summary
Introduced
06/25/2019
06/25/2019
In Committee
06/25/2019
06/25/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
PRO Students Act PRO Students Act Protections and Regulation for Our Students Act Protections and Regulation for Our Students Act This bill increases oversight of postsecondary educational institutions and provides consumer protections for students. Proprietary (i.e., for-profit) institutions of higher education (IHEs) must derive at least 15% of their revenue from non-federal sources or risk becoming ineligible for federal educational assistance funds. Postsecondary educational institutions must meet certain requirements regarding entrance counseling for first-time borrowers, disclosure of clinical training agreement terms, disclosure of a mandatory program review, and preparation of students upon successful program completion. The bill prohibits such institutions from using revenues derived from federal educational assistance funds for recruiting or marketing activities. The bill revises requirements governing IHEs that receive federal educational assistance funds, including to broaden the ban on institutions compensating employees based on their successes in securing either enrollments or student aid awards, prohibit predispute arbitration agreements in student loan contracts that waive the rights available to borrowers, and increase protections for whistleblowers who disclose institutional violations. The Department of Education (ED) must (1) establish a complaint tracking system, (2) conduct mandatory program reviews of institutions that pose a significant risk of failing to comply with certain requirements, and (3) recalculate the cohort default rate for institutions that engage in default manipulation and redetermine their eligibility for federal educational assistance funds. The bill expands the defenses that a borrower may assert for not repaying a student loan. ED may impose civil penalties on IHEs that engage in substantial misrepresentation or other serious violations.
AI Summary
This bill:
Increases oversight of postsecondary educational institutions, particularly proprietary (for-profit) institutions, and provides consumer protections for students. Key provisions include:
- Requiring proprietary institutions to derive at least 15% of their revenue from non-federal sources to remain eligible for federal educational assistance funds.
- Prohibiting the use of federal educational assistance funds for recruiting or marketing activities.
- Expanding defenses that borrowers can assert for not repaying student loans and allowing the Department of Education to impose civil penalties on institutions that engage in substantial misrepresentation or other serious violations.
- Establishing a complaint tracking system and increasing program reviews of institutions that pose a significant risk of non-compliance.
- Creating a Proprietary Education Oversight Coordination Committee to improve enforcement, accountability, and quality at proprietary institutions.
- Imposing requirements on institutions regarding entrance counseling, disclosure of clinical training agreements, and preparation of students upon program completion.
The bill aims to increase oversight, accountability, and consumer protections in the postsecondary education sector, particularly for proprietary institutions that receive significant federal funds.
Committee Categories
Education
Sponsors (5)
Last Action
Referred to the House Committee on Education and Labor. (on 06/25/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/3487/all-info |
| BillText | https://www.congress.gov/116/bills/hr3487/BILLS-116hr3487ih.pdf |
| Bill | https://www.congress.gov/116/bills/hr3487/BILLS-116hr3487ih.pdf.pdf |
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