Sec. 4731. Strengthening institutional quality
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Part H of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1099a et seq.) is amended by adding at the end the following: The Secretary shall provide grants and technical assistance to covered progress period institutions in accordance with this section. Grants and assistance provided under this section shall be used to improve student achievement (as described in section 496(a)(5)(A)) at covered progress period institutions. Grants and assistance may be provided under this section for a period of not less than one year and not more than three years.
To continue to receive support under this section after the first year in which such support is provided, an institution must show progress, as determined by the Secretary, toward meeting the standards for student achievement established by the relevant accrediting agency or association pursuant to section 496(a)(5)(A). In determining the progress of an institution under subparagraph (A), the Secretary may take into consideration extenuating circumstances that may have contributed to the poor performance of the institution in the first year of the review period.
An institution that does not achieve an adjusted cohort default rate of less than 10 percent after receiving support under this section for three consecutive years shall be ineligible to receive further support under this section. An institution shall be ineligible to receive further support under this section if, while the institution was receiving such support, the total enrollment of low-income students (as such term is defined in section 419N(b)(7)) at the institution decreased by 10 percent or more.
In this section, the term covered progress period institution means— a public institution of higher education that is determined to be in progress period status; a part B institution (as defined in section 322) that is determined to be in progress period status; or a private, nonprofit institution of higher education— that is determined to be in progress period status; and at which not less than 45 percent of the total student enrollment consists of low-income students (as such term is defined in section 419N(b)(7)).
There are authorized to be appropriated, and there are appropriated, such funds as the Secretary, using the formula described in paragraph (2), determines necessary to meet the needs of all eligible institutions under this subsection, except that such funds shall not exceed $100,000,000 for fiscal year 2021 and each succeeding fiscal year. Such funds shall be available until expended. Not later than 1 year after the date of the enactment of this section, the Secretary shall establish through negotiated rulemaking a formula to determine the— proportional amount of institutional need under this section; and total amount of institutional need under this section.
Such formula must at minimum take into consideration the severity of the problem, size of the institution, institutional resources, historical underfunding, and the number of low-income students (as such term is defined in section 419N(b)(7)) being served. For purposes of each survey conducted under the Integrated Postsecondary Education Data System after the date of enactment of the College Affordability Act and this Act, the Secretary shall define the following terms: Marketing.
Recruitment. Advertising. Lobbying. Student services. In defining the term student services under paragraph (1)(E), the Secretary shall ensure that such term does not include marketing, recruitment, advertising, or lobbying. In a case in which the Secretary determines with respect to an institution of higher education participating in any program under this title that, for any of the 3 most recent institutional fiscal years after the promulgation of regulations by the Secretary defining the terms in subsection (a)(1) for which the institution submits to the Secretary disclosures on the expenditures of the institution on instruction for purposes of section 132(i)(1)(AA), the amount expended by such institution on instruction for such fiscal year is less than an amount equal to 1/3 of institution’s revenues derived from tuition and fees— for any institutional fiscal year after such determination is made, the sum of the amount expended by the institution on marketing, recruitment, advertising, and lobbying may not exceed the amount of the institution’s revenues derived from sources other than Federal education assistance funds; and in a case in which the institution fails to meet the requirements of paragraph
(1)for 2 consecutive institutional fiscal years, the institution shall be ineligible to participate in the programs authorized by this title for a period of not less than two institutional fiscal years. The Secretary shall, on an annual basis, publicly disclose on the Department’s website, information with respect to any institution of higher education that is subject to the requirements of subsection (b)(1), including— the quotient of the amount that the institution expends on instruction divided by the institution’s revenues derived from tuition and fees, expressed as a percentage; the sum of such institution’s expenditures on advertising, recruiting, marketing, and lobbying; the amount of such institution’s revenues received from sources outside of Federal education assistance funds; and the difference between paragraphs
(2)and (3). The Secretary shall make available, on a publicly accessible website of the Department of Education, a list of institutions of higher education that— have failed to meet the requirements for accreditation by an agency or association recognized by the Secretary pursuant to section 496(a); or have failed to meet the requirements for participation in programs under this title. To be eligible to participate in programs under this title, an institution of higher education shall, using the template developed by the Secretary under subsection (c), disclose the accreditation status of the institution on a publicly accessible website of the institution. Any failure of the institution to meet an accreditation standard shall be specifically identified by the institution as part of the disclosure under this paragraph. Any change in the accreditation status of an institution of higher education shall be disclosed in accordance with paragraph
(1)not later than 30 days after such change occurs. The Secretary shall develop a template that shall be used by institutions of higher education to make the disclosures required under subsection (b). The Secretary shall ensure that the template— clearly identifies the information to be disclosed; and is in a format that is easily understood by consumers. .
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Sec. 4731
Strengthening institutional quality
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