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US S2640

US S2640
Students Not Profits Act of 2019


summary

Introduced
10/17/2019
In Committee
10/17/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

A bill to amend the Higher Education Act of 1965 to make for-profit institutions ineligible for Federal student aid and to protect the integrity of nonprofit institutions of higher education. This bill makes certain institutions of higher education (IHEs) ineligible to receive federal financial student assistance. Specifically, the bill makes for-profit institutions of higher education ineligible to receive such assistance. The bill also makes ineligible any institution that has (1) filed for bankruptcy; (2) been convicted of, or pled nolo contendere or guilty to, a crime involving federal student aid; (3) committed fraud, substantial misrepresentation, or false certification involving federal student aid; or (4) executive officers who were previously employed at an institution receiving federal student aid that closed. Additionally, the bill establishes certain criteria that an IHE must meet to be eligible for conversion from a for-profit IHE to a nonprofit IHE. Before approving such conversion, the Department of Education must publish the application in the Federal Register for notice and comment.

AI Summary

This bill, the Students Not Profits Act of 2019, aims to amend the Higher Education Act of 1965 to make for-profit institutions ineligible for federal student aid and to protect the integrity of nonprofit institutions of higher education. Specifically, the bill makes for-profit institutions and certain other institutions that have filed for bankruptcy, committed fraud, or had executives previously employed at a closed institution receiving federal aid, ineligible for federal student aid. The bill also establishes criteria for an institution to convert from for-profit to nonprofit status, requiring the Department of Education to publish the application for public notice and comment before approving the conversion. Additionally, the bill creates an office within the Department of Education to monitor the integrity of nonprofit institutions and allows the Secretary to review the governance of institutions that may have engaged in transactions indicating private inurement.

Committee Categories

Health and Social Services

Sponsors (2)

Last Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (on 10/17/2019)

bill text


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