; and (2) in subsection (e), by inserting before the period the following: or, beginning on the date on which the final adjusted cohort default rates are published by the Secretary for fiscal year 2023 under section 435(m), an adjusted cohort default rate (as determined under section 435(m)) of less than 2 percent . 6. Cohort default rates (a) Ineligibility based on high default rates (1) In general Section 435(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1085(a) ) is amended— (A) in paragraph (7)(A), by adding at the end the following: (iii) Default management plan The default management plan required under clause (i) may not include placing students in forbearance as a means of reducing the cohort default rate or the adjusted cohort default rate of the institution. ; and (B) by adding at the end the following: (9) Ineligibility based on high adjusted cohort default rates (A) In general Except as provided in subparagraphs (B) and (D), beginning on the date that is one year after the date on which the final adjusted cohort default rates are published by the Secretary for not less than 3 fiscal years, in a case in which one of the following determinations is made with respect to an institution, such institution shall be ineligible to participate in a program under this title for the fiscal year for which the determination is made and for the two succeeding fiscal years: (i) The institution’s adjusted cohort default rate is greater than 20 percent for each of the three most recent fiscal years for which the final adjusted cohort default rates are published. (ii) With respect to the six most recent fiscal years for which the final adjusted cohort default rates are published— (I) the institution’s adjusted cohort default rate is greater than 15 percent for each such fiscal year