[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4912 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4912
To amend the Higher Education Act of 1965 to require institutions of
higher education to repay a portion of student law default, to make
student loan debts dischargeable in bankruptcy, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 21, 2022
Mr. Hawley 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 require institutions of
higher education to repay a portion of student law default, to make
student loan debts dischargeable in bankruptcy, 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 ``Make the Universities Pay Act''.
SEC. 2. INSTITUTIONS OF HIGHER EDUCATION REPAYING A PORTION OF STUDENT
LOAN DEBTS.
Section 454 of the Higher Education Act of 1965 (20 U.S.C. 1087d)
is amended by adding at the end the following:
``(d) Institutions of Higher Education Repaying a Portion of
Student Loan Debts.--
``(1) In general.--Each institution of higher education
participating in the direct student loan program under this
part for a fiscal year shall be liable for 50 percent of any
student loan balance that is in default for a loan made under
this part that was used towards the cost of attendance at the
institution.
``(2) Offset exception.--An institution of higher education
shall not increase the costs of tuition at the institution,
charge any additional fee to students, or otherwise increase
the cost of attendance at the institution in order to offset
the liability of the institution under paragraph (1) unless
there is an equivalent percentage decrease in administrative
expenses at the institution.''.
SEC. 3. MAKING STUDENT LOAN DEBTS DISCHARGEABLE IN BANKRUPTCY.
(a) Exceptions To Discharge.--Section 523(a) of title 11, United
States Code, is amended by striking paragraph (8) and inserting the
following:
``(8) for an educational benefit overpayment or loan made,
insured, or guaranteed by a governmental unit, or made under
any program funded in whole or in part by a governmental unit
or nonprofit institution, or for an obligation to repay funds
received as an educational benefit, scholarship, or stipend
received from a governmental unit or nonprofit institution,
unless--
``(A) excepting such debt from discharge under this
paragraph would impose an undue hardship on the debtor
and the debtor's dependents;
``(B) in the case of such an education benefit
overpayment or loan for undergraduate education, the
first payment on such debt became due before the 5-year
period (exclusive of any applicable suspension of the
repayment period) ending on the date of the filing of
the petition; or
``(C) in the case of such an education benefit
overpayment or loan for graduate education, the first
payment on such debt became due before the 15-year
period (exclusive of any applicable suspension of the
repayment period) ending on the date of the filing of
the petition;''.
(b) Application.--The amendment made by subsection (a) shall apply
to any proceeding under title 11, United States Code, that is initiated
on or after the date that is 180 days after the date of enactment of
this Act.
SEC. 4. ENSURING TRANSPARENCY OF STUDENT OUTCOMES.
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, not later than September 30,
2023, and annually thereafter, comply with the following:
``(A) Produce and transmit to the Secretary
statistical analysis using the statistical sampling
method developed under subsection (k) that consists of
the following measures of post-collegiate graduate
outcomes for the institution as a whole and
disaggregated by each degree or program of study
offered by the institution at time intervals of 1 year,
5 years, and 15 years after graduation:
``(i) Mean and median earnings of
graduates.
``(ii) Student loan default rates of
graduates.
``(B) Publish and make available to the public the
statistical analysis produced under subparagraph (A) on
the website of the institution, within 2 clicks of the
homepage and without a paywall, email login, or other
restriction to access.''; and
(2) by adding at the end the following:
``(k) Ensuring Transparency of Student Outcomes.--
``(1) Development of statistical sampling method.--The
Secretary shall--
``(A) develop a statistical sampling method to be
used by institutions of higher education in fulfilling
the requirement described in subsection (a)(30); and
``(B) establish a searchable database accessible to
the public of all analyses transmitted to the Secretary
pursuant to subsection (a)(30) that can be sorted by
institution and degree or program of study.
``(2) Audit and investigation authority.--The Inspector
General of the Department may audit and investigate the
veracity of statistical analysis transmitted to the Secretary
by an institution of higher education.''.
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