Sec. 7. Proprietary education oversight coordination committee
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Title I of the Higher Education Act of 1965 ( 20 U.S.C. 1001 et seq. ), as amended by section 6 of this Act, is further amended by adding at the end the following new part: In this part: The term executive officer , with respect to a proprietary institution of higher education that is a publicly traded corporation, means— the president of such corporation; a vice president of such corporation who is in charge of a principal business unit, division, or function of such corporation (including sales, administration, or finance); or any other officer or person who performs a policy making function for such corporation.
The term proprietary institution of higher education has the meaning given the term in section 102(b). The term State approval agency means any State agency that determines whether an institution of higher education is legally authorized within such State to provide a program of education beyond secondary education. The term veterans service organization means an organization recognized by the Secretary of Veterans Affairs for the representation of veterans under section 5902 of title 38, United States Code.
There is established a committee to be known as the Proprietary Education Oversight Coordination Committee (referred to in this part as the Committee ) and to be composed of the head (or the designee of such head) of each of the following: The Department of Education. The Bureau of Consumer Financial Protection. The Department of Justice. The Securities and Exchange Commission. The Department of Defense. The Department of Veterans Affairs. The Federal Trade Commission. The Department of Labor.
The Internal Revenue Service. At the discretion of the President, any other relevant Federal agency or department. The Committee shall have the following duties: Coordinate Federal oversight of proprietary institutions of higher education to— improve enforcement of applicable Federal laws and regulations; increase accountability of proprietary institutions of higher education to students and taxpayers; and ensure the promotion of quality education programs. Coordinate Federal activities to protect students from unfair, deceptive, abusive, unethical, fraudulent, or predatory practices, policies, or procedures of proprietary institutions of higher education.
Encourage information sharing among agencies related to Federal investigations, audits, or inquiries of proprietary institutions of higher education. Increase coordination and cooperation between Federal and State agencies, including State Attorneys General and State approval agencies, with respect to improving oversight and accountability of proprietary institutions of higher education. Develop best practices and consistency among Federal and State agencies in the dissemination of consumer information regarding proprietary institutions of higher education to ensure that students, parents, and other stakeholders have easy access to such information.
For any designee described in subsection (a), the head of the member entity shall appoint a high-level official who exercises significant decisionmaking authority for the oversight or investigatory activities and responsibilities related to proprietary institutions of higher education of the respective Federal entity of such head. The Secretary of Education or the designee of the Secretary shall serve as the Chair of the Committee. The head of each entity described in subsection
(a)shall ensure appropriate staff and officials of such entity are available to support the Committee-related work of such entity. The members of the Committee shall meet regularly, but not less than once during each quarter of each fiscal year, to carry out the duties described in section 167(b). The Committee shall meet not less than once each fiscal year, and shall otherwise interact regularly, with State Attorneys General, State approval agencies, veterans service organizations, and consumer advocates to carry out the duties described in section 167(b). The Committee shall annually submit to the authorizing committees, and any other committee of Congress that the Committee determines appropriate, a report on the activities of the Committee. Each report described in subsection
(a)shall be made available to the public in a manner that is easily accessible to parents, students, and other stakeholders in accordance with the best practices developed under section 167(b)(5). Each report under subsection
(a)shall include— an accounting of any action taken by the Federal Government, any member entity of the Committee, or a State— to enforce Federal or State laws and regulations applicable to proprietary institutions of higher education; to hold proprietary institutions of higher education accountable to students and taxpayers; and to promote quality education programs; a summary of complaints against each proprietary institution of higher education received by any member entity of the Committee; the data described in paragraph
(2)and any other data relevant to proprietary institutions of higher education that the Committee determines appropriate; and recommendations of the Committee for such legislative and administrative actions as the Committee determines are necessary to— improve enforcement of applicable Federal laws; increase accountability of proprietary institutions of higher education to students and taxpayers; and ensure the promotion of quality education programs. Each report under subsection
(a)shall include data on all proprietary institutions of higher education that consists of information regarding— the total amount of Federal funds provided to proprietary institutions of higher education during the previous academic year; the percentage of the total amount of Federal funds provided to institutions of higher education (as defined in section 102) for such previous academic year that were provided to proprietary institutions of higher education for such previous academic year; the total amount of Federal funds that proprietary institutions of higher education disbursed or delivered, on behalf of a student, or to a student to be used to attend an institution of higher education, for the previous academic year, disaggregated by— educational assistance in the form of a loan provided under title IV; educational assistance in the form of a grant provided under title IV; educational assistance provided under chapter 33 of title 38, United States Code; tuition assistance provided under section 2007 of title 10, United States Code; assistance provided under section 1784a of title 10, United States Code; and Federal funds not described in subclauses
(I)through (V); the percentage of the total amount of Federal funds provided to institutions of higher education (as defined in section 102) for such previous academic year for each of the programs described in subclauses
(I)through
(V)of clause
(iii)that were provided to proprietary institutions of higher education for such previous academic year for each of such programs; the average retention and graduation rates for students pursuing a degree at proprietary institutions of higher education; the average cohort default rate (as defined in section 435(m)) for proprietary institutions of higher education, and an annual list of cohort default rates (as defined in such section) for all proprietary institutions of higher education; for careers requiring the passage of a licensing examination— the passage rate of individuals who attended a proprietary institution of higher education taking such examination to pursue such a career; and the passage rate of all individuals taking such exam to pursue such a career; and the use of private education loans at proprietary institutions of higher education that includes— an estimate of the total number of such loans; and information on the average debt, default rate, and interest rate of such loans. Each report under subsection 9(a) shall include data on proprietary institutions of higher education that are publicly traded corporations, consisting of information on— any pre-tax profit of such proprietary institutions of higher education— reported as a total amount and an average percentage of revenue for all such proprietary institutions of higher education; and reported for each such proprietary institution of higher education; revenue for such proprietary institutions of higher education spent on recruiting and marketing activities, student instruction, and student support services, reported— as a total amount and an average percentage of revenue for all such proprietary institutions of higher education; and for each such proprietary institution of higher education; total compensation packages of the executive officers of each such proprietary institution of higher education; and a list of institutional loan programs offered by each such proprietary institution of higher education that includes information on the default and interest rates of such programs. Each report under subsection
(a)shall include data on proprietary institutions of higher education that are publicly traded corporations, disaggregated by corporate or parent entity, brand name, and campus, consisting of— the total cost of attendance for each program at each such proprietary institution of higher education, and information comparing such total cost for each such program to— the average cost of attendance for each program at public institutions of higher education; and the average total cost of attendance for each program at all non-profit institutions of higher education; total enrollment, disaggregated by— individuals enrolled in programs taken online; and individuals enrolled in programs that are not taken online; the average retention and graduation rates for students pursuing a degree at such proprietary institutions of higher education; the percentage of students enrolled in such proprietary institutions of higher education who complete a program of such an institution within— the standard period of completion for such program; and a period that is 150 percent of such standard period of completion; the total cost of attendance for each program at such proprietary institutions of higher education; the average cohort default rate, as defined in section 435(m), for such proprietary institutions of higher education, and an annual list of cohort default rates (as defined in such section) for all proprietary institutions of higher education; the median educational debt incurred by students who complete a program at such a proprietary institution of higher education; the median educational debt incurred by students who start but do not complete a program at such a proprietary institution of higher education; the job placement rate for students who complete a program at such a proprietary institution of higher education and the type of employment obtained by such students; for careers requiring the passage of a licensing examination, the rate of individuals who attended such a proprietary institution of higher education and passed such an examination; and the number of complaints from students enrolled in such proprietary institutions of higher education who have submitted a complaint to any member entity of the Committee. To the extent practicable, each report under subsection
(a)shall provide information on the data described in clause
(ii)for individuals using, to pay for the costs of attending such a proprietary institution of higher education, Federal funds provided under title 10, United States Code, or title 38, United States Code. Each report under subsection
(a)shall provide information on the revenue of proprietary institutions of higher education that are publicly traded corporations that is derived from the Federal funds described in subclause (I). To the extent practicable, each report under subsection
(a)shall provide information comparing the data described in subparagraph
(B)for proprietary institutions of higher education that are publicly traded corporations with such data for public institutions of higher education disaggregated by State. For the purposes of paragraph (1)(A), the term any action shall include— a complaint filed by a Federal or State agency in a Federal, State, local, or tribal court; an administrative proceeding by a Federal or State agency involving noncompliance of any applicable law or regulation; or any other review, audit, or administrative process by any Federal or State agency that results in a penalty, suspension, or termination from any Federal or State program. Each academic year, the Committee shall publish a list to be known as the Warning List for Parents and Students to be comprised of proprietary institutions of higher education— that have engaged in illegal activity during the previous academic year as determined by a Federal or State court; that have entered into a settlement resulting in a monetary payment for an unfair, deceptive, abusive, unethical, fraudulent, or predatory practice, policy, or procedure; that have had any higher education program withdrawn or suspended; or for which the Committee has sufficient evidence of widespread or systemic unfair, deceptive, abusive, unethical, fraudulent, or predatory practices, policies, or procedures that pose a threat to the academic success, financial security, or general best interest of students. In making a determination pursuant to subsection (a)(4), the Committee may consider evidence that includes the following: Any consumer complaint collected by any member entity of the Committee. Any complaint filed by a Federal or State agency in a Federal, State, local, or tribal court. Any administrative proceeding by a Federal or State agency involving noncompliance of any applicable law or regulation. Any other review, audit, or administrative process by any Federal or State agency that results in a penalty, suspension, or termination from any Federal or State program. Data or information submitted by a proprietary institution of higher education to any accrediting agency or association recognized by the Secretary of Education pursuant to section 496 or the findings or adverse actions of any such accrediting agency or association. Information submitted by a proprietary institution of higher education to any member entity of the Committee. Any other evidence that the Committee determines relevant in making a determination pursuant to subsection (a)(4). Not later than July 1 of each fiscal year, the Committee shall publish the list described in subsection
(a)prominently and in a manner that is easily accessible to parents, students, and other stakeholders in accordance with any best practices developed under section 167(b)(5). In publishing the list in accordance with paragraph (1), the Committee shall note each institution that is included on the list due to an act described in subsection
(a)that was reported by such institution. .
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Sec. 7
Proprietary education oversight coordination committee
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