PRO Students Act

Summary

Protections and Regulation for Our Students Act or the PRO Students Act This bill increases oversight of postsecondary educational institutions and provides consumer protections for students. Proprietary (i.e., for-profit) institutions of higher education (IHEs) must derive at least 15% of their revenue from non-federal sources or risk becoming ineligible for federal educational assistance funds. Postsecondary educational institutions must meet certain requirements regarding entrance counseling for first-time borrowers, disclosure of clinical training agreement terms, disclosure of a mandatory program review, and preparation of students upon successful program completion. The bill prohibits such institutions from using revenues derived from federal educational assistance funds for recruiting or marketing activities. The bill revises requirements governing IHEs that receive federal educational assistance funds, including to broaden the ban on institutions compensating employees based on their successes in securing either enrollments or student aid awards, prohibit predispute arbitration agreements in student loan contracts that waive the rights available to borrowers, and increase protections for whistleblowers who disclose institutional violations. The Department of Education (ED) must (1) establish a complaint tracking system, (2) conduct mandatory program reviews of institutions that pose a significant risk of failing to comply with certain requirements, and (3) recalculate the cohort default rate for institutions that engage in default manipulation and redetermine their eligibility for federal educational assistance funds. The bill expands the defenses that a borrower may assert for not repaying a student loan. ED may impose civil penalties on IHEs that engage in substantial misrepresentation or other serious violations.

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Timeline

1. 25 June 2019

   Introduced

   Referred to the House Committee on Education and Labor.

   Source: IntroReferral

2. 25 June 2019

   Introduced

   Introduced in House

   Source: IntroReferral

3. 25 June 2019

   Introduced

   Introduced in House

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in House · 25 June 2019 · Official file

Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 25 June 2019

  ViewDownloadOpen at official source

• Introduced in House (PDF)

  Introduced in House · EN · 25 June 2019

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 25 June 2019

  Open at official source

Sponsors

• Mark Takano · D · Sponsor
• Pete Aguilar · D · Cosponsor
• Scott Peters · D · Cosponsor
• Rep. Garamendi, John [D-CA-8] · D · Cosponsor
• Rep. Cohen, Steve [D-TN-9] · D · Cosponsor
• · hsed00 · Standing

Related records

• related to ← Higher Education Funds Integrity Act