Bill > S2098

This bill, the Students Before Profits Act of 2015, aims to strengthen oversight and accountability for institutions of higher education participating in federal student aid programs. Key provisions include improving the calculation of "cohort default rates" (the percentage of a school's former students who default on their federal student loans within a specific timeframe) by penalizing institutions that engage in "default manipulation," which involves using deceptive practices like consolidating campuses or changing ownership to hide high default rates. The bill also introduces enhanced civil penalties for institutions found to have made "substantial misrepresentations" (false claims about programs, costs, or outcomes) or committed "other serious violations," with penalties escalating for repeat offenses and potentially tied to the institution's "student default risk" (a measure combining the cohort default rate with the percentage of students receiving federal loans). Furthermore, it establishes personal liability for "officers of an institution of higher education" (including presidents, CEOs, and CFOs) who knowingly or negligently violate provisions of the Higher Education Act, allowing for prohibitions on their future employment in higher education and civil penalties up to their annual compensation. The bill also expands the scope of individuals and entities that can be held responsible for government claims related to student loans to include executive officers and board members, and requires proprietary institutions (for-profit schools) to prevent individuals found guilty of defrauding students from holding executive positions or serving on their boards. Finally, it creates a "Student Relief Fund" to provide financial assistance to students affected by institutional misconduct, funded by penalties collected under the act.