Bill Text: FL S0146 | 2016 | Regular Session | Introduced
Bill Title: Federal Student Loan Default Rates
Spectrum: Bipartisan Bill
Status: (Failed) 2016-03-11 - Died in Appropriations [S0146 Detail]
Download: Florida-2016-S0146-Introduced.html
Florida Senate - 2016 SB 146 By Senator Ring 29-00059-16 2016146__ 1 A bill to be entitled 2 An act relating to federal student loan default rates; 3 amending s. 1005.04, F.S.; requiring certain 4 institutions to maintain a federal student loan cohort 5 default rate below a specified percentage; providing 6 that an institution is ineligible to receive certain 7 grant payments or maintain a license, and remains 8 ineligible, until the institution’s federal student 9 loan cohort default rate falls below a specified 10 percentage; requiring the Commission for Independent 11 Education to revoke the license of an institution 12 whose federal student loan cohort default rate exceeds 13 the threshold percentage; defining such an 14 institution’s period of ineligibility; amending s. 15 1005.31, F.S.; revising the minimum standards the 16 Commission for Independent Education must use to 17 evaluate an institution for licensure to include the 18 institution’s federal student loan cohort default 19 rate; requiring the commission to deny a renewal 20 license for an institution whose federal student loan 21 cohort default rate exceeds a specified percentage; 22 amending s. 1005.32, F.S.; revising the minimum 23 criteria for an independent postsecondary educational 24 institution to apply for a license by accreditation to 25 include a maximum percentage for the institution’s 26 federal student loan cohort default rate; amending s. 27 1011.81, F.S.; requiring Florida College System 28 institution performance funding for industry 29 certifications to take into consideration an 30 institution’s federal student loan cohort default 31 rate; amending s. 1011.905, F.S.; requiring State 32 University System institution performance funding 33 calculations to take into consideration an 34 institution’s federal student loan cohort default 35 rate; providing an effective date. 36 37 Be It Enacted by the Legislature of the State of Florida: 38 39 Section 1. Section 1005.04, Florida Statutes, is amended to 40 read: 41 1005.04 Fair consumer practices; federal student loan 42 default rates.— 43 (1) Every institution that is under the jurisdiction of the 44 commission or is exempt from the jurisdiction or purview of the 45 commission pursuant to s. 1005.06(1)(c) or (f) and that either 46 directly or indirectly solicits for enrollment any student 47 shall: 48 (a) Disclose to each prospective student a statement of the 49 purpose of such institution, its educational programs and 50 curricula, a description of its physical facilities, its status 51 regarding licensure, its fee schedule and policies regarding 52 retaining student fees if a student withdraws, and a statement 53 regarding the transferability of credits to and from other 54 institutions. The institution shall make the required 55 disclosures in writing at least 1 week prior to enrollment or 56 collection of any tuition from the prospective student. The 57 required disclosures may be made in the institution’s current 58 catalog; 59 (b) Use a reliable method to assess, before accepting a 60 student into a program, the student’s ability to complete 61 successfully the course of study for which he or she has 62 applied; 63 (c) Inform each student accurately about financial 64 assistance and obligations for repayment of loans; describe any 65 employment placement services provided and the limitations 66 thereof; and refrain from promising or implying guaranteed 67 placement, market availability, or salary amounts; 68 (d) Maintain a federal student loan cohort default rate, 69 released during the fall of each academic year, below 30 percent 70 for 3 consecutive years or at or below 40 percent for any given 71 year. An institution eligible for a William L. Boyd, IV, Florida 72 Resident Access Grant pursuant to s. 1009.89 and an institution 73 eligible for an Access to Better Learning and Education Grant 74 pursuant to s. 1009.891 whose federal student loan cohort 75 default rate exceeds these rates shall be ineligible to receive 76 payments from such grants for incoming students until the 77 institution’s federal student loan cohort default rate falls 78 below the threshold. The commission shall revoke the license of 79 an institution under its jurisdiction whose federal student loan 80 cohort default rate exceeds the threshold. The commission may 81 not reinstate an institution’s license until the institution’s 82 federal student loan cohort default rate falls below the 83 threshold. An institution’s ineligibility to receive such funds 84 or maintain a license is effective for the academic year 85 following the fall disclosure of the federal student loan cohort 86 default rate. The institution will remain ineligible for a 87 minimum of 1 academic year until the institution’s federal 88 student loan cohort default rate falls below the threshold; 89 (e) Provide to prospective and enrolled students accurate 90 information regarding the relationship of its programs to state 91 licensure requirements for practicing related occupations and 92 professions in Florida; 93 (f)(e)Ensure that all advertisements are accurate and not 94 misleading; 95 (g)(f)Publish and follow an equitable prorated refund 96 policy for all students, and follow both the federal refund 97 guidelines for students receiving federal financial assistance 98 and the minimum refund guidelines set by commission rule; 99 (h)(g)Follow the requirements of state and federal laws 100 that require annual reporting with respect to crime statistics 101 and physical plant safety and make those reports available to 102 the public; and 103 (i)(h)Publish and follow procedures for handling student 104 complaints, disciplinary actions, and appeals. 105 (2) In addition, institutions that are required to be 106 licensed by the commission shall disclose to prospective 107 students that additional information regarding the institution 108 may be obtained by contacting the Commission for Independent 109 Education, Department of Education, Tallahassee. 110 Section 2. Subsection (2) of section 1005.31, Florida 111 Statutes, is amended, and subsection (16) is added to that 112 section, to read: 113 1005.31 Licensure of institutions.— 114 (2) The commission shall develop minimum standards by which 115 to evaluate institutions for licensure. These standards must 116 include at least the institution’s name, financial stability, 117 purpose, administrative organization, admissions and 118 recruitment, educational programs and curricula, retention, 119 completion, career placement, federal student loan cohort 120 default rate as calculated by the United States Department of 121 Education, faculty, learning resources, student personnel 122 services, physical plant and facilities, publications, and 123 disclosure statements about the status of the institution with 124 respect to professional certification and licensure. The 125 commission may adopt rules to ensure that institutions licensed 126 under this section meet these standards in ways that are 127 appropriate to achieve the stated intent of this chapter, 128 including provisions for nontraditional or distance education 129 programs and delivery. 130 (16) The commission shall deny a renewal of an annual 131 license for an institution whose federal student loan cohort 132 default rate exceeds 30 percent. 133 Section 3. Present paragraph (e) of subsection (1) of 134 section 1005.32, Florida Statutes, is redesignated as paragraph 135 (f), and a new paragraph (e) is added to that subsection, to 136 read: 137 1005.32 Licensure by means of accreditation.— 138 (1) An independent postsecondary educational institution 139 that meets the following criteria may apply for a license by 140 means of accreditation from the commission: 141 (e) The institution’s federal student loan cohort default 142 rate, as calculated by the United States Department of 143 Education, does not exceed 30 percent. 144 Section 4. Subsection (2) of section 1011.81, Florida 145 Statutes, is amended to read: 146 1011.81 Florida College System Program Fund.— 147 (2) Performance funding for industry certifications for 148 Florida College System institutions must take into consideration 149 an institution’s federal student loan cohort default rate and is 150 contingent upon specific appropriation in the General 151 Appropriations Act and shall be determined as follows: 152 (a) Occupational areas for which industry certifications 153 may be earned, as established in the General Appropriations Act, 154 are eligible for performance funding. Priority shall be given to 155 the occupational areas emphasized in state, national, or 156 corporate grants provided to Florida educational institutions. 157 (b) The Chancellor of the Florida College System shall 158 identify the industry certifications eligible for funding on the 159 CAPE Postsecondary Industry Certification Funding List approved 160 by the State Board of Education pursuant to s. 1008.44, based on 161 the occupational areas specified in the General Appropriations 162 Act. 163 (c) Each Florida College System institution shall be 164 provided $1,000 for each industry certification earned by a 165 student. The maximum amount of funding appropriated for 166 performance funding pursuant to this subsection shall be limited 167 to $15 million annually. If funds are insufficient to fully fund 168 the calculated total award, such funds shall be prorated. 169 Section 5. Paragraph (c) of subsection (1) of section 170 1011.905, Florida Statutes, is amended to read: 171 1011.905 Performance funding for state universities.— 172 (1) State performance funds for the State University System 173 shall be based on indicators of system and institutional 174 attainment of performance expectations. For the 2012-2013 175 through at least the 2016-2017 fiscal year, the Board of 176 Governors shall review and rank each state university that 177 applies for performance funding, as provided in the General 178 Appropriations Act, based on the following formula: 179 (c) Fifty percent of a state university’s score shall be 180 based on: 181 1. Factors determined by the Board of Governors which 182 relate to increasing the probability that graduates who have 183 earned degrees in the programs described in paragraph (a) will 184 be employed in high-skill, high-wage, and high-demand 185 employment; and.186 2. An institution’s federal student loan cohort default 187 rate. 188 Section 6. This act shall take effect July 1, 2016.