Sec. 9. Reducing financial aid penalties from satisfactory academic progress determinations
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Section 484(c) of the Higher Education Act of 1965 ( 20 U.S.C. 1091(c) ) is amended to read as follows: In this subsection: The term appeal means a process by which a student who is not meeting the institution’s satisfactory academic progress standards petitions the institution for reconsideration of the student’s eligibility for assistance under this title. The term financial aid probation means a status assigned by an institution to a student who fails to make satisfactory academic progress and who has appealed and has had eligibility for aid reinstated.
The term financial aid warning means a status assigned to a student who fails to make satisfactory academic progress at the end of the semester or equivalent period in which the student first fails to make such progress. The term payment period means the applicable payment period described in section 668.4 of title 34, Code of Federal Regulations, or any successor regulation. An institution shall establish a reasonable satisfactory academic progress policy for determining whether an otherwise eligible student is making satisfactory academic progress in the student’s educational program and may receive assistance under this title.
The Secretary shall consider the institution’s policy to be reasonable if— the policy is at least as strict as the policy the institution applies to a student who is not receiving assistance under this title; the policy provides for consistent application of standards to all students, including full-time, part-time, undergraduate, and graduate students, and all educational programs established by the institution; the policy specifies the grade point average that a student must achieve at each evaluation, or if a grade point average is not an appropriate qualitative measure, a comparable assessment measured against a norm; and if a student is enrolled in an educational program of more than 2 academic years, the policy specifies that at the end of the second academic year, the student must have a grade point average of at least a C or its equivalent, or have academic standing consistent with the institution’s requirements for graduation; the policy provides for measurement of the student’s progress at each evaluation; the policy describes— how a student’s grade point average and the pace at which the student progresses toward completion are affected by course incompletes, withdrawals, or repetitions, or transfers of credit from other institutions, including that credit hours from another institution that are accepted toward the student’s educational program are counted as both attempted and completed hours; and how after a student reenrolls after the student’s satisfactory academic progress was reset pursuant to paragraph (3)(B), the student may have any credits that were earned before the student was determined not to be making satisfactory academic progress counted for purposes of determining progress when the student reenrolls, but any attempted hours that were not earned by the student (including incompletes, withdrawn courses, and failed courses) before the student was determined not to be making satisfactory academic progress will not negatively impact the determination of whether the student made satisfactory academic progress after such reset; the policy provides that, except as provided in subparagraph
(G)with respect to a student placed on financial aid warning or financial aid probation and paragraph (3), a student is no longer eligible to receive assistance under this title if the student has not achieved the required grade point average or who is not making progress toward completion in the student’s educational program— at the time of each evaluation with respect to a student who is in an educational program of 2 academic years or less in length; or at the end of the second academic year with respect to a student who is in an educational program of more than 2 academic years in length; the policy describes when students will be placed on financial aid warning or financial aid probation, in accordance with paragraph (4), and provides that— a student on financial aid warning— may receive assistance under this title for one payment period despite a determination that the student is not making satisfactory academic progress; and may be assigned such status without an appeal or other action by the student; and a student on financial aid probation may receive assistance under this title for one payment period and the institution may require the student to fulfill specific terms and conditions, such as taking a reduced course load or enrolling in specific courses; and at the end of such one payment period, the student is required to meet the institution’s satisfactory academic progress standards, or meet the requirements of the academic plan developed by the institution and the student, in order to qualify for continued assistance under this title; if the institution permits a student to appeal a determination by the institution that the student is not making satisfactory academic progress, the policy describes— how the student may reestablish the student’s eligibility to receive assistance under this title; the basis on which the student may file an appeal, including because of the death of a relative, an injury or illness of the student, or another special circumstance; and information the student is required to submit regarding why the student failed to make satisfactory academic progress, and what has changed in the student’s situation that will allow the student to demonstrate satisfactory academic progress at the next evaluation; if the institution does not permit a student to appeal a determination by the institution that the student is not making satisfactory academic progress, the policy describes how the student may reestablish the student’s eligibility to receive assistance under this title; the policy provides for notification to students of the results of an evaluation that impacts the student’s eligibility for assistance under this title; and the policy does not impose satisfactory progress limitations on need-based institutional aid that are more stringent than the standard applied under this subsection without demonstrating to the Secretary the effectiveness of such limitations on improving student persistence in, and completion of, postsecondary study. Whenever a student fails to meet the eligibility requirements of subsection (a)(2) as a result of the application of this subsection and, subsequent to that failure, the student has academic standing for any grading period consistent with the requirements for staying on track to graduate within 150 percent of the published length of the educational program, as determined by the institution, the student shall again be eligible under subsection (a)(2) for a grant, loan, or work assistance under this title, as long as the student maintains satisfactory academic progress under paragraph
(2)beginning on and after the date that the student regains eligibility. If a student has not been enrolled in any institution of higher education for the immediately preceding 2 years, any previous failure to meet the eligibility requirements of subsection (a)(2) shall not be used in any determination of eligibility of such student under such subsection. Such student shall, on the date of enrollment subsequent to such 2-year period, have the student's eligibility for a grant, loan, or work assistance under this title reset and be deemed as meeting the requirements described in paragraph (2). Beginning on and after such date, the student's satisfactory academic progress shall be determined in accordance with paragraph (2)(E)(ii). A student shall be eligible for a reset of eligibility pursuant to this subparagraph not more than 2 times. The Secretary shall— send, to each student who failed to meet the eligibility requirements of subsection (a)(2) and who has not regained eligibility for a grant, loan, or work assistance under subparagraph (A), a notice, two years after such failure, that includes— a notification that, if the student has not been enrolled in any institution of higher education for the preceding two years and has not received two resets of eligibility under subparagraph (B), the student may use grant, loan, or work assistance under this title for enrollment at any eligible institution, including an institution other than the institution in which the student was previously enrolled; a notification that, if the student has remained enrolled, or resumed enrollment, at an institution of higher education, the student may be eligible for a grant, loan, or work assistance under this title subject to the requirements of subparagraph (A); information on how many semesters of eligibility for a grant, loan, or work assistance under this title to which the student still has access; and a notification that the student should ask any prospective eligible institution how many of the student’s previously completed credits the student would be able to transfer; and submit an annual report to Congress on the outcomes of students who have received a reset of eligibility pursuant to this paragraph, including— the number of students who reenroll in an eligible institution after such reset, disaggregated by race or ethnicity, sex, age, socioeconomic status, and disability status; the 250 eligible institutions with the highest numbers of enrolled students receiving grant, loan, or work assistance under this title after such a reset; the 250 eligible institutions with the highest share of enrolled students receiving grant, loan, or work assistance under this title after such a reset; and the average completion rate and time to completion for students who reenroll in an eligible institution after such reset, disaggregated by institution. An institution that determines that a student is not making satisfactory academic progress under its policy may disburse funds provided through student financial assistance programs under this title (including work-study programs under subtitle C) to the student in accordance with subparagraphs (B), (C), and (D). For the payment period following the payment period in which a student did not make satisfactory academic progress, the institution shall place the student on financial aid warning and disburse funds under this title to the student. For the payment period following a payment period during which a student was on financial aid warning, the institution may place the student on financial aid probation, and disburse funds under this title to the student if— the institution evaluates the student’s progress and determines that student did not make satisfactory academic progress during the payment period the student was on financial aid warning; the student appeals the determination; and the institution determines that the student should be able to meet the institution’s satisfactory academic progress standards by the end of the subsequent payment period; or the institution develops an academic plan for the student that, if followed, will ensure that the student is able to meet the institution’s satisfactory academic progress standards by a specific point in time. A student on financial aid probation for a payment period may not receive funds under this title for the subsequent payment period unless the student makes satisfactory academic progress or the institution determines that the student met the requirements specified by the institution in the academic plan for the student developed under subparagraph (C)(iii)(II). Subject to clause (ii), for the purpose of determining whether presently enrolled students are maintaining satisfactory progress, each institution of higher education that enrolls students who receive any grant, loan, or work assistance under this title shall review the progress of such students at the end of each payment period. For each institution described in clause
(i)that has payment periods that are shorter than on the semester system basis (such as on a quarterly or trimester system basis or by clock hour program or non-term program), such institution shall review the progress of presently enrolled students at the end of each semester or equivalent period of 12 to 18 weeks. At the end of each payment period (or, in the case of an institution described in clause (ii), at the end of each semester or equivalent period), each institution shall send a financial aid warning to presently enrolled students that do not meet the grade point average requirement described in paragraph (2), or its equivalent or academic standing consistent with the requirements for graduation, as determined by the institution, that informs the students of their risk of being determined to not be maintaining satisfactory progress and therefore losing eligibility for grant, loan, or work assistance under this title and provides information on— the specific criteria of the institution’s academic requirements that the student is not meeting and the specific improvements needed to meet the requirements; and how to meet with the student’s academic advisor to get the academic support the student needs. Each institution of higher education that enrolls students who receive any grant, loan, or work assistance under this title shall detail the institution’s requirements regarding students maintaining satisfactory academic progress— to such students before the students begin classes at the institution through a detailed communication that may be separate from a financial aid offer; and on the financial aid webpage of the website of the institution. The Secretary— shall conduct consumer testing to develop exemplary practices and templates— to support institutions of higher education in carrying out paragraph (5); and which shall be available as resources for institutions of higher education; and shall not require the use of such practices and templates by institutions of higher education. .
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Sec. 9
Reducing financial aid penalties from satisfactory academic progress determinations
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