Bill > S867

Introduced Session

A bill to protect students of institutions of higher education and the taxpayer investment in institutions of higher education by improving oversight and accountability of institutions of higher education, particularly for-profit colleges, improving protections for students and borrowers, and ensuring the integrity of postsecondary education programs, and for other purposes. This bill provides additional oversight of postsecondary education programs, including for-profit institutions of higher education (IHEs), and addresses protections for students and student loan borrowers from fraudulent or predatory practices. The bill sets forth a variety of provisions concerning oversight of for-profit IHEs. Specifically, the bill decreases the cap on the amount of revenue for-profit IHEs may receive from federal sources, including funds from the Department of Veterans Affairs and the Department of Defense. In addition, it establishes (1) a process for reviewing for-profit IHEs that convert to nonprofit or public status, and (2) a For-Profit Education Oversight Coordination Committee. The bill also sets forth provisions to address predatory practices in higher education. For instance, the bill requires career education programs to prepare students for gainful employment. In addition, it requires the Office of Federal Student Aid to have a unit that enforces compliance with laws governing student financial assistance programs. The office must also maintain a system that tracks reports of suspicious activity of IHEs or student loan servicers, including anonymous complaints. Lastly, the bill allows borrowers of student loans to seek loan forgiveness if IHEs mislead the students or engage in other misconduct. Finally, the bill prohibits IHEs that receive federal funding from limiting students' legal actions, providing incentive compensation, and using educational assistance funds for recruiting and marketing activities.

Committee Categories

Maggie Hassan (D)*,  Tammy Baldwin (D),  Richard Blumenthal (D),  Cory Booker (D),  Sherrod Brown (D),  Ben Cardin (D),  Tom Carper (D),  Chris Coons (D),  Tammy Duckworth (D),  Dick Durbin (D),  Dianne Feinstein (D),  Kirsten Gillibrand (D),  Kamala Harris (D),  Mazie Hirono (D),  Amy Klobuchar (D),  Patrick Leahy (D),  Ed Markey (D),  Jeff Merkley (D),  Chris Murphy (D),  Jack Reed (D),  Bernie Sanders (I),  Brian Schatz (D),  Jeanne Shaheen (D),  Tina Smith (D),  Chris Van Hollen (D),  Elizabeth Warren (D),  Sheldon Whitehouse (D),  Ron Wyden (D), 

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (on 03/26/2019)

Official Document