Federal Accountability and Institutional Reform in Education Act of 1995

[AI summary unavailable — showing source text] Federal Accountability and Institutional Reform in Education Act of 1995 - Amends the Higher Education Act of 1965 (HEA) to revise the accountability provisions and reform certain programs of such Act. (Sec. 3) Revises provisions for student loan cohort default management. Requires proof that the institution was contacted, under certain administrative and fiscal procedures. Requires, under certain reimbursement provisions, a demonstration (rather than a certification) to the Secretary of Education that diligent attempts, including direct contact with the institution, have been made. Prohibits the Secretary from reimbursing or permitting any eligible lender, servicer, or guaranty agency (or its affiliates) who previously filed a claim for reimbursement on a loan to retain any proceeds from rehabilitation of a defaulted loan to the extent that such funds, when added to the amount of prior reimbursement, exceed the whole amount of the original principal of the loan. Revises provisions relating to notice to the Secretary, payment of loss, and cohort default rate. Directs the Secretary to: (1) report annually to the Congress that lenders, servicers and guaranty agencies have attested to…