[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3157-S3158]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1666. Mr. LEE submitted an amendment intended to be proposed to 
amendment SA 1502 proposed by Mr. Schumer to the bill S. 1260, to 
establish a new Directorate for Technology and Innovation in the 
National Science Foundation, to establish a regional technology hub 
program, to require a strategy and report on economic security, 
science, research, innovation, manufacturing, and job creation, to 
establish a critical supply chain resiliency program, and for other 
purposes;

[[Page S3158]]

which was ordered to lie on the table; as follows:

       At the end of title I of division F, insert the following:

          Subtitle D--School Accountability for Student Loans

     SEC. 6132. SCHOOL ACCOUNTABILITY FOR STUDENT LOANS.

       (a) Default Rate Fine.--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 pay a default rate fine that is 
     determined pursuant to subsection (k).''; and
       (2) by adding at the end the following:
       ``(k) Default Rate Fine.--
       ``(1) In general.--Each institution described in paragraph 
     (2) shall pay to the Secretary an annual default rate fine in 
     accordance with this subsection.
       ``(2) Applicable institutions.--An institution shall pay a 
     default rate fine under this subsection for a fiscal year 
     based on the cohort default rate (as defined in section 
     435(m)) on loans made under this title for such fiscal year.
       ``(3) Fine.--
       ``(A) In general.--Each institution described in paragraph 
     (2) shall pay a default rate fine for a fiscal year that is 
     equal to 10 percent of the applicable amount determined under 
     subparagraph (B)(i) for such fiscal year.
       ``(B) Applicable amount.--
       ``(i) In general.--The applicable amount for a fiscal year 
     with respect to an institution shall be an amount equal to 
     the product of the amount of loans made under this title for 
     such fiscal year, and the applicable rate determined in 
     clause (ii). If the applicable rate is equal to or less than 
     zero percent then the applicable amount shall be equal to 
     zero.
       ``(ii) Applicable rate.--The applicable rate for a fiscal 
     year with respect to an institution shall be the rate that is 
     equal to the difference between the cohort default rate on 
     loans made under this title (as defined in section 435(m)) 
     for such fiscal year and the average rate of total 
     unemployment in the United States for the 3-year period 
     covered by that cohort default rate (as defined in section 
     435(m)), as determined by the Secretary of Labor.
       ``(4) Credit for certain institutions.--Each institution 
     that is described in paragraph (2) shall receive a $400 
     credit for the fiscal year for each graduate of the 
     institution during such fiscal year who received a Federal 
     Pell Grant while enrolled at the institution.
       ``(5) Flexibility in counsel and advice.--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.''.
       (b) Flexibility in Counseling and Advice.--Section 485(l) 
     of the Higher Education Act of 1965 (20 U.S.C. 1092(l)) is 
     amended by adding at the end the following:
       ``(3) Flexibility in counseling and advice.--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.''.
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