S. 1135Senate115th Congress (2017-2019)In Committee

Pell Grant Restoration Act of 2017

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Updated April 15, 2026 at 3:23 PM UTC

The Pell Grant Restoration Act of 2017 changes the Higher Education Act so that students who attend a college that closes, is found to have committed fraud, or otherwise engages in misconduct can keep receiving Pell Grants without those awards counting toward the federal limit on how long a student can receive Pell aid. The amendment is aimed at protecting borrowers whose schools fail and who may have had related federal loans forgiven.

Key Provisions

Amends the definition of the Pell Grant “maximum period” to add an exception.
Grants received while a student had a federal loan that is later forgiven because the school closed, the student successfully defended a repayment claim, or the school was found to have committed fraud/misconduct will not count toward the student’s Pell Grant duration limit.
The exception also applies to periods when the student did not have a loan but would have qualified for loan forgiveness under the same circumstances.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

May 16, 2017

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SenateIntro Referral

Introduced in Senate

May 16, 2017

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

May 16, 2017

Bill Text

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Introduced in SenateIssued May 16, 2017

115th CONGRESS

1st Session

S. 1135

IN THE SENATE OF THE UNITED STATES

May 16, 2017

Ms. Warren (for herself, Ms. Hirono, Mr. Brown, and Mr. Murphy) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To amend the Higher Education Act of 1965 to clarify the Federal Pell Grant duration limits of borrowers who attend an institution of higher education that closes or commits fraud or other misconduct, and for other purposes.

Short title

This Act may be cited as the Pell Grant Restoration Act of 2017.

Federal Pell Grant duration limits

Section 401(c)(5) of the Higher Education Act of 1965 (20 U.S.C. 1070a(c)(5)) is amended—

(1)

by striking (5) The period and inserting the following:

(5) Maximum period.—

(A)

In general

Except as provided in subparagraph (B), the period

; and

(2)

by adding at the end the following:

(B)

Exception

(i)

In general

Any Federal Pell Grant that a student received during a period described in subclause (I) or (II) of clause (ii) shall not count towards the student’s duration limits under this paragraph.

(ii)

Applicable periods

Clause (i) shall apply with respect to any Federal Pell Grant awarded to a student to attend an institution—

(I)

during a period—

(aa)

for which the student received a loan under this title; and

(bb)

for which the loan described in item (aa) is forgiven under—

(AA)

section 437(c)(1) or 464(g)(1) due to the closing of the institution;

(BB)

section 455(h) due to the student’s successful assertion of a defense to repayment of the loan; or

(CC)

section 432(a)(6), section 685.215 of title 34, Code of Federal Regulations (or a successor regulation), or any other loan forgiveness provision or regulation under this Act, as a result of a determination by the Secretary or a court that the institution committed fraud or other misconduct; or

(II)

during a period for which the student did not receive a loan under this title but for which, if the student had received such a loan, the student would have qualified for loan forgiveness under subclause (I)(bb).