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Bill > S867


US S867

PROTECT Students Act of 2019 Preventing Risky Operations from Threatening the Education and Career Trajectories of Students Act of 2019


summary

Introduced
03/26/2019
In Committee
03/26/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

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.

AI Summary

This bill: - Closes the "GI Bill loophole" and restores the 85/15 rule for for-profit institutions, requiring them to derive at least 15% of their revenues from sources other than federal education assistance funds. - Establishes a process for reviewing and approving the conversion of for-profit institutions to nonprofit or public status. - Creates a For-Profit Education Oversight Coordination Committee to improve enforcement, increase accountability, and ensure quality education programs at for-profit institutions. - Addresses protections for students and borrowers, including requiring career education programs to prepare students for gainful employment, establishing an enforcement unit within the Office of Federal Student Aid, and allowing borrowers to seek loan forgiveness if institutions mislead them or engage in misconduct. - Prohibits for-profit institutions that receive federal funding from limiting students' legal actions, providing incentive compensation, and using educational assistance funds for recruiting and marketing activities. - Enhances civil penalties, allows for state enforcement and a private right of action against institutions that engage in substantial misrepresentation or other violations.

Committee Categories

Health and Social Services

Sponsors (28)

Last Action

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

bill text


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