Sec. 201. Gainful employment programs
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Section 102 ( 20 U.S.C. 1002 ), as amended by sections 4(b) and 101, is further amended— in subsection (b)(1)(A)— by striking clause (ii); by striking
(i)provides and inserting provides ; and by striking recognized occupation; or and inserting recognized occupation, as described in subsection (e); ; in subsection (c)(1)(A), by inserting , as described in subsection
(e)after recognized occupation ; and by adding at the end the following: In this subsection: The term debt-to-earnings rates means the discretionary income rate and the annual earnings rate, as determined under the gainful employment rules. The term eligible training program means a program of training that— in order to qualify for assistance under title IV, is required under subsection (b)(1)(A)(i) or (c)(1)(A), or section 101(b)(1), to satisfy the gainful employment requirements of this subsection; and is offered by an institution eligible to receive assistance under such title. The term gainful employment rules means the rules issued under subpart Q of title 34, Code of Federal Regulations, as published on October 31, 2014, relating to gainful employment in a recognized occupation. An eligible training program prepares students for gainful employment in a recognized occupation if the eligible training program complies with all requirements of the gainful employment rules (including any modifications made by this subsection), including— the provisions relating to the calculation of debt-to-earnings rates for the eligible training program, using actual annual earnings data of students who completed the eligible training program; the provisions relating to the determination of outcomes for an eligible training program based on the debt-to-earnings rates, including whether an eligible training program is a passing , failing , or zone program; the provisions relating to the associated consequences for an eligible training program that is not passing the debt-to-earnings rates, including a student warning and ultimate loss of eligibility for assistance under title IV; the requirements relating to disclosure, reporting, and certification; and the calculation of completion rates, withdrawal rates, repayment rates, program cohort default rates, and median loan debt for the eligible training program. The Secretary shall carry out all of the following: On an annual calendar year basis (notwithstanding section 668.403(c)(5) of the gainful employment rules) and for each eligible training program, calculate for each award year both of the debt-to-earnings rates for the eligible training program, issue a notice of determination, and enforce restrictions based on those determinations. In order to carry out the preceding sentence, the Secretary shall— create a list of students who completed the eligible training program during the cohort period identified by the Secretary; provide the list to the institution offering the eligible training program and allow the institution a 45-day period beginning the day after the date that the Secretary provides the list to the institution, to submit any corrections to the list; after resolving any corrections, provide the institution with the final list and submit the final list of students who completed the eligible training program to the Social Security Administration, the Internal Revenue Service, or any other Federal agency that administers a database that contains earnings information that can be matched to the individuals named in the final list, and retrieve the mean and median annual earnings of students on the lists, in aggregate and not in individual form, within 10 business days after submission; calculate and send the debt-to-earnings rates to the institution offering the eligible training program and allow the institution a 45-day period, beginning after the date the Secretary notifies an institution of the debt-to-earnings rates, to challenge the accuracy of information used to calculate the eligible training program’s median loan debt; subject to the resolution of any challenge, issue a notice of determination informing the institution— of the final debt-to-earnings rates of each eligible training program to the institution offering the program; of the final determination regarding whether the program is a passing, failing, or zone program, or is ineligible, and the consequences of that determination; whether the program could become ineligible based on its final debt-to-earnings rates for the next award year; whether the institution is required to provide warnings to enrolled students and prospective students; and if the program is determined to be a failing or zone program due to the final debt-to-earnings rates, how the program may make an alternate earnings appeal, in accordance with paragraph (4); with respect to an institution that receives a notification from the Secretary under clause (v)(III) and that does not submit an intent to appeal in accordance with paragraph
(4)or for which the appeal is denied, require the institution, not later than 30 days after receiving the notification of the determination or denial, to— issue warnings to enrolled students and prospective students; and update the disclosure template, as required by the gainful employment rules, as modified by paragraph (5); and enforce restrictions whereby— an institution may not disburse program funds under title IV to students enrolled in an ineligible program; and an institution may not seek to reestablish the eligibility of a failing or zone program that it discontinued voluntarily, reestablish the eligibility of a program that is ineligible under the debt-to-earnings rates, or establish the eligibility of a program that is substantially similar to the discontinued or ineligible program, until 3 years following the date specified in the notice of determination informing the institution of the program’s ineligibility or the date the institution discontinued the failing or zone program; and develop processes to verify, on an annual calendar year basis, that— required warnings under the gainful employment rules are delivered to enrolled students and prospective students and are published on the eligible training program’s disclosure template, in accordance with subparagraph (A)(vii); and each eligible training program is publishing the disclosure template on the website of the eligible training program, as required by the gainful employment rules, as modified by paragraph (5). The Secretary shall establish and enforce an appeals process for any institution of higher education that wish to file an alternate earnings appeal for an eligible training program that is a failing or zone program under the debt-to-earnings rates. The appeals process shall be carried out in accordance with the gainful employment rules, except that the appeals process shall also— allow an institution to file an alternate earnings appeal, in accordance with the gainful employment rules, to request the recalculation of a gainful employment program’s most recent final debt-to-earnings rates issued by the Secretary, except that— any institution that elects to submit alternate earnings from an institutional survey shall, in addition to the other requirements in the gainful employment rules— include a test for non-response bias; allow for an exception to issues of bias due to sample sizes below 10; and subject the institutional survey instrument and survey responses to an audit by the Inspector General of the Department; and the Inspector General of the Department shall— audit the institutional survey instrument, and the survey responses, submitted by an institution under clause (i); and furnish data showing the Inspector General verified the accuracy of student survey responses; and require the Secretary to accept the alternate earnings estimate from an institutional survey if the test for non-response bias includes a response rate that guarantees that the lower bound of the 95 percent confidence interval of the alternate earnings estimate is at or above the earnings level retrieved from the Social Security Administration, the Internal Revenue Service, or any other Federal agency with a database containing individual-level earnings data. Notwithstanding section 668.412(a) of the gainful employment rules, the Secretary shall include in the disclosure template all the information listed in paragraphs
(1)through
(16)of section 668.412(a) of the gainful employment rules, unless the Secretary— determines that consumer testing supports the noninclusion of the information listed in any such paragraph; and publishes the Secretary's determination, and the consumer testing supporting the determination, on the public website of the Department. The Commissioner of Social Security, the Commissioner of Internal Revenue, and the head of any other Federal agency that administers the database of individual-level earnings data shall, in coordination with the Secretary, timely provide the Secretary with the earnings information as required in accordance with paragraph (3)(A)(iii) and the gainful employment rules. . Section 101(b)(1) ( 20 U.S.C. 1001(b)(1) ) is amended by inserting , as described in section 102(e), after recognized occupation . Notwithstanding section 3, this section shall take effect on the date of enactment of this Act.
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