# Reporting and Disclosure Requirements for Institutions of Higher Education to Participate in Federal Student Aid Programs Under Title IV of the Higher Education Act > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3AR40789 ## Record - **Collection:** Congressional research report - **Document type:** CRS Report - **Published:** August 31, 2009 - **Citation:** R40789 ## Text Reporting and Disclosure Requirements for Institutions of Higher Education to Participate in Federal Student Aid Programs Under Title IV of the Higher Education Act (name redacted) Specialist in Education Policy August 31, 2009 Congressional Research Service 7-.... www.crs.gov R40789 CRS Report for Congress Prepared for Members and Committees of Congress Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Summary The Higher Education Act of 1965 (HEA; P.L. 89-329), as amended, authorizes a broad array of federal student aid programs that assist students and their families with paying for or financing the costs of obtaining a postsecondary education. These federal student aid programs are authorized under Title IV of the HEA. Requirements applicable to the administration of Title IV federal student aid programs are specified in Title I of the HEA, as well as in Title IV. The HEA also authorizes many other types of programs, including programs that make federal aid and support available to institutions of higher education (IHEs). The Department of Education administers programs authorized under the HEA. In 2008, the HEA was reauthorized under the Higher Education Opportunity Act (HEOA; P.L. 110-315); and in 2009 technical amendments to the HEA were made under P.L. 111-39. Institutions that participate in one or more Title IV programs, or that seek to begin participating in these programs, are subject to a wide range of requirements under the act to report or disclose information to the Secretary of Education, to students, to the public, or to other entities. As part of the amendments made to the HEA, the HEOA added numerous additional requirements for the reporting and disclosure of information, many of which are applicable to IHEs. This has resulted in a sizable expansion of the reporting and disclosure requirements with which IHEs must comply as a condition of their participation in HEA, Title IV federal student aid programs. This report responds to requests by Members of Congress for an in-depth examination of the reporting and disclosure requirements applicable to IHEs that participate in Title IV federal student aid programs. Specifically, it identifies and describes the reporting and disclosure requirements specified under Title I and Title IV of the HEA that applied to institutions prior to the enactment of the HEOA and those that were amended or newly established by the HEOA. It has been prepared to serve as a resource to assist Members of Congress and their staff in overseeing the Department of Education’s implementation of amendments to the HEA made by the HEOA. It is designed to be comprehensive, though not necessarily exhaustive, in scope. It will not be updated. Congressional Research Service Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Contents Title I—General Provisions.........................................................................................................3 Definition of Institution of Higher Education (Title I, Part A) ................................................4 Definition of IHE for Participation in Title IV Programs (HEA, § 102)............................4 Disclosures of Foreign Gifts (Title I, Part B) .........................................................................6 Drug and Alcohol Abuse Prevention (Title I, Part B) ........................................................... 10 Participation in Data Collection by ED (Title I, Part C) ....................................................... 13 Reporting Requirements Relating to College Affordability and Transparency ................ 13 Consumer Information Reporting Requirements............................................................ 17 State-by-State Student Aid Recipient Survey (NPSAS).................................................. 21 Textbook Information Program ..................................................................................... 22 Institution Requirements Relating to Education Loans (Title I, Part E)................................. 24 Title IV, Part G—General Provisions......................................................................................... 30 Student Eligibility ............................................................................................................... 30 General Institutional Information and Financial Assistance.................................................. 33 Entrance Counseling and Exit Counseling ........................................................................... 41 Athletically Related Student Aid and Athletic Programs ...................................................... 47 Campus Security, Campus Crime, Fire Safety, and Missing Person Procedures.................... 51 Campus Security and Campus Crime Measures ............................................................. 51 Fire Safety Standards and Measures .............................................................................. 51 Missing Person Procedures............................................................................................ 52 Program Participation Agreement........................................................................................ 60 Title IV, Part H—Program Integrity........................................................................................... 68 State Authorization.............................................................................................................. 68 Accreditation ...................................................................................................................... 68 Eligibility and Certification................................................................................................. 72 Financial and Compliance Issues......................................................................................... 75 End of Participation in Title IV Programs ............................................................................ 76 Title IV Program-Specific Requirements ................................................................................... 77 Federal Student Loan Programs (FFEL and DL Programs) .................................................. 77 Federal Family Education Loan Program (Part B) ......................................................... 77 William D. Ford Federal Direct Loan Program (Part D)................................................. 77 Campus-Based Programs (FSEOG, FWS, & Federal Perkins Loans).................................... 88 Fiscal Operations Report and Application to Participate (FISAP)................................... 88 FWS—Job Location and Development Program............................................................ 88 Requirements for IHEs as Lenders of Federal Perkins Loans ......................................... 97 Tables Table 1. Reporting Requirements for IHEs Relating to the Disclosure of Foreign Gifts ................8 Table 2. Reporting Requirements for IHEs Relating to Drug and Alcohol Abuse Prevention.............................................................................................................................. 11 Table 3. Reporting Requirements for IHEs Relating to the Cost of Higher Education................. 14 Table 4. Reporting Requirements for IHEs Relating to Consumer Information........................... 18 Congressional Research Service Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Table 5. Disclosure Requirements for IHEs Relating to Textbook Information ........................... 23 Table 6. Reporting Requirements for IHEs Relating to Education Loans.................................... 25 Table 7. Reporting Requirements for IHEs Relating to Student Eligibility ................................. 31 Table 8. Reporting and Disclosure Requirements for IHEs Relating to Institutional Information and Financial Assistance ..................................................................................... 34 Table 9. Reporting Requirements for IHEs Relating to Entrance Counseling, Exit Counseling, and NSLDS ........................................................................................................ 42 Table 10. Reporting Requirements for IHEs with Respect to Athletically Related Student Aid and Athletic Programs ..................................................................................................... 48 Table 11. Reporting Requirements for IHEs Relating to Campus Security, Campus Crime, Fire Safety, and Missing Persons Procedures .......................................................................... 53 Table 12. Reporting Requirements for IHEs with Respect to Program Participation Agreements............................................................................................................................ 61 Table 13. Reporting Requirements That May Apply to IHEs with Respect to Accreditation ......................................................................................................................... 70 Table 14. Institutional Information Collected on the Application for Approval to Participate in Federal Student Financial Aid Programs (E-App) .............................................. 73 Table 15. Reporting and Disclosure Requirements for IHEs with Respect to FFEL Program Loans....................................................................................................................... 79 Table 16. Reporting and Disclosure Requirements for IHEs with Respect to DL Program Loans..................................................................................................................................... 81 Table 17. Federal Supplemental Educational Opportunity Grant Program FISAP Reporting Requirements......................................................................................................... 89 Table 18. Federal Work-Study Program FISAP Reporting Requirements ................................... 91 Table 19. Federal Perkins Loan Program FISAP Reporting Requirements.................................. 94 Table 20. Reporting and Disclosure Requirements for IHEs as Lenders of Federal Perkins Loans..................................................................................................................................... 98 Table A-1. Reporting Requirements for IHEs with Respect to IPEDS ...................................... 105 Appendixes Appendix. IPEDS and Other Postsecondary Education Data Collections ................................. 103 Contacts Author Contact Information .................................................................................................... 115 Acknowledgments .................................................................................................................. 115 Congressional Research Service Reporting Requirements for IHEs to Participate in Federal Student Aid Programs T he Higher Education Act of 1965 (HEA; P.L. 89-329), as amended, authorizes a broad array of federal student aid programs that assist students and their families with paying for or financing the costs of obtaining a postsecondary education. These federal student aid programs are authorized under Title IV of the HEA. Requirements applicable to the administration of Title IV federal student aid programs are specified in Title I of the HEA, as well as in Title IV. The HEA also authorizes many other types of programs, including programs that make federal aid and support available to institutions of higher education (IHEs). The Department of Education (ED) administers programs authorized under the HEA. In 2008, the HEA was reauthorized under the Higher Education Opportunity Act (HEOA; P.L. 110-315);1 and in 2009 technical amendments to the HEA were made under P.L. 111-39. Institutions that participate in one or more Title IV programs, or that seek to begin participating in these programs, are subject to a wide range of requirements under the act to report or disclose information to the Secretary of Education (the Secretary), to students, to the public, or to other entities. As part of the amendments made to the HEA, the HEOA added numerous additional requirements for the reporting and disclosure of information, many of which are applicable to IHEs. This has resulted in a sizable expansion of reporting and disclosure requirements with which IHEs must comply as a condition of their participation in HEA, Title IV federal student aid programs. This report responds to requests by Members of Congress for an in-depth examination of the reporting and disclosure requirements applicable to IHEs that participate in Title IV federal student aid programs. Specifically, it identifies and describes the reporting and disclosure requirements specified under Title I and Title IV of the HEA that applied to institutions prior to the enactment of the HEOA and those that were amended or newly established by the HEOA.2 It has been prepared to serve as a resource to assist Members of Congress and their staff in overseeing the Department of Education’s implementation of amendments to the HEA made by the HEOA. This report is designed to provide a thorough presentation of provisions in the HEA that require IHEs to report or disclose information, while also highlighting those provisions that were added or amended by the HEOA. In general, the organization of this report follows the statutory framework of the HEA. With respect to a number of subject areas, substantially similar requirements for the reporting or disclosure of information are specified in more than one part or section of the HEA. For example, similar requirements for the disclosure of information about student loans are specified in several areas of the HEA; and certain requirements for the reporting or disclosure of information may be specified in the Program Participation Agreement, as well as in other sections of the HEA. While the Secretary has latitude to streamline similar requirements in implementation, in this report, such requirements are generally identified as they appear in the act. This report attempts to be comprehensive, but not necessarily exhaustive, in its scope. It is designed to identify and describe requirements in the HEA for IHEs to report or disclose 1 For additional information on the HEA and amendments made under the HEOA, see CRS Report RL34654, The Higher Education Opportunity Act: Reauthorization of the Higher Education Act, by (name redacted) et al. 2 This report is current through the enactment of P.L. 111-39, which makes technical corrections to the HEA, including a limited set of adjustments to reporting requirements enacted under the HEOA. Hence, while the report focuses on changes adopted through the HEOA, it also reflects changes to HEA reporting and disclosure requirements that were made through P.L. 111-39. Congressional Research Service 1 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs information. It does not attempt to identify every instance in which an IHE may be required to respond to a federal statutory or regulatory requirement. For example, it does not examine all requirements that are primarily operational in nature for IHEs to provide information related to federal student aid programs, such as the exchange of information through ED’s Common Origination and Disbursement (COD) system, nor the requirement of IHEs to verify student aid application information. It also does not examine requirements for IHEs to retain documentation of their compliance with HEA or regulatory provisions that have no associated requirement for them to report or disclose information. This report also does not address response burden, nor non-HEA requirements and regulations that may impact IHEs. The HEOA requires the Secretary to enter into an agreement with the National Research Council to conduct a study to determine the number and scope of all the federal regulations and reporting requirements applicable to IHEs, and the associated response burden. 3 The HEOA also requires the Government Accountability Office (GAO) to conduct a study on IHEs’ time and cost burdens associated with completing the Integrated Postsecondary Education Data System (IPEDS) surveys.4 Both of these studies are required to be completed by August 2010. The Secretary of Education ultimately is responsible for determining which HEA reporting and disclosure requirements are applicable to IHEs that participate in Title IV and for promulgating regulations to implement those requirements. In July and August, 2009, ED published proposed regulations to implement the HEOA amendments to the HEA in the Federal Register.5 The HEOA also amended the HEA, effective July 1, 2010, to require the Secretary to provide IHEs with a list of all the reports and disclosures required under the act.6 The list that must be prepared by the Department of Education must include the following: 3 4 • the date the report or disclosure is required to be completed and submitted, made available, or disseminated; • the required recipients; • any required methods for transmittal or dissemination; • a description of the content of each report or disclosure sufficient to allow the IHE to assign responsibility to staff; • references to applicable statutes, regulations, and guidance; and HEOA, § 1106. HEOA, § 1103. 5 Department of Education, “Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program; Proposed Rule,” 74 Federal Register 36555-36602, July 23, 2009, at http://www.ifap.ed.gov/fregisters/attachments/FR07232009.pdf; “Institutions and Lender Requirements Relating to Education Loans, Student Assistance General Provisions, Federal Perkins Loan Program, Federal Family Education Loan Program, and William D. Ford Federal Direct Loan Program,” 74 Federal Register 37431-37494, July 28, 2009, at http://www.ifap.ed.gov/fregisters/attachments/FR07282009.pdf; “Institutional Eligibility Under the Higher Education Act of 1965, as Amended, and the Secretary’s Recognition of Accrediting Agencies; Proposed Rule,” 74 Federal Register 39497-39533, August 6, 2009, at http://www.ifap.ed.gov/fregisters/attachments/FR08062009.pdf; and “General and Non-Loan Programmatic Issues; Proposed Rule,” 74 Federal Register 42379-42463, August 21, 2009, at http://www.ifap.ed.gov/fregisters/attachments/FR082109NPRM.pdf. 6 HEA, § 482(e). Congressional Research Service 2 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs • any other pertinent information relating to the reporting or disclosure requirement. The remainder of this report identifies and describes requirements for institutions to report or disclose information to the Secretary, to students, to the public, or to other entities, such as lenders, guaranty agencies, and consumer reporting agencies, as specified in the HEA and Department of Education regulations. 7 It begins with generally applicable requirements as specified in HEA, Title I—General Provisions; Title IV, Title G—General Provisions; and Title IV, Part H—Program Integrity, and concludes with Title IV program-specific requirements for the federal student loan and campus-based programs. Information on requirements to report or disclose information as part of the IPEDS surveys is presented in the Appendix. The report generally follows the statutory framework of the HEA, and is organized by Title and Part. Brief general descriptions are provided for each of the major requirements for IHEs to report or disclose information. These descriptions are followed by tables which present the pre-HEOA requirements for IHEs to report or disclose information, a statutory or regulatory citation for the requirement, and the designated recipient of the information. The tables also show any corresponding changes made by the HEOA to these requirements.8 For instance, the tables highlight additional new requirements, as well as changes to the content of what was required to be reported under previously exiting requirements. Title I—General Provisions Prior to the reauthorization of the HEA in 2008, Title I of the HEA included four parts, which established general provisions for the remainder of the HEA: (1) Part A: Definition of an Institution of Higher Education, (2) Part B: Additional General Provisions, (3) Part C: Cost of Higher Education, and (4) Part D: Administrative Provisions for Delivery of Student Financial Assistance. Several of the provisions included in Title I specifically affected IHEs’ participation in the Title IV federal student aid programs. Only Part B, however, included specific reporting requirements for institutions. Part C included implicit reporting requirements such as those related to IPEDS, which is an annual series of surveys administered by ED. The requirement for institutions to participate in IPEDS was and continues to be included in the Program Participation Agreement (PPA) requirements included in HEA, § 487.9 The HEOA amends the institutional reporting requirements included in Part A, Part B, and Part C. The HEOA adds a new set of institutional reporting requirements to Part C with a focus on transparency in college costs for consumers and textbook information. The HEOA also adds a new Part E: Lender and Institution Requirements Relating to Education Loans, which contains a series of requirements for IHEs to disclose information about student loans, which are in addition to requirements specified separately under Title IV, Part B—the Federal Family Education Loan (FFEL) program; Title IV, Part D—the William D. Ford Federal Direct Loan (DL) program; and Title IV, Part E—the Federal Perkins Loan program. 7 In this report, the terms “institutions of higher education” and “institutions” are used interchangeably. 8 The tables presented in this report are designed to allow the reader to make comparisons between pre-HEOA and current reporting requirements. However, these tables are not intended to display each pre-HEOA and current reporting and disclosure requirement in a side-by-side framework. 9 The specific data reporting requirements related to IPEDS are discussed in the Title IV, Part G section of this report. Congressional Research Service 3 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs This section of the report examines the reporting requirements specified in Title I, Part A, Part B, and Part C of the HEA prior to and after enactment of the HEOA. It also examines requirements specified in Title I, Part E of the HEA that were enacted by the HEOA amendments. Definition of Institution of Higher Education (Title I, Part A) The HEA includes two definitions of IHEs. The first definition, specified in § 101, applies for institutional participation in programs other than those authorized under Title IV. The second definition, specified in § 102, applies for institutional participation in Title IV programs, the focus of this report. The § 101 definition recognizes as IHEs those institutions that are legally authorized by the state, are accredited or pre-accredited by an agency or association recognized by ED, are nonprofit institutions, award a bachelor’s degree or provide at least a two-year program that is accepted as credit toward the completion of a bachelor’s degree, and enroll as regular students only individuals who have graduated from a secondary institution or hold the equivalent of a high school diploma. The § 101 definition also recognizes institutions offering not less than a one-year program of training in preparation for employment and institutions admitting students beyond the age of compulsory secondary school attendance. Definition of IHE for Participation in Title IV Programs (HEA, § 102) The HEA, § 102 definition of an IHE, which applies for participation in Title IV programs, includes all institutions recognized as IHEs under HEA, § 101, and also proprietary institutions, postsecondary vocational institutions, and institutions located outside of the United States (i.e., foreign institutions). Proprietary institutions are defined as those institutions that provide training in preparation for gainful employment in a recognized occupation; are legally authorized by the state; are accredited by an agency or association recognized by ED; admit as regular students only individuals who have graduated from a secondary institution or hold the equivalent of a high school diploma, or who are past the age of compulsory attendance in the state in which the institution is located; and have been in existence for at least two years.10 In addition, until enactment of the HEOA, proprietary institutions were required to derive at least 10% of school revenue from non-Title IV funds. Under the HEOA, this requirement—commonly referred to as the 90/10 rule—was removed from the § 102 definition of an IHE and made part of the requirements for institutional program participation agreements, specified under HEA, Title IV, Part G (described below). Postsecondary vocational institutions must meet criteria similar to those applicable to proprietary institutions with two exceptions: (1) they must be nonprofit institutions, and (2) they are not subject to the 90/10 rule. In addition, to be eligible to participate in Title IV programs, institutions must meet certain requirements based on course of study or enrollment. Institutions are required to report compliance with the following four requirements as part of their Application for Approval to Participate in Federal Student Financial Aid Programs (E-App) (described below under Title IV, Part H). 10 To be eligible to receive federal student aid, students who are beyond the age of compulsory attendance but do not have a high school diploma must meet ability-to-benefit requirements or meet the student eligibility criteria for home schooled students (Section 484(d)). Congressional Research Service 4 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs 1. No more than 50% of an institution’s courses, other than a postsecondary career and technical institution, 11 may be correspondence courses (excluding courses offered by telecommunications) (§ 102(a)(3)(A)). 2. No more than 50% of an institution’s students may be enrolled in correspondence courses (excluding courses offered by telecommunications) (§ 102(a)(3)(B)).12 3. No more than 25% of an institution’s enrollment may be comprised of students who are incarcerated (§ 102(a)(3)(C)).13 4. No more than 50% of enrollment at an institution that does not provide a twoyear or four-year course of study (or both) leading to an associate’s or bachelor’s degree may be comprised of students who do not possess a high school diploma or its equivalent (§ 102(a)(3)(D)). 14 Foreign Institutions In general, foreign institutions are currently eligible to participate in the Federal Family Education Loan (FFEL) program if they meet the same requirements as an IHE under § 101 and have been approved by ED to participate in the FFEL program.15 Foreign medical and veterinary institutions, however, must meet additional requirements to participate in the FFEL program. Foreign institutions must report information demonstrating that they meet the terms of these requirements on the E-App. (see below). Foreign medical institutions must meet one of the following two sets of additional criteria (§ 102(a)(2)(A)). 1. At least 60% of the students, and at least 60% of the graduates of a graduate medical school located outside of the United States, must not be U.S. citizens or permanent residents; and at least 60% of the students or graduates of a graduate medical school located outside of the United States or Canada taking examinations administered by the Educational Commission for Foreign Medical Graduates must receive a passing score. 2. The graduate medical school must have a clinical training program that was approved by a state as of January 1, 1991. For foreign for-profit veterinary institutions to be eligible to participate in the FFEL program, they must require their students to complete their clinical training at an approved veterinary school located in the United States. The HEOA amended eligibility requirements for foreign medical institutions and veterinary institutions, and added eligibility requirements for foreign nursing schools to participate in the FFEL program, effective July 1, 2010. It is expected that when these new requirements become 11 This exception applies to institutions that meet the definition of the term “area career and technical education school,” in § 3(3)(C) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. § 2302(3)(C)). 12 The Secretary may waive this requirement for “good cause” for an IHE providing a two-year and/or four-year course of study leading to an associate’s or bachelor’s degree, respectively. 13 The Secretary may waive this requirement for a nonprofit institution providing a two-year and/or four-year course of study leading to an associate’s degree, bachelor’s degree, or postsecondary diploma. 14 The Secretary may waive this requirement if the institution has federal, state, or local government agency contracts that result in the institution serving significant numbers of students lacking a secondary school credential. 15 The FFEL program is the only Title IV program in which foreign institutions may participate. Congressional Research Service 5 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs effective, foreign institutions would be required to report information demonstrating that they meet these requirements on the E-App. Foreign for-profit graduate medical institutions. Effective July 1, 2010, foreign medical institutions will be required to meet one of the following two sets of additional criteria to participate in the FFEL program. 1. At least 60% of the students, and at least 60% of the graduates of a graduate medical school located outside of the United States, must not be U.S. citizens or permanent residents; and at least 75% of the students or graduates of a graduate medical school located outside of the United States or Canada taking examinations administered by the Educational Commission for Foreign Medical Graduates must receive a passing score. 2. The graduate medical school must have a clinical training program that was approved by a state as of January 1, 1991; and must continue to operate a clinical training program in at least one state that is approved by that state. Foreign veterinary institutions. The HEOA made no changes to the requirements for these institutions to participate in the FFEL program. Foreign nursing schools. In accordance with amendments enacted in the HEOA and P.L. 111-39, effective July 1, 2012, foreign nursing schools can become eligible to participate in the FFEL program, but will be required to meet the following five eligibility requirements. 1. The school must have an agreement with either a hospital or accredited school of nursing located in the United States at which the school’s students are required to complete their clinical training. 2. The school must have an agreement with an accredited school of nursing located in the United States which provides that its students will also receive a degree from the school in the United States upon graduation. 3. The school may certify only FFEL program loans for its students. 4. The school must reimburse the Secretary for the costs of any loan defaults for current and former students included in the calculation of its cohort default rate for the preceding fiscal year. 5. At least 75% of students or graduates from the school who, during the preceding year, took the National Council Licensure Examination for Registered Nurses must have received a passing score. Disclosures of Foreign Gifts (Title I, Part B) In accordance with HEA, § 117, institutions that are owned or controlled by a foreign source or that receive a gift from or enter into a contract with a foreign source valued at $250,000 or more, when considered alone or in combination with other gifts from or contracts with that foreign source within a calendar year, must file a disclosure report with the Secretary. The report must be filed on January 31 or July 31, whichever date is closest following receipt of the gift. Institutions that are required to publicly disclose gifts from or contracts with foreign sources under state laws that are substantially similar to the requirements of HEA, § 117, or that are required by any executive branch agency to prepare a report on gifts from or contracts with foreign sources Congressional Research Service 6 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs according to requirements that are substantially similar to the requirements of HEA, § 117, may file a copy of such disclosure report in lieu of separately filing a disclosure report with the Secretary. If an institution fails to comply with these requirements, the Secretary may request the Attorney General to bring a civil action to request the court to compel compliance. Institutions that knowingly or willfully fail to comply with the requirements of this section must repay the United States for the full costs of obtaining compliance. The HEOA did not amend the HEA requirements for the disclosure of foreign gifts. Reporting requirements for IHEs relating to the disclosure of foreign gifts are presented in Table 1. Congressional Research Service 7 Table 1. Reporting Requirements for IHEs Relating to the Disclosure of Foreign Gifts HEA, Title I-B, § 117 Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Report the aggregate dollar amount of gifts and contracts attributable to a foreign country for gifts received from or contracts entered into with a foreign source other than a foreign government. § 117(b)(1) Report the aggregate dollar amount of gifts and contracts attributable to a foreign country for gifts received from or contracts entered into with a foreign government. § 117(b)(2) For institutions owned or controlled by a foreign source: report the identity of the foreign source, the date on which ownership or control was assumed, and any resulting changes in program or structure. § 117(b)(3) For IHEs that receive a restricted or conditional gift from or enter into a contract with a foreign source (other than a foreign government): disclose the amount, the date, and a description of any conditions or restrictions of the gift or contract; and the country of citizenship, or principal residence, country of incorporation, or principal place of business of the foreign source. § 117(c)(1) CRS-8 Recipient of information The Secretary; and Changes to requirements made by the HEOA Requirement Citation Recipient of information No changes. No changes. No changes. No changes. No changes. No changes. No changes. No changes. information must be made available to the public. The Secretary; and information must be made available to the public. The Secretary; and information must be made available to the public. The Secretary; and information must be made available to the public. Requirements in the HEA prior to the enactment of the HEOA Requirement Citation For IHEs that receive a restricted or conditional gift from or enter into a contract with a foreign government: disclose the amount, the date, and a description of any conditions or restrictions, and name of the foreign government. §117(c)(2) Recipient of information The Secretary; and Changes to requirements made by the HEOA Requirement No changes. Citation Recipient of information No changes. information must be made available to the public. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; and applicable regulations. CRS-9 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Drug and Alcohol Abuse Prevention (Title I, Part B) The HEA includes several institutional reporting requirements related to the prevention of drug and alcohol abuse, most of which had been incorporated into the HEA prior to the enactment of the HEOA. As a condition of eligibility to receive funds or any form of financial assistance under any federal program, institutions are required to certify to the Secretary that they have adopted and implemented a program to prevent the use of illicit drugs and the abuse of alcohol. An institution failing to provide this certification is not eligible to receive funds or any other form of financial assistance under any federal program. Institutions must distribute information about drug and alcohol abuse and prevention to students and employees on an annual basis. This includes standards of conduct, applicable legal sanctions, a description of health risks, a description of available counseling, treatment, or rehabilitation programs, and a description of institutional sanctions. Institutions must also make this information available to the Secretary and the public upon request. In addition, institutions are required to conduct a biennial review of the effectiveness of their programs, to implement changes to the programs if necessary, and to ensure that required sanctions are consistently enforced. (HEA, §§ 120 and 487(a); and 34 CFR § 668.14). Part B of the HEA, as amended by § 107 of the HEOA, retains all of the aforementioned reporting requirements. However, the requirements for the biennial review have been expanded to include a determination of the number of drug and alcohol-related violations and fatalities that occur on campus or as part of the institution’s activities that are reported to campus officials, and the number and types of sanctions imposed by the institution in response to these violations and fatalities. Reporting requirements for IHEs relating to drug and alcohol abuse prevention are presented in Table 2. Congressional Research Service 10 Table 2. Reporting Requirements for IHEs Relating to Drug and Alcohol Abuse Prevention HEA, Title I-B, § 119 Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Certify that it has adopted and implemented a program to prevent illicit drug use and alcohol abuse by students and staff. § 120(a) The Secretary. No changes. No changes. As part of its program, the IHE must annually distribute: § 120(a)(1) Each student and employee (annual distribution required); and No changes. No changes. Standards of conduct prohibiting the unlawful possession, use, or distribution of illicit drugs and alcohol by students and employees on the IHE’s property or as part of any institutional activities; A description of legal sanctions under federal, state, and local law for the unlawful possession or distribution of illicit drugs or alcohol; A description of the health risks associated with illicit drug use and alcohol abuse; A description of drug or alcohol counseling or treatment programs available to students and staff; and A statement that the IHE will impose sanctions on students and staff for violating its drug and alcohol policies; and a description of the sanctions. CRS-11 Recipient of information Changes to requirements made by the HEOA The Secretary and the public (upon request). Requirement Citation Recipient of information Requirements in the HEA prior to the enactment of the HEOA Requirement Citation As part of its program, the IHE must provide the results of a biennial review of its drug and alcohol abuse prevention program to determine program effectiveness, to implement needed changes, and to ensure required sanctions are consistently enforced. § 120(a)(2) Recipient of information The Secretary and the public (upon request). Changes to requirements made by the HEOA Requirement As part of its program (and program report), the IHE must also: Citation § 120(a)(2) Recipient of information The Secretary and the public (upon request). Determine the number of drug and alcohol-related violations and fatalities that occur on campus or as part of the IHE’s activities, and the number that are reported to campus officials; and Determine the number and types of sanctions imposed by the IHE as a result of violations and fatalities that occur on campus or as part of its activities. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; and applicable regulations. CRS-12 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Participation in Data Collection by ED (Title I, Part C) Under Title I, Part C, the Department of Education collects a broad array of information about institutions. On an annual basis, the Commissioner of Education Statistics is required to collect information from (at least) all institutions participating in Title IV programs. Examples of information collected include data on tuition and fees, costs of attendance (COA), and the average amount of financial assistance received by undergraduate students by type of assistance required to be collected under HEA, § 131(a). These data are annually collected by ED through IPEDS. Institutions must participate in IPEDS to retain their Title IV eligibility. Institutions are also required to participate in any other federal postsecondary institution data collection in a timely manner (e.g., the National Postsecondary Student Aid Survey (NPSAS)). 16 Under the HEOA amendments to the HEA, these reporting requirements were retained and expanded to reflect the addition of new data elements to IPEDS (see Title IV, Part G, and Table 16, below), and a new requirement that NPSAS data be representative for each state. Reporting requirements that relate to college affordability and transparency, IPEDS, NPSAS, and college textbook information are summarized below. Reporting Requirements Relating to College Affordability and Transparency Under HEA, § 131(a), IHEs are required to annually report information on undergraduate tuition and fees, cost of attendance, the number of undergraduate students receiving specified forms of financial assistance, and the average amount of financial assistance received. Institutions have been required to report this information through IPEDS. The HEOA amended the HEA by establishing a requirement for ED to annually publish six lists relating to college affordability by sector (e.g., public four-year institutions): 1. the 5% of institutions with the highest tuition and fees; 2. the 5% of institutions with the highest net price; 3. the 5% of institutions with the largest percentage increase in tuition and fees over the last three academic years; 4. the 5% of institutions with the largest percentage increase in net price over the last three academic years; 5. the 10% of institutions with the lowest tuition and fees; and 6. the 10% of institutions with the lowest net price. Institutions listed on the third or fourth lists are also subject to reporting requirements related to the reasons for cost increases and steps being taken to reduce costs, unless their increase in tuition and fees or net price over the three-year period was less than $600. Reporting requirements for IHEs relating to the cost of higher education are presented in Table 3. 16 HEA §§ 131(a) and 487(a); and 34 CFR § 668.14. Congressional Research Service 13 Table 3. Reporting Requirements for IHEs Relating to the Cost of Higher Education HEA, Title I-C, §§ 131 & 132 Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Report the following information applicable to the IHE for academic year 2000-2001, and annually thereafter: § 131(a)(3) Tuition and fees for a fulltime undergraduate student; Cost of attendance (COA) for a full-time undergraduate student; The number of undergraduate students receiving the following types of financial assistance, and the average amount received: Pell Grant aid; AC/SMART Grant aid;a FSEOG aid;b FWS aid;c Perkins Loan aid; Veterans’ education benefits; Other scholarship aid; Other grant aid; Other loan aid; Fellowships; and Institutional aid and other assistance. CRS-14 Recipient of information The Secretary. Changes to requirements made by the HEOA Requirement No changes. Citation Recipient of information No changes. Requirements in the HEA prior to the enactment of the HEOA Requirement Not applicable. Citation Not applicable. Recipient of information Not applicable. Changes to requirements made by the HEOA Requirement Citation Recipient of information Report the following information for first-time, full-time undergraduate studentsd: § 132(a) The Secretary. § 132(e)(1) The Secretary; and the public (summary information only). Average annual cost of tuition, fees, room and board, books, supplies, and transportation (COA); COA, minus the average amount of need-based and merit-based grant aid from federal, state, and institutional sources received by students receiving such aid (net price); and Average annual cost of tuition and fees (tuition and fees). Not applicable. Not applicable. Not applicable. The 5% of IHEs by sector that have the largest increase in tuition and fees or net price over the last three academic years and do not qualify for the $600 exemption must submit a report containing: A description of the major areas in the IHE’s budget with the greatest cost increases; An explanation for the aforementioned cost increases; A description of the steps the IHE is taking to reduce costs in these areas; CRS-15 Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information Changes to requirements made by the HEOA Requirement Citation Recipient of information If the IHE has been on the top 5% list for two or more consecutive years: A description of progress made in implementing the steps to reduce costs; If the determination of any cost increase mentioned as an area in which cost increases were the greatest is not within the exclusive control of the IHE: An explanation of the IHE’s role in determining such cost increase; Identification of the agency of state government responsible for determining such cost increase; and Any other information the IHE considers relevant. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; and applicable regulations. Notes: a. American Competitiveness Grant, and National Science and Mathematics Access to Retain Talent Grant program aid. b. Federal Supplemental Educational Opportunity Grant program aid. c. Federal Work-Study program aid. d. For public institutions, COA and net price must be determined with respect to first-time, full-time undergraduate students who are residents of the state in which the IHE is located. CRS-16 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Consumer Information Reporting Requirements The HEOA amended the HEA to require ED to make available various information about institutions, such as data concerning student enrollment, graduation rates, cost of attendance, student aid, and specific services offered by the institution. Many of these items were already collected in some form through IPEDS or other data collection efforts maintained by ED. As discussed later in the Title IV, Part G section of this report, the Program Participation Agreement requires all institutions to participate in IPEDS, and other postsecondary education data collection efforts as designated by the Secretary, in a timely manner and “to the satisfaction of the Secretary.”17 The HEOA amended the HEA by adding new requirements relating to transparency in college tuition for consumers (HEA, § 132(i)). This amendment requires the Secretary to make an array of consumer information publicly available on the College Navigator website.18 It may be presumed that much of this information will be collected through IPEDS if it is not already being collected through another data collection effort. Table 4 presents an analysis of the new consumer information reporting requirements and identifies for each data element, whether it was being collected through IPEDS or another source prior to the enactment of the HEOA, or whether it is a new data collection requirement. 19 Prior to enactment of the HEOA, the HEA generally did not specify data elements on which the Secretary must publicly report—with the exception of data related to tuition and fees and cost of attendance (§ 131(a) and (b), discussed above)—and, for the most part, the HEA did not specify data elements that institutions must provide to the Secretary. Thus, the comparisons made in Table 4 primarily focus on the differences between specific requirements included in § 132(i) and IPEDS data collection requirements in effect prior to the enactment of the HEOA. The HEOA also amended the HEA by adding a new requirement for the Secretary to develop a multi-year tuition calculator for use by current and prospective students, their families, and others in estimating prices for tuition and fees in future years for each year during the normal duration of a program of study (HEA, § 132(j)). The multi-year tuition calculator will use tuition and fee information reported by IHEs as required under HEA, § 132(i). For institutions that offer multiyear tuition guarantee programs, the calculator must also allow individuals to obtain estimates of tuition and fees in future years based on the provisions of the tuition guarantee program. 17 Requirements for Program Participation Agreements are specified at HEA, § 487. 18 The U.S. Department of Education, National Center for Education Statistics, College Navigator website is available at http://nces.ed.gov/collegenavigator/. 19 Detailed information on data collected through IPEDS is presented in Appendix Table A-1. Congressional Research Service 17 Table 4. Reporting Requirements for IHEs Relating to Consumer Information Relationship between new Consumer Information Data Elements Specified under HEA, § 132(i) and current IPEDS data elements New Consumer Information Data Elements HEA, Title I-C, § 132(i) Data currently included in IPEDS data collections, or that could be derived from current IPEDS data collections Statement of institution’s mission. Included. Total number of undergraduate students who applied, were admitted, and enrolled. Partially included—collected for first-time, degree/certificate-seeking undergraduate students. Where applicable, reading, writing, mathematics, and combined scores on the SAT or ACT for the middle 50 percent range of the freshman class. Included. Number of first-time, full-time, and part-time students enrolled at the undergraduate and (if applicable) graduate levels. Included. Number of degree- or certificate-seeking undergraduate students who have transferred from another institution. Included. Percentage of male and female undergraduate students enrolled. Included—collected for the number of male and female undergraduate students. (Percentages could be derived from these numbers.) Percentage of first-time, full-time, degree- or certificate-seeking undergraduate students from the same state as the IHE, from other states, and from other countries. Partially included (data are collected for full-time and part-time students combined— data cannot be disaggregated for full-time students only). Percentages of first-time, full-time, degree- or certificate-seeking students by race and ethnic background. Included—collected for the number of undergraduate students by race and ethnic background. (Percentages could be derived from these numbers.) Percentage of undergraduate students who are formally registered with the office of disability services (or the equivalent office) as students with disabilities.a Not included. Percentages of first-time, full-time, degree- or certificate-seeking undergraduate students who obtain a degree or certificate within: Partially included—for all institutional levels, completion rates are calculated at 150% of normal time for full-time, first-time undergraduate students; while for four-year institutions only, completion rates are also calculated for four, five, and six years for full-time, first-time students seeking a bachelor’s or equivalent degree. Data are not collected on completions within the normal time for other programs. No data are collected on completions within 200% of normal time. The normal time for completion of, or graduation from, the student’s program; 150% of the normal time for completion of, or graduation from, the student’s program; and 200% of the normal time for completion of, or graduation from, the student’s program. Number of students who obtained certificates, or associate’s, bachelor’s, master’s, professional, or doctoral degrees. Included. Undergraduate major areas of study with the highest number of degrees awarded. Included—data collected for all major areas of study (not limited to highest number of degrees awarded). CRS-18 New Consumer Information Data Elements HEA, Title I-C, § 132(i) Data currently included in IPEDS data collections, or that could be derived from current IPEDS data collections Student-faculty ratio, number of full-time and part-time faculty, and number of graduate assistants with primarily instructional responsibilities. Included. Cost of attendance for first-time, full-time undergraduate students who: Included. Live on campus, Live off-campus, and For students attending a public institution, such costs for in-state and out-of-state students who live on- and off-campus. Average annual grant amount (including federal, state, and institutional aid) awarded to a first-time, full-time undergraduate student who receives financial aid. Partially included—data are collected for degree/certificate-seeking undergraduate students only; data are not available for all first-time, full-time undergraduate students. Average annual amount of federal student loans provided through the institution to undergraduate students. Partially included—data are collected for degree/certificate-seeking undergraduate students only; data are not available for all undergraduate students. Total annual grant aid awarded to undergraduate students from federal, state, institutional, and other sources known by the institution. Not included—data are not collected, but could potentially be approximated for fulltime, first-time, degree/certificate-seeking undergraduate students by multiplying the number of these students by the average grant amount for each type of grant, and summing the result. Percentage of first-time, full-time undergraduate students receiving federal, state, and institutional grants, student loans, and any other type of student financial assistance known by the institution, provided publicly or through the institution (e.g., FWS funds). Partially included—collected for full-time, first-time, degree/certificate-seeking undergraduate students receiving Pell grants, other federal grants, state/local government grants, institutional grants, federal loans, and other loans. Number of students enrolled receiving Pell Grants. Included. Institution’s cohort default rate, as defined under § 435(m). Not included in IPEDS—collected by ED through other data collection efforts. Information on campus safety required to be collected under HEA, § 485(f). Not included in IPEDS—collected by ED through other data collection efforts. Links to sections of the institution’s website that provide information on: Partially included—data are collected on intercollegiate sports and on whether the following services are offered: Student activities offered by the institution; Services offered by the institution for individuals with disabilities; Career and placement services offered by the institution to students during and after enrollment; and Policies of the institution related to transfer of credit from other institutions. CRS-19 remedial services, academic/career counseling services, employment services for current students, placement services for program completers, and on-campus daycare for children of students. (No additional information is collected about these services.) New Consumer Information Data Elements HEA, Title I-C, § 132(i) Data currently included in IPEDS data collections, or that could be derived from current IPEDS data collections Link to the appropriate section of the Bureau of Labor Statistics (BLS) website that provides information on regional data on starting salaries in all major occupations. Not included in IPEDS—ED may be able to add these links without the involvement of institutions. Tuition and fees for each of the three most recent academic years. Included—depending on how tuition and fee data are calculated. Tuition and required fee data are collected annually for full-time undergraduate students living in-district, instate, and out-of-state. (Published tuition and fee data are available for full-time, firsttime undergraduate students, while average tuition and fees are collected for full-time undergraduate students.) Net price for each of the three most recent academic years. Not included in IPEDS. From July 1, 2010, to June 30, 2013, the net price for students receiving federal student aid disaggregated by five income categories for the most recent academic year. Not included in IPEDS. Beginning July 1, 2013, the net price for students receiving federal student aid disaggregated by five income categories for the three most recent academic years. Not included in IPEDS. Average annual percentage change and average annual dollar change in tuition and fees for the three most recent preceding academic years. Included (depending on how tuition and fee data are calculated) Average annual percentage change and average annual dollar change in net price for the three most recent preceding academic years. Not included in IPEDS. Report related to cost increases for institutions in the top 5% of institutions by sector for increase in tuition and fees or net price over the most recent three-year period. It does not appear that this report would be collected through IPEDS. (See previous discussion in text.) Availability of alternative tuition plans (e.g., guaranteed tuition plans). Included. Provisions of multi-year tuition guarantee program for use in multi-year tuition calculator. Not included in IPEDS. Tuition and required fee data collected annually for full-time undergraduate students living in-district, in-state, and out-of-state. (It is important to note that published tuition and fee data are available for full-time, first-time undergraduate students, while average tuition and fees are collected for full-time undergraduate students. In both cases, percentage changes over time could be calculated for three years using data from multiple surveys.) Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; applicable regulations; and IPEDS. Note: a. CRS-20 If the percentage of such students is less than 3%, the institution is required to report “3% or less.” Reporting Requirements for IHEs to Participate in Federal Student Aid Programs State-by-State Student Aid Recipient Survey (NPSAS) Prior to the enactment of the HEOA, § 131(d) of the HEA required the Secretary to conduct a triennial, nationally representative survey of individuals who receive federal student aid under Title IV. The survey was required to be representative of students from all types of institutions, as well as full-time students, part-time students, undergraduate students, graduate students, professional students, current students, and former students. The specified purposes of the survey were to identify the population of federal student aid recipients; to determine their income distribution and socioeconomic characteristics; to describe the combinations of federal, state, and private aid received by students; and to describe loan recipients’ debt burden and their capacity to repay their education debts. This information has been collected through the National Postsecondary Student Aid Study (NPSAS), authorized under the Education Sciences Reform Act of 2002, Title I, Part D, §153(a)(1)(E). The HEOA amends the HEA at § 132(k) to require ED to conduct a quadrennial survey, on a state-by-state basis, of individuals who receive federal student financial aid under Title IV.20 The state-by-state survey must be representative of students from all types of institutions, as well as full-time students, part-time students, undergraduate students, graduate students, professional students, current students, and former students. The specified purposes of the survey were expanded to also include describing the impact of students’ education debt burden on their courses of study and post-graduation plans, and describing how the costs of textbooks and other instructional materials affect the costs of postsecondary education. It appears that the new stateby-state representative sample of students and former students may be implemented as a modification to the NPSAS, through which similar information on students is currently collected. While NPSAS respondents are students or former students, institutions are required to provide ED with certain information about sampled students through a two-stage process. In the 2008 NSPAS, about 1,900 IHEs were included in the sample of institutions. These IHEs were asked to provide ED with enrollment lists that included the names of all students enrolled at a certain date, as well as information including date of birth, social security number, education level, major, and contact information. From the enrollment lists, ED then selected approximately 140,000 students to include in their survey sample. ED also requested additional information from the IHEs on sampled students, including demographic information, admission information (for undergraduates), enrollment status, the degree the student is working toward, and tuition, financial aid, and scholarship information.21 The HEOA did not change the types of information to be collected from IHEs for the NPSAS. However, the new requirement for data to be representative by state will increase the number of 20 The HEOA also amends the HEA to prohibit the development, implementation, or maintenance of a federal database of personally identifiable information on individuals who receive assistance under the HEA, who attend institutions that receive assistance under the HEA, or who are involved in any studies or data collections under the HEA, unless the system (or successor system) is necessary for the operation of programs authorized under Titles II, IV, or VII of the HEA and was in use by the Secretary (or a contractor) the day prior to enactment. (HEA, § 134.) 21 For more information, see the U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study, available online at https://surveys.nces.ed.gov/npsasschool/index.aspx. The valid OMB control number for the NPSAS information collection is 1850-0666. Forms can be found online at https://surveys.nces.ed.gov/npsasschool/content/documents.aspx. See “Student List Preparation Instructions” and “Student Record Abstraction Data Elements.” Congressional Research Service 21 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs students and IHEs required to be included in the NPSAS sample. The increase will be especially acute in states with a relatively small number of students, as a large portion of these students will have to be included in a sample to ensure it is representative of the state. Textbook Information Program The HEOA prospectively amends Title I, Part C of the HEA by adding a new § 133, which establishes new requirements concerning information about textbooks. 22 Under the new requirements, information provided by publishers to faculty members who are in charge of selecting course materials at Title IV participating institutions must include certain price information and copyright dates of previous editions. The new provision also will require textbook publishers to “unbundle” materials, except under certain circumstances, and to make textbooks and each supplement to a textbook available as separate items. In accordance with the new provision, IHEs that receive federal financial assistance will be required, to the maximum extent possible, to publish as part of online course pre-registration and registration materials, the International Standard Book Number (ISBN) for all materials that will be used in each class, as well as the retail price of required and recommended course materials for each course listed in the institution’s course schedule. Institutions will also be required to make available to the college bookstores they operate, or with which they are affiliated, upon request, their course schedule for the subsequent academic period, the aforementioned information about course materials, and enrollment information for each class. In addition, under the new provision, IHEs will be encouraged to disseminate information to students regarding the availability of renting textbooks, purchasing used textbooks, guaranteed textbook buy-back programs, and alternative ways to obtain course content. Requirements for IHEs that receive federal financial assistance to disclose certain information about college textbooks are presented below in Table 5. 22 The effective date of HEA, § 133, Textbook Information, is July 1, 2010. Congressional Research Service 22 Table 5. Disclosure Requirements for IHEs Relating to Textbook Information HEA, Title I-C, § 133 New requirements established under the HEOA Requirement Citation Recipient of information To the maximum extent practicable, each IHE receiving federal financial assistance must disclose for each course listed on its Internet course schedule for preregistration and registration purposes: § 133(d) Students at each IHE. § 133(e) College bookstores. § 133(f) Students. The ISBN and retail price information of required and recommended textbooks and supplemental materials; except If the ISBN is not available, the IHE must include the author, title, publisher, and copyright date for such materials; and If the IHE determines that it is not practicable to provide the aforementioned information for a textbook or supplemental material, it may provide the designation “To Be Determined” in lieu of such information. To the maximum extent practicable, each IHE receiving federal financial assistance must include a notice that textbook information is available on its Internet course schedule, and the Internet address, (if applicable). Upon request, an IHE receiving federal financial assistance must make available to a college bookstore that is operated by the IHE, or is affiliated with the IHE: The IHE’s course schedule for the subsequent academic period; and For each course or class offered for the subsequent academic period: The ISBN and retail price information of each required and recommended textbook and supplemental material; The number of students enrolled in the class or course; and The maximum student enrollment for such class or course. Each IHE receiving federal financial assistance is encouraged (but not required) to disseminate information about: Available institutional programs for renting textbooks or purchasing used textbooks; Available institutional guaranteed textbook buy-back programs; Available institutional alternative content delivery programs; and Other available institutional cost-saving strategies. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; and applicable regulations. CRS-23 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Institution Requirements Relating to Education Loans (Title I, Part E) The HEOA adds a new Part E to Title I which establishes new requirements for lenders and institutions with respect to federal student loans made under Title IV, as well as private student loans. For institutions that participate in preferred lender arrangements—in which the IHE recommends, promotes, or endorses the student loan products (e.g., FFEL program loans and private student loans) of certain lenders—new requirements specify that IHEs must disclose or report certain information, including the maximum amount of Title IV grant and loan aid available to students; detailed information about the terms and conditions of loans; that under the FFEL program, the institution is required to process applications to obtain a loan from any eligible lender; and a detailed explanation of why the IHE entered into a preferred lender arrangement with the lender. Institutions that participate in preferred lender arrangements also must inform prospective borrowers of private student loans that they may qualify for federal student aid under Title IV, and that the terms and conditions of federal student loans may be more favorable than the terms and conditions of private student loans. Institutions may make the required disclosures about student loans and preferred lender arrangements on model disclosure forms developed by the Secretary and the Board of Governors of the Federal Reserve System, 23 or on forms developed by the institution. Institutions that participate in the DL program must make publicly available a completed model disclosure form for DL program loans containing information comparable to what must be disclosed by IHEs with respect to FFEL program loans. The Secretary will be required to provide completed model disclosure forms for DL program loans to IHEs that participate in the DL program. Institutions will be required to post this information on their websites and to include it in informational materials about financial aid that are distributed to prospective students and their families. The HEOA also amended the HEA to establish a requirement for borrowers of private student loans to self-certify their eligibility for these loans. The provisions for self-certification require institutions to disclose to prospective borrowers of private student loans certain information necessary for completion of the form, including their cost of attendance, their expected family contribution, and the estimated financial assistance they will receive. Detailed information on reporting requirements for institutions with respect to student loans is presented in Table 6. 23 Not later than 18 months after the date of enactment, the Secretary, in coordination with the Board of Governors of the Federal Reserve System, is required to determine the minimum information that entities participating in preferred lender arrangements must make available to borrowers. Subsequently, they must develop a model disclosure form that may be used by IHEs and lenders for purposes of disclosing information about FFEL and DL program loans and private education loans to prospective borrowers. Congressional Research Service 24 Table 6. Reporting Requirements for IHEs Relating to Education Loans HEA, Title I-E New requirements established under the HEOA Requirement Citation Recipient of information Disclosure requirements for IHEs that participate in preferred lender arrangements with lenders of FFEL program loans IHEs that participate in a preferred lender arrangement with one or more FFEL program lenders must disclose the following information: The maximum amount of Title IV grant and loan aid available to students; A statement that the IHE is required to process applications for FFEL program loans from any eligible lender a student selects; The following information for each type of FFEL program loan offered pursuant to a preferred lender arrangement (this information may be provided on a model disclosure form designed by the Secretarya or on a form designed by the institution): The information required to be disclosed on the model disclosure formsb developed by the Board of Governors of the Federal Reserve System under § 128(e) of the Truth in Lending Act (TILA), for private education loans (see below) modified as necessary to apply to such loans; and Any of the following, if determined by the Secretary to merit required disclosure: Loan terms and conditions for the next award year (including interest rate, deferment, and loan forgiveness provisions); Any applicable loan charges (e.g., origination and default fees), and whether they will be deducted from the proceeds of the loan, paid by the borrower, or paid by the lender; Annual and aggregate loan limits; The average amounts borrowed from the lender the preceding year for all students, and disaggregated by individuals completing degree or certificate programs at the IHE; CRS-25 §§ 152(a)(1)(A), and 153; and TILA, § 128(e) Submit to the Secretary as an annual report; make publicly available by posting on the website of the institution and its affiliates; and include in informational materials (publications, mailings, and electronic messages) about financial aid opportunities that are distributed to prospective and current students and their families. New requirements established under the HEOA Requirement Citation Recipient of information Estimated repayment amounts (based on average loans made by the lender to students graduating from the IHE the preceding year) for borrowers of Subsidized Stafford Loans, borrowers of Unsubsidized Stafford Loans and PLUS Loans who pay interest while in school, and borrowers of Unsubsidized Stafford Loans or PLUS Loans who do not pay interest while in school; The consequences of defaulting on a loan (including limitations on discharging loan in bankruptcy); Contact information for the lender; and Other information as the Secretary may require based on consultation with students and their families, representatives of IHEs, IHE-affiliated organizations, guidance counselors, lenders, loan servicers, and guaranty agencies; and A detailed explanation of why the IHE entered into a preferred lender arrangement with the lender, including why the terms, conditions, and provisions of each type of FFEL program loan offered pursuant to the arrangement are beneficial to the students attending the IHE, or the families of such students, as applicable. Disclosure requirements for IHEs that participate in preferred lender arrangements with lenders of private education loans IHEs that participate in a preferred lender arrangement with one or more private education loan lenders must disclose the following information about each type of private education loan offered as part of a preferred lender arrangement: The maximum amount of Title IV grant and loan aid available to students; A statement that the IHE is required to process applications for FFEL program loans from any eligible lender a student selects; The information required to be disclosed on the model disclosure formsb developed by the Board of Governors of the Federal Reserve System under § 128(e) of the Truth in Lending Act (TILA) for private education loans (see below); and CRS-26 §§ 152(a)(1)(A) and 153; and TILA, § 128(e) Submit to the Secretary as an annual report; make publicly available by posting on the website of the institution and its affiliates; and include in informational materials (publications, mailings, and electronic messages) about financial aid opportunities that are distributed to prospective and current students and their families. New requirements established under the HEOA Requirement Citation Recipient of information A detailed explanation of why the IHE entered into a preferred lender arrangement with the lender, including why the terms, conditions, and provisions of each type of private student loan offered pursuant to the arrangement are beneficial to the students attending the IHE, or the families of such students, as applicable. Disclosure requirements for IHEs that provide information to prospective borrowers about private education loans IHEs that participate in a preferred lender arrangement must disclose the following information about FFEL program loans, DL program loans, and private education loans (with information about private education loans distinct from FFEL and DL program loans): That the prospective borrower may qualify for loans or other assistance under Title IV and that the terms and conditions of loans made, insured, or guaranteed under Title IV may be more favorable than those for private education loans; and The following information required to be disclosed on the model disclosure formsb developed by the Board of Governors of the Federal Reserve System under § 128(e) of the Truth in Lending Act (TILA): The potential range of applicable interest rate; Whether the applicable interest rate is variable or fixed; Any limitations on the frequency and amount of interest rate adjustments, or lack thereof; Any requirements for a co-borrower; Any potential finance charges, late fees, penalties, and adjustments to principal, based on defaults or late payments; Any applicable fees and the range of such fees; The term of the loan; Whether interest will accrue while the student on whose behalf the loan was made is enrolled; Any options for deferment of repayment; General eligibility criteria; CRS-27 §§ 152(a)(1)(B); and TILA, § 128(e) (See also §§ 487(a)(27) and 487(h)) Post on the website of the institution and its affiliates; and include in informational materials (publications, mailings, and electronic messages) about financial aid opportunities that are distributed to prospective and current students and their families. New requirements established under the HEOA Requirement Citation Recipient of information §§ 152(a)(1)(A), 153, and 154; and Post on the website of the institution and its affiliates; and include in informational materials (publications, mailings, and electronic messages) about financial aid opportunities that are distributed to prospective and current students and their families. An example of the total cost of the loan over the life of the loan, calculated using the principal amount and maximum interest rate offered; and both with and without the capitalization of interest if the option to postpone interest payments is offered; That an IHE may have school-specific loan terms and benefits not detailed on the disclosure form; That the borrower may qualify for federal student aid under Title IV in lieu of or in addition to a private education loan and that the terms and conditions of loans made under Title IV may be more favorable than those for private education loans; The interest rates available with respect to federal student loans made under Title IV; That borrowers shall have the right to accept the terms of their loan and consummate the transaction at any time within 30 days of loan approval and receipt of disclosure documents (during this period, loan terms, including the interest rate or interest rate formula may not be changed); That prior to consummation of a private education loan, borrowers must complete, sign, and return to the lender a self-certification form containing specified information to be provided by the financial aid office of their IHE; That the borrower may obtain additional information concerning federal student aid from the IHE or at a Department of Education website; and Such other information as necessary or appropriate for consumers to make informed borrowing decisions. Disclosure requirements for IHEs that participate in the DL program Each IHE that participates in the DL program must disclose the following information: A completed model disclosure form, prepared by the Secretaryc, for DL program loans containing information comparable to what will be required to be disclosed by IHEs for FFEL program loans (see above); and CRS-28 TILA, § 128(e) New requirements established under the HEOA Requirement Citation Recipient of information If the IHE provides information to prospective borrowers about private education loans (see above), the model disclosure form for DL program loans must be provided concurrently with such information. Self-Certification Form for Private Education Loans Upon the request of an applicant seeking to borrow a private education loan, an IHE must make available a self-certification formd for private education loans which contains a place to provide information on: § 155 Applicants for private education loans. The applicant’s COA at the IHE, as determined by the IHE under Title IV, Part F; The applicant’s estimated financial assistance (EFA), including amounts of financial assistance used to replace the expected family contribution (EFC), as determined by the IHE, in accordance with Title IV, for students who have completed the Free Application for Federal Student Aid (FAFSA); and The difference between the above amounts, as applicable. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; applicable regulations; and the Truth in Lending Act (TILA). Notes: a. Not later than 18 months after enactment of the HEOA, the Secretary, in coordination with the Board of Governors of the Federal Reserve System, is required to determine the minimum information that must be reported on the model disclosure form. The model disclosure form for loans offered by lenders participating in preferred lender arrangements with IHEs must be similar in format to the model disclosure form developed by the Board of Governors of the Federal Reserve System for use by lenders in disclosing information about private student loans. b. Not later than two years after enactment of the HEOA, the Board of Governors of the Federal Reserve System, in consultation with the Secretary, is required to develop and issue model disclosure forms for use by lenders of private education loans to meet the requirements of the TILA, § 128(e). c. Not later than 180 days after development of the model disclosure form developed for FFEL program loans (see footnote a, above), the Secretary must provide IHEs participating in the DL program with a completed model disclosure form for DL program loans containing information comparable to what will be required to be disclosed by IHEs for FFEL program loans. d. The Secretary, in consultation with the Board of Governors of the Federal Reserve System, is required to develop a self-certification form for private education loans which may be used by applicants to provide required information to lenders of private education loans. Student completion of the form will require some information that will be provided by IHEs. CRS-29 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Title IV, Part G—General Provisions Title IV, Part G includes a broad array of requirements and other provisions applicable to institutions that participate in Title IV programs. Part G provisions which establish requirements for IHEs to report or disclose information may be categorized into the following major areas. • Student eligibility requirements applicable to the receipt of federal student aid, including determination of eligibility and need, and verification of immigration status. • Information about the institution and its programs; the availability of, procedures to apply for, and descriptions of federal student aid programs; the institution’s transfer of credit policies; and penalties for drug-related offenses. • Entrance and exit counseling for borrowers of FFEL and DL program loans; and verification of borrower information in the National Student Loan Data System (NSLDS). • Information on athletic programs and students who receive athletically related student aid; and completion or graduation rates, both for recipients of athletically related aid and for all students. • Information on campus security, campus crime, fire safety, and missing persons procedures. • Information required as part of program participation agreements, including the reporting or disclosure of institutional and financial assistance information, information collected as part of the IPEDS surveys, information on student loan codes of conduct, and information on student loan preferred lender lists. This part of this report identifies and describes provisions specified in Title IV, Part G that require the reporting or disclosure of information by institutions that participate in Title IV programs. Student Eligibility Under Title IV, Part G, institutions are required to provide students with a determination of eligibility and need for federal aid. They are also required to provide information concerning individuals who are determined to be ineligible for federal student aid due to their immigration status to the U.S. Citizenship and Immigration Services (USCIS); and information concerning individuals determined to be ineligible for federal student loans to applicable lenders and guaranty agencies. Reporting requirements for IHEs relating to student eligibility are presented below in Table 7. Congressional Research Service 30 Table 7. Reporting Requirements for IHEs Relating to Student Eligibility Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Institutions must provide student loan applicants with a determination of eligibility or ineligibility for a Pell Grant award. § 484(b)(1) Student loan applicants. No changes. No changes. With respect to FFEL program loans made under voluntary flexible agreements with guaranty agencies, institutions must provide student loan applicants with a determination of need for a loan under § 428(a)(2)(B). § 484(b)(2) Student loan applicants. No changes. No changes. Institutions must transmit copies of the immigration documents of individuals who are not citizens or nationals of the United States to the Immigration and Naturalization Service. § 484(g)(4) U.S. Citizenship and Immigration Services (previously, this agency was called the Immigration and Naturalization Service).a No changes. No changes. Institutions that make a determination that a federal student loan has been made to an individual who has subsequently been determined to be ineligible to receive a loan due to unsatisfactory immigration status must notify and instruct the entity making the loan to cease further payments on the loan. § 484(i) Lenders of federal student loans. No changes. No changes. CRS-31 Recipient of information Changes to requirements made by the HEOA Requirement Citation Recipient of information Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information With respect to the FFEL program, if the Secretary determines that the Social Security Number provided by a student to the institution is incorrect, the IHE must notify and instruct the guaranty agency and the lender to cease further disbursements of the loan. § 484(p)(3) Guaranty agencies and lenders. Changes to requirements made by the HEOA Requirement No changes. Citation Recipient of information No changes. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; and applicable regulations. Note: a. CRS-32 The Secretary is required to compensate each IHE for 100% of the costs incurred in implementing and operating the immigration status verification system. It is presumed that IHEs must report their costs to the Secretary in order to receive compensation. Reporting Requirements for IHEs to Participate in Federal Student Aid Programs General Institutional Information and Financial Assistance Prior to enactment of the HEOA, HEA, § 485 required each institution whose students participate in HEA Title IV programs to disseminate multiple pieces of information through various means, upon request, to enrolled students and to prospective students. In addition, compliance with the requirements of § 485 has been a component of the Program Participation Agreement into which IHEs must enter with the Secretary for initial and continuing eligibility to participate in Title IV programs. (Program Participation Agreements are discussed below.) All enrolled students must be provided an annual notification about what information is available and how it may be obtained. The types of information that institutions must provide include information about available financial assistance programs, how to obtain financial aid, and conditions for receiving aid; costs of attendance; specific program costs; the institution’s academic program; facilities and services available to individuals with disabilities; the institution’s accreditation; standards for satisfactory student progress; completion or graduation rates; the ability of students to enroll in a study-abroad program that may still qualify them for federal student aid; and campus crime. An institution whose mission includes the preparation of students to enroll in another eligible institution also must provide the transfer-out rate of its certificate- or degree-seeking, full-time undergraduate students. The HEOA added several disclosure and regulatory requirements to the HEA. As previously mentioned, institutions are required, upon request, to disclose various information to current and prospective students. The HEOA expanded on these requirements to include additional information that must be disclosed, such as institutional policies and sanctions related to copyright infringement, information about student body diversity, and the placement in employment of the institution’s graduates. Additional requirements were added related to the disaggregation of completion and graduation rates, emergency response and fire safety, transfer of credit, missing person procedures, drug policy notifications, and reimbursements paid to any employees for service on advisory boards. For example, under the new transfer of credit policies, institutions must publicly disclose any criteria used to make transfer of credit determinations, and the institutions with which it has established an articulation agreement. Under the new policies relating to drug-related offenses, institutions must notify students about penalties for drug violations, including notifying students who have lost their eligibility for federal student aid due to a drug violation of the options to regain eligibility. Previously existing and new reporting requirements are detailed below in Table 8. Congressional Research Service 33 Table 8. Reporting and Disclosure Requirements for IHEs Relating to Institutional Information and Financial Assistance Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information Changes to requirements made by the HEOA Requirement Citation Recipient of information Disclosure of institutional information IHEs must annually provide all enrolled students a list of the information that is required to be provided under HEA, § 485 (see below) and FERPAa; and the procedures for obtaining such information. § 485(a) Enrolled students. No changes. Information that must be made available upon request to enrolled or prospective students includes: § 485(a) Upon request, information must be provided to enrolled and prospective students. Additional information that must be made available upon request to enrolled or prospective students includes: Information about student financial assistance programs available to students; Methods by which student financial aid is distributed to student recipients; Process for applying for student financial assistance; Rights and responsibilities of students receiving Title IV student aid; Cost of attending the institution including tuition and fees, books and supplies, estimates of room and board costs or typical commuting costs, and additional costs of the specific program in which the student is enrolled or interested; CRS-34 Any plans of the IHE for improvement of its academic program; Institutional copyright infringement policies including: (1) an annual disclosure to students explicitly stating that they may be subject to civil or criminal penalties related to the unauthorized distribution of copyrighted material; (2) a summary of the penalties for violating federal copyright laws; and (3) a description of the IHE’s policies regarding unauthorized peer-to-peer file sharing, including related disciplinary actions for unauthorized distribution of copyrighted materials on its technology system; § 485(a) No changes. Requirements in the HEA prior to the enactment of the HEOA Requirement Statement of the requirements of any refund policy with which the institution must comply for the return of Title IV grant or loan assistance, and for withdrawing from the institution; Information about the academic program of the institution, including degree and educational and training programs, physical plant facilities that relate to the academic program, and faculty and other instructional staff; Information about which staff are designated as financial assistance information personnel and methods by which and locations in which these individuals can be contacted; Special facilities and services available to disabled students; Names of agencies, associations, or governmental entities that accredit, approve, or license the institution and its programs and how documents describing the institution’s accreditation, approval, or licensing can be obtained; CRS-35 Citation Recipient of information Changes to requirements made by the HEOA Requirement Student body diversity, including information on the percentage of enrolled, fulltime students who (1) are male, (2) are female, (3) receive a Pell Grant, and (4) are a self-identified member of a major racial/ethnic group; Placement in employment of, and types of employment obtained by, graduates of degree or certificate programs gathered from relevant sources; Types of graduate and professional education in which graduates of fouryear degree programs enrolled, gathered from relevant sources; Fire safety report (see discussion below); Retention rate of certificate- or degreeseeking, first-time, full-time undergraduate students; and Institutional policies regarding vaccinations. Citation Recipient of information Requirements in the HEA prior to the enactment of the HEOA Requirement Standards students must maintain to be considered to be making “satisfactory progress”; The completion or graduation rate of certificate- or degreeseeking, full-time, undergraduate students; Terms and conditions under which students receiving federal student loans may obtain a deferral of repayment of the principal and interest or a partial cancellation of the loan for service in the Peace Corps or a comparable organization; Information that enrollment in a study-abroad program approved for credit may be considered as enrollment in the home institution for purposes of federal student aid; and The campus crime report (see below). CRS-36 Citation Recipient of information Changes to requirements made by the HEOA Requirement Information required to be provided about the completion or graduation rate of certificateor degree-seeking, full-time, undergraduate students (required prior to HEOA) must be disaggregated by: Gender; Each major racial and ethnic subgroup; Recipients of a Pell Grant; Recipients of a Subsidized Stafford Loan who did not receive a Pell Grant; and Students who neither received a Pell Grant nor a Subsidized Stafford Loan. The provision that information be provided on the terms and conditions under which students receiving federal student loans may obtain a deferral of repayment of the principal and interest or a partial cancellation of the loan for service in the Peace Corps or comparable organizations is amended to require information to be provided on the terms and conditions of loans that students receive under Title IV Part B (FFEL), Part D (DL), and Part E (Perkins Loans). Citation Recipient of information Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information Changes to requirements made by the HEOA Requirement Citation The statute is amended to also require the provision of the following: § 485(d)(1) Recipient of information Department of Education descriptions of federal student aid programs The following information, required to be made available by the Secretary, must be provided by institutions to students any time an institution provides information regarding the availability of loans: Descriptions of federal assistance programs, including the rights and responsibilities of student and institutional participants; Information to enable students and prospective students to assess the debt burden and monthly and total repayment obligations that will be incurred as a result of receiving Title IV loans of various amounts; Information to enable borrowers to assess the practical consequences of loan consolidation, including differences in deferment eligibility, interest rates, monthly payments, and finance charges, and samples of loan consolidation profiles to illustrate such consequences; CRS-37 § 485(d)(1) Students. Information on the various payment options available for student loans, including income-sensitive and income-based repayment plans for FFEL program loans, and income-sensitive and income-based repayment plans for DL program loans. Students. Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information Changes to requirements made by the HEOA Requirement Citation Recipient of information Information on the specific terms and conditions under which students may obtain partial or total cancellation or may defer repayment for certain types of employment or service, and the maximum compensation a borrower may earn (expressed in terms of the federal minimum wage) to qualify for a deferment; and Information on loan forbearance, including the increase in debt that results from capitalization of interest. Transfer of credit policies Not applicable. Not applicable. Not applicable. Each IHE must disclose a statement of its current transfer of credit policies, which at a minimum, must include: § 485(h) Information must be publicly disclosed. § 485(k)(1) Newly enrolled students. Any established criteria the IHE uses regarding the transfer of credit from another institution; and A list of institutions with which it has established an articulation agreement. Penalties for drug-related offenses Not applicable. CRS-38 Not applicable. Not applicable. Each institution must provide to each student, upon enrollment, a “separate, clear, and conspicuous written notice” that details the penalties related to drug-related offenses.b Requirements in the HEA prior to the enactment of the HEOA Requirement Not applicable. Citation Not applicable. Recipient of information Not applicable. Changes to requirements made by the HEOA Requirement Citation Recipient of information For each student who loses eligibility for any Title IV grant, loan, or work study assistance as a result of a drug-related offense, the IHE must provide a “separate, clear, and conspicuous written notice,” in a timely manner, that notifies that student of the loss of eligibility and details the ways in which the student can regain eligibility under §484(r)(2).c § 485(k)(2) Students who lose their eligibility for any Title IV grant, loan, or work-study assistance as a result of a drug-related offense. IHEs must annually report any reasonable expenses paid or provided to reimburse any employee of its financial aid office or who otherwise has responsibilities with respect to student loans or financial aid for reasonable expenses incurred for service on an advisory board, commission, or a group established by a private educational lender, including the following: § 485(m); The Secretary. Disclosures of reimbursement for service on advisory boards Not applicable. Not applicable. Not applicable. The amount for each specific instance of reasonable expenses paid or provided; The name of the individual to whom the expenses were paid or provided; The dates of the activity for which expenses were paid or provided; and CRS-39 TILA, § 140(d) Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information Changes to requirements made by the HEOA Requirement Citation Recipient of information A brief description of the activity for which expenses were paid or provided. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; applicable regulations; and the Truth in Lending Act (TILA). a. Section 444 of the General Education Provisions Act (GEPA) is commonly referred to as The Family Educational Rights and Privacy Act (FERPA). For additional information on the requirements of FERPA, see CRS Report RS22341, The Family Educational Rights and Privacy Act (FERPA): A Legal Overview, by (name redacted). b. For more information on drug-related offenses, see § 484(r). c. A student may regain eligibility for Title IV aid by completing a drug rehabilitation program or if the conviction is reversed, set aside, or otherwise negated. CRS-40 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Entrance Counseling and Exit Counseling According to statutory and regulatory provisions in effect prior to the enactment of the HEOA, IHEs are required to ensure that student borrowers of FFEL and DL program loans receive initial counseling and exit counseling. Department of Education regulations specify requirements for initial counseling, while statutory provisions specify requirements for exit counseling.24 Initial counseling, or entrance counseling, must be provided before the first disbursement of the loan. The counseling must include an explanation of the Master Promissory Note (MPN), the significance of the borrower assuming an obligation to repay a student loan, the consequences of default, sample repayment schedules, the borrower’s rights and responsibilities with respect to the loan, and the terms and conditions of the loan. Exit counseling must be provided before a student who has borrowed a FFEL or DL program loan leaves school. Exit counseling includes a review of the information provided during entrance counseling; an estimate of average anticipated monthly payments based on the borrower’s actual student loan debt or the average student loan debt of borrowers in the same program at the same school; available repayment options; debt management strategies; options for deferment, forbearance, forgiveness, and discharge; notification that the borrower’s loan history is available through NSLDS; and information about whom the borrower may contact regarding questions about the terms and conditions of his or her loan (i.e., the Department of Education Student Loan Ombudsman). The HEOA amended the HEA to specify statutory requirements for entrance counseling and to add additional statutory requirements for exit counseling. New requirements for exit counseling include the provision of information about the option to pay the interest as it accrues on Unsubsidized Stafford Loans and PLUS Loans while the borrower is in school; the importance of contacting the IHE in the case of early withdrawal so that exit counseling can be provided; the effects of consolidating one or more FFEL, DL, or Perkins Loans into a Consolidation Loan on the terms and conditions of the underlying loan or loans; and a description of tax benefits available to borrowers.25 The HEOA also amended the HEA by adding a requirement that institutions inform borrowers of loans made under the FFEL, DL, and Perkins Loan programs that information about their loans will be submitted to NSLDS and will be accessible to guaranty agencies, lenders, and institutions that are determined by the Secretary to be authorized users of NSLDS. Information on requirements applicable to institutions with respect to the disclosure of information as part of entrance counseling, exit counseling, and NSLDS is presented in Table 9. 24 HEA, § 485(l); and 34 CFR §§ 682.204, 682.204, and 685.304. 25 Additional information on the various types of FFEL and DL program loans is presented in CRS Report R40122, Federal Student Loans Made Under the Federal Family Education Loan Program and the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers, by (name redacted). Congressional Research Service 41 Table 9. Reporting Requirements for IHEs Relating to Entrance Counseling, Exit Counseling, and NSLDS Requirements in the HEA prior to the enactment of the HEOA Requirement Changes to requirements made by the HEOA Citation Recipient of information Requirement 34 CFR §§ 682.604(f), 682.603(d), and 685.304(a) First-time borrowers of FFEL and DL program loans (other than Parent PLUS Loans and Consolidation Loans). The HEOA establishes statutory requirements for entrance counseling. (Prior requirements were specified in regulations.) Institutions must provide entrance counseling on the terms and conditions of loans and the responsibilities of borrowing to firsttime borrowers of FFEL and DL program loans. The following information must be provided in a simple and understandable manner: Citation Recipient of information Entrance counseling With respect to FFEL and DL program loans, institutions must ensure that initial counseling is conducted with each first-time borrower of a Stafford Loan or a PLUS Loan prior to the first disbursement. The initial counseling must: Explain the use of a Master Promissory Note; Emphasize the seriousness and importance of the repayment obligation the student borrower is assuming; The effect that accepting the loan will have on the borrower’s eligibility for other forms of student aid; Describe the likely consequences of default, including adverse credit reports, federal offset, and litigation; An explanation of the use of the Master Promissory Note; Emphasize the obligation to repay the full amount of the loan even if the borrower does not complete the program, is unable to obtain employment upon completion of the program, or is otherwise dissatisfied with or does not receive the educational or other services purchased from the school; CRS-42 Information on how interest accrues and is capitalized during periods when it is not paid by either the borrower or the Secretary; The option to pay the interest that accrues on Unsubsidized Stafford Loans and PLUS Loans while the borrower is in school; The institution’s definition of halftime enrollment during regular and summer terms, and the consequences of not maintaining half-time enrollment; § 485(l) First-time borrowers of FFEL and DL program loans (other than Parent PLUS Loans and Consolidation Loans). Requirements in the HEA prior to the enactment of the HEOA Requirement Provide sample monthly repayment amounts based on a range of student levels of indebtedness or on the average indebtedness of Stafford loan borrowers, or borrowers with Stafford and PLUS loans, depending on the types of loans the borrower has obtained at the same school or in the same program of study at the same school; and Provide graduate and professional students who previously borrowed Stafford Loans with a comparison between Stafford Loans and PLUS Loans with respect to the maximum interest rate, periods when interest accrues, and when repayment begins. In addition, with respect to DL program loans, initial counseling must; Review available repayment plan options and loan consolidation; and Review the conditions for obtaining loan deferment, forbearance, forgiveness, and discharge benefits. CRS-43 Citation Recipient of information Changes to requirements made by the HEOA Requirement An explanation of the importance of contacting the institution in the case of withdrawing prior to the completion of a program of study so that exit counseling can be provided; Sample monthly repayment amounts based on a range of levels of indebtedness of borrowers and the average cumulative indebtedness of borrowers in the same program; The obligation of the borrower to repay the loan in full regardless of whether the borrower completes the program within the regular time for program completion; The likely consequences for default, including adverse credit reports, federal delinquent debt collection procedures, and litigation; Information on the National Student Loan Data System (NSLDS; see below) and how the borrower can access his or her records; and The name and contact information for whom the borrower may contact with any questions about his or her rights and responsibilities, or the loan’s terms and conditions. Citation Recipient of information Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information Changes to requirements made by the HEOA Requirement Citation Recipient of information The HEOA amended the HEA to specify that the exception to the requirement to make available exit counseling applies to borrowers of Parent PLUS Loans and Consolidation Loans. § 485(b)(1) Borrowers of federal student loans (other than Parent PLUS Loans and Consolidation Loans) Exit counseling Institutions must make available exit counseling to borrowers of federal student loans made under the FFEL, DL, and Perkins Loan programs, (other than PLUS Loans) prior to the completion of their studies or at their departure from the institution. Exit counseling must: Provide sample monthly repayment amounts based on a range of student levels of indebtedness or on the average indebtedness of Stafford loan borrowers, or borrowers with Stafford and PLUS loans, depending on the types of loans the borrower has obtained at the same school or in the same program of study at the same school; Review available repayment plan options, and loan consolidation; Suggest debt management strategies designed to facilitate debt repayment; Review the conditions for obtaining loan deferment, forbearance, forgiveness, and discharge benefits; Require the borrower to provide current contact information as specified in § 485(b)(2) (see below); CRS-44 § 485(b)(1); 34 CFR §§ 682.604, and 685.304 Borrowers of federal student loans (other than PLUS Loans) The HEOA also amends the HEA to require that exit counseling include the following statutory provisions: The repayment plans available, including a description of the different features of each plan and sample information showing average monthly payments and differences in interest paid and total payments under each plan; Debt management strategies designed to facilitate debt repayment; An explanation that borrowers may prepay each loan, pay each loan on a shorter schedule, and change repayment plans; A description of the terms and conditions of Title IV programs under which borrowers may obtain full or partial loan forgiveness, cancellation of principal and interest, or forbearance, including a copy of information on such provided by the Secretary under § 485(d) (see below); Requirements in the HEA prior to the enactment of the HEOA Requirement Review information on the availability of the Student Loan Ombudsman’s office; and Inform the borrower of the availability of Title IV student loan information in NSLDS. Citation Recipient of information Changes to requirements made by the HEOA Requirement The consequences of defaulting on a loan, including adverse credit reports, delinquent debt collection procedures under federal law, and litigation; Information on the effects of using a FFEL or DL program Consolidation Loan to discharge the borrower’s FFEL, DL, or Perkins Loan program loans, including: The effects of consolidation on length of repayment and total interest and fees paid; The effects of consolidation on underlying loan benefits, including grace periods, loan forgiveness, cancellation, and deferment opportunities; The option to prepay or change repayment plans; and That borrower benefit programs may vary among different lenders. A general description of tax benefits available to borrowers; and A notice about the availability of NSLDS and how to use it to obtain information on the status of the borrower’s loans. CRS-45 Citation Recipient of information Requirements in the HEA prior to the enactment of the HEOA Requirement Institutions must collect the following information from students during exit counseling and, within 60 days, forward such information to the applicable guaranty agency: Citation Recipient of information Changes to requirements made by the HEOA Requirement § 485(b)(2) Guaranty agencies. No changes. Not applicable. Not applicable. Institutions that enter into an agreement with a potential student, student, or parent of a student regarding a loan under the FFEL, DL, or Perkins Loan programs must inform the student or the parent of the following about the loan: Citation Recipient of information No changes. The borrower’s expected permanent address; the name and address of the borrower’s expected employer; the address of the borrower’s next of kin; and any corrections to the IHE’s records relating to the borrower’s name, address, SSN, references, and driver’s license number. National Student Loan Data System Not applicable. § 485B(d)(4) Borrowers of federal student loans. The loan will be submitted to NSLDS; and The loan will be accessible to guaranty agencies, lenders, and IHEs that are determined by the Secretary to be authorized users of NSLDS. Source: Prepared by CRS based on an analysis of the Higher Education Act (HEA) of 1965, as amended prior to August 2008; amendments to the HEA made by the Higher Education Opportunity Act (P.L. 110-315) and P.L. 111-39; and applicable regulations. CRS-46 Reporting Requirements for IHEs to Participate in Federal Student Aid Programs Athletically Related Student Aid and Athletic Programs Institutions at which students receive athletically related student aid are required to annually report to the Secretary by July 1 on the number of participating students by sport, race, and sex; completion or graduation rates by race and sex in specific sports for the current year and average of the four most recent years; and the completion or graduation rate for all students by race and sex for the current year and average of the four most recent years. The information must also be provided to prospective athletically related aid recipients and their parents, guidance counselors, and coaches. These requirements may be waived by the Secretary for an institution that is a member of an athletic association or conference that voluntarily publishes completion or graduation rate data (or has agreed to publish such data), if the Secretary determines the published information is comparable to the aforementioned information (HEA § 485(e); and 34 CFR §§ 668.41 and 668.48). Any coeducational institution participating in Title IV programs and that has an intercollegiate athletic program must annually report information on team composition, operating expenses, coaches, the ratio of athletically related aid for men versus women, revenues for men’s and women’s teams, and related data. A report on athletic program participation rates and financial support data must be made available to students and potential students, upon request, and to the public. Enrolled students must be informed of their right to request the information. The report must be provided to ED within 15 days of the institution making the report available to students and the public.26 (HEA § 485(g); and 34 CFR 668.14, 668.41, and 668.47; OMB No. 18450010).) Reporting requirements for IHEs with respect to athletically related student aid and athletic programs are presented in Table 10. 26 For more information, see the U.S. Department of Education’s Equity in Athletics Disclosure Act website at http://surveys.ope.ed.gov/athletics/index.aspx. A facsimile of the online collection instrument is available at http://surveys.ope.ed.gov/athletics/BlankFormsView.aspx?id=1. Congressional Research Service 47 Table 10. Reporting Requirements for IHEs with Respect to Athletically Related Student Aid and Athletic Programs Requirements in the HEA prior to the enactment of the HEOA Changes to requirements made by the HEOA Requirement Citation Recipient of information Requirement Each institution that has students receiving athletically related aid must report: § 485(e)(1) Report must be submitted to the Secretary annually. All of the required information included in the HEA prior to the enactment of the HEOA must be disaggregated by: The number of students who received athletically related aid by race and sex for students participating in basketball, football, baseball, cross country/track, and all other sports combined; Total number of students by race and sex; Completion or graduation rate for students who received athletically related aid by race and sex for students participating in basketball, football, baseball, cross country/track, and all other sports combined; Completion or graduation rate for all students by race and sex; The average completion or graduation rate for the four most recent completing or graduating classes of students who received athletically related aid by race and sex for students participating in basketball, football, baseball, cross country/track, and all other sports combined; and The average completion or graduation rate for the four most recent completing or graduating classes of students by race and sex. CRS-48 Report must also be provided to any student to whom athletically related aid is offered and the student’s parents, guidance counselor, and coach. Gender; Each major racial and ethnic subgroup; Recipients of a Pell Grant; Recipients of a Subsidized Stafford Loan who did not receive a Pell Grant; and Students who received neither a Pell Grant nor a Subsidized Stafford Loan. Citation § 485(a)(7) Recipient of information No changes. Requirements in the HEA prior to the enactment of the HEOA Requirement Citation Recipient of information Each coeducational institution that has an intercollegiate athletic program must report the following information: § 485(g)(1), § 485(g)(3), and § 485(e)(4) Report must be submitted to the Secretary annually. Number of male and female fulltime undergradua [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3AR40789. Public record. Not legal advice.