Sec. 4601. Definition of eligible program
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Section 481(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1088(b) )— in paragraph (1)(A)(i), by striking profession and inserting occupation ; in paragraph (2)— in subparagraph (A)— by redesignating clause
(iii)as clause (vi); and by inserting after clause
(ii)the following: has a verified annual earnings rate among individuals who completed the program, as determined under subparagraph (D), that is not less than the average or median annual earnings rate of individuals with only a high school diploma (or the equivalent) based on the most recently available data from the Bureau of Labor Statistics or the Bureau of the Census with respect to— such average or median earnings rate in the United States; or subject to subparagraph (E), such average or median earnings rate in the State or local area in which the institution offering the program is located; prepares students for gainful employment in a recognized occupation; has been in operation for not less than two consecutive years; and ; and by adding at the end the following: For each subsequent year for which a program seeks eligibility under this paragraph, the Secretary shall reevaluate whether the program continues to meet the requirements of clauses (i), (iii), (iv), and
(vi)of subparagraph (A). A program that does not meet such requirements for two consecutive award years (or, in the case of a program that does not meet the requirements under subparagraph (A)(iv), for a period of time determined by the Secretary) shall be ineligible to participate in programs under this title— for the period of two award years following the last award year for which the program was eligible to participate in such programs; and for any subsequent award year, unless the program reapplies for eligibility in accordance with clause
(iii)and the Secretary determines that the program meets the requirements of such clauses. Not later than 60 days after receiving notification from the Secretary of the loss of eligibility under clause (i), a program may appeal a loss of eligibility to the Secretary. The Secretary may restore the eligibility of a program under this paragraph if the program demonstrates to the Secretary that extenuating circumstances led to the loss of eligibility. The Secretary shall issue a decision on any appeal submitted by a program under clause
(ii)not later than 45 days after its submission. After the expiration of the two-year period described in clause (i)(I), a program that lost eligibility under clause
(i)may reapply to the Secretary for a determination of eligibility under this paragraph. In this subsection, the term verified annual earnings rate means the mean or median annual earnings rate (whichever is higher) of individuals who completed a program calculated as of the date that is approximately one year after the date on which such individuals completed the program. For the first year for which a program seeks eligibility under this paragraph, the institution that offers such program shall— determine the verified annual earnings rate using data obtained on individuals who completed the program; obtain an audit of such determination from an independent auditor; together with the auditor described in subclause (II), certify the accuracy of the verified annual earnings rate to the Secretary; and determine the completion rate for the program, as described in subparagraph (A)(i), and certify to the Secretary the accuracy of such determination. For each subsequent year for which a program seeks eligibility under this paragraph, the Secretary shall determine the verified annual earnings rate and completion rate for the program using data made available to the Secretary through the postsecondary student data system established under section 132(l) or a successor system (whichever includes the most recent data). Except as provided in clause (ii), for purposes of calculating the average annual earnings rate of individuals with only a high school diploma (or the equivalent) under subparagraph (A)(ii) the Secretary shall apply the national average or median earnings rate in the United States. The Secretary may apply the average or median earnings rate in the State or local area in which the institution offering a program is located, in lieu of the national average earnings rate, if the institution provides sufficient justification to the Secretary. Using the postsecondary student data system established under section 132(l) or a successor system to streamline reporting requirements and minimize reporting burdens, and in coordination with the National Center for Education Statistics and each institution of higher education offering an eligible program under this paragraph, the Secretary shall, on at least an annual basis, collect data with respect to each such eligible program, including the following: The number and demographics of students who enroll in the program. The number of credits attempted and accumulated annually by students enrolled in the program. The share of such students who cease enrollment on or before the completion of 60 percent of the payment period or period of enrollment. The verified completion rate for the program, as described in subparagraph (A)(i). The mean and median annual earnings of graduates and the verified annual earnings rate for the program, as described in subparagraph (A)(ii). The number and demographics of students who complete the program. The outcomes of the students who complete the program, including— the share of such students who continue enrollment at the institution of higher education offering the program; the share of such students who transfer to another institution of higher education; the share of such students who complete a subsequent certificate or degree program; the share of such students who secure employment 6 months and 1 year, respectively— after completion of such program; or in the case of a program that prepares students for a professional license or certification exam, after acquiring such license or certification; and in the case of a program that prepares students for a professional license or certification exam, the share of such students who pass such exam. ; and in paragraph (4), by inserting or in addition to after in lieu of . Not later than 3 years after the date of enactment of this Act, the Secretary of Education shall— submit to the Committee on Education and Labor of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report on the impact of eligible programs described in section 481(b)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1088(b)(2) ), as amended by this Act, based on the most recent data collected under subparagraph
(F)of such section; and make the report described in paragraph
(1)publicly available on the website of the Department of Education.
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Sec. 4601
Definition of eligible program
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