110 HR 4149 IH: Truth-in-Tuition Act of U.S. House of Representatives 2007-11-09 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 4149 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.

1.

Short title

This Act may be cited as the Truth-in-Tuition Act of 2007.

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.

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. .

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).