Sec. 30042. Campus-based aid programs
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Part A of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1070c et seq. ) is amended by adding at the end the following: For award year 2028–2029 and each succeeding award year, from reserved funds remitted to the Secretary in accordance with section 454(d) and additional funds made available under section 420V, as necessary, the Secretary shall award PROMISE grants to eligible institutions to carry out the activities described in section 420U(c). PROMISE grants awarded under this subpart shall be awarded on a noncompetitive basis to each eligible institution that submits a satisfactory application under section 420T for a 6-year period in an amount that is determined in accordance with section 420U.
To be eligible for a PROMISE grant under this subpart, an institution shall— be an institution of higher education under section 102, except that an institution described in section 102(a)(1)(C) shall not be an eligible institution under this subpart; and meet the maximum total price guarantee requirements under subsection (c). An eligible institution seeking a PROMISE grant under this subpart (including a renewal of such a grant) shall submit to the Secretary an application, at such time as the Secretary may require, containing the information required under this subsection.
Such application shall— demonstrate that the institution— meets the maximum total price guarantee requirements under subsection (c); and will continue to meet the maximum total price guarantee requirements for each award year during the grant period with respect to students first enrolling at the institution for each such award year; describe how grant funds awarded under this subpart will be used by the institution to carry out activities related to— increasing postsecondary affordability, including— the expansion and continuation of the maximum total price guarantee requirements under subsection (c); and any other activities to be carried out by the institution to increase postsecondary affordability and minimize the maximum total price for completion paid by students receiving need-based student aid; increasing postsecondary access, which may include— the activities described in section 485E of this Act; and any other activities to be carried out by the institution to increase postsecondary access and expand opportunities for low- and middle-income students; and increasing postsecondary student success, which may include— activities to improve completion rates and reduce time to credential; activities to align programs of study with the needs of employers, including with respect to in-demand industry sectors or occupations (as defined in section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 )); and any other activities to be carried out by the institution to increase value-added earnings and postsecondary student success; describe— how the institution will evaluate the effectiveness of the institution’s use of grant funds awarded under this subpart; and how the institution will collect and disseminate information on promising practices developed with the use of such grant funds; and in the case of an institution that has previously received a grant under this subpart, contain the evaluation required under paragraph
(3)for each previous grant. As a condition of eligibility for a PROMISE grant under this subpart, an institution shall— for each award year beginning after the date of enactment of this subpart, not later than 1 year before the start of each such award year (except that, for the first award year beginning after such date of enactment, the institution shall meet these requirements as soon as practicable after such date of enactment), determine the maximum total price for completion, in accordance with subsection (e), for each program of study at the institution applicable to students in each income category and student aid index category (as determined by the Secretary) and publish such information on the institution’s website and in the institution’s catalog, marketing materials, or other official publications; for the award year for which the institution is applying for a PROMISE grant, and at least 1 award year preceding such award year, provide to each student who first enrolls, or plans to enroll, in the institution during the award year and who receives Federal financial aid under this title a maximum total price guarantee, in accordance with this section, for the minimum guarantee period applicable to the student; and provide to the Secretary an assurance that the institution will continue to meet each of the maximum total price guarantee requirements under this subsection for students who first enroll, or plan to enroll, in the institution during each award year included in the grant period. The minimum period during which a student shall be provided a guarantee under subsection
(c)with respect to the maximum total price for completion of a program of study at an institution shall be the average, for the 3 most recent award years for which data are available, of the median time to credential of students who completed any undergraduate program of study at the institution during each such award year, except that such minimum guarantee period shall not be less than the program length of the program of study in which the student is enrolled. An institution shall not be required to provide a maximum total price guarantee under subsection
(c)to a student after the conclusion of the 6-year period beginning on the first day on which the student enrolled at such institution. For the purposes of subsection (c), an institution shall determine, prior to the first award year in which a student enrolls at the institution, the maximum total price that may be charged to the student for completion of a program of study at the institution for the minimum guarantee period applicable to a student, before application of any Federal Pell Grants or other Federal financial aid under this title. Such a maximum total price for completion shall be determined for students in each income category and student aid index category (as determined by the Secretary). In determining the maximum total price for completion to be charged to each such category of students, the institution may consider the ability of a category of students to pay tuition and fees, but may not include in such consideration any Federal Pell Grants or other Federal financial aid awards that may be available to such category of students under this title. In the event that a student receives more than 1 maximum total price guarantee because the student is included in more than 1 category of students for which the institution determines a maximum total price guarantee amount for the purposes of subsection (c), the maximum total price guarantee applicable to such student for the purposes of this section shall be equal to the lowest such guarantee amount. Subject to subsection
(b)and section 420V(b), the amount of a PROMISE grant for an eligible institution for each year of the grant period shall be calculated by the Secretary annually and shall be equal to the amount determined by multiplying— the lesser of— the difference determined by subtracting one from the quotient of— the average, for the 3 most recent award years for which data are available, of the median value-added earnings for each such award year of students who completed any program of study of the institution; divided by the average, for the 3 most recent award years for which data are available, of the maximum total price for completion determined under section 420T(e) applicable for each such award year to students enrolled in the institution in any program of study who received financial aid under this title; or the number two; the average, for the 3 most recent award years for which data are available, of the total dollar amount of Federal Pell Grants awarded to students enrolled in the institution in each such award year; and the average, for the 3 most recent award years for which data are available, of the percentage of low-income students who received Federal financial assistance under this title who were enrolled in the institution in each such award year who— completed a program of study at the institution within 100 percent of the program length of such program; or only in the case of a two-year institution or a less than two-year institution— transfer to a four-year institution; and within 4 years after first enrolling at the two-year or less than two-year institution, complete a program of study at the four-year institution for which a bachelor’s degree (or substantially similar credential) is awarded. In this section, the term low-income , when used with respect to a student, means that the student’s family income does not exceed the maximum income in the lowest income category (as determined by the Secretary). Notwithstanding subsection (a), the maximum amount an eligible institution may receive annually for a grant under this subpart shall be the amount equal to— the average, for the 3 most recent award years, of the number of students enrolled in the institution in an award year who receive Federal financial aid under this title; multiplied by $5,000. A PROMISE grant awarded under this subpart shall be used by an eligible institution to— carry out activities included in the institution’s application for such grant related to postsecondary affordability, access, and student success; evaluate the effectiveness of the activities carried out with such grant in accordance with section 420T(b)(3)(A); and collect and disseminate promising practices related to the activities carried out with such grant, in accordance with section 420T(b)(3)(B). To carry out this subpart, there shall be available to the Secretary any funds remitted to the Secretary as reimbursements in accordance with section 454(d) for any award year. Beginning award year 2028–2029, if the amounts made available to the Secretary under paragraph
(1)to carry out this subpart in any award year are insufficient to fully fund the PROMISE grants awarded under this subpart in such award year, there shall be available to the Secretary, in addition to such amounts, any funds returned to the Secretary under section 484B in the previous award year. If the amounts made available to the Secretary under subsection
(a)to carry out this subpart for an award year are not sufficient to provide grants to each eligible institution in the amount determined under section 420U for such award year, the Secretary shall reduce each such grant amount by the applicable percentage described in paragraph (2). The applicable percentage described in this paragraph is the percentage determined by dividing— the amounts made available under subsection
(a)for the award year described in paragraph (1); by the total amount that would be necessary to provide grants to all eligible institutions in the amounts determined under section 420U for such award year. In this title: With respect to a student who received Federal financial aid under this title and who completed a program of study offered by an institution of higher education, the term value-added earnings means— the annual earnings of such student measured during the applicable earnings measurement period for such program (as determined under subparagraph (C)); minus in the case of a student who completed a program of study that awards— an undergraduate credential, 150 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ) for such year; or a graduate credential, 300 percent of the poverty line applicable to a single individual as determined under section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ) for such year. Except as provided in clause (ii), the Secretary shall use the geographic location of the institution at which a student completed a program of study to adjust the value-added earnings of the student calculated under subparagraph
(A)by dividing— the difference between clauses
(i)and
(ii)of such subparagraph; by the most recent regional price parity index of the Bureau of Economics Analysis for the State or, as applicable, metropolitan area in which such institution is located. The value-added earnings of a student calculated under subparagraph
(A)shall not be adjusted based on geographic location in accordance with clause
(i)if such student attended principally through distance education. For the purpose of calculating the value-added earnings of a student, except as provided in clause (ii), the annual earnings of a student shall be measured— in the case of a program of study that awards an undergraduate certificate, post baccalaureate certificate, or graduate certificate, 1 year after the student completes such program; in the case of a program of study that awards an associate’s degree or master’s degree, 2 years after the student completes such program; and in the case of a program of study that awards a bachelor’s degree, doctoral degree, or professional degree, 4 years after the student completes such program. The Secretary may, as the Secretary determines appropriate based on the characteristics of a program of study, extend an earnings measurement period described in clause
(i)for a program of study that— requires completion of an additional educational program (such as a residency or fellowship) after completion of the program of study in order to obtain licensure or board certification associated with the credential awarded for such program of study; and when combined with the program length of such additional educational program for licensure or board certification, has a total program length that exceeds the relevant earnings measurement period prescribed for such program of study under clause (i), except that in no case shall the annual earnings of a student be measured more than 1 year after the student completes such additional educational program. The term program length means the minimum amount of time in weeks, months, or years that is specified in the catalog, marketing materials, or other official publications of an institution of higher education for a full-time student to complete the requirements for a specific program of study. . Section 484B of the Higher Education Act of 1965 ( 20 U.S.C. 1091b ) is amended by adding at the end the following: Notwithstanding any other provision of this Act, the Secretary shall reserve the funds returned to the Secretary under this section for 1 year after the return of such funds for the purpose of awarding PROMISE grants in accordance with subpart 4 of part A of this title. .