; and (2) by adding at the end the following: (7) Notwithstanding paragraph (4), if the Secretary has taken an enforcement action against a proprietary institution of higher education (as defined in section 102(b)), (which may include heightened oversight activities such as heightened cash monitoring, provisional certification, or requirements to obtain approval for new educational programs and locations), the Secretary may hold an executive officer of the institution personally liable for financial losses related to such action to the Federal Government, student assistance recipients, and other program participants for funds under this title. . 5. Government claims for discharge (a) FFEL and Direct loan programs Section 437(c)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1087(c)(1) ) is amended in the first sentence by striking against the institution and its affiliates and principals and inserting against the institution, its affiliates and principals, and any executive officer or board member of the institution . (b) Federal Perkins loans Section 464(g)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1087dd(g)(1) ) is amended by striking against the institution and the institution's affiliates and principals and inserting against the institution, the institution's affiliates and principals, and any executive officer or board member of the institution . 6. Program participation agreement 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 prohibit any individual who has been found guilty of defrauding students from being a member of the board of directors, the chief executive officer, or other executive officer of the institution. .