SUBCHAPTER I—GENERAL PROVISIONS
Editorial Notes
Codification
Title I of the Higher Education Act of 1965, comprising this subchapter, was originally enacted by
Part A—Definitions
§1001. General definition of institution of higher education
(a) Institution of higher education
For purposes of this chapter, other than subchapter IV, the term "institution of higher education" means an educational institution in any State that—
(1) admits as regular students only persons having a certificate of graduation from a school providing secondary education, or the recognized equivalent of such a certificate, or persons who meet the requirements of
(2) is legally authorized within such State to provide a program of education beyond secondary education;
(3) provides an educational program for which the institution awards a bachelor's degree or provides not less than a 2-year program that is acceptable for full credit toward such a degree, or awards a degree that is acceptable for admission to a graduate or professional degree program, subject to review and approval by the Secretary;
(4) is a public or other nonprofit institution; and
(5) is accredited by a nationally recognized accrediting agency or association, or if not so accredited, is an institution that has been granted preaccreditation status by such an agency or association that has been recognized by the Secretary for the granting of preaccreditation status, and the Secretary has determined that there is satisfactory assurance that the institution will meet the accreditation standards of such an agency or association within a reasonable time.
(b) Additional institutions included
For purposes of this chapter, other than subchapter IV, the term "institution of higher education" also includes—
(1) any school that provides not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation and that meets the provision of paragraphs (1), (2), (4), and (5) of subsection (a); and
(2) a public or nonprofit private educational institution in any State that, in lieu of the requirement in subsection (a)(1), admits as regular students individuals—
(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or
(B) who will be dually or concurrently enrolled in the institution and a secondary school.
(c) List of accrediting agencies
For purposes of this section and
(
Editorial Notes
Prior Provisions
Provisions similar to this section were contained in
A prior section 1001,
Another prior section 1001,
Another prior section 1001,
Another prior section 1001,
Amendments
2011—Subsec. (a)(1).
2008—Subsec. (a)(1).
Subsec. (a)(3).
Subsec. (b)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Effective Date of 2011 Amendment
Effective Date of 2009 Amendment
Effective Date of 2008 Amendment
Effective Date of 1998 Amendment
Effective Date of 1992 Amendment
Effective Date of 1987 Amendment
Effective Date of 1986 Amendment
Effective Date of 1980 Amendment
"(a) Except as provided in subsection (b), this Act and the amendments made by this Act [see Tables for classification] shall take effect on October 1, 1980.
"(b)(1) The amendment made by section 301 of this Act to title III of the Act [enacting subchapter III of this chapter] shall take effect October 1, 1981.
"(2) The amendment made by section 404(c)(4) of this Act to section 415C(b)(4) of the Act [amending
"(3) The amendment made by section 405 to subpart 4 of part A of title IV of the Act [amending subpart 4 of part A of subchapter IV of this chapter generally] shall take effect October 1, 1981.
"(4) The amendments made by part B of title IV of this Act [enacting
"(5) The amendments made by part D of title IV of this Act [enacting
"(6) The amendment made by section 701 of this Act adding section 731 of the Act [former
Effective Date of 1976 Amendment
"(1) as specifically otherwise provided; and
"(2) that each amendment made by this Act (not subject to clause (1) of this section) providing for authorization of appropriations shall take effect July 1, 1976."
Short Title of 2024 Amendment
Short Title of 2022 Amendment
Short Title of 2021 Amendment
Short Title of 2020 Amendment
Short Title of 2019 Amendment
Short Title of 2015 Amendment
Short Title of 2013 Amendment
Short Title of 2010 Amendment
Short Title of 2008 Amendment
Short Title of 2007 Amendment
Short Title of 2006 Amendment
Short Title of 2005 Amendments
Short Title of 2004 Amendment
Short Title of 2000 Amendments
Short Title of 1998 Amendment
Short Title of 1997 Amendment
Short Title of 1996 Amendment
Short Title of 1994 Amendment
Short Title of 1993 Amendments
Short Title of 1992 Amendment
Short Title of 1991 Amendment
Short Title of 1990 Amendments
Short Title of 1989 Amendment
Short Title of 1987 Amendment
Short Title of 1986 Amendments
Short Title of 1983 Amendments
Short Title of 1982 Amendment
Short Title of 1981 Amendment
Short Title of 1980 Amendment
Short Title of 1979 Amendment
Short Title of 1978 Amendments
Short Title of 1976 Amendments
Short Title of 1972 Amendment
Short Title of 1968 Amendment
Short Title of 1966 Amendment
Short Title
For short title of
Emergency Financial Aid Grants
"(a)
"(1) such grant shall not be included in the gross income of such individual for purposes of the Internal Revenue Code of 1986 [
"(2) such grant shall not be treated as described in subparagraph (A), (B), or (C) of section 25A(g)(2) of such Code [
"(b)
"(1) any emergency financial aid grant awarded by an institution of higher education under section 3504 of the CARES Act [section 3504 of
"(2) any emergency financial aid grant from an institution of higher education made with funds made available under section 18004 of the CARES Act [
"(3) any other emergency financial aid grant made to a student from a Federal agency, a State, an Indian tribe, an institution of higher education, or a scholarship-granting organization (including a tribal organization, as defined in section 4 of the Indian Self-Determination and Education Assistance Act (
"(c)
"(d)
Guidance to States
Forgiveness of HBCU Capital Financing Loans
"(a)
"(b)
"(1) A closed loan agreement executed before the date of enactment of this Act [Dec. 27, 2020] and made under part D of title III of the Higher Education Act of 1965 (
"(2) A closed loan agreement executed before the date of enactment of this Act and made for deferment balances authorized under—
"(A) section 3512 of the CARES Act [
"(B) title III of division A of the Further Consolidated Appropriations Act, 2020 (
"(C) title III of division B of the Department of Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (
"(D) title III of division H of the Consolidated Appropriations Act, 2018 (
"(c)
"(d)
COVID–19 Pandemic Education Relief
"(a)
"(b)
"(c)
"(1) described by the Department of Education in the Federal Register on October 12, 2022 (87 Fed. Reg. 61513 et seq.); and
"(2) most recently extended in the announcement by the Department of Education on November 22, 2022."
"SEC. 3502. DEFINITIONS.
"(a)
"(1)
"(2)
"(3)
"(4)
"(A) a public health emergency related to the coronavirus declared by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act (
"(B) an event related to the coronavirus for which the President declared a major disaster or an emergency under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (
"(C) a national emergency related to the coronavirus declared by the President under section 201 of the National Emergencies Act (
"(5)
"SEC. 3503. CAMPUS-BASED AID WAIVERS.
"(a)
"(b)
"SEC. 3504. USE OF SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS FOR EMERGENCY AID.
"(a)
"(b)
"(1) waive the amount of need calculation under section 471 of the Higher Education Act of 1965 (
"(2) allow for a student affected by a qualifying emergency to receive funds in an amount that is not more than the maximum Federal Pell Grant for the applicable award year; and
"(3) utilize a contract with a scholarship-granting organization designated for the sole purpose of accepting applications from or disbursing funds to students enrolled in the institution of higher education, if such scholarship-granting organization disburses the full allocated amount provided to the institution of higher education to the recipients.
"(c)
"SEC. 3505. FEDERAL WORK-STUDY DURING A QUALIFYING EMERGENCY.
"(a)
"(1) Payments may be made under such part to affected work-study students in an amount equal to or less than the amount of wages such students would have been paid under such part had the students been able to complete the work obligation necessary to receive work study funds, as a one time grant or as multiple payments.
"(2) Payments shall not be made to any student who was not eligible for work study or was not completing the work obligation necessary to receive work study funds under such part prior to the occurrence of the qualifying emergency.
"(3) Any payments made to affected work-study students under this subsection shall meet the matching requirements of section 443 of the Higher Education Act of 1965 (
"(b)
"(1) received a work-study award under section 443 of the Higher Education Act of 1965 (
"(2) earned Federal work-study wages from such eligible institution for such academic year; and
"(3) was prevented from fulfilling the student's work-study obligation for all or part of such academic year due to such qualifying emergency.
"SEC. 3506. ADJUSTMENT OF SUBSIDIZED LOAN USAGE LIMITS.
"Notwithstanding [former] section 455(q)(3) of the Higher Education Act of 1965 ([former] 20 U.S.C. 1087e(q)(3)), the Secretary shall exclude from a student's period of enrollment for purposes of loans made under part D of title IV of the Higher Education Act of 1965 (
"SEC. 3507. EXCLUSION FROM FEDERAL PELL GRANT DURATION LIMIT.
"The Secretary shall exclude from a student's Federal Pell Grant duration limit under section 401(c)(5) of the Higher Education Act of 1965 (
"SEC. 3508. INSTITUTIONAL REFUNDS AND FEDERAL STUDENT LOAN FLEXIBILITY.
"(a)
"(1)
"(2)
"(b)
"(c)
"(d)
"SEC. 3509. SATISFACTORY ACADEMIC PROGRESS.
"Notwithstanding section 484 of the Higher Education Act of 1965 (
"SEC. 3510. CONTINUING EDUCATION AT AFFECTED FOREIGN INSTITUTIONS.
"(a)
"(b)
"(1) for the 2019–2020 award year, not later than June 30, 2020; and
"(2) for an award year subsequent to the 2019–2020 award year, not later than 30 days after such use.
"(c)
"(d)
"(1)
"(2)
"(A)
"(B)
"(3)
"(A) for the 2019–2020 award year, not later than June 30, 2020; and
"(B) for an award year subsequent to the 2019–2020 award year, not later than 10 days after such use.
"(4)
"(A) the name of the foreign institution;
"(B) the name of the institution of higher education located in the United States that has entered into a written arrangement with such foreign institution; and
"(C) information regarding the nature of such written arrangement, including which coursework or program requirements are accomplished at each respective institution.
"(e)
"(1)
"(A) beginning on the first day of—
"(i) a qualifying emergency; or
"(ii) a public health emergency, major disaster or emergency, or national emergency declared by the applicable government authorities in the country in which the foreign institution is located; and
"(B) ending on the later of—
"(i) subject to paragraph (2), the last day of the payment period, for purposes of title IV of the Higher Education Act of 1965 (
"(ii) June 30, 2023.
"(2)
"SEC. 3512. HBCU CAPITAL FINANCING.
"(a)
"(1)
"(2)
"(A) the institution shall not be required to pay any periodic installment of principal or interest required under the loan agreement for such loan; and
"(B) the Secretary shall make principal and interest payments otherwise due under the loan agreement.
"(3)
"(b)
"(1)
"(2)
"(c)
"(d)
"SEC. 3513. TEMPORARY RELIEF FOR FEDERAL STUDENT LOAN BORROWERS.
"(a)
"(b)
"(c)
"(d)
"(e)
"(1) a wage garnishment authorized under section 488A of the Higher Education Act of 1965 (
"(2) a reduction of tax refund by amount of debt authorized under
"(3) a reduction of any other Federal benefit payment by administrative offset authorized under
"(4) any other involuntary collection activity by the Secretary.
"(f)
"(1) subchapter I of
"(2) the master calendar requirements under section 482 of the Higher Education Act of 1965 (
"(3) negotiated rulemaking under section 492 of the Higher Education Act of 1965 (
"(4) the requirement to publish the notices related to the system of records of the agency before implementation required under paragraphs (4) and (11) of
"(g)
"(1) not later than 15 days after the date of enactment of this Act, notify borrowers—
"(A) of the actions taken in accordance with subsections (a) and (b) for whom payments have been suspended and interest waived;
"(B) of the actions taken in accordance with subsection (e) for whom collections have been suspended;
"(C) of the option to continue making payments toward principal; and
"(D) that the program under this section is a temporary program.
"(2) beginning on August 1, 2020, carry out a program to provide not less than 6 notices by postal mail, telephone, or electronic communication to borrowers indicating—
"(A) when the borrower's normal payment obligations will resume; and
"(B) that the borrower has the option to enroll in income-driven repayment, including a brief description of such options.
"SEC. 3517. WAIVER AUTHORITY AND REPORTING REQUIREMENT FOR INSTITUTIONAL AID.
"(a)
"(1) waive—
"(A) the eligibility data requirements set forth in section 391(d) and 521(e) of the Higher Education Act of 1965 (
"(B) the wait-out period set forth in section 313(d) of the Higher Education Act of 1965 (
"(C) the allotment requirements under paragraphs (2) and (3) of subsection [sic] 318(e) of the Higher Education Act of 1965 (
"(D) the allotment requirements under subsections (b), (c), and (g) of section 324 of the Higher Education Act of 1965 (
"(E) subparagraphs (A), (C), (D), and (E) of section 326(f)(3) of the Higher Education Act of 1965 (
"(F) subparagraphs (A), (C), (D), and (E) of section 723(f)(3) and subparagraphs (A), (C), (D), and (E) of section 724(f)(3) of the Higher Education Act of 1965 (
"(G) the allotment restriction set forth in section 318(d)(4) and section 323(c)(2) of the Higher Education Act of 1965 (
"(2) waive or modify any statutory or regulatory provision to ensure that institutions that were receiving assistance under title III, title V, or subpart 4 of part A of title VII of such Act (
"(b)
"(c)
"SEC. 3518. AUTHORIZED USES AND OTHER MODIFICATIONS FOR GRANTS.
"(a)
"(b)
"(c)
"SEC. 3519. SERVICE OBLIGATIONS FOR TEACHERS.
"(a)
"(1) may modify the categories of extenuating circumstances under which a recipient of a grant under subpart 9 of part A of title IV of the Higher Education Act of 1965 (
"(2) shall consider teaching service that, as a result of a qualifying emergency, is part-time or temporarily interrupted, to be full-time service and to fulfill the service obligations under section 420N of such Act; and
"(3) shall extend the service obligation window (as described in section 420N(b)(1)(A) of such Act) for a period of not more than 3 years, in addition to any extensions provided in accordance with subpart 9 of part A of title IV of the Higher Education Act of 1965 (
"(A) the qualifying emergency period; or
"(B) a period of recession or economic downturn related to the qualifying emergency period, as determined by the Secretary in consultation with the Secretary of Labor.
"(b)
"(1) the teaching service of a borrower is temporarily interrupted due to a qualifying emergency; and
"(2) after the temporary interruption due to a qualifying emergency, the borrower resumes teaching service and completes a total of 5 years of qualifying teaching service under such sections, including qualifying teaching service performed before, during, and after such qualifying emergency.
"(c)
[
[
[
Higher Education Extension
"SECTION 1. SHORT TITLE.
"This Act may be cited as the 'Higher Education Extension Act of 2005'.
"SEC. 2. EXTENSION OF PROGRAMS.
"(a)
"(b)
"(1) is required, in or for fiscal year 2004, to carry out certain acts or make certain determinations or payments under a program under the Higher Education Act of 1965, such acts, determinations, or payments shall be required to be carried out, made, or continued during the period of the extension under this section; or
"(2) is permitted or authorized, in or for fiscal year 2004, to carry out certain acts or make certain determinations or payments under a program under the Higher Education Act of 1965, such acts, determinations, or payments are permitted or authorized to be carried out, made, or continued during the period of the extension under this section.
"(c)
"(d)
"(e)
"(f)
[
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Similar provisions were contained in
Study of Opportunities for Participation in Athletics Programs
Stylistic Consistency
Terms Defined for Purposes of Titles XIII, XIV, and XV of Pub. L. 102–325
General Provisions of 1972 Amendment
"(a) As used in this Act [See Short Title of 1972 Amendment note above]—
"(1) the term 'Secretary' means the Secretary of Health, Education, and Welfare [now Secretary of Education]; and
"(2) the term 'Commissioner' means the Commissioner of Education [now Secretary of Education];
unless the context requires another meaning.
"(b) Unless otherwise specified, the redesignation of a section, subsection, or other designation by any amendment in this Act shall include the redesignation of any reference to such section, subsection, or other designation in any Act or regulation, however styled.
"(c)(1) Unless otherwise specified, each provision of this Act and each amendment made by this Act shall be effective after June 30, 1972, and with respect to appropriations for the fiscal year ending June 30, 1973, and succeeding fiscal years.
"(2) Unless otherwise specified, in any case where an amendment made by this Act is to become effective after a date set herein, it shall be effective with the beginning of the day which immediately follows the date after which such amendment is effective.
"(3) In any case where the effective date for an amendment made by this Act is expressly stated to be effective after June 30, 1971, such amendment shall be deemed to have been enacted on July 1, 1971."
Rulemaking Requirements; Publication in Federal Register
Presidential Recommendations by December 31, 1969, With Respect to Post-Secondary Education for All
Executive Documents
Ex. Ord. No. 13864. Improving Free Inquiry, Transparency, and Accountability at Colleges and Universities
Ex. Ord. No. 13864, Mar. 21, 2019, 84 F.R. 11401, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
In particular, my Administration seeks to promote free and open debate on college and university campuses. Free inquiry is an essential feature of our Nation's democracy, and it promotes learning, scientific discovery, and economic prosperity. We must encourage institutions to appropriately account for this bedrock principle in their administration of student life and to avoid creating environments that stifle competing perspectives, thereby potentially impeding beneficial research and undermining learning.
The financial burden of higher education on students and their families is also a national problem that needs immediate attention. Over the past 30 years, college tuition and fees have grown at more than twice the rate of the Consumer Price Index. Rising student loan debt, coupled with low repayment rates, threatens the financial health of both individuals and families as well as of Federal student loan programs. In addition, too many programs of study fail to prepare students for success in today's job market.
The Federal Government can take meaningful steps to address these problems. Selecting an institution and course of study are important decisions for prospective students and significantly affect long-term earnings. Institutions should be transparent about the average earnings and loan repayment rates of former students who received Federal student aid. Additionally, the Federal Government should make this information readily accessible to the public and to prospective students and their families, in particular.
This order will promote greater access to critical information regarding the prices and outcomes of postsecondary education, thereby furthering the goals of the National Council for the American Worker established by Executive Order 13845 of July 19, 2018 (Establishing the President's National Council for the American Worker) [former
(a) encourage institutions to foster environments that promote open, intellectually engaging, and diverse debate, including through compliance with the First Amendment for public institutions and compliance with stated institutional policies regarding freedom of speech for private institutions;
(b) help students (including workers seeking additional training) and their families understand, through better data and career counseling, that not all institutions, degrees, or fields of study provide similar returns on their investment, and consider that their educational decisions should account for the opportunity cost of enrolling in a program;
(c) align the incentives of institutions with those of students and taxpayers to ensure that institutions share the financial risk associated with Federal student loan programs;
(d) help borrowers avoid defaulting on their Federal student loans by educating them about risks, repayment obligations, and repayment options; and
(e) supplement efforts by States and institutions by disseminating information to assist students in completing their degrees faster and at lower cost.
(b) "Covered agencies" for purposes of this section are the Departments of Defense, the Interior, Agriculture, Commerce, Labor, Health and Human Services, Transportation, Energy, and Education; the Environmental Protection Agency; the National Science Foundation; and the National Aeronautics and Space Administration.
(c) "Federal research or education grants" for purposes of this section include all funding provided by a covered agency directly to an institution but do not include funding associated with Federal student aid programs that cover tuition, fees, or stipends.
(i) make available, by January 1, 2020, through the Office of Federal Student Aid, a secure and confidential website and mobile application that informs Federal student loan borrowers of how much they owe, how much their monthly payment will be when they enter repayment, available repayment options, how long each repayment option will take, and how to enroll in the repayment option that best serves their needs;
(ii) expand and update annually the College Scorecard, or any successor, with the following program-level data for each certificate, degree, graduate, and professional program, for former students who received Federal student aid:
(A) estimated median earnings;
(B) median Stafford loan debt;
(C) median Graduate PLUS loan debt (if applicable);
(D) median Parent PLUS loan debt; and
(E) student loan default rate and repayment rate; and
(iii) expand and update annually the College Scorecard, or any successor, with the following institution-level data, providing the aggregate for all certificate, degree, graduate, and professional programs, for former students who received Federal student aid:
(A) student loan default rate and repayment rate;
(B) Graduate PLUS default rate and repayment rate; and
(C) Parent PLUS default rate and repayment rate.
(b) For the purpose of implementing subsection (a)(ii) of this section, the Secretary of the Treasury shall, upon the request of the Secretary, provide in a timely manner appropriate statistical studies and compilations regarding program-level earnings, consistent with
(b) By January 1, 2020, the Secretary, in consultation with the Secretary of the Treasury, shall submit to the President, through the Assistant to the President for Domestic Policy and the Assistant to the President for Economic Policy, policy recommendations for reforming the collections process for Federal student loans in default.
(c) Beginning July 1, 2019, the Secretary shall provide an annual update on the Secretary's progress in implementing the policies set forth in subsections 2(b)–(e) of this order to the National Council for the American Worker at meetings of the Council.
(d) Within 1 year of the date of this order [Mar. 21, 2019], the Secretary shall compile information about successful State and institutional efforts to promote students' timely and affordable completion of a postsecondary program of study. Based on that information, the Secretary shall publish a compilation of research results that addresses:
(i) how some States and institutions have better facilitated successful transfer of credits and degree completion by transfer students;
(ii) how States and institutions can increase access to dual enrollment programs; and
(iii) other strategies for increasing student success, especially among students at high risk of not completing a postsecondary program of study.
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Donald J. Trump.
§1002. Definition of institution of higher education for purposes of student assistance programs
(a) Definition of institution of higher education for purposes of student assistance programs
(1) Inclusion of additional institutions
Subject to paragraphs (2) through (4) of this subsection, the term "institution of higher education" for purposes of subchapter IV includes, in addition to the institutions covered by the definition in
(A) a proprietary institution of higher education (as defined in subsection (b) of this section);
(B) a postsecondary vocational institution (as defined in subsection (c) of this section); and
(C) only for the purposes of part D of subchapter IV, an institution outside the United States that is comparable to an institution of higher education as defined in
(2) Institutions outside the United States
(A) In general
For the purpose of qualifying as an institution under paragraph (1)(C), the Secretary shall establish criteria by regulation for the approval of institutions outside the United States and for the determination that such institutions are comparable to an institution of higher education as defined in
(i) except as provided in subparagraph (B)(iii)(IV), in the case of a graduate medical school located outside the United States—
(I)(aa) at least 60 percent of those enrolled in, and at least 60 percent of the graduates of, the graduate medical school outside the United States were not persons described in
(bb) at least 75 percent of the individuals who were students or graduates of the graduate medical school outside the United States or Canada (both nationals of the United States and others) taking the examinations administered by the Educational Commission for Foreign Medical Graduates received a passing score in the year preceding the year for which a student is seeking a loan under part D of subchapter IV; or
(II) the institution—
(aa) has or had a clinical training program that was approved by a State as of January 1, 1992; and
(bb) continues to operate a clinical training program in at least one State that is approved by that State;
(ii) in the case of a veterinary school located outside the United States that does not meet the requirements of
(iii) in the case of a nursing school located outside of the United States—
(I) the nursing school has an agreement with a hospital, or accredited school of nursing (as such terms are defined in
(II) the nursing school has an agreement with an accredited school of nursing located in the United States providing that the students graduating from the nursing school located outside of the United States also receive a degree from the accredited school of nursing located in the United States;
(III) the nursing school certifies only Federal Direct Stafford Loans under
(IV) the nursing school reimburses the Secretary for the cost of any loan defaults for current and former students included in the calculation of the institution's cohort default rate during the previous fiscal year; and
(V) not less than 75 percent of the individuals who were students or graduates of the nursing school, and who took the National Council Licensure Examination for Registered Nurses in the year preceding the year for which the institution is certifying a Federal Direct Stafford Loan under
(B) Advisory panel
(i) In general
For the purpose of qualifying as an institution under paragraph (1)(C) of this subsection, the Secretary shall establish an advisory panel of medical experts that shall—
(I) evaluate the standards of accreditation applied to applicant foreign medical schools; and
(II) determine the comparability of those standards to standards for accreditation applied to United States medical schools.
(ii) Special rule
If the accreditation standards described in clause (i) are determined not to be comparable, the foreign medical school shall be required to meet the requirements of
(iii) Report
(I) In general
Not later than 1 year after August 14, 2008, the advisory panel described in clause (i) shall submit a report to the Secretary and to the authorizing committees recommending eligibility criteria for participation in the loan programs under part D of subchapter IV for graduate medical schools that—
(aa) are located outside of the United States;
(bb) do not meet the requirements of subparagraph (A)(i); and
(cc) have a clinical training program approved by a State prior to January 1, 2008.
(II) Recommendations
In the report described in subclause (I), the advisory panel's eligibility criteria shall include recommendations regarding the appropriate levels of performance for graduate medical schools described in such subclause in the following areas:
(aa) Entrance requirements.
(bb) Retention and graduation rates.
(cc) Successful placement of students in United States medical residency programs.
(dd) Passage rate of students on the United States Medical Licensing Examination.
(ee) The extent to which State medical boards have assessed the quality of such school's program of instruction, including through on-site reviews.
(ff) The extent to which graduates of such schools would be unable to practice medicine in 1 or more States, based on the judgment of a State medical board.
(gg) Any areas recommended by the Comptroller General of the United States under section 1101 of the Higher Education Opportunity Act.
(hh) Any additional areas the Secretary may require.
(III) Minimum eligibility requirement
In the recommendations described in subclause (II), the criteria described in subparagraph (A)(i)(I)(bb) shall be a minimum eligibility requirement for a graduate medical school described in subclause (I) to participate in the loan programs under part D of subchapter IV.
(IV) Authority
The Secretary may—
(aa) not earlier than 180 days after the submission of the report described in subclause (I), issue proposed regulations establishing criteria for the eligibility of graduate medical schools described in such subclause to participate in the loan programs under part D of subchapter IV based on the recommendations of such report; and
(bb) not earlier than one year after the issuance of proposed regulations under item (aa), issue final regulations establishing such criteria for eligibility.
(C) Failure to release information
The failure of an institution outside the United States to provide, release, or authorize release to the Secretary of such information as may be required by subparagraph (A) shall render such institution ineligible for the purpose of part D of subchapter IV.
(D) Special rule
If, pursuant to this paragraph, an institution loses eligibility to participate in the programs under subchapter IV, then a student enrolled at such institution may, notwithstanding such loss of eligibility, continue to be eligible to receive a loan under part D of subchapter IV while attending such institution for the academic year succeeding the academic year in which such loss of eligibility occurred.
(3) Limitations based on course of study or enrollment
An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution—
(A) offers more than 50 percent of such institution's courses by correspondence (excluding courses offered by telecommunications as defined in section 1091(l)(4) 1 of this title), unless the institution is an institution that meets the definition in
(B) enrolls 50 percent or more of the institution's students in correspondence courses (excluding courses offered by telecommunications as defined in section 1091(l)(4) 1 of this title), unless the institution is an institution that meets the definition in such section, except that the Secretary, at the request of such institution, may waive the applicability of this subparagraph to such institution for good cause, as determined by the Secretary in the case of an institution of higher education that provides a 2- or 4-year program of instruction (or both) for which the institution awards an associate or baccalaureate degree, respectively;
(C) has a student enrollment in which more than 25 percent of the students are incarcerated, except that the Secretary may waive the limitation contained in this subparagraph for a nonprofit institution that provides a 2- or 4-year program of instruction (or both) for which the institution awards a bachelor's degree, or an associate's degree or a postsecondary diploma, respectively; or
(D) has a student enrollment in which more than 50 percent of the students do not have a secondary school diploma or its recognized equivalent, and does not provide a 2- or 4-year program of instruction (or both) for which the institution awards a bachelor's degree or an associate's degree, respectively, except that the Secretary may waive the limitation contained in this subparagraph if a nonprofit institution demonstrates to the satisfaction of the Secretary that the institution exceeds such limitation because the institution serves, through contracts with Federal, State, or local government agencies, significant numbers of students who do not have a secondary school diploma or its recognized equivalent.
(4) Limitations based on management
An institution shall not be considered to meet the definition of an institution of higher education in paragraph (1) if—
(A) the institution, or an affiliate of the institution that has the power, by contract or ownership interest, to direct or cause the direction of the management or policies of the institution, has filed for bankruptcy, except that this paragraph shall not apply to a nonprofit institution, the primary function of which is to provide health care educational services (or an affiliate of such an institution that has the power, by contract or ownership interest, to direct or cause the direction of the institution's management or policies) that files for bankruptcy under
(B) the institution, the institution's owner, or the institution's chief executive officer has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under subchapter IV, or has been judicially determined to have committed fraud involving funds under subchapter IV.
(5) Certification
The Secretary shall certify an institution's qualification as an institution of higher education in accordance with the requirements of subpart 3 of part H of subchapter IV.
(6) Loss of eligibility
An institution of higher education shall not be considered to meet the definition of an institution of higher education in paragraph (1) if such institution is removed from eligibility for funds under subchapter IV as a result of an action pursuant to part H of subchapter IV.
(b) Proprietary institution of higher education
(1) Principal criteria
For the purpose of this section, the term "proprietary institution of higher education" means a school that—
(A)(i) provides an eligible program of training to prepare students for gainful employment in a recognized occupation; or
(ii)(I) provides a program leading to a baccalaureate degree in liberal arts, and has provided such a program since January 1, 2009; and
(II) is accredited by a recognized regional accrediting agency or association, and has continuously held such accreditation since October 1, 2007, or earlier;
(B) meets the requirements of paragraphs (1) and (2) of
(C) does not meet the requirement of paragraph (4) of
(D) is accredited by a nationally recognized accrediting agency or association recognized by the Secretary pursuant to part H of subchapter IV; and
(E) has been in existence for at least 2 years.
(2) Additional institutions
The term "proprietary institution of higher education" also includes a proprietary educational institution in any State that, in lieu of the requirement in
(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or
(B) who will be dually or concurrently enrolled in the institution and a secondary school.
(c) Postsecondary vocational institution
(1) Principal criteria
For the purpose of this section, the term "postsecondary vocational institution" means a school that—
(A) provides an eligible program of training to prepare students for gainful employment in a recognized occupation;
(B) meets the requirements of paragraphs (1), (2), (4), and (5) of
(C) has been in existence for at least 2 years.
(2) Additional institutions
The term "postsecondary vocational institution" also includes an educational institution in any State that, in lieu of the requirement in
(A) who are beyond the age of compulsory school attendance in the State in which the institution is located; or
(B) who will be dually or concurrently enrolled in the institution and a secondary school.
(
Editorial Notes
References in Text
Section 1101 of the Higher Education Opportunity Act, referred to in subsec. (a)(2)(B)(iii)(II)(gg), is section 1101 of title XI of 110–315, Aug. 14, 2008,
Prior Provisions
Provisions similar to this section were contained in section 1088(a) to (c) of this title prior to repeal by
A prior section 1002,
Another prior section 1002,
Another prior section 1002,
Another prior section 1002,
Amendments
2010—
Subsec. (a)(1)(C).
Subsec. (a)(2)(A).
Subsec. (a)(2)(A)(iii)(III).
Subsec. (a)(2)(A)(iii)(V).
2009—Subsec. (a)(2)(D).
2008—Subsec. (a)(2)(A).
Subsec. (a)(2)(A)(i).
Subsec. (a)(2)(A)(i)(I)(bb).
Subsec. (a)(2)(A)(i)(II).
Subsec. (a)(2)(A)(iii).
Subsec. (a)(2)(B)(iii).
Subsec. (b)(1)(A).
Subsec. (b)(1)(D) to (F).
Subsec. (b)(2).
Subsec. (c)(2).
2006—Subsec. (a)(3)(A).
Subsec. (a)(3)(B).
2003—Subsec. (a)(2)(A).
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2008 Amendment
Effective Date of 2006 Amendment
Effective Date of 2003 Amendment
Construction
1 See References in Text note below.
§1003. Additional definitions
In this chapter:
(1) Authorizing committees
The term "authorizing committees" means the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives.
(2) Combination of institutions of higher education
The term "combination of institutions of higher education" means a group of institutions of higher education that have entered into a cooperative arrangement for the purpose of carrying out a common objective, or a public or private nonprofit agency, organization, or institution designated or created by a group of institutions of higher education for the purpose of carrying out a common objective on the group's behalf.
(3) Critical foreign language
Except as otherwise provided, the term "critical foreign language" means each of the languages contained in the list of critical languages designated by the Secretary in the Federal Register on August 2, 1985 (50 Fed. Reg. 31412; promulgated under the authority of section 212(d) of the Education for Economic Security Act (repealed by section 2303 of the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988)), as updated by the Secretary from time to time and published in the Federal Register, except that in the implementation of this definition with respect to a specific title, the Secretary may set priorities according to the purposes of such title and the national security, economic competitiveness, and educational needs of the United States.
(4) Department
The term "Department" means the Department of Education.
(5) Diploma mill
The term "diploma mill" means an entity that—
(A)(i) offers, for a fee, degrees, diplomas, or certificates, that may be used to represent to the general public that the individual possessing such a degree, diploma, or certificate has completed a program of postsecondary education or training; and
(ii) requires such individual to complete little or no education or coursework to obtain such degree, diploma, or certificate; and
(B) lacks accreditation by an accrediting agency or association that is recognized as an accrediting agency or association of institutions of higher education (as such term is defined in
(i) the Secretary pursuant to subpart 2 of part H of subchapter IV; or
(ii) a Federal agency, State government, or other organization or association that recognizes accrediting agencies or associations.
(6) Disability
The term "disability" has the same meaning given that term under
(7) Distance education
(A) In general
Except as otherwise provided, the term "distance education" means education that uses one or more of the technologies described in subparagraph (B)—
(i) to deliver instruction to students who are separated from the instructor; and
(ii) to support regular and substantive interaction between the students and the instructor, synchronously or asynchronously.
(B) Inclusions
For the purposes of subparagraph (A), the technologies used may include—
(i) the Internet;
(ii) one-way and two-way transmissions through open broadcast, closed circuit, cable, microwave, broadband lines, fiber optics, satellite, or wireless communications devices;
(iii) audio conferencing; or
(iv) video cassettes, DVDs, and CD–ROMs, if the cassettes, DVDs, or CD–ROMs are used in a course in conjunction with any of the technologies listed in clauses (i) through (iii).
(8) Early childhood education program
The term "early childhood education program" means—
(A) a Head Start program or an Early Head Start program carried out under the Head Start Act (
(B) a State licensed or regulated child care program; or
(C) a program that—
(i) serves children from birth through age six that addresses the children's cognitive (including language, early literacy, and early mathematics), social, emotional, and physical development; and
(ii) is—
(I) a State prekindergarten program;
(II) a program authorized under section 619 [
(III) a program operated by a local educational agency.
(9) Elementary school
The term "elementary school" has the same meaning given that term under
(10) Gifted and talented
The term "gifted and talented" has the same meaning given that term under
(11) Local educational agency
The term "local educational agency" has the same meaning given that term under
(12) New borrower
The term "new borrower" when used with respect to any date means an individual who on that date has no outstanding balance of principal or interest owing on any loan made, insured, or guaranteed under subchapter IV.
(13) Nonprofit
The term "nonprofit" as applied to a school, agency, organization, or institution means a school, agency, organization, or institution owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.
(14) Poverty line
The term "poverty line" means the poverty line (as defined in
(15) School or department of divinity
The term "school or department of divinity" means an institution, or a department or a branch of an institution, the program of instruction of which is designed for the education of students—
(A) to prepare the students to become ministers of religion or to enter upon some other religious vocation (or to provide continuing training for any such vocation); or
(B) to prepare the students to teach theological subjects.
(16) Secondary school
The term "secondary school" has the same meaning given that term under
(17) Secretary
The term "Secretary" means the Secretary of Education.
(18) Service-learning
The term "service-learning" has the same meaning given that term under section 12511(23) 1 of title 42.
(19) Special education teacher
The term "special education teacher" means teachers who teach children with disabilities as defined in section 602 of the Individuals with Disabilities Education Act.
(20) State educational agency
The term "State educational agency" has the same meaning given that term under
(21) State; Freely Associated States
(A) State
The term "State" includes, in addition to the several States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States.
(B) Freely Associated States
The term "Freely Associated States" means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
(22) State higher education agency
The term "State higher education agency" means the officer or agency primarily responsible for the State supervision of higher education.
(23) Universal design
The term "universal design" has the meaning given the term in
(24) Universal design for learning
The term "universal design for learning" means a scientifically valid framework for guiding educational practice that—
(A) provides flexibility in the ways information is presented, in the ways students respond or demonstrate knowledge and skills, and in the ways students are engaged; and
(B) reduces barriers in instruction, provides appropriate accommodations, supports, and challenges, and maintains high achievement expectations for all students, including students with disabilities and students who are limited English proficient.
(
Editorial Notes
References in Text
Section 212(d) of the Education for Economic Security Act, referred to in par. (3), is section 212(d) of title II of
The Head Start Act, referred to in par. (8)(A), is subchapter B (§635 et seq.) of
The Individuals with Disabilities Education Act, referred to in par. (8)(C)(ii)(II), is title VI of
Prior Provisions
Provisions similar to this section were contained in
A prior section 1003,
Another prior section 1003,
Another prior section 1003,
Another prior section 1003,
A prior section 1004,
Another prior section 1004,
Another prior section 1004,
A prior section 1005,
Another prior section 1005,
Another prior section 1005,
A prior section 1005a,
A prior section 1006,
Another prior section 1006,
Prior sections 1007 to 1010 were omitted in the general amendment of this subchapter by
Section 1007,
Section 1008,
Section 1008a,
Section 1008b,
Section 1009,
Section 1010,
Amendments
2015—Pars. (9) to (11), (16).
Par. (20).
2008—
Pars. (17) to (24).
2002—Pars. (4) to (6), (10), (14).
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Education and Labor of House of Representatives changed to Committee on Education and the Workforce of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023.
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2002 Amendment
Amendment by
1 See References in Text note below.
Part B—Additional General Provisions
§1011. Antidiscrimination
(a) In general
Institutions of higher education receiving Federal financial assistance may not use such financial assistance, directly or indirectly, to undertake any study or project or fulfill the terms of any contract containing an express or implied provision that any person or persons of a particular race, religion, sex, or national origin be barred from performing such study, project, or contract, except that nothing in this subsection shall be construed to prohibit an institution from conducting objective studies or projects concerning the nature, effects, or prevention of discrimination, or to have the institution's curriculum restricted on the subject of discrimination.
(b) Limitations on statutory construction
Nothing in this chapter shall be construed to limit the rights or responsibilities of any individual under the Americans with Disabilities Act of 1990 [
(
Editorial Notes
References in Text
The Americans with Disabilities Act of 1990, referred to in subsec. (b), is
The Rehabilitation Act of 1973, referred to in subsec. (b), is
Prior Provisions
Provisions similar to this section were contained in
A prior section 1011,
Another prior section 1011,
Another prior section 1011,
Another prior section 1011,
Amendments
2009—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
§1011a. Protection of student speech and association rights
(a) Protection of rights
(1) It is the sense of Congress that no student attending an institution of higher education on a full- or part-time basis should, on the basis of participation in protected speech or protected association, be excluded from participation in, be denied the benefits of, or be subjected to discrimination or official sanction under any education program, activity, or division of the institution directly or indirectly receiving financial assistance under this chapter, whether or not such program, activity, or division is sponsored or officially sanctioned by the institution.
(2) It is the sense of Congress that—
(A) the diversity of institutions and educational missions is one of the key strengths of American higher education;
(B) individual institutions of higher education have different missions and each institution should design its academic program in accordance with its educational goals;
(C) an institution of higher education should facilitate the free and open exchange of ideas;
(D) students should not be intimidated, harassed, discouraged from speaking out, or discriminated against;
(E) students should be treated equally and fairly; and
(F) nothing in this paragraph shall be construed to modify, change, or infringe upon any constitutionally protected religious liberty, freedom, expression, or association.
(b) Construction
Nothing in this section shall be construed—
(1) to discourage the imposition of an official sanction on a student that has willfully participated in the disruption or attempted disruption of a lecture, class, speech, presentation, or performance made or scheduled to be made under the auspices of the institution of higher education, provided that the imposition of such sanction is done objectively and fairly; or
(2) to prevent an institution of higher education from taking appropriate and effective action to prevent violations of State liquor laws, to discourage binge drinking and other alcohol abuse, to protect students from sexual harassment including assault and date rape, to prevent hazing, or to regulate unsanitary or unsafe conditions in any student residence.
(c) Definitions
For the purposes of this section:
(1) Official sanction
The term "official sanction"—
(A) means expulsion, suspension, probation, censure, condemnation, reprimand, or any other disciplinary, coercive, or adverse action taken by an institution of higher education or administrative unit of the institution; and
(B) includes an oral or written warning made by an official of an institution of higher education acting in the official capacity of the official.
(2) Protected association
The term "protected association" means the joining, assembling, and residing with others that is protected under the first and 14th amendments to the Constitution, or would be protected if the institution of higher education involved were subject to those amendments.
(3) Protected speech
The term "protected speech" means speech that is protected under the first and 14th amendments to the Constitution, or would be protected if the institution of higher education involved were subject to those amendments.
(
Editorial Notes
Prior Provisions
A prior section 1011a,
Amendments
2008—Subsec. (a).
Subsec. (b)(1).
§1011b. Territorial waiver authority
The Secretary is required to waive the eligibility criteria of any postsecondary education program administered by the Department where such criteria do not take into account the unique circumstances in Guam, the United States Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States.
(
Editorial Notes
Prior Provisions
Provisions similar to this section were contained in
A prior section 1011b,
Amendments
2008—
§1011c. National Advisory Committee on Institutional Quality and Integrity
(a) Establishment
There is established in the Department a National Advisory Committee on Institutional Quality and Integrity (in this section referred to as the "Committee") to assess the process of accreditation and the institutional eligibility and certification of institutions of higher education (as defined in
(b) Membership
(1) In general
The Committee shall have 18 members, of which—
(A) six members shall be appointed by the Secretary;
(B) six members shall be appointed by the Speaker of the House of Representatives, three of whom shall be appointed on the recommendation of the majority leader of the House of Representatives, and three of whom shall be appointed on the recommendation of the minority leader of the House of Representatives; and
(C) six members shall be appointed by the President pro tempore of the Senate, three of whom shall be appointed on the recommendation of the majority leader of the Senate, and three of whom shall be appointed on the recommendation of the minority leader of the Senate.
(2) Qualifications
Individuals shall be appointed as members of the Committee—
(A) on the basis of the individuals' experience, integrity, impartiality, and good judgment;
(B) from among individuals who are representatives of, or knowledgeable concerning, education and training beyond secondary education, representing all sectors and types of institutions of higher education (as defined in
(C) on the basis of the individuals' technical qualifications, professional standing, and demonstrated knowledge in the fields of accreditation and administration in higher education.
(3) Terms of members
Except as provided in paragraph (5), the term of office of each member of the Committee shall be for six 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 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.
(5) Initial terms
The terms of office for the initial members of the Committee shall be—
(A) three years for members appointed under paragraph (1)(A);
(B) four years for members appointed under paragraph (1)(B); and
(C) six years for members appointed under paragraph (1)(C).
(6) Chairperson
The members of the Committee shall select a chairperson from among the members.
(c) Functions
The Committee shall—
(1) advise the Secretary with respect to establishment and enforcement of the standards of accrediting agencies or associations under subpart 2 of part H of subchapter IV;
(2) advise the Secretary with respect to the recognition of a specific accrediting agency or association;
(3) advise the Secretary with respect to the preparation and publication of the list of nationally recognized accrediting agencies and associations;
(4) advise the Secretary with respect to the eligibility and certification process for institutions of higher education under subchapter IV, together with recommendations for improvements in such process;
(5) advise the Secretary with respect to the relationship between—
(A) accreditation of institutions of higher education and the certification and eligibility of such institutions; and
(B) State licensing responsibilities with respect to such institutions; and
(6) carry out such other advisory functions relating to accreditation and institutional eligibility as the Secretary may prescribe by regulation.
(d) Meeting procedures
(1) Schedule
(A) Biannual meetings
The Committee shall meet not less often than twice each year, at the call of the Chairperson.
(B) Publication of date
The Committee shall submit the date and location of each meeting in advance to the Secretary, and the Secretary shall publish such information in the Federal Register not later than 30 days before the meeting.
(2) Agenda
(A) Establishment
The agenda for a meeting of the Committee shall be established by the Chairperson and shall be submitted to the members of the Committee upon notification of the meeting.
(B) Opportunity for public comment
The agenda shall include, at a minimum, opportunity for public comment during the Committee's deliberations.
(3) Secretary's designee
The Secretary shall designate an employee of the Department to serve as the Secretary's designee to the Committee, and the Chairperson shall invite the Secretary's designee to attend all meetings of the Committee.
(4) Chapter 10 of title 5
(e) Report and notice
(1) Notice
The Secretary shall annually publish in the Federal Register—
(A) a list containing, for each member of the Committee—
(i) the member's name;
(ii) the date of the expiration of the member's term of office; and
(iii) the name of the individual described in subsection (b)(1) who appointed the member; and
(B) a solicitation of nominations for each expiring term of office on the Committee of a member appointed by the Secretary.
(2) Report
Not later than the last day of each fiscal year, the Committee shall make available an annual report to the Secretary, the authorizing committees, and the public. The annual report shall contain—
(A) a detailed summary of the agenda and activities of, and the findings and recommendations made by, the Committee during the fiscal year preceding the fiscal year in which the report is made;
(B) a list of the date and location of each meeting during the fiscal year preceding the fiscal year in which the report is made;
(C) a list of the members of the Committee; and
(D) a list of the functions of the Committee, including any additional functions established by the Secretary through regulation.
(f) Termination
The Committee shall terminate on September 30, 2021.1
(
Editorial Notes
Prior Provisions
Provisions similar to this section were contained in
A prior section 1011c,
Amendments
2022—Subsec. (d)(4).
2020—Subsec. (f).
2019—Subsec. (f).
2018—Subsec. (f).
2017—Subsec. (f).
2015—Subsec. (f).
2014—Subsec. (f).
2008—
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Termination of Committee
Similar provisions were contained in the following prior appropriation acts:
Transition
"(1) the term of each member appointed to the National Advisory Committee on Institutional Quality and Integrity before the date of enactment of this Act shall expire on the date of enactment of this Act;
"(2) no new members shall be appointed to the National Advisory Committee on Institutional Quality and Integrity during the period beginning on the date of enactment of this Act and ending on January 31, 2009; and
"(3) no meeting of the National Advisory Committee on Institutional Quality and Integrity shall be convened during such period."
1 See Termination of Committee note below.
§1011d. Student representation
The Secretary shall, in appointing individuals to any commission, committee, board, panel, or other body in connection with the administration of this chapter, include individuals who are, at the time of appointment, attending an institution of higher education.
(
Editorial Notes
Prior Provisions
Provisions similar to this section were contained in
A prior section 1011d,
§1011e. Financial responsibility of foreign students
Nothing in this chapter or any other Federal law shall be construed to prohibit any institution of higher education from requiring a student who is a foreign national (and not admitted to permanent residence in the United States) to guarantee the future payment of tuition and fees to such institution by—
(1) making advance payment of such tuition and fees;
(2) making deposits in an escrow account administered by such institution for such payments; or
(3) obtaining a bond or other insurance that such payments will be made.
(
Editorial Notes
Prior Provisions
Provisions similar to this section were contained in
A prior section 1011e,
§1011f. Disclosures of foreign gifts
(a) Disclosure report
Whenever any institution is owned or controlled by a foreign source or receives a gift from or enters into a contract with a foreign source, the value of which is $250,000 or more, considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year, the institution shall file a disclosure report with the Secretary on January 31 or July 31, whichever is sooner.
(b) Contents of report
Each report to the Secretary required by this section shall contain the following:
(1) For gifts received from or contracts entered into with a foreign source other than a foreign government, the aggregate dollar amount of such gifts and contracts attributable to a particular country. The country to which a gift is attributable is the country of citizenship, or if unknown, the principal residence for a foreign source who is a natural person, and the country of incorporation, or if unknown, the principal place of business, for a foreign source which is a legal entity.
(2) For gifts received from or contracts entered into with a foreign government, the aggregate amount of such gifts and contracts received from each foreign government.
(3) In the case of an institution which is owned or controlled by a foreign source, the identity of the foreign source, the date on which the foreign source assumed ownership or control, and any changes in program or structure resulting from the change in ownership or control.
(c) Additional disclosures for restricted and conditional gifts
Notwithstanding the provisions of subsection (b), whenever any institution receives a restricted or conditional gift or contract from a foreign source, the institution shall disclose the following:
(1) For such gifts received from or contracts entered into with a foreign source other than a foreign government, the amount, the date, and a description of such conditions or restrictions. The report shall also disclose the country of citizenship, or if unknown, the principal residence for a foreign source which is a natural person, and the country of incorporation, or if unknown, the principal place of business for a foreign source which is a legal entity.
(2) For gifts received from or contracts entered into with a foreign government, the amount, the date, a description of such conditions or restrictions, and the name of the foreign government.
(d) Relation to other reporting requirements
(1) State requirements
If an institution described under subsection (a) is within a State which has enacted requirements for public disclosure of gifts from or contracts with a foreign source that are substantially similar to the requirements of this section, a copy of the disclosure report filed with the State may be filed with the Secretary in lieu of a report required under subsection (a). The State in which the institution is located shall provide to the Secretary such assurances as the Secretary may require to establish that the institution has met the requirements for public disclosure under State law if the State report is filed.
(2) Use of other Federal reports
If an institution receives a gift from, or enters into a contract with, a foreign source, where any other department, agency, or bureau of the executive branch requires a report containing requirements substantially similar to those required under this section, a copy of the report may be filed with the Secretary in lieu of a report required under subsection (a).
(e) Public inspection
All disclosure reports required by this section shall be public records open to inspection and copying during business hours.
(f) Enforcement
(1) Court orders
Whenever it appears that an institution has failed to comply with the requirements of this section, including any rule or regulation promulgated under this section, a civil action may be brought by the Attorney General, at the request of the Secretary, in an appropriate district court of the United States, or the appropriate United States court of any territory or other place subject to the jurisdiction of the United States, to request such court to compel compliance with the requirements of this section.
(2) Costs
For knowing or willful failure to comply with the requirements of this section, including any rule or regulation promulgated thereunder, an institution shall pay to the Treasury of the United States the full costs to the United States of obtaining compliance, including all associated costs of investigation and enforcement.
(g) Regulations
The Secretary may promulgate regulations to carry out this section.
(h) Definitions
For the purpose of this section—
(1) the term "contract" means any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties;
(2) the term "foreign source" means—
(A) a foreign government, including an agency of a foreign government;
(B) a legal entity, governmental or otherwise, created solely under the laws of a foreign state or states;
(C) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and
(D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source;
(3) the term "gift" means any gift of money or property;
(4) the term "institution" means any institution, public or private, or, if a multicampus institution, any single campus of such institution, in any State, that—
(A) is legally authorized within such State to provide a program of education beyond secondary school;
(B) provides a program for which the institution awards a bachelor's degree (or provides not less than a 2-year program which is acceptable for full credit toward such a degree) or more advanced degrees; and
(C) is accredited by a nationally recognized accrediting agency or association and to which institution Federal financial assistance is extended (directly or indirectly through another entity or person), or which institution receives support from the extension of Federal financial assistance to any of the institution's subunits; and
(5) the term "restricted or conditional gift or contract" means any endowment, gift, grant, contract, award, present, or property of any kind which includes provisions regarding—
(A) the employment, assignment, or termination of faculty;
(B) the establishment of departments, centers, research or lecture programs, or new faculty positions;
(C) the selection or admission of students; or
(D) the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion.
(
Editorial Notes
Prior Provisions
Provisions similar to this section were contained in
A prior section 1011f,
§1011g. Application of peer review process
All applications submitted under the provisions of this chapter which require peer review shall be read by a panel of readers composed of individuals selected by the Secretary, which shall include outside readers who are not employees of the Federal Government. The Secretary shall ensure that no individual assigned under this section to review any application has any conflict of interest with regard to that application which might impair the impartiality with which that individual conducts the review under this section.
(
Editorial Notes
Prior Provisions
Provisions similar to this section were contained in
A prior section 1011g,
§1011h. Binge drinking on college campuses
(a) Short title
This section may be cited as the "Collegiate Initiative To Reduce Binge Drinking and Illegal Alcohol Consumption".
(b) Sense of Congress
It is the sense of Congress that, in an effort to change the culture of alcohol consumption on college campuses, all institutions of higher education should carry out the following:
(1) The president of the institution should appoint a task force consisting of school administrators, faculty, students, Greek system representatives, and others to conduct a full examination of student and academic life at the institution. The task force should make recommendations for a broad range of policy and program changes that would serve to reduce alcohol and other drug-related problems. The institution should provide resources to assist the task force in promoting the campus policies and proposed environmental changes that have been identified.
(2) The institution should provide maximum opportunities for students to live in an alcohol-free environment and to engage in stimulating, alcohol-free recreational and leisure activities.
(3) The institution should enforce a "zero tolerance" policy on the illegal consumption of alcohol by students at the institution.
(4) The institution should vigorously enforce the institution's code of disciplinary sanctions for those who violate campus alcohol policies. Students with alcohol or other drug-related problems should be referred for assistance, including on-campus counseling programs if appropriate.
(5) The institution should adopt a policy to discourage alcoholic beverage-related sponsorship of on-campus activities. It should adopt policies limiting the advertisement and promotion of alcoholic beverages on campus.
(6) The institution should work with the local community, including local businesses, in a "Town/Gown" alliance to encourage responsible policies toward alcohol consumption and to address illegal alcohol use by students.
(
Editorial Notes
Prior Provisions
A prior section 1011h,
§1011i. Drug and alcohol abuse prevention
(a) Restriction on eligibility
Notwithstanding any other provision of law, no institution of higher education shall be eligible to receive funds or any other form of financial assistance under any Federal program, including participation in any federally funded or guaranteed student loan program, unless the institution certifies to the Secretary that the institution has adopted and has implemented a program to prevent the use of illicit drugs and the abuse of alcohol by students and employees that, at a minimum, includes—
(1) the annual distribution to each student and employee of—
(A) standards of conduct that clearly prohibit, at a minimum, the unlawful possession, use, or distribution of illicit drugs and alcohol by students and employees on the institution's property or as part of any of the institution's activities;
(B) a description of the applicable legal sanctions under local, State, or Federal law for the unlawful possession or distribution of illicit drugs and alcohol;
(C) a description of the health-risks associated with the use of illicit drugs and the abuse of alcohol;
(D) a description of any drug or alcohol counseling, treatment, or rehabilitation or re-entry programs that are available to employees or students; and
(E) a clear statement that the institution will impose sanctions on students and employees (consistent with local, State, and Federal law), and a description of those sanctions, up to and including expulsion or termination of employment and referral for prosecution, for violations of the standards of conduct required by subparagraph (A); and
(2) a biennial review by the institution of the institution's program to—
(A) determine the program's effectiveness and implement changes to the program if the changes are needed;
(B) determine the number of drug and alcohol-related violations and fatalities that—
(i) occur on the institution's campus (as defined in
(ii) are reported to campus officials;
(C) determine the number and type of sanctions described in paragraph (1)(E) that are imposed by the institution as a result of drug and alcohol-related violations and fatalities on the institution's campus or as part of any of the institution's activities; and
(D) ensure that the sanctions required by paragraph (1)(E) are consistently enforced.
(b) Information availability
Each institution of higher education that provides the certification required by subsection (a) shall, upon request, make available to the Secretary and to the public a copy of each item required by subsection (a)(1) as well as the results of the biennial review required by subsection (a)(2).
(c) Regulations
(1) In general
The Secretary shall publish regulations to implement and enforce the provisions of this section, including regulations that provide for—
(A) the periodic review of a representative sample of programs required by subsection (a); and
(B) a range of responses and sanctions for institutions of higher education that fail to implement their programs or to consistently enforce their sanctions, including information and technical assistance, the development of a compliance agreement, and the termination of any form of Federal financial assistance.
(2) Rehabilitation program
The sanctions required by subsection (a)(1)(E) may include the completion of an appropriate rehabilitation program.
(d) Appeals
Upon determination by the Secretary to terminate financial assistance to any institution of higher education under this section, the institution may file an appeal with an administrative law judge before the expiration of the 30-day period beginning on the date such institution is notified of the decision to terminate financial assistance under this section. Such judge shall hold a hearing with respect to such termination of assistance before the expiration of the 45-day period beginning on the date that such appeal is filed. Such judge may extend such 45-day period upon a motion by the institution concerned. The decision of the judge with respect to such termination shall be considered to be a final agency action.
(e) Alcohol and drug abuse prevention grants
(1) Program authority
The Secretary may make grants to institutions of higher education or consortia of such institutions, and enter into contracts with such institutions, consortia, and other organizations, to develop, implement, operate, improve, and disseminate programs of prevention, and education (including treatment-referral) to reduce and eliminate the illegal use of drugs and alcohol and the violence associated with such use. Such grants or contracts may also be used for the support of a higher education center for alcohol and drug abuse prevention that will provide training, technical assistance, evaluation, dissemination, and associated services and assistance to the higher education community as determined by the Secretary and institutions of higher education.
(2) Awards
Grants and contracts shall be awarded under paragraph (1) on a competitive basis.
(3) Applications
An institution of higher education, a consortium of such institutions, or another organization that desires to receive a grant or contract under paragraph (1) shall submit an application to the Secretary at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require by regulation.
(4) Additional requirements
(A) Participation
In awarding grants and contracts under this subsection the Secretary shall make every effort to ensure—
(i) the equitable participation of private and public institutions of higher education (including community and junior colleges); and
(ii) the equitable geographic participation of such institutions.
(B) Consideration
In awarding grants and contracts under this subsection the Secretary shall give appropriate consideration to institutions of higher education with limited enrollment.
(5) Authorization of appropriations
There are authorized to be appropriated to carry out this subsection such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(
Editorial Notes
Prior Provisions
Provisions similar to subsecs. (a) to (d) of this section were contained in
Amendments
2008—Subsec. (a)(2)(B) to (D).
Subsec. (e)(5).
Subsec. (f).
§1011j. Prior rights and obligations
(a) Authorization of appropriations
(1) Pre-1987 parts C and D of subchapter VII
There are authorized to be appropriated such sums as may be necessary for fiscal year 2009 and for each succeeding fiscal year to pay obligations incurred prior to 1987 under parts C and D of subchapter VII, as such parts were in effect before the effective date of the Higher Education Amendments of 1992.
(2) Post-1992 and pre-1998 part C of subchapter VII
There are authorized to be appropriated such sums as may be necessary for fiscal year 2009 and for each succeeding fiscal year to pay obligations incurred prior to October 7, 1998, under part C of subchapter VII, as such part was in effect during the period—
(A) after the effective date of the Higher Education Amendments of 1992; and
(B) prior to October 7, 1998.
(b) Legal responsibilities
(1) Pre-1987 subchapter VII
All entities with continuing obligations incurred under parts A, B, C, and D of subchapter VII, as such parts were in effect before the effective date of the Higher Education Amendments of 1992, shall be subject to the requirements of such part as in effect before the effective date of the Higher Education Amendments of 1992.
(2) Post-1992 and pre-1998 part C of subchapter VII
All entities with continuing obligations incurred under part C of subchapter VII, as such part was in effect during the period—
(A) after the effective date of the Higher Education Amendments of 1992; and
(B) prior to October 7, 1998,
shall be subject to the requirements of such part as such part was in effect during such period.
(
Editorial Notes
References in Text
Parts A, B, C, and D of subchapter VII, as such parts were in effect before the effective date of the Higher Education Amendments of 1992, referred to in subsecs. (a)(1) and (b)(1), means parts A (§1132b et seq.), B (§1132c et seq.), C (§1132d et seq.), and D (§1132e et seq.) of subchapter VII of this chapter, as in effect before the effective date of
Part C of subchapter VII, as such part was in effect during the period after the effective date of the Higher Education Amendments of 1992 and prior to October 7, 1998, referred to in subsecs. (a)(2) and (b)(2), probably means part C (§1132d et seq.) of subchapter VII of this chapter, as in effect during the period after the effective date of
Prior Provisions
Provisions similar to this section were contained in
A prior section 121 of
Amendments
2008—Subsec. (a).
§1011k. Recovery of payments
(a) Public benefit
Congress declares that, if a facility constructed with the aid of a grant under part A of subchapter VII as such part A was in effect prior to October 7, 1998, or part B of such subchapter as part B was in effect prior to July 23, 1992, is used as an academic facility for 20 years following completion of such construction, the public benefit accruing to the United States will equal in value the amount of the grant. The period of 20 years after completion of such construction shall therefore be deemed to be the period of Federal interest in such facility for the purposes of such subchapter as so in effect.
(b) Recovery upon cessation of public benefit
If, within 20 years after completion of construction of an academic facility which has been constructed, in part with a grant under part A of subchapter VII as such part A was in effect prior to October 7, 1998, or part B of subchapter VII as such part B was in effect prior to July 23, 1992—
(1) the applicant under such parts as so in effect (or the applicant's successor in title or possession) ceases or fails to be a public or nonprofit institution; or
(2) the facility ceases to be used as an academic facility, or the facility is used as a facility excluded from the term "academic facility" (as such term was defined under subchapter VII, as so in effect), unless the Secretary determines that there is good cause for releasing the institution from its obligation,
the United States shall be entitled to recover from such applicant (or successor) an amount which bears to the value of the facility at that time (or so much thereof as constituted an approved project or projects) the same ratio as the amount of Federal grant bore to the cost of the facility financed with the aid of such grant. The value shall be determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated.
(c) Prohibition on use for religion
Notwithstanding the provisions of subsections (a) and (b), no project assisted with funds under subchapter VII (as in effect prior to October 7, 1998) shall ever be used for religious worship or a sectarian activity or for a school or department of divinity.
(
Editorial Notes
References in Text
Subchapter VII, referred to in text, was amended, effective Oct. 1, 1992, by
Prior Provisions
Provisions similar to this section were contained in
A prior section 122 of
§1011l. Diploma mills
(a) Information to the public
The Secretary shall maintain information and resources on the Department's website to assist students, families, and employers in understanding what a diploma mill is and how to identify and avoid diploma mills.
(b) Collaboration
The Secretary shall continue to collaborate with the United States Postal Service, the Federal Trade Commission, the Department of Justice (including the Federal Bureau of Investigation), the Internal Revenue Service, and the Office of Personnel Management to maximize Federal efforts to—
(1) prevent, identify, and prosecute diploma mills; and
(2) broadly disseminate to the public information about diploma mills, and resources to identify diploma mills.
(
§1011m. Certification regarding the use of certain Federal funds
(a) Prohibition
No Federal funds received under the Higher Education Act of 1965 (
(b) Applicability
The prohibition in subsection (a) applies with respect to the following Federal actions:
(1) The awarding of any Federal contract.
(2) The making of any Federal grant.
(3) The making of any Federal loan.
(4) The entering into of any Federal cooperative agreement.
(5) The extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(c) Lobbying and earmarks
No Federal student aid funding under the Higher Education Act of 1965 (
(d) Certification
Each institution of higher education or other postsecondary educational institution receiving Federal funding under the Higher Education Act of 1965 (
(e) Actions to implement and enforce
The Secretary of Education shall take such actions as are necessary to ensure that the provisions of this section are implemented and enforced.
(
Editorial Notes
References in Text
The Higher Education Act of 1965, referred to in subsecs. (a), (c), and (d), is
Codification
Section was enacted as part of the Higher Education Opportunity Act, and not as part of the Higher Education Act of 1965 which comprises this chapter.
Prior Provisions
A prior section 1012,
Another prior section 1012,
A prior section 1013,
Another prior section 1013,
A prior section 1014,
Another prior section 1014,
Part C—Cost of Higher Education
§1015. Improvements in market information and public accountability in higher education
(a) Improved data collection
(1) Development of uniform methodology
The Secretary shall direct the Commissioner of Education Statistics to convene a series of forums to develop nationally consistent methodologies for reporting costs incurred by postsecondary institutions in providing postsecondary education.
(2) Redesign of data systems
On the basis of the methodologies developed pursuant to paragraph (1), the Secretary shall redesign relevant parts of the postsecondary education data systems to improve the usefulness and timeliness of the data collected by such systems.
(3) Information to institutions
The Commissioner of Education Statistics shall—
(A) develop a standard definition for the following data elements:
(i) tuition and fees for a full-time undergraduate student;
(ii) cost of attendance for a full-time undergraduate student, consistent with the provisions of
(iii) average amount of financial assistance received by an undergraduate student who attends an institution of higher education, including—
(I) each type of assistance or benefit described in
(II) fellowships; and
(III) institutional and other assistance; and
(iv) number of students receiving financial assistance described in each of subclauses (I), (II), and (III) of clause (iii);
(B) not later than 90 days after October 7, 1998, report the definitions to each institution of higher education and within a reasonable period of time thereafter inform the authorizing committees of those definitions; and
(C) collect information regarding the data elements described in subparagraph (A) with respect to at least all institutions of higher education participating in programs under subchapter IV, beginning with the information from academic year 2000–2001 and annually thereafter.
(b) Data dissemination
The Secretary shall make available the data collected pursuant to subsection (a). Such data shall be available in a form that permits the review and comparison of the data submissions of individual institutions of higher education. Such data shall be presented in a form that is easily understandable and allows parents and students to make informed decisions based on the costs for typical full-time undergraduate students.
(c) Study
(1) In general
The Commissioner of Education Statistics shall conduct a national study of expenditures at institutions of higher education. Such study shall include information with respect to—
(A) the change in tuition and fees compared with the consumer price index and other appropriate measures of inflation;
(B) faculty salaries and benefits;
(C) administrative salaries, benefits and expenses;
(D) academic support services;
(E) research;
(F) operations and maintenance; and
(G) institutional expenditures for construction and technology and the potential cost of replacing instructional buildings and equipment.
(2) Evaluation
The study shall include an evaluation of—
(A) changes over time in the expenditures identified in paragraph (1);
(B) the relationship of the expenditures identified in paragraph (1) to college costs; and
(C) the extent to which increases in institutional financial aid and tuition discounting practices affect tuition increases, including the demographics of students receiving such discounts, the extent to which financial aid is provided to students with limited need in order to attract a student to a particular institution, and the extent to which Federal financial aid, including loan aid, has been used to offset the costs of such practices.
(3) Final report
The Commissioner of Education Statistics shall submit a report regarding the findings of the study required by paragraph (1) to the appropriate committees of Congress not later than September 30, 2002.
(4) Higher education market basket
The Bureau of Labor Statistics, in consultation with the Commissioner of Education Statistics, shall develop a higher education market basket that identifies the items that comprise the costs of higher education. The Bureau of Labor Statistics shall provide a report on the market basket to the Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives not later than September 30, 2002.
(5) Fines
In addition to actions authorized in
(d) Promotion of the Department of Education Federal student financial aid website
The Secretary shall display a link to the Federal student financial aid website of the Department in a prominent place on the homepage of the Department's website.
(e) Enhanced student financial aid information
(1) Implementation
The Secretary shall continue to improve the usefulness and accessibility of the information provided by the Department on college planning and student financial aid.
(2) Dissemination
The Secretary shall continue to make the availability of the information on the Federal student financial aid website of the Department widely known, through a major media campaign and other forms of communication.
(3) Coordination
As a part of the efforts required under this subsection, the Secretary shall create one website accessible from the Department's website that fulfills the requirements under subsections (b), (f), and (g).
(f) Improved availability and coordination of information concerning student financial aid programs for military members and veterans
(1) Coordination
The Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans Affairs, shall create a searchable website that—
(A) contains information, in simple and understandable terms, about all Federal and State student financial assistance, readmission requirements under
(B) is easily accessible through the website described in subsection (e)(3).
(2) Implementation
Not later than one year after August 14, 2008, the Secretary shall make publicly available the Armed Forces information website described in paragraph (1).
(3) Dissemination
The Secretary, in coordination with the Secretary of Defense and the Secretary of Veterans Affairs, shall make the availability of the Armed Forces information website described in paragraph (1) widely known to members of the Armed Forces (including members of the National Guard and Reserves), veterans, the dependents of such members or veterans, States, institutions of higher education, and the general public.
(4) Definition
In this subsection, the term "Federal and State student financial assistance" means any grant, loan, work assistance, tuition assistance, scholarship, fellowship, or other form of financial aid for pursuing a postsecondary education that is—
(A) administered, sponsored, or supported by the Department of Education, the Department of Defense, the Department of Veterans Affairs, or a State; and
(B) available to members of the Armed Forces (including members of the National Guard and Reserves), veterans, or the dependents of such members or veterans.
(g) Promotion of availability of information concerning other student financial aid programs
(1) Definition
For purposes of this subsection, the term "nondepartmental student financial assistance program" means any grant, loan, scholarship, fellowship, or other form of financial aid for students pursuing a postsecondary education that is—
(A) distributed directly to the student or to the student's account at an institution of higher education; and
(B) operated, sponsored, or supported by a Federal department or agency other than the Department of Education.
(2) Availability of other student financial aid information
The Secretary shall ensure that—
(A) not later than 90 days after the Secretary receives the information required under paragraph (3), the eligibility requirements, application procedures, financial terms and conditions, and other relevant information for each nondepartmental student financial assistance program are searchable and accessible through the Federal student financial aid website in a manner that is simple and understandable for students and the students' families; and
(B) the website displaying the information described in subparagraph (A) includes a link to the National Database on Financial Assistance for the Study of Science, Technology, Engineering, and Mathematics pursuant to paragraph (4), and the information on military benefits under subsection (f), once such Database and information are available.
(3) Nondepartmental student financial assistance programs
The Secretary shall request all Federal departments and agencies to provide the information described in paragraph (2)(A), and each Federal department or agency shall—
(A) promptly respond to surveys or other requests from the Secretary for the information described in such paragraph; and
(B) identify for the Secretary any nondepartmental student financial assistance program operated, sponsored, or supported by such Federal department or agency.
(4) National STEM Database
(A) In general
The Secretary shall establish and maintain, on the website described in subsection (e)(3), a National Database on Financial Assistance for the Study of Science, Technology, Engineering, and Mathematics (in this paragraph referred to as the "STEM Database"). The STEM Database shall consist of information on scholarships, fellowships, and other programs of Federal, State, local, and, to the maximum extent practicable, private financial assistance available for the study of science, technology, engineering, or mathematics at the postsecondary and postbaccalaureate levels.
(B) Database contents
The information maintained on the STEM Database shall be displayed on the website in the following manner:
(i) Separate information
The STEM Database shall provide separate information for each of the fields of science, technology, engineering, and mathematics, and for postsecondary and postbaccalaureate programs of financial assistance.
(ii) Information on targeted assistance
The STEM Database shall provide specific information on any program of financial assistance that is targeted to individuals based on financial need, merit, or student characteristics.
(iii) Contact and website information
The STEM Database shall provide—
(I) standard contact information that an interested person may use to contact a sponsor of any program of financial assistance included in the STEM Database; and
(II) if such sponsor maintains a public website, a link to the website.
(iv) Search and match capabilities
The STEM Database shall—
(I) have a search capability that permits an individual to search for information on the basis of each category of the information provided through the STEM Database and on the basis of combinations of categories of the information provided, including—
(aa) whether the financial assistance is need- or merit-based; and
(bb) by relevant academic majors; and
(II) have a match capability that—
(aa) searches the STEM Database for all financial assistance opportunities for which an individual may be qualified to apply, based on the student characteristics provided by such individual; and
(bb) provides information to an individual for only those opportunities for which such individual is qualified, based on the student characteristics provided by such individual.
(v) Recommendation and disclaimer
The STEM Database shall provide, to the users of the STEM Database—
(I) a recommendation that students and families should carefully review all of the application requirements prior to applying for any aid or program of student financial assistance; and
(II) a disclaimer that the non-Federal programs of student financial assistance presented in the STEM Database are not provided or endorsed by the Department or the Federal Government.
(C) Compilation of financial assistance information
In carrying out this paragraph, the Secretary shall—
(i) consult with public and private sources of scholarships, fellowships, and other programs of student financial assistance; and
(ii) make easily available a process for such entities to provide regular and updated information about the scholarships, fellowships, or other programs of student financial assistance.
(D) Contract authorized
In carrying out the requirements of this paragraph, the Secretary is authorized to enter into a contract with a private entity with demonstrated expertise in creating and maintaining databases such as the one required under this paragraph, under which contract the entity shall furnish, and regularly update, all of the information required to be maintained on the STEM Database.
(5) Dissemination of information
The Secretary shall take such actions, on an ongoing basis, as may be necessary to disseminate information under this subsection and to encourage the use of the information by interested parties, including sending notices to secondary schools and institutions of higher education.
(h) No user fees for Department financial aid websites
No fee shall be charged to any individual to access—
(1) a database or website of the Department that provides information about higher education programs or student financial assistance, including the College Navigator website (or successor website) and the websites and databases described in this section and
(2) information about higher education programs or student financial assistance available through a database or website of the Department.
(
Editorial Notes
Prior Provisions
A prior section 1015,
Another prior section 1015,
Another prior section 1015,
Another prior section 1015,
A prior section 131 of
Amendments
2009—Subsec. (a)(3)(A)(iii)(I).
2008—Subsec. (a)(3)(B).
Subsecs. (d), (e).
Subsecs. (f), (g).
Subsec. (h).
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Labor and Human Resources of Senate changed to Committee on Health, Education, Labor, and Pensions of Senate by Senate Resolution No. 20, One Hundred Sixth Congress, Jan. 19, 1999.
Effective Date of 2009 Amendment
Amendment by
Student-Related Debt Study Required
§1015a. Transparency in college tuition for consumers
(a) Definitions
In this section:
(1) College Navigator website
The term "College Navigator website" means the College Navigator website operated by the Department and includes any successor website.
(2) Cost of attendance
The term "cost of attendance" means the average annual cost of tuition and fees, room and board, books, supplies, and transportation for an institution of higher education for a first-time, full-time undergraduate student enrolled in the institution.
(3) Net price
The term "net price" means the average yearly price actually charged to first-time, full-time undergraduate students receiving student aid at an institution of higher education after deducting such aid, which shall be determined by calculating the difference between—
(A) the institution's cost of attendance for the year for which the determination is made; and
(B) the quotient of—
(i) the total amount of need-based grant aid and merit-based grant aid, from Federal, State, and institutional sources, provided to such students enrolled in the institution for such year; and
(ii) the total number of such students receiving such need-based grant aid or merit-based grant aid for such year.
(4) Tuition and fees
The term "tuition and fees" means the average annual cost of tuition and fees for an institution of higher education for first-time, full-time undergraduate students enrolled in the institution.
(b) Calculations for public institutions
In making the calculations regarding cost of attendance, net price, and tuition and fees under this section with respect to a public institution of higher education, the Secretary shall calculate the cost of attendance, net price, and tuition and fees at such institution in the manner described in subsection (a), except that—
(1) the cost of attendance, net price, and tuition and fees shall be calculated for first-time, full-time undergraduate students enrolled in the institution who are residents of the State in which such institution is located; and
(2) in determining the net price, the average need-based grant aid and merit-based grant aid described in subsection (a)(3)(B) shall be calculated based on the average total amount of such aid received by first-time, full-time undergraduate students who are residents of the State in which such institution is located, divided by the total number of such resident students receiving such need-based grant aid or merit-based grant aid at such institution.
(c) College affordability and transparency lists
(1) Availability of lists
Beginning July 1, 2011, the Secretary shall make publicly available on the College Navigator website, in a manner that is sortable and searchable by State, the following:
(A) A list of the five percent of institutions in each category described in subsection (d) that have the highest tuition and fees for the most recent academic year for which data are available.
(B) A list of the five percent of institutions in each such category that have the highest net price for the most recent academic year for which data are available.
(C) A list of the five percent of institutions in each such category that have the largest increase, expressed as a percentage change, in tuition and fees over the most recent three academic years for which data are available, using the first academic year of the three-year period as the base year to compute such percentage change.
(D) A list of the five percent of institutions in each such category that have the largest increase, expressed as a percentage change, in net price over the most recent three academic years for which data are available, using the first academic year of the three-year period as the base year to compute such percentage change.
(E) A list of the ten percent of institutions in each such category that have the lowest tuition and fees for the most recent academic year for which data are available.
(F) A list of the ten percent of institutions in each such category that have the lowest net price for the most recent academic year for which data are available.
(2) Annual updates
The Secretary shall annually update the lists described in paragraph (1) on the College Navigator website.
(d) Categories of institutions
The lists described in subsection (c)(1) shall be compiled according to the following categories of institutions that participate in programs under subchapter IV:
(1) Four-year public institutions of higher education.
(2) Four-year private, nonprofit institutions of higher education.
(3) Four-year private, for-profit institutions of higher education.
(4) Two-year public institutions of higher education.
(5) Two-year private, nonprofit institutions of higher education.
(6) Two-year private, for-profit institutions of higher education.
(7) Less than two-year public institutions of higher education.
(8) Less than two-year private, nonprofit institutions of higher education.
(9) Less than two-year private, for-profit institutions of higher education.
(e) Reports by institutions
(1) Report to Secretary
If an institution of higher education is included on a list described in subparagraph (C) or (D) of subsection (c)(1), the institution shall submit to the Secretary a report containing the following information:
(A) A description of the major areas in the institution's budget with the greatest cost increases.
(B) An explanation of the cost increases described in subparagraph (A).
(C) A description of the steps the institution will take toward the goal of reducing costs in the areas described in subparagraph (A).
(D) In the case of an institution that is included on the same list under subparagraph (C) or (D) of subsection (c)(1) for two or more consecutive years, a description of the progress made on the steps described in subparagraph (C) of this paragraph that were included in the institution's report for the previous year.
(E) If the determination of any cost increase described in subparagraph (A) is not within the exclusive control of the institution—
(i) an explanation of the extent to which the institution participates in determining such cost increase;
(ii) the identification of the agency or instrumentality of State government responsible for determining such cost increase; and
(iii) any other information the institution considers relevant to the report.
(2) Information to the public
The Secretary shall—
(A) issue an annual report that summarizes all of the reports by institutions required under paragraph (1) to the authorizing committees; and
(B) publish such report on the College Navigator website.
(f) Exemptions
(1) In general
An institution shall not be placed on a list described in subparagraph (C) or (D) of subsection (c)(1), and shall not be subject to the reporting required under subsection (e), if the dollar amount of the institution's increase in tuition and fees, or net price, as applicable, is less than $600 for the three-year period described in such subparagraph.
(2) Update
Beginning in 2014, and every three years thereafter, the Secretary shall update the dollar amount described in paragraph (1) based on annual increases in inflation, using the Consumer Price Index for each of the three most recent preceding years.
(g) State higher education spending chart
The Secretary shall annually report on the College Navigator website, in charts for each State, comparisons of—
(1) the percentage change in spending by such State per full-time equivalent student at all public institutions of higher education in such State, for each of the five most recent preceding academic years;
(2) the percentage change in tuition and fees for such students for all public institutions of higher education in such State for each of the five most recent preceding academic years; and
(3) the percentage change in the total amount of need-based aid and merit-based aid provided by such State to full-time students enrolled in the public institutions of higher education in the State for each of the five most recent preceding academic years.
(h) Net price calculator
(1) Development of net price calculator
Not later than one year after August 14, 2008, the Secretary shall, in consultation with institutions of higher education and other appropriate experts, develop a net price calculator to help current and prospective students, families, and other consumers estimate the individual net price of an institution of higher education for a student. The calculator shall be developed in a manner that enables current and prospective students, families, and consumers to determine an estimate of a current or prospective student's individual net price at a particular institution.
(2) Calculation of individual net price
For purposes of this subsection, an individual net price of an institution of higher education shall be calculated in the same manner as the net price of such institution is calculated under subsection (a)(3), except that the cost of attendance and the amount of need-based and merit-based aid available shall be calculated for the individual student as much as practicable.
(3) Use of net price calculator by institutions
Not later than two years after the date on which the Secretary makes the calculator developed under paragraph (1) available to institutions of higher education, each institution of higher education that receives Federal funds under subchapter IV shall make publicly available on the institution's website a net price calculator to help current and prospective students, families, and other consumers estimate a student's individual net price at such institution of higher education. Such calculator may be a net price calculator developed—
(A) by the Department pursuant to paragraph (1); or
(B) by the institution of higher education, if the institution's calculator includes, at a minimum, the same data elements included in the calculator developed under paragraph (1).
(4) Disclaimer
Estimates of an individual net price determined using a net price calculator required under paragraph (3) shall be accompanied by a clear and conspicuous notice—
(A) stating that the estimate—
(i) does not represent a final determination, or actual award, of financial assistance;
(ii) shall not be binding on the Secretary, the institution of higher education, or the State; and
(iii) may change;
(B) stating that the student must complete the Free Application for Federal Student Aid described in
(C) including a link to the website of the Department that allows students to access the Free Application for Federal Student Aid described in
(i) Consumer information
(1) Availability of subchapter IV institution information
Not later than one year after August 14, 2008, the Secretary shall make publicly available on the College Navigator website, in simple and understandable terms, the following information about each institution of higher education that participates in programs under subchapter IV, for the most recent academic year for which satisfactory data are available:
(A) A statement of the institution's mission.
(B) The total number of undergraduate students who applied to, were admitted by, and enrolled in the institution.
(C) For institutions that require SAT or ACT scores to be submitted, the reading, writing, mathematics, and combined scores on the SAT or ACT, as applicable, for the middle 50 percent range of the institution's freshman class.
(D) The number of first-time, full-time, and part-time students enrolled at the institution, at the undergraduate and (if applicable) graduate levels.
(E) The number of degree- or certificate-seeking undergraduate students enrolled at the institution who have transferred from another institution.
(F) The percentages of male and female undergraduate students enrolled at the institution.
(G) Of the first-time, full-time, degree- or certificate-seeking undergraduate students enrolled at the institution—
(i) the percentage of such students who are from the State in which the institution is located;
(ii) the percentage of such students who are from other States; and
(iii) the percentage of such students who are international students.
(H) The percentages of first-time, full-time, degree- or certificate-seeking students enrolled at the institution, disaggregated by race and ethnic background.
(I) The percentage of undergraduate students enrolled at the institution who are formally registered with the office of disability services of the institution (or the equivalent office) as students with disabilities, except that if such percentage is three percent or less, the institution shall report "three percent or less".
(J) The percentages of first-time, full-time, degree- or certificate-seeking undergraduate students enrolled at the institution who obtain a degree or certificate within—
(i) the normal time for completion of, or graduation from, the student's program;
(ii) 150 percent of the normal time for completion of, or graduation from, the student's program; and
(iii) 200 percent of the normal time for completion of, or graduation from, the student's program;
(K) The number of certificates, associate degrees, baccalaureate degrees, master's degrees, professional degrees, and doctoral degrees awarded by the institution.
(L) The undergraduate major areas of study at the institution with the highest number of degrees awarded.
(M) The student-faculty ratio, the number of full-time and part-time faculty, and the number of graduate assistants with primarily instructional responsibilities, at the institution.
(N)(i) The cost of attendance for first-time, full-time undergraduate students enrolled in the institution who live on campus;
(ii) the cost of attendance for first-time, full-time undergraduate students enrolled in the institution who live off campus; and
(iii) in the case of a public institution of higher education and notwithstanding subsection (b)(1), the costs described in clauses (i) and (ii), for—
(I) first-time, full-time students enrolled in the institution who are residents of the State in which the institution is located; and
(II) first-time, full-time students enrolled in the institution who are not residents of such State.
(O) The average annual grant amount (including Federal, State, and institutional aid) awarded to a first-time, full-time undergraduate student enrolled at the institution who receives financial aid.
(P) The average annual amount of Federal student loans provided through the institution to undergraduate students enrolled at the institution.
(Q) The total annual grant aid awarded to undergraduate students enrolled at the institution, from the Federal Government, a State, the institution, and other sources known by the institution.
(R) The percentage of first-time, full-time undergraduate students enrolled at the institution receiving Federal, State, and institutional grants, student loans, and any other type of student financial assistance known by the institution, provided publicly or through the institution, such as Federal work-study funds.
(S) The number of students enrolled at the institution receiving Federal Pell Grants.
(T) The institution's cohort default rate, as defined under
(U) The information on campus safety required to be collected under
(V) A link to the institution's website that provides, in an easily accessible manner, the following information:
(i) Student activities offered by the institution.
(ii) Services offered by the institution for individuals with disabilities.
(iii) Career and placement services offered by the institution to students during and after enrollment.
(iv) Policies of the institution related to transfer of credit from other institutions.
(W) A link to the appropriate section of the Bureau of Labor Statistics website that provides information on regional data on starting salaries in all major occupations.
(X) Information required to be submitted under paragraph (4) and a link to the institution pricing summary page described in paragraph (5).
(Y) In the case of an institution that was required to submit a report under subsection (e)(1), a link to such report.
(Z) The availability of alternative tuition plans, which may include guaranteed tuition plans.
(2) Annual updates
The Secretary shall annually update the information described in paragraph (1) on the College Navigator website.
(3) Consultation
The Secretary shall regularly consult with current and prospective college students, family members of such students, institutions of higher education, and other experts to improve the usefulness and relevance of the College Navigator website, with respect to the presentation of the consumer information collected in paragraph (1).
(4) Data collection
The Commissioner for Education Statistics shall continue to update and improve the Integrated Postsecondary Education Data System (referred to in this section as "IPEDS"), including the reporting of information by institutions and the timeliness of the data collected.
(5) Institution pricing summary page
(A) Availability of list of participating institutions
The Secretary shall make publicly available on the College Navigator website in a sortable and searchable format a list of all institutions of higher education that participate in programs under subchapter IV, which list shall, for each institution, include the following:
(i) The tuition and fees for each of the three most recent academic years for which data are available.
(ii) The net price for each of the three most recent available academic years for which data are available.
(iii)(I) During the period beginning July 1, 2010, and ending June 30, 2013, the net price for students receiving Federal student financial aid under subchapter IV, disaggregated by the income categories described in paragraph (6), for the most recent academic year for which data are available.
(II) Beginning July 1, 2013, the net price for students receiving Federal student financial aid under subchapter IV, disaggregated by the income categories described in paragraph (6), for each of the three most recent academic years for which data are available.
(iv) The average annual percentage change and average annual dollar change in such institution's tuition and fees for each of the three most recent academic years for which data are available.
(v) The average annual percentage change and average annual dollar change in such institution's net price for each of the three most recent preceding academic years for which data are available.
(vi) A link to the webpage on the College Navigator website that provides the information described in paragraph (1) for the institution.
(B) Annual updates
The Secretary shall annually update the lists described in subparagraph (A) on the College Navigator website.
(6) Income categories
(A) In general
For purposes of reporting the information required under this subsection, the following income categories shall apply for students who receive Federal student financial aid under subchapter IV:
(i) $0–30,000.
(ii) $30,001–48,000.
(iii) $48,001–75,000.
(iv) $75,001–110,000.
(v) $110,001 and more.
(B) Adjustment
The Secretary may adjust the income categories listed in subparagraph (A) using the Consumer Price Index if the Secretary determines such adjustment is necessary.
(j) Multi-year tuition calculator
(1) Development of multi-year tuition calculator
Not later than one year after August 14, 2008, the Secretary shall, in consultation with institutions of higher education, financial planners, and other appropriate experts, develop a multi-year tuition calculator to help current and prospective students, families of such students, and other consumers estimate the amount of tuition an individual may pay to attend an institution of higher education in future years.
(2) Calculation of multi-year tuition
The multi-year tuition calculator described in paragraph (1) shall—
(A) allow an individual to select an institution of higher education for which the calculation shall be made;
(B) calculate an estimate of tuition and fees for each year of the normal duration of the program of study at such institution by—
(i) using the tuition and fees for such institution, as reported under subsection (i)(5)(A)(i), for the most recent academic year for which such data are reported; and
(ii) determining an estimated annual percentage change for each year for which the calculation is made, based on the annual percentage change in such institution's tuition and fees, as reported under subsection (i)(5)(A)(iv), for the most recent three-year period for which such data are reported;
(C) calculate an estimate of the total amount of tuition and fees to complete a program of study at such institution, based on the normal duration of such program, using the estimate calculated under subparagraph (B) for each year of the program of study;
(D) provide the individual with the option to replace the estimated annual percentage change described in subparagraph (B)(ii) with an alternative annual percentage change specified by the individual, and calculate an estimate of tuition and fees for each year and an estimate of the total amount of tuition and fees using the alternative percentage change;
(E) in the case of an institution that offers a multi-year tuition guarantee program, allow the individual to have the estimates of tuition and fees described in subparagraphs (B) and (C) calculated based on the provisions of such guarantee program for the tuition and fees charged to a student, or cohort of students, enrolled for the duration of the program of study; and
(F) include any other features or information determined to be appropriate by the Secretary.
(3) Availability and comparison
The multi-year tuition calculator described in paragraph (1) shall be available on the College Navigator website and shall allow current and prospective students, families of such students, and consumers to compare information and estimates under this subsection for multiple institutions of higher education.
(4) Disclaimer
Each calculation of estimated tuition and fees made using the multi-year tuition calculator described in paragraph (1) shall be accompanied by a clear and conspicuous notice—
(A) stating that the calculation—
(i) is only an estimate and not a guarantee of the actual amount the student may be charged;
(ii) is not binding on the Secretary, the institution of higher education, or the State; and
(iii) may change, subject to the availability of financial assistance, State appropriations, and other factors;
(B) stating that the student must complete the Free Application for Federal Student Aid described in
(C) including a link to the website of the Department that allows students to access the Free Application for Federal Student Aid described in
(k) Student aid recipient survey
(1) Survey required
The Secretary, acting through the Commissioner for Education Statistics, shall conduct, on a State-by-State basis, a survey of recipients of Federal student financial aid under subchapter IV—
(A) to identify the population of students receiving such Federal student financial aid;
(B) to describe the income distribution and other socioeconomic characteristics of recipients of such Federal student financial aid;
(C) to describe the combinations of aid from Federal, State, and private sources received by such recipients from all income categories;
(D) to describe the—
(i) debt burden of such loan recipients, and their capacity to repay their education debts; and
(ii) the impact of such debt burden on the recipients' course of study and post-graduation plans;
(E) to describe the impact of the cost of attendance of postsecondary education in the determination by students of what institution of higher education to attend; and
(F) to describe how the costs of textbooks and other instructional materials affect the costs of postsecondary education for students.
(2) Frequency
The survey shall be conducted on a regular cycle and not less often than once every four years.
(3) Survey design
The survey shall be representative of students from all types of institutions, including full-time and part-time students, undergraduate, graduate, and professional students, and current and former students.
(4) Dissemination
The Commissioner for Education Statistics shall disseminate to the public, in printed and electronic form, the information resulting from the survey.
(l) Regulations
The Secretary is authorized to issue such regulations as may be necessary to carry out this section.
(
Editorial Notes
Prior Provisions
A prior section 1015a,
Another prior section 1015a,
§1015b. Textbook information
(a) Purpose and intent
The purpose of this section is to ensure that students have access to affordable course materials by decreasing costs to students and enhancing transparency and disclosure with respect to the selection, purchase, sale, and use of course materials. It is the intent of this section to encourage all of the involved parties, including faculty, students, administrators, institutions of higher education, bookstores, distributors, and publishers, to work together to identify ways to decrease the cost of college textbooks and supplemental materials for students while supporting the academic freedom of faculty members to select high quality course materials for students.
(b) Definitions
In this section:
(1) Bundle
The term "bundle" means one or more college textbooks or other supplemental materials that may be packaged together to be sold as course materials for one price.
(2) College textbook
The term "college textbook" means a textbook or a set of textbooks, used for, or in conjunction with, a course in postsecondary education at an institution of higher education.
(3) Course schedule
The term "course schedule" means a listing of the courses or classes offered by an institution of higher education for an academic period, as defined by the institution.
(4) Custom textbook
The term "custom textbook"—
(A) means a college textbook that is compiled by a publisher at the direction of a faculty member or other person or adopting entity in charge of selecting course materials at an institution of higher education; and
(B) may include, alone or in combination, items such as selections from original instructor materials, previously copyrighted publisher materials, copyrighted third-party works, and elements unique to a specific institution, such as commemorative editions.
(5) Institution of higher education
The term "institution of higher education" has the meaning given the term in
(6) Integrated textbook
The term "integrated textbook" means a college textbook that is—
(A) combined with materials developed by a third party and that, by third-party contractual agreement, may not be offered by publishers separately from the college textbook with which the materials are combined; or
(B) combined with other materials that are so interrelated with the content of the college textbook that the separation of the college textbook from the other materials would render the college textbook unusable for its intended purpose.
(7) Publisher
The term "publisher" means a publisher of college textbooks or supplemental materials involved in or affecting interstate commerce.
(8) Substantial content
The term "substantial content" means parts of a college textbook such as new chapters, new material covering additional eras of time, new themes, or new subject matter.
(9) Supplemental material
The term "supplemental material" means educational material developed to accompany a college textbook that—
(A) may include printed materials, computer disks, website access, and electronically distributed materials; and
(B) is not being used as a component of an integrated textbook.
(c) Publisher requirements
(1) College textbook pricing information
When a publisher provides a faculty member or other person or adopting entity in charge of selecting course materials at an institution of higher education receiving Federal financial assistance with information regarding a college textbook or supplemental material, the publisher shall include, with any such information and in writing (which may include electronic communications), the following:
(A) The price at which the publisher would make the college textbook or supplemental material available to the bookstore on the campus of, or otherwise associated with, such institution of higher education and, if available, the price at which the publisher makes the college textbook or supplemental material available to the public.
(B) The copyright dates of the three previous editions of such college textbook, if any.
(C) A description of the substantial content revisions made between the current edition of the college textbook or supplemental material and the previous edition, if any.
(D)(i) Whether the college textbook or supplemental material is available in any other format, including paperback and unbound; and
(ii) for each other format of the college textbook or supplemental material, the price at which the publisher would make the college textbook or supplemental material in the other format available to the bookstore on the campus of, or otherwise associated with, such institution of higher education and, if available, the price at which the publisher makes such other format of the college textbook or supplemental material available to the public.
(2) Unbundling of college textbooks from supplemental materials
A publisher that sells a college textbook and any supplemental material accompanying such college textbook as a single bundle shall also make available the college textbook and each supplemental material as separate and unbundled items, each separately priced.
(3) Custom textbooks
To the maximum extent practicable, a publisher shall provide the information required under this subsection with respect to the development and provision of custom textbooks.
(d) Provision of ISBN college textbook information in course schedules
To the maximum extent practicable, each institution of higher education receiving Federal financial assistance shall—
(1) disclose, on the institution's Internet course schedule and in a manner of the institution's choosing, the International Standard Book Number and retail price information of required and recommended college textbooks and supplemental materials for each course listed in the institution's course schedule used for preregistration and registration purposes, except that—
(A) if the International Standard Book Number is not available for such college textbook or supplemental material, then the institution shall include in the Internet course schedule the author, title, publisher, and copyright date for such college textbook or supplemental material; and
(B) if the institution determines that the disclosure of the information described in this subsection is not practicable for a college textbook or supplemental material, then the institution shall so indicate by placing the designation "To Be Determined" in lieu of the information required under this subsection; and
(2) if applicable, include on the institution's written course schedule a notice that textbook information is available on the institution's Internet course schedule, and the Internet address for such schedule.
(e) Availability of information for college bookstores
An institution of higher education receiving Federal financial assistance shall make available to a college bookstore that is operated by, or in a contractual relationship or otherwise affiliated with, the institution, as soon as is practicable upon the request of such college bookstore, the most accurate information available regarding—
(1) the institution's course schedule for the subsequent academic period; and
(2) for each course or class offered by the institution for the subsequent academic period—
(A) the information required by subsection (d)(1) for each college textbook or supplemental material required or recommended for such course or class;
(B) the number of students enrolled in such course or class; and
(C) the maximum student enrollment for such course or class.
(f) Additional information
An institution disclosing the information required by subsection (d)(1) is encouraged to disseminate to students information regarding—
(1) available institutional programs for renting textbooks or for purchasing used textbooks;
(2) available institutional guaranteed textbook buy-back programs;
(3) available institutional alternative content delivery programs; or
(4) other available institutional cost-saving strategies.
(g) GAO report
Not later than July 1, 2013, the Comptroller General of the United States shall report to the authorizing committees on the implementation of this section by institutions of higher education, college bookstores, and publishers. The report shall particularly examine—
(1) the availability of college textbook information on course schedules;
(2) the provision of pricing information to faculty of institutions of higher education by publishers;
(3) the use of bundled and unbundled material in the college textbook marketplace, including the adoption of unbundled materials by faculty and the use of integrated textbooks by publishers; and
(4) the implementation of this section by institutions of higher education, including the costs and benefits to such institutions and to students.
(h) Rule of construction
Nothing in this section shall be construed to supercede the institutional autonomy or academic freedom of instructors involved in the selection of college textbooks, supplemental materials, and other classroom materials.
(i) No regulatory authority
The Secretary shall not promulgate regulations with respect to this section.
(
Editorial Notes
Prior Provisions
A prior section 1015b,
Another prior section 1015b,
Statutory Notes and Related Subsidiaries
Effective Date
Establishment of Pilot Program for Course Material Rental
"(a)
"(b)
"(c)
"(1) purchase of course materials that the entity will make available by rent to students;
"(2) any equipment or software necessary for the conduct of a rental program;
"(3) hiring staff needed for the conduct of a rental program, with priority given to hiring enrolled undergraduate students; and
"(4) building or acquiring extra storage space dedicated to course materials for rent.
"(d)
"(1)
"(2)
"(e)
§1015c. Database of student information prohibited
(a) Prohibition
Except as described in subsection (b), nothing in this chapter shall be construed to authorize the development, implementation, or maintenance of a Federal database of personally identifiable information on individuals receiving assistance under this chapter, attending institutions receiving assistance under this chapter, or otherwise involved in any studies or other collections of data under this chapter, including a student unit record system, an education bar code system, or any other system that tracks individual students over time.
(b) Exception
The provisions of subsection (a) shall not apply to a system (or a successor system) that—
(1) is necessary for the operation of programs authorized by subchapter II, IV, or VII; and
(2) was in use by the Secretary, directly or through a contractor, as of the day before August 14, 2008.
(c) State databases
Nothing in this chapter shall prohibit a State or a consortium of States from developing, implementing, or maintaining State-developed databases that track individuals over time, including student unit record systems that contain information related to enrollment, attendance, graduation and retention rates, student financial assistance, and graduate employment outcomes.
(
Editorial Notes
Prior Provisions
A prior section 1015c,
Another prior section 1015c,
§1015d. In-State tuition rates for members of qualifying Federal service
(a) Requirement
In the case of a member of a qualifying Federal service whose domicile or permanent duty station is in a State that receives assistance under this chapter, such State shall not charge such member (or the spouse or dependent child of such member) tuition for attendance at a public institution of higher education in the State at a rate that is greater than the rate charged for residents of the State.
(b) Continuation
If a member of a qualifying Federal service (or the spouse or dependent child of a member) pays tuition at a public institution of higher education in a State at a rate determined by subsection (a), the provisions of subsection (a) shall continue to apply to such member, spouse, or dependent while continuously enrolled at that institution, notwithstanding a subsequent change in the permanent duty station of the member to a location outside the State.
(c) Effective date
This section shall take effect at each public institution of higher education in a State that receives assistance under this chapter for the first period of enrollment at such institution that begins after July 1, 2009.
(d) Definitions
In this section, the term "member of a qualifying Federal service" means—
(1) a member of the armed forces (as defined in
(2) a member of the Foreign Service (as defined in
(3) an officer or employee of an element of the intelligence community (as such term is defined in
(
Editorial Notes
Prior Provisions
A prior section 1015d,
Amendments
2023—Subsec. (d)(3).
2021—
Subsec. (a).
Subsec. (b).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2023 Amendment
Effective Date of 2021 Amendment
§1015e. State higher education information system pilot program
(a) Purpose
It is the purpose of this section to carry out a pilot program to assist not more than five States to develop State-level postsecondary student data systems to—
(1) improve the capacity of States and institutions of higher education to generate more comprehensive and comparable data, in order to develop better-informed educational policy at the State level and to evaluate the effectiveness of institutional performance while protecting the confidentiality of students' personally identifiable information; and
(2) identify how to best minimize the data-reporting burden placed on institutions of higher education, particularly smaller institutions, and to maximize and improve the information institutions receive from the data systems, in order to assist institutions in improving educational practice and postsecondary outcomes.
(b) Definition of eligible entity
In this section, the term "eligible entity" means—
(1) a State higher education system; or
(2) a consortium of State higher education systems, or a consortium of individual institutions of higher education, that is broadly representative of institutions in different sectors and geographic locations.
(c) Competitive grants
(1) Grants authorized
The Secretary shall award grants, on a competitive basis, to not more than five eligible entities to enable the eligible entities to—
(A) design, test, and implement systems of postsecondary student data that provide the maximum benefits to States, institutions of higher education, and State policymakers; and
(B) examine the costs and burdens involved in implementing a State-level postsecondary student data system.
(2) Duration
A grant awarded under this section shall be for a period of not more than three years.
(d) Application requirements
An eligible entity desiring a grant under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require, including a description of—
(1) how the eligible entity will ensure that student privacy is protected and that individually identifiable information about students, the students' achievements, and the students' families remains confidential in accordance with
(2) how the activities funded by the grant will be supported after the three-year grant period.
(e) Use of funds
A grant awarded under this section shall be used to—
(1) design, develop, and implement the components of a comprehensive postsecondary student data system with the capacity to transmit student information within a State;
(2) improve the capacity of institutions of higher education to analyze and use student data;
(3) select and define common data elements, data quality, and other elements that will enable the data system to—
(A) serve the needs of institutions of higher education for institutional research and improvement;
(B) provide students and the students' families with useful information for decision-making about postsecondary education; and
(C) provide State policymakers with improved information to monitor and guide efforts to improve student outcomes and success in higher education;
(4) estimate costs and burdens at the institutional level for the reporting system for different types of institutions; and
(5) test the feasibility of protocols and standards for maintaining data privacy and data access.
(f) Evaluation; reports
Not later than six months after the end of the projects funded by grants awarded under this section, the Secretary shall—
(1) conduct a comprehensive evaluation of the pilot program authorized by this section; and
(2) report the Secretary's findings, as well as recommendations regarding the implementation of State-level postsecondary student data systems, to the authorizing committees.
(g) Authorization of appropriations
There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.
(
Editorial Notes
Amendments
2009—Subsec. (d)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
§1015f. State commitment to affordable college education
(a) Maintenance of effort required
A State shall provide—
(1) for public institutions of higher education in such State for any academic year beginning on or after July 1, 2008, an amount which is equal to or greater than the average amount provided for non-capital and non-direct research and development expenses or costs by such State to such institutions of higher education during the five most recent preceding academic years for which satisfactory data are available; and
(2) for private institutions of higher education in such State for any academic year beginning on or after July 1, 2008, an amount which is equal to or greater than the average amount provided for student financial aid for paying costs associated with postsecondary education by such State to such institutions during the five most recent preceding academic years for which satisfactory data are available.
(b) Adjustments for biennial appropriations
The Secretary shall take into consideration any adjustments to the calculations under subsection (a) that may be required to accurately reflect funding levels for postsecondary education in States with biennial appropriation cycles.
(c) Waiver
The Secretary shall waive the requirements of subsection (a), if the Secretary determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances, such as a natural disaster or a precipitous and unforseen 1 decline in the financial resources of a State or State educational agency, as appropriate.
(d) Violation of maintenance of effort
Notwithstanding any other provision of law, the Secretary shall withhold from any State that violates subsection (a) and does not receive a waiver pursuant to subsection (c) any amount that would otherwise be available to the State under
(
Editorial Notes
Prior Provisions
A prior section 1016,
Another prior section 1016,
A prior section 1016a,
A prior section 1017,
Another prior section 1017,
1 So in original. Probably should be "unforeseen".
Part D—Administrative Provisions for Delivery of Student Financial Assistance
§1018. Performance-Based Organization for delivery of Federal student financial assistance
(a) Establishment and purpose
(1) Establishment
There is established in the Department a Performance-Based Organization (hereafter referred to as the "PBO") which shall be a discrete management unit responsible for managing the administrative and oversight functions supporting the programs authorized under subchapter IV of this chapter, as specified in subsection (b).
(2) Purposes
The purposes of the PBO are—
(A) to improve service to students and other participants in the student financial assistance programs authorized under subchapter IV, including making those programs more understandable to students and their parents;
(B) to reduce the costs of administering those programs;
(C) to increase the accountability of the officials responsible for administering the operational aspects of these programs;
(D) to provide greater flexibility in the management and administration of the Federal student financial assistance programs;
(E) to integrate the information systems supporting the Federal student financial assistance programs;
(F) to implement an open, common, integrated system for the delivery of student financial assistance under subchapter IV; and
(G) to develop and maintain a student financial assistance system that contains complete, accurate, and timely data to ensure program integrity.
(b) General authority
(1) Authority of Secretary
Notwithstanding any other provision of this part, the Secretary shall maintain responsibility for the development and promulgation of policy and regulations relating to the programs of student financial assistance under subchapter IV. In the exercise of its functions, the PBO shall be subject to the direction of the Secretary. The Secretary shall—
(A) request the advice of, and work in cooperation with, the Chief Operating Officer in developing regulations, policies, administrative guidance, or procedures affecting the Federal student financial assistance programs authorized under subchapter IV;
(B) request cost estimates from the Chief Operating Officer for system changes required by specific policies proposed by the Secretary; and
(C) assist the Chief Operating Officer in identifying goals for—
(i) the administration of the systems used to administer the Federal student financial assistance programs authorized under subchapter IV; and
(ii) the updating of such systems to current technology.
(2) PBO functions
Subject to paragraph (1), the PBO shall be responsible for the administration of Federal student financial assistance programs authorized under subchapter IV, excluding the development of policy relating to such programs but including the following:
(A) The administrative, accounting, and financial management functions for the Federal student financial assistance programs authorized under subchapter IV, including—
(i) the collection, processing, and transmission of data to students, institutions, lenders, State agencies, and other authorized parties;
(ii) the design and technical specifications for software development and procurement for systems supporting the Federal student financial assistance programs authorized under subchapter IV;
(iii) all software and hardware acquisitions and all information technology contracts related to the administration and management of student financial assistance under subchapter IV;
(iv) all aspects of contracting for the information and financial systems supporting the Federal student financial assistance programs authorized under subchapter IV;
(v) providing all customer service, training, and user support related to the administration of the Federal student financial assistance programs authorized under subchapter IV; and
(vi) ensuring the integrity of the Federal student financial assistance programs authorized under subchapter IV.
(B) Annual development of a budget for the activities and functions of the PBO, in consultation with the Secretary, and for consideration and inclusion in the Department's annual budget submission.
(C) Taking action to prevent and address the improper use of access devices, as described in
(i) detecting common patterns of improper use of any system that processes payments on Federal Direct Loans or other Department information technology systems;
(ii) maintaining a reporting system for contractors involved in the processing of payments on Federal Direct Loans in order to allow those contractors to alert the Secretary of potentially improper use of Department information technology systems;
(iii) proactively contacting Federal student loan borrowers whose Federal student loan accounts demonstrate a likelihood of improper use in order to warn those borrowers of suspicious activity or potential fraud regarding their Federal student loan accounts; and
(iv) providing clear and simple disclosures in communications with borrowers who are applying for or requesting assistance with Federal Direct Loan programs (including assistance or applications regarding income-driven repayment, forbearance, deferment, consolidation, rehabilitation, cancellation, and forgiveness) to ensure that borrowers are aware that the Department will never require borrowers to pay for such assistance or applications.
(3) Additional functions
The Secretary may allocate to the PBO such additional functions as the Secretary and the Chief Operating Officer determine are necessary or appropriate to achieve the purposes of the PBO.
(4) Independence
Subject to paragraph (1), in carrying out its functions, the PBO shall exercise independent control of its budget allocations and expenditures, personnel decisions and processes, procurements, and other administrative and management functions.
(5) Audits and review
The PBO shall be subject to the usual and customary Federal audit procedures and to review by the Inspector General of the Department.
(6) Changes
(A) In general
The Secretary and the Chief Operating Officer shall consult concerning the effects of policy, market, or other changes on the ability of the PBO to achieve the goals and objectives established in the performance plan described in subsection (c).
(B) Revisions to agreement
The Secretary and the Chief Operating Officer may revise the annual performance agreement described in subsection (d)(4) in light of policy, market, or other changes that occur after the Secretary and the Chief Operating Officer enter into the agreement.
(c) Performance plan, report, and briefing
(1) Performance plan
(A) In general
Each year, the Secretary and Chief Operating Officer shall agree on, and make available to the public, a performance plan for the PBO for the succeeding 5 years that establishes measurable goals and objectives for the organization.
(B) Consultation
In developing the 5-year performance plan and any revision to the plan, the Secretary and the Chief Operating Officer shall consult with students, institutions of higher education, Congress, lenders, the Advisory Committee on Student Financial Assistance, and other interested parties not less than 30 days prior to the implementation of the performance plan or revision.
(C) Areas
The plan shall include a concise statement of the goals for a modernized system for the delivery of student financial assistance under subchapter IV and identify action steps necessary to achieve such goals. The plan shall address the PBO's responsibilities in the following areas:
(i) Improving service
Improving service to students and other participants in student financial aid programs authorized under under 1 subchapter IV, including making those programs more understandable to students and their parents.
(ii) Reducing costs
Reducing the costs of administering those programs.
(iii) Improvement and integration of support systems
Improving and integrating the systems that support those programs.
(iv) Delivery and information system
Developing open, common, and integrated systems for programs authorized under under 1 subchapter IV.
(v) Other areas
Any other areas identified by the Secretary.
(2) Annual report
Each year, the Chief Operating Officer shall prepare and submit to Congress, through the Secretary, an annual report on the performance of the PBO, including an evaluation of the extent to which the PBO met the goals and objectives contained in the 5-year performance plan described in paragraph (1) for the preceding year. The annual report shall include the following:
(A) An independent financial audit of the expenditures of both the PBO and the programs administered by the PBO.
(B) Financial and performance requirements applicable to the PBO under the Chief Financial Officers Act of 1990 and the Government Performance and Results Act of 1993.
(C) The results achieved by the PBO during the year relative to the goals established in the organization's performance plan.
(D) The evaluation rating of the performance of the Chief Operating Officer and senior managers under subsections (d)(4) and (e)(2), including the amounts of bonus compensation awarded to these individuals.
(E) Recommendations for legislative and regulatory changes to improve service to students and their families, and to improve program efficiency and integrity.
(F) Other such information as the Director of the Office of Management and Budget shall prescribe for performance based organizations.
(3) Consultation with stakeholders
The Chief Operating Officer, in preparing the report described in paragraph (2), shall establish appropriate means to consult with students, borrowers, institutions, lenders, guaranty agencies, secondary markets, and others involved in the delivery system of student aid under subchapter IV—
(A) regarding the degree of satisfaction with the delivery system; and
(B) to seek suggestions on means to improve the delivery system.
(4) Briefing on enforcement of student loan provisions
The Secretary shall, upon request, provide a briefing to the members of the authorizing committees on the steps the Department has taken to ensure—
(A) the integrity of the student loan programs; and
(B) that lenders and guaranty agencies are adhering to the requirements of subchapter IV.
(d) Chief Operating Officer
(1) Appointment
The management of the PBO shall be vested in a Chief Operating Officer who shall be appointed by the Secretary to a term of not less than 3 and not more than 5 years, and compensated without regard to chapters 33, 51, and 53 of title 5. The appointment shall be made on the basis of demonstrated management ability and expertise in information technology, including experience with financial systems, and without regard to political affiliation or activity.
(2) Reappointment
The Secretary may reappoint the Chief Operating Officer to subsequent terms of not less than 3 and not more than 5 years, so long as the performance of the Chief Operating Officer, as set forth in the performance agreement described in paragraph (4), is satisfactory.
(3) Removal
The Chief Operating Officer may be removed by—
(A) the President; or
(B) the Secretary, for misconduct or failure to meet performance goals set forth in the performance agreement in paragraph (4).
The President or Secretary shall communicate the reasons for any such removal to the authorizing committees.
(4) Performance agreement
(A) In general
Each year, the Secretary and the Chief Operating Officer shall enter into an annual performance agreement, that shall set forth measurable organization and individual goals for the Chief Operating Officer.
(B) Transmittal
The final agreement, and any revision to the final agreement, shall be transmitted to the authorizing committees, and made publicly available.
(5) Compensation
(A) In general
The Chief Operating Officer is authorized to be paid at an annual rate of basic pay not to exceed the maximum rate of basic pay for the Senior Executive Service under
(B) Bonus
In addition, the Chief Operating Officer may receive a bonus in an amount that does not exceed 50 percent of such annual rate of basic pay, based upon the Secretary's evaluation of the Chief Operating Officer's performance in relation to the goals set forth in the performance agreement described in paragraph (4).
(C) Payment
Payment of a bonus under subparagraph (B) may be made to the Chief Operating Officer only to the extent that such payment does not cause the Chief Operating Officer's total aggregate compensation in a calendar year to equal or exceed the amount of the President's salary under
(e) Senior management
(1) Appointment
(A) In general
The Chief Operating Officer may appoint such senior managers as that officer determines necessary without regard to the provisions of title 5 governing appointments in the competitive service.
(B) Compensation
The senior managers described in subparagraph (A) may be paid without regard to the provisions of
(2) Performance agreement
Each year, the Chief Operating Officer and each senior manager appointed under this subsection shall enter into an annual performance agreement that sets forth measurable organization and individual goals. The agreement shall be subject to review and renegotiation at the end of each term.
(3) Compensation
(A) In general
A senior manager appointed under this subsection may be paid at an annual rate of basic pay of not more than the maximum rate of basic pay for the Senior Executive Service under
(B) Bonus
In addition, a senior manager may receive a bonus in an amount such that the manager's total annual compensation does not exceed 125 percent of the maximum rate of basic pay for the Senior Executive Service, including any applicable locality-based comparability payment, based upon the Chief Operating Officer's evaluation of the manager's performance in relation to the goals set forth in the performance agreement described in paragraph (2).
(4) Removal
A senior manager shall be removable by the Chief Operating Officer, or by the Secretary if the position of Chief Operating Officer is vacant.
(f) Student Loan Ombudsman
(1) Appointment
The Chief Operating Officer, in consultation with the Secretary, shall appoint a Student Loan Ombudsman to provide timely assistance to borrowers of loans made, insured, or guaranteed under subchapter IV by performing the functions described in paragraph (3).
(2) Public information
The Chief Operating Officer shall disseminate information about the availability and functions of the Ombudsman to students, borrowers, and potential borrowers, as well as institutions of higher education, lenders, guaranty agencies, loan servicers, and other participants in those student loan programs.
(3) Functions of Ombudsman
The Ombudsman shall—
(A) in accordance with regulations of the Secretary, receive, review, and attempt to resolve informally complaints from borrowers of loans described in paragraph (1), including, as appropriate, attempts to resolve such complaints within the Department of Education and with institutions of higher education, lenders, guaranty agencies, loan servicers, and other participants in the loan programs described in paragraph (1); and
(B) compile and analyze data on borrower complaints and make appropriate recommendations.
(4) Report
Each year, the Ombudsman shall submit a report to the Chief Operating Officer, for inclusion in the annual report under subsection (c)(2), that describes the activities, and evaluates the effectiveness of the Ombudsman during the preceding year.
(g) Personnel flexibility
(1) Personnel ceilings
The PBO shall not be subject to any ceiling relating to the number or grade of employees.
(2) Administrative flexibility
The Chief Operating Officer shall work with the Office of Personnel Management to develop and implement personnel flexibilities in staffing, classification, and pay that meet the needs of the PBO, subject to compliance with title 5.
(3) Excepted service
The Chief Operating Officer may appoint, without regard to the provisions of title 5 governing appointments in the competitive service, technical and professional employees to administer the functions of the PBO. These employees may be paid without regard to the provisions of
(h) Establishment of fair and equitable system for measuring staff performance
The PBO shall establish an annual performance management system, subject to compliance with title 5, and consistent with applicable provisions of law and regulations, which strengthens the effectiveness of the PBO by providing for establishing goals or objectives for individual, group, or organizational performance (or any combination thereof), consistent with the performance plan of the PBO and its performance planning procedures, including those established under the Government Performance and Results Act of 1993, and communicating such goals or objectives to employees.
(i) Authorization of appropriations
The Secretary shall allocate from funds made available under
(
Editorial Notes
References in Text
The Chief Financial Officers Act of 1990, referred to in subsec. (c)(2)(B), is
The Government Performance and Results Act of 1993, referred to in subsecs. (c)(2)(B) and (h), is
Prior Provisions
A prior section 1018,
Another prior section 1018,
Amendments
2020—Subsec. (b)(2)(C).
2009—Subsec. (c)(3).
Subsec. (d)(3).
2008—Subsec. (a)(1).
Subsec. (a)(2)(D).
Subsec. (b)(1)(A).
Subsec. (b)(1)(C).
Subsec. (b)(2).
Subsec. (b)(2)(A).
Subsec. (b)(2)(A)(i), (ii).
"(i) the collection, processing and transmission of applicant data to students, institutions and authorized third parties, as provided for in
"(ii) design and technical specifications for software development and systems supporting the delivery of student financial assistance under subchapter IV;".
Subsec. (b)(2)(A)(iii).
Subsec. (b)(2)(A)(iv).
Subsec. (b)(2)(A)(v).
Subsec. (b)(2)(A)(vi).
Subsec. (b)(2)(B).
Subsec. (c).
Subsec. (c)(1)(C)(i).
Subsec. (c)(1)(C)(iii).
Subsec. (c)(1)(C)(iv).
Subsec. (c)(2)(A).
Subsec. (c)(2)(B).
Subsec. (c)(3).
Subsec. (c)(4).
Subsec. (d)(1).
Subsec. (d)(4)(B).
Subsec. (d)(5)(B).
Subsec. (d)(5)(C).
Subsec. (f)(2).
Subsec. (f)(3)(A).
Subsec. (g)(3).
Subsec. (h).
Subsecs. (i), (j).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Effective Date of 2009 Amendment
Amendment by
Study of Market Mechanisms in Federal Student Loan Programs
§1018a. Procurement flexibility
(a) Procurement authority
Subject to the authority of the Secretary, the Chief Operating Officer of a PBO may exercise the authority of the Secretary to procure property and services in the performance of functions managed by the PBO. For the purposes of this section, the term "PBO" includes the Chief Operating Officer of the PBO and any employee of the PBO exercising procurement authority under the preceding sentence.
(b) In general
Except as provided in this section, the PBO shall abide by all applicable Federal procurement laws and regulations when procuring property and services. The PBO shall—
(1) enter into contracts to carry out the functions set forth in
(2) obtain the services of experts and consultants without regard to
(3) through the Chief Operating Officer—
(A) to the maximum extent practicable, utilize procurement systems that streamline operations, improve internal controls, and enhance management; and
(B) assess the efficiency of such systems and assess such systems' ability to meet PBO requirements.
(c) Service contracts
(1) Performance-based servicing contracts
The Chief Operating Officer shall, to the extent practicable, maximize the use of performance-based servicing contracts, consistent with guidelines for such contracts published by the Office of Federal Procurement Policy, to achieve cost savings and improve service.
(2) Fee for service arrangements
The Chief Operating Officer shall, when appropriate and consistent with the purposes of the PBO, acquire services related to the functions set forth in
(d) Two-phase source-selection procedures
(1) In general
The PBO may use a two-phase process for selecting a source for a procurement of property or services.
(2) First phase
The procedures for the first phase of the process for a procurement are as follows:
(A) Publication of notice
The contracting officer for the procurement shall publish a notice of the procurement in accordance with
(i) A general description of the scope or purpose of the procurement that provides sufficient information on the scope or purpose for sources to make informed business decisions regarding whether to participate in the procurement.
(ii) A description of the basis on which potential sources are to be selected to submit offers in the second phase.
(iii) A description of the information that is to be required under subparagraph (B).
(iv) Any additional information that the contracting officer determines appropriate.
(B) Information submitted by offerors
Each offeror for the procurement shall submit basic information, such as information on the offeror's qualifications, the proposed conceptual approach, costs likely to be associated with the proposed conceptual approach, and past performance of the offeror, together with any additional information that is requested by the contracting officer.
(C) Selection for second phase
The contracting officer shall select the offerors that are to be eligible to participate in the second phase of the process. The contracting officer shall limit the number of the selected offerors to the number of sources that the contracting officer determines is appropriate and in the best interests of the Federal Government.
(3) Second phase
(A) In general
The contracting officer shall conduct the second phase of the source selection process in accordance with sections 3306(a) to (e) and 3308,
(B) Eligible participants
Only the sources selected in the first phase of the process shall be eligible to participate in the second phase.
(C) Single or multiple procurements
The second phase may include a single procurement or multiple procurements within the scope, or for the purpose, described in the notice pursuant to paragraph (2)(A).
(4) Procedures considered competitive
The procedures used for selecting a source for a procurement under this subsection shall be considered competitive procedures for all purposes.
(e) Use of simplified procedures for commercial products and commercial services
Whenever the PBO anticipates that commercial products or commercial services will be offered for a procurement, the PBO may use (consistent with the special rules for commercial products and commercial services) the special simplified procedures for the procurement without regard to any dollar limitation otherwise applicable to the use of those procedures.
(f) Flexible wait periods and deadlines for submission of offers of noncommercial products and services
(1) Authority
In carrying out a procurement, the PBO may—
(A) apply a shorter waiting period for the issuance of a solicitation after the publication of a notice under
(B) notwithstanding subsection (a)(3) of such section, establish any deadline for the submission of bids or proposals that affords potential offerors a reasonable opportunity to respond to the solicitation.
(2) Inapplicability to commercial products and services
Paragraph (1) does not apply to a procurement of a commercial product or a commercial service.
(3) Consistency with applicable international agreements
If an international agreement is applicable to the procurement, any exercise of authority under paragraph (1) shall be consistent with the international agreement.
(g) Modular contracting
(1) In general
The PBO may satisfy the requirements of the PBO for a system incrementally by carrying out successive procurements of modules of the system. In doing so, the PBO may use procedures authorized under this subsection to procure any such module after the first module.
(2) Utility requirement
A module may not be procured for a system under this subsection unless the module is useful independently of the other modules or useful in combination with another module previously procured for the system.
(3) Conditions for use of authority
The PBO may use procedures authorized under paragraph (4) for the procurement of an additional module for a system if—
(A) competitive procedures were used for awarding the contract for the procurement of the first module for the system; and
(B) the solicitation for the first module included—
(i) a general description of the entire system that was sufficient to provide potential offerors with reasonable notice of the general scope of future modules;
(ii) other information sufficient for potential offerors to make informed business judgments regarding whether to submit offers for the contract for the first module; and
(iii) a statement that procedures authorized under this subsection could be used for awarding subsequent contracts for the procurement of additional modules for the system.
(4) Procedures
If the procurement of the first module for a system meets the requirements set forth in paragraph (3), the PBO may award a contract for the procurement of an additional module for the system using any of the following procedures:
(A) Single-source basis
Award of the contract on a single-source basis to a contractor who was awarded a contract for a module previously procured for the system under competitive procedures or procedures authorized under subparagraph (B).
(B) Adequate competition
Award of the contract on the basis of offers made by—
(i) a contractor who was awarded a contract for a module previously procured for the system after having been selected for award of the contract under this subparagraph or other competitive procedures; and
(ii) at least one other offeror that submitted an offer for a module previously procured for the system and is expected, on the basis of the offer for the previously procured module, to submit a competitive offer for the additional module.
(C) Other
Award of the contract under any other procedure authorized by law.
(5) Notice requirement
(A) Publication
Not less than 30 days before issuing a solicitation for offers for a contract for a module for a system under procedures authorized under subparagraph (A) or (B) of paragraph (4), the PBO shall publish in the Commerce Business Daily a notice of the intent to use such procedures to enter into the contract.
(B) Exception
Publication of a notice is not required under this paragraph with respect to a use of procedures authorized under paragraph (4) if the contractor referred to in that subparagraph (who is to be solicited to submit an offer) has previously provided a module for the system under a contract that contained cost, schedule, and performance goals and the contractor met those goals.
(C) Content of notice
A notice published under subparagraph (A) with respect to a use of procedures described in paragraph (4) shall contain the information required under
(6) Documentation
The basis for an award of a contract under this subsection shall be documented. However, a justification pursuant to
(7) Simplified source-selection procedures
The PBO may award a contract under any other simplified procedures prescribed by the PBO for the selection of sources for the procurement of modules for a system, after the first module, that are not to be procured under a contract awarded on a single-source basis.
(h) Use of simplified procedures for small business set-asides for services other than commercial services
(1) Authority
The PBO may use special simplified procedures for a procurement of services that are not commercial services if—
(A) the procurement is in an amount not greater than $1,000,000;
(B) the procurement is conducted as a small business set-aside pursuant to
(C) the price charged for supplies associated with the services procured are items of supply expected to be less than 20 percent of the total contract price.
(2) Inapplicability to certain procurements
The authority set forth in paragraph (1) may not be used for—
(A) an award of a contract on a single-source basis; or
(B) a contract for construction.
(i) Guidance for use of authority
(1) Issuance by PBO
The Chief Operating Officer of the PBO, in consultation with the Administrator for Federal Procurement Policy, shall issue guidance for the use by PBO personnel of the authority provided in this section.
(2) Guidance from OFPP
As part of the consultation required under paragraph (1), the Administrator for Federal Procurement Policy shall provide the PBO with guidance that is designed to ensure, to the maximum extent practicable, that the authority under this section is exercised by the PBO in a manner that is consistent with the exercise of the authority by the heads of the other performance-based organizations.
(3) Compliance with OFPP guidance
The head of the PBO shall ensure that the procurements of the PBO under this section are carried out in a manner that is consistent with the guidance provided for the PBO under paragraph (2).
(j) Limitation on multiagency contracting
No department or agency of the Federal Government may purchase property or services under contracts entered into or administered by a PBO under this section unless the purchase is approved in advance by the senior procurement official of that department or agency who is responsible for purchasing by the department or agency.
(k) Laws not affected
Nothing in this section shall be construed to waive laws for the enforcement of civil rights or for the establishment and enforcement of labor standards that are applicable to contracts of the Federal Government.
(l) Definitions
In this section:
(1) Commercial product
The term "commercial product" has the meaning given the term in
(2) Commercial service
The term "commercial service" has the meaning given the term in
(3) Competitive procedures
The term "competitive procedures" has the meaning given the term in
(4) Single-source basis
The term "single-source basis", with respect to an award of a contract, means that the contract is awarded to a source after soliciting an offer or offers from, and negotiating with, only such source (although such source is not the only source in the marketplace capable of meeting the need) because such source is the most advantageous source for purposes of the award.
(5) Special rules for commercial products and commercial services
The term "special rules for commercial products and commercial services" means the regulations set forth in the Federal Acquisition Regulation pursuant to
(6) Special simplified procedures
The term "special simplified procedures" means the procedures applicable to purchases of property and services for amounts not greater than the simplified acquisition threshold that are set forth in the Federal Acquisition Regulation pursuant to
(
Editorial Notes
Codification
In subsec. (d)(2)(A), "
In subsec. (d)(3)(A), "sections 3306(a) to (e) and 3308,
In subsec. (f)(1)(A), "
In subsec. (g)(5)(C), "
In subsec. (g)(6), "
Prior Provisions
A prior section 1018a,
Amendments
Subsec. (f).
Subsec. (f)(2).
Subsec. (h).
Subsec. (h)(1).
Subsec. (l)(1), (2).
Subsec. (l)(3).
Subsec. (l)(4).
Subsec. (l)(5).
Subsec. (l)(6).
2008—Subsec. (b)(1).
Subsec. (b)(2), (3).
Subsec. (c)(2).
Subsec. (d)(2)(B).
Subsec. (g)(4)(A).
Subsec. (g)(7).
Subsec. (h)(2)(A).
Subsec. (l)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
§1018b. Administrative simplification of student aid delivery
(a) In general
In order to improve the efficiency and effectiveness of the student aid delivery system, the Secretary and the Chief Operating Officer shall encourage and participate in the establishment of voluntary consensus standards and requirements for the electronic transmission of information necessary for the administration of programs under subchapter IV.
(b) Participation in standard setting organizations
(1) The Chief Operating Officer shall participate in the activities of standard setting organizations in carrying out the provisions of this section.
(2) The Chief Operating Officer shall encourage higher education groups seeking to develop common forms, standards, and procedures in support of the delivery of Federal student financial assistance to conduct these activities within a standard setting organization.
(3) The Chief Operating Officer may pay necessary dues and fees associated with participating in standard setting organizations pursuant to this subsection.
(c) Adoption of voluntary consensus standards
Except with respect to the common financial reporting form under
(d) Use of clearinghouses
Nothing in this section shall restrict the ability of participating institutions and lenders from using a clearinghouse or servicer to comply with the standards for the exchange of information established under this section.
(e) Data security
Any entity that maintains or transmits information under a transaction covered by this section shall maintain reasonable and appropriate administrative, technical, and physical safeguards—
(1) to ensure the integrity and confidentiality of the information; and
(2) to protect against any reasonably anticipated security threats, or unauthorized uses or disclosures of the information.
(f) Definitions
(1) Clearinghouse
The term "clearinghouse" means a public or private entity that processes or facilitates the processing of nonstandard data elements into data elements conforming to standards adopted under this section.
(2) Standard setting organization
The term "standard setting organization" means an organization that—
(A) is accredited by the American National Standards Institute;
(B) develops standards for information transactions, data elements, or any other standard that is necessary to, or will facilitate, the implementation of this section; and
(C) is open to the participation of the various entities engaged in the delivery of Federal student financial assistance.
(3) Voluntary consensus standard
The term "voluntary consensus standard" means a standard developed or used by a standard setting organization described in paragraph (2).
(
Editorial Notes
Prior Provisions
Prior sections 1018b to 1018f were omitted in the general amendment of this subchapter by
Section 1018b,
Section 1018c,
Section 1018d,
Section 1018e,
Section 1018f,
Part E—Lender and Institution Requirements Relating to Education Loans
§1019. Definitions
In this part:
(1) Agent
The term "agent" means an officer or employee of a covered institution or an institution-affiliated organization.
(2) Covered institution
The term "covered institution" means any institution of higher education, as such term is defined in
(3) Education loan
The term "education loan" (except when used as part of the term "private education loan") means—
(A) any loan made, insured, or guaranteed under part B of subchapter IV;
(B) any loan made under part D of subchapter IV; or
(C) a private education loan.
(4) Eligible lender
The term "eligible lender" has the meaning given such term in
(5) Institution-affiliated organization
The term "institution-affiliated organization"—
(A) means any organization that—
(i) is directly or indirectly related to a covered institution; and
(ii) is engaged in the practice of recommending, promoting, or endorsing education loans for students attending such covered institution or the families of such students;
(B) may include an alumni organization, athletic organization, foundation, or social, academic, or professional organization, of a covered institution; and
(C) notwithstanding subparagraphs (A) and (B), does not include any lender with respect to any education loan secured, made, or extended by such lender.
(6) Lender
The term "lender" (except when used as part of the terms "eligible lender" and "private educational lender")—
(A) means—
(i) in the case of a loan made, insured, or guaranteed under part B of subchapter IV, an eligible lender;
(ii) in the case of any loan issued or provided to a student under part D of subchapter IV, the Secretary; and
(iii) in the case of a private education loan, a private educational lender as defined in
(B) includes any other person engaged in the business of securing, making, or extending education loans on behalf of the lender.
(7) Officer
The term "officer" includes a director or trustee of a covered institution or institution-affiliated organization, if such individual is treated as an employee of such covered institution or institution-affiliated organization, respectively.
(8) Preferred lender arrangement
The term "preferred lender arrangement"—
(A) means an arrangement or agreement between a lender and a covered institution or an institution-affiliated organization of such covered institution—
(i) under which a lender provides or otherwise issues education loans to the students attending such covered institution or the families of such students; and
(ii) that relates to such covered institution or such institution-affiliated organization recommending, promoting, or endorsing the education loan products of the lender; and
(B) does not include—
(i) arrangements or agreements with respect to loans under part D of subchapter IV; or
(ii) arrangements or agreements with respect to loans that originate through the auction pilot program under
(9) Private education loan
The term "private education loan" has the meaning given the term in
(
Editorial Notes
Prior Provisions
A prior section 1019,
§1019a. Responsibilities of covered institutions, institution-affiliated organizations, and lenders
(a) Responsibilities of covered institutions and institution-affiliated organizations
(1) Disclosures by covered institutions and institution-affiliated organizations
(A) Preferred lender arrangement disclosures
In addition to the disclosures required by subsections (a)(27) and (h) of
(i) on such covered institution's or institution-affiliated organization's website and in all informational materials described in subparagraph (C) that describe or discuss education loans—
(I) the maximum amount of Federal grant and loan aid under subchapter IV available to students, in an easy to understand format;
(II) the information required to be disclosed pursuant to
(III) a statement that such institution is required to process the documents required to obtain a loan under part B of subchapter IV from any eligible lender the student selects; and
(ii) on such covered institution's or institution-affiliated organization's website and in all informational materials described in subparagraph (C) that describe or discuss private education loans—
(I) in the case of a covered institution, the information that the Board of Governors of the Federal Reserve System requires to be disclosed under
(II) in the case of an institution-affiliated organization of a covered institution, the information the Board of Governors of the Federal Reserve System requires to be disclosed under
(B) Private education loan disclosures
A covered institution, or an institution-affiliated organization of such covered institution, that provides information regarding a private education loan from a lender to a prospective borrower shall—
(i) provide the prospective borrower with the information the Board of Governors of the Federal Reserve System requires to be disclosed under
(ii) inform the prospective borrower that—
(I) the prospective borrower may qualify for loans or other assistance under subchapter IV; and
(II) the terms and conditions of loans made, insured, or guaranteed under subchapter IV may be more favorable than the provisions of private education loans; and
(iii) ensure that information regarding private education loans is presented in such a manner as to be distinct from information regarding loans that are made, insured, or guaranteed under subchapter IV.
(C) Informational materials
The informational materials described in this subparagraph are publications, mailings, or electronic messages or materials that—
(i) are distributed to prospective or current students of a covered institution and families of such students; and
(ii) describe or discuss the financial aid opportunities available to students at an institution of higher education.
(2) Use of institution name
A covered institution, or an institution-affiliated organization of such covered institution, that enters into a preferred lender arrangement with a lender regarding private education loans shall not agree to the lender's use of the name, emblem, mascot, or logo of such institution or organization, or other words, pictures, or symbols readily identified with such institution or organization, in the marketing of private education loans to students attending such institution in any way that implies that the loan is offered or made by such institution or organization instead of the lender.
(3) Use of lender name
A covered institution, or an institution-affiliated organization of such covered institution, that enters into a preferred lender arrangement with a lender regarding private education loans shall ensure that the name of the lender is displayed in all information and documentation related to such loans.
(b) Lender responsibilities
(1) Disclosures by lenders
(A) Disclosures to borrowers
(i) Federal education loans
For each education loan that is made, insured, or guaranteed under part B or D of subchapter IV (other than a loan made under
(ii) Private education loans
For each of a lender's private education loans, the lender shall comply with the disclosure requirements under
(B) Disclosures to the Secretary
(i) In general
Each lender of a loan made, insured, or guaranteed under part B of subchapter IV shall, on an annual basis, report to the Secretary—
(I) any reasonable expenses paid or provided under
(aa) is employed in the financial aid office of a covered institution; or
(bb) otherwise has responsibilities with respect to education loans or other financial aid of the institution; and
(II) any similar expenses paid or provided to any agent of an institution-affiliated organization who is involved in the practice of recommending, promoting, or endorsing education loans.
(ii) Contents of reports
Each report described in clause (i) shall include—
(I) the amount for each specific instance in which the lender provided such expenses;
(II) the name of any agent described in clause (i) to whom the expenses were paid or provided;
(III) the dates of the activity for which the expenses were paid or provided; and
(IV) a brief description of the activity for which the expenses were paid or provided.
(iii) Report to Congress
The Secretary shall summarize the information received from the lenders under this subparagraph in a report and transmit such report annually to the authorizing committees.
(2) Certification by lenders
Not later than 18 months after August 14, 2008—
(A) in addition to any other disclosure required under Federal law, each lender of a loan made, insured, or guaranteed under part B of subchapter IV that participates in one or more preferred lender arrangements shall annually certify the lender's compliance with the requirements of this chapter; and
(B) if an audit of a lender is required pursuant to
(
§1019b. Loan information to be disclosed and model disclosure form for covered institutions, institution-affiliated organizations, and lenders participating in preferred lender arrangements
(a) Duties of the Secretary
(1) Determination of minimum disclosures
(A) In general
Not later than 18 months after August 14, 2008, the Secretary, in coordination with the Board of Governors of the Federal Reserve System, shall determine the minimum information that lenders, covered institutions, and institution-affiliated organizations of such covered institutions participating in preferred lender arrangements shall make available regarding education loans described in
(B) Consultation and content of minimum disclosures
In carrying out subparagraph (A), the Secretary shall—
(i) consult with students, the families of such students, representatives of covered institutions (including financial aid administrators, admission officers, and business officers), representatives of institution-affiliated organizations, secondary school guidance counselors, lenders, loan servicers, and guaranty agencies;
(ii) include, in the minimum information under subparagraph (A) that is required to be made available, the information that the Board of Governors of the Federal Reserve System requires to be disclosed under
(iii) consider the merits of requiring each covered institution, and each institution-affiliated organization of such covered institution, with a preferred lender arrangement to provide to prospective borrowers and the families of such borrowers the following information for each type of education loan offered pursuant to such preferred lender arrangement:
(I) The interest rate and terms and conditions of the loan for the next award year, including loan forgiveness and deferment.
(II) Information on any charges, such as origination and Federal default fees, that are payable on the loan, and whether those charges will be—
(aa) collected by the lender at or prior to the disbursal of the loan, including whether the charges will be deducted from the proceeds of the loan or paid separately by the borrower; or
(bb) paid in whole or in part by the lender.
(III) The annual and aggregate maximum amounts that may be borrowed.
(IV) The average amount borrowed from the lender by students who graduated from such institution in the preceding year with certificates, undergraduate degrees, graduate degrees, and professional degrees, as applicable, and who obtained loans of such type from the lender for the preceding year.
(V) The amount the borrower may pay in interest, based on a standard repayment plan and the average amount borrowed from the lender by students who graduated from such institution in the preceding year and who obtained loans of such type from the lender for the preceding year, for—
(aa) borrowers of loans made under
(bb) borrowers of loans made under
(cc) borrowers of loans made under
(VI) The consequences for the borrower of defaulting on a loan, including limitations on the discharge of an education loan in bankruptcy.
(VII) Contact information for the lender.
(VIII) Other information suggested by the persons and entities with whom the Secretary has consulted under clause (i).
(2) Required disclosures
After making the determinations under paragraph (1), the Secretary, in coordination with the Board of Governors of the Federal Reserve System and after consultation with the public, shall—
(A)(i) provide that the information determined under paragraph (1) shall be disclosed by covered institutions, and institution-affiliated organizations of such covered institutions, with preferred lender arrangements to prospective borrowers and the families of such borrowers regarding the education loans described in
(ii) make clear that such covered institutions and institution-affiliated organizations may provide the required information on a form designed by the institution or organization instead of the model disclosure form described in subparagraph (B);
(B) develop a model disclosure form that may be used by covered institutions, institution-affiliated organizations, and preferred lenders that includes all of the information required under subparagraph (A)(i) in a format that—
(i) is easily usable by students, families, institutions, institution-affiliated organizations, lenders, loan servicers, and guaranty agencies; and
(ii) is similar in format to the form developed by the Board of Governors of the Federal Reserve System under paragraphs (1) and (5)(A) of section 1638(e) 1 of title 15, in order to permit students and the families of students to easily compare private education loans and education loans described in
(C) update such model disclosure form periodically, as necessary.
(b) Duties of lenders
Each lender that has a preferred lender arrangement with a covered institution, or an institution-affiliated organization of such covered institution, with respect to education loans described in
(c) Duties of covered institutions and institution-affiliated organizations
(1) Providing information to students and families
(A) In general
Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement shall provide the following information to students attending such institution, or the families of such students, as applicable:
(i) The information the Secretary requires pursuant to subsection (a)(2)(A)(i), for each type of education loan described in
(ii)(I) In the case of a covered institution, the information that the Board of Governors of the Federal Reserve System requires to be disclosed under
(II) In the case of an institution-affiliated organization, the information the Board of Governors of the Federal Reserve System requires to be disclosed under
(B) Timely provision of information
The information described in subparagraph (A) shall be provided in a manner that allows for the students or the families to take such information into account before selecting a lender or applying for an education loan.
(2) Annual report
Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement, shall—
(A) prepare and submit to the Secretary an annual report, by a date determined by the Secretary, that includes, for each lender that has a preferred lender arrangement with such covered institution or organization—
(i) the information described in clauses (i) and (ii) of paragraph (1)(A); and
(ii) a detailed explanation of why such covered institution or institution-affiliated organization entered into a preferred lender arrangement with the lender, including why the terms, conditions, and provisions of each type of education loan provided pursuant to the preferred lender arrangement are beneficial for students attending such institution, or the families of such students, as applicable; and
(B) ensure that the report required under subparagraph (A) is made available to the public and provided to students attending or planning to attend such covered institution and the families of such students.
(3) Code of conduct
(A) In general
Each covered institution, and each institution-affiliated organization of such covered institution, that has a preferred lender arrangement, shall comply with the code of conduct requirements of subparagraphs (A) through (C) of
(B) Applicable code of conduct
For purposes of subparagraph (A), an institution-affiliated organization of a covered institution shall—
(i) comply with the code of conduct developed and published by such covered institution under subparagraphs (A) and (B) of
(ii) if such institution-affiliated organization has a website, publish such code of conduct prominently on the website; and
(iii) administer and enforce such code of conduct by, at a minimum, requiring that all of such organization's agents with responsibilities with respect to education loans be annually informed of the provisions of such code of conduct.
(
Editorial Notes
References in Text
Amendments
2009—Subsec. (a)(1)(B)(iii)(V).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
1 See References in Text note below.
§1019c. Loan information to be disclosed and model disclosure form for institutions participating in the William D. Ford Federal Direct Loan Program
(a) Provision of disclosures to institutions by the Secretary
Not later than 180 days after the development of the model disclosure form under
(b) Duties of institutions
(1) In general
Each institution of higher education participating in the William D. Ford Direct Loan Program under part D of subchapter IV shall—
(A) make the information the Secretary provides to the institution under subsection (a) available to students attending or planning to attend the institution, or the families of such students, as applicable; and
(B) if the institution provides information regarding a private education loan to a prospective borrower, concurrently provide such borrower with the information the Secretary provides to the institution under subsection (a).
(2) Choice of forms
In providing the information required under paragraph (1), an institution of higher education may use a comparable form designed by the institution instead of the model disclosure form developed under
(
§1019d. Self-certification form for private education loans
(a) In general
The Secretary, in consultation with the Board of Governors of the Federal Reserve System, shall develop the self-certification form for private education loans that shall be used to satisfy the requirements of
(1) be developed in a standardized format;
(2) be made available to the applicant by the relevant institution of higher education, in written or electronic form, upon request of the applicant;
(3) contain only disclosures that—
(A) the applicant may qualify for Federal student financial assistance through a program under subchapter IV of this chapter, or State or institutional student financial assistance, in place of, or in addition to, a private education loan;
(B) the applicant is encouraged to discuss the availability of Federal, State, and institutional student financial assistance with financial aid officials at the applicant's institution of higher education;
(C) a private education loan may affect the applicant's eligibility for free or low-cost Federal, State or institutional student financial assistance; and
(D) the information that the applicant is required to provide on the form is available from officials at the financial aid office of the institution of higher education;
(4) include a place to provide information on—
(A) the applicant's cost of attendance at the institution of higher education, as determined by the institution under part F of subchapter IV;
(B) the applicant's estimated financial assistance, including amounts of financial assistance used to replace the student aid index, as determined by the institution, in accordance with subchapter IV, for students who have completed the Free Application for Federal Student Aid; and
(C) the difference between the amounts under subparagraphs (A) and (B), as applicable; and
(5) include a place for the applicant's signature, in written or electronic form.
(b) Limit on liability
Nothing in this section shall be construed to create a private right of action against an institution of higher education with respect to the form developed under subsection (a).
(
Editorial Notes
Amendments
2020—Subsec. (a)(4)(B).
2009—Subsec. (a)(4).
"(A) the applicant's cost of attendance at the institution of higher education, as determined by the institution under Part F of subchapter IV;
"(B) the applicant's expected family contribution, as determined under Part F of subchapter IV, as applicable, for students who have completed the free application for Federal student aid;
"(C) the applicant's estimated financial assistance, as determined by the institution, in accordance with subchapter IV, as applicable;
"(D) the difference between the amounts under subparagraphs (A) and (C), as applicable; and
"(E) the sum of the amounts under subparagraphs (B) and (D), as applicable; and".
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by