[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4860 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4860

 To clarify that a closure of a branch or campus of an institution of 
 higher education may qualify a borrower for loan discharge under the 
         Higher Education Act of 1965, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2014

   Ms. Hahn introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To clarify that a closure of a branch or campus of an institution of 
 higher education may qualify a borrower for loan discharge under 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 ``Protecting Students from Failing 
Institutions Act''.

SEC. 2. CLOSURE OF A CAMPUS OR BRANCH OF AN INSTITUTION OF HIGHER 
              EDUCATION.

    Section 437(c) of the Higher Education Act of 1965 (20 U.S.C. 
1087(c)) is amended--
            (1) in paragraph (1), by inserting ``or the closure of a 
        campus or branch of the institution,'' after ``closure of the 
        institution'';
            (2) in paragraph (3)--
                    (A) by inserting ``or the closing of a campus or 
                branch of the institution'' after ``closing of the 
                institution''; and
                    (B) by inserting before the period the following: 
                ``and shall not count towards the student's duration 
                limit for Federal Pell Grants under section 
                401(c)(5)''; and
            (3) by adding at the end the following:
            ``(6) Campus or branch closure.--A borrower who withdraws 
        from an institution not more than 120 days before the date of 
        closure of the campus or branch of the institution in which the 
        borrower was enrolled and such closure would have prevented the 
        borrower from completing the program in which the borrower was 
        enrolled shall, for purposes of discharging such borrower's 
        loans under paragraph (1) and determining the borrower's 
        eligibility for additional assistance under this title in 
        accordance with paragraphs (3) and (4), be considered to be a 
        student who is unable to complete the program in which such 
        student is enrolled due to the closure of the campus or branch 
        of the institution.
            ``(7) Federal pell grants.--In a case of a borrower that 
        receives a Federal Pell Grant under subpart 1 of part A of this 
        title for an academic year for enrollment in a program at a 
        campus or branch of an institution and such campus or branch 
        closes, even if for purposes of paragraph (1) the borrower is 
        considered to be able to complete the program in which such 
        borrower is enrolled, the borrower may use the remaining amount 
        of the Federal Pell Grant for such academic year at another 
        institution.
            ``(8) Definition.--For purposes of this subsection, the 
        terms `campus' and `branch' include the term `branch campus' as 
        defined in section 600.2 of title 34, Code of Federal 
        Regulations (or a successor regulation).''.
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