Part G—General Provisions Relating to Student Assistance Programs
Editorial Notes
Codification
Part G of title IV of the Higher Education Act of 1965, comprising this part, was originally enacted by
Part G of title IV of the Higher Education Act of 1965,
Prior Provisions
A prior part G, consisting of part H of title IV of
§1088. Definitions
(a) Academic and award year
(1) For the purpose of any program under this subchapter, the term "award year" shall be defined as the period beginning July 1 and ending June 30 of the following year.
(2)(A) For the purpose of any program under this subchapter, the term "academic year" shall—
(i) require a minimum of 30 weeks of instructional time for a course of study that measures its program length in credit hours; or
(ii) require a minimum of 26 weeks of instructional time for a course of study that measures its program length in clock hours; and
(iii) require an undergraduate course of study to contain an amount of instructional time whereby a full-time student is expected to complete at least—
(I) 24 semester or trimester hours or 36 quarter credit hours in a course of study that measures its program length in credit hours; or
(II) 900 clock hours in a course of study that measures its program length in clock hours.
(B) The Secretary may reduce such minimum of 30 weeks to not less than 26 weeks for good cause, as determined by the Secretary on a case-by-case basis, in the case of an institution of higher education that provides a 2-year or 4-year program of instruction for which the institution awards an associate or baccalaureate degree and that measures program length in credit hours or clock hours.
(b) Eligible program
(1) For purposes of this subchapter, the term "eligible program" means a program of at least—
(A) 600 clock hours of instruction, 16 semester hours, or 24 quarter hours, offered during a minimum of 15 weeks, in the case of a program that—
(i) provides a program of training to prepare students for gainful employment in a recognized profession; and
(ii) admits students who have not completed the equivalent of an associate degree; or
(B) 300 clock hours of instruction, 8 semester hours, or 12 hours, offered during a minimum of 10 weeks, in the case of—
(i) an undergraduate program that requires the equivalent of an associate degree for admissions; or
(ii) a graduate or professional program.
(2)(A) A program is an eligible program for purposes of part B of this subchapter if it is a program of at least 300 clock hours of instruction, but less than 600 clock hours of instruction, offered during a minimum of 10 weeks, that—
(i) has a verified completion rate of at least 70 percent, as determined in accordance with the regulations of the Secretary;
(ii) has a verified placement rate of at least 70 percent, as determined in accordance with the regulations of the Secretary; and
(iii) satisfies such further criteria as the Secretary may prescribe by regulation.
(B) In the case of a program being determined eligible for the first time under this paragraph, such determination shall be made by the Secretary before such program is considered to have satisfied the requirements of this paragraph.
(3) An otherwise eligible program that is offered in whole or in part through telecommunications is eligible for the purposes of this subchapter if the program is offered by an institution, other than a foreign institution, that has been evaluated and determined (before or after February 8, 2006) to have the capability to effectively deliver distance education programs by an accrediting agency or association that—
(A) is recognized by the Secretary under subpart 2 of part H; and
(B) has evaluation of distance education programs within the scope of its recognition, as described in
(4) For purposes of this subchapter, the term "eligible program" includes an instructional program that, in lieu of credit hours or clock hours as the measure of student learning, utilizes direct assessment of student learning, or recognizes the direct assessment of student learning by others, if such assessment is consistent with the accreditation of the institution or program utilizing the results of the assessment. In the case of a program being determined eligible for the first time under this paragraph, such determination shall be made by the Secretary before such program is considered to be an eligible program.
(c) Third party servicer
For purposes of this subchapter, the term "third party servicer" means any individual, any State, or any private, for-profit or nonprofit organization, which enters into a contract with—
(1) any eligible institution of higher education to administer, through either manual or automated processing, any aspect of such institution's student assistance programs under this subchapter; or
(2) any guaranty agency, or any eligible lender, to administer, through either manual or automated processing, any aspect of such guaranty agency's or lender's student loan programs under part B of this subchapter, including originating, guaranteeing, monitoring, processing, servicing, or collecting loans.
(d) Definitions for military deferments
For purposes of parts B, D, and E of this subchapter:
(1) Active duty
The term "active duty" has the meaning given such term in
(2) Military operation
The term "military operation" means a contingency operation as such term is defined in
(3) National emergency
The term "national emergency" means the national emergency by reason of certain terrorist attacks declared by the President on September 14, 2001, or subsequent national emergencies declared by the President by reason of terrorist attacks.
(4) Serving on active duty
The term "serving on active duty during a war or other military operation or national emergency" means service by an individual who is—
(A) a Reserve of an Armed Force ordered to active duty under
(B) any other member of an Armed Force on active duty in connection with such emergency or subsequent actions or conditions who has been assigned to a duty station at a location other than the location at which such member is normally assigned.
(5) Qualifying National Guard duty
The term "qualifying National Guard duty during a war or other military operation or national emergency" means service as a member of the National Guard on full-time National Guard duty (as defined in
(e) Consumer reporting agency
For purposes of this subchapter, the term "consumer reporting agency" has the meaning given the term "consumer reporting agency that compiles and maintains files on consumers on a nationwide basis" in Section 1 1681a(p) of title 15.
(f) Definition of educational service agency
For purposes of parts B, D, and E, the term "educational service agency" has the meaning given the term in
(
Editorial Notes
Prior Provisions
A prior section 1088,
Another prior section 1088,
Amendments
2015—Subsec. (f).
2009—Subsec. (c).
2008—Subsec. (a)(2)(B).
Subsecs. (e), (f).
2006—Subsec. (a)(2).
Subsec. (b)(3), (4).
Subsec. (d).
1998—
Subsec. (a)(4).
1993—Subsec. (a)(3)(B).
Subsec. (a)(3)(D).
Subsec. (a)(4)(A).
Subsec. (d)(2).
Subsec. (e)(2).
Subsec. (f).
1992—
Subsec. (a).
Subsec. (b).
Subsec. (b)(1).
Subsec. (b)(4).
Subsec. (b)(5), (6).
Subsec. (c)(1).
Subsec. (d).
Subsec. (e).
Subsec. (f).
1991—Subsec. (b).
Subsec. (c).
1990—Subsec. (b).
1989—Subsec. (a)(1).
Subsec. (a)(3).
Subsec. (e).
1987—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2015 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2006 Amendment
Amendment by
Amendment by section 8007(d) of
Effective Date of 1998 Amendments
Amendment by
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
"(1) as otherwise provided in such part G;
"(2) the changes in section 481(a) [
"(3) section 481(e) as added by such amendments, relating to the definition of eligible program, shall be effective on and after July 1, 1993;
"(4) section 484(m)(1) [
"(5) the changes in section 485 [
"(6) the changes in section 488 [
"(7) the changes in section 489 [
Effective Date of 1991 Amendment
Amendment by
Effective Date of 1990 Amendment
Section 3005(c) of
Effective Date of 1987 Amendment
Amendment by
Construction of 2006 Amendment
Nothing in amendment by section 8007(d) of
Construction of 1991 Amendment
Need-Based Aid
1 So in original. Probably should not be capitalized.
§1088a. Clock and credit hour treatment of diploma nursing schools
Notwithstanding any other provision of this chapter, any regulations promulgated by the Secretary concerning the relationship between clock hours and semester, trimester, or quarter hours in calculating student grant, loan, or work assistance under this subchapter, shall not apply to a public or private nonprofit hospital-based school of nursing that awards a diploma at the completion of the school's program of education.
(
Editorial Notes
Prior Provisions
Prior sections 1088a to 1088g were omitted in the general amendment of this part by
Section 1088a,
Section 1088b,
Section 1088b–1,
Section 1088b–2,
Section 1088b–3,
Section 1088c,
Section 1088d,
Section 1088e,
Section 1088f,
Section 1088f–1,
Section 1088g,
Statutory Notes and Related Subsidiaries
Effective Date
§1089. Master calendar
(a) Secretary required to comply with schedule
To assure adequate notification and timely delivery of student aid funds under this subchapter, the Secretary shall adhere to the following calendar dates in the year preceding the award year:
(1) Development and distribution of Federal and multiple data entry forms—
(A) by February 1: first meeting of the technical committee on forms design of the Department;
(B) by March 1: proposed modifications, updates, and notices pursuant to
(C) by June 1: final modifications, updates, and notices pursuant to
(D) by August 15: application for Federal student assistance and multiple data entry data elements and instructions approved;
(E) by August 30: final approved forms delivered to servicers and printers;
(F) by October 1: Federal and multiple data entry forms and instructions printed; and
(G) by November 1: Federal and multiple data entry forms, instructions, and training materials distributed.
(2) Allocations of campus-based and Pell Grant funds—
(A) by August 1: distribution of institutional application for campus-based funds (FISAP) to institutions;
(B) by October 1: final date for submission of FISAP by institutions to the Department;
(C) by November 15: edited FISAP and computer printout received by institutions;
(D) by December 1: appeals procedures received by institutions;
(E) by December 15: edits returned by institutions to the Department;
(F) by February 1: tentative award levels received by institutions and final Pell Grant payment schedule;
(G) by February 15: closing date for receipt of institutional appeals by the Department;
(H) by March 1: appeals process completed;
(I) by April 1: final award notifications sent to institutions; and
(J) by June 1: Pell Grant authorization levels sent to institutions.
(3) The Secretary shall, to the extent practicable, notify eligible institutions, guaranty agencies, lenders, interested software providers, and, upon request, other interested parties, by December 1 prior to the start of an award year of minimal hardware and software requirements necessary to administer programs under this subchapter.
(4) The Secretary shall attempt to conduct training activities for financial aid administrators and others in an expeditious and timely manner prior to the start of an award year in order to ensure that all participants are informed of all administrative requirements.
(b) Timing for reallocations
With respect to any funds reallocated under
(c) Delay of effective date of late publications
(1) Except as provided in paragraph (2), any regulatory changes initiated by the Secretary affecting the programs under this subchapter that have not been published in final form by November 1 prior to the start of the award year shall not become effective until the beginning of the second award year after such November 1 date.
(2)(A) The Secretary may designate any regulatory provision that affects the programs under this subchapter and is published in final form after November 1 as one that an entity subject to the provision may, in the entity's discretion, choose to implement prior to the effective date described in paragraph (1). The Secretary may specify in the designation when, and under what conditions, an entity may implement the provision prior to that effective date. The Secretary shall publish any designation under this subparagraph in the Federal Register.
(B) If an entity chooses to implement a regulatory provision prior to the effective date described in paragraph (1), as permitted by subparagraph (A), the provision shall be effective with respect to that entity in accordance with the terms of the Secretary's designation.
(d) Notice to Congress
The Secretary shall notify the authorizing committees when a deadline included in the calendar described in subsection (a) is not met. Nothing in this section shall be interpreted to penalize institutions or deny them the specified times allotted to enable them to return information to the Secretary based on the failure of the Secretary to adhere to the dates specified in this section.
(e) Compliance calendar
Prior to the beginning of each award year, the Secretary shall provide to institutions of higher education a list of all the reports and disclosures required under this chapter. The list shall include—
(1) the date each report or disclosure is required to be completed and to be submitted, made available, or disseminated;
(2) the required recipients of each report or disclosure;
(3) any required method for transmittal or dissemination of each report or disclosure;
(4) a description of the content of each report or disclosure sufficient to allow the institution to identify the appropriate individuals to be assigned the responsibility for such report or disclosure;
(5) references to the statutory authority, applicable regulations, and current guidance issued by the Secretary regarding each report or disclosure; and
(6) any other information which is pertinent to the content or distribution of the report or disclosure.
(
Editorial Notes
Prior Provisions
A prior section 1089,
Another prior section 1089,
Amendments
2009—Subsec. (b).
2008—Subsec. (a)(1)(B), (C).
"(B) by March 1: proposed modifications and updates pursuant to
"(C) by June 1: final modifications and updates pursuant to
Subsec. (d).
Subsec. (e).
1998—Subsec. (a)(3), (4).
Subsec. (c).
1995—Subsec. (d).
1993—Subsec. (c).
1992—Subsec. (a)(1)(B), (C).
Subsec. (b).
Subsec. (c).
1987—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2008 Amendment
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Inapplicability of Master Calendar and Negotiated Rulemaking Requirements
[
Establishment of Separate Systems of Need Analysis for Academic Years 1983–1984 Through 1987–1988
Determination of Independent Student Status for Academic Years 1982–1983 Through 1987–1988
§1090. Forms and regulations
(a) Common financial aid form development and processing
(1) In general
The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall produce, distribute, and process free of charge common financial reporting forms as described in this subsection to be used for application and reapplication to determine the need and eligibility of a student for financial assistance under parts A through E (other than under subpart 4 of part A). The forms shall be made available to applicants in both paper and electronic formats and shall be referred to as the "Free Application for Federal Student Aid" or the "FAFSA". The Secretary shall work to make the FAFSA consumer-friendly and to make questions on the FAFSA easy for students and families to read and understand, and shall ensure that the FAFSA is available in formats accessible to individuals with disabilities.
(2) Paper format
(A) In general
The Secretary shall develop, make available, and process—
(i) a paper version of EZ FAFSA, as described in subparagraph (B); and
(ii) a paper version of the other forms described in this subsection, in accordance with subparagraph (C), for any applicant who does not meet the requirements of or does not wish to use the process described in subparagraph (B).
(B) EZ FAFSA
(i) In general
The Secretary shall develop and use, after appropriate field testing, a simplified paper form, to be known as the EZ FAFSA, to be used for applicants meeting the requirements of subsection (b) or (c) of
(ii) Reduced data requirements
The EZ FAFSA shall permit an applicant to submit, for financial assistance purposes, only the data elements required to make a determination of whether the applicant meets the requirements under subsection (b) or (c) of
(iii) State data
The Secretary shall include on the EZ FAFSA such data items as may be necessary to award State financial assistance, as provided under paragraph (5), except that the Secretary shall not include a State's data if that State does not permit the State's resident applicants to use the EZ FAFSA for State assistance.
(iv) Free availability and processing
The provisions of paragraph (6) shall apply to the EZ FAFSA, and the data collected by means of the EZ FAFSA shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (10).
(C) Promoting the use of electronic FAFSA
(i) In general
The Secretary shall make all efforts to encourage all applicants to utilize the electronic version of the forms described in paragraph (3).
(ii) Maintenance of the FAFSA in a printable electronic file
The Secretary shall maintain a version of the paper forms described in subparagraphs (A) and (B) in a printable electronic file that is easily portable, accessible, and downloadable to students on the same website used to provide students with the electronic version of the forms described in paragraph (3).
(iii) Requests for printed copy
The Secretary shall provide a printed copy of the full paper version of FAFSA upon request.
(iv) Reporting requirement
The Secretary shall maintain data, and periodically report to Congress, on the impact of the digital divide on students completing applications for aid under this subchapter. The Secretary shall report on the steps taken to eliminate the digital divide and reduce production of the paper form described in subparagraph (A). The Secretary's report shall specifically address the impact of the digital divide on the following student populations:
(I) Independent students.
(II) Traditionally underrepresented students.
(III) Dependent students.
(3) Electronic format
(A) In general
The Secretary shall produce, distribute, and process forms in electronic format to meet the requirements of paragraph (1). The Secretary shall develop an electronic version of the forms for applicants who do not meet the requirements of subsection (b) or (c) of
(B) Simplified applications: FAFSA on the web
(i) In general
The Secretary shall develop and use a simplified electronic version of the form to be used by applicants meeting the requirements under subsection (b) or (c) of
(ii) Reduced data requirements
The simplified electronic version of the forms shall permit an applicant to submit, for financial assistance purposes, only the data elements required to make a determination of whether the applicant meets the requirements under subsection (b) or (c) of
(iii) Use of forms
Nothing in this subsection shall be construed to prohibit the use of the forms developed by the Secretary pursuant to this paragraph by an eligible institution, eligible lender, guaranty agency, State grant agency, private computer software provider, a consortium thereof, or such other entities as the Secretary may designate.
(C) State data
The Secretary shall include on the electronic version of the forms such items as may be necessary to determine eligibility for State financial assistance, as provided under paragraph (5), except that the Secretary shall not require an applicant to enter data pursuant to this subparagraph that are required by any State other than the applicant's State of residence.
(D) Availability and processing
The data collected by means of the simplified electronic version of the forms shall be available to institutions of higher education, guaranty agencies, and States in accordance with paragraph (10).
(E) Privacy
The Secretary shall ensure that data collection under this paragraph complies with
(F) Signature
Notwithstanding any other provision of this chapter, the Secretary may continue to permit an electronic version of the form under this paragraph to be submitted without a signature, if a signature is subsequently submitted by the applicant or if the applicant uses a personal identification number provided by the Secretary under subparagraph (G).
(G) Personal identification numbers authorized
The Secretary may continue to assign to an applicant a personal identification number—
(i) to enable the applicant to use such number as a signature for purposes of completing an electronic version of a form developed under this paragraph; and
(ii) for any purpose determined by the Secretary to enable the Secretary to carry out this subchapter.
(H) Personal identification number improvement
The Secretary shall continue to work with the Commissioner of Social Security to minimize the time required for an applicant to obtain a personal identification number when applying for aid under this subchapter through an electronic version of a form developed under this paragraph.
(4) Streamlining
(A) Streamlined reapplication process
(i) In general
The Secretary shall continue to streamline reapplication forms and processes for an applicant who applies for financial assistance under this subchapter in the next succeeding academic year subsequent to an academic year for which such applicant applied for financial assistance under this subchapter.
(ii) Updating of data elements
The Secretary shall determine, in cooperation with States, institutions of higher education, agencies, and organizations involved in student financial assistance, the data elements that may be transferred from the previous academic year's application and those data elements that shall be updated.
(iii) Reduced data authorized
Nothing in this subchapter shall be construed as limiting the authority of the Secretary to reduce the number of data elements required of reapplicants.
(iv) Zero family contribution
Applicants determined to have a zero family contribution pursuant to
(B) Reduction of data elements
(i) Reduction encouraged
Of the number of data elements on the FAFSA used for the 2009–2010 award year, the Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance and consistent with efforts under subsection (c), shall continue to reduce the number of such data elements required to be entered by all applicants, with the goal of reducing such number by 50 percent.
(ii) Report
The Secretary shall submit a report on the process of this reduction to each of the authorizing committees by June 30, 2011.
(5) State requirements
(A) In general
Except as provided in paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii), the Secretary shall include on the forms developed under this subsection, such State-specific data items as the Secretary determines are necessary to meet State requirements for need-based State aid. Such items shall be selected in consultation with State agencies in order to assist in the awarding of State financial assistance in accordance with the terms of this subsection. The number of such data items shall not be less than the number included on the form for the 2008–2009 award year unless a State notifies the Secretary that the State no longer requires those data items for the distribution of State need-based aid.
(B) Annual review
The Secretary shall conduct an annual review to determine—
(i) which data items each State requires to award need-based State aid; and
(ii) if the State will permit an applicant to file a form described in paragraph (2)(B) or (3)(B).
(C) Federal Register notice
Beginning with the forms developed under paragraphs (2)(B) and (3)(B) for the award year 2010–2011, the Secretary shall publish on an annual basis a notice in the Federal Register requiring State agencies to inform the Secretary—
(i) if the State agency is unable to permit applicants to utilize the simplified forms described in paragraphs (2)(B) and (3)(B); and
(ii) of the State-specific nonfinancial data that the State agency requires for delivery of State need-based financial aid.
(D) Use of simplified forms encouraged
The Secretary shall encourage States to take such steps as are necessary to encourage the use of simplified forms under this subsection, including those forms described in paragraphs (2)(B) and (3)(B), for applicants who meet the requirements of subsection (b) or (c) of
(E) Consequences if State does not accept simplified forms
If a State does not permit an applicant to file a form described in paragraph (2)(B) or (3)(B) for purposes of determining eligibility for State need-based financial aid, the Secretary may determine that State-specific questions for such State will not be included on a form described in paragraph (2)(B) or (3)(B). If the Secretary makes such determination, the Secretary shall advise the State of the Secretary's determination.
(F) Lack of State response to request for information
If a State does not respond to the Secretary's request for information under subparagraph (B), the Secretary shall—
(i) permit residents of that State to complete simplified forms under paragraphs (2)(B) and (3)(B); and
(ii) not require any resident of such State to complete any data items previously required by that State under this section.
(G) Restriction
The Secretary shall, to the extent practicable, not require applicants to complete any financial or nonfinancial data items that are not required—
(i) by the applicant's State; or
(ii) by the Secretary.
(6) Charges to students and parents for use of forms prohibited
The need and eligibility of a student for financial assistance under parts A through E (other than under subpart 4 of part A) may be determined only by using a form developed by the Secretary under this subsection. Such forms shall be produced, distributed, and processed by the Secretary, and no parent or student shall be charged a fee by the Secretary, a contractor, a third-party servicer or private software provider, or any other public or private entity for the collection, processing, or delivery of financial aid through the use of such forms. No data collected on a form for which a fee is charged shall be used to complete the form prescribed under this section, except that a Federal or State income tax form prepared by a paid income tax preparer or preparer service for the primary purpose of filing a Federal or State income tax return may be used to complete the form prescribed under this section.
(7) Restrictions on use of PIN
No person, commercial entity, or other entity may request, obtain, or utilize an applicant's personal identification number assigned under paragraph (3)(G) for purposes of submitting a form developed under this subsection on an applicant's behalf.
(8) Application processing cycle
The Secretary shall enable students to submit forms developed under this subsection and initiate the processing of such forms under this subsection, as early as practicable prior to January 1 of the student's planned year of enrollment.
(9) Early estimates
The Secretary shall continue to—
(A) permit applicants to enter data in such forms as described in this subsection in the years prior to enrollment in order to obtain a non-binding estimate of the applicant's family contribution (as defined in
(B) permit applicants to update information submitted on forms described in this subsection, without needing to re-enter previously submitted information;
(C) develop a means to inform applicants, in the years prior to enrollment, of student aid options for individuals in similar financial situations;
(D) develop a means to provide a clear and conspicuous notice that the applicant's expected family contribution is subject to change and may not reflect the final expected family contribution used to determine Federal student financial aid award amounts under this subchapter; and
(E) consult with representatives of States, institutions of higher education, and other individuals with experience or expertise in student financial assistance application processes in making updates to forms used to provide early estimates under this paragraph.
(10) Distribution of data
Institutions of higher education, guaranty agencies, and States shall receive, without charge, the data collected by the Secretary using a form developed under this subsection for the purposes of processing loan applications and determining need and eligibility for institutional and State financial aid awards. Entities designated by institutions of higher education, guaranty agencies, or States to receive such data shall be subject to all the requirements of this section, unless such requirements are waived by the Secretary.
(11) Third party servicers and private software providers
To the extent practicable and in a timely manner, the Secretary shall provide, to private organizations and consortia that develop software used by institutions of higher education for the administration of funds under this subchapter, all the necessary specifications that the organizations and consortia must meet for the software the organizations and consortia develop, produce, and distribute (including any diskette, modem, or network communications) to be so used. The specifications shall contain record layouts for required data. The Secretary shall develop in advance of each processing cycle an annual schedule for providing such specifications. The Secretary, to the extent practicable, shall use multiple means of providing such specifications, including conferences and other meetings, outreach, and technical support mechanisms (such as training and printed reference materials). The Secretary shall, from time to time, solicit from such organizations and consortia means of improving the support provided by the Secretary.
(12) Parent's social security number and birth date
The Secretary is authorized to include space on the forms developed under this subsection for the social security number and birth date of parents of dependent students seeking financial assistance under this subchapter.
(b) Information to committees of Congress
Copies of all rules, regulations, guidelines, instructions, and application forms published or promulgated pursuant to this subchapter shall be provided to the authorizing committees at least 45 days prior to their effective date.
(c) Toll-free information
The Secretary shall contract for, or establish, and publicize a toll-free telephone service to provide timely and accurate information to the general public. The information provided shall include specific instructions on completing the application form for assistance under this subchapter. Such service shall also include a service accessible by telecommunications devices for the deaf (TDD's) and shall, in addition to the services provided for in the previous sentence, refer such students to the national clearinghouse on postsecondary education or other appropriate provider of technical assistance and information on postsecondary educational services for individuals with disabilities, including the National Technical Assistance Center under
(d) Assistance in preparation of financial aid application
(1) Preparation authorized
Notwithstanding any provision of this chapter, an applicant may use a preparer for consultative or preparation services for the completion of a form developed under subsection (a) if the preparer satisfies the requirements of this subsection.
(2) Preparer identification required
If an applicant uses a preparer for consultative or preparation services for the completion of a form developed under subsection (a), and for which a fee is charged, the preparer shall—
(A) include, at the time the form is submitted to the Department, the name, address or employer's address, social security number or employer identification number, and organizational affiliation of the preparer on the applicant's form; and
(B) be subject to the same penalties as an applicant for purposely giving false or misleading information in the application.
(3) Additional requirements
A preparer that provides consultative or preparation services pursuant to this subsection shall—
(A) clearly inform each individual upon initial contact, including contact through the Internet or by telephone, that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary;
(B) include in any advertising clear and conspicuous information that the FAFSA and EZ FAFSA are free forms that may be completed without professional assistance via paper or electronic version of the forms that are provided by the Secretary;
(C) if advertising or providing any information on a website, or if providing services through a website, include on the website a link to the website that provides the electronic version of the forms developed under subsection (a); and
(D) not produce, use, or disseminate any other form for the purpose of applying for Federal student financial aid other than the form developed by the Secretary under subsection (a).
(4) Special rule
Nothing in this chapter shall be construed to limit preparers of the forms required under this subchapter that meet the requirements of this subsection from collecting source information from a student or parent, including Internal Revenue Service tax forms, in providing consultative and preparation services in completing the forms.
(e) Early application and estimated award demonstration program
(1) Purpose and objectives
The purpose of the demonstration program under this subsection is to measure the benefits, in terms of student aspirations and plans to attend an institution of higher education, and any adverse effects, in terms of program costs, integrity, distribution, and delivery of aid under this subchapter, of implementing an early application system for all dependent students that allows dependent students to apply for financial aid using information from two years prior to the year of enrollment. Additional objectives associated with implementation of the demonstration program are the following:
(A) To measure the feasibility of enabling dependent students to apply for Federal, State, and institutional financial aid in their junior year of secondary school, using information from two years prior to the year of enrollment, by completing any of the forms under this subsection.
(B) To identify whether receiving final financial aid award estimates not later than the fall of the senior year of secondary school provides students with additional time to compete for the limited resources available for State and institutional financial aid and positively impacts the college aspirations and plans of these students.
(C) To measure the impact of using income information from the years prior to enrollment on—
(i) eligibility for financial aid under this subchapter and for other State and institutional aid; and
(ii) the cost of financial aid programs under this subchapter.
(D) To effectively evaluate the benefits and adverse effects of the demonstration program on program costs, integrity, distribution, and delivery of financial aid.
(2) Program authorized
Not later than two years after August 14, 2008, the Secretary shall implement an early application demonstration program enabling dependent students who wish to participate in the program—
(A) to complete an application under this subsection during the academic year that is two years prior to the year such students plan to enroll in an institution of higher education; and
(B) based on the application described in subparagraph (A), to obtain, not later than one year prior to the year of the students' planned enrollment, information on eligibility for Federal Pell Grants, Federal student loans under this subchapter, and State and institutional financial aid for the student's first year of enrollment in the institution of higher education.
(3) Early application and estimated award
For all dependent students selected for participation in the demonstration program who submit a completed FAFSA, or, as appropriate, an EZ FAFSA, two years prior to the year such students plan to enroll in an institution of higher education, the Secretary shall, not later than one year prior to the year of such planned enrollment—
(A) provide each student who completes an early application with an estimated determination of such student's—
(i) expected family contribution for the first year of the student's enrollment in an institution of higher education; and
(ii) Federal Pell Grant award for the first such year, based on the Federal Pell Grant amount, determined under
(B) remind the students of the need to update the students' information during the calendar year of enrollment using the expedited reapplication process provided for in subsection (a)(4)(A).
(4) Participants
The Secretary shall include as participants in the demonstration program—
(A) States selected through the application process described in paragraph (5);
(B) institutions of higher education within the selected States that are interested in participating in the demonstration program, and that can make estimates or commitments of institutional student financial aid, as appropriate, to students the year before the students' planned enrollment date; and
(C) secondary schools within the selected States that are interested in participating in the demonstration program, and that can commit resources to—
(i) advertising the availability of the program;
(ii) identifying students who might be interested in participating in the program;
(iii) encouraging such students to apply; and
(iv) participating in the evaluation of the program.
(5) Applications
Each State that is interested in participating in the demonstration program shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary shall require. The application shall include—
(A) information on the amount of the State's need-based student financial assistance available, and the eligibility criteria for receiving such assistance;
(B) a commitment to make, not later than the year before the dependent students participating in the demonstration program plan to enroll in an institution of higher education, an estimate of the award of State financial aid to such dependent students;
(C) a plan for recruiting institutions of higher education and secondary schools with different demographic characteristics to participate in the program;
(D) a plan for selecting institutions of higher education and secondary schools to participate in the program that—
(i) demonstrate a commitment to encouraging students to submit a FAFSA, or, as appropriate, an EZ FAFSA, two years before the students' planned date of enrollment in an institution of higher education;
(ii) serve different populations of students;
(iii) in the case of institutions of higher education—
(I) to the extent possible, are of varying types and sectors; and
(II) commit to making, not later than the year prior to the year that dependent students participating in the demonstration program plan to enroll in the institution—
(aa) estimated institutional awards to participating dependent students; and
(bb) estimated grants or other financial aid available under this subchapter (including supplemental grants under subpart 3 of part A of this subchapter), for all participating dependent students, along with information on State awards, as provided to the institution by the State;
(E) a commitment to participate in the evaluation conducted by the Secretary; and
(F) such other information as the Secretary may require.
(6) Special provisions
(A) Discretion of student financial aid administrators
A financial aid administrator at an institution of higher education participating in a demonstration program under this subsection may use the discretion provided under
(B) Waivers
The Secretary is authorized to waive, for an institution of higher education participating in the demonstration program, any requirements under this subchapter, or regulations prescribed under this subchapter, that will make the demonstration program unworkable, except that the Secretary shall not waive any provisions with respect to the maximum award amounts for grants and loans under this subchapter.
(7) Outreach
The Secretary shall make appropriate efforts to notify States of the demonstration program under this subsection. Upon determination of participating States, the Secretary shall continue to make efforts to notify institutions of higher education and dependent students within participating States of the opportunity to participate in the demonstration program and of the participation requirements.
(8) Evaluation
The Secretary shall conduct a rigorous evaluation of the demonstration program to measure the program's benefits and adverse effects, as the benefits and effects relate to the purpose and objectives of the program described in paragraph (1). In conducting the evaluation, the Secretary shall—
(A) determine whether receiving financial aid estimates one year prior to the year in which the student plans to enroll in an institution of higher education, has a positive impact on the higher education aspirations and plans of such student;
(B) measure the extent to which using a student's income information from the year that is two years prior to the student's planned enrollment date had an impact on the ability of States and institutions of higher education to make financial aid awards and commitments;
(C) determine what operational changes are required to implement the program on a larger scale;
(D) identify any changes to Federal law that are necessary to implement the program on a permanent basis;
(E) identify the benefits and adverse effects of providing early estimates on program costs, program operations, program integrity, award amounts, distribution, and delivery of aid; and
(F) examine the extent to which estimated awards differ from actual awards made to students participating in the program.
(9) Consultation
The Secretary shall consult, as appropriate, with the Advisory Committee on Student Financial Assistance established under
(f) Reduction of income and asset information to determine eligibility for student financial aid
(1) Continuation of current FAFSA simplification efforts
The Secretary shall continue to examine—
(A) how the Internal Revenue Service can provide to the Secretary income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available;
(B) whether data provided by the Internal Revenue Service can be used to—
(i) prepopulate the electronic version of the FAFSA with student and parent taxpayer data; or
(ii) generate an expected family contribution without additional action on the part of the student and taxpayer; and
(C) whether the data elements collected on the FAFSA that are needed to determine eligibility for student aid, or to administer the Federal student financial aid programs under this subchapter, but are not needed to compute an expected family contribution, such as information regarding the student's citizenship or permanent residency status, registration for selective service, or driver's license number, can be reduced without adverse effects.
(2) Report on FAFSA simplification efforts to date
Not later than 90 days after August 14, 2008, the Secretary shall provide a written report to the authorizing committees on the work the Department has done with the Secretary of the Treasury regarding—
(A) how the expected family contribution of a student can be calculated using substantially less income and asset information than was used on March 31, 2008;
(B) the extent to which the reduced income and asset information will result in a redistribution of Federal grants and subsidized loans under this subchapter, State aid, or institutional aid, or in a change in the composition of the group of recipients of such aid, and the amount of such redistribution;
(C) how the alternative approaches for calculating the expected family contribution will—
(i) rely mainly, in the case of students and parents who file income tax returns, on information available on the 1040, 1040EZ, and 1040A; and
(ii) include formulas for adjusting income or asset information to produce similar results to the existing approach with less data;
(D) how the Internal Revenue Service can provide to the Secretary of Education income and other data needed to compute an expected family contribution for taxpayers and dependents of taxpayers, and when in the application cycle the data can be made available;
(E) whether data provided by the Internal Revenue Service can be used to—
(i) prepopulate the electronic version of the FAFSA with student and parent taxpayer data; or
(ii) generate an expected family contribution without additional action on the part of the student and taxpayer;
(F) the extent to which the use of income data from two years prior to a student's planned enrollment date will change the expected family contribution computed in accordance with part F, and potential adjustments to the need analysis formula that will minimize the change; and
(G) the extent to which the data elements collected on the FAFSA on March 31, 2008, that are needed to determine eligibility for student aid or to administer the Federal student financial aid programs, but are not needed to compute an expected family contribution, such as information regarding the student's citizenship or permanent residency status, registration for selective service, or driver's license number, can be reduced without adverse effects.
(3) Study
(A) Formation of study group
Not later than 90 days after August 14, 2008, the Comptroller General shall convene a study group the membership of which shall include the Secretary of Education, the Secretary of the Treasury, the Director of the Office of Management and Budget, the Director of the Congressional Budget Office, representatives of institutions of higher education with expertise in Federal and State financial aid assistance, State chief executive officers of higher education with a demonstrated commitment to simplifying the FAFSA, and such other individuals as the Comptroller General and the Secretary of Education may designate.
(B) Study required
The Comptroller General, in consultation with the study group convened under subparagraph (A) shall—
(i) review and build on the work of the Secretary of Education and the Secretary of the Treasury, and individuals with expertise in analysis of financial need, to assess alternative approaches for calculating the expected family contribution under the statutory need analysis formula in effect on the day before August 14, 2008, and under a new calculation that will use substantially less income and asset information than was used for the 2008–2009 FAFSA;
(ii) conduct an additional analysis if necessary; and
(iii) make recommendations to the authorizing committees.
(C) Objectives of study
The objectives of the study required under subparagraph (B) are—
(i) to determine methods to shorten the FAFSA and make the FAFSA easier and less time-consuming to complete, thereby increasing higher education access for low-income students;
(ii) to identify changes to the statutory need analysis formula that will be necessary to reduce the amount of financial information students and families need to provide to receive a determination of eligibility for student financial aid without causing significant redistribution of Federal grants and subsidized loans under this subchapter; and
(iii) to review State and institutional needs and uses for data collected on the FAFSA, and to determine the best means of addressing such needs in the case of modification of the FAFSA as described in clause (i), or modification of the need analysis formula as described in clause (ii).
(D) Required subjects of study
The study required under subparagraph (B) shall examine—
(i) with respect to simplification of the financial aid application process using the statutory requirements for need analysis—
(I) additional steps that can be taken to simplify the financial aid application process for students who (or, in the case of dependent students, whose parents) are not required to file a Federal income tax return for the prior taxable year;
(II) information on State use of information provided on the FAFSA, including—
(aa) whether a State uses, as of the time of the study, or can use, a student's expected family contribution based on data from two years prior to the student's planned enrollment date;
(bb) the extent to which States and institutions will accept the data provided by the Internal Revenue Service to prepopulate the electronic version of the FAFSA to determine the distribution of State and institutional student financial aid funds;
(cc) what data are used by States, as of the time of the study, to determine eligibility for State student financial aid, and whether the data are used for merit- or need-based aid;
(dd) whether State data are required by State law, State regulations, or policy directives; and
(ee) the extent to which any State-specific information requirements can be met by completion of a State application linked to the electronic version of the FAFSA; and
(III) information on institutional needs, including the extent to which institutions of higher education are already using supplemental forms to collect additional data from students and their families to determine eligibility for institutional funds; and
(ii) ways to reduce the amount of financial information students and families need to provide to receive a determination of eligibility for student financial aid, taking into account—
(I) the amount of redistribution of Federal grants and subsidized loans under this subchapter caused by such a reduction, and the benefits to be gained by having an application process that will be easier for students and their families;
(II) students and families who do not file income tax returns;
(III) the extent to which the full array of income and asset information collected on the FAFSA, as of the time of the study, plays an important role in the awarding of need-based State financial aid, and whether the State can use an expected family contribution generated by the FAFSA, instead of income and asset information or a calculation with reduced data elements, to support determinations of eligibility for such State aid programs and, if not, what additional information will be needed or what changes to the FAFSA will be required; and
(IV) information on institutional needs, including the extent to which institutions of higher education are already using supplemental forms to collect additional data from students and their families to determine eligibility for institutional funds; and
(V) changes to this chapter or other laws that will be required to implement a modified need analysis system.
(4) Consultation
The Secretary shall consult with the Advisory Committee on Student Financial Assistance established under
(5) Reports
(A) Reports on study
The Secretary shall prepare and submit to the authorizing committees—
(i) not later than one year after August 14, 2008, an interim report on the progress of the study required under paragraph (3) that includes any preliminary recommendations by the study group established under such paragraph; and
(ii) not later than two years after August 14, 2008, a final report on the results of the study required under paragraph (3) that includes recommendations by the study group established under such paragraph.
(B) Reports on FAFSA simplification efforts
The Secretary shall report to the authorizing committees, from time to time, on the progress of the simplification efforts under this subsection.
(g) Addressing the digital divide
The Secretary shall utilize savings accrued by moving more applicants to the electronic version of the forms described in subsection (a)(3) to improve access to the electronic version of the forms described in such subsection for applicants meeting the requirements of subsection (b) or (c) of
(h) Adjustments
The Secretary shall disclose, on the form notifying a student of the student's expected family contribution, that the student may, on a case-by-case basis, qualify for an adjustment under
(1) the special circumstances under which a student or family member may qualify for such adjustment; and
(2) additional information regarding the steps a student or family member may take in order to seek an adjustment under
(
Amendment of Section
§1090. Free Application for Federal Student Aid
(a) Simplified application for Federal student financial aid
(1) In general
Each individual seeking to apply for Federal financial aid under this subchapter for award year 2024–2025 and any subsequent award year shall file a free application with the Secretary, known as the "Free Application for Federal Student Aid", to determine eligibility for such aid, as described in paragraph (2), and in accordance with
(2) Free application
(A) In general
The Secretary shall make available, for the purposes of paragraph (1), a free application to determine the eligibility of a student for Federal financial aid under this subchapter.
(B) Information required by the applicant
(i) In general
The applicant, and, if necessary, the parents or spouse of the applicant, shall provide the Secretary with the applicable information described in clause (ii) in order to be eligible for Federal financial aid under this subchapter.
(ii) Information to be provided
The information described in this clause is the following:
(I) Name.
(II) Contact information, including address, phone number, email address, or other electronic address.
(III) Social security number.
(IV) Date of birth.
(V) Marital status.
(VI) Citizenship status, including alien registration number, if applicable.
(VII) Sex.
(VIII) Race or ethnicity, using categories developed in consultation with the Bureau of the Census and the Director of the Institute of Education Sciences that, to the greatest extent practicable, separately capture the racial groups specified in the American Community Survey of the Bureau of the Census.
(IX) State of legal residence and date of residency.
(X) The following information on secondary school completion:
(aa) Name and location of the high school from which the applicant received, or will receive prior to the period of enrollment for which aid is sought, a regular high school diploma;
(bb) name and location of the entity from which the applicant received, or will receive prior to the period of enrollment for which aid is sought, a recognized equivalent of a regular high school diploma; or
(cc) if the applicant completed or will complete prior to the period of enrollment for which aid is sought, a secondary school education in a home school setting that is treated as a home school or private school under State law.
(XI) Name of each institution where the applicant intends to apply for enrollment or continue enrollment.
(XII) Year in school for period of enrollment for which aid is sought, including whether applicant will have finished first bachelor's degree prior to the period of enrollment for which aid is sought.
(XIII) Whether one or both of the applicant's parents attended college.
(XIV) Any required asset information, unless exempt under
(aa) the annual amount of child support received, if applicable; and
(bb) all required asset information not described in item (aa).
(XV) The number of members of the applicant's family who will also be enrolled in an eligible institution of higher education on at least a half-time basis during the same enrollment period as the applicant.
(XVI) If the applicant meets any of the following designations:
(aa) Is an unaccompanied homeless youth, or is unaccompanied, at risk of homelessness, and self-supporting.
(bb) Is an emancipated minor.
(cc) Is in legal guardianship.
(dd) Has been a dependent ward of the court at any time since the applicant turned 13.
(ee) Has been in foster care at any time since the applicant turned 13.
(ff) Both parents have died since the applicant turned 13.
(gg) Is a veteran of the Armed Forces of the United States or is serving (on the date of the application) on active duty in the Armed Forces for other than training purposes.
(hh) Is under the age of 24 and has a dependent child or relative.
(ii) Does not have access to parental information due to an unusual circumstance described in
(XVII) If the applicant receives or has received any of the following means-tested Federal benefits within the last two years:
(aa) The supplemental security income program under title XVI of the Social Security Act (
(bb) The supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (
(cc) The free and reduced price school lunch program established under the Richard B. Russell National School Lunch Act (
(dd) The program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (
(ee) The special supplemental nutrition program for women, infants, and children established by
(ff) The Medicaid program under title XIX of the Social Security Act (
(gg) Federal housing assistance programs, including tenant-based assistance under
(hh) Refundable credit for coverage under a qualified health plan under
(ii) The Earned Income Tax Credit under
(jj) Any other means-tested program determined by the Secretary to be appropriate.
(XVIII) If the applicant, or, if necessary, the parents or spouse of the applicant, reported receiving tax exempt payments from an individual retirement plan (as defined in
(XIX) If the applicant, or, if necessary, the parents or spouse of the applicant, reported receiving foreign income that is exempt from Federal taxation or for which a permanent resident of the United States or United States citizen receives a foreign tax credit, information regarding the amount of such foreign income.
(XX) If the applicant, or, if applicable, the parents or spouse of the applicant, elects to report receiving college grant and scholarship aid included in gross income on a Federal tax return described in
(iii) Prohibition against requesting information more than once
Any information requested during the process of creating an account for completing the free application under this subsection, shall, to the fullest extent possible, not be required a second time for the same award year, or in a duplicative manner, when completing such free application except in the case of an unusual situation, such as a temporary inability to access an account for completing such free application.
(iv) Change in family size
The Secretary shall provide a process by which an applicant shall confirm the accuracy of family size or update the family size with respect to such applicant for purposes of determining the need of such applicant for financial assistance under this subchapter based on a change in family size from the tax year data used for such determination.
(v) Single question for homeless status
The Secretary shall ensure that—
(I) on the form developed under this section for which the information is applicable, there is a single, easily understood screening question to identify an applicant who is an unaccompanied homeless youth or is unaccompanied, at risk of homelessness, and self-supporting; and
(II) such question is distinct from those relating to an individual who does not have access to parental income due to an unusual circumstance.
(vi) Adjustments
The Secretary shall disclose on the FAFSA that the student may, on a case-by-case basis, qualify for an adjustment under
(C) Notification and approval of request for tax return information
The Secretary shall notify students and borrowers who wish to submit an application for Federal student financial aid under this subchapter (as well as parents and spouses who must sign such an application or request or a Master Promissory Note on behalf of those students and borrowers) of the authority of the Secretary to require that such persons affirmatively approve that the Internal Revenue Service disclose their tax return information as described in
(D) Authorizations available to the applicant
(i) Authorization to disclose FAFSA information, including a redisclosure of tax return information, to institution, State higher education agency, and designated scholarship organizations
An applicant and, if necessary, the parents or spouse of the applicant shall provide the Secretary with authorization to disclose to an institution, State higher education agency, and scholarship organizations (designated (prior to December 19, 2019) by the Secretary under subsection (a)(3)(E)) as in effect on such date, as specified by the applicant and in accordance with
(I) Information described under
(II) All information provided by the applicant on the application described by this subsection to determine the applicant's eligibility for Federal financial aid under this subchapter and for the application, award, and administration of such Federal financial aid, except the name of an institution to which an applicant selects to redisclose information shall not be disclosed to any other institution.
(ii) Authorization to disclose to benefits programs
An applicant and, if necessary, the parents or spouse of the applicant may provide the Secretary with authorization to disclose to applicable agencies that handle applications for means-tested Federal benefit programs, as defined in
(E) Action by the Secretary
Upon receiving—
(i) an application under this section, the Secretary shall, as soon as practicable, perform the necessary functions with the Commissioner of Internal Revenue to calculate the applicant's student aid index and scheduled award for a Federal Pell Grant, if applicable, assuming full-time enrollment for an academic year, and note to the applicant the assumptions relationship to the scheduled award; and
(ii) an authorization under subparagraph (D), the Secretary shall, as soon as practicable, disclose the information described under such subparagraph, as specified by the applicant, in order for the applicant's eligibility for Federal, State, or institutional student financial aid programs or means-tested Federal benefit programs to be estimated or determined.
(F) Work study wages
With respect to an applicant who has received income earned from work under part C of this subchapter, the Secretary shall take the steps necessary to collect information on the amount of such income for the purposes of calculating such applicant's student aid index and scheduled award for a Federal Pell Grant, if applicable, without adding additional questions to the FAFSA, including by collecting such information from institutions of higher education participating in work-study programs under part C of this subchapter.
(3) Information to be supplied by the Secretary of Education
(A) In general
Upon receiving and timely processing a free application that contains the information described in paragraph (2), the Secretary shall provide to the applicant the following information based on full-time attendance for an academic year:
(i) The estimated dollar amount of a Federal Pell Grant scheduled award for which the applicant is eligible for such award year.
(ii) Information on other types of Federal financial aid for which the applicant may be eligible (including situations in which the applicant could qualify for 150 percent of a scheduled Federal Pell Grant award and loans made under this subchapter) and how the applicant can find additional information regarding such aid.
(iii) Consumer-tested information regarding each institution selected by the applicant in accordance with paragraph (2)(B)(ii)(XI), which may include the following:
(I) The following information, as collected through the Integrated Postsecondary Education Data System or a successor Federal data system as designated by the Secretary:
(aa) Net price by the income categories, as described under
(bb) Graduation rate.
(cc) Retention rate.
(dd) Transfer rate, if available.
(II) Median debt of students upon completion.
(III) Institutional default rate, as calculated under
(iv) If the student is eligible for a student aid index of less than or equal to zero under
(v) Information on education tax benefits described in paragraphs (1) and (2) of
(vi) If the individual identified as a veteran, or as serving (on the date of the application) on active duty in the Armed Forces for other than training purposes, information on benefits administered by the Department of Veteran Affairs or Department of Defense, respectively.
(vii) If applicable, the applicant's current outstanding balance of loans under this subchapter.
(B) Information provided to the State
(i) In general
The Secretary shall redisclose, with authorization from the applicant in accordance with paragraph (2)(D)(i), to a State higher education agency administering State-based financial aid and serving the applicant's State of residence, the information described under
(ii) Use of information
A State agency administering State-based financial aid—
(I) shall use the information provided under clause (i) solely for the application, award, and administration of State-based financial aid for which the applicant is eligible;
(II) may use the information, except for the information described under
(III) may use identifying information provided by student applicants on the FAFSA to determine whether or not a graduating secondary student has filed the application in coordination with local educational agencies or secondary schools to encourage students to complete the application; and
(IV) may share the application information, excluding the information described under
(iii) Limitation on consent process
A State may provide a consent process whereby an applicant may elect to share the information described in clause (i), except for the information described in
(iv) Prohibition
Any entity that receives applicant information under clause (iii) shall not sell, share, or otherwise use applicant information other than for the purposes outlined in clause (iii).
(C) Use of information provided to the institution
An institution—
(i) shall use the information provided to it solely for the application, award, and administration of financial aid to the applicant;
(ii) may use the information provided, excluding the information described under
(iii) shall not share such educational record information with any other entity without the explicit written consent of the applicant.
(D) Prohibition
Any entity that receives applicant information under subparagraph (C)(iii) shall not sell, share, or otherwise use applicant information other than for the purposes outlined in subparagraph (C).
(E) FAFSA information that includes tax return information
An applicant's FAFSA information that includes return or return information as described in
(4) Development of form and information exchange
Prior to the design of the free application under this subsection, the Secretary shall, to the maximum extent practicable, on an annual basis—
(A) consult with stakeholders to gather information about innovations and technology available to—
(i) ensure an efficient and effective process;
(ii) mitigate unintended consequences; and
(iii) determine the best practices for outreach to students and families during the transition to the streamlined process for the determination of Federal financial aid and Federal Pell Grant eligibility while reducing the data burden on applicants and families; and
(B) solicit public comments for the format of the free application that provides for adequate time to incorporate feedback prior to development of the application for the succeeding award year.
(5) No additional information requests permitted
In carrying out this subsection, the Secretary may not require additional information to be submitted by an applicant (or the parents or spouse of an applicant) for Federal financial aid through other requirements or reporting, except as required under a process or procedure exercised in accordance with the authority under
(6) State-run programs
(A) In general
The Secretary shall conduct outreach to States in order to research the benefits to students of States relying solely on the student aid index, scheduled Pell Grant Award, or the financial data made available, upon authorization by the applicant, as a result of an application for aid under this subsection for determining the eligibility of the applicant for State provided financial aid.
(B) Secretarial review
If a State determines that there is a need for additional data elements beyond those provided pursuant to this subsection for determining the eligibility of an applicant for State provided financial aid, the State shall forward a list of those additional data elements determined necessary, but not provided by virtue of the application under this subsection, to the Secretary. The Secretary shall make readily available to the public through the Department's websites and other means—
(i) a list of States that do not require additional financial information separate from the Free Application for Federal Student Aid and do not require asset information from students who qualify for the exemption from asset reporting under
(ii) a list of States that require asset information from students who qualify for the exemption from asset reporting under
(iii) a list of States that have indicated that they require additional financial information separate from the Free Application for Federal Student Aid for purposes of awarding State scholarships and grant aid; and
(iv) with the publication of the lists under this subparagraph, information about additional resources available to applicants, including links to such State websites.
(7) Institution-run financial aid
(A) In general
The Secretary shall conduct outreach to institutions of higher education to describe the benefits to students of relying solely on the student aid index, scheduled Pell Grant Award, or the financial data made available, upon authorization for release by the applicant, as a result of an application for aid under this subsection for determining the eligibility of the applicant for institutional financial aid. The Secretary shall make readily available to the public through its websites and other means—
(i) a list of institutions that do not require additional financial information separate from the Free Application for Federal Student Aid and do not require asset information from students who qualify for the exemption from asset reporting under
(ii) a list of institutions that require asset information from students who qualify for the exemption from asset reporting under
(iii) a list of institutions that require additional financial information separate from the Free Application for Federal Student Aid for the purpose of awarding institution-run financial aid; and
(iv) with the publication of the list in clause (iii), information about additional resources available to applicants.
(8) Security of data
The Secretary shall, in consultation with the Secretary of the Treasury—
(A) take all necessary steps to safeguard the data required to be transmitted for the purpose of this section between Federal agencies and to States and institutions of higher education and secure the transmittal of such data;
(B) provide guidance to States and institutions of higher education regarding their obligation to ensure the security of the data provided under this section and
(C) provide guidance on the implementation of
(9) Report to Congress
(A) In general
Not later than 1 year after December 27, 2020, the Secretary shall report to the authorizing committees on the progress of the Secretary in carrying out this subsection, including planning and stakeholder consultation. Such report shall include—
(i) benchmarks for implementation;
(ii) entities and organizations that the Secretary consulted;
(iii) system requirements for such implementation and how they will be addressed;
(iv) any areas of concern and potential problem issues uncovered that may hamper such implementation; and
(v) solutions determined to address such issues.
(B) Updates
The Secretary shall provide updates to the authorizing committees—
(i) as to the progress and planning described in subparagraph (A) prior to implementation of the revisions to the Free Application for Federal Student Aid under this subsection not less often than quarterly; and
(ii) at least 6 months and 1 year after implementation of the revisions to the Free Application for Federal Student Aid.
(b) Adjustments and improvements
(1) In general
The Secretary shall disclose in a consumer-tested format, upon completion of the Free Application for Federal Student Aid under this section, that the student may, on a case-by-case basis, qualify for an adjustment under
(A) examples of the special circumstances under which a student or family member may qualify for such adjustment or determination of independence; and
(B) additional information regarding the steps a student or family member may take in order to seek an adjustment under
(2) Consumer testing
(A) In general
Not later than 9 months after December 27, 2020, the Secretary shall begin consumer testing the design of the Free Application for Federal Student Aid under this section with prospective first-generation college students, representatives of students (including low-income students, English learners, first-generation college students, adult students, veterans, servicemembers, and prospective students), students' families (including low-income families, families with English learners, families with first-generation college students, and families with prospective students), institutions of higher education, secondary school and postsecondary counselors, and nonprofit consumer groups.
(B) Updates
For award year 2024–2025 and at least each fourth succeeding award year thereafter, the Secretary shall update the design of the Free Application for Federal Student Aid based on additional consumer testing with the populations described in subparagraph (A) in order to improve the usability and accessibility of the application.
(3) Accessibility of the FAFSA
The Secretary shall—
(A) in conjunction with the Bureau of the Census, determine the most common languages spoken by English learner students and their parents in the United States;
(B) develop and make publicly available versions of the Free Application for Federal Student Aid form in not fewer than 11 of the most common languages determined under subparagraph (A) and make such versions available and accessible to applicants in paper and electronic formats; and
(C) ensure that the Free Application for Federal Student Aid is available in formats accessible to individuals with disabilities and compliant with the most recent Web Content Accessibility Guidelines, or successor guidelines.
(4) Reapplication in a succeeding academic year
In order to streamline an applicant's experience in applying for financial aid, the Secretary shall allow an applicant who electronically applies for financial assistance under this subchapter for an academic year subsequent to an academic year for which such applicant applied for financial assistance under this subchapter to automatically electronically import all of the applicant's (including parents', guardians', or spouses', as applicable) identifying, demographic, and school data from the previous application and to update such information to reflect any circumstances that have changed.
(5) Technology accessibility
The Secretary shall make the application under this section available through prevalent technology. Such technology shall, at a minimum, enable applicants to—
(A) save data; and
(B) submit the application under this subchapter to the Secretary through such technology.
(6) Verification burden
The Secretary shall—
(A) to the maximum extent practicable, streamline and simplify the process of verification for applicants for Federal financial aid;
(B) in establishing policies and procedures to verify applicants' eligibility for Federal financial aid, consider—
(i) the burden placed on low-income applicants;
(ii) the risk to low-income applicants of failing to complete the application, enroll in college, or complete a postsecondary credential as a result of being selected for verification;
(iii) the effectiveness of the policies and procedures in preventing overpayments; and
(iv) the reasons for the source of any improper payments; and
(C) issue a public report not less often than annually that includes the number and percentage of applicants subject to verification, whether the applicants ultimately received Federal financial aid disbursements, the extent to which the student aid index changed for such applicants as a result of verification, and the extent to which such applicants' eligibility for Federal financial aid under this subchapter changed.
(7) Studies
The Secretary shall periodically conduct studies on—
(A) whether the Free Application for Federal Student Aid is a barrier to college enrollment by examining—
(i) the effect of States requiring additional information specified in clauses (ii) and (iii) of subsection (a)(6)(B) on the determination of State financial aid awards, including—
(I) how much financial aid awards would change if the additional information were not required; and
(II) the number of students who started but did not finish the Free Application for Federal Student Aid, compared to the baseline year of 2021; and
(ii) the number of students who—
(I) started a Free Application for Federal Student Aid but did not receive financial assistance under this subchapter for the applicable academic year; and
(II) if available, did not enroll in an institution of higher education in the applicable academic year;
(B) the most common barriers faced by applicants in completing the Free Application for Federal Student Aid; and
(C) the most common reasons that students and families do not fill out the Free Applications for Federal Student Aid.
(c) Data and information
(1) In general
The Secretary shall publish data in a publicly accessible manner—
(A) annually on the total number of Free Applications for Federal Student Aid submitted by application cycle, disaggregated by demographic characteristics, type of institution or institutions of higher education to which the applicant applied, the applicant's State of legal residence, and high school and public school district;
(B) quarterly on the total number of Free Applications for Federal Student Aid submitted by application cycle, disaggregated by type of institution or institutions of higher education to which the applicant applied, the applicant's State of legal residence, and high school and public school district;
(C) weekly on the total number of Free Applications for Federal Student Aid submitted, disaggregated by high school and public school district; and
(D) annually on the number of individuals who apply for federal financial aid pursuant to this section who indicated that they are—
(i) an unaccompanied homeless youth or unaccompanied, at risk of homelessness, and self-supporting; or
(ii) a foster care youth.
(2) Contents
The data described in paragraph (1)(D) with respect to homeless youth shall include, at a minimum, for each application cycle—
(A) the total number of all applicants who were determined to be individuals described in
(B) the number of applicants described in subparagraph (A), disaggregated—
(i) by State; and
(ii) by the sources of determination as described in
(3) Data sharing
The Secretary may enter into data sharing agreements with the appropriate Federal or State agencies to conduct outreach regarding, and connect applicants directly with, the means-tested Federal benefit programs described in subsection (a)(2)(B)(ii)(XVII) for which the applicants may be eligible.
(d) Ensuring form usability
(1) Signature
Notwithstanding any other provision of this subchapter, the Secretary may permit the Free Application for Federal Student Aid to be submitted without a signature, if a signature is subsequently submitted by the applicant, or if the applicant uses an access device provided by the Secretary.
(2) Free preparation authorized
Notwithstanding any other provision of this subchapter, an applicant may use a preparer for consultative or preparation services for the completion of the Free Application for Federal Student Aid without charging a fee to the applicant if the preparer—
(A) includes, at the time the application is submitted to the Department, the name, address or employer's address, social security number or employer identification number, and organizational affiliation of the preparer on the applicant's form;
(B) is subject to the same penalties as an applicant for purposely giving false or misleading information in the application;
(C) clearly informs each individual upon initial contact, that the Free Application for Federal Student Aid is a free form that may be completed without professional assistance; and
(D) does not produce, use, or disseminate any other form for the purpose of applying for Federal financial aid other than the Free Application for Federal Student Aid developed by the Secretary under this section.
(3) Charges to students and parents for use of forms prohibited
The need for and eligibility of a student for financial assistance under this subchapter may be determined only by using the Free Application for Federal Student Aid developed by the Secretary under this section. Such application shall be produced, distributed, and processed by the Secretary, and no parent or student shall be charged a fee by the Secretary, a contractor, a third-party servicer or private software provider, or any other public or private entity for the collection, processing, or delivery of Federal financial aid through the use of such application. No data collected on a form for which a fee is charged shall be used to complete the Free Application for Federal Student Aid prescribed under this section, except that a Federal or State income tax form prepared by a paid income tax preparer or preparer service for the primary purpose of filing a Federal or State income tax return may be used to complete the Free Application for Federal Student Aid prescribed under this section.
(4) Application processing cycle
The Secretary shall enable applicants to submit a Free Application for Federal Student Aid developed under this section and initiate the processing of such application, not later than January 1 of the applicant's planned year of enrollment, to the maximum extent practicable, on or around October 1 prior to the applicant's planned year of enrollment.
(5) Early estimates
The Secretary shall maintain an electronic method for applicants to enter income and family size information to calculate a non-binding estimate of the applicant's Federal financial aid available under this subchapter and shall place such calculator on a prominent location at the beginning of the Free Application for Federal Student Aid.
(6) Additional forms
Notwithstanding any other provision of this subchapter, an institution may not condition the packaging or receipt of Federal financial aid on the completion of additional requests for financial information beyond the Free Application for Federal Student Aid, unless such information is required for verification, a determination of independence, or professional judgement.
See 2020 and 2022 Amendment notes below.
Editorial Notes
Prior Provisions
A prior section 1090,
Amendments
2022—Subsecs. (a)(1), (b)(2)(B).
2020—
2010—Subsec. (e)(3)(A)(ii).
2009—Subsec. (a)(3)(C).
Subsec. (e)(8)(A).
2008—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsecs. (f) to (h).
1998—Subsec. (a).
Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(5) to (7).
Subsec. (b)(1).
Subsec. (c).
Subsec. (d).
Subsec. (f).
1993—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsecs. (d), (e).
Subsec. (f).
Subsec. (g).
1992—Subsec. (a).
Subsec. (b).
Subsec. (d).
Subsec. (e).
Subsecs. (f), (g).
1987—Subsec. (a)(1).
Subsec. (a)(2).
Subsecs. (b) to (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
Effective Date
Section effective Oct. 17, 1986, except as otherwise provided, see section 2 of
Subsec. (e) of this section applicable to student assistance awarded for periods of enrollment beginning on or after July 1, 1987, see section 407(b) of
Reports
[Effective date of title VII of div. FF of
Identification of Foster Youth on FAFSA
"(1) modify the Free Application for Federal Student Aid described in section 483 of the HEA [Higher Education Act of 1965,
"(2) utilize such identification as a tool to notify students who are foster youth or were in the foster care system of their potential eligibility for Federal student aid, including postsecondary education programs through the John H. Chafee Foster Care Independence Program and any other Federal programs under which such students may be eligible to receive assistance."
Similar provisions were contained in the following prior appropriation act:
Delayed Implementation of EZ FAFSA
"(1) In subsection (a) of such section—
"(A) subparagraphs (A)(i) and (B) of paragraph (2);
"(B) in paragraph (3)—
"(i) the second sentence of subparagraph (A);
"(ii) clauses (i) and (ii) of subparagraph (B); and
"(iii) subparagraph (C);
"(C) paragraph (4)(A)(iv); and
"(D) paragraph (5)(E).
"(2) Subsection (h) of such section."
§1091. Student eligibility
(a) In general
In order to receive any grant, loan, or work assistance under this subchapter, a student must—
(1) be enrolled or accepted for enrollment in a degree, certificate, or other program (including a program of study abroad approved for credit by the eligible institution at which such student is enrolled) leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of
(2) if the student is presently enrolled at an institution, be maintaining satisfactory progress in the course of study the student is pursuing in accordance with the provisions of subsection (c);(q)
(3) not owe a refund on grants previously received at any institution under this subchapter, or be in default on any loan from a student loan fund at any institution provided for in part E, or a loan made, insured, or guaranteed by the Secretary under this subchapter for attendance at any institution;
(4) file with the Secretary, as part of the original financial aid application process, a certification, which need not be notarized, but which shall include—
(A) a statement of educational purpose stating that the money attributable to such grant, loan, or loan guarantee will be used solely for expenses related to attendance or continued attendance at such institution; and
(B) such student's social security number;
(5) be a citizen or national of the United States, a permanent resident of the United States, or able to provide evidence from the Immigration and Naturalization Service that he or she is in the United States for other than a temporary purpose with the intention of becoming a citizen or permanent resident; and
(6) if the student has been convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining funds under this subchapter, have completed the repayment of such funds to the Secretary, or to the holder in the case of a loan under this subchapter obtained by fraud.
(b) Eligibility for student loans
(1) In order to be eligible to receive any loan under this subchapter (other than a loan under
(A)(i) have received a determination of eligibility or ineligibility for a Pell Grant under such subpart 1 for such period of enrollment; and (ii) if determined to be eligible, have filed an application for a Pell Grant for such enrollment period; or
(B) have (i) filed an application with the Pell Grant processor for such institution for such enrollment period, and (ii) received from the financial aid administrator of the institution a preliminary determination of the student's eligibility or ineligibility for a grant under such subpart 1.
(2) In order to be eligible to receive any loan under section 1078–1 1 of this title for any period of enrollment, a student shall—
(A) have received a determination of need for a loan under
(B) if determined to have need for a loan under
(C) has applied for a loan under
(3) A student who—
(A) is carrying at least one-half the normal full-time work load for the course of study that the student is pursuing, as determined by an eligible institution, and
(B) is enrolled in a course of study necessary for enrollment in a program leading to a degree or certificate,
shall be, notwithstanding paragraph (1) of subsection (a), eligible to apply for loans under part B or D of this subchapter. The eligibility described in this paragraph shall be restricted to one 12-month period.
(4) A student who—
(A) is carrying at least one-half the normal full-time work load for the course of study the student is pursuing, as determined by the institution, and
(B) is enrolled or accepted for enrollment in a program at an eligible institution necessary for a professional credential or certification from a State that is required for employment as a teacher in an elementary or secondary school in that State,
shall be, notwithstanding paragraph (1) of subsection (a), eligible to apply for loans under part B, D, or E or work-study assistance under part C of this subchapter.
(5) Notwithstanding any other provision of this subsection, no incarcerated student is eligible to receive a loan under this subchapter.
(c) Satisfactory progress
(1) For the purpose of subsection (a)(2), a student is maintaining satisfactory progress if—
(A) the institution at which the student is in attendance, reviews the progress of the student at the end of each academic year, or its equivalent, as determined by the institution, and
(B) the student has a cumulative C average, or its equivalent or academic standing consistent with the requirements for graduation, as determined by the institution, at the end of the second such academic year.
(2) Whenever a student fails to meet the eligibility requirements of subsection (a)(2) as a result of the application of this subsection and subsequent to that failure the student has academic standing consistent with the requirements for graduation, as determined by the institution, for any grading period, the student may, subject to this subsection, again be eligible under subsection (a)(2) for a grant, loan, or work assistance under this subchapter.
(3) Any institution of higher education at which the student is in attendance may waive the provisions of paragraph (1) or paragraph (2) of this subsection for undue hardship based on—
(A) the death of a relative of the student,
(B) the personal injury or illness of the student, or
(C) special circumstances as determined by the institution.
(d) Students who are not high school graduates
(1) Student eligibility
In order for a student who does not have a certificate of graduation from a school providing secondary education, or the recognized equivalent of such certificate, to be eligible for any assistance under subparts 1, 3, and 4 of part A and parts B, C, D, and E of this subchapter, the student shall meet the requirements of one of the following subparagraphs:
(A) The student is enrolled in an eligible career pathway program and meets one of the following standards:
(i) The student shall take an independently administered examination and shall achieve a score, specified by the Secretary, demonstrating that such student can benefit from the education or training being offered. Such examination shall be approved by the Secretary on the basis of compliance with such standards for development, administration, and scoring as the Secretary may prescribe in regulations.
(ii) The student shall be determined as having the ability to benefit from the education or training in accordance with such process as the State shall prescribe. Any such process described or approved by a State for the purposes of this section shall be effective 6 months after the date of submission to the Secretary unless the Secretary disapproves such process. In determining whether to approve or disapprove such process, the Secretary shall take into account the effectiveness of such process in enabling students without secondary school diplomas or the equivalent thereof to benefit from the instruction offered by institutions utilizing such process, and shall also take into account the cultural diversity, economic circumstances, and educational preparation of the populations served by the institutions.
(iii) The student shall be determined by the institution of higher education as having the ability to benefit from the education or training offered by the institution of higher education upon satisfactory completion of 6 credit hours or the equivalent coursework that are applicable toward a degree or certificate offered by the institution of higher education.
(B) The student has completed a secondary school education in a home school setting that is treated as a home school or private school under State law.
(2) Eligible career pathway program
In this subsection, the term "eligible career pathway program" means a program that combines rigorous and high-quality education, training, and other services that—
(A) aligns with the skill needs of industries in the economy of the State or regional economy involved;
(B) prepares an individual to be successful in any of a full range of secondary or postsecondary education options, including apprenticeships registered under the Act of August 16, 1937 (commonly known as the "National Apprenticeship Act";
(C) includes counseling to support an individual in achieving the individual's education and career goals;
(D) includes, as appropriate, education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster;
(E) organizes education, training, and other services to meet the particular needs of an individual in a manner that accelerates the educational and career advancement of the individual to the extent practicable;
(F) enables an individual to attain a secondary school diploma or its recognized equivalent, and at least 1 recognized postsecondary credential; and
(G) helps an individual enter or advance within a specific occupation or occupational cluster.
(e) Certification for GSL eligibility
Each eligible institution may certify student eligibility for a loan by an eligible lender under part B of this subchapter prior to completing the review for accuracy of the information submitted by the applicant required by regulations issued under this subchapter, if—
(1) checks for the loans are mailed to the eligible institution prior to disbursements;
(2) the disbursement is not made until the review is complete; and
(3) the eligible institution has no evidence or documentation on which the institution may base a determination that the information submitted by the applicant is incorrect.
(f) Loss of eligibility for violation of loan limits
(1) No student shall be eligible to receive any grant, loan, or work assistance under this subchapter if the eligible institution determines that the student fraudulently borrowed in violation of the annual loan limits under part B, part D, or part E of this subchapter in the same academic year, or if the student fraudulently borrowed in excess of the aggregate maximum loan limits under such part B, part D, or part E.
(2) If the institution determines that the student inadvertently borrowed amounts in excess of such annual or aggregate maximum loan limits, such institution shall allow the student to repay any amount borrowed in excess of such limits prior to certifying the student's eligibility for further assistance under this subchapter.
(g) Verification of immigration status
(1) In general
The Secretary shall implement a system under which the statements and supporting documentation, if required, of an individual declaring that such individual is in compliance with the requirements of subsection (a)(5) shall be verified prior to the individual's receipt of a grant, loan, or work assistance under this subchapter.
(2) Special rule
The documents collected and maintained by an eligible institution in the admission of a student to the institution may be used by the student in lieu of the documents used to establish both employment authorization and identity under
(3) Verification mechanisms
The Secretary is authorized to verify such statements and supporting documentation through a data match, using an automated or other system, with other Federal agencies that may be in possession of information relevant to such statements and supporting documentation.
(4) Review
In the case of such an individual who is not a citizen or national of the United States, if the statement described in paragraph (1) is submitted but the documentation required under paragraph (2) is not presented or if the documentation required under paragraph (2)(A) is presented but such documentation is not verified under paragraph (3)—
(A) the institution—
(i) shall provide a reasonable opportunity to submit to the institution evidence indicating a satisfactory immigration status, and
(ii) may not delay, deny, reduce, or terminate the individual's eligibility for the grant, loan, or work assistance on the basis of the individual's immigration status until such a reasonable opportunity has been provided; and
(B) if there are submitted documents which the institution determines constitute reasonable evidence indicating such status—
(i) the institution shall transmit to the Immigration and Naturalization Service either photostatic or other similar copies of such documents, or information from such documents, as specified by the Immigration and Naturalization Service, for official verification,
(ii) pending such verification, the institution may not delay, deny, reduce, or terminate the individual's eligibility for the grant, loan, or work assistance on the basis of the individual's immigration status, and
(iii) the institution shall not be liable for the consequences of any action, delay, or failure of the Service to conduct such verification.
(h) Limitations of enforcement actions against institutions
The Secretary shall not take any compliance, disallowance, penalty, or other regulatory action against an institution of higher education with respect to any error in the institution's determination to make a student eligible for a grant, loan, or work assistance based on citizenship or immigration status—
(1) if the institution has provided such eligibility based on a verification of satisfactory immigration status by the Immigration and Naturalization Service,
(2) because the institution, under subsection (g)(4)(A)(i), was required to provide a reasonable opportunity to submit documentation, or
(3) because the institution, under subsection (g)(4)(B)(i), was required to wait for the response of the Immigration and Naturalization Service to the institution's request for official verification of the immigration status of the student.
(i) Validity of loan guarantees for loan payments made before immigration status verification completed
Notwithstanding subsection (h),1 if—
(1) a guaranty is made under this subchapter for a loan made with respect to an individual,
(2) at the time the guaranty is entered into, the provisions of subsection (h) 1 had been complied with,
(3) amounts are paid under the loan subject to such guaranty, and
(4) there is a subsequent determination that, because of an unsatisfactory immigration status, the individual is not eligible for the loan,
the official of the institution making the determination shall notify and instruct the entity making the loan to cease further payments under the loan, but such guaranty shall not be voided or otherwise nullified with respect to such payments made before the date the entity receives the notice.
(j) Repealed. Pub. L. 110–315, title IV, §485(a)(4), Aug. 14, 2008, 122 Stat. 3288
(k) Special rule for correspondence courses
A student shall not be eligible to receive grant, loan, or work assistance under this subchapter for a correspondence course unless such course is part of a program leading to an associate, bachelor or graduate degree.
(l) Courses offered through distance education
(1) Relation to correspondence courses
(A) In general
A student enrolled in a course of instruction at an institution of higher education that is offered principally through distance education and leads to a recognized certificate, or recognized associate, recognized baccalaureate, or recognized graduate degree, conferred by such institution, shall not be considered to be enrolled in correspondence courses.
(B) Exception
An institution of higher education referred to in subparagraph (A) shall not include an institution or school described in
(2) Reductions of financial aid
A student's eligibility to receive grants, loans, or work assistance under this subchapter shall be reduced if a financial aid officer determines under the discretionary authority provided in
(3) Special rule
For award years beginning prior to July 1, 2008, the Secretary shall not take any compliance, disallowance, penalty, or other action based on a violation of this subsection against a student or an eligible institution when such action arises out of such institution's prior award of student assistance under this subchapter if the institution demonstrates to the satisfaction of the Secretary that its course of instruction would have been in conformance with the requirements of this subsection.
(m) Students with a first baccalaureate or professional degree
A student shall not be ineligible for assistance under parts B, C, D, and E of this subchapter because such student has previously received a baccalaureate or professional degree.
(n) Data base matching
To enforce the Selective Service registration provisions of
(o) Study abroad
Nothing in this chapter shall be construed to limit or otherwise prohibit access to study abroad programs approved by the home institution at which a student is enrolled. An otherwise eligible student who is engaged in a program of study abroad approved for academic credit by the home institution at which the student is enrolled shall be eligible to receive grant, loan, or work assistance under this subchapter, without regard to whether such study abroad program is required as part of the student's degree program.
(p) Verification of social security number
The Secretary of Education, in cooperation with the Commissioner of the Social Security Administration, shall verify any social security number provided by a student to an eligible institution under subsection (a)(4) and shall enforce the following conditions:
(1) Except as provided in paragraphs (2) and (3), an institution shall not deny, reduce, delay, or terminate a student's eligibility for assistance under this part because social security number verification is pending.
(2) If there is a determination by the Secretary that the social security number provided to an eligible institution by a student is incorrect, the institution shall deny or terminate the student's eligibility for any grant, loan, or work assistance under this subchapter until such time as the student provides documented evidence of a social security number that is determined by the institution to be correct.
(3) If there is a determination by the Secretary that the social security number provided to an eligible institution by a student is incorrect, and a correct social security number cannot be provided by such student, and a loan has been guaranteed for such student under part B of this subchapter, the institution shall notify and instruct the lender and guaranty agency making and guaranteeing the loan, respectively, to cease further disbursements of the loan, but such guaranty shall not be voided or otherwise nullified with respect to such disbursements made before the date that the lender and the guaranty agency receives such notice.
(4) Nothing in this subsection shall permit the Secretary to take any compliance, disallowance, penalty, or other regulatory action against—
(A) any institution of higher education with respect to any error in a social security number, unless such error was a result of fraud on the part of the institution; or
(B) any student with respect to any error in a social security number, unless such error was a result of fraud on the part of the student.
(q) Repealed. Pub. L. 116–91, §6(b), Dec. 19, 2019, 133 Stat. 1196
(r) Suspension of eligibility for drug-related offenses
(1) In general
A student who is convicted of any offense under any Federal or State law involving the possession or sale of a controlled substance for conduct that occurred during a period of enrollment for which the student was receiving any grant, loan, or work assistance under this subchapter shall not be eligible to receive any grant, loan, or work assistance under this subchapter from the date of that conviction for the period of time specified in the following table:
| If convicted of an offense involving: |
||
| The possession of a controlled substance: | Ineligibility period is: | |
| First offense | 1 year | |
| Second offense | 2 years | |
| Third offense | Indefinite. |
|
| The sale of a controlled substance: | Ineligibility period is: | |
| First offense | 2 years | |
| Second offense | Indefinite. | |
(2) Rehabilitation
A student whose eligibility has been suspended under paragraph (1) may resume eligibility before the end of the ineligibility period determined under such paragraph if—
(A) the student satisfactorily completes a drug rehabilitation program that—
(i) complies with such criteria as the Secretary shall prescribe in regulations for purposes of this paragraph; and
(ii) includes two unannounced drug tests;
(B) the student successfully passes two unannounced drug tests conducted by a drug rehabilitation program that complies with such criteria as the Secretary shall prescribe in regulations for purposes of subparagraph (A)(i); or
(C) the conviction is reversed, set aside, or otherwise rendered nugatory.
(3) Definitions
In this subsection, the term "controlled substance" has the meaning given the term in
(s) Students with intellectual disabilities
(1) Definitions
In this subsection the terms "comprehensive transition and postsecondary program for students with intellectual disabilities" and "student with an intellectual disability" have the meanings given the terms in
(2) Requirements
Notwithstanding subsections (a), (c), and (d), in order to receive any grant or work assistance under
(A) be enrolled or accepted for enrollment in a comprehensive transition and postsecondary program for students with intellectual disabilities at an institution of higher education;
(B) be maintaining satisfactory progress in the program as determined by the institution, in accordance with standards established by the institution; and
(C) meet the requirements of paragraphs (3), (4), (5), and (6) of subsection (a).
(3) Authority
Notwithstanding any other provision of law unless such provision is enacted with specific reference to this section, the Secretary is authorized to waive any statutory provision applicable to the student financial assistance programs under
(4) Regulations
Notwithstanding regulations applicable to grant or work assistance awards made under
(t) Data analysis on access to Federal student aid for certain populations
(1) Development of the system
Within one year of August 14, 2008, the Secretary shall analyze data from the FAFSA containing information regarding the number, characteristics, and circumstances of students denied Federal student aid based on a drug conviction while receiving Federal aid.
(2) Results from analysis
The results from the analysis of such information shall be made available on a continuous basis via the Department website and the Digest of Education Statistics.
(3) Data updating
The data analyzed under this subsection shall be updated at the beginning of each award year and at least one additional time during such award year.
(4) Report to Congress
The Secretary shall prepare and submit to the authorizing committees, in each fiscal year, a report describing the results obtained by the establishment and operation of the data system authorized by this subsection.
(
Amendment of Section
(1) by striking subsections (n) and (r);
(2) by redesignating subsections (o), (p), (s), and (t), as subsections (n), (o), (q), and (r), respectively; and
(3) by adding the following new subsections:
"(p) Use of income data with IRS
"The Secretary, in cooperation with the Secretary of the Treasury, shall fulfill the data transfer requirements under
"(s) Exception to required registration with the Selective Service System
"Notwithstanding
"(t) Confined or incarcerated individuals
"(1) Definitions
"In this subsection:
"(A) Confined or incarcerated individual
"The term 'confined or incarcerated individual'—
"(i) means an individual who is serving a criminal sentence in a Federal, State, or local penal institution, prison, jail, reformatory, work farm, or other similar correctional institution; and
"(ii) does not include an individual who is in a halfway house or home detention or is sentenced to serve only weekends.
"(B) Prison education program
"The term 'prison education program' means an education or training program that—
"(i) is an eligible program under this subchapter offered by an institution of higher education (as defined in
"(ii) is offered by an institution that has been approved to operate in a correctional facility by the appropriate State department of corrections or other entity that is responsible for overseeing correctional facilities, or by the Bureau of Prisons;
"(iii) has been determined by the appropriate State department of corrections or other entity that is responsible for overseeing correctional facilities, or by the Bureau of Prisons, to be operating in the best interest of students, the determination of which shall be made by the State department of corrections or other entity or by the Bureau of Prisons, respectively, and may be based on—
"(I) rates of confined or incarcerated individuals continuing their education post-release;
"(II) job placement rates for such individuals;
"(III) earnings for such individuals;
"(IV) rates of recidivism for such individuals;
"(V) the experience, credentials, and rates of turnover or departure of instructors;
"(VI) the transferability of credits for courses available to confined or incarcerated individuals and the applicability of such credits toward related degree or certificate programs; or
"(VII) offering relevant academic and career advising services to participating confined or incarcerated individuals while they are confined or incarcerated, in advance of reentry, and upon release;
"(iv) offers transferability of credits to at least 1 institution of higher education (as defined in
"(v) is offered by an institution that has not been subject, during the 5 years preceding the date of the determination, to—
"(I) any suspension, emergency action, or termination of programs under this subchapter;
"(II) any adverse action by the institution's accrediting agency or association; or
"(III) any action by the State to revoke a license or other authority to operate;
"(vi) satisfies any applicable educational requirements for professional licensure or certification, including licensure or certification examinations needed to practice or find employment in the sectors or occupations for which the program prepares the individual, in the State in which the correctional facility is located or, in the case of a Federal correctional facility, in the State in which most of the individuals confined or incarcerated in such facility will reside upon release; and
"(vii) does not offer education that is designed to lead to licensure or employment for a specific job or occupation in the State if such job or occupation typically involves prohibitions on the licensure or employment of formerly incarcerated individuals in the State in which the correctional facility is located, or, in the case of a Federal correctional facility, in the State in which most of the individuals confined or incarcerated in such facility will reside upon release.
"(2) Technical assistance
"The Secretary, in collaboration with the Attorney General, shall provide technical assistance and guidance to the Bureau of Prisons, State departments of corrections, and other entities that are responsible for overseeing correctional facilities in making determinations under paragraph (1)(B)(iii).
"(3) Federal Pell Grant eligibility
"Notwithstanding subsection (a), in order for a confined or incarcerated individual who otherwise meets the eligibility requirements of this subchapter to be eligible to receive a Federal Pell Grant under
"(4) Evaluation
"(A) In general
"Not later than 1 year after December 27, 2020, in order to evaluate and improve the impact of activities supported under this subsection, the Secretary, in partnership with the Director of the Institute of Education Sciences, shall award 1 or more grants or contracts to, or enter into cooperative agreements with, experienced public and private institutions and organizations to enable the institutions and organizations to conduct an external evaluation that shall—
"(i) assess the ability of confined or incarcerated individuals to access and complete the Free Application for Federal Student Aid;
"(ii) examine in-custody outcomes and post-release outcomes related to providing Federal Pell Grants to confined or incarcerated individuals, including—
"(I) attainment of a postsecondary degree or credential;
"(II) safety in penal institutions with prison education programs;
"(III) the size of waiting lists for prison education programs;
"(IV) the extent to which such individuals continue their education post-release;
"(V) employment and earnings outcomes for such individuals; and
"(VI) rates of recidivism for such individuals;
"(iii) track individuals who received Federal Pell Grants under subpart 1 of part A at 1, 3, and 5 years after the individuals' release from confinement or incarceration; and
"(iv) examine the extent to which institutions provide re-entry or relevant career services to participating confined or incarcerated individuals as part of the prison education program and the efficacy of such services, if offered.
"(B) Report
"Beginning not later than 1 year after the Secretary awards the grant, contract, or cooperative agreement described in subparagraph (A) and annually thereafter, each institution of higher education operating a prison education program under this subsection shall submit a report to the Secretary on activities assisted and students served under this subsection, which shall include the information, as applicable, contained in clauses (i) through (iv) of subparagraph (A).
"(5) Report
"Not later than 1 year after December 27, 2020, and on at least an annual basis thereafter, the Secretary shall submit to the authorizing committees, and make publicly available on the website of the Department, a report on the—
"(A) impact of this subsection which shall include, at a minimum—
"(i) the names and types of institutions of higher education offering prison education programs at which confined or incarcerated individuals are enrolled and receiving Federal Pell Grants;
"(ii) the number of confined or incarcerated individuals receiving Federal Pell Grants through each prison education program;
"(iii) the amount of Federal Pell Grant expenditures for each prison education program;
"(iv) the average amount of Federal Pell Grant expenditures per full-time equivalent students in a prison education program compared to the average amount of Federal Pell Grant expenditures per full-time equivalent students not in prison education programs;
"(v) the demographics of confined or incarcerated individuals receiving Federal Pell Grants;
"(vi) the cost of attendance for such individuals;
"(vii) the mode of instruction (such as distance education, in-person instruction, or a combination of such modes) for each prison education program;
"(viii) information on the academic outcomes of such individuals (such as credits attempted and earned, and credential and degree completion) and any information available from student satisfaction surveys conducted by the applicable institution or correctional facility;
"(ix) information on post-release outcomes of such individuals, including, to the extent practicable, continued postsecondary enrollment, earnings, credit transfer, and job placement;
"(x) rates of recidivism for confined or incarcerated individuals receiving Federal Pell Grants;
"(xi) information on transfers of confined or incarcerated individuals between prison education programs;
"(xii) the most common programs and courses offered in prison education programs; and
"(xiii) rates of instructor turnover or departure for courses offered in prison education programs;
"(B) results of each prison education program at each institution of higher education, including the information described in clauses (ii) through (xiii) of subparagraph (A); and
"(C) findings regarding best practices with respect to prison education programs."
See 2020 Amendment note below.
Editorial Notes
References in Text
Act of August 16, 1937, commonly known as the National Apprenticeship Act, referred to in subsec. (d)(2)(B), is act Aug. 16, 1937, ch. 663,
Section 171, referred to in subsec. (d)(2)(B), may have been intended as a reference to section 171 of the Workforce Innovation and Opportunity Act,
Subsection (h), referred to in subsec. (i), was redesignated subsec. (g) of this section by
Prior Provisions
A prior section 1091,
Another prior section 1091,
Amendments
2020—Subsecs. (n) to (t).
2019—Subsec. (q).
2015—Subsec. (d)(2).
2014—Subsec. (d).
2011—Subsec. (d).
2009—Subsec. (a)(4).
Subsec. (b)(1)(B).
Subsec. (f)(1).
Subsec. (h)(2), (3).
Subsec. (n).
2008—Subsec. (a)(4)(B).
Subsec. (a)(5).
Subsec. (b)(1).
Subsec. (d)(4).
Subsec. (j).
"(1) is a citizen of any one of the Freely Associated States and attends an institution of higher education in a State or a public or nonprofit private institution of higher education in the Freely Associated States; or
"(2) meets the requirements of subsection (a)(5) of this section and attends a public or nonprofit private institution of higher education in any one of the Freely Associated States."
Subsec. (l).
Subsec. (q).
Subsec. (r)(2)(B), (C).
Subsec. (s).
Subsec. (t).
2006—Subsec. (a)(6).
Subsec. (l)(1)(A).
Subsec. (l)(1)(B).
"(i) that is not an institute or school described in
"(ii) for which at least 50 percent of the programs of study offered by the institution lead to the award of a recognized associate, baccalaureate, or graduate degree."
Subsec. (l)(1)(B)(i).
Subsec. (q)(1).
Subsec. (r)(1).
1998—Subsec. (a)(4).
Subsec. (a)(5).
Subsec. (d).
Subsec. (j).
"(1) is a citizen of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau, and attends an institution of higher education in a State or a public or nonprofit private institution of higher education in the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau; or
"(2) meets the requirements of subsection (a)(5) of this section and attends a public or nonprofit private institution of higher education in the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau."
Subsec. (l)(1).
Subsec. (q).
Subsec. (r).
1996—Subsec. (g)(4)(B)(i).
1994—Subsec. (j).
1993—Subsec. (a)(4)(B).
Subsec. (a)(5).
Subsec. (b)(2)(C).
Subsec. (b)(3).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
Subsecs. (j) to (m).
Subsec. (n).
Subsecs. (o), (p).
Subsec. (q).
1992—Subsec. (a)(1).
Subsec. (a)(4).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (d).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (k).
Subsecs. (l) to (q).
1991—Subsec. (a)(1).
Subsec. (d).
"(1) receive the general education diploma prior to the student's certification or graduation from the program of study, or by the end of the first year of the course of study, whichever is earlier;
"(2) be counseled prior to admission and be enrolled in and successfully complete the institutionally prescribed program of remedial or developmental education not to exceed one academic year or its equivalent; or
"(3)(A) be administered a nationally recognized, standardized, or industry developed test, subject to criteria developed by the appropriate accrediting association, measuring the applicant's aptitude to complete successfully the program to which the applicant has applied; and
"(B) with respect to applicants who are unable to satisfy the institutions' admissions testing requirements specified in subparagraph (A), be enrolled in and successfully complete an institutionally prescribed program or course of remedial or developmental education not to exceed one academic year or its equivalent.
In order to be eligible for assistance a student cannot be enrolled in either an elementary or a secondary school."
Subsec. (k).
1990—Subsec. (d).
1988—Subsec. (a)(1).
Subsec. (b)(1).
Subsec. (b)(1)(A).
Subsec. (b)(2), (3).
Subsec. (b)(4).
Subsecs. (c) to (e), (h) to (j).
1987—Subsec. (a)(1).
Subsec. (b).
Subsec. (d).
"(A) be counseled prior to admissions or be administered a nationally recognized standardized or industry developed test, subject to criteria developed by the appropriate accrediting association, measuring the applicant's aptitude to complete successfully the program to which he has applied; and
"(B) with respect to applicants who are unable to satisfy the institution's admissions testing requirements specified in subparagraph (A), be enrolled in an institutionally prescribed program or course of remedial or developmental education, not to exceed one academic year or its equivalent."
Subsec. (f).
1986—Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Amendment by
Effective Date of 2014 Amendment
Effective Date of 2011 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2008 Amendment
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by section 483(a)–(e) of
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by section 484(a), (b)(1)(B), and (c) to (h) of
Section 484(i) of
Effective Date of 1991 Amendment
Amendment by
Effective Date of 1988 Amendments
Amendment by
"(a)
"(b)
"(2) The amendments made by sections 6, 7, 8, 9, 10, 11, and 12 [amending this section,
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date
Section effective Oct. 17, 1986, except as otherwise provided, see section 2 of
"(1) Sections 483(e) and 484(d) of the Act [
"(2) The changes made in section 484(a)(1) of the Act [
"(3) Section 484(c) of the Act [
"(4) Sections 484(f), 485(b), and 487(a)(10) of the Act [
Construction of 1991 Amendment
For repeal of section 3005 of
Abolition of Immigration and Naturalization Service and Transfer of Functions
For abolition of Immigration and Naturalization Service, transfer of functions, and treatment of related references, see note set out under
Satisfactory Progress
Denial of Student Assistance to Certain Noncitizens
Financial Aid to Students Not Deemed Income or Resources for Purposes of Certain Social Security Act Programs
1 See References in Text note below.
§1091a. Statute of limitations, and State court judgments
(a) In general
(1) It is the purpose of this subsection to ensure that obligations to repay loans and grant overpayments are enforced without regard to any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced.
(2) Notwithstanding any other provision of statute, regulation, or administrative limitation, no limitation shall terminate the period within which suit may be filed, a judgment may be enforced, or an offset, garnishment, or other action initiated or taken by—
(A) an institution that receives funds under this subchapter that is seeking to collect a refund due from a student on a grant made, or work assistance awarded, under this subchapter;
(B) a guaranty agency that has an agreement with the Secretary under
(C) an institution that has an agreement with the Secretary pursuant to
(D) the Secretary, the Attorney General, or the administrative head of another Federal agency, as the case may be, for payment of a refund due from a student on a grant made under this subchapter, or for the repayment of the amount due from a borrower on a loan made under this subchapter that has been assigned to the Secretary under this subchapter.
(b) Assessment of costs and other charges
Notwithstanding any provision of State law to the contrary—
(1) a borrower who has defaulted on a loan made under this subchapter shall be required to pay, in addition to other charges specified in this subchapter reasonable collection costs;
(2) in collecting any obligation arising from a loan made under part B of this subchapter, a guaranty agency or the Secretary shall not be subject to a defense raised by any borrower based on a claim of infancy; and
(3) in collecting any obligation arising from a loan made under part E, an institution of higher education that has an agreement with the Secretary pursuant to
(c) State court judgments
A judgment of a State court for the recovery of money provided as grant, loan, or work assistance under this subchapter that has been assigned or transferred to the Secretary under this subchapter may be registered in any district court of the United States by filing a certified copy of the judgment and a copy of the assignment or transfer. A judgment so registered shall have the same force and effect, and may be enforced in the same manner, as a judgment of the district court of the district in which the judgment is registered.
(d) Special rule
This section shall not apply in the case of a student who is deceased, or to a deceased student's estate or the estate of such student's family. If a student is deceased, then the student's estate or the estate of the student's family shall not be required to repay any financial assistance under this subchapter, including interest paid on the student's behalf, collection costs, or other charges specified in this subchapter.
(
Editorial Notes
Prior Provisions
A prior section 1091a,
Another prior section 1091a,
Amendments
2008—Subsec. (b)(3).
Subsec. (d).
1998—
Subsec. (c).
1991—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1991 Amendment
§1091b. Institutional refunds
(a) Return of subchapter IV funds
(1) In general
If a recipient of assistance under this subchapter withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the amount of grant or loan assistance (other than assistance received under part C) to be returned to the subchapter IV programs is calculated according to paragraph (3) and returned in accordance with subsection (b).
(2) Leave of absence
(A) Leave not treated as withdrawal
In the case of a student who takes 1 or more leaves of absence from an institution for not more than a total of 180 days in any 12-month period, the institution may consider the student as not having withdrawn from the institution during the leave of absence, and not calculate the amount of grant and loan assistance provided under this subchapter that is to be returned in accordance with this section if—
(i) the institution has a formal policy regarding leaves of absence;
(ii) the student followed the institution's policy in requesting a leave of absence; and
(iii) the institution approved the student's request in accordance with the institution's policy.
(B) Consequences of failure to return
If a student does not return to the institution at the expiration of an approved leave of absence that meets the requirements of subparagraph (A), the institution shall calculate the amount of grant and loan assistance provided under this subchapter that is to be returned in accordance with this section based on the day the student withdrew (as determined under subsection (c)).
(3) Calculation of amount of subchapter IV assistance earned
(A) In general
The amount of grant or loan assistance under this subchapter that is earned by the recipient for purposes of this section is calculated by—
(i) determining the percentage of grant and loan assistance under this subchapter that has been earned by the student, as described in subparagraph (B); and
(ii) applying such percentage to the total amount of such grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student's behalf, for the payment period or period of enrollment for which the assistance was awarded, as of the day the student withdrew.
(B) Percentage earned
For purposes of subparagraph (A)(i), the percentage of grant or loan assistance under this subchapter that has been earned by the student is—
(i) equal to the percentage of the payment period or period of enrollment for which assistance was awarded that was completed (as determined in accordance with subsection (d)) as of the day the student withdrew, provided that such date occurs on or before the completion of 60 percent of the payment period or period of enrollment; or
(ii) 100 percent, if the day the student withdrew occurs after the student has completed (as determined in accordance with subsection (d)) 60 percent of the payment period or period of enrollment.
(C) Percentage and amount not earned
For purposes of subsection (b), the amount of grant and loan assistance awarded under this subchapter that has not been earned by the student shall be calculated by—
(i) determining the complement of the percentage of grant assistance under subparts 1 and 3 of part A, or loan assistance under parts B, D, and E, that has been earned by the student described in subparagraph (B); and
(ii) applying the percentage determined under clause (i) to the total amount of such grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student's behalf, for the payment period or period of enrollment, as of the day the student withdrew.
(4) Differences between amounts earned and amounts received
(A) In general
After determining the eligibility of the student for a late disbursement or post-withdrawal disbursement (as required in regulations prescribed by the Secretary), the institution of higher education shall contact the borrower and obtain confirmation that the loan funds are still required by the borrower. In making such contact, the institution shall explain to the borrower the borrower's obligation to repay the funds following any such disbursement. The institution shall document in the borrower's file the result of such contact and the final determination made concerning such disbursement.
(B) Return
If the student has received more grant or loan assistance than the amount earned as calculated under paragraph (3)(A), the unearned funds shall be returned by the institution or the student, or both, as may be required under paragraphs (1) and (2) of subsection (b), to the programs under this subchapter in the order specified in subsection (b)(3).
(b) Return of subchapter IV program funds
(1) Responsibility of the institution
The institution shall return not later than 45 days from the determination of withdrawal, in the order specified in paragraph (3), the lesser of—
(A) the amount of grant and loan assistance awarded under this subchapter that has not been earned by the student, as calculated under subsection (a)(3)(C); or
(B) an amount equal to—
(i) the total institutional charges incurred by the student for the payment period or period of enrollment for which such assistance was awarded; multiplied by
(ii) the percentage of grant and loan assistance awarded under this subchapter that has not been earned by the student, as described in subsection (a)(3)(C)(i).
(2) Responsibility of the student
(A) In general
The student shall return assistance that has not been earned by the student as described in subsection (a)(3)(C)(ii) in the order specified in paragraph (3) minus the amount the institution is required to return under paragraph (1).
(B) Special rule
The student (or parent in the case of funds due to a loan borrowed by a parent under part B or D) shall return or repay, as appropriate, the amount determined under subparagraph (A) to—
(i) a loan program under this subchapter in accordance with the terms of the loan; and
(ii) a grant program under this subchapter, as an overpayment of such grant and shall be subject to—
(I) repayment arrangements satisfactory to the institution; or
(II) overpayment collection procedures prescribed by the Secretary.
(C) Grant overpayment requirements
(i) In general
Notwithstanding subparagraphs (A) and (B), a student shall only be required to return grant assistance in the amount (if any) by which—
(I) the amount to be returned by the student (as determined under subparagraphs (A) and (B)), exceeds
(II) 50 percent of the total grant assistance received by the student under this subchapter for the payment period or period of enrollment.
(ii) Minimum
A student shall not be required to return amounts of $50 or less.
(D) Waivers of Federal Pell Grant repayment by students affected by disasters
The Secretary may waive the amounts that students are required to return under this section with respect to Federal Pell Grants if the withdrawals on which the returns are based are withdrawals by students—
(i) who were residing in, employed in, or attending an institution of higher education that is located in an area in which the President has declared that a major disaster exists, in accordance with
(ii) whose attendance was interrupted because of the impact of the disaster on the student or the institution; and
(iii) whose withdrawal ended within the academic year during which the designation occurred or during the next succeeding academic year.
(E) Waivers of grant assistance repayment by students affected by disasters
In addition to the waivers authorized by subparagraph (D), the Secretary may waive the amounts that students are required to return under this section with respect to any other grant assistance under this subchapter if the withdrawals on which the returns are based are withdrawals by students—
(i) who were residing in, employed in, or attending an institution of higher education that is located in an area in which the President has declared that a major disaster exists, in accordance with
(ii) whose attendance was interrupted because of the impact of the disaster on the student or the institution; and
(iii) whose withdrawal ended within the academic year during which the designation occurred or during the next succeeding academic year.
(3) Order of return of subchapter IV funds
(A) In general
Excess funds returned by the institution or the student, as appropriate, in accordance with paragraph (1) or (2), respectively, shall be credited to outstanding balances on loans made under this subchapter to the student or on behalf of the student for the payment period or period of enrollment for which a return of funds is required. Such excess funds shall be credited in the following order:
(i) To outstanding balances on loans made under
(ii) To outstanding balances on loans made under
(iii) To outstanding balances on unsubsidized loans (other than parent loans) made under part D for the payment period or period of enrollment for which a return of funds is required.
(iv) To outstanding balances on subsidized loans made under part D for the payment period or period of enrollment for which a return of funds is required.
(v) To outstanding balances on loans made under part E for the payment period or period of enrollment for which a return of funds is required.
(vi) To outstanding balances on loans made under
(vii) To outstanding balances on parent loans made under part D for the payment period or period of enrollment for which a return of funds is required.
(B) Remaining excesses
If excess funds remain after repaying all outstanding loan amounts, the remaining excess shall be credited in the following order:
(i) To awards under subpart 1 of part A for the payment period or period of enrollment for which a return of funds is required.
(ii) To awards under subpart 3 of part A for the payment period or period of enrollment for which a return of funds is required.
(iii) To other assistance awarded under this subchapter for which a return of funds is required.
(c) Withdrawal date
(1) In general
In this section, the term "day the student withdrew"—
(A) is the date that the institution determines—
(i) the student began the withdrawal process prescribed by the institution;
(ii) the student otherwise provided official notification to the institution of the intent to withdraw; or
(iii) in the case of a student who does not begin the withdrawal process or otherwise notify the institution of the intent to withdraw, the date that is the mid-point of the payment period for which assistance under this subchapter was disbursed or a later date documented by the institution; or
(B) for institutions required to take attendance, is determined by the institution from such attendance records.
(2) Special rule
Notwithstanding paragraph (1), if the institution determines that a student did not begin the withdrawal process, or otherwise notify the institution of the intent to withdraw, due to illness, accident, grievous personal loss, or other such circumstances beyond the student's control, the institution may determine the appropriate withdrawal date.
(d) Percentage of the payment period or period of enrollment completed
For purposes of subsection (a)(3)(B), the percentage of the payment period or period of enrollment for which assistance was awarded that was completed, is determined—
(1) in the case of a program that is measured in credit hours, by dividing the total number of calendar days comprising the payment period or period of enrollment for which assistance is awarded into the number of calendar days completed in that period as of the day the student withdrew; and
(2) in the case of a program that is measured in clock hours, by dividing the total number of clock hours comprising the payment period or period of enrollment for which assistance is awarded into the number of clock hours scheduled to be completed by the student in that period as of the day the student withdrew.
(e) Effective date
The provisions of this section shall take effect 2 years after October 7, 1998. An institution of higher education may choose to implement such provisions prior to that date.
(
Editorial Notes
Prior Provisions
A prior section 1091b,
Amendments
2006—Subsec. (a)(2)(A).
Subsec. (a)(3)(B)(ii).
Subsec. (a)(3)(C)(i).
Subsec. (a)(4)(A).
Subsec. (b)(1).
Subsec. (b)(2)(C).
Subsec. (d).
"(A) completed by the student in that period as of the day the student withdrew; or
"(B) scheduled to be completed as of the day the student withdrew, if the clock hours completed in the period are not less than a percentage, to be determined by the Secretary in regulations, of the hours that were scheduled to be completed by the student in the period."
2005—Subsec. (b)(2)(D).
Subsec. (b)(2)(E).
1998—
1993—Subsec. (a).
Subsec. (b)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
§1091c. Readmission requirements for servicemembers
(a) Definition of service in the uniformed services
In this section, the term "service in the uniformed services" means service (whether voluntary or involuntary) on active duty in the Armed Forces, including such service by a member of the National Guard or Reserve, for a period of more than 30 days under a call or order to active duty of more than 30 days.
(b) Discrimination against students who serve in the uniformed services prohibited
A person who is a member of, applies to be a member of, performs, has performed, applies to perform, or has an obligation to perform, service in the uniformed services shall not be denied readmission to an institution of higher education on the basis of that membership, application for membership, performance of service, application for service, or obligation.
(c) Readmission procedures
(1) In general
Any student whose absence from an institution of higher education is necessitated by reason of service in the uniformed services shall be entitled to readmission to the institution of higher education if—
(A) the student (or an appropriate officer of the Armed Forces or official of the Department of Defense) gives advance written or verbal notice of such service to the appropriate official at the institution of higher education;
(B) the cumulative length of the absence and of all previous absences from that institution of higher education by reason of service in the uniformed services does not exceed five years; and
(C) except as otherwise provided in this section, the student submits a notification of intent to reenroll in the institution of higher education in accordance with the provisions of paragraph (4).
(2) Exceptions
(A) Military necessity
No notice is required under paragraph (1)(A) if the giving of such notice is precluded by military necessity, such as—
(i) a mission, operation, exercise, or requirement that is classified; or
(ii) a pending or ongoing mission, operation, exercise, or requirement that may be compromised or otherwise adversely affected by public knowledge.
(B) Failure to give advance notice
Any student (or an appropriate officer of the Armed Forces or official of the Department of Defense) who did not give advance written or verbal notice of service to the appropriate official at the institution of higher education in accordance with paragraph (1)(A) may meet the notice requirement by submitting, at the time the student seeks readmission, an attestation to the student's institution of higher education that the student performed service in the uniformed services that necessitated the student's absence from the institution of higher education.
(3) Applicability
This section shall apply to a student who is absent from an institution of higher education by reason of service in the uniformed services if such student's cumulative period of service in the Armed Forces (including the National Guard or Reserve), with respect to the institution of higher education for which a student seeks readmission, does not exceed five years, except that any such period of service shall not include any service—
(A) that is required, beyond five years, to complete an initial period of obligated service;
(B) during which such student was unable to obtain orders releasing such student from a period of service in the uniformed services before the expiration of such five-year period and such inability was through no fault of such student; or
(C) performed by a member of the Armed Forces (including the National Guard and Reserves) who is—
(i) ordered to or retained on active duty under
(ii) ordered to or retained on active duty (other than for training) under any provision of law because of a war or national emergency declared by the President or the Congress, as determined by the Secretary concerned;
(iii) ordered to active duty (other than for training) in support, as determined by the Secretary concerned, of an operational mission for which personnel have been ordered to active duty under
(iv) ordered to active duty in support, as determined by the Secretary concerned, of a critical mission or requirement of the Armed Forces (including the National Guard or Reserve); or
(v) called into Federal service as a member of the National Guard under
(4) Notification of intent to return
(A) In general
Except as provided in subparagraph (B), a student referred to in subsection (a) shall, upon the completion of a period of service in the uniformed services, notify the institution of higher education of the student's intent to return to the institution not later than three years after the completion of the period of service.
(B) Hospitalization or convalescence
A student who is hospitalized for or convalescing from an illness or injury incurred in or aggravated during the performance of service in the uniformed services shall notify the institution of higher education of the student's intent to return to the institution not later than two years after the end of the period that is necessary for recovery from such illness or injury.
(C) Special rule
A student who fails to apply for readmission within the period described in this section shall not automatically forfeit such eligibility for readmission to the institution of higher education, but shall be subject to the institution of higher education's established leave of absence policy and general practices.
(5) Documentation
(A) In general
A student who submits an application for readmission to an institution of higher education under this section shall provide to the institution of higher education documentation to establish that—
(i) the student has not exceeded the service limitations established under this section; and
(ii) the student's eligibility for readmission has not been terminated due to an exception in subsection (d).
(B) Prohibited documentation demands
An institution of higher education may not delay or attempt to avoid a readmission of a student under this section by demanding documentation that does not exist, or is not readily available, at the time of readmission.
(6) No change in academic status
A student who is readmitted to an institution of higher education under this section shall be readmitted with the same academic status as such student had when such student last attended the institution of higher education.
(d) Exception from readmission eligibility
A student's eligibility for readmission to an institution of higher education under this section by reason of such student's service in the uniformed services terminates upon the occurrence of any of the following events:
(1) A separation of such person from the Armed Forces (including the National Guard and Reserves) with a dishonorable or bad conduct discharge.
(2) A dismissal of such person permitted under
(3) A dropping of such person from the rolls pursuant to
(
Editorial Notes
References in Text
Prior Provisions
Prior sections 1091c to 1091f were repealed, effective Sept. 30, 1976, by
Section 1091c,
Section 1091d,
Section 1091e,
Section 1091f,
Amendments
2018—Subsec. (c)(3)(C)(i).
Subsec. (c)(3)(C)(v).
1 See References in Text note below.
§1092. Institutional and financial assistance information for students
(a) Information dissemination activities
(1) Each eligible institution participating in any program under this subchapter shall carry out information dissemination activities for prospective and enrolled students (including those attending or planning to attend less than full time) regarding the institution and all financial assistance under this subchapter. The information required by this section shall be produced and be made readily available upon request, through appropriate publications, mailings, and electronic media, to an enrolled student and to any prospective student. Each eligible institution shall, on an annual basis, provide to all enrolled students a list of the information that is required to be provided by institutions to students by this section and section 444 of the General Education Provisions Act [
(A) the student financial assistance programs available to students who enroll at such institution;
(B) the methods by which such assistance is distributed among student recipients who enroll at such institution;
(C) any means, including forms, by which application for student financial assistance is made and requirements for accurately preparing such application;
(D) the rights and responsibilities of students receiving financial assistance under this subchapter;
(E) the cost of attending the institution, including (i) tuition and fees, (ii) books and supplies, (iii) estimates of typical student room and board costs or typical commuting costs, and (iv) any additional cost of the program in which the student is enrolled or expresses a specific interest;
(F) a statement of—
(i) the requirements of any refund policy with which the institution is required to comply;
(ii) the requirements under
(iii) the requirements for officially withdrawing from the institution;
(G) the academic program of the institution, including (i) the current degree programs and other educational and training programs, (ii) the instructional, laboratory, and other physical plant facilities which relate to the academic program, (iii) the faculty and other instructional personnel, and (iv) any plans by the institution for improving the academic program of the institution;
(H) each person designated under subsection (c) of this section, and the methods by which and locations in which any person so designated may be contacted by students and prospective students who are seeking information required by this subsection;
(I) special facilities and services available to students with disabilities;
(J) the names of associations, agencies, or governmental bodies which accredit, approve, or license the institution and its programs, and the procedures under which any current or prospective student may obtain or review upon request a copy of the documents describing the institution's accreditation, approval, or licensing;
(K) the standards which the student must maintain in order to be considered to be making satisfactory progress, pursuant to
(L) the completion or graduation rate of certificate- or degree-seeking, full-time, undergraduate students entering such institutions;
(M) the terms and conditions of the loans that students receive under parts B, D, and E;
(N) that enrollment in a program of study abroad approved for credit by the home institution may be considered enrollment in the home institution for purposes of applying for Federal student financial assistance;
(O) the campus crime report prepared by the institution pursuant to subsection (f), including all required reporting categories;
(P) institutional policies and sanctions related to copyright infringement, including—
(i) an annual disclosure that explicitly informs students that unauthorized distribution of copyrighted material, including unauthorized peer-to-peer file sharing, may subject the students to civil and criminal liabilities;
(ii) a summary of the penalties for violation of Federal copyright laws; and
(iii) a description of the institution's policies with respect to unauthorized peer-to-peer file sharing, including disciplinary actions that are taken against students who engage in unauthorized distribution of copyrighted materials using the institution's information technology system;
(Q) student body diversity at the institution, including information on the percentage of enrolled, full-time students who—
(i) are male;
(ii) are female;
(iii) receive a Federal Pell Grant; and
(iv) are a self-identified member of a major racial or ethnic group;
(R) the placement in employment of, and types of employment obtained by, graduates of the institution's degree or certificate programs, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, the Community College Survey of Student Engagement, State data systems, or other relevant sources;
(S) the types of graduate and professional education in which graduates of the institution's four-year degree programs enrolled, gathered from such sources as alumni surveys, student satisfaction surveys, the National Survey of Student Engagement, State data systems, or other relevant sources;
(T) the fire safety report prepared by the institution pursuant to subsection (i);
(U) the retention rate of certificate- or degree-seeking, first-time, full-time, undergraduate students entering such institution; and
(V) institutional policies regarding vaccinations.
(2) For the purpose of this section, the term "prospective student" means any individual who has contacted an eligible institution requesting information concerning admission to that institution.
(3) In calculating the completion or graduation rate under subparagraph (L) of paragraph (1) of this subsection or under subsection (e), a student shall be counted as a completion or graduation if, within 150 percent of the normal time for completion of or graduation from the program, the student has completed or graduated from the program, or enrolled in any program of an eligible institution for which the prior program provides substantial preparation. The information required to be disclosed under such subparagraph—
(A) shall be made available by July 1 each year to enrolled students and prospective students prior to the students enrolling or entering into any financial obligation; and
(B) shall cover the one-year period ending on August 31 of the preceding year.
(4) For purposes of this section, institutions may—
(A) exclude from the information disclosed in accordance with subparagraph (L) of paragraph (1) the completion or graduation rates of students who leave school to serve in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or
(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, recalculate the completion or graduation rates of such students by excluding from the calculation described in paragraph (3) the time period during which such students were not enrolled due to their service in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government.
(5) The Secretary shall permit any institution of higher education that is a member of an athletic association or athletic conference that has voluntarily published completion or graduation rate data or has agreed to publish data that, in the opinion of the Secretary, is substantially comparable to the information required under this subsection, to use such data to satisfy the requirements of this subsection.
(6) Each institution may provide supplemental information to enrolled and prospective students showing the completion or graduation rate for students described in paragraph (4) or for students transferring into the institution or information showing the rate at which students transfer out of the institution.
(7)(A)(i) Subject to clause (ii), the information disseminated under paragraph (1)(L), or reported under subsection (e), shall be disaggregated by gender, by each major racial and ethnic subgroup, by recipients of a Federal Pell Grant, by recipients of a loan made under part B or D (other than a loan made under
(ii) The requirements of clause (i) shall not apply to two-year, degree-granting institutions of higher education until academic year 2011-2012.
(B)(i) In order to assist two-year degree-granting institutions of higher education in meeting the requirements of paragraph (1)(L) and subsection (e), the Secretary, in consultation with the Commissioner for Education Statistics, shall, not later than 90 days after August 14, 2008, convene a group of representatives from diverse institutions of higher education, experts in the field of higher education policy, state 1 higher education officials, students, and other stakeholders in the higher education community, to develop recommendations regarding the accurate calculation and reporting of the information required to be disseminated or reported under paragraph (1)(L) and subsection (e) by two-year, degree-granting institutions of higher education. In developing such recommendations, the group of representatives shall consider the mission and role of two-year degree-granting institutions of higher education, and may recommend additional or alternative measures of student success for such institutions in light of the mission and role of such institutions.
(ii) The Secretary shall widely disseminate the recommendations required under this subparagraph to two-year, degree-granting institutions of higher education, the public, and the authorizing committees not later than 18 months after the first meeting of the group of representatives convened under clause (i).
(iii) The Secretary shall use the recommendations from the group of representatives convened under clause (i) to provide technical assistance to two-year, degree-granting institutions of higher education in meeting the requirements of paragraph (1)(L) and subsection (e).
(iv) The Secretary may modify the information required to be disseminated or reported under paragraph (1)(L) or subsection (e) by a two-year, degree-granting institution of higher education—
(I) based on the recommendations received under this subparagraph from the group of representatives convened under clause (i);
(II) to include additional or alternative measures of student success if the goals of the provisions of paragraph (1)(L) and subsection (e) can be met through additional means or comparable alternatives; and
(III) during the period beginning on August 14, 2008, and ending on June 30, 2011.
(b) Exit counseling for borrowers
(1)(A) Each eligible institution shall, through financial aid offices or otherwise, provide counseling to borrowers of loans that are made, insured, or guaranteed under part B (other than loans made pursuant to
(i) information on the repayment plans available, including a description of the different features of each plan and sample information showing the average anticipated monthly payments, and the difference in interest paid and total payments, under each plan;
(ii) debt management strategies that are designed to facilitate the repayment of such indebtedness;
(iii) an explanation that the borrower has the options to prepay each loan, pay each loan on a shorter schedule, and change repayment plans;
(iv) for any loan forgiveness or cancellation provision of this subchapter, a general description of the terms and conditions under which the borrower may obtain full or partial forgiveness or cancellation of the principal and interest, and a copy of the information provided by the Secretary under
(v) for any forbearance provision of this subchapter, a general description of the terms and conditions under which the borrower may defer repayment of principal or interest or be granted forbearance, and a copy of the information provided by the Secretary under
(vi) the consequences of defaulting on a loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation;
(vii) information on the effects of using a consolidation loan under
(I) the effects of consolidation on total interest to be paid, fees to be paid, and length of repayment;
(II) the effects of consolidation on a borrower's underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities;
(III) the option of the borrower to prepay the loan or to change repayment plans; and
(IV) that borrower benefit programs may vary among different lenders;
(viii) a general description of the types of tax benefits that may be available to borrowers;
(ix) a notice to borrowers about the availability of the National Student Loan Data System and how the system can be used by a borrower to obtain information on the status of the borrower's loans; and
(x) an explanation that—
(I) the borrower may be contacted during the repayment period by third-party student debt relief companies;
(II) the borrower should use caution when dealing with those companies; and
(III) the services that those companies typically provide are already offered to borrowers free of charge through the Department or the borrower's servicer; and
(B) In the case of borrower who leaves an institution without the prior knowledge of the institution, the institution shall attempt to provide the information described in subparagraph (A) to the student in writing.
(2)(A) Each eligible institution shall require that the borrower of a loan made under part B, D, or E submit to the institution, during the exit interview required by this subsection—
(i) the borrower's expected permanent address after leaving the institution (regardless of the reason for leaving);
(ii) the name and address of the borrower's expected employer after leaving the institution;
(iii) the address of the borrower's next of kin; and
(iv) any corrections in the institution's records relating the borrower's name, address, social security number, references, and driver's license number.
(B) The institution shall, within 60 days after the interview, forward any corrected or completed information received from the borrower to the guaranty agency indicated on the borrower's student aid records.
(C) Nothing in this subsection shall be construed to prohibit an institution of higher education from utilizing electronic means to provide personalized exit counseling.
(c) Financial assistance information personnel
Each eligible institution shall designate an employee or group of employees who shall be available on a full-time basis to assist students or potential students in obtaining information as specified in subsection (a). The Secretary may, by regulation, waive the requirement that an employee or employees be available on a full-time basis for carrying out responsibilities required under this section whenever an institution in which the total enrollment, or the portion of the enrollment participating in programs under this subchapter at that institution, is too small to necessitate such employee or employees being available on a full-time basis. No such waiver may include permission to exempt any such institution from designating a specific individual or a group of individuals to carry out the provisions of this section.
(d) Departmental publication of descriptions of assistance programs
(1) The Secretary shall make available to eligible institutions, eligible lenders, and secondary schools descriptions of Federal student assistance programs including the rights and responsibilities of student and institutional participants, in order to (A) assist students in gaining information through institutional sources, and (B) assist institutions in carrying out the provisions of this section, so that individual and institutional participants will be fully aware of their rights and responsibilities under such programs. In particular, such information shall include information to enable students and prospective students to assess the debt burden and monthly and total repayment obligations that will be incurred as a result of receiving loans of varying amounts under this subchapter. Such information shall also include information on the various payment options available for student loans, including income-sensitive and income-based repayment plans for loans made, insured, or guaranteed under part B and income-contingent and income-based repayment plans for loans made under part D. In addition, such information shall include information to enable borrowers to assess the practical consequences of loan consolidation, including differences in deferment eligibility, interest rates, monthly payments, and finance charges, and samples of loan consolidation profiles to illustrate such consequences. The Secretary shall provide information concerning the specific terms and conditions under which students may obtain partial or total cancellation or defer repayment of loans for service, shall indicate (in terms of the Federal minimum wage) the maximum level of compensation and allowances that a student borrower may receive from a tax-exempt organization to qualify for a deferment, and shall explicitly state that students may qualify for such partial cancellations or deferments when they serve as a paid employee of a tax-exempt organization. The Secretary shall also provide information on loan forbearance, including the increase in debt that results from capitalization of interest. Such information shall be provided by eligible institutions and eligible lenders at any time that information regarding loan availability is provided to any student.
(2) The Secretary, to the extent the information is available, shall compile information describing State and other prepaid tuition programs and savings programs and disseminate such information to States, eligible institutions, students, and parents in departmental publications.
(3) The Secretary, to the extent practicable, shall update the Department's Internet site to include direct links to databases that contain information on public and private financial assistance programs. The Secretary shall only provide direct links to databases that can be accessed without charge and shall make reasonable efforts to verify that the databases included in a direct link are not providing fraudulent information. The Secretary shall prominently display adjacent to any such direct link a disclaimer indicating that a direct link to a database does not constitute an endorsement or recommendation of the database, the provider of the database, or any services or products of such provider. The Secretary shall provide additional direct links to information resources from which students may obtain information about fraudulent and deceptive practices in the provision of services related to student financial aid.
(4) The Secretary shall widely publicize the location of the information described in paragraph (1) among the public, eligible institutions, and eligible lenders, and promote the use of such information by prospective students, enrolled students, families of prospective and enrolled students, and borrowers.
(e) Disclosures required with respect to athletically related student aid
(1) Each institution of higher education which participates in any program under this subchapter and is attended by students receiving athletically related student aid shall annually submit a report to the Secretary which contains—
(A) the number of students at the institution of higher education who received athletically related student aid broken down by race and sex in the following sports: basketball, football, baseball, cross country/track, and all other sports combined;
(B) the number of students at the institution of higher education, broken down by race and sex;
(C) the completion or graduation rate for students at the institution of higher education who received athletically related student aid broken down by race and sex in the following sports: basketball, football, baseball, cross country/track and all other sports combined;
(D) the completion or graduation rate for students at the institution of higher education, broken down by race and sex;
(E) the average completion or graduation rate for the 4 most recent completing or graduating classes of students at the institution of higher education who received athletically related student aid broken down by race and sex in the following categories: basketball, football, baseball, cross country/track, and all other sports combined; and
(F) the average completion or graduation rate for the 4 most recent completing or graduating classes of students at the institution of higher education broken down by race and sex.
(2) When an institution described in paragraph (1) of this subsection offers a potential student athlete athletically related student aid, such institution shall provide to the student and the student's parents, guidance counselor, and coach the information contained in the report submitted by such institution pursuant to paragraph (1). If the institution is a member of a national collegiate athletic association that compiles graduation rate data on behalf of the association's member institutions that the Secretary determines is substantially comparable to the information described in paragraph (1), the distribution of the compilation of such data to all secondary schools in the United States shall fulfill the responsibility of the institution to provide information to a prospective student athlete's guidance counselor and coach.
(3) For purposes of this subsection, institutions may—
(A) exclude from the reporting requirements under paragraphs (1) and (2) the completion or graduation rates of students and student athletes who leave school to serve in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government; or
(B) in cases where the students described in subparagraph (A) represent 20 percent or more of the certificate- or degree-seeking, full-time, undergraduate students at the institution, calculate the completion or graduation rates of such students by excluding from the calculations described in paragraph (1) the time period during which such students were not enrolled due to their service in the Armed Forces, on official church missions, or with a recognized foreign aid service of the Federal Government.
(4) Each institution of higher education described in paragraph (1) may provide supplemental information to students and the Secretary showing the completion or graduation rate when such completion or graduation rate includes students transferring into and out of such institution.
(5) The Secretary, using the reports submitted under this subsection, shall compile and publish a report containing the information required under paragraph (1) broken down by—
(A) individual institutions of higher education; and
(B) athletic conferences recognized by the National Collegiate Athletic Association and the National Association of Intercollegiate Athletics.
(6) The Secretary shall waive the requirements of this subsection for any institution of higher education that is a member of an athletic association or athletic conference that has voluntarily published completion or graduation rate data or has agreed to publish data that, in the opinion of the Secretary, is substantially comparable to the information required under this subsection.
(7) The Secretary, in conjunction with the National Junior College Athletic Association, shall develop and obtain data on completion or graduation rates from two-year colleges that award athletically related student aid. Such data shall, to the extent practicable, be consistent with the reporting requirements set forth in this section.
(8) For purposes of this subsection, the term "athletically related student aid" means any scholarship, grant, or other form of financial assistance the terms of which require the recipient to participate in a program of intercollegiate athletics at an institution of higher education in order to be eligible to receive such assistance.
(9) The reports required by this subsection shall be due each July 1 and shall cover the 1-year period ending August 31 of the preceding year.
(f) Disclosure of campus security policy and campus crime statistics
(1) Each eligible institution participating in any program under this subchapter, other than a foreign institution of higher education, shall on August 1, 1991, begin to collect the following information with respect to campus crime statistics and campus security policies of that institution, and beginning September 1, 1992, and each year thereafter, prepare, publish, and distribute, through appropriate publications or mailings, to all current students and employees, and to any applicant for enrollment or employment upon request, an annual security report containing at least the following information with respect to the campus security policies and campus crime statistics of that institution:
(A) A statement of current campus policies regarding procedures and facilities for students and others to report criminal actions or other emergencies occurring on campus and policies concerning the institution's response to such reports.
(B) A statement of current policies concerning security and access to campus facilities, including campus residences, and security considerations used in the maintenance of campus facilities.
(C) A statement of current policies concerning campus law enforcement, including—
(i) the law enforcement authority of campus security personnel;
(ii) the working relationship of campus security personnel with State and local law enforcement agencies, including whether the institution has agreements with such agencies, such as written memoranda of understanding, for the investigation of alleged criminal offenses; and
(iii) policies which encourage accurate and prompt reporting of all crimes to the campus police and the appropriate law enforcement agencies, when the victim of such crime elects or is unable to make such a report.
(D) A description of the type and frequency of programs designed to inform students and employees about campus security procedures and practices and to encourage students and employees to be responsible for their own security and the security of others.
(E) A description of programs designed to inform students and employees about the prevention of crimes.
(F) Statistics concerning the occurrence on campus, in or on noncampus buildings or property, and on public property during the most recent calendar year, and during the 2 preceding calendar years for which data are available—
(i) of the following criminal offenses reported to campus security authorities or local police agencies:
(I) murder;
(II) sex offenses, forcible or nonforcible;
(III) robbery;
(IV) aggravated assault;
(V) burglary;
(VI) motor vehicle theft;
(VII) manslaughter;
(VIII) arson;
(IX) arrests or persons referred for campus disciplinary action for liquor law violations, drug-related violations, and weapons possession; and
(ii) of the crimes described in subclauses (I) through (VIII) of clause (i), of larceny-theft, simple assault, intimidation, and destruction, damage, or vandalism of property, and of other crimes involving bodily injury to any person, in which the victim is intentionally selected because of the actual or perceived race, gender, religion, national origin, sexual orientation, gender identity,,2 ethnicity, or disability of the victim that are reported to campus security authorities or local police agencies, which data shall be collected and reported according to category of prejudice; and
(iii) of domestic violence, dating violence, and stalking incidents that were reported to campus security authorities or local police agencies.
(G) A statement of policy concerning the monitoring and recording through local police agencies of criminal activity at off-campus student organizations which are recognized by the institution and that are engaged in by students attending the institution, including those student organizations with off-campus housing facilities.
(H) A statement of policy regarding the possession, use, and sale of alcoholic beverages and enforcement of State underage drinking laws and a statement of policy regarding the possession, use, and sale of illegal drugs and enforcement of Federal and State drug laws and a description of any drug or alcohol abuse education programs as required under
(I) A statement advising the campus community where law enforcement agency information provided by a State under section 14071(j) 3 of title 42, concerning registered sex offenders may be obtained, such as the law enforcement office of the institution, a local law enforcement agency with jurisdiction for the campus, or a computer network address.
(J) A statement of current campus policies regarding immediate emergency response and evacuation procedures, including the use of electronic and cellular communication (if appropriate), which policies shall include procedures to—
(i) immediately notify the campus community upon the confirmation of a significant emergency or dangerous situation involving an immediate threat to the health or safety of students or staff occurring on the campus, as defined in paragraph (6), unless issuing a notification will compromise efforts to contain the emergency;
(ii) publicize emergency response and evacuation procedures on an annual basis in a manner designed to reach students and staff; and
(iii) test emergency response and evacuation procedures on an annual basis.
(2) Nothing in this subsection shall be construed to authorize the Secretary to require particular policies, procedures, or practices by institutions of higher education with respect to campus crimes or campus security.
(3) Each institution participating in any program under this subchapter, other than a foreign institution of higher education, shall make timely reports to the campus community on crimes considered to be a threat to other students and employees described in paragraph (1)(F) that are reported to campus security or local law police agencies. Such reports shall be provided to students and employees in a manner that is timely, that withholds the names of victims as confidential, and that will aid in the prevention of similar occurrences.
(4)(A) Each institution participating in any program under this subchapter, other than a foreign institution of higher education, that maintains a police or security department of any kind shall make, keep, and maintain a daily log, written in a form that can be easily understood, recording all crimes reported to such police or security department, including—
(i) the nature, date, time, and general location of each crime; and
(ii) the disposition of the complaint, if known.
(B)(i) All entries that are required pursuant to this paragraph shall, except where disclosure of such information is prohibited by law or such disclosure would jeopardize the confidentiality of the victim, be open to public inspection within two business days of the initial report being made to the department or a campus security authority.
(ii) If new information about an entry into a log becomes available to a police or security department, then the new information shall be recorded in the log not later than two business days after the information becomes available to the police or security department.
(iii) If there is clear and convincing evidence that the release of such information would jeopardize an ongoing criminal investigation or the safety of an individual, cause a suspect to flee or evade detection, or result in the destruction of evidence, such information may be withheld until that damage is no longer likely to occur from the release of such information.
(5) On an annual basis, each institution participating in any program under this subchapter, other than a foreign institution of higher education, shall submit to the Secretary a copy of the statistics required to be made available under paragraph (1)(F). The Secretary shall—
(A) review such statistics and report to the authorizing committees on campus crime statistics by September 1, 2000;
(B) make copies of the statistics submitted to the Secretary available to the public; and
(C) in coordination with representatives of institutions of higher education, identify exemplary campus security policies, procedures, and practices and disseminate information concerning those policies, procedures, and practices that have proven effective in the reduction of campus crime.
(6)(A) In this subsection:
(i) The terms "dating violence", "domestic violence", and "stalking" have the meaning given such terms in
(ii) The term "campus" means—
(I) any building or property owned or controlled by an institution of higher education within the same reasonably contiguous geographic area of the institution and used by the institution in direct support of, or in a manner related to, the institution's educational purposes, including residence halls; and
(II) property within the same reasonably contiguous geographic area of the institution that is owned by the institution but controlled by another person, is used by students, and supports institutional purposes (such as a food or other retail vendor).
(iii) The term "noncampus building or property" means—
(I) any building or property owned or controlled by a student organization recognized by the institution; and
(II) any building or property (other than a branch campus) owned or controlled by an institution of higher education that is used in direct support of, or in relation to, the institution's educational purposes, is used by students, and is not within the same reasonably contiguous geographic area of the institution.
(iv) The term "public property" means all public property that is within the same reasonably contiguous geographic area of the institution, such as a sidewalk, a street, other thoroughfare, or parking facility, and is adjacent to a facility owned or controlled by the institution if the facility is used by the institution in direct support of, or in a manner related to the institution's educational purposes.
(v) The term "sexual assault" means an offense classified as a forcible or nonforcible sex offense under the uniform crime reporting system of the Federal Bureau of Investigation.
(B) In cases where branch campuses of an institution of higher education, schools within an institution of higher education, or administrative divisions within an institution are not within a reasonably contiguous geographic area, such entities shall be considered separate campuses for purposes of the reporting requirements of this section.
(7) The statistics described in clauses (i) and (ii) of paragraph (1)(F) shall be compiled in accordance with the definitions used in the uniform crime reporting system of the Department of Justice, Federal Bureau of Investigation, and the modifications in such definitions as implemented pursuant to the Hate Crime Statistics Act. For the offenses of domestic violence, dating violence, and stalking, such statistics shall be compiled in accordance with the definitions used in
(8)(A) Each institution of higher education participating in any program under this subchapter and title IV of the Economic Opportunity Act of 1964,3 other than a foreign institution of higher education, shall develop and distribute as part of the report described in paragraph (1) a statement of policy regarding—
(i) such institution's programs to prevent domestic violence, dating violence, sexual assault, and stalking; and
(ii) the procedures that such institution will follow once an incident of domestic violence, dating violence, sexual assault, or stalking has been reported, including a statement of the standard of evidence that will be used during any institutional conduct proceeding arising from such a report.
(B) The policy described in subparagraph (A) shall address the following areas:
(i) Education programs to promote the awareness of rape, acquaintance rape, domestic violence, dating violence, sexual assault, and stalking, which shall include—
(I) primary prevention and awareness programs for all incoming students and new employees, which shall include—
(aa) a statement that the institution of higher education prohibits the offenses of domestic violence, dating violence, sexual assault, and stalking;
(bb) the definition of domestic violence, dating violence, sexual assault, and stalking in the applicable jurisdiction;
(cc) the definition of consent, in reference to sexual activity, in the applicable jurisdiction;
(dd) safe and positive options for bystander intervention that may be carried out by an individual to prevent harm or intervene when there is a risk of domestic violence, dating violence, sexual assault, or stalking against a person other than such individual;
(ee) information on risk reduction to recognize warning signs of abusive behavior and how to avoid potential attacks; and
(ff) the information described in clauses (ii) through (vii); and
(II) ongoing prevention and awareness campaigns for students and faculty, including information described in items (aa) through (ff) of subclause (I).
(ii) Possible sanctions or protective measures that such institution may impose following a final determination of an institutional disciplinary procedure regarding rape, acquaintance rape, domestic violence, dating violence, sexual assault, or stalking.
(iii) Procedures victims should follow if a sex offense, domestic violence, dating violence, sexual assault, or stalking has occurred, including information in writing about—
(I) the importance of preserving evidence as may be necessary to the proof of criminal domestic violence, dating violence, sexual assault, or stalking, or in obtaining a protection order;
(II) to whom the alleged offense should be reported;
(III) options regarding law enforcement and campus authorities, including notification of the victim's option to—
(aa) notify proper law enforcement authorities, including on-campus and local police;
(bb) be assisted by campus authorities in notifying law enforcement authorities if the victim so chooses; and
(cc) decline to notify such authorities; and
(IV) where applicable, the rights of victims and the institution's responsibilities regarding orders of protection, no contact orders, restraining orders, or similar lawful orders issued by a criminal, civil, or tribal court.
(iv) Procedures for institutional disciplinary action in cases of alleged domestic violence, dating violence, sexual assault, or stalking, which shall include a clear statement that—
(I) such proceedings shall—
(aa) provide a prompt, fair, and impartial investigation and resolution; and
(bb) be conducted by officials who receive annual training on the issues related to domestic violence, dating violence, sexual assault, and stalking and how to conduct an investigation and hearing process that protects the safety of victims and promotes accountability;
(II) the accuser and the accused are entitled to the same opportunities to have others present during an institutional disciplinary proceeding, including the opportunity to be accompanied to any related meeting or proceeding by an advisor of their choice; and
(III) both the accuser and the accused shall be simultaneously informed, in writing, of—
(aa) the outcome of any institutional disciplinary proceeding that arises from an allegation of domestic violence, dating violence, sexual assault, or stalking;
(bb) the institution's procedures for the accused and the victim to appeal the results of the institutional disciplinary proceeding;
(cc) of any change to the results that occurs prior to the time that such results become final; and
(dd) when such results become final.
(v) Information about how the institution will protect the confidentiality of victims, including how publicly-available recordkeeping will be accomplished without the inclusion of identifying information about the victim, to the extent permissible by law.
(vi) Written notification of students and employees about existing counseling, health, mental health, victim advocacy, legal assistance, and other services available for victims both on-campus and in the community.
(vii) Written notification of victims about options for, and available assistance in, changing academic, living, transportation, and working situations, if so requested by the victim and if such accommodations are reasonably available, regardless of whether the victim chooses to report the crime to campus police or local law enforcement.
(C) A student or employee who reports to an institution of higher education that the student or employee has been a victim of domestic violence, dating violence, sexual assault, or stalking, whether the offense occurred on or off campus, shall be provided with a written explanation of the student or employee's rights and options, as described in clauses (ii) through (vii) of subparagraph (B).
(9) The Secretary, in consultation with the Attorney General of the United States, shall provide technical assistance in complying with the provisions of this section to an institution of higher education who requests such assistance.
(10) Nothing in this section shall be construed to require the reporting or disclosure of privileged information.
(11) The Secretary shall report to the appropriate committees of Congress each institution of higher education that the Secretary determines is not in compliance with the reporting requirements of this subsection.
(12) For purposes of reporting the statistics with respect to crimes described in paragraph (1)(F), an institution of higher education shall distinguish, by means of separate categories, any criminal offenses that occur—
(A) on campus;
(B) in or on a noncampus building or property;
(C) on public property; and
(D) in dormitories or other residential facilities for students on campus.
(13) Upon a determination pursuant to
(14)(A) Nothing in this subsection may be construed to—
(i) create a cause of action against any institution of higher education or any employee of such an institution for any civil liability; or
(ii) establish any standard of care.
(B) Notwithstanding any other provision of law, evidence regarding compliance or noncompliance with this subsection shall not be admissible as evidence in any proceeding of any court, agency, board, or other entity, except with respect to an action to enforce this subsection.
(15) The Secretary shall annually report to the authorizing committees regarding compliance with this subsection by institutions of higher education, including an up-to-date report on the Secretary's monitoring of such compliance.
(16)(A) The Secretary shall seek the advice and counsel of the Attorney General of the United States concerning the development, and dissemination to institutions of higher education, of best practices information about campus safety and emergencies.
(B) The Secretary shall seek the advice and counsel of the Attorney General of the United States and the Secretary of Health and Human Services concerning the development, and dissemination to institutions of higher education, of best practices information about preventing and responding to incidents of domestic violence, dating violence, sexual assault, and stalking, including elements of institutional policies that have proven successful based on evidence-based outcome measurements.
(17) No officer, employee, or agent of an institution participating in any program under this subchapter shall retaliate, intimidate, threaten, coerce, or otherwise discriminate against any individual for exercising their rights or responsibilities under any provision of this subsection.
(18) This subsection may be cited as the "Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act".
(g) Data required
(1) In general
Each coeducational institution of higher education that participates in any program under this subchapter, and has an intercollegiate athletic program, shall annually, for the immediately preceding academic year, prepare a report that contains the following information regarding intercollegiate athletics:
(A) The number of male and female full-time undergraduates that attended the institution.
(B) A listing of the varsity teams that competed in intercollegiate athletic competition and for each such team the following data:
(i) The total number of participants, by team, as of the day of the first scheduled contest for the team.
(ii) Total operating expenses attributable to such teams, except that an institution may also report such expenses on a per capita basis for each team and expenditures attributable to closely related teams such as track and field or swimming and diving, may be reported together, although such combinations shall be reported separately for men's and women's teams.
(iii) Whether the head coach is male or female and whether the head coach is assigned to that team on a full-time or part-time basis. Graduate assistants and volunteers who serve as head coaches shall be considered to be head coaches for the purposes of this clause.
(iv) The number of assistant coaches who are male and the number of assistant coaches who are female for each team and whether a particular coach is assigned to that team on a full-time or part-time basis. Graduate assistants and volunteers who serve as assistant coaches shall be considered to be assistant coaches for the purposes of this clause.
(C) The total amount of money spent on athletically related student aid, including the value of waivers of educational expenses, separately for men's and women's teams overall.
(D) The ratio of athletically related student aid awarded male athletes to athletically related student aid awarded female athletes.
(E) The total amount of expenditures on recruiting, separately for men's and women's teams overall.
(F) The total annual revenues generated across all men's teams and across all women's teams, except that an institution may also report such revenues by individual team.
(G) The average annual institutional salary of the head coaches of men's teams, across all offered sports, and the average annual institutional salary of the head coaches of women's teams, across all offered sports.
(H) The average annual institutional salary of the assistant coaches of men's teams, across all offered sports, and the average annual institutional salary of the assistant coaches of women's teams, across all offered sports.
(I)(i) The total revenues, and the revenues from football, men's basketball, women's basketball, all other men's sports combined and all other women's sports combined, derived by the institution from the institution's intercollegiate athletics activities.
(ii) For the purpose of clause (i), revenues from intercollegiate athletics activities allocable to a sport shall include (without limitation) gate receipts, broadcast revenues, appearance guarantees and options, concessions, and advertising, but revenues such as student activities fees or alumni contributions not so allocable shall be included in the calculation of total revenues only.
(J)(i) The total expenses, and the expenses attributable to football, men's basketball, women's basketball, all other men's sports combined, and all other women's sports combined, made by the institution for the institution's intercollegiate athletics activities.
(ii) For the purpose of clause (i), expenses for intercollegiate athletics activities allocable to a sport shall include (without limitation) grants-in-aid, salaries, travel, equipment, and supplies, but expenses such as general and administrative overhead not so allocable shall be included in the calculation of total expenses only.
(2) Special rule
For the purposes of paragraph (1)(G), if a coach has responsibilities for more than one team and the institution does not allocate such coach's salary by team, the institution should divide the salary by the number of teams for which the coach has responsibility and allocate the salary among the teams on a basis consistent with the coach's responsibilities for the different teams.
(3) Disclosure of information to students and public
An institution of higher education described in paragraph (1) shall make available to students and potential students, upon request, and to the public, the information contained in the report described in paragraph (1), except that all students shall be informed of their right to request such information.
(4) Submission; report; information availability
(A) On an annual basis, each institution of higher education described in paragraph (1) shall provide to the Secretary, within 15 days of the date that the institution makes available the report under paragraph (1), the information contained in the report.
(B) The Secretary shall ensure that the reports described in subparagraph (A) are made available to the public within a reasonable period of time.
(C) Not later than 180 days after October 7, 1998, the Secretary shall notify all secondary schools in all States regarding the availability of the information made available under paragraph (1), and how such information may be accessed.
(5) "Operating expenses" defined
For the purposes of this subsection, the term "operating expenses" means expenditures on lodging and meals, transportation, officials, uniforms and equipment.
(h) Transfer of credit policies
(1) Disclosure
Each institution of higher education participating in any program under this subchapter shall publicly disclose, in a readable and comprehensible manner, the transfer of credit policies established by the institution which shall include a statement of the institution's current transfer of credit policies that includes, at a minimum—
(A) any established criteria the institution uses regarding the transfer of credit earned at another institution of higher education; and
(B) a list of institutions of higher education with which the institution has established an articulation agreement.
(2) Rule of construction
Nothing in this subsection shall be construed to—
(A) authorize the Secretary or the National Advisory Committee on Institutional Quality and Integrity to require particular policies, procedures, or practices by institutions of higher education with respect to transfer of credit;
(B) authorize an officer or employee of the Department to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any institution of higher education, or over any accrediting agency or association;
(C) limit the application of the General Education Provisions Act [
(D) create any legally enforceable right on the part of a student to require an institution of higher education to accept a transfer of credit from another institution.
(i) Disclosure of fire safety standards and measures
(1) Annual fire safety reports on student housing required
Each eligible institution participating in any program under this subchapter that maintains on-campus student housing facilities shall, on an annual basis, publish a fire safety report, which shall contain information with respect to the campus fire safety practices and standards of that institution, including—
(A) statistics concerning the following in each on-campus student housing facility during the most recent calendar years for which data are available:
(i) the number of fires and the cause of each fire;
(ii) the number of injuries related to a fire that result in treatment at a medical facility;
(iii) the number of deaths related to a fire; and
(iv) the value of property damage caused by a fire;
(B) a description of each on-campus student housing facility fire safety system, including the fire sprinkler system;
(C) the number of regular mandatory supervised fire drills;
(D) policies or rules on portable electrical appliances, smoking, and open flames (such as candles), procedures for evacuation, and policies regarding fire safety education and training programs provided to students, faculty, and staff; and
(E) plans for future improvements in fire safety, if determined necessary by such institution.
(2) Report to the Secretary
Each institution described in paragraph (1) shall, on an annual basis, submit to the Secretary a copy of the statistics required to be made available under paragraph (1)(A).
(3) Current information to campus community
Each institution described in paragraph (1) shall—
(A) make, keep, and maintain a log, recording all fires in on-campus student housing facilities, including the nature, date, time, and general location of each fire; and
(B) make annual reports to the campus community on such fires.
(4) Responsibilities of the Secretary
The Secretary shall—
(A) make the statistics submitted under paragraph (1)(A) to the Secretary available to the public; and
(B) in coordination with nationally recognized fire organizations and representatives of institutions of higher education, representatives of associations of institutions of higher education, and other organizations that represent and house a significant number of students—
(i) identify exemplary fire safety policies, procedures, programs, and practices, including the installation, to the technical standards of the National Fire Protection Association, of fire detection, prevention, and protection technologies in student housing, dormitories, and other buildings;
(ii) disseminate the exemplary policies, procedures, programs and practices described in clause (i) to the Administrator of the United States Fire Administration;
(iii) make available to the public information concerning those policies, procedures, programs, and practices that have proven effective in the reduction of fires; and
(iv) develop a protocol for institutions to review the status of their fire safety systems.
(5) Rules of construction
Nothing in this subsection shall be construed to—
(A) authorize the Secretary to require particular policies, procedures, programs, or practices by institutions of higher education with respect to fire safety, other than with respect to the collection, reporting, and dissemination of information required by this subsection;
(B) affect section 444 of the General Education Provisions Act [
(C) create a cause of action against any institution of higher education or any employee of such an institution for any civil liability; or
(D) establish any standard of care.
(6) Compliance report
The Secretary shall annually report to the authorizing committees regarding compliance with this subsection by institutions of higher education, including an up-to-date report on the Secretary's monitoring of such compliance.
(7) Evidence
Notwithstanding any other provision of law, evidence regarding compliance or noncompliance with this subsection shall not be admissible as evidence in any proceeding of any court, agency, board, or other entity, except with respect to an action to enforce this subsection.
(j) Missing person procedures
(1) Option and procedures
Each institution of higher education that provides on-campus housing and participates in any program under this subchapter shall—
(A) establish a missing student notification policy for students who reside in on-campus housing that—
(i) informs each such student that such student has the option to identify an individual to be contacted by the institution not later than 24 hours after the time that the student is determined missing in accordance with official notification procedures established by the institution under subparagraph (B);
(ii) provides each such student a means to register confidential contact information in the event that the student is determined to be missing for a period of more than 24 hours;
(iii) advises each such student who is under 18 years of age, and not an emancipated individual, that the institution is required to notify a custodial parent or guardian not later 24 hours after the time that the student is determined to be missing in accordance with such procedures;
(iv) informs each such residing student that the institution will notify the appropriate law enforcement agency not later than 24 hours after the time that the student is determined missing in accordance with such procedures; and
(v) requires, if the campus security or law enforcement personnel has been notified and makes a determination that a student who is the subject of a missing person report has been missing for more than 24 hours and has not returned to the campus, the institution to initiate the emergency contact procedures in accordance with the student's designation; and
(B) establish official notification procedures for a missing student who resides in on-campus housing that—
(i) includes procedures for official notification of appropriate individuals at the institution that such student has been missing for more than 24 hours;
(ii) requires any official missing person report relating to such student be referred immediately to the institution's police or campus security department; and
(iii) if, on investigation of the official report, such department determines that the missing student has been missing for more than 24 hours, requires—
(I) such department to contact the individual identified by such student under subparagraph (A)(i);
(II) if such student is under 18 years of age, and not an emancipated individual, the institution to immediately contact the custodial parent or legal guardian of such student; and
(III) if subclauses (I) or (II) do not apply to a student determined to be a missing person, inform the appropriate law enforcement agency.
(2) Rule of construction
Nothing in this subsection shall be construed—
(A) to provide a private right of action to any person to enforce any provision of this subsection; or
(B) to create a cause of action against any institution of higher education or any employee of the institution for any civil liability.
(k) Notice to students concerning penalties for drug violations
(1) Notice upon enrollment
Each institution of higher education shall provide to each student, upon enrollment, a separate, clear, and conspicuous written notice that advises the student of the penalties under
(2) Notice after loss of eligibility
An institution of higher education shall provide in a timely manner to each student who has lost eligibility for any grant, loan, or work-study assistance under this subchapter as a result of the penalties listed under
(l) Entrance counseling for borrowers
(1) Disclosure required prior to disbursement
(A) In general
Each eligible institution shall, at or prior to the time of a disbursement to a first-time borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to
(i) shall be provided in a simple and understandable manner; and
(ii) may be provided—
(I) during an entrance counseling session conduction in person;
(II) on a separate written form provided to the borrower that the borrower signs and returns to the institution; or
(III) online, with the borrower acknowledging receipt of the information.
(B) Use of interactive programs
The Secretary shall encourage institutions to carry out the requirements of subparagraph (A) through the use of interactive programs that test the borrower's understanding of the terms and conditions of the borrower's loans under part B or D, using simple and understandable language and clear formatting.
(2) Information to be provided
The information to be provided to the borrower under paragraph (1)(A) shall include the following:
(A) To the extent practicable, the effect of accepting the loan to be disbursed on the eligibility of the borrower for other forms of student financial assistance.
(B) An explanation of the use of the master promissory note.
(C) Information on how interest accrues and is capitalized during periods when the interest is not paid by either the borrower or the Secretary.
(D) In the case of a loan made under
(E) The definition of half-time enrollment at the institution, during regular terms and summer school, if applicable, and the consequences of not maintaining half-time enrollment.
(F) An explanation of the importance of contacting the appropriate offices at the institution of higher education if the borrower withdraws prior to completing the borrower's program of study so that the institution can provide exit counseling, including information regarding the borrower's repayment options and loan consolidation.
(G) Sample monthly repayment amounts based on—
(i) a range of levels of indebtedness of—
(I) borrowers of loans under
(II) as appropriate, graduate borrowers of loans under
(ii) the average cumulative indebtedness of other borrowers in the same program as the borrower at the same institution.
(H) The obligation of the borrower to repay the full amount of the loan, regardless of whether the borrower completes or does not complete the program in which the borrower is enrolled within the regular time for program completion.
(I) The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation.
(J) Information on the National Student Loan Data System and how the borrower can access the borrower's records.
(K) The name of and contact information for the individual the borrower may contact if the borrower has any questions about the borrower's rights and responsibilities or the terms and conditions of the loan.
(m) Disclosures of reimbursements for service on advisory boards
(1) Disclosure
Each institution of higher education participating in any program under this subchapter shall report, on an annual basis, to the Secretary, any reasonable expenses paid or provided under
(A) the amount for each specific instance of reasonable expenses paid or provided;
(B) the name of the financial aid official, other employee, or agent to whom the expenses were paid or provided;
(C) the dates of the activity for which the expenses were paid or provided; and
(D) a brief description of the activity for which the expenses were paid or provided.
(2) Report to Congress
The Secretary shall summarize the information received from institutions of higher education under paragraph (1) in a report and transmit such report annually to the authorizing committees.
(
Amendment of Subsection (k)
Editorial Notes
References in Text
The Hate Crime Statistics Act, referred to in subsec. (f)(7), is
Title IV of the Economic Opportunity Act of 1964, referred to in subsec. (f)(8)(A), is title IV of
The General Education Provisions Act, referred to in subsec. (h)(2)(C), is title IV of
Section 264 of the Health Insurance Portability and Accountability Act of 1996, referred to in subsec. (i)(5)(B), is section 264 of title II of
Prior Provisions
A prior section 1092,
Another prior section 1092,
Amendments
2020—Subsec. (b)(1)(A)(viii), (x).
Subsec. (k).
2013—Subsec. (f)(1)(C)(iii).
Subsec. (f)(1)(F)(i)(VIII).
Subsec. (f)(1)(F)(ii).
Subsec. (f)(1)(F)(iii).
Subsec. (f)(3).
Subsec. (f)(6)(A).
Subsec. (f)(7).
Subsec. (f)(8).
Subsec. (f)(9).
Subsec. (f)(16).
Subsec. (f)(17).
2009—Subsec. (a)(1).
Subsec. (a)(1)(I).
Subsec. (a)(4)(B).
Subsec. (a)(7)(B)(iv).
Subsec. (e)(3)(B).
Subsec. (f)(1).
Subsec. (f)(3), (4)(A), (5), (8)(A).
Subsec. (g)(2).
Subsec. (i)(2), (3).
Subsec. (i)(5)(B).
Subsec. (k)(2).
Subsec. (l)(1)(A).
2008—Subsec. (a)(1)(G)(iv).
Subsec. (a)(1)(M).
"(i) obtain deferral of the repayment of the principal and interest for service under the Peace Corps Act (as established by the Peace Corps Act (
"(ii) obtain partial cancellation of the student loan for service under the Peace Corps Act (as established by the Peace Corps Act (
Subsec. (a)(1)(P) to (V).
Subsec. (a)(4).
Subsec. (a)(7).
Subsec. (b)(1)(A).
"(i) the average anticipated monthly repayments, a review of the repayment options available, and such debt and management strategies as the institution determines are designed to facilitate the repayment of such indebtedness; and
"(ii) the terms and conditions under which the student may obtain partial cancellation or defer repayment of the principal and interest pursuant to
Subsec. (d)(1).
Subsec. (d)(4).
Subsec. (e)(3).
Subsec. (f)(1).
Subsec. (f)(1)(C)(i) to (iii).
"(i) the enforcement authority of security personnel, including their working relationship with State and local police agencies; and
"(ii) policies which encourage accurate and prompt reporting of all crimes to the campus police and the appropriate police agencies."
Subsec. (f)(1)(F)(ii).
Subsec. (f)(1)(J).
Subsec. (f)(5)(A).
Subsec. (f)(15) to (18).
Subsec. (g)(4)(B) to (D).
"(i) summarize the information and identify trends in the information;
"(ii) aggregate the information by divisions of the National Collegiate Athletic Association; and
"(iii) contain information on each individual institution of higher education."
Subsecs. (h) to (l).
Subsec. (m).
2000—Subsec. (f)(1)(I).
1998—Subsec. (a)(1).
Subsec. (a)(1)(F).
"(i) to outstanding balances on loans under part B of this subchapter for the period of enrollment for which a refund is required,
"(ii) to outstanding balances on loans under part D of this subchapter for the period of enrollment for which a refund is required,
"(iii) to outstanding balances on loans under part E of this subchapter for the period of enrollment for which a refund is required,
"(iv) to awards under subpart 1 of part A of this subchapter,
"(v) to awards under subpart 3 of part A of this subchapter,
"(vi) to other student assistance, and
"(vii) to the student;".
Subsec. (a)(1)(O).
Subsec. (a)(3)(A).
Subsec. (a)(6).
Subsec. (b)(1)(A).
Subsec. (b)(2)(C).
Subsec. (d).
Subsec. (e)(2).
Subsec. (e)(9).
Subsec. (f)(1)(F).
"(i) murder;
"(ii) sex offenses, forcible or nonforcible;
"(iii) robbery;
"(iv) aggravated assault;
"(v) burglary; and
"(vi) motor vehicle theft."
Subsec. (f)(1)(H).
"(i) liquor law violations;
"(ii) drug abuse violations; and
"(iii) weapons possessions."
Subsec. (f)(1)(I).
Subsec. (f)(4).
Subsec. (f)(4)(A).
Subsec. (f)(4)(B), (C).
Subsec. (f)(5).
Subsec. (f)(5)(A).
"(i) any building or property owned or controlled by the institution of higher education within the same reasonably contiguous geographic area and used by the institution in direct support of, or related to its educational purposes; or
"(ii) any building or property owned or controlled by student organizations recognized by the institution."
Subsec. (f)(6).
Subsec. (f)(7), (8).
Subsec. (f)(9) to (15).
Subsec. (g)(1)(I), (J).
Subsec. (g)(4), (5).
1997—Subsec. (a)(3)(B).
Subsec. (e)(9).
1996—Subsec. (e)(9).
1994—Subsec. (g).
1993—Subsec. (a)(1)(F)(i) to (iii).
Subsec. (a)(1)(F)(iv).
Subsec. (a)(1)(F)(vi).
Subsec. (a)(1)(F)(vii).
Subsec. (a)(1)(F)(viii).
Subsec. (a)(1)(L).
Subsec. (a)(3)(A).
Subsec. (b)(1)(A), (2)(A).
Subsec. (d).
Subsec. (e)(9).
1992—Subsec. (a)(1)(F).
Subsec. (a)(1)(K).
Subsec. (a)(1)(L).
Subsec. (a)(1)(M).
Subsec. (a)(1)(N).
Subsec. (b).
Subsec. (f)(1)(F).
"(i) murder;
"(ii) rape;
"(iii) robbery;
"(iv) aggravated assault;
"(v) burglary; and
"(vi) motor vehicle theft."
Subsec. (f)(7).
1991—Subsec. (a)(1)(L).
Subsec. (a)(3)(A) to (C).
Subsec. (a)(5).
Subsec. (b).
Subsec. (f)(1).
1990—Subsec. (a)(1)(L).
Subsec. (a)(3), (4).
Subsec. (b)(3).
Subsec. (d).
Subsec. (e).
Subsec. (f).
1987—Subsec. (b).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Amendment by
Amendment by
Effective Date of 2013 Amendment
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2000 Amendment
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1997 Amendment
"(1)
"(2)
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by section 486(a), (b), and (c)(2) of
"(A) in the report required on September 1, 1992, include statistics concerning the occurrence on campus of offenses during the period from August 1, 1991, to July 31, 1992;
"(B) in the report required on September 1, 1993, include statistics concerning the occurrence on campus of offenses during (i) the period from August 1, 1991, to December 31, 1991, and (ii) the calendar year 1992;
"(C) in the report required on September 1, 1994, include statistics concerning the occurrence on campus of offenses during (i) the period from August 1, 1991, to December 31, 1991, and (ii) the calendar years 1992 and 1993; and
"(D) in the report required on September 1 of 1995 and each succeeding year, include statistics concerning the occurrence on campus of offenses during the three calendar years preceding the year in which the report is made."
Effective Date of 1990 Amendment
Effective Date of 1987 Amendment
Amendment by
Effective Date
Section effective Oct. 17, 1986, except as otherwise provided, see section 2 of
Subsec. (b) of this section applicable only to periods of enrollment beginning on or after July 1, 1987, see section 407(b) of
Regulations
Model Institution Financial Aid Offer Form
"(a)
"(1) not later than six months after the date of enactment of the Higher Education Opportunity Act [Aug. 14, 2008], convene a group of students, families of students, secondary school guidance counselors, representatives of institutions of higher education (including financial aid administrators, registrars, and business officers), and nonprofit consumer groups for the purpose of offering recommendations for improvements that—
"(A) can be made to financial aid offer forms; and
"(B) include the information described in subsection (b);
"(2) develop a model format for financial aid offer forms based on the recommendations of the group; and
"(3) not later than one year after the date of enactment of the Higher Education Opportunity Act—
"(A) submit recommendations to the authorizing committees (as defined in section 103 of the Higher Education Act of 1965 (
"(B) make the recommendations and model format widely available.
"(b)
"(1) Information on the student's cost of attendance, including the following:
"(A) Tuition and fees.
"(B) Room and board costs.
"(C) Books and supplies.
"(D) Transportation.
"(2) The amount of financial aid that the student does not have to repay, such as scholarships, grants, and work-study assistance, offered to the student for such year, and the conditions of such financial aid.
"(3) The types and amounts of loans under part B, D, or E of title IV of the Higher Education Act of 1965 (
"(4) The net amount that the student, or the student's family on behalf of the student, will have to pay for the student to attend the institution for such year, equal to—
"(A) the cost of attendance for the student for such year; minus
"(B) the amount of financial aid described in paragraphs (2) and (3) that is offered in the financial aid offer form.
"(5) Where a student or the student's family can seek additional information regarding the financial aid offered.
"(6) Any other information the Secretary of Education determines necessary so that students and parents can make informed student loan borrowing decisions."
Congressional Findings
"(1) participation in athletic pursuits plays an important role in teaching young Americans how to work on teams, handle challenges and overcome obstacles;
"(2) participation in athletic pursuits plays an important role in keeping the minds and bodies of young Americans healthy and physically fit;
"(3) there is increasing concern among citizens, educators, and public officials regarding the athletic opportunities for young men and women at institutions of higher education;
"(4) a recent study by the National Collegiate Athletic Association found that in Division I–A institutions, only 20 percent of the average athletic department operations budget of $1,310,000 is spent on women's athletics; 15 percent of the average recruiting budget of $318,402 is spent on recruiting female athletes; the average scholarship expenses for men is $1,300,000 and $505,246 for women; and an average of 143 grants are awarded to male athletes and 59 to women athletes;
"(5) female college athletes receive less than 18 percent of the athletics recruiting dollar and less than 24 percent of the athletics operating dollar;
"(6) male college athletes receive approximately $179,000,000 more per year in athletic scholarship grants than female college athletes;
"(7) prospective students and prospective student athletes should be aware of the commitments of an institution to providing equitable athletic opportunities for its men and women students; and
"(8) knowledge of an institution's expenditures for women's and men's athletic programs would help prospective students and prospective student athletes make informed judgments about the commitments of a given institution of higher education to providing equitable athletic benefits to its men and women students."
"(1) education is fundamental to the development of individual citizens and the progress of the Nation as a whole;
"(2) there is increasing concern among citizens, educators, and public officials regarding the academic performance of students at institutions of higher education;
"(3) a recent study by the National Institute of Independent Colleges and Universities found that just 43 percent of students attending 4-year public colleges and universities and 54 percent of students entering private institutions graduated within 6 years of enrolling;
"(4) the academic performance of student athletes, especially student athletes receiving football and basketball scholarships, has been a source of great concern in recent years;
"(5) more than 10,000 athletic scholarships are provided annually by institutions of higher education;
"(6) prospective students and prospective student athletes should be aware of the educational commitments of an institution of higher education; and
"(7) knowledge of graduation rates would help prospective students and prospective student athletes make an informed judgment about the educational benefits available at a given institution of higher education."
"(1) the reported incidence of crime, particularly violent crime, on some college campuses has steadily risen in recent years;
"(2) although annual 'National Campus Violence Surveys' indicate that roughly 80 percent of campus crimes are committed by a student upon another student and that approximately 95 percent of the campus crimes that are violent are alcohol- or drug-related, there are currently no comprehensive data on campus crimes;
"(3) out of 8,000 postsecondary institutions participating in Federal student aid programs, only 352 colleges and universities voluntarily provide crime statistics directly through the Uniform Crime Report of the Federal Bureau of Investigation, and other institutions report data indirectly, through local police agencies or States, in a manner that does not permit campus statistics to be separated;
"(4) several State legislatures have adopted or are considering legislation to require reporting of campus crime statistics and dissemination of security practices and procedures, but the bills are not uniform in their requirements and standards;
"(5) students and employees of institutions of higher education should be aware of the incidence of crime on campus and policies and procedures to prevent crime or to report occurrences of crime;
"(6) applicants for enrollment at a college or university, and their parents, should have access to information about the crime statistics of that institution and its security policies and procedures; and
"(7) while many institutions have established crime preventive measures to increase the safety of campuses, there is a clear need—
"(A) to encourage the development on all campuses of security policies and procedures;
"(B) for uniformity and consistency in the reporting of crimes on campus; and
"(C) to encourage the development of policies and procedures to address sexual assaults and racial violence on college campuses."
Executive Documents
Improving Repayment Options for Federal Student Loan Borrowers
Memorandum of President of the United States, June 7, 2012, 77 F.R. 35241, provided:
Memorandum for the Secretary of Education [and] the Secretary of the Treasury
More individuals than ever before are using student loans to finance college. Nearly two-thirds of college graduates borrow to pay for college, with an average debt upon graduation of about $26,300. While a college education remains an excellent investment, this debt can be overly burdensome, especially for recent graduates during the first few years of their careers.
The Income-Based Repayment (IBR) plan for Federal student loans currently allows former students to cap their student loan payments at 15 percent of their current discretionary income. This plan can be an effective tool for helping individuals to manage their debt, especially during challenging economic times.
Over the past several years, my Administration has worked to improve repayment options available to borrowers, including through passage of an enhanced Income-Based Repayment plan, which will cap a Federal student loan borrower's monthly payments at 10 percent of his or her discretionary income starting in 2014. And we are pursuing administrative action that may extend these lower payments to some students as soon as the end of this calendar year.
However, too few borrowers are aware of the options available to them to help manage their student loan debt, including reducing their monthly payment through IBR. Additionally, too many borrowers have had difficulties navigating and completing the IBR application process once they have started it.
For many borrowers, the most significant challenge in completing the IBR application has been the income-verification process, which, until recently, required borrowers to provide a signed copy of their income tax return. Although the Department of Education has recently removed some of the hurdles to completing the process, too many borrowers are still struggling to access this important repayment option due to difficulty in applying.
Therefore, by the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby direct the following:
(a) create integrated online and mobile resources for students and former students to use in learning about Federal student aid, including an explanation of (1) the current IBR plan, which allows student loan borrowers to cap their monthly loan payments at 15 percent of their discretionary income and be eligible to have their remaining loan balances forgiven after 25 years of responsible payments; and (2) the proposed Pay As You Earn plan, which will allow many students to cap their monthly loan repayments at 10 percent of their discretionary income and be eligible for loan forgiveness after 20 years of responsible repayment; and
(b) develop and make available to borrowers an online tool to help students make better financial decisions, including understanding their loan debt and its impact on their everyday lives. This tool should incorporate key elements of best practices in financial literacy and link to students' actual Federal loan data to help them understand their individual circumstances and options for repayment.
(i) the authority granted by law to an 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 memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This memorandum 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.
The Secretary of Education is hereby authorized and directed to publish this memorandum in the Federal Register.
Barack Obama.
Establishing a White House Task Force To Protect Students From Sexual Assault
Memorandum for the Heads of Executive Departments and Agencies
Memorandum of President of the United States, Jan. 22, 2014, 79 F.R. 4385, provided:
The prevalence of rape and sexual assault at our Nation's institutions of higher education is both deeply troubling and a call to action. Studies show that about one in five women is a survivor of attempted or completed sexual violence while in college. In addition, a substantial number of men experience sexual violence during college. Although schools have made progress in addressing rape and sexual assault, more needs to be done to ensure safe, secure environments for students of higher education.
There are a number of Federal laws aimed at making our campuses safer, and the Departments of Education and Justice have been working to enforce them. Among other requirements, institutions of higher education participating in Federal student financial assistance programs (institutions), including colleges, universities, community colleges, graduate and professional schools, for-profit schools, trade schools, and career and technical schools, must provide students with information on programs aimed at preventing rape and sexual assault, and on procedures for students to reporting rape and sexual assault. Institutions must also adopt and publish grievance procedures that provide for the prompt and equitable resolution of rape and sexual assault complaints, and investigate reports of rape and sexual assault and take swift action to prevent their recurrence. Survivors of rape and sexual assault must also be provided with information on how to access the support and services they need. Reports show, however, that institutions' compliance with these Federal laws is uneven and, in too many cases, inadequate. Building on existing enforcement efforts, we must strengthen and address compliance issues and provide institutions with additional tools to respond to and address rape and sexual assault.
Therefore, I am directing the Office of the Vice President and the White House Council on Women and Girls to lead an interagency effort to address campus rape and sexual assault, including coordinating Federal enforcement efforts by executive departments and agencies (agencies) and helping institutions meet their obligations under Federal law. To these ends, it is hereby ordered as follows:
(a) Membership of the Task Force. In addition to the Co-Chairs, the Task Force shall consist of the following members:
(i) the Attorney General;
(ii) the Secretary of the Interior;
(iii) the Secretary of Health and Human Services;
(iv) the Secretary of Education;
(v) the Director of the Office of Science and Technology Policy;
(vi) the Director of the Domestic Policy Council;
(vii) the Cabinet Secretary; and
(viii) the heads of agencies or offices as the Co-Chairs may designate.
(b) A member of the Task Force may designate, to perform the Task Force functions of the member, senior officials who are part of the member's agency or office, and who are full-time officers or employees of the Federal Government.
(i) providing institutions with evidence-based best and promising practices for preventing and responding to rape and sexual assault;
(ii) building on the Federal Government's existing enforcement efforts to ensure that institutions comply fully with their legal obligations to prevent and respond to rape and sexual assault;
(iii) increasing the transparency of the Federal Government's enforcement activities concerning rape and sexual assault, consistent with applicable law and the interests of affected students;
(iv) broadening the public's awareness of individual institutions' compliance with their legal obligation to address rape and sexual assault; and
(v) facilitating coordination among agencies engaged in addressing rape and sexual assault and those charged with helping bring institutions into compliance with the law.
(b) In accordance with applicable law and in addition to regular meetings, the Task Force shall consult with external stakeholders, including institution officials, student groups, parents, athletic and educational associations, local rape crisis centers, and law enforcement agencies.
(c) Because rape and sexual assault also occur in the elementary and secondary school context, the Task Force shall evaluate how its proposals and recommendations may apply to, and may be implemented by, schools, school districts, and other elementary and secondary educational entities receiving Federal financial assistance.
(i) providing examples of instructions, policies, and protocols for institutions, including: rape and sexual assault policies; prevention programs; crisis intervention and advocacy services; complaint and grievance procedures; investigation protocols; adjudicatory procedures; disciplinary sanctions; and training and orientation modules for students, staff, and faculty;
(ii) measuring the success of prevention and response efforts at institutions, whether through compliance with individual policies or through broader assessments of campus climate, attitudes and safety, and providing the public with this information;
(iii) maximizing the Federal Government's effectiveness in combatting campus rape and sexual assault by, among other measures, making its enforcement activities transparent and accessible to students and prospective students nationwide; and
(iv) promoting greater coordination and consistency among the agencies and offices that enforce the Federal laws addressing campus rape and sexual assault and support improved campus responses to sexual violence.
(b) Within 1 year of the date of this memorandum, and then on an annual basis, the Task Force shall provide a report to the President on implementation efforts with respect to this memorandum.
(b) Nothing in this memorandum shall be construed to impair or otherwise affect:
(i) the authority granted by law to an 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.
(c) The heads of agencies and offices shall assist and provide information to the Task Force, consistent with applicable law, as may be necessary to carry out the functions of the Task Force. Each agency and office shall bear its own expenses of participating in the Task Force.
(d) This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
(e) The Secretary of Education is authorized and directed to publish this memorandum in the Federal Register.
Barack Obama.
Helping Struggling Federal Student Loan Borrowers Manage Their Debt
Memorandum of President of the United States, June 9, 2014, 79 F.R. 33843, provided:
Memorandum for the Secretary of the Treasury[, and] the Secretary of Education
A college education is the single most important investment that Americans can make in their futures. College remains a good investment, resulting in higher earnings and a lower risk of unemployment. Unfortunately, for many low- and middle-income families, college is slipping out of reach. Over the past three decades, the average tuition at a public four-year college has more than tripled, while a typical family's income has increased only modestly. More students than ever are relying on loans to pay for college. Today, 71 percent of those earning a bachelor's degree graduate with debt, which averages $29,400. While most students are able to repay their loans, many feel burdened by debt, especially as they seek to start a family, buy a home, launch a business, or save for retirement.
Over the past several years, my Administration has worked to ensure that college remains affordable and student debt is manageable, including through raising the maximum Pell Grant award by nearly $1,000, creating the American Opportunity Tax Credit, and expanding access to student loan repayment plans, where monthly obligations are calibrated to a borrower's income and debt. These income-driven repayment plans, like my Pay As You Earn plan, which caps a Federal student loan borrower's payments at 10 percent of income, can be an effective tool to help individuals manage their debt, and pursue their careers while avoiding consequences of defaulting on a Federal student loan, such as a damaged credit rating, a tax refund offset, or garnished wages.
While my Administration has made significant strides in expanding repayment options available to borrowers and building awareness of income-driven repayment plans, more needs to be done. Currently, not all student borrowers of Federal Direct Loans can cap their monthly loan payments at 10 percent of income, and too many struggling borrowers are still unaware of the options available to them to help responsibly manage their debt.
Therefore, by the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby direct the following:
(i) the authority granted by law to an 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 memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This memorandum 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.
(d) The Secretary of Education is hereby authorized and directed to publish this memorandum in the Federal Register.
Barack Obama.
Student Aid Bill of Rights To Help Ensure Affordable Loan Repayment
Memorandum of President of the United States, Mar. 10, 2015, 80 F.R. 13475, provided:
Memorandum for the Secretary of the Treasury[,] the Secretary of Education[,] the Commissioner of Social Security[,] the Director of the Consumer Financial Protection Bureau[,] the Director of the Office of Management and Budget[,] the Director of the Office of Science and Technology Policy[, and] the Director of the Domestic Policy Council
America thrived in the 20th century in large part because we had the most educated workforce in the world. Today, more than ever, Americans need knowledge and skills to meet the demands of a growing global economy. Since many students borrow to pay for postsecondary education, it is imperative they be able to manage their debt as they embark on their careers.
My Administration has taken historic action to ensure that college remains affordable and student debt remains manageable. We have eliminated tens of billions of dollars in student loan subsidies paid to banks in order to increase the maximum Pell grant by nearly $1,000 and provide a path for borrowers to limit payments on many student loans to 10 percent of income, and we have worked with the Congress to enact the American Opportunity Tax Credit, worth $10,000 over 4 years of college. We have promoted innovation and competition to bring down college costs, increased completion rates, and given consumers clear, transparent information on college performance.
College remains an excellent investment, and student loans enable many who could not otherwise do so to access further education. However, there is more work to do to help students repay their loans responsibly. In 2013, college graduates owed an average of $28,400 in Federal and private loans. More than one in eight Federal borrowers default on their loans within 3 years of leaving school. My Administration has already put in place significant protections that ensure borrowers with credit cards and mortgages are treated fairly. We can and should do much more to give students affordable ways to meet their responsibilities and repay their loans.
Now is the time for stronger protections for the more than 40 million Americans with student loan debt. All student loan borrowers should have access to an efficient and responsive complaint and feedback system that holds loan servicers accountable and promotes transparency, the information and flexibility they need to repay their loan responsibly and avoid default, and protections to ensure that they will be treated fairly even if they struggle to repay their loans.
Therefore, by the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby direct the following:
(a) Complaints and Feedback Regarding Federal Financial Aid. By July 1, 2016, the Secretary of Education shall develop and implement a simple process for borrowers to file complaints regarding Federal financial aid, including those pertaining to lenders, loan servicers, private collection agencies, and institutions of higher education. The process shall allow people to file a complaint and monitor its progress toward resolution. In addition, the Department of Education will provide data from the complaint system to other enforcement agencies that are responsible for oversight of Federal student loan lenders, loan servicers, private collection agencies, and institutions of higher education. By October 1, 2017, and annually thereafter, the Department of Education shall publish a report summarizing and analyzing the content in and resolution of borrower complaints and feedback received through the process. By October 1, 2015, the Secretary of Education shall report to the President, through the Director of the Domestic Policy Council and the Director of the Office of Management and Budget, on the optimal way to address other student complaints regarding institutions of higher education that participate in Federal student financial aid programs.
(b) Coordination Among Other Enforcement Agencies. By October 1, 2015, the Secretary of Education shall, in consultation with the Director of the Consumer Financial Protection Bureau, recommend to the President, through the Director of the Domestic Policy Council and the Director of the Office of Management and Budget, a process for sharing information with relevant enforcement agencies so that those enforcement agencies may refer matters where there may be violations of consumer protection law.
(a) Higher Standards for Federal Direct Loan Servicing. By January 1, 2016, the Secretary of Education shall require all Federal Direct student loan servicers to provide enhanced disclosures to borrowers and strengthened consumer protections. These disclosures and consumer protections shall be improved throughout the loan repayment process, and shall include disclosures to borrowers regarding loan transfers from one servicer to another and notifications when borrowers become delinquent or have incomplete applications to change repayment plans. As soon as practicable, the Secretary shall direct all Federal Direct student loan servicers to apply prepayments to loans with the highest interest rate to ensure consistency across servicers, unless otherwise instructed by borrowers.
(b) Regular Review of Student Loan Performance and Borrower Trends. The Director of the Office of Management and Budget and the Secretary of Education shall convene quarterly an interagency task force consisting of the Department of the Treasury, Department of Education, Office of Management and Budget, and Domestic Policy Council to monitor trends in the student loan portfolio, budget costs, and borrower assistance efforts. No later than August 1, 2015, the task force shall review recommendations for the Department of Education from its members and the Consumer Financial Protection Bureau on best practices in performance-based contracting to better ensure that servicers help borrowers responsibly make affordable monthly payments on their student loans.
(c) Additional Protections for Student Loan Borrowers. By October 1, 2015, the Secretary of Education, in consultation with the Secretary of the Treasury and the Director of the Consumer Financial Protection Bureau, shall issue a report to the President, through the Director of the Domestic Policy Council and the Director of the Office of Management and Budget, on (i) whether statutory or regulatory changes are needed to current provisions that permit the Secretary of Education to specify acts or omissions at institutions of higher education that borrowers may assert as a defense to repayment of a direct loan; and (ii) after assessing the potential applicability of consumer protections in the mortgage and credit card markets to student loans, recommendations for statutory or regulatory changes in this area, including, where appropriate, strong servicing standards, flexible repayment opportunities for all student loan borrowers, and changes to bankruptcy laws.
(d) Higher Customer Service Standards in Income-Driven Repayment Plans. By October 1, 2015, the Secretary of Education and the Secretary of the Treasury shall report to the President, through the Director of the Domestic Policy Council and the Director of the Office of Management and Budget, on the feasibility of developing a system to give borrowers the opportunity to authorize the Internal Revenue Service to release income information for multiple years for the purposes of automatically determining monthly payments under income-driven repayment plans.
(e) Finding New and Better Ways to Communicate with Student Loan Borrowers. By January 1, 2016, the Secretary of Education shall report to the President, through the Director of the Domestic Policy Council, on the findings of a pilot program to test new methods for communicating with borrowers who have Federal Direct student loans on which they are at least 140 days delinquent but which have not entered default. By January 1, 2017, the Secretary shall also, in consultation with the Director of the White House Office of Science and Technology Policy, develop and implement at least five behaviorally designed pilot programs to identify the most effective ways to communicate with borrowers to maximize successful borrower repayment and help reduce delinquency and default and report to the President, through the Director of the Domestic Policy Council, on the status and results of those pilot programs.
(f) Making it Easier for Federal Direct Student Loan Borrowers to Repay Their Student Loans. As soon as practicable, the Secretary of Education shall establish a centralized point of access for all Federal student loan borrowers in repayment, including a central location for account information and payment processing for all Federal student loan servicing, regardless of the specific servicer.
(a) Raising Standards for Student Loan Debt Collectors. By July 1, 2015, the Secretary of Education shall implement actions to ensure that the debt collection process for defaulted Federal student loans is fair, transparent, charges reasonable fees to defaulted borrowers, and effectively assists borrowers in meeting their obligations and returning to good standing. By January 1, 2016, the Secretary of Education shall publish a quarterly performance report on the Department's private debt collection agency contractors that includes the underlying data, disaggregated by contractor.
(b) Providing Clarity on the Rights of Borrowers in Bankruptcy. By July 1, 2015, the Secretary of Education shall issue information highlighting factors the courts have used in their determination of undue hardship, to assist parties who must determine whether to contest an undue hardship discharge in bankruptcy of a Federal student loan.
(c) Protecting Social Security Benefits for Borrowers with Disabilities. By July 1, 2015, the Secretary of Education and the Director of the Office of Management and Budget, in consultation with the Commissioner of Social Security, shall develop a plan to identify Federal student loan borrowers who receive Social Security Disability Insurance (SSDI) and determine which beneficiaries qualify for a total and permanent disability discharge of their student loans under the Higher Education Act of 1965. The plan shall specify a process for the Secretary of Education to stop collection on qualified borrowers in order to ensure that SSDI benefits are not reduced to repay student loans that are eligible for discharge. In addition, the Secretary of Education and the Director of the Office of Management and Budget, in consultation with the Commissioner of Social Security, shall identify the best way to communicate with other SSDI recipients who hold student loans about their repayment options, including income-driven plans, and assist them in entering those plans.
(d) Debt Collection Pilot Program. By July 1, 2016, the Secretary of the Treasury, in consultation with the Secretary of Education, shall report to the President, through the Director of the Domestic Policy Council and the Director of the Office of Management and Budget, on the initial findings of an ongoing pilot program that uses the Department of the Treasury's Bureau of the Fiscal Service to collect on a sample of defaulted Federal student loan debts to help determine how to improve the collection process for defaulted Federal student loans.
(i) the authority granted by law to an 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 memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This memorandum 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.
(d) The Secretary of Education is hereby authorized and directed to publish this memorandum in the Federal Register.
Barack Obama.
1 So in original. Probably should be capitalized.
3 See References in Text note below.
§1092a. Combined payment plan
(a) Eligibility for plan
Upon the request of the borrower, a lender described in subparagraph (A), (B), or (C) of
(b) Applicability of other requirements
A lender offering a combined payment plan shall comply with all provisions of
(c) Lender eligibility
Such lender may offer a combined payment plan only if—
(1) the lender holds an outstanding loan of that borrower which is selected by the borrower for incorporation into a combined payment plan pursuant to this section (including loans which are selected by the borrower for consolidation under this section); or
(2) the borrower certifies that the borrower has sought and has been unable to obtain a combined payment plan from the holders of the outstanding loans of that borrower.
(d) Borrower selection of competing offers
In the case of multiple offers by lenders to administer a combined payment plan for a borrower, the borrower shall select from among them the lender to administer the combined payment plan including its loan consolidation component.
(e) Effect of plan
Upon selection of a lender to administer the combined payment plan, the lender may reissue any loan under part A of title VII of the Public Health Service Act (
(1) the lender selected to administer the combined payment plan has determined to its satisfaction, in accordance with reasonable and prudent business practices, for each loan being reissued (A) that the loan is a legal, valid, and binding obligation of the borrower; (B) that each such loan was made and serviced in compliance with applicable laws and regulations; and (C) the insurance on such loan is in full force and effect; and
(2) the loan being reissued was not in default (as defined in section 707(e)(3) of the Public Health Service Act [
(f) Notes and insurance certificates
(1) Each loan reissued under subsection (e) shall be evidenced by a note executed by the borrower. The Secretary of Health and Human Services shall insure such loan under a certificate of comprehensive insurance with no insurance limit, but any such certificate shall only be issued to an authorized holder of loans insured under part A of title VII of the Public Health Service Act (
(2) Except as otherwise specifically provided for under the provisions of this section, the terms of any reissued loan shall be the same as the terms of the original loan. The maximum repayment period for a loan reissued under this section shall not exceed the remainder of the period which would have been permitted on the original loan. If the lender holds more than one loan insured under part A of title VII of the Public Health Service Act (
(g) Termination of borrower eligibility
The status of an individual as an eligible combined payment plan borrower terminates upon receipt of a combined payment plan.
(h) Fees and premiums
No origination fee or insurance premium shall be charged to the borrower on any combined payment plan, and no origination fee or insurance premium shall be payable by the lender to the Secretary of Health and Human Services.
(i) Commencement of repayment
Repayment of a combined payment plan shall commence within 60 days after the later of the date of acceptance of the lender's offer to administer a combined payment plan, the making of the consolidation loan or the reissuance of any Health Education Assistance Loans pursuant to subsection (e).
(
Editorial Notes
References in Text
The Public Health Service Act, referred to in subsecs. (a), (b), (e), and (f), is act July 1, 1944, ch. 373,
Amendments
2009—Subsec. (a).
Subsec. (b).
Subsec. (e).
Subsec. (e)(2).
Subsec. (f)(1).
Subsec. (f)(2).
1987—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
1 See References in Text note below.
§1092b. National Student Loan Data System
(a) Development of System
The Secretary shall consult with a representative group of guaranty agencies, eligible lenders, and eligible institutions to develop a mutually agreeable proposal for the establishment of a National Student Loan Data System containing information regarding loans made, insured, or guaranteed under part B and loans made under parts D and E, and for allowing the electronic exchange of data between program participants and the system. In establishing such data system, the Secretary shall place a priority on providing for the monitoring of enrollment, student status, information about current loan holders and servicers, and internship and residency information. Such data system shall also permit borrowers to use the system to identify the current loan holders and servicers of such borrower's loan not later than one year after October 7, 1998. The information in the data system shall include (but is not limited to)—
(1) the amount and type of each such loan made;
(2) the names and social security numbers of the borrowers;
(3) the guaranty agency responsible for the guarantee of the loan;
(4) the institution of higher education or organization responsible for loans made under parts D and E;
(5) the exact amount of loans partially or totally canceled or in deferment for service under the Peace Corps Act (
(6) the eligible institution in which the student was enrolled or accepted for enrollment at the time the loan was made, and any additional institutions attended by the borrower;
(7) the total amount of loans made to any borrower and the remaining balance of the loans;
(8) the lender, holder, and servicer of such loans;
(9) information concerning the date of any default on the loan and the collection of the loan, including any information concerning the repayment status of any defaulted loan on which the Secretary has made a payment pursuant to
(10) information regarding any deferments or forbearance granted on such loans; and
(11) the date of cancellation of the note upon completion of repayment by the borrower of the loan or payment by the Secretary pursuant to
(b) Additional information
For the purposes of research and policy analysis, the proposal shall also contain provisions for obtaining additional data concerning the characteristics of borrowers and the extent of student loan indebtedness on a statistically valid sample of borrowers under part B. Such data shall include—
(1) information concerning the income level of the borrower and his family and the extent of the borrower's need for student financial assistance, including loans;
(2) information concerning the type of institution attended by the borrower and the year of the program of education for which the loan was obtained;
(3) information concerning other student financial assistance received by the borrower; and
(4) information concerning Federal costs associated with the student loan program under part B, including the costs of interest subsidies, special allowance payments, and other subsidies.
(c) Verification
The Secretary may require lenders, guaranty agencies, or institutions of higher education to verify information or obtain eligibility or other information through the National Student Loan Data System prior to making, guaranteeing, or certifying a loan made under part B, D, or E.
(d) Principles for administering the data system
In managing the National Student Loan Data System, the Secretary shall take actions necessary to maintain confidence in the data system, including, at a minimum—
(1) ensuring that the primary purpose of access to the data system by guaranty agencies, eligible lenders, and eligible institutions of higher education is for legitimate program operations, such as the need to verify the eligibility of a student, potential student, or parent for loans under part B, D, or E;
(2) prohibiting nongovernmental researchers and policy analysts from accessing personally identifiable information;
(3) creating a disclosure form for students and potential students that is distributed when such students complete the common financial reporting form under
(A) informs the students that any subchapter IV grant or loan the students receive will be included in the National Student Loan Data System, and instructs the students on how to access that information;
(B) describes the categories of individuals or entities that may access the data relating to such grant or loan through the data system, and for what purposes access is allowed;
(C) defines and explains the categories of information included in the data system;
(D) provides a summary of the provisions of
(E) explains the measures taken by the Department to safeguard the students' data; and
(F) includes other information as determined appropriate by the Secretary;
(4) requiring guaranty agencies, eligible lenders, and eligible institutions of higher education that enter into an agreement with a potential student, student, or parent of such student regarding a loan under part B, D, or E, to inform the student or parent that such loan shall be—
(A) submitted to the data system; and
(B) accessible to guaranty agencies, eligible lenders, and eligible institutions of higher education determined by the Secretary to be authorized users of the data system;
(5) regularly reviewing the data system to—
(A) delete inactive users from the data system;
(B) ensure that the data in the data system are not being used for marketing purposes; and
(C) monitor the use of the data system by guaranty agencies and eligible lenders to determine whether an agency or lender is accessing the records of students in which the agency or lender has no existing financial interest;
(6) developing standardized protocols for limiting access to the data system that include—
(A) collecting data on the usage of the data system to monitor whether access has been or is being used contrary to the purposes of the data system;
(B) defining the steps necessary for determining whether, and how, to deny or restrict access to the data system; and
(C) determining the steps necessary to reopen access to the data system following a denial or restriction of access; and
(7) preventing access to the data system and any other system used to administer a program under this subchapter by any person or entity for the purpose of assisting a student in managing loan repayment or applying for any repayment plan, consolidation loan, or other benefit authorized by this subchapter, unless such access meets the requirements described in subsection (e).
(e) Requirements for third-party data system access
(1) In general
As provided in paragraph (7) of subsection (d), an authorized person or entity described in paragraph (2) may access the data system and any other system used to administer a program under this subchapter if that access—
(A) is in compliance with terms of service, information security standards, and a code of conduct which shall be established by the Secretary and published in the Federal Register;
(B) is obtained using an access device (as defined in
(C) is obtained without using any access device (as defined in
(2) Authorized person or entity
An authorized person or entity described in this paragraph means—
(A) a guaranty agency, eligible lender, or eligible institution, or a third-party organization acting on behalf of a guaranty agency, eligible lender, or eligible institution, that is in compliance with applicable Federal law (including regulations and guidance); or
(B) a licensed attorney representing a student, borrower, or parent, or another individual who works for a Federal, State, local, or Tribal government or agency, or for a nonprofit organization, providing financial or student loan repayment counseling to a student, borrower, or parent, if—
(i) that attorney or other individual has never engaged in unfair, deceptive, or abusive practices, as determined by the Secretary;
(ii) that attorney or other individual does not work for an entity that has engaged in unfair, deceptive, or abusive practices (including an entity that is owned or operated by a person or entity that engaged in such practices), as determined by the Secretary;
(iii) system access is provided only through a separate point of entry; and
(iv) the attorney or other individual has consent from the relevant student, borrower, or parent to access the system.
(f) Reports to Congress
(1) Annual report
Not later than September 30 of each fiscal year, the Secretary shall prepare and submit to the authorizing committees a report describing—
(A) the effectiveness of existing privacy safeguards in protecting student, borrower, and parent information in the data system;
(B) the success of any new authorization protocols in more effectively preventing abuse of the data system;
(C) the reduction in improper data system access as described in subsection (d)(7);
(D) the ability of the Secretary to monitor how the system is being used, relative to the intended purposes of the data system; and
(E) any protocols, codes of conduct, terms of service, or information security standards developed under paragraphs (6) or (7) of subsection (d) during the preceding fiscal year.
(2) Study
(A) In general
The Secretary shall conduct a study regarding—
(i) available mechanisms for providing students and parents with the ability to opt in or opt out of allowing eligible lenders to access their records in the National Student Loan Data System; and
(ii) appropriate protocols for limiting access to the data system, based on the risk assessment required under subchapter III of
(B) Submission of study
Not later than three years after August 14, 2008, the Secretary shall prepare and submit a report on the findings of the study under subparagraph (A) to the authorizing committees.
(g) Standardization of data reporting
(1) In general
The Secretary shall by regulation prescribe standards and procedures (including relevant definitions) that require all lenders and guaranty agencies to report information on all aspects of loans made under this subchapter in uniform formats in order to permit the direct comparison of data submitted by individual lenders, servicers or guaranty agencies.
(2) Activities
For the purpose of establishing standards under this section, the Secretary shall—
(A) consult with guaranty agencies, lenders, institutions of higher education, and organizations representing the groups described in paragraph (1);
(B) develop standards designed to be implemented by all guaranty agencies and lenders with minimum modifications to existing data processing hardware and software; and
(C) publish the specifications selected to be used to encourage the automation of exchanges of information between all parties involved in loans under this subchapter.
(h) Common identifiers
The Secretary shall, not later than July 1, 1993—
(1) revise the codes used to identify institutions and students in the student loan data system authorized by this section to make such codes consistent with the codes used in each database used by the Department of Education that contains information of participation in programs under this subchapter; and
(2) modify the design or operation of the system authorized by this section to ensure that data relating to any institution is readily accessible and can be used in a form compatible with the integrated postsecondary education data system (IPEDS).
(i) Integration of databases
The Secretary shall integrate the National Student Loan Data System with the Pell Grant applicant and recipient databases as of January 1, 1994, and any other databases containing information on participation in programs under this subchapter.
(
Editorial Notes
References in Text
The Peace Corps Act, referred to in subsec. (a)(5), is
The Domestic Volunteer Service Act of 1973, referred to in subsec. (a)(5), is
Amendments
2020—Subsec. (d)(7).
Subsec. (e).
Subsec. (f).
Subsec. (f)(1)(A).
Subsec. (f)(1)(C), (D).
Subsec. (f)(1)(E).
Subsecs. (g), (h).
2009—Subsec. (a)(5).
Subsec. (d)(3)(D).
2008—Subsec. (a)(5).
Subsec. (a)(6).
Subsec. (a)(7) to (11).
Subsec. (d).
Subsec. (e).
Subsecs. (f) to (h).
1998—Subsec. (a).
1993—Subsec. (a).
Subsec. (a)(4).
Subsec. (c).
Subsec. (e)(1), (2)(C).
1992—Subsec. (a).
Subsecs. (e) to (g).
1990—Subsec. (a)(5).
1989—
1987—Subsec. (b)(1).
Subsec. (b)(2)(D).
Subsec. (b)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
§1092c. Simplification of lending process for borrowers
(a) All like loans treated as one
To the extent practicable, and with the cooperation of the borrower, eligible lenders shall treat all loans made to a borrower under the same section of part B as one loan and shall submit one bill to the borrower for the repayment of all such loans for the monthly or other similar period of repayment. Any deferments on one such loan will be considered a deferment on the total amount of all such loans.
(b) One lender, one guaranty agency
To the extent practicable, and with the cooperation of the borrower, the guaranty agency shall ensure that a borrower only have one lender, one holder, one guaranty agency, and one servicer with which to maintain contact.
(
§1092d. Scholarship fraud assessment and awareness activities
(a) Annual report on scholarship fraud
(1) Requirement
The Attorney General and the Secretary of Education, in conjunction with the Federal Trade Commission, shall jointly submit to Congress each year a report on fraud in the offering of financial assistance for purposes of financing an education at an institution of higher education. Each report shall contain an assessment of the nature and quantity of incidents of such fraud during the one-year period ending on the date of such report.
(2) Initial report
The first report under paragraph (1) shall be submitted not later than 18 months after November 1, 2000.
(b) National awareness activities
The Secretary of Education shall, in conjunction with the Federal Trade Commission, maintain a scholarship fraud awareness site on the Internet web site of the Department of Education. The scholarship fraud awareness site may include the following:
(1) Appropriate materials from the Project Scholarscam awareness campaign of the Commission, including examples of common fraudulent schemes.
(2) A list of companies and individuals who have been convicted of scholarship fraud in Federal or State court.
(3) An Internet-based message board to provide a forum for public complaints and experiences with scholarship fraud.
(4) An electronic comment form for individuals who have experienced scholarship fraud or have questions about scholarship fraud, with appropriate mechanisms for the transfer of comments received through such forms to the Department and the Commission.
(5) Internet links to other sources of information on scholarship fraud, including Internet web sites of appropriate nongovernmental organizations, colleges and universities, and government agencies.
(6) An Internet link to the Better Business Bureau in order to assist individuals in assessing the business practices of other persons and entities.
(7) Information on means of communicating with the Federal Student Aid Information Center, including telephone and Internet contact information.
(
Editorial Notes
Codification
Section was enacted as part of the College Scholarship Fraud Prevention Act of 2000, and not as part of title IV of the Higher Education Act of 1965 which comprises this subchapter.
Statutory Notes and Related Subsidiaries
Findings
"(1) A substantial amount of fraud occurs in the offering of college education financial assistance services to consumers.
"(2) Such fraud includes the following:
"(A) Misrepresentations regarding the provision of sources from which consumers may obtain financial assistance (including scholarships, grants, loans, tuition, awards, and other assistance) for purposes of financing a college education.
"(B) Misrepresentations regarding the provision of portfolios of such assistance tailored to the needs of specific consumers.
"(C) Misrepresentations regarding the pre-selection of students as eligible to receive such assistance.
"(D) Misrepresentations that such assistance will be provided to consumers who purchase specified services from specified entities.
"(E) Misrepresentations regarding the business relationships between particular entities and entities that award or may award such assistance.
"(F) Misrepresentations regarding refunds of processing fees if consumers are not provided specified amounts of such assistance, and other misrepresentations regarding refunds.
"(3) In 1996, the Federal Trade Commission launched 'Project Scholarscam', a joint law enforcement and consumer education campaign directed at fraudulent purveyors of so-called 'scholarship services'.
"(4) Despite the efforts of the Federal Trade Commission, colleges and universities, and nongovernmental organizations, the continued lack of awareness about scholarship fraud permits a significant amount of fraudulent activity to occur."
§1092e. College access initiative
(a) State-by-State information
The Secretary shall direct each guaranty agency with which the Secretary has an agreement under
(b) Guaranty agency activities
(1) Plan and activity required
Each guaranty agency with which the Secretary has an agreement under
(2) Activities
Each guaranty agency shall undertake such activities as are necessary to promote access to postsecondary education for students through providing information on college planning, career preparation, and paying for college. The guaranty agency shall publicize such information and coordinate such activities with other entities that either provide or distribute such information in the States for which such guaranty agency serves as the designated guarantor.
(3) Funding
The activities required by this section may be funded from the guaranty agency's Operating Fund established pursuant to
(4) Rule of construction
Nothing in this subsection shall be construed to require a guaranty agency to duplicate any efforts under way on February 8, 2006, that meet the requirements of this section.
(c) Access to information
(1) Secretary's responsibility
The Secretary shall ensure the availability of the information provided, by the guaranty agencies in accordance with this section, to students, parents, and other interested individuals, through Internet web links or other methods prescribed by the Secretary.
(2) Guaranty agency responsibility
The guaranty agencies shall ensure that the information required by this section is available without charge in printed format for students and parents requesting such information.
(3) Publicity
Not later than 270 days after February 8, 2006, the Secretary and guaranty agencies shall publicize the availability of the information required by this section, with special emphasis on ensuring that populations that are traditionally underrepresented in postsecondary education are made aware of the availability of such information.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective July 1, 2006, except as otherwise provided, see section 8001(c) of
§1092f. Early awareness of financial aid eligibility
(a) In general
The Secretary shall implement, in cooperation with States, institutions of higher education, secondary schools, early intervention and outreach programs under this subchapter, other agencies and organizations involved in student financial assistance and college access, public libraries, community centers, employers, and businesses, a comprehensive system of early financial aid information in order to provide students and families with early information about financial aid and early estimates of such students' eligibility for financial aid from multiple sources. Such system shall include the activities described in subsection (b).
(b) Communication of availability of aid and aid eligibility
(1) Students who receive benefits
The Secretary shall—
(A) make special efforts to notify students who receive or are eligible to receive benefits under a Federal means-tested benefit program (including the supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (
(B) disseminate such informational materials, that are part of the system described in subsection (a), as the Secretary determines necessary.
(2) Secondary school students
The Secretary, in cooperation with States, institutions of higher education, other organizations involved in college access and student financial aid, secondary schools, and programs under this subchapter that serve secondary school students, shall make special efforts to notify students in secondary school and their families, as early as possible but not later than such students' junior year of secondary school, of the availability of financial aid under this subchapter and shall provide nonbinding estimates of the amounts of grant and loan aid that an individual may be eligible for under this subchapter upon completion of an application form under
(3) Adult learners
The Secretary, in cooperation with States, institutions of higher education, other organizations involved in college access and student financial aid, employers, workforce investment boards, and public libraries, shall make special efforts to provide individuals who would qualify as independent students, as defined in
(A) is as accurate as possible;
(B) includes specific information regarding the availability of financial aid for students qualified as independent students, as defined in
(C) uses dissemination mechanisms suitable for adult learners.
(4) Public awareness campaign
Not later than two years after August 14, 2008, the Secretary, in coordination with States, institutions of higher education, early intervention and outreach programs under this subchapter, other agencies and organizations involved in college access and student financial aid, secondary schools, organizations that provide services to individuals that are or were homeless, to individuals in foster care, or to other disconnected individuals, local educational agencies, public libraries, community centers, businesses, employers, employment services, workforce investment boards, and movie theaters, shall implement a public awareness campaign in order to increase national awareness regarding the availability of financial aid under this title. The public awareness campaign shall disseminate accurate information regarding the availability of financial aid under this subchapter and shall be implemented, to the extent practicable, using a variety of media, including print, television, radio, and the Internet. The Secretary shall design and implement the public awareness campaign based upon relevant independent research and the information and dissemination strategies found most effective in implementing paragraphs (1) through (3).
(
Amendment of Section
§1092f. Early awareness and outreach of financial aid eligibility
(a) In general
The Secretary shall implement early outreach activities in order to provide prospective students and their families with information about financial aid and estimates of financial aid. Such early outreach activities shall include the activities described in subsections (b), (c), and (d).
(b) Pell Grant early awareness estimates
(1) In general
The Secretary shall produce a consumer-tested method of estimating student eligibility for Federal Pell Grants under
(A) a single-parent household;
(B) a household with two parents; or
(C) a household with no children or dependents.
(2) Consumer testing
(A) In general
The method of estimating eligibility described in paragraph (1) shall be consumer tested with prospective first-generation students and families as well as low-income individuals and families.
(B) Updates
For award year 2024–2025 and each fourth succeeding award year thereafter, the design of the method of estimating eligibility shall be updated based on additional consumer testing with the populations described in subparagraph (A).
(3) Distribution
The method of estimating eligibility described in paragraph (1) shall be—
(A) made publicly and prominently available on the Department's website; and
(B) actively shared by the Secretary with—
(i) institutions of higher education participating in programs under this subchapter;
(ii) all middle and secondary schools eligible for funds under part A of title I of the Elementary and Secondary Education Act of 1965;
(iii) local educational agencies and middle schools and high schools that serve students not less than 25 percent of whom meet a measure of poverty as described in section 1113(a)(5) of the Elementary and Secondary Education Act of 1965; and
(iv) agencies responsible for administering means-tested Federal benefit programs, as defined in
(4) Electronic estimator on FAFSA
In accordance with subsection (d)(5) of
(c) Early awareness plans
The Secretary shall establish and implement early awareness and outreach plans to provide early information about the availability of Federal financial aid and estimates of prospective students' eligibility for Federal financial aid as well as to promote the attainment of postsecondary education specifically among prospective first-generation students and families as well as low-income individuals and families, as follows:
(1) Outreach plans for low-income families
(A) In general
The Secretary shall develop plans for each population described in this subparagraph to disseminate information about the availability of Federal financial aid under this subchapter, in addition to and in coordination with the distribution of the method of estimating eligibility under subsection (b), to—
(i) all middle schools and secondary schools eligible for funds under part A of title I of the Elementary and Secondary Education Act of 1965;
(ii) local educational agencies and middle schools and high schools that serve students not less than 25 percent of whom meet a measure of poverty as described in section 1113(a)(5) of the Elementary and Secondary Education Act;
(iii) households receiving assistance under the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (
(iv) agencies responsible for administering means-tested Federal benefit programs, as defined in
(B) Content of plans
The plans described in paragraph (A) shall—
(i) provide students and their families with information on—
(I) the availability of the College Scorecard or any similar successor website;
(II) the electronic estimates of financial aid available under subsection (b);
(III) Federal financial aid available to students, including eligibility criteria for the Federal financial aid and an explanation of the Federal financial aid programs (including applicable Federal educational tax credits); and
(IV) resources that can inform students of financial aid that may be available from state-based financial aid, state-based college savings programs, and scholarships and other non-governmental sources;
(ii) describe how the dissemination of information will be conducted by the Secretary.
(C) Reporting and updates
The Secretary shall post the information about the plans under subparagraph (A) and associated goals publicly on the Department's website. On an annual basis, the Secretary shall report qualitative and quantitative outcomes regarding the implementation of the plans under subparagraph (A). The Secretary shall review and update such plans not less often than every 4 award years with the goal of progressively increasing the impact of the activities under this paragraph.
(D) Partnership
The Secretary may partner with States, State systems of higher education, institutions of higher education, or college access organizations to carry out this paragraph.
(2) Interagency coordination plans
(A) In general
The Secretary shall develop interagency coordination plans in order to inform more students and families, including low-income individuals or families and recipients of means-tested Federal benefits, about the availability of Federal financial aid under this subchapter through participation in existing Federal programs or tax benefits that serve low-income individuals or families, in coordination with the following Secretaries:
(i) The Secretary of the Treasury.
(ii) The Secretary of Labor.
(iii) The Secretary of Health and Human Services.
(iv) The Secretary of Agriculture.
(v) The Secretary of Housing and Urban Development.
(vi) The Secretary of Commerce.
(vii) The Secretary of Veterans Affairs.
(viii) The Secretary of the Interior.
(B) Process, activities, and goals
Each interagency coordination plan under subparagraph (A) shall—
(i) identify opportunities in which low-income individuals and families could be informed of the availability of Federal financial aid under this subchapter through access to other Federal programs that serve low-income individuals and families;
(ii) identify methods to effectively inform low-income individuals and families of the availability of Federal financial aid for postsecondary education under this subchapter and assist such individuals in completing the Free Application for Federal Student Aid;
(iii) develop early awareness and FAFSA completion activities that align with the opportunities and methods identified under clauses (i) and (ii);
(iv) establish goals regarding the effects of the activities to be implemented under clause (iii); and
(v) provide information on how students and families can maintain access to Federal programs that serve low-income individuals and families operated by the agencies identified under subsection (A) while attending an institution of higher education.
(C) Plan with Secretary of the Treasury
The interagency coordination plan under subparagraph (A)(i) between the Secretary and the Secretary of the Treasury shall further include specific methods to increase the application for Federal financial aid under this subchapter from individuals who file Federal tax returns, including collaboration with tax preparation entities or other third parties, as appropriate.
(D) Reporting and updates
The Secretary shall post the information about the interagency coordination plans under this paragraph and associated goals publicly on the Department's website. The plans shall have the goal of progressively increasing the impact of the activities under this paragraph by increasing the number of low-income applicants for, and recipients of, Federal financial aid. The plans shall be updated not less than once every 4 years.
(3) Nationwide participation in early awareness plans
(A) In general
The Secretary shall solicit voluntary public commitments from entities, such as States, State systems of higher education, institutions of higher education, and other interested organizations, to carry out early awareness plans, which shall include goals, to—
(i) notify prospective and existing students who are low-income individuals and families about their eligibility for Federal aid under this subchapter, as well as State-based financial aid, if applicable, on an annual basis;
(ii) increase the number of prospective and current students who are low-income individuals and families filing the Free Application for Federal Student Aid; and
(iii) increase the number of prospective and current students who are low-income individuals and families enrolling in postsecondary education.
(B) Reporting and updates
Each entity that makes a voluntary public commitment to carry out an early awareness plan may submit quantitative and qualitative data based on the entity's progress toward the goals of the plan annually prior to a date selected by the Secretary.
(C) Early awareness champions
Based on data submitted by entities, the Secretary shall select and designate entities submitting public commitments, plans, and goals, as Early Awareness Champions on an annual basis. Those entities designated as Early Awareness Champions shall provide one or more case studies regarding the activities the entity undertook under this paragraph which shall be made public by the Secretary on the Department of Education website to promote best practices.
(d) Public awareness campaign
(1) In general
The Secretary shall develop and implement a public awareness campaign designed using current and relevant independent research regarding strategies and media platforms found to be most effective in communicating with low-income populations in order to increase national awareness regarding the availability of Federal Pell Grants and financial aid under this subchapter and, at the option of the Secretary, potential availability of state need-based financial aid.
(2) Coordination
The public awareness campaign described in paragraph (1) shall leverage the activities in subsections (b) and (c) to highlight eligibility among low-income populations. In developing and implementing the campaign, the Secretary may work in coordination with States, institutions of higher education, early intervention and outreach programs under this subchapter, other Federal agencies, agencies responsible for administering means-tested Federal benefit programs (as defined in
(3) Reporting
The Secretary shall report on the success of the public awareness campaign described in paragraph (1) annually regarding the extent to which the public and target populations were reached using data commonly used to evaluate advertising and outreach campaigns and data regarding whether the campaign produced any increase in applicants for Federal aid under this subchapter publicly on the Department of Education website.
See 2020 and 2022 Amendment notes below.
Editorial Notes
References in Text
The Food and Nutrition Act of 2008, referred to in subsec. (b)(1)(A), is
Amendments
2022—Subsec. (b)(2)(B).
2020—
2010—Subsec. (b)(1)(A).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
§1093. Distance education demonstration programs
(a) Purpose
It is the purpose of this section—
(1) to allow demonstration programs that are strictly monitored by the Department of Education to test the quality and viability of expanded distance education programs currently restricted under this chapter;
(2) to provide for increased student access to higher education through distance education programs; and
(3) to help determine—
(A) the most effective means of delivering quality education via distance education course offerings;
(B) the specific statutory and regulatory requirements which should be altered to provide greater access to high quality distance education programs; and
(C) the appropriate level of Federal assistance for students enrolled in distance education programs.
(b) Demonstration programs authorized
(1) In general
In accordance with the provisions of subsection (d), the Secretary is authorized to select institutions of higher education, systems of such institutions, or consortia of such institutions for voluntary participation in a Distance Education Demonstration Program that provides participating institutions with the ability to offer distance education programs that do not meet all or a portion of the sections or regulations described in paragraph (2).
(2) Waivers
The Secretary is authorized to waive for any institution of higher education, system of institutions of higher education, or consortium participating in a Distance Education Demonstration Program, the requirements of
(3) Eligible applicants
(A) Eligible institutions
Except as provided in subparagraphs (B), (C), and (D), only an institution of higher education that is eligible to participate in programs under this subchapter shall be eligible to participate in the demonstration program authorized under this section.
(B) Prohibition
An institution of higher education described in
(C) Special rule
Subject to subparagraph (B), an institution of higher education that meets the requirements of subsection (a) of
(D) Requirement
Notwithstanding any other provision of this paragraph, Western Governors University shall be considered eligible to participate in the demonstration program authorized under this section. In addition to the waivers described in paragraph (2), the Secretary may waive the provisions of subchapter I and this part and part H of this subchapter for such university that the Secretary determines to be appropriate because of the unique characteristics of such university. In carrying out the preceding sentence, the Secretary shall ensure that adequate program integrity and accountability measures apply to such university's participation in the demonstration program authorized under this section.
(c) Application
(1) In general
Each institution, system, or consortium of institutions desiring to participate in a demonstration program under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require.
(2) Contents
Each application shall include—
(A) a description of the institution, system, or consortium's consultation with a recognized accrediting agency or association with respect to quality assurances for the distance education programs to be offered;
(B) a description of the statutory and regulatory requirements described in subsection (b)(2) or, if applicable, subsection (b)(3)(D) for which a waiver is sought and the reasons for which the waiver is sought;
(C) a description of the distance education programs to be offered;
(D) a description of the students to whom distance education programs will be offered;
(E) an assurance that the institution, system, or consortium will offer full cooperation with the ongoing evaluations of the demonstration program provided for in this section; and
(F) such other information as the Secretary may require.
(d) Selection
(1) In general
For the first year of the demonstration program authorized under this section, the Secretary is authorized to select for participation in the program not more than 15 institutions, systems of institutions, or consortia of institutions. For the third year of the demonstration program authorized under this section, the Secretary may select not more than 35 institutions, systems, or consortia, in addition to the institutions, systems, or consortia selected pursuant to the preceding sentence, to participate in the demonstration program if the Secretary determines that such expansion is warranted based on the evaluations conducted in accordance with subsections (f) and (g).
(2) Considerations
In selecting institutions to participate in the demonstration program in the first or succeeding years of the program, the Secretary shall take into account—
(A) the number and quality of applications received;
(B) the Department's capacity to oversee and monitor each institution's participation;
(C) an institution's—
(i) financial responsibility;
(ii) administrative capability; and
(iii) program or programs being offered via distance education; and
(D) ensuring the participation of a diverse group of institutions with respect to size, mission, and geographic distribution.
(e) Notification
The Secretary shall make available to the public and to the authorizing committees a list of institutions, systems or consortia selected to participate in the demonstration program authorized by this section. Such notice shall include a listing of the specific statutory and regulatory requirements being waived for each institution, system or consortium and a description of the distance education courses to be offered.
(f) Evaluations and reports
(1) Evaluation
The Secretary shall evaluate the demonstration programs authorized under this section on an annual basis. Such evaluations specifically shall review—
(A) the extent to which the institution, system or consortium has met the goals set forth in its application to the Secretary, including the measures of program quality assurance;
(B) the number and types of students participating in the programs offered, including the progress of participating students toward recognized certificates or degrees and the extent to which participation in such programs increased;
(C) issues related to student financial assistance for distance education;
(D) effective technologies for delivering distance education course offerings; and
(E) the extent to which statutory or regulatory requirements not waived under the demonstration program present difficulties for students or institutions.
(2) Policy analysis
The Secretary shall review current policies and identify those policies that present impediments to the development and use of distance education and other nontraditional methods of expanding access to education.
(3) Annual reports
The Secretary shall provide reports to the authorizing committees on an annual basis regarding—
(A) the demonstration programs authorized under this section; and
(B) the number and types of students receiving assistance under this subchapter for instruction leading to a recognized certificate, as provided for in
(g) Oversight
In conducting the demonstration program authorized under this section, the Secretary shall, on a continuing basis—
(1) assure compliance of institutions, systems or consortia with the requirements of this subchapter (other than the sections and regulations that are waived under subsections (b)(2) and (b)(3)(D));
(2) provide technical assistance;
(3) monitor fluctuations in the student population enrolled in the participating institutions, systems or consortia; and
(4) consult with appropriate accrediting agencies or associations and appropriate State regulatory authorities.
(h) "Distance education" defined
For the purpose of this section, the term "distance education" means an educational process that is characterized by the separation, in time or place, between instructor and student. Such term may include courses offered principally through the use of—
(1) television, audio, or computer transmission, such as open broadcast, closed circuit, cable, microwave, or satellite transmission;
(2) audio or computer conferencing;
(3) video cassettes or discs; or
(4) correspondence.
(
Editorial Notes
Prior Provisions
A prior section 1093,
Amendments
2008—Subsec. (e).
Subsec. (f)(3).
1998—
1992—
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Amendment by
§1093a. Articulation agreements
(a) Definition
In this section, the term "articulation agreement" means an agreement between or among institutions of higher education that specifies the acceptability of courses in transfer toward meeting specific degree or program requirements.
(b) Program to encourage articulation agreements
(1) Program established
The Secretary shall carry out a program for States, in cooperation with public institutions of higher education, to develop, enhance, and implement comprehensive articulation agreements between or among such institutions in a State, and (to the extent practicable) across State lines, by 2010. Such articulation agreements shall be made widely and publicly available on the websites of States and such institutions. In developing, enhancing, and implementing articulation agreements, States and public institutions of higher education may employ strategies, where applicable, including—
(A) common course numbering;
(B) a general education core curriculum;
(C) management systems regarding course equivalency, transfer of credit, and articulation; and
(D) other strategies identified by the Secretary.
(2) Technical assistance provided
The Secretary shall provide technical assistance to States and public institutions of higher education for the purposes of developing and implementing articulation agreements in accordance with this subsection.
(3) Rule of construction
Nothing in this subsection shall be construed to authorize the Secretary to require particular policies, procedures, or practices by institutions of higher education with respect to articulation agreements.
(
§1094. Program participation agreements
(a) Required for programs of assistance; contents
In order to be an eligible institution for the purposes of any program authorized under this subchapter, an institution must be an institution of higher education or an eligible institution (as that term is defined for the purpose of that program) and shall, except with respect to a program under subpart 4 of part A, enter into a program participation agreement with the Secretary. The agreement shall condition the initial and continuing eligibility of an institution to participate in a program upon compliance with the following requirements:
(1) The institution will use funds received by it for any program under this subchapter and any interest or other earnings thereon solely for the purpose specified in and in accordance with the provision of that program.
(2) The institution shall not charge any student a fee for processing or handling any application, form, or data required to determine the student's eligibility for assistance under this subchapter or the amount of such assistance.
(3) The institution will establish and maintain such administrative and fiscal procedures and records as may be necessary to ensure proper and efficient administration of funds received from the Secretary or from students under this subchapter, together with assurances that the institution will provide, upon request and in a timely fashion, information relating to the administrative capability and financial responsibility of the institution to—
(A) the Secretary;
(B) the appropriate guaranty agency; and
(C) the appropriate accrediting agency or association.
(4) The institution will comply with the provisions of subsection (c) of this section and the regulations prescribed under that subsection, relating to fiscal eligibility.
(5) The institution will submit reports to the Secretary and, in the case of an institution participating in a program under part B or part E, to holders of loans made to the institution's students under such parts at such times and containing such information as the Secretary may reasonably require to carry out the purpose of this subchapter.
(6) The institution will not provide any student with any statement or certification to any lender under part B that qualifies the student for a loan or loans in excess of the amount that student is eligible to borrow in accordance with sections 1075(a), 1078(a)(2), and 1078(b)(1)(A) and (B) of this title.
(7) The institution will comply with the requirements of
(8) In the case of an institution that advertises job placement rates as a means of attracting students to enroll in the institution, the institution will make available to prospective students, at or before the time of application (A) the most recent available data concerning employment statistics, graduation statistics, and any other information necessary to substantiate the truthfulness of the advertisements, and (B) relevant State licensing requirements of the State in which such institution is located for any job for which the course of instruction is designed to prepare such prospective students.
(9) In the case of an institution participating in a program under part B or D, the institution will inform all eligible borrowers enrolled in the institution about the availability and eligibility of such borrowers for State grant assistance from the State in which the institution is located, and will inform such borrowers from another State of the source for further information concerning such assistance from that State.
(10) The institution certifies that it has in operation a drug abuse prevention program that is determined by the institution to be accessible to any officer, employee, or student at the institution.
(11) In the case of any institution whose students receive financial assistance pursuant to
(12) The institution certifies that—
(A) the institution has established a campus security policy; and
(B) the institution has complied with the disclosure requirements of
(13) The institution will not deny any form of Federal financial aid to any student who meets the eligibility requirements of this subchapter on the grounds that the student is participating in a program of study abroad approved for credit by the institution.
(14)(A) The institution, in order to participate as an eligible institution under part B or D, will develop a Default Management Plan for approval by the Secretary as part of its initial application for certification as an eligible institution and will implement such Plan for two years thereafter.
(B) Any institution of higher education which changes ownership and any eligible institution which changes its status as a parent or subordinate institution shall, in order to participate as an eligible institution under part B or D, develop a Default Management Plan for approval by the Secretary and implement such Plan for two years after its change of ownership or status.
(C) This paragraph shall not apply in the case of an institution in which (i) neither the parent nor the subordinate institution has a cohort default rate in excess of 10 percent, and (ii) the new owner of such parent or subordinate institution does not, and has not, owned any other institution with a cohort default rate in excess of 10 percent.
(15) The institution acknowledges the authority of the Secretary, guaranty agencies, lenders, accrediting agencies, the Secretary of Veterans Affairs, and the State agencies under subpart 1 of part H to share with each other any information pertaining to the institution's eligibility to participate in programs under this subchapter or any information on fraud and abuse.
(16)(A) The institution will not knowingly employ an individual in a capacity that involves the administration of programs under this subchapter, or the receipt of program funds under this subchapter, who has been convicted of, or has pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under this subchapter, or has been judicially determined to have committed fraud involving funds under this subchapter or contract with an institution or third party servicer that has been terminated under
(B) The institution will not knowingly contract with or employ any individual, agency, or organization that has been, or whose officers or employees have been—
(i) convicted of, or pled nolo contendere or guilty to, a crime involving the acquisition, use, or expenditure of funds under this subchapter; or
(ii) judicially determined to have committed fraud involving funds under this subchapter.
(17) The institution will complete surveys conducted as a part of the Integrated Postsecondary Education Data System (IPEDS) or any other Federal postsecondary institution data collection effort, as designated by the Secretary, in a timely manner and to the satisfaction of the Secretary.
(18) The institution will meet the requirements established pursuant to
(19) The institution will not impose any penalty, including the assessment of late fees, the denial of access to classes, libraries, or other institutional facilities, or the requirement that the student borrow additional funds, on any student because of the student's inability to meet his or her financial obligations to the institution as a result of the delayed disbursement of the proceeds of a loan made under this subchapter due to compliance with the provisions of this subchapter, or delays attributable to the institution.
(20) The institution will not provide any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance, except that this paragraph shall not apply to the recruitment of foreign students residing in foreign countries who are not eligible to receive Federal student assistance.
(21) The institution will meet the requirements established by the Secretary and accrediting agencies or associations, and will provide evidence to the Secretary that the institution has the authority to operate within a State.
(22) The institution will comply with the refund policy established pursuant to
(23)(A) The institution, if located in a State to which
(B) The institution shall request the forms from the State 120 days prior to the deadline for registering to vote within the State. If an institution has not received a sufficient quantity of forms to fulfill this section from the State within 60 days prior to the deadline for registering to vote in the State, the institution shall not be held liable for not meeting the requirements of this section during that election year.
(C) This paragraph shall apply to general and special elections for Federal office, as defined in
(D) The institution shall be considered in compliance with the requirements of subparagraph (A) for each student to whom the institution electronically transmits a message containing a voter registration form acceptable for use in the State in which the institution is located, or an Internet address where such a form can be downloaded, if such information is in an electronic message devoted exclusively to voter registration.
(24) In the case of a proprietary institution of higher education (as defined in
(25) In the case of an institution that participates in a loan program under this subchapter, the institution will—
(A) develop a code of conduct with respect to such loans with which the institution's officers, employees, and agents shall comply, that—
(i) prohibits a conflict of interest with the responsibilities of an officer, employee, or agent of an institution with respect to such loans; and
(ii) at a minimum, includes the provisions described in subsection (e);
(B) publish such code of conduct prominently on the institution's website; and
(C) administer and enforce such code by, at a minimum, requiring that all of the institution's officers, employees, and agents with responsibilities with respect to such loans be annually informed of the provisions of the code of conduct.
(26) The institution will, upon written request, disclose to the alleged victim of any crime of violence (as that term is defined in
(27) In the case of an institution that has entered into a preferred lender arrangement, the institution will at least annually compile, maintain, and make available for students attending the institution, and the families of such students, a list, in print or other medium, of the specific lenders for loans made, insured, or guaranteed under this subchapter or private education loans that the institution recommends, promotes, or endorses in accordance with such preferred lender arrangement. In making such list, the institution shall comply with the requirements of subsection (h).
(28)(A) The institution will, upon the request of an applicant for a private education loan, provide to the applicant the form required under
(B) For purposes of this paragraph, the term "private education loan" has the meaning given such term in
(29) The institution certifies that the institution—
(A) has developed plans to effectively combat the unauthorized distribution of copyrighted material, including through the use of a variety of technology-based deterrents; and
(B) will, to the extent practicable, offer alternatives to illegal downloading or peer-to-peer distribution of intellectual property, as determined by the institution in consultation with the chief technology officer or other designated officer of the institution.
(b) Hearings
(1) An institution that has received written notice of a final audit or program review determination and that desires to have such determination reviewed by the Secretary shall submit to the Secretary a written request for review not later than 45 days after receipt of notification of the final audit or program review determination.
(2) The Secretary shall, upon receipt of written notice under paragraph (1), arrange for a hearing and notify the institution within 30 days of receipt of such notice the date, time, and place of such hearing. Such hearing shall take place not later than 120 days from the date upon which the Secretary notifies the institution.
(c) Audits; financial responsibility; enforcement of standards
(1) Notwithstanding any other provisions of this subchapter, the Secretary shall prescribe such regulations as may be necessary to provide for—
(A)(i) except as provided in clauses (ii) and (iii), a financial audit of an eligible institution with regard to the financial condition of the institution in its entirety, and a compliance audit of such institution with regard to any funds obtained by it under this subchapter or obtained from a student or a parent who has a loan insured or guaranteed by the Secretary under this subchapter, on at least an annual basis and covering the period since the most recent audit, conducted by a qualified, independent organization or person in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, the results of which shall be submitted to the Secretary and shall be available to cognizant guaranty agencies, eligible lenders, State agencies, and the appropriate State agency notifying the Secretary under subpart 1 of part H, except that the Secretary may modify the requirements of this clause with respect to institutions of higher education that are foreign institutions, and may waive such requirements with respect to a foreign institution whose students receive less than $500,000 in loans under this subchapter during the award year preceding the audit period;
(ii) with regard to an eligible institution which is audited under
(iii) at the discretion of the Secretary, with regard to an eligible institution (other than an eligible institution described in
(B) in matters not governed by specific program provisions, the establishment of reasonable standards of financial responsibility and appropriate institutional capability for the administration by an eligible institution of a program of student financial aid under this subchapter, including any matter the Secretary deems necessary to the sound administration of the financial aid programs, such as the pertinent actions of any owner, shareholder, or person exercising control over an eligible institution;
(C)(i) except as provided in clause (ii), a compliance audit of a third party servicer (other than with respect to the servicer's functions as a lender if such functions are otherwise audited under this part and such audits meet the requirements of this clause), with regard to any contract with an eligible institution, guaranty agency, or lender for administering or servicing any aspect of the student assistance programs under this subchapter, at least once every year and covering the period since the most recent audit, conducted by a qualified, independent organization or person in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, the results of which shall be submitted to the Secretary; or
(ii) with regard to a third party servicer that is audited under
(D)(i) a compliance audit of a secondary market with regard to its transactions involving, and its servicing and collection of, loans made under this subchapter, at least once a year and covering the period since the most recent audit, conducted by a qualified, independent organization or person in accordance with standards established by the Comptroller General for the audit of governmental organizations, programs, and functions, and as prescribed in regulations of the Secretary, the results of which shall be submitted to the Secretary; or
(ii) with regard to a secondary market that is audited under
(E) the establishment, by each eligible institution under part B responsible for furnishing to the lender the statement required by
(F) the limitation, suspension, or termination of the participation in any program under this subchapter of an eligible institution, or the imposition of a civil penalty under paragraph (3)(B) whenever the Secretary has determined, after reasonable notice and opportunity for hearing, that such institution has violated or failed to carry out any provision of this subchapter, any regulation prescribed under this subchapter, or any applicable special arrangement, agreement, or limitation, except that no period of suspension under this section shall exceed 60 days unless the institution and the Secretary agree to an extension or unless limitation or termination proceedings are initiated by the Secretary within that period of time;
(G) an emergency action against an institution, under which the Secretary shall, effective on the date on which a notice and statement of the basis of the action is mailed to the institution (by registered mail, return receipt requested), withhold funds from the institution or its students and withdraw the institution's authority to obligate funds under any program under this subchapter, if the Secretary—
(i) receives information, determined by the Secretary to be reliable, that the institution is violating any provision of this subchapter, any regulation prescribed under this subchapter, or any applicable special arrangement, agreement, or limitation,
(ii) determines that immediate action is necessary to prevent misuse of Federal funds, and
(iii) determines that the likelihood of loss outweighs the importance of the procedures prescribed under subparagraph (D) for limitation, suspension, or termination,
except that an emergency action shall not exceed 30 days unless limitation, suspension, or termination proceedings are initiated by the Secretary against the institution within that period of time, and except that the Secretary shall provide the institution an opportunity to show cause, if it so requests, that the emergency action is unwarranted;
(H) the limitation, suspension, or termination of the eligibility of a third party servicer to contract with any institution to administer any aspect of an institution's student assistance program under this subchapter, or the imposition of a civil penalty under paragraph (3)(B), whenever the Secretary has determined, after reasonable notice and opportunity for a hearing, that such organization, acting on behalf of an institution, has violated or failed to carry out any provision of this subchapter, any regulation prescribed under this subchapter, or any applicable special arrangement, agreement, or limitation, except that no period of suspension under this subparagraph shall exceed 60 days unless the organization and the Secretary agree to an extension, or unless limitation or termination proceedings are initiated by the Secretary against the individual or organization within that period of time; and
(I) an emergency action against a third party servicer that has contracted with an institution to administer any aspect of the institution's student assistance program under this subchapter, under which the Secretary shall, effective on the date on which a notice and statement of the basis of the action is mailed to such individual or organization (by registered mail, return receipt requested), withhold funds from the individual or organization and withdraw the individual or organization's authority to act on behalf of an institution under any program under this subchapter, if the Secretary—
(i) receives information, determined by the Secretary to be reliable, that the individual or organization, acting on behalf of an institution, is violating any provision of this subchapter, any regulation prescribed under this subchapter, or any applicable special arrangement, agreement, or limitation,
(ii) determines that immediate action is necessary to prevent misuse of Federal funds, and
(iii) determines that the likelihood of loss outweighs the importance of the procedures prescribed under subparagraph (F), for limitation, suspension, or termination,
except that an emergency action shall not exceed 30 days unless the limitation, suspension, or termination proceedings are initiated by the Secretary against the individual or organization within that period of time, and except that the Secretary shall provide the individual or organization an opportunity to show cause, if it so requests, that the emergency action is unwarranted.
(2) If an individual who, or entity that, exercises substantial control, as determined by the Secretary in accordance with the definition of substantial control in subpart 3 of part H, over one or more institutions participating in any program under this subchapter, or, for purposes of paragraphs (1)(H) and (I), over one or more organizations that contract with an institution to administer any aspect of the institution's student assistance program under this subchapter, is determined to have committed one or more violations of the requirements of any program under this subchapter, or has been suspended or debarred in accordance with the regulations of the Secretary, the Secretary may use such determination, suspension, or debarment as the basis for imposing an emergency action on, or limiting, suspending, or terminating, in a single proceeding, the participation of any or all institutions under the substantial control of that individual or entity.
(3)(A) Upon determination, after reasonable notice and opportunity for a hearing, that an eligible institution has engaged in substantial misrepresentation of the nature of its educational program, its financial charges, or the employability of its graduates, the Secretary may suspend or terminate the eligibility status for any or all programs under this subchapter of any otherwise eligible institution, in accordance with procedures specified in paragraph (1)(D) of this subsection, until the Secretary finds that such practices have been corrected.
(B)(i) Upon determination, after reasonable notice and opportunity for a hearing, that an eligible institution—
(I) has violated or failed to carry out any provision of this subchapter or any regulation prescribed under this subchapter; or
(II) has engaged in substantial misrepresentation of the nature of its educational program, its financial charges, and the employability of its graduates,
the Secretary may impose a civil penalty upon such institution of not to exceed $25,000 for each violation or misrepresentation.
(ii) Any civil penalty may be compromised by the Secretary. In determining the amount of such penalty, or the amount agreed upon in compromise, the appropriateness of the penalty to the size of the institution of higher education subject to the determination, and the gravity of the violation, failure, or misrepresentation shall be considered. The amount of such penalty, when finally determined, or the amount agreed upon in compromise, may be deducted from any sums owing by the United States to the institution charged.
(4) The Secretary shall publish a list of State agencies which the Secretary determines to be reliable authority as to the quality of public postsecondary vocational education in their respective States for the purpose of determining eligibility for all Federal student assistance programs.
(5) The Secretary shall make readily available to appropriate guaranty agencies, eligible lenders, State agencies notifying the Secretary under subpart 1 of part H, and accrediting agencies or associations the results of the audits of eligible institutions conducted pursuant to paragraph (1)(A).
(6) The Secretary is authorized to provide any information collected as a result of audits conducted under this section, together with audit information collected by guaranty agencies, to any Federal or State agency having responsibilities with respect to student financial assistance, including those referred to in subsection (a)(15) of this section.
(7) Effective with respect to any audit conducted under this subsection after December 31, 1988, if, in the course of conducting any such audit, the personnel of the Department of Education discover, or are informed of, grants or other assistance provided by an institution in accordance with this subchapter for which the institution has not received funds appropriated under this subchapter (in the amount necessary to provide such assistance), including funds for which reimbursement was not requested prior to such discovery or information, such institution shall be permitted to offset that amount against any sums determined to be owed by the institution pursuant to such audit, or to receive reimbursement for that amount (if the institution does not owe any such sums).
(d) Implementation of non-Federal revenue requirement
(1) Calculation
In making calculations under subsection (a)(24), a proprietary institution of higher education shall—
(A) use the cash basis of accounting, except in the case of loans described in subparagraph (D)(i) that are made by the proprietary institution of higher education;
(B) consider as revenue only those funds generated by the institution from—
(i) tuition, fees, and other institutional charges for students enrolled in programs eligible for assistance under this subchapter;
(ii) activities conducted by the institution that are necessary for the education and training of the institution's students, if such activities are—
(I) conducted on campus or at a facility under the control of the institution;
(II) performed under the supervision of a member of the institution's faculty; and
(III) required to be performed by all students in a specific educational program at the institution; and
(iii) funds paid by a student, or on behalf of a student by a party other than the institution, for an education or training program that is not eligible for funds under this subchapter, if the program—
(I) is approved or licensed by the appropriate State agency;
(II) is accredited by an accrediting agency recognized by the Secretary; or
(III) provides an industry-recognized credential or certification;
(C) presume that any Federal education assistance funds that are disbursed or delivered to or on behalf of a student will be used to pay the student's tuition, fees, or other institutional charges, regardless of whether the institution credits those funds to the student's account or pays those funds directly to the student, except to the extent that the student's tuition, fees, or other institutional charges are satisfied by—
(i) grant funds provided by non-Federal public agencies or private sources independent of the institution;
(ii) funds provided under a contractual arrangement with a Federal, State, or local government agency for the purpose of providing job training to low-income individuals who are in need of that training;
(iii) funds used by a student from savings plans for educational expenses established by or on behalf of the student and which qualify for special tax treatment under title 26; or
(iv) institutional scholarships described in subparagraph (D)(iii);
(D) include institutional aid as revenue to the school only as follows:
(i) in the case of loans made by a proprietary institution of higher education on or after July 1, 2008 and prior to July 1, 2012, the net present value of such loans made by the institution during the applicable institutional fiscal year accounted for on an accrual basis and estimated in accordance with generally accepted accounting principles and related standards and guidance, if the loans—
(I) are bona fide as evidenced by enforceable promissory notes;
(II) are issued at intervals related to the institution's enrollment periods; and
(III) are subject to regular loan repayments and collections;
(ii) in the case of loans made by a proprietary institution of higher education on or after July 1, 2012, only the amount of loan repayments received during the applicable institutional fiscal year, excluding repayments on loans made and accounted for as specified in clause (i); and
(iii) in the case of scholarships provided by a proprietary institution of higher education, only those scholarships provided by the institution in the form of monetary aid or tuition discounts based upon the academic achievements or financial need of students, disbursed during each fiscal year from an established restricted account, and only to the extent that funds in that account represent designated funds from an outside source or from income earned on those funds;
(E) in the case of each student who receives a loan on or after July 1, 2008, and prior to July 1, 2011, that is authorized under
(F) exclude from revenues—
(i) the amount of funds the institution received under part C, unless the institution used those funds to pay a student's institutional charges;
(ii) the amount of funds the institution received under subpart 4 of part A;
(iii) the amount of funds provided by the institution as matching funds for a program under this subchapter;
(iv) the amount of funds provided by the institution for a program under this subchapter that are required to be refunded or returned; and
(v) the amount charged for books, supplies, and equipment, unless the institution includes that amount as tuition, fees, or other institutional charges.
(2) Sanctions
(A) Ineligibility
A proprietary institution of higher education that fails to meet a requirement of subsection (a)(24) for two consecutive institutional fiscal years shall be ineligible to participate in the programs authorized by this subchapter for a period of not less than two institutional fiscal years. To regain eligibility to participate in the programs authorized by this subchapter, a proprietary institution of higher education shall demonstrate compliance with all eligibility and certification requirements under
(B) Additional enforcement
In addition to such other means of enforcing the requirements of this subchapter as may be available to the Secretary, if a proprietary institution of higher education fails to meet a requirement of subsection (a)(24) for any institutional fiscal year, then the institution's eligibility to participate in the programs authorized by this subchapter becomes provisional for the two institutional fiscal years after the institutional fiscal year in which the institution failed to meet the requirement of subsection (a)(24), except that such provisional eligibility shall terminate—
(i) on the expiration date of the institution's program participation agreement under this subsection that is in effect on the date the Secretary determines that the institution failed to meet the requirement of subsection (a)(24); or
(ii) in the case that the Secretary determines that the institution failed to meet a requirement of subsection (a)(24) for two consecutive institutional fiscal years, on the date the institution is determined ineligible in accordance with subparagraph (A).
(3) Publication on college navigator website
The Secretary shall publicly disclose on the College Navigator website—
(A) the identity of any proprietary institution of higher education that fails to meet a requirement of subsection (a)(24); and
(B) the extent to which the institution failed to meet such requirement.
(4) Report to Congress
Not later than July 1, 2009, and July 1 of each succeeding year, the Secretary shall submit to the authorizing committees a report that contains, for each proprietary institution of higher education that receives assistance under this subchapter, as provided in the audited financial statements submitted to the Secretary by each institution pursuant to the requirements of subsection (a)(24)—
(A) the amount and percentage of such institution's revenues received from sources under this subchapter; and
(B) the amount and percentage of such institution's revenues received from other sources.
(e) Code of conduct requirements
An institution of higher education's code of conduct, as required under subsection (a)(25), shall include the following requirements:
(1) Ban on revenue-sharing arrangements
(A) Prohibition
The institution shall not enter into any revenue-sharing arrangement with any lender.
(B) Definition
For purposes of this paragraph, the term "revenue-sharing arrangement" means an arrangement between an institution and a lender under which—
(i) a lender provides or issues a loan that is made, insured, or guaranteed under this subchapter to students attending the institution or to the families of such students; and
(ii) the institution recommends the lender or the loan products of the lender and in exchange, the lender pays a fee or provides other material benefits, including revenue or profit sharing, to the institution, an officer or employee of the institution, or an agent.
(2) Gift ban
(A) Prohibition
No officer or employee of the institution who is employed in the financial aid office of the institution or who otherwise has responsibilities with respect to education loans, or agent who has responsibilities with respect to education loans, shall solicit or accept any gift from a lender, guarantor, or servicer of education loans.
(B) Definition of gift
(i) In general
In this paragraph, the term "gift" means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount. The term includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.
(ii) Exceptions
The term "gift" shall not include any of the following:
(I) Standard material, activities, or programs on issues related to a loan, default aversion, default prevention, or financial literacy, such as a brochure, a workshop, or training.
(II) Food, refreshments, training, or informational material furnished to an officer or employee of an institution, or to an agent, as an integral part of a training session that is designed to improve the service of a lender, guarantor, or servicer of education loans to the institution, if such training contributes to the professional development of the officer, employee, or agent.
(III) Favorable terms, conditions, and borrower benefits on an education loan provided to a student employed by the institution if such terms, conditions, or benefits are comparable to those provided to all students of the institution.
(IV) Entrance and exit counseling services provided to borrowers to meet the institution's responsibilities for entrance and exit counseling as required by subsections (b) and (l) of
(aa) the institution's staff are in control of the counseling, (whether in person or via electronic capabilities); and
(bb) such counseling does not promote the products or services of any specific lender.
(V) Philanthropic contributions to an institution from a lender, servicer, or guarantor of education loans that are unrelated to education loans or any contribution from any lender, guarantor, or servicer that is not made in exchange for any advantage related to education loans.
(VI) State education grants, scholarships, or financial aid funds administered by or on behalf of a State.
(iii) Rule for gifts to family members
For purposes of this paragraph, a gift to a family member of an officer or employee of an institution, to a family member of an agent, or to any other individual based on that individual's relationship with the officer, employee, or agent, shall be considered a gift to the officer, employee, or agent if—
(I) the gift is given with the knowledge and acquiescence of the officer, employee, or agent; and
(II) the officer, employee, or agent has reason to believe the gift was given because of the official position of the officer, employee, or agent.
(3) Contracting arrangements prohibited
(A) Prohibition
An officer or employee who is employed in the financial aid office of the institution or who otherwise has responsibilities with respect to education loans, or an agent who has responsibilities with respect to education loans, shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.
(B) Exceptions
Nothing in this subsection shall be construed as prohibiting—
(i) an officer or employee of an institution who is not employed in the institution's financial aid office and who does not otherwise have responsibilities with respect to education loans, or an agent who does not have responsibilities with respect to education loans, from performing paid or unpaid service on a board of directors of a lender, guarantor, or servicer of education loans;
(ii) an officer or employee of the institution who is not employed in the institution's financial aid office but who has responsibility with respect to education loans as a result of a position held at the institution, or an agent who has responsibility with respect to education loans, from performing paid or unpaid service on a board of directors of a lender, guarantor, or servicer of education loans, if the institution has a written conflict of interest policy that clearly sets forth that officers, employees, or agents must recuse themselves from participating in any decision of the board regarding education loans at the institution; or
(iii) an officer, employee, or contractor of a lender, guarantor, or servicer of education loans from serving on a board of directors, or serving as a trustee, of an institution, if the institution has a written conflict of interest policy that the board member or trustee must recuse themselves from any decision regarding education loans at the institution.
(4) Interaction with borrowers
The institution shall not—
(A) for any first-time borrower, assign, through award packaging or other methods, the borrower's loan to a particular lender; or
(B) refuse to certify, or delay certification of, any loan based on the borrower's selection of a particular lender or guaranty agency.
(5) Prohibition on offers of funds for private loans
(A) Prohibition
The institution shall not request or accept from any lender any offer of funds to be used for private education loans (as defined in
(i) a specified number of loans made, insured, or guaranteed under this subchapter;
(ii) a specified loan volume of such loans; or
(iii) a preferred lender arrangement for such loans.
(B) Definition of opportunity pool loan
In this paragraph, the term "opportunity pool loan" means a private education loan made by a lender to a student attending the institution or the family member of such a student that involves a payment, directly or indirectly, by such institution of points, premiums, additional interest, or financial support to such lender for the purpose of such lender extending credit to the student or the family.
(6) Ban on staffing assistance
(A) Prohibition
The institution shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing.
(B) Certain assistance permitted
Nothing in paragraph (1) shall be construed to prohibit the institution from requesting or accepting assistance from a lender related to—
(i) professional development training for financial aid administrators;
(ii) providing educational counseling materials, financial literacy materials, or debt management materials to borrowers, provided that such materials disclose to borrowers the identification of any lender that assisted in preparing or providing such materials; or
(iii) staffing services on a short-term, nonrecurring basis to assist the institution with financial aid-related functions during emergencies, including State-declared or federally declared natural disasters, federally declared national disasters, and other localized disasters and emergencies identified by the Secretary.
(7) Advisory board compensation
Any employee who is employed in the financial aid office of the institution, or who otherwise has responsibilities with respect to education loans or other student financial aid of the institution, and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.
(f) Institutional requirements for teach-outs
(1) In general
In the event the Secretary initiates the limitation, suspension, or termination of the participation of an institution of higher education in any program under this subchapter under the authority of subsection (c)(1)(F) or initiates an emergency action under the authority of subsection (c)(1)(G) and its prescribed regulations, the Secretary shall require that institution to prepare a teach-out plan for submission to the institution's accrediting agency or association in compliance with
(2) Teach-out plan defined
In this subsection, the term "teach-out plan" means a written plan that provides for the equitable treatment of students if an institution of higher education ceases to operate before all students have completed their program of study, and may include, if required by the institution's accrediting agency or association, an agreement between institutions for such a teach-out plan.
(g) Inspector General report on gift ban violations
The Inspector General of the Department shall—
(1) submit an annual report to the authorizing committees identifying all violations of an institution's code of conduct that the Inspector General has substantiated during the preceding year relating to the gift ban provisions described in subsection (e)(2); and
(2) make the report available to the public through the Department's website.
(h) Preferred lender list requirements
(1) In general
In compiling, maintaining, and making available a preferred lender list as required under subsection (a)(27), the institution will—
(A) clearly and fully disclose on such preferred lender list—
(i) not less than the information required to be disclosed under
(ii) why the institution has entered into a preferred lender arrangement with each lender on the preferred lender list, particularly with respect to terms and conditions or provisions favorable to the borrower; and
(iii) that the students attending the institution, or the families of such students, do not have to borrow from a lender on the preferred lender list;
(B) ensure, through the use of the list of lender affiliates provided by the Secretary under paragraph (2), that—
(i) there are not less than three lenders of loans made under part B that are not affiliates of each other included on the preferred lender list and, if the institution recommends, promotes, or endorses private education loans, there are not less than two lenders of private education loans that are not affiliates of each other included on the preferred lender list; and
(ii) the preferred lender list under this paragraph—
(I) specifically indicates, for each listed lender, whether the lender is or is not an affiliate of each other lender on the preferred lender list; and
(II) if a lender is an affiliate of another lender on the preferred lender list, describes the details of such affiliation;
(C) prominently disclose the method and criteria used by the institution in selecting lenders with which to enter into preferred lender arrangements to ensure that such lenders are selected on the basis of the best interests of the borrowers, including—
(i) payment of origination or other fees on behalf of the borrower;
(ii) highly competitive interest rates, or other terms and conditions or provisions of loans under this subchapter or private education loans;
(iii) high-quality servicing for such loans; or
(iv) additional benefits beyond the standard terms and conditions or provisions for such loans;
(D) exercise a duty of care and a duty of loyalty to compile the preferred lender list under this paragraph without prejudice and for the sole benefit of the students attending the institution, or the families of such students;
(E) not deny or otherwise impede the borrower's choice of a lender or cause unnecessary delay in loan certification under this subchapter for those borrowers who choose a lender that is not included on the preferred lender list; and
(F) comply with such other requirements as the Secretary may prescribe by regulation.
(2) Lender affiliates list
(A) In general
The Secretary shall maintain and regularly update a list of lender affiliates of all eligible lenders, and shall provide such list to institutions for use in carrying out paragraph (1)(B).
(B) Use of most recent list
An institution shall use the most recent list of lender affiliates provided by the Secretary under subparagraph (A) in carrying out paragraph (1)(B).
(i) Definitions
For the purpose of this section:
(1) Agent
The term "agent" has the meaning given the term in
(2) Affiliate
The term "affiliate" means a person that controls, is controlled by, or is under common control with another person. A person controls, is controlled by, or is under common control with another person if—
(A) the person directly or indirectly, or acting through one or more others, owns, controls, or has the power to vote five percent or more of any class of voting securities of such other person;
(B) the person controls, in any manner, the election of a majority of the directors or trustees of such other person; or
(C) the Secretary determines (after notice and opportunity for a hearing) that the person directly or indirectly exercises a controlling interest over the management or policies of such other person's education loans.
(3) Education loan
The term "education loan" has the meaning given the term in
(4) Eligible institution
The term "eligible institution" means any such institution described in
(5) Officer
The term "officer" has the meaning given the term in
(6) Preferred lender arrangement
The term "preferred lender arrangement" has the meaning given the term in
(j) Construction
Nothing in the amendments made by the Higher Education Amendments of 1992 shall be construed to prohibit an institution from recording, at the cost of the institution, a hearing referred to in subsection (b)(2), subsection (c)(1)(D), or subparagraph (A) or (B)(i) of subsection (c)(2), of this section to create a record of the hearing, except the unavailability of a recording shall not serve to delay the completion of the proceeding. The Secretary shall allow the institution to use any reasonable means, including stenographers, of recording the hearing.
(
Editorial Notes
References in Text
The Higher Education Amendments of 1992, referred to in subsec. (j), is
Prior Provisions
A prior section 1094,
Amendments
2021—Subsec. (a)(24).
Subsec. (d).
Subsec. (d)(1)(C).
2009—Subsec. (a)(23)(A).
Subsec. (c)(1)(A)(i), (F), (H).
Subsec. (f)(1).
Subsec. (g)(1).
2008—Subsec. (a)(23)(C), (D).
Subsec. (a)(24) to (29).
Subsec. (c)(1)(A)(i).
Subsecs. (d) to (h).
Subsec. (i).
Subsec. (j).
1999—Subsec. (a)(23)(C).
1998—Subsec. (a)(3)(B) to (D).
Subsec. (a)(4).
Subsec. (a)(9).
Subsec. (a)(14)(A), (B).
Subsec. (a)(14)(C).
Subsec. (a)(15).
Subsec. (a)(18).
Subsec. (a)(21).
Subsec. (a)(23).
Subsec. (c)(1)(A)(i).
Subsec. (c)(1)(A)(iii).
Subsec. (c)(4).
Subsec. (c)(5).
Subsec. (d).
1993—Subsec. (a)(2).
Subsec. (c)(1)(F).
1992—Subsec. (a).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(8).
Subsec. (a)(13) to (22).
Subsec. (b)(2).
Subsec. (c)(1).
Subsec. (c)(1)(A)(i).
Subsec. (c)(1)(B).
Subsec. (c)(1)(C).
Subsec. (c)(1)(D).
Subsec. (c)(1)(E).
Subsec. (c)(1)(F).
Subsec. (c)(1)(G).
Subsec. (c)(1)(H).
Subsec. (c)(1)(I).
Subsec. (c)(2).
Subsec. (c)(3).
Subsec. (c)(4).
Subsec. (c)(5) to (7).
Subsec. (d).
Subsec. (e).
1991—Subsec. (a)(11).
1990—Subsec. (a)(12).
1989—Subsec. (a)(11).
Subsec. (c)(1)(D).
Subsec. (c)(1)(E) to (G).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
"(1) be subject to the master calendar requirements under section 482 of the Higher Education Act of 1965 (
"(2) apply to institutional fiscal years beginning on or after January 1, 2023."
Effective Date of 2009 Amendment
Amendment by
Effective Date of 2008 Amendment
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1991 Amendment
Amendment by
Effective Date of 1989 Amendment
Effective Date
Section effective Oct. 17, 1986, except as otherwise provided, see section 2 of
Subsec. (a)(10) of this section applicable only to periods of enrollment beginning on or after July 1, 1987, see section 407(b) of
Regulation Prohibited
1 So in original. The closing parenthesis probably should not appear.
§1094a. Regulatory relief and improvement
(a) Quality Assurance Program
(1) In general
The Secretary is authorized to select institutions for voluntary participation in a Quality Assurance Program that provides participating institutions with an alternative management approach through which individual schools develop and implement their own comprehensive systems, related to processing and disbursement of student financial aid, verification of student financial aid application data, and entrance and exit interviews, thereby enhancing program integrity within the student aid delivery system.
(2) Criteria and consideration
The Quality Assurance Program authorized by this section shall be based on criteria that include demonstrated institutional performance, as determined by the Secretary, and shall take into consideration current quality assurance goals, as determined by the Secretary. The selection criteria shall ensure the participation of a diverse group of institutions of higher education with respect to size, mission, and geographical distribution.
(3) Waiver
The Secretary is authorized to waive for any institution participating in the Quality Assurance Program any regulations dealing with reporting or verification requirements in this subchapter that are addressed by the institution's alternative management system, and may substitute such quality assurance reporting as the Secretary determines necessary to ensure accountability and compliance with the purposes of the programs under this subchapter. The Secretary shall not modify or waive any statutory requirements pursuant to this paragraph.
(4) Determination
The Secretary is authorized to determine—
(A) when an institution that is unable to administer the Quality Assurance Program shall be removed from such program; and
(B) when institutions desiring to cease participation in such program will be required to complete the current award year under the requirements of the Quality Assurance Program.
(5) Review and evaluation
The Secretary shall review and evaluate the Quality Assurance Program conducted by each participating institution and, on the basis of that evaluation, make recommendations regarding amendments to this chapter that will streamline the administration and enhance the integrity of Federal student assistance programs. Such recommendations shall be submitted to the authorizing committees.
(b) Regulatory improvement and streamlining experiments
(1) In general
The Secretary shall continue the voluntary participation of any experimental sites in existence as of July 1, 2007, unless the Secretary determines that such site's participation has not been successful in carrying out the purposes of this section. Any experimental sites approved by the Secretary prior to such date that have not been successful in carrying out the purposes of this section shall be discontinued not later than June 30, 2010.
(2) Report
The Secretary shall review and evaluate the experience of institutions participating as experimental sites and shall, on a biennial basis, submit a report based on the review and evaluation to the authorizing committees. Such report shall include—
(A) a list of participating institutions and the specific statutory or regulatory waivers granted to each institution;
(B) the findings and conclusions reached regarding each of the experiments conducted; and
(C) recommendations for amendments to improve and streamline this chapter, based on the results of the experiment.
(3) Selection
(A) In general
The Secretary is authorized to periodically select a limited number of additional institutions for voluntary participation as experimental sites to provide recommendations to the Secretary on the impact and effectiveness of proposed regulations or new management initiatives.
(B) Waivers
The Secretary is authorized to waive, for any institution participating as an experimental site under subparagraph (A), any requirements in this subchapter, including requirements related to the award process and disbursement of student financial aid (such as innovative delivery systems for modular or compressed courses, or other innovative systems), verification of student financial aid application data, entrance and exit interviews, or other management procedures or processes as determined in the negotiated rulemaking process under
(4) Determination of success
For the purposes of paragraph (1), the Secretary shall make a determination of success regarding an institution's participation as an experimental site based on—
(A) the ability of the experimental site to reduce administrative burdens to the institution, as documented in the Secretary's biennial report under paragraph (2), without creating costs for the taxpayer; and
(B) whether the experimental site has improved the delivery of services to, or otherwise benefitted, students.
(c) "Current award year" defined
For purposes of this section, the term "current award year" means the award year during which the participating institution indicates the institution's intention to cease participation.
(
Editorial Notes
Amendments
2009—Subsec. (b)(1).
Subsec. (b)(4).
2008—Subsec. (a)(5).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3)(A).
Subsec. (b)(3)(B).
"(i) a list of institutions proposed for participation in the experiment and the specific statutory or regulatory waivers proposed to be granted to each institution;
"(ii) a statement of the objectives to be achieved through the experiment; and
"(iii) an identification of the period of time over which the experiment is to be conducted."
Subsec. (b)(3)(C).
1998—
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
§1094b. Assignment of identification numbers
The Secretary shall assign to each participant in subchapter IV programs, including institutions, lenders, and guaranty agencies, a single Department of Education identification number to be used to identify its participation in each of the subchapter IV programs.
(
§1095. Transfer of allotments
In order to offer an arrangement of types of aid, including institutional and State aid which best fits the needs of each individual student, an institution may (1) transfer a total of 25 percent of the institutions 1 allotment under
(
Editorial Notes
Prior Provisions
A prior section 1095,
Amendments
2008—
1992—
1987—
Statutory Notes and Related Subsidiaries
Effective Date of 1992 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
1 So in original. Probably should be "institution's".
§1095a. Wage garnishment requirement
(a) Garnishment requirements
Notwithstanding any provision of State law, a guaranty agency, or the Secretary in the case of loans made, insured or guaranteed under this subchapter that are held by the Secretary, may garnish the disposable pay of an individual to collect the amount owed by the individual, if he or she is not currently making required repayment under a repayment agreement with the Secretary, or, in the case of a loan guaranteed under part B on which the guaranty agency received reimbursement from the Secretary under
(1) the amount deducted for any pay period may not exceed 15 percent of disposable pay, except that a greater percentage may be deducted with the written consent of the individual involved;
(2) the individual shall be provided written notice, sent by mail to the individual's last known address, a minimum of 30 days prior to the initiation of proceedings, from the guaranty agency or the Secretary, as appropriate, informing such individual of the nature and amount of the loan obligation to be collected, the intention of the guaranty agency or the Secretary, as appropriate, to initiate proceedings to collect the debt through deductions from pay, and an explanation of the rights of the individual under this section;
(3) the individual shall be provided an opportunity to inspect and copy records relating to the debt;
(4) the individual shall be provided an opportunity to enter into a written agreement with the guaranty agency or the Secretary, under terms agreeable to the Secretary, or the head of the guaranty agency or his designee, as appropriate, to establish a schedule for the repayment of the debt;
(5) the individual shall be provided an opportunity for a hearing in accordance with subsection (b) on the determination of the Secretary or the guaranty agency, as appropriate, concerning the existence or the amount of the debt, and, in the case of an individual whose repayment schedule is established other than by a written agreement pursuant to paragraph (4), concerning the terms of the repayment schedule;
(6) the employer shall pay to the Secretary or the guaranty agency as directed in the withholding order issued in this action, and shall be liable for, and the Secretary or the guaranty agency, as appropriate, may sue the employer in a State or Federal court of competent jurisdiction to recover, any amount that such employer fails to withhold from wages due an employee following receipt of such employer of notice of the withholding order, plus attorneys' fees, costs, and, in the court's discretion, punitive damages, but such employer shall not be required to vary the normal pay and disbursement cycles in order to comply with this paragraph;
(7) if an individual has been reemployed within 12 months after having been involuntarily separated from employment, no amount may be deducted from the disposable pay of such individual until such individual has been reemployed continuously for at least 12 months; and
(8) an employer may not discharge from employment, refuse to employ, or take disciplinary action against an individual subject to wage withholding in accordance with this section by reason of the fact that the individual's wages have been subject to garnishment under this section, and such individual may sue in a State or Federal court of competent jurisdiction any employer who takes such action. The court shall award attorneys' fees to a prevailing employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the employee, or order such other remedy as may be reasonably necessary.
(b) Hearing requirements
A hearing described in subsection (a)(5) shall be provided prior to issuance of a garnishment order if the individual, on or before the 15th day following the mailing of the notice described in subsection (a)(2), and in accordance with such procedures as the Secretary or the head of the guaranty agency, as appropriate, may prescribe, files a petition requesting such a hearing. If the individual does not file a petition requesting a hearing prior to such date, the Secretary or the guaranty agency, as appropriate, shall provide the individual a hearing under subsection (a)(5) upon request, but such hearing need not be provided prior to issuance of a garnishment order. A hearing under subsection (a)(5) may not be conducted by an individual under the supervision or control of the head of the guaranty agency, except that nothing in this sentence shall be construed to prohibit the appointment of an administrative law judge. The hearing official shall issue a final decision at the earliest practicable date, but not later than 60 days after the filing of the petition requesting the hearing.
(c) Notice requirements
The notice to the employer of the withholding order shall contain only such information as may be necessary for the employer to comply with the withholding order.
(d) No attachment of student assistance
Except as authorized in this section, notwithstanding any other provision of Federal or State law, no grant, loan, or work assistance awarded under this subchapter, or property traceable to such assistance, shall be subject to garnishment or attachment in order to satisfy any debt owed by the student awarded such assistance, other than a debt owed to the Secretary and arising under this subchapter.
(e) "Disposable pay" defined
For the purpose of this section, the term "disposable pay" means that part of the compensation of any individual from an employer remaining after the deduction of any amounts required by law to be withheld.
(
Editorial Notes
Amendments
2006—Subsec. (a)(1).
1998—Subsecs. (d), (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2006 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
§1096. Administrative expenses
(a) Amount of payments
From the sums appropriated for any fiscal year for the purpose of the program authorized under subpart 1 of part A of this subchapter, the Secretary shall reserve such sums as may be necessary to pay to each institution with which he has an agreement under
(b) Purpose of payments
(1) The sums paid to institutions under this part are for the sole purpose of administering the programs described in subsection (a).
(2) If the institution enrolls a significant number of students who are (A) attending the institution less than full time, or (B) independent students, the institution shall use a reasonable proportion of the funds available under this section for financial aid services during times and in places that will most effectively accommodate the needs of such students.
(
Editorial Notes
Prior Provisions
A prior section 1096,
Amendments
2009—Subsec. (a).
2008—Subsec. (b)(1).
1993—Subsec. (a).
1992—Subsec. (a).
Subsec. (b).
1987—Subsec. (a).
1986—Subsec. (a).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1992 Amendment
Amendment by section 446(c) of
Amendment by section 493 of
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
§1096a. Repealed. Pub. L. 102–325, title IV, §494, July 23, 1992, 106 Stat. 631
Section,
§1097. Criminal penalties
(a) In general
Any person who knowingly and willfully embezzles, misapplies, steals, obtains by fraud, false statement, or forgery, or fails to refund any funds, assets, or property provided or insured under this subchapter or attempts to so embezzle, misapply, steal, obtain by fraud, false statement or forgery, or fail to refund any funds, assets, or property, shall be fined not more than $20,000 or imprisoned for not more than 5 years, or both, except if the amount so embezzled, misapplied, stolen, obtained by fraud, false statement, or forgery, or failed to be refunded does not exceed $200, then the fine shall not be more than $5,000 and imprisonment shall not exceed one year, or both.
(b) Assignment of loans
Any person who knowingly and willfully makes any false statement, furnishes any false information, or conceals any material information in connection with the assignment of a loan which is made or insured under this subchapter or attempts to so make any false statement, furnish any false information, or conceal any material information in connection with such assignment shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both.
(c) Inducements to lend or assign
Any person who knowingly and willfully makes an unlawful payment to an eligible lender under part B or attempts to make such unlawful payment as an inducement to make, or to acquire by assignment, a loan insured under such part shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both.
(d) Obstruction of justice
Any person who knowingly and willfully destroys or conceals any record relating to the provision of assistance under this subchapter or attempts to so destroy or conceal with intent to defraud the United States or to prevent the United States from enforcing any right obtained by subrogation under this part, shall upon conviction thereof, be fined not more than $20,000 or imprisoned not more than 5 years, or both.
(e) Access to Department of Education information technology systems for fraud, commercial advantage, or private financial gain
Any person who knowingly uses an access device, as defined in
(
Editorial Notes
Prior Provisions
A prior section 1097,
Amendments
2020—Subsec. (e).
1992—
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by
Guidance
Effective Date of Penalties
§1097a. Administrative subpoenas
(a) Authority
To assist the Secretary in the conduct of investigations of possible violations of the provisions of this subchapter, the Secretary is authorized to require by subpoena the production of information, documents, reports, answers, records, accounts, papers, and other documentary evidence pertaining to participation in any program under this subchapter. The production of any such records may be required from any place in a State.
(b) Enforcement
In case of contumacy by, or refusal to obey a subpoena issued to, any person, the Secretary may request the Attorney General to invoke the aid of any court of the United States where such person resides or transacts business for a court order for the enforcement of this section.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1998, except as otherwise provided in
§1098. Advisory Committee on Student Financial Assistance
(a) Establishment and purpose
(1) There is established in the Department an independent Advisory Committee on Student Financial Assistance (hereafter in this section referred to as the "Advisory Committee") which shall provide advice and counsel to the authorizing committees and to the Secretary on student financial aid matters.
(2) The purpose of the Advisory Committee is—
(A) to provide extensive knowledge and understanding of the Federal, State, and institutional programs of postsecondary student assistance;
(B) to provide technical expertise with regard to systems of needs analysis and application forms;
(C) to make recommendations that will result in the maintenance of access to postsecondary education for low- and middle-income students;
(D) to provide knowledge and understanding of early intervention programs, and to make recommendations that will result in early awareness by low- and moderate-income students and families—
(i) of their eligibility for assistance under this subchapter; and
(ii) to the extent practicable, of their eligibility for other forms of State and institutional need-based student assistance;
(E) to make recommendations that will expand and improve partnerships among the Federal Government, States, institutions of higher education, and private entities to increase the awareness and the total amount of need-based student assistance available to low- and moderate-income students; and
(F) to collect information on Federal regulations, and on the impact of Federal regulations on student financial assistance and on the cost of receiving a postsecondary education, and to make recommendations to help streamline the regulations for institutions of higher education from all sectors.
(b) Independence of Advisory Committee
In the exercise of its functions, powers, and duties, the Advisory Committee shall be independent of the Secretary and the other offices and officers of the Department. Notwithstanding Department of Education policies and regulations, the Advisory Committee shall exert independent control of its budget allocations, expenditures and staffing levels, personnel decisions and processes, procurements, and other administrative and management functions. The Advisory Committee's administration and management shall be subject to the usual and customary Federal audit procedures. Reports, publications, and other documents of the Advisory Committee, including such reports, publications, and documents in electronic form, shall not be subject to review by the Secretary. The recommendations of the Committee shall not be subject to review or approval by any officer in the executive branch, but may be submitted to the Secretary for comment prior to submission to the authorizing committees in accordance with subsection (f). The Secretary's authority to terminate advisory committees of the Department pursuant to section 1233g(b) 1 of this title ceased to be effective on June 23, 1983.
(c) Membership
(1) The Advisory Committee shall consist of 11 members appointed as follows:
(A) Four members shall be appointed by the President pro tempore of the Senate, of whom two members shall be appointed from recommendations by the Majority Leader of the Senate, and two members shall be appointed from recommendations by the Minority Leader of the Senate.
(B) Four members shall be appointed by the Speaker of the House of Representatives, of whom two members shall be appointed from recommendations by the Majority Leader of the House of Representatives, and two members shall be appointed from recommendations by the Minority Leader of the House of Representatives.
(C) Three members shall be appointed by the Secretary, of whom at least one member shall be a student.
(2) Each member of the Advisory Committee, with the exception of a student member, shall be appointed on the basis of technical qualifications, professional experience, and demonstrated knowledge in the fields of higher education, student financial aid, financing post-secondary education, and the operations and financing of student loan guarantee agencies.
(3) The appointment of a member under subparagraph (A) or (B) of paragraph (1) shall be effective upon publication of such appointment in the Congressional Record.
(d) Functions of the Committee
The Advisory Committee shall—
(1) develop, review, and comment annually upon the system of needs analysis established under part F of this subchapter;
(2) monitor, apprise, and evaluate the effectiveness of student aid delivery and recommend improvements;
(3) recommend data collection needs and student information requirements which would improve access and choice for eligible students under this subchapter and assist the Department of Education in improving the delivery of student aid;
(4) assess the impact of legislative and administrative policy proposals;
(5) review and comment upon, prior to promulgation, all regulations affecting programs under this subchapter, including proposed regulations;
(6) recommend to the authorizing committees and to the Secretary such studies, surveys, and analyses of student financial assistance programs, policies, and practices, including the special needs of low-income, disadvantaged, and nontraditional students, and the means by which the needs may be met;
(7) review and comment upon standards by which financial need is measured in determining eligibility for Federal student assistance programs;
(8) appraise the adequacies and deficiencies of current student financial aid information resources and services and evaluate the effectiveness of current student aid information programs;
(9) provide an annual report to the authorizing committees that provides analyses and policy recommendations regarding—
(A) the adequacy of need-based grant aid for low- and moderate-income students; and
(B) the postsecondary enrollment and graduation rates of low- and moderate-income students;
(10) develop and maintain an information clearinghouse to help institutions of higher education understand the regulatory impact of the Federal Government on institutions of higher education from all sectors, in order to raise awareness of institutional legal obligations and provide information to improve compliance with, and to reduce the duplication and inefficiency of, Federal regulations; and
(11) make special efforts to advise Members of Congress and such Members' staff of the findings and recommendations made pursuant to this paragraph.
(e) Operations of the Committee
(1) Each member of the Advisory Committee shall be appointed for a term of 4 years, except that, of the members first appointed—
(A) 4 shall be appointed for a term of 1 year;
(B) 4 shall be appointed for a term of 2 years; and
(C) 3 shall be appointed for a term of 3 years,
as designated at the time of appointment by the Secretary.
(2) Any member appointed to fill a vacancy occurring prior to the expiration of the term of a predecessor shall be appointed only for the remainder of such term. A member of the Advisory Committee serving on August 14, 2008, shall be permitted to serve the duration of the member's term, regardless of whether the member was previously appointed to more than one term.
(3) No officers or full-time employees of the Federal Government shall serve as members of the Advisory Committee.
(4) The Advisory Committee shall elect a Chairman and a Vice Chairman from among its members.
(5) Six members of the Advisory Committee shall constitute a quorum.
(6) The Advisory Committee shall meet at the call of the Chairman or a majority of its members.
(f) Submission to Department for comment
The Advisory Committee may submit its proposed recommendations to the Department of Education for comment for a period not to exceed 30 days in each instance.
(g) Compensation and expenses
Members of the Advisory Committee may each receive reimbursement for travel expenses incident to attending Advisory Committee meetings, including per diem in lieu of subsistence, as authorized by
(h) Personnel and resources
(1) The Advisory Committee may appoint such personnel as may be determined necessary by the Chairman without regard to the provisions of title 5 governing appointments in the competitive service, and may be paid without regard to the provisions of
(2) In carrying out its duties under this chapter, the Advisory Committee shall consult with other Federal agencies, representatives of State and local governments, and private organizations to the extent feasible.
(3)(A) The Advisory Committee is authorized to secure directly from any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality information, suggestions, estimates, and statistics for the purpose of this section and each such department, bureau, agency, board, commission, office, independent establishment, or instrumentality is authorized and directed, to the extent permitted by law, to furnish such information, suggestions, estimates, and statistics directly to the Advisory Committee, upon request made by the Chairman.
(B) The Advisory Committee may enter into contracts for the acquisition of information, suggestions, estimates, and statistics for the purpose of this section.
(4) The Advisory Committee is authorized to obtain the services of experts and consultants without regard to
(5) The head of each Federal agency shall, to the extent not prohibited by law, cooperate with the Advisory Committee in carrying out this section.
(6) The Advisory Committee is authorized to utilize, with their consent, the services, personnel, information, and facilities of other Federal, State, local, and private agencies with or without reimbursement.
(i) Availability of funds
In each fiscal year not less than $800,000, shall be available from the amount appropriated for each such fiscal year from salaries and expenses of the Department for the costs of carrying out the provisions of this section.
(j) Special analyses and activities
The Advisory Committee shall—
(1) monitor and evaluate the modernization of student financial aid systems and delivery processes and simplifications, including recommendations for improvement;
(2) assess the adequacy of current methods for disseminating information about programs under this subchapter and recommend improvements, as appropriate, regarding early needs assessment and information for first-year secondary school students;
(3) assess and make recommendations concerning the feasibility and degree of use of appropriate technology in the application for, and delivery and management of, financial assistance under this subchapter, as well as policies that promote use of such technology to reduce cost and enhance service and program integrity, including electronic application and reapplication, just-in-time delivery of funds, reporting of disbursements and reconciliation;
(4) conduct a review and analysis of regulations in accordance with subsection (l); and
(5) conduct a study in accordance with subsection (m).
(k) Term of Committee
Notwithstanding the sunset and charter provisions of
(l) Review and analysis of regulations
(1) Recommendations
The Advisory Committee shall make recommendations to the Secretary and the authorizing committees for consideration of future legislative action regarding redundant or outdated regulations consistent with the Secretary's requirements under
(2) Review and analysis of regulations
(A) Review of current regulations
To meet the requirements of subsection (d)(10), the Advisory Committee shall conduct a review and analysis of the regulations issued by Federal agencies that are in effect at the time of the review and that apply to the operations or activities of institutions of higher education from all sectors. The review and analysis may include a determination of whether the regulation is duplicative, is no longer necessary, is inconsistent with other Federal requirements, or is overly burdensome. In conducting the review, the Advisory Committee shall pay specific attention to evaluating ways in which regulations under this subchapter affecting institutions of higher education (other than institutions described in
(B) Review and collection of future regulations
The Advisory Committee shall—
(i) monitor all Federal regulations, including notices of proposed rulemaking, for their impact or potential impact on higher education; and
(ii) provide a succinct description of each regulation or proposed regulation that is generally relevant to institutions of higher education from all sectors.
(C) Maintenance of public website
The Advisory Committee shall develop and maintain an easy to use, searchable, and regularly updated website that—
(i) provides information collected in subparagraph (B);
(ii) provides an area for the experts and members of the public to provide recommendations for ways in which the regulations may be streamlined; and
(iii) publishes the study conducted by the National Research Council of the National Academy of Sciences under section 1106 of the Higher Education Opportunity Act.
(3) Consultation
(A) In general
In carrying out the review, analysis, and development of the website required under paragraph (2), the Advisory Committee shall consult with the Secretary, other Federal agencies, relevant representatives of institutions of higher education, individuals who have expertise and experience with Federal regulations, and the review panels described in subparagraph (B).
(B) Review panels
The Advisory Committee shall convene not less than two review panels of representatives of the groups involved in higher education, including individuals involved in student financial assistance programs under this subchapter, who have experience and expertise in the regulations issued by the Federal Government that affect all sectors of higher education, in order to review the regulations and to provide recommendations to the Advisory Committee with respect to the review and analysis under paragraph (2). The panels shall be made up of experts in areas such as the operations of the financial assistance programs, the institutional eligibility requirements for the financial assistance programs, regulations not directly related to the operations or the institutional eligibility requirements of the financial assistance programs, and regulations for dissemination of information to students about the financial assistance programs.
(4) Periodic updates to the authorizing committees
The Advisory Committee shall—
(A) submit, not later than two years after the completion of the negotiated rulemaking process required under
(B) provide periodic updates to the authorizing committees regarding—
(i) the impact of all Federal regulations on all sectors of higher education; and
(ii) suggestions provided through the website for streamlining or eliminating duplicative regulations.
(5) Additional support
The Secretary and the Inspector General of the Department shall provide such assistance and resources to the Advisory Committee as the Secretary and Inspector General determine are necessary to conduct the review and analysis required by this subsection.
(m) Study of innovative pathways to baccalaureate degree attainment
(1) Study required
The Advisory Committee shall conduct a study of the feasibility of increasing baccalaureate degree attainment rates by reducing the costs and financial barriers to attaining a baccalaureate degree through innovative programs.
(2) Scope of study
The Advisory Committee shall examine new and existing programs that promote baccalaureate degree attainment through innovative ways, such as dual or concurrent enrollment programs, changes made to the Federal Pell Grant program, simplification of the needs analysis process, compressed or modular scheduling, articulation agreements, and programs that allow two-year institutions of higher education to offer baccalaureate degrees.
(3) Required aspects of the study
In performing the study described in this subsection, the Advisory Committee shall examine the following aspects of such innovative programs:
(A) The impact of such programs on baccalaureate attainment rates.
(B) The degree to which a student's total cost of attaining a baccalaureate degree can be reduced by such programs.
(C) The ways in which low- and moderate-income students can be specifically targeted by such programs.
(D) The ways in which nontraditional students can be specifically targeted by such programs.
(E) The cost-effectiveness for the Federal Government, States, and institutions of higher education to implement such programs.
(4) Consultation
(A) In general
In performing the study described in this subsection, the Advisory Committee shall consult with a broad range of interested parties in higher education, including parents, students, appropriate representatives of secondary schools and institutions of higher education, appropriate State administrators, administrators of dual or concurrent enrollment programs, and appropriate Department officials.
(B) Consultation with the authorizing committees
The Advisory Committee shall consult on a regular basis with the authorizing committees in carrying out the study required by this subsection.
(5) Reports to authorizing committees
(A) Interim report
The Advisory Committee shall prepare and submit to the authorizing committees and the Secretary an interim report, not later than one year after August 14, 2008, describing the progress made in conducting the study required by this subsection and any preliminary findings on the topics identified under paragraph (2).
(B) Final report
The Advisory Committee shall, not later than three years after August 14, 2008, prepare and submit to the authorizing committees and the Secretary a final report on the study, including recommendations for legislative, regulatory, and administrative changes based on findings related to the topics identified under paragraph (2).
(
Editorial Notes
References in Text
The Higher Education Opportunity Act, referred to in subsec. (l)(4)(A), is
Prior Provisions
A prior section 1098,
Another prior section 491 of
Amendments
2022—Subsec. (k).
2014—Subsec. (k).
2009—Subsec. (l)(2)(A).
2008—Subsec. (a)(1).
Subsec. (a)(2)(D) to (F).
Subsec. (b).
Subsec. (c).
Subsec. (d)(6).
Subsec. (d)(9) to (11).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (j)(1).
Subsec. (j)(4), (5).
"(4) assess the implications of distance education on student eligibility and other requirements for financial assistance under this subchapter, and make recommendations that will enhance access to postsecondary education through distance education while maintaining access, through on-campus instruction at eligible institutions, and program integrity; and
"(5) make recommendations to the Secretary regarding redundant or outdated provisions of and regulations under this chapter, consistent with the Secretary's requirements under
Subsec. (k).
Subsecs. (l), (m).
1998—Subsec. (b).
Subsec. (e)(3) to (6).
Subsec. (g).
"(1) Members of the Advisory Committee who are officers or full-time employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States; but they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by
"(2) Members of the Advisory Committee who are not officers or full-time employees of the United States may each".
Subsec. (h)(1).
Subsec. (i).
Subsec. (j).
"(1) monitor and evaluate the program modifications resulting from the enactment of the Higher Education Amendments of 1992, especially as such amendments relate to the need analysis;
"(2) monitor and evaluate the implementation, pursuant to
"(3) assess the adequacy of current methods for disseminating information about programs under this subchapter and recommend improvements, as appropriate, regarding early needs assessment and information for first-year high school students; and
"(4) assess the adequacy of methods of monitoring student debt burden."
Subsec. (k).
Subsec. (l).
1993—Subsec. (d)(1).
Subsec. (h)(1).
1992—Subsec. (b).
Subsec. (d)(3).
Subsec. (d)(4) to (9).
Subsec. (h)(4).
Subsec. (i).
Subsecs. (j) to (l).
1987—Subsec. (b).
Subsec. (i).
Subsec. (j).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Effective Date of 1993 Amendment
Amendment by
Effective Date of 1987 Amendment
Amendment by
References in Other Laws to GS–16, 17, or 18 Pay Rates
References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, §101(c)(1)] of
1 See References in Text note below.
§1098a. Regional meetings and negotiated rulemaking
(a) Meetings
(1) In general
The Secretary shall obtain public involvement in the development of proposed regulations for this subchapter. The Secretary shall obtain the advice of and recommendations from individuals and representatives of the groups involved in student financial assistance programs under this subchapter, such as students, legal assistance organizations that represent students, institutions of higher education, State student grant agencies, guaranty agencies, lenders, secondary markets, loan servicers, guaranty agency servicers, and collection agencies.
(2) Issues
The Secretary shall provide for a comprehensive discussion and exchange of information concerning the implementation of this subchapter through such mechanisms as regional meetings and electronic exchanges of information. The Secretary shall take into account the information received through such mechanisms in the development of proposed regulations and shall publish a summary of such information in the Federal Register together with such proposed regulations.
(b) Draft regulations
(1) In general
After obtaining the advice and recommendations described in subsection (a)(1) and before publishing proposed regulations in the Federal Register, the Secretary shall prepare draft regulations implementing this subchapter and shall submit such regulations to a negotiated rulemaking process. Participants in the negotiations process shall be chosen by the Secretary from individuals nominated by groups described in subsection (a)(1), and shall include both representatives of such groups from Washington, D.C., and industry participants. The Secretary shall select individuals with demonstrated expertise or experience in the relevant subjects under negotiation, reflecting the diversity in the industry, representing both large and small participants, as well as individuals serving local areas and national markets. The negotiation process shall be conducted in a timely manner in order that the final regulations may be issued by the Secretary within the 360-day period described in
(2) Expansion of negotiated rulemaking
All regulations pertaining to this subchapter that are promulgated after October 7, 1998, shall be subject to a negotiated rulemaking (including the selection of the issues to be negotiated), unless the Secretary determines that applying such a requirement with respect to given regulations is impracticable, unnecessary, or contrary to the public interest (within the meaning of
(c) Applicability of chapter 10 of title 5
(d) Authorization of appropriations
There are authorized to be appropriated in any fiscal year or made available from funds appropriated to carry out this part in any fiscal year such sums as may be necessary to carry out the provisions of this section, except that if no funds are appropriated pursuant to this subsection, the Secretary shall make funds available to carry out this section from amounts appropriated for the operations and expenses of the Department of Education.
(
Editorial Notes
Amendments
2022—Subsec. (c).
2009—Subsec. (a)(1).
Subsec. (a)(2).
2008—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b)(1).
1998—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2009 Amendment
Amendment by
Effective Date of 1998 Amendment
Amendment by
Inapplicability of Master Calendar and Negotiated Rulemaking Requirements
This section inapplicable to amendment made by section 100302(a) of
This section inapplicable to amendments made by section 309 of
This section inapplicable to amendments made by title V of
This section inapplicable to amendments made by section 1860(a)(2) of
This section inapplicable to amendments made by title IV of
This section inapplicable to amendments made by section 402(a) of
This section inapplicable to amendments made by
§1098b. Authorization of appropriations for administrative expenses
There are authorized to be appropriated such sums as may be necessary for fiscal year 1993 and for each succeeding fiscal year thereafter for administrative expenses necessary for carrying out this subchapter, including expenses for staff personnel, program reviews, and compliance activities.
(
§1098c. Repealed. Pub. L. 110–315, title IV, §494E, Aug. 14, 2008, 122 Stat. 3324
Section,
§1098d. Procedures for cancellations and deferments for eligible disabled veterans
The Secretary, in consultation with the Secretary of Veterans Affairs, shall develop and implement a procedure to permit Department of Veterans Affairs physicians to provide the certifications and affidavits needed to enable disabled veterans enrolled in the Department of Veterans Affairs health care system to document such veterans' eligibility for deferments or cancellations of student loans made, insured, or guaranteed under this subchapter. Not later than 6 months after October 7, 1998, the Secretary and the Secretary of Veterans Affairs jointly shall report to Congress on the progress made in developing and implementing the procedure.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1998, except as otherwise provided in
§1098e. Income-based repayment
(a) Definitions
In this section:
(1) Excepted PLUS loan
The term "excepted PLUS loan" means a loan under
(2) Excepted consolidation loan
The term "excepted consolidation loan" means a consolidation loan under
(3) Partial financial hardship
The term "partial financial hardship", when used with respect to a borrower, means that for such borrower—
(A) the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan) to a borrower as calculated under the standard repayment plan under
(B) 15 percent of the result obtained by calculating, on at least an annual basis, the amount by which—
(i) the borrower's, and the borrower's spouse's (if applicable), adjusted gross income; exceeds
(ii) 150 percent of the poverty line applicable to the borrower's family size as determined under
(b) Income-based repayment program authorized
Notwithstanding any other provision of this chapter, the Secretary shall carry out a program under which—
(1) a borrower of any loan made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan) who has a partial financial hardship (whether or not the borrower's loan has been submitted to a guaranty agency for default aversion or had been in default) may elect, during any period the borrower has the partial financial hardship, to have the borrower's aggregate monthly payment for all such loans not exceed the result described in subsection (a)(3)(B) divided by 12;
(2) the holder of such a loan shall apply the borrower's monthly payment under this subsection first toward interest due on the loan, next toward any fees due on the loan, and then toward the principal of the loan;
(3) any interest due and not paid under paragraph (2)—
(A) shall, on subsidized loans, be paid by the Secretary for a period of not more than 3 years after the date of the borrower's election under paragraph (1), except that such period shall not include any period during which the borrower is in deferment due to an economic hardship described in
(B) be capitalized—
(i) in the case of a subsidized loan, subject to subparagraph (A), at the time the borrower—
(I) ends the election to make income-based repayment under this subsection; or
(II) begins making payments of not less than the amount specified in paragraph (6)(A); or
(ii) in the case of an unsubsidized loan, at the time the borrower—
(I) ends the election to make income-based repayment under this subsection; or
(II) begins making payments of not less than the amount specified in paragraph (6)(A);
(4) any principal due and not paid under paragraph (2) shall be deferred;
(5) the amount of time the borrower makes monthly payments under paragraph (1) may exceed 10 years;
(6) if the borrower no longer has a partial financial hardship or no longer wishes to continue the election under this subsection, then—
(A) the maximum monthly payment required to be paid for all loans made to the borrower under part B or D (other than an excepted PLUS loan or excepted consolidation loan) shall not exceed the monthly amount calculated under
(B) the amount of time the borrower is permitted to repay such loans may exceed 10 years;
(7) the Secretary shall repay or cancel any outstanding balance of principal and interest due on all loans made under part B or D (other than a loan under
(A) at any time, elected to participate in income-based repayment under paragraph (1); and
(B) for a period of time prescribed by the Secretary, not to exceed 25 years, meets 1 or more of the following requirements—
(i) has made reduced monthly payments under paragraph (1) or paragraph (6);
(ii) has made monthly payments of not less than the monthly amount calculated under
(iii) has made payments of not less than the payments required under a standard repayment plan under
(iv) has made payments under an income-contingent repayment plan under
(v) has been in deferment due to an economic hardship described in
(8) a borrower who is repaying a loan made under part B or D pursuant to income-based repayment may elect, at any time, to terminate repayment pursuant to income-based repayment and repay such loan under the standard repayment plan; and
(9) the special allowance payment to a lender calculated under
(c) Eligibility determinations
(1) In general
The Secretary shall establish procedures for annually determining the borrower's eligibility for income-based repayment, including verification of a borrower's annual income and the annual amount due on the total amount of loans made, insured, or guaranteed under part B or D (other than an excepted PLUS loan or excepted consolidation loan), and such other procedures as are necessary to effectively implement income-based repayment under this section.
(2) Procedures for eligibility
The Secretary shall—
(A) consider, but is not limited to, the procedures established in accordance with
(B) carry out, with respect to borrowers of any loan made under part D (other than an excepted PLUS loan or excepted consolidation loan), procedures for income-based repayment plans that are equivalent to the procedures carried out under
(d) Special rule for married borrowers filing separately
In the case of a married borrower who files a separate Federal income tax return, the Secretary shall calculate the amount of the borrower's income-based repayment under this section solely on the basis of the borrower's student loan debt and adjusted gross income.
(e) Special terms for new borrowers on and after July 1, 2014
With respect to any loan made to a new borrower on or after July 1, 2014—
(1) subsection (a)(3)(B) shall be applied by substituting "10 percent" for "15 percent"; and
(2) subsection (b)(7)(B) shall be applied by substituting "20 years" for "25 years".
(
Editorial Notes
Amendments
2019—Subsec. (c)(1).
Subsec. (c)(2).
2010—Subsec. (e).
2008—Subsec. (b)(1).
2007—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective July 1, 2009, see section 203(c)(1) of
§1098f. Deferral of loan repayment following active duty
(a) Deferral of loan repayment following active duty
In addition to any deferral of repayment of a loan made under this subchapter pursuant to
(b) Active duty
Notwithstanding
(1) does not include active duty for training or attendance at a service school; but
(2) includes, in the case of members of the National Guard, active State duty.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 2007, see section 1(c) of
§1098g. Exemption from State disclosure requirements
Loans made, insured, or guaranteed pursuant to a program authorized by title IV of the Higher Education Act of 1965 (
(
Editorial Notes
References in Text
The Higher Education Act of 1965, referred to in text, is
Codification
Section was formerly classified to
Section was enacted as part of the Garn-St Germain Depository Institutions Act of 1982, and not as part of title IV of the Higher Education Act of 1965 which comprises this subchapter.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective both with respect to loans made prior to and after Oct. 15, 1982, see section 701(c) of
§1098h. Procedure and requirements for requesting tax return information from the Internal Revenue Service
(a) Notification and approval requirements
(1) Federal student financial aid
In the case of any written or electronic application under
(A) notify such individuals that—
(i) if such individuals provide approval under subparagraph (B)—
(I) the Secretary will have the authority to request that the Secretary of the Treasury disclose return information of such individuals to authorized persons (as defined in
(II) the return information of such individuals may be redisclosed pursuant to clauses (iii), (iv), (v), and (vi) of section 6103(l)(13)(D) of the Internal Revenue Code of 1986, for the relevant purposes described in such section; and
(ii) the failure to provide such approval for the disclosures described in subclauses (I) and (II) of clause (i) will result in the Secretary being unable to calculate eligibility for such aid to such individual; and
(B) require, as a condition of eligibility for such aid, that such individuals affirmatively approve the disclosures described in subclauses (I) and (II) of subparagraph (A)(i).
(2) Income-contingent and income-based repayment
(A) New applicants
In the case of any written or electronic application by an individual for an income-contingent or income-based repayment plan for a loan under part D, the Secretary, with respect to such individual and any spouse of such individual, shall—
(i) provide to such individuals the notification described in paragraph (1)(A)(i);
(ii) require, as a condition of eligibility for such repayment plan, that such individuals—
(I) affirmatively approve the disclosures described in subclauses (I) and (II) of paragraph (1)(A)(i), to the extent applicable, and agree that such approval shall serve as an ongoing approval of such disclosures until the date on which the individual elects to opt out of such disclosures under
(II) provide such information as the Secretary may require to confirm the eligibility of such individual for such repayment plan.
(B) Recertifications
With respect to the first written or electronic recertification (after December 19, 2019) of an individual's income or family size for purposes of an income-contingent or income-based repayment plan (entered into before December 19, 2019) for a loan under part D, the Secretary, with respect to such individual and any spouse of such individual, shall meet the requirements of clauses (i) and (ii) of subparagraph (A) with respect to such recertification.
(3) Total and permanent disability
In the case of any written or electronic application by an individual for a discharge of a loan under this subchapter based on total and permanent disability (within the meaning of
(A) provide to such individual the notification described in paragraph (1)(A)(i)(I); and
(B) require, as a condition of eligibility for such discharge, that such individual—
(i) affirmatively approve the disclosure described in paragraph (1)(A)(i)(I) and agree that such approval shall serve as an ongoing approval of such disclosure until the earlier of—
(I) the date on which the individual elects to opt out of such disclosure under
(II) the first day on which such loan may no longer be reinstated; or
(ii) provide such information as the Secretary may require to confirm the eligibility of such individual for such discharge.
(b) Limit on authority
The Secretary shall only have authority to request that the Secretary of the Treasury disclose return information under
(c) Access to FAFSA information
(1) Redisclosure of information
The information in a complete, unredacted Student Aid Report (including any return information disclosed under
(A) upon request for such information by such applicant, shall be provided to such applicant by—
(i) the Secretary; or
(ii) in a case in which the Secretary has requested that institutions of higher education carry out the requirements of this subparagraph, an institution of higher education that has received such information; and
(B) with the written consent by the applicant to an institution of higher education, may be provided by such institution of higher education as is necessary to a scholarship granting organization (including a tribal organization (defined in
(2) Discussion of information
A discussion of the information in an application described in subsection (a)(1) (including any return information disclosed under
(3) Restriction on disclosing information
A person receiving information under paragraph (1)(B) or (2) with respect to an applicant shall not use the information for any purpose other than the express purpose for which consent was granted by the applicant and shall not disclose such information to any other person without the express permission of, or request by, the applicant.
(4) Definitions
In this subsection:
(A) Student Aid Report
The term "Student Aid Report" has the meaning given the term in section 668.2 of title 34, Code of Federal Regulations (or successor regulations).
(B) Written consent
The term "written consent" means a separate, written document that is signed and dated (which may include by electronic format) by an applicant, which—
(i) indicates that the information being disclosed includes return information disclosed under
(ii) states the purpose for which the information is being disclosed; and
(iii) states that the information may only be used for the specific purpose and no other purposes.
(5) Record keeping requirement
An institution of higher education shall—
(A) keep a record of each written consent made under this subsection for a period of at least 3 years from the date of the student's last date of attendance at the institution; and
(B) make each such record readily available for review by the Secretary.
(
Amendment of Subsection (a)(1)
(1) in subparagraph (A)(ii), by striking "and" after the semicolon;
(2) in subparagraph (B), by striking the period at the end and inserting "; and"; and
(3) by adding at the end the following:
(C) if an individual is pursuing provisional independent student status due to an unusual circumstance, as described in
See 2020 Amendment note below.
Editorial Notes
Amendments
2020—Subsec. (a)(1).
Subsec. (a)(1)(A)(i).
Subsec. (a)(1)(A)(ii).
Subsec. (a)(1)(B).
Subsec. (a)(1)(C).
Subsec. (a)(2)(A)(ii)(I).
Subsec. (a)(3).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2020 Amendment
Amendment by section 702(p) of