To ensure that students and taxpayers receive the full value of their education investments.
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 Student Rebate Act of 2012''.
SEC. 2. EDUCATIONAL LOSS RATIO.
(a) Program Participation Agreements.--Section 487(a) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)) is amended by adding at the end the following: ``(30) In the case of a proprietary institution of higher education (as defined in section 102(b)), such institution will-- ``(A) expend not less than 80 percent of such institution's revenues for an institutional fiscal year on educational and related expenses (as defined in subsection (i)(4)); or ``(B) for each institutional fiscal year in which the institution expends less than 80 percent of such revenues on such educational and related expenses, issue a rebate for each student who was enrolled at the institution during such institutional fiscal year, calculated and distributed in accordance with subsection (k).''. (b) Educational Loss Ratio.--Section 487 of such Act (20 U.S.C. 1094) is further amended-- (1) in subsection (i)-- (A) by redesignating paragraphs (4) through (6) as paragraphs (5) through (7), respectively; and (B) by inserting after paragraph (3), the following: ``(4) Educational and related expenses.--The term `educational and related expenses' shall be defined by the Secretary by regulation, except that such term shall not include revenue expended for advertising and promotion activities, excessive administrative expenses...