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Division B — Providing Relief to Students, Institutions of Higher Education, Local Educational Agencies, and State Vocational Rehabilitation Agencies

H.R. 8406 · 116th Congress · Sep 29, 2020 · Lineage

B Providing Relief to Students, Institutions of Higher Education, Local Educational Agencies, and State Vocational Rehabilitation Agencies

Sec. 100 Short title

This division may be cited as the “Pandemic Education Response Act”.

I Higher Education Provisions

Sec. 101 Definitions

In this title:
(1)
Award year— The term award year has the meaning given the term in section 481(a) of the Higher Education Act of 1965 (20 U.S.C. 1088(a)).
(2)
Authorizing committees— The term authorizing committees has the meaning given the term in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003).
(3)
FAFSA— The term FAFSA means an application under section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090) for Federal student financial aid.
(4)
Institution of higher education— The term institution of higher education has the meaning given the term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
(5)
Qualifying emergency— The term qualifying emergency has the meaning given the term in section 3502 of the CARES Act (Public Law 116–136), as amended by this Act.
(6)
Qualifying emergency period— The term qualifying emergency period means the period—
(A)
beginning on the first day of a qualifying emergency; and
(B)
ending on the later of the date on which the qualifying emergency expires or June 30, 2021.
(7)
Secretary— The term Secretary means the Secretary of Education.

A Cares Act Amendments

Sec. 111 Application of campus-based aid waivers

(a)
Application— Section 3503 of the CARES Act is amended—
(1)
in subsection (a)—
(A)
by inserting “or for any other award year that includes any portion of a qualifying emergency period,” after “2020–2021,”; and
(B)
by inserting “and a nonprofit organization providing employment under section 443(b)(5) of such Act” after “waive the requirement that a participating institution of higher education”; and
(2)
in subsection (b), by striking “during a period of a qualifying emergency” and inserting “during any award year that includes any portion of a qualifying emergency period”.
(b)
Effective date— The amendments made by subsection (a) shall take effect as if included in the enactment of the CARES Act (Public Law 116–136).

Sec. 112 Supplemental Educational Opportunity Grants for emergency aid

(a)
Use and treatment— Section 3504 of the CARES Act (Public Law 116–136) is amended—
(1)
in subsection (a), by inserting “that includes any portion of a qualifying emergency period” after “for a fiscal year”; and
(2)
by striking subsection (c).
(b)
Effective date— The amendments made by subsection (a) shall take effect as if included in the enactment of the CARES Act (Public Law 116–136).

Sec. 113 Extension of Federal work-study during a qualifying emergency

(a)
Federal work-study during a qualifying emergency— Section 3505 of the CARES Act (Public Law 116–136) is amended—
(1)
in subsection (a)—
(A)
in the matter preceding paragraph (1)—
(i)
by striking “In the event of a qualifying emergency” and inserting “During a qualifying emergency period”; and
(ii)
by striking “(not to” and all that follows through the semicolon and inserting “in which affected students are unable to fulfill the students’ work-study obligation due to such qualifying emergency, as follows:”;
(B)
in paragraph (1), by striking “as a one time grant” and inserting “as a one-time grant in each payment period the student is awarded work-study”; and
(C)
in paragraph (2), by striking “or was not completing the work obligation necessary to receive work study funds under such part prior to the occurrence of the qualifying emergency”; and
(2)
in subsection (b)—
(A)
in paragraph (1)—
(i)
by striking “for the academic year during which a qualifying emergency occurred;” and inserting “for an academic year that includes any portion of a qualifying emergency period; and”; and
(B)
by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).
(b)
Effective date— The amendments made by subsection (a) shall take effect as if included in the enactment of the CARES Act (Public Law 116–136).

Sec. 114 Service obligations for teachers and other professionals

(a)
Amendment— Section 3519 of the CARES Act (Public Law 116–136) is amended—
(1)
in the section heading, by inserting “and other professionals” after “teachers”; and
(2)
by adding at the end the following:

“(c) Federal Perkins Loans—Notwithstanding section 465 of the Higher Education Act of 1965 (20 U.S.C. 1087ee), the Secretary shall waive the requirements of such section in regard to full-time service and shall consider an incomplete year of service of a borrower as fulfilling the requirement for a complete year of service under such section, if the service was interrupted due to a qualifying emergency.”

(b)
Effective date— The amendments made by subsection (a) shall take effect as if included in the enactment of the CARES Act (Public Law 116–136).

Sec. 115 Continuing education at affected foreign institutions

(a)
In general— Section 3510 of the CARES Act (20 U.S.C. 1001 note) is amended—
(1)
in subsection (a), by striking “for the duration of such emergency” and all that follows through the period at the end and inserting “for purposes of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) until the end of the covered period applicable to the institution.”;
(2)
in subsection (b), by striking “for the duration of the qualifying emergency and the following payment period for purposes of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).” and inserting “until the end of the covered period applicable to the institution.”;
(3)
in subsection (c), by striking “for the duration of the qualifying emergency and the following payment period,” and inserting “until all covered periods for foreign institutions carrying out a distance education program authorized under this section have ended,”;
(4)
in subsection (d)—
(A)
in paragraph (1)—
(i)
by striking “for the duration of a qualifying emergency and the following payment period,” and inserting “until the end of the covered period applicable to a foreign institution,”; and
(ii)
by striking “allow a foreign institution” and inserting “allow the foreign institution”;
(B)
in each of subparagraphs (A) and (B) of paragraph (2), by striking “subsection (a)” and inserting “paragraph (1)”;
(C)
in paragraph (3)(B), by striking “30 days” and inserting “10 days”; and
(D)
in paragraph (4)—
(i)
by striking “for the duration of the qualifying emergency and the following payment period,” and inserting “until all covered periods for foreign institutions that entered into written arrangements under paragraph (1) have ended,”; and
(ii)
by striking “identifies each foreign institution that entered into a written arrangement under subsection (a).” and inserting the following:

“(A) the name of the foreign institution;

“(B) the name of the institution of higher education located in the United States that has entered into a written arrangement with such foreign institution; and

“(C) information regarding the nature of such written arrangement, including which coursework or program requirements are accomplished at each respective institution.”

(5)
by adding at the end the following:

“(e) Definition of covered period

“(1) In general—In this section, the term covered period, when used with respect to a foreign institution of higher education, means the period—

“(A) beginning on the first day of—

“(i) a qualifying emergency; or

“(ii) a public health emergency, major disaster or emergency, or national emergency declared by the applicable government authorities in the country in which the foreign institution is located; and

“(B) ending on the later of—

“(i) subject to paragraph (2), the last day of the payment period, for purposes of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), following the end of any qualifying emergency or any emergency or disaster described in subparagraph (A)(ii) applicable to the foreign institution; or

“(ii) June 30, 2022.

“(2) Special rule for certain payment periods—For purposes of subparagraph (B)(i), if the following payment period for an award year ends before June 30 of such award year, the covered period shall be extended until June 30 of such award year.”

(b)
Effective date— The amendments made by subsection (a) shall take effect as if included in the enactment of the CARES Act (Public Law 116–136).

Sec. 116 Funding for HBCU capital financing; endowment challenge grants

(a)
Funding for HBCU capital financing—
(1)
Amendments— Section 3512 of division A of the Coronavirus Aid, Relief, and Economic Security Act (20 U.S.C. 1001 note) is amended—
(A)
in subsection (a)—
(i)
in paragraph (1), by striking “may” and inserting “shall”; and
(ii)
in paragraph (2)—
(I)
in subparagraph (A), by striking “or interest” and inserting “or interest, or any applicable fees or required funds,”; and
(II)
in subparagraph (B)—
(aa)
by striking “payments” and inserting “payments, and any payments of applicable fees and required funds,”; and
(bb)
by striking the period and inserting “; and”; and
(III)
by adding at the end the following:

“(C) the institution may pay, without penalty, any periodic installment of principal or interest required under the loan agreement for such loan.”

(B)
in subsection (d), by striking “$62,000,000” and inserting “such sums as may be necessary”.
(2)
Effective date— The amendments made by this subsection shall take effect as if enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136).
(b)
Endowment challenge grants— For the duration of a qualifying emergency (as defined in section 3502 of the Coronavirus Aid, Relief, and Economic Security Act (20 U.S.C. 1001 note)), notwithstanding the provisions of subsections (b)(3), (c)(3)(B), and (d) of section 331 of the Higher Education Act of 1965 (20 U.S.C. 1065) applicable during the grant period for an endowment challenge grant awarded to an institution under such section 331 (20 U.S.C. 1065), the institution may use the endowment fund corpus plus any endowment fund income—
(1)
for any educational purpose; or
(2)
to defray any expenses necessary to the operation of the institution, including expenses of operations and maintenance, administration, academic and support personnel, construction and renovation, community and student services programs, and technical assistance.

Sec. 117 Waiver authority for institutional aid

(a)
In general— Section 3517(a)(1)(D) of the CARES Act (Public Law 116–136) is amended by striking “(b), (c), and (g)” and inserting “(b) and (c)”.
(b)
Effective date— The amendment made by subsection (a) shall take effect as if included in the enactment of the CARES Act (Public Law 116–136).

Sec. 118 Scope of modifications to required and allowable uses

(a)
Amendment to include Minority Science and Engineering Improvement Program— Subsection (a) of section 3518 of the CARES Act (Public Law 116–136) is amended—
(1)
by striking “part A or B of title III,” and inserting “part A, part B, or subpart 1 of part E of title III,”; and
(2)
by inserting “1067 et seq.;” after “1060 et seq.;”.
(b)
Amendment to matching requirement modifications— Subsection (b) of section 3518 of the CARES Act (Public Law 116–136) is amended—
(1)
by striking “Notwithstanding” and inserting the following:

“(1) In general—Notwithstanding”

(2)
in paragraph (1), as so designated by this subsection—
(A)
by striking “is authorized to” and inserting “shall”; and
(B)
by striking “share” and inserting “share, non-Federal share,”; and
(3)
by adding at the end the following new paragraph:

“(2) Waiver of GEAR UP matching requirement

“(A) In general—Notwithstanding section 404C(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a–23(b)), the Secretary shall waive, for the duration of the period described in subparagraph (B), any requirement for an eligible entity (as defined in section 404A(c) (20 U.S.C. 1070a–21(c))) to provide a percentage of the cost of the program authorized under chapter 2 of subpart 2 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–21 et seq.) from State, local, institutional, or private funds.

“(B) Description of period—The period described in this subparagraph is the period beginning on the first day of a qualifying emergency and ending on September 30 of the fiscal year following the end of the qualifying emergency.”

(c)
Amendment to clarify scope of authority— Section 3518 of the CARES Act (Public Law 116–136) is further amended by adding at the end the following new subsection:

“(d) Scope of authority—Notwithstanding subsection (a), the Secretary may not modify the required or allowable uses of funds for grants awarded under chapter I or II of subpart 2 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a–11 et seq.; 1070a–21 et seq.), in a manner that deviates from the overall purpose of the grant program, as provided in the general authorization, findings, or purpose of the grant program under the applicable statutory provision cited in such chapter.”

(d)
Effective date— The amendments made by this section shall take effect as if included in the enactment of the CARES Act (Public Law 116–136).

B Financial Aid Access

Sec. 121 Emergency financial aid grants excluded from need analysis

(a)
Treatment of emergency financial aid grants for need analysis— Notwithstanding any provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), emergency financial aid grants—
(1)
shall not be included as income or assets (including untaxed income and benefits under section 480(b) of the Higher Education Act of 1965 (20 U.S.C. 1807vv(b))) in the computation of expected family contribution for any program funded in whole or in part under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.); and
(2)
shall not be treated as estimated financial assistance for the purposes of section 471 or section 480(j) of the Higher Education Act of 1965 (20 U.S.C. 1087kk; 1087vv(j)).
(b)
Definition— In this section, the term emergency financial aid grant means—
(1)
an emergency financial aid grant awarded by an institution of higher education under section 3504 of the CARES Act (Public Law 116–136);
(2)
an emergency financial aid grant from an institution of higher education made with funds made available under section 18004 of the CARES Act (Public Law 116–136); and
(3)
any other emergency financial aid grant to a student from a Federal agency, a State, an Indian tribe, an institution of higher education, or a scholarship-granting organization (including a tribal organization, as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)) for the purpose of providing financial relief to students enrolled at institutions of higher education in response to a qualifying emergency.

Sec. 122 Facilitating access to financial aid for recently unemployed students

(a)
Treatment as dislocated worker—
(1)
In general— Notwithstanding section 479(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 1087ss(d)(1)), any individual who has applied for, or who is receiving, unemployment benefits at the time of the submission of a FAFSA for a covered award year shall be treated as a dislocated worker for purposes of the need analysis under part F of title IV such Act (20 U.S.C. 1087kk et seq.) applicable to such award year.
(2)
Information to applicants and institutions— The Secretary—
(A)
for each covered award year, shall ensure that—
(i)
any question on the FAFSA used to determine whether an applicant (or, as applicable, a spouse or parent of an applicant) is a dislocated worker includes an express reference to individuals who have been laid off;
(ii)
any help text associated with a question described in clause (i) includes a description of an applicant’s treatment as a dislocated worker under paragraph (1); and
(iii)
the FAFSA includes a prominent notification, appearing immediately before questions related to tax returns or income that, if the applicant (or, as applicable, a spouse or parent of an applicant) has lost significant income earned from work due to a qualifying emergency, the applicant should contact the financial aid administrator at the institution where the applicant plans to enroll to provide current income information;
(B)
in consultation with institutions of higher education, shall carry out activities to inform applicants for Federal student financial aid under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)—
(i)
of the treatment of individuals who have applied for, or who are receiving, unemployment benefits as dislocated workers under paragraph (1);
(ii)
of the availability of means-tested Federal benefits for which such applicants may be eligible; and
(iii)
of the ability of a financial aid administrator of an institution of higher education to use professional judgment as authorized under section 479A of the Higher Education Act of 1965 (20 U.S.C. 1087tt) and in accordance with subsection (b), to determine, where appropriate, that income earned from work is zero and consider unemployment benefits to be zero, if the applicant (or, as applicable, a spouse or parent of an applicant) has applied for or is receiving unemployment benefits;
(C)
shall carry out activities to inform institutions of higher education of the authority of such institutions, with explicit written consent of an applicant for Federal student financial aid under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), to provide information collected from such applicant’s FAFSA to an organization assisting the applicant in applying for and receiving Federal, State, local, or tribal assistance in accordance with section 312 of the Department of Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (Public Law 115– 245); and
(D)
in consultation with the Secretary of Labor, shall carry out activities to inform applicants for, and recipients of, unemployment benefits of the availability of Federal student financial aid under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) and the treatment of such applicants and recipients as dislocated workers under paragraph (1).
(3)
Implementation— The Secretary shall implement this subsection not later than 30 days after the date of enactment of this Act.
(4)
Applicability— Paragraph (1) shall apply with respect to a FAFSA submitted on or after the earlier of—
(A)
the date on which the Secretary implements this subsection under paragraph (3); or
(B)
the date that is 30 days after the date of enactment of this Act.
(b)
Professional judgment of financial aid administrators— For the purposes of making a professional judgment as authorized under section 479A of the Higher Education Act of 1965 (20 U.S.C. 1087tt), a financial aid administrator may, during a covered award year—
(1)
determine that the income earned from work for a student, or a parent or spouse of a student, as applicable, is zero, if the student, parent, or spouse provides paper or electronic documentation of receipt of unemployment benefits or confirmation that an application for unemployment benefits was submitted;
(2)
consider the value of unemployment benefits for such student, parent, or spouse to be zero; and
(3)
make appropriate adjustments to the data items on the FAFSA for a student, parent, or spouse, as applicable, based on the totality of the family’s situation.
(c)
Unemployment documentation— For the purposes of documenting unemployment benefits or application for such benefits under subsection (b), such documentation shall be accepted if such documentation is submitted not more than 90 days from the date on which such documentation was issued, unless a financial aid administrator knows that the student, parent, or spouse, as applicable, has already obtained other employment.
(d)
Adjustments to program review model— The Secretary shall make adjustments to the model used to select institutions of higher education participating in title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) for program reviews, in order to—
(1)
account for any rise in the use of professional judgment as authorized under section 479A of such Act (20 U.S.C. 1087tt) during the 2020–2021 and 2021–2022 award years; and
(2)
ensure that institutions are not penalized for an increase in the use of professional judgment during such award years.
(e)
Definitions— In this section:
(1)
Covered award year— The term covered award year means—
(A)
an award year during which there is a qualifying emergency; and
(B)
the first award year beginning after the end of such qualifying emergency.
(2)
Means-tested Federal benefit— The term means-tested Federal benefit includes the following:
(A)
The supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.).
(B)
The supplemental nutrition assistance program under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
(C)
The free and reduced price school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.).
(D)
The program of block grants for States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).
(E)
The special supplemental nutrition program for women, infants, and children established by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).
(F)
The Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).
(G)
The tax credits provided under the following sections of the Internal Revenue Code of 1986 (title 26, United States Code):
(i)
Section 25A (relating to American Opportunity and Lifetime Learning credits).
(ii)
Section 32 (relating to earned income).
(iii)
Section 36B (relating to refundable credit for coverage under a qualified health plan).
(iv)
Section 6428 (relating to 2020 recovery rebates for individuals).
(H)
Federal housing assistance programs, including tenant-based assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), and public housing, as defined in section 3(b)(1) of such Act (42 U.S.C. 1437a(b)(1)).
(I)
Such other Federal means-tested benefits as may be identified by the Secretary.

Sec. 123 Student eligibility for higher education emergency relief fund and other higher education funds

(a)
In general— With respect to student eligibility for receipt of funds provided under section 18004 of the CARES Act (Public Law 116–136) and under title VIII of division A of this Act—
(1)
the Secretary is prohibited from imposing any restriction on, or defining, the populations of students who may receive such funds other than a restriction based solely on the student’s enrollment at the institution of higher education; and
(2)
section 401(a) the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611(a)) shall not apply.
(b)
Effective date— Subsection (a) shall take effect as if included in the enactment of the CARES Act (Public Law 116–136), and an institution of higher education that provided funds to a student before the date of enactment of this Act shall not be penalized if such provision is consistent with such subsection and section 18004 of the CARES Act (Public Law 116–136).

Sec. 124 Distance education

(a)
Definition of distance education—
(1)
In general— Notwithstanding section 103(7) of the Higher Education Act of 1965 (20 U.S.C. 1003(7)) and except as otherwise specified in section 486 of the Higher Education Act of 1965 (20 U.S.C. 1093), the term distance education as used in title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) shall have the meaning given that term in section 600.2 of title 34, Code of Federal Regulations, as amended by the final regulations entitled “Distance Education and Innovation” published by the Department of Education in the Federal Register on September 2, 2020 (85 Fed. Reg. 54809), or any succeeding regulations.
(2)
Information to accrediting agency— Not later than 90 days after the date of enactment of this Act, each institution of higher education that participates in a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) and that provides one or more educational programs through distance education shall submit to the institution’s accrediting agency or association, a description of how the institution plans to meet the requirements of this subsection.
(3)
Effective date— This subsection shall take effect with respect to any semester (or the equivalent) that begins on or after December 1, 2020.
(b)
Approval for expanded distance education—
(1)
In general—
(A)
In general— Notwithstanding section 481(b)(3) of the Higher Education Act of 1965 (20 U.S.C. 1088(b)(3)), an institution of higher education described in subparagraph (B) may deliver distance education by offering programs in whole or in part through telecommunications and be eligible to participate in a program under title IV if such institution meets the requirements of paragraphs (2) through (4).
(B)
Institution of higher education— An institution of higher education described in this subparagraph is an institution of higher education that uses or expands distance education—
(i)
in accordance with the flexibilities and waivers provided under the guidance of the Secretary on distance education; and
(ii)
without following—
(I)
the standard approval process for distance education (as in effect before March 5, 2020) of the Secretary; or
(II)
the evaluation process of institution’s accrediting agency or association described in paragraph (2)(A).
(2)
Commencement of evaluation process with the institution’s accrediting agency—
(A)
In general— Not later than December 31, 2020, each institution described in paragraph (1)(B) shall demonstrate to the Secretary that such institution has commenced the evaluation process with its accrediting agency or association for the purpose of evaluating distance education to determine whether such institution has the capability to—
(i)
effectively deliver distance education programs; and
(ii)
meet the applicable policies and procedures of the accrediting agency or association (as such policies and procedures were in effect before March 5, 2020).
(B)
Accrediting agency or association— In a case in which an accrediting agency or association does not have distance education in the scope of its recognition at the time an institution commences the evaluation process described in this paragraph, and such agency expands its scope of accreditation to include distance education, not later than 30 days after such change in scope, such agency shall notify the Secretary, in writing, of the change in scope to include distance education, in accordance with section 496(a)(4)(B)(i)(II) of the Higher Education Act of 1965 (20 U.S.C. 1099b(a)(4)(B)(i)(II)).
(3)
Commencement of approval process with the Secretary— Not later than December 31, 2020, each institution described in paragraph (1)(B) shall commence, with the Secretary, the standard approval process for distance education of the Secretary referred to in paragraph (1)(B)(ii)(I).
(4)
Completion of evaluation and approval process—
(A)
In general— Not later than July 1, 2021, an institution of higher education described in paragraph (1)(B) shall demonstrate to the Secretary that—
(i)
the institution has completed the evaluation process and standard approval process for distance education under paragraphs (2) and (3), respectively, for each of its applicable programs; and
(ii)
each such program meets the applicable policies and procedures to offer distance education that are required by the Secretary and the institution’s accrediting agency or association under such paragraphs.
(B)
Loss of eligibility— An institution of higher education that does not meet the requirements of subparagraph (A) shall cease offering distance education programs until such time that such institution demonstrates to the Secretary that the institution and each of its applicable programs meet the requirements of subparagraph (A).
(c)
Requirements for certain covered arrangements—
(1)
Accreditor review for covered arrangements with foreign institutions— An institution of higher education with a covered arrangement with a foreign institution shall demonstrate to the Secretary that the institution has commenced the evaluation process with the institution’s accrediting agency or association to determine, in a case in which the accrediting agency or association has standards for the provision of educational services to another institution, whether such covered arrangement meets the standards.
(2)
Reporting to the secretary— Beginning not later than 30 days after the date of enactment of this Act, the Secretary shall require the following:
(A)
Institutions with covered arrangements with non-title-IV institutions or organizations— An institution of higher education with a covered arrangement with a non-title-IV institution or organization shall report to the Secretary not later than 10 days after the institution of higher education establishes or modifies such covered arrangement—
(i)
the name of the institution or organization that is not eligible to participate in a program under title IV;
(ii)
a summary of such arrangement, including the percentages and components of the educational program to be offered by the institution of higher education and such institution or organization; and
(iii)
an attestation that the institution of higher education and such institution or organization meet the requirements of section 668.5(c) of title 34, Code of Federal Regulations (as such section is in effect on the date of enactment of this Act), including the specific determination from the institution of higher education’s accrediting agency or association that the institution’s arrangement meets the agency or association’s standards for the contracting out of educational services.
(B)
Institutions with covered arrangements with foreign institutions— An institution of higher education with a covered arrangement with a foreign institution shall report to the Secretary—
(i)
not later than 10 days after such institution establishes such covered arrangement—
(I)
the name of the foreign institution; and
(II)
a summary of such arrangement, including the percentages and components of the educational program to be offered by the institution of higher education and the foreign institution; and
(ii)
if applicable, not later than 10 days after the date on which the institution’s accrediting agency or association provides its determination to the institution in accordance with paragraph (1), the determination made by the institution’s accrediting agency or association.
(3)
Information made available to students—
(A)
Institutions with covered arrangements with non-title-iv institutions or organizations— An institution of higher education with a covered arrangement with a non-title-IV institution or organization shall provide directly to enrolled and prospective students, and make available on a publicly accessible website of the institution, a description of each covered arrangement with a non-title-IV institution or organization, including information on—
(i)
the portion of the educational program that the institution of higher education is not providing;
(ii)
the name and location of the non-title-IV institution or organization that is providing such portion of the educational program;
(iii)
the method of delivery of such portion of the educational program; and
(iv)
the estimated additional costs students may incur as the result of enrolling in an educational program that is provided under the covered arrangement.
(B)
Institutions with covered arrangements with foreign institutions— In the case of an institution of higher education with a covered arrangement with a foreign institution, the foreign institution in such arrangement shall provide the information described in subparagraph (A) regarding the covered arrangement in the same manner as applies to an institution of higher education with a covered arrangement with a non-title-IV institution or organization subject to such subparagraph.
(4)
Enforcement— The Secretary shall take such enforcement actions under section 487(c) of the Higher Education Act of 1965 (20 U.S.C. 1094(c)) as necessary until such time as an institution of higher education with a covered arrangement subject to this subsection can demonstrate that the institution meets—
(A)
the standards of the institution’s accrediting agency or association for the contracting out of educational services; and
(B)
in the case of an institution with a covered arrangement with a foreign institution, the standards, if applicable, of the accrediting agency or association for the provision of educational services to another institution.
(d)
Required reports—
(1)
Reports by accrediting agency or association—
(A)
In general— Not later than 15 business days after an accrediting agency or association completes the review of an institution of higher education subject to the requirements of subsection (b) or (c), the accrediting agency or association shall publish a report regarding the review.
(B)
Requirements— The report under subparagraph (A) shall—
(i)
be published on the website of the accrediting agency or association; and
(ii)
include a summary of the conclusion and the relevant findings that such agency or association provided such institution of higher education in granting, as applicable—
(I)
the approval or denial for an institution of higher education to deliver distance education under subsection (b); or
(II)
the approval or denial of an institution of higher education to enter into or modify a written arrangement in accordance with subsection (c).
(2)
Reports by secretary— By March 31, 2021, and quarterly thereafter, the Secretary shall provide the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives, and publish on a publicly available website, a report of the information collected under paragraph (1) and subsection (c)(2).
(e)
Other definitions— In this section:
(1)
Accrediting agency or association— The term accrediting agency or association means—
(A)
an accrediting agency or association that is recognized by the Secretary under subpart 2 of part H of title IV of the Higher Education Act of 1965 (20 U.S.C. 1099b); or
(B)
in the case of a public postsecondary vocational institution whose eligibility for Federal student assistance programs is being determined by a State agency listed under section 487(c)(4) of the Higher Education Act of 1965 (20 U.S.C. 1094(c)(4)), such a State agency.
(2)
Covered arrangement with a foreign institution— The term covered arrangement with a foreign institution means a written arrangement entered into between an institution of higher education and a foreign institution, on or after March 13, 2020, to provide an educational program.
(3)
Covered arrangement with a non-title-iv institution or organization— The term covered arrangement with a non-title-IV institution or organization means a written arrangement—
(A)
to provide an educational program that satisfies the requirements of section 668.8 of title 34, Code of Federal Regulations (as such section is in effect on the date of enactment of this Act) between an institution of higher education and an institution or organization that is not eligible to participate in a program under title IV;
(B)
entered into, or modified, on or after March 13, 2020; and
(C)
through which the institution or organization that is not eligible to participate in a program under title IV will provide more than 25 percent, but less than 50 percent of the educational program subject to the arrangement.
(4)
Foreign institution— The term foreign institution means an institution located outside the United States that is described in paragraphs (1)(C) and (2) of section 102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a)).
(5)
Guidance of the Secretary on distance education— The term guidance of the Secretary on distance education means the guidance of the Secretary entitled “UPDATED Guidance for interruptions of study related to Coronavirus (COVID–19)” dated June 16, 2020 (or prior or succeeding guidance).
(6)
Institution of higher education— The term institution of higher education has the meaning given that term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
(7)
Program under title IV— The term program under title IV means the following programs under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.):
(A)
The Federal Pell Grant program under section 401 of such Act (20 U.S.C. 1070a).
(B)
The Federal Supplemental Educational Opportunity Grant program under subpart 3 of part A of such title IV (20 U.S.C. 1070b).
(C)
The Federal work-study program under part C of such title IV (20 U.S.C. 1087–51 et seq.).
(D)
The Federal Direct Loan program under part D of such title IV (20 U.S.C. 1087a et seq.).

Sec. 125 Requirements for teach-out plans and teach-out agreements

(a)
Requirements—
(1)
In general— Notwithstanding section 487(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1094(f)(2)), in the event an institution of higher education, during the period described in subsection (d), is required to submit to its accrediting agency or association a teach-out plan (in accordance with section 487(f) and section 496(c)(3) of such Act (20 U.S.C. 1094(f); 1099b(c)(3))), or to submit a teach-out agreement among institutions (in accordance with section 496(c)(6) of such Act (20 U.S.C. 1099b(c)(6))), the following shall apply to such plans and agreements:
(A)
The definitions and requirements described in this subsection.
(B)
Any other applicable standards of the institution’s accrediting agency or association.
(C)
Any other provisions the Secretary of Education determines are necessary to protect the interests of the United States and to promote the purposes of this section.
(2)
Closing institution defined— The term closing institution means an institution of higher education—
(A)
that ceases to operate or plans to cease operations before all enrolled students have completed their program of study; or
(B)
that has an institutional location that—
(i)
provides 100 percent of at least 1 program offered by the institution of higher education; and
(ii)
ceases to operate or plans to cease operations before all enrolled students have completed their program of study.
(3)
Teach-out plans—
(A)
Teach-out plan defined— The term teach-out plan means a written plan developed by a closing institution that provides for the equitable treatment of students.
(B)
Contents of teach-out plans— A teach-out plan shall include a record-retention plan that includes—
(i)
a plan for the custody (including by any applicable State authorizing agencies), and the disposition, of teach-out records that meets the requirements of paragraph (5)(B)(iii);
(ii)
an assurance that in the event of the closure of the institution or an institutional location of the institution, such institution—
(I)
will meet the requirements of paragraph (5)(B)(iv); and
(II)
will refund students the amount of any unearned tuition, account balances, and student fees, and refunds due; and
(iii)
an estimate of the costs necessary to carry out such record-retention plan.
(4)
Teach-out agreement defined— The term teach-out agreement means a written agreement between a closing institution and one or more other institutions of higher education (in this section referred to as a “teach-out institution)” that—
(A)
provides for the equitable treatment of students and a reasonable opportunity for students to complete their program of study; and
(B)
meets the requirements in section 496(c)(6) of the Higher Education Act of 1965 (20 U.S.C. 1099b(c)(6)).
(5)
Approval of teach-out agreements— In approving a teach-out agreement, the accrediting agency or association shall determine a timeline for an interim teach-out agreement and a final teach-out agreement that provides for the equitable treatment of students and ensures—
(A)
that the teach-out institution—
(i)
to the extent practicable, is an institution of higher education that meets the requirements of section 101 or section 102(c) of the Higher Education Act of 1965 (20 U.S.C. 1001; 1002(c));
(ii)
has the necessary experience, resources, and support services to provide an educational program that is of acceptable quality and reasonably similar in content, delivery modality, and scheduling to that provided by the closing institution with which the teach-out institution has entered into the teach-out agreement;
(iii)
has not been subject to a sanction of probation or equivalent or show cause by its accrediting agency or association or any applicable State authorizing or licensing agency in the past 5 years; and
(iv)
shows no evidence of significant problems (including financial stability or administrative capability) that affect the institution’s capacity to carry out its mission and meet all obligations to enrolled students, which shall include a showing that there is no evidence of the conditions described in section 602.24(c)(8) of title 34, Code of Federal Regulations, as in effect on the date of enactment of this Act; and
(B)
that the closing institution—
(i)
provides the accrediting agency or association and the Secretary a complete list of all students who are enrolled in each program at the institution or who have withdrawn from the institution within the last 180 days, including each student’s name, contact information, program of study, the program requirements each student has completed, and the estimated date of completion in the absence of the closure of such institution or institutional location;
(ii)
provides to the accrediting agency or association and the Secretary, for each program of study at the closing institution, records of any agreements pertaining to the acceptance of students, transfer of credits, articulation agreements, or waiver of program requirements between the closing institution and any other institutions of higher education;
(iii)
provides a record-retention plan to all enrolled students that delineates the final disposition of teach-out records, digitally where practicable, including student transcripts, billing, financial aid records, and the amount of any unearned tuition, account balances, student fees, and refunds due to each such student;
(iv)
releases all financial holds placed on student records and, for the 3-year period beginning on the date of the closure of such institution or institutional location, provides each student (including each student who withdrew from such institution during the 180-day period prior to the date of such closure) with the student’s official transcripts and complete academic records at no cost to the student;
(v)
provides students with information, using standard language developed by the Secretary under subsection (b), regarding—
(I)
the benefits and consequences of choosing to—
(aa)
continue the student’s studies by transferring to a teach-out institution; and
(bb)
receive a closed school discharge under section 437(c)(1) and section 464(g)(1) of the Higher Education Act of 1965 (20 U.S.C. 1087(c)(1); 1087dd(g)(1)); and
(II)
if applicable, information on institutional and State refund policies;
(vi)
provides students with information about additional tuition and fee charges, if any, at the teach-out institution; and
(vii)
provides students with accurate information on the number and types of credits the teach-out institution is willing to accept prior to the student’s enrollment in that institution or any other institution of higher education with which the closing institution has an articulation agreement.
(6)
Submission of teach-out plans and teach-out agreements—
(A)
Submission of notice— Not later than 10 days after being required to submit a teach-out plan or teach-out agreement to its accrediting agency or association, the institution of higher education shall submit a notice of such plan or agreement to the Secretary of Education and to any applicable State authorizing agencies of such institution.
(B)
Submission of plan or agreement— Not later than 5 days after receiving approval from its accrediting agency or association of a teach-out plan or teach-out agreement, as applicable, the institution of higher education shall submit the approved plan or agreement to the Secretary of Education and to any applicable State authorizing agencies of such institution.
(b)
Standard language— Not later than 60 days after the date of the enactment of this section, the Secretary of Education shall publish standard language relating to closed school discharges for purposes of subsection (a)(5)(B)(v).
(c)
Prohibition on misrepresentations—
(1)
In general— An institution of higher education is prohibited from engaging in misrepresentation about the nature of teach-out plans, teach-out agreements, and transfer of credit.
(2)
Sanctions— Upon determination, after reasonable notice and opportunity for a hearing, that an institution of higher education is in violation of this subsection, the Secretary of Education—
(A)
shall impose a civil penalty not to exceed $25,000 for each misrepresentation; and
(B)
may impose an additional sanction described in section 497(c)(3) of the Higher Education Act of 1965 (20 U.S.C. 1094(c)(3)).
(d)
Covered period— The provisions of this section shall be in effect during the period beginning on the date of enactment of this Act and ending on the date on which on which sections 487(f) of the Higher Education Act of 1965 (20 U.S.C. 1094(f)) or paragraphs (3) and (6) of section 493(c) of such Act (20 U.S.C. 1098b(c)) are amended or repealed.

C Federal Student Loan Relief

1 Temporary Relief for Federal Student Borrowers

Sec. 131 Expanding loan relief to all Federal student loan borrowers

Section 3502(a) of division A of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136) is amended—
(1)
by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively; and
(2)
by inserting after paragraph (1) the following:

“(2) Federal student loan—The term Federal student loan means a loan—

“(A) made under part B, part D, or part E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.), and held by the Department of Education;

“(B) made, insured, or guaranteed under part B of such title, or made under part E of such title, and not held by the Department of Education; or

“(C) made under—

“(i) subpart II of part A of title VII of the Public Health Service Act (42 U.S.C. 292q et seq.); or

“(ii) part E of title VIII of the Public Health Service Act (42 U.S.C. 297a et seq.).”

Sec. 132 Extending the length of borrower relief due to the coronavirus emergency

Section 3513 of division A of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136) is amended—
(1)
by amending subsection (a) to read as follows:

“(a) Suspension of payments

“(1) In general—During the period beginning on March 13, 2020, and ending on September 30, 2021, the Secretary or, as applicable, the Secretary of Health and Human Services, shall suspend all payments due on Federal student loans.

“(2) Transition period—For one additional 30-day period beginning on the day after the last day of the suspension period described in subsection (a), the Secretary or, as applicable, the Secretary of Health and Human Services, shall ensure that any missed payments on a Federal student loan by a borrower during such additional 30-day period—

“(A) do not result in collection fees or penalties associated with late payments; and

“(B) are not reported to any consumer reporting agency or otherwise impact the borrower’s credit history.

“(3) Determination of compensation—The Secretary or, as applicable, the Secretary of Health and Human Services shall—

“(A) with respect to a holder of a Federal student loan defined in subparagraph (B) or (C) of section 3502(a)(2)—

“(i) determine any losses for such holder due to the suspension of payments on such loan under paragraph (1); and

“(ii) establish reasonable compensation for such losses; and

“(B) not later than 60 days after the date of enactment of the Pandemic Education Response Act, with respect to a borrower who made a payment on a Federal student loan defined in subparagraph (B) or (C) of section 3502(a)(2) during the period beginning on March 13, 2020, and ending on such date of enactment, the Secretary shall pay to the borrower, an amount equal to the lower of—

“(i) the amount paid by the borrower on such loan during such period; or

“(ii) the amount that was due on such loan during such period.

“(4) Recertification—A borrower who is repaying a Federal student loan pursuant to an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e) shall not be required to recertify the income or family size of the borrower under such plan prior to December 31, 2021.”

(2)
in subsection (c), by striking “part D or B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.)” and inserting “part B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.; 1087aa et seq.)”;
(3)
in subsection (d), by striking “During the period in which the Secretary suspends payments on a loan under subsection (a), the Secretary” and inserting “During the period in which payments on a Federal student loan are suspended under subsection (a), the Secretary or, as applicable, the Secretary of Health and Human Services”;
(4)
in subsection (e), by striking “During the period in which the Secretary suspends payments on a loan under subsection (a), the Secretary” and inserting “During the period in which payments on a Federal student loan are suspended under subsection (a), the Secretary or, as applicable, the Secretary of Health and Human Services”; and
(5)
in subsection (f), by striking “the Secretary” and inserting “the Secretary or, as applicable, the Secretary of Health and Human Services,”.

Sec. 133 No interest accrual

Section 3513(b) of division A of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136) is amended to read as follows:

“(b) Providing interest relief

“(1) No accrual of interest

“(A) In general—During the period described in subparagraph (D), interest on a Federal student loan shall not accrue or shall be paid by the Secretary (or the Secretary of Health and Human Services) during—

“(i) the repayment period of such loan;

“(ii) any period excluded from the repayment period of such loan (including any period of deferment or forbearance);

“(iii) any period in which the borrower of such loan is in a grace period; or

“(iv) any period in which the borrower of such loan is in default on such loan.

“(B) Direct Loans and Department of Education held FFEL and Perkins Loans—For purposes of subparagraph (A), interest shall not accrue on a Federal student loan defined in section 3502(a)(2)(A).

“(C) FFEL and Perkins loans not held by the Department of Education and HHS Loans—For purposes of subparagraph (A)—

“(i) in the case of a Federal student loan defined in section 3502(a)(2)(B), the Secretary shall pay, on a monthly basis, the amount of interest due on the unpaid principal of such loan to the holder of such loan, except that any payments made under this clause shall not affect payment calculations under section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087–1); and

“(ii) in the case of a Federal student loan defined in section 3502(a)(2)(C), the Secretary of Health and Human Services shall pay, on a monthly basis, the amount of interest due on the unpaid principal of such loan to the holder of such loan.

“(D) Period described

“(i) In general—The period described in this clause is the period beginning on March 13, 2020, and ending on the later of—

“(I) September 30, 2021; or

“(II) the day following the date of enactment of the Pandemic Education Response Act that is 2 months after the national U–5 measure of labor underutilization shows initial signs of recovery.

“(ii) Definitions—In this subparagraph:

“(I) National U–5 measure of labor underutilization—The term national U–5 measure of labor underutilization means the seasonally-adjusted, monthly U–5 measure of labor underutilization published by the Bureau of Labor Statistics.

“(II) Initial signs of recovery—The term initial signs of recovery means that the average national U–5 measure of labor underutilization for months in the most recent 3-consecutive-month period for which data are available—

“(aa) is lower than the highest value of the average national U–5 measure of labor underutilization for a 3-consecutive-month period during the period beginning in March 2020 and the most recent month for which data from the Bureau of Labor Statistics are available by an amount that is equal to or greater than one-third of the difference between—

“(AA) the highest value of the average national U–5 measure of labor underutilization for a 3-consecutive-month period during such period; and

“(BB) the value of the average national U–5 measure of labor underutilization for the 3-consecutive-month period ending in February 2020; and

“(bb) has decreased for each month during the most recent 2 consecutive months for which data from the Bureau of Labor Statistics are available.

“(E) Other definitions—In this paragraph:

“(i) Default—The term default—

“(I) in the case of a Federal student loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965, has the meaning given such term in section 435(l) of the Higher Education Act of 1965 (20 U.S.C. 1085);

“(II) in the case of a Federal student loan made under part E of the Higher Education Act of 1965, has the meaning given such term in section 674.2 of title 34, Code of Federal Regulations (or successor regulations); or

“(III) in the case of a Federal student loan defined in section 3502(a)(2)(C), has the meaning given such term in section 721 or 835 of the Public Health Service Act (42 U.S.C. 292q, 297a), as applicable.

“(ii) Grace period—The term grace period means—

“(I) in the case of a Federal student loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965, the 6-month period after the date the student ceases to carry at least one-half the normal full-time academic workload, as described in section 428(b)(7) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(7));

“(II) in the case of a Federal student loan made under part E of the Higher Education Act of 1965, the 9-month period after the date on which a student ceases to carry at least one-half the normal full-time academic workload, as described in section 464(c)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(1)(A)); and

“(III) in the case of a Federal student loan defined in section 3502(a)(2)(C), the 1-year period described in section 722(c) of the Public Health Service Act (42 U.S.C. 292r(c)) or the 9-month period described in section 836(b)(2) of such Act (42 U.S.C. 297b(b)(2)), as applicable.

“(iii) Repayment period—The term repayment period means—

“(I) in the case of a Federal student loan made, insured, or guaranteed under part B or D of the Higher Education Act of 1965, the repayment period described in section 428(b)(7) of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(7));

“(II) in the case of a Federal student loan made under part E of the Higher Education Act of 1965, the repayment period described in section 464(c)(4) of the Higher Education Act of 1965 (20 U.S.C. 1087dd(c)(4)); or

“(III) in the case of a Federal student loan defined in section 3502(a)(2)(C), the repayment period described in section 722(c) or 836(b)(2) of the Public Health Service Act (42 U.S.C. 292r(c), 297b(b)(2)), as applicable.

“(2) Interest refund in lieu of retroactive applicability—By not later than 60 days after the date of enactment of the Pandemic Education Response Act, the Secretary or, as applicable, the Secretary of Health and Human Services, shall, for each Federal student loan defined in subparagraph (B) or (C) of section 3502(a)(2) for which interest was not paid by such Secretary pursuant to paragraph (1) during the period beginning on March 13, 2020 and ending on such date of enactment—

“(A) determine the amount of interest due (or that would have been due in the absence of being voluntarily paid by the holder of such loan) on such loan during the period beginning March 13, 2020, and ending on such date of enactment; and

“(B) refund the amount of interest calculated under subparagraph (A), by—

“(i) paying the holder of the loan the amount of the interest calculated under subparagraph (A), to be applied to the loan balance for the borrower of such loan; or

“(ii) if there is no outstanding balance or payment due on the loan as of the date on which the refund is to be provided, providing a payment in the amount of the interest calculated under subparagraph (A) directly to the borrower.

“(3) Suspension of interest capitalization

“(A) In general—With respect to any Federal student loan, interest that accrued but had not been paid prior to March 13, 2020, and had not been capitalized as of such date, shall not be capitalized.

“(B) Transition—The Secretary or, as applicable, the Secretary of Health and Human Services, shall ensure that any interest on a Federal student loan that had been capitalized in violation of subparagraph (A) is corrected and the balance of principal and interest due for the Federal student loan is adjusted accordingly.”

Sec. 134 Notice to borrowers

Section 3513(g) of division A of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136) is amended—
(1)
in the matter preceding paragraph (1), by striking “the Secretary” and inserting “the Secretary or, as applicable, the Secretary of Health and Human Services,”;
(2)
in paragraph (1)(D), by striking the period and inserting a semicolon;
(3)
in paragraph (2)—
(A)
in the matter preceding subparagraph (A), by striking “August 1, 2020” and inserting “August 1, 2021”; and
(B)
by amending subparagraph (B) to read as follows:

“(B) that—

“(i) a borrower of a Federal student loan made, insured, or guaranteed under part B or D of title IV of the Higher Education Act of 1965 may be eligible to enroll in an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e), including a brief description of such repayment plans; and

“(ii) in the case of a borrower of a Federal student loan defined in section 3502(a)(2)(C) or made under part E of title IV of the Higher Education of 1965, the borrower may be eligible to enroll in such a repayment plan if the borrower consolidates such loan with a loan described in clause (i) of this subparagraph, and receives a Federal Direct Consolidation Loan under part D of the Higher Education of 1965 (20 U.S.C. 1087a et seq.); and”

(C)
by adding at the end the following:

“(3) in a case in which the accrual of interest on Federal student loans is suspended under subsection (b)(1) beyond September 30, 2021, during the 2-month period beginning on the date on which the national U–5 measure of labor underutilization shows initial signs of recovery (as such terms are defined in subsection (b)(1)(D)) carry out a program to provide not less than 6 notices by postal mail, telephone, or electronic communication to borrowers—

“(A) indicating when the interest on Federal student loans of the borrower will resume accrual and capitalization; and

“(B) the information described in paragraph (2)(B).”

Sec. 135 Implementation

Section 3513 of division A of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136), as amended by this part, is further amended by adding at the end the following:

“(i) Implementation

“(1) Information verification

“(A) In general—To facilitate implementation of this section, information for the purposes described in subparagraph (B), shall be reported—

“(i) by the holders of Federal student loans defined in section 3502(a)(2)(B) to the satisfaction of the Secretary; and

“(ii) by the holders of Federal student loans defined in section 3502(a)(2)(C) to the satisfaction of the Secretary of Health and Human Services.

“(B) Purposes—The purposes of the information reported under subparagraph (A) are to—

“(i) verify, at the borrower level, the payments that are provided or suspended under this section; and

“(ii) calculate the amount of any interest due to the holder for reimbursement of interest under subsection (b).

“(2) Coordination—The Secretary shall coordinate with the Secretary of Health and Human Services to carry out the provisions of this section with respect to Federal student loans defined in section 3502(a)(2)(C).”

Sec. 136 Effective date

Except as otherwise provided, this part, and the amendments made by this part, shall take effect as if enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136).

2 Consolidation Loans and Public Service Loan Forgiveness

Sec. 137 Special rules relating to Federal Direct Consolidation Loans

(a)
Special rules relating to Federal Direct Consolidation Loans and PSLF—
(1)
Public service loan forgiveness option on consolidation application—
(A)
In general— During the period described in subsection (e), the Secretary shall—
(i)
include, in any application for a Federal Direct Consolidation Loan under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq,), an option for the borrower to indicate that the borrower intends to participate in the public service loan forgiveness program under section 455(m) of such Act (20 U.S.C. 1087e(m)); and
(ii)
for each borrower who submits an application for a Federal Direct Consolidation Loan, without regard to whether the borrower indicates the intention described in clause (i)—
(I)
request that the borrower submit a certification of employment; and
(II)
after receiving a complete certification of employment—
(aa)
carry out the requirements of paragraph (2); and
(bb)
inform the borrower of the number of qualifying monthly payments made on the component loans before consolidation that shall be deemed, in accordance with paragraph (2)(D), to be qualifying monthly payments made on the Federal Direct Consolidation Loan.
(B)
Hold harmless— The Secretary may not change or otherwise rescind a calculation made under paragraph (2)(D) after informing the borrower of the results of such calculation under subparagraph (A)(ii)(II)(bb).
(2)
Process to determine qualifying payments for purposes of PSLF— Upon receipt of a complete certification of employment under paragraph (1)(A)(ii)(II) of a borrower who receives a Federal Direct Consolidation Loan described in paragraph (1)(A), the Secretary shall—
(A)
review the borrower’s payment history to identify each component loan of such Federal Direct Consolidation Loan;
(B)
for each such component loan—
(i)
calculate the weighted factor of the component loan, which shall be the factor that represents the portion of such Federal Direct Consolidation Loan that is attributable to such component loan; and
(ii)
determine the number of qualifying monthly payments made on such component loan before consolidation;
(C)
calculate the number of qualifying monthly payments determined under subparagraph (B)(ii) with respect to a component loan that shall be deemed as qualifying monthly payments made on the Federal Direct Consolidation Loan by multiplying—
(i)
the weighted factor of such component loan as determined under subparagraph (B)(i), by
(ii)
the number of qualifying monthly payments made on such component loan as determined under subparagraph (B)(ii); and
(D)
calculate the total number of qualifying monthly payments with respect to the component loans of the Federal Direct Consolidation Loan that shall be deemed as qualifying monthly payments made on such Federal Direct Consolidation Loan by—
(i)
adding together the result of each calculation made under subparagraph (C) with respect to each such component loan; and
(ii)
rounding the number determined under clause (i) to the nearest whole number.
(3)
Definitions— For purposes of this subsection:
(A)
Certification of employment— The term certification of employment, used with respect to a borrower, means a certification of the employment of the borrower in a public service job (as defined in section 455(m)(3)(B) of the Higher Education Act of 1965) on or after October 1, 2007.
(B)
Component loan— The term component loan, used with respect to a Federal Direct Consolidation Loan, means each loan for which the liability has been discharged by the proceeds of the Federal Direct Consolidation Loan, which—
(i)
may include a loan that is not an eligible Federal Direct Loan (as defined in section 455(m)(3)(A) of the Higher Education Act of 1965); and
(ii)
in the case of a subsequent consolidation loan, only includes loans for which the liability has been directly discharged by such subsequent consolidation loan.
(C)
Federal Direct Consolidation Loan— The term Federal Direct Consolidation Loan means a Federal Direct Consolidation Loan made under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.).
(D)
Qualifying monthly payment—
(i)
Component loan— The term qualifying monthly payment, used with respect to a component loan, means a monthly payment on such loan made by a borrower, during a period of employment in a public service job (as defined in section 455(m)(3)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(3)(B)) on or after October 1, 2007, pursuant to—
(I)
a repayment plan under part B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.; 1087a et seq.; 1087aa et seq.); or
(II)
in the case of a loan made under subpart II of part A of title VII of the Public Health Service Act or under part E of title VIII of the Public Health Service Act, a repayment plan under title VII or VIII of such Act.
(ii)
Federal Direct Consolidation Loan— The term qualifying monthly payment, used with respect to a Federal Direct Consolidation Loan, means a monthly payment on such loan that counts as 1 of the 120 monthly payments described in section 455(m)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(3)(B)).
(b)
Special rules relating to Federal Direct Consolidation Loans and ICR and IBR—
(1)
In general— During the period described in subsection (e), with respect to a borrower who receives a Federal Direct Consolidation Loan and who intends to repay such loan under an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e), the Secretary shall—
(A)
review the borrower’s payment history to identify each component loan of such Federal Direct Consolidation Loan;
(B)
for each such component loan—
(i)
calculate the weighted factor of the component loan, which shall be the factor that represents the portion of such Federal Direct Consolidation Loan that is attributable to such component loan; and
(ii)
determine the number of qualifying monthly payments made on such component loan before consolidation;
(C)
calculate the number of qualifying monthly payments determined under subparagraph (B)(ii) with respect to a component loan that shall be deemed as qualifying monthly payments made on the Federal Direct Consolidation Loan by multiplying—
(i)
the weighted factor of such component loan as determined under subparagraph (B)(i), by
(ii)
the number of qualifying monthly payments made on such component loan as determined under subparagraph (B)(ii); and
(D)
calculate and inform the borrower of the total number of qualifying monthly payments with respect to the component loans of the Federal Direct Consolidation Loan that shall be deemed as qualifying monthly payments made on such Federal Direct Consolidation Loan by—
(i)
adding together the result of each calculation made under subparagraph (C) with respect to each such component loan; and
(ii)
rounding the number determined under clause (i) to the nearest whole number.
(2)
Hold harmless— The Secretary may not change or otherwise rescind a calculation made under paragraph (1)(D) after informing the borrower of the results of such calculation under such paragraph.
(3)
Definitions— In this subsection:
(A)
Component loan; Federal Direct Consolidation Loan— The terms component loan and Federal Direct Consolidation Loan have the meanings given the terms in subsection (a).
(B)
Qualifying payment—
(i)
Component loans— Subject to clause (ii), the term qualifying monthly payment, used with respect to a component loan, means a monthly payment on such loan made by a borrower pursuant to—
(I)
a repayment plan under part B, D, or E of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.); or
(II)
in the case of a loan made under subpart II of part A of title VII of the Public Health Service Act (42 U.S.C. 292q et seq.) or under part E of title VIII of the Public Health Service Act (42 U.S.C. 297a et seq.), a repayment plan under title VII or VIII of such Act.
(ii)
Clarification—
(I)
ICR— For purposes of determining the number of qualifying monthly payments made on a component loan pursuant to an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)), each month a borrower is determined to meet the requirements of section 455(e)(7)(B)(i) of such Act with respect to such loan shall be treated as such a qualifying monthly payment.
(II)
IBR— For purposes of determining the number of qualifying monthly payments made on a component loan pursuant to an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e), each month a borrower was determined to meet the requirements of subsection (b)(7)(B) of such section 493C with respect to such loan shall be treated as such a qualifying monthly payment.
(iii)
Federal Direct Consolidation Loans— The term qualifying monthly payment, used with respect to a Federal Direct Consolidation Loan, means a monthly payment on such loan that counts as a monthly payment under an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)), or an income-based repayment plan under section 493C of the Higher Education Act of 1965 (20 U.S.C. 1098e).
(c)
Notification to borrowers—
(1)
In general— During the period described in subsection (e), the Secretary and the Secretary of Health and Human Services shall undertake a campaign to alert borrowers of a loan described in paragraph (2)—
(A)
on the benefits of consolidating such loans into a Federal Direct Consolidation Loan, including the benefits of the special rules under subsections (a) and (b) of this section; and
(B)
under which servicers and holders of Federal student loans shall provide to borrowers such consumer information, and in such manner, as determined appropriate by the Secretaries, based on conducting consumer testing to determine how to make the information as meaningful to borrowers as possible.
(2)
Federal student loans— A loan described in this paragraph is—
(A)
a loan made under subpart II of part A of title VII of the Public Health Service Act or under part E of title VIII of such Act; or
(B)
a loan made under part E of the Higher Education Act of 1965.
(d)
Special rule for interest on Federal Direct Consolidation Loans— Any Federal Direct Consolidation Loan for which the application is received during the period described in subsection (e), shall bear interest at an annual rate as calculated under section 455(b)(8)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)(8)(D)), without regard to the requirement to round the weighted average of the interest rate to the nearest higher one-eighth of one percent.
(e)
Period— The period described in this clause is the period beginning on the date of enactment of this Act, and ending on the later of—
(1)
September 30, 2021; or
(2)
the day following the date of enactment of this Act that is 2 months after the national U–5 measure of labor underutilization shows initial signs of recovery (as such terms are defined in section 3513(b) of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116–136), as amended by this Act)).
(f)
GAO study on implementation of special rules on consolidation— Not later than 6 months after the date of enactment of this Act, the Comptroller General of the United States shall submit a report to the authorizing committees (defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003) on the implementation of this section, which shall include—
(1)
information on borrowers who apply for or receive a Federal Direct Consolidation Loan under part D of the Higher Education Act of 1965 during the period described in subsection (e), disaggregated—
(A)
by borrowers who intend to participate in the public service loan forgiveness program under section 455(m) of such Act (20 U.S.C. 1087e(m)); and
(B)
by borrowers who intend to repay such loans on an income-contingent repayment plan under section 455(d)(1)(D) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment plan under section 493C of such Act (20 U.S.C. 1098e);
(2)
the extent to which the Secretary has established procedures for carrying out subsections (a) and (b);
(3)
the extent to which the Secretary and the Secretary of Health and Human Services have carried out the notification to borrowers required under subsection (c); and
(4)
recommendations on improving the implementation of this section to ensure increased borrower participation.

Sec. 138 Treatment of PSLF

(a)
Exception for purposes of PSLF loan forgiveness— Section 455(m)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(1)(B)) shall apply as if clause (i) were struck.
(b)
Health care practitioner— In section 455(m)(3)(B)(i) of the Higher Education Act of 1965 (20 U.S.C. 1087e(m)(3)(B)(i)), the term full-time professionals engaged in health care practitioner occupations includes an individual who—
(1)
has a full-time job as a health care practitioner;
(2)
provides medical services in such full-time job at a nonprofit hospital or public hospital or other nonprofit or public health care facility; and
(3)
is prohibited by State law from being employed directly by such hospital or other health care facility.

D Protecting Students

Sec. 141 Notifications and reporting relating to higher education

(a)
Notification of non-CARES Act flexibilities—
(1)
Notice to Congress—
(A)
In general— Not later than two days before the date on which the Secretary grants a flexibility described in paragraph (4), the Secretary shall—
(i)
submit to the authorizing committees a written notification of the Secretary’s intent to grant such flexibility; and
(ii)
publish the notification on a publicly accessible website of the Department of Education.
(B)
Elements— Each notification under subparagraph (A) shall—
(i)
identify the provision of law, regulation, or subregulatory guidance to which the flexibility will apply;
(ii)
identify any limitations on the flexibility, including any time limits;
(iii)
identify the statutory authority under which the flexibility is provided;
(iv)
identify the class of covered entities to which the flexibility will apply;
(v)
identify whether a covered entity will need to request the flexibility or whether the flexibility will be applied without request;
(vi)
in the case of a flexibility that requires a covered entity to request the flexibility, identify the factors the Secretary will consider in approving or denying the flexibility;
(vii)
explain how the flexibility is expected to benefit the covered entity or class of covered entities to which it applies; and
(viii)
explain the reasons the flexibility is necessary and appropriate due to COVID–19.
(2)
Quarterly reports— Not later than 10 days after the end of each fiscal quarter for the duration of the qualifying emergency through the end of the first fiscal year beginning after the conclusion of such qualifying emergency, the Secretary shall submit to the authorizing committees a report that includes, with respect to flexibilities described in paragraph (4) that have been issued by the Secretary in the most recently ended fiscal quarter, the following:
(A)
In the case of a flexibility that was issued by the Secretary without request from a covered entity, an explanation of all requirements, including reporting requirements, that the Secretary imposed on the covered entity as a condition of the flexibility.
(B)
In the case of a flexibility for which a covered entity requested and received specific approval from the Secretary—
(i)
identification of the covered entity that received the flexibility;
(ii)
an explanation of the specific reasons for approval of the request;
(iii)
a detailed description of the terms of the flexibility, including—
(I)
a description of any limitations on the flexibility; and
(II)
identification of each provision of law (including regulation and subregulatory guidance) that is waived or modified and, for each such provision, the statutory authority under which the flexibility was provided; and
(iv)
a copy of the final document granting the flexibility.
(C)
In the case of any request for a flexibility that was denied by the Secretary—
(i)
identification of the covered entity or entities that were denied a flexibility;
(ii)
a detailed description of the terms of the request for the flexibility; and
(iii)
an explanation of the specific reasons for denial of the request.
(3)
Report on flexibilities granted before enactment— Not later than 30 days after the date of enactment of this Act, the Secretary shall submit to the authorizing committees a report that—
(A)
identifies each flexibility described in paragraph (4) that was granted by the Secretary between March 13, 2020, and the date of enactment of this Act; and
(B)
with respect to each such flexibility, provides the information specified in paragraph (1)(B).
(4)
Flexibility described— A flexibility described in this paragraph is modification or waiver of any provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) (including any regulation or subregulatory guidance issued under such a provision) that the Secretary determines to be necessary and appropriate to modify or waive due to COVID–19, other than a provision of the Higher Education Act of 1965 that the Secretary is specifically authorized to modify or waive pursuant to the CARES Act (Public Law 116–136).
(5)
Privacy— The Secretary shall ensure that any report or notification submitted under this subsection does not reveal personally identifiable information about an individual student.
(6)
Rule of construction— Nothing in this subsection shall be construed to authorize the Secretary to waive or modify any provision of law.
(b)
Reports on exercise of CARES Act waivers by institutions of higher education— Not later than 30 days after the date of enactment of this Act, each institution of higher education that exercises an authority provided under section 3503(b), section 3504, section 3505, section 3508(d), section 3509, or section 3517(b) of the CARES Act (Public Law 116–136) shall submit to the Secretary a report that describes the nature and extent of the institution’s exercise of such authorities, including the number of students and amounts of aid provided under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) affected by the exercise of such authorities, as applicable.
(c)
Reports on changes to contracts and agreements— Not later than 10 days after the end of each fiscal quarter for the duration of the qualifying emergency through the end of the first fiscal year beginning after the conclusion of such qualifying emergency, the Secretary shall submit to the authorizing committees a report that includes, for the most recently ended fiscal quarter—
(1)
a summary of all modifications to any contracts with Department of Education contractors relating to Federal student loans, including—
(A)
the contractual provisions that were modified;
(B)
the names of all contractors affected by the modifications; and
(C)
estimates of any costs or savings resulting from the modifications;
(2)
a summary of all amendments, addendums, or other modifications to program participation agreements with institutions of higher education under section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094), any provisional program participation agreements entered into under such section, including—
(A)
any provisions of such agreements that were modified by the Department of Education; and
(B)
the number of institutions of higher education that received such modifications or entered into such provisional agreements, disaggregated by—
(i)
status as a four-year, two-year, or less-than-two-year public institution, private nonprofit institution, or proprietary institution; and
(ii)
each category of minority-serving institution described in section 371(a) of the Higher Education Act (20 U.S.C. 1067q); and
(3)
sample copies of program participation agreements (including provisional agreements), selected at random from among the agreements described in paragraph (2), including at least one agreement from each type of institution (whether a public institution, private nonprofit institution, or proprietary institution) that received a modified or provisional agreement.
(d)
Report to Congress—
(1)
In general— Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the authorizing committees a report that includes the following:
(A)
A summary of the reports received by the Secretary under subsection (b).
(B)
A description of—
(i)
the Secretary’s use of the authority under section 3506 of the CARES Act (Public Law 116–136) to adjust subsidized loan usage limits, including the total number of students and the total amount of subsidized loans under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) affected by the Secretary’s use of such authority;
(ii)
the Secretary’s use of the authority under section 3507 of the CARES Act (Public Law 116–136) to exclude certain periods from the Federal Pell Grant duration limit, including the total number of students and the total amount of Federal Pell Grants under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) affected by the Secretary’s use of such authority; and
(iii)
the Secretary’s use of the authority under section 3508 of the CARES Act (Public Law 116–136) to waive certain requirements for the return of Federal funds, including—
(I)
in the case of waivers issued to students under such section, the total number of students and the total amount of aid under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) affected by the Secretary’s use of such authority; and
(II)
in the case of waivers issued to institutions of higher education under such section, the total number of students and the total amount of aid under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) affected by the Secretary’s use of such authority.
(C)
A summary of the information required to be reported to the authorizing committees under sections 3510 and 3512 of the CARES Act (Public Law 116–136), as amended by this Act, regardless of whether such information has previously been reported to such committees as of the date of the report under this subsection.
(D)
Information relating to the temporary relief for Federal student loan borrowers provided under section 3513 of the CARES Act (Public Law 116–136), including—
(i)
with respect to the notifications required under subsection (g)(1) of such section—
(I)
the total number of individual notifications sent to borrowers in accordance with such subsection, disaggregated by electronic, postal, and telephonic notifications;
(II)
the total number of notifications described in clause (i) that were sent within the 15-day period specified in such subsection; and
(III)
the actual costs to the Department of Education of making the notifications under such subsection;
(ii)
the projected costs to the Department of Education of making the notifications required under subsection (g)(2) of such section;
(iii)
the number of Federal student loan borrowers who have affirmatively opted-out of payment suspension under subsection (a) of such section;
(iv)
the number of individual notifications sent to employers directing the employers to halt wage garnishment pursuant to subsection (e) of such section, disaggregated by electronic, postal, and telephonic notifications;
(v)
the number of Federal student loan borrowers who have had their wages garnished pursuant to section 488A of the Higher Education Act of 1965 (20 U.S.C. 1095a) or section 3720D of title 31, United States Code, between March 13, 2020, and the date of the date of enactment of this Act;
(vi)
the number of Federal student loan borrowers subject to interest capitalization as a result of consolidating Federal student loans since March 13, 2020, and the total amount of such interest capitalization;
(vii)
the average daily call wait times and call drop rates, disaggregated by student loan servicer, for the period between March 13, 2020, and the date of enactment of this Act; and
(viii)
the estimated or projected savings to the Department of Education for student loan servicing activities for the period beginning on March 13, 2020, and ending on September 30, 2020, due to lower reimbursement or contract costs per account for student loan servicers and private collection agencies resulting from the suspension of Federal student loan payments and halt to collection activities under the CARES Act (Public Law 116–136).
(E)
Information relating to the special rules relating to Federal Direct Consolidation Loans under section 137 of this Act, including—
(i)
the number of borrowers who submitted an application for a Federal Direct Consolidation Loan;
(ii)
the number of borrowers who received a Federal Direct Consolidation Loan; and
(iii)
the wait time between submitting an application and receiving a Federal Direct Consolidation Loan.
(F)
A summary of the information required to be reported to the authorizing committees under section 3517(c) and section 3518(c) of the CARES Act (Public Law 116–136), as amended by this Act, regardless of whether such information has previously been reported to such committees as of the date of the report under this subsection.
(G)
A copy of any communication from the Department of Education to grantees and Federal student loan borrowers eligible for rights and benefits under section 3519 of the CARES Act (Public Law 116–136) to inform such grantees and borrowers of their eligibility for such rights and benefits.
(2)
Duty of HHS— The Secretary of Health and Human Services shall provide to the Secretary of Education the information necessary for the Secretary of Education to comply with paragraph (1)(D).
(e)
Amendments to CARES Act reporting requirements—
(1)
Reporting requirement for HBCU capital financing loan deferment— Section 3512(c) of the CARES Act (Public Law 116–136) is amended by striking the period at the end and inserting “, the terms of the loans deferred, and the schedule for repayment of the deferred loan amount.”.
(2)
Reporting requirement for institutional aid modifications— Section 3517(c) of the CARES Act (Public Law 116–136) is amended by striking the period at the end and inserting “, identifies the statutory provision waived or modified, and describes the terms of the waiver or modification received by the institution.”.
(3)
Reporting requirement for grant modifications— Section 3518(c) of the CARES Act (Public Law 116–136) is amended by striking the period at the end and inserting “and describes the terms of the modification received by the institution or other grant recipient.”.
(f)
Definitions— In this section:
(1)
The term covered entity means an institution of higher education, a Federal contractor, a student, or any other entity that is subject to the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
(2)
The term Federal student loan means a loan described in section 3502(a)(2) of the CARES Act (Public Law 116–136), as amended by this Act.

Sec. 142 Protecting students from predatory recruitment

(a)
Undercover and audit-based investigations— During the covered period, in carrying out the provisions of subpart 3 of part H of title IV of such Act (20 U.S.C. 1099c et seq.), including paragraphs (1) and (2) of section 498A(a) of the Higher Education Act of 1965 (20 U.S.C. 1099c–1(a)), the Secretary of Education shall—
(1)
conduct regular undercover and audit-based investigations for the purpose of encouraging the ethical treatment of students and prospective students and detecting fraud and abuse in the Federal student aid programs, including—
(A)
violations described in section 487(c)(3) of the Higher Education Act of 1965 (20 U.S.C. 1094(c)(3));
(B)
violations of section 487(a)(20) of such Act (20 U.S.C. 1094(a)(20));
(C)
violations described in subparagraphs (A) and (B) by any entity with which the institution has contracted for student recruitment or admission activities; and
(D)
violations of subsection (b) of this section;
(2)
develop written guidelines for the investigations described in paragraph (1)—
(A)
in accordance with commonly-accepted practices for undercover operations by Office of Inspector General of the Department of Education; and
(B)
in consultation with other relevant agencies, including the Department of Justice, Federal Trade Commission, Consumer Financial Protection Bureau, and the Office of Inspector General of the Department of Education;
(3)
ensure that institutions found in violation of the provisions under paragraph (1) shall be subject to a sanction determined by the Secretary of Education under section 487(c) of the Higher Education Act of 1965 (20 U.S.C. 1094(c)); and
(4)
provide to the authorizing committees (as defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)), and make available to the public, an annual report on—
(A)
the findings of investigations described in paragraph (1); and
(B)
the applicable sanctions imposed on institutions found in violation of the provisions described in paragraph (1).
(b)
Notice of incentive payment ban— During the covered period, each institution of higher education participating in a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) shall—
(1)
provide notice of the ban on prohibited incentive payment (including commissions and bonuses) under section 487(a)(20) of such Act (20 U.S.C. 1094(a)(20)) (and accompanying regulations) upon hiring an employee or entering into a contract with a third party contractor, and at least once per calendar year to employees and third-party contractors of the institution; and
(2)
publish a clear statement in all internal recruitment materials, including guides or manuals, acknowledging such ban.
(c)
Sunset— For purposes of this section, the term covered period means the period beginning on the date of enactment of this Act and ending on the date on which subpart 3 of part H of title IV of the Higher Education (20 U.S.C. 1099c) is amended or repealed.

II Impact Aid and Migrant Education Coronavirus Relief

Sec. 201 Impact Aid

Due to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) on March 13, 2020, with respect to the coronavirus, and notwithstanding sections 7002(j) and 7003(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7702(j), 7703(c)), a local educational agency desiring to receive a payment under section 7002 or 7003 of such Act (20 U.S.C. 7702, 7703) for fiscal year 2022 that also submitted an application for such payment for fiscal year 2021 shall, in the application submitted under section 7005 of such Act (20 U.S.C. 7705) for fiscal year 2022—
(1)
with respect to a requested payment under section 7002 of such Act (20 U.S.C. 7702)—
(A)
use the data described in subsection (j) of such section 7002 relating to calculating such payment that was submitted by the local educational agency in the application for fiscal year 2021; or
(B)
use the data relating to calculating such payment for the fiscal year required under such subsection (j); and
(2)
with respect to a requested payment under section 7003 of such Act (20 U.S.C. 7703)—
(A)
use the student count data relating to calculating such payment that was submitted by the local educational agency in the application for fiscal year 2021, except that payments for fiscal year 2022 shall be calculated by the Secretary using the expenditures and rates described in clauses (i), (ii), (iii), and (iv) of subsection (b)(1)(C) of such section 7003 that would otherwise apply for fiscal year 2022; or
(B)
use the student count data relating to calculating such payment for the fiscal year required under subsection (c) of such section 7003.

Sec. 202 Education of migratory children

Due to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) on March 13, 2020, with respect to the coronavirus, and notwithstanding subsections (a)(1) and (f)(1) of section 1303 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6393), for the purposes of making determinations under subsections (a)(1) and (f) of such section 1303 for fiscal year 2021 and all subsequent fiscal years for which school year 2019–2020 data would be used in the calculations under section 1303(a)(1) of such Act (20 U.S.C. 6393(a)(1)) , the Secretary of Education shall use school year 2018–2019 or school year 2019–2020 data, whichever data are greater, wherever school year 2019–2020 data otherwise would be required.

III Career, Technical, and Adult Education

Sec. 301 Definitions

In this subtitle:
(1)
Coronavirus— The term coronavirus means coronavirus as defined in section 506 of the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (Public Law 116–123).
(2)
COVID–19 national emergency— The term COVID–19 national emergency means the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) on March 13, 2020, with respect to the coronavirus.

Sec. 302 COVID–19 career and technical education response flexibility

(a)
Pooling of funds— An eligible recipient may, in accordance with section 135(c) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2355(c)), pool a portion of funds received under such Act with a portion of funds received under such Act available to one or more eligible recipients to support the transition from secondary education to postsecondary education or employment for CTE participants whose academic year was interrupted by the COVID–19 national emergency.
(b)
Professional development— During the COVID–19 national emergency, section 3(40)(B) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302(40)(B)) shall apply as if “sustained (not stand-alone, 1-day, or short-term workshops), intensive, collaborative, job-embedded, data-driven, and classroom-focused,” were struck.
(c)
Definitions— Except as otherwise provided, the terms in this section have the meanings given the terms in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302).

Sec. 303 Adult education and literacy response activities

(a)
Online service delivery of adult education and literacy activities— During the COVID–19 national emergency, an eligible agency may use funds available to such agency under paragraphs (2) and (3) of section 222(a) of the Workforce Innovation and Opportunity Act (20 U.S.C. 3302(a)) for the administrative expenses of the eligible agency related to transitions to online service delivery of adult education and literacy activities.
(b)
Definitions— Except as otherwise provided, the terms in this section have the meanings given the terms in section 203 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3272).

IV Disability Employment

Sec. 401 Rehabilitation Act waivers

(a)
Provisions eligible for waiver— The following provisions of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) are eligible for waivers due to the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) on March 13, 2020, with respect to the coronavirus:
(1)
The Secretary of Education may provide a waiver of section 103(b)(1) to allow the replacement of expired or spoiled food products at vending facilities.
(2)
The Secretary of Education may provide a waiver of the service obligation requirement under section 302(b) due to interrupted service obligations.
(b)
Duration— A waiver approved by the Secretary under subsection (a) shall expire on the earlier of the following dates:
(1)
The date that is 1 year after the date of the enactment of this Act.
(2)
The last day of the national emergency referred to in subsection (a).
(c)
Streamlined process— The Secretary of Education shall create a streamlined application process to request a waiver under this section, and the Secretary may grant such waiver if the Secretary determines that the waiver is necessary and appropriate.
(d)
Limitation— Nothing in this section shall be construed to allow the Secretary to waive any statutory or regulatory requirements under applicable civil rights laws.
(e)
Reporting and publication—
(1)
Public notice— A State requesting a waiver under this section shall provide the public notice of, and the opportunity to comment on, the request by posting on the State website information regarding the waiver request and the process for commenting.
(2)
Notifying Congress— Not later than 7 days after—
(A)
receiving a waiver request from a State under this section, the Secretary of Education shall notify the Committee on Health, Education, Labor, and Pensions of the Senate, the Committee on Appropriations of the Senate, the Committee on Education and Labor of the House of Representatives, and the Committee on Appropriations of the House of Representatives of such waiver request; and
(B)
granting a waiver under this section, the Secretary of Education shall notify the Committee on Health, Education, Labor, and Pensions of the Senate, the Committee on Appropriations of the Senate, the Committee on Education and Labor of the House of Representatives, and the Committee on Appropriations of the House of Representatives of such waiver.
(3)
Publication— Not later than 30 days after granting a waiver under this section, the Secretary of Education shall publish a notice of the Secretary’s decision (including which waiver was granted and the reason for granting the waiver) in the Federal Register and on the website of the Department of Education.