Recoupment

(a) Clarifying the authority To recoup liabilities from title IV institutions Section 487(c)(1) (20 U.S.C. 1094(c)(1)) is amended by striking subparagraph (F) and inserting the following: (F) the limitation, suspension, or termination of the participation in any program under this title of an eligible institution, the recoupment of liabilities established pursuant to section 493E, or the imposition of a civil penalty under paragraph (3)(B) whenever the Secretary has determined, after reasonable notice and opportunity for hearing, that such institution has violated or failed to carry out any provision of this title, any regulation prescribed under this title, or any applicable special arrangement, agreement, or limitation, except that no period of suspension under this section shall exceed 60 days unless the institution and the Secretary agree to an extension or unless limitation or termination proceedings are initiated by the Secretary within that period of time.. (b) Recoupment of liabilities Part G of title IV (20 U.S.C. 1088 et seq.) is amended by adding at the end the following: 493E. Recoupment (a) In general The Secretary shall assess liabilities and seek to recoup funds provided under this title from an institution of higher education as a result of student loan discharges, findings from program reviews or compliance audits, or due to other forms of misconduct or noncompliance. (b) Waiver authority The Secretary may waive some or all of the liabilities described in subsection (a) based on the individual circumstances of the institution.. (c) Owner signatures Section 498(b) of the Higher Education Act of 1965 (20 U.S.C. 1099c(b)) is amended— (1) in paragraph (4), by striking and after the semicolon; (2) in paragraph (5), by striking the period at the end and inserting; and; and (3) by adding at the end the following: (6) requires both an authorized representative of the institution and, if applicable, an authorized representative of any entity with ownership and substantial control over the institution to sign the program participation agreement, as described under section 487, for the institution, which shall ensure that the institution and its owner, if applicable, agree to repay any liabilities assessed against the institution by the Secretary..