Sec. 11. Improved disclosures, counseling, and financial assistance information for students
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/bill/114/hr/2192/ih/section-11·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 485(l) of the Higher Education Act of 1965 ( 20 U.S.C. 1092(l) ) is amended— by striking paragraph
(1)and inserting the following new paragraph: 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. ; and in paragraph (2), by adding at the end the following new subparagraph: 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. .
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Sec. 11
Improved disclosures, counseling, and financial assistance information for students
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