Today's Law As Amended


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AB-1611 Private postsecondary education.(2017-2018)



As Amends the Law Today


SECTION 1.

 Section 94801.6 is added to the Education Code, to read:

94801.6.
 (a) For the purposes of this section, the following terms have the following meanings:
(1) An “academic year” is from July 1 to June 30.
(2) “Classification of instructional program” or “CIP” means taxonomy of instructional program classifications and descriptions developed by the United States Department of Education’s National Center for Education Statistics (NCES). The CIP code for a program is six digits.
(3) “Earnings assessment year” means a period consisting of four consecutive quarters commencing not less than six quarters after the end of the period covered by a graduating cohort.
(4) “Graduating cohort” means the persons completing a program at an institution for a particular academic year, commencing with the 2010–11 academic year. If the number of students in a graduating cohort is fewer than 30, sufficient additional previous consecutive academic years of graduates shall be included to achieve a cohort of at least 30 students.
(5) “Graduate earnings cohort” means the persons in a graduating cohort who remain after the bureau has excluded, to the extent practicable using data available from sources independent of the institution, every person who has died or suffered a total and permanent disability, or at any time during the earnings assessment year was enrolled in any other educational program on a not less than half-time basis or was serving in the military.
(6) “Federal student loans” means loans under Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.), not including loans made to parents of dependent students.
(7) “Private student loans” means education loans as defined in 34 CFR 601.2, including private education loans provided by the institution, and any other credit, including unpaid charges, extended by or on behalf of the institution that the student is obligated to repay, including extensions of credit described in clauses (1) and (2) of the definition of, and excluded from, the term ‘‘private education loan’’ in 34 CFR 601.2.
(8) “Debt-dependent program” means a program in which at least one-half of the students enrolling in an academic year, or at least one-half of the graduating cohort, carried federal student loan balances, or private student loan balances, or both, after completing or withdrawing from the program.
(b) An institution shall submit to the bureau, for each of its debt-dependent programs, the following information regarding each person in a graduating cohort:
(1) Information needed to identify the person.
(2) The name, CIP code, credential level, and length of the program.
(3) The date the person completed the program.
(4) The total amount the person received from federal student loans for enrollment at the institution.
(5) The total amount the person received from private student loans that the institution is, or should reasonably be, aware of.
(6) The total amount of tuition and fees assessed to the person for his or her entire enrollment in the program.
(c) The bureau shall do all of the following:
(1) Obtain from the Employment Development Department, pursuant to subdivision (aj) of Section 1095 of the Unemployment Insurance Code, the data necessary to determine the median and average earnings of persons in the graduate earnings cohort for one or more earnings assessment years, not including persons for whom no earnings information was available.
(2) Obtain from the Student Aid Commission or, to the extent authorized by federal law, the United States Department of Education the amount borrowed in federal student loans for each person in the graduating cohort.
(3) Determine the total amount of student loan debt incurred by each person in the graduating cohort for enrollment at the institution.
(4) Make available to the public all of the following data for each debt-dependent program offered by each institution:
(A) The program’s CIP code.
(B) The median and average earnings of the graduate earnings cohort for one or more earnings assessment years.
(C) The number of persons represented in the graduating cohort, the number of persons represented in the graduate earnings cohort, and the number of persons for whom earnings data were available from the Employment Development Department.
(D) The median and average federal student loan debt, private student loan debt, and total student loan debt of the graduate earnings cohort.
(E) The average tuition and fees assessed to students in the graduating cohort.
(F) The number of persons with federal student loans, with private student loans, and the number with both.
(d) The bureau may do any or any combination, including all, of the following:
(1) Require institutions to provide warnings to current and prospective students regarding programs with high debt burdens relative to earnings.
(2) Require an institution, as a condition of maintaining approval to operate for a program or for the institution, to restrict new loan-financed enrollment in a program.
(3) Deny an approval to operate for a new program if the program is substantially similar to a program that has exhibited high debt burdens, as determined by the bureau.
(e) This section shall be implemented only to the extent that implementation is in compliance with all state and federal privacy laws.
(f) This section shall take effect only if Part 668 of Chapter VI of Subtitle B of Title 34 of the Code of Federal Regulations is suspended or repealed.