or school leaders effectively, including—

“(i) for teachers, instructional strategies for literacy instruction; and

“(ii) for teachers or school leaders, instruction in classroom management or school management techniques, including approaches that improve the schoolwide climate for learning, such as social and emotional development strategies and multi-tiered systems of support.

“(C) Provides regularly scheduled time for collaboration, examination of student work and achievement data, joint professional development opportunities, and ongoing opportunities for mentors and mentees to observe each other’s teaching or leading, and identify and address areas for improvement.

“(D) Matches mentees with mentors in the same field, grade, grade span, or subject area.

“(E) Provides paid release time for mentors, as applicable.

“(21) PARTNER INSTITUTION.—The term ‘partner institution’ means a nonprofit institution of higher education, which may include a 2-year nonprofit institution of higher education offering a dual program with a 4-year nonprofit institution of higher education, participating in an eligible partnership that has a teacher preparation program—

“(A) whose graduates exhibit strong performance on State-determined qualifying assessments for new teachers through—

“(i) demonstrating that 80 percent or more of the graduates of the program who intend to enter the field of teaching have passed all of the applicable State qualification assessments for new teachers, which shall include an assessment of each prospective teacher’s subject matter knowledge in the content area in which the teacher intends to teach; or

“(ii) being ranked among the highest-performing teacher preparation programs in the State as determined by the State using criteria consistent with the requirements for the State report card under section 210; and

“(B) that requires each teacher or school leader candidate in the program—

“(i) to meet high academic standards or demonstrate a record of success, as determined by the institution (including prior to entering and being accepted into a program), and participate in intensive clinical training;

“(ii) to become highly effective; and

“(iii) preparing to become an early childhood educator, to meet degree requirements, as established by the State, and become highly competent.

“(22) PRINCIPLES OF SCIENTIFIC RESEARCH.—The term ‘principles of scientific research’ means principles of research that—

“(A) apply rigorous, systematic, and objective methodology to obtain reliable and valid knowledge relevant to education activities and programs;

“(B) present findings and make claims that are appropriate to, and supported by, the methods that have been employed; and

“(C) include, appropriate to the research being conducted—

“(i) use of systematic, empirical methods that draw on observation or experiment;

“(ii) use of data analyses that are adequate to support the general findings;

“(iii) reliance on measurements or observational methods that provide reliable and generalizable findings;

“(iv) strong claims of causal relationships, only with research designs that eliminate plausible competing explanations for observed results, such as random-assignment experiments;

“(v) presentation of studies and methods in sufficient detail and clarity to allow for replication or, at a minimum, to offer the opportunity to build systematically on the findings of the research;

“(vi) acceptance by a peer-reviewed journal or critique by a panel of independent experts through a comparably rigorous, objective, and scientific review; and

“(vii) consistency of findings across multiple studies or sites to support the generality of results and conclusions.

“(23) RECENT PROGRAM GRADUATE.—The term ‘recent program graduate’ means—

“(A) an individual who has graduated from a teacher preparation program or school leader preparation program not earlier than 3 years preceding the date of the determination; or

“(B) an alternative route participant who, within the 3 years preceding the date of the determination, received a level of certification or licensure that allows the participant to serve as the teacher or school leader of record in the State in which the participant is employed.

“(24) SATISFACTION SURVEY.—The term ‘satisfaction survey’ means a survey instrument designed to collect qualitative and quantitative data on perceptions of whether new teachers or school leaders possess the skills needed to succeed in the classroom, including effective teaching or school leadership skills.

“(25) SCIENTIFICALLY VALID RESEARCH.—The term ‘scientifically valid research’ includes applied research, basic research, and field-initiated research in which the rationale, design, and interpretation are soundly developed in accordance with principles of scientific research.

“(26) SCHOOL LEADER.—The term ‘school leader’ means a principal, assistant principal, or individual who—

“(A) is an employee or officer of a school who is responsible for—

“(i) the daily instructional leadership and managerial operations of the school; and

“(ii) creating the optimum conditions for student learning; or

“(B) is an early childhood program leader or director.

“(27) SCHOOL LEADER PREPARATION ENTITY.—The term ‘school leader preparation entity’ means an institution of higher education or a nonprofit organization, including those institutions or organizations that provide alternative routes to certification, that is approved by the State to prepare school leaders to be effective.

“(28) SCHOOL LEADER PREPARATION PROGRAM.—The term ‘school leader preparation program’ means a program offered by a school leader preparation entity, whether traditional or alternative route, that is approved by the State to prepare school leaders to be effective and that leads to a specific State certification to be a school leader.

“(29) SCHOOL LEADER RESIDENCY PROGRAM.—The term ‘school leader residency program’ means a school-based school leader preparation program in which a prospective school leader—

“(A) for 1 academic year, acts as a school leader or assistant school leader alongside a mentor school leader;

“(B) receives concurrent instruction during the year described in subparagraph (A) from an educator preparation entity, which courses may be taught by local educational agency personnel or residency program faculty;

“(C) acquires and demonstrates effective school leadership skills;

“(D) prior to completion of the program, attains full State certification of licensure; and

“(E) in the case of a postbaccalaureate or master’s residency program, acquires a master’s degree not later than 24 months after beginning the program.

“(30) SCHOOL LEADERSHIP SKILLS.—The term ‘school leadership skills’ means skills that enable a school leader to—

“(A) recruit, train, supervise, support, retain, and evaluate teachers and other staff;

“(B) develop teams of effective school staff, and distributing among members of such teams responsibilities for leading and improving their schools;

“(C) establish a positive school culture and learning community where school leaders and teachers—

“(i) share a commitment to improving student outcomes and performances for all students, including students with disabilities and English learners; and

“(ii) set a continuous cycle of collective inquiry and improvement in which teachers and school leaders work together on a regular basis to analyze and improve the alignment and effectiveness of curriculum, instruction, learning, and assessment;

“(D) understand how students learn and develop, and use this knowledge to set high expectations for student achievement and support student success;

“(E) address the unique needs of specific student populations served, such as students with disabilities, students who are English learners, and students who are homeless or in foster care;

“(F) manage resources and school time to support high-quality instruction and improvements in student achievement; and

“(G) actively engage and work effectively with students' parents and other members of the community.

“(31) STUDENT GROWTH.—The term ‘student growth’ means a change in student achievement for an individual student between 2 or more points in time. For the purpose of determining student growth, measures of student achievement include—

“(A) for grades and subjects in which assessments are required under section 1111(b)(3) of the Elementary and Secondary Education Act of 1965, the student’s score on such assessments, and, as appropriate, other multiple measures of student learning, such as those designated under paragraph (B); and

“(B) for grades and subjects for which such assessments are not required, alternative statewide measures of student learning and performance, such as student results on pre-tests and end-of-course tests, and objective performance-based assessments, and student performance on English language proficiency assessments.

“(32) TEACHER IN A HIGH-NEED SUBJECT OR FIELD.—The term ‘teacher in a high-need subject or field’ means a teacher of—

“(A) students with disabilities;

“(B) English learners; or

“(C) science, technology, engineering, or mathematics.

“(33) TEACHER PERFORMANCE ASSESSMENT.—The term ‘teacher performance assessment’ means an assessment used to measure teacher performance that is approved by the State and is—

“(A) based on professional teaching standards;

“(B) used to measure the effectiveness of a teacher's—

“(i) curriculum planning;

“(ii) instruction of students, including appropriate plans and modifications for students who are English learners and students who are children with disabilities;

“(iii) assessment of students, including analysis of evidence of student learning; and

“(iv) ability to advance student learning;

“(C) validated based on professional assessment standards;

“(D) reliably scored by trained evaluators, with appropriate oversight of the process to ensure consistency; and

“(E) used to support continuous improvement of educator practice.

“(34) TEACHER PREPARATION ENTITY.—The term ‘teacher preparation entity’ means an institution of higher education or a nonprofit organization, including those that provide alternative routes to certification, that is approved by the State to prepare teachers to be effective.

“(35) TEACHER PREPARATION PROGRAM.—The term ‘teacher preparation program’ means a program, whether traditional or alternative route, that is approved by the State to prepare teachers to be effective and that leads to a specific State certification to be a teacher.

“(36) TEACHER RESIDENCY PROGRAM.—The term ‘teacher residency program’ means a school-based teacher preparation program in which a prospective teacher—

“(A) for 1 academic year, teaches alongside a mentor teacher, who is the teacher of record;

“(B) receives concurrent instruction during the year described in subparagraph (A) from an educator preparation entity, which courses may be taught by local educational agency personnel or residency program faculty, in the teaching of the content area in which the teacher will become certified or licensed;

“(C) acquires teaching skills;

“(D) prior to completion of the program, attains full State certification of licensure and is prepared to be effective; and

“(E) in the case of a postbaccalaureate or master’s residency program, acquires a master’s degree not later than 24 months after beginning the program.

“(37) TEACHING SKILLS.—The term ‘teaching skills’ means skills that enable a teacher to—

“(A) increase student learning, achievement, and the ability to apply knowledge;

“(B) effectively convey and explain academic subject matter;

“(C) effectively teach higher-order analytical, critical thinking, evaluation, problem-solving, and communication skills;

“(D) employ strategies grounded in the disciplines of teaching and learning that—

“(i) are based on empirically-based practice and scientifically valid research, where applicable, related to teaching and learning;

“(ii) are specific to academic subject matter;

“(iii) are culturally responsive;

“(iv) integrate social and emotional development and academic achievement; and

“(v) focus on the identification of students’ specific learning needs and develop the skills needed to promote successful learning, particularly among students with disabilities, English learners, students who are gifted and talented, and students with low literacy levels, and the tailoring of academic instruction to such needs;

“(E) conduct and utilize the results of an ongoing assessment of student learning, which may include the use of formative assessments, interim assessments, performance-based assessments, project-based assessments, or portfolio assessments, that measures the full range of academic standards and higher-order thinking skills (including application, analysis, synthesis, and evaluation);

“(F) effectively manage a classroom, including the ability to implement multi-tiered systems of support, create a positive learning environment that conveys high expectations for all students, and equitably implement school discipline policies;

“(G) communicate and work with parents, and involve parents in their children’s education;

“(H) use, in the case of an early childhood educator, age-appropriate and developmentally appropriate strategies and practices for children in early childhood education programs; and

“(I) teach, in the case of a career and technical education teacher, technical skills to industry standards in a classroom setting and possess strategies for incorporating content from non-career and technical education courses and standards for college and career into career and technical education courses.

“PART AEducator quality partnership grants

“SEC. 201. Purposes.

“The purposes of this part are to—

“(1) improve student achievement in high-need schools;

“(2) improve the quality of prospective and new teachers or school leaders by improving the preparation of prospective teachers or school leaders and enhancing professional development activities for new teachers or school leaders;

“(3) hold educator preparation entities at institutions of higher education accountable for preparing highly effective teachers or school leaders;

“(4) recruit well qualified individuals, including members of groups underrepresented in teaching and individuals from other occupations, as teachers and school leaders; and

“(5) meet the staffing needs of high-need local educational agencies and high-need schools through collaborative partnerships with educator preparation programs within institutions of higher education.

“SEC. 202. Grants to improve educator preparation and support educator residencies.

“(a) Program authorized.—From amounts made available under subsection (g), the Secretary is authorized to award grants, on a competitive basis, to eligible partnerships, to carry out the activities described in this section.

“(b) Application.—An eligible partnership that desires to receive a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require, including at a minimum—

“(1) a needs assessment of the partners in the eligible partnership with respect to the preparation, ongoing training, professional development, and retention of general education and special education teachers, teachers of English as a second language, school leaders, and, as applicable, early childhood educators and career and technical education teachers, including—

“(A) an assessment of the hiring needs of the high-need schools served by the high-need local educational agency in the eligible partnership; and

“(B) a projection of vacancies for teachers in a high-need subject or field, and the number of teachers needed in each such high-need subject or field or school leaders in high-need schools;

“(2) an assurance that the eligible partnership will target grant funds provided under this section to recruit, prepare, and support highly effective educators to serve in high-need local educational agencies and high-need schools, consistent with the needs assessment conducted under paragraph (1);

“(3) an assurance that the eligible partnership will include meaningful collaboration, as described in subsection (c)(2)(A), between an educator preparation program and a high-need local educational agency, in order to ensure educator preparation programs are preparing educators with the teaching skills or leadership skills necessary to meet the needs of the high-need local educational agency;

“(4) an assurance that the educator preparation program will administer satisfaction surveys to employers and recent program graduates on an annual basis, in order to ascertain employer satisfaction with recent program graduates’ performance;

“(5) a coherent strategy for using grant funds provided under this section with other Federal, State, and local funds to—

“(A) increase student achievement in high-need schools by improving the quality of preparation for new and prospective educators, and by enhancing professional development activities for new educators; and

“(B) meet the needs of high-need local educational agencies and high-need schools by establishing meaningful partnerships with educator residency programs;

“(6) a description of how the eligible partnership will sustain the activities proposed in the application after the grant period ends;

“(7) a description of how the eligible partnership will prepare all educators to—

“(A) understand and use scientifically valid research, as well as data on their students’ educational progress to modify and improve the implementation or supervision of classroom instruction;

“(B) meet the needs of students with disabilities, including training related to participation as a member of individualized education program teams, as defined in section 614(d)(1)(B) of the Individuals with Disabilities Education Act to ensure individualized education plans created promote student success; and

“(C) meet the needs of English learners;

“(8) a description of—

“(A) how the eligible partnership will coordinate strategies and activities assisted under the grant with other educator preparation programs or professional development programs, including programs funded under the Elementary and Secondary Education Act of 1965 and the Individuals with Disabilities Education Act, and through the National Science Foundation; and

“(B) how the activities of the eligible partnership will be consistent with State, local, and other education reform activities that promote teacher and school leader effectiveness and student academic achievement;

“(9) a description of how the eligible partnership will align the educator residency program carried out with grant funds with the—

“(A) State early learning standards for early childhood education programs, as appropriate, and with the relevant domains of early childhood development, such as social and emotional development;

“(B) challenging academic content standards and challenging student academic achievement standards under section 1111(b)(1) of the Elementary and Secondary Education Act of 1965, established by the State in which the partnership is located; and

“(C) hiring objectives of the high-need local educational agency in the partnership;

“(10) a description of how faculty at the partner institution will work, during the term of the grant, with highly effective educators in high-need schools served by the high-need local educational agency in the eligible partnership to—

“(A) provide high-quality professional development activities, including in-service professional development, to strengthen the content knowledge and teaching skills or leadership skills of elementary school and secondary school teachers or school leaders;

“(B) for teachers, train classroom teachers to implement literacy programs that incorporate the essential components of literacy instruction; and

“(C) as appropriate, provide training for educators to teach technical skills to industry standards in a classroom setting;

“(11) a description of the partnership’s evaluation plan under section 204(a), including how the partnership will collect, analyze, use, and report data annually on the retention and performance of recent program graduates as well as how the eligible partnership will conduct and publicly report the evaluation required under section 204(a); and

“(12) a description of how the eligible partnership will design and implement an induction program to support all new educators who are prepared by the educator preparation program in the partnership and who serve in the high-need local educational agency in the partnership, and, to the extent practicable, all new educators who serve in such high-need local educational agency, and how such an induction program will comply with the requirements under section 200(16) and be integrated with other ongoing efforts to support new educators by the high-need local educational agency.

“(c) Educator residency programs.—

“(1) IN GENERAL.—An eligible partnership that receives a grant under this section shall use the grant funds to design and implement an effective educator residency program that is grounded in scientifically valid research to prepare educators for success in the high-need schools served by the high-need local educational agency.

“(2) CONTENT OF PROGRAM.—An educator residency program implemented under paragraph (1) shall include the following:

“(A) MEANINGFUL COLLABORATION.—Establish meaningful collaboration between the partner institution and the high-need local educational agency to ensure the partner institution is preparing teachers with the teaching skills or school leaders with the leadership skills necessary to meet the specific needs of the high-need local educational agency by requiring the partner institution to—

“(i) engage in regular consultation with the high-need local educational agency throughout the development and implementation of programs and activities carried out under this section and provide evidence that such programs and activities are aligned with the needs of the high-need schools served by such high-need local educational agency;

“(ii) incorporate ongoing feedback and regular communication from the high-need local educational agency and the high-need schools served by such high-need local educational agency, in—

“(I) the development of recruitment and admissions goals and priorities;

“(II) the design of the educator residency program’s curriculum, coursework content, clinical training, induction programs, and other professional development activities, including opportunities to collaborate with specialized instructional support personnel;

“(III) continuing efforts to modify and improve the activities and programs carried out by the partner institution; and

“(IV) meeting the needs of the high-need schools in which recent program graduates are employed and by monitoring the performance of such graduates; and

“(iii) administer satisfaction surveys and utilize the feedback from such surveys to drive program improvement.

“(B) INDUCTION PROGRAMS FOR NEW EDUCATORS.—Implement an induction program, as described in section 200(16) for new educators or, in the case of an early childhood education program, providing mentoring or coaching for new early childhood educators. Such induction program shall be integrated with other ongoing efforts to support new educators by the high-need local educational agency.

“(C) EDUCATOR RECRUITMENT.—Develop and implement effective mechanisms (which may include alternative routes to State certification of teachers or school leaders) to ensure that the eligible partnership is able to recruit well qualified individuals with a record of academic, volunteer, or leadership distinction to become effective educators, which shall include—

“(i) the development of recruitment and admissions goals and priorities aligned with the hiring objectives identified under subsection (a)(1); and

“(ii) an emphasis on recruiting—

“(I) individuals from under represented populations;

“(II) individuals to—

“(aa) become teachers in high-need subject or fields and to teach in schools in rural areas; or

“(bb) become school leaders in schools in rural areas or high-need local educational agencies;

“(III) mid-career professionals from other occupations, former military personnel, and recent college graduates; and

“(IV) for school leaders, individuals with teaching experience and demonstrated leadership competencies.

“(D) SUPPORT AND TRAINING FOR PARTICIPANTS IN EARLY CHILDHOOD EDUCATION PROGRAMS.—In the case of an eligible partnership focusing on early childhood educator preparation, implement initiatives that increase compensation for early childhood educators who attain associate or baccalaureate degrees in early childhood education.

“(E) RECENT PROGRAM GRADUATE PERFORMANCE.—Increase capacity and collect and analyze data on the performance of recent program graduates of educator residency programs, including data on—

“(i) results from statewide teacher or school leader evaluation systems;

“(ii) recent program graduate retention rates in full-time positions;

“(iii) satisfaction survey outcomes; and

“(iv) to the extent practicable, surveys of parents on how well the teacher or school leader engages parents in student learning activities.

“(F) COMPREHENSIVE LITERACY INSTRUCTION.—Strengthen comprehensive literacy instruction, that—

“(i) incorporates effective literacy instruction; and

“(ii) is designed to support—

“(I) developmentally appropriate, contextually explicit, systematic instruction, and frequent practice, in reading across content areas; and

“(II) developmentally appropriate and contextually explicit instruction, and frequent practice, in writing across content areas.

“(3) TEACHER RESIDENCY PROGRAMS.—In addition to the requirements under paragraph (2), an eligible partnership receiving a grant under this section to design and implement an effective teacher residency program, shall include the following requirements:

“(A) REFORMS.—Implementing reforms, including—

“(i) curriculum changes that are aligned with the needs of the high-need local educational agency in the eligible partnership, in order to improve, evaluate, and assess how well all prospective and new teachers develop teaching skills;

“(ii) using empirically-based practice and scientifically valid research, where applicable, about teaching and learning so that all prospective teachers and, as applicable, early childhood educators—

“(I) are prepared to be highly effective teachers and, as applicable, highly competent early childhood educators;

“(II) understand and can implement research-based teaching practices in classroom instruction;

“(III) possess strong teaching skills and an understanding of effective instructional strategies across all applicable content areas that enable all teachers to—

“(aa) meet the specific learning needs of all students, including students with disabilities, English learners, students who are gifted and talented, students with low literacy levels and, as applicable, children in early childhood education programs;

“(bb) differentiate instruction for such students;

“(cc) have knowledge of student learning styles;

“(dd) analyze the results of student learning and other data to improve instruction;

“(ee) effectively participate as a member of the individualized education program team, as defined in section 614(d)(1)(B) of the Individuals with Disabilities Education Act in order to ensure individualized education plans promote student success;

“(ff) if applicable, successfully employ effective strategies for comprehensive literacy instruction; and

“(gg) employ techniques to improve children’s cognitive, social, emotional, and physical development;

“(IV) if applicable, receive training on effective teaching in rural or diverse communities and on teaching students with disabilities and English learners; and

“(V) can effectively teach students with disabilities; and

“(iii) administering satisfaction surveys to employers of recent program graduates and to recent program graduates.

“(B) CLINICAL TRAINING.—Implementing at least 1 academic year of preservice high-quality clinical training in high-need schools that includes the following criteria:

“(i) Integration of pedagogy, robust classroom practice, and mentoring to promote effective teaching skills.

“(ii) Engagement of teacher residents in rigorous coursework, which shall be aligned to the needs of the high-need local educational agency in the eligible partnership.

“(iii) Establishment of clear criteria for the selection and assignment of mentor teachers.

“(iv) Placement of teacher residents in cohorts that facilitate professional collaboration, both among teacher residents and between such teacher residents and mentors in the receiving school.

“(v) Support for teacher residents, once the teacher residents are hired as teachers of record, through an induction program, high-quality professional development, and regular opportunities to support the residents in their development of teaching skills during not less than the residents’ first 2 years of teaching.

“(C) SELECTION OF INDIVIDUALS AS TEACHER RESIDENTS.—

“(i) ELIGIBLE INDIVIDUAL.—In order to be eligible to be a teacher resident in a teacher residency program under this paragraph, an individual shall—

“(I) be—

“(aa) a graduate of a 4-year institution of higher education; or

“(bb) in the third or fourth year of undergraduate baccalaureate education being pursued by the teacher candidate; and

“(II) submit an application to the teacher residency program.

“(ii) SELECTION CRITERIA.—An eligible partnership carrying out a teacher residency program under this subsection shall establish criteria for the selection of eligible individuals to participate in the teacher residency program, aligned to the hiring needs and objectives of the high-need local educational agency in the eligible partnership, and based on, at a minimum, the following applicant characteristics:

“(I) Strong content knowledge or record of accomplishment in the field or subject area to be taught.

“(II) Strong verbal and written communication skills.

“(III) Other attributes linked to effective teaching, which may be determined by interviews or performance assessments, as specified by the eligible partnership.

“(IV) Demonstrated commitment, which could be evidenced by past work experience, to serving in high-need local educational agencies.

“(V) Demonstrated leadership in past education or work experiences.

“(4) SCHOOL LEADER RESIDENCY PROGRAMS.—In addition to the requirements under paragraph (2), an eligible partnership receiving a grant under this section to design and implement an effective school leader residency program, shall include the following requirements:

“(A) REFORMS.—Implementing reforms, including the following:

“(i) Preparing prospective school leaders for careers as principals, assistant principals, early childhood education program directors, or other school leaders (including individuals preparing to work in high-need local educational agencies located in rural areas who may perform multiple duties in addition to the role of a school leader).

“(ii) Promoting strong leadership skills and, as applicable, techniques for school leaders to effectively—

“(I) develop a shared vision for high achievement and college- and career-readiness for all students;

“(II) support teachers in implementing rigorous curricula and assessments tied to State challenging academic content standards and challenging student academic achievement standards adopted pursuant to section 1111(b) of the Elementary and Secondary Education Act of 1965;

“(III) create and maintain a data-driven, professional learning community within the school leader’s school and understand the teaching skills needed to support successful classroom instruction and to use data to evaluate teacher instruction and drive teacher and student learning;

“(IV) recruit, hire, assign, and retain effective teachers and complete high-quality evaluations of instructional staff for continuous improvement;

“(V) provide a climate conducive to the professional development of teachers, with a focus on improving student academic achievement and the development of effective instructional leadership skills;

“(VI) manage resources and school time to improve student academic achievement, and to ensure the school environment is safe;

“(VII) engage and involve families, community members, the local educational agency, businesses, and other community leaders, to respond to the diverse interests and needs and leverage additional resources to improve student academic achievement;

“(VIII) understand how students learn and develop in order to increase academic achievement for all students, including students with disabilities and English learners; and

“(IX) understand the varied roles and responsibilities of general and special educators and teachers of English as a second language to support meaningful observation, feedback, and evaluations.

“(B) CLINICAL TRAINING.—Implementing at least 1 academic year of high-quality clinical training in high-need schools that includes the following criteria:

“(i) Integration of coursework, robust school-based practice, and mentoring, to promote effective leadership skills.

“(ii) Engagement of school leader residents in rigorous coursework, which shall be aligned to the needs of the high-need local educational agency in the eligible partnership.

“(iii) Establishment of clear criteria for the selection and assignment of mentor school leaders.

“(iv) Placement of school leader residents in cohorts that facilitate professional collaboration, both among school leader residents and between such school leader residents and mentors in the receiving school.

“(v) Support for school leader residents once such school leader residents are hired as school leaders, through an induction program, high-quality professional development, and regular opportunities, to support residents in their development of leadership skills during not less than the residents’ first 2 years of serving as a school leader.

“(C) SELECTION OF INDIVIDUALS AS SCHOOL LEADER RESIDENTS.—

“(i) ELIGIBLE INDIVIDUAL.—In order to be eligible to be a school leader resident in a school leader residency program under this paragraph, an individual shall—

“(I) be a graduate of a 4-year institution of higher education;

“(II) have prior prekindergarten through grade 12 teaching experience;

“(III) have experience as an effective leader, manager, and communicator; and

“(IV) submit an application to the residency program.

“(ii) SELECTION CRITERIA.—An eligible partnership carrying out a school leader residency program under this subsection shall establish criteria for the selection of eligible individuals to participate in the school leader residency program, aligned to the hiring needs and objectives of the high-need local educational agency in the eligible partnership, and based on, at a minimum, the following applicant characteristics:

“(I) Demonstrated leadership skills in an elementary school or secondary school setting.

“(II) Strong record of accomplishment in prior prekindergarten through grade 12 teaching experience.

“(III) Strong verbal and written communication skills.

“(IV) Other attributes linked to effective leadership.

“(V) Demonstrated commitment, which may be evidenced by past work experience, to serving in high-need local educational agencies.

“(5) STIPENDS OR SALARIES; APPLICATIONS; AGREEMENTS; REPAYMENTS.—

“(A) STIPENDS OR SALARIES.—A teacher residency program or school leader residency program funded under this subsection shall provide a 1-year living stipend or salary to each teacher or school leader resident during the residency program.

“(B) APPLICATIONS FOR STIPENDS OR SALARIES.—Each teacher or school leader residency candidate desiring a stipend or salary during the period of residency shall submit an application to the eligible partnership at such time, and containing such information and assurances, as the eligible partnership may require.

“(C) AGREEMENTS TO SERVE.—Each application submitted under subparagraph (B) shall contain or be accompanied by an agreement that the applicant will—

“(i) serve as a full-time teacher or school leader for a total of not less than 3 academic years immediately after successfully completing the teacher residency program or school leader residency program;

“(ii) fulfill the requirement under subclause (i)—

“(I) by serving as a teacher in a high-need subject or field in a high-need school served by the high-need local educational agency in the eligible partnership or serving as a school leader in such a school; or

“(II) if there is no appropriate position available in a high-need school served by the high-need local educational agency in the eligible partnership, by serving as a teacher in a high-need subject or field in a high-need school in another high-need local educational agency or serving as a school leader in such a school;

“(iii) provide to the eligible partnership a certificate, from the chief administrative officer of the local educational agency in which the resident is employed, of the employment required in clauses (i) and (ii) at the beginning of, and upon completion of, each year or partial year of service;

“(iv) for teachers, meet the requirements to be a highly qualified teacher, as defined in section 9101 of the Elementary and Secondary Education Act of 1965, or section 602 of the Individuals with Disabilities Education Act, when the applicant begins to fulfill the service obligation under this subparagraph; and

“(v) comply with the requirements set by the eligible partnership under subparagraph (D) if the applicant is unable or unwilling to complete the service obligation required under this subparagraph.

“(D) REPAYMENTS.—

“(i) IN GENERAL.—An eligible partnership receiving a grant under this section to design and implement an effective educator residency program shall require a recipient of a stipend or salary under subparagraph (A) who does not complete, or who notifies the eligible partnership that the recipient intends not to complete, the service obligation required under subparagraph (C) to repay such stipend or salary to the eligible partnership, together with interest, at a rate specified by the eligible partnership in the agreement, and in accordance with such other terms and conditions specified by the eligible partnership, as necessary.

“(ii) OTHER TERMS AND CONDITIONS.—Any other terms and conditions specified by the eligible partnership may include reasonable provisions for pro-rata repayment of the stipend or salary described in subparagraph (A) or for deferral of a teacher or school leader resident’s service obligation required by subparagraph (C) on grounds of health, incapacitation, inability to secure employment in a school served by the eligible partnership, being called to active duty in the Armed Forces of the United States, or other extraordinary circumstances.

“(iii) USE OF REPAYMENTS.—An eligible partnership shall use any repayment received under this subparagraph to carry out additional activities that are consistent with the purposes of this subsection.

“(d) Consultation.—

“(1) IN GENERAL.—In addition to the requirements identified in subsection (b)(2)(A), members of an eligible partnership that receives a grant under this section shall engage in regular consultation throughout the development and implementation of programs and activities carried out under this section.

“(2) REGULAR COMMUNICATION.—To ensure timely and meaningful consultation as described in paragraph (1), regular communication shall occur among all members of the eligible partnership, including the high-need local educational agency. Such communication shall continue throughout the implementation of the grant and the assessment of programs and activities under this section.

“(3) WRITTEN CONSENT.—The Secretary may approve changes in grant activities of a grant under this section only if the eligible partnership submits to the Secretary a written consent to such changes signed by all members of the eligible partnership.

“(e) Construction.—Nothing in this section shall be construed to prohibit an eligible partnership from using grant funds to coordinate with the activities of eligible partnerships in other States or on a regional basis through Governors, State boards of education, State educational agencies, State agencies responsible for early childhood education, local educational agencies, or State agencies for higher education.

“(f) Supplement, not supplant.—Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, and local funds that would otherwise be expended to carry out activities under this section.

“(g) Authorization of Appropriations.—There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2015 and each of the 5 succeeding fiscal years.

“SEC. 203. Administrative provisions of educator residency grants.

“(a) Duration; number of awards; payments.—

“(1) DURATION.—

“(A) IN GENERAL.—A grant awarded under this part shall be not more than 5 years in duration.

“(B) REQUIREMENTS FOR ADDITIONAL FUNDING.—Before receiving funding for the third or any subsequent year of a grant under this part, the eligible partnership receiving the grant shall demonstrate to the Secretary that the eligible partnership is—

“(i) making progress in implementing the requirements under section 202(c) at a rate that the Secretary determines will result in full implementation of the program during the remainder of the grant period; and

“(ii) making progress, as measured by the performance objectives established by the eligible partnership under section 204(a), at a rate that the Secretary determines will result in reaching the targets and achieving the objectives of the grant, during the remainder of the grant period.

“(2) NUMBER OF AWARDS.—An eligible partnership may not receive more than 1 grant during a 5-year period. Nothing in this part shall be construed to prohibit an individual member, that can demonstrate need, of an eligible partnership that receives a grant under this part from entering into another eligible partnership consisting of new members and receiving a grant with such other eligible partnership before the 5-year period applicable to the eligible partnership with which the individual member has first partnered has expired.

“(b) Peer review.—

“(1) PANEL.—The Secretary shall provide the applications submitted under this part to a peer review panel for evaluation. With respect to each application, the peer review panel shall initially recommend the application for funding or for disapproval.

“(2) PRIORITY.—The Secretary, in funding applications under this part, shall give priority—

“(A) to eligible partnerships that include a high-need local educational agency that serves a student population that consists of 40 percent or more students from low-income families;

“(B) to eligible partnerships that include an institution of higher education whose educator preparation program has a rigorous selection process to ensure the highest quality of students entering such program;

“(C) to applications from broad-based eligible partnerships that involve businesses and nonprofit community organizations; or

“(D) to eligible partnerships so that the awards promote an equitable geographic distribution of grants among rural and urban areas.

“(3) SECRETARIAL SELECTION.—The Secretary shall determine, based on the peer review process, which applications shall receive funding and the amounts of the grants under this part. In determining grant amounts, the Secretary shall take into account the total amount of funds available for all grants under this part and the types of activities proposed to be carried out by the eligible partnership.

“(c) Matching requirements.—

“(1) IN GENERAL.—Each eligible partnership receiving a grant under this part shall provide, from non-Federal sources, an amount equal to 100 percent of the amount of the grant, which may be provided in cash or in-kind, to carry out the activities supported by the grant.

“(2) WAIVER.—The Secretary may waive all or part of the matching requirement described in paragraph (1) for any fiscal year for an eligible partnership if the Secretary determines that applying the matching requirement to the eligible partnership would result in serious hardship or an inability to carry out the authorized activities described in this part.

“(d) Limitation on administrative expenses.—An eligible partnership that receives a grant under this part may use not more than 4 percent of the funds provided to administer the grant.

“SEC. 204. Performance measures and evaluation of educator residency grants.

“(a) Eligible partnership evaluation.—Each eligible partnership submitting an application for a grant under this part shall establish, and include in such application, a plan for evaluating the grant project using scientifically valid research that includes strong and measurable performance objectives. The plan shall include, at a minimum, objectives and measures for determining the eligible partnership’s success in increasing—

“(1) each teacher candidate or school leader candidate’s performance during their clinical training under paragraphs (3)(B) and (4)(B) of section 202(c);

“(2) educator retention in high-need schools—

“(A) 3 years after initial placement as a teacher or school leader; and

“(B) 5 years after initial placement as a teacher or school leader;

“(3) the pass rates and scaled scores for first time test takers on the State certification or licensing examination;

“(4) educator effectiveness, as measured by—

“(A) performance on teacher or school leader evaluations, including impact on student growth; and

“(B) satisfaction survey outcomes; and

“(5) the percentage of—

“(A) recent program graduates hired by the high-need local educational agency who are rated effective under a State or district evaluation system 2 years after program completion;

“(B) recent program graduates hired by the high-need local educational agency who are rated effective under a State or district evaluation system 2 years after program completion and are members of underrepresented groups;

“(C) recent program graduates hired by the high-need local educational agency who are rated effective under a State or district evaluation system 2 years after program completion and who teach in high-need subject areas or fields;

“(D) recent program graduates hired by the high-need local educational agency who are rated effective under a State or district evaluation system 2 years after program completion and who serve in high-need schools or schools in rural areas, disaggregated by the elementary school and secondary school levels; and

“(E) early childhood education program classes in the geographic area served by the eligible partnership taught by early childhood educators who are highly competent, as applicable.

“(b) Annual report.—Each eligible partnership that receives a grant under this part shall submit to the Secretary and make publicly available, at such time and in such manner as the Secretary may require, an annual report including at a minimum—

“(1) data on the eligible partnership’s progress on the measures described in subsection (a); and

“(2) a description of the challenges the eligible partnership has faced in implementing its grant and how the eligible partnership has addressed or plans to address such challenges.

“(c) Information.—An eligible partnership receiving a grant under this part shall ensure that candidates for admission to educator preparation programs, teachers, school leaders, school superintendents, faculty, and leadership at institutions of higher education located in the geographic areas served by the eligible partnership are provided information, including through electronic means, about the activities carried out with funds under this part.

“(d) Revised application.—If the Secretary determines that an eligible partnership receiving a grant under this part is not making substantial progress in meeting the purposes, goals, objectives, and measures of the grant, as appropriate, by the end of the third year of a grant under this part, then the Secretary—

“(1) shall cancel the grant; and

“(2) may use any funds returned or available because of such cancellation under paragraph (1) to—

“(A) increase other grant awards under this part; or

“(B) award new grants to other eligible partnerships under this part.

“(e) Technical assistance, evaluation, and dissemination.—The Secretary shall reserve not more than 2 percent of the funds appropriated under section 202(g) for a fiscal year—

“(1) to provide, directly or through grants, contracts, or cooperative agreements, technical assistance by qualified experts on using practices grounded in scientifically valid research to improve the outcomes of projects funded under this part;

“(2) acting through the Director of the Institute for Education Sciences, to—

“(A) develop performance measures, including the measures described in subsection (a) and evaluate the activities funded under section 202 by these performance measures by applying the same measures to each project funded under section 202;

“(B) report the findings of the evaluation to the authorizing committees and make publicly available on the website of the Department; and

“(C) identify best practices and disseminate research on best practices that scientifically valid research indicates are the most successful in improving the quality of educator preparation programs, including through regional educational laboratories and comprehensive centers (as authorized under the Education Sciences Reform Act of 2002).

“(f) Evaluation To be made publicly available.—Each eligible partnership receiving a grant under this part shall complete and make publicly available, not later than 90 days after the grant period for such eligible partnership ends, an evaluation based on the evaluation plan described under subsection (a).

“(g) Development of performance measures.—The Secretary shall develop performance measures described in subsection (e) prior to awarding grants under this part. The Secretary shall ensure that such measures are made available to potential applicants prior to seeking applications for grants under this part.

“PART BState innovation in educator preparation

“SEC. 206. Educator preparation program reform grants.

“(a) Definitions.—In this section:

“(1) EDUCATOR PREPARATION PROGRAM ACCOUNTABILITY AND IMPROVEMENT SYSTEM.—The term ‘Educator Preparation Program Accountability and Improvement System’ means a system that assesses all educator preparation programs within a State, establishes performance levels for educator preparation programs, and informs the interventions for low-performing educator preparation programs. The minimum requirements for such a system shall include—

“(A) defining at least 4 performance levels that differentiate the performance of educator preparation programs based on data required in subparagraph (D);

“(B) administering satisfaction surveys to employers of recent program graduates;

“(C) administering satisfaction surveys to recent program graduates;

“(D) assessing all such educator preparation programs on multiple measures that, at a minimum, shall include—

“(i) for teacher preparation programs—

“(I) a statewide measure of teacher impact on student learning for recent program graduates who are employed as full-time teachers as demonstrated through either—

“(aa) the percentage of recent program graduates in each evaluation rating category for States that have statewide teacher evaluation systems if such evaluation systems contain the impact on student achievement, multiple measures, and more than 2 rating categories; or

“(bb) for States that do not have a statewide teacher evaluation system meeting the requirements in item (aa), the percentage of recent program graduates who demonstrate evidence of improved student growth that is limited to evidence-based or externally-validated measures;

“(II) the number and percentage of recent program graduates employed as full time teachers who are identified as well-prepared by their employers in the surveys described in subparagraph (B);

“(III) the number and percentage of recent graduates employed as full-time teachers who identify themselves as being well-prepared in surveys described in subparagraph (C);

“(IV) the number and percentage of teachers who graduated from teacher preparation programs and who are still teaching in full-time positions 3 years and 5 years after initial placement as a teacher; and

“(V) the number and percentage of teachers who graduated from the educator preparation program in the most recent academic year who are teaching in full-time positions;

“(ii) for school leader preparation programs—

“(I) a statewide measure of school leader impact on student learning for recent program graduates who are employed as full-time school leaders as demonstrated through either—

“(aa) the percentage of recent program graduates in each evaluation rating category for States that have statewide school leader evaluation systems that include the impact on student achievement, multiple measures, and more than 2 rating categories; or

“(bb) for States that do not have school leader evaluation systems that meet the requirements of item (aa), the percentage of recent program graduates who demonstrate evidence of improved student achievement and growth that is limited to evidence-based or externally-validated measures;

“(II) evidence of training school leaders to provide strong instructional leadership and support to teachers and other staff;

“(III) the number and percentage of recent program graduates employed as full time school leaders who are identified as well-prepared in the surveys described in subparagraph (B);

“(IV) the number and percentage of recent program graduates employed as school leaders who, based on surveys described in subparagraph (C), described themselves as prepared to be effective school leaders;

“(V) the number and percentage of school leaders who graduated from the educator preparation program in the most recent academic year who are employed as school leaders; and

“(VI) the number and percentage of school leaders who graduated from programs and are still serving in a school leadership role 3 years and 5 years after initial placement as a school leader;

“(iii) for all educator preparation programs—

“(I) evidence of meaningful collaboration with high-need local educational agencies to ensure the educator preparation programs are preparing educators to meet the workforce needs of high-need local educational agencies and to ensure that high-need local educational agencies have a role in the design of the teacher or school leader candidate education offered at educator preparation programs; and

“(II) the number and percentage of graduates who are working as full-time teachers or school leaders in high-need schools after 3 years;

“(E) using the same metrics and weights to determine the performance level of all educator preparation programs in the State;

“(F) public reporting of performance levels on a program by program basis based on the measures described in subparagraph (D);

“(G) distribution of educator preparation program performance information to all local educational agencies and school boards in the State;

“(H) interventions for programs identified as low performing pursuant to subparagraph (A), including—

“(i) for programs identified as low performing for 1 year, requiring such programs to conduct a needs assessment and develop and implement an improvement plan based on that needs assessment;

“(ii) for programs identified as low performing for 3 consecutive years, requiring such programs to lose eligibility for TEACH grants under subpart 9 of part A of title IV and continue to implement an improvement plan; and

“(iii) for programs identified as low performing for 4 consecutive years, requiring the State to terminate the ability of such program to operate; and

“(I) for programs identified in the lowest performing level for 1 or more years under subparagraph (A), an automatic designation as a low performing program under section 212.

“(2) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—

“(A) a State; or

“(B) a consortium of States.

“(b) Program authorized.—

“(1) EDUCATOR PREPARATION PROGRAM REFORM GRANTS.—The Secretary shall award grants to eligible entities to enable such entities to reform and improve educator preparation programs.

“(2) DURATION.—

“(A) IN GENERAL.—A grant awarded under this section shall be not more than 5 years in duration.

“(B) NUMBER OF GRANTS.—A State shall not receive, directly or as part of a consortium, more than 1 grant under this section for any grant period.

“(C) REQUIREMENTS FOR ADDITIONAL FUNDING.—Before receiving funding for the third or any subsequent year of the grant, the eligible entity receiving the grant shall demonstrate to the Secretary that the eligible entity is—

“(i) making progress in implementing the plan under subsection (c)(1)(A) at a rate that the Secretary determines will result in full implementation of the plan during the remainder of the grant period; and

“(ii) making progress, as measured by the performance measures established by the Secretary under subsection (h), at a rate that the Secretary determines will result in reaching the measures and achieving the objectives of the grant, during the remainder of the grant period.

“(D) SUBSTANTIAL PROGRESS.—

“(i) IN GENERAL.—If the Secretary determines that an eligible entity receiving a grant under this section is not making substantial progress in meeting the objectives of the grant, as appropriate, by the end of the third year of the grant under this section, then the Secretary may, after notice and an opportunity for a hearing in accordance with chapter 5 of title 5, United States Code—

“(I) withhold funds provided under the grant under this section for failure to comply substantially with the requirements of this section; or

“(II) take actions to recover funds provided under the grant if the entity uses grant funds for an unallowable expense, or otherwise fails to discharge its responsibility to properly account for grant funds.

“(ii) USE OF RECOVERED OR UNUSED FUNDS.—Any funds recovered or withheld under clause (i) shall—

“(I) be credited to the appropriations account from which amounts are available to make grants under this section; and

“(II) remain available until expended for any purpose of such account authorized by law that relates to the program under this section.

“(E) RESERVATION OF FUNDS.—From amounts made available to carry out this section for a fiscal year, the Secretary may reserve not more than 5 percent to carry out activities related to technical assistance, outreach and dissemination, and evaluation.

“(c) Application and selection criteria.—

“(1) APPLICATION.—An eligible entity that desires to receive a grant under this section shall submit to the Secretary an application at such time, in such manner, and accompanied by such information as the Secretary may require. At a minimum, each such application shall include—

“(A) a plan to implement the required activities in subsection (e)(1) statewide, including a description of its plan to support educator preparation programs to make the necessary reforms and improvements required under this section;

“(B) an assurance that the eligible entity will use the Educator Preparation Program Accountability and Improvement System to reward high-performing educator preparation programs and identify and improve low-performing educator preparation programs and the specific criteria the eligible entity will use to identify low-performing and high-performing educator preparation programs;

“(C) evidence of the steps the State has taken and will take to eliminate statutory, regulatory, procedural, or other barriers to facilitate the full implementation of the State plans under subparagraph (A);

“(D) a comprehensive and coherent plan for using funds under this section, and other Federal, State, and local funds to develop statewide reforms and improvements to educator preparation programs;

“(E) evidence of collaboration between the eligible entity, State standards boards for teacher or school leader certification, local educational agencies, educator preparation programs, teachers, school leaders, and other key stakeholders within the State in developing the plan under subparagraph (A), including the design of the Education Preparation Program Accountability and Improvement System;

“(F) a commitment to participate in the reporting provisions under subsection (f) and the evaluation of the activities carried out under this section, as described in subsection (h); and

“(G) a description of the eligible entity's plan to regularly review the success of activities undertaken as part of the grant and continuously improve such activities.

“(2) SELECTION CRITERIA.—In awarding grants under this section, the Secretary shall consider—

“(A) the extent to which the eligible entity has the capacity to implement the activities described in subsection (e);

“(B) the extent to which the eligible entity has a demonstrated record of effectiveness or an evidence-based plan for reforming educator preparation programs; and

“(C) the likelihood of the eligible entity sustaining the reforms and improvements required under the grant, once the grant has ended and the eligible entity’s plan for sustaining the reforms and improvements after the grant has ended.

“(d) Awarding grants.—In awarding grants under this section, the Secretary shall give priority to an eligible entity with—

“(1) data systems in place to link the results of teacher or school leader evaluation systems for recent program graduates back to the educator preparation programs from which they graduated;

“(2) statewide teacher or school leader evaluation systems based on multiple measures, that include student growth; and

“(3) strong partnerships between educator preparation programs and high-need local educational agencies.

“(e) Activities.—

“(1) REQUIRED USES OF FUNDS FOR ALL GRANTEES.—Each eligible entity that receives a grant under this section shall use the grant funds to do the following:

“(A) Incorporate into the State’s educator preparation program approval process a requirement that educator preparation entities—

“(i) successfully recruit top talent and hold a high bar for admission to educator preparation programs;

“(ii) present evidence demonstrating selective admission;

“(iii) provide participants with clinical training, including prioritizing clinical training in high-need schools;

“(iv) for entities that prepare teachers, prepare all teachers to effectively teach students with disabilities and English learners, and for entities that prepare school leaders, prepare all school leaders to lead schools that effectively address the academic needs of students with disabilities and English learners;

“(v) for entities that prepare teachers, ensure that all teacher candidates demonstrate subject matter mastery and mastery of effective classroom management, and for entities that prepare school leaders, ensure that all school leader candidates demonstrate mastery of school management techniques, including strategies for creating a positive learning environment that conveys high expectations for all students and equitably implementing school discipline policies;

“(vi) ensure that all teachers and school leaders develop teaching skills and school leadership skills, respectively; and

“(vii) are aligned with research-based professional teaching or leadership standards.

“(B) Design and implement an Educator Preparation Program Accountability and Improvement System and require all educator preparation programs to be included in such system.

“(C) Require all educator preparation programs to regularly communicate with the in-State local educational agencies they predominantly serve to ascertain the agencies' educator workforce needs and whether the educator preparation programs are meeting the workforce needs and whether recent program graduates have the skills needed to be effective.

“(D) Require all educator preparation programs to utilize satisfaction surveys of recent program graduates that are conducted by the States to improve educator preparation programs.

“(E) Require all educator preparation programs to utilize satisfaction surveys of employers that are conducted by the States to ascertain employer satisfaction with recent program graduates of educator preparation programs.

“(F) Ensure statewide data systems, including the Educator Preparation Program Accountability and Improvement System, do not publicly report personally identifiable information of educators or elementary school or secondary school students, comply with section 444 of the General Education Provisions Act ((20 U.S.C. 1232g), commonly known as the ‘Family Educational Rights and Privacy Act of 1974’), and share with educator preparation programs the aggregate data on—

“(i) the aggregate impact their recent program graduates have on student achievement as demonstrated through teacher or school leader evaluation results of their program graduates;

“(ii) retention of their program graduates, including at—

“(I) 3 years after initial placement as a teacher or school leader; and

“(II) 5 years after initial placement as a teacher or school leader; and

“(iii) the number and percentage of recent program graduates hired into full-time positions as teachers or school leaders within 1 year of certification or licensure.

“(G) Report publicly on the aggregate performance of each educator preparation program operating in the State, including aggregate data on the measures described in subparagraph (F), and ensure that key stakeholders such as applicants to teacher preparation programs or school leader preparation programs, school administrators, and school board members, receive these performance results.

“(H) Redesign certification and licensing exams to ensure that such exams are aligned with the State’s challenging academic content standards and challenging student academic achievement standards required under section 1111(b) of the Elementary and Secondary Education Act of 1965, educator performance assessments, and educator evaluation systems.

“(I) Utilize data collected, as described in subsection (a)(1), in program approval, program re-approval, program improvement, and program closures processes.

“(J) Require all educator preparation programs within the State to offer a high-quality clinical training to educator candidates.

“(2) REQUIRED USES OF FUNDS FOR CONSORTIA GRANTEES.—Each eligible entity that receives a grant under this section and is a consortium of States shall use the grant funds to carry out the uses of funds under paragraph (1) and each of the following:

“(A) Develop consistent program quality and accountability indicators across State lines.

“(B) Develop consistent measures for identifying educator preparation programs as low performing.

“(C) Develop systems for the sharing of the data required under the Educator Preparation Program Accountability and Improvement System across State lines that complies with all relevant Federal and State privacy laws, including section 444 of the General Education Provisions Act ((20 U.S.C. 1232g), commonly known as the ‘Family Educational Rights and Privacy Act of 1974’).

“(3) PERMISSIVE USES OF FUNDS.—Each eligible entity that receives a grant under this section may use the grant funds (after meeting all the required uses of funds under paragraph (1) and, as applicable, paragraph (2)) to do the following:

“(A) Incentivize educator preparation programs to pursue programmatic accreditation.

“(B) Improve diversity of teacher or school leader candidates in educator preparation programs.

“(C) Develop partnerships between high-need local educational agencies and educator preparation entities to provide high-quality induction programs and mentoring programs for new educators.

“(D) Provide subgrants for educator development. In this subparagraph, the term ‘educator’ means specialized instructional support personnel, or other staff member who provides or directly supports instruction, such as a school librarian, counselor, or paraprofessional.

“(E) Include, in the subgrants provided under subparagraph (D), the following activities:

“(i) Implementing curriculum changes that improve, evaluate, and assess how well educators develop instructional skills.

“(ii) Preparing educators to use empirically based practice and scientifically valid research, where applicable.

“(iii) Providing pre-service clinical training.

“(iv) Creating induction programs for new educators.

“(v) Aligning recruitment and admissions goals and priorities with the hiring objectives with local educational agencies in the State, including high-need local educational agencies.

“(f) Reporting.—An eligible entity that receives a grant under this section shall submit to the Secretary and make publicly available, at such time and in such manner as the Secretary may require, an annual report, including, at a minimum—

“(1) data on the eligible entity’s progress on the performance measures established by the Secretary under subsection (h);

“(2) a description of the challenges the eligible entity has faced in implementing its plan under this section, and how the eligible entity has addressed or plans to address such challenges; and

“(3) data on educator preparation programs in the State recruiting and selecting candidates who are members of groups underrepresented in the teaching profession.

“(g) Supplement, not supplant.—Grant funds provided under this section shall be used to supplement, and not supplant, any other Federal, State, or local funds otherwise available to carry out the activities described in this section.

“(h) Research, evaluation, and dissemination.—The Secretary, acting through the Director of the Institute of Education Sciences, shall—

“(1) develop performance measures to evaluate the effectiveness of the activities carried out under this grant program; and

“(2) identify best practices and disseminate research on best practices.

“(i) Development of performance measures.—The Secretary shall establish performance measures described under subsection (h) prior to awarding grants under this section. The Secretary shall ensure that such measure are made available to potential applicants prior to seeking applications for grants under this section.

“(j) Teacher or school leader privacy.—No State or local educational agency shall be required to publicly report information in compliance with this section in a case in which the results would reveal personally identifiable information about an individual teacher or school leader.

“(k) Construction.—Nothing in this section shall be construed to alter or otherwise affect the rights, remedies, and procedures afforded school or school district employees under Federal, State or local laws (including applicable regulators or court orders) or under the terms of collective bargaining agreements, memoranda of understanding, or other agreements between such employees and their employers.

“(l) Report to Congress.—Not later than 5 years after the date of enactment of the Higher Education Affordability Act, the Secretary shall submit a report to the Committee on Health, Education, Labor, and Pensions of the Senate, the Committee on Appropriations of the Senate, the Committee on Education and the Workforce of the House of Representatives, and the Committee on Appropriations of the House of Representatives on lessons learned through programs funded with grants awarded under this section and shall make such report publicly available.

“(m) Authorization of appropriations.—There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2015 and each of the 5 succeeding fiscal years.

“PART CEducator preparation program reporting and improvement

“SEC. 210. Information on educator preparation programs.

“(a) Institutional and program report cards on the quality of educator preparation.—

“(1) REPORT CARD.—Each institution of higher education that conducts a traditional educator preparation program or alternative routes to State certification or licensure program and that enrolls students receiving Federal assistance under this Act and each educator preparation entity that is not based at an institution of higher education and that receives Federal assistance shall report annually to the State and the general public, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, the following, in the aggregate for each institution and entity and disaggregated by program within each institution and entity:

“(A) GOALS AND ASSURANCES.—For the most recent year for which the information is available for the institution or entity—

“(i) whether the goals set under section 211 have been met; and

“(ii) if the goals under section 211 have not been met, a description of the steps the program is taking to improve its performance in meeting such goals.

“(B) PASS RATES AND SCALED SCORES.—For the most recent year for which the information is available for those program participants who took the assessments used for teacher or school leader certification or licensure by the State in which the program is located and are enrolled in the traditional educator preparation program or alternative routes to State certification or licensure program, for each of such assessments—

“(i) the percentage of all program participants who have taken the assessment who have passed such assessment compared to the average passage rate percentage in the State on such assessment;

“(ii) the percentage of all program participants who have taken the assessment who passed such assessment on the first time taking the assessment compared to the first-time average passage rate in the State on such assessment;

“(iii) the percentage of program participants who have taken such assessment and enrolled in the traditional teacher or school leader preparation program or alternative routes to State certification or licensure program, as applicable;

“(iv) the average scaled score for all program participants who have taken such assessment, as compared to the passing score required by the State on such assessment;

“(v) the average scaled score for all program participants who have taken such assessment for the first time compared to the average scaled score for programs in the State; and

“(vi) if applicable, the percentage of all program participants who have taken and passed a teacher performance assessment compared to the average passage rate for all programs in the State on such assessment.

“(C) CANDIDATE INFORMATION.—For the most recent academic year for which data is available—

“(i) the median cumulative grade point average of admitted program participants compared to the institution or entity as a whole;

“(ii) the median score on standardized entrance examinations of admitted program participants compared to the institution or entity as a whole, as applicable;

“(iii) in the aggregate and disaggregated by race, ethnicity, gender, and Pell Grant recipient status, the number of program participants who—

“(I) enrolled in the program; and

“(II) completed or graduated from the program in 100 percent of normal time and 150 percent of normal time; and

“(iv) the total number of program participants who have been certified or licensed as teachers or school leaders, disaggregated by race, ethnicity, gender, Pell Grant recipient status, subject and area of certification or licensure.

“(D) PROGRAM INFORMATION.—For the most recent academic year for which data is available—

“(i) the percentage of enrolled program participants who participated in a clinical training;

“(ii) the number of hours of clinical training required for program participants; and

“(iii) the percentage of program participants graduating from or completing the program who obtained at minimum 50 percent of clinical training in high-need schools.

“(E) ACCREDITATION AND APPROVAL.—Whether the program is accredited by a specialized accrediting agency recognized by the Secretary for accreditation of professional educator preparation programs and whether the program is approved by the State.

“(F) DESIGNATION AS LOW-PERFORMING.—Whether the program has been designated as low performing by the State under section 212.

“(G) EDUCATOR TRAINING.—A list of the activities that prepare—

“(i) general education and special education teachers and other educators to effectively teach students with disabilities effectively, including training related to participation as a member of individualized education program teams, as defined in section 614(d)(1)(B) of the Individuals with Disabilities Education Act, and to effectively teach students who are English learners; and

“(ii) school leaders to effectively develop a shared vision for high achievement and college and career readiness for all students, including creating structures and staffing to meet the needs of all students, in particular students with disabilities and English learners.

“(2) FINES.—The Secretary may impose a fine not to exceed $27,500 on an institution of higher education or educator preparation entity that is not based at an institution of higher education for failure to provide the information described in this subsection in a timely or accurate manner.

“(3) RULE OF CONSTRUCTION.—Nothing in this section shall be construed to prevent a State from collecting and reporting additional data indicators regarding teacher preparation programs.

“(4) SPECIAL RULE.—In the case of an institution of higher education, or educator preparation entity that is not based at an institution of higher education, that conducts a traditional educator preparation program or alternative routes to State certification or licensure program and has fewer than 10 program participants in a program, the institution or entity shall collect and publish information, as required under paragraph (1) over a 3-year period.

“(5) PROTECTION FOR TEACHER OR LEADER IDENTITY AND DATA VALIDITY.—The Secretary, in consultation with the Commissioner of the National Center for Education Statistics, shall ensure that data collected under paragraph (1) and subsection (b) is collected in a way to protect the privacy of teacher or school leader candidates, as well as teachers or school leaders, and to ensure there is sufficient data quality to ensure the validity of conclusions to be drawn from the data collection.

“(b) State report card on the quality of educator preparation.—

“(1) IN GENERAL.—Each State that receives funds under this Act shall provide to the Secretary, and make widely available to the general public and to all local educational agencies located within the State, including by sending information about the State report card to every local educational agency in the State, in a uniform and comprehensible manner that conforms with the definitions and methods established by the Secretary, an annual State report card on the quality of educator preparation in the State, both for traditional educator preparation programs and for alternative routes to State certification or licensure programs, which shall include not less than the following:

“(A) All information reported under subsection (a)(1), for the State as a whole, and for each educator preparation program located within the State.

“(B) For the most recent year for which the information is available for each educator preparation program located within the State—

“(i) the number and percentage of recent program graduates hired into full-time positions as teachers or school leaders within 1 year of certification or licensure, in the aggregate and reported separately by—

“(I) teachers in high-need subject areas or fields;

“(II) high-need schools; and

“(III) certification or licensure type;

“(ii) for teacher preparation programs, the number and percentage of recent program graduates hired into full-time positions as teachers who served for periods of not less than 3 academic years after their initial placement in a teacher position, in the aggregate and reported separately by—

“(I) teachers in high-need subject areas or fields;

“(II) high-need schools;

“(III) certification or licensure type; and

“(iii) for school leader preparation programs, the number and percentage of recent program graduates hired into full-time positions as school leaders who served for periods of not less than 3 academic years after their initial placement in a school leader position, in the aggregated and reported separately by—

“(I) principals;

“(II) assistant principals; and

“(III) high-need schools.

“(C) For recent program graduates at each educator preparation program in the State—

“(i) the percentage of recent program graduates whose elementary and secondary students demonstrate evidence of improved student growth on State teacher or leader evaluation systems, if States have such teacher or leader evaluation systems; and

“(ii) the percentage of recent program graduates who are rated highly based on results from State-administered satisfaction surveys, as available, and the percentage of recent program graduates who self-identify as prepared to be effective teachers or school leaders based on results from State-administered satisfaction surveys, as available.

“(D) Any educator preparation program that has a first-time passage rate for all test takers from the program (regardless of whether or not they are considered program graduates) on assessments used for teacher or school leader certification or licensure below 80 percent.

“(E) The total number of teachers certified or licensed in the preceding year in each high-need subject or field, as compared to the number of teachers needed in each high-need subject or field, and the total number of school leaders certified or licensed in the preceding year and serving in a high-need school compared to the number of school leaders needed in a high-need school, by elementary schools and secondary schools located within the State.

“(2) STATE REPORT CARD DISTRIBUTION AND PUBLICATION.—Each academic year, a State shall—

“(A) submit the report card required under paragraph (1) for the State and for each educator preparation program in the State to the Secretary;

“(B) publish the State’s and each educator preparation program’s report cards on the website of the State educational agency;

“(C) require that each educator preparation program in the State publish the report card required under paragraph (1) on the program’s website and provide the report card to prospective teacher and school leader candidates as well as teacher and school leader candidates accepted for admission; and

“(D) provide the report card required under paragraph (1) to each local educational agency in the State.

“(3) LOW-PERFORMING PROGRAMS.—Each State receiving funds under this Act shall provide—

“(A) the State’s criteria for assessing the performance of educator preparation programs in the State, including the measures described in section 212(a);

“(B) a list of all programs identified as low performing under section 212, and an identification of those programs at risk of being placed on such list, including a specification of the factors that led to each program’s identification;

“(C) for States that do not identify any programs as low performing under section 212 or at risk of being classified as low performing, a description of the reliability and validity of the measures used to assess program performance and evidence that each program met the State’s criteria for assessing performance of teacher preparation programs and school leader preparation programs; and

“(D) for States that do not identify any programs as low performing under section 212 or at risk of being classified as low performing, an explanation of why programs that have first-time passage rates under 80 percent on assessments used for teacher or school leader certification or licensure are not identified as low-performing by the State.

“(4) PROHIBITION AGAINST CREATING A NATIONAL LIST.—The Secretary shall not create a national list or ranking of States, institutions, or schools using the scaled scores provided under this subsection.

“(c) Data quality.—The Secretary shall prescribe regulations to ensure the reliability, validity, integrity, and accuracy of the data submitted pursuant to this section.

“(d) Report of the secretary on the quality of educator preparation.—

“(1) REPORT CARD.—The Secretary shall annually provide to the authorizing committees, and publish and make widely available, a report card on teacher and school leader qualifications and preparation in the United States, including all the information reported in subsection (b)(1). Such report shall identify States which received a grant under this part as part of an eligible partnership.

“(2) REPORT TO CONGRESS.—The Secretary shall prepare and submit a report to the authorizing committees and make such report publicly available that contains the following:

“(A) A comparison of States’ efforts to improve the quality of the current and future educator force, including a list of those States that did not identify any programs as low performing under section 212, or at risk for being identified as low performing, and an assessment of the reliability and validity of the criteria used to by such States to evaluate program performance.

“(B) A comparison of eligible partnerships’ efforts to improve the quality of the current and future educator force.

“(C) The national mean and median scaled scores and pass rate on any standardized test that is used in more than one State for teacher or school leader certification or licensure.

“(3) SPECIAL RULE.—In the case of a teacher preparation program or school leader preparation program with fewer than 10 graduates in a program, the Secretary shall collect and publish, and make publicly available, the information required under subsection (b)(1) taken over a 3-year period.

“(e) Coordination.—The Secretary, to the extent practicable, shall coordinate the information collected and published under this part among States for individuals who took State teacher certification or licensure assessments in a State other than the State in which the individual received the individual’s most recent degree.

“SEC. 211. Goals for meeting the needs of educator shortage areas.

“(a) Annual goals.—Each institution of higher education that offers a traditional educator preparation program (including programs that offer any ongoing professional development programs) or alternative routes to State certification or licensure program, and that enrolls students receiving Federal assistance under this Act, and each non-institution of higher education-based educator preparation entity receiving Federal assistance shall set annual quantifiable goals for increasing the number of prospective educators trained in educator shortage areas designated by the Secretary or by the State educational agency, including mathematics, science, special education, and instruction of English learners.

“(b) Assurances.—Each institution described in subsection (a) shall provide assurances to the Secretary that—

“(1) training provided to prospective educators responds to the identified needs of the local educational agencies or States where the institution’s graduates are likely to teach or lead, based on past hiring and recruitment trends;

“(2) training provided to prospective educators is closely linked with the needs of schools and the instructional decisions new teachers or school leaders face in the classroom and school;

“(3) prospective special education teachers receive course work in core academic subjects and receive training in providing instruction in core academic subjects;

“(4) general education teachers receive training in providing instruction to diverse populations, including children with disabilities, English learners, and children from low-income families; and

“(5) prospective educators receive training on how to effectively meet the needs of urban and rural schools, as applicable.

“(c) Rule of construction.—Nothing in this section shall be construed to require an institution to create a new educator preparation area of concentration or degree program or adopt a specific curriculum in complying with this section.

“SEC. 212. State identification of low-performing programs.

“(a) State assessment.—In order to receive funds under this Act, a State shall conduct an assessment to identify low-performing educator preparation programs in the State and to assist such programs through the provision of technical assistance. Each such State shall provide the Secretary with an annual list of low-performing educator preparation programs and an identification of those programs at risk of being placed on such list, as applicable. Such assessment shall be described in the report under section 210(b). Levels of performance shall be determined by the State and shall include, at minimum—

“(1) measures of candidates’ academic strength, such as median cumulative grade point averages or median standardized entrance examination scores of admitted students;

“(2) first-time passage rates and scaled scores on assessments used for teacher or school leader certification or licensure by the State;

“(3) the number of hours of clinical training required for program candidates;

“(4) programs’ progress towards achieving goals set under section 211(a);

“(5) employment outcomes for recent program graduates, including job placement rates and retention rates, particularly in high-need schools;

“(6) recent program graduates’ results from teacher or leader evaluations; and

“(7) results of satisfaction surveys, as applicable.

“(b) Termination of eligibility.—Any educator preparation program from which the State has withdrawn the State’s approval, or terminated the State’s financial support, due to the low performance of the program based upon the State assessment described in subsection (a)—

“(1) shall be ineligible for any funding for professional development activities awarded by the Department;

“(2) may not be permitted to accept or enroll any student who receives aid under title IV in the institution’s educator preparation program;

“(3) shall provide transitional support, including remedial services if necessary, for students enrolled at the institution at the time of termination of financial support or withdrawal of approval; and

“(4) shall be reinstated upon demonstration of improved performance, as determined by the State.

“(c) Negotiated rulemaking.—If the Secretary develops any regulations implementing subsection (b)(2), the Secretary shall submit such proposed regulations to a negotiated rulemaking process, which shall include representatives of States, institutions of higher education, and educational and student organizations.

“(d) Application of the requirements.—The requirements of this section shall apply to both traditional educator preparation programs and alternative routes to State certification and licensure programs.

“SEC. 213. General provisions.

“(a) Methods.—The Secretary shall ensure that States, institutions of higher education, and educator preparation entities, use fair and equitable methods in reporting under this part and that the reporting methods do not reveal personally identifiable information.

“(b) Special rule.—For each State that does not use content assessments as a means of ensuring that all teachers teaching in core academic subjects within the State are highly qualified, as required under section 1119 of the Elementary and Secondary Education Act of 1965, in accordance with the State plan submitted or revised under section 1111 of such Act, and that each person employed as a special education teacher in the State who teaches elementary school or secondary school is highly qualified by the deadline, as required under section 612(a)(14)(C) of the Individuals with Disabilities Education Act, the Secretary shall—

“(1) to the extent practicable, collect data comparable to the data required under this part from States, local educational agencies, institutions of higher education, or other entities that administer such assessments to teachers or prospective teachers; and

“(2) notwithstanding any other provision of this part, use such data to carry out requirements of this part related to assessments, pass rates, and scaled scores.

“(c) Release of information to educator preparation programs.—

“(1) IN GENERAL.—For the purpose of improving teacher and school leader preparation programs, a State that receives funds under this Act, or that participates as a member of a partnership, consortium, or other entity that receives such funds, shall provide to an educator preparation program any and all pertinent education-related information that—

“(A) may enable the educator preparation program to evaluate the effectiveness of the program’s graduates or the program itself; and

“(B) is possessed, controlled, or accessible by or through the State.

“(2) DATA REQUIRED TO BE SHARED.—In addition to the information described in paragraph (1), the State shall share with each educator preparation program in the State, and to the extent practicable, with educator preparation programs in other States whose program graduates are teaching in the State, data from teacher or school leader evaluation results, including any information necessary to complete subsections (a) and (b) of section 210.

“(3) PRIVACY.—The information and data required under paragraphs (1) and (2) to be shared shall—

“(A) include aggregate elementary and secondary academic achievement, without revealing personally identifiable information about an individual student, for students who have been taught by graduates of the educator preparation program, as available; and

“(B) comply with section 444 of the General Education Provisions Act (20 U.S.C. 1232g, commonly known as the ‘Family Educational Rights and Privacy Act of 1974’).

“(d) Funding.—A State may use funds made available under section 2113(a)(3) of the Elementary and Secondary Education Act of 1965 to carry out this section.

“PART DEnhancing teacher education

“subpart 1Honorable Augustus F. Hawkins Centers of Excellence

“SEC. 214. Definitions.

“In this subpart:

“(1) ELIGIBLE INSTITUTION.—The term ‘eligible institution’ means—

“(A) an institution of higher education that offers a teacher preparation program that is—

“(i) a part B institution (as defined in section 322);

“(ii) a Hispanic-serving institution (as defined in section 502);

“(iii) a Tribal College or University (as defined in section 316);

“(iv) an Alaska Native-serving institution (as defined in section 317(b));

“(v) a Native Hawaiian-serving institution (as defined in section 317(b));

“(vi) a Predominantly Black Institution (as defined in section 318);

“(vii) an Asian American and Native American Pacific Islander-serving institution (as defined in section 320(b)); or

“(viii) a Native American-serving, nontribal institution (as defined in section 319);

“(B) a consortium of institutions described in subparagraph (A); or

“(C) an institution described in subparagraph (A), or a consortium described in subparagraph (B), in partnership with any other institution of higher education, but only if the center of excellence established under section 215 is located at an institution described in subparagraph (A).

“(2) SCIENTIFICALLY BASED READING RESEARCH.—The term ‘scientifically based reading research’ has the meaning given such term in section 1208 of the Elementary and Secondary Education Act of 1965.

“SEC. 215. Augustus F. Hawkins Centers of Excellence.

“(a) Program authorized.—From the amounts appropriated to carry out this part, the Secretary is authorized to award competitive grants to eligible institutions to establish centers of excellence.

“(b) Use of funds.—Grants provided by the Secretary under this subpart shall be used to ensure that current and future teachers are highly qualified by carrying out 1 or more of the following activities:

“(1) Implementing reforms within teacher preparation programs to ensure that such programs are preparing teachers who are highly qualified, are able to understand scientifically valid research, and are able to use advanced technology effectively in the classroom, including use of instructional techniques to improve student academic achievement, by—

“(A) retraining or recruiting faculty; and

“(B) designing (or redesigning) teacher preparation programs that—

“(i) prepare teachers to serve in low-performing schools and close student achievement gaps, and that are based on rigorous academic content, scientifically valid research (including scientifically based reading research and mathematics research, as it becomes available), and challenging State academic content standards and student academic achievement standards; and

“(ii) promote strong teaching skills.

“(2) Providing sustained and high-quality preservice clinical training, including the mentoring of prospective teachers by exemplary teachers, substantially increasing interaction between faculty at institutions of higher education and new and experienced teachers, school leaders, and other administrators at elementary schools or secondary schools, and providing support, including preparation time, for such interaction.

“(3) Developing and implementing initiatives to promote retention of highly qualified teachers and school leaders, including minority teachers and school leaders, including programs that provide—

“(A) teacher or school leader mentoring from exemplary teachers or school leaders, respectively; or

“(B) induction and support for teachers and school leaders during their first 3 years of employment as teachers or school leaders, respectively.

“(4) Awarding scholarships based on financial need to help students pay the costs of tuition, room, board, and other expenses of completing a teacher preparation program, not to exceed the cost of attendance.

“(5) Disseminating information on effective practices for teacher preparation and successful teacher certification and licensure assessment preparation strategies.

“(6) Activities authorized under section 202.

“(c) Application.—Any eligible institution desiring a grant under this subpart shall submit an application to the Secretary at such a time, in such a manner, and accompanied by such information as the Secretary may require.

“(d) Minimum grant amount.—The minimum amount of each grant under this subpart shall be $500,000.

“(e) Limitation on administrative expenses.—An eligible institution that receives a grant under this subpart may use not more than 2 percent of the funds provided to administer the grant.

“(f) Regulations.—The Secretary shall prescribe such regulations as may be necessary to carry out this subpart.

“subpart 2Preparing general education teachers To more effectively educate students with disabilities

“SEC. 216. Teach to reach grants.

“(a) Authorization of program.—

“(1) IN GENERAL.—The Secretary is authorized to award grants, on a competitive basis, to eligible partnerships to improve the preparation of general education teacher candidates to ensure that such teacher candidates possess the knowledge and skills necessary to effectively instruct students with disabilities in general education classrooms.

“(2) DURATION OF GRANTS.—A grant under this section shall be awarded for a period of not more than 5 years.

“(3) NON-FEDERAL SHARE.—An eligible partnership that receives a grant under this section shall provide not less than 25 percent of the cost of the activities carried out with such grant from non-Federal sources, which may be provided in cash or in kind.

“(b) Definition of eligible partnership.—In this section, the term ‘eligible partnership’ means a partnership that—

“(1) shall include—

“(A) 1 or more departments or programs at an institution of higher education—

“(i) that prepare elementary or secondary general education teachers;

“(ii) that have a program of study that leads to an undergraduate degree, a master’s degree, or completion of a postbaccalaureate program required for teacher certification; and

“(iii) the graduates of which are highly qualified;

“(B) a department or program of special education at an institution of higher education;

“(C) a department or program at an institution of higher education that provides degrees in core academic subjects; and

“(D) a high-need local educational agency; and

“(2) may include a department or program of mathematics, earth or physical science, foreign language, or another department at the institution that has a role in preparing teachers.

“(c) Activities.—An eligible partnership that receives a grant under this section—

“(1) shall use the grant funds to—

“(A) develop or strengthen an undergraduate, postbaccalaureate, or master’s teacher preparation program by integrating special education strategies into the general education curriculum and academic content;

“(B) provide teacher candidates participating in the program under subparagraph (A) with skills related to—

“(i) response to intervention, positive behavioral interventions and supports, differentiated instruction, and data driven instruction;

“(ii) universal design for learning;

“(iii) determining and utilizing accommodations for instruction and assessments;

“(iv) collaborating with special educators, related services providers, and parents, including participation in individualized education program development and implementation; and

“(v) appropriately utilizing technology and assistive technology for students with disabilities; and

“(C) provide extensive clinical training for participants described in subparagraph (B) with mentoring and induction program support throughout the program that continues during the first 2 years of full-time teaching; and

“(2) may use grant funds to develop and administer alternate assessments of students with disabilities.

“(d) Application.—An eligible partnership seeking a grant under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. Such application shall include—

“(1) a self-assessment by the eligible partnership of the existing teacher preparation program at the institution of higher education and needs related to preparing general education teacher candidates to instruct students with disabilities; and

“(2) an assessment of the existing personnel needs for general education teachers who instruct students with disabilities, performed by the local educational agency in which most graduates of the teacher preparation program are likely to teach after completion of the program under subsection (c)(1).

“(e) Peer review.—The Secretary shall convene a peer review committee to review applications for grants under this section and to make recommendations to the Secretary regarding the selection of grantees. Members of the peer review committee shall be recognized experts in the fields of special education, teacher preparation, and general education and shall not be in a position to benefit financially from any grants awarded under this section.

“(f) Evaluations.—

“(1) BY THE PARTNERSHIP.—

“(A) IN GENERAL.—An eligible partnership receiving a grant under this section shall conduct an evaluation at the end of the grant period to determine—

“(i) the effectiveness of the general education teachers who completed a program under subsection (c)(1) with respect to instruction of students with disabilities in general education classrooms; and

“(ii) the systemic impact of the activities carried out by such grant on how each institution of higher education that is a member of the partnership prepares teachers for instruction in elementary schools and secondary schools.

“(B) REPORT TO THE SECRETARY.—Each eligible partnership performing an evaluation under subparagraph (A) shall report the findings of such evaluation to the Secretary.

“(2) REPORT BY THE SECRETARY.—Not later than 180 days after the last day of the grant period under this section, the Secretary shall make available to Congress and the public the findings of the evaluations submitted under paragraph (1), and information on best practices related to effective instruction of students with disabilities in general education classrooms.

“PART EGeneral provisions

“SEC. 217. Limitations.

“(a) Federal control prohibited.—Nothing in this title shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private, religious, or home school, whether or not a home school is treated as a private school or home school under State law. This section shall not be construed to prohibit private, religious, or home schools from participation in programs or services under this title.

“(b) No change in State control encouraged or required.—Nothing in this title shall be construed to encourage or require any change in a State’s treatment of any private, religious, or home school, whether or not a home school is treated as a private school or home school under State law.

“(c) National system of teacher certification or licensure prohibited.—Nothing in this title shall be construed to permit, allow, encourage, or authorize the Secretary to establish or support any national system of teacher certification or licensure.

“(d) Rule of construction.—Nothing in this title shall be construed to alter or otherwise affect the rights, remedies, and procedures afforded to the employees of local educational agencies under Federal, State, or local laws (including applicable regulations or court orders) or under the terms of collective bargaining agreements, memoranda of understanding, or other agreements between such employees and their employers.

“(e) Teacher or school leader privacy.—No State, institution of higher education, or local educational agency shall be required to publicly report information in compliance with this title in a case in which the results would reveal personally identifiable information about an individual teacher or school leader.”.

TITLE IIIInstitutional aid

SEC. 301. Rule of construction.

Section 301 (20 U.S.C. 1051) is amended—

(1) in the section heading by adding “; rule of construction” after “Findings and purposes”; and

(2) by adding at the end the following:

“(c) Rule of Construction.—Nothing in this Act shall be construed to restrict an institution from using funds provided under a section of this title for activities and uses that were authorized under such section on the day before the date of enactment of the Higher Education Affordability Act”..”.

SEC. 302. Program purpose.

Section 311 (20 U.S.C. 1057) is amended—

(1) by striking subsection (c) and inserting the following:

“(c) Authorized activities.—Grants awarded under this section shall be used for 1 or more of the following activities:

“(1) The purchase, rental, or lease of educational resources.

“(2) The construction, maintenance, renovation, or joint use and improvement of classrooms, libraries, laboratories, or other instructional facilities, including the integration of computer technology into institutional facilities to create smart buildings.

“(3) Support of faculty exchanges, faculty development, and faculty fellowships to assist members of the faculty in attaining advanced degrees in their field of instruction.

“(4) Student support services, including supporting distance education, the development and improvement of academic programs, tutoring, counseling, school-sanctioned travel, and financial literacy for students and families.

“(5) Improving funds management, administrative management, and the acquisition of equipment for use in strengthening funds management.

“(6) Maintaining financial stability through establishing or developing a contributions development office or endowment fund.

“(7) Other activities proposed in the application submitted pursuant to section 391 that—

“(A) contribute to carrying out the purposes of the program assisted under this section; and

“(B) are approved by the Secretary as part of the review and acceptance of such application.”; and

(2) in subsection (d)—

(A) in paragraph (2), by inserting “75 percent of” after “equal to or greater than”; and

(B) by adding at the end the following:

“(4) SCHOLARSHIP.—An eligible institution that uses grant funds provided under this part to establish or increase an endowment fund may use the interest proceeds from such endowment to provide scholarships to students for the purposes of attending such institution.”.

SEC. 303. Duration of grant.

Section 313 (20 U.S.C. 1059) is amended by adding at the end the following:

“(e) Requirement for additional funding.—

“(1) IN GENERAL.—The Secretary shall not award grant funds for the fourth or fifth year of a grant under this part unless the Secretary determines that the grantee is making progress in implementing the activities described in the grantee's application under section 391 at a rate that will result in the full implementation of such activities before the end of the grant period.

“(2) CONSIDERATION OF DATA AND INFORMATION.—The Secretary shall consider any data or information provided to the Department by grantees for the continued receipt of grants under this title under paragraph (1) that is considered in accordance with regulations issued by the Secretary before the date of enactment of the Higher Education Affordability Act. Any requirements the Secretary develops for institutions in accordance with regulations issued by the Secretary after the date of enactment of the Higher Education Affordability Act to carry out this subsection shall take into account the capacity and resources of institutions to comply with such requirements.”.

SEC. 304. American Indian tribally controlled colleges and universities.

Section 316 (20 U.S.C. 1059c) is amended—

(1) in subsection (c)—

(A) by striking subparagraphs (A) through (N) and inserting the following:

“(A) The activities described in section 311(c).

“(B) Academic instruction in disciplines in which Indians are underrepresented and instruction in tribal governance or tribal public policy.

“(C) Establishing or enhancing a program of teacher education designed to qualify students to teach in elementary schools or secondary schools, with a particular emphasis on teaching Indian children and youth, that shall include, as part of such program, preparation for teacher certification.

“(D) Establishing community outreach programs that encourage Indian elementary school and secondary school students to develop the academic skills and the interest to pursue postsecondary education.”;

(B) by striking paragraph (2);

(C) by redesignating paragraph (3) as paragraph (2); and

(i) in paragraph (2), as redesignated by subparagraph (C)—

(ii) by inserting “not less than 75 percent of” after “in an amount equal to”; and

(iii) by adding at the end the following:

“(D) SCHOLARSHIP.—A Tribal College or University that uses grant funds under this section to establish or increase an endowment fund may use the interest proceeds from such endowment to provide scholarships to students for the purposes of attending such Tribal College or University.”; and

(2) in subsection (d)—

(A) by striking paragraph (1); and

(B) by redesignating paragraphs (2), (3), and (4), as paragraphs (1), (2), and (3), respectively.

SEC. 305. Alaska Native and Native Hawaiian-serving institutions.

Section 317(c) (20 U.S.C. 1059d(c)) is amended—

(1) in paragraph (1)—

(A) by striking “Authorized Activities.—” in the subsection heading and all that follows through “Grants awarded under this section shall” and inserting “Authorized Activities.—Grants awarded under this section shall”; and

(B) by inserting “Such activities may include the activities described in section 311(c).” after “capacity to serve Alaska Natives or Native Hawaiians.”; and

(2) by striking paragraph (2).

SEC. 306. Predominantly Black Institutions.

Section 318(d) (20 U.S.C. 1059e(d)) is amended—

(1) in paragraph (2)(A), by striking “paragraphs (1) through (12)” and inserting “paragraphs (1) through (7)”; and

(2) in paragraph (3)(B), by inserting “75 percent of” after “equal to or greater than”.

SEC. 307. Native American-serving nontribal institutions.

Section 319(c) (20 U.S.C. 1059f(c)) is amended—

(1) in paragraph (1)—

(A) by striking “Authorized Activities.—” in the subsection heading and all that follows through “Grants awarded under this section shall” and inserting “Authorized Activities.—Grants awarded under this section shall”; and

(B) by inserting “Such activities may include the activities described in section 311(c).” after “serve Native Americans and low-income individuals.”; and

(2) by striking paragraph (2).

SEC. 308. Asian American and Native American Pacific Islander-serving institutions.

Section 320(c)(2) (20 U.S.C. 1059g(c)(2)) is amended by striking subparagraphs (A) through (N) and inserting the following:

“(A) the activities described in section 311(c);

“(B) academic instruction in disciplines in which Asian Americans and Native American Pacific Islanders are underrepresented;

“(C) conducting research and data collection for Asian American and Native American Pacific Islander populations and subpopulations; and

“(D) establishing partnerships with community-based organizations serving Asian Americans and Native American Pacific Islanders.”.

SEC. 309. Native American education tuition cost share.

Part A of title III of the Higher Education Act of 1965 (20 U.S.C. 1057 et seq.) is amended by inserting after section 319 the following:

“SEC. 319A. Native American education tuition cost share.

“(a) Amount of payment.—

“(1) IN GENERAL.—Subject to paragraphs (2) and (3), for fiscal year 2015 and each succeeding fiscal year, the Secretary shall pay to any eligible college an amount equal to 40 percent of the total amount of charges for tuition for such year, and the State shall pay 60 percent of such charges for such year, for all Native American Indian students who—

“(A) are not residents of the State in which the college they attend is located; and

“(B) are enrolled in the college for the academic year ending immediately prior to the beginning of such fiscal year.

“(2) ELIGIBLE COLLEGES.—For purposes of this section, an eligible college is any institution of higher education serving Native American Indian students that provides tuition-free education to such students, as mandated by Federal law, with the support of the State in which the college is located, in fulfillment of a condition under which the State or college received its original grant of land and facilities from the United States.

“(b) Treatment of payment.—Any amounts received by an eligible college under this section shall be treated as a reimbursement from the State in which the college is located, and shall be considered as provided in fulfillment of any Federal mandate upon the State to admit Native American Indian students free of charge of tuition.

“(c) Rule of construction.—Nothing in this section shall be construed to relieve any State from any mandate the State may have under Federal law to reimburse a college for each academic year—

“(1) with respect to Native American Indian students enrolled in the college who are not residents of the State in which the college is located, any amount of charges for tuition for such students for such academic year that exceeds the amount received under this section for such academic year; and

“(2) with respect to Native American Indian students enrolled in the college who are residents of the State in which the college is located, an amount equal to the charges for tuition for such students for such academic year.

“(d) Definition.—In this section, the term ‘Native American Indian student’ means an Indian pupil (as such term has been defined for purposes of Federal laws that impose a mandate upon a State or college to provide tuition-free education to Native American Indian students in fulfillment of a condition under which the State or college received its original grant of land and facilities from the United States).”.

SEC. 310. Grants to institutions.

Section 323 (20 U.S.C. 1062) is amended—

(1) in subsection (a), by striking paragraphs (1) through (15) and inserting the following:

“(1) The purchase, rental, or lease of educational resources.

“(2) The construction, maintenance, renovation, or joint use and improvement of classrooms, libraries, laboratories, or other instructional facilities, including the integration of computer technology into institutional facilities to create smart buildings.

“(3) Support of faculty exchanges, faculty development, and faculty fellowships to assist members of the faculty in attaining advanced degrees in their field of instruction.

“(4) Student academic and support services, including supporting distance education (including through the purchase or rental of telecommunications technology equipment or services), the development and improvement of academic programs and curricula, tutoring, counseling, school-sanctioned travel, and financial literacy for students and families.

“(5) Improving funds management, administrative management, and the acquisition of technology, services and equipment for use in strengthening funds and administrative management.

“(6) Maintaining financial stability through establishing or developing a contributions development office or endowment fund.

“(7) Initiatives to improve the educational outcomes of African-American males.

“(8) Other activities proposed in the application submitted pursuant to section 325 that—

“(A) contribute to carrying out the purposes of the program assisted under this section; and

“(B) are approved by the Secretary as part of the review and acceptance of such application.”; and

(2) in subsection (b)—

(A) in paragraph (2), by inserting “75 percent of” after “equal to or greater than”; and

(B) by adding at the end the following:

“(4) SCHOLARSHIP.—An institution that uses grant funds provided under this part to establish or increase an endowment fund may use the interest proceeds from such endowment to provide scholarships to students for the purposes of attending such institution.”.

SEC. 311. Allotments to institutions.

Section 324(c) (20 U.S.C. 1063(c)) is amended by striking “5 years” and inserting “6 years”.

SEC. 312. Professional or graduate institutions.

Section 326 (20 U.S.C. 1063b) is amended by striking subsection (c) and inserting the following:

“(c) Uses of funds.—

“(1) IN GENERAL.—A grant under this section may be used for 1 or more of the following activities:

“(A) The purchase, rental, or lease of educational resources.

“(B) The construction, maintenance, renovation, or joint use and improvement of classrooms, libraries, laboratories, or other instructional facilities, including the integration of computer technology into institutional facilities to create smart buildings.

“(C) Support of faculty exchanges, faculty development, and faculty fellowships to assist members of the faculty in attaining advanced degrees in their field of instruction.

“(D) Student academic support services, including supporting distance education (including through the purchase or rental of telecommunications technology equipment or services), the development and improvement of academic programs, tutoring, counseling, school-sanctioned travel, distance education, and financial literacy for students and families.

“(E) Improving funds management, administrative management, and the acquisition of technology, services, and equipment for use in strengthening funds and administrative management.

“(F) Maintaining financial stability through establishing or developing a contributions development office or endowment fund.

“(G) Other activities proposed in the applications submitted pursuant to subsection (d) and section 391 that—

“(i) contribute to carrying out the purposes of the program assisted under this section; and

“(ii) are approved by the Secretary as part of the review and acceptance of such application.”.

SEC. 313. Applications for assistance.

Section 391(b) (20 U.S.C. 1068(b)) is amended—

(1) by redesignating paragraphs (6) through (8) as paragraphs (7) through (9); and

(2) by inserting after paragraph (5), the following:

“(6) provide an assurance that the institution will report to the Secretary on—

“(A) the number and percentage of undergraduate students who upon entry into the institution matriculate into a major field of study or other program leading to a postsecondary certificate, an associate's degree, or a baccalaureate degree;

“(B) student persistence data for the institution's undergraduates, demonstrating the number and percentage of students who are continuously enrolled in the institution, which shall be measured in a manner proposed by the institution and approved by the Secretary; and

“(C) data on the number and percentage of undergraduate students making satisfactory progress, as defined in accordance with section 484(c).”.

SEC. 314. Limitations on Federal insurance for bonds issued by the designated bonding authority.

Section 344(a) (20 U.S.C. 1066c(a)) is amended—

(1) in the matter preceding paragraph (1), by striking “$1,100,000,000” and inserting “$3,000,000,000”;

(2) in paragraph (1), by striking “$733,333,333” and inserting “$2,088,000,000”; and

(3) in paragraph (2), by striking “$366,666,667” and inserting “$912,000,000”.

SEC. 315. Authorization of appropriations.

Section 399(a) (20 U.S.C. 1068h(a)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (A), by striking “$135,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”;

(B) in subparagraph (B), by striking “$30,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”;

(C) in subparagraph (C), by striking “$15,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”;

(D) in subparagraph (D), by striking “$75,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”;

(E) in subparagraph (E), by striking “$25,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”; and

(F) in subparagraph (F), by striking “$30,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”;

(2) in paragraph (2)—

(A) in subparagraph (A), by striking “$375,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”; and

(B) in subparagraph (B), by striking “$125,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”;

(3) in paragraph (3), by striking “$10,000,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”;

(4) in paragraph (4)—

(A) in subparagraph (A), by striking “$185,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”; and

(B) in subparagraph (B), by striking “fiscal year 2009” and inserting “fiscal year 2015”; and

(5) in paragraph (5)—

(A) in subparagraph (A), by striking “$12,000 for fiscal year 2009” and inserting “such sums as may be necessary for fiscal year 2015”; and

(B) in subparagraph (B), by striking “fiscal year 2009” and inserting “fiscal year 2015”.

TITLE IVStudent assistance

PART AGrants to students

subpart 1Federal Pell Grants

SEC. 401. Year-round Federal Pell Grants; extension of Federal Pell Grant inflation adjustments.

Section 401 (20 U.S.C. 1070a) is amended—

(1) in subsection (a)(1), by striking “through fiscal year 2017” and inserting “through fiscal year 2020”;

(2) in subsection (b)—

(A) in paragraph (2)(A)(ii), by striking “paragraph (7)(B)” and inserting “paragraph (9)(B)”;

(B) by redesignating paragraphs (5) through (7) as paragraphs (7) through (9), respectively;

(C) by inserting after paragraph (4) the following:

“(5) (A) The purpose of this paragraph is to establish a year-round Federal Pell Grant program to allow eligible students to accelerate the time needed to earn a degree.

“(B) In this paragraph, the term ‘eligible student’ means a student who—

“(i) has received a Federal Pell Grant for an award year and is enrolled in a program of study for 1 or more additional payment periods during the same award year that are not otherwise covered by the student's Federal Pell Grant;

“(ii) continues to meets all eligibility requirements to receive a Federal Pell Grant under this section; and

“(iii) attends an institution of higher education on not less than a half-time basis.

“(C) Notwithstanding any other provision of this subsection, the Secretary shall award an additional Federal Pell Grant to an eligible student for the additional payment periods during an award year that are not otherwise covered by the student's Federal Pell Grant for the award year.

“(D) In the case of a student receiving more than one Federal Pell Grant in a single award year under subparagraph (C), the total amount of the Federal Pell Grants awarded to such student for the award year shall not exceed an amount equal to 150 percent of the total maximum Federal Pell Grant for such award year calculated in accordance with paragraph (9)(C)(iv)(II).

“(E) Any period of study covered by a Federal Pell Grant awarded under subparagraph (C) shall be included in determining a student's duration limit under subsection (c)(5).

“(6) In any case where an eligible student is receiving a Federal Pell Grant for a payment period that spans 2 award years, the Secretary shall allow the eligible institution in which the student is enrolled to determine the award year to which the additional period shall be assigned.”; and

(D) in paragraph (9)(C), as redesignated by subparagraph (B)—

(i) in clause (ii)—

(I) in the clause heading, by striking “2017–2018” and inserting “2020–2021”; and

(II) in the matter preceding subclause (I), by striking “2017–2018” and inserting “2020–2021”; and

(ii) in clause (iii)—

(I) by striking “2018–2019” and inserting “2021–2022”; and

(II) by striking “2017–2018” and inserting “2020–2021”; and

(3) by adding at the end the following:

“(k) Notification of Pell grant eligibility.—

“(1) IN GENERAL.—Each eligible institution shall notify each student enrolled in the institution who is receiving a Federal Pell Grant of the student's remaining period of eligibility for a Federal Pell Grant in accordance with subsection (c)(5), at the times required under paragraph (2) and (3).

“(2) FREQUENCY OF NOTIFICATIONS.—An eligible institution shall provide the notification described in paragraph (1) to a student receiving a Federal Pell Grant—

“(A) not less than once a year while the student is enrolled in the institution; and

“(B) in the case of a student with 2 years, or less, of Federal Pell Grant eligibility remaining, not less than once a semester (or its equivalent) while the student is enrolled in the institution.

“(3) PELL GRANT RECIPIENTS WHO ARE BORROWERS.—In the case of a student who is receiving a Federal Pell Grant who is also a borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C or a loan made on behalf of a student pursuant to section 428B) or made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student), the requirement described in paragraph (1) shall be carried out in accordance with the notification and counseling requirements described in section 485(n).”.

SEC. 401A. College opportunity and graduation bonus demonstration program.

Subpart 1 of part A of title IV (20 U.S.C. 1070a et seq.) is amended by adding at the end the following:

“SEC. 401B. College opportunity and graduation bonus demonstration program.

“(a) Demonstration Program Authority.—The Secretary is authorized to establish a demonstration program—

“(1) to reward eligible institutions of higher education that enroll and graduate a significant number of low- and moderate-income students on time; and

“(2) to encourage institutions of higher education to improve their performance in enrolling and graduating a significant number of low- and moderate-income students on time.

“(b) Grants.—The Secretary shall carry out the demonstration program described in paragraph (1) by awarding grants to eligible institutions of higher education in not more than 5 eligible States selected in accordance with subsection (c) that the Secretary determines have a strong record of supporting, reforming, and improving the performance of the State's public higher education systems in order to make college more affordable and increase college access and success, especially for low-income students.

“(c) Eligible States.—The Secretary shall select eligible States based on the extent to which a State has—

“(1) invested, and continues to invest, significantly in public higher education, resulting in a lower net price for low-income students, as compared to the net price for such students in other States;

“(2) adopted policy reforms to ensure seamless transitions into higher education and among public institutions of higher education, such as dual enrollment and guaranteed credit transfers;

“(3) allocated State financial aid primarily on the basis of need, and

“(4) met other criteria, as determined by the Secretary.

“(d) Institutional eligibility.—The Secretary shall establish criteria for the eligibility of institutions that are located in eligible States on the basis of—

“(1) the percentage of the institution's graduating class that is comprised of Pell Grant recipients;

“(2) the institution’s graduation rate;

“(3) the institution’s average net price; and

“(4) other criteria, as determined by the Secretary.

“(e) Uses of funds.—Each eligible institution of higher education that receives a grant under this section shall use the grant funds to support reforms to further increase college access and success for low- and moderate-income students, by making key investments and adopting best practices, such as—

“(1) awarding additional need-based financial aid;

“(2) enhancing academic and student support services;

“(3) improving student learning and other outcomes while reducing costs;

“(4) using technology to scale and enhance improvements; and

“(5) establishing or expanding accelerated learning opportunities.

“(f) Amount of grant funds.—

“(1) IN GENERAL.—Each eligible institution of higher education that receives a grant under this section shall receive annual grant funds in an amount equal to—

“(A) the number of Pell Grant recipients who graduate from the institution on time (defined as an amount of time equal to or less than 100 percent of program length based on full-time enrollment status) in the previous academic year; multiplied by

“(B) a per-student base amount, which shall be determined by the Secretary and shall be based on the type of institution receiving the grant (such as whether the institution provides a 2-year program or a 4-year program).

“(2) ADDITIONAL PER-STUDENT FUNDS.—In addition to the amount of grant funds awarded under paragraph (1), the Secretary shall award eligible institutions that graduate a number of Pell Grant recipients in excess of a certain threshold number established by the Secretary, a per-student bonus amount (in excess of the per student base amount described in paragraph (1)(B)) for each additional Pell Grant recipient who graduates from the institution that is in excess of that threshold.

“(g) Supplement not supplant.—Funds made available under this section shall be used to supplement, and not supplant—

“(1) other State funds that eligible States would otherwise expend to carry out activities under this section to improve college affordability and graduate additional low-income and moderate-income students; and

“(2) other institutional funds that eligible institutions receiving a grant under this section would otherwise expend to carry out activities under this section to improve college affordability and graduate additional low-income and moderate-income students.

“(h) Evaluation.—Not later than 3 years after the enactment of this section, the Secretary shall prepare and submit to Congress a report that contains an evaluation of the effectiveness of the pilot program under this section in improving college access and success for low-income and moderate-income students.

“(i) Authorization of appropriations.—There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years.”.

subpart 2Early awareness of college financing options

SEC. 403. Federal TRIO programs authorization.

Section 402A(g) (20 U.S.C. 1070a–11(g)) is amended by striking “$900,000,000” and all that follows through “years.” and inserting “such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years.”.

SEC. 404. Postbaccalaureate achievement program authorization.

Section 402E(g) (20 U.S.C. 1070a–15(g)) is amended by striking “each of the fiscal years 2009 through 2014” and inserting “fiscal year 2015 and each of the five succeeding fiscal years”.

SEC. 405. Gaining early awareness and readiness for undergraduate programs authorization.

Section 404H (20 U.S.C. 1070a–28) is amended by striking “$400,000,000” and all that follows through the period at the end and inserting “such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years”.

SEC. 405A. Early awareness of college financing options.

Subpart 2 of part A of title IV (20 U.S.C. 1070a–11 et seq.) is amended by adding at the end the following:

“CHAPTER 3EARLY AWARENESS OF COLLEGE FINANCING OPTIONS

“SEC. 405A. Early awareness of college financing options.

“(a) Purpose.—The purpose of this section is to establish a demonstration program that explores the effectiveness of early notification of postsecondary financial aid options and the cost of postsecondary education.

“(b) Grants authorized; Duration.—

“(1) GRANTS AUTHORIZED.—From amounts appropriated under subsection (l) and not reserved under paragraph (3), and beginning after the first postsecondary education information form described in subsection (h) has been developed, the Secretary is authorized to award grants to 15 State educational agencies to enable such agencies to pay the expenses, including the expenses of local educational agencies in the State, for providing information in a cost-effective way to students in grades 8 through 12 in order to—

“(A) increase student awareness of, and access to, postsecondary education; and

“(B) increase the likelihood that those students will apply for postsecondary financial aid and attend an institution of higher education.

“(2) DURATION.—A grant awarded under this section shall be awarded for a 3-year period.

“(3) RESERVATION OF FUNDS.—From amounts made available to carry out this section for a fiscal year, the Secretary may reserve not more than 1 percent to award a grant to the Bureau of Indian Education, to enable the Bureau to carry out the purposes of this section with respect to schools operated or funded by the Bureau.

“(c) State educational agency applications.—

“(1) IN GENERAL.—Each State educational agency desiring to participate in the demonstration program under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require.

“(2) CONTENTS.—Each application described in paragraph (1) shall include—

“(A) a commitment to utilize the postsecondary education information form described in subsection (h) (referred to in this section as the ‘information form’), including the provision of State-specific grant aid information, as described in subsection (h)(1)(G);

“(B) a description of how the State educational agency plans to disseminate the information form to every school serving grades 8 through 12 in the State;

“(C) an assurance that the State educational agency will fully cooperate with the ongoing evaluation of the demonstration program; and

“(D) such other information as the Secretary may require.

“(d) Selection considerations.—In selecting State educational agencies to participate in the demonstration program under this section, the Secretary shall consider—

“(1) the number and quality of State educational agency applications received;

“(2) the geographic diversity of applicants; and

“(3) a State educational agency’s—

“(A) financial responsibility;

“(B) administrative capability; and

“(C) ability to ensure that the activities carried out under the demonstration program serve all students in grades 8 through 12 in the State.

“(e) Selection priority.—In selecting State educational agencies to participate in the demonstration program under this section, the Secretary shall give priority to those States that have a high percentage of students who are eligible for free and reduced priced lunches under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.) or who are, or come from families that are, eligible for benefits under another means-tested Federal benefit program as defined in section 479(d)(2).

“(f) Activities.—Each State educational agency receiving a grant under this section shall carry out the following activities:

“(1) Make the information form available to every school in the State that serves students in grades 8 through 12 so that such schools can distribute the form to each student in grades 8 through 12, not less than once each school year, utilizing the most useful, effective, and relevant modes of communication, including through technology.

“(2) Develop a statewide public awareness campaign, using a variety of media, to inform students about the cost of postsecondary education and the availability of financial aid.

“(3) Ensure that local educational agencies serving students who receive the information form will participate in the evaluation of the demonstration program, and that data from such local educational agencies will be made available in accordance with the requirements of section 444 of the General Education Provisions Act (20 U.S.C. 1232g) (commonly known as the ‘Family Educational Rights and Privacy Act of 1974’).

“(4) Conduct annual surveys of a representative sample of students who receive the information form, both before the receipt of such form and after the receipt of such form, to determine the short-term and long-term effects of the information form, including—

“(A) such students' knowledge about the cost of postsecondary education and financial aid options;

“(B) the likelihood of such students applying for financial aid, attending an institution of higher education, and enrolling in Advanced Placement, International Baccalaureate, dual enrollment, or early college high school programs; and

“(C) any other information the State educational agency determines relevant.

“(g) Development of an initial form.—

“(1) INITIAL DEVELOPMENT.—Not later than 90 days after the date of enactment of the Higher Education Affordability Act, the Secretary, in consultation with the heads of relevant Federal agencies and representatives of higher education mentors, admissions staff from institutions of higher education, financial aid staff, student and parent focus groups (including students and parents from low-income families), consumer advocates, and secondary school guidance counselors, shall complete the development of an initial model form of postsecondary education information (referred to in this subsection as the ‘initial form’).

“(2) CONSUMER TESTING PROCESS.—The Secretary shall—

“(A) submit the initial form for consumer testing that is in accordance with section 483C and includes the representatives described in paragraph (1); and

“(B) not later than 60 days after the conclusion of the consumer testing under subparagraph (A), use the results of the consumer testing of the initial form in the development of a final information form described in subsection (h).

“(h) Postsecondary Education Information Form.—

“(1) IN GENERAL.—The Secretary shall develop, using the best available evidence and research, an information form that the Secretary shall update annually and distribute to all State educational agencies that receive a grant under this section. The information form shall contain, at a minimum, the following information:

“(A) Information about Federal Pell Grants, including—

“(i) the maximum amount of a Federal Pell Grant for the award year in which the form will be disbursed to students, as determined under clauses (i) and (ii) of section 401(b)(2)(A), which shall be the most visually prominent figure on the information form; and

“(ii) information about when, and how, a student may apply for a Federal Pell Grant.

“(B) Information on—

“(i) Federal student financial aid options, including a description of all available Federal grants (including Federal supplemental educational opportunity grants under subpart 3), loans (including loans under parts D and E), work study assistance under part C, and scholarships for postsecondary education; and

“(ii) the application processes for such grants, loans, assistance, and scholarships.

“(C) Information about Federal tax credits available for higher education expenses.

“(D) Links to the application for the Free Application for Federal Student Aid described in section 483 and Federal student aid websites.

“(E) A link to the Department’s College Affordability and Transparency Center website, including a link to a webpage providing information about net price calculators, or a successor website with similar information.

“(F) Information about fee waivers for applications for institutions of higher education that may be available to qualified students.

“(G) A State-specific section, in which each State educational agency shall include information on State grants for postsecondary education.

“(2) DISTRIBUTION OF FINAL FORM.—The Secretary shall make the final information form described in this subsection available to all State educational agencies that receive a grant under this section.

“(i) State report.—Each State educational agency receiving a grant under this section shall use results from the surveys described in subsection (f)(4), and other pertinent information, to submit an annual report to the Secretary that includes the following:

“(1) A description of the delivery method by which the information form was given to students, and a measurement of the reach of such delivery method.

“(2) The number of students who report being encouraged to pursue higher education by the activities carried out under the grant program.

“(3) A description of the barriers to the effectiveness of the grant program.

“(4) An assessment of the cost-effectiveness of the grant program in improving access to higher education.

“(5) An identification of outcomes related to postsecondary education attendance, including whether a student who received the information form reported being more likely, as compared to before having received such form—

“(A) to enroll in Advanced Placement, International Baccalaureate, dual enrollment, or early college high school programs;

“(B) in the case of a student in grade 12, to submit an application to an institution of higher education;

“(C) to take the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT), SAT, or ACT; and

“(D) in the case of a student in grade 12, to file a Free Application for Federal Student Aid described in section 483.

“(6) The number of students who received the information form and were in grade 12 in the previous year, disaggregated by race, ethnicity, gender, status as an English language learner, status as an economically disadvantaged individual, and status as an individual with a disability (except that such disaggregation shall not be required in a case in which the results would reveal personally identifiable information about an individual student), who—

“(A) enrolled in an institution of higher education;

“(B) applied for Federal student financial aid; and

“(C) received Federal student financial aid.

“(7) A description of the impact of the grant program on the parents of students who received the information form.

“(j) Evaluation and dissemination of research on best practices.—The Secretary, acting through the Director of the Institute of Education Sciences, shall—

“(1) develop performance measures, taking into account the elements that are included in the State report described in subsection (i), for grantees to ascertain outcomes and progress related to the grant program;

“(2) evaluate the demonstration program, using both quantitative and qualitative methods, to examine the effectiveness of delivery methods used in disseminating the information form to students; and

“(3) identify best practices and disseminate research on best practices—

“(A) to State educational agencies, local educational agencies, elementary school and secondary school guidance counselors, and other interested stakeholders; and

“(B) by making such research publicly available on the website of the Institute of Education Sciences.

“(k) Implementation.—

“(1) IN GENERAL.—The Secretary shall—

“(A) upon completion of the grant period, use the results of the evaluation described in subsection (j) to work with all State educational agencies and with local educational agencies to use the results of the evaluation described in subsection (j) to disseminate the information form described in subsection (h) to every State educational agency; and

“(B) in cooperation with States, institutions of higher education, organizations involved in college access and student financial aid, employers, and workforce investment boards, make special efforts to provide the information form to individuals who may qualify as independent students, as defined in section 480(d).

“(2) STATE EDUCATIONAL AGENCIES.—Not later than 1 year after receiving the first information form from the Secretary under paragraph (1), each State educational agency that receives assistance under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) shall ensure that the information form is distributed to all students in grades 8 through 12 in the State.

“(l) Authorization of appropriations.—There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2015 and each of the 2 succeeding fiscal years.”.

SEC. 405B. Awareness of postsecondary education financing options for adult learners.

Subpart 2 of part A of title IV (20 U.S.C. 1070a–11 et seq.), as amended by section 405A, is further amended by adding at the end the following:

“CHAPTER 4AWARENESS OF POSTSECONDARY EDUCATION FINANCING OPTIONS FOR ADULT LEARNERS

“SEC. 405B. Awareness of postsecondary education financing options for adult learners.

“(a) Purpose.—The purpose of this section is to establish a demonstration program that explores the effectiveness of notification processes for adult students regarding postsecondary financial aid options and the cost of postsecondary education.

“(b) Grants authorized; duration.—

“(1) GRANTS AUTHORIZED.—From amounts appropriated under subsection (l) and beginning after the first information form described in subsection (h) has been developed, the Secretary is authorized to award grants to 15 States to enable such States to pay the expenses of providing information in a cost-effective way to adult students who have received a secondary school diploma or who have been out of secondary school for not less than 3 years, in order to—

“(A) increase adult student awareness of, and access to, postsecondary education; and

“(B) increase the likelihood that adult students will apply for postsecondary financial aid and attend an institution of higher education.

“(2) DURATION.—A grant awarded under this section shall be awarded for a 3-year period.

“(c) State applications.—

“(1) DESIGNATION OF AGENCY.—In order for a State to apply for a grant under this part, the Governor of the State shall designate one agency as the eligible State agency who will apply for and administer the grant.

“(2) APPLICATION PROCESS.—Each State agency designated under paragraph (1) that desires to participate in the demonstration program under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require.

“(3) CONTENTS.—Each application described in paragraph (2) shall include—

“(A) a commitment to utilize the postsecondary education information form described in subsection (h) (referred to in this section as the ‘adult information form’), including the provision of State-specific grant aid information, as described in subsection (h)(1)(B);

“(B) a description of how the State plans to disseminate the information form to—

“(i) one-stop centers, as defined in section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102);

“(ii) offices that provide access to public benefits at the State and local levels, including unemployment insurance benefits, assistance or benefits provided under the State temporary assistance for needy families program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and medical assistance provided under the State Medicaid program established under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.);

“(iii) public libraries;

“(iv) 2-year degree-granting institutions of higher education, including occupational programs at such institutions;

“(v) adult education providers, which may include 2-year degree-granting institutions of higher education or local educational agencies;

“(vi) local boards, as defined in section 3 of Workforce Innovation and Opportunity Act (29 U.S.C. 3102), and community-based programs;

“(C) an assurance that the State will fully cooperate with the ongoing evaluation of the demonstration program; and

“(D) such other information as the Secretary may require.

“(d) Selection considerations.—In selecting States to participate in the demonstration program under this section, the Secretary shall consider—

“(1) the number and quality of State applications received;

“(2) the geographic diversity of applicants;

“(3) (A) the financial responsibility of the State agency designated by the State to carry out the program;

“(B) the administrative capability of such agency; and

“(C) such agency's ability to ensure that the activities carried out under the grant program serve the maximum number of adult students in the State.

“(e) Selection priority.—In selecting States to participate in the demonstration program under this section, the Secretary shall give priority to those States that have a high percentage of adults who are unemployed, underemployed, or eligible for benefits under a Federal means-tested program.

“(f) Activities.—Each State agency receiving a grant under this section shall carry out the following activities:

“(1) Make the information form available to every one-stop center, adult education program, public library, office that provides access to public benefits, 2-year degree-granting institution of higher education, and community-based program in the State that serves adult students so that such entities can distribute the form to each adult student utilizing services at the entity in the most useful, effective, and relevant modes of communication, including through technology.

“(2) Develop a statewide public awareness campaign, using a variety of media, to inform adult students about the value of a postsecondary education, the availability of supports to help them balance work and school, the cost of postsecondary education, and the availability of financial aid.

“(3) Ensure that entities serving adult students who receive the information form will participate in the evaluation of the demonstration program, and that data from such entities will be made available in accordance with the requirements of section 444 of the General Education Provisions Act (20 U.S.C. 1232) (commonly known as the ‘Family Educational Rights and Privacy Act of 1974’).

“(4) Conduct annual surveys of a representative sample of adult students who receive the information form to determine the short-term and long-term effects of the information form, including what those students know about the cost of postsecondary education and financial aid options, the likelihood of such students applying for financial aid, and attending an institution of higher education, and any other information the State agency determines relevant—

“(A) before the receipt of such form; and

“(B) after the receipt of such form.

“(g) Development of an initial form.—

“(1) INITIAL DEVELOPMENT.—Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the heads of relevant Federal agencies and representatives of college admissions staff, financial aid staff, adult student focus groups (including students from low-income families), consumer advocates, and adult education program directors, shall complete the development of an initial model form of postsecondary education information (referred to in this subsection as the ‘initial form’).

“(2) CONSUMER TESTING PROCESS.—The Secretary shall—

“(A) submit the initial form for consumer testing in accordance with section 483C that includes the representatives described in paragraph (1); and

“(B) not later than 60 days after the conclusion of the consumer testing under subparagraph (A), use the results of the consumer testing of the initial form in the development of a final information form described in subsection (h).

“(h) Postsecondary education information form.—

“(1) IN GENERAL.—The Secretary shall develop, using the best available evidence and research, an information form that the Secretary shall update annually and distribute to all State agencies that receive a grant under this section. The information form shall contain, at a minimum, the following information:

“(A) The information described in subparagraphs (A) through (F) of section 405A(h)(1).

“(B) A State-specific section, in which each State shall include information on State grants for postsecondary education.

“(C) Information about the—

“(i) individual and societal benefits of postsecondary education;

“(ii) importance of academic preparation;

“(iii) array of postsecondary options available to adult students in the State, including availability of programs that can help adults balance work and school; and

“(iv) the eligibility of the student for various Federal and State tax benefits and public benefits, such as assistance or benefits provided under the State temporary assistance for needy families program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) and medical assistance provided under the State Medicaid program established under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).

“(2) DISTRIBUTION OF FINAL FORM.—The Secretary shall make the final information form described in this subsection available to all States agencies that receive a grant under this section.

“(i) State report.—Each State agency receiving a grant under this section shall use results from the surveys described in subsection (f)(4), and other pertinent information, to submit an annual report to the Secretary including the following:

“(1) A description of the delivery method by which the information form was given to students, and a measurement of the reach of such delivery method.

“(2) The number of students who report being encouraged to pursue postsecondary education by the activities carried out under the grant program.

“(3) A description of the barriers to the effectiveness of the grant program.

“(4) An assessment of the cost-effectiveness of the grant program in improving access to postsecondary education.

“(5) An identification of outcomes related to postsecondary education attendance, including whether a student who received the information form reported being more likely, as compared to before having received such form—

“(A) to submit an application to an institution of higher education;

“(B) to take the SAT or ACT; and

“(C) to file a Free Application for Federal Student Aid described in section 483.

“(6) The number of students who received the information form, disaggregated by race, ethnicity, gender, status as an English language learner, status as an economically disadvantaged individual, and status as an individual with a disability, (except that such disaggregation shall not be required in a case in which the results would reveal personally identifiable information about an individual student) who—

“(A) enrolled in an institution of higher education;

“(B) applied for Federal student financial aid; and

“(C) received Federal student financial aid.

“(7) A description of the impact of the grant program on the children of students who received the information form.

“(j) Evaluation and dissemination of research on best practices.—The Secretary, acting through the Director of the Institute of Education Sciences, shall—

“(1) develop performance measures, taking into account the elements that are included in the State report described in subsection (i), for grantees to ascertain outcomes and progress related to the grant program;

“(2) evaluate the demonstration program, using both quantitative and qualitative methods, to examine the effectiveness of delivery methods used in disseminating the information form to students; and

“(3) identify best practices and disseminate research on best practices—

“(A) to States, State agencies administering a grant under this section, local educational agencies, community colleges, adult education programs, local workforce development boards, and other interested stakeholders; and

“(B) by making such research publicly available on the website of the Institute of Education Sciences.

“(k) Implementation.—

“(1) IN GENERAL.—The Secretary shall—

“(A) upon completion of the grant period, use the results of the evaluation described in subsection (j) to work with all States to use the results of the evaluation described in subsection (j) to disseminate the information form to the most appropriate agency in each State; and

“(B) in cooperation with States, institutions of higher education, organizations involved in postsecondary education access and student financial aid, employers, and workforce development boards, make special efforts to provide the information form to individuals who may qualify as independent students, as defined in section 480(d).

“(2) STATE AGENCIES.—Not later than 1 year after receiving the first information form from the Secretary under paragraph (1), each State that receives assistance under this Act shall ensure that the State agency receiving the information form under paragraph (1)(A) distributes the information form to all adult students, to the maximum extent practicable.

“(l) Authorization of appropriations.—There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2015 and each of the following 2 fiscal years.”.

subpart 3Federal supplemental education opportunity grants

SEC. 407. Authorization of appropriations.

Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended by striking “2009” and inserting “2015”.

SEC. 408. Institutional share of Federal supplemental educational opportunity grants.

Section 413C(a)(2) (20 U.S.C. 1070b–2(a)(2)) is amended by striking “75 percent” and inserting “50 percent”.

SEC. 409. Federal supplemental educational opportunity grants allocation of funds.

Section 413D (20 U.S.C. 1070b–3) is amended—

(1) by striking subsection (a) and inserting the following:

“(a) Allocation based on previous allocation.—

“(1) IN GENERAL.—From the amount appropriated pursuant to section 413A(b), for each fiscal year, the Secretary shall allocate to each eligible institution an amount equal to not less than 90 percent and not more than 110 percent of the amount that the eligible institution received under this subsection and subsection (b) (as such subsections were in effect with respect to allocations for such fiscal year) for the previous fiscal year for which that institution received funds under this section.

“(2) RATABLE REDUCTION.—If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1), then the amount of the allocation to each such institution shall be ratably reduced.

“(3) NO PREVIOUS ALLOCATION.—In the case of an institution that has not received a previous allocation under this section, the Secretary shall allocate funds under this section solely on the basis of the need determination described under subsection (c).”; and

(2) in subsection (c)—

(A) in paragraph (2), by striking “To determine the need of an institution's eligible undergraduate students,” and inserting “Until such time as the Secretary establishes a revised method to determine the need of an institution's eligible undergraduate students, in accordance with paragraph (5),”; and

(B) by adding at the end the following:

“(5) Not later than 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall establish a revised method for determining the need of an institution's eligible undergraduate students, as described in paragraph (2), which shall take into account the number of low- and moderate-income students that an eligible institution serves. The Secretary shall promulgate any regulations necessary to carry out the revised methods of determining an eligible institution's need under this subsection.”.

subpart 4American Dream Grants and LEAP program

SEC. 415. Purpose; appropriations authorized.

Section 415A (20 U.S.C. 1070c) is amended—

(1) in subsection (a), in the matter preceding paragraph (1) of subsection (a), by inserting “to award American dream grants under section 415G and” before “to make”; and

(2) in subsection (b)—

(A) in paragraph (1), by striking “subpart” and all that follows through the period at the end and inserting “subpart (except for section 415F) such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years.”; and

(B) by adding at the end the following:

“(4) AUTHORIZATION OF APPROPRIATIONS FOR AMERICAN DREAM GRANTS.—There are authorized to be appropriated to carry out section 415F such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years.”.

SEC. 416. American Dream grants.

Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is amended—

(1) by redesignating section 415F as section 415G; and

(2) by adding at the end the following:

“SEC. 415F. American dream grants.

“(a) Dreamer students.—

“(1) IN GENERAL.—In this section, the term ‘Dreamer student’ means an individual who—

“(A) was younger than 16 years of age on the date on which the individual initially entered the United States;

“(B) has provided, to the applicable State, a list of each secondary school that the student attended in the United States; and

“(C) (i) has earned a high school diploma or the recognized equivalent of such diploma from a secondary school, has obtained a high school equivalency diploma in the United States, or is scheduled to complete the requirements for such a diploma or equivalent before the next academic year begins;

“(ii) has acquired a degree from an institution of higher education or has completed not less than 2 years in a program for a baccalaureate degree or higher degree at an institution of higher education in the United States and has made satisfactory progress, as defined in section 484(c), in the program of study during such time period; or

“(iii) has served in the uniformed services, as defined in section 101 of title 10, United States Code, for not less than 4 years and, if discharged, received an honorable discharge.

“(2) HARDSHIP EXCEPTION.—The Secretary shall issue regulations that direct when a State shall waive the requirement of subparagraph (A) or (B), or both, of paragraph (1) for an individual to qualify as a Dreamer student under such paragraph, if the individual—

“(A) demonstrates compelling circumstances for the inability to satisfy the requirement of such subparagraph (A) or (B), or both; and

“(B) satisfies the requirement of paragraph (1)(C).

“(b) Grants to States.—

“(1) RESERVATION FOR ADMINISTRATION.—From the amounts appropriated to carry out this section for each fiscal year, the Secretary may reserve not more than 1 percent of such amounts to administer this section.

“(2) GRANTS AUTHORIZED TO ELIGIBLE STATES.—From the amounts appropriated to carry out this section for each fiscal year and not reserved under paragraph (1), the Secretary shall award grants, through allotments under paragraph (4), to eligible States to enable the eligible States to carry out the activities described in clauses (i) and (ii) of paragraph (3)(A).

“(3) ELIGIBLE STATE.—In this section, the term ‘eligible State’ means a State that—

“(A) increases access and affordability to higher education for students by—

“(i) offering in-State tuition for Dreamer students; or

“(ii) expanding in-State financial aid to Dreamer students; and

“(B) submits an application to the Secretary that contains an assurance that—

“(i) notwithstanding any other provision of law, the State will not discriminate in awarding student financial assistance or determining who is eligible for in-State tuition, against a Dreamer student who resides in the State, if the student otherwise qualifies for the assistance or tuition; and

“(ii) for fiscal year 2015 and each of the 4 succeeding fiscal years, the State will maintain State support for public institutions of higher education located in the State (not including support for capital projects, research and development, or tuition and fees paid by students) at not less than the level of such support for fiscal year 2013, increased by a percentage equal to the estimated percentage increase in the Consumer Price Index (as such term is defined in section 478(f)) between December 2013 and the December preceding the fiscal year for which the determination under this clause is being made.

“(4) ALLOTMENTS.—The Secretary shall allot the amount appropriated to carry out this section for each fiscal year and not reserved under paragraph (1) among the eligible States in proportion to the number of Dreamer students enrolled at least half-time in postsecondary education who reside in the State for the most recent fiscal year for which satisfactory data are available, compared to the number of such students who reside in all eligible States for such fiscal year.

“(c) Supplement not supplant.—Grant funds awarded under this section shall be used to supplement, and not supplant, non-Federal funds that would otherwise be used for activities authorized under this section.

“(d) Applicability.—The provisions of sections 415B through 415E shall not apply to the program authorized by this section.”.

subpart 5Reauthorization of appropriations for other part A programs.

SEC. 417. Reauthorization of appropriations for other part A programs.

(a) Special programs for students whose families are engaged in migrant and seasonal farmwork.—Section 418A(i) (20 U.S.C. 1070d–2(i)) is amended by striking “$75,000,000” and all that follows through the period at the end and inserting “such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years.”.

(b) Robert C. Byrd Honors Scholarship Program.—Section 419K (20 U.S.C. 1070d–41) is amended by striking “2009” and inserting “2015”.

(c) Child Care Access Means Parents in School.—Section 419N(g) (20 U.S.C. 1070e(g)) is amended by striking “2009” and inserting “2015”.

PART BFederal Family Education Loan program

SEC. 421. Simplification of income-based repayment options for federally insured student loans.

(a) Amendment replacing income-Sensitive replacement.—Section 427(a)(2)(H) (20 U.S.C. 1077(a)(2)(H)) is amended—

(1) by striking “graduated or income-sensitive repayment schedule” and inserting “graduated repayment schedule or income-based repayment schedule under section 493C”; and

(2) by striking “in accordance with the regulations of the Secretary” and inserting “in accordance with section 493C and regulations issued by the Secretary”.

(b) Effective date relating to termination of income-Sensitive repayment.—The amendments made by subsection (a) shall take effect on the date that is 1 year after the date of enactment of this Act.

SEC. 422. Improvements to military loan deferment; clarification of SCRA protections; simplification of income-based repayment options.

(a) Amendments.—Section 428 (20 U.S.C. 1078) is amended—

(1) in subsection (b)—

(A) in paragraph (1)—

(i) in subparagraph (D), by striking “may, following a default by the borrower, be subject to income contingent repayment in accordance with subsection (m)” and inserting “may, following a default by the borrower, be subject to income-based repayment in accordance with subsection (m) and section 493C(d)”;

(ii) in subparagraph (E)(i), by striking “standard, graduated” and all that follows and inserting “standard, graduated, income-based, or extended repayment schedule (as described in paragraph (9)), established by the lender in accordance with the regulations of the Secretary”; and

(iii) in subparagraph (M)—

(I) by redesignating clause (iv) as clause (v);

(II) in clause (iii), by striking “the borrower—” and all that follows through “described in subclause (I) or (II); or” and inserting “the borrower is performing eligible military service, and for the 180-day period following the demobilization date for such eligible military service;”; and

(III) by inserting after clause (iii) the following:

“(iv) not in excess of 180 days after the effective movement date listed on the military orders of a borrower's spouse if that spouse is a member of the Armed Forces who has received military orders for a permanent change of station; or”; and

(B) in paragraph (9)(A)(iii), by inserting “and an income-sensitive repayment plan shall be available only for borrowers who have selected or been required to use such a plan before the date that is 1 year after the date of enactment of the Higher Education Affordability Act” before the semicolon at the end;

(2) in subsection (d), by striking “section 207 of the Servicemembers Civil Relief Act (50 U.S.C. App. 527)” and inserting “the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.)”; and

(3) by striking subsection (m) and inserting the following:

“(m) Income-Based repayment.—

“(1) AUTHORITY OF SECRETARY TO REQUIRE.—The Secretary may require borrowers who have defaulted on loans made under this part that are assigned to the Secretary under subsection (c)(8) to repay those loans under an income-based repayment plan, under terms and conditions established by the Secretary that are the same, or similar to, the terms and conditions established under such section.

“(2) LOANS FOR WHICH INCOME-BASED REPAYMENT MAY BE REQUIRED.—A loan made under this part may be required to be repaid under this subsection if the note or other evidence of the loan has been assigned to the Secretary pursuant to subsection (c)(8).”.

(b) Rulemaking regarding termination of income contingent and income-Sensitive repayment plans.—By not later than 1 year after the date of enactment of this Act, the Secretary of Education shall promulgate a final rule ending all eligibility for income contingent and income-sensitive repayment plans for loans made under part B or D of title IV of the Higher Education Act of 1965 unless the borrowers have selected, and remained continuously enrolled in, such payment plans before the date that is 1 year after the date of enactment of this Act, in accordance with the amendments made by this Act.

(c) Effective date regarding income contingent and income-Sensitive repayment plans.—The amendments made by clauses (i) and (ii) of subparagraph (A), and subparagraph (B), of paragraph (1), and by paragraph (3), of subsection (a) shall take effect on the date that is 1 year after the date of enactment of this Act.

SEC. 423. Simplification of income-based repayment options for Federal Consolidation Loans.

(a) Amendments.—Section 428C of such Act (20 U.S.C. 1078–3) is amended—

(1) by striking subclause (V) of subsection (a)(3)(B)(i) and inserting the following:

“(V) an individual may obtain a subsequent consolidation loan under section 455(g) only—

“(aa) for the purposes of obtaining income-based repayment under section 493C, and only if the loan has been submitted to the guaranty agency for default aversion or if the loan is already in default;

“(bb) for the purposes of using the public service loan forgiveness program under section 455(m); or

“(cc) for the purpose of using the no accrual of interest for active duty service members benefit offered under section 455(o).”;

(2) in subsection (b)—

(A) by striking subparagraph (E) of paragraph (1) and inserting the following:

“(E) that the lender shall—

“(i) offer an income-based repayment schedule, established by the lender in accordance with section 493C and regulations promulgated by the Secretary, to the borrower of any consolidation loan made by the lender on or after July 1, 1994, and before July 1, 2010; and

“(ii) only in the case of any borrower who has selected, before the date that is 1 year after the date of enactment of the Higher Education Affordability Act, an income-sensitive repayment schedule, in accordance with regulations promulgated by the Secretary and as in effect on the day before the date that is 1 year before such date of enactment, continue to offer such borrower the income-sensitive repayment schedule until the borrower selects an alternative repayment schedule;”; and

(B) in paragraph (5), by inserting “(if such borrower has selected an income contingent repayment schedule before the date that is 1 year after the date of enactment of the Higher Education Affordability Act)” after “income contingent repayment under part D of this title”; and

(3) in subsection (c)—

(A) in the matter preceding clause (i) of paragraph (2)(A), by inserting “, except that an income-sensitive repayment schedule shall only be available to borrowers who have selected such schedule before the date that is 1 year after the date of enactment of the Higher Education Affordability Act” after “regulations of the Secretary”; and

(B) in paragraph (3)(B), by inserting “for borrowers who have selected income contingent repayment before the date that is 1 year after the date of enactment of the Higher Education Affordability Act” after “subsection (b)(5)”.

(b) Effective date for termination of income-Sensitive or income contingent repayment plans.—The amendments made by subsection (a) shall take effect on the date that is 1 year after the date of enactment of this Act.

SEC. 424. Reasonable collection costs and rehabilitation payments.

Section 428F (20 U.S.C. 1078–6) is amended—

(1) in subsection (a)—

(A) by striking item (aa) of paragraph (1)(D)(i)(II) and inserting the following:

“(aa) charge to the borrower an amount that is reasonable and that does not exceed the bona fide collection costs associated with such loan that are actually incurred in collecting the debt against the borrower, which amount shall not exceed 16 percent of the outstanding principal and interest at the time of the loan sale; and”; and

(B) by striking paragraph (5); and

(2) by adding at the end the following:

“(d) Determination of reasonable and affordable.—

“(1) IN GENERAL.—For purposes of this section, a monthly payment shall be reasonable and affordable based upon the borrower's total financial circumstances if the payment is the equivalent of a monthly payment amount determined for a borrower under the income-based repayment plan under section 493C, except that in no cases shall the monthly payment under this section be less than $5.

“(2) APPEALS PROCESS.—The Secretary shall establish a clear and accessible process for appealing the monthly payment amount determined as reasonable and affordable under this section in any case where a borrower believes that the borrower's monthly payment amount is incorrect, or that the amount calculated for the borrower under paragraph (1) is based on incorrect information or is unreasonable based on the borrower's total circumstances.”.

SEC. 425. FFEL loan forgiveness for certain American Indian educators.

Section 428J(c) (20 U.S.C. 1078–10(c)) is amended by adding at the end the following:

“(4) AMERICAN INDIAN TEACHERS IN LOCAL EDUCATIONAL AGENCIES WITH A HIGH PERCENTAGE OF AMERICAN INDIAN STUDENTS.—Notwithstanding the amount specified in paragraph (1) and the requirements under subparagraphs (A) and (B) of subsection (b)(1), the aggregate amount that the Secretary shall repay under this section shall be not more than $17,500 in the case of a borrower who—

“(A) has been employed as a full-time teacher for 5 consecutive complete school years in a local educational agency described in section 7112(b) of the Elementary and Secondary Education Act of 1965 or in a school operated or funded by the Bureau of Indian Education; and

“(B) is a member of an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).”.

SEC. 426. Reauthorization of appropriations for certain loan forgiveness programs.

(a) Loan forgiveness for service in areas of national needs.—Section 428K(h) (20 U.S.C. 1078–11(h)) is amended by striking “2009” and inserting “2015”.

(b) Loan repayment for civil legal assistance attorneys.—Section 428L(i) (20 U.S.C. 1078–11(i)) is amended by striking “$10,000,000” and all that follows through the period at the end and inserting “such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years.”.

SEC. 427. Improvements to credit reporting for Federal student loans.

Section 430A (20 U.S.C. 1080A) is amended—

(1) by redesignating subsections (d) through (f) as subsections (e) through (g), respectively; and

(2) by inserting after subsection (c) the following:

“(d) Treatment of rehabilitation and income-Based repayment and income contingent repayment plans.—

“(1) NECESSARY STEPS.—The Secretary and each guaranty agency, eligible lender, and subsequent holder of a loan shall take all necessary steps to ensure that information furnished under this section about a loan covered by Federal loan insurance pursuant to this part or covered by a guaranty agreement pursuant to section 428, or a loan made under part D, is reported in a manner that reflects the unique attributes of a Federal student loan under this title. The necessary steps required shall include—

“(A) furnishing consumer reporting agencies with information about a loan's delinquency, default, post-default performance, rehabilitation, and post-rehabilitation performance, as applicable, in a manner that ensures the entire loan history is reported as a single open account for the duration of the borrower's financial obligation;

“(B) reporting a payment as paid as agreed if the payment made—

“(i) satisfies the terms of the borrower's income-based repayment plan under section 493C or any income contingent repayment plan authorized under section 455(e); or

“(ii) is a reasonable and affordable payment made by a borrower subject to section 428F that meet the requirements of such section; and

“(C) for purposes of payments under an income-based repayment plan under section 493C or any income contingent repayment plan authorized under section 455(e), any additional steps that the Secretary determines necessary, through rulemaking or published guidance, based on the results of the study performed under section 1018 of the Higher Education Affordability Act.

“(2) APPLICATION TO AGENTS AND CONTRACTORS.—The requirements of paragraph (1) shall apply to any person furnishing information about loan performance on behalf of the Secretary, a guaranty agency, eligible lender, or subsequent holder of a loan, including third party student loan servicers or collectors.”.

SEC. 428. Reduced duplication in student loan servicing.

Section 432(l)(4) (20 U.S.C. 1082(l)(4)) is amended by striking “simplifying and standardizing” and inserting “simplifying, standardizing, and reducing duplication in”.

SEC. 429. Improved determination of cohort default rates; publication of default prevention plan.

Section 435 (20 U.S.C. 1085) is amended—

(1) in subsection (a)—

(A) in paragraph (2), by adding at the end the following:

“(E) In any case where the Secretary has determined that the institution has engaged in default manipulation, the Secretary—

“(i) shall recalculate the cohort default rate for the institution under this section using corrected data and information, for all fiscal years for which the default manipulation has occurred; and

“(ii) using the recalculated cohort default rate, shall redetermine under subsection (a)(2) whether the institution is ineligible to participate in a program under this title.”; and

(B) in paragraph (7)(A), by adding at the end the following:

“(iii) SUMMARY OF DEFAULT PREVENTION PLAN.—Upon receiving technical assistance from the Secretary under clause (ii), each institution subject to this subparagraph shall—

“(I) prepare a summary of the plan described under clause (i) that is directed to a student audience;

“(II) make the summary publicly available; and

“(III) provide the summary to students at the institution.”; and

(2) in subsection (m)(3), by striking “through the use of” and all that follows through the period at the end and inserting “through default manipulation.”.

SEC. 430. Improved disability determinations.

(a) In general.—Section 437(a) (20 U.S.C. 1087(a)) is amended—

(1) in the matter preceding subparagraph (A) of paragraph (1), by striking “Notwithstanding any other provision of this subsection,” and inserting “Except as provided in paragraph (4),”;

(2) by striking paragraph (2) and inserting the following:

“(2) SERVICE-CONNECTED DISABILITY DETERMINATIONS.—

“(A) IN GENERAL.—A borrower who has been determined by the Secretary of Veterans Affairs or Secretary of Defense to be unemployable due to a service-connected condition and who provides documentation of such determination to the Secretary of Education, shall be considered permanently and totally disabled for the purpose of discharging such borrower's loans under this subsection, and such borrower shall not be required to present additional documentation for purposes of this subsection.

“(B) DETERMINATION BY THE SECRETARY OF VETERANS AFFAIRS OR THE SECRETARY OF DEFENSE.—

“(i) IN GENERAL.—A borrower who has been assigned a disability rating of 100 percent (or a combination of ratings equaling 100 percent or more) by the Secretary of Veterans Affairs or the Secretary of Defense for a service-connected disability (as defined in section 101 of title 38, United States Code) and who provides documentation of such rating to the Secretary of Education, shall be considered permanently and totally disabled for the purpose of discharging such borrower's loans under this subsection, and such borrower shall not be required to present any additional documentation for purposes of this subsection.

“(ii) RATING OF DISABILITY.—A disability rating described in clause (i), or similar determination of unemployability by the Secretary of Veterans Affairs or the Secretary of Defense, transmitted in accordance with clause (iii) shall be considered sufficient documentation for purposes of this subsection.

“(iii) TRANSFER OF INFORMATION.—Not later than 180 days after the date of enactment of the Higher Education Affordability Act, the Secretary, in coordination with the Secretary of Defense and the Secretary of Veteran Affairs, shall create a system through which the applicable disability ratings (or alternative means of transmitting a determination of unemployability) shall be automatically transmitted from the Department of Defense or the Department of Veterans Affairs, as the case may be, to the Department of Education and shall satisfy the documentation requirement described in this subparagraph. The Secretary shall have the authority to enter into any agreements necessary to implement the requirements of this subparagraph.

“(3) DISABILITY DETERMINATIONS BY THE SOCIAL SECURITY ADMINISTRATION.—A borrower who has been determined by the Social Security Administration to be disabled with medical improvement not expected and who provides documentation of such determination to the Secretary of Education, shall be considered permanently and totally disabled for the purpose of discharging such borrower's loans under this subsection, and such borrower shall not be required to present additional documentation for purposes of this subsection.

“(4) REINSTATEMENT PROVISIONS.—A borrower of a loan that is discharged under paragraph (2) or (3) shall not be subject to the reinstatement provisions described in paragraph (1).

“(5) DATA COLLECTION AND REPORT TO CONGRESS.—

“(A) DATA COLLECTION.—The Secretary shall annually collect data about borrowers applying for, and borrowers receiving, loan discharges under this subsection, which shall include the following:

“(i) Data regarding—

“(I) the number of applications received under this subsection;

“(II) the number of such applications that were approved; and

“(III) the number of loan discharges that were completed under this subsection.

“(ii) A summary of the reasons why the Secretary reinstated the obligation of, and resumed collection on, loans discharged under this subsection.

“(iii) The data described in subclauses (I) through (III) of clause (i), and clause (ii), for each of the following:

“(I) Borrowers applying for, and borrowers receiving, loan discharges under paragraph (2)(A).

“(II) Borrowers applying for, and borrowers receiving, loan discharges under paragraph (2)(B).

“(III) Borrowers applying for, and borrowers receiving, loan discharges under paragraph (3).

“(iv) Any other information the Secretary determines is necessary.

“(B) REPORT.—The Secretary shall annually report to Congress, and make publicly available, the information described in subparagraph (A).”.

(b) Reports.—

(1) PLAN.—Not later than 90 days after the date of the enactment of this Act, the Secretary of Education shall submit to the appropriate committees of Congress a report that includes a plan to carry out the activities described under section 437(a)(2)(B)(iii) of the Higher Education Act of 1965 (20 U.S.C. 1087(a)(2)(B)(iii)), as amended by this section.

(2) FOLLOW-UP REPORT.—If the Secretary of Education has not carried out the activities described under section 437(a)(2)(B)(iii) of the Higher Education Act of 1965, as amended by this section, by the date that is 1 year after the date of enactment of this Act, the Secretary of Education shall submit to the appropriate committees of Congress, by such date, a report that includes an explanation of why those activities have not been implemented.

SEC. 431. Treatment of borrowers falsely certified as eligible to borrow due to identity theft.

Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended by striking “of a crime”.

PART CFederal work-Study programs

SEC. 441. Authorization of appropriations.

Section 441(b) (42 U.S.C. 2751(b)) is amended by striking “2009” and inserting “2015”.

SEC. 442. Federal work study allocation of funds.

Section 442 (42 U.S.C. 2752) is amended—

(1) by striking subsection (a) and inserting the following:

“(a) Allocation based on previous allocation.—

“(1) IN GENERAL.—From the amount appropriated pursuant to section 441(b), for each fiscal year, the Secretary shall allocate to each eligible institution an amount equal to not less than 90 percent and not more than 110 percent of the amount that the eligible institution received under this subsection and subsection (b) (as such subsections were in effect with respect to allocations for such fiscal year) for the previous fiscal year for which that institution received funds under this section.

“(2) RATABLE REDUCTION.—If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1), then the amount of the allocation to each such institution shall be ratably reduced.

“(3) NO PREVIOUS ALLOCATION.—In the case of an institution that has not received a previous allocation under this section, the Secretary shall allocate funds under this section solely on the basis of the self-help need determination described under subsection (c).”; and

(2) in subsection (c)—

(A) in paragraph (2), by striking “To determine the self-help need of an institution's eligible undergraduate students,” and inserting “Until such time as the Secretary establishes a revised method to determine the self-help need of an institution's eligible undergraduate students, in accordance with paragraph (5),”;

(B) in paragraph (3), by striking “To determine the self-help need of an institution's eligible graduate and professional students,” and inserting “Until such time as the Secretary establishes a revised method to determine the self-help need of an institution's eligible graduate and professional students, in accordance with paragraph (5),”; and

(C) by adding at the end the following:

“(5) Not later than 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall establish revised methods for determining the self-help need of an institution's eligible undergraduate students, as described in paragraph (2), and eligible graduate and professional students, as described in paragraph (3), which shall take into account the number of low- and moderate-income students that an eligible institution serves. The Secretary shall promulgate any regulations necessary to carry out the revised methods of determining an eligible institution's self-help need under this subsection.”.

SEC. 443. Institutional share of Federal work study funds.

Section 443(b)(5) (42 U.S.C. 2753(b)(5)) is amended by striking “75 percent” and inserting “50 percent” each place the term appears.

SEC. 444. Additional funds to conduct community service work-study programs.

Section 447(b)(4) (42 U.S.C. 2756a(b)(4)) is amended by striking “2009” and inserting “2015”.

SEC. 445. Work colleges.

Section 448(f) (42 U.S.C. 2756b(f)) is amended by striking “2009” and inserting “2015”.

PART DFederal Direct Loan program

SEC. 451. Elimination of origination fees and other amendments to terms and conditions of loans.

(a) Amendments.—Section 455 (20 U.S.C. 1087e) is amended—

(1) by repealing subsection (c);

(2) in subsection (d)—

(A) in paragraph (1)(D), by inserting “or to any borrower who has not selected the income contingent repayment plan before the date that is 1 year after the date of enactment of the Higher Education Affordability Act” before the semicolon at the end; and

(B) in paragraph (5)—

(i) by striking subparagraph (A) and inserting the following:

“(A) pay collection costs in an amount that is reasonable and that does not exceed the bona fide collection costs associated with such student loan that are actually incurred in collecting the debt against the borrower; and”; and

(ii) in subparagraph (B), by striking “income contingent repayment plan” and inserting “income-based repayment plan, as provided in 493C”;

(3) in subsection (e)—

(A) in paragraph (1), by striking “The Secretary may” and inserting “With respect to borrowers who have selected, or been required to use, an income contingent repayment plan before the date that is 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary may”;

(B) in paragraph (3), by inserting “before the date that is 1 year after the date of enactment of the Higher Education Affordability Act” after “income contingent repayment”;

(C) by striking paragraph (6); and

(D) by redesignating paragraph (7) as paragraph (6);

(4) in subsection (f)(2)—

(A) in subparagraph (C), by striking “the borrower—” and all that follows through “described in clause (i) or (ii); or” and inserting “the borrower is performing eligible military service, and for the 180-day period following the demobilization date for such eligible military service;”;

(B) by redesignating subparagraph (D) as subparagraph (E); and

(C) by inserting after subparagraph (C) the following:

“(D) any period not in excess of 180 days after the effective movement date listed on the military orders of a borrower's spouse if that spouse is a member of the Armed Forces who has received military orders for a permanent change of station; or”;

(5) by striking subsection (h) and inserting the following:

“(h) Borrower claims and defenses.—

“(1) IN GENERAL.—Notwithstanding any other provision of State or Federal law, a borrower, regardless of the account status of the borrower's loan, may assert as an affirmative claim or defense against repayment, any act or omission of an institution of higher education attended by the borrower that would give rise to a cause of action against the institution under this Act, other Federal law, or applicable State law, except that in no event may a borrower recover from the Secretary, in any action arising from or relating to a loan made under this part, an amount in excess of the amount such borrower has repaid on such loan.

“(2) EXERCISE BY SECRETARY.—The Secretary may elect to carry out the authority under this subsection on behalf of a group of multiple borrowers if the Secretary determines that the group has been harmed by the same act, omission, or practice.”;

(6) in subsection (m)—

(A) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and

(B) by inserting after paragraph (2) the following:

“(3) LUMP SUM PAYMENT.—For purposes of this subsection, if a borrower has enrolled in a repayment plan described in paragraph (1)(A) and makes a lump sum payment through a student loan repayment program under section 2171 of title 10, United States Code, or a similarly structured eligible repayment program (as determined by the Secretary), the Secretary will treat the borrower as having made a number of qualifying payments equal to the lesser of—

“(A) the number, rounded to the nearest whole number, equal to the quotient of—

“(i) such lump sum payment; divided by

“(ii) the monthly payment amount that the borrower would have otherwise made under the repayment plan described in paragraph (1)(A) selected by the borrower; or

“(B) 12 payments.”; and

(7) in subsection (o)—

(A) by striking paragraph (1) and inserting the following:

“(1) IN GENERAL.—Notwithstanding any other provision of this part and in accordance with paragraphs (2) and (4), the Secretary shall not charge interest on a loan made to a borrower under this part for which the first disbursement is made on or after October 1, 2008, during the period in which a borrower who is performing eligible military service is serving in an area of hostilities in which service qualifies for special pay under section 310 of title 37, United States Code.”;

(B) by striking paragraph (3) and inserting the following:

“(3) IMPLEMENTATION OF ACCRUAL OF INTEREST PROVISION FOR MEMBERS OF THE ARMED FORCES.—

“(A) IN GENERAL.—The Secretary of Education shall enter into any necessary agreements, including agreements with the Commissioner of the Internal Revenue Service and the Secretary of Defense—

“(i) to ensure that interest does not accrue for eligible military borrowers, in accordance with this subsection; and

“(ii) to obtain or provide any information necessary to implement clause (i) without requiring a request from the borrower.

“(B) REPORTS.—

“(i) PLAN.—Not later than 90 days after the date of enactment of the Higher Education Affordability Act, the Secretary shall submit to the appropriate committees of Congress a report that includes a plan to implement the accrual of interest provision described in subparagraph (A).

“(ii) FOLLOW-UP REPORT.—If the Secretary has not implemented the accrual of interest provision described in subparagraph (A) by the date that is 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall submit, by such date, a report that includes an explanation of why such provision has not been implemented.”; and

(C) in paragraph (4), by striking “who qualifies as an eligible military borrower under this subsection” and inserting “described in paragraph (1)”.

(b) Effective dates.—

(1) REPEAL OF LOAN FEES.—The amendment made by subsection (a)(1) shall apply with respect to loans made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) for which the first disbursement of principal is made, or, in the case of a Federal Direct Consolidation Loan made under such part, the application is received, on or after July 1, 2014.

(2) TERMINATING INCOME CONTINGENT REPAYMENT.—The amendments made by subparagraphs (A) and (B)(ii) of paragraph (2), and paragraph (3), of subsection (a) shall take effect on the date that is 1 year after the date of enactment of this Act.

SEC. 452. Improved student loan servicing and debt collection practices.

(a) Amendments.—Section 456 (20 U.S.C. 1087f) is amended by adding at the end the following:

“(c) Limitation on contracts for the servicing of loans.—

“(1) IN GENERAL.—A contract entered into under this section for the servicing of loans made or purchased under this part shall include—

“(A) a provision that prohibits the servicer from marketing to a borrower of a loan which the servicer services, a financial product or service while the borrower is enrolled in an institution of higher education;

“(B) a provision that, after the borrower is no longer enrolled in an institution of higher education, the servicer may only market a financial product or service to the borrower through an opt-in rather than an opt-out system; and

“(C) a provision that, to the extent practicable, the servicer shall clearly disclose in any written material or correspondence sent or made available to the borrower (including correspondence and disclosures on the website of the servicer) that the material or correspondence is in relation to a Department of Education loan.

“(2) NO PREDISPUTE ARBITRATION CLAUSES.—A contract entered into under this section for the servicing of loans made or purchased under this part shall include a provision that any rights and remedies available to borrowers against the servicer may not be waived by any agreement, policy, or form, including by a predispute arbitration agreement.

“(d) Study of direct loan debt collection.—

“(1) IN GENERAL.—The Secretary shall conduct a study to determine whether it is efficient and effective to contract with private entities under this section for the collection of loans made or purchased under this part that are in default.

“(2) EVALUATION METHOD.—For purposes of the study described in paragraph (1), the Secretary shall evaluate efficiency and effectiveness in terms of—

“(A) the cost incurred by the Federal Government for the collections of defaulted loans under this part through contracts under this section, and such cost in comparison with the costs of other methods by which debt owed to the Federal Government are collected or recovered, including the collection of any unpaid Federal income taxes;

“(B) the consumer protections provided to the borrower who has defaulted on a loan under this part through the collections process;

“(C) the impact of the collections process for defaulted loans under this part on the integrity of the loan program carried out under this part; and

“(D) borrower experience, as determined through borrower surveys.

“(3) RECOVERY COSTS.—

“(A) IN GENERAL.—As part of the study conducted under this subsection, the Secretary shall calculate the average recovery cost, per dollar recovered, through the collection of defaulted loans made under this part, in the aggregate for all borrowers of defaulted loans and disaggregated for the following categories of borrowers of defaulted loans:

“(i) Veterans with a service-connected disability (as defined in section 101 of title 38, United States Code).

“(ii) Individuals who are entitled to benefits under section 223 of the Social Security Act (42 U.S.C. 423).

“(iii) Individuals who are allowed an earned income tax credit pursuant to section 32 of the Internal Revenue Code of 1986.

“(iv) Recipients of assistance under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).

“(B) CONSULTATION.—The Secretary shall consult with the Secretary of the Treasury, the Administrator of the Social Security Administration, the Secretary of Veterans Affairs, and the Secretary of Agriculture, as appropriate, in order to identify individuals in the categories described in clauses (i) through (iv) of subparagraph (A) and to calculate the average recovery cost per dollar recovered for each category of borrowers.

“(4) ADDITIONAL INFORMATION REGARDING COSTS.—The Secretary may directly carry out collection activities for a subset of defaulted loans under this part, instead of awarding contracts under subsection (b)(2) for such activities, if the Secretary determines it would better inform the study required under paragraph (1).

“(5) REPORT.—By not later than the date that is 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall prepare and submit to the authorizing committees a report that includes the findings of the study conducted under paragraph (1).

“(e) Certification necessary for continued private debt collections.—

“(1) CERTIFICATION.—Not later than 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall submit to the authorizing committees, and make available to the public—

“(A) a certification that the Secretary has determined, based on the results of the study conducted under subsection (d), that—

“(i) the use of private entities for the collection of defaulted loans made or purchased under this part is necessary to maintain the integrity of the loan program carried out under this part;

“(ii) the collection costs paid to such private entities under the contracts authorized by this section, in the aggregate and for each category of borrowers described in subsection (d)(3)(A), are reasonable; and

“(iii) expending funds for such collection costs is in the best financial interest of the United States; or

“(B) a notification that the Secretary will not issue the certification described in subparagraph (A).

“(2) PROHIBITION OF CONTRACTS FOR PRIVATE DEBT COLLECTIONS WITHOUT CERTIFICATION.—Notwithstanding subsection (b)(2), beginning on the date that is 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall not enter into any contract with a private entity under this section for the collection of defaulted loans made or purchased under this part if the Secretary did not issue the certification described in paragraph (1)(A) by such date.

“(f) Termination of contracts.—

“(1) TERMINATION.—The Secretary shall terminate any contract with an entity for the collection of defaulted loans made or purchased under this part if the entity, an affiliate of that entity, or a service provider of the entity is found to have committed a violation of—

“(A) the prohibition on unfair, deceptive, or abusive acts or practices under section 1031 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5531), including the regulations promulgated under such section, relating to the services performed pursuant to a contract under this section; or

“(B) the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), including the regulations promulgated under such Act, relating to the services performed pursuant to a contract under this section.

“(2) PROHIBITION ON ADDITIONAL CONTRACTS.—If the Secretary terminates a contract with an entity under paragraph (1), such entity—

“(A) shall not be eligible to participate in the next award cycle for contracts relating to the collection of defaulted loans made or purchased under this part that follows the date of termination of the contract; and

“(B) shall not be eligible to receive any new contract relating to the collection of such defaulted loans during the 2-year period beginning on the date of termination.

“(3) IDENTIFICATION OF OTHER VIOLATIONS.—

“(A) IN GENERAL.—In any case where the Secretary obtains evidence that any person or entity has engaged in debt collection practices described in paragraph (1) that may constitute a violation of Federal law, the Secretary shall transmit such evidence to the Director of the Bureau of Consumer Financial Protection for further proceedings under the appropriate law.

“(B) RULE OF CONSTRUCTION.—Nothing in this paragraph shall be construed to affect any other authority provided to the Secretary to disclose information to a Federal agency.”.

(b) Study and report on specialty servicing contracts.—

(1) IN GENERAL.—The Secretary of Education, in consultation with the Director of the Bureau of Consumer Financial Protection and the Secretary of the Treasury, shall—

(A) conduct a study as to whether specialty servicing contracts in the Federal Direct Loan Program under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) could better serve varying segments of student loan borrowers, and, in particular, the unique needs of borrowers in delinquency or experiencing partial financial hardship and the allocation of servicer resources to assist such borrower segment; and

(B) not later than 180 days after the date of enactment of this Act, submit a report to the Committee on Health, Education, Labor, and Pensions and the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Education and the Workforce and the Committee on Financial Services of the House of Representatives, on the study described in subparagraph (A).

(2) SPECIALTY SERVICING CONTRACT.—In this subsection, the term “specialty servicing contract” means a contract—

(A) entered into pursuant to section 456 of the Higher Education Act of 1965 (20 U.S.C. 1087f) for the servicing of loans made or purchased under part D of title IV of such Act (20 U.S.C. 1087a et seq.) that provides for servicing loans for a distinct and specified subset of borrowers; and

(B) that may be compensated at a greater level for such services, as determined appropriate by the Secretary of Education.

(c) Report on servicer compensation.—

(1) IN GENERAL.—The Secretary of Education, in consultation with the Director of the Bureau of Consumer Financial Protection and the Secretary of the Treasury, shall conduct a report—

(A) on the compensation and incentive structure for servicers of loans made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and whether servicers adequately encourage repayment, as well as the use of alternative repayment options and discharge where appropriate; and

(B) that includes an analysis of the criteria utilized by the Department of Education in determining performance-based allocation of account volume in entering into contracts for servicing of loans made or purchased under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.), and the effectiveness of those metrics in promoting repayment.

(2) COMMENTS FROM THE PUBLIC.—In conducting the report under paragraph (1), the Secretary of Education, in consultation with the Director of the Bureau of Consumer Financial Protection and the Secretary of the Treasury, shall seek and take comments from the public.

(3) PROCEDURES TO IMPLEMENT RECOMMENDATIONS.—If the report conducted under paragraph (1) includes recommendations on measures to improve the incentive structure, the report shall also include the procedures to implement such recommendations.

(4) PUBLICATION.—The report conducted under paragraph (1) shall be published not later than 180 days after the date of enactment of this Act.

(d) Report and plan on FFEL servicing.—

(1) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, the Secretary of Education, in consultation with the Director of the Bureau of Consumer Financial Protection and the Secretary of the Treasury, shall publish a report that identifies whether the public has adequate visibility into the market of loan servicing under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.) to adequately assess the performance of such servicing under such part, including—

(A) the utilization of alternative repayment plans;

(B) the distribution of delinquent and defaulted loan balances; and

(C) loan performance by institution type.

(2) PLAN.—If the Secretary of Education, in consultation with the Director of the Bureau of Consumer Financial Protection and the Secretary of the Treasury, determines that the public does not have enough visibility into the market of loan servicing, as described in paragraph (1), the Secretary of Education, in consultation with the Director of the Bureau of Consumer Financial Protection and the Secretary of the Treasury, shall establish a plan to disclose such information necessary to provide for such visibility.

(e) Report on servicing challenges.—The Secretary of Education shall periodically issue a report, at times determined appropriate by the Secretary, about the challenges borrowers face in the servicing of their student loans, impediments to the efficient and effective servicing of loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), and any changes, including protections for consumers, that should be considered to improve postsecondary education loan servicing for all borrowers, servicers, taxpayers, and the Department of Education.

SEC. 453. Funds for administrative expenses.

Section 458(a) (20 U.S.C. 1087h(a)) is amended—

(1) in paragraph (3)—

(A) in the paragraph heading, by striking “2007 through 2014” and inserting “2015 through 2020”; and

(B) by striking “2007 through 2014” and inserting “2015 through 2020”;

(2) in paragraph (4), by striking “2007 through 2014” and inserting “2015 through 2020”; and

(3) in paragraph (5), by striking “paragraph (3)” and inserting “paragraph (4)”.

SEC. 454. Federal Direct Loan forgiveness for certain American Indian educators.

Section 460(c) (20 U.S.C. 1087j(c)) is amended by adding at the end the following:

“(4) AMERICAN INDIAN TEACHERS IN LOCAL EDUCATIONAL AGENCIES WITH A HIGH PERCENTAGE OF AMERICAN INDIAN STUDENTS.—Notwithstanding the amount specified in paragraph (1) and the requirements under subparagraphs (A) and (B) of subsection (b)(1), the aggregate amount that the Secretary shall cancel under this section shall be not more than $17,500 in the case of a borrower who—

“(A) has been employed as a full-time teacher for 5 consecutive complete school years in a local educational agency described in section 7112(b) of the Elementary and Secondary Education Act of 1965 or in a school operated or funded by the Bureau of Indian Education; and

“(B) is a member of an Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)).”.

PART EFederal Perkins Loans

SEC. 461. Appropriations authorized.

Section 461(b) (20 U.S.C. 1087aa) is amended—

(1) in paragraph (1), by striking “$300,000,000 ” and all that follows through the period at the end and by inserting “such sums as may be necessary for fiscal year 2015 and each of the five succeeding fiscal years.”; and

(2) in paragraph (2), by striking “2015” each place the term appears and inserting “2021”.

SEC. 462. Perkins allocation of funds.

Section 462 (20 U.S.C. 1087bb) is amended—

(1) by striking subsection (a) and inserting the following:

“(a) Allocation based on previous allocation.—

“(1) IN GENERAL.—From the amount appropriated pursuant to section 461(b), for each fiscal year, the Secretary shall allocate to each eligible institution an amount equal to not less than 90 percent and not more than 110 percent of the amount that the eligible institution received under this subsection and subsection (b) (as such subsections were in effect with respect to allocations for such fiscal year) for the previous fiscal year for which that institution received funds under this section.

“(2) RATABLE REDUCTION.—If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1), then the amount of the allocation to each such institution shall be ratably reduced.

“(3) NO PREVIOUS ALLOCATION.—In the case of an institution that has not received a previous allocation under this section, the Secretary shall allocate funds under this section solely on the basis of the self-help need determination described under subsection (c).”; and

(2) in subsection (c)—

(A) in paragraph (2), by striking “To determine the self-help need of an institution's eligible undergraduate students,” and inserting “Until such time as the Secretary establishes a revised method to determine the self-help need of an institution's eligible undergraduate students, in accordance with paragraph (5),”;

(B) in paragraph (3), by striking “To determine the self-help need of an institution's eligible graduate and professional students,” and inserting “Until such time as the Secretary establishes a revised method to determine the self-help need of an institution's eligible graduate and professional students, in accordance with paragraph (5),”; and

(C) by adding at the end the following:

“(5) Not later than 1 year after the date of enactment of the Higher Education Affordability Act, the Secretary shall establish revised methods for determining the self-help need of an institution's eligible undergraduate students, as described in paragraph (2), and eligible graduate and professional students, as described in paragraph (3), which shall take into account the number of low- and moderate-income students that an eligible institution serves. The Secretary shall promulgate any regulations necessary to carry out the revised methods of determining an eligible institution's self-help need under this subsection.”.

SEC. 463. Institutional contributions for Perkins.

Section 463(a)(2)(B) (20 U.S.C. 1087cc(a)(2)(B)) is amended by striking “one-third of the Federal capital contributions” and inserting “50 percent of the Federal capital contributions”.

SEC. 464. Simplification of military deferment eligibility.

Section 464(c)(2)(A) (20 U.S.C. 1087dd(c)(2)(A)) is amended—

(1) by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively;

(2) in clause (iii), by striking “the borrower—” and all that follows through “described in subclause (I) or (II);” and inserting “during which the borrower is performing eligible military service, and for the 180-day period following the demobilization date for such eligible military service;”; and

(3) by inserting after clause (iii) the following:

    “(iv) not in excess of 180 days after the effective movement date listed on the military orders of a borrower's spouse if that spouse is a member of the Armed Forces who has received military orders for a permanent change of station; or”.

SEC. 465. Forgiveness of loans for eligible military service.

Section 465(a)(2)(D) (20 U.S.C. 1087ee(a)(2)(D)) is amended by striking “qualifies for special pay under section 310 of title 37, United States Code, as an area of hostilities” and inserting “is eligible military service”.

SEC. 466. Distribution of assets from student loan funds.

Section 466(b) (20 U.S.C. 1087ff(b)) is amended by striking “October 1, 2012” and inserting “October 1, 2021”.

PART FNeed analysis

SEC. 471. Increased income protection allowance for dependent students.

(a) Amendment.—Section 475(g)(2)(D) (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as follows:

“(D) an income protection allowance (or a successor amount prescribed by the Secretary under section 478) of $8,451 for academic year 2015–2016;”.

(b) Effective date.—The amendment made by subsection (a) shall take effect on July 1, 2015.

SEC. 472. Increased income protection allowance for independent students without dependents other than a spouse.

(a) Amendment.—Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read as follows:

“(iv) an income protection allowance (or a successor amount prescribed by the Secretary under section 478)—

“(I) for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2), of $13,135 for academic year 2015–2016; and

“(II) for married students where 1 is enrolled pursuant to subsection (a)(2), of $21,060 for academic year 2015–2016;”.

(b) Effective date.—The amendment made by subsection (a) shall take effect on July 1, 2015.

SEC. 473. Increased income protection allowance for independent students with dependents other than a spouse.

(a) Amendment.—Section 477(b)(4) of the Higher Education Act of 1965 (20 U.S.C. 1087qq(b)(4)) is amended to read as follows:

“(4) INCOME PROTECTION ALLOWANCE.—The income protection allowance is determined by the following table (or a successor table prescribed by the Secretary under section 478), for academic year 2015–2016:

Income Protection Allowance
Family Size Number in College
(including student) 1 2 3 4 5 For each additional subtract:
2 $33,277 $27,580 $4,250
3 41,431 35,761 $30,078
4 51,151 45,481 39,825 $34,114
5 60,358 54,661 49,005 43,321 $37,665
6 70,591 64,908 59,265 53,554 47,898
For each
additional
add: 6,000 ”.

(b) Effective date.—The amendment made by this section shall take effect on July 1, 2015.

SEC. 474. Updated tables and amounts for income protection allowance.

(a) Amendments.—Section 478(b) of the Higher Education Act of 1965 (20 U.S.C. 1087rr(b)) is amended—

(1) in paragraph (1), by striking subparagraphs (A) and (B) and inserting the following:

“(A) IN GENERAL.—For each academic year after academic year 2015–2016, the Secretary shall publish in the Federal Register a revised table of income protection allowances for the purpose of sections 475(c)(4) and 477(b)(4), subject to subparagraphs (B) and (C).

“(B) TABLE FOR INDEPENDENT STUDENTS.—For each academic year after academic year 2015–2016, the Secretary shall develop the revised table of income protection allowances by increasing each of the dollar amounts contained in the table of income protection allowances under section 477(b)(4)(D) by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2014 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.”; and

(2) in paragraph (2), by striking “shall be developed” and all that follows through the period at the end and inserting “shall be developed for each academic year after academic year 2015–2016, by increasing each of the dollar amounts contained in such section for academic year 2015–2016 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 2014 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.”.

(b) Effective date.—The amendments made by subsection (a) shall take effect on July 1, 2015.

SEC. 475. Prior prior year; definition of independent student.

Section 480 (20 U.S.C. 1087) is amended—

(1) by striking subparagraph (B) of subsection (a)(1) and inserting the following:

“(B) Notwithstanding section 478(a) and beginning not later than 180 days after the date of enactment of the Higher Education Affordability Act, the Secretary shall provide for the use of data from the second preceding tax year when and to the extent necessary to carry out the simplification of applications (including simplification for a subset of applications) used for the estimation and determination of financial aid eligibility. Such simplification shall include the sharing of data between the Internal Revenue Service and the Department, pursuant to the consent of the taxpayer.”;

(2) in subsection (d)—

(A) in paragraph (1)(H)—

(i) in the matter preceding clause (i), by striking “during the school year in which the application is submitted as either an unaccompanied youth” and inserting “as either an unaccompanied youth age 23 or younger who is”;

(ii) in clause (i), by inserting “, or a designee of the liaison” after “Act”; and

(iii) in clause (ii), by striking “a program funded under the Runaway and Homeless Youth Act” and inserting “an emergency or transitional shelter, street outreach program, homeless youth drop-in center, or other program serving homeless youth,”; and

(B) by adding at the end the following:

“(3) SIMPLIFYING THE DETERMINATION PROCESS FOR UNACCOMPANIED YOUTH.—

“(A) VERIFICATION.—A financial aid administrator is not required to verify homelessness determinations made by the individuals authorized to make such determinations under clause (i), (ii), or (iii) of paragraph (1)(H) in the absence of conflicting information. A documented phone call with, or a written statement from, one of the authorized individuals is sufficient verification when needed.

“(B) DETERMINATION OF INDEPENDENCE.—A financial aid administrator shall conduct the verification under paragraph (1)(H) if a student does not have, and cannot get, documentation from any of the individuals authorized to make such determinations under clause (i), (ii), or (iii) of paragraph (1)(H). The financial aid administrator shall make the determination of independence based on the determination of a student as an unaccompanied youth who is a homeless child or youth (as such terms are defined in section 725 of the McKinney-Vento Homeless Assistance Act), or as unaccompanied, at risk of homelessness, and self-supporting, which—

“(i) shall be distinct from a determination of independence described under paragraph (1)(I); and

“(ii) may be based on a documented interview with the student if there is no written documentation available.

“(C) DURATION OF DETERMINATION.—A student shall receive a determination under paragraph (1)(H) during the school year in which the student initially submits the application. If a student is determined to be independent under paragraph (1)(H), the student shall be presumed to be independent in subsequent years unless—

“(i) the student informs the financial aid office that circumstances have changed; or

“(ii) the financial aid administrator has specific conflicting information about the student's independence.”; and

(3) by striking paragraph (5) of subsection (e) and inserting the following:

“(5) payments made and services provided under part E of title IV of the Social Security Act, including the value of vouchers for education and training made available under section 477 of such Act, and any payments made directly to youth as part of an extended foster care program pursuant to such part E; and”.

PART GGeneral provisions

SEC. 481. Definitions.

Section 481 (20 U.S.C. 1088) is amended—

(1) by striking subsection (d);

(2) in the subsection heading of subsection (f), by striking “Definition of”;

(3) by redesignating subsections (b), (c), (e), and (f) as subsections (f), (m), (c), and (d), respectively, and transferring such subsections to be in alphabetical order based on subsection designation;

(4) by inserting after subsection (a) the following:

“(b) Commission, bonus, or other incentive payment.—For purposes of this title, the term ‘commission, bonus, or other incentive payment’ means a sum of money or something of value, other than a fixed salary or wages, paid to or given to a person or an entity for services rendered.”;

(5) by inserting after subsection (d), as redesignated and transferred by paragraph (3), the following:

“(e) Eligible military service.—

“(1) IN GENERAL.—The term ‘eligible military service’—

“(A) in the case of a member of a regular component of the Armed Forces, means full-time duty in the Armed Forces, other than active duty for training (as defined in section 101 of title 38, United States Code) of 30 days or less;

“(B) in the case of a member of the reserve components of the Armed Forces, means service on active duty under a call or order to active duty under—

“(i) section 688, 12302, 12304, or 12322 of title 10, United States Code;

“(ii) subsection (a), (d), or (g) of section 12301 of title 10, United States Code; or

“(iii) section 712 of title 14, United States Code;

“(C) in the case of a member of the Army National Guard of the United States or Air National Guard of the United States, means, in addition to service described in subparagraph (B), full-time service—

“(i) in the National Guard of a State for the purpose of organizing, administering, recruiting, instructing, or training the National Guard; or

“(ii) in the National Guard under section 502(f) of title 32, United States Code, when authorized by the President or the Secretary of Defense for the purpose of responding to a national emergency declared by the President and supported by Federal funds; and

“(D) in the case of a servicemember who is a commissioned officer of the Public Health Service or the National Oceanic and Atmospheric Administration, active service.

“(2) EXCLUSIONS.—The term ‘eligible military service’ does not include any period during which an individual—

“(A) was assigned full-time by the Armed Forces to a civilian institution for a course of education that was substantially the same as established courses offered to civilians;

“(B) serves as a cadet or midshipman at one of the military service academies of the United States; or

“(C) serves under the provisions of section 12103(d) of title 10, United States Code, pursuant to an enlistment in the Army National Guard or the Air National Guard, or as a Reserve for service in the Army Reserve, Navy Reserve, Air Force Reserve, Marine Corps Reserve, or Coast Guard Reserve.”;

(6) by inserting after subsection (f), as redesignated and transferred by paragraph (3), the following:

“(g) Institution affiliate.—For purposes of this title, the term ‘institution affiliate’ means any person or entity that controls, is controlled by, or is under common control with, an institution of higher education.

“(h) Military orders.—For purposes of this title, the term ‘military orders’, when used with respect to a member of the Armed Forces, means official military orders, or any notification, certification, or verification from the member's commanding officer, with respect to the member's current or future military duty status.

“(i) Revenue-Sharing arrangement.—For purposes of this title, the term ‘revenue-sharing arrangement’ means an arrangement between an institution of higher education and third party under which—

“(1) the third party provides, exclusively or nonexclusively, educational products or services to prospective students or students attending the institution of higher education; and

“(2) the third party or institution of higher education pays a fee or provides other material benefits, including revenue- or profit-sharing, to the institution of higher education or third party in connection with the educational products or services provided to prospective students or students attending the institution of higher education.

“(j) Securing enrollments or securing or awarding financial aid.—

“(1) IN GENERAL.—For purposes of this title, the term ‘securing enrollments or securing or awarding financial aid’—

“(A) means any activity carried out by a person or entity for the purpose of the admission or matriculation of a student to an institution of higher education or the award of financial aid to a student that occurs at any time until the student has completed the student's educational program at an institution;

“(B) includes contact in any form with a prospective student, such as contact through preadmission or advising activities, scheduling an appointment to visit the enrollment office or any other office of the institution, attendance at such an appointment, or involvement in a prospective student's signing of an enrollment agreement or financial aid application; and

“(C) does not include making a payment to a third party for the provision of student contact information for prospective students, as long as such payment is not based on—

“(i) any additional conduct or action by the third party or any prospective student, such as participation in preadmission or advising activities, scheduling an appointment to visit the enrollment office or any other office of the institution or attendance at such an appointment, or the signing, or being involved in the signing, of a prospective student's enrollment agreement or financial aid application; or

“(ii) the number of students (calculated at any point in time of an educational program) who apply for enrollment, are awarded financial aid, or are enrolled for any period of time, including through completion of an educational program.

“(k) Service provider.—For purposes of this title, the term ‘service provider’ means any State, person, or entity that enters into a contract with an eligible institution to administer any aspect of the institution's participation in any program under this title, including—

“(1) securing enrollments or securing or awarding financial aid;

“(2) student performance in educational coursework;

“(3) student graduation;

“(4) job placement of students; or

“(5) any other academic facet of a student’s enrollment in an institution of higher education.

“(l) Student default risk.—For purposes of this title, the term ‘student default risk’ means a risk that is reflected as a percentage that is calculated by taking an institution's 3-year cohort default rate, as defined in section 435(m), for the most recent fiscal year available, and multiplying it by the percentage of students enrolled at such institution receiving a Federal student loan authorized under this title during the previous academic year.”.

SEC. 482. Standard notification format for delinquent borrowers; explanation of benefits of Federal loans.

Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting after section 483 the following:

“SEC. 483A. Standard notification format for delinquent borrowers; explanation of benefits of Federal loans.

“(a) Standard notification format for delinquent borrowers.—

“(1) IN GENERAL.—The Secretary, in consultation with the Director of the Bureau of Consumer Financial Protection, shall develop and submit for consumer testing in accordance with section 483C, a standard format to be used to notify, by writing and by telephone, any borrower who is delinquent, or at risk of becoming delinquent, on loans made, insured, or guaranteed under part B or D of the borrower's repayment options, including deferment, forbearance, the income-based repayment plan available under section 493C, loan forgiveness opportunities, and, if applicable, the possibility for loan discharge.

“(2) CONTENTS.—To the extent practicable, the information provided through the standard format to borrowers described in paragraph (1) shall include all terms, conditions, fees, and costs associated with the available repayment plans in a format that allows the borrower to compare the borrower's current repayment plan with the alternatives.

“(b) Explanation of the benefits of Federal loans.—The Secretary, in consultation with the Director of the Bureau of Consumer Financial Protection, shall prepare and make available to eligible institutions, for disclosure in accordance with section 485(l)(2)(L)(ii), a written explanation of the benefits that are unique to Federal student loans (including repayment plans, loan forgiveness, and loan deferment) and a description of the loan terms that borrowers should examine carefully if considering a private education loan.”.

SEC. 483. Institutional financial aid award letter.

(a) In general.—Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by inserting after section 483A, as added by section 482, the following:

“SEC. 483B. Institutional financial aid award letters.

“(a) Standard format.—The Secretary, in consultation with the heads of relevant Federal agencies, shall develop a standard format for financial aid award letters based on recommendations from representatives of students, students’ families, institutions of higher education, secondary school and postsecondary education counselors, and nonprofit consumer groups.

“(b) Key required contents for financial aid award letters.—The standard format developed under subsection (a) shall include, in a consumer-friendly manner that is simple and understandable, the following items clearly separated from each other and listed on the first page of the financial aid award letter in either electronic or written format:

“(1) Information on the student's cost of attendance based on the most current costs for the academic period covered by the financial aid award letter, including the following expenses (as determined under section 472):

“(A) Tuition and fees.

“(B) Room and board costs.

“(C) Books and supplies.

“(D) Transportation.

“(E) Miscellaneous personal expenses.

“(2) (A) The amount of financial aid that the student would not have to repay, such as scholarships, grant aid offered under this title, or grant aid offered by the institution, a State, or an outside source to the student for such academic period;

“(B) a disclosure that such financial aid does not have to be repaid and whether the student can expect to receive similar amounts of such financial aid for each academic period the student is enrolled at the institution; and

“(C) in the case of any institution that has a policy or practice of front-loading grant aid, a disclosure of that practice and that the student may receive less grant aid in future academic terms.

“(3) The net price that the student, or the student's family on behalf of the student, will have to pay for the student to attend the institution for such academic period, equal to the difference between—

“(A) the cost of attendance as described in paragraph (1) for the student for such academic period; and

“(B) the amount of financial aid described in paragraph (2) that is included in the financial aid award letter.

“(4) The amount of work study assistance, including such assistance available under part C, the likelihood of finding employment opportunities on campus, and a disclosure that the aid must be earned by the student and the assistance offered is subject to the availability of employment opportunities.

“(5) The types and amounts of loans under part D or E that the institution recommends for the student for such academic period, including—

“(A) a disclosure that such loans have to be repaid;

“(B) a disclosure that the student can borrow a lesser amount than the recommended loan amount;

“(C) a clear use of the word ‘loan’ to describe the recommended loan amounts;

“(D) personalized information showing estimates of the borrower’s anticipated monthly payments and the difference in total interest paid and total payments under each plan;

“(E) a disclosure that Federal loans cannot be discharged in bankruptcy except in cases of extreme or undue hardship; and

“(F) a disclosure that the student may be eligible for longer repayment terms, such as extended or income-based repayment plans, and that longer repayment terms may result in the student paying more money over the life of the loans.

“(6) 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's website on financial aid.

“(7) A disclosure that Federal student loans offer generally more favorable terms and beneficial repayment options than private education loans so students should examine available Federal student loan options before applying for private education loans, and an explanation to be written by the Secretary, in consultation with the heads of relevant Federal agencies of—

“(A) the benefits unique to Federal student loans, including various repayment plans, loan forgiveness, and loan deferment; and

“(B) the loan terms and conditions to examine carefully, if considering a private education loan.

“(8) The deadline and summary of the process, if any, for accepting the financial aid offered in the financial aid award letter.

“(9) The academic period covered by the financial aid award letter and a clear indication whether the aid offered is based on full-time or part-time enrollment.

“(10) With respect to institutions where more than 30 percent of enrolled students borrow loans to pay for their education, the institution’s most recent cohort default rate, as defined in section 435(m), compared to the most recent national average cohort default rate.

“(11) Any other information the Secretary, in consultation with the heads of relevant Federal agencies, determines necessary so that students and parents can make informed loan borrowing decisions, including quality metrics such as percentage of students at the institution who take out student loans and average debt at graduation for students at the institution.

“(c) Other required contents for the financial aid award letter.—The standard format for a financial aid award letter developed under subsection (a) shall also include the following information, in a concise format determined by the Secretary, in consultation with the heads of relevant Federal agencies:

“(1) A concise summary of the terms and conditions of financial aid recommended under paragraphs (2), (4), and (5) of subsection (b), and a method to provide students with additional information about such terms and conditions, such as links to the supplementary information.

“(2) At the institution’s discretion, additional options for paying for the net price amount listed in subsection (b)(3), such as the amount recommended to be paid by the student or student’s family, Federal Direct PLUS Loans, or private education loans. If the institution recommends private education loans, the financial aid award letter shall contain the additional following general disclosures:

“(A) The availability of, and the student’s potential eligibility for, additional Federal financial assistance under this title.

“(B) The impact of a proposed private education loan on the student’s potential eligibility for other financial assistance, including Federal financial assistance under this title.

“(C) The student’s ability to select a private educational lender of the student’s choice.

“(D) The student's right to accept or reject a private education loan within the 30-day period following a private educational lender’s approval of a student’s application and a student’s 3-day right-to-cancel period.

“(E) With respect to dependent students, any reference to private education loans shall be accompanied by information about the recommended family contribution and the availability of, and terms and conditions associated with, Federal Direct PLUS Loans for the student's parents regardless of family income, and of the student’s increased eligibility for Federal student loans under this title if the student's parents are not able to borrow under the Federal Direct PLUS Loan program.

“(3) The following disclosures:

“(A) That the financial aid award letter only contains information for 1 academic period and the financial aid offered in following academic periods may change, unless the institution is offering aid that covers multiple academic periods.

“(B) How non-institutional scholarships awarded to the student affect the financial aid package offered to the student.

“(C) A concise summary of any Federal 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.

“(d) Additional requirements for financial aid award letter.—In addition to the requirements listed under subsections (b) and (c), the financial aid award letter shall meet the following requirements:

“(1) Clearly distinguish between the aid offered under paragraphs (2), (4), and (5) of subsection (b), 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.

“(2) Use standard definitions and names for the terms described in subsection (b) that are developed by the Secretary in consultation with the heads of relevant Federal agencies, representatives of institutions of higher education, nonprofit consumer groups, students, and secondary school and higher education guidance counselors, not later than 3 months after the date of enactment of the Higher Education Affordability Act.

“(3) If an institution’s recommended Federal student loan aid offered under subsection (b)(5) is less than the maximum amount of Federal assistance available to the student under parts D and E, provide additional information on Federal student loans, including the types and amounts for which the student is eligible in an attached document or webpage.

“(4) Use standard formatting and design to ensure—

“(A) that figures described in paragraphs (1) through (5) of subsection (b) are in the same font, appear in the same order, and are displayed prominently on the first page of the financial aid award letter whether produced in written or electronic format; and

“(B) that the other information required in subsections (b) and (c) appears in a standard format and design on the financial aid award letter.

“(5) Include an attestation that the student has accessed and read the financial aid award letter, if provided to the student in electronic format.

“(6) Include language developed by the Secretary, in consultation with the heads of relevant Federal agencies, notifying eligible students that they may be eligible for education benefits, and where they can locate more information about such benefits, described in the following provisions:

“(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.

“(e) Additional information.—Nothing in this section shall preclude an institution from supplementing the financial aid award letter with additional information as long as such additional information supplements the financial aid award letter and is not located on the financial aid award letter, except as provided in subsection (c)(2).

“(f) Consumer testing.—The financial aid award letter under this section shall undergo consumer testing in accordance with section 483C. The Secretary, in consultation with the heads of relevant Federal agencies, representatives of institutions of higher education, nonprofit consumer groups, students, and secondary school and higher education guidance counselors, shall develop multiple designs and formatting, subject to the requirements of subsection (d)(4), of the financial aid award letter to be used for consumer testing not later than 6 months after the date of enactment of the Higher Education Affordability Act”..”.

(b) Conforming amendment.—Section 484 of the Higher Education Opportunity Act (20 U.S.C. 1092 note) is repealed.

SEC. 483A. Consumer testing.

Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by inserting after section 483B, as added by section 483, the following:

“SEC. 483C. Consumer testing.

“(a) Establishment of consumer testing process.—Not later than 6 months after the date of enactment of the Higher Education Affordability Act, and every 5 years thereafter, the Secretary shall establish, in consultation with the heads of relevant Federal agencies, a process for consumer testing each of the following:

“(1) The universal net price calculator established under section 132(h)(7).

“(2) The College Scorecard established under section 133.

“(3) The initial model form of postsecondary education information required under section 405A(g) for the initial consumer testing, and the postsecondary education information form under section 405A(h) for all subsequent consumer testing.

“(4) The initial model form of postsecondary education information required under section 405B(g) for the initial consumer testing, and the postsecondary education information form under section 405B(h) for all subsequent consumer testing.

“(5) The master promissory note.

“(6) The standard notification format for borrowers who are delinquent or at risk of being delinquent under section 483A.

“(7) The institutional financial aid award letter required under section 483B.

“(8) The methodology for comparing institutions based on the speed-based repayment rate under section 483D(c)(4)(A).

“(9) Online entrance, exit, and interim loan counseling tools, including the Department of Education's Financial Awareness Counseling Tool and other online tools that may be used, and any disclosures that may be provided, during the counseling that is required under subsections (b), (l), and (n) of section 485.

“(10) The personalized periodic statement required for borrowers who are automatically enrolled into an income-based repayment plan under section 493C(d)(1)(D).

“(11) Any consent form or any online tool required for consent of borrowers with $0 payment under paragraph (1)(C)(ii)(II) or (3)(B) of section 493C(d).

“(b) Participants in Consumer Testing.—The consumer testing process for a product described in subsection (a) shall include, as the Secretary determines necessary for the product—

“(1) representatives of students (including low-income students, first generation college students, students underrepresented in higher education (including students from ethnic and racial minorities), adult students, and prospective students);

“(2) students’ families (including low-income families, families with first generation college students, families with students who are underrepresented in higher education (including students from ethnic and racial minorities), and families with prospective students);

“(3) representatives of institutions of higher education, including faculty;

“(4) secondary school and postsecondary education counselors;

“(5) postsecondary financial aid officers; and

“(6) nonprofit consumer groups.

“(c) Use of consumer testing results.—The Secretary shall use the results of the consumer testing in the final development of each product described in subsection (a), and may modify the definitions, terms, formatting, and design of any product tested under this section based on the results of the consumer testing before finalizing the product.

“(d) Report to Congress.—Not later than 3 months after the date any consumer testing under this section concludes, the Secretary shall submit to the authorizing committees a report that contains the results of such consumer testing.”.

SEC. 483B. Loan repayment rate and speed-based repayment rate.

Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by inserting after section 483C, as added by section 484, the following:

“SEC. 483D. Loan repayment rate and speed-based repayment rate.

“(a) Definitions.—In this section:

“(1) AMOUNT PAID.—The term ‘amount paid’, when used with respect to a covered Federal student loan, means the amount paid of the outstanding balance, calculated by determining the difference between the original outstanding balance on the loan and the current loan balance on the loan.

“(2) COHORT LOAN.—The term ‘cohort loan’, when used with respect to an institution, means a covered Federal student loan in the 2-year loan repayment cohort identified for the institution under subsection (b)(2) for a fiscal year.

“(3) COVERED FEDERAL STUDENT LOAN.—The term ‘covered Federal student loan’ means—

“(A) a loan made, insured, or guaranteed under part B or D that is issued to a student borrower; or

“(B) the portion of a loan made under section 428C or a Federal Direct Consolidation Loan that is used to repay a loan described in subparagraph (A).

“(4) CURRENT LOAN BALANCE.—The term ‘current loan balance’ means the sum of the current outstanding balance due on a covered Federal student loan, as of the date on which a rate determination under this section is being made, plus the accrued and unpaid interest balance on the loan as of such date.

“(5) ORIGINAL OUTSTANDING BALANCE.—The term ‘original outstanding balance’, when used with respect to a covered Federal student loan, means the total amount of the outstanding balance of the loan, including capitalized interest and any unpaid accrued interest that has not been capitalized, as of the date that the loan entered repayment.

“(6) PAYMENTS-MADE LOAN.—The term ‘payments-made loan’ means a covered Federal student loan that has never been in default (or, in the case of a loan described in paragraph (3)(B), neither the consolidation loan nor any underlying loan have ever been in default), where—

“(A) payments made by a borrower during the most recently completed fiscal year reduce the outstanding balance of the loan (which, in the case of a loan described in paragraph (3)(B), shall be deemed to mean reducing the outstanding balance of the entire consolidation loan) to an amount that is less than the outstanding balance of the loan at the beginning of that fiscal year; or

“(B) the borrower of the loan is in the process of qualifying for public service loan forgiveness under section 455(m) and submits an employment certification to the Secretary that demonstrates the borrower is engaged in a public service job and the borrower made qualifying payments, as determined under such section, on the loan during the most recently completed fiscal year.

“(b) Loan repayment rate.—

“(1) METHOD OF CALCULATION.—Each fiscal year, the Secretary shall determine the loan repayment rate for each institution of higher education that is participating in a program under this title or seeking to regain eligibility to participate in a program under this title by using the loan cohort identified under paragraph (2) to calculate the loan repayment rate, in accordance with paragraph (3).

“(2) DETERMINATION OF LOAN COHORT.—

“(A) IN GENERAL.—For purposes of calculating the loan repayment rate for a fiscal year under this subsection, the 2-year loan repayment cohort for an institution of higher education shall consist of all covered Federal student loans of the institution that are in their third year of repayment or in their fourth year of repayment, except as provided in subparagraph (B).

“(B) SPECIAL RULES AND EXCLUSIONS.—

“(i) SPECIAL RULE FOR MEDICAL AND DENTAL STUDENTS.—Notwithstanding subparagraph (A), a covered Federal student loan for any borrower who is a professional or graduate student enrolled in a program of study that requires a medical internship or residency shall be included in the loan cohort when the loan is in its sixth and seventh years of repayment.

“(ii) EXCLUSIONS.—The Secretary shall exclude from a loan cohort for a fiscal year any covered Federal student loan that would otherwise qualify, if the loan—

“(I) was discharged under subsection (a)(1) or (d) of section 437 as a result of the death of the borrower; or

“(II) was assigned or transferred to the Secretary and is being considered for discharge as a result of the total and permanent disability of the borrower, or was discharged by the Secretary on that basis, under section 437(a).

“(iii) TREATMENT OF DEFERMENTS AND FORBEARANCE.—

“(I) IN GENERAL.—The Secretary shall treat any period during which a covered Federal student loan is in deferment or forbearance under this title as a period of repayment for purposes of this subsection, except as provided in subclause (II).

“(II) EXCEPTION FOR IN-SCHOOL DEFERMENT.—The Secretary shall not include any period during which payments on a covered Federal student loan are deferred under section 428(b)(1)(M)(i), 428B(d)(1)(A)(i), or 455(f)(2)(A) in determining the borrower's period of repayment for purposes of paragraph (1), subject to subclause (III).

“(III) NO EXCEPTION FOR CERTAIN SHORT TERM PROGRAMS OF STUDY.—Subclause (II) shall not apply in any case where a deferral described in such subclause is due to a borrower's enrollment, after completion of the program for which the loan was made, in a program of study of less than 6 months in duration.

“(iv) TREATMENT OF CONSOLIDATION LOANS.—For each covered Federal student loan that is a loan described in subsection (a)(3)(B), the Secretary shall—

“(I) determine the original outstanding balance for each original covered Federal student loan that comprises the consolidation loan;

“(II) determine the date that the repayment period began, in accordance with this subparagraph, for each such original loan;

“(III) include, in determining the duration of the repayment period under this paragraph for the underlying loan, the period during which the original loan was in repayment and the period during which the consolidation loan was in repayment; and

“(IV) include the amount determined under subclause (I) for each underlying loan in the calculations under this paragraph for the appropriate fiscal year based on the repayment period for the underlying loan.

“(3) FORMULA FOR LOAN REPAYMENT RATE.—

“(A) IN GENERAL.—For purposes of this section, the loan repayment rate for an institution for a fiscal year shall be equal to the proportion that—

“(i) the sum of—

“(I) the total original outstanding balance of all covered Federal student loans in the loan cohort of the institution for such fiscal year that are paid in full in accordance with subparagraph (B); and

“(II) the total original outstanding balance of all payments-made loans in the loan cohort for such year; bears to

“(ii) the total original outstanding balance of all loans in the loan cohort for such year.

“(B) LOANS PAID IN FULL.—

“(i) IN GENERAL.—For purposes of paragraph (1)(A), a loan paid in full is a covered Federal student loan in the loan cohort that—

“(I) has never been in default (or in the case of a loan described in subsection (a)(3)(B), neither the consolidation loan nor any original loan comprising the consolidation loan has ever been in default); and

“(II) has been paid in full by a borrower.

“(ii) CONSOLIDATION LOANS AND REFINANCING.—A covered Federal student loan described in subsection (a)(3)(B) or consolidated under another refinancing process provided for under this Act, is not counted as a loan paid in full for purposes of this subparagraph until the consolidation loan or other financial instrument is paid in full by the borrower.

“(4) PUBLICATION.—The Secretary shall make the loan repayment rate for each institution of higher education participating in a program under this title or seeking to regain eligibility to participate in a program under this title publicly available on the College Navigator website of the Department, or any successor website, and the website for the National Center for Education Statistics.

“(c) Speed-Based repayment rate.—

“(1) PURPOSE.—The purpose of the speed-based repayment rate under this subsection is to provide an estimate of—

“(A) the annual rate at which student borrowers at an institution of higher education are repaying their loans under part B and D; and

“(B) the total expected time it takes student borrowers to repay their loans.

“(2) IN GENERAL.—In order to provide additional information regarding loan repayment, the Secretary shall, for each fiscal year—

“(A) determine the speed-based repayment rate for each institution of higher education that is participating in a program under this title or seeking to regain eligibility to participate in a program under this title;

“(B) determine the information required for the comparison methodology established by the Secretary under paragraph (4); and

“(C) publish the most recently available speed-based repayment rate and the comparison information under paragraph (4) for each such institution on the College Scorecard, in accordance with section 133(d)(3), and on the College Affordability and Transparency Center website, or any successor website, of the Department.

“(3) DETERMINATION OF SPEED-BASED REPAYMENT RATE.—In order to provide additional information regarding loan repayment and determine the speed-based repayment rate required under paragraph (2)(A) for an institution of higher education, the Secretary shall, for each fiscal year—

“(A) determine the percentage paid of the total original outstanding balance of all cohort loans of the institution for the fiscal year (including, for purposes of calculating the speed-based repayment rate only, all loans that would be cohort loans for such fiscal year if the loans were not in delinquency, forbearance, deferment, or default) for which the determination is being made, by dividing—

“(i) the amount paid of all such cohort loans of the institution for such year; by

“(ii) the total original outstanding balance of all such cohort loans of the institution for such year; and

“(B) divide such percentage by the average number of years in repayment for the cohort loans of the institution, rounded to the nearest month and weighted based on the dollar amount of the current loan balance of each cohort loan.

“(4) COMPARISON METHODOLOGY FOR DISCLOSURE PURPOSES.—

“(A) IN GENERAL.—The Secretary shall establish a methodology for comparing similar institutions of higher education based on the speed-based repayment rate. The methodology shall—

“(i) use clear and understandable terms, such as ‘quickly’ and ‘slowly’, to indicate the relative significance of the speed-based repayment rate of an institution of higher education;

“(ii) include a projection of the expected time for the average borrower in the loan cohort described in paragraph (3)(A) of each institution to complete repayment at each institution, based on the speed-based repayment rate;

“(iii) include a comparison of each institution's expected time of repayment under clause (ii) with the expected times of repayment for similar institutions;

“(iv) not disaggregate the comparisons based on status as a public, private nonprofit, or proprietary institution of higher education;

“(v) distinguish the overall speed-based repayment rate of an institution from the speed-based repayment rate of all professional degree programs of the institution; and

“(vi) calculate a separate speed-based repayment rate for each program at an institution that is subject to gainful employment regulations under section 668.7 of title 34, Code of Federal Regulations.

“(B) CONSUMER TESTING.—The Secretary shall submit the methodology described in subparagraph (A) for consumer testing in accordance with section 483C.

“(5) GUIDANCE AND REGULATIONS.—The Secretary may issue guidance and promulgate rules for the purposes of determining the speed-based repayment rate.

“(6) AUTHORITY TO ADJUST FORMULA.—Notwithstanding any other provision of this section, the Secretary may adjust the formula for calculating the speed-based repayment rate under paragraphs (2) and (3) to provide a more informative and accurate measure of the speed of repayment.

“(d) Publication of student default risk.—Each year, the Secretary shall publish the student default risk for each institution for the most recent fiscal year on the website of the National Center for Education Statistics.”.

SEC. 483C. One-time FAFSA pilot program.

Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by inserting after section 483C, as added by section 485, the following:

“SEC. 483E. One-time FAFSA pilot program.

“(a) Purposes.—The purposes of this section are—

“(1) to streamline the annual process by which students apply for Federal financial assistance; and

“(2) to reduce the need for students to apply for such assistance each year.

“(b) Pilot program authorized.—The Secretary is authorized to establish a pilot program and select 5 eligible States—

“(1) in which a student who attends an institution of higher education in the eligible State may submit a single Free Application for Federal Student Aid described in section 483 and as modified under subsection (d) (referred to in this section as the ‘FAFSA)’, to be used for application to determine the need and eligibility of the student for financial assistance under this title during the official length of the student's proposed postsecondary degree program; and

“(2) that shall receive a grant in accordance with subsection (e).

“(c) Eligible States.—The Secretary shall select 5 eligible States that are determined by the Secretary to have a strong record of increasing college access and affordability, especially for low-income students, to participate in the pilot program described in subsection (b). The selection of eligible States shall be based on the extent to which the State has—

“(1) invested, and continues to invest, significantly in public higher education, resulting in a comparatively lower net price for low-income students;

“(2) allocated State financial aid primarily on the basis of need; and

“(3) agreed, as a condition of the State's application for the pilot program under this section, to provide all in-State students (as determined by the State) with an offer for State financial aid that—

“(A) is valid for not less than 2 years and not more than 4 years, as determined by the State; and

“(B) shall be subject to change only upon certain conditions, such as significant changes in a student's financial circumstances.

“(d) Single FAFSA submission.—The Secretary shall implement, in consultation with the 5 selected eligible States, a pilot program to streamline the process of application to determine the need and eligibility of a student for financial assistance under this title that incorporates the following:

“(1) An option for students that are enrolled in an institution of higher education in a selected eligible State to submit a single FAFSA at the beginning of the student's postsecondary degree program and receive a determination of financial assistance under this title that shall, on a contingent basis, be valid for not less than 2 years and not more than four years, as determined by the State.

“(2) The determination of financial assistance under paragraph (1) shall be made in accordance with part F, except that relevant calculations shall be made using a multi-year average, of two or three years, from the most recent tax years for which data are available. A student may use previously submitted student and parent taxpayer data to prepopulate the electronic version of the FAFSA, as described in section 483(f) of the Higher Education Act of 1965 (20 U.S.C. 1090(f)).

“(3) As a condition of the continued receipt of financial assistance under this section, the Secretary may require a student who submits the single FAFSA to respond to a short number of questions (which may be determined by the Secretary), on an annual basis, to determine if there is a change in the financial status of the student (such as whether the student or the student's parent has experienced a substantial increase in annual income) in order to ensure that the student continues to receive the appropriate amount of financial assistance under this title.

“(4) Notwithstanding paragraph (1), a requirement that students who experience significant changes in their financial circumstances, as determined by the Secretary, will be required to resubmit the FAFSA in order to receive a new determination of financial assistance under this title.

“(5) An income verification process—

“(A) which the Secretary, through the establishment of a memorandum of understanding with the Secretary of the Treasury, will develop to share the income tax data of a random sample of students who have received Federal assistance under this title, including Federal Pell Grants under section 401 and loans made under part D;

“(B) to ensure that students who have not resubmitted a FAFSA in accordance with paragraph (4) did not have a significant change in financial circumstances that would have required them to do so;

“(C) that shall be carried out in a way so as to ensure that no personally identifiable information is made public through the income verification process; and

“(D) that will be carried out only with the consent of students, whose consent will be requested as part of the annual response required under paragraph (3).

“(6) An option for students to request professional judgment or resubmit their FAFSA each year, to receive a new determination of eligibility for financial assistance under this title.

“(e) Grant amount.—Selected eligible States that receive a grant under this section shall use grant funds to increase public awareness of, and promote the use of, the single FAFSA that may be submitted under the pilot program to be used for application to determine the need and eligibility of the student for financial assistance under this title during the official length of the student's proposed postsecondary degree program.

“(f) Supplement not supplant.—The grants provided under this section shall be used to supplement, and not supplant, State funds that are used to improve college access and affordability.

“(g) Evaluation.—Not later than 3 years after the date of enactment of the Higher Education Affordability Act, and 5 years thereafter, the Secretary shall prepare and submit to the authorizing committees a report that contains an evaluation of the effectiveness of the pilot program under this section in improving college access, increasing FAFSA submission rates, and increasing postsecondary education credit and course accumulation.”.

SEC. 484. Ability to benefit.

(a) In general.—Subsection (d) of section 484 (20 U.S.C. 1091) is amended to read as follows:

“(d) Students who are not high school graduates.—

“(1) STUDENT ELIGIBILITY.—In order for a student who does not have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such certificate, to be eligible for any assistance under subparts 1, 3, and 4 of part A and parts B, C, D, and E of this title, the student shall meet the requirements of one of the following subparagraphs:

“(A) The student is enrolled in an eligible career pathway program and meets one of the following standards:

“(i) The student shall take an independently administered examination and shall achieve a score, specified by the Secretary, demonstrating that such student can benefit from the education or training being offered. Such examination shall be approved by the Secretary on the basis of compliance with such standards for development, administration, and scoring as the Secretary may prescribe in regulations.

“(ii) The student shall be determined as having the ability to benefit from the education or training in accordance with such process as the State shall prescribe. Any such process described or approved by a State for the purposes of this section shall be effective 6 months after the date of submission to the Secretary unless the Secretary disapproves such process. In determining whether to approve or disapprove such process, the Secretary shall take into account the effectiveness of such process in enabling students without high school diplomas or the equivalent thereof to benefit from the instruction offered by institutions utilizing such process, and shall also take into account the cultural diversity, economic circumstances, and educational preparation of the populations served by the institutions.

“(iii) The student shall be determined by the institution of higher education as having the ability to benefit from the education or training offered by the institution of higher education upon satisfactory completion of 6 credit hours or the equivalent coursework that are applicable toward a degree or certificate offered by the institution of higher education.

“(B) The student has completed a secondary school education in a home school setting that is treated as a home school or private school under State law.

“(2) ELIGIBLE CAREER PATHWAY PROGRAM.—In this subsection, the term ‘eligible career pathway program’ means a program that—

“(A) concurrently enrolls participants in connected adult education and eligible postsecondary programs;

“(B) provides counseling and supportive services to identify and attain academic and career goals;

“(C) provides structured course sequences that—

“(i) are articulated and contextualized; and

“(ii) allow students to advance to higher levels of education and employment;

“(D) provides opportunities for acceleration to attain recognized postsecondary credentials, including degrees, industry relevant certifications, and certificates of completion of apprenticeship programs;

“(E) is organized to meet the needs of adults;

“(F) is aligned with the education and skill needs of the regional economy; and

“(G) has been developed and implemented in collaboration with partners in business, workforce development, and economic development.”.

(b) Effective date and transition.—The amendment made by subsection (a) shall apply to students who first enroll in a program of study during the period beginning July 1, 2012, and ending June 30, 2019.

SEC. 485. Reasonable collection costs in State court judgments.

Section 484A(b)(1) (20 U.S.C. 1091a(b)(1)) is amended by striking “reasonable collection costs” and inserting “reasonable collection costs, which, in the case of a loan made under part D, means collection costs in an amount that is reasonable and that does not exceed the bona fide collection costs associated with such student loan that are actually incurred in collecting the debt against the borrower”.

SEC. 486. Improved disclosures, counseling, and financial assistance information for students.

(a) In general.—Section 485 (20 U.S.C. 1092) is amended—

(1) in subsection (b)—

(A) in paragraph (1)(A)—

(i) by striking clause (i) and inserting the following:

“(i) personalized information that reflects the borrower's actual borrowing circumstances, which shall include—

“(I) the repayment plans available, including the income-based repayment option under section 493C and the standard 10-year repayment option under section 428(b)(9)(A)(i) or 455(d)(1)(A);

“(II) a description of the different features of each plan; and

“(III) personalized information showing estimates of the borrower's anticipated monthly payments and the difference in total interest paid and total payments under each plan;”;

(ii) by redesignating clauses (viii) and (ix) as clauses (x) and (xi), respectively;

(iii) by inserting after clause (vii) the following:

“(viii) a statement that student loans must be repaid even if the student does not complete the program in which the student is enrolled;

“(ix) information and resources related to financial literacy and planning, including budgeting, as determined by the Secretary based on the recommendations of the Secretary of the Treasury in the report submitted under section 1103 of the Higher Education Affordability Act;”; and

(iv) by adding at the end the following:

“(C) The counseling described in subparagraph (A)—

“(i) shall be provided in a simple and understandable manner that includes mechanisms to check for comprehension; and

“(ii) shall be provided—

“(I) during an exit counseling session conducted in person; or

“(II) online.”; and

(B) in paragraph (2)(A)(iv), by striking “, address, social security number, references, and driver's license number” and inserting “, postal address, social security number, references, driver's license number, phone number, and personal electronic mailing address that is not associated with the institution”;

(2) in subsection (d)(1), by striking “income-sensitive” and all that follows through “part D” and inserting “income-based repayment plans for loans made, insured, or guaranteed under part B or made under part D.”;

(3) in subsection (f)—

(A) by striking the subsection heading and inserting “Disclosure of campus security and harassment policy and campus crime statistics”;

(B) in paragraph (6)(A)—

(i) by redesignating clauses (iii), (iv), and (v) as clauses (vii), (viii), and (ix), respectively; and

(ii) by inserting after clause (ii) the following:

“(iii) The term ‘commercial mobile service’ has the meaning given the term in section 332(d) of the Communications Act of 1934 (47 U.S.C. 332(d)).

“(iv) The term ‘electronic communication’ means any transfer of signs, signals, writing, images, sounds, or data of any nature transmitted in whole or in part by a wire, radio, electromagnetic, photoelectronic, or photooptical system.

“(v) The term ‘electronic messaging services’ has the meaning given the term in section 102 of the Communications Assistance for Law Enforcement Act (47 U.S.C. 1001).

“(vi) The term ‘harassment’ means conduct, including acts of verbal, nonverbal, or physical aggression, intimidation, or hostility (including conduct that is undertaken in whole or in part, through the use of electronic messaging services, commercial mobile services, electronic communications, or other technology) that—

“(I) is sufficiently severe, persistent, or pervasive so as to limit a student's ability to participate in or benefit from a program or activity at an institution of higher education, or to create a hostile or abusive educational environment at an institution of higher education; and

“(II) is based on a student's actual or perceived—

“(aa) race;

“(bb) color;

“(cc) national origin;

“(dd) sex;

“(ee) disability;

“(ff) sexual orientation;

“(gg) gender identity; or

“(hh) religion.”;

(C) by redesignating paragraphs (9) through (18) as paragraphs (10) through (19), respectively; and

(D) by inserting after paragraph (8) the following:

“(9) (A) Each institution of higher education participating in any program under this title, other than a foreign institution of higher education, shall develop and distribute as part of the report described in paragraph (1) a statement of policy regarding harassment, which shall include—

“(i) a prohibition of harassment of enrolled students by other students, faculty, and staff—

“(I) on campus;

“(II) in noncampus buildings or on noncampus property;

“(III) on public property;

“(IV) through the use of electronic mail addresses issued by the institution of higher education;

“(V) through the use of computers and communication networks, including any telecommunications service, owned, operated, or contracted for use by the institution of higher education or its agents; or

“(VI) during an activity sponsored by the institution of higher education or carried out with the use of resources provided by the institution of higher education;

“(ii) a description of the institution's programs to combat harassment, which shall be aimed at the prevention of harassment;

“(iii) a description of the procedures that a student should follow if an incident of harassment occurs; and

“(iv) a description of the procedures that the institution will follow once an incident of harassment has been reported.

“(B) The statement of policy described in subparagraph (A) shall address the following areas:

“(i) Procedures for timely institutional action in cases of alleged harassment, which procedures shall include a clear statement that the accuser and the accused shall be informed of the outcome of any disciplinary proceedings in response to an allegation of harassment.

“(ii) Possible sanctions to be imposed following the final determination of an institutional disciplinary procedure regarding harassment.

“(iii) Notification of existing counseling, mental health, or student services for victims or perpetrators of harassment, both on campus and in the community.

“(iv) Identification of a designated employee or office at the institution that will be responsible for receiving and tracking each report of harassment by a student, faculty, or staff member.”;

(4) in subsection (l)—

(A) by striking paragraph (1) and inserting the following:

“(1) DISCLOSURE REQUIRED PRIOR TO SIGNING MASTER PROMISSORY NOTE.—Each eligible institution shall, prior to obtaining or arranging execution of a master promissory note for a loan under part D (other than a Federal Direct Consolidation Loan) by a first-time borrower at such institution, ensure that the borrower receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to such loan in accordance with paragraph (2). Such information—

“(A) shall be provided through the use of interactive programs that include mechanisms to check the borrower's comprehension of the terms and conditions of the borrower’s loans under part D, using simple and understandable language and clear formatting; and

“(B) shall be provided—

“(i) during an entrance counseling session conducted in person; or

“(ii) online.”;

(B) in paragraph (2)—

(i) in subparagraph (H), by striking “within the regular time for program completion”; and

(ii) by adding at the end the following:

“(L) (i) A disclosure that Federal student loans offer generally more favorable terms and beneficial repayment options than private education loans, an explanation of the difference and relevance between student loans with a fixed interest rate as compared to student loans with a variable interest rate, and a recommendation that students examine available Federal student loan options before applying for private education loans.

“(ii) The explanation of the benefits provided under Federal student loans developed by the Secretary under section 483A(b).

“(M) An explanation, if applicable, that a student may refuse all or part of a student loan available under part D, which could help minimize the student's debt obligations.

“(N) Information relating to the institution's cohort default rate, including—

“(i) the cohort default rate, as defined in section 435(m), of the institution;

“(ii) an easy to understand explanation of the cohort default rate;

“(iii) the percentage of students at the institution of higher education who borrow Federal student loans under this title;

“(iv) the national average cohort default rate (as determined by the Secretary in accordance with section 435(m));

“(v) in the case of an institution with a cohort default rate that is greater than the national average cohort default rate (as described in clause (iv)), a disclosure to the student that the institution's cohort default rate is above the national average; and

“(vi) in the case of an institution with a cohort default rate that is greater than 30 percent, a disclosure to the students that if the cohort default rate remains greater than 30 percent for the 3 consecutive years—

“(I) the institution will lose institutional eligibility for the purposes of programs authorized under this title; and

“(II) the student will no longer be able to receive Federal financial aid at that institution.

“(O) Information relating to the institution's speed-based loan repayment rate, including—

“(i) the speed-based loan repayment rate, as described in section 483D(c), of the institution and, if applicable, the speed-based loan repayment rate of each program at the institution that is subject to gainful employment regulations under section 668.7 of title 34, Code of Federal Regulations;

“(ii) an easy to understand description of what a speed-based loan repayment rate is;

“(iii) the national average speed-based loan repayment rate, as determined by the Secretary in accordance with section 483D(c); and

“(iv) in the case of an institution with a speed-based loan repayment rate that is below the national average speed-based loan repayment rate (as described in clause (iii)), a disclosure to the student that the institution's speed-based loan repayment rate is below the national average.

“(P) In the case of an institution with a school default risk for a fiscal year, as calculated by the Secretary, of 0.1 or higher, an explanation of the obligations of the institution under section 487(a)(32)(A).

“(Q) The percentages of students at the institution who obtain a degree or certificate within 100 percent of the normal time for completion of the student's program, and who obtain a degree or certificate within 150 percent of the normal time for completion of, the student's program.

“(R) Information and resources related to financial literacy and planning, including budgeting, as determined by the Secretary based on the recommendations of the Secretary of the Treasury in the report submitted under section 1103 of the Higher Education Affordability Act.”; and

(C) by adding at the end the following:

“(3) BORROWER CONTACT INFORMATION.—

“(A) IN GENERAL.—Each eligible institution shall—

“(i) require that a borrower who applies for a loan under this title to attend the institution on or after the date of enactment of the Higher Education Affordability Act submit to the institution, during the entrance counseling required by this subsection, the borrower's contact information at the time of the entrance counseling, including the borrower's phone number and the borrower's postal address; and

“(ii) request that the borrower provide a personal electronic mailing address of the borrower that is not associated with the institution.

“(B) BORROWER RESPONSIBILITY.—A borrower receiving entrance counseling under this subsection shall provide the institution with the personal electronic mailing address described in subparagraph (A)(ii) and shall update the borrower's contact information as necessary to ensure that the information remains accurate.”; and

(5) by adding at the end the following:

“(n) Additional notifications and counseling for borrowers.—

“(1) ANNUAL NOTIFICATIONS.—Each eligible institution shall, not less than once every year while a student is enrolled in the institution, carry out the notification requirements described in subparagraphs (A) through (G) with respect to a borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C) or made under part D (other than a Federal Direct Consolidation Loan). Such notification requirements may be fulfilled by notifications provided at the same time as existing methods of communication, such as by accompanying the annual financial aid award letter, subject to subparagraph (E).

“(A) STUDENT LOAN BALANCE; LOAN TERMS.—The eligible institution shall provide the borrower with a written notification of—

“(i) the borrower's outstanding balance of principal and interest owing on any loan made, insured, or guaranteed under this title;

“(ii) the borrower's repayment options;

“(iii) a disclosure that Federal student loans offer generally more favorable terms and beneficial repayment options than private education loans, an explanation of the difference and relevance between student loans with a fixed interest rate as compared to student loans with a variable interest rate, and a recommendation that students examine available Federal student loan options before applying for private education loans; and

“(iv) the explanation of the benefits provided under Federal student loans developed by the Secretary under section 483A(b).

“(B) FEDERAL DIRECT STAFFORD LOAN ELIGIBILITY.—In addition to the notifications under subparagraph (A) and under subparagraph (C), if applicable, in the case of a borrower described in paragraph (1) who qualifies for a Federal Direct Stafford Loan and who was a new borrower on or after July 1, 2013, the institution shall provide—

“(i) a written notification of the period of time that the borrower has remaining before the borrower will not be eligible for a Federal Direct Stafford Loan in accordance with section 455(q) because the period of time for which the borrower has received Federal Direct Stafford Loans, in the aggregate, exceeds the period of enrollment described in section 455(q)(3); and

“(ii) a written notification to such student when the period of time for which the borrower has received Federal Direct Stafford Loans, in the aggregate, reaches—

“(I) except as provided in subclause (II) or (III), a period equal to 100 percent of the published length of the educational program in which the student is enrolled;

“(II) in the case of a borrower who was previously enrolled in 1 or more other educational programs that began on or after July 1, 2013, a period equivalent to 23 of the maximum period of time that the borrower is eligible to receive a Federal Direct Stafford Loan, as calculated in accordance with section 455(q)(3)(A)(ii); or

“(III) in the case of a borrower who was or is enrolled on less than a full-time basis or in the case of a borrower whose course of study or program is described in paragraph (3)(B) or (4)(B) of section 484(b), a period equivalent to 23 of the maximum period of time that the borrower is eligible to receive a Federal Direct Stafford Loan, as calculated in accordance with section 455(q)(3)(B).

“(C) FEDERAL PELL GRANT ELIGIBILITY.—In addition to the notifications under subparagraph (A) and under subparagraph (B), if applicable, in the case of a borrower described in paragraph (1) who is receiving a Federal Pell Grant, the institution shall provide a written notification to such borrower of the student's remaining period of eligibility for a Federal Pell Grant in accordance with section 401(c)(5).

“(D) CONFIRMATION OF RECEIPT OF NOTIFICATION.—Each eligible institution shall require the borrower, for each applicable notification described in this paragraph, to provide written confirmation (including through electronic means) that the borrower has received the notification and understands the information contained in that notification.

“(E) NOTIFICATIONS BY CERTAIN INSTITUTIONS.—In the case of an institution described in paragraph (2), the notification requirements under this paragraph (including the confirmation of notification described in subparagraph (D)) shall be carried out annually during the interim in-school counseling described in paragraph (2).

“(F) ADDITIONAL LOAN COUNSELING REQUIREMENTS FOR CERTAIN STUDENT BORROWERS.—

“(i) BORROWERS IN NEED OF ADDITIONAL LOAN COUNSELING.—A borrower shall be subject to the requirements described in clause (iii) if—

“(I) the borrower has a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C or a loan made on behalf of a student pursuant to section 428B) or made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student); and

“(II) (aa) the borrower has transferred to the institution from another institution of higher education; or

“(bb) the borrower meets certain criteria that may place a borrower at greater risk of defaulting on student loans.

“(ii) DETERMINATION MADE BY SECRETARY.—The Secretary shall determine any appropriate criteria to be used in clause (i)(II)(bb), such as withdrawing prematurely from an educational program or being in danger of failing to meet standards of academic progress. Nothing in this subparagraph shall be construed to allow an institution to select any criteria for purposes of such clause.

“(iii) ADDITIONAL COUNSELING.—Each eligible institution shall require each borrower described in clause (i) to participate in an additional loan counseling session, which shall—

“(I) be coordinated jointly by the student’s academic advisor and the financial aid office of the institution;

“(II) include disclosure of the estimated additional cost of attendance that the borrower may incur by failing to progress through the borrower’s educational program at a pace that meets the requirements for satisfactory progress, as described in section 484(c); and

“(III) in the case of a borrower described in clause (i)(II)(bb), include the development of an institutionally approved academic plan designed to ensure that the borrower will complete the borrower’s educational program within a reasonable timeframe.

“(G) COUNSELING FOR PARENT PLUS BORROWERS.—

“(i) IN GENERAL.—Each eligible institution shall, prior to disbursement of a Federal Direct PLUS loan made on behalf of a student, ensure that the borrower receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to such loan. Such information—

“(I) shall be provided through the use of interactive programs that use mechanisms to check the borrower’s understanding of the terms and conditions of the borrower’s loan, using simple and understandable language and clear formatting; and

“(II) shall be provided—

“(aa) during a counseling session conducted in person; or

“(bb) online.

“(ii) INFORMATION TO BE PROVIDED.—The information to be provided to the borrower under clause (i) shall include the following:

“(I) Information on how interest accrues and is capitalized during periods when the interest is not paid by the borrower.

“(II) An explanation of when loan repayment begins, of the options available for a borrower who may need a deferment, and that interest accrues during a deferment.

“(III) The repayment plans that are available to the borrower, including personalized information showing—

“(aa) estimates of the borrower’s anticipated monthly payments under each repayment plan that is available; and

“(bb) the difference in interest paid and total payments under each repayment plan.

“(IV) The obligation of the borrower to repay the full amount of the loan, regardless of whether the student on whose behalf the loan was made completes the program in which the student is enrolled.

“(V) The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation.

“(VI) A notification that the loan is not eligible for an income-based repayment plan under section 493C.

“(VII) The name and contact information of the individual the borrower may contact if the borrower has any questions about the borrower’s rights and responsibilities or the terms and conditions of the loan.

“(2) INTERIM IN-SCHOOL COUNSELING REQUIREMENTS FOR INSTITUTIONS WITH GREATER THAN AVERAGE STUDENT DEFAULT RISK.—Each eligible institution that has a student default risk that is greater than the national average student default risk (as determined by the Secretary), shall require each borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C or a loan made on behalf of a student pursuant to section 428B) or made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student), to undertake not less than 1 online or in-person counseling session at the beginning of each academic year that the borrower is enrolled at such institution, which shall include—

“(A) the applicable notification requirements described in paragraph (1); and

“(B) a statement that student loans must be repaid even if the student does not complete the program in which the student enrolled.

“(o) Required Data.—In any case where an institution needs data to comply with subsection (b), (l), or (n) that are not available to the institution but that are available to the Department or a Federal agency, the Secretary or the head of such agency shall provide or make available such information to the institution.

“(p) Reports relating to clinical training programs.—

“(1) REPORT ON CLINICAL TRAINING PROGRAM AGREEMENTS.—

“(A) IN GENERAL.—Beginning in the year in which the Higher Education Affordability Act is enacted, an eligible institution that participates in any program under this title shall prepare and submit a report to the Secretary containing the information described in subparagraph (C), for every year in which the eligible institution has an agreement with a hospital or health facility, through which—

“(i) the eligible institution agrees to provide funding or other benefits to the hospital or health facility; and

“(ii) that hospital or health facility provides opportunities for students at the institution to participate in a clinical training program.

“(B) TIMING.—Following the year in which the Higher Education Affordability Act is enacted, the report described in this paragraph shall be submitted not more than 30 days after the end of any year for which a report is required to comply with subparagraph (A).

“(C) CONTENTS OF REPORT.—The report described in this paragraph shall include the following:

“(i) The amount of any payments from the institution of higher education to a hospital or health facility during the period covered by the report, and the precise terms of any agreement under which such amounts are determined.

“(ii) Any conditions associated with the transfer of money or the provision of clinical training program opportunities that are part of the agreement described in subparagraph (A).

“(iii) Any memorandum of understanding between the institution of higher education, or an alumni association or foundation affiliated with or related to such institution, and a hospital or health facility, that directly or indirectly relates to any aspect of any agreement referred to in subparagraph (A) or controls or directs any obligations or distribution of benefits between or among any such entities.

“(iv) For each hospital or health facility that has an agreement described in subparagraph (A) with the institution, the number of clinical training positions at the hospital or health facility that are reserved for students at that institution.

“(2) REPORT ON CHARITABLE DONATIONS.—

“(A) IN GENERAL.—Beginning in the year in which the Higher Education Affordability Act is enacted, and annually thereafter, an eligible institution shall prepare and submit to the Secretary a report containing the information described in subparagraph (C) if—

“(i) the eligible institution made a charitable donation to a hospital or health facility in any of the previous 3 years; and

“(ii) the number of students from the eligible institution who participate in any clinical training program at the hospital or health facility where such a donation was made increases by more than 5 students or 10 percent, whichever is less, as compared to the number of such students who participated in a clinical training program at that hospital or health facility during the first year in the previous 3-year period.

“(B) TIMING.—Following the year in which the Higher Education Affordability Act is enacted, the report described in subparagraph (A) shall be submitted not more than 30 days after the end of any year for which a report is required to comply with subparagraph (A).

“(C) CONTENTS OF REPORT.—The report described in this paragraph shall include the following:

“(i) The amount of each charitable donation that was made in the previous 3-year period by the eligible institution to a hospital or health facility.

“(ii) The number of students from the eligible institution who participate in any clinical training program at the hospital or health facility where each such donation was made—

“(I) during the year in which the report is submitted; and

“(II) during the first year in the previous 3-year period covered by the report.

“(3) AGGREGATION BY INSTITUTION.—The information required to be reported in this subsection shall include, and shall be aggregated with respect to, each institution of higher education and each alumni association or foundation affiliated with or related to such institution. For any year in which an institution is required to submit a report described under paragraph (1) and a report described under paragraph (2), the institution may submit a single report for that year containing all of the information required under paragraphs (1) and (2).

“(4) REPORT TO CONGRESS.—The Secretary, in conjunction with the Secretary of Health and Human Services, shall submit to Congress, and make available to the public, an annual report that lists the reports submitted to the Secretary by each institution of higher education in accordance with this subsection.

“(5) PUBLIC DISCLOSURE.—Each eligible institution described in paragraph (1) or (2) of this subsection shall make readily available the reports described in such paragraph (as applicable), through appropriate publications, mailings, and electronic media to the general public.

“(6) DEFINITIONS.—In this subsection:

“(A) CLINICAL TRAINING PROGRAM.—The term ‘clinical training program’ means any program at, or associated or affiliated with, a hospital or health facility (or any of a hospital’s affiliates or health facility's affiliates), the completion of which fulfills a requirement that is necessary to receive a license, certificate, specialized accreditation, or other academically related pre-condition necessary under Federal or State law for a health profession.

“(B) HEALTH FACILITY.—The term ‘health facility’ has the meaning given that term in section 804(d).

“(C) HOSPITAL.—The term ‘hospital’ has the meaning given that term in section 1861 of the Social Security Act (42 U.S.C. 1395x).”.

(b) Effect on changes to campus safety provisions on other laws.—Nothing in the amendments made by subsection (a)(3), shall be construed to invalidate or limit rights, remedies, procedures, or legal standards available to victims of discrimination under any other Federal law or law of a State or political subdivision of a State, including title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), section 504 or 505 of the Rehabilitation Act of 1973 (29 U.S.C. 794, 794a), or the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.). The obligations imposed by this Act are in addition to those imposed by title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).

(c) Effective date for termination of income-Sensitive repayment plan reference.—The amendment made by subsection (a)(2) shall take effect on the date that is 1 year after the date of enactment of this Act.

SEC. 487.