H.R. 2899

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2899 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 2899

To provide for accountability in higher education.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 10, 2025

Mr. Takano (for himself, Ms. Lee of Nevada, Mr. Krishnamoorthi, Ms. 
Waters, and Ms. Adams) introduced the following bill; which was 
referred to the Committee on Education and Workforce, and in addition 
to the Committee on the Judiciary, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To provide for accountability in higher education.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Preventing Risky Operations from 
Threatening the Education and Career Trajectories of Students Act of 
2025'' or the ``PROTECT Students Act of 2025''.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
TITLE I--STUDENT AND TAXPAYER PROTECTIONS

Sec. 101. Gainful employment and financial value transparency.
Sec. 102. Borrower defense and substantial misrepresentations.
Sec. 103. Closed school discharge.
Sec. 104. Prohibition on institutions limiting student legal action.
Sec. 105. Incentive compensation.
TITLE II--ENSURING INTEGRITY AT INSTITUTIONS OF HIGHER EDUCATION AND 
INSTITUTIONAL CONTRACTORS

Sec. 201. Updating Federal oversight of third-party servicers.
Sec. 202. Job placement rates.
Sec. 203. Allocation of tuition and fee revenue by title IV 
institutions.
Sec. 204. Past performance.
Sec. 205. Recoupment.
TITLE III--IMPROVING OVERSIGHT

Sec. 301. Enforcement in the Office of Federal Student Aid.
Sec. 302. For-Profit Education Oversight Coordination Committee.
Sec. 303. Establishment and maintenance of complaint resolution and 
tracking system.
Sec. 304. Reforms to eligibility and certification procedures.
Sec. 305. State oversight.
Sec. 306. Accrediting agency oversight.
Sec. 307. Mandatory spending for administrative costs of operating the 
student aid programs.
TITLE IV--IMPROVING ACCESS TO STUDENT AND TAXPAYER INFORMATION

Sec. 401. Reporting and disclosures from institutions of higher 
education.
Sec. 402. Transparency of oversight activities.

SEC. 3. REFERENCES.

Except as otherwise expressly provided in this Act, wherever in 
this Act an amendment or repeal is expressed in terms of an amendment 
to, or a repeal of, a section or other provision, the reference shall 
be considered to be made to that section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).

TITLE I--STUDENT AND TAXPAYER PROTECTIONS

SEC. 101. GAINFUL EMPLOYMENT AND FINANCIAL VALUE TRANSPARENCY.

(a) Defining Gainful Employment Programs.--
(1) Additional institutions.--Section 101(b) (20 U.S.C. 
1001(b)) is amended in paragraph (1), by inserting ``, 
including that meets the standards for debt-to-earnings and 
earnings premium in section 498C,'' after ``gainful employment 
in a recognized occupation''.
(2) Proprietary institution of higher education.--Section 
102(b)(1)(A)(i) (20 U.S.C. 1002(b)(1)(A)(i)) is amended, by 
inserting ``, including that meets the standards for debt-to-
earnings and earnings premium in section 498C'' after ``gainful 
employment in a recognized occupation''.
(3) Postsecondary vocational institution.--Section 
102(c)(1)(A) (20 U.S.C. 1002(c)(1)(A)) is amended, by inserting 
``, including that meets the standards for debt-to-earnings and 
earnings premium in section 498C'' after ``gainful employment 
in a recognized occupation''.
(4) Eligible program.--Section 481(b)(1)(A)(i) (20 U.S.C. 
1088(b)(1)(A)(i)) is amended, by inserting ``, including that 
meets the standards for debt-to-earnings and earnings premium 
in section 498C'' after ``gainful employment in a recognized 
profession''.
(b) Debt-to-Earnings and Earnings Premium.--Subpart 3 of part H of 
title IV (20 U.S.C. 1099c et seq.) is amended by adding at the end the 
following:

``SEC. 498C. DEBT-TO-EARNINGS AND EARNINGS PREMIUM.

``(a) Definitions.--In this section:
``(1) Annual debt-to-earnings rate.--The term `annual debt-
to-earnings rate' means the rate that is calculated for a 
cohort of students by taking the annual loan payment for such 
cohort, as calculated by the Secretary, divided by the median 
annual earnings for such cohort.
``(2) Annual loan payment.--The term `annual loan payment' 
means, for a cohort of students, as defined by the Secretary, 
who completed an eligible program, their total annual payment 
on loans borrowed to enroll in the institution that offered the 
eligible program, measured not less than 2 and not more than 4 
years after their completion.
``(3) Discretionary debt-to-earnings rate.--The term 
`discretionary debt-to-earnings rate' means the rate that is 
calculated for a cohort of students by taking the annual loan 
payment for such cohort, as calculated by the Secretary, 
divided by the discretionary earnings for such cohort.
``(4) Discretionary earnings.--The term `discretionary 
earnings' means, for a cohort of students, as defined by the 
Secretary, who completed an eligible program, the median annual 
earnings minus the amount that is 150 percent of the poverty 
level for an individual, as determined by the Department of 
Health and Human Services.
``(5) Earnings premium.--The term `earnings premium' means 
the amount by which the median annual earnings exceed the 
median earnings for working adults with not more than a high 
school diploma, as determined using data from the Bureau of the 
Census--
``(A) in the State where the institution that 
provides the eligible program is located; or
``(B) if fewer than half of the students in the 
eligible program are from the State where the 
institution that provides the eligible program is 
located, or if the institution is a foreign 
institution, nationally.
``(6) Median annual earnings.--The term `median annual 
earnings' means, for a cohort of students, as defined by the 
Secretary, who completed an eligible program, the midpoint of 
their annual earnings measured not less than 2 and not more 
than 4 years after their completion.
``(b) Standards.--
``(1) In general.--An eligible program does not meet the 
standards for debt-to-earnings or earnings premium if it fails 
the debt-to-earnings rates or fails the earnings premium, as 
described in paragraph (2), in 2 out of any 3 consecutive 
years.
``(2) Failing.--An eligible program--
``(A) fails the debt-to-earnings rates if it has--
``(i) a discretionary debt-to-earnings rate 
equal to or greater than 20 percent; and
``(ii) an annual debt-to-earnings rate 
equal to or greater than 8 percent; and
``(B) fails the earnings premium if it has an 
earnings premium of zero or a negative amount.
``(c) Process.--
``(1) Data match.--In order to ensure compliance with 
paragraph (2), the Commissioner of the Internal Revenue 
Service, the Commissioner of the Social Security 
Administration, and the head of any other Federal agency that 
administers the database of individual-level earnings data 
shall, in coordination with the Secretary, timely ensure 
secure, annual data matches of earnings data with Department of 
Education data to produce the median annual earnings of each 
eligible program.
``(2) Requirements of the secretary.--The Secretary shall--
``(A) on an annual calendar year basis--
``(i) for each eligible program--
``(I) calculate for each award year 
the discretionary debt-to-earnings 
rate, the annual debt-to-earnings rate, 
and the earnings premium for the 
program; and
``(II) publish the discretionary 
debt-to-earnings rate, the annual debt-
to-earnings rate, and the earnings 
premium for the eligible program for 
each award year on a website 
established and maintained by the 
Secretary;
``(ii) for each eligible program that is a 
program of training to prepare students for 
gainful employment in a recognized occupation 
or a graduate or professional degree program 
offered by an institution of higher education 
described in section 101(a), issue a notice of 
determination not later than 45 days after 
completing the data match described in 
paragraph (1), informing the institution that 
provides the program--
``(I) of the final discretionary 
debt-to-earnings rate, the annual debt-
to-earnings rate, and the earnings 
premium for the program, which may not 
be appealed by the institution unless 
the institution believes that the 
Secretary erred in the calculation of 
any such measure;
``(II) of the final determination 
regarding whether the program fails the 
debt-to-earnings rates or fails the 
earnings premium, as described in 
subsection (b)(2);
``(III) whether the program does 
not meet the standards for debt-to-
earnings or earnings premium as 
described in subsection (b)(1) or could 
not meet such standards in the next 
year if it fails the debt-to-earnings 
rates or fails the earnings premium, as 
described in subsection (b)(2), in such 
next year; and
``(IV) whether the institution is 
required to provide warnings to 
enrolled students and prospective 
students of the program's failure, or 
risk of failure, to meet the standards, 
as determined under subclause (III); 
and
``(iii) for each eligible program that is a 
program of training to prepare students for 
gainful employment in a recognized occupation 
that does not meet the standards for debt-to-
earnings and earnings premium as described in 
subsection (b)(1), enforce the consequences 
under subsection (d); and
``(B) develop processes to verify, on an annual 
calendar year basis--
``(i) that each eligible program that is a 
program of training to prepare students for 
gainful employment in a recognized occupation 
or a graduate or professional degree program 
offered by an institution of higher education 
described in section 101(a), provides the 
warning described in subparagraph (A)(ii)(IV), 
if applicable; and
``(ii) that each eligible program that is a 
program of training to prepare students for 
gainful employment in a recognized occupation 
that does not meet the standards for debt-to-
earnings or earnings premium as described in 
subsection (b)(1), does not receive funds as 
described in subsection (d).
``(d) Consequences of Not Meeting Standards.--
``(1) No disbursement of funds for enrollment in ineligible 
programs.--An institution may not disburse program funds under 
this title to students enrolled in a program of training to 
prepare students for gainful employment in a recognized 
occupation that does not meet the standards for debt-to-
earnings and earnings premium as described in this section.
``(2) Time period to reestablish eligibility.--An 
institution may not seek to reestablish the eligibility of a 
program of training to prepare students for gainful employment 
in a recognized occupation that does not meet the standards for 
debt-to-earnings and earnings premium as described in this 
section or establish the eligibility of a program of training 
to prepare students for gainful employment in a recognized 
occupation that is substantially similar to the program that 
did not meet such standards until the date that is 3 years 
after the date of the notice of determination issued under 
subsection (c)(2)(A)(ii) that the program of training to 
prepare students for gainful employment in a recognized 
occupation does not meet the standards.
``(e) Regulations.--The Secretary shall issue regulations to carry 
out this section not later than 1 year after the date of enactment of 
the Preventing Risky Operations from Threatening the Education and 
Career Trajectories of Students Act of 2025, except that such 
regulations shall not be subject to the requirements of sections 482 or 
492.''.

SEC. 102. BORROWER DEFENSE AND SUBSTANTIAL MISREPRESENTATIONS.

(a) Borrower Defense to Repayment.--Section 455(h) (20 U.S.C. 
1087e(h)) is amended to read as follows:
``(h) Borrower Defenses.--
``(1) In general.--Notwithstanding any other provision of 
State or Federal law, the Secretary shall discharge a covered 
loan in repayment made to a borrower with a defense to 
repayment of the loan, as described in this section.
``(2) Definitions.--In this subsection:
``(A) Repayment.--The term `repayment' means the 
period after any in-school deferment or grace period 
and before a loan is paid in full other than by a 
consolidation loan made under this title, including, 
without limitation, a loan in default.
``(B) Covered loan.--The term `covered loan' means 
a loan made, insured, or guaranteed under this title 
that has an outstanding balance comprised in whole or 
in part by repayment obligations incurred to cover the 
cost of attendance at an institution of higher 
education.
``(3) Basis for defense to repayment.--
``(A) In general.--For purposes of discharge under 
this section, a borrower defense to repayment is 
established when the Secretary concludes by a 
preponderance of the evidence that a qualifying act, 
omission, or event occurred, and the student whose cost 
of attendance was paid in whole or in part by the 
proceeds of a covered loan suffered detriment in the 
nature and degree warranting a borrower defense 
discharge.
``(B) Qualifying acts, omissions, or events.--A 
qualifying act, omission, or event includes without 
limitation any of the following:
``(i) The institution, one of its 
representatives, or a third-party servicer of 
the institution made a substantial 
misrepresentation (as described in section 
481(g)), directly or indirectly, to the 
borrower in connection with the borrower's 
decision to attend, or to continue attending, 
the institution or the borrower's decision to 
take out a covered loan.
``(ii) The institution failed to perform 
its obligations under the terms of a contract 
with the student and such obligation was 
undertaken as consideration or in exchange for 
the borrower's decision to attend, or to 
continue attending, the institution, for the 
borrower's decision to take out a covered loan, 
or for funds disbursed in connection with a 
covered loan.
``(iii) The institution engaged in 
aggressive and deceptive recruitment conduct or 
tactics in connection with the borrower's 
decision to attend, or to continue attending, 
the institution or the borrower's decision to 
take out a covered loan. Aggressive and 
deceptive recruitment tactics or conduct 
include actions by the institution, any of its 
representatives, or any entity, organization, 
or person with whom the institution has an 
agreement to provide educational programs, 
marketing, recruitment, or lead generation 
services that pressure a student to make 
enrollment or loan-related decisions, take 
unreasonable advantage of a student's lack of 
knowledge, discourage a student or prospective 
student from consulting an advisor prior to 
making enrollment or loan-related decisions, 
use threatening or abusive language, or 
repeatedly engage in unsolicited contact.
``(iv) The borrower, whether as an 
individual or as a member of a class, or a 
governmental agency has obtained against the 
institution a favorable judgment based on State 
or Federal law in a court or administrative 
tribunal of competent jurisdiction based on the 
institution's act or omission relating to the 
making of a covered loan, or the provision of 
educational services for which the loan was 
provided, notwithstanding any possible appeal.
``(v) The Secretary sanctioned or otherwise 
took adverse action against the institution at 
which the borrower enrolled, based on the 
institution's acts or omissions that could give 
rise to a borrower defense under clause (i), 
(ii), or (iii).
``(vi) The institution committed any act or 
omission that relates to the making of the 
covered loan for enrollment at the institution 
or the provision of educational services for 
which the covered loan was provided that would 
give rise to a cause of action against the 
institution under applicable State law without 
regard to any statute of limitations.
``(C) Determination whether detriment warrants 
discharge.--In determining whether the nature and 
degree of detriment warrants a borrower defense 
discharge, the Secretary shall consider the totality of 
the circumstances, including the nature and degree of 
detriment shown by previous recipients of borrower 
defense discharge, and drawing all inferences and 
presumptions warranted by the evidence under the 
circumstances.
``(4) Effect of discharge.--To effectuate a borrower 
defense discharge of a covered loan in repayment, the Secretary 
shall carry out the following:
``(A) Discharge all amounts owed to the Secretary, 
including interest and fees, on the covered loan, 
subject to the limitation in paragraph (5). In the case 
of a covered loan that is a Federal Direct 
Consolidation Loan or a Federal Consolidation Loan 
under section 428C comprised only in part of repayment 
obligations incurred to cover the cost of attendance at 
the institution whose acts or omissions are the basis 
of the discharge, the Secretary may discharge less than 
the total amount of the covered loan when loan account 
records clearly establish the portion of the covered 
loan not subject to the defense to repayment.
``(B) Reimburse all payments previously made to the 
Secretary on the covered loan, subject to the 
limitation in paragraph (5).
``(C) For borrowers in default, determine that the 
borrower is not in default on the covered loan and 
therefore not ineligible to receive assistance under 
this title on the basis of default on the covered loan.
``(D) Update or delete adverse reports the 
Secretary previously made to consumer reporting 
agencies regarding the covered loan.
``(E) Remove the discharged covered loan and any 
grant made under this title related to the student's 
attendance at the institution whose acts are omissions 
are the basis of the discharge from the borrower's loan 
history for purposes of calculating eligibility for 
further grants and loans under this title.
``(5) Limitation on discharge and reimbursement.--The 
Secretary may reduce the amount of discharge and reimbursement 
provided for in paragraph (4) if the borrower received a money 
payment from the institution or related entity in compensation 
for the acts or omissions forming the basis of the borrower 
defense. In deciding whether a reduction is warranted, and in 
what amount, the Secretary shall consider the extent to which 
the payment received by the borrower compensated for non-
economic damages, out-of-pocket expenses, or payments 
previously made directly to the institution, and whether the 
borrower has non-Federal student loans as a result of attending 
the institution. The Secretary may not reduce the amount of 
discharge and reimbursement provided for in a covered loan in 
paragraph (4) because the borrower received funds from a State 
tuition recovery fund.
``(6) Finality.--A borrower defense discharge is final upon 
the Secretary's notification to the borrower. The Secretary may 
not thereafter revoke or reduce the amount of discharge or 
reimbursement, absent a finding of fraud on the part of the 
borrower.
``(7) Group process.--Where substantial misrepresentations 
are widespread, the Secretary shall seek to assess the 
eligibility of all potentially affected borrowers as a group or 
in multiple groups to expedite the process. If such discharges 
are approved, the Secretary shall discharge the covered loans 
of all eligible borrowers in the group, in accordance with the 
processes in this section and without requiring application 
materials, to the extent practicable.
``(8) Regulations.--The Secretary may promulgate 
regulations or otherwise prescribe procedures in relation to 
borrower defense discharge, consistent with the provisions of 
this section. Nothing in this section modifies or displaces 
existing powers, authorities, and obligations of the Secretary, 
including obligations imposed under chapter 5 of title 5, 
United States Code (commonly known as the `Administrative 
Procedures Act').''.
(b) Substantial Misrepresentation.--Section 481 (20 U.S.C. 1088) is 
amended by adding at the end the following:
``(g) Substantial Misrepresentation.--In this title, the term 
`substantial misrepresentation', when used with respect to an 
institution of higher education, includes--
``(1) any statement about the nature of the institution's 
educational program, its financial charges, or the 
employability or earnings of its graduates that is false, 
erroneous, or has the likelihood or tendency to mislead under 
the circumstances, on which the person to whom it was made 
could reasonably be expected to rely, or has reasonably relied, 
to that person's detriment; and
``(2) any omission of fact, such as the concealment, 
suppression, or absence of material information about the 
nature of the institution's educational program, its financial 
charges, the employability or earnings of its graduates, the 
availability of enrollment openings in the student's desired 
program, the factors that would prevent an applicant from 
meeting the legal or other requirements to be employed, 
licensed, or certified in the field for which the training is 
provided which a reasonable person would have considered in 
making a decision to attend, or to continue attending, the 
institution or to take out a covered loan.''.

SEC. 103. CLOSED SCHOOL DISCHARGE.

Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended to read as 
follows:
``(1) In general.--
``(A) In general.--If a borrower who received, on 
or after January 1, 1986, a loan made, insured, or 
guaranteed under this part and the student borrower, or 
the student on whose behalf a parent borrowed, is 
unable to complete the program in which such student is 
enrolled due to the closure of the institution or if 
such student's eligibility to borrow under this part 
was falsely certified by the eligible institution or 
was falsely certified as a result of a crime of 
identity theft, or if the institution failed to make a 
refund of loan proceeds which the institution owed to 
such student's lender, then the Secretary shall 
discharge the borrower's liability on the loan 
(including interest and collection fees) by repaying 
the amount owed on the loan.
``(B) Additional discharge.--
``(i) In general.--In addition to the 
authorization of discharge under subparagraph 
(A), the Secretary shall discharge a borrower's 
(including an endorser's) liability on a 
Federal Direct Loan made under part D if--
``(I) the institution at which the 
borrower who took the loan (or on whose 
behalf it was taken or endorsed) was 
enrolled, ceased to provide educational 
instruction as a whole, or ceased to 
provide instruction in the programs in 
which more than 50 percent of the 
students were enrolled; or
``(II) the borrower who took the 
loan (or on whose behalf it was taken 
or endorsed) was enrolled in an 
institution at any time within the 
period not earlier than 180 days before 
the date of the closure of the 
institution.
``(ii) Extension of 180 days.--The 
Secretary may extend the 180 day period 
described in clause (i)(II) in cases where 
exceptional circumstances are demonstrated, 
including if--
``(I) the institution was placed on 
probation or order to show cause or 
approval was withdrawn or terminated by 
an accrediting agency or association or 
an institution's institutional 
accreditor, or a State authorizing or 
licensing authority;
``(II) the institution was placed 
on Heightened Cash Monitoring status by 
the Department or was placed on 
Provisional Program Participation 
Approval status, or the institution's 
participation in a program under this 
title was terminated by the Department;
``(III) the institution was found 
to have violated Federal or State law 
related to enrolling or providing 
education services to students by a 
Federal or State Government agency, or 
is the subject of a Federal or State 
court judgment that the institution 
violated laws related to enrolling or 
providing education services to 
students;
``(IV) the teach-out plan (as 
required under section 487(f)) of the 
borrower's educational program exceeds 
the 180 day period described in clause 
(i)(II);
``(V) the institution responsible 
for the teach-out of the borrower's 
educational program fails to perform 
the material terms of the teach-out 
plan (as required under section 
487(f)), such that the borrower does 
not have a reasonable opportunity to 
complete the borrower's program of 
study; and
``(VI) the institution permanently 
closed all or most of its in-person 
locations while maintaining online 
programs or permanently closed many 
programs.
``(C) No application requirement.--A borrower who 
took a loan (or on whose behalf it was taken or 
endorsed) that is eligible for discharge under this 
paragraph due to institutional closure is entitled to 
discharge without an application or statement from the 
borrower 1 year after the institution's closure date if 
the student did not complete the program at the 
institution.
``(D) Pursing claims.--After discharging liability 
on a loan under this paragraph, the Secretary shall 
pursue any claim available to a borrower against the 
institution and its affiliates and principals or settle 
the loan obligation pursuant to the financial 
responsibility authority under subpart 3 of part H.''.

SEC. 104. PROHIBITION ON INSTITUTIONS LIMITING STUDENT LEGAL ACTION.

(a) Enforcement of Arbitration Agreements.--
(1) In general.--Chapter 1 of title 9, United States Code, 
(relating to the enforcement of arbitration agreements) shall 
not apply to an enrollment agreement made between a student and 
an institution of higher education.
(2) Definition.--In this section, the term ``institution of 
higher education'' has the meaning given such term in section 
102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
(b) Prohibition on Limitations on Ability of Students To Pursue 
Claims Against Certain Institutions of Higher Education.--Section 
487(a) (20 U.S.C. 1094(a)) is amended by adding at the end the 
following:
``(30) The institution--
``(A) will not require any student to agree to, and 
will not enforce, any limitation or restriction 
(including a limitation or restriction on any available 
choice of applicable law, a jury trial, or venue) on 
the ability of a student to pursue a claim, 
individually or with others, against an institution in 
court; and
``(B) will provide written notification to students 
enrolled at the institution that any limitation or 
restriction on the ability of a student to pursue a 
claim, individually or with others, against an 
institution in court contained in any enrollment or 
other agreement with a student will not be enforced.''.
(c) Private Right of Action.--
(1) In general.--
(A) Private right of action.--A violation described 
in subparagraph (B) shall be subject to a private right 
of action enforceable by a student or former student of 
an institution of higher education, on behalf of such 
individual or such individual and a class, in an 
appropriate district court of the United States or any 
other court of competent jurisdiction that also has 
jurisdiction over the defendant. The student or former 
student may seek any relief provided under section 
455(h) for such violation, or any remedies otherwise 
available to the individual under law and equity.
(B) Violations.--A violation described in this 
subparagraph is any of the following:
(i) A substantial misrepresentation, 
including a substantial omission of fact.
(ii) A violation of section 487(a)(20) of 
the Higher Education Act of 1965 (20 U.S.C. 
1094(a)(20)).
(iii) A violation of the default rate 
regulations promulgated by the Secretary under 
section 435(m)(3) of the Higher Education Act 
of 1965 (20 U.S.C. 1085(m)(3)).
(iv) A violation of the program integrity 
regulations promulgated by the Secretary under 
the Higher Education Act of 1965 (20 U.S.C. 
1001 et seq.), including regulations 
promulgated to carry out section 102, section 
455, and part H of such Act.
(2) Amount of damages.--
(A) In general.--Any institution of higher 
education, third party servicer that contracts with 
such institution, or third party contractor that 
commits a substantial misrepresentation may be held 
liable to a student or former student of that 
institution in an amount equal to the sum of--
(i) any actual damage sustained by such 
individual as a result of each substantial 
misrepresentation;
(ii) any additional damages as the court 
may allow; and
(iii) in the case of any successful action 
to enforce the foregoing liability, the costs 
of the action, together with a reasonable 
attorney's fee as determined by the court.
(B) Ability to assess punitive damages.--
(i) In general.--On a finding by the court 
that an institution of higher education, third 
party servicer that contracts with such 
institution, or third party contractor has 
committed a violation described in paragraph 
(1)(B) with actual or constructive knowledge or 
reckless disregard for such violation, the 
court may assess punitive damages not to exceed 
threefold the sum of actual damages sustained 
by the plaintiff or class, including court 
costs and a reasonable attorney's fee.
(ii) Factors considered by the court.--In 
determining the amount of liability in any 
action under clause (i), the court shall 
consider, among other relevant factors--
(I) in any individual action under 
this subsection, the frequency and 
persistence of noncompliance by the 
institution of higher education, third 
party servicer that contracts with such 
institution, or third party contractor 
and the nature of such noncompliance; 
or
(II) in any class action under this 
subsection, in addition to the factors 
listed in subclause (I), the financial 
resources of the institution of higher 
education, third party servicer that 
contracts with such institution, or 
third party contractor and the number 
of persons adversely affected.
(3) Jurisdiction.--An action to enforce any liability 
created by this subsection may be brought in any appropriate 
United States district court without regard to the amount in 
controversy, or in any other court of competent jurisdiction.
(d) Prohibition on Transcript Withholding.--Section 487(a) (20 
U.S.C. 1094(a)), as amended by subsection (b), is further amended by 
adding at the end the following:
``(31) The institution--
``(A) will not withhold official transcripts 
related to a balance owed by the student to the 
institution; and
``(B) will provide an official transcript to a 
student upon request by the student.''.

SEC. 105. INCENTIVE COMPENSATION.

(a) Incentive Compensation.--
(1) Revocation.--Example 2-B of Question 2 of the 
Department of Education Dear Colleague Letter GEN-11-05 (March 
17, 2011) is revoked.
(2) Prohibition.--The Department of Education may not issue 
a regulation or subregulatory guidance that would establish an 
exception to the prohibition provided in section 487(a)(20) of 
the Higher Education Act of 1965 (20 U.S.C. 1094(a)(20)).
(b) Institutional Compliance With the Incentive Compensation Ban.--
Section 487(a)(20) (20 U.S.C. 1094(a)(20)) is amended--
(1) by striking ``The institution'' and inserting ``(A) The 
institution''; and
(2) by adding at the end the following:
``(B) Not later than 1 year after the date of enactment of 
the Preventing Risky Operations from Threatening the Education 
and Career Trajectories of Students Act of 2025, the 
institution shall attest to the Secretary that the institution 
is in compliance with subparagraph (A) notwithstanding the 
guidance provided in Department of Education Example 2-B of 
Question 2 of Dear Colleague Letter GEN-11-05 (March 17, 2011), 
in such form as required by the Secretary. If the institution 
is not in compliance as of the date of enactment of the 
Preventing Risky Operations from Threatening the Education and 
Career Trajectories of Students Act of 2025, the Secretary 
shall revoke the institution's program participation agreement 
under this section.
``(C) Following the attestation required under subparagraph 
(B), the institution shall annually provide verification from 
an independent auditor that the institution is in compliance 
with subparagraph (A).''.

TITLE II--ENSURING INTEGRITY AT INSTITUTIONS OF HIGHER EDUCATION AND 
INSTITUTIONAL CONTRACTORS

SEC. 201. UPDATING FEDERAL OVERSIGHT OF THIRD-PARTY SERVICERS.

Section 481(c)(1) (20 U.S.C. 1088(c)(1)) is amended by inserting 
``, including related to the delivery of funds under this title, 
recruitment or retention of students, compliance with cohort default 
rate (as defined in section 435(m)) requirements, the development and 
delivery of instructional content, and other applicable activities as 
described by the Secretary'' after ``title''.

SEC. 202. JOB PLACEMENT RATES.

(a) Definition.--Section 481 (20 U.S.C. 1088), as amended by 
section 102(b), is further amended by adding at the end the following:
``(h) Job Placement Rates.--The Secretary shall establish a single 
definition of `job placement rate' for purposes of this Act that 
ensures consistent determinations across institutions and accrediting 
agencies regarding when students are placed in a job, to improve 
accuracy and minimize the opportunity for misleading or deceptive 
information.''.
(b) Program Participation Agreement.--Section 487(a)(8) (20 U.S.C. 
1094(a)(8)) is amended to read as follows:
``(8) In the case of an institution that advertises or 
discloses job placement rates to prospective students or that 
is required to provide regular reporting of job placement rates 
to an accrediting agency, State authorizer, or other regulator, 
the institution will utilize the definition provided under 
section 481(h), and shall make available to prospective 
students, at or before the time of application--
``(A) the most recent available data concerning 
employment statistics, graduation statistics, the 
methodology used by the institution to calculate the 
job placement rate, and any other information necessary 
to substantiate the truthfulness of the advertisements 
or disclosures, 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.''.
(c) Accrediting Agency Recognition.--Section 496(a)(5)(A) (20 
U.S.C. 1099b(a)(5)(A)) is amended by inserting ``, as defined pursuant 
to section 481(h)'' before the semicolon.
(d) Nonapplicability of Rulemaking Requirements.--The amendments 
made under this section shall not be subject to the requirements 
provided under section 492 (20 U.S.C. 1098a).

SEC. 203. ALLOCATION OF TUITION AND FEE REVENUE BY TITLE IV 
INSTITUTIONS.

Section 498(c) (20 U.S.C. 1099c(c)) is amended by inserting at the 
end the following:
``(7) Requirement to Spend Revenue.--
``(A) In general.--
``(i) Beginning in academic year 2026-2027 and in 
each academic year thereafter through 2031-2032, each 
institution of higher education, in order to be 
eligible to participate in programs under this title, 
shall spend an amount equal to not less than 30 percent 
of their tuition and fee revenue (net of allowances and 
discounts) on instruction.
``(ii) Beginning in academic year 2027-2028 and in 
each academic year thereafter through 2030-2031, the 
Secretary shall assess the data described in 
subparagraph (B) and issue a report that identifies the 
following:
``(I) The total amount of spending on 
instruction for each institution.
``(II) The total amount of spending on 
student services for each institution, 
excluding advertising, recruiting, marketing, 
compensation of executives or officers, 
lobbying, and other pre-enrollment expenses, 
consistent with section 132(l).
``(III) Tuition and fee revenue (net of 
allowances and discounts) for each institution.
``(IV) The median increase in total 
spending on student services and instruction 
combined relative to spending on instruction 
relative to tuition and fee revenue (net of 
allowances and discounts).
``(V) Other relevant information the 
Secretary determines appropriate to include.
``(iii) In academic year 2031-2032, the Secretary 
shall issue a regulation that establishes a minimum 
threshold percentage for institutional spending on 
instruction and student services combined that shall 
be--
``(I) not less than 30 percent; and
``(II) consistent with the median increase 
in total spending, as identified under clause 
(ii)(IV) averaged across academic years 2028-
2029, 2029-2030, and 2030-2031.
``(iv) Beginning in academic year 2031-2032 and in 
each academic year thereafter, each institution of 
higher education, in order to be eligible to 
participate in programs under this title, shall spend 
an amount equal to not less than the threshold 
percentage established under clause (iii) of their 
tuition and fee revenue (net of allowances and 
discounts) on instruction and student services 
combined.
``(B) Reporting from institutions.--The Secretary shall use 
data from reports received and definitions established under 
section 132(l) to carry out this paragraph.
``(C) Warnings.--The Secretary shall--
``(i) establish through regulation appropriate 
thresholds for an institution of higher education that 
meets the spending requirements under clauses (i) and 
(iv) of subparagraph (A), but which is at risk of 
missing such thresholds; and
``(ii) require each institution of higher education 
that is at risk of missing such thresholds to provide 
warnings to prospective students and enrolled students 
of the institution regarding the low instructional 
spending.
``(D) Regulations.--The Secretary shall issue such 
regulations as determined necessary by the Secretary to ensure 
compliance with the requirements of this paragraph, taking into 
consideration cost and convenience.''.

SEC. 204. PAST PERFORMANCE.

Section 487(a)(16) (20 U.S.C. 1094(a)(16)) is amended by inserting 
at the end the following:
``(C) The institution will not knowingly employ an 
individual who was an owner, director, officer, or employee who 
exercised substantial control over an institution that owes a 
liability.
``(D) The institution will not knowingly--
``(i) employ an individual who was--
``(I) an owner, director, officer, or 
employee of an institution that has--
``(aa) been found to have engaged 
in fraud, misuse of funds, or any 
material violation of law; or
``(bb) had its participation in 
programs under this title terminated, 
its certification revoked, or its 
application for certification or 
recertification for participation in 
such programs denied; or
``(II) a 10 percent-or-higher equity owner, 
director, officer, principal, or executive of, 
or contractor affiliated with, another 
institution in any year in which the other 
institution incurred a loss of Federal funds, 
as determined by the Secretary, in excess of 5 
percent of the other institution's annual funds 
under this title; or
``(ii) contract with any institution, third-party 
servicer, individual, agency, or organization that has, 
or whose owners, officers, or employees have--
``(I) been found to have engaged in fraud, 
misuse of funds, or any material violation of 
law;
``(II) had its participation in programs 
under this title terminated, its certification 
revoked, or its application for certification 
or recertification for participation in such 
programs denied; or
``(III) been a 10 percent-or-higher equity 
owner, director, officer, principal, executive 
of, or contractor affiliated with, another 
institution in any year in which the other 
institution incurred a loss of Federal funds, 
as determined by the Secretary, in excess of 5 
percent of the other institution's annual funds 
under this title.''.

SEC. 205. RECOUPMENT.

(a) Clarifying the Authority To Recoup Liabilities From Title IV 
Institutions.--Section 487(c)(1) (20 U.S.C. 1094(c)(1)) is amended by 
striking subparagraph (F) and inserting the following:
``(F) the limitation, suspension, or termination of 
the participation in any program under this title of an 
eligible institution, the recoupment of liabilities 
established pursuant to section 493E, 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 
title, any regulation prescribed under this title, 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.''.
(b) Recoupment of Liabilities.--Part G of title IV (20 U.S.C. 1088 
et seq.) is amended by adding at the end the following:

``SEC. 493E. RECOUPMENT.

``(a) In General.--The Secretary shall assess liabilities and seek 
to recoup funds provided under this title from an institution of higher 
education as a result of student loan discharges, findings from program 
reviews or compliance audits, or due to other forms of misconduct or 
noncompliance.
``(b) Waiver Authority.--The Secretary may waive some or all of the 
liabilities described in subsection (a) based on the individual 
circumstances of the institution.''.
(c) Owner Signatures.--Section 498(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1099c(b)) is amended--
(1) in paragraph (4), by striking ``and'' after the 
semicolon;
(2) in paragraph (5), by striking the period at the end and 
inserting ``; and''; and
(3) by adding at the end the following:
``(6) requires both an authorized representative of the 
institution and, if applicable, an authorized representative of 
any entity with ownership and substantial control over the 
institution to sign the program participation agreement, as 
described under section 487, for the institution, which shall 
ensure that the institution and its owner, if applicable, agree 
to repay any liabilities assessed against the institution by 
the Secretary.''.

TITLE III--IMPROVING OVERSIGHT

SEC. 301. ENFORCEMENT IN THE OFFICE OF FEDERAL STUDENT AID.

(a) Enforcement Unit Established in the Office of Federal Student 
Aid.--Section 141 (20 U.S.C. 1018) is amended--
(1) by redesignating subsections (g) through (i) as 
subsections (h) through (j), respectively; and
(2) by inserting after subsection (f) the following:
``(g) Enforcement Unit.--
``(1) In general.--The Chief Operating Officer, in 
consultation with the Secretary, shall establish an enforcement 
unit within the PBO (referred to in this section as the 
`enforcement unit').
``(2) Appointment.--
``(A) Chief enforcement officer.--The Chief 
Operating Officer, in consultation with the Secretary, 
shall appoint a Chief Enforcement Officer as a senior 
manager, in accordance with subsection (e), to perform 
the functions described in this subsection. The Chief 
Enforcement Officer shall report solely and directly to 
the Chief Operating Officer.
``(B) Bonus.--Notwithstanding subsection (e), the 
Chief Enforcement Officer may receive a bonus, 
separately determined from the methodology which 
applies to the calculation of bonuses for other senior 
managers, based upon the Chief Operating Officer's 
evaluation of the Chief Enforcement Officer's 
performance in relation to the goals set forth in a 
performance agreement related to the specific duties of 
the enforcement unit.
``(3) Duties.--The enforcement unit shall--
``(A) receive, process, and analyze allegations and 
complaints regarding the potential violation of Federal 
or State law (including civil and criminal law) or 
other unfair, deceptive, or abusive acts or practices, 
by institutions of higher education, third-party 
servicers that contract with such institutions, and 
loan servicers;
``(B) investigate and coordinate investigations of 
potential or actual misconduct of institutions of 
higher education, third-party servicers that contract 
with such institutions, and loan servicers, including 
engaging in a regular program of secret shopping at 
online and campus-based institutions of higher 
education;
``(C) develop and implement a written policy for 
the enforcement of the ban on prohibited incentive 
compensation not less than annually, which may include 
automatic triggers for inquiries by the Department or 
regular `secret shopper' or audit-based investigations, 
and shall update such policy as needed; and
``(D) enforce compliance with laws governing 
Federal student financial assistance programs under 
title IV, including through the use of an emergency 
action in accordance to section 487(c)(1)(I), the 
limitation, suspension, or termination of the 
participation of an eligible institution in a program 
under title IV, or the imposition of a civil penalty in 
accordance with section 487(c)(3)(B).
``(4) Coordination and staffing.--The enforcement unit 
shall--
``(A) coordinate with relevant Federal and State 
agencies and oversight bodies, including the For-Profit 
Education Oversight Coordination Committee established 
under section 124; and
``(B) hire staff, (including by appointing not more 
than 10 individuals in positions of excepted service, 
as described in subsection (h)(3)) with such expertise 
as is necessary to conduct investigations, respond to 
allegations and complaints, and enforce compliance with 
laws governing Federal student financial assistance 
programs under title IV.
``(5) Divisions.--
``(A) In general.--The enforcement unit shall have 
separate divisions with the following focus areas:
``(i) An investigations division to 
investigate potential or actual misconduct at 
institutions of higher education, third-party 
servicers that contract with such institutions, 
and loan servicers.
``(ii) A division focused on evaluating the 
claims of borrowers who assert a defense to 
repayment of Federal student loans, or groups 
of borrowers who qualify to assert such a 
defense to repayment, under section 455(h).
``(iii) A division focused on oversight of 
the Jeanne Clery Disclosure of Campus Security 
Policy and Campus Crime Statistics Act, the 
reporting of crime and fire statistics by 
institutions of higher education, and the 
oversight and enforcement of section 120 
(relating to drug and alcohol abuse 
prevention).
``(iv) A division to administer the 
Secretary's authority to fine, limit, suspend, 
terminate, or take action against institutions 
of higher education, and third-party servicers 
that contract with such institutions, 
participating in the Federal student financial 
assistance programs under title IV.
``(v) A division that administers a program 
of compliance monitoring and oversight of 
institutions of higher education, and third-
party servicers that contract with such 
institutions, including systems and procedures 
to support the eligibility, certification, and 
oversight of program participants, for all 
institutions of higher education participating 
in the Federal student financial assistance 
programs under title IV.
``(vi) Any other division that the Chief 
Enforcement Officer, in coordination with the 
Chief Operating Officer and the Secretary, 
determines is necessary.
``(B) Reporting.--The staff of each division 
described in subparagraph (A) shall report to the Chief 
Enforcement Officer.
``(6) Actions recommended.--The Chief Enforcement Officer 
may recommend, as appropriate to the particular circumstance, 
that the Chief Operating Officer--
``(A) terminate, suspend, or limit an institution 
of higher education or a third-party servicer that 
contracts with such institution from participation in 1 
or more programs under title IV (in accordance with 
section 487), or provisionally certify such 
participation (in accordance with section 498(h));
``(B) impose a civil penalty in accordance with 
section 487(c)(3)(B);
``(C) for a student loan servicer, obtain all 
relief, including any penalties and suspension or 
termination of the agreement, provided in the loan 
servicer agreement to the contract of the servicer; or
``(D) make a recommendation to the Secretary about 
whether to approve or deny the claims of borrowers, 
including groups of borrowers, who assert a defense to 
repayment in accordance with section 455(h).''.
(b) Extend Subpoena Power To Assist With Investigations.--Section 
490A(a) (20 U.S.C. 1097a(a)) is amended to read as follows:
``(a) Authority.--To assist the Secretary in the conduct of 
investigations of possible violations of the provisions of this title, 
the Secretary is authorized to--
``(1) 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 title, the production of which may be 
required from any place in a State; and
``(2) require by subpoena oral testimony by any person, 
including any legal entity, concerning information pertaining 
to participation in any title IV program, the appearance for 
which may be required at any place in a State.''.
(c) Program Reviews.--Section 498A of the Higher Education Act of 
1965 (20 U.S.C. 1099c-1) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by 
striking ``and financial responsibility'' and inserting 
``, financial responsibility, and other eligibility-
related''; and
(B) in paragraph (2)--
(i) by redesignating subparagraphs (A) 
through (F) as subparagraphs (B) through (G), 
respectively;
(ii) by inserting before subparagraph (B), 
as so redesignated, the following:
``(A) identified as `high-risk' institutions based 
on a risk-review process developed by the Department 
that shall include risk factors, including--
``(i) significant changes in enrollment;
``(ii) high volumes of student complaints 
or borrower defense claims;
``(iii) indicators of issues related to 
financial capability;
``(iv) low completion rates;
``(v) indications of misleading or 
deceptive practices, aggressive recruiting, or 
substantial misrepresentation;
``(vi) significant completion gaps between 
students of different demographic groups; or
``(vii) other indicators of risk to 
students or taxpayers;''; and
(iii) in subparagraph (G), as so 
redesignated, by striking ``or financial 
responsibility'' and inserting ``, financial 
responsibility, or other eligibility-related'';
(2) in subsection (d), by striking ``criminal investigative 
training'' and inserting ``criminal and civil investigative 
training (including training in identifying misrepresentations 
in marketing and recruitment materials)'';
(3) by redesignating subsection (e) as subsection (f); and
(4) by inserting after subsection (d) the following:
``(e) Program Reviews.--Program reviews shall, at minimum, include 
a review of all--
``(1) recruiting and marketing materials, including scripts 
and training materials provided to institution and third-party 
servicer staff involved in recruiting, admissions, or financial 
aid;
``(2) consumer complaints held by the institution and 
consumer agencies, borrower defense claims, the institution's 
response to such complaints or claims, and any related 
investigative materials;
``(3) actions against the institution by State or Federal 
regulators or enforcement agencies, including State authorizing 
agencies and State attorneys general, or through qui tam 
actions; and
``(4) actions against the institution by accreditors.''.
(d) Enhanced Civil Penalties.--Section 487(c)(3)(B) of the Higher 
Education Act (20 U.S.C. 1094(c)(3)(B)) is amended--
(1) in clause (i)--
(A) by inserting ``or its third-party servicer'' 
after ``eligible institution''; and
(B) by striking ``$25,000 for each violation or 
misrepresentation'' and inserting ``$100,000 for each 
violation or misrepresentation, or--
``(I) in the case of an 
institution, 1.0 percent of the amount 
of funds the institution received 
through this title in the most recent 
award year prior to the determination 
for each such violation; and
``(II) in the case of a third-party 
servicer that contracts with such 
institution, the amount of the contract 
with the institution.'';
(2) by redesignating clause (ii) as clause (iii);
(3) by inserting after clause (i) the following:
``(ii) The Secretary may consider each time a substantial 
misrepresentation is viewed or experienced, including static or 
standing misrepresentations, as a separate violation or 
misrepresentation.''; and
(4) by adding at the end the following:
``(iv) For the purpose of determining the amount of civil 
penalties under this subsection, any violation by a particular 
institution will accrue against all institutions or affiliates 
with common ownership.''.

SEC. 302. FOR-PROFIT EDUCATION OVERSIGHT COORDINATION COMMITTEE.

Part B of title I (20 U.S.C. 1011 et seq.) is amended by adding at 
the end the following:

``SEC. 124. FOR-PROFIT EDUCATION OVERSIGHT COORDINATION COMMITTEE.

``(a) Establishment of Committee.--
``(1) In general.--There is established in the executive 
branch a committee to be known as the `For-Profit Education 
Oversight Coordination Committee' (referred to in this section 
as the `Committee') and to be composed of the head (or the 
designee of such head) of each of the following Federal 
entities:
``(A) The Department of Education.
``(B) The Bureau of Consumer Financial Protection.
``(C) The Department of Justice.
``(D) The Securities and Exchange Commission.
``(E) The Department of Defense.
``(F) The Department of Veterans Affairs.
``(G) The Federal Trade Commission.
``(H) The Department of Labor.
``(I) The Internal Revenue Service.
``(J) The enforcement unit of the Performance-Based 
Organization established under section 141(g).
``(K) At the discretion of the Chairperson of the 
Committee, any other relevant Federal agency or 
department.
``(2) Purposes.--The Committee shall have the following 
purposes:
``(A) Coordinate Federal oversight of for-profit 
institutions of higher education to--
``(i) improve enforcement of applicable 
Federal laws;
``(ii) increase accountability of for-
profit institutions of higher education to 
students and taxpayers; and
``(iii) ensure the promotion of quality 
education programs.
``(B) Coordinate Federal activities to protect 
students from unfair, deceptive, abusive, unethical, 
fraudulent, or predatory practices, policies, or 
procedures of for-profit institutions of higher 
education.
``(C) Encourage information sharing among agencies 
related to Federal investigations, audits, program 
reviews, inquiries, complaints, financial statements, 
and other information relevant to the oversight of for-
profit institutions of higher education.
``(D) Develop binding memoranda of understanding 
that the Federal entities represented on the Committee 
will use regarding the sharing of information to 
exercise the oversight described in this section.
``(E) Increase coordination and cooperation between 
Federal and State agencies (including State authorizing 
agencies, State attorneys general, and State approving 
agencies designated under section 3671 of title 38, 
United States Code) with respect to improving oversight 
and accountability of for-profit institutions of higher 
education.
``(F) Develop best practices and consistency among 
Federal and State agencies in the dissemination of 
consumer information regarding for-profit institutions 
of higher education to ensure that students, parents, 
and other stakeholders have easy access to such 
information.
``(3) Chairperson.--The Secretary of Education or the 
designee of the Secretary shall serve as the Chairperson of the 
Committee.
``(b) Meetings.--
``(1) Committee meetings.--The members of the Committee 
shall meet regularly, but not less than once during each 
quarter of each fiscal year, to carry out the purposes 
described in subsection (a)(2).
``(2) Meetings with state agencies and stakeholders.--The 
Committee shall meet not less than once each fiscal year, and 
shall otherwise interact regularly, with State authorizing 
agencies, State attorneys general, State approving agencies 
designated under section 3671 of title 38, United States Code, 
veterans service organizations, and consumer advocates to carry 
out the purposes described in subsection (a)(2).
``(c) Director.--The Chairperson shall appoint a full-time 
executive director to support the Committee and may appoint and fix the 
pay of additional staff as the Chairperson considers appropriate.''.

SEC. 303. ESTABLISHMENT AND MAINTENANCE OF COMPLAINT RESOLUTION AND 
TRACKING SYSTEM.

(a) Complaint Tracking System.--Title I (20 U.S.C. 1001 et seq.) is 
amended by adding at the end the following:

``PART F--COMPLAINT TRACKING SYSTEM

``SEC. 161. COMPLAINT TRACKING SYSTEM.

``(a) Definitions.--In this section:
``(1) Complainant.--The term `complainant' means an 
individual making a complaint, or report of suspicious 
activity, through the complaint tracking system.
``(2) Complaint tracking system.--The term `complaint 
tracking system' means the tracking system established under 
subsection (b).
``(3) Third-party servicer.--The term `third-party 
servicer' has the meaning given the term in section 481(c).
``(b) In General.--The Secretary shall--
``(1) establish and operate, in coordination with the 
Student Loan Ombudsman, a complaint tracking system that 
includes a single, toll-free telephone number and a website to 
facilitate the centralized collection of, monitoring of, and 
response to complaints or reports of suspicious activity 
regarding--
``(A) Federal student financial aid and the 
servicing of postsecondary education loans by loan 
servicers;
``(B) educational practices and services of 
institutions of higher education or third-party 
servicers; and
``(C) the recruiting and marketing practices of 
institutions of higher education or third-party 
servicers; and
``(2) ensure that--
``(A) complaints or reports submitted by students, 
borrowers of student loans, staff of loan servicers, 
institutions of higher education, or third-party 
servicers, or the general public--
``(i) may remain anonymous if the 
complainant so chooses, including by providing 
complainants with an option for the individual 
complaint to not be reported to the loan 
servicer, institution, or third-party servicer, 
as the case may be; and
``(ii) may describe problems that are 
systematic in nature and not associated with a 
particular student or institution;
``(B) complaints and reports are provided to the 
loan servicers, institutions of higher education, or 
third-party servicers that are the subject of such 
complaints or reports;
``(C) such loan servicer, institution of higher 
education, or third-party servicer provides a timely 
response to the complainant; and
``(D) the complaint tracking system has the 
capacity to retrieve, search, and categorize complaints 
or reports for purposes of identifying problematic 
trends and systemic practices.
``(c) Handling of Complaints or Reports.--
``(1) In general.--The Secretary shall establish, in 
consultation with the heads of appropriate agencies (including 
the Director of the Bureau of Consumer Financial Protection), 
reasonable procedures to provide a timely response to 
individuals who file a complaint or report of suspicious 
activity in the complaint tracking system.
``(2) Timely response to complaints.--The Secretary shall 
provide a response to a complainant not more than 90 days after 
receiving the complaint, or report of suspicious activity, 
through the system, in writing where appropriate. Each response 
shall include a description of--
``(A) the steps that have been taken by the 
Secretary in response to the complaint or report;
``(B) any responses received by the Secretary from 
the loan servicer, institution of higher education, or 
third-party servicer; and
``(C) any additional actions that the Secretary has 
taken, or plans to take, in response to the complaint 
or report.
``(3) Timely response to secretary by institution of higher 
education or servicer.--
``(A) Notice.--If the Secretary determines that it 
is necessary, the Secretary shall--
``(i) notify a loan servicer, institution 
of higher education, or third-party servicer 
that is the subject of a complaint, or report 
of suspicious activity, through the complaint 
tracking system regarding the complaint or 
report; and
``(ii) directly address and resolve the 
complaint or report in the system.
``(B) Institution or servicer response.--Not later 
than 60 days after receiving a notice under 
subparagraph (A), a loan servicer, institution of 
higher education, or third-party servicer shall provide 
a response to the Secretary concerning the complaint or 
report, including--
``(i) the steps that have been taken by the 
loan servicer, institution, or third-party 
servicer to respond to the complaint or report;
``(ii) all responses received by the loan 
servicer, institution, or third-party servicer 
from the complainant; and
``(iii) any additional actions that the 
loan servicer, institution, or third-party 
servicer has taken, or plans to take, in 
response to the complaint or report.
``(C) Further investigation.--In the event that a 
complaint or report received by the complaint tracking 
system is not adequately resolved or addressed by the 
responses of the loan servicer, institution of higher 
education, or third-party servicer under subparagraph 
(B), the Secretary may--
``(i) ask additional questions of such loan 
servicer, institution, or third-party servicer; 
or
``(ii) seek additional information from or 
action by the loan servicer, institution, or 
third-party servicer.
``(4) Provision of information.--
``(A) In general.--A loan servicer, institution of 
higher education, or third-party servicer shall, in a 
timely manner, comply with a request by the Secretary 
for information in the control or possession of such 
loan servicer, institution, or third-party servicer, 
respectively, concerning a complaint or report of 
suspicious activity received by the Secretary under the 
complaint tracking system, including supporting written 
documentation, subject to subparagraph (B).
``(B) Exceptions.--A loan servicer, institution of 
higher education, or third-party servicer shall not be 
required to make available under this paragraph--
``(i) any nonpublic or confidential 
information, including any confidential 
commercial information;
``(ii) any information collected by the 
loan servicer, institution, or third-party 
servicer for the purpose of preventing fraud or 
detecting or making any report regarding other 
unlawful or potentially unlawful conduct; or
``(iii) any information required to be kept 
confidential by any other provision of law.
``(5) Compliance.--A loan servicer, institution of higher 
education, or third party servicer shall comply with the 
requirements to provide responses and information, in 
accordance with this subsection, as a condition of receiving 
funds under title IV or as a condition of the contract with the 
Department, as applicable.
``(d) Transparency.--
``(1) Data publication.--The Secretary shall, on an annual 
basis, publish data on the website of the Department that shall 
include, for each loan servicer, institution, and third-party 
servicer--
``(A) the number of complaints and reports 
received;
``(B) the types of complaints and reports received;
``(C) information about the resolution of the 
complaints and reports; and
``(D) if the complainant consents, the narrative 
content of the complaint or report.
``(2) Report.--Each year, the Secretary shall prepare and 
submit to the authorizing committees a report describing--
``(A) the types and nature of complaints or reports 
the Secretary has received under the complaint tracking 
system;
``(B) the extent to which complainants are 
receiving adequate resolution pursuant to this section;
``(C) whether particular types of complaints or 
reports are more common in a given sector of 
institutions of higher education or with particular 
loan servicers or third-party servicers;
``(D) any concerning trends or systemic practices 
identified;
``(E) any legislative recommendations that the 
Secretary determines are necessary to better assist 
students and families regarding the activities 
described in subsection (c)(1); and
``(F) the loan servicers, institutions of higher 
education, and third-party servicers with the highest 
volume of complaints and reports, as determined by the 
Secretary.''.
(b) Program Participation Agreement Requirement.--Section 487(a) 
(20 U.S.C. 1094(a)) is amended by adding at the end the following:
``(32) The institution will comply with any requirement 
under section 161, or any other requirement by the Department, 
to provide information or responses with respect to a complaint 
or report of suspicious activity about the institution.''.

SEC. 304. REFORMS TO ELIGIBILITY AND CERTIFICATION PROCEDURES.

(a) Eligibility and Certification Procedures.--Section 498 (20 
U.S.C. 1099c) is amended--
(1) in subsection (a)--
(A) by striking ``For purposes'' and inserting the 
following:
``(1) In general.--For purposes'';
(B) by striking ``status, and'' and inserting 
``status,'';
(C) by inserting ``, and the institution's 
compliance with all other eligibility requirements in 
accordance with paragraph (2),'' after ``an institution 
of higher education''; and
(D) by adding at the end the following:
``(2) Compliance.--
``(A) In general.--In making a determination of 
institutional eligibility under this section, the 
Secretary shall--
``(i) require that an institution 
demonstrate compliance with each provision 
required under this title in order to receive a 
full, non-provisional certification of 
eligibility for purposes of this section;
``(ii) reflect that an institution is not 
entitled to continued participation in programs 
under this title absent a demonstration of full 
compliance; and
``(iii) determine that an institution is 
not eligible for participation in programs 
under this title if it is not in full 
compliance with section 487(a)(16).''; and
(2) in subsection (f)--
(A) by striking ``The Secretary shall ensure'' and 
inserting the following:
``(1) In general.--The Secretary shall ensure''; and
(B) by striking ``The personnel'' and inserting the 
following: ``The Secretary shall not automatically 
certify or recertify an institution for participation 
in a program under this title as a result of delay in 
conducting a full review of the institution's 
application.
``(2) Site visits.--The personnel''.
(b) Provisional Certification of High-Risk Institutions.--Section 
498 (20 U.S.C. 1099c) is amended--
(1) in subsection (h)--
(A) in paragraph (1)(B)--
(i) in clause (ii), by striking ``or'' 
after the semicolon;
(ii) in clause (iii), by striking the 
period at the end and inserting a semicolon; 
and
(iii) by adding at the end the following:
``(iv) the institution has violated any 
requirement of this title;
``(v) the institution has violated the 
terms of its program participation agreement 
under section 487; or
``(vi) the Secretary determines that the 
institution's continued participation in 
programs under this title poses a significant 
risk to students and taxpayers.'';
(B) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; and
(C) by inserting after paragraph (1) the following:
``(2) Additional conditions.--The Secretary shall require a 
provisionally certified institution to comply with such 
additional conditions as the Secretary determines necessary or 
appropriate based on the circumstances of the institution, as 
specified in the institution's program participation agreement 
under section 487.'';
(2) by redesignating subsections (i), (j), and (k) as 
subsections (j), (k), and (l), respectively; and
(3) by inserting after subsection (h) the following:
``(i) Termination Action.--If an institution that is provisionally 
certified under subsection (h) is unable to meet its responsibilities 
under its program participation agreement or is in violation of any 
requirement established under this title (including if the institution 
has engaged in substantial misrepresentations), or if a final 
administrative finding or judicial judgment determines that the 
institution violated a State or Federal consumer protection law or 
regulation, the Secretary may terminate the institution's participation 
in the programs under this title.''.
(c) Program Participation Agreement Claims.--
(1) False claims.--Section 487(c) (20 U.S.C. 1094(c)) is 
amended by adding at the end the following:
``(8) False Claims.--
``(A) In general.--An institution that submits a 
misrepresentation or false claim on an application for funds 
under this title, or knowingly (as defined in section 3729 of 
title 31, United States Code) fails to comply with the 
requirements of the program participation agreement under this 
section, shall be subject to sections 3729 through 3733 of such 
title.
``(B) Amount of damages.--For purposes of section 3729(a) 
of title 31, United States Code, the amount of damages that the 
Government sustains because of the act of the institution 
described in subparagraph (A) shall be the total amount of 
funds distributed to the institution for loans made to students 
under part D during the period beginning on the date of the 
submission of the application or the failure to comply (as the 
case may be) and ending on the date on which a final decision 
finding a violation of section 3729 of such Code is made.''.
(2) Certification of compliance.--Paragraph (21) of section 
487(a) (20 U.S.C. 1094(a)(21)) is amended to read as follows:
``(21) The institution--
``(A) acknowledges that the agreement certifies the 
institution's compliance with all terms of the program 
participation agreement and all applicable Federal laws 
and regulations that govern an institution's 
eligibility to receive funds under this title;
``(B) agrees that any violation of the terms of a 
program participation agreement or any other Federal 
law or regulation described in subparagraph (A) 
constitutes material noncompliance with a condition of 
payment; and
``(C) 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.''.

SEC. 305. STATE OVERSIGHT.

(a) In General.--Section 101 (20 U.S.C. 1001) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (3), (4), and (5) 
as paragraphs (4), (5), and (6), respectively; and
(B) by inserting after paragraph (2) the following:
``(3) if providing education through distance education or 
correspondence in a State in which the institution is not 
located--
``(A) meets the requirements of such State for 
offering postsecondary education; or
``(B) if the institution is authorized by a State 
pursuant to an interstate reciprocity agreement--
``(i) the institution must have fewer than 
200 students in such State enrolled annually;
``(ii) the agreement must allow States to 
enforce all non-registration and non-fee laws 
with respect to out-of-State institutions; and
``(iii) decisions regarding eligibility to 
participate in the reciprocity agreement and 
the standards that apply to participating 
institutions shall be made exclusively by 
representatives of member State regulatory 
agencies or State attorneys general offices;''; 
and
(2) in subsection (b)(1), by striking ``paragraphs (1), 
(2), (4), and (5) of subsection (a)'' and inserting 
``paragraphs (1), (2), (3), (5), and (6) of subsection (a)''.
(b) Conforming Amendments.--Section 102 (20 U.S.C. 1002) is 
amended--
(1) in subsection (a)(2)(A), by striking ``section 
101(a)(4)'' each place the term appears and inserting ``section 
101(a)(5)'';
(2) in subsection (b)(1)--
(A) in subparagraph (B), by striking ``paragraphs 
(1) and (2) of section 101(a)'' and inserting 
``paragraphs (1), (2), and (3) of section 101(a)''; and
(B) in subparagraph (C), by striking ``paragraph 
(4) of section 101(a)'' and inserting ``paragraph (5) 
of section 101(a)''; and
(3) in subsection (c)(1)(B), by striking ``requirements of 
paragraphs (1), (2), (4), and (5) of section 101(a)'' and 
inserting ``requirements of paragraphs (1), (2), (3), (5), and 
(6) of section 101(a)''.

SEC. 306. ACCREDITING AGENCY OVERSIGHT.

Section 496(c) (20 U.S.C. 1099b(c)) is amended--
(1) in paragraph (8), by striking ``and'' after the 
semicolon;
(2) in paragraph (9)(B), by striking the period at the end 
and inserting ``; and''; and
(3) by adding at the end the following:
``(10)(A) assesses the risk to students of any institution 
or program, including assessing the risk to students and 
institutions of any program managed by a third-party servicer, 
in accordance with factors provided by the Secretary;
``(B) effectively determines whether each such institution 
or program warrants additional oversight or action; and
``(C) provides adequate monitoring of the quality and risk 
of such institutions or programs.''.

SEC. 307. MANDATORY SPENDING FOR ADMINISTRATIVE COSTS OF OPERATING THE 
STUDENT AID PROGRAMS.

Paragraph (3) of section 458(a) (20 U.S.C. 1087h(a)(3)) is amended 
to read as follows:
``(3) Funds for administrative costs.--
``(A) In general.--Each fiscal year, there shall be 
available to the Secretary from funds not otherwise 
appropriated, funds to be obligated for administrative 
costs under this part, including the costs of the 
student loan program under this part, except that the 
total expenditures by the Secretary under this 
subparagraph shall not exceed 5 percent of the amount 
of the average outstanding Federal student loan 
portfolio under this part for the preceding fiscal 
year.
``(B) Availability.--Funds made available under 
subparagraph (A) shall remain available until expended. 
The Secretary is authorized to use funds available 
under this paragraph for a fiscal year for a subsequent 
fiscal year.
``(C) Budget.--No funds may be expended under this 
paragraph unless the Secretary includes in the annual 
budget request of the Department to Congress a detailed 
description of--
``(i) the specific activities for which the 
funds made available by this paragraph have 
been used in the most recent fiscal year;
``(ii) the activities and costs planned for 
the fiscal year for which the request is made; 
and
``(iii) the projection of activities and 
costs for the fiscal year immediately following 
the fiscal year for which administrative 
expenses under this paragraph are made 
available.''.

TITLE IV--IMPROVING ACCESS TO STUDENT AND TAXPAYER INFORMATION

SEC. 401. REPORTING AND DISCLOSURES FROM INSTITUTIONS OF HIGHER 
EDUCATION.

(a) Gainful Employment and Financial Value Transparency Disclosures 
and Warnings.--Section 498C, as added by section 101(b), is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e) Disclosures and Warnings.--
``(1) In general.--For each gainful employment program or 
graduate or professional degree program of an institution that 
does not meet the standards described in subsection (b), the 
institution shall--
``(A) provide warnings to prospective students and 
enrolled students of the institution regarding the 
failing program status in a manner specified by the 
Secretary; and
``(B) shall require prospective students to 
acknowledge receipt of the warning.
``(f) Disclosure.--An institution of higher education shall provide 
the link to the website described in subsection (c)(2)(A)(ii) to 
prospective and enrolled students in a manner specified by the 
Secretary.''.
(b) Instructional Spending Data and Disclosures.--Section 132 (20 
U.S.C. 1015a) is amended--
(1) by redesignating subsection (l) as subsection (n); and
(2) by inserting after subsection (k) the following:
``(l) Investments in Instruction and Student Services.--
``(1) Institutional expenditures.--
``(A) In general.--The Secretary shall establish 
definitions for calculating instructional expenditures 
that shall separately account for the expenditures of 
an institution of higher education on each of the 
following:
``(i) Instruction.
``(ii) Student services.
``(iii) Marketing.
``(iv) Recruitment.
``(v) Advertising.
``(vi) Lobbying.
``(B) Exclusions.--Expenditures on instruction and 
student services, as defined in accordance with clauses 
(i) and (ii) of subparagraph (A), shall not include 
expenditures on marketing, recruitment, advertising, 
compensation of executives or officers, or lobbying, or 
other pre-enrollment expenditures.
``(2) Reporting.--Each institution of higher education 
receiving Federal funds under title IV shall report to the 
Secretary--
``(A) the total dollar amount of title IV funds 
received by the institution;
``(B) the proportion of title IV funds spent on 
recruitment activities and marketing activities;
``(C) the proportion of title IV funds spent on 
instruction and student services; and
``(D) for each program of education or division of 
the institution for which the tuition is charged, the 
price of tuition relative to the institution's 
allocation of revenues to spending on instruction and 
student services.
``(3) Disclosures by the department of education.--The 
Secretary shall make the disclosures reported under paragraph 
(2) publicly available on the College Navigator website.''.
(c) Transparency of Online Programs.--Section 132 (20 U.S.C. 
1015a), as amended by subsection (b), is further amended by inserting 
after subsection (l), as added by subsection (b)(2), the following:
``(m) Improving Transparency for Online and Contracted Programs.--
``(1) Annual reporting requirements for third-party 
servicer activities.--Each institution of higher education that 
receives Federal funds under title IV shall report annually to 
the Secretary--
``(A) the name of each third-party servicer with 
which the institution contracts; and
``(B) for each such third-party servicer--
``(i) the names of any programs for which 
each such third-party servicer is contracted to 
provide support;
``(ii) the services each such third-party 
servicer is contracted to offer for each 
program;
``(iii) the number of students enrolled in 
any program for which the third-party servicer 
is contracted to provide services;
``(iv) whether the third-party servicer 
administers or provides any private or 
institutional student loan products; and
``(v) the third-party servicer's total 
expenditures on advertising, marketing, and 
recruiting on behalf of the institution.
``(2) Disclosure requirements.--If an institution of higher 
education receiving Federal funds under title IV contracts with 
a third-party servicer to offer one or more programs of 
education, and such third-party servicer provides recruitment 
activities, retention activities, or similar activities (as 
specified by the Secretary) for the program--
``(A) the institution and third-party servicer 
shall prominently disclose for each such program of 
education, in a manner specified by the Secretary and 
using language developed by the Secretary, the nature 
of the relationship between the institution and third-
party servicer--
``(i) in advertisements;
``(ii) in marketing materials; and
``(iii) on the website of the institution; 
and
``(B) individuals who are employed by the third-
party servicer to provide admissions, recruitment, 
retention, or advising activities shall prominently 
disclose to prospective or enrolled students that the 
individuals are employees of that third-party servicer 
and not the institution, including in any communication 
about the program of education.
``(3) Annual reporting requirements for online education.--
Each institution of higher education receiving Federal funds 
under title IV shall report annually to the Secretary--
``(A) the institution's expenditures on activities 
to secure enrollments for each online, on-campus, and 
hybrid program, and its total expenditures for all 
activities of the institution;
``(B) the status of each student receiving Federal 
student aid as enrolled online, on-campus, or in a 
combination of both modalities, sufficient for the 
Secretary to calculate the total student enrollment, 
retention and completion rates, student loan borrowing 
levels, student loan repayment outcomes, and median 
earnings for each such program; and
``(C) the annual net price charged for each such 
program.''.
(d) Disclosure of Material Facts for Proprietary Institutions.--
Section 498(c) (20 U.S.C. 1099c(c)), as amended by section 203, is 
further amended by adding at the end the following:
``(8)(A) The Secretary shall require each proprietary institution 
of higher education (as defined in section 102(c)) to file promptly 
with the Secretary--
``(i) all public filings that the institution files with 
the Securities and Exchange Commission that include references 
to matters that affect students, including--
``(I) mergers and acquisitions;
``(II) changes of ownership;
``(III) changes of leadership and board membership;
``(IV) school or campus closings;
``(V) civil lawsuits;
``(VI) law enforcement actions, investigations, 
subpoenas, and demand letters; and
``(VII) material change in financial status; and
``(ii) in the case of an institution that is not required 
to make disclosures to the Securities and Exchange Commission, 
notifications regarding matters that affect students similar to 
the filings described in clause (i), in a form and manner 
determined by the Secretary.
``(B) The Secretary shall promptly make all information received 
under subparagraph (A) available on the website of the Department.''.

SEC. 402. TRANSPARENCY OF OVERSIGHT ACTIVITIES.

(a) Borrower Defense Claims and Discharges Data.--Section 455(h) 
(20 U.S.C. 1087e(h)), as amended by section 102(a), is further 
amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) Transparency.--The Secretary shall make publicly 
available, and keep regularly updated, information regarding 
the number of borrower defense claims filed and discharges 
granted, disaggregated by institution of attendance, State of 
residence as of the date of the claim, student loan servicer, 
and the amount of discharge and reimbursement, based on 
increments of not less than $10,000.''.
(b) 90/10 Rule Transparency.--Paragraph (3) of section 487(d) (20 
U.S.C. 1094(d)(3)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively, and adjusting the margins 
appropriately;
(2) by striking ``The Secretary'' and inserting the 
following:
``(A) Public disclosure of failure to meet 
requirements.--The Secretary''; and
(3) by adding at the end the following:
``(B) Public disclosure of 90/10 data.--
``(i) In general.--The Secretary shall 
publicly disclose on the website of the 
Department the data provided by proprietary 
institutions for purposes of this subsection 
(referred to in this subparagraph as the `90/10 
database') in a prompt, comprehensive, and 
user-friendly manner.
``(ii) Temporary omissions.--If any data 
for a proprietary of institution required to be 
disclosed under clause (i) is omitted because 
of issues unresolved at a given deadline of the 
Secretary, the Secretary shall--
``(I) include, in the 90/10 
database on the College Navigator 
website, a notice that the information 
is omitted for such proprietary 
institution and a clear explanation of 
the reason for the delay; and
``(II) timely amend the 90/10 
database to include the information 
required to be disclosed for the 
relevant reporting period.''.
(c) Change of Ownership and Conversion Transparency.--Section 
498(j) (20 U.S.C. 1099c(j)), as redesignated by section 304(b)(2), is 
further amended by adding at the end the following:
``(5) The Secretary shall promptly disclose on the website of the 
Department--
``(A) any application for a change of ownership of an 
institution or for a conversion of an institution from 
proprietary to nonprofit status; and
``(B) any decision by the Secretary regarding approval or 
disapproval of a change of ownership application, or an 
application for conversion from proprietary to nonprofit 
status, and all external communications describing or 
explaining those decisions.''.
(d) Transparency in Financial Standing of Institutions.--Section 
498(c) (20 U.S.C. 1099c(c)), as amended by section 401(d), is further 
amended by adding at the end the following:
``(9) The Secretary shall promptly post on the Department website, 
for all institutions participating in a program under this title--
``(A) the annual audited financial statements submitted by 
each institution under this section and a list of any 
institutions that have failed to timely submit audited 
financial statements;
``(B)(i) the terms, amounts, and withdrawals for letters of 
credit and other sureties required of institutions of higher 
education under paragraph (3), including by providing updates 
as new financial guarantees are required and as changes are 
made to existing agreements; and
``(ii) all external communications between institutions of 
higher education and the Department describing or implementing 
the Secretary's requirements or determinations regarding 
financial guarantees under paragraph (3); and
``(C)(i) each decision of the Secretary as to the 
imposition or removal of heightened cash monitoring status and 
other financial protections regarding an institution; and
``(ii) all external communications between institutions of 
higher education and the Department describing or implementing 
such decisions.''.
(e) Institutional Participation in the Title IV Programs.--Section 
498 (20 U.S.C. 1099c) is amended by adding at the end the following:
``(m) Transparency.--The Secretary shall post on the Department 
website the full program participation agreement under section 487 for 
each institution that enters into such an agreement and shall indicate 
if the institution is on provisional, temporary provisional, or expired 
certification status.''.
(f) Accrediting Agency Transparency.--Section 496 (20 U.S.C. 1099b) 
is amended--
(1) in subsection (o)--
(A) by inserting after ``Regulations.--'' the 
following:
``(1) In general.--''; and
(B) by adding at the end the following:
``(2) Disclosures.--
``(A) In general.--The Secretary shall publicly 
disclose on the Department's website--
``(i) all of the Department's draft and 
final accrediting agency or association 
recognition reports, and monitoring reports and 
investigations of any accrediting agency or 
association, under this section; and
``(ii) the reports and accompanying 
exhibits that each accreditation agency or 
association submits to the Department in the 
course of recognition and re-recognition 
reviews under this section.
``(B) Disclosure requirements.--The Secretary shall 
disclose the information required under subparagraph 
(A) promptly, so that members of the public may 
thoroughly and timely respond via public comment in the 
course of Department reviews of accrediting agencies 
and associations.''; and
(2) by adding at the end the following:
``(r) Transparency of Accrediting Agency or Association Actions.--
``(1) In general.--An accrediting agency or association 
recognized by the Secretary under this section shall promptly 
post on the website of the accrediting agency or association 
and shall submit to the Department, all communications sent 
from the accrediting agency or association to an institution 
explaining, or informing an institution of, an action taken by 
the agency with respect to the institution, including--
``(A) to impose or remove a status of probation, 
warning, concern, stipulation, or reporting, or similar 
status;
``(B) to impose or revoke a show cause order; or
``(C) to impose or revoke a limitation, suspension, 
or termination action.
``(2) No redaction.--The communication posted and submitted 
under paragraph (1) shall be without redaction, except for 
personally identifiable information.
``(3) Disclosure by the secretary.--The Secretary shall 
promptly publicly disclose on the website of the Department all 
communications submitted pursuant to paragraph (1).''.
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