; and (2) the ban on incentive compensation under section 487(a)(20) of the Higher Education Act of 1965 ( 20 U.S.C. 1094(a)(20) ), as amended by subsection (b), is intended to preclude its use by institutions wishing to participate in such programs, at any point in the recruitment, enrollment, education, or employment placement of students. (b) Amendments Section 487 of the Higher Education Act of 1965 ( 20 U.S.C. 1094 ) is amended— (1) in subsection (a)— (A) in paragraph (19), by inserting housing facilities, after libraries, ; (B) by striking paragraph (20) and inserting the following: (20) (A) The institution or any third party acting on the institution’s behalf, including an institution affiliate or service provider to the institution, will not provide any commission, bonus, or other incentive payment to any person or entity at any phase of the academic process based directly or indirectly on success in— (i) securing enrollments or securing or awarding financial aid; (ii) performance in educational coursework; (iii) graduation; (iv) job placement; or (v) any other academic facet of a student’s enrollment in an institution of higher education. (B) The requirements of subparagraph (A) shall not apply to the recruitment of foreign students residing in foreign countries who are not eligible to receive Federal student assistance. ; and (C) by adding at the end the following new paragraphs: (30) (A) The institution— (i) shall not include a predispute arbitration agreement in any contract with a student or prospective student for enrollment at the institution