Sec. 404. Interplay with the Higher Education Act of 1965

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Section 480 of the Higher Education Act of 1965 ( 20 U.S.C. 1087vv ), as amended by section 702 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260 ; 134 Stat. 3191), is amended— in subsection (e)— in paragraph (2), by striking and after the semicolon; in paragraph (3), by striking the period and inserting ; and ; and by adding at the end the following: any amount provided to the applicant, or on whose behalf funds are disbursed, under an income share agreement, as defined in section 2 of the ISA Student Protection Act of 2023 . ; and in subsection (f)(1), by inserting amounts provided to an individual, or on whose behalf the funds are disbursed, under an income share agreement, as defined in section 2 of the after ISA Student Protection Act of 2023 , income producing property, .

The amendments made by paragraph

(1)shall take effect as if included in section 702 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260 ; 134 Stat. 3191) and in accordance with section 701(b) of such Act. Section 487(d)(1)(D) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(d)(1)(D) ) is amended— in clause (ii), by striking and after the semicolon; in clause (iii), by inserting and after the semicolon; and by adding at the end the following: in the case of educational income share agreements (as such term is defined in section 2 of the ISA Student Protection Act of 2023 ) made by a proprietary institution of higher education, only the amount of ISA payments (as defined in such section) received during the applicable institutional fiscal year, to the extent the amount of such payments on the educational income share agreement does not exceed the income share amount financed under such educational income share agreement; . Section 151 of the Higher Education Act of 1965 ( 20 U.S.C. 1019 ) is amended— by redesignating paragraphs (3), (4), (5), and

(6)through

(9)as paragraphs (4), (5), (6), and

(9)through (12), respectively; by inserting after paragraph

(2)the following: The term educational ISA has the meaning given the term in section 2 of the ISA Student Protection Act of 2023 . ; in paragraph (6), as redesignated by paragraph (1)— in subparagraph (A)(ii), by inserting or educational ISAs after loans ; in subparagraph (B), by striking and after the semicolon; in subparagraph (C), by striking the period at the end and inserting ; and ; and by adding at the end of the following: notwithstanding subparagraphs

(A)and (B), does not include any ISA provider with respect to any educational ISA secured, made, or extended by such ISA provider. ; by inserting after paragraph (6), as redesignated by subparagraph (A), the following: The term ISA provider has the meaning given the term in section 2 of the ISA Student Protection Act of 2023 . The term ISA recipient has the meaning given the term in section 2 of the ISA Student Protection Act of 2023 . ; and in paragraph (11)(A), as redesignated by paragraph (1)— in the matter preceding clause (i), by inserting or ISA provider after lender ; in clause (i), by inserting or an ISA provider provides or otherwise issues educational ISAs after loans ; and in clause (ii), by inserting or the educational ISAs of the ISA provider after lender . Section 152 of the Higher Education Act of 1965 ( 20 U.S.C. 1019a ) is amended— in the section heading, by striking and inserting and lenders ; lenders, and ISA providers in subsection (a)— in paragraph (1)— in subparagraph (A)— in clause (i)— in the matter preceding subclause (I), by inserting or educational ISAs after loans ; in subclause (II)— by striking section 151(3)(A) and inserting section 151(4)(A) ; and by striking and at the end; by redesignating subclause

(III)as subclause (IV); and by inserting after subclause

(II)the following: the information required to be disclosed pursuant to section 153(a)(2)(A)(i), for an educational ISA that is offered pursuant to a preferred lender arrangement of the institution or organization to students of the institution or families of such students; and ; and in clause (ii)— in the matter preceding subclause (I)— by striking subparagraph

(C)and inserting subparagraph

(D); and by inserting or educational ISAs after loans ; in subclause (I), by striking and after the semicolon; and by adding at the end the following: in the case of a covered institution, the information described in section 153(c) for each type of educational ISA offered pursuant to a preferred lender arrangement of the institution to students of the institution or the families of such students; and in the case of an institution-affiliated organization of a covered institution, the information in section 303(b)(1) of the ISA Student Protection Act of 2023 , for each type of educational ISA offered pursuant to a preferred lender arrangement of the organization to students of such institution or the families of such students. ; by redesignating subparagraph

(C)as subparagraph (D); and by inserting after subparagraph

(B)the following: A covered institution, or an institution-affiliated organization of such covered institution, that provides information regarding an educational ISA from an ISA provider to a prospective ISA recipient shall— provide the prospective ISA recipient with the information described in section 303(b)(1) of the ISA Student Protection Act of 2023 for such educational ISA; inform the perspective ISA recipient that— the prospective ISA recipient may qualify for loans or other assistance under title IV; and the terms and conditions of the loans made, insured, or guaranteed under title IV may be more favorable than the provisions of educational ISAs; and ensure that information regarding educational ISAs is presented in such a manner as to be distinct from information regarding loans that are made, insured, or guaranteed under title IV. ; by striking paragraph

(2)and inserting the following: A covered institution, or an institution-affiliated organization of such covered institution, that enters into a preferred lender arrangement with a lender regarding private education loans or an ISA provider regarding educational ISAs shall not agree to the lender’s or ISA provider’s use of the name, emblem, mascot, or logo of such institution or organization, or other words, pictures, or symbols readily identified with such institution or organization, in the marketing of private education loans or educational ISAs to students attending such institution in any way that implies that the loan or educational ISA is offered or made by such institution or organization instead of the lender or ISA provider. ; and by adding at the end the following: A covered institution, or an institution-affiliated organization of such covered institution, that enters into a preferred lender arrangement with an ISA provider regarding educational ISAs shall ensure that the name of the ISA provider is displayed in all information and documentation related to such educational ISAs. ; and by adding at the end the following: For each of an ISA provider’s educational ISAs, the ISA provider shall comply with the disclosure requirements of sections 302 and 303 of the ISA Student Protection Act of 2023 . . Section 153 of the Higher Education Act of 1965 ( 20 U.S.C. 1019b ) is amended— in subsection (a)— in paragraph (1)— in subparagraph (A), by striking section 151(3)(A) and inserting section 151(4)(A) ; and by adding at the end the following: By not later than 180 days after the date of enactment of the ISA Student Protection Act of 2023 , the Secretary, in coordination with the Bureau of Consumer Financial Protection, shall determine the minimum information that ISA providers, covered institutions, and institution-affiliated organizations of such covered institutions participating in preferred lender arrangements shall make available regarding educational ISAs. In carrying out clause (i), the Secretary shall— consult with students, the families of such students, representatives of covered institutions (including financial aid administrators, admission officers, and business officers), representatives of institution-affiliated organizations, secondary school guidance counselors, and ISA providers; include, in the minimum information under clause

(i)that is required to be made available, the information required to be disclosed under section 303 of the ISA Student Protection Act of 2023 ; and consider the merits of requiring each covered institution, and each institution-affiliated organization of such covered institution, with a preferred lender arrangement to provide prospective ISA recipients and the families of such ISA recipients the following information for each type of educational ISA offered pursuant to such preferred lender arrangement: The ISA payment calculation method, the income threshold, the ISA maximum number of payments (or a range of the ISA maximum number of payments), the ISA payment window (or a range of the ISA payment windows), and the terms and conditions of the educational ISA for the next award year. In this subclause, the terms income threshold , ISA maximum number of payments , ISA payment calculation method , and ISA payment window have the meanings given the terms in section 2 of the ISA Student Protection Act of 2023 . An itemization of the fees or range of fees required to obtain the educational ISA. Any fees or other penalties based on the ISA recipient’s defaults or late payments. The annual or aggregate maximum financed amounts. The average financed amounts provided by the ISA provider to students who— graduated from such institution in the preceding year with certificates, undergraduate degrees, graduate degrees, and professional degrees, as applicable; and obtained educational ISAs of such type from the ISA provider for the preceding year. The consequences for the ISA recipient for defaulting on an educational ISA. Contact information for the ISA provider. Other information suggested by the persons and entities with whom the Secretary has consulted under subclause (I). ; in paragraph (2)— in subparagraph (A)— in clause (i), by striking section 151(3)(A) and inserting section 151(4)(A), or to prospective ISA recipients and the families of such ISA recipients regarding educational ISAs, ; and in clause (ii), by striking the model disclosure form and inserting a model disclosure form ; in subparagraph (B)— in the matter preceding clause (i)— by striking a model disclosure form and inserting model disclosure forms ; and by striking and preferred lenders and inserting preferred lenders, and ISA providers ; in clause (i), by inserting ISA providers, after servicers, ; and in clause (ii)— by striking format to the form and inserting the following: format to— with respect to education loans, the form ; by striking section 151(3)(A) and inserting section 151(4)(A) ; and by adding at the end the following: with respect to educational ISAs, the form developed by the Bureau of Consumer Financial Protection under section 301(4) of the ISA Student Protection Act of 2023 in order to permit students and the families of students to easily compare educational ISAs; and ; and in subparagraph (C), by striking such model disclosure form and inserting the model disclosure forms described in subparagraph

(B); in subsection (b), by striking section 151(3)(A) each place the term appears and inserting section 151(4)(A) ; by redesignating subsection

(c)as subsection (d); by inserting after subsection

(b)the following: Each ISA provider that has a preferred lender arrangement with respect to educational ISAs with a covered institution, or an institution-affiliated organization of such covered institution, shall annually, by a date determined by the Secretary, provide to such covered institution or such institution-affiliated organization, and to the Secretary, the information the Secretary requires pursuant to subsection (a)(2)(A)(i) for the educational ISAs that the ISA provider plans to offer pursuant to such preferred lender arrangement to students attending such covered institution, or to the families of such students, for the next award year. ; and in subsection (d), as redesignated by paragraph (3)— in paragraph (1)— in subparagraph (A)— in clause (i), by striking section 151(3)(A) and inserting section 151(4)(A) or educational ISA ; and by adding at the end the following: in the case of a covered institution, the information described in subsection (c), for each type of educational ISA offered pursuant to a preferred lender arrangement of the institution to students of the institution or the families of such students; and in the case of an institution-affiliated organization of a covered institution, the information described in section 303(b)(1) of the ISA Student Protection Act of 2023 , for each type of educational ISA offered pursuant to a preferred lender arrangement of the organization to students of such institution or the families of such students. ; and in subparagraph (B)— by inserting or ISA provider after lender ; and by inserting or an educational ISA after loan ; and in paragraph (2)(A)— in the matter preceding clause (i), by inserting or ISA provider after each lender ; in clause (i), by striking clauses

(i)and

(ii)and inserting clauses

(i)through (iii), as applicable ; and in clause (ii)— by inserting or ISA provider after the lender ; and by inserting or educational ISA after loan . Section 155 of the Higher Education Act of 1965 ( 20 U.S.C. 1019d ) is amended— by striking the section heading and inserting the following: ; Self-certification forms for private education loans or educational ISAs. in subsection (a)— in the matter preceding paragraph (1)— by striking the self-certification form and inserting a self-certification form ; by inserting and, in consultation with the Director of the Bureau of Consumer Financial Protection, a self-certification form for educational ISAs that shall be used to satisfy the requirements of section 303(f) of the after ISA Student Protection Act of 2023 Act ; and by striking Such form and inserting Each form ; and in paragraph (3)— in subparagraph (A), by inserting or educational ISA, as applicable after loan ; and in subparagraph (C), by inserting or educational ISA, as applicable after loan ; and in subsection (b), by striking the form and inserting a form . Section 154 of the Higher Education Act of 1965 ( 20 U.S.C. 1019c ) is amended— in subsection (a)— by inserting for education loans after the model disclosure form ; and by striking section 151(3)(A) and inserting section 151(4)(A) ; and in subsection (b)(2), by inserting for education loans after model disclosure form .

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