[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 472 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 472

  To amend the Higher Education Act of 1965 to address the issues of 
                college affordability and transparency.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 16, 2007

  Mr. McKeon (for himself, Mr. Keller of Florida, Mr. Castle, and Mr. 
    Baker) introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
  To amend the Higher Education Act of 1965 to address the issues of 
                college affordability and transparency.

    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 ``College Affordability and 
Transparency Act of 2007''.

SEC. 2. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    Section 131 of the Higher Education Act of 1965 (20 U.S.C. 1015) is 
amended to read as follows:

``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) provide students and families with an easy-to-use, 
        comprehensive web-based tool for researching and comparing 
        institutions of higher education;
            ``(2) increase the transparency of college cost, price, and 
        financial aid; and
            ``(3) raise public awareness of information available about 
        postsecondary education, particularly among low-income 
        families, non-traditional student populations, and first-
        generation college students.
    ``(b) College Opportunity On-Line (COOL) Website Re-Design 
Process.--In carrying out this section, the Commissioner of Education 
Statistics--
            ``(1) shall identify the data elements that are of greatest 
        importance to prospective students, enrolled students, and 
        their families, paying particular attention to low-income, non-
        traditional student populations, and first-generation college 
        students;
            ``(2) shall convene a group of individuals with expertise 
        in the collection and reporting of data related to institutions 
        of higher education to--
                    ``(A) determine the relevance of particular data 
                elements to prospective students, enrolled students, 
                and families;
                    ``(B) assess the cost-effectiveness of various ways 
                in which institutions of higher education might produce 
                relevant data;
                    ``(C) determine the general comparability of the 
                data across institutions of higher education;
                    ``(D) make recommendations regarding the inclusion 
                of specific data items and the most effective and least 
                burdensome methods of collecting and reporting useful 
                data from institutions of higher education; and
            ``(3) shall ensure that the redesigned COOL website--
                    ``(A) uses, to the extent practicable, data 
                elements currently provided by institutions of higher 
                education to the Secretary;
                    ``(B) includes clear and uniform information 
                determined to be relevant to prospective students, 
                enrolled students, and families;
                    ``(C) provides comparable information, by ensuring 
                that data are based on accepted criteria and common 
                definitions;
                    ``(D) includes a sorting function that permits 
                users to customize their search for and comparison of 
                institutions of higher education based on the 
                information identified through the process as 
                prescribed in paragraph (1) as being of greatest 
                relevance to choosing an institution of higher 
                education.
    ``(c) Data Collection.--
            ``(1) Data system.--The Commissioner of Education 
        Statistics shall continue to redesign the relevant parts of the 
        Integrated Postsecondary Education Data System to include 
        additional data as required by this section and to continue to 
        improve the usefulness and timeliness of data collected by such 
        systems in order to inform consumers about institutions of 
        higher education.
            ``(2) College consumer profile.--The Secretary shall 
        continue to publish on the COOL website, for each academic year 
        and in accordance with standard definitions developed by the 
        Commissioner of Education Statistics (including definitions 
        developed under section 131(a)(3)(A) as in effect on the day 
        before the date of enactment of the College Affordability and 
        Transparency Act of 2007), from at least all institutions of 
        higher education participating in programs under title IV the 
        following information:
                    ``(A) The tuition and fees charged for a first-
                time, full-time, full-year undergraduate student.
                    ``(B) The room and board charges for a first-time, 
                full-time, full-year undergraduate student.
                    ``(C) The price of attendance for a first-time, 
                full-time, full-year undergraduate student, consistent 
                with the provisions of section 472.
                    ``(D) The average amount of financial assistance 
                received by a first-year, full-time, full-year 
                undergraduate student, including--
                            ``(i) each type of assistance or benefits 
                        described in 428(a)(2)(C)(ii);
                            ``(ii) institutional and other assistance; 
                        and
                            ``(iii) Federal loans under parts B, D, and 
                        E of title IV.
                    ``(E) The number of first-time, full-time, full-
                year undergraduate students receiving financial 
                assistance described in each clause of subparagraph 
                (D).
                    ``(F) The institutional instructional expenditure 
                per full-time equivalent student.
                    ``(G) Student enrollment information, including 
                information on the number and percentage of full-time 
                and part-time students, the number and percentage of 
                resident and non-resident students.
                    ``(H) Faculty-to-student ratios.
                    ``(I) Faculty information, including the total 
                number of faculty and the percentage of faculty who are 
                full-time employees of the institution and the 
                percentage who are part-time.
                    ``(J) Completion and graduation rates of 
                undergraduate students, identifying whether the 
                completion or graduation rates are from a 2-year or 4-
                year program of instruction and, in the case of a 2-
                year program of instruction, the percentage of students 
                who transfer to 4-year institutions prior or subsequent 
                to completion or graduation.
                    ``(K) A link to the institution of higher education 
                with information of interest to students including 
                mission, accreditation, student services (including 
                services for students with disabilities), transfer of 
                credit policies and, if appropriate, placement rates 
                and other measures of success in preparing students for 
                entry into or advancement in the workforce.
                    ``(L) The college affordability information 
                elements specified in subsection (d).
                    ``(M) Any additional information that the Secretary 
                may require.
    ``(d) College Affordability Information Elements.--The college 
affordability information elements required by subsection (c)(2)(L) 
shall include, for each institution submitting data--
            ``(1) the sticker price of the institution for the 3 most 
        recent academic years;
            ``(2) the net tuition price of the institution for the 3 
        most recent academic years;
            ``(3) the percentage change in both the sticker price and 
        the net tuition price over the 3-year time period that is being 
        reported;
            ``(4) the percentage change in the CPI over the same time 
        period; and
            ``(5) whether the institution has been placed on 
        affordability alert status as required by subsection (e)(3).
    ``(e) Outcomes and Actions.--
            ``(1) Response from institution.--Effective on June 30, 
        2008, an institution that increases its sticker price at a 
        percentage rate for any 3-year interval ending on or after that 
        date that exceeds two times the rate of change in the CPI over 
        the same time period shall provide a report to the Secretary, 
        in such a form, at such time, and containing such information 
        as the Secretary may require. Such report shall be published by 
        the Secretary on the COOL website, and shall include--
                    ``(A) a description of the factors contributing to 
                the increase in the institution's costs and in the 
                tuition and fees charged to students; and
                    ``(B) if determinations of tuition and fee 
                increases are not within the exclusive control of the 
                institution, a description of the agency or 
                instrumentality of State government or other entity 
                that participates in such determinations and the 
                authority exercised by such agency, instrumentality, or 
                entity.
            ``(2) Quality-efficiency task forces.--
                    ``(A) Required.--Each institution subject to 
                paragraph (1) that has a percentage change in its 
                sticker price that is in the highest 5 percent of all 
                institutions subject to paragraph (1) shall establish a 
                quality-efficiency task force to review the operations 
                of such institution.
                    ``(B) Membership.--Such task force shall include 
                administrators, business and civic leaders, and 
                faculty, and may include students, trustees, parents of 
                students, and alumni of such institution.
                    ``(C) Functions.--Such task force shall analyze 
                institutional operating costs in comparison with such 
                costs at other institutions within the class of 
                institutions. Such analysis should identify areas 
                where, in comparison with other institutions in such 
                class, the institution operates more expensively to 
                produce a similar result. Any identified areas should 
                then be targeted for in-depth analysis for cost 
                reduction opportunities.
                    ``(D) Report.--The results of the analysis by a 
                quality-efficiency task force under this paragraph 
                shall be made available to the public on the COOL 
                website.
            ``(3) Consequences for 2-year continuation of failure.--If 
        the Secretary determines that an institution that is subject to 
        paragraph (1)) has failed to reduce the subsequent increase in 
        sticker price below two times the rate of change in the CPI for 
        2 consecutive academic years subsequent to the 3-year interval 
        used under paragraph (1), the Secretary shall place the 
        institution on affordability alert status.
            ``(4) Exemptions.--Notwithstanding paragraph (3), an 
        institution shall not be placed on affordability alert status 
        if, for any 3-year interval for which sticker prices are 
        computed under paragraph (1)--
                    ``(A) with respect the the class of institutions 
                described in paragraph (6) to which the institution 
                belongs, the sticker price of the institution is in the 
                lowest quartile of institutions within such class, as 
                determined by the Secretary, during the last year of 
                such 3-year interval; or
                    ``(B) the institution has a percentage change in 
                its sticker price computed under paragraph (1) that 
                exceeds two times the rate of change in the CPI over 
                the same time period, but the dollar amount of the 
                sticker price increase is less than $500.
            ``(5) Information to state agencies.--Any institution that 
        reports under paragraph (1)(B) that an agency or 
        instrumentality of State government or other entity 
        participates in the determinations of tuition and fee increases 
        shall, prior to submitting any information to the Secretary 
        under this subsection, submit such information to, and request 
        the comments and input of, such agency, instrumentality, or 
        entity. With respect to any such institution, the Secretary 
        shall provide a copy of any communication by the Secretary with 
        that institution to such agency, instrumentality, or entity.
            ``(6) Classes of institutions.--For purposes of this 
        subsection, the classes of institutions shall be those sectors 
        used by the Integrated Postsecondary Education Data System, 
        based on whether the institution is public, nonprofit private, 
        or for-profit private, and whether the institution has a 4-
        year, 2-year, or less than 2-year program of instruction.
            ``(7) Data rejection.--Nothing in this subsection shall be 
        construed as allowing the Secretary to reject the data 
        submitted by an individual institution of higher education.
    ``(f) Information to the Public.--The Secretary shall work with 
public and private entities to promote broad public awareness, 
particularly among middle and high school students and their families, 
of the information made available under this section, including by 
distribution to students who participate in or receive benefits from 
means-tested federally funded education programs and other Federal 
programs determined by the Secretary.
    ``(g) Fines.--In addition to actions authorized in section 487(c), 
the Secretary may impose a fine in an amount not to exceed $25,000 on 
an institution of higher education for failing to provide the 
information required by this section in a timely and accurate manner, 
or for failing to otherwise cooperate with the National Center for 
Education Statistics regarding efforts to obtain data under subsections 
(c) and (j) and pursuant to the program participation agreement entered 
into under section 487.
    ``(h) GAO Study and Report.--
            ``(1) GAO study.--The Comptroller General shall conduct a 
        study of the policies and procedures implemented by 
        institutions in increasing the affordability of postsecondary 
        education. Such study shall include information with respect 
        to--
                    ``(A) a list of those institutions that--
                            ``(i) have reduced their sticker prices; or
                            ``(ii) are within the least costly quartile 
                        of institutions within each class described in 
                        subsection (e)(6);
                    ``(B) policies implemented to stem the increase in 
                tuition and fees and institutional costs;
                    ``(C) the extent to which room and board costs and 
                prices changed;
                    ``(D) the extent to which other services were 
                altered to affect tuition and fees;
                    ``(E) the extent to which the institution's 
                policies affected student body demographics and time to 
                completion;
                    ``(F) what, if any, operational factors played a 
                role in reducing tuition and fees;
                    ``(G) the extent to which academic quality was 
                affected, and how;
                    ``(H) if the institution is a public institution, 
                the relationship between State and local appropriations 
                and the institution's tuition and fees;
                    ``(I) the extent to which policies and practices 
                reducing costs and prices may be replicated from one 
                institution to another; and
                    ``(J) other information as necessary to determine 
                best practices in increasing the affordability of 
                postsecondary education.
            ``(2) Interim and final reports.-- The Comptroller General 
        shall submit an interim and a final report regarding the 
        findings of the study required by paragraph (1) to the 
        appropriate authorizing committees of Congress. The interim 
        report shall be submitted not later than July 31, 2011, and the 
        final report shall be submitted not later than July 31, 2013.
    ``(i) Student Aid Recipient Survey.--
            ``(1) Survey required.--The Secretary shall conduct a 
        survey of student aid recipients under title IV on a regular 
        cycle and State-by-State basis, but not less than once every 4 
        years--
                    ``(A) to identify the population of students 
                receiving Federal student aid;
                    ``(B) to describe the income distribution and other 
                socioeconomic characteristics of federally aided 
                students;
                    ``(C) to describe the combinations of aid from 
                State, Federal, and private sources received by 
                students from all income groups;
                    ``(D) to describe the debt burden of educational 
                loan recipients and their capacity to repay their 
                education debts, and the impact of such debt burden on 
                career choices;
                    ``(E) to describe the role played by the price of 
                postsecondary education in the determination by 
                students of what institution to attend; and
                    ``(F) to describe how the increased costs of 
                textbooks and other instructional materials affects the 
                costs of postsecondary education to students.
            ``(2) Survey design.--The survey shall be representative of 
        full-time and part-time, undergraduate, graduate, and 
        professional and current and former students in all types of 
        institutions, and designed and administered in consultation 
        with the Congress and the postsecondary education community.
            ``(3) Dissemination.--The Commissioner of Education 
        Statistics shall disseminate the information resulting from the 
        survey in both printed and electronic form.
    ``(j) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(k) Definitions.--For the purposes of this section:
            ``(1) Net tuition price.--The term `net tuition price' 
        means the average tuition and fees charged to a first-time, 
        full-time, full-year undergraduate student, minus the average 
        grants provided to such students, for any academic year.
            ``(2) Sticker price.--The term `sticker price' means the 
        average tuition and fees charged to a first-time, full-time, 
        full-year undergraduate student by an institution of higher 
        education for any academic year.
            ``(3) CPI.--The term `CPI' means the Consumer Price Index-
        All Urban Consumers (Current Series).''.

SEC. 3. COLLEGE AFFORDABILITY DEMONSTRATION PROJECT.

    Part G of title IV is amended by inserting after section 486 (20 
U.S.C. 1093) the following new section:

``SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROJECT.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to provide, through a college affordability 
        demonstration project, for increased innovation in the delivery 
        of higher education and student financial aid in a manner 
        resulting in reduced costs for students as well as the 
        institution by employing one or more strategies including 
        accelerating degree or program completion, increasing 
        availability of, and access to, distance components of 
        education delivery, engaging in collaborative arrangements with 
        other institutions and organizations, and other alternative 
        methodologies; and
            ``(2) to help determine--
                    ``(A) the most effective means of delivering 
                student financial aid as well as quality education;
                    ``(B) the specific statutory and regulatory 
                requirements that should be altered to provide for more 
                efficient and effective delivery of student financial 
                aid, as well as access to high quality distance 
                education programs, resulting in a student more 
                efficiently completing postsecondary education; and
                    ``(C) the most effective methods of obtaining and 
                managing institutional resources.
    ``(b) Demonstration Project Authorized.--
            ``(1) In general.--In accordance with the purposes 
        described in subsection (a) and the provisions of subsection 
        (d), the Secretary is authorized to select not more than 100 
        institutions of higher education, including those applying as 
        part of systems or consortia of such institutions, for 
        voluntary participation in the College Affordability 
        Demonstration Project in order to enable participating 
        institutions to carry out such purposes by providing programs 
        of postsecondary education, and making available student 
        financial assistance under this title to students enrolled in 
        those programs, in a manner that would not otherwise meet the 
        requirements of this title.
            ``(2) Waivers.--The Secretary is authorized to waive for 
        any institutions of higher education, or any system or 
        consortia of institutions of higher education, selected for 
        participation in the College Affordability Demonstration 
        Project, any requirements of this Act or the regulations 
        thereunder as deemed necessary by the Secretary to meet the 
        purpose described in subsection (a)(1), and shall make a 
        determination that the waiver can reasonably be expected to 
        result in reduced costs to students or institutions without an 
        increase in Federal program costs. The Secretary may not waive 
        under this paragraph the maximum award amounts for an academic 
        year or loan period.
            ``(3) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraph (B), only an institution of higher 
                education that is eligible to participate in programs 
                under this title shall be eligible to participate in 
                the demonstration project authorized under this 
                section.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102(a)(1)(C) shall not 
                be eligible to participate in the demonstration project 
                authorized under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution or system of 
        institutions desiring to participate in the demonstration 
        project under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.
            ``(2) Contents of applications.--Each application for the 
        college affordability demonstration project shall include at 
        least the following:
                    ``(A) a description of the institution or system or 
                consortium of institutions and what quality assurance 
                mechanisms are in place to ensure the integrity of the 
                Federal financial aid programs;
                    ``(B) a description of the innovation or 
                innovations being proposed and the affected programs 
                and students, including--
                            ``(i) a description of any collaborative 
                        arrangements with other institutions or 
                        organizations to reduce costs;
                            ``(ii) a description of any expected 
                        economic impact of participation in the project 
                        within the community in which the institution 
                        is located; and
                            ``(iii) a description of any means the 
                        institution will employ to reduce the costs of 
                        instructional materials, such as textbooks;
                    ``(C) a description of each regulatory or statutory 
                requirement for which waivers are sought, with a reason 
                for each waiver;
                    ``(D) a description of the expected outcomes of the 
                program changes proposed, including the estimated 
                reductions in costs both for the institution and for 
                students;
                    ``(E) an assurance from each institution in a 
                system or consortium of a commitment to fulfill its 
                role as described in the application;
                    ``(F) an assurance that the participating 
                institution or system of institutions will offer full 
                cooperation with the ongoing evaluations of the 
                demonstration project provided for in this section; and
                    ``(G) any other information or assurances the 
                Secretary may require.
    ``(d) Selection.--In selecting institutions to participate in the 
demonstration project under this section, the Secretary shall take into 
account--
            ``(1) the number and quality of applications received, 
        determined on the basis of the contents required by subsection 
        (c)(2);
            ``(2) the Department's capacity to oversee and monitor each 
        institution's participation;
            ``(3) an institution's--
                    ``(A) financial responsibility;
                    ``(B) administrative capability;
                    ``(C) program or programs being offered via 
                distance education, if applicable;
                    ``(D) student completion rates; and
                    ``(E) student loan default rates; and
            ``(4) the participation of a diverse group of institutions 
        with respect to size, mission, and geographic distribution.
    ``(e) Notification.--The Secretary shall make available to the 
public and to the authorizing committees a list of institutions 
selected to participate in the demonstration project authorized by this 
section. Such notice shall include a listing of the specific statutory 
and regulatory requirements being waived for each institution and a 
description of the innovations being demonstrated.
    ``(f) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration project authorized under this section on a 
        biennial basis. Such evaluations specifically shall review--
                    ``(A) the extent to which expected outcomes, 
                including the estimated reductions in cost, were 
                achieved;
                    ``(B) the number and types of students 
                participating in the programs offered, including the 
                progress of participating students toward recognized 
                certificates or degrees and the extent to which 
                participation in such programs increased;
                    ``(C) issues related to student financial 
                assistance associated with the innovations undertaken;
                    ``(D) effective technologies and alternative 
                methodologies for delivering student financial 
                assistance;
                    ``(E) the extent of the cost savings to the 
                institution, the student, and the Federal Government 
                resulting from the waivers provided, and an estimate as 
                to future cost savings for the duration of the 
                demonstration project;
                    ``(F) the extent to which students saved money by 
                completing their postsecondary education sooner;
                    ``(G) the extent to which the institution reduced 
                its tuition and fees and its costs by participating in 
                the demonstration project
                    ``(H) the extent to which any collaborative 
                arrangements with other institutions or organizations 
                have reduced the participating institution's costs; and
                    ``(I) the extent to which statutory or regulatory 
                requirements not waived under the demonstration project 
                present difficulties for students or institutions.
            ``(2) Policy analysis.--The Secretary shall review current 
        policies and identify those policies that present impediments 
        to the implementation of innovations that result in cost 
        savings and in expanding access to education.
            ``(3) Reports.--The Secretary shall provide a report to the 
        authorizing committees on a biennial basis regarding--
                    ``(A) the demonstration project authorized under 
                this section;
                    ``(B) the results of the evaluations conducted 
                under paragraph (1);
                    ``(C) the cost savings to the Federal Government by 
                the demonstration project authorized by this section; 
                and
                    ``(D) recommendations for changes to increase the 
                efficiency and effective delivery of financial aid.
    ``(g) Oversight.--In conducting the demonstration project 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) ensure compliance of institutions or systems of 
        institutions with the requirements of this title (other than 
        the sections and regulations that are waived under subsection 
        (b)(2));
            ``(2) provide technical assistance to institutions in their 
        application to and participation in the demonstration project;
            ``(3) monitor fluctuations in the student population 
        enrolled in the participating institutions or systems of 
        institutions;
            ``(4) monitor changes in financial assistance provided at 
        the institution; and
            ``(5) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities.
    ``(h) Termination of Authority.--The authority of the Secretary 
under this section shall cease to be effective on October 1, 2012.''.
                                 <all>