<enum>I</enum><header>Fiscal Accountability</header> <section id="HFD53D4A794E44E8E886719CDD008A9C5"><enum>101.</enum><header>Simplification of Federal student loans</header> <subsection id="H6A51592715C04B05907AA9F3CF4D906C"><enum>(a)</enum><header>Termination</header><text>Section 451 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a</external-xref>) is amended—</text> <paragraph id="HE7E82F44521E4E6AB4F8AED68BB271CB"><enum>(1)</enum><text>in subsection (a), by adding at the end the following: <quote>No sums may be expended after September 30, 2028, with respect to loans under this part for which the first disbursement is after such date, except Federal Direct simplification loans under section 460A.</quote>; and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H85CD541F44B440538562F56D994C80CB"><enum>(2)</enum><text>by adding at the end, the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HFFE4918B7A654C8CA43A5641EC6B106E"> <subsection id="HAE4BED2B04C346CDB3D550CA3FFB688C"><enum>(d)</enum><header>Termination of authority To make new loans</header><text>Notwithstanding subsection (a) or any other provision of law—</text> <paragraph id="HAAD350E0153C497EAFA7F94282D796E2"><enum>(1)</enum><text>no new loans may be made under this part after September 30, 2028, except Federal Direct simplification loans under section 460A; and</text></paragraph> <paragraph id="H73CE870CBD3948768E9CF89A21311AF0"><enum>(2)</enum><text>no funds are authorized to be appropriated, or may be expended, under this Act, or any other Act to make loans under this part for which the first disbursement is after September 30, 2028, except Federal Direct simplification loans under section 460A, or as expressly authorized by an Act of Congress enacted after the date of enactment of the <short-title>Higher Education Reform and Opportunity Act</short-title>.</text></paragraph></subsection> <subsection id="H951098AA0F1D449E93AED1270AE9786A"><enum>(e)</enum><header>Student eligibility beginning with award year 2024</header> <paragraph commented="no" id="H95B9B58F0AC64688A9E9D7BD194A1259"><enum>(1)</enum><header>New borrowers</header><text>No loan may be made under this part to a new borrower for which the first disbursement is after June 30, 2024, except Federal Direct simplification loans under section 460A.</text></paragraph> <paragraph id="H566EBCC4C50847D8AD204751108D9E48"><enum>(2)</enum><header>Borrowers with outstanding balances</header><text>Subject to paragraph (3), with respect to a borrower who, as of July 1, 2024, has an outstanding balance of principal or interest owing on a loan made under this part that is not a Federal Direct simplification loan under section 460A, such borrower may—</text> <subparagraph id="H5AC8A472142C4294A60E06DB24F99D06"><enum>(A)</enum><text>in the case of such a loan made to the borrower for enrollment in a program of undergraduate education, borrow loans made under this part that are not Federal Direct simplification loans under section 460A for any program of undergraduate education through the close of September 30, 2028;</text></subparagraph> <subparagraph id="H1A96F202589A459B868AA82E758AE4A8"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of such a loan made to the borrower for enrollment in a program of graduate or professional education, borrow loans made under this part that are not Federal Direct simplification loans under section 460A for any program of graduate or professional education through the close of September 30, 2028; and</text></subparagraph> <subparagraph id="H467CBF48CC0944CD88A54047C5003121"><enum>(C)</enum><text>in the case of such a loan made to the borrower on behalf of a dependent student for the student’s enrollment in a program of undergraduate education, borrow loans made under this part that are not Federal Direct simplification loans under section 460A on behalf of such student through the close of September 30, 2028.</text></subparagraph></paragraph> <paragraph commented="no" id="HF7010A0904AF4F5B872B652F06EF9F32"><enum>(3)</enum><header>Loss of eligibility</header><text>A borrower described in paragraph (2) who borrows a Federal Direct simplification loan made under section 460A for which the first disbursement is made before September 30, 2028, shall lose the borrower’s eligibility to borrow a loan under this part that is not a Federal Direct simplification loan under section 460A in accordance with paragraph (2).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H86B1E222072540AEB0BB2DFFDB0C5600"><enum>(b)</enum><header>Federal Direct simplification loans</header><text display-inline="yes-display-inline">Part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H8618EBB7B9744C0AA321E37C15F7781A"> <section id="H95ABAC3FA5174D14BD12695C55F922FB"><enum>460A.</enum><header>Federal Direct simplification loans</header> <subsection id="H1E18CE5BD77D47A6AD9163C9494D822A"><enum>(a)</enum><header>In general</header><text>Beginning on July 1, 2024, except as provided in section 451(e), the Secretary shall make loans to borrowers under this section. Loans made under this section shall be known as Federal Direct simplification loans.</text></subsection> <subsection id="HA0025A803E404186893B2781EB285F20"><enum>(b)</enum><header>Federal Direct simplification loans</header><text>The provisions of this part shall apply with respect to Federal Direct simplification loans, except that Federal Direct simplification loans shall be made in accordance with the following:</text> <paragraph commented="no" id="H09F123BC15DA445EB1AFFD18382D99A5"><enum>(1)</enum><text>The applicable rate of interest on a loan made under this section shall—</text> <subparagraph commented="no" id="H0A26C9F03E69402A8500930581CA7923"><enum>(A)</enum><text>in the case of such loans issued to undergraduate students, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—</text> <clause commented="no" id="H1159AF6713344C3B8DB2E3294C928C52"><enum>(i)</enum><text>a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 2.05 percent; or</text></clause> <clause commented="no" id="HFE17CAA01F9343A2A9C79553962A3F36"><enum>(ii)</enum><text>8.25 percent; and</text></clause></subparagraph> <subparagraph commented="no" id="H5E2D7F35B6A84316A32D5B07C6C7016A"><enum>(B)</enum><text>in the case of such loans issued to graduate or professional students, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—</text> <clause commented="no" id="H9BF17335C4B24E59BE897E66BF2B7816"><enum>(i)</enum><text>a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 3.6 percent; or</text></clause> <clause commented="no" id="H505837FF56AD40D2A8A1997AAD08CF5E"><enum>(ii)</enum><text>9.5 percent.</text></clause></subparagraph></paragraph> <paragraph id="H959AD73401B74DBEA813C0D11872768F"><enum>(2)</enum><text>Interest on a loan made under this section shall begin to accrue on the date the loan is disbursed.</text></paragraph> <paragraph id="H4AD831DD802C4959AE9B4F808CE58D7B"><enum>(3)</enum><text>The maximum—</text> <subparagraph id="H48EAFF27720A499B96B4ED960D633A81"><enum>(A)</enum><text>annual amount of loans under this section a dependent undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be equal to $7,500; and</text></subparagraph> <subparagraph id="H9308C477BBB54A6DB26C422447944211"><enum>(B)</enum><text>aggregate amount of loans under this section a dependent undergraduate student may borrow shall be equal to $30,000.</text></subparagraph></paragraph> <paragraph id="HB2011E05C21649BCB3395B005BBE4F1A"><enum>(4)</enum><text>The maximum—</text> <subparagraph id="HD28D3825B4724D2CA0501602510BE733"><enum>(A)</enum><text>annual amount of loans under this section an independent undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be equal to $15,000; and</text></subparagraph> <subparagraph id="H53CB631E356C4404BEFA2D37D5435CF4"><enum>(B)</enum><text>aggregate amount of loans under this section an undergraduate independent student may borrow shall be equal to $60,000. </text></subparagraph></paragraph> <paragraph id="H716748D25F094DAAAB3E2BFC87EDEB94"><enum>(5)</enum><text>The maximum—</text> <subparagraph id="HA771BEA426744C26A5E2FEF66EECDB45"><enum>(A)</enum><text>annual amount of loans under this section a graduate or professional student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be equal to $18,500; and</text></subparagraph> <subparagraph id="H4258A57549D44D189DBB8C9B5A572AE3"><enum>(B)</enum><text>aggregate amount of loans under this section a graduate or professional student may borrow shall be equal to $74,000.</text></subparagraph></paragraph> <paragraph id="H58F0430651CE45FC9BA62EC636F994A2"><enum>(6)</enum><text>The only length of repayment—</text> <subparagraph id="H7E7F4F5C81B049BAA09F7218855EF802"><enum>(A)</enum><text>for a loan borrowed by an undergraduate student shall be 15 years; and</text></subparagraph> <subparagraph id="H60D5242D147445588DFC443CEBE3F5A1"><enum>(B)</enum><text>for a loan borrowed by a graduate or professional student shall be 25 years.</text></subparagraph></paragraph> <paragraph commented="no" id="H950E0C5579904190BF28107553F61133"><enum>(7)</enum><text>Repayment on a loan made under this section shall begin—</text> <subparagraph id="HF941C921CE1A4CE5B038DE39825E89C8"><enum>(A)</enum><text>after 125 percent of the normal time for completion of the program of study for which the borrower receives the loan under this section; or</text></subparagraph> <subparagraph id="H1A8DFD01971F4EBD9744E7ED4E1E1F74"><enum>(B)</enum><text>if the borrower withdraws from the program of study before the borrower completes the program, 6 months after the date the borrower withdraws.</text></subparagraph></paragraph> <paragraph id="H63E8CE44A14E4404A3BF27D1A07276F7"><enum>(8)</enum><text>The Secretary shall not repay or cancel any outstanding balance of principal or interest due on a Federal Direct simplification loan as part of a student loan forgiveness program, including such a program under section 455(m) and section 493C.</text></paragraph></subsection> <subsection commented="no" id="H0FFF10324E2A4C29ABDF7DDDCE6AFD42"><enum>(c)</enum><header>Authorization To limit loan amounts</header><text>An institution of higher education that is required under State law to enroll all eligible applicants for an academic year may limit the amount of loans under this section that a student may borrow for such academic year to not more than the tuition and fees at such institution for such academic year.</text></subsection> <subsection id="HED4A6B0837A34FBBBA0F5C26DDEFE43D"><enum>(d)</enum><header>Loan fee</header><text>The Secretary shall not charge the borrower of a loan made under this part an origination fee.</text></subsection> <subsection id="H98CF2C0AA26A43D8A8C9977CFBC70279"><enum>(e)</enum><header>Repayment</header><text>A borrower of a loan made under this section may accelerate without penalty repayment of the whole or any part of the loan.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H2779926C99994884A7E0F1ECBA039EDC"><enum>102.</enum><header>Phasing out loan forgiveness</header><text display-inline="no-display-inline">The Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001 et seq.</external-xref>) is amended—</text> <paragraph id="HDB9BA66AC33646D39DBB0E856F3D69FB"><enum>(1)</enum><text display-inline="yes-display-inline">in section 455—</text> <subparagraph id="HD946161675E540C19E61424FC3EE2B5E"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (d)(1), in the matter preceding subparagraph (A), by inserting <quote>(except a Federal Direct simplification loan)</quote> after <quote>borrower of a loan made under this part</quote>;</text></subparagraph> <subparagraph id="HB7537D03C26645B0909DB3D760101560"><enum>(B)</enum><text>in subsection (e), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H34AAA34A29A84E7A991492AF73CEBC7F"> <paragraph id="HEC215B94BF7441559C5B10B4E26F5643"><enum>(9)</enum><header>Federal Direct simplification loans</header><text>Income contingent repayment shall not be available for a Federal Direct simplification loan.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H0BCBE076726A4543BC8B7B13FD5A3F9B"><enum>(C)</enum><text>in subsection (m), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7A5F2A13D2F34B50BB9F332FD04DC29C"> <paragraph commented="no" display-inline="no-display-inline" id="HE2D79C8AF2DC42F7A235E0F1F71C11E5"><enum>(5)</enum><header display-inline="yes-display-inline">Elimination of loan forgiveness</header> <subparagraph commented="no" display-inline="no-display-inline" id="HA07A786041484829BFA439B5D8DC1286"><enum>(A)</enum><header>In General</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act and subject to subparagraph (B), with respect to any loan made on or after July 1, 2024, the Secretary may not cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this subsection.</text></subparagraph> <subparagraph id="HD9861423938142E49CEC3952E0A67679"><enum>(B)</enum><header>Loans for continuing program of study</header><text>In the case of a borrower whose first loan for a program of study is made prior to July 1, 2024, the Secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this subsection for—</text> <clause id="H16297C4379EC4ED0A45F30E57B39152D"><enum>(i)</enum><text>loans made during the time it takes to complete that program of study; or</text></clause> <clause id="HEBA45E1D182646CDAD79DCC88D522F3F"><enum>(ii)</enum><text>loans made before July 1, 2028;</text></clause><continuation-text continuation-text-level="subparagraph">whichever occurs earlier.</continuation-text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HBAFFED8589EE4BF6957DB87D1C183099"><enum>(2)</enum><text>in section 493C, by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H8A9922697BE74F288DEB7EF033638726"> <subsection id="H0CC89DA8A4AB4D15A6B041D634D3A60F"><enum>(f)</enum><header>Elimination of loan forgiveness</header> <paragraph id="HF2AB9BAB432F46BB9D97109B4B814F9F"><enum>(1)</enum><header>In General</header><text>Notwithstanding any other provision of this Act and subject to paragraph (2), with respect to any loan made on or after July 1, 2024, the Secretary may not repay or cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this section.</text></paragraph> <paragraph id="H01B574A984254627AA1B631246E156A7"><enum>(2)</enum><header>Loans for continuing program of study</header><text>In the case of a borrower whose first loan for a program of study is made prior to July 1, 2024, the Secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this section for—</text> <subparagraph id="H2FDEA960A12547E0ACD443BE1CC4145A"><enum>(A)</enum><text>loans made during the time it takes to complete that program of study; or</text></subparagraph> <subparagraph id="H3532692E3D184630B6F259FB32092BC9"><enum>(B)</enum><text>loans made before July 1, 2028;</text></subparagraph><continuation-text continuation-text-level="paragraph">whichever occurs earlier.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>

118 HR 5042 IH: Higher Education Reform and Opportunity Act U.S. House of Representatives 2023-07-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

Short title

This Act may be cited as the

Higher Education Reform and Opportunity Act

<enum>I</enum><header>Fiscal Accountability</header> <section id="HFD53D4A794E44E8E886719CDD008A9C5"><enum>101.</enum><header>Simplification of Federal student loans</header> <subsection id="H6A51592715C04B05907AA9F3CF4D906C"><enum>(a)</enum><header>Termination</header><text>Section 451 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a</external-xref>) is amended—</text> <paragraph id="HE7E82F44521E4E6AB4F8AED68BB271CB"><enum>(1)</enum><text>in subsection (a), by adding at the end the following: <quote>No sums may be expended after September 30, 2028, with respect to loans under this part for which the first disbursement is after such date, except Federal Direct simplification loans under section 460A.</quote>; and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H85CD541F44B440538562F56D994C80CB"><enum>(2)</enum><text>by adding at the end, the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HFFE4918B7A654C8CA43A5641EC6B106E"> <subsection id="HAE4BED2B04C346CDB3D550CA3FFB688C"><enum>(d)</enum><header>Termination of authority To make new loans</header><text>Notwithstanding subsection (a) or any other provision of law—</text> <paragraph id="HAAD350E0153C497EAFA7F94282D796E2"><enum>(1)</enum><text>no new loans may be made under this part after September 30, 2028, except Federal Direct simplification loans under section 460A; and</text></paragraph> <paragraph id="H73CE870CBD3948768E9CF89A21311AF0"><enum>(2)</enum><text>no funds are authorized to be appropriated, or may be expended, under this Act, or any other Act to make loans under this part for which the first disbursement is after September 30, 2028, except Federal Direct simplification loans under section 460A, or as expressly authorized by an Act of Congress enacted after the date of enactment of the <short-title>Higher Education Reform and Opportunity Act</short-title>.</text></paragraph></subsection> <subsection id="H951098AA0F1D449E93AED1270AE9786A"><enum>(e)</enum><header>Student eligibility beginning with award year 2024</header> <paragraph commented="no" id="H95B9B58F0AC64688A9E9D7BD194A1259"><enum>(1)</enum><header>New borrowers</header><text>No loan may be made under this part to a new borrower for which the first disbursement is after June 30, 2024, except Federal Direct simplification loans under section 460A.</text></paragraph> <paragraph id="H566EBCC4C50847D8AD204751108D9E48"><enum>(2)</enum><header>Borrowers with outstanding balances</header><text>Subject to paragraph (3), with respect to a borrower who, as of July 1, 2024, has an outstanding balance of principal or interest owing on a loan made under this part that is not a Federal Direct simplification loan under section 460A, such borrower may—</text> <subparagraph id="H5AC8A472142C4294A60E06DB24F99D06"><enum>(A)</enum><text>in the case of such a loan made to the borrower for enrollment in a program of undergraduate education, borrow loans made under this part that are not Federal Direct simplification loans under section 460A for any program of undergraduate education through the close of September 30, 2028;</text></subparagraph> <subparagraph id="H1A96F202589A459B868AA82E758AE4A8"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of such a loan made to the borrower for enrollment in a program of graduate or professional education, borrow loans made under this part that are not Federal Direct simplification loans under section 460A for any program of graduate or professional education through the close of September 30, 2028; and</text></subparagraph> <subparagraph id="H467CBF48CC0944CD88A54047C5003121"><enum>(C)</enum><text>in the case of such a loan made to the borrower on behalf of a dependent student for the student’s enrollment in a program of undergraduate education, borrow loans made under this part that are not Federal Direct simplification loans under section 460A on behalf of such student through the close of September 30, 2028.</text></subparagraph></paragraph> <paragraph commented="no" id="HF7010A0904AF4F5B872B652F06EF9F32"><enum>(3)</enum><header>Loss of eligibility</header><text>A borrower described in paragraph (2) who borrows a Federal Direct simplification loan made under section 460A for which the first disbursement is made before September 30, 2028, shall lose the borrower’s eligibility to borrow a loan under this part that is not a Federal Direct simplification loan under section 460A in accordance with paragraph (2).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H86B1E222072540AEB0BB2DFFDB0C5600"><enum>(b)</enum><header>Federal Direct simplification loans</header><text display-inline="yes-display-inline">Part D of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H8618EBB7B9744C0AA321E37C15F7781A"> <section id="H95ABAC3FA5174D14BD12695C55F922FB"><enum>460A.</enum><header>Federal Direct simplification loans</header> <subsection id="H1E18CE5BD77D47A6AD9163C9494D822A"><enum>(a)</enum><header>In general</header><text>Beginning on July 1, 2024, except as provided in section 451(e), the Secretary shall make loans to borrowers under this section. Loans made under this section shall be known as Federal Direct simplification loans.</text></subsection> <subsection id="HA0025A803E404186893B2781EB285F20"><enum>(b)</enum><header>Federal Direct simplification loans</header><text>The provisions of this part shall apply with respect to Federal Direct simplification loans, except that Federal Direct simplification loans shall be made in accordance with the following:</text> <paragraph commented="no" id="H09F123BC15DA445EB1AFFD18382D99A5"><enum>(1)</enum><text>The applicable rate of interest on a loan made under this section shall—</text> <subparagraph commented="no" id="H0A26C9F03E69402A8500930581CA7923"><enum>(A)</enum><text>in the case of such loans issued to undergraduate students, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—</text> <clause commented="no" id="H1159AF6713344C3B8DB2E3294C928C52"><enum>(i)</enum><text>a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 2.05 percent; or</text></clause> <clause commented="no" id="HFE17CAA01F9343A2A9C79553962A3F36"><enum>(ii)</enum><text>8.25 percent; and</text></clause></subparagraph> <subparagraph commented="no" id="H5E2D7F35B6A84316A32D5B07C6C7016A"><enum>(B)</enum><text>in the case of such loans issued to graduate or professional students, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of—</text> <clause commented="no" id="H9BF17335C4B24E59BE897E66BF2B7816"><enum>(i)</enum><text>a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 3.6 percent; or</text></clause> <clause commented="no" id="H505837FF56AD40D2A8A1997AAD08CF5E"><enum>(ii)</enum><text>9.5 percent.</text></clause></subparagraph></paragraph> <paragraph id="H959AD73401B74DBEA813C0D11872768F"><enum>(2)</enum><text>Interest on a loan made under this section shall begin to accrue on the date the loan is disbursed.</text></paragraph> <paragraph id="H4AD831DD802C4959AE9B4F808CE58D7B"><enum>(3)</enum><text>The maximum—</text> <subparagraph id="H48EAFF27720A499B96B4ED960D633A81"><enum>(A)</enum><text>annual amount of loans under this section a dependent undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be equal to $7,500; and</text></subparagraph> <subparagraph id="H9308C477BBB54A6DB26C422447944211"><enum>(B)</enum><text>aggregate amount of loans under this section a dependent undergraduate student may borrow shall be equal to $30,000.</text></subparagraph></paragraph> <paragraph id="HB2011E05C21649BCB3395B005BBE4F1A"><enum>(4)</enum><text>The maximum—</text> <subparagraph id="HD28D3825B4724D2CA0501602510BE733"><enum>(A)</enum><text>annual amount of loans under this section an independent undergraduate student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be equal to $15,000; and</text></subparagraph> <subparagraph id="H53CB631E356C4404BEFA2D37D5435CF4"><enum>(B)</enum><text>aggregate amount of loans under this section an undergraduate independent student may borrow shall be equal to $60,000. </text></subparagraph></paragraph> <paragraph id="H716748D25F094DAAAB3E2BFC87EDEB94"><enum>(5)</enum><text>The maximum—</text> <subparagraph id="HA771BEA426744C26A5E2FEF66EECDB45"><enum>(A)</enum><text>annual amount of loans under this section a graduate or professional student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be equal to $18,500; and</text></subparagraph> <subparagraph id="H4258A57549D44D189DBB8C9B5A572AE3"><enum>(B)</enum><text>aggregate amount of loans under this section a graduate or professional student may borrow shall be equal to $74,000.</text></subparagraph></paragraph> <paragraph id="H58F0430651CE45FC9BA62EC636F994A2"><enum>(6)</enum><text>The only length of repayment—</text> <subparagraph id="H7E7F4F5C81B049BAA09F7218855EF802"><enum>(A)</enum><text>for a loan borrowed by an undergraduate student shall be 15 years; and</text></subparagraph> <subparagraph id="H60D5242D147445588DFC443CEBE3F5A1"><enum>(B)</enum><text>for a loan borrowed by a graduate or professional student shall be 25 years.</text></subparagraph></paragraph> <paragraph commented="no" id="H950E0C5579904190BF28107553F61133"><enum>(7)</enum><text>Repayment on a loan made under this section shall begin—</text> <subparagraph id="HF941C921CE1A4CE5B038DE39825E89C8"><enum>(A)</enum><text>after 125 percent of the normal time for completion of the program of study for which the borrower receives the loan under this section; or</text></subparagraph> <subparagraph id="H1A8DFD01971F4EBD9744E7ED4E1E1F74"><enum>(B)</enum><text>if the borrower withdraws from the program of study before the borrower completes the program, 6 months after the date the borrower withdraws.</text></subparagraph></paragraph> <paragraph id="H63E8CE44A14E4404A3BF27D1A07276F7"><enum>(8)</enum><text>The Secretary shall not repay or cancel any outstanding balance of principal or interest due on a Federal Direct simplification loan as part of a student loan forgiveness program, including such a program under section 455(m) and section 493C.</text></paragraph></subsection> <subsection commented="no" id="H0FFF10324E2A4C29ABDF7DDDCE6AFD42"><enum>(c)</enum><header>Authorization To limit loan amounts</header><text>An institution of higher education that is required under State law to enroll all eligible applicants for an academic year may limit the amount of loans under this section that a student may borrow for such academic year to not more than the tuition and fees at such institution for such academic year.</text></subsection> <subsection id="HED4A6B0837A34FBBBA0F5C26DDEFE43D"><enum>(d)</enum><header>Loan fee</header><text>The Secretary shall not charge the borrower of a loan made under this part an origination fee.</text></subsection> <subsection id="H98CF2C0AA26A43D8A8C9977CFBC70279"><enum>(e)</enum><header>Repayment</header><text>A borrower of a loan made under this section may accelerate without penalty repayment of the whole or any part of the loan.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H2779926C99994884A7E0F1ECBA039EDC"><enum>102.</enum><header>Phasing out loan forgiveness</header><text display-inline="no-display-inline">The Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001 et seq.</external-xref>) is amended—</text> <paragraph id="HDB9BA66AC33646D39DBB0E856F3D69FB"><enum>(1)</enum><text display-inline="yes-display-inline">in section 455—</text> <subparagraph id="HD946161675E540C19E61424FC3EE2B5E"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (d)(1), in the matter preceding subparagraph (A), by inserting <quote>(except a Federal Direct simplification loan)</quote> after <quote>borrower of a loan made under this part</quote>;</text></subparagraph> <subparagraph id="HB7537D03C26645B0909DB3D760101560"><enum>(B)</enum><text>in subsection (e), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H34AAA34A29A84E7A991492AF73CEBC7F"> <paragraph id="HEC215B94BF7441559C5B10B4E26F5643"><enum>(9)</enum><header>Federal Direct simplification loans</header><text>Income contingent repayment shall not be available for a Federal Direct simplification loan.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H0BCBE076726A4543BC8B7B13FD5A3F9B"><enum>(C)</enum><text>in subsection (m), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7A5F2A13D2F34B50BB9F332FD04DC29C"> <paragraph commented="no" display-inline="no-display-inline" id="HE2D79C8AF2DC42F7A235E0F1F71C11E5"><enum>(5)</enum><header display-inline="yes-display-inline">Elimination of loan forgiveness</header> <subparagraph commented="no" display-inline="no-display-inline" id="HA07A786041484829BFA439B5D8DC1286"><enum>(A)</enum><header>In General</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act and subject to subparagraph (B), with respect to any loan made on or after July 1, 2024, the Secretary may not cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this subsection.</text></subparagraph> <subparagraph id="HD9861423938142E49CEC3952E0A67679"><enum>(B)</enum><header>Loans for continuing program of study</header><text>In the case of a borrower whose first loan for a program of study is made prior to July 1, 2024, the Secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this subsection for—</text> <clause id="H16297C4379EC4ED0A45F30E57B39152D"><enum>(i)</enum><text>loans made during the time it takes to complete that program of study; or</text></clause> <clause id="HEBA45E1D182646CDAD79DCC88D522F3F"><enum>(ii)</enum><text>loans made before July 1, 2028;</text></clause><continuation-text continuation-text-level="subparagraph">whichever occurs earlier.</continuation-text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HBAFFED8589EE4BF6957DB87D1C183099"><enum>(2)</enum><text>in section 493C, by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H8A9922697BE74F288DEB7EF033638726"> <subsection id="H0CC89DA8A4AB4D15A6B041D634D3A60F"><enum>(f)</enum><header>Elimination of loan forgiveness</header> <paragraph id="HF2AB9BAB432F46BB9D97109B4B814F9F"><enum>(1)</enum><header>In General</header><text>Notwithstanding any other provision of this Act and subject to paragraph (2), with respect to any loan made on or after July 1, 2024, the Secretary may not repay or cancel any outstanding balance of principal and interest due on the loan for the borrower of the loan pursuant to this section.</text></paragraph> <paragraph id="H01B574A984254627AA1B631246E156A7"><enum>(2)</enum><header>Loans for continuing program of study</header><text>In the case of a borrower whose first loan for a program of study is made prior to July 1, 2024, the Secretary may repay or cancel any outstanding balance of principal and interest due on the subsequent loans for that borrower for the same program of study pursuant to this section for—</text> <subparagraph id="H2FDEA960A12547E0ACD443BE1CC4145A"><enum>(A)</enum><text>loans made during the time it takes to complete that program of study; or</text></subparagraph> <subparagraph id="H3532692E3D184630B6F259FB32092BC9"><enum>(B)</enum><text>loans made before July 1, 2028;</text></subparagraph><continuation-text continuation-text-level="paragraph">whichever occurs earlier.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <enum>II</enum><header>Accreditation Reform</header> <section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="HAAC98668ED014B0EAF2F0E49DAA8808A"><enum>201.</enum><header display-inline="yes-display-inline">Accreditation reform</header> <subsection commented="no" display-inline="no-display-inline" id="HF634D0E64BFB431881B6D256279FC638"><enum>(a)</enum><header display-inline="yes-display-inline">Definition of Institution of Higher Education</header><text display-inline="yes-display-inline">Section 102(a)(1) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1002">20 U.S.C. 1002(a)(1)</external-xref>) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H323737354D8243509390FFF8D76DF7F8"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively; and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H0C562D834D654791A067EAADB4BD242E"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (A) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H13B6D0DC7952460DBC5D21DD01C5D274"> <subparagraph commented="no" display-inline="no-display-inline" id="H654A1592837A401E93E8550BA48ACCFF"><enum>(B)</enum><text display-inline="yes-display-inline">if accredited by an authorized accreditation authority in a State that has an alternative accreditation agreement with the Secretary, as described in section 498C—</text> <clause commented="no" display-inline="no-display-inline" id="HB97DA8077AFB450A8A1BD0008062BED7"><enum>(i)</enum><text display-inline="yes-display-inline">an institution that provides postsecondary education;</text></clause> <clause commented="no" display-inline="no-display-inline" id="H2C33747DFBF14A75BF38B90295D7318C"><enum>(ii)</enum><text display-inline="yes-display-inline">a postsecondary apprenticeship program; or</text></clause> <clause commented="no" display-inline="no-display-inline" id="HDB0F14A28DB04E2F9BF36CAA0518AE99"><enum>(iii)</enum><text display-inline="yes-display-inline">a postsecondary education course or program provided by an institution of postsecondary education, a nonprofit organization, or a for-profit organization or business;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H12049615A2774BF78CBC2B5D0424986D"><enum>(b)</enum><header display-inline="yes-display-inline">State alternative accreditation</header><text>Part H of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1099a">20 U.S.C. 1099a et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HB50F76CEAC004178BEC87D1E15FBDD76"> <subpart id="H842570264D75493CBDBA8C113C404BE6" style="OLC"><enum>4</enum><header>State Alternative Accreditation</header> <section id="H061D99B97EC046A7A3C4BE089CE83B8F"><enum>498C.</enum><header>State alternative accreditation</header> <subsection commented="no" display-inline="no-display-inline" id="HAFC6C76C21634B1E88AE10AD2681A561"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, a State may establish an alternative accreditation system for the purpose of establishing institutions that provide postsecondary education and postsecondary education courses or programs as eligible for funding under title IV if the State submits a plan to the Secretary for the establishment of the alternative accreditation system. Such institutions, courses, or programs may include—</text> <paragraph commented="no" display-inline="no-display-inline" id="HA42027A866F8468A80C8D975E631C9A5"><enum>(1)</enum><text display-inline="yes-display-inline">institutions that provide postsecondary education that culminates in a certification, credential, or degree;</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HE0218B5D7CAF4773931D91C9BF606E29"><enum>(2)</enum><text display-inline="yes-display-inline">postsecondary apprenticeship programs that culminate in a certification, credential, or degree;</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HAC1505C1569B4938BA8B40CC1195D553"><enum>(3)</enum><text display-inline="yes-display-inline">any other postsecondary education course or program offered at an institution of postsecondary education, a nonprofit organization, or a for-profit organization or business, that culminates in a certification, credential, or degree; and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HD06D03F3BB5E44E190427A09FD061D59"><enum>(4)</enum><text display-inline="yes-display-inline">any of the entities described in paragraphs (1) through (3) that do not award a postsecondary certification, credential, or degree, provided that such entity provides credit that will be accepted toward a postsecondary certification, credential, or degree at one or more of the entities described in paragraphs (1) through (3).</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H055B2C4C1F3D4EF9B06E0DDED658B1CE"><enum>(b)</enum><header display-inline="yes-display-inline">Alternative accreditation notification</header><text display-inline="yes-display-inline">The alternative accreditation plan described in subsection (a) shall include the following:</text> <paragraph commented="no" display-inline="no-display-inline" id="H2ED026F3E84D4B10951EE89F0690DDDB"><enum>(1)</enum><text display-inline="yes-display-inline">The State's plan for designating one or more authorized accrediting entities within the State, such as the State Department of Education, another State agency, an industry-specific accrediting agency, or another entity, and an explanation of the process through which the State will select such authorized accrediting entities.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H66FA917EF8DC4DE28C22D381269CD143"><enum>(2)</enum><text display-inline="yes-display-inline">The standards or criteria that an institution that provides postsecondary education and a postsecondary education course or program must meet in order to—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HD611091428C4436784341EFC916F95FF"><enum>(A)</enum><text display-inline="yes-display-inline">receive an initial accreditation as part of the alternative accreditation system; and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H9DACD2D298544F518C1629772477EB8C"><enum>(B)</enum><text display-inline="yes-display-inline">maintain such accreditation.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HA53F504661CE4F36A40AB5D3CFBCC267"><enum>(3)</enum><text display-inline="yes-display-inline">A description of the appeals process through which an institution that provides postsecondary education or a postsecondary education course or program may appeal to an authorized accrediting entity if such institution, course, or program is denied accreditation under the State alternative accreditation system.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H668F80DD372B4CE8B2792F54A7FFC71D"><enum>(4)</enum><text display-inline="yes-display-inline">Any State policy regarding public accessibility to certain information relating to institutions that provide postsecondary education and postsecondary education courses and programs accredited under the State alternative accreditation system, including—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H0DE784299B4E4F99901271B7887AC483"><enum>(A)</enum><text display-inline="yes-display-inline">the information described in subsection (e)(1); and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H2F9A337A12AE4B9A862C784C40B55C91"><enum>(B)</enum><text display-inline="yes-display-inline">information about the rates of job placement for individuals that have graduated from an institution or completed a course or program that is accredited under the State alternative accreditation system, if available.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H3206CED3301741F2B4D07404006AF8A4"><enum>(5)</enum><text display-inline="yes-display-inline">An assurance by the State that under the State alternative accreditation system, only institutions that provide postsecondary education and postsecondary education courses or programs that provide a postsecondary certification, credential, or degree, or credits toward a postsecondary certification, credential, or degree (as defined by the State in accordance with paragraph (6)) will be accredited.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H637585D29DCA45409E36694240F81316"><enum>(6)</enum><text display-inline="yes-display-inline">The State's definition of a postsecondary certification, credential, or degree, as such term applies to the requirement described in paragraph (5).</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H7424C4F4D99148B1B871D69CEE0B4C3C"><enum>(7)</enum><text>A description of the agreements that the State will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system for purposes of accreditation regarding requirements for learning outcomes or labor market outcomes, in lieu of the requirements described under section 496(a)(5).</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H1667AF5CD9C74E6E96E0173C88329848"><enum>(8)</enum><text display-inline="yes-display-inline">A description of the agreements that the State will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system for purposes of accreditation regarding requirements for instructional time, in lieu of the requirements described under section 481(a)(2).</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H1202F5EA25DE410B97FB5D2A736B66CF"><enum>(9)</enum><text display-inline="yes-display-inline">A description of the agreements that the State will enter into with institutions that provide postsecondary education and postsecondary education courses or programs that are accredited under the alternative accreditation system regarding requirements for credit hours or clock hours, or other measures of student learning, in lieu of the requirements described under section 481(b).</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H178ED51F59254B69879F10DE61CFF8AC"><enum>(c)</enum><header>Review and approval</header><text display-inline="yes-display-inline">Not later than 30 days after the Secretary receives a plan from a State regarding an alternative accreditation system, the Secretary shall submit to the State and Congress, and make publicly available, a response to the State’s plan. The Secretary shall approve the plan and allow the State to establish the alternative accreditation system if the plan meets the requirements described in subsection (b).</text></subsection> <subsection commented="no" display-inline="no-display-inline" id="HAE089DAEBB1C4365B689F0624DC84C05"><enum>(d)</enum><header>Time limit</header><text display-inline="yes-display-inline">Each plan approved under subsection (c) shall allow a State to carry out an alternative accreditation system in the State for a period of 5 years.</text></subsection> <subsection id="HB6AA0F140D0C470ABCA305BF952736D6"><enum>(e)</enum><header>Reporting requirements</header><text>States that establish an alternative accreditation system shall submit a report to the Secretary every 3 years following the implementation of the alternative accreditation system. The report shall include—</text> <paragraph commented="no" display-inline="no-display-inline" id="HE5137F2413EE4885A5778B4A9D276C28"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a postsecondary education course or program that is accredited through the State alternative accreditation system—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HBAA42A4303E04A678D2794E21BF292C7"><enum>(A)</enum><text display-inline="yes-display-inline">the number and percentage of students who successfully complete each such postsecondary education course or program; and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HF186A0FC8BE74F4A88D4BD727EE5EE48"><enum>(B)</enum><text display-inline="yes-display-inline">for postsecondary education courses or programs that lead to a certification, credential, or degree, the number of students in such course or program;</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H0FCCF9CD79B1445BAB1732D5508DC2FD"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of an institution that provides postsecondary education that is accredited through the State alternative accreditation system—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HE834352D19624A40B61356DA086F2C25"><enum>(A)</enum><text display-inline="yes-display-inline">the number and percentage of students who successfully obtain a postsecondary certification, credential, or degree from such institution; and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HFB1B2D76DE564D95A3538CBD9FF1130B"><enum>(B)</enum><text display-inline="yes-display-inline">the number and percentage of students who do not successfully obtain a postsecondary certification, credential, or degree from such institution but do obtain credit from such institution toward a postsecondary degree, credential, or certification; and</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H241C629348B24B25848CE2A9623CD230"><enum>(3)</enum><text display-inline="yes-display-inline">a description of any requirements for third-party verification of information contained in the report.</text></paragraph></subsection></section></subpart><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="HA610DB4C499D49159539D22FED9A2E7E"><enum>(c)</enum><header>Title IV eligibility requirements</header><text display-inline="yes-display-inline">Part G of title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HDAEE450C9AE942B59B314CEED391EAAB"> <section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="H47286380DEB5450A814FD32B5D57394F"><enum>494A.</enum><header display-inline="yes-display-inline">State Accredited Institutions, Programs, or Courses</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, an institution, program, or course that is eligible for funds under this title in accordance with section 102(a)(1)(B) and meets the requirements of section 498C—</text> <paragraph commented="no" display-inline="no-display-inline" id="HDD5FE64911904D53B1C334D3F2FD4B9B"><enum>(1)</enum><text display-inline="yes-display-inline">shall not be required to meet the requirements of section 496; and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HC927D9E467EC489ABE7B292C56DFAC79"><enum>(2)</enum><text display-inline="yes-display-inline">shall not be required to meet the requirements described in subsections (a)(2) and (b) of section 481.</text></paragraph></section><after-quoted-block>. </after-quoted-block></quoted-block></subsection></section> <enum>III</enum><header>Transparency in Higher Education</header> <section section-type="subsequent-section" id="HAE479C34A761425D826CAEF553D3E841"><enum>301.</enum><header>Time for transparency in higher education</header> <subsection commented="no" id="HED9CDA9726484911BC70E1C5E3DB06C4"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title IV of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) is amended—</text> <paragraph commented="no" id="H48433471B60145328EA800F87A06A607"><enum>(1)</enum><text>in section 487(a), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H52C74F7887E3495EB66C6311034C4A8C"> <paragraph commented="no" id="H241DF967A3CD4661B26833527B1E05A2"><enum>(30)</enum><text>The institution will publish information in compliance with section 494B.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H3B0FBB433DBA4FFB87DB0A35B8A4D09E"><enum>(2)</enum><text>in part G, by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H30F0F1800F0146B2BFE5E8C13A72FC06"> <section id="H3E57BC93FB0E460BB12B9FD7FB11DCD4"><enum>494B.</enum><header>Institutional publication of information</header> <subsection id="H456B2D740DDA4E898F1ECEA38CB4AE49"><enum>(a)</enum><header>Publication of information</header> <paragraph id="HD2D87532C3F94C0C9ACA93B70EFE4953"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Each institution of higher education participating in a program under this title shall publish on the institution's website and in an alternative format, on an annual basis, the information described in paragraphs (2) and (3). To the extent that such data is available, an institution may use data that the institution is already collecting in accordance with other Federal requirements.</text></paragraph> <paragraph id="H2AA9C8C68C6D4980869726068E1D8FE9"><enum>(2)</enum><header>Information</header><text display-inline="yes-display-inline">Each institution of higher education described in paragraph (1) shall publish, with respect to the institution as a whole and with respect to each program of study offered by the institution, the following information for the most recent fiscal year for which the information is available, to the extent the information is available:</text> <subparagraph id="H5C2B0705644A400B9ABA83E9C9DF8D3D"><enum>(A)</enum><text display-inline="yes-display-inline">For each of the following, the percentage and number of students enrolled at the institution or in the program of study, as applicable, who receive the following:</text> <clause id="H484D9B72CF0E456E955C99BCA06FC86B"><enum>(i)</enum><text display-inline="yes-display-inline">Federal grant aid, including Federal Pell Grants under subpart 1 of part A, Federal Supplemental Educational Opportunity Grants under subpart 3 of part A, or any other Federal postsecondary education grant aid or subsidy.</text></clause> <clause id="H1957AE4326AD4DF6B9C98CE32C3DD6DD"><enum>(ii)</enum><text>Federal student loans, including Federal loans under part D.</text></clause> <clause id="HB5F9C654B07449D6925ED2DC35128AD1"><enum>(iii)</enum><text display-inline="yes-display-inline">State grant aid.</text></clause> <clause id="H8D9F501E3F1542219FD77A6E8C815C38"><enum>(iv)</enum><text display-inline="yes-display-inline">Institutional grants.</text></clause> <clause id="HF01D1582A2B743718E8F64867E180ABE"><enum>(v)</enum><text display-inline="yes-display-inline">A student loan from a State.</text></clause></subparagraph> <subparagraph id="H2837B8D5B3954ABC800D9A9560AF6843"><enum>(B)</enum><text>Student body enrollment status, including as a—</text> <clause id="HCAF3D2150E364B40AE17EE72CE35BFB5"><enum>(i)</enum><text>first-time, full-time student;</text></clause> <clause id="H4D034A4A836D42529EDC94CCB7605337"><enum>(ii)</enum><text>first-time, part-time student;</text></clause> <clause id="H2DE0E56429C9462A864665CAA103F618"><enum>(iii)</enum><text>non-first-time, full-time student; and</text></clause> <clause id="H0F9D5FDC027B4E3CB3644FE5ED33DCF9"><enum>(iv)</enum><text>non-first-time, part-time student.</text></clause></subparagraph> <subparagraph id="H8D13CAD04BDF4AE9A3E2A0CC658738C9"><enum>(C)</enum><text display-inline="yes-display-inline">Information about students that includes the following:</text> <clause id="H6793971256C44FCCB7D68DBE21F09560"><enum>(i)</enum><text>The percentage of students who do not complete the program of study the student initially started upon enrollment.</text></clause> <clause id="HD5544C6F3E33444989FA53D1E35FA59E"><enum>(ii)</enum><text>The percentage of students who transfer.</text></clause> <clause id="H581E8AE70CB648AF970D46384358391E"><enum>(iii)</enum><text>The percentage of students who complete the program of study the student initially started upon enrollment.</text></clause> <clause id="HF8A3ACB0A6604D0BA7A96345895A1FFD"><enum>(iv)</enum><text>The average length of time for a student to complete the program of study.</text></clause> <clause id="H57486CBD9498431791CEF66A22B54D22"><enum>(v)</enum><text>The percentage of students who continue on to higher levels of education.</text></clause> <clause id="HEFEAD504499D4559A98DE33A61F59320"><enum>(vi)</enum><text>The percentage of former students who received financial aid who are employed at 2, 4, and 6 years after graduating, disaggregated by program of study.</text></clause> <clause id="H5F241D79ED844A8590B7F487757075BF"><enum>(vii)</enum><text>The median earnings of former students who earned a degree or credential and received financial aid on the date that is 5, 10, and 15 years after the date the students first enrolled in a program of study at the institution, disaggregated by program of study.</text></clause> <clause id="H98AC61FEE4274B60B17695A41AE51FBD"><enum>(viii)</enum><text>The median earnings of former students who received financial aid on the date that is 5, 10, and 15 years after the date the students first enrolled in a program of study at the institution, disaggregated by program of study.</text></clause></subparagraph></paragraph> <paragraph id="H43D20CA4B3C74CF1961F6C23AD2356EF"><enum>(3)</enum><header>Publication of default and non-repayment rates</header><text display-inline="yes-display-inline">In addition to the information described in paragraph (2), each institution of higher education described in paragraph (1) shall publish, with respect to the institution as a whole and with respect to each program of study offered by the institution, the following information for the most recent fiscal year for which the information is available:</text> <subparagraph id="HAD55B5ED79BA4D4A99AA4262117D818C"><enum>(A)</enum><text>The average amount of total Federal student loan debt accrued upon graduation.</text></subparagraph> <subparagraph id="H814E90CDE227400E8C0F1F19A39DAD44"><enum>(B)</enum><text>The average amount of total Federal student loan debt accrued by students who leave the institution without having graduated.</text></subparagraph> <subparagraph id="HD85D7EDE57534D35901281C81731E0B5"><enum>(C)</enum><text>Federal student loan default rate.</text></subparagraph> <subparagraph id="H2F1C6A27A6BD43B4BFAEC8E94669E415"><enum>(D)</enum><text>Federal student loan non-repayment rate.</text></subparagraph> <subparagraph id="HBE82AB4F0A9E45AAB0A5B3A79712B8CA"><enum>(E)</enum><text>Default and non-repayment rate, including as a—</text> <clause id="HAA6C33AAB63542298BD651B9BE38975E"><enum>(i)</enum><text>first-time, full-time student;</text></clause> <clause id="HECE38FB317FB47109776D082EE96E8D7"><enum>(ii)</enum><text>first-time, part-time student;</text></clause> <clause id="HEC43609EBCEA42BB89149BAE405DDBCA"><enum>(iii)</enum><text>non-first-time, full-time student; and</text></clause> <clause id="H001745A845044396B5B120259B222F34"><enum>(iv)</enum><text>non-first-time, part-time student.</text></clause></subparagraph> <subparagraph id="H45FCD3667F484CEDA7DE6F21E0702671"><enum>(F)</enum><text>Default and non-repayment rate, of—</text> <clause id="HE8FCEECB3D584909859925CECB3AE7B4"><enum>(i)</enum><text>students who complete a program of study;</text></clause> <clause id="HD09CD4F2ABB54D3F850E1C786C8412E4"><enum>(ii)</enum><text>students who transfer; and</text></clause> <clause id="HAD5AB10D2FF140AD8F05BE2E917F4333"><enum>(iii)</enum><text>students who do not complete a program of study.</text></clause></subparagraph></paragraph></subsection> <subsection id="H852379EEE059465F922723384EC727D3"><enum>(b)</enum><header>Privacy</header> <paragraph commented="no" id="H5626BECFE5D14D228C1171676D20164A"><enum>(1)</enum><header>Compliance with FERPA</header><text>In carrying out this section, an institution of higher education and any personnel of the institution shall not share any personally identifiable information and shall act in accordance with section 444 of the General Education Provisions Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1232g">20 U.S.C. 1232g</external-xref>, commonly known as the <term>Family Educational Rights and Privacy Act of 1974</term>).</text></paragraph> <paragraph commented="no" id="H1E67488E8E8C4C5CB13220AE9F883544"><enum>(2)</enum><header>Prohibition on use of information</header><text>Information published pursuant to this section shall not be used by a Federal employee, agency, or officer, or an institution of higher education to take action against an individual.</text></paragraph> <paragraph id="H4DA2174C526A48DEB44DD8694EB98186"><enum>(3)</enum><header>Penalties</header><text display-inline="yes-display-inline">The Secretary shall establish penalties for a violation of paragraph (1) or (2) that includes both a monetary fine and up to 5 years in prison.</text></paragraph></subsection> <subsection commented="no" id="HFC06C63E71864DF1B22918CB4705CAB4"><enum>(c)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this section shall be construed to authorize or permit the Secretary or any employee or contractor of the Department to mandate, direct, or control the selection of practices or curriculum by an institution of higher education.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HC2D005AE0B3646C2A296DB44B3043712"><enum>(b)</enum><header>GAO report</header> <paragraph id="H1980E7BA07694A75A20AD5C367122522"><enum>(1)</enum><header>Study</header><text>The Comptroller General of the United States shall conduct a study that compiles all the institutional publication of information pursuant to section 494B of the Higher Education Act of 1965, as added by subsection (a) of this section.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H24CF29E7FE6E4B87B310375746A57CEE"><enum>(2)</enum><header>Report</header><text>Not later than October 1 of the fourth fiscal year after the date of enactment of this Act, the Comptroller General of the United States shall submit a report containing the results of the study under paragraph (1) to the appropriate committees of Congress.</text></paragraph></subsection></section> <enum>IV</enum><header>School Accountability for Student Loans</header> <section id="H96C3929420624AF1A8E1EDEF4DA755D0"><enum>401.</enum><header>School accountability for student loans</header> <subsection id="H491655E5FEA94A2DA7322DE91A407279"><enum>(a)</enum><header>Default rate fine</header><text display-inline="yes-display-inline">Section 487 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094</external-xref>), as amended by section 201, is further amended—</text> <paragraph id="H157EAC87F672474F873D8E2033A0F907"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HD11F295F53084CEDB3654AFD555B28A1"> <paragraph id="H448FAD2D10874B2A89A32D99C3C61F98"><enum>(31)</enum><text>The institution will pay a default rate fine that is determined pursuant to subsection (k).</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HCE954027165C4CCFB660598BD78F4A5D"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HBB7976CC462F4BE8B686B916E56FFBF7"> <subsection id="HA53F2736949542C39E648CDC6962D1DE"><enum>(k)</enum><header>Default rate fine</header> <paragraph id="HE4FEAC0B2DD344848755D28C976706E5"><enum>(1)</enum><header>In general</header><text>Each institution shall pay to the Secretary an annual default rate fine in accordance with this subsection in an amount determined under paragraph (2).</text></paragraph> <paragraph commented="no" id="HD2E997E35ADE4F9D9262E4F24F83E47C"><enum>(2)</enum><header>Fine</header> <subparagraph commented="no" id="H8C0A7FC0BEAA4BBCBBE8E1D5A1AA33EF"><enum>(A)</enum><header>In general</header><text>Each institution shall pay a default rate fine for a fiscal year in an amount that is equal to the applicable percentage of outstanding loans.</text></subparagraph> <subparagraph commented="no" id="HF97374F2C22F40679A58A68F4FE41B00"><enum>(B)</enum><header>Applicable percentage</header><text>In this paragraph the term <term>applicable percentage</term> means a percentage equal to—</text> <clause commented="no" id="HD3C50FAC501346C584766956CEFEA97B"><enum>(i)</enum><text>15 percent; minus</text></clause> <clause commented="no" id="H25E0E6E1C65A4D9EA1CF00E07CC35B66"><enum>(ii)</enum><text>the average rate of total unemployment in the United States, as determined by the Secretary of Labor.</text></clause></subparagraph> <subparagraph commented="no" id="H50B4C921B67D4C718912E79DB29D2179"><enum>(C)</enum><header>Outstanding loans</header><text>In this paragraph the term <term>outstanding loans</term> means the total amount of loans issued to students for attendance at the institution, for which regular on-time payments are not being made.</text></subparagraph> <subparagraph commented="no" id="H49320BEEFBB146F3BD31530CAACD4BEB"><enum>(D)</enum><header>Regular on-time payments</header><text>In this paragraph the term <term>regular on-time payments</term> means payments that are, at a minimum, equal to the fixed monthly amount necessary to pay off the total amount of Federal student loans of the borrower within the allotted repayment time based on the borrower's repayment plan.</text></subparagraph></paragraph> <paragraph id="HF41CBDBDD471466B833271250497EAA3"><enum>(3)</enum><header>Credit for certain institutions</header><text>Each institution shall receive a $400 credit for a fiscal year for each graduate of the institution who received a Federal Pell Grant while enrolled at the institution during such fiscal year.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HE120552A153A4A51976FCEC1AC2B381C"><enum>(4)</enum><header>Flexibility in counsel and advice</header><text>Notwithstanding any other provision of the Act, the Secretary shall grant institutions of higher education flexibility under this Act to counsel and advise students on Federal financial aid, including granting flexibility for institutions to award less than the maximum amount of Federal student aid for which an individual is eligible if the cost of tuition, room, and board at the institution is less than such maximum amount.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H28358E3CF5EA4CDC82FF5AF55FA4B2D7"><enum>(b)</enum><header>Flexibility in counseling and advice</header><text>Section 485(l) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1092">20 U.S.C. 1092(l)</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7985627819A848A1BE7279C2EB4E7718"> <paragraph id="H70A559CC9EF142BE912ACFE2472C1E0B"><enum>(3)</enum><header>Flexibility in counseling and advice</header><text>In addition to the entrance counseling under paragraph (1), an eligible institution may require any borrower, at or prior to the time of a disbursement to the borrower of a loan made under part D, to receive the information described in paragraph (2) with respect to such loan, or any other financial counseling, including financial literacy counseling.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>