Sec. 3. Definitions
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Section 103 of the Higher Education Act of 1965 ( 20 U.S.C. 1003 ) is amended— by redesignating paragraphs
(4)through (9),
(10)through (14), and
(15)through (24), as paragraphs
(5)through (10),
(12)through (16), and
(18)through (26), respectively; by inserting after paragraph
(3)the following new paragraph: The term default manipulation means engaging in a device or practice, including branching, consolidation of campuses, consolidation or manipulation of the identification codes used by the Office of Postsecondary Education to designate campuses and institutions, change of ownership or control, serial forbearance, or any similar device or practice (as determined by the Secretary) when, but for the device or practice, one or more campuses of an institution of higher education would be at risk of cohort default rate sanctions under section 435 or student default risk sanctions under section 489A. ; by inserting after paragraph (10), as redesignated by paragraph
(1)of this section, the following new paragraph: The term Federal educational assistance funds means funds provided directly to an institution or to a student attending such institution under any of the following provisions of law: Title IV. Chapter 30, 31, 32, 33, 34, or 35 of title 38, United States Code. Chapter 101, 105, 106A, 1606, 1607, or 1608 of title 10, United States Code. Section 1784a, 2005, or 2007 of title 10, United States Code. Title I of the Workforce Investment Act of 1998 ( 29 U.S.C. 2801 et seq. ). The Adult Education and Family Literacy Act ( 20 U.S.C. 9201 et seq. ). ; and by inserting after paragraph (16), as redesignated by paragraph
(1)of this section, the following new paragraph: Except as provided in subparagraph (B), the term recruiting and marketing activity means an activity that consists of any of the following: Any advertising or promotion activity, including a paid announcement in newspapers, magazines, radio, television, billboards, electronic media, naming rights, or any other public medium of communication, including paying for a display or promotion at a job fair, military installation, or postsecondary education recruiting event. Any effort to identify and attract prospective students, directly or through a contractor or other third party, including any contact concerning a prospective student’s potential enrollment or application for grant, loan, or work assistance under title IV or participation in preadmission or advising activities, including— paying employees responsible for overseeing enrollment and for contacting potential students in person, by phone, by email, by internet communications, or by other means, regarding enrollment; compensating a person to provide to an institution of higher education contact information regarding prospective students, including information obtained through websites established for such purpose; and providing funds to a third party to create or maintain a website for the purpose of obtaining contact information regarding prospective students. Any other activity as the Secretary may determine. An activity that is required as a condition of receipt of funds by an institution under title IV, or under another applicable Federal law, shall not be considered to be a recruiting and marketing activity under subparagraph (A). . Section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 ) is amended by adding at the end the following new subsection: In this title, the term student default risk means the percentage that is calculated by taking an institution’s cohort default rate (as defined in section 435(m)) for the most recent fiscal year available, and multiplying it by the percentage of students enrolled at such institution receiving a loan made, insured, or guaranteed under this title during the previous academic year. .
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- 20 USC 9201
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