Reporting and disclosures from institutions of higher education

(a) Gainful employment and financial value transparency disclosures and warnings Section 498C, as added by section 101(b), is amended— (1) by redesignating subsection (e) as subsection (f); and (2) by inserting after subsection (d) the following: (e) Disclosures and warnings (1) In general For each gainful employment program or graduate or professional degree program of an institution that does not meet the standards described in subsection (b), the institution shall— (A) provide warnings to prospective students and enrolled students of the institution regarding the failing program status in a manner specified by the Secretary; and (B) shall require prospective students to acknowledge receipt of the warning. (f) Disclosure An institution of higher education shall provide the link to the website described in subsection (c)(2)(A)(ii) to prospective and enrolled students in a manner specified by the Secretary.. (b) Instructional spending data and disclosures Section 132 (20 U.S.C. 1015a) is amended— (1) by redesignating subsection (l) as subsection (n); and (2) by inserting after subsection (k) the following: (l) Investments in instruction and student services (1) Institutional expenditures (A) In general The Secretary shall establish definitions for calculating instructional expenditures that shall separately account for the expenditures of an institution of higher education on each of the following: (i) Instruction. (ii) Student services. (iii) Marketing. (iv) Recruitment. (v) Advertising. (vi) Lobbying. (B) Exclusions Expenditures on instruction and student services, as defined in accordance with clauses (i) and (ii) of subparagraph (A), shall not include expenditures on marketing, recruitment, advertising, compensation of executives or officers, or lobbying, or other pre-enrollment expenditures. (2) Reporting Each institution of higher education receiving Federal funds under title IV shall report to the Secretary— (A) the total dollar amount of title IV funds received by the institution; (B) the proportion of title IV funds spent on recruitment activities and marketing activities; (C) the proportion of title IV funds spent on instruction and student services; and (D) for each program of education or division of the institution for which the tuition is charged, the price of tuition relative to the institution’s allocation of revenues to spending on instruction and student services. (3) Disclosures by the Department of Education The Secretary shall make the disclosures reported under paragraph (2) publicly available on the College Navigator website.. (c) Transparency of online programs Section 132 (20 U.S.C. 1015a), as amended by subsection (b), is further amended by inserting after subsection (l), as added by subsection (b)(2), the following: (m) Improving transparency for online and contracted programs (1) Annual reporting requirements for third-party servicer activities Each institution of higher education that receives Federal funds under title IV shall report annually to the Secretary— (A) the name of each third-party servicer with which the institution contracts; and (B) for each such third-party servicer— (i) the names of any programs for which each such third-party servicer is contracted to provide support; (ii) the services each such third-party servicer is contracted to offer for each program; (iii) the number of students enrolled in any program for which the third-party servicer is contracted to provide services; (iv) whether the third-party servicer administers or provides any private or institutional student loan products; and (v) the third-party servicer’s total expenditures on advertising, marketing, and recruiting on behalf of the institution. (2) Disclosure requirements If an institution of higher education receiving Federal funds under title IV contracts with a third-party servicer to offer one or more programs of education, and such third-party servicer provides recruitment activities, retention activities, or similar activities (as specified by the Secretary) for the program— (A) the institution and third-party servicer shall prominently disclose for each such program of education, in a manner specified by the Secretary and using language developed by the Secretary, the nature of the relationship between the institution and third-party servicer— (i) in advertisements; (ii) in marketing materials; and (iii) on the website of the institution; and (B) individuals who are employed by the third-party servicer to provide admissions, recruitment, retention, or advising activities shall prominently disclose to prospective or enrolled students that the individuals are employees of that third-party servicer and not the institution, including in any communication about the program of education. (3) Annual reporting requirements for online education Each institution of higher education receiving Federal funds under title IV shall report annually to the Secretary— (A) the institution’s expenditures on activities to secure enrollments for each online, on-campus, and hybrid program, and its total expenditures for all activities of the institution; (B) the status of each student receiving Federal student aid as enrolled online, on-campus, or in a combination of both modalities, sufficient for the Secretary to calculate the total student enrollment, retention and completion rates, student loan borrowing levels, student loan repayment outcomes, and median earnings for each such program; and (C) the annual net price charged for each such program.. (d) Disclosure of material facts for proprietary institutions Section 498(c) (20 U.S.C. 1099c(c)), as amended by section 203, is further amended by adding at the end the following: (8) (A) The Secretary shall require each proprietary institution of higher education (as defined in section 102(c)) to file promptly with the Secretary— (i) all public filings that the institution files with the Securities and Exchange Commission that include references to matters that affect students, including— (I) mergers and acquisitions; (II) changes of ownership; (III) changes of leadership and board membership; (IV) school or campus closings; (V) civil lawsuits; (VI) law enforcement actions, investigations, subpoenas, and demand letters; and (VII) material change in financial status; and (ii) in the case of an institution that is not required to make disclosures to the Securities and Exchange Commission, notifications regarding matters that affect students similar to the filings described in clause (i), in a form and manner determined by the Secretary. (B) The Secretary shall promptly make all information received under subparagraph (A) available on the website of the Department..