1. Short title
This Act may be cited as the “Proprietary Institution of Higher Education Accountability Act” .
Proprietary Institution of Higher Education Accountability Act
A BILL
To clarify the calculation of cohort default rates for proprietary institutions of higher education under the Higher Education Act of 1965.
2. Clarification of cohort default rate
Section 435(m)(1) of the Higher Education Act of 1965 (20 U.S.C. 1085(m)(1)) is amended—
in subparagraph (B), by inserting after the first sentence the following: “In calculating the cohort default rate for a proprietary institution of higher education, the Secretary shall treat current and former students at the institution who have been granted, on loans made under part D and received for attendance at the institution, a forbearance or deferment described in subparagraph (D) for any period exceeding 6-months after entering repayment on such loans and before the end of the second fiscal year following the fiscal year in which such students entered such repayment, as students who have defaulted on such loans before the end of such second fiscal year.”; and
by adding at the end the following new subparagraph:
“(D) For purposes of subparagraph (B)—
“(i) the term “forbearance” means a forbearance granted for a reason described in subparagraph (A)(i)(II) or subparagraph (B) of section 428(c)(3); and
“(ii) the term “deferment” means a deferment granted for a reason described in subparagraph (B) or (D) of section 455(f)(2).”