Debt-Free College Act of 2021

II 117TH CONGRESS 1ST SESSION S. 1263 To establish State-Federal partnerships to provide students the opportunity to attain higher education at in-State public institutions of higher edu- cation without debt, to provide Federal Pell Grant eligibility to DREAM- er students, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 21, 2021 Mr. SCHATZ (for himself, Mrs. GILLIBRAND, Mr. MERKLEY, Mr. BOOKER, Mr. BROWN, Ms. BALDWIN, Mr. BLUMENTHAL, Mr. DURBIN, and Ms. WAR- REN) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To establish State-Federal partnerships to provide students the opportunity to attain higher education at in-State public institutions of higher education without debt, to provide Federal Pell Grant eligibility to DREAMer stu- dents, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Debt-Free College Act 4 of 2021’’. 5 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 1263 IS SEC. 2. DEBT-FREE COLLEGE PARTNERSHIP. 1 Title IV of the Higher Education Act of 1965 (20 2 U.S.C. 1070 et seq.) is amended by adding at the end 3 the following: 4 ‘‘PART J—DEBT-FREE COLLEGE PARTNERSHIP 5 ‘‘SEC. 499A–1. PURPOSE. 6 ‘‘The purpose of this part is to establish State-Fed- 7 eral partnerships that will— 8 ‘‘(1) increase investment in public higher edu- 9 cation; and 10 ‘‘(2) provide students the opportunity to attain 11 higher education at in-State public institutions of 12 higher education without debt (‘debt-free college’). 13 ‘‘SEC. 499A–2. DEFINITIONS. 14 ‘‘In this part: 15 ‘‘(1) COLLEGE COMPLETION PROGRAM.—The 16 term ‘college completion program’ means a program 17 or service at an institution of higher education that 18 is dedicated to addressing barriers to degree attain- 19 ment, particularly for low-income students, for the 20 purpose of increasing the percentage of students 21 completing programs of study in their entirety and 22 attaining related degrees. 23 ‘‘(2) COST OF ATTENDANCE.—The term ‘cost of 24 attendance’ means— 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 1263 IS ‘‘(A) tuition and fees normally assessed a 1 student carrying the same academic workload 2 as determined by the institution, and including 3 costs for rental or purchase of any equipment, 4 materials, or supplies required of all students in 5 the same course of study; 6 ‘‘(B) an allowance for books, supplies, 7 transportation, and miscellaneous personal ex- 8 penses, including a reasonable allowance for the 9 documented rental or purchase of a personal 10 computer, for a student attending the institu- 11 tion on at least a half-time basis, as determined 12 by the institution; and 13 ‘‘(C) an allowance (determined by the in- 14 stitution) for room and board costs incurred by 15 the student which— 16 ‘‘(i) shall be an allowance determined 17 by the institution for a student without de- 18 pendents residing at home with parents; 19 ‘‘(ii) for students without dependents 20 residing in institutionally owned or oper- 21 ated housing, shall be a standard allowance 22 determined by the institution based on the 23 amount normally assessed most of its resi- 24 dents for room and board; 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 1263 IS ‘‘(iii) for students who live in housing 1 located on a military base or for which a 2 basic allowance is provided under section 3 403(b) of title 37, United States Code, 4 shall be an allowance based on the ex- 5 penses reasonably incurred by such stu- 6 dents for board but not for room; and 7 ‘‘(iv) for all other students shall be an 8 allowance based on the expenses reason- 9 ably incurred by such students for room 10 and board. 11 ‘‘(3) DEBT-FREE COLLEGE COMMITMENT.—The 12 term ‘debt-free college commitment’ means a com- 13 mitment by a State participating in the State-Fed- 14 eral partnership under this part to cover the unmet 15 financial need for all eligible students. 16 ‘‘(4) ELIGIBLE STUDENT.—The term ‘eligible 17 student’ means an individual who— 18 ‘‘(A) is enrolled, or is eligible to enroll, in 19 a public institution of higher education in the 20 State in which the individual resides; 21 ‘‘(B) completes a Free Application for 22 Federal Student Aid or demonstrates eligibility 23 for a Federal Pell Grant through institutional 24 financial aid eligibility forms; and 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 1263 IS ‘‘(C) demonstrates satisfactory academic 1 progress, as defined under the Federal Pell 2 Grant program under subpart 1 of part A, once 3 enrolled in a public institution of higher edu- 4 cation in the State in which the individual re- 5 sides. 6 ‘‘(5) FULL-TIME EQUIVALENT STUDENTS.—The 7 term ‘full-time equivalent students’ means the sum 8 of the number of students enrolled full time at an 9 institution, plus the full-time equivalent of the num- 10 ber of students enrolled part time, which shall be de- 11 fined and calculated in the manner determined most 12 appropriate by the Secretary. 13 ‘‘(6) NET STATE OPERATING SUPPORT.—The 14 term ‘net State operating support’ means an amount 15 that is equal to the amount of State funds and local 16 government appropriations used to support public 17 higher education annual operating expenses in the 18 State, calculated in accordance with subparagraphs 19 (A) and (B). 20 ‘‘(A) CALCULATION.—A State’s net State 21 operating support shall, for a fiscal year, be an 22 amount that is equal to the difference resulting 23 from the gross amount of State funds appro- 24 priated and disbursed by the State and ex- 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 1263 IS pended by the recipient institutions in the fiscal 1 year for public higher education operating ex- 2 penses in the State, minus— 3 ‘‘(i) such appropriations that are re- 4 turned to the State; 5 ‘‘(ii) State-appropriated funds derived 6 from Federal sources, including funds pro- 7 vided under this part; 8 ‘‘(iii) local government funds not ap- 9 propriated for operating support for public 10 higher education; 11 ‘‘(iv) amounts that are portions of 12 multi-year appropriations to be distributed 13 over multiple years that are not to be 14 spent for the year for which the calculation 15 is being made; 16 ‘‘(v) tuition charges remitted to the 17 State to offset State appropriations; 18 ‘‘(vi) State funding for students in 19 non-credit continuing or adult education 20 courses and non-credit extension courses; 21 ‘‘(vii) sums appropriated to private 22 nonprofit institutions of higher education, 23 or to proprietary institutions of higher 24 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 1263 IS education, for capital outlay or operating 1 expenses; and 2 ‘‘(viii) any other funds excluded under 3 subparagraph (B). 4 ‘‘(B) EXCLUSIONS.—Net State operating 5 support does not include— 6 ‘‘(i) funds for— 7 ‘‘(I) student aid programs that 8 provide grants to students attending 9 in-State private nonprofit institutions 10 of higher education, in-State propri- 11 etary institutions of higher education, 12 independent institutions, and out-of- 13 State institutions; 14 ‘‘(II) capital outlay; 15 ‘‘(III) deferred maintenance; or 16 ‘‘(IV) research and development; 17 or 18 ‘‘(ii) any other funds that the Sec- 19 retary may exclude. 20 ‘‘(7) NET STATE OPERATING SUPPORT PER FTE 21 STUDENT.—The term ‘net State operating support 22 per FTE student’ means, for a fiscal year— 23 ‘‘(A) the net State operating support for 24 the previous fiscal year; divided by 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 1263 IS ‘‘(B) the full-time equivalent students for 1 the previous fiscal year. 2 ‘‘(8) PARTNERSHIP OFFICE.—The term ‘Part- 3 nership Office’ means the Office created under sec- 4 tion 499A–4(a). 5 ‘‘(9) PUBLIC INSTITUTION OF HIGHER EDU- 6 CATION.—The term ‘public institution of higher edu- 7 cation’ means an educational institution in any State 8 that— 9 ‘‘(A) admits as regular students only per- 10 sons having a certificate of graduation from a 11 school providing secondary education, or the 12 recognized equivalent of such a certificate, or 13 persons who are eligible students; 14 ‘‘(B) is legally authorized within such 15 State to provide a program of education beyond 16 secondary education; 17 ‘‘(C) provides an educational program for 18 which the institution awards a bachelor’s degree 19 or provides not less than a 2-year program that 20 is acceptable for full credit toward such a de- 21 gree, or awards a degree that is acceptable for 22 admission to a graduate or professional degree 23 program, subject to review and approval by the 24 Secretary; 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 1263 IS ‘‘(D) has the full faith and credit of the 1 State; and 2 ‘‘(E) is accredited by a nationally recog- 3 nized accrediting agency or association, or if 4 not so accredited, is an institution that has 5 been granted preaccreditation status by such an 6 agency or association that has been recognized 7 by the Secretary for the granting of preaccredi- 8 tation status, and the Secretary has determined 9 that there is satisfactory assurance that the in- 10 stitution will meet the accreditation standards 11 of such an agency or association within a rea- 12 sonable time. 13 ‘‘(10) RELEVANT COMMITTEES OF CON- 14 GRESS.—The term ‘relevant committees of Congress’ 15 means the Committee on Health, Education, Labor, 16 and Pensions and the Committee on Appropriations 17 of the Senate and the Committee on Education and 18 Labor and the Committee on Appropriations of the 19 House of Representatives. 20 ‘‘(11) UNMET NEED.—The term ‘unmet need’ 21 means the difference between a student’s cost of at- 22 tendance to attend an in-State public institution of 23 higher education and the student’s expected family 24 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 1263 IS contribution plus any Federal, State, or local sources 1 of grant aid. 2 ‘‘SEC. 499A–3. ESTABLISHMENT OF A STATE-FEDERAL PART- 3 NERSHIP GRANT PROGRAM. 4 ‘‘(a) GRANTS AUTHORIZED.—The Secretary shall 5 award grants to States to establish State-Federal partner- 6 ships with a goal of providing debt-free college for all eligi- 7 ble students at in-State public institutions of higher edu- 8 cation. 9 ‘‘(b) APPLICATION.—A State that desires to partici- 10 pate in the State-Federal partnership under this part shall 11 submit an application to the Secretary at such time, in 12 such manner, and accompanied by such information as the 13 Secretary may require. 14 ‘‘(c) AMOUNT OF GRANTS.— 15 ‘‘(1) IN GENERAL.—The Secretary shall award 16 a grant to a State that submits an application under 17 subsection (b) for a fiscal year in an amount that is 18 equal to State’s net State operating support. 19 ‘‘(2) RATABLE REDUCTION.—If the amount ap- 20 propriated to carry out this part for a fiscal year is 21 insufficient to award each State the State’s full 22 grant amount pursuant to paragraph (1), the Sec- 23 retary shall establish procedures for ratably reducing 24 each State’s award amount for such fiscal year. 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 1263 IS ‘‘(d) AMOUNTS NOT EXPENDED.—Any amount of a 1 grant awarded under this part that is not expended on 2 allowable expenditures by the end of the fiscal year for 3 which the grant was awarded shall be applied to the fol- 4 lowing year’s grant award amount, if the State remains 5 eligible to receive a grant under this part for such fol- 6 lowing year. If such State is not eligible to receive a grant 7 under this part for such following year, the State shall 8 return the unexpended balance amount to the Federal 9 Government. 10 ‘‘SEC. 499A–4. STATE-FEDERAL PARTNERSHIP RESPON- 11 SIBILITIES. 12 ‘‘(a) FEDERAL.— 13 ‘‘(1) IN GENERAL.—The Secretary shall create 14 an office in the Department of Education to admin- 15 ister the State-Federal partnerships established 16 under this part. Such Partnership Office shall be re- 17 sponsible for— 18 ‘‘(A) administering grant awards; 19 ‘‘(B) monitoring compliance with partner- 20 ship requirements; 21 ‘‘(C) providing technical assistance to 22 States in applying for participation in, and im- 23 plementing, a partnership; and 24 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1263.IS S1263 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 1263 IS ‘‘(D) providing information to students in 1 participating States. 2 ‘‘(2) EVALUATIONS.—The Partnership Office 3 shall develop metrics of evaluation and perform an 4 annual evaluation of each State participating in a 5 State-Federal partnership under this part. The eval- 6 uation shall assess the State’s success in meeting the 7 partnership’s goals, including— 8 ‘‘(A) providing debt-free college for all eli- 9 gible students; 10 ‘‘(B) increasing State investment in higher 11 education; 12 ‘‘(C) maintaining access to in-State public 13 institutions of higher education for low-income 14 and underserved students; 15 ‘‘(D) maintaining and improving rates of 16 college completion and academic quality; 17 ‘‘(E) maintaining or reducing the cost of 18 public higher education and the price charged 19 to students; and 20 ‘‘(F) investing in improving capacity, ac- 21 cess, quality, and student achievement of in- 22 State public institutions of higher education. 23 ‘‘(3) ANNUAL REPORT.—The Partnership Of- 24 fice shall submit an annual report to the relevant 25 VerDate Sep 11 2014 23:38 May 19, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1263. [Text truncated for display. Full text available on Congress.gov.]