Sec. 486. Improved disclosures, counseling, and financial assistance information for students

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Section 485 ( 20 U.S.C. 1092 ) is amended— in subsection (b)— in paragraph (1)(A)— by striking clause

(i)and inserting the following: personalized information that reflects the borrower's actual borrowing circumstances, which shall include— the repayment plans available, including the income-based repayment option under section 493C and the standard 10-year repayment option under section 428(b)(9)(A)(i) or 455(d)(1)(A); a description of the different features of each plan; and personalized information showing estimates of the borrower's anticipated monthly payments and the difference in total interest paid and total payments under each plan; ; by redesignating clauses

(viii)and

(ix)as clauses

(x)and (xi), respectively; by inserting after clause

(vii)the following: a statement that student loans must be repaid even if the student does not complete the program in which the student is enrolled; information and resources related to financial literacy and planning, including budgeting, as determined by the Secretary based on the recommendations of the Secretary of the Treasury in the report submitted under section 1103 of the Higher Education Affordability Act ; ; and by adding at the end the following: The counseling described in subparagraph (A)— shall be provided in a simple and understandable manner that includes mechanisms to check for comprehension; and shall be provided— during an exit counseling session conducted in person; or online. ; and in paragraph (2)(A)(iv), by striking , address, social security number, references, and driver's license number and inserting , postal address, social security number, references, driver's license number, phone number, and personal electronic mailing address that is not associated with the institution ; in subsection (d)(1), by striking income-sensitive and all that follows through part D and inserting income-based repayment plans for loans made, insured, or guaranteed under part B or made under part D. ; in subsection (f)— by striking the subsection heading and inserting ; Disclosure of campus security and harassment policy and campus crime statistics in paragraph (6)(A)— by redesignating clauses (iii), (iv), and

(v)as clauses (vii), (viii), and (ix), respectively; and by inserting after clause

(ii)the following: The term commercial mobile service has the meaning given the term in section 332(d) of the Communications Act of 1934 (47 U.S.C. 332(d)). The term electronic communication means any transfer of signs, signals, writing, images, sounds, or data of any nature transmitted in whole or in part by a wire, radio, electromagnetic, photoelectronic, or photooptical system. The term electronic messaging services has the meaning given the term in section 102 of the Communications Assistance for Law Enforcement Act ( 47 U.S.C. 1001 ). The term harassment means conduct, including acts of verbal, nonverbal, or physical aggression, intimidation, or hostility (including conduct that is undertaken in whole or in part, through the use of electronic messaging services, commercial mobile services, electronic communications, or other technology) that— is sufficiently severe, persistent, or pervasive so as to limit a student's ability to participate in or benefit from a program or activity at an institution of higher education, or to create a hostile or abusive educational environment at an institution of higher education; and is based on a student's actual or perceived— race; color; national origin; sex; disability; sexual orientation; gender identity; or religion. ; by redesignating paragraphs

(9)through

(18)as paragraphs

(10)through (19), respectively; and by inserting after paragraph

(8)the following: Each institution of higher education participating in any program under this title, other than a foreign institution of higher education, shall develop and distribute as part of the report described in paragraph

(1)a statement of policy regarding harassment, which shall include— a prohibition of harassment of enrolled students by other students, faculty, and staff— on campus; in noncampus buildings or on noncampus property; on public property; through the use of electronic mail addresses issued by the institution of higher education; through the use of computers and communication networks, including any telecommunications service, owned, operated, or contracted for use by the institution of higher education or its agents; or during an activity sponsored by the institution of higher education or carried out with the use of resources provided by the institution of higher education; a description of the institution's programs to combat harassment, which shall be aimed at the prevention of harassment; a description of the procedures that a student should follow if an incident of harassment occurs; and a description of the procedures that the institution will follow once an incident of harassment has been reported. The statement of policy described in subparagraph

(A)shall address the following areas: Procedures for timely institutional action in cases of alleged harassment, which procedures shall include a clear statement that the accuser and the accused shall be informed of the outcome of any disciplinary proceedings in response to an allegation of harassment. Possible sanctions to be imposed following the final determination of an institutional disciplinary procedure regarding harassment. Notification of existing counseling, mental health, or student services for victims or perpetrators of harassment, both on campus and in the community. Identification of a designated employee or office at the institution that will be responsible for receiving and tracking each report of harassment by a student, faculty, or staff member. ; in subsection (l)— by striking paragraph

(1)and inserting the following: Each eligible institution shall, prior to obtaining or arranging execution of a master promissory note for a loan under part D (other than a Federal Direct Consolidation Loan) by a first-time borrower at such institution, ensure that the borrower receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to such loan in accordance with paragraph (2). Such information— shall be provided through the use of interactive programs that include mechanisms to check the borrower's comprehension of the terms and conditions of the borrower’s loans under part D, using simple and understandable language and clear formatting; and shall be provided— during an entrance counseling session conducted in person; or online. ; in paragraph (2)— in subparagraph (H), by striking within the regular time for program completion ; and by adding at the end the following: A disclosure that Federal student loans offer generally more favorable terms and beneficial repayment options than private education loans, an explanation of the difference and relevance between student loans with a fixed interest rate as compared to student loans with a variable interest rate, and a recommendation that students examine available Federal student loan options before applying for private education loans. The explanation of the benefits provided under Federal student loans developed by the Secretary under section 483A(b). An explanation, if applicable, that a student may refuse all or part of a student loan available under part D, which could help minimize the student's debt obligations. Information relating to the institution's cohort default rate, including— the cohort default rate, as defined in section 435(m), of the institution; an easy to understand explanation of the cohort default rate; the percentage of students at the institution of higher education who borrow Federal student loans under this title; the national average cohort default rate (as determined by the Secretary in accordance with section 435(m)); in the case of an institution with a cohort default rate that is greater than the national average cohort default rate (as described in clause (iv)), a disclosure to the student that the institution's cohort default rate is above the national average; and in the case of an institution with a cohort default rate that is greater than 30 percent, a disclosure to the students that if the cohort default rate remains greater than 30 percent for the 3 consecutive years— the institution will lose institutional eligibility for the purposes of programs authorized under this title; and the student will no longer be able to receive Federal financial aid at that institution. Information relating to the institution's speed-based loan repayment rate, including— the speed-based loan repayment rate, as described in section 483D(c), of the institution and, if applicable, the speed-based loan repayment rate of each program at the institution that is subject to gainful employment regulations under section 668.7 of title 34, Code of Federal Regulations; an easy to understand description of what a speed-based loan repayment rate is; the national average speed-based loan repayment rate, as determined by the Secretary in accordance with section 483D(c); and in the case of an institution with a speed-based loan repayment rate that is below the national average speed-based loan repayment rate (as described in clause (iii)), a disclosure to the student that the institution's speed-based loan repayment rate is below the national average. In the case of an institution with a school default risk for a fiscal year, as calculated by the Secretary, of 0.1 or higher, an explanation of the obligations of the institution under section 487(a)(32)(A). The percentages of students at the institution who obtain a degree or certificate within 100 percent of the normal time for completion of the student's program, and who obtain a degree or certificate within 150 percent of the normal time for completion of, the student's program. Information and resources related to financial literacy and planning, including budgeting, as determined by the Secretary based on the recommendations of the Secretary of the Treasury in the report submitted under section 1103 of the Higher Education Affordability Act . ; and by adding at the end the following: Each eligible institution shall— require that a borrower who applies for a loan under this title to attend the institution on or after the date of enactment of the Higher Education Affordability Act submit to the institution, during the entrance counseling required by this subsection, the borrower's contact information at the time of the entrance counseling, including the borrower's phone number and the borrower's postal address; and request that the borrower provide a personal electronic mailing address of the borrower that is not associated with the institution. A borrower receiving entrance counseling under this subsection shall provide the institution with the personal electronic mailing address described in subparagraph (A)(ii) and shall update the borrower's contact information as necessary to ensure that the information remains accurate. ; and by adding at the end the following: Each eligible institution shall, not less than once every year while a student is enrolled in the institution, carry out the notification requirements described in subparagraphs

(A)through

(G)with respect to a borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C) or made under part D (other than a Federal Direct Consolidation Loan). Such notification requirements may be fulfilled by notifications provided at the same time as existing methods of communication, such as by accompanying the annual financial aid award letter, subject to subparagraph (E). The eligible institution shall provide the borrower with a written notification of— the borrower's outstanding balance of principal and interest owing on any loan made, insured, or guaranteed under this title; the borrower's repayment options; a disclosure that Federal student loans offer generally more favorable terms and beneficial repayment options than private education loans, an explanation of the difference and relevance between student loans with a fixed interest rate as compared to student loans with a variable interest rate, and a recommendation that students examine available Federal student loan options before applying for private education loans; and the explanation of the benefits provided under Federal student loans developed by the Secretary under section 483A(b). In addition to the notifications under subparagraph

(A)and under subparagraph (C), if applicable, in the case of a borrower described in paragraph

(1)who qualifies for a Federal Direct Stafford Loan and who was a new borrower on or after July 1, 2013, the institution shall provide— a written notification of the period of time that the borrower has remaining before the borrower will not be eligible for a Federal Direct Stafford Loan in accordance with section 455(q) because the period of time for which the borrower has received Federal Direct Stafford Loans, in the aggregate, exceeds the period of enrollment described in section 455(q)(3); and a written notification to such student when the period of time for which the borrower has received Federal Direct Stafford Loans, in the aggregate, reaches— except as provided in subclause

(II)or (III), a period equal to 100 percent of the published length of the educational program in which the student is enrolled; in the case of a borrower who was previously enrolled in 1 or more other educational programs that began on or after July 1, 2013, a period equivalent to 2/3 of the maximum period of time that the borrower is eligible to receive a Federal Direct Stafford Loan, as calculated in accordance with section 455(q)(3)(A)(ii); or in the case of a borrower who was or is enrolled on less than a full-time basis or in the case of a borrower whose course of study or program is described in paragraph (3)(B) or (4)(B) of section 484(b), a period equivalent to 2/3 of the maximum period of time that the borrower is eligible to receive a Federal Direct Stafford Loan, as calculated in accordance with section 455(q)(3)(B). In addition to the notifications under subparagraph

(A)and under subparagraph (B), if applicable, in the case of a borrower described in paragraph

(1)who is receiving a Federal Pell Grant, the institution shall provide a written notification to such borrower of the student's remaining period of eligibility for a Federal Pell Grant in accordance with section 401(c)(5). Each eligible institution shall require the borrower, for each applicable notification described in this paragraph, to provide written confirmation (including through electronic means) that the borrower has received the notification and understands the information contained in that notification. In the case of an institution described in paragraph (2), the notification requirements under this paragraph (including the confirmation of notification described in subparagraph (D)) shall be carried out annually during the interim in-school counseling described in paragraph (2). A borrower shall be subject to the requirements described in clause

(iii)if— the borrower has a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C or a loan made on behalf of a student pursuant to section 428B) or made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student); and the borrower has transferred to the institution from another institution of higher education; or the borrower meets certain criteria that may place a borrower at greater risk of defaulting on student loans. The Secretary shall determine any appropriate criteria to be used in clause (i)(II)(bb), such as withdrawing prematurely from an educational program or being in danger of failing to meet standards of academic progress. Nothing in this subparagraph shall be construed to allow an institution to select any criteria for purposes of such clause. Each eligible institution shall require each borrower described in clause

(i)to participate in an additional loan counseling session, which shall— be coordinated jointly by the student’s academic advisor and the financial aid office of the institution; include disclosure of the estimated additional cost of attendance that the borrower may incur by failing to progress through the borrower’s educational program at a pace that meets the requirements for satisfactory progress, as described in section 484(c); and in the case of a borrower described in clause (i)(II)(bb), include the development of an institutionally approved academic plan designed to ensure that the borrower will complete the borrower’s educational program within a reasonable timeframe. Each eligible institution shall, prior to disbursement of a Federal Direct PLUS loan made on behalf of a student, ensure that the borrower receives comprehensive information on the terms and conditions of the loan and of the responsibilities the borrower has with respect to such loan. Such information— shall be provided through the use of interactive programs that use mechanisms to check the borrower’s understanding of the terms and conditions of the borrower’s loan, using simple and understandable language and clear formatting; and shall be provided— during a counseling session conducted in person; or online. The information to be provided to the borrower under clause

(i)shall include the following: Information on how interest accrues and is capitalized during periods when the interest is not paid by the borrower. An explanation of when loan repayment begins, of the options available for a borrower who may need a deferment, and that interest accrues during a deferment. The repayment plans that are available to the borrower, including personalized information showing— estimates of the borrower’s anticipated monthly payments under each repayment plan that is available; and the difference in interest paid and total payments under each repayment plan. The obligation of the borrower to repay the full amount of the loan, regardless of whether the student on whose behalf the loan was made completes the program in which the student is enrolled. The likely consequences of default on the loan, including adverse credit reports, delinquent debt collection procedures under Federal law, and litigation. A notification that the loan is not eligible for an income-based repayment plan under section 493C. The name and contact information of the individual the borrower may contact if the borrower has any questions about the borrower’s rights and responsibilities or the terms and conditions of the loan. Each eligible institution that has a student default risk that is greater than the national average student default risk (as determined by the Secretary), shall require each borrower of a loan made, insured, or guaranteed under part B (other than a loan made pursuant to section 428C or a loan made on behalf of a student pursuant to section 428B) or made under part D (other than a Federal Direct Consolidation Loan or a Federal Direct PLUS loan made on behalf of a student), to undertake not less than 1 online or in-person counseling session at the beginning of each academic year that the borrower is enrolled at such institution, which shall include— the applicable notification requirements described in paragraph (1); and a statement that student loans must be repaid even if the student does not complete the program in which the student enrolled. In any case where an institution needs data to comply with subsection (b), (l), or

(n)that are not available to the institution but that are available to the Department or a Federal agency, the Secretary or the head of such agency shall provide or make available such information to the institution. Beginning in the year in which the Higher Education Affordability Act is enacted, an eligible institution that participates in any program under this title shall prepare and submit a report to the Secretary containing the information described in subparagraph (C), for every year in which the eligible institution has an agreement with a hospital or health facility, through which— the eligible institution agrees to provide funding or other benefits to the hospital or health facility; and that hospital or health facility provides opportunities for students at the institution to participate in a clinical training program. Following the year in which the Higher Education Affordability Act is enacted, the report described in this paragraph shall be submitted not more than 30 days after the end of any year for which a report is required to comply with subparagraph (A). The report described in this paragraph shall include the following: The amount of any payments from the institution of higher education to a hospital or health facility during the period covered by the report, and the precise terms of any agreement under which such amounts are determined. Any conditions associated with the transfer of money or the provision of clinical training program opportunities that are part of the agreement described in subparagraph (A). Any memorandum of understanding between the institution of higher education, or an alumni association or foundation affiliated with or related to such institution, and a hospital or health facility, that directly or indirectly relates to any aspect of any agreement referred to in subparagraph

(A)or controls or directs any obligations or distribution of benefits between or among any such entities. For each hospital or health facility that has an agreement described in subparagraph

(A)with the institution, the number of clinical training positions at the hospital or health facility that are reserved for students at that institution. Beginning in the year in which the Higher Education Affordability Act is enacted, and annually thereafter, an eligible institution shall prepare and submit to the Secretary a report containing the information described in subparagraph

(C)if— the eligible institution made a charitable donation to a hospital or health facility in any of the previous 3 years; and the number of students from the eligible institution who participate in any clinical training program at the hospital or health facility where such a donation was made increases by more than 5 students or 10 percent, whichever is less, as compared to the number of such students who participated in a clinical training program at that hospital or health facility during the first year in the previous 3-year period. Following the year in which the Higher Education Affordability Act is enacted, the report described in subparagraph

(A)shall be submitted not more than 30 days after the end of any year for which a report is required to comply with subparagraph (A). The report described in this paragraph shall include the following: The amount of each charitable donation that was made in the previous 3-year period by the eligible institution to a hospital or health facility. The number of students from the eligible institution who participate in any clinical training program at the hospital or health facility where each such donation was made— during the year in which the report is submitted; and during the first year in the previous 3-year period covered by the report. The information required to be reported in this subsection shall include, and shall be aggregated with respect to, each institution of higher education and each alumni association or foundation affiliated with or related to such institution. For any year in which an institution is required to submit a report described under paragraph

(1)and a report described under paragraph (2), the institution may submit a single report for that year containing all of the information required under paragraphs

(1)and (2). The Secretary, in conjunction with the Secretary of Health and Human Services, shall submit to Congress, and make available to the public, an annual report that lists the reports submitted to the Secretary by each institution of higher education in accordance with this subsection. Each eligible institution described in paragraph

(1)or

(2)of this subsection shall make readily available the reports described in such paragraph (as applicable), through appropriate publications, mailings, and electronic media to the general public. In this subsection: The term clinical training program means any program at, or associated or affiliated with, a hospital or health facility (or any of a hospital’s affiliates or health facility's affiliates), the completion of which fulfills a requirement that is necessary to receive a license, certificate, specialized accreditation, or other academically related pre-condition necessary under Federal or State law for a health profession. The term health facility has the meaning given that term in section 804(d). The term hospital has the meaning given that term in section 1861 of the Social Security Act (42 U.S.C. 1395x). . Nothing in the amendments made by subsection (a)(3), shall be construed to invalidate or limit rights, remedies, procedures, or legal standards available to victims of discrimination under any other Federal law or law of a State or political subdivision of a State, including title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), section 504 or 505 of the Rehabilitation Act of 1973 (29 U.S.C. 794, 794a), or the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.). The obligations imposed by this Act are in addition to those imposed by title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), section 504 of the Rehabilitation Act of 1973 ( 29 U.S.C. 794 ), and the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12101 et seq. ). The amendment made by subsection (a)(2) shall take effect on the date that is 1 year after the date of enactment of this Act.

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Sec. 486

Improved disclosures, counseling, and financial assistance information for students

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