Sec. 3. Definitions
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In this Act: The term annual income means an amount equal to the sum of— annual adjusted gross income, as defined in section 62 of the Internal Revenue Code of 1986; and any amount described under section 103 of the Internal Revenue Code of 1986. The term cost of attendance has the meaning given the term in section 472 of the Higher Education Act of 1965 ( 20 U.S.C. 1087ll ). The term institution of higher education has the meaning given the term in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 ), except that for purposes of this Act, an institution of higher education does not include any program of postsecondary education or training, including a degree or certificate program, that is designed to prepare students for entry into a recognized occupation or profession that requires licensing or other established requirements as a pre-condition for entry into such occupation or profession, unless— the successful completion of the program fully qualifies a student, in the State in which the institution offering the program is located (and in any State in which the institution indicates, through advertising or marketing activities or direct contact with potential students, that a student will be prepared to work in the occupation or profession after successfully completing the program), to— take any examination required for entry into the recognized occupation or profession in the State, including satisfying all State or professionally mandated programmatic and specialized accreditation requirements, if any; and be certified or licensed or meet any other academically related pre-conditions that are required for entry into the recognized occupation or profession in the State; the institution offering the program provides timely placement for all of the academically related pre-licensure requirements for entry into the recognized occupation or profession in the State, such as clinical placements, internships, or apprenticeships; in the case of State licensing or professionally mandated requirements for entry into the recognized occupation or profession in the State in which the institution offering the program is located (and in any State in which the institution indicates, through advertising or marketing activities or direct contact with potential students, that a student will be prepared to work in the occupation or profession after successfully completing the program) that require specialized accreditation— the program meets that requirement for specialized accreditation through its accreditation or pre-accreditation by an accrediting agency or association recognized by the Secretary of Education as a reliable authority as to the quality or training offered by the institution in that program; and if the program is in a pre-accredited, probation, or show cause status by an accrediting agency or association described in subclause (I), and the requirement for specialized accreditation is for full accreditation, the institution— establishes, to the satisfaction of the Secretary of Education, that each student who enrolls before the program is fully accredited attests of being advised that the program is in a pre-accredited, probation, or show cause status and of being informed of the effect on the student's eligibility for assistance under this Act and on the student's ability to satisfy State or professionally mandated requirements for entry into the recognized occupation or profession if full accreditation is delayed, denied, terminated, or withdrawn; and publicly and prominently discloses in any advertising, marketing, or recruitment materials and activities for the institution, the institution's pre-accredited, probation, or show cause status and the implications of such status for prospective students; and the institution— discloses on the application to enroll in the institution that its program does not necessarily satisfy out-of-State requirements, if applicable; and upon receipt of an application to enroll in the institution, notifies the student, prior to enrollment, if the program in which the student intends to enroll does not satisfy the requirements of the State in which the student is a resident, if applicable.
The term institution of higher education may include a particular school, department, or program within an institution of higher education described in subparagraph (A). The term Pay It Forward model means a system in which— the Secretary, a State, or an institution of higher education pays all or part of a participating student's cost of attendance, but not less than an amount equal to the cost of tuition and mandatory fees, for each such student during some or all of the time that the student is enrolled at an institution of higher education in order to replace the student's need to borrow under the Federal Direct Stafford Loan and Federal Direct Unsubsidized Stafford Loan Programs under part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq. ); and such student signs a contract agreeing to contribute to the Secretary, a State, or an institution of higher education, as the case may be, a certain percentage (not to exceed 5 percent) of the student’s annual income, for a specified number of years upon graduation or when the student ceases to be enrolled at such institution of higher education, except that the specified number of years for which the student agrees to contribute according to such contract shall not exceed 25 years, which shall be known as the Pay It Forward Contribution Plan .
The term Secretary means the Secretary of Education. The term tuition and mandatory fees means tuition and fees normally assessed a student carrying the same academic workload as determined by the institution of higher education.
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