Student Training and Education Metrics Act of 2019

II 116TH CONGRESS 1ST SESSION S. 2559 To establish certain requirements for institutions that participate in the Federal Direct loan program, and for other purposes. IN THE SENATE OF THE UNITED STATES SEPTEMBER 26, 2019 Mr. SCOTT of Florida introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To establish certain requirements for institutions that par- ticipate in the Federal Direct loan program, 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 ‘‘Student Training and 4 Education Metrics Act of 2019’’. 5 SEC. 2. RISK-SHARING PAYMENTS. 6 Section 454 of the Higher Education Act of 1965 (20 7 U.S.C. 1087d(a)) is amended— 8 (1) in subsection (a)— 9 VerDate Sep 11 2014 04:21 Oct 04, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2559.IS S2559 kjohnson on DSK79L0C42 with BILLS 2 •S 2559 IS (A) in paragraph (5), by striking ‘‘and’’ 1 after the semicolon; 2 (B) by redesignating paragraph (6) as 3 paragraph (8); and 4 (C) by inserting after paragraph (5) the 5 following: 6 ‘‘(6) provide that the institution accepts the in- 7 stitutional risk-sharing requirements under sub- 8 section (d);’’; and 9 (2) by adding at the end the following: 10 ‘‘(d) INSTITUTIONAL RISK-SHARING BASED ON 11 LOAN DEFAULT.— 12 ‘‘(1) IN GENERAL.—Beginning with fiscal year 13 2022, and each succeeding fiscal year, each institu- 14 tion of higher education participating in the direct 15 student loan program under this part shall remit to 16 the Secretary, at such times as the Secretary may 17 specify, an institutional risk-sharing payment, as de- 18 termined under paragraph (2). 19 ‘‘(2) DETERMINATION OF RISK-SHARING PAY- 20 MENTS.— 21 ‘‘(A) DETERMINATION OF COHORT LOAN 22 BALANCE.—The cohort loan balance of an insti- 23 tution for a fiscal year equals the total principal 24 amount of all loans made under this part to at- 25 VerDate Sep 11 2014 04:21 Oct 04, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2559.IS S2559 kjohnson on DSK79L0C42 with BILLS 3 •S 2559 IS tend such institution for the cohort of bor- 1 rowers who entered repayment, deferment, or 2 forbearance on such loans in the third pre- 3 ceding fiscal year for which the determination is 4 made. 5 ‘‘(B) DETERMINATION OF COHORT NON- 6 REPAYMENT LOAN BALANCE.—The cohort non- 7 repayment loan balance of an institution for a 8 fiscal year equals, from the total amount of the 9 loans described in subparagraph (A), the total 10 loan balance of those borrowers who have gone 11 into default in the 3 consecutive fiscal years 12 since their loans entered repayment, deferment, 13 or forbearance. 14 ‘‘(C) DETERMINATION OF PAYMENT.—The 15 risk-sharing payment of an institution for a fis- 16 cal year shall equal: 17 ‘‘(i) For the first year after the date 18 of enactment of this Act, an amount equal 19 to 1 percent of the cohort nonrepayment 20 loan balance determined under subpara- 21 graph (B). 22 ‘‘(ii) For the second year after the 23 date of enactment of this Act through the 24 ninth year after the date of enactment of 25 VerDate Sep 11 2014 04:21 Oct 04, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2559.IS S2559 kjohnson on DSK79L0C42 with BILLS 4 •S 2559 IS this Act, an amount equal to 2 percent of 1 the cohort nonrepayment loan balance de- 2 termined under subparagraph (B) through 3 9 percent of that balance, respectively for 4 each year. 5 ‘‘(iii) For the tenth year after the 6 date of enactment of this Act, and for any 7 successive year, an amount equal to 10 8 percent of the cohort nonrepayment loan 9 balance determined under subparagraph 10 (B).’’. 11 SEC. 3. PROGRAM INTEGRITY. 12 (a) INSTITUTIONAL REPORTING.—Section 454 of the 13 Higher Education Act of 1965 (20 U.S.C. 1087d(a)), as 14 amended by section 2, is further amended— 15 (1) in subsection (a), by inserting after para- 16 graph (6) (as added by section 2), the following: 17 ‘‘(7) provide that the institution will collect and 18 report to the Secretary, by July 1 of each year, data 19 regarding— 20 ‘‘(A) the 6-year graduation rate for each 21 academic program offered at the institution; 22 ‘‘(B) the percentage of graduates who are 23 employed full-time or continuing their education 24 full-time 1, 3, and 5 years after graduating; 25 VerDate Sep 11 2014 04:21 Oct 04, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2559.IS S2559 kjohnson on DSK79L0C42 with BILLS 5 •S 2559 IS ‘‘(C) the median full-time wages of grad- 1 uates for each academic program 1, 3, and 5 2 years after graduating; 3 ‘‘(D) the total cost of tuition and fees for 4 the mandatory credit hours necessary to grad- 5 uate with a degree for each academic program; 6 and 7 ‘‘(E) the cost to graduate with a degree for 8 each academic program (including tuition, fees, 9 room and board, and books and supplies); and’’; 10 and 11 (2) by adding at the end the following: 12 ‘‘(e) PUBLICLY AVAILABLE INFORMATION.—The 13 Secretary shall publish and make publicly available the 14 data described in subsection (a)(7).’’. 15 (b) PROGRAM REVIEW AND DATA.—Section 16 498A(a)(1) of the Higher Education Act of 1965 (20 17 U.S.C. 1099c–1(a)(1)) is amended by striking ‘‘title;’’ and 18 inserting ‘‘title, which shall include annually collecting and 19 reporting, for each institution— 20 ‘‘(A) the average amount of Federal stu- 21 dent loan debt owed for an individual student 22 on the date of graduation from that institution; 23 and 24 VerDate Sep 11 2014 04:21 Oct 04, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2559.IS S2559 kjohnson on DSK79L0C42 with BILLS 6 •S 2559 IS ‘‘(B) the rate of loan deferment, rate of 1 forbearance, rate of default, and rate of delin- 2 quency (each expressed separately) for bor- 3 rowers of all Federal student loans, 5, 7, and 4 10 years after the borrowers’ date of gradua- 5 tion from the institution;’’. 6 SEC. 4. PROHIBITION ON TUITION AND FEE INCREASES. 7 An institution of higher education (as defined in sec- 8 tion 102 of the Higher Education Act of 1965 (20 U.S.C. 9 1002)) shall not be eligible to receive any Federal funds 10 if that institution raises the amount of tuition and fees 11 charged above the amount of tuition and fees charged for 12 the 2019–2020 award year. 13 Æ VerDate Sep 11 2014 04:21 Oct 04, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S2559.IS S2559 kjohnson on DSK79L0C42 with BILLS