[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4638 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4638
To give middle-class families access to the maximum Federal Pell Grant,
to increase college transparency, and State maintenance of efforts, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 11, 2019
Mr. Carbajal introduced the following bill; which was referred to the
Committee on Education and Labor, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To give middle-class families access to the maximum Federal Pell Grant,
to increase college transparency, and State maintenance of efforts, 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 ``Degrees Not Debt Act of 2019''.
SEC. 2. INCREASE IN THE MAXIMUM AMOUNT OF A FEDERAL PELL GRANT.
Section 401(b)(7)(C) of the Higher Education Act of 1965 (20 U.S.C.
1070a(b)(7)(C)) is amended--
(1) in clause (i)(I), by striking ``clause (iv)(II)'' and
inserting ``clause (v)(II)'';
(2) in clause (ii)(I), by striking ``clause (iv)(II)'' and
inserting ``clause (v)(II)'';
(3) by redesignating clauses (iii) and (iv) as clauses (iv)
and (v), respectively;
(4) by inserting after clause (ii) the following:
``(iii) Award year 2019-2020.--For award
year 2019-2020, the amount determined under
this subparagraph for purposes of subparagraph
(B)(iii) shall be equal to--
``(I) $10,000; reduced by
``(II) the maximum Federal Pell
Grant for which a student would be
eligible using the criteria provided
under section 479; and
``(III) rounded to the nearest
$5.''; and
(5) by striking clause (iv), as redesignated by paragraph
(3), and inserting the following:
``(iv) Subsequent award years.--For award
year 2020-2021 and each subsequent award year,
the amount determined under this subparagraph
for purposes of subparagraph (B)(iii) shall be
equal to--
``(I) the amount determined under
this subparagraph for the preceding
award year; increased by
``(II) a percentage equal to the
annual adjustment percentage for the
award year for which the amount under
this subparagraph is being determined;
and
``(III) rounded to the nearest
$5.''.
SEC. 3. INCREASE FAMILY INCOME THRESHOLD FOR DETERMINATION OF EXPECTED
FAMILY CONTRIBUTION EQUAL TO ZERO.
(a) In General.--Section 479 of the Higher Education Act of 1965
(20 U.S.C. 1087ss) is amended to read as follows:
``SEC. 479. SIMPLIFIED APPLICATION.
``(a) Simplified Application Section.--
``(1) In general.--The Secretary shall develop and use an
easily identifiable simplified application section as part of
the common financial reporting form prescribed under section
483(a) for families described in subsection (b).
``(2) Reduced data requirements.--The simplified
application form shall in the case of a family meeting the
requirements of subsection (b), permit such family to be
treated as having an expected family contribution equal to zero
for purposes of establishing such eligibility and to submit
only the data elements required to make a determination under
subsection (b).
``(b) Zero Expected Family Contribution.--The Secretary shall
consider an applicant to have an expected family contribution equal to
zero if--
``(1) in the case of a dependent student, the sum of the
adjusted gross income of the student's parents is less than or
equal to 250 percent of the poverty line (as defined by the
Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2))) applicable to a family of the
size involved;
``(2) in the case of an independent student with dependents
other than a spouse, the sum of the adjusted gross income of
the student and the student's spouse (if appropriate) is less
than or equal to 250 percent of the poverty line (as defined by
the Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2))) applicable to a family of the
size involved; or
``(3) in the case of an independent student without
dependents other than a spouse, the sum of the adjusted gross
income of the student and the student's spouse (if appropriate)
is less than or equal to 250 percent of the poverty line (as
defined by the Office of Management and Budget, and revised
annually in accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a
family of the size involved.
``(c) Adjustments.--An individual is not required to qualify or
file for the earned income credit in order to be eligible under this
subsection. The Secretary shall annually adjust the income level
necessary to qualify an applicant for the zero expected family
contribution. The income level shall be adjusted according to increases
in the Consumer Price Index, as defined in section 478(f).''.
(b) Adjustments in Income Protection Allowances.--For each academic
year, the Secretary of Education shall continue to publish in the
Federal Register a revised table of income protection allowances
pursuant to section 478(b)(1)(A) of the Higher Education Act of 1965
(20 U.S.C. 1087rr(b)(1)(A)).
SEC. 4. STATE RESPONSIBILITY.
(a) Maintenance of Effort Requirements.--Section 401 of the Higher
Education Act of 1965 (20 U.S.C. 1070a) is amended by adding at the end
the following:
``(k) Institutional Ineligibility Based on Failure of State To
Maintain Higher Education Appropriations Level.--
``(1) In general.--Each State that receives funds under
this Act shall maintain expenditures and State financial aid
for institutions of higher education in the State, with respect
to a fiscal year, at an amount that is equal to or more than
the average amount of State expenditures and State financial
aid for institutions of higher education in the State for the
10 fiscal years preceding such fiscal year.
``(2) Consequences of failure to maintain effort.--
Notwithstanding any other provision of law and beginning 5
years after the date of enactment of the Degrees Not Debt Act
of 2019, the Secretary shall not make a payment under this
subpart to an institution of higher education for a fiscal year
for the purpose of making a Federal Pell Grant to eligible
students in attendance at such institution and any such student
shall not be eligible to receive a Federal Pell Grant for
attendance at such institution for the fiscal year, if the
institution--
``(A) is an institution of higher education, as
defined in section 102; and
``(B) is located in a State that has not maintained
expenditures and State financial aid for institutions
of higher education in the State, with respect to the
fiscal year, at an amount that is equal to or more than
the average amount of State expenditures and State
financial aid for institutions of higher education in
the State for the 5 fiscal years preceding such fiscal
year.
``(3) Waiver.--The Secretary may waive the requirement of
paragraph (1) for a State, for one fiscal year at a time, and
the provisions of paragraph (2) shall have no effect for such
fiscal year if the Secretary determines that granting a waiver
would be equitable due to exceptional or uncontrollable
circumstances such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of the State.''.
SEC. 5. COLLEGE AND UNIVERSITY RESPONSIBILITY.
(a) Program Participation Agreements.--Section 487 of the Higher
Education Act of 1965 (20 U.S.C. 1094) is amended--
(1) in subsection (a), by adding at the end the following:
``(30) The institution will put a prominent link on the
homepage of the institution's primary website that goes
directly to a report of a standard set of key performance
indicators with respect to the institution, as described in
subsection (k).''; and
(2) by adding at the end the following:
``(k) Performance Indicators.--
``(1) In general.--The key performance indicators under
this subsection are the following:
``(A)(i) Graduation rates--
``(I) at 100 percent of the normal time for
graduation;
``(II) at 150 percent of the normal time
for graduation;
``(III) at 200 percent of the normal time
for graduation; and
``(IV) each of which is disaggregated by
age (25 years old and younger, and older than
25 years old), income, race and ethnicity, and
first-generation college status.
``(ii) Transfer out rates. Each such rate shall be
disaggregated by age (25 years old and younger, and
older than 25 years old), income, race and ethnicity,
and first-generation college status.
``(iii) Withdrawal rates, including rates of
students who withdraw from a certificate program to
seek employment in a related field of study.
``(B) Employment outcomes, including the following:
``(i) The average salary of a graduate 3
years after graduation.
``(ii) The percentage of graduates who, 180
days after graduation--
``(I) are employed full-time;
``(II) are employed part-time;
``(III) are employed in the
graduate's field of study or
certificate; and
``(IV) make more than $25,000 a
year.
``(iii) The cohort repayment rate.
``(C) Student satisfaction rate as indicated by a
survey of all students and recent alumni with the
following 2 questions using a 5-point Likert scale:
``(i) How satisfied are you with your
educational experience at [name of
institution]?
``(ii) If you were making the decision
today, how likely would you be to choose to
attend [name of institution] again?
``(D) The percentage of students who continue
enrollment at the institution after the first year of
enrollment.
``(E) The average net price for the institution's
most recent cohort of graduates, disaggregated by
income quartile.
``(F) The average annual net price for full-time
attendance, broken out by tuition, fees, living costs,
and other (indirect) costs.
``(G) The median time to degree completion.
``(H) The percentage of enrolled students with
student loan debt.
``(I) The average student loan debt at time of
graduation for the most recent cohort of graduates who
borrowed money.
``(J) The average student loan debt at time of
withdrawal for the most recent cohort of non-graduates
who borrowed money.
``(2) Cohort repayment rate.--
``(A) In general.--In this subsection, the term
`cohort repayment rate' means, for any fiscal year
beginning with fiscal year 2023--
``(i) in the case in which 30 or more
borrowers at the institution enter repayment on
Federal Direct Stafford Loans, Federal Direct
Unsubsidized Stafford Loans, Federal Direct
PLUS Loans, or Federal Direct Consolidation
Loans, received for attendance at the
institution, the percentage of those borrowers
who are not in default and who make at least a
one dollar reduction on their initial student
loan principal balance before the end of the
second fiscal year following the fiscal year in
which the borrowers entered repayment, except
as provided in subparagraph (B); and
``(ii) in the case in which less than 30
borrowers at the institution enter repayment on
Federal Direct Stafford Loans, Federal Direct
Unsubsidized Stafford Loans, Federal Direct
PLUS Loans, or Federal Direct Consolidation
Loans, received for attendance at the
institution, the percentage of those borrowers
plus all of the borrowers at the institution
who entered repayment on such loans (or on the
portion of a loan made under section 428C that
is used to repay any such loans) in the 3
fiscal years preceding the fiscal year for
which the determination is made, who are not in
default and who make at least a one dollar
reduction on their initial student loan
principal balance before the end of the second
fiscal year following the year in which the
borrowers entered repayment, except as provided
in subparagraph (B).
``(B) Exception.--The `cohort repayment rate'
calculation under subparagraph (A) shall not include in
the calculation a borrower who is--
``(i) in deferment on repayment of a loan
described in subparagraph (A) due to study in
an approved graduate fellowship program or in
an approved rehabilitation training program for
the disabled;
``(ii) in deferment on repayment of a loan
described in subparagraph (A) during a period
of at least half-time enrollment in college or
a career school;
``(iii) in deferment on repayment of a loan
described in subparagraph (A) during a period
of service qualifying for loan discharge or
cancellation under part E;
``(iv) in deferment on repayment of a loan
described in subparagraph (A) due to active
duty military service of the borrower during a
war, military operation, or national emergency;
``(v) in deferment on repayment of a loan
described in subparagraph (A) during the 13
months following the conclusion of qualifying
active duty military service by the borrower,
or until the borrower returns to enrollment on
at least a half-time basis, whichever is
earlier, if the borrower is a member of the
National Guard or other reserve component of
the Armed Forces and was called or ordered to
active duty while enrolled at least half-time
at an eligible school or within 6 months of
having been enrolled at least half-time;
``(vi) in mandatory forbearance on
repayment of a loan described in subparagraph
(A) for the full fiscal year; or
``(vii) serving as a volunteer under the
Peace Corps Act (22 U.S.C. 2501 et seq.) or the
Domestic Volunteer Service Act of 1973 (42
U.S.C. 4950 et seq.).
``(3) New data points.--The Secretary shall work with the
National Center for Education Statistics to identify new data
points that need to be collected to assist colleges and
universities with the collection, organization, and
distribution of key performance indicators and cohort repayment
rates.
``(4) Guidance.--The Secretary shall issue guidance, with
input from stakeholders, to facilitate the data collection and
display of key performance indicators.''.
(b) Enhanced Data Collection for Institutions With Enrollment Rates
of Less Than 5,000 Students.--Section 489(a) of the Higher Education
Act of 1965 (20 U.S.C. 1096(a)) is amended--
(1) in the first sentence, by inserting ``(or, in the case
of an institution with an enrollment of less than 5,000
students, $6)'' after ``$5''; and
(2) by adding at the end the following: ``In addition, the
Secretary shall provide funds to assist small institutions of
higher education, with enrollment rates of less than 5,000
students, with data collection, organization, and distribution
of performance indicators and cohort repayment rates.''.
SEC. 6. REPEAL OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT
FOR INDIVIDUALS.
(a) In General.--Section 55(d) of the Internal Revenue Code of 1986
is amended by striking paragraph (4).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2018.
SEC. 7. REPEAL OF INCREASED ESTATE AND GIFT TAX EXEMPTION.
(a) In General.--Section 2010(c)(3) of the Internal Revenue Code of
1986 is amended by striking ``January 1, 2026'' and inserting ``the
date of the enactment of the Degrees Not Debt Act of 2019''.
(b) Effective Date.--The amendment made by this section shall apply
to estates of decedents dying and gifts made after the date of the
enactment of this Act.
<all>