[Congressional Record Volume 170, Number 19 (Thursday, February 1, 2024)]
[Senate]
[Pages S344-S348]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. DURBIN (for himself, Ms. Smith, Mr. Blumenthal, Mr.
Merkley, and Ms. Warren):
S. 3727. A bill to establish the Proprietary Education Interagency
Oversight Committee and to facilitate the disclosure and reporting of
information regarding complaints and investigations related to
proprietary institutions of higher education eligible to receive
Federal education assistance; to the Committee on Health, Education,
Labor, and Pensions.
Mr. DURBIN. Madam President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3727
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 ``Proprietary Education
Oversight Task Force Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Accrediting agency.--The term ``accrediting agency''
means a private educational association that acts as a
reliable authority on the quality of education or training
provided by an institution of higher education and is
recognized by the Secretary under section 496 of the Higher
Education Act of 1965 (20 U.S.C. 1099b).
(2) Department.--Unless otherwise expressly provided, the
term ``Department'' means the Department of Education.
(3) Executive officer.--The term ``executive officer'',
with respect to a proprietary institution of higher education
that is a publicly traded corporation, means--
(A) the president of the corporation;
(B) a vice president of the corporation who is in charge of
a principal business unit, division, or function of the
corporation, such as sales, administration, or finance; or
(C) any other officer or person who performs a policy-
making function for the corporation, including an executive
officer of a subsidiary of the corporation if the officer
performs a policy making function for the corporation.
(4) Federal education assistance.--The term ``Federal
education assistance'' when used with respect to a
proprietary institution of higher education, means Federal
funds that are disbursed or delivered by the Department, the
Department of Veterans Affairs, or the Department of Defense
to, or on behalf of, a student to be used for tuition, fees,
instruction, or any other component of the student's cost of
attendance (as defined in section 472 of the Higher Education
Act of 1965 (20 U.S.C. 1087ll)) to attend the institution.
(5) Institutional debt.--The term ``institutional debt''
means any debt owed by a student or the parent of a student
to an institution of higher education, including--
(A) debt owed through a private loan program, income-share
agreement, or other financing product operated by the
institution;
(B) debt owed from a return of student assistance made,
insured, or guaranteed under title IV of the Higher Education
Act 1965 (20 U.S.C. 1070 et seq.) to the Department; and
(C) debt owed from the student's nonpayment of
institutional charges or fees.
(6) Private education loan.--The term ``private education
loan''--
(A) means a loan provided by a private educational lender
(as defined in section 140(a) of the Truth in Lending Act (15
U.S.C. 1650(a))) that--
(i) is not made, insured, or guaranteed under title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
(ii) is issued expressly for postsecondary educational
expenses to a borrower, regardless of whether the loan is
provided through the educational institution that the subject
student attends or directly to the borrower from the private
educational lender (as so defined); and
(iii) is not made, insured, or guaranteed under title VII
or title VIII of the Public Health Service Act (42 U.S.C. 292
et seq. and 296 et seq.); and
(B) does not include an extension of credit under an open-
end consumer credit plan, a reverse mortgage transaction, a
residential mortgage transaction, or any other loan that is
secured by real property or a dwelling.
(7) Proprietary institution of higher education.--The term
``proprietary institution of higher education'' has the
meaning given the term in section 102(b) of the Higher
Education Act of 1965 (20 U.S.C. 1002(b)).
(8) Recruiting and marketing activities.--
(A) In general.--Except as provided in subparagraph (B),
the term ``recruiting and marketing activities'' means
activities that include any of the following:
(i) Advertising and promotional activities, including paid
announcements in newspapers, magazines, radio, television,
billboards, electronic media, naming rights, or any other
public medium of communication, including paying for displays
or promotions at job fairs, military installations, or
college recruiting events, that are made directly or
indirectly to a student, a prospective student, the public,
an accrediting agency, a State agency, or to the Secretary by
a proprietary institution of higher education, one of its
representatives, or any person with whom the institution has
an agreement to provide educational programs, advertising, or
admissions services.
(ii) Misleading statement, misrepresentation, and
substantial misrepresentation (as defined in section
668.71(c) of title 34, Code of Federal Regulations, or any
successor regulation).
(iii) Efforts to identify and attract prospective students,
either directly or through a contractor or other third party,
including contact concerning a prospective student's
potential enrollment or application for a grant, a loan, or
work assistance under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.) or participation in
preadmission or advising activities, including soliciting an
individual to provide contact information to a proprietary
institution
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of higher education, including through websites established
for that purpose and funds paid to third parties for that
purpose.
(iv) Other activities as the Secretary may prescribe,
including paying for promotion or sponsorship of education or
military-related associations.
(B) Exceptions.--Any activity that is required as a
condition of the receipt of funds by an institution of higher
education under title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.), is specifically authorized under
that title, or is otherwise specified by the Secretary, is
not a recruiting and marketing activity under subparagraph
(A).
(9) Secretary.--Unless otherwise expressly provided, the
term ``Secretary'' means the Secretary of Education.
(10) State approval agency.--The term ``State approval
agency'' means any State agency that determines whether an
institution of higher education is legally authorized within
the State to provide a program of education beyond secondary
education.
(11) Veterans service organization.--The term ``veterans
service organization'' means an organization that is--
(A) recognized by the Secretary of Veterans Affairs for the
representation of veterans under section 5902 of title 38,
United States Code;
(B) congressionally chartered under title 36, United States
Code, and serves or represents veterans;
(C) recognized by the Secretary of Veteran Affairs under
section 14.628 of title 38, Code of Federal Regulations (or a
successor regulation), as a national organization, State
organization, tribal organization, or regional or local
organization; or
(D) an organization that has a record of demonstrating
expertise in, assists in, or serves the interests of veterans
in education.
SEC. 3. ESTABLISHMENT OF PROPRIETARY EDUCATION INTERAGENCY
OVERSIGHT COMMITTEE.
(a) Establishment.--There is established the Proprietary
Education Interagency Oversight Committee (referred to in
this Act as the ``Committee'') to be composed of the head (or
the designee of the head who is designated under subsection
(d)) of each of the following:
(1) The Department.
(2) The Consumer Financial Protection Bureau.
(3) The Department of Justice.
(4) The Securities and Exchange Commission.
(5) The Department of Defense.
(6) The Department of Veterans Affairs.
(7) The Federal Trade Commission.
(8) The Department of Labor.
(9) The Internal Revenue Service.
(10) At the discretion of the President, any other relevant
Federal agency.
(b) Purposes.--The Committee shall have the following
purposes:
(1) To improve enforcement of applicable Federal laws and
regulations.
(2) To increase accountability of proprietary institutions
of higher education to students and taxpayers.
(3) To ensure the promotion of high-quality education
programs.
(4) To reduce and prevent fraud and abuse by proprietary
institutions of higher education.
(c) Responsibilities.--To meet the purposes described in
subsection (b), the Committee shall--
(1) coordinate administrative oversight of proprietary
institutions of higher education--
(A) such that the Federal agencies represented on the
Committee may develop a memorandum of understanding to
specify responsibilities of each of those agencies in
creating the report under section 6;
(B) to encourage information-sharing, to the extent
practicable, among those agencies related to Federal
investigations, audits, or inquiries of proprietary
institutions of higher education; and
(C) to increase coordination and cooperation between
Federal and State agencies, including State Attorneys General
and State approval agencies, with respect to improving
oversight and accountability of proprietary institutions of
higher education; and
(2) synthesize cross-agency industry data on proprietary
institutions of higher education to--
(A) develop an annual report under section 6;
(B) publish a ``For-Profit College Warning List for Parents
and Students'', in accordance with section 7; and
(C) develop consistency among Federal and State agencies in
the dissemination of consumer information regarding
proprietary institutions of higher education to ensure that
students, parents, and other stakeholders have easy access to
that information.
(d) Membership.--
(1) Designees.--The head of a Federal agency listed in
subsection (a) may designate a high-ranking official of the
agency to serve as a designee on the Committee. The designee
shall be, whenever possible, the head of the portion of the
agency that is most relevant to the purposes described in
subsection (b).
(2) Chairperson.--The Secretary or the Secretary's designee
shall serve as the Chairperson of the Committee.
(3) Committee support.--The Chairperson of the Committee
shall ensure that appropriate staff and officials at the
Department are available to support Committee-related work.
(e) Committee Meetings.--The members of the Committee shall
meet regularly, but not less often than once during each
quarter of each fiscal year, to carry out the purposes
described in subsection (b) and the responsibilities
described in subsection (c).
(f) Notification to Individuals Who Submit Complaints.--The
head of each Federal agency listed in subsection (a) shall
notify each individual who submits to the Federal agency a
complaint with respect to a proprietary institution of higher
education that information from the complaint may be used to
carry out the purposes described in subsection (b).
SEC. 4. PROPRIETARY EDUCATION OVERSIGHT ADVISORY COMMITTEE.
(a) In General.--The Department shall establish a
Proprietary Education Oversight Advisory Committee (referred
to in this Act as the ``Advisory Committee'') to advise the
Committee. The Advisory Committee shall meet not less often
than twice each fiscal year.
(b) FACA Applicability.--The Advisory Committee shall be
subject to chapter 10 of title 5, United States Code
(commonly referred to as the ``Federal Advisory Committee
Act'').
(c) Membership.--
(1) In general.--The Advisory Committee shall have 13
members, of which--
(A) 4 members shall be representatives from State attorneys
general--
(i) 2 of whom shall be appointed by the Speaker of the
House of Representatives, 1 of whom shall be appointed on the
recommendation of the majority leader of the House of
Representatives, and 1 of whom shall be appointed on the
recommendation of the minority leader of the House of
Representatives; and
(ii) 2 of whom shall be appointed by the President pro
tempore of the Senate, 1 of whom shall be appointed on the
recommendation of the majority leader of the Senate, and 1 of
whom shall be appointed on the recommendation of the minority
leader of the Senate; and
(B) 9 members shall be appointed by the Secretary, of
whom--
(i) 1 member shall be a representative from a State
approval agency;
(ii) 1 member shall be a representative from a veterans
service organization;
(iii) 1 member shall be a representative from an
accrediting agency;
(iv) 1 member shall be a representative from a civil rights
organization;
(v) 1 member shall be a representative from a proprietary
institution of higher education;
(vi) 1 member shall be a current student of a proprietary
institution of higher education who is a dependent student;
(vii) 1 member shall be a current student of a proprietary
institution of higher education who is an independent
student;
(viii) 1 member shall be a representative from a consumer
advocate organization; and
(ix) 1 member shall be a representative from a legal
assistance organization that represents students or
borrowers.
(2) Qualifications.--Individuals shall be appointed as
members of the Advisory Committee--
(A) on the basis of the individuals' experience, integrity,
impartiality, and good judgment; and
(B) on the basis of the individuals' technical
qualifications, professional standing, and demonstrated
knowledge in the field of proprietary education.
(3) Terms of members.--The term of office of each member of
the Advisory Committee shall be for 6 years, except that any
member appointed to fill a vacancy occurring prior to the
expiration of the term for which the member's predecessor was
appointed shall be appointed for the remainder of such term.
(4) Vacancy.--A vacancy on the Advisory Committee shall be
filled in the same manner as the original appointment was
made not later than 90 days after the vacancy occurs. If a
vacancy occurs in a position to be filled by the Secretary,
the Secretary shall publish a Federal Register notice
soliciting nominations for the position not later than 30
days after being notified of the vacancy.
(d) Duties.--The Advisory Committee shall provide advice
and recommendations to the Committee with respect to--
(1) complaints filed against proprietary institutions of
higher education with State attorneys general or State
approval agencies;
(2) State enforcement actions against proprietary
institutions of higher education;
(3) minority enrollment in proprietary institutions of
higher education;
(4) veteran enrollment in proprietary institutions of
higher education;
(5) outcome measures at proprietary institutions of higher
education, including graduation rates, percent of graduates
earning more than a high school graduate, and licensure pass
rates;
(6) student loan burden from enrollment at proprietary
institutions of higher education, including median amount
owed disaggregated by degree type, cohort default rate, and
percent of students in repayment;
(7) marketing and recruitment practices at proprietary
institutions of higher education;
(8) per pupil expenditure for instructional purposes at
proprietary institutions of higher education;
(9) enforcement actions the Federal Government should take
against proprietary institutions of higher education; and
(10) preparation of the report under section 6.
[[Page S346]]
(e) Sharing of Data From Complaints.--To carry out the
duties described under subsection (d), the Advisory Committee
may share among the members of the Advisory Committee and the
Committee information from complaints filed against
proprietary institutions of higher education consistent with
the protection of the privacy and confidentiality of
personally identifiable information.
SEC. 5. COLLECTION AND TRACKING OF COMPLAINTS.
(a) In General.--
(1) Centralized collection, monitoring, and response.--In
consultation with the Committee, the Secretary shall
establish a single, toll-free telephone number, a website,
and a database (or use an existing database) to facilitate
the centralized collection of, monitoring of, and response to
student complaints regarding the services or activities of
any proprietary institution of higher education that is
eligible for Federal education assistance.
(2) Coordination.--The Committee shall coordinate with the
Federal agencies represented on the Committee to route
complaints to those agencies, where appropriate, and
consistent with--
(A) the protection of the privacy and confidentiality of
personally identifiable information; and
(B) data security and integrity.
(b) Use of Complaint Information.--Information collected
from complaints under subsection (a) shall be used--
(1) to facilitate coordination among the Federal agencies
represented on the Committee;
(2) to facilitate investigations and enforcement actions
against proprietary institutions of higher education;
(3) to prepare the report under section 6; and
(4) to prepare the For-Profit College Warning List for
Parents and Students under section 7.
(c) Routing Complaints to States.--To the extent
practicable, State approval agencies may receive appropriate
complaints from the systems established under subsection (a),
if--
(1) the State approval agency system has the functional
capacity to receive calls or electronic reports routed by the
systems of the Department;
(2) the State approval agency has satisfied any conditions
of participation in the system that the Department may
establish, including treatment of personally identifiable
information and sharing of information on complaint
resolution or related compliance procedures and resources;
and
(3) participation by the State approval agency includes
measures necessary to provide for protection of personally
identifiable information that conform to the Federal laws and
standards for protection of the privacy and confidentiality
of personally identifiable information and for data integrity
and security that apply to the Federal agencies described in
subsection (d).
(d) Data-sharing Required.--
(1) In general.--To facilitate preparation of the reports
required under section 6, supervision and enforcement
activities, and monitoring of the market for educational
services provided by any proprietary institution of higher
education that is eligible for Federal education assistance,
the Committee members shall share student complaint
information with accrediting agencies, the Federal Trade
Commission, other Federal agencies, and State agencies,
subject to the Federal laws and standards applicable to
Federal agencies for the protection of the privacy and
confidentiality of personally identifiable information and
for data security and integrity.
(2) Sharing of data with the department.--The accrediting
agencies, the Federal Trade Commission, and other Federal
agencies shall share data relating to student complaints
regarding educational services provided by any proprietary
institution of higher education with the Department, subject
to the Federal laws and standards applicable to Federal
agencies for the protection of the privacy and
confidentiality of personally identifiable information and
for data security and integrity.
SEC. 6. REPORT.
(a) In General.--The Committee shall submit an annual
report to the Committee on Health, Education, Labor, and
Pensions of the Senate, the Committee on Education and the
Workforce of the House of Representatives, and any other
committee of Congress that the Committee determines
appropriate.
(b) Confidentiality and Public Access.--The report
described in subsection (a)--
(1) shall not contain any personally identifiable
information; and
(2) shall be made available to the public in a manner that
is easily accessible to parents, students, and other
stakeholders.
(c) Contents.--
(1) In general.--The report described in subsection (a)
shall include--
(A) a description of the role of each member of the
Committee in achieving the purposes described in section
3(b);
(B) an accounting of any negative or adverse action taken
by the Federal Government, any member agency of the
Committee, or a State to enforce Federal or State laws and
regulations applicable to a proprietary institution of higher
education;
(C) a summary of complaints received, resolved, or pending
against each proprietary institution of higher education
during the applicable year, including--
(i) student complaints collected by the complaint system
established under section 5 or received by any member agency
of the Committee;
(ii) any complaint filed by a Federal or State agency in a
Federal, State, local, or Tribal court;
(iii) any administrative proceeding by a Federal or State
agency involving noncompliance of any applicable law or
regulation;
(iv) any other review, audit, or administrative process by
any Federal or State agency that results in a penalty,
suspension, or termination from any Federal or State program;
and
(v) any complaint, review, audit, or administrative process
by an accrediting agency that results in probation or
equivalent action, denial, withdrawal, suspension, or
termination of accreditation;
(D) the data described in paragraph (2) and any other data
relevant to proprietary institutions of higher education that
the Committee determines appropriate; and
(E) recommendations of the Committee for the legislative
and administrative actions as the Committee determines are
necessary to--
(i) improve enforcement of applicable Federal laws;
(ii) increase accountability of proprietary institutions of
higher education to students, parents, and taxpayers;
(iii) reduce and prevent fraud and abuse by proprietary
institutions of higher education; and
(iv) ensure the promotion of quality education programs.
(2) Data.--
(A) Industry-wide data.--The report described in subsection
(a) shall include data on all proprietary institutions of
higher education that consists of information regarding--
(i) the total amount of Federal education assistance that
proprietary institutions of higher education received for the
previous academic year, and the percentage of the total
amount of Federal education assistance provided to
institutions of higher education (as defined in section 102
of the Higher Education Act of 1965 (20 U.S.C. 1002)) for the
previous academic year that reflects the total amount of
Federal education assistance provided to proprietary
institutions of higher education for the previous academic
year;
(ii) the total amount of Federal education assistance that
proprietary institutions of higher education received for the
previous academic year, disaggregated by--
(I) educational assistance in the form of a loan provided
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.);
(II) educational assistance in the form of a grant provided
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.);
(III) educational assistance provided under chapter 33 of
title 38, United States Code;
(IV) assistance for tuition and expenses under section 2007
of title 10, United States Code;
(V) assistance provided under section 1784a of title 10,
United States Code; and
(VI) Federal education assistance not described in
subclauses (I) through (V);
(iii) the percentage of the total amount of Federal
education assistance provided to institutions of higher
education (as defined in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002)) for the previous academic year
for each of the programs described in subclauses (I) through
(VI) of clause (ii), that reflects the total amount of
Federal education assistance provided to proprietary
institutions of higher education for the previous academic
year for each of those programs;
(iv) the average retention and graduation rates for
students pursuing a degree at proprietary institutions of
higher education;
(v) the average cohort default rate (as defined in section
435(m) of the Higher Education Act of 1965 (20 U.S.C.
1085(m)) for proprietary institutions of higher education,
and the cohort default rate for each proprietary institution
of higher education;
(vi) the average pre-enrollment expenditures on a per-
enrolled-student basis, including expenditures on recruiting
and marketing activities;
(vii) the average educational and general expenditures (as
defined in section 502 of the Higher Education Act of 1965
(20 U.S.C. 1101a)) per student, excluding all pre-enrollment
expenditures;
(viii) for careers requiring the passage of a licensing
examination--
(I) the passing rate of individuals who attended a
proprietary institution of higher education taking the
examination to pursue such a career; and
(II) the passing rate of all individuals taking the exam to
pursue such a career; and
(ix) the use of private education loans at proprietary
institutions of higher education that includes--
(I) an estimate of the total number of those loans;
(II) information on the average debt, default rate, and
interest rate of those loans; and
(III) the names of each lender providing private education
loans to borrowers with respect to each proprietary
institution of higher education in the prior academic year,
including--
(aa) the number of borrowers receiving loans from each
lender; and
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(bb) the volume of dollars provided to borrowers with
respect to the proprietary institution of higher education by
each lender.
(B) Data on publicly traded corporations.--
(i) In general.--The report described in subsection (a)
shall include data on proprietary institutions of higher
education that are publicly traded corporations, consisting
of information on--
(I) any pre-tax profit of those proprietary institutions of
higher education--
(aa) reported as a total amount and an average percent of
revenue for all those proprietary institutions of higher
education; and
(bb) reported for each of those proprietary institutions of
higher education;
(II) revenue for those proprietary institutions of higher
education spent on recruiting and marketing activities,
student instruction, and student support services, reported--
(aa) as a total amount and an average percentage of revenue
for all those proprietary institutions of higher education;
and
(bb) for each of those proprietary institutions of higher
education;
(III) total compensation packages, including bonuses, of
the executive officers of each of those proprietary
institutions of higher education;
(IV) a list of institutional loan programs offered by each
of those proprietary institutions of higher education that
includes information on the default and interest rates of
those programs; and
(V) the data described in clauses (ii) and (iii).
(ii) Disaggregated by ownership.--The report shall include
data on proprietary institutions of higher education that are
publicly traded corporations, disaggregated by corporate or
parent entity, brand name, and campus, consisting of--
(I) the average total cost of attendance at each
proprietary institution of higher education, and information
comparing the total cost for each program to--
(aa) the average total cost of attendance--
(AA) at each public institution of higher education; and
(BB) at each public institution of higher education that
offers the same level of education degree or certification as
the proprietary institution of higher education; and
(bb) the average total cost of attendance--
(AA) at all institutions of higher education, including
institutions that are public and institutions that are
private; and
(BB) at all institutions of higher education that offer the
same level of education degree or certification as the
proprietary institution of higher education, including
institutions that are public and institutions that are
private;
(II) total enrollment, disaggregated by--
(aa) individuals enrolled in programs taken online;
(bb) individuals enrolled in programs that are not taken
online; and
(cc) individuals enrolled in programs taken both online and
not online;
(III) the average retention and graduation rates for
students pursuing a degree at proprietary institutions of
higher education;
(IV) the percentage of students enrolled in proprietary
institutions of higher education who complete a program of an
institution within--
(aa) the standard period of completion for the program; and
(bb) a period that is 150 percent of the standard period of
completion;
(V) the average total cost of attendance for each program
at proprietary institutions of higher education;
(VI) the average cohort default rate, as defined in section
435(m) of the Higher Education Act of 1965 (20 U.S.C.
1085(m)), for proprietary institutions of higher education,
and an annual list of cohort default rates (as so defined)
for all proprietary institutions of higher education;
(VII) the median Federal educational debt incurred by
students who complete a program at a proprietary institution
of higher education;
(VIII) the median Federal educational debt incurred by
students who start but do not complete a program at a
proprietary institution of higher education;
(IX) the job placement rate for students who complete a
program at a proprietary institution of higher education and
the type of employment obtained by those students;
(X) for careers requiring the passage of a licensing
examination, the passing rate for individuals who attended a
proprietary institution of higher education and passed the
examination;
(XI) the number of complaints from students enrolled in
proprietary institutions of higher education who have
submitted a complaint to any member agency of the Committee;
and
(XII) the volume of institutional debt, number of students
who owe institutional debts, and average amount of
institutional debt owed by each student.
(iii) Department of defense and veterans affairs
assistance.--
(I) In general.--To the extent practicable, the report
described in subsection (a) shall provide information on the
data described in clause (ii) for individuals using, to pay
for the costs of attending a proprietary institution of
higher education, Federal education assistance provided
under--
(aa) chapter 33 of title 38, United States Code;
(bb) section 2007 of title 10, United States Code; and
(cc) section 1784a of title 10, United States Code.
(II) Revenue.--The report shall provide information on the
revenue of proprietary institutions of higher education that
are publicly traded corporations that is derived from the
Federal education assistance described in subclause (I).
(C) Comparison data.--To the extent practicable, the report
shall provide information comparing the data described in
subparagraph (B) for proprietary institutions of higher
education that are publicly traded corporations with data for
public institutions of higher education disaggregated by
State.
(3) Accounting of any action.--As used in paragraph (1)(B),
the term ``any negative or adverse action'' includes--
(A) a complaint filed by a Federal or State agency in a
local, State, Federal, or Tribal court;
(B) an administrative proceeding by a Federal or State
agency involving noncompliance with any applicable law or
regulation; or
(C) any other review, audit, or administrative process by
any Federal or State agency that results in a penalty,
suspension, or termination from any Federal or State program.
SEC. 7. FOR-PROFIT COLLEGE WARNING LIST FOR PARENTS AND
STUDENTS.
(a) In General.--Each academic year, the Secretary on
behalf of the Committee shall publish a list to be known as
the ``For-Profit College Warning List for Parents and
Students'' to be comprised of the names of proprietary
institutions of higher education--
(1) that have been sued for financial relief by a Federal
or State authority, or through a qui tam action in which the
Federal Government has intervened;
(2) that are required to pay a debt or incur a liability
from a settlement, arbitration proceeding, or final judgment
in a judicial proceeding with a Federal or State agency and
the case addresses misrepresentation, fraud, liability under
sections 3729 through 3733 of title 31, United States Code
(commonly known as the ``False Claims Act''), or other
borrower-defense-to-repayment claims;
(3) that have pending claims for borrower relief discharge
under the borrower defense to repayment regulations from
students or former students of the institution and the
Secretary has formed a group process to consider the claims;
(4) that have had any eligibility for participation
withdrawn or suspended with respect to--
(A) educational assistance in the form of a loan provided
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.);
(B) educational assistance in the form of a grant provided
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.);
(C) educational assistance provided under chapter 33 of
title 38, United States Code;
(D) assistance for tuition and expenses under section 2007
of title 10, United States Code;
(E) assistance provided under section 1784a of title 10,
United States Code; or
(F) Federal education assistance not described in
subparagraphs (A) through (E); or
(5) that have been deemed ineligible to receive Federal
education assistance for the next year or required to repay
Federal education assistance previously received in an
applicable report year.
(b) Summary.--The For-Profit College Warning List for
Parents and Students shall include a summary in plain
language of the basis of each proprietary institution of
higher education's inclusion on the list.
(c) Procedures.--The Committee shall establish and apply
review procedures for the For-Profit College Warning List for
Parents and Students, including evaluation and withdrawal
proceedings that provide--
(1) for adequate written specification of--
(A) the procedure for identifying proprietary intuitions of
higher education for inclusion on the list; and
(B) identified deficiencies at the proprietary institutions
of higher education; and
(2) for sufficient opportunity for a written response by a
proprietary institution of higher education regarding any
deficiencies identified by the Committee--
(A) within a timeframe determined by the Committee; and
(B) prior to the final publication of the For-Profit
College Warning List for Parents and Students.
(d) Publication.--
(1) In general.--Not later than July 1 of each fiscal year,
on behalf of the Committee, the Secretary shall publish the
For-Profit College Warning List for Parents and Students
prominently and in a manner that--
(A) is easily accessible to parents, current students,
prospective students, and other stakeholders; and
(B) does not contain any personally identifiable
information.
(2) Use of preexisting platform.--The Secretary may
incorporate the For-Profit College Warning List for Parents
and Students into preexisting, widely used platforms.
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