Sec. 103. For-Profit Education Oversight Coordination Committee
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Part B of title I (20 U.S.C. 1011 et seq.), as amended by section 102, is further amended by adding at the end the following: In this section: The term executive officer , with respect to a for-profit institution 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, such as sales, administration, or finance; or any other officer or person who performs a policy-making function for such corporation.
The term Federal education assistance funds has the meaning given the term in section 102(b)(2)(B). The term for-profit institution — means a for-profit institution of higher education as defined in section 102(b)(2); and includes a former for-profit institution of higher education that has been approved for conversion under section 124 but is still in the transition period required under section 124(c). The term private education loan — means a loan provided by a private educational lender (as defined in section 140(a) of the Truth in Lending Act (15 U.S.C. 1650(a))) that— is not made, insured, or guaranteed under title IV; is issued expressly for postsecondary educational expenses to a borrower, regardless of whether the loan is provided through the educational institution that the subject student attends or directly to the borrower from the private educational lender; and is not made, insured, or guaranteed under title VII or title VIII of the Public Health Service Act (42 U.S.C. 292 et seq. and 296 et seq.); and does not include an extension of credit under an open end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling.
The term recruiting and marketing activities means the recruiting and marketing activities described in section 126(d)(2). 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 in the executive branch a committee to be known as the For-Profit Education Oversight Coordination Committee (referred to in this section as the Committee ) and to be composed of the head (or the designee of such head) of each of the following Federal entities: 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. The enforcement unit of the Performance-Based Organization established under section 141(g). At the discretion of the Chairperson of the Committee, any other relevant Federal agency or department. The Committee shall have the following purposes: Coordinate Federal oversight of for-profit institutions to— improve enforcement of applicable Federal laws and regulations; increase accountability of for-profit institutions 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 for-profit institutions. Encourage information sharing among agencies related to Federal investigations, audits, program reviews, inquiries, complaints, financial statements, and other information relevant to the oversight of for-profit institutions. Develop binding memoranda of understanding that the Federal entities represented on the committee will use regarding the sharing of information to exercise the oversight described in this section.
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 for-profit institutions. Develop best practices and consistency among Federal and State agencies in the dissemination of consumer information regarding for-profit institutions to ensure that students, parents, and other stakeholders have easy access to such information. For any designee described in paragraph (1), the head of the member entity shall appoint a high-level official who exercises significant decision-making authority for the oversight or investigatory activities and responsibilities related to for-profit institutions of the respective member entity.
The Secretary of Education or the designee of such Secretary shall serve as the Chairperson of the Committee. The head of each entity described in paragraph
(1)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 purposes described in subsection (b)(2). 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 purposes described in subsection (b)(2). The Chairperson shall appoint a full-time executive director to support the Committee and may appoint and fix the pay of additional staff as the Chairperson considers appropriate. The Committee shall submit a report each year to the authorizing committees and any other committee of Congress that the Committee determines appropriate. The report described in paragraph
(1)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 subsection (b)(2)(F). The report shall include— an accounting of any action (as defined in subparagraph (C)) taken by the Federal Government, any member entity of the Committee, or a State— to enforce Federal or State laws and regulations applicable to for-profit institutions; to hold for-profit institutions accountable to students and taxpayers; and to promote quality education programs; a summary of complaints against each for-profit institution received by any member entity of the Committee; the data described in subparagraph
(B)and any other data relevant to for-profit institutions 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 for-profit institutions to students and taxpayers; and ensure the promotion of quality education programs. The report shall include data on all for-profit institutions, including the following: The following data, in the aggregate for all for-profit institutions and disaggregated for each individual for-profit institution: The total amount of Federal education assistance funds that for-profit institutions received for the previous academic year, and the percentage of the total amount of Federal education assistance funds provided to institutions of higher education (as defined in section 102) for such previous academic year that reflects such total amount of Federal education assistance funds provided to for-profit institutions for such previous academic year. The total amount of Federal education assistance funds that for-profit institutions received for the previous academic year, disaggregated by whether the funds were provided— in the form of a loan under title IV; in the form of a grant under such title; under chapter 33 of title 38, United States Code; for tuition and expenses under section 2007 of title 10, United States Code; under section 1784a of title 10, United States Code; and in a manner not described in subitems
(AA)through (EE). The percentage of the total amount of Federal education assistance funds provided to institutions of higher education (as defined in section 102) for such previous academic year for each of the programs described in subitems
(AA)through
(EE)of item
(bb)that reflects such total amount of Federal education assistance funds provided to for-profit institutions for such previous academic year for each of such programs. Expenses by classification, including separate classifications for— pre-enrollment recruiting and marketing activities; student instruction; and student support services. Net income and other changes in equity. Executive compensation for the 10 highest-paid for-profit institution executives. The average retention and graduation rates for students pursuing a certificate or a degree at for-profit institutions. The average cohort default rate (as defined in section 435(m)). With respect to all careers requiring the passage of a licensing examination, and disaggregated by each such career— the average passage rate of individuals who attended a for-profit institution taking such examination to pursue such a career; the average passage rate of all individuals taking such exam to pursue such a career; and the percentage of all individuals taking such exam who attended a for-profit institution. Information regarding the use of private education loans at for-profit institutions 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. The financial composite scores, in accordance with section 498, for each for-profit institution, the name and dollar amount of any letters of credit required under subpart L of part 668 of title 34, Code of Federal Regulations (or any successor regulation), and the name of each institution placed under the heightened cash monitoring payment method, as established under section 668.162(d) of title 34, Code of Federal Regulations (or any successor regulation). The report shall include data on for-profit institutions that are publicly traded corporations, consisting of information on— any pre-tax profit of such for-profit institutions— reported as a total amount and as the average percentage of revenue for all such for-profit institutions; and reported as a total amount and as the average percentage of revenue for each such for-profit institution; spending on pre-enrollment recruiting and marketing activities, student instruction, and student support services, and for each of the 3 categories separately reported— as a total amount and the average percentage of revenue for all such for-profit institutions; and for each such for-profit institution; total compensation packages of the executive officers of each such for-profit institution; a list of institutional loan programs offered by each such for-profit institution that includes information on the default and interest rates of such programs; and the data described in subclauses
(II)and (III). The report shall include data on for-profit institutions that are corporations, disaggregated by corporate or parent entity, brand name, and campus, consisting of— the total cost of attendance for each program at each such for-profit institution; total enrollment, disaggregated by— individuals enrolled in programs taken exclusively online; individuals enrolled in programs that are exclusively in person; and individuals enrolled in programs that are a mix of online and in person; the retention and graduation rates for students pursuing a degree at such for-profit institutions, including the number of students who enroll each year and withdraw in less than one year; the percentage of students enrolled in such for-profit institutions 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 average cohort default rate, as defined in section 435(m), for such for-profit institutions, and an annual list of cohort default rates (as so defined) for all for-profit institutions; the median educational debt incurred by students who complete a program at such a for-profit institution of higher education; the median educational debt incurred by students who start but do not complete a program at such a for-profit institution of higher education; the job placement rate for students who complete a program at such a for-profit 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 for-profit institution and passed such an examination; and the number of complaints from students enrolled in such for-profit institutions that have been submitted to any member entity of the Committee. To the extent practicable, the report shall provide information on the data described in subclause
(II)for individuals who pay for the costs of attending a for-profit institution of higher education that is a corporation by using Federal education assistance provided under— chapter 33 of title 38, United States Code; section 2007 of title 10, United States Code; and section 1784a of title 10, United States Code. The report shall provide information on the revenue of such for-profit institutions that is derived from the Federal education assistance described in item (aa). The report shall provide information comparing, in the aggregate and disaggregated by State, each of the data elements described in clause
(ii)for for-profit institutions that are publicly traded corporations, for-profit institutions that are not owned or operated by a publicly traded company, nonprofit institutions, and public institutions. The report shall, for each for-profit institution of higher education that is not a publicly traded corporation, report the name of any individual, partnership, or corporation that holds an ownership interest of 5 percent or greater of the for-profit institution of higher education. For the purposes of subparagraph (A)(i), the term any action shall include— a complaint filed by a Federal or State agency in a local, State, Federal, or Tribal court; an 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; or a negative or adverse action taken by an accrediting agency or association recognized by the Secretary pursuant to section 496 with respect to an approved institution or program. Each academic year, the Committee shall publish a list to be known as the For-Profit College Warning List for Parents and Students to be comprised of for-profit institutions— 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 with a Federal or State entity resulting in a monetary payment; that have had any higher education program limited, withdrawn, or suspended by an external entity (such as a Federal or State entity or an accrediting agency or association recognized by the Secretary pursuant to section 496); and 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 paragraph (1)(D), 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 entity in a Federal, State, local, or Tribal court. Any administrative proceeding by a Federal or State entity involving noncompliance of any applicable law or regulation. Any other review, audit, or administrative process by any Federal or State entity that results in a penalty, suspension, or termination from any Federal or State program. Data or information submitted by a for-profit institution to any accrediting agency or association recognized by the Secretary pursuant to section 496 or the findings or adverse actions of any such accrediting agency or association. Information submitted by a for-profit institution to any member entity of the Committee. Any other evidence that the Committee determines relevant in making such determination. Not later than July 1 of each fiscal year, the Committee shall publish the list under paragraph
(1)prominently and in a manner that is easily accessible to parents, students, and other stakeholders, in accordance with any best practices developed under subsection (b)(2)(F). .
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