Summary
# S. 889: Protecting Students from Worthless Degrees Act
## WHAT THIS BILL DOES
This bill sets requirements for schools that offer training programs in occupations requiring state licenses to ensure their students can actually get licensed and work in those fields. The bill also requires schools to certify that their job training programs meet certain standards and won't teach students skills that won't help them find work in the states where they plan to live.
## WHO IT AFFECTS
Students enrolled in job training and certificate programs, especially those taking online or correspondence courses across state lines.
Schools and educational institutions that offer degree and certificate programs funded by federal student aid money.
The U.S. Department of Education (the federal agency overseeing these requirements).
State governments that authorize and regulate educational institutions.
## KEY PROVISIONS
* Schools cannot receive federal student aid money for training programs that prepare students for licensed occupations unless students who complete the program can take licensing exams and get licensed in their home state, the state where the school is located, and any state the school advertises they will be prepared to work in. (Sec. 3)
* Schools must provide students with timely access to required hands-on training like clinical placements, internships, or apprenticeships for jobs requiring licenses. (Sec. 3)
* The top executive at each school must sign a certification document proving that all job training programs meet licensing and accreditation requirements. Schools must update this certification within 10 days if anything changes. (Sec. 4)
* Schools offering online or distance education courses must be legally authorized to do business in every state where their students live, unless those states have an agreement allowing schools from other states to teach online classes there. (Sec. 5)
* Before enrolling a student in a job training program that doesn't meet licensing requirements in the student's home state, the school must notify the student in writing and get a signed, handwritten statement from the student saying they understand the program won't prepare them for licensure there. (Sec. 4)
## WHAT CHANGES
Schools can no longer offer federal student aid-funded training programs for licensed occupations unless they prove graduates can pass licensing exams in relevant states.
Schools must put in writing that their job training programs meet all accreditation and licensing requirements before accepting federal money for them.
Schools offering online education must be officially authorized to operate in each state where their students live, with limited exceptions for reciprocal agreements between states.
Students will receive written notice before enrolling in job training programs that may not lead to licensure in their state, and must sign an acknowledgment they understand this limitation.
## IMPORTANT DEFINITIONS
**Federal financial assistance program:** A training or education program that receives money from the federal government through laws covering student loans, workforce training, adult education, military education benefits, or similar programs.
**Freely associated States:** The Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.
**Institution of higher education:** A school that awards degrees or certificates and is located in a state (including Puerto Rico, U.S. territories, and freely associated States).
**Gainful employment program:** A job training program that qualifies for federal student aid money and is offered by an eligible school.
**State authorization reciprocity agreement:** An agreement between two or more states allowing a school legally authorized in one state to teach online classes to students in other states under that agreement, while still letting each state enforce its own laws.
## EFFECTIVE DATE
One year after the bill becomes law for requirements related to licensed occupations. (Sec. 3)
First December 31 after the bill becomes law for school certification requirements, or the first December 31 after a school starts receiving federal aid, whichever is later. (Sec. 4)
II
118TH CONGRESS
1ST SESSION
S. 889
To provide consumer protections for students.
IN THE SENATE OF THE UNITED STATES
MARCH 21, 2023
Mr. MERKLEY (for himself and Mr. DURBIN) introduced the following bill;
which was read twice and referred to the Committee on Health, Edu-
cation, Labor, and Pensions
A BILL
To provide consumer protections for students.
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 ‘‘Protecting Students
4
from Worthless Degrees Act’’.
5
SEC. 2. DEFINITIONS.
6
In this Act:
7
(1) FEDERAL
FINANCIAL
ASSISTANCE
PRO-
8
GRAM.—The term ‘‘Federal financial assistance pro-
9
gram’’ means a program authorized and funded by
10
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
2
•S 889 IS
the Federal Government under any of the following
1
provisions of law:
2
(A) Title IV of the Higher Education Act
3
of 1965 (20 U.S.C. 1070 et seq.).
4
(B) Title I of the Workforce Innovation
5
and Opportunity Act (29 U.S.C. 3111 et seq.).
6
(C) The Adult Education and Family Lit-
7
eracy Act (29 U.S.C. 3271 et seq.).
8
(D) Chapter 30, 31, 32, 33, 34, 35, or 36
9
of title 38, United States Code.
10
(E) Chapter 101, 105, 106A, 1606, 1607,
11
or 1608 of title 10, United States Code.
12
(F) Section 1784a, 2005, or 2007 of title
13
10, United States Code.
14
(2) FREELY ASSOCIATED STATES.—The term
15
‘‘freely associated States’’ means the Republic of the
16
Marshall Islands, the Federated States of Micro-
17
nesia, and the Republic of Palau.
18
(3) INSTITUTION OF HIGHER EDUCATION.—The
19
term ‘‘institution of higher education’’—
20
(A) with respect to a program authorized
21
under paragraph (1)(A), has the meaning given
22
the term in section 102 of the Higher Edu-
23
cation Act of 1965 (20 U.S.C. 1002);
24
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
3
•S 889 IS
(B) with respect to a program authorized
1
under paragraph (1)(B), has the meaning given
2
the term in section 3 of the Workforce Innova-
3
tion and Opportunity Act (29 U.S.C. 3102);
4
(C) with respect to a program authorized
5
under paragraph (1)(C), has the meaning given
6
the term ‘‘postsecondary educational institu-
7
tion’’ under section 203 of the Adult Education
8
and Family Literacy Act (29 U.S.C. 3272);
9
(D) with respect to a program authorized
10
under paragraph (1)(D), has the meaning given
11
the term ‘‘educational institution’’ under section
12
3452 of title 38, United States Code;
13
(E) with respect to a program authorized
14
under paragraph (1)(E), means an educational
15
institution that awards a degree or certificate
16
and is located in any State; and
17
(F) with respect to a program authorized
18
under paragraph (1)(F), means an educational
19
institution that awards a degree or certificate
20
and is located in any State.
21
(4) STATE.—The term ‘‘State’’ includes, in ad-
22
dition to the several States of the United States, the
23
Commonwealth of Puerto Rico, the District of Co-
24
lumbia, Guam, American Samoa, the United States
25
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
4
•S 889 IS
Virgin Islands, the Commonwealth of the Northern
1
Mariana Islands, and the freely associated States.
2
SEC. 3. PROTECTIONS IN OCCUPATIONS REQUIRING STATE
3
LICENSURE.
4
Notwithstanding any other provision of law, an insti-
5
tution of higher education is not eligible to participate in
6
a Federal financial assistance program with respect to any
7
program of postsecondary education or training, including
8
a degree or certificate program and any program offered
9
by distance education or correspondence courses to stu-
10
dents located in a State other than where the institution
11
is physically located, that is designed to prepare students
12
for entry into a recognized occupation or profession that
13
requires licensing or other established requirements as a
14
pre-condition for entry into such occupation or profession,
15
unless, by not later than 1 year after the date of enact-
16
ment of this Act—
17
(1) the successful completion of the program
18
fully qualifies a student, in the metropolitan statis-
19
tical area in which the student resides, in the State
20
in which the student resides, and in any State in
21
which the institution indicates, through advertising
22
or marketing activities or direct contact with poten-
23
tial students, that a student will be prepared to work
24
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
5
•S 889 IS
in the occupation or profession after successfully
1
completing the program, to—
2
(A) take any examination required for
3
entry into the recognized occupation or profes-
4
sion in the metropolitan statistical area and any
5
State described in this paragraph, including
6
satisfying all Federal, State, or professionally
7
mandated programmatic and specialized accred-
8
itation requirements, if any; and
9
(B) be certified or licensed or meet any
10
other academically related pre-conditions that
11
are required for entry into the recognized occu-
12
pation or profession in any such State; and
13
(2) the institution offering the program pro-
14
vides timely placement for all of the academically re-
15
lated pre-licensure requirements for entry into the
16
recognized occupation or profession, such as clinical
17
placements, internships, or apprenticeships.
18
SEC. 4. CERTIFICATION REQUIREMENTS FOR GAINFUL EM-
19
PLOYMENT PROGRAMS.
20
Section 487 of the Higher Education Act of 1965 (20
21
U.S.C. 1094) is amended—
22
(1) in subsection (a), by adding at the end the
23
following:
24
‘‘(30) The institution will—
25
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
6
•S 889 IS
‘‘(A) provide to the Secretary not later
1
than the first December 31 following the date
2
of enactment of the Protecting Students from
3
Worthless Degrees Act (or, for any institution
4
that does not have an active program participa-
5
tion agreement as of such date, the first De-
6
cember 31 after the institution enters into the
7
agreement), in accordance with procedures es-
8
tablished by the Secretary, a certification
9
signed by the most senior executive officer of
10
the institution that the institution and each of
11
the eligible gainful employment programs in-
12
cluded on the eligibility and certification ap-
13
proval report of the institution under subpart 3
14
of part H meet the requirements of subsection
15
(k);
16
‘‘(B) include with its certification an expla-
17
nation of how each eligible gainful employment
18
program is not substantially similar to any in-
19
eligible or discontinued program described in
20
subsection (k)(2)(D); and
21
‘‘(C) update the certification within 10
22
days if there are any changes in the approvals
23
for an eligible gainful employment program, or
24
other changes for an eligible gainful employ-
25
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
7
•S 889 IS
ment program that make the existing certifi-
1
cation no longer accurate.’’; and
2
(2) by adding at the end the following:
3
‘‘(k) CERTIFICATION REQUIREMENTS FOR GAINFUL
4
EMPLOYMENT PROGRAMS.—
5
‘‘(1) DEFINITION
OF
GAINFUL
EMPLOYMENT
6
PROGRAM.—The term ‘gainful employment program’
7
means a program of training that—
8
‘‘(A) in order to qualify for assistance
9
under this title, is required under subsection
10
(b)(1)(A)(i) or (c)(1)(A) of section 102, or sec-
11
tion 101(b)(1), to satisfy gainful employment
12
requirements; and
13
‘‘(B) is offered by an institution eligible to
14
receive assistance under this title.
15
‘‘(2) IN GENERAL.—Each eligible gainful em-
16
ployment program included on the eligibility and cer-
17
tification approval report of an institution of higher
18
education shall comply with each of the following:
19
‘‘(A) The gainful employment program is
20
approved by a recognized accrediting agency or
21
is otherwise included in the institution’s accred-
22
itation by its recognized accrediting agency, or,
23
if the institution is a public postsecondary voca-
24
tional institution, the program is approved by a
25
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
8
•S 889 IS
recognized State agency for the approval of
1
public postsecondary vocational education in
2
lieu of accreditation.
3
‘‘(B) The gainful employment program is
4
programmatically accredited, if such accredita-
5
tion is required by—
6
‘‘(i) a Federal governmental entity;
7
‘‘(ii) a governmental entity in the
8
State in which the institution is located; or
9
‘‘(iii) a governmental entity in a State
10
in which the institution is not physically lo-
11
cated, if the institution—
12
‘‘(I) offers postsecondary edu-
13
cation through distance education or
14
correspondence courses to students lo-
15
cated in that State; or
16
‘‘(II) is otherwise subject to that
17
State’s jurisdiction, as determined by
18
that State.
19
‘‘(C) The gainful employment program sat-
20
isfies the applicable educational prerequisites
21
for professional licensure or certification re-
22
quirements in the State in which the institution
23
is located or a State described in subparagraph
24
(B)(iii), so that a student who completes the
25
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
9
•S 889 IS
program and seeks employment in any such
1
State qualifies to take any licensure or certifi-
2
cation examination that is needed for the stu-
3
dent to practice or find employment in an occu-
4
pation that the program prepares students to
5
enter.
6
‘‘(D) The gainful employment program is
7
not substantially similar to a program offered
8
by the institution that, in any of the 3 years
9
prior to the date of the eligibility and certifi-
10
cation approval report—
11
‘‘(i) became ineligible for funding
12
under this title due to a debt to earning
13
rates measure, or any subsequent outcome
14
measure, that the Secretary determines
15
serves the best interests of students and
16
taxpayers; and
17
‘‘(ii) was voluntarily discontinued by
18
the institution.
19
‘‘(3)
REQUIREMENTS
ENSURING
STUDENT
20
AWARENESS.—Before an institution offering a gain-
21
ful employment program enrolls any student who in-
22
tends to reside, practice, or seek employment in a
23
State for which the program does not satisfy the ap-
24
plicable educational prerequisites for professional li-
25
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
10
•S 889 IS
censure or certification requirements needed for that
1
occupation in that State, the institution shall—
2
‘‘(A) notify the student that the gainful
3
employment program does not satisfy the pre-
4
requisites; and
5
‘‘(B) obtain from the student a hand-
6
written statement, in the student’s own words
7
and signed by the student, acknowledging that
8
the student wishes to enroll in the gainful em-
9
ployment program despite knowing that the
10
gainful employment program does not meet the
11
licensure or certification requirements for the
12
occupation in the State in which the student in-
13
tends to reside, practice, or seek employment.
14
‘‘(4) REQUIREMENTS
REGARDING
REESTAB-
15
LISHMENT
OF
ELIGIBILITY.—The institution shall
16
not seek to reestablish the eligibility of a gainful em-
17
ployment program that is ineligible for funding
18
under this subsection until not less than 3 years fol-
19
lowing the date specified in the notice of determina-
20
tion informing the institution of the program’s ineli-
21
gibility.’’.
22
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
11
•S 889 IS
SEC. 5. STATE AUTHORIZATION REQUIREMENTS FOR DIS-
1
TANCE EDUCATION PROGRAMS.
2
Section 101 of the Higher Education Act of 1965 (20
3
U.S.C. 1001(a)) is amended—
4
(1) in subsection (a)(2), by inserting ‘‘, in ac-
5
cordance with subsection (d)’’ before the semicolon;
6
and
7
(2) by adding at the end the following:
8
‘‘(d) STATE AUTHORIZATION.—
9
‘‘(1) IN GENERAL.—An institution that offers
10
postsecondary education through distance education
11
or correspondence courses shall meet the require-
12
ments of subsection (a)(2) by being legally author-
13
ized within each State in which the institution’s en-
14
rolled students are located, subject to paragraph (2).
15
‘‘(2)
STATE
AUTHORIZATION
RECIPROCITY
16
AGREEMENTS.—An institution described in para-
17
graph (1) that is located in a State that participates
18
in a State authorization reciprocity agreement with
19
another State and that is covered by such State au-
20
thorization reciprocity agreement, is considered to
21
meet State requirements for the institution to be le-
22
gally offering postsecondary distance education or
23
correspondence courses in the other State—
24
‘‘(A) subject to any additional require-
25
ments of that State; and
26
VerDate Sep 11 2014
22:54 Mar 30, 2023
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\S889.IS
S889
kjohnson on DSK79L0C42PROD with BILLS
12
•S 889 IS
‘‘(B) if the institution documents, in the
1
manner required by the Secretary, that each
2
State in which the institution’s enrolled stu-
3
dents are located has a State process—
4
‘‘(i) to review and take appropriate
5
action on complaints from any of such en-
6
rolled students concerning the institution,
7
including enforcing applicable State law;
8
and
9
‘‘(ii) to make the complaints public.
10
‘‘(3)
STATE
AUTHORIZATION
RECIPROCITY
11
AGREEMENT DEFINED.—In this subsection, the term
12
‘State authorization reciprocity agreement’ means an
13
agreement between 2 or more States that—
14
‘‘(A) authorizes an institution located and
15
legally authorized in a State covered by the
16
agreement to provide postsecondary education
17
through distance education or correspondence
18
courses to students located in other States cov-
19
ered by the agreement; and
20
‘‘(B) does not prohibit any State in the
21
agreement from enforcing the State’s
[Text truncated for display. Full text available on Congress.gov.]