[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3368 Introduced in Senate (IS)]
<DOC>
114th CONGRESS
2d Session
S. 3368
To amend the Higher Education Act of 1965 to improve college access and
college completion for all students.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 21, 2016
Mr. Coons (for himself and Mr. Isakson) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to improve college access and
college completion for all students.
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 ``Access, Success, and Persistence in
Reshaping Education Act of 2016'' or the ``ASPIRE Act''.
SEC. 2. IMPROVING COLLEGE ACCESS AND COMPLETION FOR ALL STUDENTS.
(a) In General.--Part G of title IV of the Higher Education Act of
1965 (20 U.S.C. 1088 et seq.) is amended by adding at the end the
following:
``SEC. 493E. IMPROVING COLLEGE ACCESS AND COMPLETION FOR ALL STUDENTS.
``(a) Definitions.--Except as otherwise provided in this section:
``(1) Average student-related expenditure.--
``(A) In general.--The term `average student-
related expenditure' means, with respect to the most
recent fiscal year ending before the October of an
academic year, the total amount of an institution's
instructional expenditures, student services
expenditures, and the proportion of academic support
expenditures that goes towards instruction, divided by
the number of full-time equivalent undergraduate
students enrolled in the institution for the academic
year.
``(B) Instructional expenditures.--The term
`instructional expenditures'--
``(i) includes--
``(I) expenditures for the
colleges, schools, departments, and
other instructional divisions of the
institution and expenses for
departmental research and public
service that are not separately
budgeted;
``(II) general academic
instruction, occupational and
vocational instruction, community
education, preparatory and adult basic
education, and remedial and tutorial
instruction conducted by the teaching
faculty for the institution's students;
and
``(III) expenses for both credit
and non-credit activities;
``(ii) may include information technology
expenses related to instructional activities if
the institution separately budgets and expenses
information technology resources; and
``(iii) does not include expenses for
academic administration where the primary
function is administration.
``(C) Student services expenditures.--The term
`student services expenditures'--
``(i) includes expenses for admissions,
registrar activities, and activities whose
primary purpose is to contribute to the
emotional and physical well-being of students
and to their intellectual, cultural, and social
development outside the context of the formal
instructional program; and
``(ii) may include information technology
expenses related to student service activities
if the institution separately budgets and
expenses information technology resources,
otherwise these expenses are included in
institutional support.
``(D) Academic support expenditures.--The term
`academic support expenditures' includes--
``(i) expenses of activities and services
that support the institution's primary missions
of instruction, research, and public service,
including--
``(I) the retention, preservation,
and display of educational materials;
``(II) organized activities that
provide support services to the
academic functions of the institution;
``(III) media such as audiovisual
services;
``(IV) academic administration; and
``(V) formally organized and
separately budgeted academic personnel
development and course and curriculum
development expenses; and
``(ii) information technology expenses
related to academic support activities or, if
an institution does not separately budget and
expense information technology resources, the
costs associated with the three primary
programs shall be applied to this function and
the remainder to institutional support.
``(E) Full-time equivalent undergraduate students
enrolled.--The term `full-time equivalent undergraduate
students enrolled' means the number of full-time
undergraduate students enrolled, plus--
``(i) in the case of an institution of
higher education that is a public, 4-year
institution, the number of part-time
undergraduate students enrolled multiplied by
0.403543;
``(ii) in the case of an institution of
higher education that is a private, nonprofit
or for-profit, 4-year institution, the number
of part-time undergraduate students enrolled
multiplied by 0.392857;
``(iii) in the case of an institution of
higher education that is a public, 2-year
institution, the number of part-time
undergraduate students enrolled multiplied by
0.335737; and
``(iv) in the case of an institution of
higher education that is not described in
clause (i), (ii), or (iii), the number of part-
time undergraduate students enrolled multiplied
by 0.397058.
``(2) Institution of higher education.--The term
`institution of higher education' means an institution of
higher education (as defined in section 101(a)) or a
proprietary institution of higher education (as defined in
section 102(b))--
``(A) that predominately awards more bachelor's
degrees than associate's degrees and certificates; and
``(B) that enrolls not less than 30 first-time,
full-time, degree- or certificate-seeking undergraduate
students.
``(3) Low-income or working class student.--The term `low-
income or working class student' means a student who is
eligible to receive a Federal Pell Grant.
``(4) Moderate-income student.--The term `moderate-income
student' means a student who is eligible to receive a Federal
Direct Stafford Loan but not eligible to receive a Federal Pell
Grant.
``(5) Remedial course.--The term `remedial course' means a
course of study that is determined by the institution which
offers such course to be necessary to help a student be
prepared for the pursuit of a first undergraduate bachelor's
degree but does not count for credit toward the degree.
``(6) Underrepresented minority.--The term
`underrepresented minority' means American Indian, Alaskan
Native, Black (not of Hispanic origin), Hispanic (including
persons of Mexican, Puerto Rican, Cuban, and Central or South
American origin), or Pacific Islander minority group.
``(b) Improving College Access.--
``(1) In general.--In order for an institution of higher
education to participate in any student financial assistance
program under this title, the institution shall comply with the
improving college access program under this subsection.
``(2) Calculation of percentages of federal pell grant
recipients.--
``(A) In general.--For academic year 2017-2018 and
for each succeeding academic year, the Secretary shall
determine, for each institution of higher education,
the percentage of bachelor's degree-seeking students
who enrolled at the institution for the first time in a
full-time capacity for the academic year who received a
Federal Pell Grant for such academic year.
``(B) Ranking.--
``(i) In general.--For academic year 2017-
2018 and for each succeeding academic year, the
Secretary shall rank the institutions according
to the percentages determined under
subparagraph (A).
``(ii) Threshold mark.--For academic year
2017-2018 and for each succeeding academic
year, the Secretary shall determine, based on
the rankings under this subparagraph, the
percentage, determined under subparagraph (A),
at which and above which marks the top 95
percent of those institutions ranked.
``(C) Floor reached.--
``(i) Floor mark.--For academic year 2017-
2018, the Secretary shall determine, based on
the rankings under subparagraph (B)(i) for such
academic year, the percentage, determined under
subparagraph (A), at which and above which
marks the top 90 percent of those institutions
ranked.
``(ii) Comparison of threshold mark to
floor mark.--If the threshold mark determined
under subparagraph (B)(ii) for an academic year
is at or above the floor mark determined under
clause (i), no institution shall be subject to
the provisions of paragraph (3) for such
academic year.
``(3) Consequences of low ranking.--
``(A) Notification.--
``(i) In general.--
``(I) In general.--Subject to
paragraph (2)(C)(ii), for academic year
2017-2018 and for each succeeding
academic year, the Secretary shall
notify each institution of higher
education that is in the bottom 5
percent of those institutions ranked
under paragraph (2)(B)--
``(aa) that the institution
is in such bottom 5 percent of
those institutions ranked;
``(bb) of the threshold
mark described in paragraph
(2)(B)(ii) that such
institution must meet or rise
above; and
``(cc) that the institution
has 90 days to appeal to the
Secretary to be removed from
the bottom 5 percent of those
institutions ranked.
``(II) Appeal.--An institution of
higher education that is in the bottom
5 percent of those institutions ranked
under paragraph (2)(B) for an academic
year may appeal to the Secretary,
within 90 days of the notification
under subclause (I), to be removed from
such bottom 5 percent ranking if--
``(aa) the Secretary's
calculation of its ranking is
not accurate, and that
recalculation of such ranking
would raise the ranking of the
institution above the bottom 5
percent of those institutions
ranked;
``(bb) the institution's
average percentage for the
academic year and the 2
preceding academic years of
bachelor's degree-seeking
students who enrolled at the
institution for the first time
in a full-time capacity for the
academic year and the 2
preceding academic years who
received a Federal Pell Grant
for the academic year and the 2
preceding academic years is at
or above the threshold mark
described in paragraph
(2)(B)(ii) for the academic
year; or
``(cc) the institution's
percentage of all bachelor's
degree-seeking students
enrolled at the institution who
received a Federal Pell Grant
for the academic year is
sufficiently high, as
determined by the Secretary.
``(ii) Consumer warning report by the
secretary.--For academic year 2017-2018 and for
each succeeding academic year, the Secretary
shall issue a report, following resolution of
all appeals brought pursuant to the 90-day
appeal period, listing each institution of
higher education that is in the bottom 5
percent of those institutions ranked under
paragraph (2)(B), and not removed from such
ranking in accordance with clause (i)(II),
along with the percentage of bachelor's degree-
seeking students who enrolled at each such
institution for the first time in a full-time
capacity for the academic year who received a
Federal Pell Grant for such academic year.
``(B) Plan.--An institution of higher education
that is included in the report under subparagraph
(A)(ii) shall develop a plan, not later than 1 year
after the date of the notification under subparagraph
(A)(i)(I) and in consultation with the Secretary, to
meet or rise above the threshold mark described in
paragraph (2)(B)(ii) applicable for the academic year
for which this institution was included in the report
under subparagraph (A)(ii) that triggered such
determination.
``(C) Calculation of average.--For each institution
of higher education that is included in the report
under subparagraph (A)(ii) for an academic year, the
Secretary shall--
``(i) grant the institution a hold harmless
year for the academic year succeeding the
academic year for which the institution
receives notification under subparagraph
(A)(i)(I); and
``(ii) determine the average percentage
over the 3 succeeding academic years following
the hold harmless academic year described in
clause (i) of bachelor's degree-seeking
students who enrolled at the institution for
the first time in a full-time capacity for each
of such 3 succeeding academic years who
received a Federal Pell Grant for each of such
3 succeeding academic years.
``(D) Failure to improve.--
``(i) In general.--Except as provided in
clause (ii), if an institution of higher
education has an average percentage determined
under subparagraph (C)(ii) that is less than
the threshold mark described in paragraph
(2)(B)(ii) for the academic year for which the
institution was included in the report under
subparagraph (A)(ii) that triggered such
determination, the Secretary shall impose on
such institution a penalty described in
subparagraph (E).
``(ii) Delay of penalty.--
``(I) In general.--The Secretary
may delay imposing a penalty described
in subparagraph (E) with respect to an
institution that has an average
percentage determined under
subparagraph (C)(ii) that is less than
the threshold mark described in
paragraph (2)(B)(ii) for the academic
year for which the institution was
included in the report under
subparagraph (A)(ii) that triggered
such determination, but whose
percentage determined for the most
recent academic year is at or above
such threshold mark.
``(II) Period of delay.--The
Secretary may delay imposing a penalty
under subclause (I) for a period of not
more than 2 years.
``(III) New 3-year average.--With
respect to an institution for which the
Secretary delays imposing a penalty
under this clause for a period of not
more than 2 years, the Secretary, at
the end of such delay period, shall
determine the average percentage over
the 3 preceding years of bachelor's
degree-seeking students who enrolled at
the institution for the first time in a
full-time capacity for each of such 3
preceding academic years and who
received a Federal Pell Grant for each
of such 3 preceding academic years. If
the institution has an average
percentage that is less than the
threshold mark described in paragraph
(2)(B)(ii) for the academic year for
which the institution was included in
the report under subparagraph (A)(ii)
that triggered such determination, the
Secretary shall impose on such
institution a penalty described in
subparagraph (E).
``(E) Penalties.--
``(i) In general.--The Secretary shall
impose a penalty under this paragraph in an
amount determined under this subparagraph.
``(ii) Amount of penalty.--
``(I) In general.--The penalty to
be imposed under this subparagraph with
respect to an institution shall be a
fee-per-student penalty, in which the
number of additional students
determined with respect to such
institution under subclause (II) for an
academic year is multiplied by the
institution's average student-related
expenditure for the academic year.
``(II) Number of additional
students to be determined.--With
respect to an institution of higher
education that is subject to the
penalty under this subparagraph, the
Secretary shall determine the number of
additional students the institution
would need to enroll as Federal Pell
Grant recipients to meet the threshold
mark described in paragraph (2)(B)(ii).
Such number shall be calculated by
determining the percentage equal to
subtracting the average percentage
determined under subparagraph (C)(ii)
from the threshold mark described in
paragraph (2)(B)(ii) for the academic
year for which the institution was
included in the report under
subparagraph (A)(ii) that triggered
such determination, and multiplying
such determined percentage by the
average number of bachelor's degree-
seeking students who enrolled at the
institution for the first time in a
full-time capacity for an academic year
over the 3 preceding academic years.
``(iii) Collection of penalty fees.--The
Secretary shall--
``(I) collect penalty fees imposed
under this paragraph not later than 1
year after such penalty is imposed; and
``(II) use the fees collected under
subclause (I) to fund the completion
improvement program under subsection
(d) and the completion bonus program
under subsection (e).
``(iv) Prohibition on use of institutional
need-based grant aid to pay fees.--An
institution of higher education that is subject
to a penalty under this paragraph may not, in
order to pay such penalty fee--
``(I) reduce the amount of
institutional need-based grant aid
awarded to students to attend the
institution; or
``(II) increase tuition or fees.
``(F) Appeals.--
``(i) In general.--An institution of higher
education that is subject to a penalty under
this paragraph may appeal the decision to
impose such penalty or the amount of the
penalty to the Secretary.
``(ii) Content of appeal.--The appeals
process shall permit the institution to
demonstrate, to the satisfaction of the
Secretary--
``(I) that there was a
miscalculation of the penalty amount;
or
``(II) that there is some
unforeseen and extreme circumstance
that should warrant a waiver from such
penalty or a reduction in the amount of
such penalty.
``(c) Improving Completion.--
``(1) In general.--
``(A) In general.--In order for an institution of
higher education to participate in any student
financial assistance program under this title, the
institution shall comply with the improving college
completion program under this subsection.
``(B) Election by public or other nonprofit
institutions.--An institution of higher education that
is a public or other nonprofit institution of higher
education may elect for the Secretary not to impose on
such institution a penalty described in paragraph
(3)(E). An institution that makes such election shall
not be eligible to receive a grant under the completion
improvement program under subsection (d) or the
completion bonus program under subsection (e).
``(C) Definition of institution of higher
education.--In this subsection, the term `institution
of higher education' means an institution of higher
education (as defined in section 101(a)) or a
proprietary institution of higher education (as defined
in section 102(b))--
``(i) that predominately awards more
bachelor's degrees than associate's degrees and
certificates; and
``(ii) that enrolls not less than 30 first-
time, full-time bachelor's degree- or
equivalent-degree-seeking undergraduate
students.
``(2) Calculation of percentages of completion.--
``(A) In general.--For academic year 2017-2018 and
for each succeeding academic year, the Secretary shall
determine, for each institution of higher education
that participates in any program under this title, the
percentage of first-time, full-time bachelor's degree-
seeking students who enrolled at the institution who
graduate within 6 years.
``(B) Ranking.--
``(i) In general.--For academic year 2017-
2018 and for each succeeding academic year, the
Secretary shall rank the institutions according
to the percentages determined under
subparagraph (A).
``(ii) Threshold mark.--For academic year
2017-2018 and for each succeeding academic
year, the Secretary shall determine, based on
the rankings under clause (i), the percentage,
determined under subparagraph (A), at which and
above which marks the top 95 percent of the
institutions ranked.
``(iii) Rankings for peer groups of
institutions.--
``(I) In general.--For academic
year 2017-2018 and for each succeeding
academic year, the Secretary shall rank
the institutions according to the
percentages determined under
subparagraph (A) in each peer group of
institutions described in subclause
(II).
``(II) Peer groups.--For academic
year 2017-2018 and for each succeeding
academic year, the Secretary shall
establish peer groups of institutions.
Each peer group shall include
approximately 10 to 15 institutions
that are included in such group based
on similar institutional
characteristics. Such characteristics
shall include the following:
``(aa) The percentage of
first-time, full-time students
enrolled at the institution who
receive a Federal Pell Grant.
``(bb) The average SAT or
ACT score of first-time, full-
time students enrolled at the
institution.
``(cc) The average high
school GPA of first-time, full-
time students enrolled at the
institution.
``(dd) The institution's
average student-related
expenditure.
``(ee) Other
characteristics that the
Secretary determines are
appropriate.
``(C) Floor reached.--
``(i) Floor mark.--For academic year 2017-
2018, the Secretary shall determine, based on
the rankings under subparagraph (B)(i) for such
academic year, the percentage, determined under
subparagraph (A), at which and above which
marks the top 90 percent of those institutions
ranked.
``(ii) Comparison of threshold mark to
floor mark.--If the threshold mark determined
under subparagraph (B)(ii) for an academic year
is at or above the floor mark determined under
clause (i), no institution shall be subject to
the provisions of paragraph (3) for such
academic year.
``(iii) Consumer warnings.--If the
threshold mark determined under subparagraph
(B)(ii) for an academic year is at or above the
floor mark determined under clause (i)--
``(I) each institution with a
percentage determined under
subparagraph (A) that is less than the
floor mark shall publish a consumer
warning in a prominent place on the
homepage of the institution's website
of the percentage of first-time, full-
time bachelor's degree-seeking students
who enrolled at the institution who
graduate within 6 years for such
academic year and at the beginning of
each subsequent academic year until--
``(aa) the institution has
a percentage determined under
subparagraph (A) that is at or
above the floor mark; or
``(bb) the threshold mark
determined under subparagraph
(B) is less than the floor
mark; and
``(II) the Secretary shall issue a
report that lists each institution
described in subclause (I) along with
the percentage of first-time, full-time
bachelor's degree-seeking students who
enrolled at the institution who
graduate within 6 years for such
academic year.
``(3) Consequences of low ranking.--
``(A) In general.--
``(i) In general.--Subject to paragraph
(2)(C)(ii), for academic year 2017-2018 and for
each succeeding academic year, the Secretary
shall notify each institution of higher
education that is in the bottom 5 percent of
those institutions ranked under paragraph
(2)(B)(i)--
``(I) that the institution is in
such bottom 5 percent of those
institutions ranked and whether the
institution is in the top two-thirds of
institutions ranked in the
institution's peer group described in
paragraph (2)(B)(iii) for the academic
year;
``(II) of the applicable threshold
mark described in paragraph (2)(B)(ii)
that such institution must meet or rise
above; and
``(III) that the institution has 90
days to appeal to the Secretary to be
removed from the bottom 5 percent of
those institutions ranked.
``(ii) Appeal.--An institution of higher
education that is in the bottom 5 percent of
those institutions ranked under paragraph
(2)(B)(i) for an academic year may appeal to
the Secretary, within 90 days of the
notification under clause (i), to be removed
from such bottom 5 percent ranking if--
``(I) the Secretary's calculation
of its ranking is not accurate, and
that recalculation of such ranking
would raise the ranking of the
institution above the bottom 5 percent
of those institutions ranked;
``(II) the institution's average
percentage for the academic year and
the 2 preceding academic years of
first-time, full-time bachelor's
degree-seeking students who enrolled at
the institution who graduate within 6
years is at or above the threshold mark
described in paragraph (2)(B)(ii) for
the academic year; or
``(III) the institution is in the
top two-thirds of institutions ranked
in the institution's peer group
described in paragraph (2)(B)(iii) for
the academic year.
``(iii) Consumer warning report by the
secretary.--For academic year 2017-2018 and for
each succeeding academic year, the Secretary
shall issue a report, following resolution of
all appeals brought pursuant to the 90-day
appeal period, listing each institution of
higher education that is in the bottom 5
percent of those institutions ranked under
paragraph (2)(B)(i), and not removed from such
ranking in accordance with clause (ii), along
with the percentage of first-time, full-time
bachelor's degree-seeking students who enrolled
at each such institution who graduate within 6
years.
``(B) Plan and consumer warnings.--For academic
year 2017-2018 and for each fifth succeeding academic
year, an institution of higher education that is
included in the report under subparagraph (A)(iii)
shall--
``(i) develop a plan, not later than 1 year
after the date of the notification under
subparagraph (A)(i) and in consultation with
the Secretary, to meet or rise above the
threshold mark described in paragraph
(2)(B)(ii); and
``(ii) publish a consumer warning in a
prominent place on the homepage of the
institution's website to students--
``(I) of such notification at the
beginning of each academic year until
the institution is no longer in the
bottom 5 percent of those institutions
ranked under paragraph (2)(B)(i); and
``(II) that if the institution is
subject to a penalty under this
paragraph, an undergraduate student who
enrolls at such institution for the
first time after the date the
institution is subject to such penalty
may lose eligibility to receive
assistance for attendance at that
institution under any program under
this title.
``(C) Calculation of average.--
``(i) In general.--For academic year 2017-
2018 and for each fifth succeeding academic
year, for each institution of higher education
that is included in the report under
subparagraph (A)(iii) for an academic year, the
Secretary shall--
``(I) grant the institution a hold
harmless year for the academic year
succeeding the academic year for which
the institution receives notification
under subparagraph (A)(i); and
``(II) determine the average
percentage over the 4 succeeding
academic years (as determined under
clause (ii)) following the hold
harmless academic year described in
clause (i) of first-time, full-time
bachelor's degree-seeking students who
enrolled at the institution who
graduate within 6 years.
``(ii) Under-resourced years.--In
determining the 4 succeeding academic years
under clause (i)(II), the Secretary shall skip
any academic year that succeeds an academic
year for which less than $25,000,000 is
collected under subsection (b)(3)(E).
``(D) Failure to improve.--
``(i) In general.--Except as provided in
clause (ii) or paragraph (1)(B), if an
institution of higher education has an average
percentage determined under subparagraph
(C)(i)(II) that is less than the applicable
threshold mark described in paragraph
(2)(B)(ii), the Secretary shall impose on such
institution a penalty described in subparagraph
(E).
``(ii) Delay of penalty.--
``(I) In general.--The Secretary
may delay imposing a penalty described
in subparagraph (E) with respect to an
institution that has an average
percentage determined under
subparagraph (C)(i)(II) that is less
than the applicable threshold mark
described in paragraph (2)(B)(ii), but
whose percentage determined for the
most recent academic year is at or
above such threshold mark.
``(II) Period of delay.--The
Secretary may delay imposing a penalty
under subclause (I) for a period of not
more than 2 years.
``(III) New average.--With respect
to an institution for which the
Secretary delays imposing a penalty
under this clause for a period of not
more than 2 years, the Secretary, at
the end of such delay period, shall
determine the average percentage over
the 4 preceding years of first-time,
full-time bachelor's degree-seeking
students who enrolled at the
institution who graduate within 6
years. If the institution has an
average percentage that is less than
the threshold mark described in
paragraph (2)(B)(ii), the Secretary
shall impose on such institution a
penalty described in subparagraph (E).
``(E) Penalties.--
``(i) First penalty year.--Beginning with
the fifth academic year after which penalty
fees are collected under subsection (b)(3)(E),
an institution of higher education that is
subject to a penalty under this paragraph shall
pay to the Secretary for an academic year an
amount equal to 25 percent of the total amount
of funds made available under subsection (d) to
the institution during the 4 academic years
preceding the academic year for which the
penalty is due under this paragraph. The
Secretary shall use such penalty fees to fund
the completion improvement program under
subsection (d) and the completion bonus program
under subsection (e).
``(ii) Second penalty year.--One year after
the first academic year for which an
institution of higher education is subject to a
penalty under this paragraph, the Secretary
shall determine the average percentage for such
year after such first academic year and the 3
preceding academic years of first-time, full-
time bachelor's degree-seeking students who
enrolled at the institution who graduate within
6 years. If such average percentage is less
than the threshold mark described in paragraph
(2)(B)(ii) for such year after such first
academic year, the institution of higher
education shall pay to the Secretary for such
year after such first academic year an amount
equal to 50 percent of the total amount of
funds made available under subsection (d) to
the institution during the 5 academic years
preceding the academic year for which the
penalty is due under this clause. The Secretary
shall use such penalty fees to fund the
completion improvement program under subsection
(d) and the completion bonus program under
subsection (e).
``(iii) Third penalty year.--
``(I) Determination.--Two years
after the first academic year for which
an institution of higher education is
subject to a penalty under this
paragraph, the Secretary shall
determine the average percentage for
such second year after such first
academic year and the 3 preceding
academic years of first-time, full-time
bachelor's degree-seeking students who
enrolled at the institution who
graduate within 6 years.
``(II) Ineligibility.--If the
average percentage determined under
subclause (I) is less than the
threshold mark described in paragraph
(2)(B)(ii) for such second year after
such first academic year any
undergraduate student who enrolls at
the institution of higher education for
the first time during the 3-year period
that begins 2 years after the date the
institution is subject to a penalty
under this paragraph shall lose
eligibility to receive assistance for
attendance at such institution under
any program under this title during
such 3-year period.
``(iv) Prohibitions.--An institution of
higher education that is subject to a penalty
under this subparagraph--
``(I) shall ensure that students
enrolled at the institution receive the
full amount of funding under this title
they would otherwise have received had
the institution not been subject to
such penalty; and
``(II) may not, in order to pay for
the penalty fee--
``(aa) reduce the amount of
institutional need-based grant
aid awarded to students to
attend the institution; and
``(bb) raise tuition or
fees.
``(v) Waiver.--The Secretary may waive or
reduce a penalty under this subparagraph if the
Secretary determines such a waiver is necessary
to avoid extreme hardship for the students
enrolled at the institution of higher education
on which the penalty would be imposed.
``(vi) Payment plan.--The Secretary may
allow an institution of higher education that
owes a penalty under this subparagraph to enter
into a payment plan to pay such penalty amount.
``(F) Appeals.--
``(i) In general.--An institution of higher
education that is subject to a penalty under
this paragraph may appeal the decision to
impose such penalty to the Secretary.
``(ii) Content of appeal.--The appeals
process shall permit the institution to
demonstrate, to the satisfaction of the
Secretary that there is some unforeseen and
extreme circumstance that should warrant a
waiver from such penalty, a reduction in the
amount of such penalty, or removal of the
institution from the bottom 5 percent of those
institutions ranked under paragraph (2)(B).
``(G) Consumer warning by the secretary.--For
academic year 2017-2018 and for each succeeding
academic year, the Secretary shall issue a report
listing each institution of higher education that is in
the bottom 5 percent of those institutions ranked under
paragraph (2)(B) for such academic year and, for each
such institution, the percentage of first-time, full-
time bachelor's degree-seeking students who enrolled at
the institution who graduate within 6 years, for such
academic year.
``(d) Completion Improvement Program.--
``(1) In general.--From funds available under paragraph
(5), the Secretary shall establish a completion improvement
program to award grants to eligible institutions of higher
education to support reforms to improve completion rates.
``(2) Eligible institutions.--An institution of higher
education is eligible to receive a grant under this subsection
if the institution--
``(A) is a public or other nonprofit institution of
higher education that is in the bottom 5 percent of
those institutions ranked under subsection (c)(2)(B);
and
``(B) has not elected to be exempt under subsection
(c)(1)(B).
``(3) Determination of grant amount.--
``(A) In general.--In awarding grants under this
subsection, the Secretary shall determine a grant
amount for each eligible institution according to the
formula under subparagraph (B).
``(B) Grant amount formula.--
``(i) In general.--Except as provided in
clause (iii), the grant amount for an eligible
institution described in paragraph (2) for a
fiscal year shall be equal to the Pell weight
of such institution for the fiscal year,
determined under clause (ii), multiplied by the
amount available under paragraph (5) for such
fiscal year.
``(ii) Pell weight.--
``(I) In general.--The Pell weight
of an eligible institution for a fiscal
year shall be equal to a percentage
that is determined by dividing the
institution's Pell enrollment
determined under subclause (II) for the
fiscal year by the total Pell
enrollment determined under subclause
(III) for the fiscal year.
``(II) Institution's pell
enrollment.--An eligible institution's
Pell enrollment for a fiscal year shall
be equal to the percentage of
bachelor's degree-seeking students
enrolled at the institution for the
academic year that ended immediately
preceding such fiscal year who received
a Federal Pell Grant for such academic
year.
``(III) Total pell enrollment.--The
total Pell enrollment for a fiscal year
shall be equal to the sum of the
percentages of bachelor's degree-
seeking students enrolled at each
eligible institution, described in
paragraph (2), for the academic year
that ended immediately preceding such
fiscal year who received a Federal Pell
Grant for such academic year.
``(iii) Maximum grant amount.--The maximum
grant amount for an eligible institution
described in paragraph (2) for a fiscal year
shall be $2,000,000. Any amounts available
under paragraph (5) for such fiscal year that
are remaining after awarding grants in
accordance with this subparagraph shall be used
to carry out the completion bonus program under
subsection (e).
``(4) Use of funds.--An institution of higher education
that receives a grant under this subsection shall use the grant
funds for reforms and practices that are part of the
improvement plan of the institution, as described under
subsection (c)(3)(B)(i), which may include the following:
``(A) Increasing funds available for Federal Work-
Study Programs for undergraduate students.
``(B) Increasing need-based institutional aid to
students who are eligible for Federal Pell Grants.
``(C) Enhancing academic advising and student
support services.
``(D) Expanding accelerated learning opportunities.
``(E) Improving remedial course offerings.
``(F) Data- and technology-driven efforts to
increase college completion rates.
``(G) Enhancing regular and proactive career
advising and loan counseling services, including post-
enrollment services.
``(H) Efforts to close completion gaps--
``(i) between non-low-income or working
class students and low-income or working class
students; and
``(ii) between non-underrepresented
minority students and underrepresented minority
students.
``(5) Available funds.--Funds shall be available to carry
out this subsection only from the penalty fees collected under
subsections (b)(3)(E) and (c)(3)(E).
``(e) Completion Bonus Program.--
``(1) In general.--From funds available under paragraph
(5), the Secretary shall establish a completion bonus program
to award grants on a competitive basis to eligible institutions
of higher education to support reforms to improve completion
rates.
``(2) Eligible institutions.--An institution of higher
education is eligible to receive a grant under this subsection
if the institution is not in the bottom 5 percent of those
institutions ranked under subsection (c)(2)(B).
``(3) Application and priority.--
``(A) Application.--An eligible institution that
desires a grant under this subsection shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
``(B) Priority.--In awarding grants under this
subsection, the Secretary shall give priority to an
eligible institution that is a part B institution (as
defined in section 322) or a minority-serving
institution (as described in section 371(a)).
``(4) Use of funds.--An eligible institution that receives
a grant under this subsection shall use the grant funds for
reforms and practices to improve completion rates, which may
include the following:
``(A) Increasing funds available for Federal Work-
Study Programs for undergraduate students.
``(B) Increasing need-based institutional aid to
students who are eligible for Federal Pell Grants.
``(C) Enhancing academic advising and student
support services.
``(D) Expanding accelerated learning opportunities.
``(E) Improving remedial course offerings.
``(F) Data- and technology-driven efforts to
increase college completion rates.
``(G) Enhancing regular and proactive career
advising and loan counseling services, including post-
enrollment services.
``(H) Efforts to close completion gaps--
``(i) between non-low-income or working
class students and low-income or working class
students; and
``(ii) between non-underrepresented
minority students and underrepresented minority
students.
``(5) Available funds.--Funds shall be available to carry
out this subsection only from funds from the penalty fees
collected under subsections (b)(3)(E) and (c)(3)(E) that are
remaining after grants are awarded for the completion
improvement program under subsection (d).
``(f) Non-Financial Reward Bonus Program.--
``(1) In general.--The Secretary shall award non-financial
rewards to institutions of higher education that have a proven
record of making college more affordable and increasing college
access and success for low-income or working class students and
moderate-income students.
``(2) Institutional eligibility.--An institution of higher
education is eligible for a non-financial reward under this
subsection for an academic year if--
``(A) the percentage of bachelor's degree-seeking
students who enrolled at the institution for the
academic year who received a Federal Pell Grant for
such academic year falls within the top 50 percent of
ranked institutions, as determined by the Secretary for
the academic year;
``(B) the percentage of first-time, full-time
bachelor's degree-seeking students who enrolled at the
institution who graduate within 6 years falls within
the top 25 percent of ranked institutions, as
determined by the Secretary for the academic year; and
``(C) the institution is not under Federal
investigation for a sanction for an academic or
financial irregularity.
``(3) Applications.--An institution of higher education
that desires to receive a non-financial reward under this
subsection shall submit an application to the Secretary at such
time, in such manner, and containing such information as the
Secretary may require.
``(4) Priority.--Priority in awarding non-financial rewards
under this subsection shall go to institutions of higher
education that have small or diminishing gaps in the completion
rates--
``(A) between non-low-income or working class
students and low-income or working class students; and
``(B) between non-underrepresented minority
students and underrepresented minority students.
``(5) Non-financial rewards.--Non-financial rewards under
this subsection may include the following:
``(A) Reporting less frequently and avoiding
duplicative reporting requirements.
``(B) Extra points in Department grant competitions
for which institutions of higher education are eligible
entities.
``(C) Waiving the multiple disbursement rule or
disbursement delays.
``(D) Preferable status for experimental sites.
``(g) Best Practices.--The Secretary shall establish a publicly
available electronic database identifying best practices of--
``(1) institutions of higher education that were in the
bottom 5 percent of those institutions ranked under the
improving college access program under subsection (b) or the
improving college completion program under subsection (c) for
academic year 2017-2018 or for any succeeding academic year and
that have improved their ranking; and
``(2) eligible institutions of higher education awarded
grants under the completion bonus program under subsection (e)
to support reforms to improve completion rates.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be
necessary.''.
(b) Report to Congress.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Education shall submit a report
to Congress that provides recommendations on ways to expand section
493E of the Higher Education Act of 1965, as added by subsection (a),
to institutions with predominantly associate's degree-seeking students,
as well as other institutions of higher education not covered by such
section.
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