[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4149 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 4149
To limit excessive fluctuations in tuition to help students and
families plan for college costs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 9, 2007
Mr. Patrick J. Murphy of Pennsylvania introduced the following bill;
which was referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To limit excessive fluctuations in tuition to help students and
families plan for college costs.
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 ``Truth-in-Tuition Act of 2007''.
SEC. 2. PURPOSE.
It is the purpose of this Act to assist students and families in
multi-year financial planning for the full cost of a post-secondary
education program, while not restricting the ability of institutions of
higher education to raise tuition and fee levels from one year to the
next.
SEC. 3. COMMITMENT TO AND NOTICE OF TUITION LEVELS.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)) is amended by adding at the end the following new paragraph:
``(24)(A) The institution will provide to each perspective
cohort of students applying to enter a program of undergraduate
or graduate education a binding, multi-year tuition and fee
schedule for that cohort of students for the duration of the
normal length of the relevant undergraduate or graduate
program.
``(B) At the discretion of the institution, the multi-year
tuition and fee schedules required by subparagraph (A)--
``(i) are not limited in their year-to-year growth;
``(ii) may include a percentage or dollar increase
from one year to the next for a relevant cohort of
students: and
``(iii) may reflect a consistent per year dollar
amount for the normal length of the relevant
undergraduate or graduate program.
``(C) The Secretary shall waive the requirements of
subparagraph (A), and of the binding commitment made therender,
if the institution demonstrates to the Secretary that the
institution is unable to comply because of the occurrence of
one or more events causing the institution severe economic
distress.''.
SEC. 4. INCENTIVES AND REWARDS FOR LOW TUITION.
(a) Rewards for Low Tuition.--
(1) Competitive grants.--The Secretary of Education shall
award grants on a competitive basis to institutions of higher
education that, for academic year 2008-2009 or any succeeding
academic year, have an annual net tuition increase (expressed
as a percentage) for the most recent academic year for which
satisfactory data is available that is equal to or less than
the percentage change in the higher education price index for
such academic year.
(2) Use of funds.--Funds awarded to an institution of
higher education under paragraph (1) shall be distributed by
the institution in the form of need-based grant aid to students
who are eligible for Federal Pell Grants, except that no
student shall receive an amount under this section that would
cause the amount of total financial aid received by such
student to exceed the cost of attendance of the institution.
(b) Rewards for Guaranteed Tuition.--
(1) Bonus.--For each institution of higher education that
the Secretary of Education of Education determines complies
with the requirements of paragraph (2) or (3) of this
subsection, the Secretary of Education shall provide to such
institution a bonus amount. Such institution shall award the
bonus amount first to students who are eligible for Federal
Pell Grants who were in attendance at the institution during
the award year that such institution satisfied the eligibility
criteria for maintaining low tuition and fees, then to students
who are eligible for Federal Pell Grants who were not in
attendance at the institution during such award year, in the
form of need-based aid.
(2) 4-year institutions.--An institution of higher
education that provides a program of instruction for which it
awards a bachelor's degree complies with the requirements of
this paragraph if such institution guarantees that for any
academic year beginning on or after July 1, 2008, and for each
of the 4 succeeding continuous academic years, the net tuition
charged to an undergraduate student will not exceed--
(A) the amount that the student was charged for an
academic year at the time he or she first enrolled in
the institution of higher education, plus
(B) the product of the percentage increase in the
higher education price index for the prior academic
year, or the most recent prior academic year for which
data is available, multiplied by the amount determined
under subparagraph (A).
(3) Less-than 4-year institutions.--An institution of
higher education that does not provide a program of instruction
for which it awards a bachelor's degree complies with the
requirements of this paragraph if such institution guarantees
that for any academic year (or the equivalent) beginning on or
after July 1, 2008, and for each of the 1.5 succeeding
continuous academic years, the net tuition charged to an
undergraduate student will not exceed--
(A) the amount that the student was charged for an
academic year at the time he or she first enrolled in
the institution of higher education, plus
(B) the product of the percentage increase in the
higher education price index for the prior academic
year, or the most recent prior academic year for which
data is available, multiplied by the amount determined
under subparagraph (A).
(c) Maintaining Affordable Tuition.--
(1) Institution reports.--If an institution of higher
education has an increase in annual net tuition (expressed as a
percentage), for the most recent academic year for which
satisfactory data is available, that is greater than the
percentage increase in the higher education price index for
such academic year, the institution or a representative
association is required to submit to the Secretary of Education
the following information, within 6 months of such
determination--
(A) a report on the factors contributing to the
increase in the institution's costs and the increase in
net tuition and fees charged to students, including
identification of the major areas in the institution's
budget with the greatest cost increases;
(B) the institution's 3 most recent Form 990s
submitted to the Internal Revenue Service, as required
under section 6033 of the Internal Revenue Code of
1986;
(C) a description of the major areas of
expenditures in the institution's budget with the
greatest increase for such academic year; and
(D) actions being taken by the institution to
reduce net tuition.
(2) Report to congress.--The Secretary of Education shall
compile the information submitted under this subsection and
shall provide to the relevant authorizing committees an annual
report relating to such information.
(d) Definitions.--In this section:
(1) Net tuition.--The term ``net tuition'' means the
average tuition and fees charged to a full-time undergraduate
student by an institution of higher education for an academic
year, minus the average grant amount received by such a student
for such academic year.
(2) Higher education price index.--The term ``higher
education price index'' means the higher education price index
developed pursuant to section 133(b).
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning provided in
section 102 of Higher Education Act of 1965 (20 U.S.C. 1002).
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