110th CONGRESS
1st Session
H. R. 472
To amend the Higher Education Act of 1965 to address the issues
of college affordability and transparency.
IN THE HOUSE OF REPRESENTATIVES
January 16, 2007
Mr. MCKEON (for himself, Mr. KELLER of Florida, Mr. CASTLE, and Mr. BAKER)
introduced the following bill; which was referred to the Committee on Education
and Labor
A BILL
To amend the Higher Education Act of 1965 to address the issues
of college affordability and transparency.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `College Affordability and Transparency Act
of 2007'.
SEC. 2. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER EDUCATION.
Section 131 of the Higher Education Act of 1965 (20 U.S.C. 1015) is amended
to read as follows:
`SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER EDUCATION.
`(a) Purpose- It is the purpose of this section to--
`(1) provide students and families with an easy-to-use, comprehensive
web-based tool for researching and comparing institutions of higher education;
`(2) increase the transparency of college cost, price, and financial aid;
and
`(3) raise public awareness of information available about postsecondary
education, particularly among low-income families, non-traditional student
populations, and first-generation college students.
`(b) College Opportunity On-Line (COOL) Website Re-Design Process- In carrying
out this section, the Commissioner of Education Statistics--
`(1) shall identify the data elements that are of greatest importance
to prospective students, enrolled students, and their families, paying
particular attention to low-income, non-traditional student populations,
and first-generation college students;
`(2) shall convene a group of individuals with expertise in the collection
and reporting of data related to institutions of higher education to--
`(A) determine the relevance of particular data elements to prospective
students, enrolled students, and families;
`(B) assess the cost-effectiveness of various ways in which institutions
of higher education might produce relevant data;
`(C) determine the general comparability of the data across institutions
of higher education;
`(D) make recommendations regarding the inclusion of specific data items
and the most effective and least burdensome methods of collecting and
reporting useful data from institutions of higher education; and
`(3) shall ensure that the redesigned COOL website--
`(A) uses, to the extent practicable, data elements currently provided
by institutions of higher education to the Secretary;
`(B) includes clear and uniform information determined to be relevant
to prospective students, enrolled students, and families;
`(C) provides comparable information, by ensuring that data are based
on accepted criteria and common definitions;
`(D) includes a sorting function that permits users to customize their
search for and comparison of institutions of higher education based
on the information identified through the process as prescribed in paragraph
(1) as being of greatest relevance to choosing an institution of higher
education.
`(1) DATA SYSTEM- The Commissioner of Education Statistics shall continue
to redesign the relevant parts of the Integrated Postsecondary Education
Data System to include additional data as required by this section and
to continue to improve the usefulness and timeliness of data collected
by such systems in order to inform consumers about institutions of higher
education.
`(2) COLLEGE CONSUMER PROFILE- The Secretary shall continue to publish
on the COOL website, for each academic year and in accordance with standard
definitions developed by the Commissioner of Education Statistics (including
definitions developed under section 131(a)(3)(A) as in effect on the day
before the date of enactment of the College Affordability and Transparency
Act of 2007), from at least all institutions of higher education participating
in programs under title IV the following information:
`(A) The tuition and fees charged for a first-time, full-time, full-year
undergraduate student.
`(B) The room and board charges for a first-time, full-time, full-year
undergraduate student.
`(C) The price of attendance for a first-time, full-time, full-year
undergraduate student, consistent with the provisions of section 472.
`(D) The average amount of financial assistance received by a first-year,
full-time, full-year undergraduate student, including--
`(i) each type of assistance or benefits described in 428(a)(2)(C)(ii);
`(ii) institutional and other assistance; and
`(iii) Federal loans under parts B, D, and E of title IV.
`(E) The number of first-time, full-time, full-year undergraduate students
receiving financial assistance described in each clause of subparagraph
(D).
`(F) The institutional instructional expenditure per full-time equivalent
student.
`(G) Student enrollment information, including information on the number
and percentage of full-time and part-time students, the number and percentage
of resident and non-resident students.
`(H) Faculty-to-student ratios.
`(I) Faculty information, including the total number of faculty and
the percentage of faculty who are full-time employees of the institution
and the percentage who are part-time.
`(J) Completion and graduation rates of undergraduate students, identifying
whether the completion or graduation rates are from a 2-year or 4-year
program of instruction and, in the case of a 2-year program of instruction,
the percentage of students who transfer to 4-year institutions prior
or subsequent to completion or graduation.
`(K) A link to the institution of higher education with information
of interest to students including mission, accreditation, student services
(including services for students with disabilities), transfer of credit
policies and, if appropriate, placement rates and other measures of
success in preparing students for entry into or advancement in the workforce.
`(L) The college affordability information elements specified in subsection
(d).
`(M) Any additional information that the Secretary may require.
`(d) College Affordability Information Elements- The college affordability
information elements required by subsection (c)(2)(L) shall include, for
each institution submitting data--
`(1) the sticker price of the institution for the 3 most recent academic
years;
`(2) the net tuition price of the institution for the 3 most recent academic
years;
`(3) the percentage change in both the sticker price and the net tuition
price over the 3-year time period that is being reported;
`(4) the percentage change in the CPI over the same time period; and
`(5) whether the institution has been placed on affordability alert status
as required by subsection (e)(3).
`(e) Outcomes and Actions-
`(1) RESPONSE FROM INSTITUTION- Effective on June 30, 2008, an institution
that increases its sticker price at a percentage rate for any 3-year interval
ending on or after that date that exceeds two times the rate of change
in the CPI over the same time period shall provide a report to the Secretary,
in such a form, at such time, and containing such information as the Secretary
may require. Such report shall be published by the Secretary on the COOL
website, and shall include--
`(A) a description of the factors contributing to the increase in the
institution's costs and in the tuition and fees charged to students;
and
`(B) if determinations of tuition and fee increases are not within the
exclusive control of the institution, a description of the agency or
instrumentality of State government or other entity that participates
in such determinations and the authority exercised by such agency, instrumentality,
or entity.
`(2) QUALITY-EFFICIENCY TASK FORCES-
`(A) REQUIRED- Each institution subject to paragraph (1) that has a
percentage change in its sticker price that is in the highest 5 percent
of all institutions subject to paragraph (1) shall establish a quality-efficiency
task force to review the operations of such institution.
`(B) MEMBERSHIP- Such task force shall include administrators, business
and civic leaders, and faculty, and may include students, trustees,
parents of students, and alumni of such institution.
`(C) FUNCTIONS- Such task force shall analyze institutional operating
costs in comparison with such costs at other institutions within the
class of institutions. Such analysis should identify areas where, in
comparison with other institutions in such class, the institution operates
more expensively to produce a similar result. Any identified areas should
then be targeted for in-depth analysis for cost reduction opportunities.
`(D) REPORT- The results of the analysis by a quality-efficiency task
force under this paragraph shall be made available to the public on
the COOL website.
`(3) CONSEQUENCES FOR 2-YEAR CONTINUATION OF FAILURE- If the Secretary
determines that an institution that is subject to paragraph (1)) has failed
to reduce the subsequent increase in sticker price below two times the
rate of change in the CPI for 2 consecutive academic years subsequent
to the 3-year interval used under paragraph (1), the Secretary shall place
the institution on affordability alert status.
`(4) EXEMPTIONS- Notwithstanding paragraph (3), an institution shall not
be placed on affordability alert status if, for any 3-year interval for
which sticker prices are computed under paragraph (1)--
`(A) with respect the the class of institutions described in paragraph
(6) to which the institution belongs, the sticker price of the institution
is in the lowest quartile of institutions within such class, as determined
by the Secretary, during the last year of such 3-year interval; or
`(B) the institution has a percentage change in its sticker price computed
under paragraph (1) that exceeds two times the rate of change in the
CPI over the same time period, but the dollar amount of the sticker
price increase is less than $500.
`(5) INFORMATION TO STATE AGENCIES- Any institution that reports under
paragraph (1)(B) that an agency or instrumentality of State government
or other entity participates in the determinations of tuition and fee
increases shall, prior to submitting any information to the Secretary
under this subsection, submit such information to, and request the comments
and input of, such agency, instrumentality, or entity. With respect to
any such institution, the Secretary shall provide a copy of any communication
by the Secretary with that institution to such agency, instrumentality,
or entity.
`(6) CLASSES OF INSTITUTIONS- For purposes of this subsection, the classes
of institutions shall be those sectors used by the Integrated Postsecondary
Education Data System, based on whether the institution is public, nonprofit
private, or for-profit private, and whether the institution has a 4-year,
2-year, or less than 2-year program of instruction.
`(7) DATA REJECTION- Nothing in this subsection shall be construed as
allowing the Secretary to reject the data submitted by an individual institution
of higher education.
`(f) Information to the Public- The Secretary shall work with public and
private entities to promote broad public awareness, particularly among middle
and high school students and their families, of the information made available
under this section, including by distribution to students who participate
in or receive benefits from means-tested federally funded education programs
and other Federal programs determined by the Secretary.
`(g) Fines- In addition to actions authorized in section 487(c), the Secretary
may impose a fine in an amount not to exceed $25,000 on an institution of
higher education for failing to provide the information required by this
section in a timely and accurate manner, or for failing to otherwise cooperate
with the National Center for Education Statistics regarding efforts to obtain
data under subsections (c) and (j) and pursuant to the program participation
agreement entered into under section 487.
`(h) GAO Study and Report-
`(1) GAO STUDY- The Comptroller General shall conduct a study of the policies
and procedures implemented by institutions in increasing the affordability
of postsecondary education. Such study shall include information with
respect to--
`(A) a list of those institutions that--
`(i) have reduced their sticker prices; or
`(ii) are within the least costly quartile of institutions within
each class described in subsection (e)(6);
`(B) policies implemented to stem the increase in tuition and fees and
institutional costs;
`(C) the extent to which room and board costs and prices changed;
`(D) the extent to which other services were altered to affect tuition
and fees;
`(E) the extent to which the institution's policies affected student
body demographics and time to completion;
`(F) what, if any, operational factors played a role in reducing tuition
and fees;
`(G) the extent to which academic quality was affected, and how;
`(H) if the institution is a public institution, the relationship between
State and local appropriations and the institution's tuition and fees;
`(I) the extent to which policies and practices reducing costs and prices
may be replicated from one institution to another; and
`(J) other information as necessary to determine best practices in increasing
the affordability of postsecondary education.
`(2) INTERIM AND FINAL REPORTS- The Comptroller General shall submit an
interim and a final report regarding the findings of the study required
by paragraph (1) to the appropriate authorizing committees of Congress.
The interim report shall be submitted not later than July 31, 2011, and
the final report shall be submitted not later than July 31, 2013.
`(i) Student Aid Recipient Survey-
`(1) SURVEY REQUIRED- The Secretary shall conduct a survey of student
aid recipients under title IV on a regular cycle and State-by-State basis,
but not less than once every 4 years--
`(A) to identify the population of students receiving Federal student
aid;
`(B) to describe the income distribution and other socioeconomic characteristics
of federally aided students;
`(C) to describe the combinations of aid from State, Federal, and private
sources received by students from all income groups;
`(D) to describe the debt burden of educational loan recipients and
their capacity to repay their education debts, and the impact of such
debt burden on career choices;
`(E) to describe the role played by the price of postsecondary education
in the determination by students of what institution to attend; and
`(F) to describe how the increased costs of textbooks and other instructional
materials affects the costs of postsecondary education to students.
`(2) SURVEY DESIGN- The survey shall be representative of full-time and
part-time, undergraduate, graduate, and professional and current and former
students in all types of institutions, and designed and administered in
consultation with the Congress and the postsecondary education community.
`(3) DISSEMINATION- The Commissioner of Education Statistics shall disseminate
the information resulting from the survey in both printed and electronic
form.
`(j) Regulations- The Secretary is authorized to issue such regulations
as may be necessary to carry out the provisions of this section.
`(k) Definitions- For the purposes of this section:
`(1) NET TUITION PRICE- The term `net tuition price' means the average
tuition and fees charged to a first-time, full-time, full-year undergraduate
student, minus the average grants provided to such students, for any academic
year.
`(2) STICKER PRICE- The term `sticker price' means the average tuition
and fees charged to a first-time, full-time, full-year undergraduate student
by an institution of higher education for any academic year.
`(3) CPI- The term `CPI' means the Consumer Price Index-All Urban Consumers
(Current Series).'.
SEC. 3. COLLEGE AFFORDABILITY DEMONSTRATION PROJECT.
Part G of title IV is amended by inserting after section 486 (20 U.S.C.
1093) the following new section:
`SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROJECT.
`(a) Purpose- It is the purpose of this section--
`(1) to provide, through a college affordability demonstration project,
for increased innovation in the delivery of higher education and student
financial aid in a manner resulting in reduced costs for students as well
as the institution by employing one or more strategies including accelerating
degree or program completion, increasing availability of, and access to,
distance components of education delivery, engaging in collaborative arrangements
with other institutions and organizations, and other alternative methodologies;
and
`(A) the most effective means of delivering student financial aid as
well as quality education;
`(B) the specific statutory and regulatory requirements that should
be altered to provide for more efficient and effective delivery of student
financial aid, as well as access to high quality distance education
programs, resulting in a student more efficiently completing postsecondary
education; and
`(C) the most effective methods of obtaining and managing institutional
resources.
`(b) Demonstration Project Authorized-
`(1) IN GENERAL- In accordance with the purposes described in subsection
(a) and the provisions of subsection (d), the Secretary is authorized
to select not more than 100 institutions of higher education, including
those applying as part of systems or consortia of such institutions, for
voluntary participation in the College Affordability Demonstration Project
in order to enable participating institutions to carry out such purposes
by providing programs of postsecondary education, and making available
student financial assistance under this title to students enrolled in
those programs, in a manner that would not otherwise meet the requirements
of this title.
`(2) WAIVERS- The Secretary is authorized to waive for any institutions
of higher education, or any system or consortia of institutions of higher
education, selected for participation in the College Affordability Demonstration
Project, any requirements of this Act or the regulations thereunder as
deemed necessary by the Secretary to meet the purpose described in subsection
(a)(1), and shall make a determination that the waiver can reasonably
be expected to result in reduced costs to students or institutions without
an increase in Federal program costs. The Secretary may not waive under
this paragraph the maximum award amounts for an academic year or loan
period.
`(3) ELIGIBLE APPLICANTS-
`(A) ELIGIBLE INSTITUTIONS- Except as provided in subparagraph (B),
only an institution of higher education that is eligible to participate
in programs under this title shall be eligible to participate in the
demonstration project authorized under this section.
`(B) PROHIBITION- An institution of higher education described in section
102(a)(1)(C) shall not be eligible to participate in the demonstration
project authorized under this section.
`(1) IN GENERAL- Each institution or system of institutions desiring to
participate in the demonstration project under this section shall submit
an application to the Secretary at such time and in such manner as the
Secretary may require.
`(2) CONTENTS OF APPLICATIONS- Each application for the college affordability
demonstration project shall include at least the following:
`(A) a description of the institution or system or consortium of institutions
and what quality assurance mechanisms are in place to ensure the integrity
of the Federal financial aid programs;
`(B) a description of the innovation or innovations being proposed and
the affected programs and students, including--
`(i) a description of any collaborative arrangements with other institutions
or organizations to reduce costs;
`(ii) a description of any expected economic impact of participation
in the project within the community in which the institution is located;
and
`(iii) a description of any means the institution will employ to reduce
the costs of instructional materials, such as textbooks;
`(C) a description of each regulatory or statutory requirement for which
waivers are sought, with a reason for each waiver;
`(D) a description of the expected outcomes of the program changes proposed,
including the estimated reductions in costs both for the institution
and for students;
`(E) an assurance from each institution in a system or consortium of
a commitment to fulfill its role as described in the application;
`(F) an assurance that the participating institution or system of institutions
will offer full cooperation with the ongoing evaluations of the demonstration
project provided for in this section; and
`(G) any other information or assurances the Secretary may require.
`(d) Selection- In selecting institutions to participate in the demonstration
project under this section, the Secretary shall take into account--
`(1) the number and quality of applications received, determined on the
basis of the contents required by subsection (c)(2);
`(2) the Department's capacity to oversee and monitor each institution's
participation;
`(A) financial responsibility;
`(B) administrative capability;
`(C) program or programs being offered via distance education, if applicable;
`(D) student completion rates; and
`(E) student loan default rates; and
`(4) the participation of a diverse group of institutions with respect
to size, mission, and geographic distribution.
`(e) Notification- The Secretary shall make available to the public and
to the authorizing committees a list of institutions selected to participate
in the demonstration project authorized by this section. Such notice shall
include a listing of the specific statutory and regulatory requirements
being waived for each institution and a description of the innovations being
demonstrated.
`(f) Evaluations and Reports-
`(1) EVALUATION- The Secretary shall evaluate the demonstration project
authorized under this section on a biennial basis. Such evaluations specifically
shall review--
`(A) the extent to which expected outcomes, including the estimated
reductions in cost, were achieved;
`(B) the number and types of students participating in the programs
offered, including the progress of participating students toward recognized
certificates or degrees and the extent to which participation in such
programs increased;
`(C) issues related to student financial assistance associated with
the innovations undertaken;
`(D) effective technologies and alternative methodologies for delivering
student financial assistance;
`(E) the extent of the cost savings to the institution, the student,
and the Federal Government resulting from the waivers provided, and
an estimate as to future cost savings for the duration of the demonstration
project;
`(F) the extent to which students saved money by completing their postsecondary
education sooner;
`(G) the extent to which the institution reduced its tuition and fees
and its costs by participating in the demonstration project
`(H) the extent to which any collaborative arrangements with other institutions
or organizations have reduced the participating institution's costs;
and
`(I) the extent to which statutory or regulatory requirements not waived
under the demonstration project present difficulties for students or
institutions.
`(2) POLICY ANALYSIS- The Secretary shall review current policies and
identify those policies that present impediments to the implementation
of innovations that result in cost savings and in expanding access to
education.
`(3) REPORTS- The Secretary shall provide a report to the authorizing
committees on a biennial basis regarding--
`(A) the demonstration project authorized under this section;
`(B) the results of the evaluations conducted under paragraph (1);
`(C) the cost savings to the Federal Government by the demonstration
project authorized by this section; and
`(D) recommendations for changes to increase the efficiency and effective
delivery of financial aid.
`(g) Oversight- In conducting the demonstration project authorized under
this section, the Secretary shall, on a continuing basis--
`(1) ensure compliance of institutions or systems of institutions with
the requirements of this title (other than the sections and regulations
that are waived under subsection (b)(2));
`(2) provide technical assistance to institutions in their application
to and participation in the demonstration project;
`(3) monitor fluctuations in the student population enrolled in the participating
institutions or systems of institutions;
`(4) monitor changes in financial assistance provided at the institution;
and
`(5) consult with appropriate accrediting agencies or associations and
appropriate State regulatory authorities.
`(h) Termination of Authority- The authority of the Secretary under this
section shall cease to be effective on October 1, 2012.'.
END
