Protections and Regulation for Our Students Act or the PRO Students Act

This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to require proprietary institutions of higher education (IHEs) to derive at least 15% of their revenue from non-federal sources or risk becoming ineligible for title IV funding.

The legislation establishes a Proprietary Education Oversight Coordination Committee.

IHEs and other postsecondary educational institutions must meet certain requirements regarding entrance counseling for first-time borrowers, disclosure of clinical training agreement terms, disclosure of a mandatory program review, and preparation of students upon successful program completion.

IHEs and other post-secondary educational institutions must not use revenues derived from federal educational assistance funds for recruiting or marketing activities.

It amends title IV program participation requirements to broaden the incentive compensation ban, to prohibit predispute arbitration agreements in student contracts, to establish certain institutional requirements related to student default risk, and to prohibit retaliation against whistleblowers who disclose institutional violations.

The Department of Education (ED) must establish a complaint tracking system, conduct mandatory program reviews of institutions that pose a significant risk of failing to comply with title IV requirements, and recalculate the cohort default rate and redetermine title IV eligibility for institutions that engage in default manipulation.

The legislation permits a federal student loan borrower or ED, on behalf of multiple borrowers, to assert an IHE's unlawful acts or omissions as an affirmative claim or defense against student loan repayment. It also permits ED to impose civil penalties on IHEs that engage in substantial misrepresentation or other serious violations.

Accrediting agencies or associations must not require institutions to enter predispute arbitration agreements with students.