Sec. 402. Taxpayer and consumer protection on student loans

1,038 words·~5 min read·/bill/118/s/1972/is/section-402

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 487(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(a) ) is amended by adding at the end the following: The institution certifies that no funds available under this title may be used by an undergraduate student for enrollment in an educational program offered by the institution that is described in subparagraph (B). An educational program at an institution is described in this subparagraph if the program is a program— in the case of a program that awards an associate's degree or a lesser degree or credential, in which the median earnings of students 6 years after the date of entry into the program who are no longer enrolled in the program and are working is, for not less than 2 of the 3 years preceding the date of the determination, less than the median earnings of a working adult who is aged 25 to 34 with only a high school diploma or its recognized equivalent, as determined under subparagraph

(C)and in accordance with subparagraph (D); or in the case of a program that awards a bachelor's degree, in which the median earnings of students 10 years after the date of entry into the program who are no longer enrolled in the program and are working is, for not less than 2 of the 3 years preceding the date of the determination, less than the median earnings of a working adult who is aged 25 to 34 with only a high school diploma or its recognized equivalent, as determined under subparagraph

(C)and in accordance with subparagraph (D). The median earnings of a working adult who is aged 25 to 34 with only a high school diploma or its recognized equivalent shall be based on data from the Census Bureau— for the State in which the institution is located; or if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the entire United States. For any year for which the programmatic cohort is fewer than 30 individuals, the Secretary shall— first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; second, aggregate additional cohort years of programmatic data for degrees or certificates of equivalent length in order to achieve a cohort of at least 30 individuals; and if such data cannot be aggregated, use an institution-based undergraduate-level measure, in lieu of a programmatic measure. An educational program shall not lose eligibility under subparagraph

(A)unless the institution has had the opportunity to appeal the programmatic median earnings of students working and not enrolled determination. During such appeal, the Secretary may permit the educational program to continue to participate in a program under this title. If an educational program continues to participate in a program under this title, and the institution's appeal of the loss of eligibility is unsuccessful, the institution shall pay to the Secretary an amount equal to the amount of interest, and any related payments made by the Secretary (or which the Secretary is obligated to make) with respect to loans made under this title to students attending, or planning to attend, that educational program during the pendency of such appeal. The institution certifies that no funds available under this title may be used by a graduate student for enrollment in an educational program offered by the institution that is described in subparagraph (B). An educational program at an institution is described in this subparagraph if the program is a program— in the case of a program that awards a master's degree or a lesser degree or credential, in which the median earnings of students 6 years after the date of entry into the program who are no longer enrolled in the program and are working is, for not less than 2 of the 3 years preceding the date of the determination, less than the median earnings of a working adult who is aged 25 to 34 with only a bachelor’s degree, as determined under subparagraph

(C)and in accordance with subparagraph (D); or in the case of program that awards a professional degree or doctoral degree, in which the median earnings of students 10 years after the date of entry into the program who are no longer enrolled in the program and are working is, for not less than 2 of the 3 years preceding the date of the determination, less than the median earnings of a working adult who is aged 25 to 34 with only a bachelor’s degree, as determined under subparagraph

(C)and in accordance with subparagraph (D). The median earnings of a working adult who is aged 25 to 34 with only a bachelor's degree shall be based on data from the Census Bureau— for the State in which the institution is located; or if fewer than 50 percent of the students enrolled in the institution reside in the State where the institution is located, for the entire United States. For any year for which the programmatic cohort is fewer than 30 individuals, the Secretary shall— first, aggregate additional years of programmatic data in order to achieve a cohort of at least 30 individuals; second, aggregate additional cohort years of programmatic data for degrees or certificates of equivalent length in order to achieve a cohort of at least 30 individuals; and if such data cannot be aggregated, use an institution-based graduate-level measure, in lieu of a programmatic measure. An educational program shall not lose eligibility under subparagraph

Connectionstraces to 1

Traces to 1 document

U.S. Code

Program participation agreements
§ 1094

Citation graph

cites case law

Sec. 402

Taxpayer and consumer protection on student loans

U.S.C.§ 1094

Cites 1Cited by 0 across 0 sources