S 1525 — Student Protection and Success Act

Summary

Student Protection and Success Act This bill establishes certain consequences for institutions of higher education (IHEs) that have low student loan repayment rates or high student loan balances among their students. The bill makes an IHE ineligible for federal student financial aid programs for two fiscal years if a certain percentage of its students are not able to start repaying the principal of their loans by specified deadlines. The Department of Education must award grants to IHEs that have a strong record of supporting low- and moderate-income students. The bill funds the grants by requiring IHEs with certain nonrepayment loan balances to make risk-sharing payments. Grants may be used to increase college access and success for the students using investments and practices such as awarding additional need-based financial aid, enhancing academic and student support services, and establishing or expanding accelerated learning opportunities. The bill also revises the types of student service expenditures and resources information collected by the National Center for Education Statistics.

Bill Text

• Introduced Introduced in Senate Current html May 16, 2019

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill establishes institutional ineligibility based on low cohort repayment rates and modifies related provisions in various sections of the Higher Education Act.

• 20 U.S.C. 1087e

  (r) Ineligibility Due to Low Cohort Repayment Rate.--

  Adds a new subsection defining conditions under which institutions can become ineligible based on low cohort repayment rates.

• 20 U.S.C. 1087e

  Beginning with fiscal year 2022 and each succeeding fiscal year, an institution that has a cohort repayment rate that is equal to or less than 15 percent shall not be eligible to participate in a program under this part for such fiscal year and for the 2 succeeding fiscal years.

  Institutions with a cohort repayment rate of 15% or less will lose eligibility for federal student aid programs.

• 20 U.S.C. 1070a(j)

  Based on Default Rates

  Updates the heading to remove references only to default rates and include cohort repayment rates.

• 20 U.S.C. 1070a(j)(1)

  the succeeding fiscal year → until fiscal year 2022

  Limits the applicability of the provision to fiscal years before 2022.

• 20 U.S.C. 1070a(j)(2)

  or cohort repayment rate determination

  Allows ineligibility due to low cohort repayment rates in addition to default rates.

• 20 U.S.C. 1085(a)(2)

  based on high default rates

  Updates the heading to reflect new criteria based on cohort repayment rates.

• 20 U.S.C. 1085(a)(2)(A)

  An institution → Until fiscal year 2022, an institution

  Specifies that the provision only applies until fiscal year 2022.

• 20 U.S.C. 1087bb(a)(1)

  or the institution is ineligible to participate in a program under part D due to a low cohort repayment rate, as determined under section 455(r)

  Adds criteria for ineligibility based on low cohort repayment rates for Federal Perkins Loans.

• 20 U.S.C. 1087bb(a)(2)(D)

  or the institution is ineligible to participate in a program under part D due to a low cohort repayment rate, as determined under section 455(r)

  Further incorporates low cohort repayment rates into ineligibility criteria for Perkins Loans.

• 20 U.S.C. 1087bb(b)(2)

  or the institution is ineligible to participate in a program under part D due to a low cohort repayment rate, as determined under section 455(r)

  Includes low cohort repayment rates as a criterion for ineligibility in other Perkins Loan provisions.

• 20 U.S.C. 1087bb(e)(2)

  until fiscal year 2022,

  Restricts the application of the provision to years before fiscal year 2022.

• 20 U.S.C. 1087bb(f)(2)

  until fiscal year 2022,

  Limits the applicability of provisions related to Perkins Loans to years prior to fiscal year 2022.

• 20 U.S.C. 1070a

  SEC. 401B. COLLEGE OPPORTUNITY BONUS PROGRAM.

  Creates a new program aimed at rewarding institutions with high cohort repayment rates.

• 20 U.S.C. 1070a

  the term `eligible institution of higher education' means an institution of higher education that has a cohort repayment rate (as defined in section 455(r)(3)) that is greater than 25 percent.

  Defines eligibility for the College Opportunity Bonus Program based on cohort repayment rates.

Action History

1. May 16, 2019

   Introduced in Senate

2. May 16, 2019

   Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sponsors

• Jeanne Shaheen · Primary

Subjects