S 5072 — Student Protection and Success Act

As used in this part: (a) Eligible institution (1) In general Except as provided in paragraph (2), the term “eligible institution” means an institution of higher education, as defined in section 1002 of this title, except that, for the purposes of sections 1077(a)(2)(C)(i) and 1078(b)(1)(M)(i) of this title, an eligible institution includes any institution that is within this definition without regard to whether such institution is participating in any program under this subchapter and includes any institution ineligible for participation in any program under this part pursuant to paragraph (2) of this subsection. (2) Ineligibility based on high default rates (A) An institution whose cohort default rate is equal to or greater than the threshold percentage specified in subparagraph (B) for each of the three most recent fiscal years for which data are available shall not be eligible to participate in a program under this part for the fiscal year for which the determination is made and for the two succeeding fiscal years, unless, within 30 days of receiving notification from the Secretary of the loss of eligibility under this paragraph, the institution appeals the loss of its eligibility to the Secretary. The Secretary shall issue a decision on any such appeal within 45 days after its submission. Such decision may permit the institution to continue to participate in a program under this part if— (i) the institution demonstrates to the satisfaction of the Secretary that the Secretary’s calculation of its cohort default rate is not accurate, and that recalculation would reduce its cohort default rate for any of the three fiscal years below the threshold percentage specified in subparagraph (B); (ii) there are exceptional mitigating circumstances within the meaning of paragraph (5); or (iii) there are, in the judgment of the Secretary, other exceptional mitigating circumstances that would make the application of this paragraph inequitable. During such appeal, the Secretary may permit the institution to continue to participate in a program under this part. If an institution continues to participate in a program under this part, and the institution’s appeal of the loss of eligibility is unsuccessful, the institution shall be required to pay to the Secretary an amount equal to the amount of interest, special allowance, reinsurance, and any related payments made by the Secretary (or which the Secretary is obligated to make) with respect to loans made under this part to students attending, or planning to attend, that institution during the pendency of such appeal. (B) For purposes of determinations under subparagraph (A), the threshold percentage is— (i) 35 percent for fiscal year 1991 and 1992; (ii) 30 percent for fiscal year 1993; (iii) 25 percent for fiscal year 1994 through fiscal year 2011; and (iv) 30 percent for fiscal year 2012 and any succeeding fiscal year. (C) Until July 1, 1999, this paragraph shall not apply to any institution that is— (i) a part B institution within the meaning of section 1061(2) of this title; (ii) a tribally controlled college or university, as defined in section 1801(a)(4) of title 25; or (iii) a Navajo Community College under the Navajo Community College Act. (D) Notwithstanding the first sentence of subparagraph (A), the Secretary shall restore the eligibility to participate in a program under subpart 1 of part A, part B, or part E of an institution that did not appeal its loss of eligibility within 30 days of receiving notification if the Secretary determines, on a case-by-case basis, that the institution’s failure to appeal was substantially justified under the circumstances, and that— (i) the institution made a timely request that the appropriate guaranty agency correct errors in the draft data used to calculate the institution’s cohort default rate; (ii) the guaranty agency did not correct the erroneous data in a timely fashion; and (iii) the institution would have been eligible if the erroneous...

(a) Allocation based on previous allocation (1) From the amount appropriated pursuant to section 1087aa(b) 1 of this title for each fiscal year, the Secretary shall first allocate to each eligible institution an amount equal to— (A) 100 percent of the amount received under subsections (a) and (b) of this section for fiscal year 1999 (as such subsections were in effect with respect to allocations for such fiscal year), multiplied by (B) the institution’s default penalty, as determined under subsection (e), except that if the institution has a cohort default rate in excess of the applicable maximum cohort default rate under subsection (f), the institution may not receive an allocation under this paragraph. (2) (A) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after fiscal year 1999 but is not a first or second time participant, an amount equal to the greater of— (i) $5,000; or (ii) 100 percent of the amount received and expended under this part for the first year it participated in the program. (B) From the amount so appropriated, the Secretary shall next allocate to each eligible institution that began participation in the program under this part after fiscal year 1999 and is a first or second time participant, an amount equal to the greatest of— (i) $5,000; (ii) an amount equal to (I) 90 percent of the amount received and used under this part in the second preceding fiscal year by eligible institutions offering comparable programs of instruction, divided by (II) the number of students enrolled at such comparable institutions in such fiscal year, multiplied by (III) the number of students enrolled at the applicant institution in such fiscal year; or (iii) 90 percent of the institution’s allocation under this part for the preceding fiscal year. (C) Notwithstanding subparagraphs (A) and (B) of this paragraph, the Secretary shall allocate to each eligible institution which— (i) was a first-time participant in the program in fiscal year 2000 or any subsequent fiscal year, and (ii) received a larger amount under this subsection in the second year of participation, an amount equal to 90 percent of the amount it received under this subsection in its second year of participation. (D) For any fiscal year after a fiscal year in which an institution receives an allocation under subparagraph (A), (B), or (C), the Secretary shall allocate to such institution an amount equal to the product of— (i) the amount determined under subparagraph (A), (B), or (C), multiplied by (ii) the institution’s default penalty, as determined under subsection (e), except that if the institution has a cohort default rate in excess of the applicable maximum cohort default rate under subsection (f), the institution may not receive an allocation under this paragraph. (3) (A) If the amount appropriated for any fiscal year is less than the amount required to be allocated to all institutions under paragraph (1) of this subsection, then the amount of the allocation to each such institution shall be ratably reduced. (B) If the amount appropriated for any fiscal year is more than the amount required to be allocated to all institutions under paragraph (1) but less than the amount required to be allocated to all institutions under paragraph (2), then— (i) the Secretary shall allot the amount required to be allocated to all institutions under paragraph (1), and (ii) the amount of the allocation to each institution under paragraph (2) shall be ratably reduced. (C) If additional amounts are appropriated for any such fiscal year, such reduced amounts shall be increased on the same basis as they were reduced (until the amount allocated equals the amount required to be allocated under paragraphs (1) and (2) of this subsection). (b) Allocation of excess based on share of excess eligible amounts (1) From the remainder of the amount appropriated pursuant to section 1087aa(b) ...

(a) Participation agreements An agreement with any institution of higher education for participation in the direct student loan program under this part shall— (1) provide for the establishment and maintenance of a direct student loan program at the institution under which the institution will— (A) identify eligible students who seek student financial assistance at such institution in accordance with section 1091 of this title; (B) estimate the need of each such student as required by part F of this subchapter for an academic year, except that, any loan obtained by a student under this part with the same terms as loans made under section 1078–8 of this title (except as otherwise provided in this part), or a loan obtained by a parent under this part with the same terms as loans made under section 1078–2 of this title (except as otherwise provided in this part), or obtained under any State-sponsored or private loan program, may be used to offset the student aid index of the student for that year; (C) provide a statement that certifies the eligibility of any student to receive a loan under this part that is not in excess of the annual or aggregate limit applicable to such loan, except that the institution may, in exceptional circumstances identified by the Secretary, refuse to certify a statement that permits a student to receive a loan under this part, or certify a loan amount that is less than the student’s determination of need (as determined under part F of this subchapter), if the reason for such action is documented and provided in written form to such student; (D) set forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 1078–7 of this title; and (E) provide timely and accurate information— (i) concerning the status of student borrowers (and students on whose behalf parents borrow under this part) while such students are in attendance at the institution and concerning any new information of which the institution becomes aware for such students (or their parents) after such borrowers leave the institution, to the Secretary for the servicing and collecting of loans made under this part; and (ii) if the institution does not have an agreement with the Secretary under subsection (b), concerning student eligibility and need, as determined under subparagraphs (A) and (B), to the Secretary as needed for the alternative origination of loans to eligible students and parents in accordance with this part; (2) provide assurances that the institution will comply with requirements established by the Secretary relating to student loan information with respect to loans made under this part; (3) provide that the institution accepts responsibility and financial liability stemming from its failure to perform its functions pursuant to the agreement; (4) provide for the implementation of a quality assurance system, as established by the Secretary and developed in consultation with institutions of higher education, to ensure that the institution is complying with program requirements and meeting program objectives; (5) provide that the institution will not charge any fees of any kind, however described, to student or parent borrowers for origination activities or the provision of any information necessary for a student or parent to receive a loan under this part, or any benefits associated with such loan; (6) provide assurances that, beginning July 1, 2026, the institution will comply with all requirements of subsection (c); and (7) include such other provisions as the Secretary determines are necessary to protect the interests of the United States and to promote the purposes of this part. (b) Origination An agreement with any institution of higher education, or consortia thereof, for the origination of loans under this part shall— (1) supplement the agreement entered into in accordance with subsection (a); (2) include provisions established by the Secretary that are similar ...

(a) In general (1) Parallel terms, conditions, benefits, and amounts Unless otherwise specified in this part, loans made to borrowers under this part shall have the same terms, conditions, and benefits, and be available in the same amounts, as loans made to borrowers, and first disbursed on June 30, 2010, under sections 1078, 1078–2, 1078–3, and 1078–8 of this title. (2) Designation of loans Loans made to borrowers under this part that, except as otherwise specified in this part, have the same terms, conditions, and benefits as loans made to borrowers under— (A) section 1078 of this title shall be known as “Federal Direct Stafford Loans”; (B) section 1078–2 of this title shall be known as “Federal Direct PLUS Loans”; (C) section 1078–3 of this title shall be known as “Federal Direct Consolidation Loans”; and (D) section 1078–8 of this title shall be known as “Federal Direct Unsubsidized Stafford Loans”. (3) Termination of authority to make interest subsidized loans and Federal Direct PLUS loans to graduate and professional students (A) Termination of authority to make interest subsidized loans to graduate and professional students Subject to subparagraph (B), and notwithstanding any provision of this part or part B— (i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and (ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 1088(a)(2) of this title) or its equivalent shall be the maximum annual amount for such student determined under section 1078–8 of this title, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph. (B) Exception Subparagraph (A) shall not apply to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title. (C) Termination of authority to make Federal Direct PLUS loans to graduate and professional students Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part. (4) Graduate and professional annual and aggregate limits for Federal Direct Unsubsidized Stafford loans beginning July 1, 2026 (A) Annual limits beginning July 1, 2026 Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans— (i) a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500; and (ii) a professional student may borrow in any academic year or its equivalent shall be $50,000. (B) Aggregate limits Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that— (i) a graduate student— (I) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000; or (II) who is (or has been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be an amount equal to— (aa) $200,000; minus (bb) the amount such student borrowed for programs of study described in subparagraph (C)(ii); and (ii) a professional student— (I) who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000; or (II) who is (or has been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be an amount equal to— (aa) $200,000...

(a) General duties The Statistics Center shall collect, report, analyze, and disseminate statistical data related to education in the United States and in other nations, including— (1) collecting, acquiring, compiling (where appropriate, on a State-by-State basis), and disseminating full and complete statistics (disaggregated by the population characteristics described in paragraph (3)) on the condition and progress of education, at the preschool, elementary, secondary, postsecondary, and adult levels in the United States, including data on— (A) State and local education reform activities; (B) State and local early childhood school readiness activities; (C) student achievement in, at a minimum, the core academic areas of reading, mathematics, and science at all levels of education; (D) secondary school completions, dropouts, and adult literacy and reading skills; (E) access to, and opportunity for, postsecondary education, including data on financial aid to postsecondary students; (F) teaching, including— (i) data on in-service professional development, including a comparison of courses taken in the core academic areas of reading, mathematics, and science with courses in noncore academic areas, including technology courses; and (ii) the percentage of teachers who meet the applicable State certification and licensure requirements, including any requirements for certification obtained through alternative routes to certification, or, with regard to special education teachers, the qualifications described in section 1412(a)(14)(C) of this title.1 in each State and, where feasible, in each local educational agency and school; (G) instruction, the conditions of the education workplace, and the supply of, and demand for, teachers; (H) the incidence, frequency, seriousness, and nature of violence affecting students, school personnel, and other individuals participating in school activities, as well as other indices of school safety, including information regarding— (i) the relationship between victims and perpetrators; (ii) demographic characteristics of the victims and perpetrators; and (iii) the type of weapons used in incidents, as classified in the Uniform Crime Reports of the Federal Bureau of Investigation; (I) the financing and management of education, including data on revenues and expenditures; (J) the social and economic status of children, including their academic achievement; (K) the existence and use of educational technology and access to the Internet by students and teachers in elementary schools and secondary schools; (L) access to, and opportunity for, early childhood education; (M) the availability of, and access to, before-school and after-school programs (including such programs during school recesses); (N) student participation in and completion of secondary and postsecondary vocational and technical education programs by specific program area; and (O) the existence and use of school libraries; (2) conducting and publishing reports on the meaning and significance of the statistics described in paragraph (1); (3) collecting, analyzing, cross-tabulating, and reporting, to the extent feasible, information by gender, race, ethnicity, socioeconomic status, limited English proficiency, mobility, disability, urban, rural, suburban districts, and other population characteristics, when such disaggregated information will facilitate educational and policy decisionmaking; (4) assisting public and private educational agencies, organizations, and institutions in improving and automating statistical and data collection activities, which may include assisting State educational agencies and local educational agencies with the disaggregation of data and with the development of longitudinal student data systems; (5) determining voluntary standards and guidelines to assist State educational agencies in developing statewide longitudinal data systems that link individual student data consistent with the requirements of the Elementa...