[DOCID: f:hr803.110]
From the House Reports Online via GPO Access
[wais.access.gpo.gov]
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-803
_______________________________________________________________________
HIGHER EDUCATION OPPORTUNITY ACT
----------
CONFERENCE REPORT
to accompany
H.R. 4137
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
July 30, 2008.--Ordered to be printed
110th Congress
2d Session HOUSE OF REPRESENTATIVES Report
110-803
_______________________________________________________________________
HIGHER EDUCATION OPPORTUNITY ACT
__________
CONFERENCE REPORT
to accompany
H.R. 4137
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
July 30, 2008.--Ordered to be printed
HIGHER EDUCATION OPPORTUNITY ACT
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-803
======================================================================
,
HIGHER EDUCATION OPPORTUNITY ACT
_______
July 30, 2008.--Ordered to be printed
_______
Mr. George Miller of California, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany H.R. 4137]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the Senate to the bill (H.R.
4137), to amend and extend the Higher Education Act of 1965,
and for other purposes, having met, after full and free
conference, have agreed to recommend and do recommend to their
respective Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Higher
Education Opportunity Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.
TITLE I--GENERAL PROVISIONS
Sec. 101. General definition of institution of higher education.
Sec. 102. Definition of institution of higher education for purposes of
title IV programs.
Sec. 103. Additional definitions.
Sec. 104. Protection of student speech and association rights.
Sec. 105. Treatment of territories and territorial student assistance.
Sec. 106. National Advisory Committee on Institutional Quality and
Integrity.
Sec. 107. Drug and alcohol abuse prevention.
Sec. 108. Prior rights and obligations.
Sec. 109. Diploma mills.
Sec. 110. Improved information concerning the Federal student financial
aid website.
Sec. 111. Transparency in college tuition for consumers.
Sec. 112. Textbook information.
Sec. 113. Database of student information prohibited.
Sec. 114. In-State tuition rates for Armed Forces members, spouses, and
dependent children.
Sec. 115. State higher education information system pilot program.
Sec. 116. State commitment to affordable college education.
Sec. 117. Performance-based organization for the delivery of Federal
student financial assistance.
Sec. 118. Procurement flexibility.
Sec. 119. Certification regarding the use of certain Federal funds.
Sec. 120. Institution and lender reporting and disclosure requirements.
TITLE II--TEACHER QUALITY ENHANCEMENT
Sec. 201. Teacher quality enhancement.
TITLE III--INSTITUTIONAL AID
Sec. 301. Program purpose.
Sec. 302. Definitions; eligibility.
Sec. 303. American Indian tribally controlled colleges and universities.
Sec. 304. Alaska Native and Native Hawaiian-serving institutions.
Sec. 305. Predominantly Black Institutions.
Sec. 306. Native American-serving, nontribal institutions.
Sec. 307. Assistance to Asian American and Native American Pacific
Islander-serving institutions.
Sec. 308. Part B definitions.
Sec. 309. Grants to institutions.
Sec. 310. Allotments.
Sec. 311. Professional or graduate institutions.
Sec. 312. Unexpended funds.
Sec. 313. Endowment Challenge Grants.
Sec. 314. Historically Black college and university capital financing.
Sec. 315. Programs in STEM fields.
Sec. 316. Investing in historically Black colleges and universities and
other minority-serving institutions.
Sec. 317. Technical assistance.
Sec. 318. Waiver authority.
Sec. 319. Authorization of appropriations.
Sec. 320. Technical corrections.
TITLE IV--STUDENT ASSISTANCE
PART A--Grants to Students in Attendance at Institutions of Higher
Education
Sec. 401. Federal Pell Grants.
Sec. 402. Academic competitiveness grants.
Sec. 403. Federal TRIO Programs.
Sec. 404. Gaining early awareness and readiness for undergraduate
programs.
Sec. 405. Academic Achievement Incentive Scholarships.
Sec. 406. Federal Supplemental Educational Opportunity Grants.
Sec. 407. Leveraging Educational Assistance Partnership program.
Sec. 408. Special programs for students whose families are engaged in
migrant and seasonal farmwork.
Sec. 409. Robert C. Byrd Honors Scholarship Program.
Sec. 410. Child care access means parents in school.
Sec. 411. Learning Anytime Anywhere Partnerships.
Sec. 412. TEACH Grants.
PART B--Federal Family Education Loan Program
Sec. 421. Limitations on amounts of loans covered by Federal insurance.
Sec. 422. Federal payments to reduce student interest costs.
Sec. 423. Voluntary flexible agreements.
Sec. 424. Federal PLUS loans.
Sec. 425. Federal consolidation loans.
Sec. 426. Default reduction program.
Sec. 427. Requirements for disbursement of student loans.
Sec. 428. Unsubsidized Stafford loan limits.
Sec. 429. Loan forgiveness for teachers employed by educational service
agencies.
Sec. 430. Loan forgiveness for service in areas of national need.
Sec. 431. Loan repayment for civil legal assistance attorneys.
Sec. 432. Reports to consumer reporting agencies and institutions of
higher education.
Sec. 433. Legal powers and responsibilities.
Sec. 434. Student loan information by eligible lenders.
Sec. 435. Consumer education information.
Sec. 436. Definitions of eligible institution and eligible lender.
Sec. 437. Discharge and cancellation rights in cases of disability.
Sec. 438. Conforming amendments for repeal of section 439.
PART C--Federal Work-Study Programs
Sec. 441. Authorization of appropriations.
Sec. 442. Allowance for books and supplies.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Additional funds for off-campus community service.
Sec. 447. Work colleges.
PART D--Federal Direct Student Loan
Sec. 451. Terms and conditions of loans.
Sec. 452. Funds for administrative expenses.
Sec. 453. Guaranty agency responsibilities and payments; reports and
cost estimates.
Sec. 454. Loan cancellation for teachers.
PART E--Federal Perkins Loans
Sec. 461. Extension of authority.
Sec. 462. Allowance for books and supplies.
Sec. 463. Agreements with institutions.
Sec. 464. Perkins loan terms and conditions.
Sec. 465. Cancellation for public service.
Sec. 466. Sense of Congress regarding Federal Perkins loans.
PART F--Need Analysis
Sec. 471. Cost of attendance.
Sec. 472. Discretion to make adjustments.
Sec. 473. Definitions.
PART G--General Provisions Relating to Student Assistance
Sec. 481. Definitions.
Sec. 482. Master calendar.
Sec. 483. Improvements to paper and electronic forms and processes.
Sec. 484. Model institution financial aid offer form.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations and State court judgments.
Sec. 487. Readmission requirements for servicemembers.
Sec. 488. Institutional and financial assistance information for
students.
Sec. 489. National Student Loan Data System.
Sec. 490. Early awareness of financial aid eligibility.
Sec. 491. Distance Education Demonstration Programs.
Sec. 492. Articulation agreements.
Sec. 493. Program participation agreements.
Sec. 494. Regulatory relief and improvement.
Sec. 494A. Transfer of allotments.
Sec. 494B. Purpose of administrative payments.
Sec. 494C. Advisory Committee on Student Financial Assistance.
Sec. 494D. Regional meetings and negotiated rulemaking.
Sec. 494E. Year 2000 requirements at the Department.
Sec. 494F. Technical amendment of income-based repayment.
PART H--Program Integrity
Sec. 495. Recognition of accrediting agency or association.
Sec. 496. Eligibility and certification procedures.
Sec. 497. Program review and data.
Sec. 498. Review of regulations.
PART I--Competitive Loan Auction Pilot Program
Sec. 499. Competitive loan auction pilot program evaluation.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 501. Authorized activities.
Sec. 502. Postbaccalaureate opportunities for Hispanic Americans.
Sec. 503. Applications.
Sec. 504. Cooperative arrangements.
Sec. 505. Authorization of appropriations.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 601. Findings; purposes; consultation; survey.
Sec. 602. Graduate and Undergraduate Language and Area Centers and
Programs.
Sec. 603. Language Resource Centers.
Sec. 604. Undergraduate International Studies and Foreign Language
Programs.
Sec. 605. Research; studies.
Sec. 606. Technological innovation and cooperation for foreign
information access.
Sec. 607. Selection of certain grant recipients.
Sec. 608. American overseas research centers.
Sec. 609. Authorization of appropriations for international and foreign
language studies.
Sec. 610. Conforming amendments.
Sec. 611. Business and international education programs.
Sec. 612. Minority foreign service professional development program.
Sec. 613. Institutional development.
Sec. 614. Study abroad program.
Sec. 615. Advanced degree in international relations.
Sec. 616. Internships.
Sec. 617. Financial assistance.
Sec. 618. Report.
Sec. 619. Gifts and donations.
Sec. 620. Authorization of appropriations for the Institute for
International Public Policy.
Sec. 621. Definitions.
Sec. 622. New provisions.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 701. Purpose.
Sec. 702. Jacob K. Javits Fellowship program.
Sec. 703. Graduate assistance in areas of national need.
Sec. 704. Thurgood Marshall Legal educational opportunity program.
Sec. 705. Sense of Congress.
Sec. 706. Masters degree programs at historically Black colleges and
universities and Predominantly Black Institutions.
Sec. 707. Fund for the improvement of postsecondary education.
Sec. 708. Repeal of the urban community service program.
Sec. 709. Programs to provide students with disabilities with a quality
higher education.
Sec. 710. Subgrants to nonprofit organizations.
TITLE VIII--ADDITIONAL PROGRAMS
Sec. 801. Additional programs.
Sec. 802. National Center for Research in Advanced Information and
Digital Technologies.
Sec. 803. Establishment of pilot program for course material rental.
TITLE IX--AMENDMENTS TO OTHER LAWS
PART A--Education of the Deaf Act of 1986
Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Agreement with Gallaudet University.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Cultural experiences grants.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Monitoring, evaluation, and reporting.
Sec. 908. Liaison for educational programs.
Sec. 909. Federal endowment programs for Gallaudet University and the
National Technical Institute for the Deaf.
Sec. 910. Oversight and effect of agreements.
Sec. 911. International students.
Sec. 912. Research priorities.
Sec. 913. National study on the education of the deaf.
Sec. 914. Authorization of appropriations.
PART B--United States Institute of Peace Act
Sec. 921. United States Institute of Peace Act.
PART C--The Higher Education Amendments of 1998; the Higher Education
Amendments of 1992
Sec. 931. Repeals.
Sec. 932. Grants to States for workplace and community transition
training for incarcerated individuals.
Sec. 933. Underground Railroad Educational and Cultural Program.
Sec. 934. Olympic Scholarships.
Sec. 935. Establishment of a Deputy Assistant Secretary for
International and Foreign Language Education.
PART D--Tribal College and Universities; Navajo Higher Education
subpart 1--tribal colleges and universities
Sec. 941. Reauthorization of the Tribally Controlled College or
University Assistance Act of 1978.
subpart 2--navajo higher education
Sec. 945. Short title.
Sec. 946. Reauthorization of Navajo Community College Act.
PART E--Omnibus Crime Control and Safe Streets Act of 1968
Sec. 951. Short title.
Sec. 952. Loan repayment for prosecutors and defenders.
PART F--Institutional Loan Repayment Assistance Programs
Sec. 961. Institutional loan forgiveness programs.
PART G--Minority Serving Institution Digital and Wireless Technology
Opportunity Program
Sec. 971. Minority Serving Institution Digital and Wireless Technology
Opportunity Program.
Sec. 972. Authorization of appropriations.
TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT
Sec. 1001. Short title.
Sec. 1002. Regulations.
Sec. 1003. Effective dates.
Subtitle A--Preventing Unfair and Deceptive Private Educational Lending
Practices and Eliminating Conflicts of Interest
Sec. 1011. Amendment to the Truth in Lending Act.
Sec. 1012. Civil liability.
Sec. 1013. Clerical amendment.
Subtitle B--Improved Disclosures for Private Education Loans
Sec. 1021. Private education loan disclosures and limitations.
Sec. 1022. Application of Truth in Lending Act to all private education
loans.
Subtitle C--College Affordability
Sec. 1031. Community Reinvestment Act credit for low-cost loans.
Subtitle D--Financial Literacy; Studies and Reports
Sec. 1041. Definitions.
Sec. 1042. Coordinated education efforts.
TITLE XI--STUDIES AND REPORTS
Sec. 1101. Study on foreign graduate medical schools.
Sec. 1102. Employment of postsecondary education graduates.
Sec. 1103. Study on IPEDS.
Sec. 1104. Report and study on articulation agreements.
Sec. 1105. Report on proprietary institutions of higher education.
Sec. 1106. Analysis of Federal regulations on institutions of higher
education.
Sec. 1107. Independent evaluation of distance education programs.
Sec. 1108. Review of costs and benefits of environmental, health, and
safety standards.
Sec. 1109. Study of minority male academic achievement.
Sec. 1110. Study on bias in standardized tests.
Sec. 1111. Endowment report.
Sec. 1112. Study of correctional postsecondary education.
Sec. 1113. Study of aid to less-than-half-time students.
Sec. 1114. Study on regional sensitivity in the needs analysis formula.
Sec. 1115. Study of the impact of student loan debt on public service.
Sec. 1116. Study on teaching students with reading disabilities.
Sec. 1117. Report on income contingent repayment through the income tax
withholding system.
Sec. 1118. Developing additional measures of degree completion.
Sec. 1119. Study on the financial and compliance audits of the Federal
student loan program.
Sec. 1120. Summit on sustainability.
Sec. 1121. Nursing school capacity.
Sec. 1122. Study and report on nonindividual information.
Sec. 1123. Feasibility study for student loan clearinghouse.
Sec. 1124. Study on Department of Education oversight of incentive
compensation ban.
Sec. 1125. Definition of authorizing committees.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in this
Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of the Higher Education Act of 1965 (20 U.S.C. 1001
et seq.).
SEC. 3. GENERAL EFFECTIVE DATE.
Except as otherwise provided in this Act or the amendments
made by this Act, this Act and the amendments made by this Act
shall take effect on the date of enactment of this Act.
TITLE I--GENERAL PROVISIONS
SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
(a) Amendments.--Section 101 (20 U.S.C. 1001) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting before
the semicolon the following: ``, or persons who
meet the requirements of section 484(d)(3)'';
and
(B) in paragraph (3), by inserting ``, or
awards a degree that is acceptable for
admission to a graduate or professional degree
program, subject to review and approval by the
Secretary'' after ``such a degree''; and
(2) by striking paragraph (2) of subsection (b) and
inserting the following:
``(2) a public or nonprofit private educational
institution in any State that, in lieu of the
requirement in subsection (a)(1), admits as regular
students individuals--
``(A) who are beyond the age of compulsory
school attendance in the State in which the
institution is located; or
``(B) who will be dually or concurrently
enrolled in the institution and a secondary
school.''.
(b) Effective Date.--The amendments made by this section
shall take effect on July 1, 2010.
SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF
TITLE IV PROGRAMS.
(a) International Medical Schools and Nursing Schools.--
Section 102(a)(2) (20 U.S.C. 1002(a)(2)) is amended--
(1) in subparagraph (A)--
(A) in the first sentence of the matter
preceding clause (i), by inserting ``nursing
school,'' after ``graduate medical school,'';
(B) in clause (i)--
(i) in the matter preceding
subclause (I), by inserting ``except as
provided in subparagraph
(B)(iii)(IV),'' before ``in the case'';
and
(ii) by striking subclause (II) and
inserting the following new subclause:
``(II) the institution--
``(aa) has or had a
clinical training
program that was
approved by a State as
of January 1, 1992; and
``(bb) continues to
operate a clinical
training program in at
least one State that is
approved by that
State;'';
(C) in clause (ii), by striking the period
at the end and inserting ``; or''; and
(D) by adding at the end the following:
``(iii) in the case of a nursing
school located outside of the United
States--
``(I) the nursing school
has an agreement with a
hospital, or accredited school
of nursing (as such terms are
defined in section 801 of the
Public Health Service Act (42
U.S.C. 296)), located in the
United States that requires the
students of the nursing school
to complete the students'
clinical training at such
hospital or accredited school
of nursing;
``(II) the nursing school
has an agreement with an
accredited school of nursing
located in the United States
providing that the students
graduating from the nursing
school located outside of the
United States also receive a
degree from the accredited
school of nursing located in
the United States;
``(III) the nursing school
certifies only Federal Stafford
Loans under section 428,
unsubsidized Federal Stafford
Loans under section 428H, or
Federal PLUS loans under
section 428B for students
attending the institution;
``(IV) the nursing school
reimburses the Secretary for
the cost of any loan defaults
for current and former students
included in the calculation of
the institution's cohort
default rate during the
previous fiscal year; and
``(V) not less than 75
percent of the individuals who
were students or graduates of
the nursing school, and who
took the National Council
Licensure Examination for
Registered Nurses in the year
preceding the year for which
the institution is certifying a
Federal Stafford Loan under
section 428, an unsubsidized
Federal Stafford Loan under
section 428H, or a Federal PLUS
loan under section 428B,
received a passing score on
such examination.''; and
(2) in subparagraph (B), by adding at the end the
following:
``(iii) Report.--
``(I) In general.--Not
later than 1 year after the
date of enactment of the Higher
Education Opportunity Act, the
advisory panel described in
clause (i) shall submit a
report to the Secretary and to
the authorizing committees
recommending eligibility
criteria for participation in
the loan programs under part B
of title IV for graduate
medical schools that--
``(aa) are located
outside of the United
States;
``(bb) do not meet
the requirements of
subparagraph (A)(i);
and
``(cc) have a
clinical training
program approved by a
State prior to January
1, 2008.
``(II) Recommendations.--In
the report described in
subclause (I), the advisory
panel's eligibility criteria
shall include recommendations
regarding the appropriate
levels of performance for
graduate medical schools
described in such subclause in
the following areas:
``(aa) Entrance
requirements.
``(bb) Retention
and graduation rates.
``(cc) Successful
placement of students
in United States
medical residency
programs.
``(dd) Passage rate
of students on the
United States Medical
Licensing Examination.
``(ee) The extent
to which State medical
boards have assessed
the quality of such
school's program of
instruction, including
through on-site
reviews.
``(ff) The extent
to which graduates of
such schools would be
unable to practice
medicine in 1 or more
States, based on the
judgment of a State
medical board.
``(gg) Any areas
recommended by the
Comptroller General of
the United States under
section 1101 of the
Higher Education
Opportunity Act.
``(hh) Any
additional areas the
Secretary may require.
``(III) Minimum eligibility
requirement.--In the
recommendations described in
subclause (II), the criteria
described in subparagraph
(A)(i)(I)(bb), as amended by
section 102(b) of the Higher
Education Opportunity Act,
shall be a minimum eligibility
requirement for a graduate
medical school described in
subclause (I) to participate in
the loan programs under part B
of title IV.
``(IV) Authority.--The
Secretary may--
``(aa) not earlier
than 180 days after the
submission of the
report described in
subclause (I), issue
proposed regulations
establishing criteria
for the eligibility of
graduate medical
schools described in
such subclause to
participate in the loan
programs under part B
of title IV based on
the recommendations of
such report; and
``(bb) not earlier
than one year after the
issuance of proposed
regulations under item
(aa), issue final
regulations
establishing such
criteria for
eligibility.''.
(b) Percentage Pass Rate.--Section 102(a)(2)(A)(i)(I)(bb)
(20 U.S.C. 1002(a)(2)(A)(i)(I)(bb)) is amended by striking
``60'' and inserting ``75''.
(c) Conforming Amendment Concerning 90/10 Enforcement.--
Section 102(b)(1) (20 U.S.C. 1002(b)(1)) is amended--
(1) in subparagraph (D), by adding ``and'' after
the semicolon;
(2) in subparagraph (E), by striking ``; and'' and
inserting a period; and
(3) by striking subparagraph (F).
(d) Additional Institutions.--
(1) Amendment.--Section 102 (20 U.S.C. 1002) is
further amended--
(A) in subsection (b)--
(i) by striking paragraph (1)(A)
and inserting the following:
``(A)(i) provides an eligible program of
training to prepare students for gainful
employment in a recognized occupation; or
``(ii)(I) provides a program leading to a
baccalaureate degree in liberal arts, and has
provided such a program since January 1, 2009;
and
``(II) is accredited by a recognized
regional accrediting agency or association, and
has continuously held such accreditation since
October 1, 2007, or earlier;''; and
(ii) by striking paragraph (2) and
inserting the following:
``(2) Additional institutions.--The term
`proprietary institution of higher education' also
includes a proprietary educational institution in any
State that, in lieu of the requirement in section
101(a)(1), admits as regular students individuals--
``(A) who are beyond the age of compulsory
school attendance in the State in which the
institution is located; or
``(B) who will be dually or concurrently
enrolled in the institution and a secondary
school.''; and
(B) by striking paragraph (2) of subsection
(c) and inserting the following:
``(2) Additional institutions.--The term
`postsecondary vocational institution' also includes an
educational institution in any State that, in lieu of
the requirement in section 101(a)(1), admits as regular
students individuals--
``(A) who are beyond the age of compulsory
school attendance in the State in which the
institution is located; or
``(B) who will be dually or concurrently
enrolled in the institution and a secondary
school.''.
(2) Rule of construction.--Nothing in the amendment
made by paragraph (1)(A)(i) to section 102(b)(1)(A) of
the Higher Education Act of 1965 (20 U.S.C.
1002(b)(1)(A)) shall be construed to negate or
supercede any State laws governing proprietary
institutions of higher education.
(e) Effective Date.--The amendments made by subsections
(a)(1), (b), and (d) shall take effect on July 1, 2010.
SEC. 103. ADDITIONAL DEFINITIONS.
(a) Additional Definitions.--
(1) Amendment.--Section 103 (20 U.S.C. 1003) is
amended by adding at the end the following:
``(17) Authorizing committees.--The term
`authorizing committees' means the Committee on Health,
Education, Labor, and Pensions of the Senate and the
Committee on Education and Labor of the House of
Representatives.
``(18) Critical foreign language.--Except as
otherwise provided, the term `critical foreign
language' means each of the languages contained in the
list of critical languages designated by the Secretary
in the Federal Register on August 2, 1985 (50 Fed. Reg.
31412; promulgated under the authority of section
212(d) of the Education for Economic Security Act
(repealed by section 2303 of the Augustus F. Hawkins-
Robert T. Stafford Elementary and Secondary School
Improvement Amendments of 1988)), as updated by the
Secretary from time to time and published in the
Federal Register, except that in the implementation of
this definition with respect to a specific title, the
Secretary may set priorities according to the purposes
of such title and the national security, economic
competitiveness, and educational needs of the United
States.
``(19) Distance education.--
``(A) In general.--Except as otherwise
provided, the term `distance education' means
education that uses one or more of the
technologies described in subparagraph (B)--
``(i) to deliver instruction to
students who are separated from the
instructor; and
``(ii) to support regular and
substantive interaction between the
students and the instructor,
synchronously or asynchronously.
``(B) Inclusions.--For the purposes of
subparagraph (A), the technologies used may
include--
``(i) the Internet;
``(ii) one-way and two-way
transmissions through open broadcast,
closed circuit, cable, microwave,
broadband lines, fiber optics,
satellite, or wireless communications
devices;
``(iii) audio conferencing; or
``(iv) video cassettes, DVDs, and
CD-ROMs, if the cassettes, DVDs, or CD-
ROMs are used in a course in
conjunction with any of the
technologies listed in clauses (i)
through (iii).
``(20) Diploma mill.--The term `diploma mill' means
an entity that--
``(A)(i) offers, for a fee, degrees,
diplomas, or certificates, that may be used to
represent to the general public that the
individual possessing such a degree, diploma,
or certificate has completed a program of
postsecondary education or training; and
``(ii) requires such individual to complete
little or no education or coursework to obtain
such degree, diploma, or certificate; and
``(B) lacks accreditation by an accrediting
agency or association that is recognized as an
accrediting agency or association of
institutions of higher education (as such term
is defined in section 102) by--
``(i) the Secretary pursuant to
subpart 2 of part H of title IV; or
``(ii) a Federal agency, State
government, or other organization or
association that recognizes accrediting
agencies or associations.
``(21) Early childhood education program.--The term
`early childhood education program' means--
``(A) a Head Start program or an Early Head
Start program carried out under the Head Start
Act (42 U.S.C. 9831 et seq.), including a
migrant or seasonal Head Start program, an
Indian Head Start program, or a Head Start
program or an Early Head Start program that
also receives State funding;
``(B) a State licensed or regulated child
care program; or
``(C) a program that--
``(i) serves children from birth
through age six that addresses the
children's cognitive (including
language, early literacy, and early
mathematics), social, emotional, and
physical development; and
``(ii) is--
``(I) a State
prekindergarten program;
``(II) a program authorized
under section 619 or part C of
the Individuals with
Disabilities Education Act; or
``(III) a program operated
by a local educational agency.
``(22) Poverty line.--The term `poverty line' means
the poverty line (as defined in section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2))
applicable to a family of the size involved.
``(23) Universal design.--The term `universal
design' has the meaning given the term in section 3 of
the Assistive Technology Act of 1998 (29 U.S.C. 3002).
``(24) Universal design for learning.--The term
`universal design for learning' means a scientifically
valid framework for guiding educational practice that--
``(A) provides flexibility in the ways
information is presented, in the ways students
respond or demonstrate knowledge and skills,
and in the ways students are engaged; and
``(B) reduces barriers in instruction,
provides appropriate accommodations, supports,
and challenges, and maintains high achievement
expectations for all students, including
students with disabilities and students who are
limited English proficient.''.
(2) Redesignation and reordering of definitions.--
Section 103 (as amended by paragraph (1)) (20 U.S.C.
1003) is further amended by reordering paragraphs (1)
through (16) and the paragraphs added by paragraph (1)
of this subsection in alphabetical order based on the
headings of such paragraphs, and renumbering such
paragraphs as so reordered.
(b) Conforming Amendments.--The Act (20 U.S.C. 1001 et
seq.) is amended--
(1) in section 131(a)(3)(B) (20 U.S.C.
1015(a)(3)(B)), by striking ``Committee on Labor and
Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives'' and inserting ``authorizing
committees'';
(2) in section 141(d)(4)(B) (20 U.S.C.
1018(d)(4)(B)), by striking ``Committee on Education
and the Workforce of the House of Representatives and
the Committee on Labor and Human Resources of the
Senate'' and inserting ``authorizing committees'';
(3) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)),
by striking ``to the Committee on Appropriations'' and
all that follows through ``House of Representatives''
and inserting ``to the Committee on Appropriations of
the Senate, the Committee on Appropriations of the
House of Representatives, and the authorizing
committees'';
(4) in section 428 (20 U.S.C. 1078)--
(A) in subsection (c)(9)(K), by striking
``House Committee on Education and the
Workforce and the Senate Committee on Labor and
Human Resources'' and inserting ``authorizing
committees'';
(B) in the matter following paragraph (2)
of subsection (g), by striking ``Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the
House of Representatives'' and inserting
``authorizing committees'';
(C) in subsection (j)(9)(A) (as added by
section 5(a) of the Ensuring Continued Access
to Student Loans Act of 2008), by striking
``Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on
Education and Labor of the House of
Representatives'' each place the term appears
and inserting ``authorizing committees''; and
(D) in subsection (n)(4), by striking
``Committee on Education and the Workforce of
the House of Representatives and the Committee
on Labor and Human Resources of the Senate''
and inserting ``authorizing committees'';
(5) in section 428A(c) (20 U.S.C. 1078-1(c))--
(A) in the matter preceding subparagraph
(A) of paragraph (2), by striking
``Chairperson'' and all that follows through
``House of Representatives'' and inserting
``members of the authorizing committees'';
(B) in paragraph (3), by striking
``Chairperson'' and all that follows through
``House of Representatives'' and inserting
``members of the authorizing committees''; and
(C) in paragraph (5), by striking
``Chairperson'' and all that follows through
``House of Representatives'' and inserting
``members of the authorizing committees'';
(6) in section 432 (20 U.S.C. 1082)--
(A) in subsection (f)(1)(C), by striking
``the Committee on Education and the Workforce
of the House of Representatives or the
Committee on Labor and Human Resources of the
Senate'' and inserting ``either of the
authorizing committees''; and
(B) in the matter following subparagraph
(D) of subsection (n)(3), by striking
``Committee on Education and the Workforce of
the House of Representatives and the Committee
on Labor and Human Resources of the Senate''
and inserting ``authorizing committees'';
(7) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), by
striking ``Committee on Education and the Workforce of
the House of Representatives and the Committee on Labor
and Human Resources of the Senate'' and inserting
``authorizing committees'';
(8) in section 455(b)(8)(B) (20 U.S.C.
1087e(b)(8)(B)), by striking ``Committee on Labor and
Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives'' and inserting ``authorizing
committees'';
(9) in section 482(d) (20 U.S.C. 1089(d)), by
striking ``Committee on Labor and Human Resources of
the Senate and the Committee on Education and Labor of
the House of Representatives'' and inserting
``authorizing committees'';
(10) in section 483(c) (20 U.S.C. 1090(c)), by
striking ``Committee on Labor and Human Resources of
the Senate and the Committee on Education and the
Workforce of the House of Representatives'' and
inserting ``authorizing committees'';
(11) in section 485(f)(5)(A) (20 U.S.C.
1092(f)(5)(A)), by striking ``Committee on Education
and the Workforce of the House of Representatives and
the Committee on Labor and Human Resources of the
Senate'' and inserting ``authorizing committees'';
(12) in section 486(e) (20 U.S.C. 1093(e)), by
striking ``Committee on Labor and Human Resources of
the Senate and the Committee on Education and the
Workforce of the House of Representatives'' and
inserting ``authorizing committees''; and
(13) in section 487A(a)(5) (20 U.S.C. 1094a(a)(5)),
by striking ``Committee on Labor and Human Resources of
the Senate and the Committee on Education and the
Workforce of the House of Representatives'' and
inserting ``authorizing committees''.
SEC. 104. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.
Section 112 (20 U.S.C. 1011a) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before ``It is the
sense''; and
(B) by adding at the end the following:
``(2) It is the sense of Congress that--
``(A) the diversity of institutions and educational
missions is one of the key strengths of American higher
education;
``(B) individual institutions of higher education
have different missions and each institution should
design its academic program in accordance with its
educational goals;
``(C) an institution of higher education should
facilitate the free and open exchange of ideas;
``(D) students should not be intimidated, harassed,
discouraged from speaking out, or discriminated
against;
``(E) students should be treated equally and
fairly; and
``(F) nothing in this paragraph shall be construed
to modify, change, or infringe upon any
constitutionally protected religious liberty, freedom,
expression, or association.''; and
(2) in subsection (b)(1), by inserting ``, provided
that the imposition of such sanction is done
objectively and fairly'' after ``higher education''.
SEC. 105. TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT ASSISTANCE.
Section 113 (20 U.S.C. 1011b) is amended--
(1) by striking ``TREATMENT OF TERRITORIES AND
TERRITORIAL STUDENT ASSISTANCE'' in the heading of such
section and inserting ``TERRITORIAL WAIVER AUTHORITY'';
(2) by striking ``(a) Waiver Authority.--''; and
(3) by striking subsection (b).
SEC. 106. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
(a) Amendment.--Section 114 (20 U.S.C. 1011c) is amended to
read as follows:
``SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
``(a) Establishment.--There is established in the
Department a National Advisory Committee on Institutional
Quality and Integrity (in this section referred to as the
`Committee') to assess the process of accreditation and the
institutional eligibility and certification of institutions of
higher education (as defined in section 102) under title IV.
``(b) Membership.--
``(1) In general.--The Committee shall have 18
members, of which--
``(A) six members shall be appointed by the
Secretary;
``(B) six members shall be appointed by the
Speaker of the House of Representatives, three
of whom shall be appointed on the
recommendation of the majority leader of the
House of Representatives, and three of whom
shall be appointed on the recommendation of the
minority leader of the House of
Representatives; and
``(C) six members shall be appointed by the
President pro tempore of the Senate, three of
whom shall be appointed on the recommendation
of the majority leader of the Senate, and three
of whom shall be appointed on the
recommendation of the minority leader of the
Senate.
``(2) Qualifications.--Individuals shall be
appointed as members of the Committee--
``(A) on the basis of the individuals'
experience, integrity, impartiality, and good
judgment;
``(B) from among individuals who are
representatives of, or knowledgeable
concerning, education and training beyond
secondary education, representing all sectors
and types of institutions of higher education
(as defined in section 102); and
``(C) on the basis of the individuals'
technical qualifications, professional
standing, and demonstrated knowledge in the
fields of accreditation and administration in
higher education.
``(3) Terms of members.--Except as provided in
paragraph (5), the term of office of each member of the
Committee shall be for six years, except that any
member appointed to fill a vacancy occurring prior to
the expiration of the term for which the member's
predecessor was appointed shall be appointed for the
remainder of such term.
``(4) Vacancy.--A vacancy on the Committee shall be
filled in the same manner as the original appointment
was made not later than 90 days after the vacancy
occurs. If a vacancy occurs in a position to be filled
by the Secretary, the Secretary shall publish a Federal
Register notice soliciting nominations for the position
not later than 30 days after being notified of the
vacancy.
``(5) Initial terms.--The terms of office for the
initial members of the Committee shall be--
``(A) three years for members appointed
under paragraph (1)(A);
``(B) four years for members appointed
under paragraph (1)(B); and
``(C) six years for members appointed under
paragraph (1)(C).
``(6) Chairperson.--The members of the Committee
shall select a chairperson from among the members.
``(c) Functions.--The Committee shall--
``(1) advise the Secretary with respect to
establishment and enforcement of the standards of
accrediting agencies or associations under subpart 2 of
part H of title IV;
``(2) advise the Secretary with respect to the
recognition of a specific accrediting agency or
association;
``(3) advise the Secretary with respect to the
preparation and publication of the list of nationally
recognized accrediting agencies and associations;
``(4) advise the Secretary with respect to the
eligibility and certification process for institutions
of higher education under title IV, together with
recommendations for improvements in such process;
``(5) advise the Secretary with respect to the
relationship between--
``(A) accreditation of institutions of
higher education and the certification and
eligibility of such institutions; and
``(B) State licensing responsibilities with
respect to such institutions; and
``(6) carry out such other advisory functions
relating to accreditation and institutional eligibility
as the Secretary may prescribe by regulation.
``(d) Meeting Procedures.--
``(1) Schedule.--
``(A) Biannual meetings.--The Committee
shall meet not less often than twice each year,
at the call of the Chairperson.
``(B) Publication of date.--The Committee
shall submit the date and location of each
meeting in advance to the Secretary, and the
Secretary shall publish such information in the
Federal Register not later than 30 days before
the meeting.
``(2) Agenda.--
``(A) Establishment.--The agenda for a
meeting of the Committee shall be established
by the Chairperson and shall be submitted to
the members of the Committee upon notification
of the meeting.
``(B) Opportunity for public comment.--The
agenda shall include, at a minimum, opportunity
for public comment during the Committee's
deliberations.
``(3) Secretary's designee.--The Secretary shall
designate an employee of the Department to serve as the
Secretary's designee to the Committee, and the
Chairperson shall invite the Secretary's designee to
attend all meetings of the Committee.
``(4) Federal advisory committee act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall apply to
the Committee, except that section 14 of such Act shall
not apply.
``(e) Report and Notice.--
``(1) Notice.--The Secretary shall annually publish
in the Federal Register--
``(A) a list containing, for each member of
the Committee--
``(i) the member's name;
``(ii) the date of the expiration
of the member's term of office; and
``(iii) the name of the individual
described in subsection (b)(1) who
appointed the member; and
``(B) a solicitation of nominations for
each expiring term of office on the Committee
of a member appointed by the Secretary.
``(2) Report.--Not later than the last day of each
fiscal year, the Committee shall make available an
annual report to the Secretary, the authorizing
committees, and the public. The annual report shall
contain--
``(A) a detailed summary of the agenda and
activities of, and the findings and
recommendations made by, the Committee during
the fiscal year preceding the fiscal year in
which the report is made;
``(B) a list of the date and location of
each meeting during the fiscal year preceding
the fiscal year in which the report is made;
``(C) a list of the members of the
Committee; and
``(D) a list of the functions of the
Committee, including any additional functions
established by the Secretary through
regulation.
``(f) Termination.--The Committee shall terminate on
September 30, 2014.''.
(b) Transition.--Notwithstanding section 114 of the Higher
Education Act of 1965 (20 U.S.C. 1011c) (as in effect before,
during, and after the date of enactment of this Act)--
(1) the term of each member appointed to the
National Advisory Committee on Institutional Quality
and Integrity before the date of enactment of this Act
shall expire on the date of enactment of this Act;
(2) no new members shall be appointed to the
National Advisory Committee on Institutional Quality
and Integrity during the period beginning on the date
of enactment of this Act and ending on January 31,
2009; and
(3) no meeting of the National Advisory Committee
on Institutional Quality and Integrity shall be
convened during such period.
(c) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 2009.
SEC. 107. DRUG AND ALCOHOL ABUSE PREVENTION.
Section 120 (20 U.S.C. 1011i) is amended--
(1) in subsection (a)(2)--
(A) in subparagraph (A), by striking
``and'' after the semicolon;
(B) by redesignating subparagraph (B) as
subparagraph (D); and
(C) by inserting after subparagraph (A) the
following:
``(B) determine the number of drug and
alcohol-related violations and fatalities
that--
``(i) occur on the institution's
campus (as defined in section
485(f)(6)), or as part of any of the
institution's activities; and
``(ii) are reported to campus
officials;
``(C) determine the number and type of
sanctions described in paragraph (1)(E) that
are imposed by the institution as a result of
drug and alcohol-related violations and
fatalities on the institution's campus or as
part of any of the institution's activities;
and'';
(2) in subsection (e)(5), by striking
``$5,000,000'' and all that follows through the period
at the end and inserting ``such sums as may be
necessary for fiscal year 2009 and each of the five
succeeding fiscal years.''; and
(3) by striking subsection (f).
SEC. 108. PRIOR RIGHTS AND OBLIGATIONS.
Section 121(a) (20 U.S.C. 1011j(a)) is amended--
(1) in paragraph (1), by striking ``1999 and for
each of the 4 succeeding fiscal years'' and inserting
``2009 and for each succeeding fiscal year''; and
(2) in paragraph (2), by striking ``1999 and for
each of the 4 succeeding fiscal years'' and inserting
``2009 and for each succeeding fiscal year''.
SEC. 109. DIPLOMA MILLS.
Part B of title I (20 U.S.C. 1011 et seq.) is further
amended by adding at the end the following:
``SEC. 123. DIPLOMA MILLS.
``(a) Information to the Public.--The Secretary shall
maintain information and resources on the Department's website
to assist students, families, and employers in understanding
what a diploma mill is and how to identify and avoid diploma
mills.
``(b) Collaboration.--The Secretary shall continue to
collaborate with the United States Postal Service, the Federal
Trade Commission, the Department of Justice (including the
Federal Bureau of Investigation), the Internal Revenue Service,
and the Office of Personnel Management to maximize Federal
efforts to--
``(1) prevent, identify, and prosecute diploma
mills; and
``(2) broadly disseminate to the public information
about diploma mills, and resources to identify diploma
mills.''.
SEC. 110. IMPROVED INFORMATION CONCERNING THE FEDERAL STUDENT FINANCIAL
AID WEBSITE.
(a) Promotion of Federal Student Financial Aid Website.--
Section 131 (20 U.S.C. 1015) is amended by striking subsection
(d) and inserting the following:
``(d) Promotion of the Department of Education Federal
Student Financial Aid Website.--The Secretary shall display a
link to the Federal student financial aid website of the
Department in a prominent place on the homepage of the
Department's website.
``(e) Enhanced Student Financial Aid Information.--
``(1) Implementation.--The Secretary shall continue
to improve the usefulness and accessibility of the
information provided by the Department on college
planning and student financial aid.
``(2) Dissemination.--The Secretary shall continue
to make the availability of the information on the
Federal student financial aid website of the Department
widely known, through a major media campaign and other
forms of communication.
``(3) Coordination.--As a part of the efforts
required under this subsection, the Secretary shall
create one website accessible from the Department's
website that fulfills the requirements under
subsections (b), (f), and (g).''.
(b) Improved Information Concerning Financial Aid for
Military Members and Veterans.--Section 131 (as amended by
subsection (a)) (20 U.S.C. 1015) is further amended by adding
at the end the following:
``(f) Improved Availability and Coordination of Information
Concerning Student Financial Aid Programs for Military Members
and Veterans.--
``(1) Coordination.--The Secretary, in coordination
with the Secretary of Defense and the Secretary of
Veterans Affairs, shall create a searchable website
that--
``(A) contains information, in simple and
understandable terms, about all Federal and
State student financial assistance, readmission
requirements under section 484C, and other
student services, for which members of the
Armed Forces (including members of the National
Guard and Reserves), veterans, and the
dependents of such members or veterans may be
eligible; and
``(B) is easily accessible through the
website described in subsection (e)(3).
``(2) Implementation.--Not later than one year
after the date of enactment of the Higher Education
Opportunity Act, the Secretary shall make publicly
available the Armed Forces information website
described in paragraph (1).
``(3) Dissemination.--The Secretary, in
coordination with the Secretary of Defense and the
Secretary of Veterans Affairs, shall make the
availability of the Armed Forces information website
described in paragraph (1) widely known to members of
the Armed Forces (including members of the National
Guard and Reserves), veterans, the dependents of such
members or veterans, States, institutions of higher
education, and the general public.
``(4) Definition.--In this subsection, the term
`Federal and State student financial assistance' means
any grant, loan, work assistance, tuition assistance,
scholarship, fellowship, or other form of financial aid
for pursuing a postsecondary education that is--
``(A) administered, sponsored, or supported
by the Department of Education, the Department
of Defense, the Department of Veterans Affairs,
or a State; and
``(B) available to members of the Armed
Forces (including members of the National Guard
and Reserves), veterans, or the dependents of
such members or veterans.
``(g) Promotion of Availability of Information Concerning
Other Student Financial Aid Programs.--
``(1) Definition.--For purposes of this subsection,
the term `nondepartmental student financial assistance
program' means any grant, loan, scholarship,
fellowship, or other form of financial aid for students
pursuing a postsecondary education that is--
``(A) distributed directly to the student
or to the student's account at an institution
of higher education; and
``(B) operated, sponsored, or supported by
a Federal department or agency other than the
Department of Education.
``(2) Availability of other student financial aid
information.--The Secretary shall ensure that--
``(A) not later than 90 days after the
Secretary receives the information required
under paragraph (3), the eligibility
requirements, application procedures, financial
terms and conditions, and other relevant
information for each nondepartmental student
financial assistance program are searchable and
accessible through the Federal student
financial aid website in a manner that is
simple and understandable for students and the
students' families; and
``(B) the website displaying the
information described in subparagraph (A)
includes a link to the National Database on
Financial Assistance for the Study of Science,
Technology, Engineering, and Mathematics
pursuant to paragraph (4), and the information
on military benefits under subsection (f), once
such Database and information are available.
``(3) Nondepartmental student financial assistance
programs.--The Secretary shall request all Federal
departments and agencies to provide the information
described in paragraph (2)(A), and each Federal
department or agency shall--
``(A) promptly respond to surveys or other
requests from the Secretary for the information
described in such paragraph; and
``(B) identify for the Secretary any
nondepartmental student financial assistance
program operated, sponsored, or supported by
such Federal department or agency.
``(4) National STEM database.--
``(A) In general.--The Secretary shall
establish and maintain, on the website
described in subsection (e)(3), a National
Database on Financial Assistance for the Study
of Science, Technology, Engineering, and
Mathematics (in this paragraph referred to as
the `STEM Database'). The STEM Database shall
consist of information on scholarships,
fellowships, and other programs of Federal,
State, local, and, to the maximum extent
practicable, private financial assistance
available for the study of science, technology,
engineering, or mathematics at the
postsecondary and postbaccalaureate levels.
``(B) Database contents.--The information
maintained on the STEM Database shall be
displayed on the website in the following
manner:
``(i) Separate information.--The
STEM Database shall provide separate
information for each of the fields of
science, technology, engineering, and
mathematics, and for postsecondary and
postbaccalaureate programs of financial
assistance.
``(ii) Information on targeted
assistance.--The STEM Database shall
provide specific information on any
program of financial assistance that is
targeted to individuals based on
financial need, merit, or student
characteristics.
``(iii) Contact and website
information.--The STEM Database shall
provide--
``(I) standard contact
information that an interested
person may use to contact a
sponsor of any program of
financial assistance included
in the STEM Database; and
``(II) if such sponsor
maintains a public website, a
link to the website.
``(iv) Search and match
capabilities.--The STEM Database
shall--
``(I) have a search
capability that permits an
individual to search for
information on the basis of
each category of the
information provided through
the STEM Database and on the
basis of combinations of
categories of the information
provided, including--
``(aa) whether the
financial assistance is
need- or merit-based;
and
``(bb) by relevant
academic majors; and
``(II) have a match
capability that--
``(aa) searches the
STEM Database for all
financial assistance
opportunities for which
an individual may be
qualified to apply,
based on the student
characteristics
provided by such
individual; and
``(bb) provides
information to an
individual for only
those opportunities for
which such individual
is qualified, based on
the student
characteristics
provided by such
individual.
``(v) Recommendation and
disclaimer.--The STEM Database shall
provide, to the users of the STEM
Database--
``(I) a recommendation that
students and families should
carefully review all of the
application requirements prior
to applying for any aid or
program of student financial
assistance; and
``(II) a disclaimer that
the non-Federal programs of
student financial assistance
presented in the STEM Database
are not provided or endorsed by
the Department or the Federal
Government.
``(C) Compilation of financial assistance
information.--In carrying out this paragraph,
the Secretary shall--
``(i) consult with public and
private sources of scholarships,
fellowships, and other programs of
student financial assistance; and
``(ii) make easily available a
process for such entities to provide
regular and updated information about
the scholarships, fellowships, or other
programs of student financial
assistance.
``(D) Contract authorized.--In carrying out
the requirements of this paragraph, the
Secretary is authorized to enter into a
contract with a private entity with
demonstrated expertise in creating and
maintaining databases such as the one required
under this paragraph, under which contract the
entity shall furnish, and regularly update, all
of the information required to be maintained on
the STEM Database.
``(5) Dissemination of information.--The Secretary
shall take such actions, on an ongoing basis, as may be
necessary to disseminate information under this
subsection and to encourage the use of the information
by interested parties, including sending notices to
secondary schools and institutions of higher
education.''.
(c) No User Fees for Department Financial Aid Websites.--
Section 131 (as amended by subsection (b)) (20 U.S.C. 1015) is
further amended by adding at the end the following:
``(h) No User Fees for Department Financial Aid Websites.--
No fee shall be charged to any individual to access--
``(1) a database or website of the Department that
provides information about higher education programs or
student financial assistance, including the College
Navigator website (or successor website) and the
websites and databases described in this section and
section 132; or
``(2) information about higher education programs
or student financial assistance available through a
database or website of the Department.''.
SEC. 111. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
Part C of title I (20 U.S.C. 1015) is amended by adding at
the end the following:
``SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
``(a) Definitions.--In this section:
``(1) College navigator website.--The term `College
Navigator website' means the College Navigator website
operated by the Department and includes any successor
website.
``(2) Cost of attendance.--The term `cost of
attendance' means the average annual cost of tuition
and fees, room and board, books, supplies, and
transportation for an institution of higher education
for a first-time, full-time undergraduate student
enrolled in the institution.
``(3) Net price.--The term `net price' means the
average yearly price actually charged to first-time,
full-time undergraduate students receiving student aid
at an institution of higher education after deducting
such aid, which shall be determined by calculating the
difference between--
``(A) the institution's cost of attendance
for the year for which the determination is
made; and
``(B) the quotient of--
``(i) the total amount of need-
based grant aid and merit-based grant
aid, from Federal, State, and
institutional sources, provided to such
students enrolled in the institution
for such year; and
``(ii) the total number of such
students receiving such need-based
grant aid or merit-based grant aid for
such year.
``(4) Tuition and fees.--The term `tuition and
fees' means the average annual cost of tuition and fees
for an institution of higher education for first-time,
full-time undergraduate students enrolled in the
institution.
``(b) Calculations for Public Institutions.--In making the
calculations regarding cost of attendance, net price, and
tuition and fees under this section with respect to a public
institution of higher education, the Secretary shall calculate
the cost of attendance, net price, and tuition and fees at such
institution in the manner described in subsection (a), except
that--
``(1) the cost of attendance, net price, and
tuition and fees shall be calculated for first-time,
full-time undergraduate students enrolled in the
institution who are residents of the State in which
such institution is located; and
``(2) in determining the net price, the average
need-based grant aid and merit-based grant aid
described in subsection (a)(3)(B) shall be calculated
based on the average total amount of such aid received
by first-time, full-time undergraduate students who are
residents of the State in which such institution is
located, divided by the total number of such resident
students receiving such need-based grant aid or merit-
based grant aid at such institution.
``(c) College Affordability and Transparency Lists.--
``(1) Availability of lists.--Beginning July 1,
2011, the Secretary shall make publicly available on
the College Navigator website, in a manner that is
sortable and searchable by State, the following:
``(A) A list of the five percent of
institutions in each category described in
subsection (d) that have the highest tuition
and fees for the most recent academic year for
which data are available.
``(B) A list of the five percent of
institutions in each such category that have
the highest net price for the most recent
academic year for which data are available.
``(C) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in tuition and fees over the most
recent three academic years for which data are
available, using the first academic year of the
three-year period as the base year to compute
such percentage change.
``(D) A list of the five percent of
institutions in each such category that have
the largest increase, expressed as a percentage
change, in net price over the most recent three
academic years for which data are available,
using the first academic year of the three-year
period as the base year to compute such
percentage change.
``(E) A list of the ten percent of
institutions in each such category that have
the lowest tuition and fees for the most recent
academic year for which data are available.
``(F) A list of the ten percent of
institutions in each such category that have
the lowest net price for the most recent
academic year for which data are available.
``(2) Annual updates.--The Secretary shall annually
update the lists described in paragraph (1) on the
College Navigator website.
``(d) Categories of Institutions.--The lists described in
subsection (c)(1) shall be compiled according to the following
categories of institutions that participate in programs under
title IV:
``(1) Four-year public institutions of higher
education.
``(2) Four-year private, nonprofit institutions of
higher education.
``(3) Four-year private, for-profit institutions of
higher education.
``(4) Two-year public institutions of higher
education.
``(5) Two-year private, nonprofit institutions of
higher education.
``(6) Two-year private, for-profit institutions of
higher education.
``(7) Less than two-year public institutions of
higher education.
``(8) Less than two-year private, nonprofit
institutions of higher education.
``(9) Less than two-year private, for-profit
institutions of higher education.
``(e) Reports by Institutions.--
``(1) Report to secretary.--If an institution of
higher education is included on a list described in
subparagraph (C) or (D) of subsection (c)(1), the
institution shall submit to the Secretary a report
containing the following information:
``(A) A description of the major areas in
the institution's budget with the greatest cost
increases.
``(B) An explanation of the cost increases
described in subparagraph (A).
``(C) A description of the steps the
institution will take toward the goal of
reducing costs in the areas described in
subparagraph (A).
``(D) In the case of an institution that is
included on the same list under subparagraph
(C) or (D) of subsection (c)(1) for two or more
consecutive years, a description of the
progress made on the steps described in
subparagraph (C) of this paragraph that were
included in the institution's report for the
previous year.
``(E) If the determination of any cost
increase described in subparagraph (A) is not
within the exclusive control of the
institution--
``(i) an explanation of the extent
to which the institution participates
in determining such cost increase;
``(ii) the identification of the
agency or instrumentality of State
government responsible for determining
such cost increase; and
``(iii) any other information the
institution considers relevant to the
report.
``(2) Information to the public.--The Secretary
shall--
``(A) issue an annual report that
summarizes all of the reports by institutions
required under paragraph (1) to the authorizing
committees; and
``(B) publish such report on the College
Navigator website.
``(f) Exemptions.--
``(1) In general.--An institution shall not be
placed on a list described in subparagraph (C) or (D)
of subsection (c)(1), and shall not be subject to the
reporting required under subsection (e), if the dollar
amount of the institution's increase in tuition and
fees, or net price, as applicable, is less than $600
for the three-year period described in such
subparagraph.
``(2) Update.--Beginning in 2014, and every three
years thereafter, the Secretary shall update the dollar
amount described in paragraph (1) based on annual
increases in inflation, using the Consumer Price Index
for each of the three most recent preceding years.
``(g) State Higher Education Spending Chart.--The Secretary
shall annually report on the College Navigator website, in
charts for each State, comparisons of--
``(1) the percentage change in spending by such
State per full-time equivalent student at all public
institutions of higher education in such State, for
each of the five most recent preceding academic years;
``(2) the percentage change in tuition and fees for
such students for all public institutions of higher
education in such State for each of the five most
recent preceding academic years; and
``(3) the percentage change in the total amount of
need-based aid and merit-based aid provided by such
State to full-time students enrolled in the public
institutions of higher education in the State for each
of the five most recent preceding academic years.
``(h) Net Price Calculator.--
``(1) Development of net price calculator.--Not
later than one year after the date of enactment of the
Higher Education Opportunity Act, the Secretary shall,
in consultation with institutions of higher education
and other appropriate experts, develop a net price
calculator to help current and prospective students,
families, and other consumers estimate the individual
net price of an institution of higher education for a
student. The calculator shall be developed in a manner
that enables current and prospective students,
families, and consumers to determine an estimate of a
current or prospective student's individual net price
at a particular institution.
``(2) Calculation of individual net price.--For
purposes of this subsection, an individual net price of
an institution of higher education shall be calculated
in the same manner as the net price of such institution
is calculated under subsection (a)(3), except that the
cost of attendance and the amount of need-based and
merit-based aid available shall be calculated for the
individual student as much as practicable.
``(3) Use of net price calculator by
institutions.--Not later than two years after the date
on which the Secretary makes the calculator developed
under paragraph (1) available to institutions of higher
education, each institution of higher education that
receives Federal funds under title IV shall make
publicly available on the institution's website a net
price calculator to help current and prospective
students, families, and other consumers estimate a
student's individual net price at such institution of
higher education. Such calculator may be a net price
calculator developed--
``(A) by the Department pursuant to
paragraph (1); or
``(B) by the institution of higher
education, if the institution's calculator
includes, at a minimum, the same data elements
included in the calculator developed under
paragraph (1).
``(4) Disclaimer.--Estimates of an individual net
price determined using a net price calculator required
under paragraph (3) shall be accompanied by a clear and
conspicuous notice--
``(A) stating that the estimate--
``(i) does not represent a final
determination, or actual award, of
financial assistance;
``(ii) shall not be binding on the
Secretary, the institution of higher
education, or the State; and
``(iii) may change;
``(B) stating that the student must
complete the Free Application for Federal
Student Aid described in section 483 in order
to be eligible for, and receive, an actual
financial aid award that includes Federal
grant, loan, or work-study assistance under
title IV; and
``(C) including a link to the website of
the Department that allows students to access
the Free Application for Federal Student Aid
described in section 483.
``(i) Consumer Information.--
``(1) Availability of title iv institution
information.--Not later than one year after the date of
enactment of the Higher Education Opportunity Act, the
Secretary shall make publicly available on the College
Navigator website, in simple and understandable terms,
the following information about each institution of
higher education that participates in programs under
title IV, for the most recent academic year for which
satisfactory data are available:
``(A) A statement of the institution's
mission.
``(B) The total number of undergraduate
students who applied to, were admitted by, and
enrolled in the institution.
``(C) For institutions that require SAT or
ACT scores to be submitted, the reading,
writing, mathematics, and combined scores on
the SAT or ACT, as applicable, for the middle
50 percent range of the institution's freshman
class.
``(D) The number of first-time, full-time,
and part-time students enrolled at the
institution, at the undergraduate and (if
applicable) graduate levels.
``(E) The number of degree- or certificate-
seeking undergraduate students enrolled at the
institution who have transferred from another
institution.
``(F) The percentages of male and female
undergraduate students enrolled at the
institution.
``(G) Of the first-time, full-time, degree-
or certificate-seeking undergraduate students
enrolled at the institution--
``(i) the percentage of such
students who are from the State in
which the institution is located;
``(ii) the percentage of such
students who are from other States; and
``(iii) the percentage of such
students who are international
students.
``(H) The percentages of first-time, full-
time, degree- or certificate-seeking students
enrolled at the institution, disaggregated by
race and ethnic background.
``(I) The percentage of undergraduate
students enrolled at the institution who are
formally registered with the office of
disability services of the institution (or the
equivalent office) as students with
disabilities, except that if such percentage is
three percent or less, the institution shall
report `three percent or less'.
``(J) The percentages of first-time, full-
time, degree- or certificate-seeking
undergraduate students enrolled at the
institution who obtain a degree or certificate
within--
``(i) the normal time for
completion of, or graduation from, the
student's program;
``(ii) 150 percent of the normal
time for completion of, or graduation
from, the student's program; and
``(iii) 200 percent of the normal
time for completion of, or graduation
from, the student's program;
``(K) The number of certificates, associate
degrees, baccalaureate degrees, master's
degrees, professional degrees, and doctoral
degrees awarded by the institution.
``(L) The undergraduate major areas of
study at the institution with the highest
number of degrees awarded.
``(M) The student-faculty ratio, the number
of full-time and part-time faculty, and the
number of graduate assistants with primarily
instructional responsibilities, at the
institution.
``(N)(i) The cost of attendance for first-
time, full-time undergraduate students enrolled
in the institution who live on campus;
``(ii) the cost of attendance for first-
time, full-time undergraduate students enrolled
in the institution who live off campus; and
``(iii) in the case of a public institution
of higher education and notwithstanding
subsection (b)(1), the costs described in
clauses (i) and (ii), for--
``(I) first-time, full-time
students enrolled in the institution
who are residents of the State in which
the institution is located; and
``(II) first-time, full-time
students enrolled in the institution
who are not residents of such State.
``(O) The average annual grant amount
(including Federal, State, and institutional
aid) awarded to a first-time, full-time
undergraduate student enrolled at the
institution who receives financial aid.
``(P) The average annual amount of Federal
student loans provided through the institution
to undergraduate students enrolled at the
institution.
``(Q) The total annual grant aid awarded to
undergraduate students enrolled at the
institution, from the Federal Government, a
State, the institution, and other sources known
by the institution.
``(R) The percentage of first-time, full-
time undergraduate students enrolled at the
institution receiving Federal, State, and
institutional grants, student loans, and any
other type of student financial assistance
known by the institution, provided publicly or
through the institution, such as Federal work-
study funds.
``(S) The number of students enrolled at
the institution receiving Federal Pell Grants.
``(T) The institution's cohort default
rate, as defined under section 435(m).
``(U) The information on campus safety
required to be collected under section 485(i).
``(V) A link to the institution's website
that provides, in an easily accessible manner,
the following information:
``(i) Student activities offered by
the institution.
``(ii) Services offered by the
institution for individuals with
disabilities.
``(iii) Career and placement
services offered by the institution to
students during and after enrollment.
``(iv) Policies of the institution
related to transfer of credit from
other institutions.
``(W) A link to the appropriate section of
the Bureau of Labor Statistics website that
provides information on regional data on
starting salaries in all major occupations.
``(X) Information required to be submitted
under paragraph (4) and a link to the
institution pricing summary page described in
paragraph (5).
``(Y) In the case of an institution that
was required to submit a report under
subsection (e)(1), a link to such report.
``(Z) The availability of alternative
tuition plans, which may include guaranteed
tuition plans.
``(2) Annual updates.--The Secretary shall annually
update the information described in paragraph (1) on
the College Navigator website.
``(3) Consultation.--The Secretary shall regularly
consult with current and prospective college students,
family members of such students, institutions of higher
education, and other experts to improve the usefulness
and relevance of the College Navigator website, with
respect to the presentation of the consumer information
collected in paragraph (1).
``(4) Data collection.--The Commissioner for
Education Statistics shall continue to update and
improve the Integrated Postsecondary Education Data
System (referred to in this section as `IPEDS'),
including the reporting of information by institutions
and the timeliness of the data collected.
``(5) Institution pricing summary page.--
``(A) Availability of list of participating
institutions.--The Secretary shall make
publicly available on the College Navigator
website in a sortable and searchable format a
list of all institutions of higher education
that participate in programs under title IV,
which list shall, for each institution, include
the following:
``(i) The tuition and fees for each
of the three most recent academic years
for which data are available.
``(ii) The net price for each of
the three most recent available
academic years for which data are
available.
``(iii)(I) During the period
beginning July 1, 2010, and ending June
30, 2013, the net price for students
receiving Federal student financial aid
under title IV, disaggregated by the
income categories described in
paragraph (6), for the most recent
academic year for which data are
available.
``(II) Beginning July 1, 2013, the
net price for students receiving
Federal student financial aid under
title IV, disaggregated by the income
categories described in paragraph (6),
for each of the three most recent
academic years for which data are
available.
``(iv) The average annual
percentage change and average annual
dollar change in such institution's
tuition and fees for each of the three
most recent academic years for which
data are available.
``(v) The average annual percentage
change and average annual dollar change
in such institution's net price for
each of the three most recent preceding
academic years for which data are
available.
``(vi) A link to the webpage on the
College Navigator website that provides
the information described in paragraph
(1) for the institution.
``(B) Annual updates.--The Secretary shall
annually update the lists described in
subparagraph (A) on the College Navigator
website.
``(6) Income categories.--
``(A) In general.--For purposes of
reporting the information required under this
subsection, the following income categories
shall apply for students who receive Federal
student financial aid under title IV:
``(i) $0-30,000.
``(ii) $30,001-48,000.
``(iii) $48,001-75,000.
``(iv) $75,001-110,000.
``(v) $110,001 and more.
``(B) Adjustment.--The Secretary may adjust
the income categories listed in subparagraph
(A) using the Consumer Price Index if the
Secretary determines such adjustment is
necessary.
``(j) Multi-Year Tuition Calculator.--
``(1) Development of multi-year tuition
calculator.--Not later than one year after the date of
enactment of the Higher Education Opportunity Act, the
Secretary shall, in consultation with institutions of
higher education, financial planners, and other
appropriate experts, develop a multi-year tuition
calculator to help current and prospective students,
families of such students, and other consumers estimate
the amount of tuition an individual may pay to attend
an institution of higher education in future years.
``(2) Calculation of multi-year tuition.--The
multi-year tuition calculator described in paragraph
(1) shall--
``(A) allow an individual to select an
institution of higher education for which the
calculation shall be made;
``(B) calculate an estimate of tuition and
fees for each year of the normal duration of
the program of study at such institution by--
``(i) using the tuition and fees
for such institution, as reported under
subsection (i)(5)(A)(i), for the most
recent academic year for which such
data are reported; and
``(ii) determining an estimated
annual percentage change for each year
for which the calculation is made,
based on the annual percentage change
in such institution's tuition and fees,
as reported under subsection
(i)(5)(A)(iv), for the most recent
three-year period for which such data
are reported;
``(C) calculate an estimate of the total
amount of tuition and fees to complete a
program of study at such institution, based on
the normal duration of such program, using the
estimate calculated under subparagraph (B) for
each year of the program of study;
``(D) provide the individual with the
option to replace the estimated annual
percentage change described in subparagraph
(B)(ii) with an alternative annual percentage
change specified by the individual, and
calculate an estimate of tuition and fees for
each year and an estimate of the total amount
of tuition and fees using the alternative
percentage change;
``(E) in the case of an institution that
offers a multi-year tuition guarantee program,
allow the individual to have the estimates of
tuition and fees described in subparagraphs (B)
and (C) calculated based on the provisions of
such guarantee program for the tuition and fees
charged to a student, or cohort of students,
enrolled for the duration of the program of
study; and
``(F) include any other features or
information determined to be appropriate by the
Secretary.
``(3) Availability and comparison.--The multi-year
tuition calculator described in paragraph (1) shall be
available on the College Navigator website and shall
allow current and prospective students, families of
such students, and consumers to compare information and
estimates under this subsection for multiple
institutions of higher education.
``(4) Disclaimer.--Each calculation of estimated
tuition and fees made using the multi-year tuition
calculator described in paragraph (1) shall be
accompanied by a clear and conspicuous notice--
``(A) stating that the calculation--
``(i) is only an estimate and not a
guarantee of the actual amount the
student may be charged;
``(ii) is not binding on the
Secretary, the institution of higher
education, or the State; and
``(iii) may change, subject to the
availability of financial assistance,
State appropriations, and other
factors;
``(B) stating that the student must
complete the Free Application for Federal
Student Aid described in section 483 in order
to be eligible for, and receive, an actual
financial aid award that includes Federal
grant, loan, or work-study assistance under
title IV; and
``(C) including a link to the website of
the Department that allows students to access
the Free Application for Federal Student Aid
described in section 483.
``(k) Student Aid Recipient Survey.--
``(1) Survey required.--The Secretary, acting
through the Commissioner for Education Statistics,
shall conduct, on a State-by-State basis, a survey of
recipients of Federal student financial aid under title
IV--
``(A) to identify the population of
students receiving such Federal student
financial aid;
``(B) to describe the income distribution
and other socioeconomic characteristics of
recipients of such Federal student financial
aid;
``(C) to describe the combinations of aid
from Federal, State, and private sources
received by such recipients from all income
categories;
``(D) to describe the--
``(i) debt burden of such loan
recipients, and their capacity to repay
their education debts; and
``(ii) the impact of such debt
burden on the recipients' course of
study and post-graduation plans;
``(E) to describe the impact of the cost of
attendance of postsecondary education in the
determination by students of what institution
of higher education to attend; and
``(F) to describe how the costs of
textbooks and other instructional materials
affect the costs of postsecondary education for
students.
``(2) Frequency.--The survey shall be conducted on
a regular cycle and not less often than once every four
years.
``(3) Survey design.--The survey shall be
representative of students from all types of
institutions, including full-time and part-time
students, undergraduate, graduate, and professional
students, and current and former students.
``(4) Dissemination.--The Commissioner for
Education Statistics shall disseminate to the public,
in printed and electronic form, the information
resulting from the survey.
``(l) Regulations.--The Secretary is authorized to issue
such regulations as may be necessary to carry out this
section.''.
SEC. 112. TEXTBOOK INFORMATION.
(a) Amendment.--Part C of title I (20 U.S.C. 1015) is
further amended by adding after section 132 (as added by
section 111 of this Act) the following new section:
``SEC. 133. TEXTBOOK INFORMATION.
``(a) Purpose and Intent.--The purpose of this section is
to ensure that students have access to affordable course
materials by decreasing costs to students and enhancing
transparency and disclosure with respect to the selection,
purchase, sale, and use of course materials. It is the intent
of this section to encourage all of the involved parties,
including faculty, students, administrators, institutions of
higher education, bookstores, distributors, and publishers, to
work together to identify ways to decrease the cost of college
textbooks and supplemental materials for students while
supporting the academic freedom of faculty members to select
high quality course materials for students.
``(b) Definitions.--In this section:
``(1) Bundle.--The term `bundle' means one or more
college textbooks or other supplemental materials that
may be packaged together to be sold as course materials
for one price.
``(2) College textbook.--The term `college
textbook' means a textbook or a set of textbooks, used
for, or in conjunction with, a course in postsecondary
education at an institution of higher education.
``(3) Course schedule.--The term `course schedule'
means a listing of the courses or classes offered by an
institution of higher education for an academic period,
as defined by the institution.
``(4) Custom textbook.--The term `custom
textbook'--
``(A) means a college textbook that is
compiled by a publisher at the direction of a
faculty member or other person or adopting
entity in charge of selecting course materials
at an institution of higher education; and
``(B) may include, alone or in combination,
items such as selections from original
instructor materials, previously copyrighted
publisher materials, copyrighted third-party
works, and elements unique to a specific
institution, such as commemorative editions.
``(5) Institution of higher education.--The term
`institution of higher education' has the meaning given
the term in section 102.
``(6) Integrated textbook.--The term `integrated
textbook' means a college textbook that is--
``(A) combined with materials developed by
a third party and that, by third-party
contractual agreement, may not be offered by
publishers separately from the college textbook
with which the materials are combined; or
``(B) combined with other materials that
are so interrelated with the content of the
college textbook that the separation of the
college textbook from the other materials would
render the college textbook unusable for its
intended purpose.
``(7) Publisher.--The term `publisher' means a
publisher of college textbooks or supplemental
materials involved in or affecting interstate commerce.
``(8) Substantial content.--The term `substantial
content' means parts of a college textbook such as new
chapters, new material covering additional eras of
time, new themes, or new subject matter.
``(9) Supplemental material.--The term
`supplemental material' means educational material
developed to accompany a college textbook that--
``(A) may include printed materials,
computer disks, website access, and
electronically distributed materials; and
``(B) is not being used as a component of
an integrated textbook.
``(c) Publisher Requirements.--
``(1) College textbook pricing information.--When a
publisher provides a faculty member or other person or
adopting entity in charge of selecting course materials
at an institution of higher education receiving Federal
financial assistance with information regarding a
college textbook or supplemental material, the
publisher shall include, with any such information and
in writing (which may include electronic
communications), the following:
``(A) The price at which the publisher
would make the college textbook or supplemental
material available to the bookstore on the
campus of, or otherwise associated with, such
institution of higher education and, if
available, the price at which the publisher
makes the college textbook or supplemental
material available to the public.
``(B) The copyright dates of the three
previous editions of such college textbook, if
any.
``(C) A description of the substantial
content revisions made between the current
edition of the college textbook or supplemental
material and the previous edition, if any.
``(D)(i) Whether the college textbook or
supplemental material is available in any other
format, including paperback and unbound; and
``(ii) for each other format of the college
textbook or supplemental material, the price at
which the publisher would make the college
textbook or supplemental material in the other
format available to the bookstore on the campus
of, or otherwise associated with, such
institution of higher education and, if
available, the price at which the publisher
makes such other format of the college textbook
or supplemental material available to the
public.
``(2) Unbundling of college textbooks from
supplemental materials.--A publisher that sells a
college textbook and any supplemental material
accompanying such college textbook as a single bundle
shall also make available the college textbook and each
supplemental material as separate and unbundled items,
each separately priced.
``(3) Custom textbooks.--To the maximum extent
practicable, a publisher shall provide the information
required under this subsection with respect to the
development and provision of custom textbooks.
``(d) Provision of ISBN College Textbook Information in
Course Schedules.--To the maximum extent practicable, each
institution of higher education receiving Federal financial
assistance shall--
``(1) disclose, on the institution's Internet
course schedule and in a manner of the institution's
choosing, the International Standard Book Number and
retail price information of required and recommended
college textbooks and supplemental materials for each
course listed in the institution's course schedule used
for preregistration and registration purposes, except
that--
``(A) if the International Standard Book
Number is not available for such college
textbook or supplemental material, then the
institution shall include in the Internet
course schedule the author, title, publisher,
and copyright date for such college textbook or
supplemental material; and
``(B) if the institution determines that
the disclosure of the information described in
this subsection is not practicable for a
college textbook or supplemental material, then
the institution shall so indicate by placing
the designation `To Be Determined' in lieu of
the information required under this subsection;
and
``(2) if applicable, include on the institution's
written course schedule a notice that textbook
information is available on the institution's Internet
course schedule, and the Internet address for such
schedule.
``(e) Availability of Information for College Bookstores.--
An institution of higher education receiving Federal financial
assistance shall make available to a college bookstore that is
operated by, or in a contractual relationship or otherwise
affiliated with, the institution, as soon as is practicable
upon the request of such college bookstore, the most accurate
information available regarding--
``(1) the institution's course schedule for the
subsequent academic period; and
``(2) for each course or class offered by the
institution for the subsequent academic period--
``(A) the information required by
subsection (d)(1) for each college textbook or
supplemental material required or recommended
for such course or class;
``(B) the number of students enrolled in
such course or class; and
``(C) the maximum student enrollment for
such course or class.
``(f) Additional Information.--An institution disclosing
the information required by subsection (d)(1) is encouraged to
disseminate to students information regarding--
``(1) available institutional programs for renting
textbooks or for purchasing used textbooks;
``(2) available institutional guaranteed textbook
buy-back programs;
``(3) available institutional alternative content
delivery programs; or
``(4) other available institutional cost-saving
strategies.
``(g) GAO Report.--Not later than July 1, 2013, the
Comptroller General of the United States shall report to the
authorizing committees on the implementation of this section by
institutions of higher education, college bookstores, and
publishers. The report shall particularly examine--
``(1) the availability of college textbook
information on course schedules;
``(2) the provision of pricing information to
faculty of institutions of higher education by
publishers;
``(3) the use of bundled and unbundled material in
the college textbook marketplace, including the
adoption of unbundled materials by faculty and the use
of integrated textbooks by publishers; and
``(4) the implementation of this section by
institutions of higher education, including the costs
and benefits to such institutions and to students.
``(h) Rule of Construction.--Nothing in this section shall
be construed to supercede the institutional autonomy or
academic freedom of instructors involved in the selection of
college textbooks, supplemental materials, and other classroom
materials.
``(i) No Regulatory Authority.--The Secretary shall not
promulgate regulations with respect to this section.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on July 1, 2010.
SEC. 113. DATABASE OF STUDENT INFORMATION PROHIBITED.
Part C of title I (20 U.S.C. 1015) is further amended by
adding after section 133 (as added by section 112 of this Act)
the following:
``SEC. 134. DATABASE OF STUDENT INFORMATION PROHIBITED.
``(a) Prohibition.--Except as described in subsection (b),
nothing in this Act shall be construed to authorize the
development, implementation, or maintenance of a Federal
database of personally identifiable information on individuals
receiving assistance under this Act, attending institutions
receiving assistance under this Act, or otherwise involved in
any studies or other collections of data under this Act,
including a student unit record system, an education bar code
system, or any other system that tracks individual students
over time.
``(b) Exception.--The provisions of subsection (a) shall
not apply to a system (or a successor system) that--
``(1) is necessary for the operation of programs
authorized by title II, IV, or VII; and
``(2) was in use by the Secretary, directly or
through a contractor, as of the day before the date of
enactment of the Higher Education Opportunity Act.
``(c) State Databases.--Nothing in this Act shall prohibit
a State or a consortium of States from developing,
implementing, or maintaining State-developed databases that
track individuals over time, including student unit record
systems that contain information related to enrollment,
attendance, graduation and retention rates, student financial
assistance, and graduate employment outcomes.''.
SEC. 114. IN-STATE TUITION RATES FOR ARMED FORCES MEMBERS, SPOUSES, AND
DEPENDENT CHILDREN.
Part C of title I (20 U.S.C. 1015) is further amended by
adding after section 134 (as added by section 113 of this Act)
the following:
``SEC. 135. IN-STATE TUITION RATES FOR MEMBERS OF THE ARMED FORCES ON
ACTIVE DUTY, SPOUSES, AND DEPENDENT CHILDREN.
``(a) Requirement.--In the case of a member of the armed
forces who is on active duty for a period of more than 30 days
and whose domicile or permanent duty station is in a State that
receives assistance under this Act, such State shall not charge
such member (or the spouse or dependent child of such member)
tuition for attendance at a public institution of higher
education in the State at a rate that is greater than the rate
charged for residents of the State.
``(b) Continuation.--If a member of the armed forces (or
the spouse or dependent child of a member) pays tuition at a
public institution of higher education in a State at a rate
determined by subsection (a), the provisions of subsection (a)
shall continue to apply to such member, spouse, or dependent
while continuously enrolled at that institution,
notwithstanding a subsequent change in the permanent duty
station of the member to a location outside the State.
``(c) Effective Date.--This section shall take effect at
each public institution of higher education in a State that
receives assistance under this Act for the first period of
enrollment at such institution that begins after July 1, 2009.
``(d) Definitions.--In this section, the terms `armed
forces' and `active duty for a period of more than 30 days'
have the meanings given those terms in section 101 of title 10,
United States Code.''.
SEC. 115. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT PROGRAM.
Part C of title I of the Higher Education Act of 1965 (20
U.S.C. 1015) is further amended by adding after section 135 (as
added by section 114 of this Act) the following:
``SEC. 136. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT PROGRAM.
``(a) Purpose.--It is the purpose of this section to carry
out a pilot program to assist not more than five States to
develop State-level postsecondary student data systems to--
``(1) improve the capacity of States and
institutions of higher education to generate more
comprehensive and comparable data, in order to develop
better-informed educational policy at the State level
and to evaluate the effectiveness of institutional
performance while protecting the confidentiality of
students' personally identifiable information; and
``(2) identify how to best minimize the data-
reporting burden placed on institutions of higher
education, particularly smaller institutions, and to
maximize and improve the information institutions
receive from the data systems, in order to assist
institutions in improving educational practice and
postsecondary outcomes.
``(b) Definition of Eligible Entity.--In this section, the
term `eligible entity' means--
``(1) a State higher education system; or
``(2) a consortium of State higher education
systems, or a consortium of individual institutions of
higher education, that is broadly representative of
institutions in different sectors and geographic
locations.
``(c) Competitive Grants.--
``(1) Grants authorized.--The Secretary shall award
grants, on a competitive basis, to not more than five
eligible entities to enable the eligible entities to--
``(A) design, test, and implement systems
of postsecondary student data that provide the
maximum benefits to States, institutions of
higher education, and State policymakers; and
``(B) examine the costs and burdens
involved in implementing a State-level
postsecondary student data system.
``(2) Duration.--A grant awarded under this section
shall be for a period of not more than three years.
``(d) Application Requirements.--An eligible entity
desiring a grant under this section shall submit an application
to the Secretary at such time, in such manner, and containing
such information as the Secretary may reasonably require,
including a description of--
``(1) how the eligible entity will ensure that
student privacy is protected and that individually
identifiable information about students, the students'
achievements, and the students' families remains
confidential in accordance with section 444 of the
General Education Provisions Act (Family Educational
Rights and Privacy Act of 1974) (20 U.S.C. 1232g); and
``(2) how the activities funded by the grant will
be supported after the three-year grant period.
``(e) Use of Funds.--A grant awarded under this section
shall be used to--
``(1) design, develop, and implement the components
of a comprehensive postsecondary student data system
with the capacity to transmit student information
within a State;
``(2) improve the capacity of institutions of
higher education to analyze and use student data;
``(3) select and define common data elements, data
quality, and other elements that will enable the data
system to--
``(A) serve the needs of institutions of
higher education for institutional research and
improvement;
``(B) provide students and the students'
families with useful information for decision-
making about postsecondary education; and
``(C) provide State policymakers with
improved information to monitor and guide
efforts to improve student outcomes and success
in higher education;
``(4) estimate costs and burdens at the
institutional level for the reporting system for
different types of institutions; and
``(5) test the feasibility of protocols and
standards for maintaining data privacy and data access.
``(f) Evaluation; Reports.--Not later than six months after
the end of the projects funded by grants awarded under this
section, the Secretary shall--
``(1) conduct a comprehensive evaluation of the
pilot program authorized by this section; and
``(2) report the Secretary's findings, as well as
recommendations regarding the implementation of State-
level postsecondary student data systems, to the
authorizing committees.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for fiscal year 2009 and each of the
five succeeding fiscal years.''.
SEC. 116. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
Part C of title I (20 U.S.C. 1015) is further amended by
adding after section 136 (as added by section 115 of this Act)
the following new section:
``SEC. 137. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
``(a) Maintenance of Effort Required.--A State shall
provide--
``(1) for public institutions of higher education
in such State for any academic year beginning on or
after July 1, 2008, an amount which is equal to or
greater than the average amount provided for non-
capital and non-direct research and development
expenses or costs by such State to such institutions of
higher education during the five most recent preceding
academic years for which satisfactory data are
available; and
``(2) for private institutions of higher education
in such State for any academic year beginning on or
after July 1, 2008, an amount which is equal to or
greater than the average amount provided for student
financial aid for paying costs associated with
postsecondary education by such State to such
institutions during the five most recent preceding
academic years for which satisfactory data are
available.
``(b) Adjustments for Biennial Appropriations.--The
Secretary shall take into consideration any adjustments to the
calculations under subsection (a) that may be required to
accurately reflect funding levels for postsecondary education
in States with biennial appropriation cycles.
``(c) Waiver.--The Secretary shall waive the requirements
of subsection (a), if the Secretary determines that such a
waiver would be equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or a precipitous and
unforseen decline in the financial resources of a State or
State educational agency, as appropriate.
``(d) Violation of Maintenance of Effort.--Notwithstanding
any other provision of law, the Secretary shall withhold from
any State that violates subsection (a) and does not receive a
waiver pursuant to subsection (c) any amount that would
otherwise be available to the State under section 781 until
such State has made significant efforts to correct such
violation.''.
SEC. 117. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
Section 141 (20 U.S.C. 1018) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking
``operational'' and inserting ``administrative
and oversight''; and
(B) in paragraph (2)(D), by striking ``of
the operational functions'' and inserting ``and
administration'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by
striking ``the information systems
administered by the PBO, and other
functions performed by the PBO'' and
inserting ``the Federal student
financial assistance programs
authorized under title IV''; and
(ii) by striking subparagraph (C)
and inserting the following:
``(C) assist the Chief Operating Officer in
identifying goals for--
``(i) the administration of the
systems used to administer the Federal
student financial assistance programs
authorized under title IV; and
``(ii) the updating of such systems
to current technology.'';
(B) in paragraph (2)--
(i) in the matter preceding
subparagraph (A)--
(I) by striking
``administration of the
information and financial
systems that support'' and
inserting ``the administration
of Federal''; and
(II) by striking ``this
title'' and inserting ``title
IV'';
(ii) in subparagraph (A)--
(I) in the matter preceding
clause (i), by striking ``of
the delivery system for Federal
student assistance'' and
inserting ``for the Federal
student financial assistance
programs authorized under title
IV'';
(II) by striking clauses
(i) and (ii) and inserting the
following:
``(i) the collection, processing,
and transmission of data to students,
institutions, lenders, State agencies,
and other authorized parties;
``(ii) the design and technical
specifications for software development
and procurement for systems supporting
the Federal student financial
assistance programs authorized under
title IV;'';
(III) in clause (iii), by
striking ``delivery'' and
inserting ``administration'';
(IV) in clause (iv)--
(aa) by inserting
``the Federal'' after
``supporting'';
(bb) by striking
``under this title''
and inserting
``authorized under
title IV''; and
(cc) by striking
``and'' after the
semicolon;
(V) in clause (v), by
striking ``systems that support
those programs.'' and inserting
``the administration of the
Federal student financial
assistance programs authorized
under title IV; and''; and
(VI) by adding at the end
the following:
``(vi) ensuring the integrity of
the Federal student financial
assistance programs authorized under
title IV.''; and
(iii) in subparagraph (B), by
striking ``operations and services''
and inserting ``activities and
functions''; and
(3) in subsection (c)--
(A) in the subsection heading, by striking
``Performance Plan and Report'' and inserting
``Performance Plan, Report, and Briefing'';
(B) in paragraph (1)(C)--
(i) by striking ``this title'' each
place the term appears and inserting
``under title IV'';
(ii) in clause (iii), by striking
``information and delivery''; and
(iii) in clause (iv)--
(I) by striking
``Developing an'' and inserting
``Developing''; and
(II) by striking ``delivery
and information system'' and
inserting ``systems'';
(C) in paragraph (2)--
(i) in subparagraph (A), by
inserting ``the'' after ``PBO and'';
and
(ii) in subparagraph (B), by
striking ``Officer'' and inserting
``Officers'';
(D) in paragraph (3), by inserting
``students,'' after ``consult with''; and
(E) by adding at the end the following:
``(4) Briefing on enforcement of student loan
provisions.--The Secretary shall, upon request, provide
a briefing to the members of the authorizing committees
on the steps the Department has taken to ensure--
``(A) the integrity of the student loan
programs; and
``(B) that lenders and guaranty agencies
are adhering to the requirements of title
IV.'';
(4) in subsection (d)--
(A) in paragraph (1), by striking the
second sentence; and
(B) in paragraph (5)--
(i) in subparagraph (B), by
striking ``paragraph (2)'' and
inserting ``paragraph (4)''; and
(ii) in subparagraph (C), by
striking ``this'';
(5) in subsection (f)--
(A) in paragraph (2), by striking ``to
borrowers'' and inserting ``to students,
borrowers,''; and
(B) in paragraph (3)(A), by striking
``(1)(A)'' and inserting ``(1)'';
(6) in subsection (g)(3), by striking ``not more
than 25'';
(7) in subsection (h), by striking ``organizational
effectiveness'' and inserting ``effectiveness'';
(8) by striking subsection (i);
(9) by redesignating subsection (j) as subsection
(i); and
(10) in subsection (i) (as redesignated by
paragraph (9)), by striking ``, including transition
costs''.
SEC. 118. PROCUREMENT FLEXIBILITY.
Section 142 (20 U.S.C. 1018a) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``for information
systems supporting the programs
authorized under title IV''; and
(ii) by striking ``and'' after the
semicolon;
(B) in paragraph (2), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) through the Chief Operating Officer--
``(A) to the maximum extent practicable,
utilize procurement systems that streamline
operations, improve internal controls, and
enhance management; and
``(B) assess the efficiency of such systems
and assess such systems' ability to meet PBO
requirements.'';
(2) by striking subsection (c)(2) and inserting the
following:
``(2) Fee for service arrangements.--The Chief
Operating Officer shall, when appropriate and
consistent with the purposes of the PBO, acquire
services related to the functions set forth in section
141(b)(2) from any entity that has the capability and
capacity to meet the requirements set by the PBO. The
Chief Operating Officer is authorized to pay fees that
are equivalent to those paid by other entities to an
organization that provides services that meet the
requirements of the PBO, as determined by the Chief
Operating Officer.'';
(3) in subsection (d)(2)(B), by striking ``on
Federal Government contracts'';
(4) in subsection (g)--
(A) in paragraph (4)(A)--
(i) in the subparagraph heading, by
striking ``Sole source.--'' and
inserting ``Single-source basis.--'';
and
(ii) by striking ``sole-source''
and inserting ``single-source''; and
(B) in paragraph (7), by striking ``sole-
source'' and inserting ``single-source'';
(5) in subsection (h)(2)(A), by striking ``sole-
source'' and inserting ``single-source''; and
(6) in subsection (l), by striking paragraph (3)
and inserting the following:
``(3) Single-source basis.--The term `single-source
basis', with respect to an award of a contract, means
that the contract is awarded to a source after
soliciting an offer or offers from, and negotiating
with, only such source (although such source is not the
only source in the marketplace capable of meeting the
need) because such source is the most advantageous
source for purposes of the award.''.
SEC. 119. CERTIFICATION REGARDING THE USE OF CERTAIN FEDERAL FUNDS.
(a) Prohibition.--No Federal funds received under the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) by an
institution of higher education or other postsecondary
educational institution may be used to pay any person for
influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection
with any Federal action described in subsection (b).
(b) Applicability.--The prohibition in subsection (a)
applies with respect to the following Federal actions:
(1) The awarding of any Federal contract.
(2) The making of any Federal grant.
(3) The making of any Federal loan.
(4) The entering into of any Federal cooperative
agreement.
(5) The extension, continuation, renewal,
amendment, or modification of any Federal contract,
grant, loan, or cooperative agreement.
(c) Lobbying and Earmarks.--No Federal student aid funding
under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.)
may be used to hire a registered lobbyist or pay any person or
entity for securing an earmark.
(d) Certification.--Each institution of higher education or
other postsecondary educational institution receiving Federal
funding under the Higher Education Act of 1965 (20 U.S.C. 1001
et seq.), as a condition for receiving such funding, shall
annually certify to the Secretary of Education that the
requirements of subsections (a) through (c) have been met.
(e) Actions To Implement and Enforce.--The Secretary of
Education shall take such actions as are necessary to ensure
that the provisions of this section are implemented and
enforced.
SEC. 120. INSTITUTION AND LENDER REPORTING AND DISCLOSURE REQUIREMENTS.
Title I (as amended by this title) (20 U.S.C. 1001 et seq.)
is further amended by adding at the end the following:
``PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION
LOANS
``SEC. 151. DEFINITIONS.
``In this part:
``(1) Agent.--The term `agent' means an officer or
employee of a covered institution or an institution-
affiliated organization.
``(2) Covered institution.--The term `covered
institution' means any institution of higher education,
as such term is defined in section 102, that receives
any Federal funding or assistance.
``(3) Education loan.--The term `education loan'
(except when used as part of the term `private
education loan') means--
``(A) any loan made, insured, or guaranteed
under part B of title IV;
``(B) any loan made under part D of title
IV; or
``(C) a private education loan.
``(4) Eligible lender.--The term `eligible lender'
has the meaning given such term in section 435(d).
``(5) Institution-affiliated organization.--The
term `institution-affiliated organization'--
``(A) means any organization that--
``(i) is directly or indirectly
related to a covered institution; and
``(ii) is engaged in the practice
of recommending, promoting, or
endorsing education loans for students
attending such covered institution or
the families of such students;
``(B) may include an alumni organization,
athletic organization, foundation, or social,
academic, or professional organization, of a
covered institution; and
``(C) notwithstanding subparagraphs (A) and
(B), does not include any lender with respect
to any education loan secured, made, or
extended by such lender.
``(6) Lender.--The term `lender' (except when used
as part of the terms `eligible lender' and `private
educational lender')--
``(A) means--
``(i) in the case of a loan made,
insured, or guaranteed under part B of
title IV, an eligible lender;
``(ii) in the case of any loan
issued or provided to a student under
part D of title IV, the Secretary; and
``(iii) in the case of a private
education loan, a private educational
lender as defined in section 140 of the
Truth in Lending Act; and
``(B) includes any other person engaged in
the business of securing, making, or extending
education loans on behalf of the lender.
``(7) Officer.--The term `officer' includes a
director or trustee of a covered institution or
institution-affiliated organization, if such individual
is treated as an employee of such covered institution
or institution-affiliated organization, respectively.
``(8) Preferred lender arrangement.--The term
`preferred lender arrangement'--
``(A) means an arrangement or agreement
between a lender and a covered institution or
an institution-affiliated organization of such
covered institution--
``(i) under which a lender provides
or otherwise issues education loans to
the students attending such covered
institution or the families of such
students; and
``(ii) that relates to such covered
institution or such institution-
affiliated organization recommending,
promoting, or endorsing the education
loan products of the lender; and
``(B) does not include--
``(i) arrangements or agreements
with respect to loans under part D of
title IV; or
``(ii) arrangements or agreements
with respect to loans that originate
through the auction pilot program under
section 499(b).
``(9) Private education loan.--The term `private
education loan' has the meaning given the term in
section 140 of the Truth in Lending Act.
``SEC. 152. RESPONSIBILITIES OF COVERED INSTITUTIONS, INSTITUTION-
AFFILIATED ORGANIZATIONS, AND LENDERS.
``(a) Responsibilities of Covered Institutions and
Institution-Affiliated Organizations.--
``(1) Disclosures by covered institutions and
institution-affiliated organizations.--
``(A) Preferred lender arrangement
disclosures.--In addition to the disclosures
required by subsections (a)(27) and (h) of
section 487 (if applicable), a covered
institution, or an institution-affiliated
organization of such covered institution, that
participates in a preferred lender arrangement
shall disclose--
``(i) on such covered institution's
or institution-affiliated
organization's website and in all
informational materials described in
subparagraph (C) that describe or
discuss education loans--
``(I) the maximum amount of
Federal grant and loan aid
under title IV available to
students, in an easy to
understand format;
``(II) the information
required to be disclosed
pursuant to section
153(a)(2)(A)(i), for each type
of loan described in section
151(3)(A) that is offered
pursuant to a preferred lender
arrangement of the institution
or organization to students of
the institution or the families
of such students; and
``(III) a statement that
such institution is required to
process the documents required
to obtain a loan under part B
of title IV from any eligible
lender the student selects; and
``(ii) on such covered
institution's or institution-affiliated
organization's website and in all
informational materials described in
subparagraph (C) that describe or
discuss private education loans--
``(I) in the case of a
covered institution, the
information that the Board of
Governors of the Federal
Reserve System requires to be
disclosed under section
128(e)(11) of the Truth in
Lending Act (15 U.S.C.
1638(e)(11)), for each type of
private education loan offered
pursuant to a preferred lender
arrangement of the institution
to students of the institution
or the families of such
students; and
``(II) in the case of an
institution-affiliated
organization of a covered
institution, the information
the Board of Governors of the
Federal Reserve System requires
to be disclosed under section
128(e)(1) of the Truth in
Lending Act (15 U.S.C.
1638(e)(1)), for each type of
private education loan offered
pursuant to a preferred lender
arrangement of the organization
to students of such institution
or the families of such
students.
``(B) Private education loan disclosures.--
A covered institution, or an institution-
affiliated organization of such covered
institution, that provides information
regarding a private education loan from a
lender to a prospective borrower shall--
``(i) provide the prospective
borrower with the information the Board
of Governors of the Federal Reserve
System requires to be disclosed under
section 128(e)(1) of the Truth in
Lending Act (15 U.S.C. 1638(e)(1)) for
such loan;
``(ii) inform the prospective
borrower that--
``(I) the prospective
borrower may qualify for loans
or other assistance under title
IV; and
``(II) the terms and
conditions of loans made,
insured, or guaranteed under
title IV may be more favorable
than the provisions of private
education loans; and
``(iii) ensure that information
regarding private education loans is
presented in such a manner as to be
distinct from information regarding
loans that are made, insured, or
guaranteed under title IV.
``(C) Informational materials.--The
informational materials described in this
subparagraph are publications, mailings, or
electronic messages or materials that--
``(i) are distributed to
prospective or current students of a
covered institution and families of
such students; and
``(ii) describe or discuss the
financial aid opportunities available
to students at an institution of higher
education.
``(2) Use of institution name.--A covered
institution, or an institution-affiliated organization
of such covered institution, that enters into a
preferred lender arrangement with a lender regarding
private education loans shall not agree to the lender's
use of the name, emblem, mascot, or logo of such
institution or organization, or other words, pictures,
or symbols readily identified with such institution or
organization, in the marketing of private education
loans to students attending such institution in any way
that implies that the loan is offered or made by such
institution or organization instead of the lender.
``(3) Use of lender name.--A covered institution,
or an institution-affiliated organization of such
covered institution, that enters into a preferred
lender arrangement with a lender regarding private
education loans shall ensure that the name of the
lender is displayed in all information and
documentation related to such loans.
``(b) Lender Responsibilities.--
``(1) Disclosures by lenders.--
``(A) Disclosures to borrowers.--
``(i) Federal education loans.--For
each education loan that is made,
insured, or guaranteed under part B or
D of title IV (other than a loan made
under section 428C or a Federal Direct
Consolidation Loan), at or prior to the
time the lender disburses such loan,
the lender shall provide the
prospective borrower or borrower, in
writing (including through electronic
means), with the disclosures described
in subsections (a) and (c) of section
433.
``(ii) Private education loans.--
For each of a lender's private
education loans, the lender shall
comply with the disclosure requirements
under section 128(e) of the Truth in
Lending Act (15 U.S.C. 1638(e)).
``(B) Disclosures to the secretary.--
``(i) In general.--Each lender of a
loan made, insured, or guaranteed under
part B of title IV shall, on an annual
basis, report to the Secretary--
``(I) any reasonable
expenses paid or provided under
section 435(d)(5)(D) or
paragraph (3)(B) or (7) of
section 487(e) to any agent of
a covered institution who--
``(aa) is employed
in the financial aid
office of a covered
institution; or
``(bb) otherwise
has responsibilities
with respect to
education loans or
other financial aid of
the institution; and
``(II) any similar expenses
paid or provided to any agent
of an institution-affiliated
organization who is involved in
the practice of recommending,
promoting, or endorsing
education loans.
``(ii) Contents of reports.--Each
report described in clause (i) shall
include--
``(I) the amount for each
specific instance in which the
lender provided such expenses;
``(II) the name of any
agent described in clause (i)
to whom the expenses were paid
or provided;
``(III) the dates of the
activity for which the expenses
were paid or provided; and
``(IV) a brief description
of the activity for which the
expenses were paid or provided.
``(iii) Report to congress.--The
Secretary shall summarize the
information received from the lenders
under this subparagraph in a report and
transmit such report annually to the
authorizing committees.
``(2) Certification by lenders.--Not later than 18
months after the date of enactment of the Higher
Education Opportunity Act--
``(A) in addition to any other disclosure
required under Federal law, each lender of a
loan made, insured, or guaranteed under part B
of title IV that participates in one or more
preferred lender arrangements shall annually
certify the lender's compliance with the
requirements of this Act; and
``(B) if an audit of a lender is required
pursuant to section 428(b)(1)(U)(iii), the
lender's compliance with the requirements under
this section shall be reported on and attested
to annually by the auditor of such lender.
``SEC. 153. LOAN INFORMATION TO BE DISCLOSED AND MODEL DISCLOSURE FORM
FOR COVERED INSTITUTIONS, INSTITUTION-AFFILIATED
ORGANIZATIONS, AND LENDERS PARTICIPATING IN
PREFERRED LENDER ARRANGEMENTS.
``(a) Duties of the Secretary.--
``(1) Determination of minimum disclosures.--
``(A) In general.--Not later than 18 months
after the date of enactment of the Higher
Education Opportunity Act, the Secretary, in
coordination with the Board of Governors of the
Federal Reserve System, shall determine the
minimum information that lenders, covered
institutions, and institution-affiliated
organizations of such covered institutions
participating in preferred lender arrangements
shall make available regarding education loans
described in section 151(3)(A) that are offered
to students and the families of such students.
``(B) Consultation and content of minimum
disclosures.--In carrying out subparagraph (A),
the Secretary shall--
``(i) consult with students, the
families of such students,
representatives of covered institutions
(including financial aid
administrators, admission officers, and
business officers), representatives of
institution-affiliated organizations,
secondary school guidance counselors,
lenders, loan servicers, and guaranty
agencies;
``(ii) include, in the minimum
information under subparagraph (A) that
is required to be made available, the
information that the Board of Governors
of the Federal Reserve System requires
to be disclosed under section 128(e)(1)
of the Truth in Lending Act (15 U.S.C.
1638(e)(1)), modified as necessary to
apply to such loans; and
``(iii) consider the merits of
requiring each covered institution, and
each institution-affiliated
organization of such covered
institution, with a preferred lender
arrangement to provide to prospective
borrowers and the families of such
borrowers the following information for
each type of education loan offered
pursuant to such preferred lender
arrangement:
``(I) The interest rate and
terms and conditions of the
loan for the next award year,
including loan forgiveness and
deferment.
``(II) Information on any
charges, such as origination
and Federal default fees, that
are payable on the loan, and
whether those charges will be--
``(aa) collected by
the lender at or prior
to the disbursal of the
loan, including whether
the charges will be
deducted from the
proceeds of the loan or
paid separately by the
borrower; or
``(bb) paid in
whole or in part by the
lender.
``(III) The annual and
aggregate maximum amounts that
may be borrowed.
``(IV) The average amount
borrowed from the lender by
students who graduated from
such institution in the
preceding year with
certificates, undergraduate
degrees, graduate degrees, and
professional degrees, as
applicable, and who obtained
loans of such type from the
lender for the preceding year.
``(V) The amount the
borrower may pay in interest,
based on a standard repayment
plan and the average amount
borrowed from the lender by
students who graduated from
such institution in the
preceding year and who obtained
loans of such type from the
lender for the preceding year,
for--
``(aa) borrowers
who take out loans
under section 428;
``(bb) borrowers
who take out loans
under section 428B or
428H, who pay the
interest while in
school; and
``(cc) borrowers
who take out loans
under section 428B or
428H, who do not pay
the interest while in
school.
``(VI) The consequences for
the borrower of defaulting on a
loan, including limitations on
the discharge of an education
loan in bankruptcy.
``(VII) Contact information
for the lender.
``(VIII) Other information
suggested by the persons and
entities with whom the
Secretary has consulted under
clause (i).
``(2) Required disclosures.--After making the
determinations under paragraph (1), the Secretary, in
coordination with the Board of Governors of the Federal
Reserve System and after consultation with the public,
shall--
``(A)(i) provide that the information
determined under paragraph (1) shall be
disclosed by covered institutions, and
institution-affiliated organizations of such
covered institutions, with preferred lender
arrangements to prospective borrowers and the
families of such borrowers regarding the
education loans described in section 151(3)(A)
that are offered pursuant to such preferred
lender arrangements; and
``(ii) make clear that such covered
institutions and institution-affiliated
organizations may provide the required
information on a form designed by the
institution or organization instead of the
model disclosure form described in subparagraph
(B);
``(B) develop a model disclosure form that
may be used by covered institutions,
institution-affiliated organizations, and
preferred lenders that includes all of the
information required under subparagraph (A)(i)
in a format that--
``(i) is easily usable by students,
families, institutions, institution-
affiliated organizations, lenders, loan
servicers, and guaranty agencies; and
``(ii) is similar in format to the
form developed by the Board of
Governors of the Federal Reserve System
under paragraphs (1) and (5)(A) of
section 128(e), in order to permit
students and the families of students
to easily compare private education
loans and education loans described in
section 151(3)(A); and
``(C) update such model disclosure form
periodically, as necessary.
``(b) Duties of Lenders.--Each lender that has a preferred
lender arrangement with a covered institution, or an
institution-affiliated organization of such covered
institution, with respect to education loans described in
section 151(3)(A) shall annually, by a date determined by the
Secretary, provide to such covered institution or such
institution-affiliated organization, and to the Secretary, the
information the Secretary requires pursuant to subsection
(a)(2)(A)(i) for each type of education loan described in
section 151(3)(A) that the lender plans to offer pursuant to
such preferred lender arrangement to students attending such
covered institution, or to the families of such students, for
the next award year.
``(c) Duties of Covered Institutions and Institution-
Affiliated Organizations.--
``(1) Providing information to students and
families.--
``(A) In general.--Each covered
institution, and each institution-affiliated
organization of such covered institution, that
has a preferred lender arrangement shall
provide the following information to students
attending such institution, or the families of
such students, as applicable:
``(i) The information the Secretary
requires pursuant to subsection
(a)(2)(A)(i), for each type of
education loan described in section
151(3)(A) offered pursuant to a
preferred lender arrangement to
students of such institution or the
families of such students.
``(ii)(I) In the case of a covered
institution, the information that the
Board of Governors of the Federal
Reserve System requires to be disclosed
under section 128(e)(11) of the Truth
in Lending Act (15 U.S.C. 1638(e)(11))
to the covered institution, for each
type of private education loan offered
pursuant to such preferred lender
arrangement to students of such
institution or the families of such
students.
``(II) In the case of an
institution-affiliated organization,
the information the Board of Governors
of the Federal Reserve System requires
to be disclosed under section 128(e)(1)
of the Truth in Lending Act (15 U.S.C.
1638(e)(1)), for each type of private
education loan offered pursuant to such
preferred lender arrangement to
students of the institution with which
such organization is affiliated or the
families of such students.
``(B) Timely provision of information.--The
information described in subparagraph (A) shall
be provided in a manner that allows for the
students or the families to take such
information into account before selecting a
lender or applying for an education loan.
``(2) Annual report.--Each covered institution, and
each institution-affiliated organization of such
covered institution, that has a preferred lender
arrangement, shall--
``(A) prepare and submit to the Secretary
an annual report, by a date determined by the
Secretary, that includes, for each lender that
has a preferred lender arrangement with such
covered institution or organization--
``(i) the information described in
clauses (i) and (ii) of paragraph
(1)(A); and
``(ii) a detailed explanation of
why such covered institution or
institution-affiliated organization
entered into a preferred lender
arrangement with the lender, including
why the terms, conditions, and
provisions of each type of education
loan provided pursuant to the preferred
lender arrangement are beneficial for
students attending such institution, or
the families of such students, as
applicable; and
``(B) ensure that the report required under
subparagraph (A) is made available to the
public and provided to students attending or
planning to attend such covered institution and
the families of such students.
``(3) Code of conduct.--
``(A) In general.--Each covered
institution, and each institution-affiliated
organization of such covered institution, that
has a preferred lender arrangement, shall
comply with the code of conduct requirements of
subparagraphs (A) through (C) of section
487(a)(25).
``(B) Applicable code of conduct.--For
purposes of subparagraph (A), an institution-
affiliated organization of a covered
institution shall--
``(i) comply with the code of
conduct developed and published by such
covered institution under subparagraphs
(A) and (B) of section 487(a)(25);
``(ii) if such institution-
affiliated organization has a website,
publish such code of conduct
prominently on the website; and
``(iii) administer and enforce such
code of conduct by, at a minimum,
requiring that all of such
organization's agents with
responsibilities with respect to
education loans be annually informed of
the provisions of such code of conduct.
``SEC. 154. LOAN INFORMATION TO BE DISCLOSED AND MODEL DISCLOSURE FORM
FOR INSTITUTIONS PARTICIPATING IN THE WILLIAM D.
FORD FEDERAL DIRECT LOAN PROGRAM.
``(a) Provision of Disclosures to Institutions by the
Secretary.--Not later than 180 days after the development of
the model disclosure form under section 153(a)(2)(B), the
Secretary shall provide each institution of higher education
participating in the William D. Ford Direct Loan Program under
part D of title IV with a completed model disclosure form
including the same information for Federal Direct Stafford
Loans, Federal Direct Unsubsidized Stafford Loans, and Federal
Direct PLUS loans made to, or on behalf of, students attending
each such institution as is required on such form for loans
described in section 151(3)(A).
``(b) Duties of Institutions.--
``(1) In general.--Each institution of higher
education participating in the William D. Ford Direct
Loan Program under part D of title IV shall--
``(A) make the information the Secretary
provides to the institution under subsection
(a) available to students attending or planning
to attend the institution, or the families of
such students, as applicable; and
``(B) if the institution provides
information regarding a private education loan
to a prospective borrower, concurrently provide
such borrower with the information the
Secretary provides to the institution under
subsection (a).
``(2) Choice of forms.--In providing the
information required under paragraph (1), an
institution of higher education may use a comparable
form designed by the institution instead of the model
disclosure form developed under section
153(a)(2)(B).''.
TITLE II--TEACHER QUALITY ENHANCEMENT
SEC. 201. TEACHER QUALITY ENHANCEMENT.
Title II (20 U.S.C. 1021 et seq.) is amended--
(1) by inserting before part A the following:
``SEC. 200. DEFINITIONS.
``In this title:
``(1) Arts and sciences.--The term `arts and
sciences' means--
``(A) when referring to an organizational
unit of an institution of higher education, any
academic unit that offers one or more academic
majors in disciplines or content areas
corresponding to the academic subject matter
areas in which teachers provide instruction;
and
``(B) when referring to a specific academic
subject area, the disciplines or content areas
in which academic majors are offered by the
arts and sciences organizational unit.
``(2) Children from low-income families.--The term
`children from low-income families' means children
described in section 1124(c)(1)(A) of the Elementary
and Secondary Education Act of 1965.
``(3) Core academic subjects.--The term `core
academic subjects' has the meaning given the term in
section 9101 of the Elementary and Secondary Education
Act of 1965.
``(4) Early childhood educator.--The term `early
childhood educator' means an individual with primary
responsibility for the education of children in an
early childhood education program.
``(5) Educational service agency.--The term
`educational service agency' has the meaning given the
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
``(6) Eligible partnership.--Except as otherwise
provided in section 251, the term `eligible
partnership' means an entity that--
``(A) shall include--
``(i) a high-need local educational
agency;
``(ii)(I) a high-need school or a
consortium of high-need schools served
by the high-need local educational
agency; or
``(II) as applicable, a high-need
early childhood education program;
``(iii) a partner institution;
``(iv) a school, department, or
program of education within such
partner institution, which may include
an existing teacher professional
development program with proven
outcomes within a four-year institution
of higher education that provides
intensive and sustained collaboration
between faculty and local educational
agencies consistent with the
requirements of this title; and
``(v) a school or department of
arts and sciences within such partner
institution; and
``(B) may include any of the following:
``(i) The Governor of the State.
``(ii) The State educational
agency.
``(iii) The State board of
education.
``(iv) The State agency for higher
education.
``(v) A business.
``(vi) A public or private
nonprofit educational organization.
``(vii) An educational service
agency.
``(viii) A teacher organization.
``(ix) A high-performing local
educational agency, or a consortium of
such local educational agencies, that
can serve as a resource to the
partnership.
``(x) A charter school (as defined
in section 5210 of the Elementary and
Secondary Education Act of 1965).
``(xi) A school or department
within the partner institution that
focuses on psychology and human
development.
``(xii) A school or department
within the partner institution with
comparable expertise in the disciplines
of teaching, learning, and child and
adolescent development.
``(xiii) An entity operating a
program that provides alternative
routes to State certification of
teachers.
``(7) Essential components of reading
instruction.--The term `essential components of reading
instruction' has the meaning given the term in section
1208 of the Elementary and Secondary Education Act of
1965.
``(8) Exemplary teacher.--The term `exemplary
teacher' has the meaning given the term in section 9101
of the Elementary and Secondary Education Act of 1965.
``(9) High-need early childhood education
program.--The term `high-need early childhood education
program' means an early childhood education program
serving children from low-income families that is
located within the geographic area served by a high-
need local educational agency.
``(10) High-need local educational agency.--The
term `high-need local educational agency' means a local
educational agency--
``(A)(i) for which not less than 20 percent
of the children served by the agency are
children from low-income families;
``(ii) that serves not fewer than 10,000
children from low-income families;
``(iii) that meets the eligibility
requirements for funding under the Small, Rural
School Achievement Program under section
6211(b) of the Elementary and Secondary
Education Act of 1965; or
``(iv) that meets the eligibility
requirements for funding under the Rural and
Low-Income School Program under section 6221(b)
of the Elementary and Secondary Education Act
of 1965; and
``(B)(i) for which there is a high
percentage of teachers not teaching in the
academic subject areas or grade levels in which
the teachers were trained to teach; or
``(ii) for which there is a high teacher
turnover rate or a high percentage of teachers
with emergency, provisional, or temporary
certification or licensure.
``(11) High-need school.--
``(A) In general.--The term `high-need
school' means a school that, based on the most
recent data available, meets one or both of the
following:
``(i) The school is in the highest
quartile of schools in a ranking of all
schools served by a local educational
agency, ranked in descending order by
percentage of students from low-income
families enrolled in such schools, as
determined by the local educational
agency based on one of the following
measures of poverty:
``(I) The percentage of
students aged 5 through 17 in
poverty counted in the most
recent census data approved by
the Secretary.
``(II) The percentage of
students eligible for a free or
reduced price school lunch
under the Richard B. Russell
National School Lunch Act.
``(III) The percentage of
students in families receiving
assistance under the State
program funded under part A of
title IV of the Social Security
Act.
``(IV) The percentage of
students eligible to receive
medical assistance under the
Medicaid program.
``(V) A composite of two or
more of the measures described
in subclauses (I) through (IV).
``(ii) In the case of--
``(I) an elementary school,
the school serves students not
less than 60 percent of whom
are eligible for a free or
reduced price school lunch
under the Richard B. Russell
National School Lunch Act; or
``(II) any other school
that is not an elementary
school, the other school serves
students not less than 45
percent of whom are eligible
for a free or reduced price
school lunch under the Richard
B. Russell National School
Lunch Act.
``(B) Special rule.--
``(i) Designation by the
secretary.--The Secretary may, upon
approval of an application submitted by
an eligible partnership seeking a grant
under this title, designate a school
that does not qualify as a high-need
school under subparagraph (A) as a
high-need school for the purpose of
this title. The Secretary shall base
the approval of an application for
designation of a school under this
clause on a consideration of the
information required under clause (ii),
and may also take into account other
information submitted by the eligible
partnership.
``(ii) Application requirements.--
An application for designation of a
school under clause (i) shall include--
``(I) the number and
percentage of students
attending such school who are--
``(aa) aged 5
through 17 in poverty
counted in the most
recent census data
approved by the
Secretary;
``(bb) eligible for
a free or reduced price
school lunch under the
Richard B. Russell
National School Lunch
Act;
``(cc) in families
receiving assistance
under the State program
funded under part A of
title IV of the Social
Security Act; or
``(dd) eligible to
receive medical
assistance under the
Medicaid program;
``(II) information about
the student academic
achievement of students at such
school; and
``(III) for a secondary
school, the graduation rate for
such school.
``(12) Highly competent.--The term `highly
competent', when used with respect to an early
childhood educator, means an educator--
``(A) with specialized education and
training in development and education of young
children from birth until entry into
kindergarten;
``(B) with--
``(i) a baccalaureate degree in an
academic major in the arts and
sciences; or
``(ii) an associate's degree in a
related educational area; and
``(C) who has demonstrated a high level of
knowledge and use of content and pedagogy in
the relevant areas associated with quality
early childhood education.
``(13) Highly qualified.--The term `highly
qualified' has the meaning given such term in section
9101 of the Elementary and Secondary Education Act of
1965 and, with respect to special education teachers,
in section 602 of the Individuals with Disabilities
Education Act.
``(14) Induction program.--The term `induction
program' means a formalized program for new teachers
during not less than the teachers' first two years of
teaching that is designed to provide support for, and
improve the professional performance and advance the
retention in the teaching field of, beginning teachers.
Such program shall promote effective teaching skills
and shall include the following components:
``(A) High-quality teacher mentoring.
``(B) Periodic, structured time for
collaboration with teachers in the same
department or field, including mentor teachers,
as well as time for information-sharing among
teachers, principals, administrators, other
appropriate instructional staff, and
participating faculty in the partner
institution.
``(C) The application of empirically-based
practice and scientifically valid research on
instructional practices.
``(D) Opportunities for new teachers to
draw directly on the expertise of teacher
mentors, faculty, and researchers to support
the integration of empirically-based practice
and scientifically valid research with
practice.
``(E) The development of skills in
instructional and behavioral interventions
derived from empirically-based practice and,
where applicable, scientifically valid
research.
``(F) Faculty who--
``(i) model the integration of
research and practice in the classroom;
and
``(ii) assist new teachers with the
effective use and integration of
technology in the classroom.
``(G) Interdisciplinary collaboration among
exemplary teachers, faculty, researchers, and
other staff who prepare new teachers with
respect to the learning process and the
assessment of learning.
``(H) Assistance with the understanding of
data, particularly student achievement data,
and the applicability of such data in classroom
instruction.
``(I) Regular and structured observation
and evaluation of new teachers by multiple
evaluators, using valid and reliable measures
of teaching skills.
``(15) Limited english proficient.--The term
`limited English proficient' has the meaning given the
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
``(16) Parent.--The term `parent' has the meaning
given the term in section 9101 of the Elementary and
Secondary Education Act of 1965.
``(17) Partner institution.--The term `partner
institution' means an institution of higher education,
which may include a two-year institution of higher
education offering a dual program with a four-year
institution of higher education, participating in an
eligible partnership that has a teacher preparation
program--
``(A) whose graduates exhibit strong
performance on State-determined qualifying
assessments for new teachers through--
``(i) demonstrating that 80 percent
or more of the graduates of the program
who intend to enter the field of
teaching have passed all of the
applicable State qualification
assessments for new teachers, which
shall include an assessment of each
prospective teacher's subject matter
knowledge in the content area in which
the teacher intends to teach; or
``(ii) being ranked among the
highest-performing teacher preparation
programs in the State as determined by
the State--
``(I) using criteria
consistent with the
requirements for the State
report card under section
205(b) before the first
publication of such report
card; and
``(II) using the State
report card on teacher
preparation required under
section 205(b), after the first
publication of such report card
and for every year thereafter;
and
``(B) that requires--
``(i) each student in the program
to meet high academic standards or
demonstrate a record of success, as
determined by the institution
(including prior to entering and being
accepted into a program), and
participate in intensive clinical
experience;
``(ii) each student in the program
preparing to become a teacher to become
highly qualified; and
``(iii) each student in the program
preparing to become an early childhood
educator to meet degree requirements,
as established by the State, and become
highly competent.
``(18) Principles of scientific research.--The term
`principles of scientific research' means principles of
research that--
``(A) apply rigorous, systematic, and
objective methodology to obtain reliable and
valid knowledge relevant to education
activities and programs;
``(B) present findings and make claims that
are appropriate to, and supported by, the
methods that have been employed; and
``(C) include, appropriate to the research
being conducted--
``(i) use of systematic, empirical
methods that draw on observation or
experiment;
``(ii) use of data analyses that
are adequate to support the general
findings;
``(iii) reliance on measurements or
observational methods that provide
reliable and generalizable findings;
``(iv) strong claims of causal
relationships, only with research
designs that eliminate plausible
competing explanations for observed
results, such as, but not limited to,
random-assignment experiments;
``(v) presentation of studies and
methods in sufficient detail and
clarity to allow for replication or, at
a minimum, to offer the opportunity to
build systematically on the findings of
the research;
``(vi) acceptance by a peer-
reviewed journal or critique by a panel
of independent experts through a
comparably rigorous, objective, and
scientific review; and
``(vii) consistency of findings
across multiple studies or sites to
support the generality of results and
conclusions.
``(19) Professional development.--The term
`professional development' has the meaning given the
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
``(20) Scientifically valid research.--The term
`scientifically valid research' includes applied
research, basic research, and field-initiated research
in which the rationale, design, and interpretation are
soundly developed in accordance with principles of
scientific research.
``(21) Teacher mentoring.--The term `teacher
mentoring' means the mentoring of new or prospective
teachers through a program that--
``(A) includes clear criteria for the
selection of teacher mentors who will provide
role model relationships for mentees, which
criteria shall be developed by the eligible
partnership and based on measures of teacher
effectiveness;
``(B) provides high-quality training for
such mentors, including instructional
strategies for literacy instruction and
classroom management (including approaches that
improve the schoolwide climate for learning,
which may include positive behavioral
interventions and supports);
``(C) provides regular and ongoing
opportunities for mentors and mentees to
observe each other's teaching methods in
classroom settings during the day in a high-
need school in the high-need local educational
agency in the eligible partnership;
``(D) provides paid release time for
mentors, as applicable;
``(E) provides mentoring to each mentee by
a colleague who teaches in the same field,
grade, or subject as the mentee;
``(F) promotes empirically-based practice
of, and scientifically valid research on, where
applicable--
``(i) teaching and learning;
``(ii) assessment of student
learning;
``(iii) the development of teaching
skills through the use of instructional
and behavioral interventions; and
``(iv) the improvement of the
mentees' capacity to measurably advance
student learning; and
``(G) includes--
``(i) common planning time or
regularly scheduled collaboration for
the mentor and mentee; and
``(ii) joint professional
development opportunities.
``(22) Teaching residency program.--The term
`teaching residency program' means a school-based
teacher preparation program in which a prospective
teacher--
``(A) for one academic year, teaches
alongside a mentor teacher, who is the teacher
of record;
``(B) receives concurrent instruction
during the year described in subparagraph (A)
from the partner institution, which courses may
be taught by local educational agency personnel
or residency program faculty, in the teaching
of the content area in which the teacher will
become certified or licensed;
``(C) acquires effective teaching skills;
and
``(D) prior to completion of the program,
earns a master's degree, attains full State
teacher certification or licensure, and becomes
highly qualified.
``(23) Teaching skills.--The term `teaching skills'
means skills that enable a teacher to--
``(A) increase student learning,
achievement, and the ability to apply
knowledge;
``(B) effectively convey and explain
academic subject matter;
``(C) effectively teach higher-order
analytical, evaluation, problem-solving, and
communication skills;
``(D) employ strategies grounded in the
disciplines of teaching and learning that--
``(i) are based on empirically-
based practice and scientifically valid
research, where applicable, related to
teaching and learning;
``(ii) are specific to academic
subject matter; and
``(iii) focus on the identification
of students' specific learning needs,
particularly students with
disabilities, students who are limited
English proficient, students who are
gifted and talented, and students with
low literacy levels, and the tailoring
of academic instruction to such needs;
``(E) conduct an ongoing assessment of
student learning, which may include the use of
formative assessments, performance-based
assessments, project-based assessments, or
portfolio assessments, that measures higher-
order thinking skills (including application,
analysis, synthesis, and evaluation);
``(F) effectively manage a classroom,
including the ability to implement positive
behavioral interventions and support
strategies;
``(G) communicate and work with parents,
and involve parents in their children's
education; and
``(H) use, in the case of an early
childhood educator, age-appropriate and
developmentally appropriate strategies and
practices for children in early childhood
education programs.'';
(2) by striking part A and inserting the following:
``PART A--TEACHER QUALITY PARTNERSHIP GRANTS
``SEC. 201. PURPOSES.
``The purposes of this part are to--
``(1) improve student achievement;
``(2) improve the quality of prospective and new
teachers by improving the preparation of prospective
teachers and enhancing professional development
activities for new teachers;
``(3) hold teacher preparation programs at
institutions of higher education accountable for
preparing highly qualified teachers; and
``(4) recruit highly qualified individuals,
including minorities and individuals from other
occupations, into the teaching force.
``SEC. 202. PARTNERSHIP GRANTS.
``(a) Program Authorized.--From amounts made available
under section 209, the Secretary is authorized to award grants,
on a competitive basis, to eligible partnerships, to enable the
eligible partnerships to carry out the activities described in
subsection (c).
``(b) Application.--Each eligible partnership desiring a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may require. Each such application
shall contain--
``(1) a needs assessment of the partners in the
eligible partnership with respect to the preparation,
ongoing training, professional development, and
retention of general education and special education
teachers, principals, and, as applicable, early
childhood educators;
``(2) a description of the extent to which the
program to be carried out with grant funds, as
described in subsection (c), will prepare prospective
and new teachers with strong teaching skills;
``(3) a description of how such program will
prepare prospective and new teachers to understand and
use research and data to modify and improve classroom
instruction;
``(4) a description of--
``(A) how the eligible partnership will
coordinate strategies and activities assisted
under the grant with other teacher preparation
or professional development programs, including
programs funded under the Elementary and
Secondary Education Act of 1965 and the
Individuals with Disabilities Education Act,
and through the National Science Foundation;
and
``(B) how the activities of the partnership
will be consistent with State, local, and other
education reform activities that promote
teacher quality and student academic
achievement;
``(5) an assessment that describes the resources
available to the eligible partnership, including--
``(A) the integration of funds from other
related sources;
``(B) the intended use of the grant funds;
and
``(C) the commitment of the resources of
the partnership to the activities assisted
under this section, including financial
support, faculty participation, and time
commitments, and to the continuation of the
activities when the grant ends;
``(6) a description of--
``(A) how the eligible partnership will
meet the purposes of this part;
``(B) how the partnership will carry out
the activities required under subsection (d) or
(e), based on the needs identified in paragraph
(1), with the goal of improving student
academic achievement;
``(C) if the partnership chooses to use
funds under this section for a project or
activities under subsection (f) or (g), how the
partnership will carry out such project or
required activities based on the needs
identified in paragraph (1), with the goal of
improving student academic achievement;
``(D) the partnership's evaluation plan
under section 204(a);
``(E) how the partnership will align the
teacher preparation program under subsection
(c) with the--
``(i) State early learning
standards for early childhood education
programs, as appropriate, and with the
relevant domains of early childhood
development; and
``(ii) student academic achievement
standards and academic content
standards under section 1111(b)(2) of
the Elementary and Secondary Education
Act of 1965, established by the State
in which the partnership is located;
``(F) how the partnership will prepare
general education teachers to teach students
with disabilities, including training related
to participation as a member of individualized
education program teams, as defined in section
614(d)(1)(B) of the Individuals with
Disabilities Education Act;
``(G) how the partnership will prepare
general education and special education
teachers to teach students who are limited
English proficient;
``(H) how faculty at the partner
institution will work, during the term of the
grant, with highly qualified teachers in the
classrooms of high-need schools served by the
high-need local educational agency in the
partnership to--
``(i) provide high-quality
professional development activities to
strengthen the content knowledge and
teaching skills of elementary school
and secondary school teachers; and
``(ii) train other classroom
teachers to implement literacy programs
that incorporate the essential
components of reading instruction;
``(I) how the partnership will design,
implement, or enhance a year-long and rigorous
teaching preservice clinical program component;
``(J) how the partnership will support in-
service professional development strategies and
activities; and
``(K) how the partnership will collect,
analyze, and use data on the retention of all
teachers and early childhood educators in
schools and early childhood education programs
located in the geographic area served by the
partnership to evaluate the effectiveness of
the partnership's teacher and educator support
system; and
``(7) with respect to the induction program
required as part of the activities carried out under
this section--
``(A) a demonstration that the schools and
departments within the institution of higher
education that are part of the induction
program will effectively prepare teachers,
including providing content expertise and
expertise in teaching, as appropriate;
``(B) a demonstration of the eligible
partnership's capability and commitment to, and
the accessibility to and involvement of faculty
in, the use of empirically-based practice and
scientifically valid research on teaching and
learning;
``(C) a description of how the teacher
preparation program will design and implement
an induction program to support, through not
less than the first two years of teaching, all
new teachers who are prepared by the teacher
preparation program in the partnership and who
teach in the high-need local educational agency
in the partnership, and, to the extent
practicable, all new teachers who teach in such
high-need local educational agency, in the
further development of the new teachers'
teaching skills, including the use of mentors
who are trained and compensated by such program
for the mentors' work with new teachers; and
``(D) a description of how faculty involved
in the induction program will be able to
substantially participate in an early childhood
education program or an elementary school or
secondary school classroom setting, as
applicable, including release time and
receiving workload credit for such
participation.
``(c) Use of Grant Funds.--An eligible partnership that
receives a grant under this section--
``(1) shall use grant funds to carry out a program
for the pre-baccalaureate preparation of teachers under
subsection (d), a teaching residency program under
subsection (e), or a combination of such programs; and
``(2) may use grant funds to carry out a leadership
development program under subsection (f).
``(d) Partnership Grants for Pre-Baccalaureate Preparation
of Teachers.--An eligible partnership that receives a grant to
carry out an effective program for the pre-baccalaureate
preparation of teachers shall carry out a program that includes
all of the following:
``(1) Reforms.--
``(A) In general.--Implementing reforms,
described in subparagraph (B), within each
teacher preparation program and, as applicable,
each preparation program for early childhood
education programs, of the eligible partnership
that is assisted under this section, to hold
each program accountable for--
``(i) preparing--
``(I) new or prospective
teachers to be highly qualified
(including teachers in rural
school districts who may teach
multiple subjects, special
educators, and teachers of
students who are limited
English proficient who may
teach multiple subjects);
``(II) such teachers and,
as applicable, early childhood
educators, to understand
empirically-based practice and
scientifically valid research
related to teaching and
learning and the applicability
of such practice and research,
including through the effective
use of technology,
instructional techniques, and
strategies consistent with the
principles of universal design
for learning, and through
positive behavioral
interventions and support
strategies to improve student
achievement; and
``(III) as applicable,
early childhood educators to be
highly competent; and
``(ii) promoting strong teaching
skills and, as applicable, techniques
for early childhood educators to
improve children's cognitive, social,
emotional, and physical development.
``(B) Required reforms.--The reforms
described in subparagraph (A) shall include--
``(i) implementing teacher
preparation program curriculum changes
that improve, evaluate, and assess how
well all prospective and new teachers
develop teaching skills;
``(ii) using empirically-based
practice and scientifically valid
research, where applicable, about
teaching and learning so that all
prospective teachers and, as
applicable, early childhood educators--
``(I) understand and can
implement research-based
teaching practices in classroom
instruction;
``(II) have knowledge of
student learning methods;
``(III) possess skills to
analyze student academic
achievement data and other
measures of student learning,
and use such data and measures
to improve classroom
instruction;
``(IV) possess teaching
skills and an understanding of
effective instructional
strategies across all
applicable content areas that
enable general education and
special education teachers and
early childhood educators to--
``(aa) meet the
specific learning needs
of all students,
including students with
disabilities, students
who are limited English
proficient, students
who are gifted and
talented, students with
low literacy levels
and, as applicable,
children in early
childhood education
programs; and
``(bb)
differentiate
instruction for such
students;
``(V) can effectively
participate as a member of the
individualized education
program team, as defined in
section 614(d)(1)(B) of the
Individuals with Disabilities
Education Act; and
``(VI) can successfully
employ effective strategies for
reading instruction using the
essential components of reading
instruction;
``(iii) ensuring collaboration with
departments, programs, or units of a
partner institution outside of the
teacher preparation program in all
academic content areas to ensure that
prospective teachers receive training
in both teaching and relevant content
areas in order to become highly
qualified, which may include training
in multiple subjects to teach multiple
grade levels as may be needed for
individuals preparing to teach in rural
communities and for individuals
preparing to teach students with
disabilities as described in section
602(10)(D) of the Individuals with
Disabilities Education Act;
``(iv) developing and implementing
an induction program;
``(v) developing admissions goals
and priorities aligned with the hiring
objectives of the high-need local
educational agency in the eligible
partnership; and
``(vi) implementing program and
curriculum changes, as applicable, to
ensure that prospective teachers have
the requisite content knowledge,
preparation, and degree to teach
Advanced Placement or International
Baccalaureate courses successfully.
``(2) Clinical experience and interaction.--
Developing and improving a sustained and high-quality
preservice clinical education program to further
develop the teaching skills of all prospective teachers
and, as applicable, early childhood educators, involved
in the program. Such program shall do the following:
``(A) Incorporate year-long opportunities
for enrichment, including--
``(i) clinical learning in
classrooms in high-need schools served
by the high-need local educational
agency in the eligible partnership, and
identified by the eligible partnership;
and
``(ii) closely supervised
interaction between prospective
teachers and faculty, experienced
teachers, principals, other
administrators, and school leaders at
early childhood education programs (as
applicable), elementary schools, or
secondary schools, and providing
support for such interaction.
``(B) Integrate pedagogy and classroom
practice and promote effective teaching skills
in academic content areas.
``(C) Provide high-quality teacher
mentoring.
``(D) Be offered over the course of a
program of teacher preparation.
``(E) Be tightly aligned with course work
(and may be developed as a fifth year of a
teacher preparation program).
``(F) Where feasible, allow prospective
teachers to learn to teach in the same local
educational agency in which the teachers will
work, learning the instructional initiatives
and curriculum of that local educational
agency.
``(G) As applicable, provide training and
experience to enhance the teaching skills of
prospective teachers to better prepare such
teachers to meet the unique needs of teaching
in rural or urban communities.
``(H) Provide support and training for
individuals participating in an activity for
prospective or new teachers described in this
paragraph or paragraph (1) or (3), and for
individuals who serve as mentors for such
teachers, based on each individual's
experience. Such support may include--
``(i) with respect to a prospective
teacher or a mentor, release time for
such individual's participation;
``(ii) with respect to a faculty
member, receiving course workload
credit and compensation for time
teaching in the eligible partnership's
activities; and
``(iii) with respect to a mentor, a
stipend, which may include bonus,
differential, incentive, or performance
pay, based on the mentor's extra skills
and responsibilities.
``(3) Induction programs for new teachers.--
Creating an induction program for new teachers or, in
the case of an early childhood education program,
providing mentoring or coaching for new early childhood
educators.
``(4) Support and training for participants in
early childhood education programs.--In the case of an
eligible partnership focusing on early childhood
educator preparation, implementing initiatives that
increase compensation for early childhood educators who
attain associate or baccalaureate degrees in early
childhood education.
``(5) Teacher recruitment.--Developing and
implementing effective mechanisms (which may include
alternative routes to State certification of teachers)
to ensure that the eligible partnership is able to
recruit qualified individuals to become highly
qualified teachers through the activities of the
eligible partnership, which may include an emphasis on
recruiting into the teaching profession--
``(A) individuals from under represented
populations;
``(B) individuals to teach in rural
communities and teacher shortage areas,
including mathematics, science, special
education, and the instruction of limited
English proficient students; and
``(C) mid-career professionals from other
occupations, former military personnel, and
recent college graduates with a record of
academic distinction.
``(6) Literacy training.--Strengthening the
literacy teaching skills of prospective and, as
applicable, new elementary school and secondary school
teachers--
``(A) to implement literacy programs that
incorporate the essential components of reading
instruction;
``(B) to use screening, diagnostic,
formative, and summative assessments to
determine students' literacy levels,
difficulties, and growth in order to improve
classroom instruction and improve student
reading and writing skills;
``(C) to provide individualized, intensive,
and targeted literacy instruction for students
with deficiencies in literacy skills; and
``(D) to integrate literacy skills in the
classroom across subject areas.
``(e) Partnership Grants for the Establishment of Teaching
Residency Programs.--
``(1) In general.--An eligible partnership
receiving a grant to carry out an effective teaching
residency program shall carry out a program that
includes all of the following activities:
``(A) Supporting a teaching residency
program described in paragraph (2) for high-
need subjects and areas, as determined by the
needs of the high-need local educational agency
in the partnership.
``(B) Placing graduates of the teaching
residency program in cohorts that facilitate
professional collaboration, both among
graduates of the teaching residency program and
between such graduates and mentor teachers in
the receiving school.
``(C) Ensuring that teaching residents who
participate in the teaching residency program
receive--
``(i) effective preservice
preparation as described in paragraph
(2);
``(ii) teacher mentoring;
``(iii) support required through
the induction program as the teaching
residents enter the classroom as new
teachers; and
``(iv) the preparation described in
subparagraphs (A), (B), and (C) of
subsection (d)(2).
``(2) Teaching residency programs.--
``(A) Establishment and design.--A teaching
residency program under this paragraph shall be
a program based upon models of successful
teaching residencies that serves as a mechanism
to prepare teachers for success in the high-
need schools in the eligible partnership, and
shall be designed to include the following
characteristics of successful programs:
``(i) The integration of pedagogy,
classroom practice, and teacher
mentoring.
``(ii) Engagement of teaching
residents in rigorous graduate-level
course work to earn a master's degree
while undertaking a guided teaching
apprenticeship.
``(iii) Experience and learning
opportunities alongside a trained and
experienced mentor teacher--
``(I) whose teaching shall
complement the residency
program so that classroom
clinical practice is tightly
aligned with coursework;
``(II) who shall have extra
responsibilities as a teacher
leader of the teaching
residency program, as a mentor
for residents, and as a teacher
coach during the induction
program for new teachers, and
for establishing, within the
program, a learning community
in which all individuals are
expected to continually improve
their capacity to advance
student learning; and
``(III) who may be relieved
from teaching duties as a
result of such additional
responsibilities.
``(iv) The establishment of clear
criteria for the selection of mentor
teachers based on measures of teacher
effectiveness and the appropriate
subject area knowledge. Evaluation of
teacher effectiveness shall be based
on, but not limited to, observations of
the following:
``(I) Planning and
preparation, including
demonstrated knowledge of
content, pedagogy, and
assessment, including the use
of formative and diagnostic
assessments to improve student
learning.
``(II) Appropriate
instruction that engages
students with different
learning styles.
``(III) Collaboration with
colleagues to improve
instruction.
``(IV) Analysis of gains in
student learning, based on
multiple measures that are
valid and reliable and that,
when feasible, may include
valid, reliable, and objective
measures of the influence of
teachers on the rate of student
academic progress.
``(V) In the case of mentor
candidates who will be
mentoring new or prospective
literacy and mathematics
coaches or instructors,
appropriate skills in the
essential components of reading
instruction, teacher training
in literacy instructional
strategies across core subject
areas, and teacher training in
mathematics instructional
strategies, as appropriate.
``(v) Grouping of teaching
residents in cohorts to facilitate
professional collaboration among such
residents.
``(vi) The development of
admissions goals and priorities--
``(I) that are aligned with
the hiring objectives of the
local educational agency
partnering with the program, as
well as the instructional
initiatives and curriculum of
such agency, in exchange for a
commitment by such agency to
hire qualified graduates from
the teaching residency program;
and
``(II) which may include
consideration of applicants who
reflect the communities in
which they will teach as well
as consideration of individuals
from underrepresented
populations in the teaching
profession.
``(vii) Support for residents, once
the teaching residents are hired as
teachers of record, through an
induction program, professional
development, and networking
opportunities to support the residents
through not less than the residents'
first two years of teaching.
``(B) Selection of individuals as teacher
residents.--
``(i) Eligible individual.--In
order to be eligible to be a teacher
resident in a teaching residency
program under this paragraph, an
individual shall--
``(I) be a recent graduate
of a four-year institution of
higher education or a mid-
career professional from
outside the field of education
possessing strong content
knowledge or a record of
professional accomplishment;
and
``(II) submit an
application to the teaching
residency program.
``(ii) Selection criteria.--An
eligible partnership carrying out a
teaching residency program under this
subsection shall establish criteria for
the selection of eligible individuals
to participate in the teaching
residency program based on the
following characteristics:
``(I) Strong content
knowledge or record of
accomplishment in the field or
subject area to be taught.
``(II) Strong verbal and
written communication skills,
which may be demonstrated by
performance on appropriate
tests.
``(III) Other attributes
linked to effective teaching,
which may be determined by
interviews or performance
assessments, as specified by
the eligible partnership.
``(C) Stipends or salaries; applications;
agreements; repayments.--
``(i) Stipends or salaries.--A
teaching residency program under this
subsection shall provide a one-year
living stipend or salary to teaching
residents during the one-year teaching
residency program.
``(ii) Applications for stipends or
salaries.--Each teacher residency
candidate desiring a stipend or salary
during the period of residency shall
submit an application to the eligible
partnership at such time, and
containing such information and
assurances, as the eligible partnership
may require.
``(iii) Agreements to serve.--Each
application submitted under clause (ii)
shall contain or be accompanied by an
agreement that the applicant will--
``(I) serve as a full-time
teacher for a total of not less
than three academic years
immediately after successfully
completing the one-year
teaching residency program;
``(II) fulfill the
requirement under subclause (I)
by teaching in a high-need
school served by the high-need
local educational agency in the
eligible partnership and teach
a subject or area that is
designated as high need by the
partnership;
``(III) provide to the
eligible partnership a
certificate, from the chief
administrative officer of the
local educational agency in
which the resident is employed,
of the employment required in
subclauses (I) and (II) at the
beginning of, and upon
completion of, each year or
partial year of service;
``(IV) meet the
requirements to be a highly
qualified teacher, as defined
in section 9101 of the
Elementary and Secondary
Education Act of 1965, or
section 602 of the Individuals
with Disabilities Education
Act, when the applicant begins
to fulfill the service
obligation under this clause;
and
``(V) comply with the
requirements set by the
eligible partnership under
clause (iv) if the applicant is
unable or unwilling to complete
the service obligation required
by this clause.
``(iv) Repayments.--
``(I) In general.--A
grantee carrying out a teaching
residency program under this
paragraph shall require a
recipient of a stipend or
salary under clause (i) who
does not complete, or who
notifies the partnership that
the recipient intends not to
complete, the service
obligation required by clause
(iii) to repay such stipend or
salary to the eligible
partnership, together with
interest, at a rate specified
by the partnership in the
agreement, and in accordance
with such other terms and
conditions specified by the
eligible partnership, as
necessary.
``(II) Other terms and
conditions.--Any other terms
and conditions specified by the
eligible partnership may
include reasonable provisions
for pro-rata repayment of the
stipend or salary described in
clause (i) or for deferral of a
teaching resident's service
obligation required by clause
(iii), on grounds of health,
incapacitation, inability to
secure employment in a school
served by the eligible
partnership, being called to
active duty in the Armed Forces
of the United States, or other
extraordinary circumstances.
``(III) Use of
repayments.--An eligible
partnership shall use any
repayment received under this
clause to carry out additional
activities that are consistent
with the purposes of this
subsection.
``(f) Partnership Grants for the Development of Leadership
Programs.--
``(1) In general.--An eligible partnership that
receives a grant under this section may carry out an
effective school leadership program, which may be
carried out in partnership with a local educational
agency located in a rural area and that shall include
all of the following activities:
``(A) Preparing individuals enrolled or
preparing to enroll in school leadership
programs for careers as superintendents,
principals, early childhood education program
directors, or other school leaders (including
individuals preparing to work in local
educational agencies located in rural areas who
may perform multiple duties in addition to the
role of a school leader).
``(B) Promoting strong leadership skills
and, as applicable, techniques for school
leaders to effectively--
``(i) create and maintain a data-
driven, professional learning community
within the leader's school;
``(ii) provide a climate conducive
to the professional development of
teachers, with a focus on improving
student academic achievement and the
development of effective instructional
leadership skills;
``(iii) understand the teaching and
assessment skills needed to support
successful classroom instruction and to
use data to evaluate teacher
instruction and drive teacher and
student learning;
``(iv) manage resources and school
time to improve student academic
achievement and ensure the school
environment is safe;
``(v) engage and involve parents,
community members, the local
educational agency, businesses, and
other community leaders, to leverage
additional resources to improve student
academic achievement; and
``(vi) understand how students
learn and develop in order to increase
academic achievement for all students.
``(C) Ensuring that individuals who
participate in the school leadership program
receive--
``(i) effective preservice
preparation as described in
subparagraph (D);
``(ii) mentoring; and
``(iii) if applicable, full State
certification or licensure to become a
school leader.
``(D) Developing and improving a sustained
and high-quality preservice clinical education
program to further develop the leadership
skills of all prospective school leaders
involved in the program. Such clinical
education program shall do the following:
``(i) Incorporate year-long
opportunities for enrichment,
including--
``(I) clinical learning in
high-need schools served by the
high-need local educational
agency or a local educational
agency located in a rural area
in the eligible partnership and
identified by the eligible
partnership; and
``(II) closely supervised
interaction between prospective
school leaders and faculty, new
and experienced teachers, and
new and experienced school
leaders, in such high-need
schools.
``(ii) Integrate pedagogy and
practice and promote effective
leadership skills, meeting the unique
needs of urban, rural, or
geographically isolated communities, as
applicable.
``(iii) Provide for mentoring of
new school leaders.
``(E) Creating an induction program for new
school leaders.
``(F) Developing and implementing effective
mechanisms to ensure that the eligible
partnership is able to recruit qualified
individuals to become school leaders through
the activities of the eligible partnership,
which may include an emphasis on recruiting
into school leadership professions--
``(i) individuals from
underrepresented populations;
``(ii) individuals to serve as
superintendents, principals, or other
school administrators in rural and
geographically isolated communities and
school leader shortage areas; and
``(iii) mid-career professionals
from other occupations, former military
personnel, and recent college graduates
with a record of academic distinction.
``(2) Selection of individuals for the leadership
program.--In order to be eligible for the school
leadership program under this subsection, an individual
shall be enrolled in or preparing to enroll in an
institution of higher education, and shall--
``(A) be a--
``(i) recent graduate of an
institution of higher education;
``(ii) mid-career professional from
outside the field of education with
strong content knowledge or a record of
professional accomplishment;
``(iii) current teacher who is
interested in becoming a school leader;
or
``(iv) school leader who is
interested in becoming a
superintendent; and
``(B) submit an application to the
leadership program.
``(g) Partnership With Digital Education Content
Developer.--An eligible partnership that receives a grant under
this section may use grant funds provided to carry out the
activities described in subsection (d) or (e), or both, to
partner with a television public broadcast station, as defined
in section 397(6) of the Communications Act of 1934 (47 U.S.C.
397(6)), or another entity that develops digital educational
content, for the purpose of improving the quality of pre-
baccalaureate teacher preparation programs or to enhance the
quality of preservice training for prospective teachers.
``(h) Evaluation and Reporting.--The Secretary shall--
``(1) evaluate the programs assisted under this
section; and
``(2) make publicly available a report detailing
the Secretary's evaluation of each such program.
``(i) Consultation.--
``(1) In general.--Members of an eligible
partnership that receives a grant under this section
shall engage in regular consultation throughout the
development and implementation of programs and
activities carried out under this section.
``(2) Regular communication.--To ensure timely and
meaningful consultation as described in paragraph (1),
regular communication shall occur among all members of
the eligible partnership, including the high-need local
educational agency. Such communication shall continue
throughout the implementation of the grant and the
assessment of programs and activities under this
section.
``(3) Written consent.--The Secretary may approve
changes in grant activities of a grant under this
section only if the eligible partnership submits to the
Secretary a written consent of such changes signed by
all members of the eligible partnership.
``(j) Construction.--Nothing in this section shall be
construed to prohibit an eligible partnership from using grant
funds to coordinate with the activities of eligible
partnerships in other States or on a regional basis through
Governors, State boards of education, State educational
agencies, State agencies responsible for early childhood
education, local educational agencies, or State agencies for
higher education.
``(k) Supplement, Not Supplant.--Funds made available under
this section shall be used to supplement, and not supplant,
other Federal, State, and local funds that would otherwise be
expended to carry out activities under this section.
``SEC. 203. ADMINISTRATIVE PROVISIONS.
``(a) Duration; Number of Awards; Payments.--
``(1) Duration.--A grant awarded under this part
shall be awarded for a period of five years.
``(2) Number of awards.--An eligible partnership
may not receive more than one grant during a five-year
period. Nothing in this title shall be construed to
prohibit an individual member, that can demonstrate
need, of an eligible partnership that receives a grant
under this title from entering into another eligible
partnership consisting of new members and receiving a
grant with such other eligible partnership before the
five-year period described in the preceding sentence
applicable to the eligible partnership with which the
individual member has first partnered has expired.
``(b) Peer Review.--
``(1) Panel.--The Secretary shall provide the
applications submitted under this part to a peer review
panel for evaluation. With respect to each application,
the peer review panel shall initially recommend the
application for funding or for disapproval.
``(2) Priority.--The Secretary, in funding
applications under this part, shall give priority--
``(A) to eligible partnerships that include
an institution of higher education whose
teacher preparation program has a rigorous
selection process to ensure the highest quality
of students entering such program; and
``(B)(i) to applications from broad-based
eligible partnerships that involve businesses
and community organizations; or
``(ii) to eligible partnerships so that the
awards promote an equitable geographic
distribution of grants among rural and urban
areas.
``(3) Secretarial selection.--The Secretary shall
determine, based on the peer review process, which
applications shall receive funding and the amounts of
the grants. In determining grant amounts, the Secretary
shall take into account the total amount of funds
available for all grants under this part and the types
of activities proposed to be carried out by the
eligible partnership.
``(c) Matching Requirements.--
``(1) In general.--Each eligible partnership
receiving a grant under this part shall provide, from
non-Federal sources, an amount equal to 100 percent of
the amount of the grant, which may be provided in cash
or in-kind, to carry out the activities supported by
the grant.
``(2) Waiver.--The Secretary may waive all or part
of the matching requirement described in paragraph (1)
for any fiscal year for an eligible partnership if the
Secretary determines that applying the matching
requirement to the eligible partnership would result in
serious hardship or an inability to carry out the
authorized activities described in this part.
``(d) Limitation on Administrative Expenses.--An eligible
partnership that receives a grant under this part may use not
more than two percent of the funds provided to administer the
grant.
``SEC. 204. ACCOUNTABILITY AND EVALUATION.
``(a) Eligible Partnership Evaluation.--Each eligible
partnership submitting an application for a grant under this
part shall establish, and include in such application, an
evaluation plan that includes strong and measurable performance
objectives. The plan shall include objectives and measures for
increasing--
``(1) achievement for all prospective and new
teachers, as measured by the eligible partnership;
``(2) teacher retention in the first three years of
a teacher's career;
``(3) improvement in the pass rates and scaled
scores for initial State certification or licensure of
teachers; and
``(4)(A) the percentage of highly qualified
teachers hired by the high-need local educational
agency participating in the eligible partnership;
``(B) the percentage of highly qualified teachers
hired by the high-need local educational agency who are
members of underrepresented groups;
``(C) the percentage of highly qualified teachers
hired by the high-need local educational agency who
teach high-need academic subject areas (such as
reading, mathematics, science, and foreign language,
including less commonly taught languages and critical
foreign languages);
``(D) the percentage of highly qualified teachers
hired by the high-need local educational agency who
teach in high-need areas (including special education,
language instruction educational programs for limited
English proficient students, and early childhood
education);
``(E) the percentage of highly qualified teachers
hired by the high-need local educational agency who
teach in high-need schools, disaggregated by the
elementary school and secondary school levels;
``(F) as applicable, the percentage of early
childhood education program classes in the geographic
area served by the eligible partnership taught by early
childhood educators who are highly competent; and
``(G) as applicable, the percentage of teachers
trained--
``(i) to integrate technology effectively
into curricula and instruction, including
technology consistent with the principles of
universal design for learning; and
``(ii) to use technology effectively to
collect, manage, and analyze data to improve
teaching and learning for the purpose of
improving student academic achievement.
``(b) Information.--An eligible partnership receiving a
grant under this part shall ensure that teachers, principals,
school superintendents, faculty, and leadership at institutions
of higher education located in the geographic areas served by
the eligible partnership are provided information, including
through electronic means, about the activities carried out with
funds under this part.
``(c) Revised Application.--If the Secretary determines
that an eligible partnership receiving a grant under this part
is not making substantial progress in meeting the purposes,
goals, objectives, and measures of the grant, as appropriate,
by the end of the third year of a grant under this part, then
the Secretary--
``(1) shall cancel the grant; and
``(2) may use any funds returned or available
because of such cancellation under paragraph (1) to--
``(A) increase other grant awards under
this part; or
``(B) award new grants to other eligible
partnerships under this part.
``(d) Evaluation and Dissemination.--The Secretary shall
evaluate the activities funded under this part and report the
findings regarding the evaluation of such activities to the
authorizing committees. The Secretary shall broadly
disseminate--
``(1) successful practices developed by eligible
partnerships under this part; and
``(2) information regarding such practices that
were found to be ineffective.
``SEC. 205. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.
``(a) Institutional and Program Report Cards on the Quality
of Teacher Preparation.--
``(1) Report card.--Each institution of higher
education that conducts a traditional teacher
preparation program or alternative routes to State
certification or licensure program and that enrolls
students receiving Federal assistance under this Act
shall report annually to the State and the general
public, in a uniform and comprehensible manner that
conforms with the definitions and methods established
by the Secretary, the following:
``(A) Goals and assurances.--
``(i) For the most recent year for
which the information is available for
the institution--
``(I) whether the goals set
under section 206 have been
met; and
``(II) a description of the
activities the institution
implemented to achieve such
goals.
``(ii) A description of the steps
the institution is taking to improve
its performance in meeting the annual
goals set under section 206.
``(iii) A description of the
activities the institution has
implemented to meet the assurances
provided under section 206.
``(B) Pass rates and scaled scores.--For
the most recent year for which the information
is available for those students who took the
assessments used for teacher certification or
licensure by the State in which the program is
located and are enrolled in the traditional
teacher preparation program or alternative
routes to State certification or licensure
program, and for those who have taken such
assessments and have completed the traditional
teacher preparation program or alternative
routes to State certification or licensure
program during the two-year period preceding
such year, for each of such assessments--
``(i) the percentage of students
who have completed 100 percent of the
nonclinical coursework and taken the
assessment who pass such assessment;
``(ii) the percentage of all
students who passed such assessment;
``(iii) the percentage of students
who have taken such assessment who
enrolled in and completed the
traditional teacher preparation program
or alternative routes to State
certification or licensure program, as
applicable;
``(iv) the average scaled score for
all students who took such assessment;
``(v) a comparison of the program's
pass rates with the average pass rates
for programs in the State; and
``(vi) a comparison of the
program's average scaled scores with
the average scaled scores for programs
in the State.
``(C) Program information.--A description
of--
``(i) the criteria for admission
into the program;
``(ii) the number of students in
the program (disaggregated by race,
ethnicity, and gender);
``(iii) the average number of hours
of supervised clinical experience
required for those in the program;
``(iv) the number of full-time
equivalent faculty and students in the
supervised clinical experience; and
``(v) the total number of students
who have been certified or licensed as
teachers, disaggregated by subject and
area of certification or licensure.
``(D) Statement.--In States that require
approval or accreditation of teacher
preparation programs, a statement of whether
the institution's program is so approved or
accredited, and by whom.
``(E) Designation as low-performing.--
Whether the program has been designated as low-
performing by the State under section 207(a).
``(F) Use of technology.--A description of
the activities, including activities consistent
with the principles of universal design for
learning, that prepare teachers to integrate
technology effectively into curricula and
instruction, and to use technology effectively
to collect, manage, and analyze data in order
to improve teaching and learning for the
purpose of increasing student academic
achievement.
``(G) Teacher training.--A description of
the activities that prepare general education
and special education teachers to teach
students with disabilities effectively,
including training related to participation as
a member of individualized education program
teams, as defined in section 614(d)(1)(B) of
the Individuals with Disabilities Education
Act, and to effectively teach students who are
limited English proficient.
``(2) Report.--Each eligible partnership receiving
a grant under section 202 shall report annually on the
progress of the eligible partnership toward meeting the
purposes of this part and the objectives and measures
described in section 204(a).
``(3) Fines.--The Secretary may impose a fine not
to exceed $27,500 on an institution of higher education
for failure to provide the information described in
this subsection in a timely or accurate manner.
``(4) Special rule.--In the case of an institution
of higher education that conducts a traditional teacher
preparation program or alternative routes to State
certification or licensure program and has fewer than
10 scores reported on any single initial teacher
certification or licensure assessment during an
academic year, the institution shall collect and
publish information, as required under paragraph
(1)(B), with respect to an average pass rate and scaled
score on each State certification or licensure
assessment taken over a three-year period.
``(b) State Report Card on the Quality of Teacher
Preparation.--
``(1) In general.--Each State that receives funds
under this Act shall provide to the Secretary, and make
widely available to the general public, in a uniform
and comprehensible manner that conforms with the
definitions and methods established by the Secretary,
an annual State report card on the quality of teacher
preparation in the State, both for traditional teacher
preparation programs and for alternative routes to
State certification or licensure programs, which shall
include not less than the following:
``(A) A description of the reliability and
validity of the teacher certification and
licensure assessments, and any other
certification and licensure requirements, used
by the State.
``(B) The standards and criteria that
prospective teachers must meet to attain
initial teacher certification or licensure and
to be certified or licensed to teach particular
academic subjects, areas, or grades within the
State.
``(C) A description of how the assessments
and requirements described in subparagraph (A)
are aligned with the State's challenging
academic content standards required under
section 1111(b)(1) of the Elementary and
Secondary Education Act of 1965 and, as
applicable, State early learning standards for
early childhood education programs.
``(D) For each of the assessments used by
the State for teacher certification or
licensure--
``(i) for each institution of
higher education located in the State
and each entity located in the State,
including those that offer an
alternative route for teacher
certification or licensure, the
percentage of students at such
institution or entity who have
completed 100 percent of the
nonclinical coursework and taken the
assessment who pass such assessment;
``(ii) the percentage of all such
students at all such institutions and
entities who have taken the assessment
who pass such assessment;
``(iii) the percentage of students
who have taken the assessment who
enrolled in and completed a teacher
preparation program; and
``(iv) the average scaled score of
individuals participating in such a
program, or who have completed such a
program during the two-year period
preceding the first year for which the
annual State report card is provided,
who took each such assessment.
``(E) A description of alternative routes
to teacher certification or licensure in the
State (including any such routes operated by
entities that are not institutions of higher
education), if any, including, for each of the
assessments used by the State for teacher
certification or licensure--
``(i) the percentage of individuals
participating in such routes, or who
have completed such routes during the
two-year period preceding the date for
which the determination is made, who
passed each such assessment; and
``(ii) the average scaled score of
individuals participating in such
routes, or who have completed such
routes during the two-year period
preceding the first year for which the
annual State report card is provided,
who took each such assessment.
``(F) A description of the State's criteria
for assessing the performance of teacher
preparation programs within institutions of
higher education in the State. Such criteria
shall include indicators of the academic
content knowledge and teaching skills of
students enrolled in such programs.
``(G) For each teacher preparation program
in the State--
``(i) the criteria for admission
into the program;
``(ii) the number of students in
the program, disaggregated by race,
ethnicity, and gender (except that such
disaggregation shall not be required in
a case in which the number of students
in a category is insufficient to yield
statistically reliable information or
the results would reveal personally
identifiable information about an
individual student);
``(iii) the average number of hours
of supervised clinical experience
required for those in the program; and
``(iv) the number of full-time
equivalent faculty, adjunct faculty,
and students in supervised clinical
experience.
``(H) For the State as a whole, and for
each teacher preparation program in the State,
the number of teachers prepared, in the
aggregate and reported separately by--
``(i) area of certification or
licensure;
``(ii) academic major; and
``(iii) subject area for which the
teacher has been prepared to teach.
``(I) A description of the extent to which
teacher preparation programs are addressing
shortages of highly qualified teachers, by area
of certification or licensure, subject, and
specialty, in the State's public schools.
``(J) The extent to which teacher
preparation programs prepare teachers,
including general education and special
education teachers, to teach students with
disabilities effectively, including training
related to participation as a member of
individualized education program teams, as
defined in section 614(d)(1)(B) of the
Individuals with Disabilities Education Act.
``(K) A description of the activities that
prepare teachers to--
``(i) integrate technology
effectively into curricula and
instruction, including activities
consistent with the principles of
universal design for learning; and
``(ii) use technology effectively
to collect, manage, and analyze data to
improve teaching and learning for the
purpose of increasing student academic
achievement.
``(L) The extent to which teacher
preparation programs prepare teachers,
including general education and special
education teachers, to effectively teach
students who are limited English proficient.
``(2) Prohibition against creating a national
list.--The Secretary shall not create a national list
or ranking of States, institutions, or schools using
the scaled scores provided under this subsection.
``(c) Data Quality.--The Secretary shall prescribe
regulations to ensure the reliability, validity, integrity, and
accuracy of the data submitted pursuant to this section.
``(d) Report of the Secretary on the Quality of Teacher
Preparation.--
``(1) Report card.--The Secretary shall annually
provide to the authorizing committees, and publish and
make widely available, a report card on teacher
qualifications and preparation in the United States,
including all the information reported in subparagraphs
(A) through (L) of subsection (b)(1). Such report shall
identify States for which eligible partnerships
received a grant under this part.
``(2) Report to congress.--The Secretary shall
prepare and submit a report to the authorizing
committees that contains the following:
``(A) A comparison of States' efforts to
improve the quality of the current and future
teaching force.
``(B) A comparison of eligible
partnerships' efforts to improve the quality of
the current and future teaching force.
``(C) The national mean and median scaled
scores and pass rate on any standardized test
that is used in more than one State for teacher
certification or licensure.
``(3) Special rule.--In the case of a teacher
preparation program with fewer than ten scores reported
on any single initial teacher certification or
licensure assessment during an academic year, the
Secretary shall collect and publish, and make publicly
available, information with respect to an average pass
rate and scaled score on each State certification or
licensure assessment taken over a three-year period.
``(e) Coordination.--The Secretary, to the extent
practicable, shall coordinate the information collected and
published under this part among States for individuals who took
State teacher certification or licensure assessments in a State
other than the State in which the individual received the
individual's most recent degree.
``SEC. 206. TEACHER DEVELOPMENT.
``(a) Annual Goals.--Each institution of higher education
that conducts a traditional teacher preparation program
(including programs that offer any ongoing professional
development programs) or alternative routes to State
certification or licensure program, and that enrolls students
receiving Federal assistance under this Act, shall set annual
quantifiable goals for increasing the number of prospective
teachers trained in teacher shortage areas designated by the
Secretary or by the State educational agency, including
mathematics, science, special education, and instruction of
limited English proficient students.
``(b) Assurances.--Each institution described in subsection
(a) shall provide assurances to the Secretary that--
``(1) training provided to prospective teachers
responds to the identified needs of the local
educational agencies or States where the institution's
graduates are likely to teach, based on past hiring and
recruitment trends;
``(2) training provided to prospective teachers is
closely linked with the needs of schools and the
instructional decisions new teachers face in the
classroom;
``(3) prospective special education teachers
receive course work in core academic subjects and
receive training in providing instruction in core
academic subjects;
``(4) general education teachers receive training
in providing instruction to diverse populations,
including children with disabilities, limited English
proficient students, and children from low-income
families; and
``(5) prospective teachers receive training on how
to effectively teach in urban and rural schools, as
applicable.
``(c) Rule of Construction.--Nothing in this section shall
be construed to require an institution to create a new teacher
preparation area of concentration or degree program or adopt a
specific curriculum in complying with this section.
``SEC. 207. STATE FUNCTIONS.
``(a) State Assessment.--In order to receive funds under
this Act, a State shall conduct an assessment to identify low-
performing teacher preparation programs in the State and to
assist such programs through the provision of technical
assistance. Each such State shall provide the Secretary with an
annual list of low-performing teacher preparation programs and
an identification of those programs at risk of being placed on
such list, as applicable. Such assessment shall be described in
the report under section 205(b). Levels of performance shall be
determined solely by the State and may include criteria based
on information collected pursuant to this part, including
progress in meeting the goals of--
``(1) increasing the percentage of highly qualified
teachers in the State, including increasing
professional development opportunities;
``(2) improving student academic achievement for
elementary and secondary students; and
``(3) raising the standards for entry into the
teaching profession.
``(b) Termination of Eligibility.--Any teacher preparation
program from which the State has withdrawn the State's
approval, or terminated the State's financial support, due to
the low performance of the program based upon the State
assessment described in subsection (a)--
``(1) shall be ineligible for any funding for
professional development activities awarded by the
Department;
``(2) may not be permitted to accept or enroll any
student who receives aid under title IV in the
institution's teacher preparation program;
``(3) shall provide transitional support, including
remedial services if necessary, for students enrolled
at the institution at the time of termination of
financial support or withdrawal of approval; and
``(4) shall be reinstated upon demonstration of
improved performance, as determined by the State.
``(c) Negotiated Rulemaking.--If the Secretary develops any
regulations implementing subsection (b)(2), the Secretary shall
submit such proposed regulations to a negotiated rulemaking
process, which shall include representatives of States,
institutions of higher education, and educational and student
organizations.
``(d) Application of the Requirements.--The requirements of
this section shall apply to both traditional teacher
preparation programs and alternative routes to State
certification and licensure programs.
``SEC. 208. GENERAL PROVISIONS.
``(a) Methods.--In complying with sections 205 and 206, the
Secretary shall ensure that States and institutions of higher
education use fair and equitable methods in reporting and that
the reporting methods do not reveal personally identifiable
information.
``(b) Special Rule.--For each State that does not use
content assessments as a means of ensuring that all teachers
teaching in core academic subjects within the State are highly
qualified, as required under section 1119 of the Elementary and
Secondary Education Act of 1965, in accordance with the State
plan submitted or revised under section 1111 of such Act, and
that each person employed as a special education teacher in the
State who teaches elementary school or secondary school is
highly qualified by the deadline, as required under section
612(a)(14)(C) of the Individuals with Disabilities Education
Act, the Secretary shall--
``(1) to the extent practicable, collect data
comparable to the data required under this part from
States, local educational agencies, institutions of
higher education, or other entities that administer
such assessments to teachers or prospective teachers;
and
``(2) notwithstanding any other provision of this
part, use such data to carry out requirements of this
part related to assessments, pass rates, and scaled
scores.
``(c) Release of Information to Teacher Preparation
Programs.--
``(1) In general.--For the purpose of improving
teacher preparation programs, a State that receives
funds under this Act, or that participates as a member
of a partnership, consortium, or other entity that
receives such funds, shall provide to a teacher
preparation program, upon the request of the teacher
preparation program, any and all pertinent education-
related information that--
``(A) may enable the teacher preparation
program to evaluate the effectiveness of the
program's graduates or the program itself; and
``(B) is possessed, controlled, or
accessible by the State.
``(2) Content of information.--The information
described in paragraph (1)--
``(A) shall include an identification of
specific individuals who graduated from the
teacher preparation program to enable the
teacher preparation program to evaluate the
information provided to the program from the
State with the program's own data about the
specific courses taken by, and field
experiences of, the individual graduates; and
``(B) may include--
``(i) kindergarten through grade 12
academic achievement and demographic
data, without revealing personally
identifiable information about an
individual student, for students who
have been taught by graduates of the
teacher preparation program; and
``(ii) teacher effectiveness
evaluations for teachers who graduated
from the teacher preparation program.
``SEC. 209. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part $300,000,000 for fiscal year 2009 and such sums as may be
necessary for each of the two succeeding fiscal years.''; and
(3) by striking part B and inserting the following:
``PART B--ENHANCING TEACHER EDUCATION
``SEC. 230. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part such sums as may be necessary for fiscal year 2009 and
each of the five succeeding fiscal years.
``Subpart 1--Preparing Teachers for Digital Age Learners
``SEC. 231. PROGRAM AUTHORIZED.
``(a) Program Authority.--The Secretary is authorized to
award grants to, or enter into contracts or cooperative
agreements with, eligible consortia to pay the Federal share of
the costs of projects to--
``(1) serve graduate teacher candidates who are
prepared to use modern information, communication, and
learning tools to--
``(A) improve student learning, assessment,
and learning management; and
``(B) help students develop learning skills
to succeed in higher education and to enter the
workforce;
``(2) strengthen and develop partnerships among the
stakeholders in teacher preparation to transform
teacher education and ensure technology-rich teaching
and learning environments throughout a teacher
candidate's preservice education, including clinical
experiences; and
``(3) assess the effectiveness of departments,
schools, and colleges of education at institutions of
higher education in preparing teacher candidates for
successful implementation of technology-rich teaching
and learning environments, including environments
consistent with the principles of universal design for
learning, that enable kindergarten through grade 12
students to develop learning skills to succeed in
higher education and to enter the workforce.
``(b) Amount and Duration.--A grant, contract, or
cooperative agreement under this subpart--
``(1) shall be for not more than $2,000,000;
``(2) shall be for a three-year period; and
``(3) may be renewed for one additional year.
``(c) Non-Federal Share Requirement.--The Federal share of
the cost of any project funded under this subpart shall not
exceed 75 percent. The non-Federal share of the cost of such
project may be provided in cash or in kind, fairly evaluated,
including services.
``(d) Definition of Eligible Consortium.--In this subpart,
the term `eligible consortium' means a consortium of members
that includes the following:
``(1) Not less than one institution of higher
education that awards baccalaureate or masters degrees
and prepares teachers for initial entry into teaching.
``(2) Not less than one State educational agency or
local educational agency.
``(3) A department, school, or college of education
at an institution of higher education.
``(4) A department, school, or college of arts and
sciences at an institution of higher education.
``(5) Not less than one entity with the capacity to
contribute to the technology-related reform of teacher
preparation programs, which may be a professional
association, foundation, museum, library, for-profit
business, public or private nonprofit organization,
community-based organization, or other entity.
``SEC. 232. USES OF FUNDS.
``(a) In General.--An eligible consortium that receives a
grant or enters into a contract or cooperative agreement under
this subpart shall use funds made available under this subpart
to carry out a project that--
``(1) develops long-term partnerships among members
of the consortium that are focused on effective
teaching with modern digital tools and content that
substantially connect preservice preparation of teacher
candidates with high-need schools; or
``(2) transforms the way departments, schools, and
colleges of education teach classroom technology
integration, including the principles of universal
design, to teacher candidates.
``(b) Uses of Funds for Partnership Grants.--In carrying
out a project under subsection (a)(1), an eligible consortium
shall--
``(1) provide teacher candidates, early in their
preparation, with field experiences with technology in
educational settings;
``(2) build the skills of teacher candidates to
support technology-rich instruction, assessment and
learning management in content areas, technology
literacy, an understanding of the principles of
universal design, and the development of other skills
for entering the workforce;
``(3) provide professional development in the use
of technology for teachers, administrators, and content
specialists who participate in field placement;
``(4) provide professional development of
technology pedagogical skills for faculty of
departments, schools, and colleges of education and
arts and sciences;
``(5) implement strategies for the mentoring of
teacher candidates by members of the consortium with
respect to technology implementation;
``(6) evaluate teacher candidates during the first
years of teaching to fully assess outcomes of the
project;
``(7) build collaborative learning communities for
technology integration within the consortium to sustain
meaningful applications of technology in the classroom
during teacher preparation and early career practice;
and
``(8) evaluate the effectiveness of the project.
``(c) Uses of Funds for Transformation Grants.--In carrying
out a project under subsection (a)(2), an eligible consortium
shall--
``(1) redesign curriculum to require collaboration
between the department, school, or college of education
faculty and the department, school, or college of arts
and sciences faculty who teach content or methods
courses for training teacher candidates;
``(2) collaborate between the department, school,
or college of education faculty and the department,
school, or college of arts and science faculty and
academic content specialists at the local educational
agency to educate preservice teachers who can integrate
technology and pedagogical skills in content areas;
``(3) collaborate between the department, school,
or college of education faculty and the department,
school, or college of arts and sciences faculty who
teach courses to preservice teachers to--
``(A) develop and implement a plan for
preservice teachers and continuing educators
that demonstrates effective instructional
strategies and application of such strategies
in the use of digital tools to transform the
teaching and learning process; and
``(B) better reach underrepresented
preservice teacher populations with programs
that connect such preservice teacher
populations with applications of technology;
``(4) collaborate among faculty and students to
create and disseminate case studies of technology
applications in classroom settings with a goal of
improving student academic achievement in high-need
schools;
``(5) provide additional technology resources for
preservice teachers to plan and implement technology
applications in classroom settings that provide
evidence of student learning; and
``(6) bring together expertise from departments,
schools, or colleges of education, arts and science
faculty, and academic content specialists at the local
educational agency to share and disseminate technology
applications in the classroom through teacher
preparation and into early career practice.
``SEC. 233. APPLICATION REQUIREMENTS.
``To be eligible to receive a grant or enter into a
contract or cooperative agreement under this subpart, an
eligible consortium shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require. Such application
shall include the following:
``(1) A description of the project to be carried
out with the grant, including how the project will--
``(A) develop a long-term partnership
focused on effective teaching with modern
digital tools and content that substantially
connects preservice preparation of teacher
candidates with high-need schools; or
``(B) transform the way departments,
schools, and colleges of education teach
classroom technology integration, including the
principles of universal design, to teacher
candidates.
``(2) A demonstration of--
``(A) the commitment, including the
financial commitment, of each of the members of
the consortium for the proposed project; and
``(B) the support of the leadership of each
organization that is a member of the consortium
for the proposed project.
``(3) A description of how each member of the
consortium will participate in the project.
``(4) A description of how the State educational
agency or local educational agency will incorporate the
project into the agency's technology plan, if such a
plan already exists.
``(5) A description of how the project will be
continued after Federal funds are no longer available
under this subpart for the project.
``(6) A description of how the project will
incorporate--
``(A) State teacher technology standards;
and
``(B) State student technology standards.
``(7) A plan for the evaluation of the project,
which shall include benchmarks to monitor progress
toward specific project objectives.
``SEC. 234. EVALUATION.
``Not less than ten percent of the funds awarded to an
eligible consortium to carry out a project under this subpart
shall be used to evaluate the effectiveness of such project.
``Subpart 2--Honorable Augustus F. Hawkins Centers of Excellence
``SEC. 241. DEFINITIONS.
``In this subpart:
``(1) Eligible institution.--The term `eligible
institution' means--
``(A) an institution of higher education
that has a teacher preparation program that is
a qualified teacher preparation program and
that is--
``(i) a part B institution (as
defined in section 322);
``(ii) a Hispanic-serving
institution (as defined in section
502);
``(iii) a Tribal College or
University (as defined in section 316);
``(iv) an Alaska Native-serving
institution (as defined in section
317(b));
``(v) a Native Hawaiian-serving
institution (as defined in section
317(b));
``(vi) a Predominantly Black
Institution (as defined in section
318);
``(vii) an Asian American and
Native American Pacific Islander-
serving institution (as defined in
section 320(b)); or
``(viii) a Native American-serving,
nontribal institution (as defined in
section 319);
``(B) a consortium of institutions
described in subparagraph (A); or
``(C) an institution described in
subparagraph (A), or a consortium described in
subparagraph (B), in partnership with any other
institution of higher education, but only if
the center of excellence established under
section 242 is located at an institution
described in subparagraph (A).
``(2) Scientifically based reading research.--The
term `scientifically based reading research' has the
meaning given such term in section 1208 of the
Elementary and Secondary Education Act of 1965.
``SEC. 242. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.
``(a) Program Authorized.--From the amounts appropriated to
carry out this part, the Secretary is authorized to award
competitive grants to eligible institutions to establish
centers of excellence.
``(b) Use of Funds.--Grants provided by the Secretary under
this subpart shall be used to ensure that current and future
teachers are highly qualified by carrying out one or more of
the following activities:
``(1) Implementing reforms within teacher
preparation programs to ensure that such programs are
preparing teachers who are highly qualified, are able
to understand scientifically valid research, and are
able to use advanced technology effectively in the
classroom, including use of instructional techniques to
improve student academic achievement, by--
``(A) retraining or recruiting faculty; and
``(B) designing (or redesigning) teacher
preparation programs that--
``(i) prepare teachers to serve in
low-performing schools and close
student achievement gaps, and that are
based on rigorous academic content,
scientifically valid research
(including scientifically based reading
research and mathematics research, as
it becomes available), and challenging
State academic content standards and
student academic achievement standards;
and
``(ii) promote strong teaching
skills.
``(2) Providing sustained and high-quality
preservice clinical experience, including the mentoring
of prospective teachers by exemplary teachers,
substantially increasing interaction between faculty at
institutions of higher education and new and
experienced teachers, principals, and other
administrators at elementary schools or secondary
schools, and providing support, including preparation
time, for such interaction.
``(3) Developing and implementing initiatives to
promote retention of highly qualified teachers and
principals, including minority teachers and principals,
including programs that provide--
``(A) teacher or principal mentoring from
exemplary teachers or principals, respectively;
or
``(B) induction and support for teachers
and principals during their first three years
of employment as teachers or principals,
respectively.
``(4) Awarding scholarships based on financial need
to help students pay the costs of tuition, room, board,
and other expenses of completing a teacher preparation
program, not to exceed the cost of attendance.
``(5) Disseminating information on effective
practices for teacher preparation and successful
teacher certification and licensure assessment
preparation strategies.
``(6) Activities authorized under section 202.
``(c) Application.--Any eligible institution desiring a
grant under this subpart shall submit an application to the
Secretary at such a time, in such a manner, and accompanied by
such information as the Secretary may require.
``(d) Minimum Grant Amount.--The minimum amount of each
grant under this subpart shall be $500,000.
``(e) Limitation on Administrative Expenses.--An eligible
institution that receives a grant under this subpart may use
not more than two percent of the funds provided to administer
the grant.
``(f) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out this subpart.
``Subpart 3--Preparing General Education Teachers to More Effectively
Educate Students With Disabilities
``SEC. 251. TEACH TO REACH GRANTS.
``(a) Authorization of Program.--
``(1) In general.--The Secretary is authorized to
award grants, on a competitive basis, to eligible
partnerships to improve the preparation of general
education teacher candidates to ensure that such
teacher candidates possess the knowledge and skills
necessary to effectively instruct students with
disabilities in general education classrooms.
``(2) Duration of grants.--A grant under this
section shall be awarded for a period of not more than
five years.
``(3) Non-federal share.--An eligible partnership
that receives a grant under this section shall provide
not less than 25 percent of the cost of the activities
carried out with such grant from non-Federal sources,
which may be provided in cash or in kind.
``(b) Definition of Eligible Partnership.--In this section,
the term `eligible partnership' means a partnership that--
``(1) shall include--
``(A) one or more departments or programs
at an institution of higher education--
``(i) that prepare elementary or
secondary general education teachers;
``(ii) that have a program of study
that leads to an undergraduate degree,
a master's degree, or completion of a
postbaccalaureate program required for
teacher certification; and
``(iii) the graduates of which are
highly qualified;
``(B) a department or program of special
education at an institution of higher
education;
``(C) a department or program at an
institution of higher education that provides
degrees in core academic subjects; and
``(D) a high-need local educational agency;
and
``(2) may include a department or program of
mathematics, earth or physical science, foreign
language, or another department at the institution that
has a role in preparing teachers.
``(c) Activities.--An eligible partnership that receives a
grant under this section--
``(1) shall use the grant funds to--
``(A) develop or strengthen an
undergraduate, postbaccalaureate, or master's
teacher preparation program by integrating
special education strategies into the general
education curriculum and academic content;
``(B) provide teacher candidates
participating in the program under subparagraph
(A) with skills related to--
``(i) response to intervention,
positive behavioral interventions and
supports, differentiated instruction,
and data driven instruction;
``(ii) universal design for
learning;
``(iii) determining and utilizing
accommodations for instruction and
assessments;
``(iv) collaborating with special
educators, related services providers,
and parents, including participation in
individualized education program
development and implementation; and
``(v) appropriately utilizing
technology and assistive technology for
students with disabilities; and
``(C) provide extensive clinical experience
for participants described in subparagraph (B)
with mentoring and induction support throughout
the program that continues during the first two
years of full-time teaching; and
``(2) may use grant funds to develop and administer
alternate assessments of students with disabilities.
``(d) Application.--An eligible partnership seeking a grant
under this section shall submit an application to the Secretary
at such time, in such manner, and containing such information
as the Secretary may require. Such application shall include--
``(1) a self-assessment by the eligible partnership
of the existing teacher preparation program at the
institution of higher education and needs related to
preparing general education teacher candidates to
instruct students with disabilities; and
``(2) an assessment of the existing personnel needs
for general education teachers who instruct students
with disabilities, performed by the local educational
agency in which most graduates of the teacher
preparation program are likely to teach after
completion of the program under subsection (c)(1).
``(e) Peer Review.--The Secretary shall convene a peer
review committee to review applications for grants under this
section and to make recommendations to the Secretary regarding
the selection of grantees. Members of the peer review committee
shall be recognized experts in the fields of special education,
teacher preparation, and general education and shall not be in
a position to benefit financially from any grants awarded under
this section.
``(f) Evaluations.--
``(1) By the partnership.--
``(A) In general.--An eligible partnership
receiving a grant under this section shall
conduct an evaluation at the end of the grant
period to determine--
``(i) the effectiveness of the
general education teachers who
completed a program under subsection
(c)(1) with respect to instruction of
students with disabilities in general
education classrooms; and
``(ii) the systemic impact of the
activities carried out by such grant on
how each institution of higher
education that is a member of the
partnership prepares teachers for
instruction in elementary schools and
secondary schools.
``(B) Report to the secretary.--Each
eligible partnership performing an evaluation
under subparagraph (A) shall report the
findings of such evaluation to the Secretary.
``(2) Report by the secretary.--Not later than 180
days after the last day of the grant period under this
section, the Secretary shall make available to Congress
and the public the findings of the evaluations
submitted under paragraph (1), and information on best
practices related to effective instruction of students
with disabilities in general education classrooms.
``Subpart 4--Adjunct Teacher Corps
``SEC. 255. ADJUNCT TEACHER CORPS.
``(a) Purpose.--The purpose of this section is to create
opportunities for professionals and other individuals with
subject matter expertise in mathematics, science, or critical
foreign languages to provide such subject matter expertise to
secondary school students on an adjunct basis.
``(b) Program Authorized.--The Secretary is authorized to
award grants on a competitive basis to eligible entities to
identify, recruit, and train qualified individuals with subject
matter expertise in mathematics, science, or critical foreign
languages to serve as adjunct content specialists.
``(c) Duration of Grants.--The Secretary may award grants
under this section for a period of not more than five years.
``(d) Eligible Entity.--In this section, the term `eligible
entity' means--
``(1) a local educational agency; or
``(2) a partnership consisting of a local
educational agency, serving as a fiscal agent, and a
public or private educational organization or business.
``(e) Uses of Funds.--An eligible entity that receives a
grant under this section is authorized to use such grant to
carry out one or both of the following activities:
``(1) To develop the capacity of the eligible
entity to identify, recruit, and train individuals with
subject matter expertise in mathematics, science, or
critical foreign languages who are not employed in the
elementary and secondary education system (including
individuals in business and government, and individuals
who would participate through distance-learning
arrangements) to become adjunct content specialists.
``(2) To provide preservice training and on-going
professional development to adjunct content
specialists.
``(f) Applications.--
``(1) Application required.--An eligible entity
that desires a grant under this section shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
``(2) Contents.--An application submitted under
paragraph (1) shall include--
``(A) a description of--
``(i) the need for, and expected
benefits of using, adjunct content
specialists in the schools served by
the local educational agency, which may
include information on the difficulty
the local educational agency faces in
recruiting qualified faculty in
mathematics, science, and critical
foreign language courses;
``(ii) measurable objectives for
the activities supported by the grant,
including the number of adjunct content
specialists the eligible entity intends
to place in schools and classrooms, and
the gains in academic achievement
expected as a result of the addition of
such specialists;
``(iii) how the eligible entity
will establish criteria for and recruit
the most qualified individuals and
public or private organizations and
businesses to participate in the
activities supported by the grant;
``(iv) how the eligible entity will
provide preservice training and on-
going professional development to
adjunct content specialists to ensure
that such specialists have the capacity
to serve effectively;
``(v) how the eligible entity will
use funds received under this section,
including how the eligible entity will
evaluate the success of the activities
supported by the grant; and
``(vi) how the eligible entity will
support and continue the activities
supported by the grant after the grant
has expired, including how such entity
will seek support from other sources,
such as State and local government and
the private sector; and
``(B) an assurance that the use of adjunct
content specialists will not result in the
displacement or transfer of currently employed
teachers nor a reduction in the number of
overall teachers in the district.
``(g) Priorities.--In awarding grants under this section,
the Secretary shall give priority to eligible entities that
demonstrate in the application for such a grant a plan to--
``(1) serve the schools served by the local
educational agency that have a large number or
percentage of students performing below grade level in
mathematics, science, or critical foreign language
courses;
``(2) serve local educational agencies that have a
large number or percentage of students from low-income
families; and
``(3) recruit and train individuals to serve as
adjunct content specialists in schools that have an
insufficient number of teachers in mathematics,
science, or critical foreign languages.
``(h) Matching Requirement.--Each eligible entity that
receives a grant under this section shall provide, from non-
Federal sources, an amount equal to 100 percent of the amount
of such grant (in cash or in kind) to carry out the activities
supported by such grant.
``(i) Performance Report.--Each eligible entity receiving a
grant under this section shall prepare and submit to the
Secretary a final report on the results of the activities
supported by such grant, which shall contain such information
as the Secretary may require, including any improvements in
student academic achievement as a result of the use of adjunct
content specialists.
``(j) Evaluation.--The Secretary shall evaluate the
activities supported by grants under this section, including
the impact of such activities on student academic achievement,
and shall report the results of such evaluation to the
authorizing committees.
``(k) Definition.--In this section, the term `adjunct
content specialist' means an individual who--
``(1) meets the requirements of section
9101(23)(B)(ii) of the Elementary and Secondary
Education Act of 1965;
``(2) has demonstrated expertise in mathematics,
science, or a critical foreign language, as determined
by the local educational agency; and
``(3) is not the primary provider of instructional
services to a student, unless the adjunct content
specialist is under the direct supervision of a teacher
who meets the requirements of section 9101(23) of such
Act.
``Subpart 5--Graduate Fellowships to Prepare Faculty in High-Need Areas
at Colleges of Education
``SEC. 258. GRADUATE FELLOWSHIPS TO PREPARE FACULTY IN HIGH-NEED AREAS
AT COLLEGES OF EDUCATION.
``(a) Grants by Secretary.--The Secretary shall make grants
to eligible institutions to enable such institutions to make
graduate fellowship awards to qualified individuals in
accordance with the provisions of this section.
``(b) Eligible Institutions.--In this section, the term
`eligible institution' means an institution of higher
education, or a consortium of such institutions, that offers a
program of postbaccalaureate study leading to a doctoral
degree.
``(c) Applications.--An eligible institution that desires a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
``(d) Types of Fellowships Supported.--
``(1) In general.--An eligible institution that
receives a grant under this section shall use the grant
funds to provide graduate fellowships to individuals
who are preparing for the professorate in order to
prepare individuals to become highly qualified
elementary school and secondary school mathematics and
science teachers, special education teachers, and
teachers who provide instruction for limited English
proficient students.
``(2) Types of study.--A graduate fellowship
provided under this section shall support an individual
in pursuing postbaccalaureate study, which leads to a
doctoral degree and may include a master's degree as
part of such study, related to teacher preparation and
pedagogy in one of the following areas:
``(A) Science, technology, engineering, or
mathematics, if the individual has completed a
master's degree in mathematics or science and
is pursuing a doctoral degree in mathematics,
science, or education.
``(B) Special education.
``(C) The instruction of limited English
proficient students, including
postbaccalaureate study in language instruction
educational programs.
``(e) Fellowship Terms and Conditions.--
``(1) Selection of fellows.--The Secretary shall
ensure that an eligible institution that receives a
grant under this section--
``(A) shall provide graduate fellowship
awards to individuals who plan to pursue a
career in instruction at an institution of
higher education that has a teacher preparation
program; and
``(B) may not provide a graduate fellowship
to an otherwise eligible individual--
``(i) during periods in which such
individual is enrolled at an
institution of higher education unless
such individual is maintaining
satisfactory academic progress in, and
devoting full-time study or research
to, the pursuit of the degree for which
the fellowship support was provided; or
``(ii) if the individual is engaged
in gainful employment, other than part-
time employment related to teaching,
research, or a similar activity
determined by the institution to be
consistent with and supportive of the
individuals's progress toward the
degree for which the fellowship support
was provided.
``(2) Amount of fellowship awards.--
``(A) In general.--An eligible institution
that receives a grant under this section shall
award stipends to individuals who are provided
graduate fellowships under this section.
``(B) Awards based on need.--A stipend
provided under this section shall be in an
amount equal to the level of support provided
by the National Science Foundation graduate
fellowships, except that such stipend shall be
adjusted as necessary so as not to exceed the
fellowship recipient's demonstrated need, as
determined by the institution of higher
education where the fellowship recipient is
enrolled.
``(3) Service requirement.--
``(A) Teaching required.--Each individual
who receives a graduate fellowship under this
section and earns a doctoral degree shall teach
for one year at an institution of higher
education that has a teacher preparation
program for each year of fellowship support
received under this section.
``(B) Institutional obligation.--Each
eligible institution that receives a grant
under this section shall provide an assurance
to the Secretary that the institution has
inquired of and determined the decision of each
individual who has received a graduate
fellowship to, within three years of receiving
a doctoral degree, begin employment at an
institution of higher education that has a
teacher preparation program, as required by
this section.
``(C) Agreement required.--Prior to
receiving an initial graduate fellowship award,
and upon the annual renewal of the graduate
fellowship award, an individual selected to
receive a graduate fellowship under this
section shall sign an agreement with the
Secretary agreeing to pursue a career in
instruction at an institution of higher
education that has a teacher preparation
program in accordance with subparagraph (A).
``(D) Failure to comply.--If an individual
who receives a graduate fellowship award under
this section fails to comply with the agreement
signed pursuant to subparagraph (C), the sum of
the amounts of any graduate fellowship award
received by such recipient shall, upon a
determination of such a failure, be treated as
a Federal Direct Unsubsidized Stafford Loan
under part D of title IV, and shall be subject
to repayment, together with interest thereon
accruing from the date of the fellowship award,
in accordance with terms and conditions
specified by the Secretary in regulations under
this subpart.
``(E) Modified service requirement.--The
Secretary may waive or modify the service
requirement of this paragraph in accordance
with regulations promulgated by the Secretary
with respect to the criteria to determine the
circumstances under which compliance with such
service requirement is inequitable or
represents a substantial hardship. The
Secretary may waive the service requirement if
compliance by the fellowship recipient is
determined to be inequitable or represent a
substantial hardship--
``(i) because the individual is
permanently and totally disabled at the
time of the waiver request; or
``(ii) based on documentation
presented to the Secretary of
substantial economic or personal
hardship.
``(f) Institutional Support for Fellows.--An eligible
institution that receives a grant under this section may
reserve not more than ten percent of the grant amount for
academic and career transition support for graduate fellowship
recipients and for meeting the institutional obligation
described in subsection (e)(3)(B).
``(g) Restriction on Use of Funds.--An eligible institution
that receives a grant under this section may not use grant
funds for general operational overhead of the institution.
``PART C--GENERAL PROVISIONS
``SEC. 261. LIMITATIONS.
``(a) Federal Control Prohibited.--Nothing in this title
shall be construed to permit, allow, encourage, or authorize
any Federal control over any aspect of any private, religious,
or home school, whether or not a home school is treated as a
private school or home school under State law. This section
shall not be construed to prohibit private, religious, or home
schools from participation in programs or services under this
title.
``(b) No Change in State Control Encouraged or Required.--
Nothing in this title shall be construed to encourage or
require any change in a State's treatment of any private,
religious, or home school, whether or not a home school is
treated as a private school or home school under State law.
``(c) National System of Teacher Certification or Licensure
Prohibited.--Nothing in this title shall be construed to
permit, allow, encourage, or authorize the Secretary to
establish or support any national system of teacher
certification or licensure.
``(d) Rule of Construction.--Nothing in this title shall be
construed to alter or otherwise affect the rights, remedies,
and procedures afforded to the employees of local educational
agencies under Federal, State, or local laws (including
applicable regulations or court orders) or under the terms of
collective bargaining agreements, memoranda of understanding,
or other agreements between such employees and their
employers.''.
TITLE III--INSTITUTIONAL AID
SEC. 301. PROGRAM PURPOSE.
Section 311 (20 U.S.C. 1057) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``351''
and inserting ``391''; and
(B) in paragraph (3)(F), by inserting ``,
including services that will assist in the
education of special populations'' before the
period; and
(2) in subsection (c)--
(A) in paragraph (6), by inserting ``,
including innovative, customized, instruction
courses designed to help retain students and
move the students rapidly into core courses and
through program completion, which may include
remedial education and English language
instruction'' before the period;
(B) by redesignating paragraphs (7) through
(12) as paragraphs (8) through (13),
respectively;
(C) by inserting after paragraph (6) the
following:
``(7) Education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' families.'';
(D) in paragraph (12) (as redesignated by
subparagraph (B)), by striking ``distance
learning academic instruction capabilities''
and inserting ``distance education
technologies''; and
(E) in the matter preceding subparagraph
(A) of paragraph (13) (as redesignated by
subparagraph (B)), by striking ``subsection
(c)'' and inserting ``subsection (b) and
section 391''.
SEC. 302. DEFINITIONS; ELIGIBILITY.
Section 312 (20 U.S.C. 1058) is amended--
(1) in subsection (b)(1)(A), by striking
``subsection (c) of this section'' and inserting
``subsection (d)'';
(2) in subsection (d)(2), by striking
``subdivision'' and inserting ``paragraph'';
(3) by redesignating subsection (g) as subsection
(h); and
(4) by inserting after subsection (f) the
following:
``(g) Low-Income Individual.--For the purpose of this part,
the term `low-income individual' means an individual from a
family whose taxable income for the preceding year did not
exceed 150 percent of an amount equal to the poverty level
determined by using criteria of poverty established by the
Bureau of the Census.''.
SEC. 303. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
Section 316 (20 U.S.C. 1059c) is amended--
(1) by striking subsection (b)(3) and inserting the
following:
``(3) Tribal college or university.--The term
`Tribal College or University' means an institution
that--
``(A) qualifies for funding under the
Tribally Controlled Colleges and Universities
Assistance Act of 1978 (25 U.S.C. 1801 et seq.)
or the Navajo Community College Assistance Act
of 1978 (25 U.S.C. 640a note); or
``(B) is cited in section 532 of the Equity
in Educational Land-Grant Status Act of 1994 (7
U.S.C. 301 note).'';
(2) in subsection (c)(2)--
(A) by striking subparagraph (B) and
inserting the following:
``(B) construction, maintenance,
renovation, and improvement in classrooms,
libraries, laboratories, and other
instructional facilities, including purchase or
rental of telecommunications technology
equipment or services, and the acquisition of
real property adjacent to the campus of the
institution on which to construct such
facilities;'';
(B) in subparagraph (C), by inserting
before the semicolon at the end the following:
``or in tribal governance or tribal public
policy'';
(C) in subparagraph (D), by inserting
before the semicolon the following: ``and
instruction in tribal governance or tribal
public policy'';
(D) by redesignating subparagraphs (G),
(H), (I), (J), (K), and (L) as subparagraphs
(H), (I), (J), (K), (L), and (N), respectively;
(E) by inserting after subparagraph (F) the
following:
``(G) education or counseling services
designed to improve the financial literacy and
economic literacy of students or the students'
families;'';
(F) in subparagraph (L) (as redesignated by
subparagraph (D)), by striking ``and'' after
the semicolon;
(G) by inserting after subparagraph (L) (as
redesignated by subparagraph (D) and amended by
subparagraph (F)) the following:
``(M) developing or improving facilities
for Internet use or other distance education
technologies; and''; and
(H) in subparagraph (N) (as redesignated by
subparagraph (D)), by striking ``subparagraphs
(A) through (K)'' and inserting ``subparagraphs
(A) through (M)''; and
(3) by striking subsection (d) and inserting the
following:
``(d) Application, Plan, and Allocation.--
``(1) Institutional eligibility.--To be eligible to
receive assistance under this section, a Tribal College
or University shall be an eligible institution under
section 312(b).
``(2) Application.--
``(A) In general.--A Tribal College or
University desiring to receive assistance under
this section shall submit an application to the
Secretary at such time, in such manner, and
containing such information as the Secretary
may reasonably require.
``(B) Streamlined process.--The Secretary
shall establish application requirements in
such a manner as to simplify and streamline the
process for applying for grants under this
section.
``(3) Awards and allocations to institutions.--
``(A) Construction grants.--
``(i) In general.--Of the amount
appropriated to carry out this section
for any fiscal year, the Secretary may
reserve 30 percent for the purpose of
awarding one-year grants of not less
than $1,000,000 to address
construction, maintenance, and
renovation needs at eligible
institutions.
``(ii) Preference.--In providing
grants under clause (i) for any fiscal
year, the Secretary shall give
preference to eligible institutions
that have not received an award under
this section for a previous fiscal
year.
``(B) Allotment of remaining funds.--
``(i) In general.--Except as
provided in clause (ii), the Secretary
shall distribute the remaining funds
appropriated for any fiscal year to
each eligible institution as follows:
``(I) 60 percent of the
remaining appropriated funds
shall be distributed among the
eligible Tribal Colleges and
Universities on a pro rata
basis, based on the respective
Indian student counts (as
defined in section 2(a) of the
Tribally Controlled Colleges
and Universities Assistance Act
of 1978 (25 U.S.C. 1801(a)) of
the Tribal Colleges and
Universities.
``(II) The remaining 40
percent shall be distributed in
equal shares to the eligible
Tribal Colleges and
Universities.
``(ii) Minimum grant.--The amount
distributed to a Tribal College or
University under clause (i) shall not
be less than $500,000.
``(4) Special rules.--
``(A) Concurrent funding.--No Tribal
College or University that receives funds under
this section shall concurrently receive funds
under any other provision of this part, part B,
or part A of title V.
``(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.''.
SEC. 304. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.
Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--
(1) in subparagraph (G), by striking ``and'' after
the semicolon;
(2) in subparagraph (H), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(I) education or counseling services
designed to improve the financial literacy and
economic literacy of students or the students'
families.''.
SEC. 305. PREDOMINANTLY BLACK INSTITUTIONS.
(a) In General.--Part A of title III (20 U.S.C. 1057 et
seq.) is amended by adding at the end the following:
``SEC. 318. PREDOMINANTLY BLACK INSTITUTIONS.
``(a) Purpose.--It is the purpose of this section to assist
Predominantly Black Institutions in expanding educational
opportunity through a program of Federal assistance.
``(b) Definitions.--In this section:
``(1) Eligible institution.--The term `eligible
institution' means an institution of higher education
that--
``(A) has an enrollment of needy
undergraduate students;
``(B) has an average educational and
general expenditure that is low, per full-time
equivalent undergraduate student, in comparison
with the average educational and general
expenditure per full-time equivalent
undergraduate student of institutions that
offer similar instruction, except that the
Secretary may apply the waiver requirements
described in section 392(b) to this
subparagraph in the same manner as the
Secretary applies the waiver requirements to
section 312(b)(1)(B);
``(C) has an enrollment of undergraduate
students that is not less than 40 percent Black
American students;
``(D) is legally authorized to provide, and
provides, within the State an educational
program for which the institution of higher
education awards a baccalaureate degree or, in
the case of a junior or community college, an
associate's degree;
``(E) is accredited by a nationally
recognized accrediting agency or association
determined by the Secretary to be a reliable
authority as to the quality of training offered
or is, according to such an agency or
association, making reasonable progress toward
accreditation; and
``(F) is not receiving assistance under
part B or part A of title V.
``(2) Enrollment of needy students.--The term
`enrollment of needy students' means the enrollment at
an eligible institution with respect to which not less
than 50 percent of the undergraduate students enrolled
in an academic program leading to a degree--
``(A) in the second fiscal year preceding
the fiscal year for which the determination is
made, were Federal Pell Grant recipients for
such year;
``(B) come from families that receive
benefits under a means-tested Federal benefit
program;
``(C) attended a public or nonprofit
private secondary school that--
``(i) is in the school district of
a local educational agency that was
eligible for assistance under part A of
title I of the Elementary and Secondary
Education Act of 1965 for any year
during which the student attended such
secondary school; and
``(ii) for the purpose of this
paragraph and for such year of
attendance, was determined by the
Secretary (pursuant to regulations and
after consultation with the State
educational agency of the State in
which the school is located) to be a
school in which the enrollment of
children meeting a measure of poverty
under section 1113(a)(5) of such Act
exceeds 30 percent of the total
enrollment of such school; or
``(D) are first-generation college students
and a majority of such first-generation college
students are low-income individuals.
``(3) First-generation college student.--The term
`first-generation college student' has the meaning
given the term in section 402A(h).
``(4) Low-income individual.--The term `low-income
individual' has the meaning given such term in section
402A(h).
``(5) Means-tested federal benefit program.--The
term `means-tested Federal benefit program' means a
program of the Federal Government, other than a program
under title IV, in which eligibility for the program's
benefits, or the amount of such benefits, are
determined on the basis of income or resources of the
individual or family seeking the benefit.
``(6) Predominantly black institution.--The term
`Predominantly Black Institution' means an institution
of higher education, as defined in section 101(a)--
``(A) that is an eligible institution with
not less than 1,000 undergraduate students;
``(B) at which not less than 50 percent of
the undergraduate students enrolled at the
eligible institution are low-income individuals
or first-generation college students; and
``(C) at which not less than 50 percent of
the undergraduate students are enrolled in an
educational program leading to a bachelor's or
associate's degree that the eligible
institution is licensed to award by the State
in which the eligible institution is located.
``(7) State.--The term `State' means each of the 50
States and the District of Columbia.
``(c) Grant Authority.--
``(1) In general.--The Secretary is authorized to
award grants, from allotments under subsection (e), to
Predominantly Black Institutions to enable the
Predominantly Black Institutions to carry out the
authorized activities described in subsection (d).
``(2) Priority.--In awarding grants under this
section the Secretary shall give priority to
Predominantly Black Institutions with large numbers or
percentages of students described in subsections
(b)(1)(A) or (b)(1)(C). The level of priority given to
Predominantly Black Institutions with large numbers or
percentages of students described in subsection
(b)(1)(A) shall be twice the level of priority given to
Predominantly Black Institutions with large numbers or
percentages of students described in subsection
(b)(1)(C).
``(d) Authorized Activities.--
``(1) Required activities.--Grant funds provided
under this section shall be used--
``(A) to assist the Predominantly Black
Institution to plan, develop, undertake, and
implement programs to enhance the institution's
capacity to serve more low- and middle-income
Black American students;
``(B) to expand higher education
opportunities for students eligible to
participate in programs under title IV by
encouraging college preparation and student
persistence in secondary school and
postsecondary education; and
``(C) to strengthen the financial ability
of the Predominantly Black Institution to serve
the academic needs of the students described in
subparagraphs (A) and (B).
``(2) Additional activities.--Grant funds provided
under this section shall be used for one or more of the
following activities:
``(A) The activities described in
paragraphs (1) through (12) of section 311(c).
``(B) Academic instruction in disciplines
in which Black Americans are underrepresented.
``(C) Establishing or enhancing a program
of teacher education designed to qualify
students to teach in a public elementary school
or secondary school in the State that shall
include, as part of such program, preparation
for teacher certification or licensure.
``(D) Establishing community outreach
programs that will encourage elementary school
and secondary school students to develop the
academic skills and the interest to pursue
postsecondary education.
``(E) Other activities proposed in the
application submitted pursuant to subsection
(f) that--
``(i) contribute to carrying out
the purpose of this section; and
``(ii) are approved by the
Secretary as part of the review and
approval of an application submitted
under subsection (f).
``(3) Endowment fund.--
``(A) In general.--A Predominantly Black
Institution may use not more than 20 percent of
the grant funds provided under this section to
establish or increase an endowment fund at the
institution.
``(B) Matching requirement.--In order to be
eligible to use grant funds in accordance with
subparagraph (A), a Predominantly Black
Institution shall provide matching funds from
non-Federal sources, in an amount equal to or
greater than the Federal funds used in
accordance with subparagraph (A), for the
establishment or increase of the endowment
fund.
``(C) Comparability.--The provisions of
part C, regarding the establishment or increase
of an endowment fund, that the Secretary
determines are not inconsistent with this
subsection, shall apply to funds used under
subparagraph (A).
``(4) Limitation.--Not more than 50 percent of the
grant funds provided to a Predominantly Black
Institution under this section may be available for the
purpose of constructing or maintaining a classroom,
library, laboratory, or other instructional facility.
``(e) Allotments to Predominantly Black Institutions.--
``(1) Federal pell grant basis.--From the amounts
appropriated to carry out this section for any fiscal
year, the Secretary shall allot to each Predominantly
Black Institution having an application approved under
subsection (f) a sum that bears the same ratio to one-
half of that amount as the number of Federal Pell Grant
recipients in attendance at such institution at the end
of the academic year preceding the beginning of that
fiscal year, bears to the total number of Federal Pell
Grant recipients at all such institutions at the end of
such academic year.
``(2) Graduates basis.--From the amounts
appropriated to carry out this section for any fiscal
year, the Secretary shall allot to each Predominantly
Black Institution having an application approved under
subsection (f) a sum that bears the same ratio to one-
fourth of that amount as the number of graduates for
such academic year at such institution, bears to the
total number of graduates for such academic year at all
such institutions.
``(3) Graduates seeking a higher degree basis.--
From the amounts appropriated to carry out this section
for any fiscal year, the Secretary shall allot to each
Predominantly Black Institution having an application
approved under subsection (f) a sum that bears the same
ratio to one-fourth of that amount as the percentage of
graduates from such institution who are admitted to and
in attendance at, not later than two years after
graduation with an associate's degree or a
baccalaureate degree, a baccalaureate degree-granting
institution or a graduate or professional school in a
degree program in disciplines in which Black American
students are underrepresented, bears to the percentage
of such graduates for all such institutions.
``(4) Minimum allotment.--
``(A) In general.--Notwithstanding
paragraphs (1), (2), and (3), the amount
allotted to each Predominantly Black
Institution under this section may not be less
than $250,000.
``(B) Insufficient amount.--If the amounts
appropriated to carry out this section for a
fiscal year are not sufficient to pay the
minimum allotment provided under subparagraph
(A) for the fiscal year, then the amount of
such minimum allotment shall be ratably
reduced. If additional sums become available
for such fiscal year, such reduced allotment
shall be increased on the same basis as the
allotment was reduced until the amount allotted
equals the minimum allotment required under
subparagraph (A).
``(5) Reallotment.--The amount of a Predominantly
Black Institution's allotment under paragraph (1), (2),
(3), or (4) for any fiscal year that the Secretary
determines will not be needed for such institution for
the period for which such allotment is available, shall
be available for reallotment to other Predominantly
Black Institutions in proportion to the original
allotments to such other institutions under this
section for such fiscal year. The Secretary shall
reallot such amounts from time to time, on such date
and during such period as the Secretary determines
appropriate.
``(f) Applications.--Each Predominantly Black Institution
desiring a grant under this section shall submit an application
to the Secretary at such time, in such manner, and containing
or accompanied by such information as the Secretary may
reasonably require.
``(g) Application Review Process.--Section 393 shall not
apply to applications under this section.
``(h) Duration and Carryover.--Any grant funds paid to a
Predominantly Black Institution under this section that are not
expended or used for the purposes for which the funds were paid
within ten years following the date on which the grant was
awarded, shall be repaid to the Treasury.
``(i) Special Rule on Eligibility.--No Predominantly Black
Institution that receives funds under this section shall
concurrently receive funds under any other provision of this
part, part B, or part A of title V.''.
(b) Conforming Amendment.--Section 312(d) (20 U.S.C.
1058(d)) is amended by striking ``For the purpose'' and
inserting ``Except as provided in section 318(b), for the
purpose''.
SEC. 306. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.
Part A of title III (20 U.S.C. 1057 et seq.) is amended by
adding after section 318 (as added by section 305 of this Act)
the following:
``SEC. 319. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.
``(a) Program Authorized.--The Secretary shall provide
grants and related assistance to Native American-serving,
nontribal institutions to enable such institutions to improve
and expand their capacity to serve Native Americans and low-
income individuals.
``(b) Definitions.--In this section:
``(1) Native american.--The term `Native American'
means an individual who is of a tribe, people, or
culture that is indigenous to the United States.
``(2) Native american-serving, nontribal
institution.--The term `Native American-serving,
nontribal institution' means an institution of higher
education, as defined in section 101(a), that, at the
time of application--
``(A) is an eligible institution under
section 312(b);
``(B) has an enrollment of undergraduate
students that is not less than 10 percent
Native American students; and
``(C) is not a Tribal College or University
(as defined in section 316).
``(c) Authorized Activities.--
``(1) Types of activities authorized.--Grants
awarded under this section shall be used by Native
American-serving, nontribal institutions to assist such
institutions to plan, develop, undertake, and carry out
activities to improve and expand such institutions'
capacity to serve Native Americans and low-income
individuals.
``(2) Examples of authorized activities.--Such
programs may include--
``(A) the purchase, rental, or lease of
scientific or laboratory equipment for
educational purposes, including instructional
and research purposes;
``(B) renovation and improvement in
classroom, library, laboratory, and other
instructional facilities;
``(C) support of faculty exchanges, and
faculty development and faculty fellowships to
assist faculty in attaining advanced degrees in
the faculty's field of instruction;
``(D) curriculum development and academic
instruction;
``(E) the purchase of library books,
periodicals, microfilm, and other educational
materials;
``(F) funds and administrative management,
and acquisition of equipment for use in
strengthening funds management;
``(G) the joint use of facilities such as
laboratories and libraries;
``(H) academic tutoring and counseling
programs and student support services; and
``(I) education or counseling services
designed to improve the financial and economic
literacy of students or the students' families.
``(d) Application Process.--
``(1) Institutional eligibility.--A Native
American-serving, nontribal institution desiring to
receive assistance under this section shall submit to
the Secretary such enrollment data as may be necessary
to demonstrate that the institution is a Native
American-serving, nontribal institution, along with
such other information and data as the Secretary may
reasonably require.
``(2) Applications.--
``(A) Authority to submit applications.--
Any institution that is determined by the
Secretary to be a Native American-serving,
nontribal institution may submit an application
for assistance under this section to the
Secretary.
``(B) Simplified and streamlined format.--
The Secretary shall, to the extent possible,
continue to prescribe a simplified and
streamlined format for applications under this
section that takes into account the limited
number of institutions that are eligible for
assistance under this section.
``(C) Content.--An application submitted
under subparagraph (A) shall include--
``(i) a five-year plan for
improving the assistance provided by
the Native American-serving, nontribal
institution to Native Americans and
low-income individuals; and
``(ii) such other information and
assurances as the Secretary may
reasonably require.
``(3) Special rules.--
``(A) Eligibility.--No Native American-
serving, nontribal institution that receives
funds under this section shall concurrently
receive funds under any other provision of this
part, part B, or part A of title V.
``(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.
``(C) Distribution.--In awarding grants
under this section, the Secretary shall, to the
extent possible and consistent with the
competitive process under which such grants are
awarded, ensure maximum and equitable
distribution among all eligible institutions.
``(D) Minimum grant amount.--The minimum
amount of a grant under this section shall be
$200,000.''.
SEC. 307. ASSISTANCE TO ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC
ISLANDER-SERVING INSTITUTIONS.
Part A of title III (20 U.S.C. 1057 et seq.) is amended by
adding after section 319 (as added by section 306 of this Act)
the following:
``SEC. 320. ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-SERVING
INSTITUTIONS.
``(a) Program Authorized.--The Secretary shall provide
grants and related assistance to Asian American and Native
American Pacific Islander-serving institutions to enable such
institutions to improve and expand their capacity to serve
Asian Americans and Native American Pacific Islanders and low-
income individuals.
``(b) Definitions.--In this section:
``(1) Asian american.--The term `Asian American'
has the meaning given the term `Asian' in the Office of
Management and Budget's Standards for Maintaining,
Collecting, and Presenting Federal Data on Race and
Ethnicity as published on October 30, 1997 (62 Fed.
Reg. 58789).
``(2) Asian american and native american pacific
islander-serving institution.--The term `Asian American
and Native American Pacific Islander-serving
institution' means an institution of higher education
that--
``(A) is an eligible institution under
section 312(b); and
``(B) at the time of application, has an
enrollment of undergraduate students that is
not less than 10 percent students who are Asian
American or Native American Pacific Islander.
``(3) Native american pacific islander.--The term
`Native American Pacific Islander' means any descendant
of the aboriginal people of any island in the Pacific
Ocean that is a territory or possession of the United
States.
``(c) Authorized Activities.--
``(1) Types of activities authorized.--Grants
awarded under this section shall be used by Asian
American and Native American Pacific Islander-serving
institutions to assist such institutions to plan,
develop, undertake, and carry out activities to improve
and expand such institutions' capacity to serve Asian
Americans and Native American Pacific Islanders and
low-income individuals.
``(2) Examples of authorized activities.--Such
programs may include--
``(A) purchase, rental, or lease of
scientific or laboratory equipment for
educational purposes, including instructional
and research purposes;
``(B) renovation and improvement in
classroom, library, laboratory, and other
instructional facilities;
``(C) support of faculty exchanges, and
faculty development and faculty fellowships to
assist in attaining advanced degrees in the
faculty's field of instruction;
``(D) curriculum development and academic
instruction;
``(E) purchase of library books,
periodicals, microfilm, and other educational
materials;
``(F) funds and administrative management,
and acquisition of equipment for use in
strengthening funds management;
``(G) joint use of facilities such as
laboratories and libraries;
``(H) academic tutoring and counseling
programs and student support services;
``(I) establishing community outreach
programs that will encourage elementary school
and secondary school students to develop the
academic skills and the interest to pursue
postsecondary education;
``(J) establishing or improving an
endowment fund;
``(K) academic instruction in disciplines
in which Asian Americans and Native American
Pacific Islanders are underrepresented;
``(L) conducting research and data
collection for Asian American and Native
American Pacific Islander populations and
subpopulations;
``(M) establishing partnerships with
community-based organizations serving Asian
Americans and Native American Pacific
Islanders; and
``(N) education or counseling services
designed to improve the financial and economic
literacy of students or the students' families.
``(d) Application Process.--
``(1) Institutional eligibility.--Each Asian
American and Native American Pacific Islander-serving
institution desiring to receive assistance under this
section shall submit to the Secretary such enrollment
data as may be necessary to demonstrate that the
institution is an Asian American and Native American
Pacific Islander-serving institution as defined in
subsection (b), along with such other information and
data as the Secretary may reasonably require.
``(2) Applications.--Any institution that is
determined by the Secretary to be an Asian American and
Native American Pacific Islander-serving institution
may submit an application for assistance under this
section to the Secretary. Such application shall
include--
``(A) a five-year plan for improving the
assistance provided by the Asian American and
Native American Pacific Islander-serving
institution to Asian American and Native
American Pacific Islander students and low-
income individuals; and
``(B) such other information and assurances
as the Secretary may reasonably require.
``(3) Special rules.--
``(A) Eligibility.--No Asian American and
Native American Pacific Islander-serving
institution that receives funds under this
section shall concurrently receive funds under
any other provision of this part, part B, or
title V.
``(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.
``(C) Distribution.--In awarding grants
under this section, the Secretary shall--
``(i) to the extent possible and
consistent with the competitive process
under which such grants are awarded,
ensure maximum and equitable
distribution among all eligible
institutions; and
``(ii) give priority consideration
to institutions for which not less than
10 percent of such institution's Asian
American and Native American Pacific
Islander students are low-income
individuals.''.
SEC. 308. PART B DEFINITIONS.
Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting
``, in consultation with the Commissioner for Education
Statistics'' before ``and the Commissioner''.
SEC. 309. GRANTS TO INSTITUTIONS.
Section 323(a) (20 U.S.C. 1062(a)) is amended--
(1) in the matter preceding paragraph (1), by
striking ``360(a)(2)'' and inserting ``399(a)(2)'';
(2) by redesignating paragraph (12) as paragraphs
(15); and
(3) by inserting after paragraph (11) the
following:
``(12) Acquisition of real property in connection
with the construction, renovation, or addition to or
improvement of campus facilities.
``(13) Education or financial information designed
to improve the financial literacy and economic literacy
of students or the students' families, especially with
regard to student indebtedness and student assistance
programs under title IV.
``(14) Services necessary for the implementation of
projects or activities that are described in the grant
application and that are approved, in advance, by the
Secretary, except that not more than two percent of the
grant amount may be used for this purpose.''.
SEC. 310. ALLOTMENTS.
(a) Minimum Allotment.--Subsection (d) of section 324 (20
U.S.C. 1063(d)) is amended to read as follows:
``(d) Minimum Allotment.--Notwithstanding subsections (a)
through (c), and subject to subsection (h), if the amount of an
award under this section for a part B institution, based on the
data provided by the part B institution and the formula under
subsections (a) through (c), would be--
``(1) an amount that is greater than $250,000 but
less than $500,000, the Secretary shall award the part
B institution an allotment in the amount of $500,000;
and
``(2) an amount that is equal to or less than
$250,000, the Secretary shall award the part B
institution an allotment in the amount of $250,000.''.
(b) Conditions for Allotments.--Section 324 (20 U.S.C.
1063) is further amended by adding at the end the following new
subsection:
``(h) Conditions for Allotments.--
``(1) Student requirements for allotment.--
Notwithstanding any other provision of this section, a
part B institution that would otherwise be eligible for
funds under this part shall not receive an allotment
under this part for a fiscal year, including the
minimum allotment under subsection (d), if the part B
institution, in the academic year preceding such fiscal
year--
``(A) did not have any enrolled students
who were Pell Grant recipients;
``(B) did not graduate any students; or
``(C) where appropriate, did not have any
students who, within 5 years of graduation from
the part B institution, were admitted to and in
attendance at a graduate or professional school
in a degree program in disciplines in which
Blacks are underrepresented.
``(2) Data requirements for allotments.--
Notwithstanding any other provision of this section, a
part B institution shall not receive an allotment under
this part for a fiscal year, including the minimum
allotment under subsection (d), unless the institution
provides the Secretary with the data required by the
Secretary and for purposes of the formula described in
subsections (a) through (c), including--
``(A) the number of Pell Grant recipients
enrolled in the part B institution in the
academic year preceding such fiscal year;
``(B) the number of students who earned an
associate or baccalaureate degree from the part
B institution in the academic year preceding
such fiscal year; and
``(C) where appropriate, the percentage of
students who, within 5 years of graduation from
the part B institution, were admitted to and in
attendance at a graduate or professional school
in a degree program in disciplines in which
Blacks are underrepresented in the academic
year preceding such fiscal year.''.
SEC. 311. PROFESSIONAL OR GRADUATE INSTITUTIONS.
(a) Duration of Grant.--Section 326(b) (20 U.S.C. 1063b(b))
is amended by adding at the end the following: ``Any funds
awarded for such five-year grant period that are obligated
during such five-year period may be expended during the 10-year
period beginning on the first day of such five-year period.''.
(b) Authorized Activities.--Section 326(c) (20 U.S.C.
1063b(c)) is amended--
(1) in paragraph (5), by striking ``establish or
improve'' and inserting ``establishing or improving'';
(2) in paragraph (6)--
(A) by striking ``assist'' and inserting
``assisting''; and
(B) by striking ``and'' after the
semicolon;
(3) by striking the period at the end of paragraph
(7) and inserting a semicolon; and
(4) by adding at the end the following:
``(8) acquisition of real property that is adjacent
to the campus in connection with the construction,
renovation, or addition to or improvement of campus
facilities;
``(9) education or financial information designed
to improve the financial literacy and economic literacy
of students or the students' families, especially with
regard to student indebtedness and student assistance
programs under title IV;
``(10) services necessary for the implementation of
projects or activities that are described in the grant
application and that are approved, in advance, by the
Secretary, except that not more than two percent of the
grant amount may be used for this purpose;
``(11) tutoring, counseling, and student service
programs designed to improve academic success; and
``(12) other activities proposed in the application
submitted under subsection (d) that--
``(A) contribute to carrying out the
purposes of this part; and
``(B) are approved by the Secretary as part
of the review and acceptance of such
application.''.
(c) Eligibility.--
(1) In general.--Section 326(e)(1) (20 U.S.C.
1063b(e)(1)) is amended--
(A) in the matter preceding subparagraph
(A), by inserting a colon after ``the
following'';
(B) in subparagraph (Q), by striking
``and'' at the end;
(C) in subparagraph (R), by striking the
period at the end and inserting a semicolon;
and
(D) by adding at the end the following:
``(S) Alabama State University qualified
graduate programs;
``(T) Prairie View A&M University qualified
graduate programs;
``(U) Delaware State University qualified
graduate programs;
``(V) Langston University qualified
graduate programs;
``(W) Bowie State University qualified
graduate programs; and
``(X) University of the District of
Columbia David A. Clarke School of Law.''.
(2) Conforming amendment.--Section 326(e)(3) (20
U.S.C. 1063b(e)(3)) is amended--
(A) by striking ``1998'' and inserting
``2008''; and
(B) by striking ``(Q) and (R)'' and
inserting ``(S) through (X)''.
(3) Additional eligibility changes.--Section
326(e)(2)(A) (20 U.S.C. 1063b(e)(2)(A)) is amended--
(A) by inserting ``in law or'' after
``instruction''; and
(B) by striking ``mathematics, or'' and
inserting ``mathematics, psychometrics, or''.
(4) One grant per institution.--Section 326(e)(4)
(20 U.S.C. 1063b(e)(4)) is amended by striking ``or
university system''.
(d) Funding Rule.--Section 326(f) (20 U.S.C. 1063b(f)) is
amended--
(1) in paragraph (1)--
(A) by striking ``$26,600,000'' and
inserting ``$56,900,000''; and
(B) by striking ``(P)'' and inserting
``(R)'';
(2) in paragraph (2)--
(A) by striking ``$26,600,000, but not in
excess of $28,600,000'' and inserting
``$56,900,000, but not in excess of
$62,900,000''; and
(B) by striking ``subparagraphs (Q) and
(R)'' and inserting ``subparagraphs (S) through
(X)''; and
(3) in the matter preceding subparagraph (A) of
paragraph (3)--
(A) by striking ``$28,600,000'' and
inserting ``$62,900,000''; and
(B) by striking ``(R)'' and inserting
``(X)''.
(e) Hold Harmless Rule.--Section 326(g) (20 U.S.C. 1063(g))
is amended by striking ``1998'' each place it appears and
inserting ``2008''.
(f) Interaction With Other Grant Programs.--Section 326 (as
amended by this section) (20 U.S.C. 1063) is further amended by
adding at the end the following:
``(h) Interaction With Other Grant Programs.--No
institution that is eligible for and receives an award under
section 512, 723, or 724 for a fiscal year shall be eligible to
apply for a grant, or receive grant funds, under this section
for the same fiscal year.''.
SEC. 312. UNEXPENDED FUNDS.
Section 327(b) (20 U.S.C. 1063c(b)) is amended to read as
follows:
``(b) Use of Unexpended Funds.--Any funds paid to an
institution and not expended or used for the purposes for which
the funds were paid during the five-year period following the
date of the initial grant award, may be carried over and
expended during the succeeding five-year period, if such funds
were obligated for a purpose for which the funds were paid
during the five-year period following the date of the initial
grant award.''.
SEC. 313. ENDOWMENT CHALLENGE GRANTS.
(a) Amounts.--Section 331(b) (20 U.S.C. 1065(b)) is
amended--
(1) in paragraph (2)(B)(i), by striking
``$500,000'' and inserting ``$1,000,000''; and
(2) in paragraph (5), by striking ``$50,000'' and
inserting ``$100,000''.
(b) Technical Assistance.--Section 331 (20 U.S.C. 1065) is
further amended by adding at the end the following:
``(i) Technical Assistance.--The Secretary, directly or by
grant or contract, may provide technical assistance to eligible
institutions to prepare the institutions to qualify, apply for,
and maintain a grant, under this section.''.
SEC. 314. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING.
(a) Definitions.--Section 342 (20 U.S.C. 1066a) is
amended--
(1) in paragraph (5)(G), by striking ``by a
nationally recognized accrediting agency or
association'' and inserting ``by an accrediting agency
or association recognized by the Secretary under
subpart 2 of part H of title IV''; and
(2) in paragraph (8), by inserting ``capital
project'' after ``issuing taxable''.
(b) Federal Insurance for Bonds.--Section 343(b) (20 U.S.C.
1066b(b)) is amended--
(1) in paragraph (8)(B)(ii)--
(A) by striking ``10'' and inserting ``5'';
and
(B) by inserting ``within 120 days'' after
``loan proceeds'';
(2) in paragraph (10), by striking ``and'' after
the semicolon;
(3) in paragraph (11), by striking the period at
the end and inserting ``; and''; and
(4) by adding at the end the following:
``(12) limit loan collateralization, with respect
to any loan made under this part, to 100 percent of the
loan amount, except as otherwise required by the
Secretary.''.
(c) Limitations on Federal Insurance for Bonds Issued by
the Designated Bonding Authority.--Section 344(a) (20 U.S.C.
1066c(a)) is amended--
(1) in the matter preceding paragraph (1), by
striking ``$375,000,000'' and inserting
``$1,100,000,000'';
(2) in paragraph (1), by striking ``$250,000,000''
and inserting ``$733,333,333''; and
(3) in paragraph (2), by striking ``$125,000,000''
and inserting ``$366,666,667''.
(d) Authority of the Secretary.--Section 345 (20 U.S.C.
1066d) is amended--
(1) in paragraph (1), by striking ``enactment of
the Higher Education Amendments of 1992,'' and
inserting ``the date of enactment of the Higher
Education Opportunity Act,'';
(2) by redesignating paragraphs (2) through (7) as
paragraphs (4) through (9), respectively;
(3) by inserting after paragraph (1) the following:
``(2) shall ensure that--
``(A) the selection process for the
designated bonding authority is conducted on a
competitive basis; and
``(B) the evaluation and selection process
is transparent;
``(3) shall--
``(A) review the performance of the
designated bonding authority after the third
year of the insurance agreement; and
``(B) following the review described in
subparagraph (A), implement a revised
competitive selection process, if determined
necessary by the Secretary in consultation with
the Advisory Board established pursuant to
section 347;'';
(4) in paragraph (8) (as redesignated by paragraph
(2)), by striking ``and'' after the semicolon;
(5) in paragraph (9) (as redesignated by paragraph
(2)), by striking the period at the end and inserting
``; and''; and
(6) by adding at the end the following:
``(10) not later than 120 days after the date of
enactment of the Higher Education Opportunity Act,
shall submit to the authorizing committees a report on
the progress of the Department in implementing the
recommendations made by the Government Accountability
Office in October 2006 for improving the Historically
Black College and Universities Capital Financing
Program.''.
(e) HBCU Capital Financing Advisory Board.--Section 347 (20
U.S.C. 1066f) is amended--
(1) in subsection (b)(1)--
(A) by striking out ``9 members'' and
inserting ``11 members'';
(B) in subparagraph (C), by striking
``Two'' and inserting ``Three''; and
(C) by adding at the end the following:
``(G) The president of the Thurgood
Marshall College Fund, or the designee of the
president.''; and
(2) by adding at the end the following:
``(c) Additional Recommendations From Advisory Board.--
``(1) In general.--In addition to the
responsibilities of the Advisory Board described in
subsection (a), the Advisory Board shall advise the
Secretary and the authorizing committees regarding--
``(A) the fiscal status and strategic
financial condition of not less than ten
historically Black colleges and universities
that have--
``(i) obtained construction
financing through the program under
this part and seek additional financing
or refinancing under such program; or
``(ii) applied for construction
financing through the program under
this part but have not received
financing under such program; and
``(B) the feasibility of reducing borrowing
costs associated with the program under this
part, including reducing interest rates.
``(2) Report.--Not later than six months after the
date of enactment of the Higher Education Opportunity
Act, the Advisory Board shall prepare and submit a
report to the authorizing committees regarding the
historically Black colleges and universities described
in paragraph (1)(A) that includes administrative and
legislative recommendations for addressing the issues
related to construction financing facing such
historically Black colleges and universities.''.
SEC. 315. PROGRAMS IN STEM FIELDS.
(a) YES Partnerships; Entry Into STEM Fields.--Part E of
title III (20 U.S.C. 1067 et seq.) is amended--
(1) by redesignating subpart 2 as subpart 3; and
(2) by inserting after subpart 1 the following new
subpart:
``Subpart 2--Programs in STEM Fields
``SEC. 355. YES PARTNERSHIPS GRANT PROGRAM.
``(a) Grant Program Authorized.--Subject to the
availability of appropriations to carry out this subpart, the
Secretary shall make grants to eligible partnerships (as
described in subsection (f)) to support the engagement of
underrepresented minority youth and youth who are low-income
individuals (as such term is defined in section 302) in
science, technology, engineering, and mathematics through
outreach and hands-on, experiential-based learning projects
that encourage students in kindergarten through grade 12 who
are underrepresented minority youth or low-income individuals
to pursue careers in science, technology, engineering, and
mathematics.
``(b) Minimum Grant Amount.--A grant awarded to a
partnership under this subpart shall be for an amount that is
not less than $500,000.
``(c) Duration.--A grant awarded under this subpart shall
be for a period of five years.
``(d) Non-Federal Matching Share Required.--A partnership
receiving a grant under this subpart shall provide, from non-
Federal sources, in cash or in-kind, an amount equal to 50
percent of the costs of the project supported by such grant.
``(e) Distribution of Grants.--In awarding grants under
this subpart, the Secretary shall ensure that, to the maximum
extent practicable, the projects funded under this subpart are
located in diverse geographic regions of the United States.
``(f) Eligible Partnerships.--Notwithstanding the general
eligibility provision in section 361, eligibility to receive
grants under this subpart is limited to partnerships described
in paragraph (5) of such section.
``SEC. 356. PROMOTION OF ENTRY INTO STEM FIELDS.
``(a) Authority To Contract, Subject to Appropriations.--
The Secretary is authorized to enter into a contract with a
firm with a demonstrated record of success in advertising to
implement a campaign to expand the population of qualified
individuals in science, technology, engineering, and
mathematics fields (referred to in this section as `STEM
fields') by encouraging young Americans to enter such fields.
``(b) Design of Campaign.--The campaign under this section
shall be designed to enhance the image of education and
professions in the STEM fields and promote participation in the
STEM fields, and may include--
``(1) monitoring trends in youths' attitudes toward
pursuing education and professions in the STEM fields
and their propensity toward entering the STEM fields;
``(2) determining what factors contribute to
encouraging and discouraging Americans from pursuing
study in STEM fields and entering the STEM fields
professionally;
``(3) determining what specific factors limit the
participation of groups currently underrepresented in
STEM fields, including Latinos, African-Americans, and
women; and
``(4) drawing from the market research performed
under this section and implementing an advertising
campaign to encourage young Americans to take up
studies in STEM fields, beginning at an early age.
``(c) Required Components.--The campaign under this section
shall--
``(1) include components that focus tailored
messages on appropriate age groups, starting with
elementary school students; and
``(2) link participation in the STEM fields to the
concept of service to one's country, so that young
people will be encouraged to enter the STEM fields in
order fulfill the obligation to be of service to their
country.
``(d) Priority.--The campaign under this section shall hold
as a high priority making specific appeals to Hispanic
Americans, African Americans, Native Americans, students with
disabilities, and women, who are currently underrepresented in
the STEM fields, in order to increase their numbers in the STEM
fields, and shall tailor recruitment efforts to each specific
group.
``(e) Use of Variety of Media.--The campaign under this
section shall make use of a variety of media, with an emphasis
on television advertising, to reach its intended audience.
``(f) Teaching.--The campaign under this section shall
include a narrowly focused effort to attract current
professionals in the STEM fields, through advertising in
mediums likely to reach that specific group, into teaching in a
STEM field in elementary schools and secondary schools.
``SEC. 357. EVALUATION AND ACCOUNTABILITY PLAN.
``The Secretary shall develop an evaluation and
accountability plan for projects funded under this subpart.
Such plan shall include, if the Secretary determines that it is
practical, an objective measure of the impact of such projects,
such as a measure of whether underrepresented minority student
enrollment in courses related to science, technology,
engineering, and mathematics increases at the secondary and
postsecondary levels.''.
(b) Eligibility for Grants.--Section 361 (20 U.S.C. 1067g)
is amended--
(1) by striking ``or'' at the end of paragraph
(3)(B);
(2) in paragraph (4)--
(A) in subparagraph (A), by striking
``institutions of higher education'' and
inserting ``public and private nonprofit
institutions of higher education'';
(B) in subparagraph (C), by inserting
before the semicolon the following: ``, the
Department of Defense, or the National
Institutes of Health'';
(C) by striking subparagraph (D) and
inserting the following:
``(D) relevant offices of the National
Aeronautics and Space Administration, National
Oceanic and Atmospheric Administration,
National Science Foundation, and National
Institute of Standards and Technology;'';
(D) by striking the period at the end of
subparagraph (E) and inserting ``; or''; and
(E) by adding at the end the following:
``(F) institutions of higher education that
have State-sponsored centers for research in
science, technology, engineering, and
mathematics; or''; and
(3) by adding at the end the following:
``(5) only with respect to grants under subpart 2,
partnerships of organizations, the membership of which
shall include--
``(A) at least one institution of higher
education eligible for assistance under this
title or title V;
``(B) at least one high-need local
educational agency (as defined in section 200);
and
``(C) at least two community organizations
or entities, such as businesses, professional
associations, community-based organizations,
philanthropic organizations, or State
agencies.''.
SEC. 316. INVESTING IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND
OTHER MINORITY-SERVING INSTITUTIONS.
(a) Redesignation and Relocation.--The Act (20 U.S.C. 1001
et seq.) is further amended--
(1) by redesignating part F of title III as part G
of title III;
(2) by redesignating part J of title IV (as added
by section 802 of the College Cost Reduction and Access
Act) as part F of title III, and moving such part so
that such part follows part E of title III; and
(3) by redesignating section 499A (as added by
section 802 of such Act) as section 371.
(b) Conforming Amendments.--Section 371 (as redesignated by
subsection (a)(3)) is amended--
(1) in subsection (b)(2)(C)(i), by striking ``title
III'' each place the term appears and inserting ``this
title''; and
(2) in subsection (c)(9)(F), by striking ``title
III'' and inserting ``this title''.
(c) Availability of Funds.--Paragraph (1) of section 371(b)
(as redesignated by subsection (a)(3)) is amended to read as
follows:
``(1) In general.--
``(A) Provision of funds.--There shall be
available to the Secretary to carry out this
section, from funds in the Treasury not
otherwise appropriated, $255,000,000 for each
of the fiscal years 2008 and 2009. The
authority to award grants under this section
shall expire at the end of fiscal year 2009.
``(B) Availability.--Funds made available
under subparagraph (A) for a fiscal year shall
remain available for the next succeeding fiscal
year.''.
SEC. 317. TECHNICAL ASSISTANCE.
Section 391 (20 U.S.C. 1068) is amended by adding at the
end the following:
``(e) Technical Assistance.--The Secretary, directly or by
grant or contract, may provide technical assistance to eligible
institutions to prepare the institutions to qualify, apply for,
and maintain a grant, under this title.''.
SEC. 318. WAIVER AUTHORITY.
Section 392 (20 U.S.C. 1068a) is amended by adding at the
end the following:
``(c) Waiver Authority With Respect to Institutions Located
in an Area Affected by a Gulf Hurricane Disaster.--
``(1) Waiver authority.--Notwithstanding any other
provision of law, unless enacted with specific
reference to this section, for any affected institution
that was receiving assistance under this title at the
time of a Gulf hurricane disaster, the Secretary shall,
for each of the fiscal years 2009 through 2011 (and
may, for each of the fiscal years 2012 and 2013)--
``(A) waive--
``(i) the eligibility data
requirements set forth in section
391(d);
``(ii) the wait-out period set
forth in section 313(d);
``(iii) the allotment requirements
under section 324; and
``(iv) the use of the funding
formula developed pursuant to section
326(f)(3);
``(B) waive or modify any statutory or
regulatory provision to ensure that affected
institutions that were receiving assistance
under this title at the time of a Gulf
hurricane disaster are not adversely affected
by any formula calculation for fiscal year 2009
or for any of the four succeeding fiscal years,
as necessary; and
``(C) make available to each affected
institution an amount that is not less than the
amount made available to such institution under
this title for fiscal year 2006, except that
for any fiscal year for which the funds
appropriated for payments under this title are
less than the appropriated level for fiscal
year 2006, the amount made available to such
institutions shall be ratably reduced among the
institutions receiving funds under this title.
``(2) Definitions.--In this subsection:
``(A) Affected institution.--The term
`affected institution' means an institution of
higher education that--
``(i) is--
``(I) a part A institution
(which term shall have the
meaning given the term
`eligible institution' under
section 312(b)); or
``(II) a part B
institution, as such term is
defined in section 322(2), or
as identified in section
326(e);
``(ii) is located in an area
affected by a Gulf hurricane disaster;
and
``(iii) is able to demonstrate
that, as a result of the impact of a
Gulf hurricane disaster, the
institution--
``(I) incurred physical
damage;
``(II) has pursued
collateral source compensation
from insurance, the Federal
Emergency Management Agency,
and the Small Business
Administration, as appropriate;
and
``(III) was not able to
fully reopen in existing
facilities or to fully reopen
to the pre-hurricane enrollment
levels during the 30-day period
beginning on August 29, 2005.
``(B) Area affected by a gulf hurricane
disaster; gulf hurricane disaster.--The terms
`area affected by a Gulf hurricane disaster'
and `Gulf hurricane disaster' have the meanings
given such terms in section 209 of the Higher
Education Hurricane Relief Act of 2005 (Public
Law 109-148, 119 Stat. 2809).''.
SEC. 319. AUTHORIZATION OF APPROPRIATIONS.
Section 399(a) (20 U.S.C. 1068h(a)) is amended to read as
follows:
``(a) Authorizations.--
``(1) Part a.--(A) There are authorized to be
appropriated to carry out part A (other than sections
316 through 320), $135,000,000 for fiscal year 2009,
and such sums as may be necessary for each of the five
succeeding fiscal years.
``(B) There are authorized to be appropriated to
carry out section 316, $30,000,000 for fiscal year
2009, and such sums as may be necessary for each of the
five succeeding fiscal years.
``(C) There are authorized to be appropriated to
carry out section 317, $15,000,000 for fiscal year
2009, and such sums as may be necessary for each of the
five succeeding fiscal years.
``(D) There are authorized to be appropriated to
carry out section 318, $75,000,000 for fiscal year 2009
and each of the five succeeding fiscal years.
``(E) There are authorized to be appropriated to
carry out section 319, $25,000,000 for fiscal year
2009, and such sums as may be necessary for each of the
five succeeding fiscal years.
``(F) There are authorized to be appropriated to
carry out section 320, $30,000,000 for fiscal year
2009, and such sums as may be necessary for each of the
five succeeding fiscal years.
``(2) Part b.--(A) There are authorized to be
appropriated to carry out part B (other than section
326), $375,000,000 for fiscal year 2009, and such sums
as may be necessary for each of the five succeeding
fiscal years.
``(B) There are authorized to be appropriated to
carry out section 326, $125,000,000 for fiscal year
2009, and such sums as may be necessary for each of the
five succeeding fiscal years.
``(3) Part c.--There are authorized to be
appropriated to carry out part C, $10,000,000 for
fiscal year 2009, and such sums as may be necessary for
each of the five succeeding fiscal years.
``(4) Part d.--(A) There are authorized to be
appropriated to carry out part D (other than section
345(9), but including section 347), $185,000 for fiscal
year 2009, and such sums as may be necessary for each
of the five succeeding fiscal years.
``(B) There are authorized to be appropriated to
carry out section 345(9) such sums as may be necessary
for fiscal year 2009 and each of the five succeeding
fiscal years.
``(5) Part e.--(A) There are authorized to be
appropriated to carry out subpart 1 of part E,
$12,000,000 for fiscal year 2009, and such sums as may
be necessary for each of the five succeeding fiscal
years.
``(B) There are authorized to be appropriated to
carry out subpart 2 of part E, such sums as may be
necessary for fiscal year 2009 and each of the five
succeeding fiscal years.''.
SEC. 320. TECHNICAL CORRECTIONS.
Title III (20 U.S.C. 1051 et seq.) is further amended--
(1) in section 342(5) (20 U.S.C. 1066a(5))--
(A) in the matter preceding subparagraph
(A), by inserting a comma after ``344(b)''; and
(B) in subparagraph (C), by striking
``equipment technology,,'' and inserting
``equipment, technology,'';
(2) in section 343(e) (20 U.S.C. 1066b(e)), by
inserting ``Sale of Qualified Bonds.--'' before
``Notwithstanding'';
(3) in the matter preceding clause (i) of section
365(9)(A) (20 U.S.C. 1067k(9)(A)), by striking
``support'' and inserting ``supports'';
(4) in section 391(b)(7)(E) (20 U.S.C.
1068(b)(7)(E)), by striking ``subparagraph (E)'' and
inserting ``subparagraph (D)'';
(5) in the matter preceding subparagraph (A) of
section 392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking
``eligible institutions under part A institutions'' and
inserting ``eligible institutions under part A''; and
(6) in the matter preceding paragraph (1) of
section 396 (20 U.S.C. 1068e), by striking ``360'' and
inserting ``399''.
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
SEC. 401. FEDERAL PELL GRANTS.
(a) Authorized Maximums.--
(1) Amendments.--Section 401(b) (20 U.S.C.
1070a(b)) is amended--
(A) by amending paragraph (2)(A) to read as
follows:
``(2)(A) The amount of the Federal Pell Grant for a student
eligible under this part shall be--
``(i) $6,000 for academic year 2009-2010;
``(ii) $6,400 for academic year 2010-2011;
``(iii) $6,800 for academic year 2011-2012;
``(iv) $7,200 for academic year 2012-2013;
``(v) $7,600 for academic year 2013-2014; and
``(vi) $8,000 for academic year 2014-2015,
less an amount equal to the amount determined to be the
expected family contribution with respect to that student for
that year.'';
(B) by designating the paragraphs following
paragraph (2), in the order in which such
paragraphs appear, as paragraphs (3) through
(8);
(C) in paragraph (4) (as designated by
subparagraph (B)), by striking ``$400, except''
and all that follows through the period and
inserting ``ten percent of the maximum basic
grant level specified in the appropriate
appropriation Act for such academic year,
except that a student who is eligible for a
Federal Pell Grant in an amount that is equal
to or greater than five percent of such level
but less than ten percent of such level shall
be awarded a Federal Pell grant in the amount
of ten percent of such level.'';
(D) by striking paragraph (5) (as
designated by subparagraph (B)) and inserting
the following:
``(5)(A) The Secretary shall award a student not
more than two Federal Pell Grants during a single award
year to permit such student to accelerate the student's
progress toward a degree or certificate if the student
is enrolled--
``(i) on at least a half-time basis for a
period of more than one academic year, or more
than two semesters or an equivalent period of
time, during a single award year; and
``(ii) in a program of instruction at an
institution of higher education for which the
institution awards an associate or
baccalaureate degree or a certificate.
``(B) In the case of a student receiving more than
one Federal Pell Grant in a single award year under
subparagraph (A), the total amount of Federal Pell
Grants awarded to such student for the award year may
exceed the maximum basic grant level specified in the
appropriate appropriations Act for such award year.'';
(E) in paragraph (7) (as designated by
subparagraph (B)), by inserting before the
period the following: ``or who is subject to an
involuntary civil commitment upon completion of
a period of incarceration for a forcible or
nonforcible sexual offense (as determined in
accordance with the Federal Bureau of
Investigation's Uniform Crime Reporting
Program)''; and
(F) in paragraph (8) (as designated by
subparagraph (B))--
(i) by amending subparagraph (D) to
read as follows:
``(D) Program requirements and operations
otherwise unaffected.--Except as provided in
subparagraphs (B) and (C), nothing in this
paragraph shall be construed to alter the
requirements and operations of the Federal Pell
Grant Program as authorized under this section,
or authorize the imposition of additional
requirements or operations for the
determination and allocation of Federal Pell
Grants under this section.''; and
(ii) by amending subparagraph (F)
to read as follows:
``(F) Availability of funds.--The amounts
made available by subparagraph (A) for any
fiscal year shall be available beginning on
October 1 of that fiscal year, and shall remain
available through September 30 of the
succeeding fiscal year.''.
(2) Effective date.--
(A) In general.--Except as provided in
subparagraph (B), the amendments made by
paragraph (1) shall take effect on July 1,
2009.
(B) Special rule.--The amendments made by
subparagraph (F) of paragraph (1) shall take
effect on the date of enactment of this Act.
(b) Maximum Duration of Eligibility.--Section 401(c) (20
U.S.C. 1070a(c)) is amended by adding at the end the following
new paragraph:
``(5) The period during which a student may receive Federal
Pell Grants shall not exceed 18 semesters, or the equivalent of
18 semesters, as determined by the Secretary by regulation.
Such regulations shall provide, with respect to a student who
received a Federal Pell Grant for a term but was enrolled at a
fraction of full-time, that only that same fraction of such
semester or equivalent shall count towards such duration
limits. The provisions of this paragraph shall apply only to a
student who receives a Federal Pell Grant for the first time on
or after July 1, 2008.''.
(c) Calculation of Federal Pell Grant Eligibility.--
(1) Amendment.--Section 401(f) (20 U.S.C. 1070a(f))
is amended by adding at the end the following new
paragraph:
``(4)(A) Notwithstanding paragraph (1) or any other
provision of this section, the expected family contribution of
each student described in subparagraph (B) shall be deemed to
be zero for the period during which each such student is
eligible to receive a Federal Pell Grant under subsection (c).
``(B) Subparagraph (A) shall apply to any student at an
institution of higher education--
``(i) whose parent or guardian was a member of the
Armed Forces of the United States who died as a result
of performing military service in Iraq or Afghanistan
after September 11, 2001; and
``(ii) who was less than 24 years of age, or was
enrolled as a full-time or part-time student at an
institution of higher education, as of the time of the
parent or guardian's death.
``(C) Notwithstanding any other provision of law, the
Secretary of Veterans Affairs and the Secretary of Defense, as
appropriate, shall provide the Secretary of Education with
information necessary to determine which students meet the
requirements of subparagraph (B).''.
(2) Effective date.--The amendment made by
paragraph (1) shall take effect on July 1, 2009.
SEC. 402. ACADEMIC COMPETITIVENESS GRANTS.
(a) Amendments.--
(1) In general.--Section 401A (as amended by Public
Law 110-227) (20 U.S.C. 1070a-1) is amended--
(A) in subsection (c)(3)--
(i) in subparagraph (A), by
striking clause (i) and inserting the
following:
``(i)(I) successfully completes,
after January 1, 2006, but before July
1, 2009, a rigorous secondary school
program of study established by a State
or local educational agency and
recognized as such by the Secretary; or
``(II) successfully completes, on
or after July 1, 2009, a rigorous
secondary school program of study that
prepares students for college--
``(aa)(AA) that is
recognized as such by the
official designated for such
recognition consistent with
State law; and
``(BB) about which the
designated official has
reported to the Secretary, at
such time as the Secretary may
reasonably require, in order to
assist financial aid
administrators to determine
that the student is an eligible
student under this section; or
``(bb) that is recognized
as such by the Secretary in
regulations promulgated to
carry out this section, as such
regulations were in effect on
May 6, 2008; and''; and
(ii) in subparagraph (B), by
striking clause (i) and inserting the
following:
``(i)(I) successfully completes,
after January 1, 2005, but before July
1, 2009, a rigorous secondary school
program of study established by a State
or local educational agency and
recognized as such by the Secretary; or
``(II) successfully completes, on
or after July 1, 2009, a rigorous
secondary school program of study that
prepares students for college--
``(aa)(AA) that is
recognized as such by the
official designated for such
recognition consistent with
State law; and
``(BB) about which the
designated official has
reported to the Secretary, at
such time as the Secretary may
reasonably require, in order to
assist financial aid
administrators to determine
that the student is an eligible
student under this section; or
``(bb) that is recognized
as such by the Secretary in
regulations promulgated to
carry out this section, as such
regulations were in effect on
May 6, 2008; and''; and
(B) by amending subsection (e)(2) to read
as follows:
``(2) Availability of funds.--The amounts made
available by paragraph (1) for any fiscal year shall be
available from October 1 of that fiscal year and remain
available through September 30 of the succeeding fiscal
year.''.
(2) Effective date.--The amendment made by
paragraph (1)(B) shall take effect on October 1, 2008.
(3) Effective date amendment.--Section 10(b) of the
Ensuring Continued Access to Student Loans Act of 2008
is amended by striking ``January 1'' and inserting
``July 1''.
(b) Waiver of Master Calendar and Negotiated Rulemaking
Requirements.--Sections 482 and 492 of the Higher Education Act
of 1965 (20 U.S.C. 1089, 1098a) shall not apply to the
amendments made by subsection (a), or to any regulations
promulgated under those amendments.
(c) Related Amendment to the Ensuring Continued Access to
Student Loans Act of 2008.--
(1) Amendment.--Section 11 of the Ensuring
Continued Access to Student Loans Act of 2008 is
amended by striking ``sections 2 through 9 of''.
(2) Effective date.--The amendment made by
paragraph (1) shall take effect as if enacted as part
of the Ensuring Continued Access to Student Loans Act
of 2008.
SEC. 403. FEDERAL TRIO PROGRAMS.
(a) Program Authority; Authorization of Appropriations.--
Section 402A (20 U.S.C. 1070a-11) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by inserting ``including
community-based organizations with
experience in serving disadvantaged
youth'' after ``private agencies and
organizations''; and
(ii) by striking ``in exceptional
circumstances'' and inserting ``, as
appropriate to the purposes of the
program'';
(B) in paragraph (2)--
(i) in the matter preceding
subparagraph (A), by striking ``4'' and
inserting ``5''; and
(ii) by amending subparagraph (A)
to read as follows:
``(A) in order to synchronize the awarding
of grants for programs under this chapter, the
Secretary may, under such terms as are
consistent with the purposes of this chapter,
provide a one-time, limited extension of the
length of such an award;''; and
(C) by striking paragraph (3) and inserting
the following:
``(3) Minimum grants.--Unless the institution or
agency requests a smaller amount, an individual grant
authorized under this chapter shall be awarded in an
amount that is not less than $200,000, except that an
individual grant authorized under section 402G shall be
awarded in an amount that is not less than $170,000.'';
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``(2) prior
experience.--In'' and inserting the
following:
``(2) Considerations.--
``(A) Prior experience.--In'';
(ii) by striking ``service
delivery'' and inserting ``high quality
service delivery, as determined under
subsection (f),''; and
(iii) by adding at the end the
following new subparagraph:
``(B) Participant need.--In making grants
under this chapter, the Secretary shall
consider the number, percentages, and needs of
eligible participants in the area, institution
of higher education, or secondary school to be
served to aid such participants in preparing
for, enrolling in, or succeeding in
postsecondary education, as appropriate to the
particular program for which the eligible
entity is applying.'';
(B) in paragraph (3)(B), by striking ``is
not required to'' and inserting ``shall not'';
(C) in paragraph (5), by striking
``campuses'' and inserting ``different
campuses'';
(D) in paragraph (6), by adding at the end
the following new sentence: ``The Secretary
shall, as appropriate, require each applicant
for funds under the programs authorized by this
chapter to identify and make available services
under such program, including mentoring,
tutoring, and other services provided by such
program, to foster care youth (including youth
in foster care and youth who have left foster
care after reaching age 13) or to homeless
children and youths as defined in section 725
of the McKinney-Vento Homeless Assistance
Act.''; and
(E) by adding at the end the following:
``(8) Review and notification by the secretary.--
``(A) Guidance.--Not later than 180 days
after the date of enactment of the Higher
Education Opportunity Act, the Secretary shall
issue nonregulatory guidance regarding the
rights and responsibilities of applicants with
respect to the application and evaluation
process for programs and projects assisted
under this chapter, including applicant access
to peer review comments. The guidance shall
describe the procedures for the submission,
processing, and scoring of applications for
grants under this chapter, including--
``(i) the responsibility of
applicants to submit materials in a
timely manner and in accordance with
the processes established by the
Secretary under the authority of the
General Education Provisions Act;
``(ii) steps the Secretary will
take to ensure that the materials
submitted by applicants are processed
in a proper and timely manner;
``(iii) steps the Secretary will
take to ensure that prior experience
points for high quality service
delivery are awarded in an accurate and
transparent manner;
``(iv) steps the Secretary will
take to ensure the quality and
integrity of the peer review process,
including assurances that peer
reviewers will consider applications
for grants under this chapter in a
thorough and complete manner consistent
with applicable Federal law; and
``(v) steps the Secretary will take
to ensure that the final score of an
application, including prior experience
points for high quality service
delivery and points awarded through the
peer review process, is determined in
an accurate and transparent manner.
``(B) Updated guidance.--Not later than 45
days before the date of the commencement of
each competition for a grant under this chapter
that is held after the expiration of the 180-
day period described in subparagraph (A), the
Secretary shall update and publish the guidance
described in such subparagraph.
``(C) Review.--
``(i) In general.--With respect to
any competition for a grant under this
chapter, an applicant may request a
review by the Secretary if the
applicant--
``(I) has evidence of a
specific technical,
administrative, or scoring
error made by the Department,
an agent of the Department, or
a peer reviewer, with respect
to the scoring or processing of
a submitted application; and
``(II) has otherwise met
all of the requirements for
submission of the application.
``(ii) Technical or administrative
error.--In the case of evidence of a
technical or administrative error
listed in clause (i)(I), the Secretary
shall review such evidence and provide
a timely response to the applicant. If
the Secretary determines that a
technical or administrative error was
made by the Department or an agent of
the Department, the application of the
applicant shall be reconsidered in the
peer review process for the applicable
grant competition.
``(iii) Scoring error.--In the case
of evidence of a scoring error listed
in clause (i)(I), when the error
relates to either prior experience
points for high quality service
delivery or to the final score of an
application, the Secretary shall--
``(I) review such evidence
and provide a timely response
to the applicant; and
``(II) if the Secretary
determines that a scoring error
was made by the Department or a
peer reviewer, adjust the prior
experience points or final
score of the application
appropriately and quickly, so
as not to interfere with the
timely awarding of grants for
the applicable grant
competition.
``(iv) Error in peer review
process.--
``(I) Referral to secondary
review.--In the case of a peer
review process error listed in
clause (i)(I), if the Secretary
determines that points were
withheld for criteria not
required in Federal statute,
regulation, or guidance
governing a program assisted
under this chapter or the
application for a grant for
such program, or determines
that information pertaining to
selection criteria was wrongly
determined missing from an
application by a peer reviewer,
then the Secretary shall refer
the application to a secondary
review panel.
``(II) Timely review;
replacement score.--The
secondary review panel
described in subclause (I)
shall conduct a secondary
review in a timely fashion, and
the score resulting from the
secondary review shall replace
the score from the initial peer
review.
``(III) Composition of
secondary review panel.--The
secondary review panel shall be
composed of reviewers each of
whom--
``(aa) did not
review the application
in the original peer
review;
``(bb) is a member
of the cohort of peer
reviewers for the grant
program that is the
subject of such
secondary review; and
``(cc) to extent
practicable, has
conducted peer reviews
in not less than two
previous competitions
for the grant program
that is the subject of
such secondary review.
``(IV) Final score.--The
final peer review score of an
application subject to a
secondary review under this
clause shall be adjusted
appropriately and quickly using
the score awarded by the
secondary review panel, so as
not to interfere with the
timely awarding of grants for
the applicable grant
competition.
``(V) Qualification for
secondary review.--To qualify
for a secondary review under
this clause, an applicant shall
have evidence of a scoring
error and demonstrate that--
``(aa) points were
withheld for criteria
not required in
statute, regulation, or
guidance governing the
Federal TRIO programs
or the application for
a grant for such
programs; or
``(bb) information
pertaining to selection
criteria was wrongly
determined to be
missing from the
application.
``(v) Finality.--
``(I) In general.--A
determination by the Secretary
under clause (i), (ii), or
(iii) shall not be reviewable
by any officer or employee of
the Department.
``(II) Scoring.--The score
awarded by a secondary review
panel under clause (iv) shall
not be reviewable by any
officer or employee of the
Department other than the
Secretary.
``(vi) Funding of applications with
certain adjusted scores.--To the extent
feasible based on the availability of
appropriations, the Secretary shall
fund applications with scores that are
adjusted upward under clauses (ii),
(iii), and (iv) to equal or exceed the
minimum cut off score for the
applicable grant competition.'';
(3) in subsection (e)--
(A) by striking ``(g)(2)'' each place it
appears and inserting ``(h)(4)''; and
(B) by adding at the end the following new
paragraph:
``(3) Notwithstanding this subsection and subsection
(h)(4), individuals who are foster care youth (including youth
in foster care and youth who have left foster care after
reaching age 13), or homeless children and youths as defined in
section 725 of the McKinney-Vento Homeless Assistance Act,
shall be eligible to participate in programs under sections
402B, 402C, 402D, and 402F.'';
(4) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively;
(5) by inserting after subsection (e) the
following:
``(f) Outcome Criteria.--
``(1) Use for prior experience determination.--For
competitions for grants under this chapter that begin
on or after January 1, 2009, the Secretary shall
determine an eligible entity's prior experience of high
quality service delivery, as required under subsection
(c)(2), based on the outcome criteria described in
paragraphs (2) and (3).
``(2) Disaggregation of relevant data.--The outcome
criteria under this subsection shall be disaggregated
by low-income students, first generation college
students, and individuals with disabilities, in the
schools and institutions of higher education served by
the program to be evaluated.
``(3) Contents of outcome criteria.--The outcome
criteria under this subsection shall measure, annually
and for longer periods, the quality and effectiveness
of programs authorized under this chapter and shall
include the following:
``(A) For programs authorized under section
402B, the extent to which the eligible entity
met or exceeded the entity's objectives
established in the entity's application for
such program regarding--
``(i) the delivery of service to a
total number of students served by the
program;
``(ii) the continued secondary
school enrollment of such students;
``(iii) the graduation of such
students from secondary school with a
regular secondary school diploma in the
standard number of years;
``(iv) the completion by such
students of a rigorous secondary school
program of study that will make such
students eligible for programs such as
the Academic Competitiveness Grants
Program;
``(v) the enrollment of such
students in an institution of higher
education; and
``(vi) to the extent practicable,
the postsecondary education completion
of such students.
``(B) For programs authorized under section
402C, the extent to which the eligible entity
met or exceeded the entity's objectives for
such program regarding--
``(i) the delivery of service to a
total number of students served by the
program, as agreed upon by the entity
and the Secretary for the period;
``(ii) such students' school
performance, as measured by the grade
point average, or its equivalent;
``(iii) such students' academic
performance, as measured by
standardized tests, including tests
required by the students' State;
``(iv) the retention in, and
graduation from, secondary school of
such students;
``(v) the completion by such
students of a rigorous secondary school
program of study that will make such
students eligible for programs such as
the Academic Competitiveness Grants
Program;
``(vi) the enrollment of such
students in an institution of higher
education; and
``(vii) to the extent practicable,
the postsecondary education completion
of such students.
``(C) For programs authorized under section
402D--
``(i) the extent to which the
eligible entity met or exceeded the
entity's objectives regarding the
retention in postsecondary education of
the students served by the program;
``(ii)(I) in the case of an entity
that is an institution of higher
education offering a baccalaureate
degree, the extent to which the entity
met or exceeded the entity's objectives
regarding the percentage of such
students' completion of the degree
programs in which such students were
enrolled; or
``(II) in the case of an entity
that is an institution of higher
education that does not offer a
baccalaureate degree, the extent to
which such students met or exceeded the
entity's objectives regarding--
``(aa) the completion of a
degree or certificate by such
students; and
``(bb) the transfer of such
students to institutions of
higher education that offer
baccalaureate degrees;
``(iii) the extent to which the
entity met or exceeded the entity's
objectives regarding the delivery of
service to a total number of students,
as agreed upon by the entity and the
Secretary for the period; and
``(iv) the extent to which the
entity met or exceeded the entity's
objectives regarding the students
served under the program who remain in
good academic standing.
``(D) For programs authorized under section
402E, the extent to which the entity met or
exceeded the entity's objectives for such
program regarding--
``(i) the delivery of service to a
total number of students served by the
program, as agreed upon by the entity
and the Secretary for the period;
``(ii) the provision of appropriate
scholarly and research activities for
the students served by the program;
``(iii) the acceptance and
enrollment of such students in graduate
programs; and
``(iv) the continued enrollment of
such students in graduate study and the
attainment of doctoral degrees by
former program participants.
``(E) For programs authorized under section
402F, the extent to which the entity met or
exceeded the entity's objectives for such
program regarding--
``(i) the enrollment of students
without a secondary school diploma or
its recognized equivalent, who were
served by the program, in programs
leading to such diploma or equivalent;
``(ii) the enrollment of secondary
school graduates who were served by the
program in programs of postsecondary
education;
``(iii) the delivery of service to
a total number of students served by
the program, as agreed upon by the
entity and the Secretary for the
period; and
``(iv) the provision of assistance
to students served by the program in
completing financial aid applications
and college admission applications.
``(4) Measurement of progress.--In order to
determine the extent to which each outcome criterion
described in paragraph (2) or (3) is met or exceeded,
the Secretary shall compare the agreed upon target for
the criterion, as established in the eligible entity's
application approved by the Secretary, with the results
for the criterion, measured as of the last day of the
applicable time period for the determination for the
outcome criterion.'';
(6) in subsection (g) (as redesignated by paragraph
(4))--
(A) in the first sentence, by striking
``$700,000,000 for fiscal year 1999'' and all
that follows through the period and inserting
``$900,000,000 for fiscal year 2009 and such
sums as may be necessary for each of the five
succeeding fiscal years.''; and
(B) by striking the fourth sentence; and
(7) in subsection (h) (as redesignated by paragraph
(4))--
(A) by redesignating paragraphs (1) through
(4) as paragraphs (3) through (6),
respectively;
(B) by inserting before paragraph (3) (as
redesignated by subparagraph (A)) the
following:
``(1) Different campus.--The term `different
campus' means a site of an institution of higher
education that--
``(A) is geographically apart from the main
campus of the institution;
``(B) is permanent in nature; and
``(C) offers courses in educational
programs leading to a degree, certificate, or
other recognized educational credential.
``(2) Different population.--The term `different
population' means a group of individuals that an
eligible entity desires to serve through an application
for a grant under this chapter, and that--
``(A) is separate and distinct from any
other population that the entity has applied
for a grant under this chapter to serve; or
``(B) while sharing some of the same needs
as another population that the eligible entity
has applied for a grant under this chapter to
serve, has distinct needs for specialized
services.'';
(C) in paragraph (5) (as redesignated by
subparagraph (A))--
(i) in subparagraph (A)--
(I) by striking ``, any
part of which occurred after
January 31, 1955,''; and
(II) by striking ``or''
after the semicolon;
(ii) in subparagraph (B)--
(I) by striking ``after
January 31, 1955,''; and
(II) by striking the period
at the end and inserting a
semicolon; and
(iii) by adding at the end the
following:
``(C) was a member of a reserve component
of the Armed Forces called to active duty for a
period of more than 30 days; or
``(D) was a member of a reserve component
of the Armed Forces who served on active duty
in support of a contingency operation (as that
term is defined in section 101(a)(13) of title
10, United States Code) on or after September
11, 2001.''; and
(D) in paragraph (6) (as redesignated by
subparagraph (A)), by striking ``subparagraph
(A) or (B) of paragraph (3)'' and inserting
``subparagraph (A), (B), or (C) of paragraph
(5)''.
(b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is
amended--
(1) in subsection (a)--
(A) in paragraph (2), by inserting ``, and
facilitate the application for,'' after ``the
availability of''; and
(B) in paragraph (3), by striking ``, but
who have the ability to complete such programs,
to reenter'' and inserting ``to enter or
reenter, and complete'';
(2) by redesignating subsection (c) as subsection
(d);
(3) by striking subsection (b) and inserting the
following:
``(b) Required Services.--Any project assisted under this
section shall provide--
``(1) connections to high quality academic tutoring
services, to enable students to complete secondary or
postsecondary courses;
``(2) advice and assistance in secondary course
selection and, if applicable, initial postsecondary
course selection;
``(3) assistance in preparing for college entrance
examinations and completing college admission
applications;
``(4)(A) information on the full range of Federal
student financial aid programs and benefits (including
Federal Pell Grant awards and loan forgiveness) and
resources for locating public and private scholarships;
and
``(B) assistance in completing financial aid
applications, including the Free Application for
Federal Student Aid described in section 483(a);
``(5) guidance on and assistance in--
``(A) secondary school reentry;
``(B) alternative education programs for
secondary school dropouts that lead to the
receipt of a regular secondary school diploma;
``(C) entry into general educational
development (GED) programs; or
``(D) postsecondary education; and
``(6) connections to education or counseling
services designed to improve the financial literacy and
economic literacy of students or the students' parents,
including financial planning for postsecondary
education.
``(c) Permissible Services.--Any project assisted under
this section may provide services such as--
``(1) academic tutoring, which may include
instruction in reading, writing, study skills,
mathematics, science, and other subjects;
``(2) personal and career counseling or activities;
``(3) information and activities designed to
acquaint youth with the range of career options
available to the youth;
``(4) exposure to the campuses of institutions of
higher education, as well as cultural events, academic
programs, and other sites or activities not usually
available to disadvantaged youth;
``(5) workshops and counseling for families of
students served;
``(6) mentoring programs involving elementary or
secondary school teachers or counselors, faculty
members at institutions of higher education, students,
or any combination of such persons; and
``(7) programs and activities as described in
subsection (b) or paragraphs (1) through (6) of this
subsection that are specially designed for students who
are limited English proficient, students from groups
that are traditionally underrepresented in
postsecondary education, students with disabilities,
students who are homeless children and youths (as such
term is defined in section 725 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a)), students
who are in foster care or are aging out of the foster
care system, or other disconnected students.''; and
(4) in the matter preceding paragraph (1) of
subsection (d) (as redesignated by paragraph (2)), by
striking ``talent search projects under this chapter''
and inserting ``projects under this section''.
(c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is
amended--
(1) by striking subsection (b) and inserting the
following:
``(b) Required Services.--Any project assisted under this
section shall provide--
``(1) academic tutoring to enable students to
complete secondary or postsecondary courses, which may
include instruction in reading, writing, study skills,
mathematics, science, and other subjects;
``(2) advice and assistance in secondary and
postsecondary course selection;
``(3) assistance in preparing for college entrance
examinations and completing college admission
applications;
``(4)(A) information on the full range of Federal
student financial aid programs and benefits (including
Federal Pell Grant awards and loan forgiveness) and
resources for locating public and private scholarships;
and
``(B) assistance in completing financial aid
applications, including the Free Application for
Federal Student Aid described in section 483(a);
``(5) guidance on and assistance in--
``(A) secondary school reentry;
``(B) alternative education programs for
secondary school dropouts that lead to the
receipt of a regular secondary school diploma;
``(C) entry into general educational
development (GED) programs; or
``(D) postsecondary education; and
``(6) education or counseling services designed to
improve the financial literacy and economic literacy of
students or the students' parents, including financial
planning for postsecondary education.'';
(2) in subsection (c)--
(A) in the subsection heading, by striking
``Required Services'' and inserting
``Additional Required Services for Multiple-
Year Grant Recipients''; and
(B) by striking ``upward bound project
assisted under this chapter'' and inserting
``project assisted under this section'';
(3) by redesignating subsections (d), (e), and (f)
as subsections (e), (f), and (g), respectively;
(4) by inserting after subsection (c) the
following:
``(d) Permissible Services.--Any project assisted under
this section may provide such services as--
``(1) exposure to cultural events, academic
programs, and other activities not usually available to
disadvantaged youth;
``(2) information, activities, and instruction
designed to acquaint youth participating in the project
with the range of career options available to the
youth;
``(3) on-campus residential programs;
``(4) mentoring programs involving elementary
school or secondary school teachers or counselors,
faculty members at institutions of higher education,
students, or any combination of such persons;
``(5) work-study positions where youth
participating in the project are exposed to careers
requiring a postsecondary degree;
``(6) special services, including mathematics and
science preparation, to enable veterans to make the
transition to postsecondary education; and
``(7) programs and activities as described in
subsection (b), subsection (c), or paragraphs (1)
through (6) of this subsection that are specially
designed for students who are limited English
proficient, students from groups that are traditionally
underrepresented in postsecondary education, students
with disabilities, students who are homeless children
and youths (as such term is defined in section 725 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a)), students who are in foster care or are aging
out of the foster care system, or other disconnected
students.'';
(5) in subsection (e) (as redesignated by paragraph
(3))--
(A) in the matter preceding paragraph (1),
by striking ``upward bound projects under this
chapter'' and inserting ``projects under this
section'';
(B) in paragraph (2), by striking ``either
low-income'' and all that follows through the
semicolon and inserting ``low-income
individuals, first generation college students,
or students who have a high risk for academic
failure;'';
(C) in paragraph (3), by striking ``and''
after the semicolon;
(D) in paragraph (4), by striking the
period at the end and inserting ``; and''; and
(E) by adding at the end the following:
``(5) require an assurance that no student will be
denied participation in a project assisted under this
section because the student will enter the project
after the 9th grade.'';
(6) in subsection (f) (as redesignated by paragraph
(3))--
(A) by striking ``during June, July, and
August'' each place the term occurs and
inserting ``during the summer school recess,
for a period not to exceed three months''; and
(B) by striking ``(b)(10)'' and inserting
``(d)(5)''; and
(7) by adding at the end the following:
``(h) Absolute Priority Prohibited in Upward Bound
Program.--Upon enactment of this subsection and except as
otherwise expressly provided by amendment to this section, the
Secretary shall not continue, implement, or enforce the
absolute priority for the Upward Bound Program published by the
Department of Education in the Federal Register on September
22, 2006 (71 Fed. Reg. 55447 et seq.). This subsection shall
not be applied retroactively. In implementing this subsection,
the Department shall allow the programs and participants chosen
in the grant cycle to which the priority applies to continue
their grants and participation without a further recompetition.
The entities shall not be required to apply the absolute
priority conditions or restrictions to future participants.''.
(d) Student Support Services.--Section 402D (20 U.S.C.
1070a-14) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``and''
after the semicolon; and
(B) by striking paragraph (3) and inserting
the following:
``(3) to foster an institutional climate supportive
of the success of students who are limited English
proficient, students from groups that are traditionally
underrepresented in postsecondary education, students
with disabilities, students who are homeless children
and youths (as such term is defined in section 725 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a)), students who are in foster care or are aging
out of the foster care system, or other disconnected
students; and
``(4) to improve the financial literacy and
economic literacy of students, including--
``(A) basic personal income, household
money management, and financial planning
skills; and
``(B) basic economic decisionmaking
skills.'';
(2) by redesignating subsections (c) and (d) as
subsections (d) and (e);
(3) by striking subsection (b) and inserting the
following:
``(b) Required Services.--A project assisted under this
section shall provide--
``(1) academic tutoring, directly or through other
services provided by the institution, to enable
students to complete postsecondary courses, which may
include instruction in reading, writing, study skills,
mathematics, science, and other subjects;
``(2) advice and assistance in postsecondary course
selection;
``(3)(A) information on both the full range of
Federal student financial aid programs and benefits
(including Federal Pell Grant awards and loan
forgiveness) and resources for locating public and
private scholarships; and
``(B) assistance in completing financial aid
applications, including the Free Application for
Federal Student Aid described in section 483(a);
``(4) education or counseling services designed to
improve the financial literacy and economic literacy of
students, including financial planning for
postsecondary education;
``(5) activities designed to assist students
participating in the project in applying for admission
to, and obtaining financial assistance for enrollment
in, graduate and professional programs; and
``(6) activities designed to assist students
enrolled in two-year institutions of higher education
in applying for admission to, and obtaining financial
assistance for enrollment in, a four-year program of
postsecondary education.
``(c) Permissible Services.--A project assisted under this
section may provide services such as--
``(1) individualized counseling for personal,
career, and academic matters provided by assigned
counselors;
``(2) information, activities, and instruction
designed to acquaint students participating in the
project with the range of career options available to
the students;
``(3) exposure to cultural events and academic
programs not usually available to disadvantaged
students;
``(4) mentoring programs involving faculty or upper
class students, or a combination thereof;
``(5) securing temporary housing during breaks in
the academic year for--
``(A) students who are homeless children
and youths (as such term is defined in section
725 of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11434a)) or were formerly
homeless children and youths; and
``(B) students who are in foster care or
are aging out of the foster care system; and
``(6) programs and activities as described in
subsection (b) or paragraphs (1) through (4) of this
subsection that are specially designed for students who
are limited English proficient, students from groups
that are traditionally underrepresented in
postsecondary education, students with disabilities,
students who are homeless children and youths (as such
term is defined in section 725 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a)), students
who are in foster care or are aging out of the foster
care system, or other disconnected students.'';
(4) in subsection (d)(1) (as redesignated by
paragraph (2)), by striking ``subsection (b)'' and
inserting ``subsection (c)''; and
(5) in the matter preceding paragraph (1) of
subsection (e) (as redesignated by paragraph (2)), by
striking ``student support services projects under this
chapter'' and inserting ``projects under this
section''.
(e) Postbaccalaureate Achievement Program Authority.--
Section 402E (20 U.S.C. 1070a-15) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by inserting
``Required'' before ``Services'';
(B) in the matter preceding paragraph (1),
by striking ``A postbaccalaureate achievement
project assisted under this section may provide
services such as--'' and inserting ``A project
assisted under this section shall provide--'';
(C) in paragraph (5), by inserting ``and''
after the semicolon;
(D) in paragraph (6), by striking the
semicolon and inserting a period; and
(E) by striking paragraphs (7) and (8);
(2) by redesignating subsections (c) through (f) as
subsections (d) through (g), respectively;
(3) by inserting after subsection (b) the
following:
``(c) Permissible Services.--A project assisted under this
section may provide services such as--
``(1) education or counseling services designed to
improve the financial literacy and economic literacy of
students, including financial planning for
postsecondary education;
``(2) mentoring programs involving faculty members
at institutions of higher education, students, or any
combination of such persons; and
``(3) exposure to cultural events and academic
programs not usually available to disadvantaged
students.'';
(4) in subsection (d) (as redesignated by paragraph
(2))--
(A) in the matter preceding paragraph (1),
by striking ``postbaccalaureate achievement'';
and
(B) in paragraph (2), by inserting after
``graduate education'' the following: ``,
including--
``(A) Alaska Natives, as defined in section
7306 of the Elementary and Secondary Education
Act of 1965;
``(B) Native Hawaiians, as defined in
section 7207 of such Act; and
``(C) Native American Pacific Islanders, as
defined in section 320.'';
(5) in the matter preceding paragraph (1) of
subsection (f) (as redesignated by paragraph (2)), by
striking ``postbaccalaureate achievement project'' and
inserting ``project under this section''; and
(6) in subsection (g) (as redesignated by paragraph
(2))--
(A) by striking ``402A(f)'' and inserting
``402A(g)''; and
(B) by striking ``1993 through 1997'' and
inserting ``2009 through 2014''.
(f) Educational Opportunity Centers.--Section 402F (20
U.S.C. 1070a-16) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``and''
after the semicolon;
(B) in paragraph (2), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) to improve the financial literacy and
economic literacy of students, including--
``(A) basic personal income, household
money management, and financial planning
skills; and
``(B) basic economic decisionmaking
skills.''; and
(2) in subsection (b)--
(A) by redesignating paragraphs (5) through
(10) as paragraphs (6) through (11),
respectively;
(B) by inserting after paragraph (4) the
following:
``(5) education or counseling services designed to
improve the financial literacy and economic literacy of
students;'';
(C) by striking paragraph (7) (as
redesignated by subparagraph (A)) and inserting
the following:
``(7) individualized personal, career, and academic
counseling;''; and
(D) by striking paragraph (11) (as
redesignated by subparagraph (A)) and inserting
the following:
``(11) programs and activities as described in
paragraphs (1) through (10) that are specially designed
for students who are limited English proficient,
students from groups that are traditionally
underrepresented in postsecondary education, students
with disabilities, students who are homeless children
and youths (as such term is defined in section 725 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a)), students who are in foster care or are aging
out of the foster care system, or other disconnected
students.''.
(g) Staff Development Activities.--Section 402G(b) (20
U.S.C. 1070a-17(b)) is amended by adding at the end the
following new paragraph:
``(5) Strategies for recruiting and serving hard to
reach populations, including students who are limited
English proficient, students from groups that are
traditionally underrepresented in postsecondary
education, students with disabilities, students who are
homeless children and youths (as such term is defined
in section 725 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a)), students who are in
foster care or are aging out of the foster care system,
or other disconnected students.''.
(h) Reports, Evaluations, and Grants for Project
Improvement and Dissemination.--Section 402H (20 U.S.C. 1070a-
18) is amended--
(1) by striking the section heading and inserting
``REPORTS, EVALUATIONS, AND GRANTS FOR PROJECT
IMPROVEMENT AND DISSEMINATION.'';
(2) by redesignating subsections (a) through (c) as
subsections (b) through (d), respectively;
(3) by inserting before subsection (b) (as
redesignated by paragraph (2)) the following:
``(a) Reports to the Authorizing Committees.--
``(1) In general.--The Secretary shall submit
annually, to the authorizing committees, a report that
documents the performance of all programs funded under
this chapter. Such report shall--
``(A) be submitted not later than 12 months
after the eligible entities receiving funds
under this chapter are required to report their
performance to the Secretary;
``(B) focus on the programs' performance on
the relevant outcome criteria determined under
section 402A(f)(4);
``(C) aggregate individual project
performance data on the outcome criteria in
order to provide national performance data for
each program;
``(D) include, when appropriate,
descriptive data, multi-year data, and multi-
cohort data; and
``(E) include comparable data on the
performance nationally of low-income students,
first-generation students, and students with
disabilities.
``(2) Information.--The Secretary shall provide,
with each report submitted under paragraph (1),
information on the impact of the secondary review
process described in section 402A(c)(8)(C)(iv),
including the number and type of secondary reviews, the
disposition of the secondary reviews, the effect on
timing of awards, and any other information the
Secretary determines is necessary.''; and
(4) in subsection (b) (as redesignated by paragraph
(2)), by striking paragraphs (1) and (2) and inserting
the following:
``(1) In general.--
``(A) Authorization of grants and
contracts.--For the purpose of improving the
effectiveness of the programs and projects
assisted under this chapter, the Secretary
shall make grants to, or enter into contracts
with, institutions of higher education and
other public and private institutions and
organizations to rigorously evaluate the
effectiveness of the programs and projects
assisted under this chapter, including a
rigorous evaluation of the programs and
projects assisted under section 402C. The
evaluation of the programs and projects
assisted under section 402C shall be
implemented not later than June 30, 2010.
``(B) Content of upward bound evaluation.--
The evaluation of the programs and projects
assisted under section 402C that is described
in subparagraph (A) shall examine the
characteristics of the students who benefit
most from the Upward Bound program under
section 402C and the characteristics of the
programs and projects that most benefit
students.
``(C) Implementation.--Each evaluation
described in this paragraph shall be
implemented in accordance with the requirements
of this section.
``(2) Practices.--
``(A) In general.--The evaluations
described in paragraph (1) shall identify
institutional, community, and program or
project practices that are effective in--
``(i) enhancing the access of low-
income individuals and first-generation
college students to postsecondary
education;
``(ii) the preparation of such
individuals and students for
postsecondary education; and
``(iii) fostering the success of
the individuals and students in
postsecondary education.
``(B) Primary purpose.--Any evaluation
conducted under this chapter shall have as the
evaluation's primary purpose the identification
of particular practices that further the
achievement of the outcome criteria determined
under section 402A(f)(4).
``(C) Dissemination and use of evaluation
findings.--The Secretary shall disseminate to
eligible entities and make available to the
public the practices identified under
subparagraph (B). The practices may be used by
eligible entities that receive assistance under
this chapter after the dissemination.
``(3) Special rule related to evaluation
participation.--The Secretary shall not require an
eligible entity, as a condition for receiving, or that
receives, assistance under any program or project under
this chapter to participate in an evaluation under this
section that--
``(A) requires the eligible entity to
recruit additional students beyond those the
program or project would normally recruit; or
``(B) results in the denial of services for
an eligible student under the program or
project.
``(4) Consideration.--When designing an evaluation
under this subsection, the Secretary shall continue to
consider--
``(A) the burden placed on the program
participants or the eligible entity; and
``(B) whether the evaluation meets
generally accepted standards of institutional
review boards.''.
SEC. 404. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS.
(a) Early Intervention and College Awareness Program
Authorized.--Section 404A (20 U.S.C. 1070a-21) is amended--
(1) by striking subsection (a) and inserting the
following:
``(a) Program Authorized.--The Secretary is authorized, in
accordance with the requirements of this chapter, to establish
a program that encourages eligible entities to provide support,
and maintain a commitment, to eligible low-income students,
including students with disabilities, to assist the students in
obtaining a secondary school diploma (or its recognized
equivalent) and to prepare for and succeed in postsecondary
education, by providing--
``(1) financial assistance, academic support,
additional counseling, mentoring, outreach, and
supportive services to secondary school students,
including students with disabilities, to reduce--
``(A) the risk of such students dropping
out of school; or
``(B) the need for remedial education for
such students at the postsecondary level; and
``(2) information to students and their families
about the advantages of obtaining a postsecondary
education and, college financing options for the
students and their families.'';
(2) in subsection (b), by striking paragraph (2)
and inserting the following:
``(2) Award period.--The Secretary may award a
grant under this chapter to an eligible entity
described in paragraphs (1) and (2) of subsection (c)
for--
``(A) six years; or
``(B) in the case of an eligible entity
that applies for a grant under this chapter for
seven years to enable the eligible entity to
provide services to a student through the
student's first year of attendance at an
institution of higher education, seven years.
``(3) Priority.--In making awards to eligible
entities described in subsection (c)(1), the Secretary
shall--
``(A) give priority to eligible entities
that--
``(i) on the day before the date of
enactment of the Higher Education
Opportunity Act, carried out successful
educational opportunity programs under
this chapter (as this chapter was in
effect on such day); and
``(ii) have a prior, demonstrated
commitment to early intervention
leading to college access through
collaboration and replication of
successful strategies; and
``(B) ensure that students served under
this chapter on the day before the date of
enactment of the Higher Education Opportunity
Act continue to receive assistance through the
completion of secondary school.''; and
(3) in subsection (c), by striking paragraph (2)
and inserting the following:
``(2) a partnership--
``(A) consisting of--
``(i) one or more local educational
agencies; and
``(ii) one or more degree granting
institutions of higher education; and
``(B) which may include not less than two
other community organizations or entities, such
as businesses, professional organizations,
State agencies, institutions or agencies
sponsoring programs authorized under subpart 4,
or other public or private agencies or
organizations.''.
(b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is
amended--
(1) by striking subsection (a) and inserting the
following:
``(a) Funding Rules.--In awarding grants from the amount
appropriated under section 404H for a fiscal year, the
Secretary shall make available--
``(1) to eligible entities described in section
404A(c)(1), not less than 33 percent of such amount;
``(2) to eligible entities described in section
404A(c)(2), not less than 33 percent of such amount;
and
``(3) to eligible entities described in paragraph
(1) or (2) of section 404A(c), the remainder of such
amount taking into consideration the number, quality,
and promise of the applications for the grants, and, to
the extent practicable--
``(A) the geographic distribution of such
grant awards; and
``(B) the distribution of such grant awards
between urban and rural applicants.'';
(2) by striking subsections (b), (e), and (f);
(3) by redesignating subsections (c), (d), and (g),
as subsections (b), (c), and (d), respectively;
(4) in subsection (d)(1) (as redesignated by
paragraph (3))--
(A) by striking ``and'' at the end of
subparagraph (A);
(B) in subparagraph (B)--
(i) by inserting ``and provide the
option of continued services through
the student's first year of attendance
at an institution of higher education
to the extent the provision of such
services was described in the eligible
entity's application for assistance
under this chapter'' after ``grade
level''; and
(ii) by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(C) provide services under this chapter
to students who have received services under a
previous GEAR UP grant award but have not yet
completed the 12th grade.''; and
(5) by adding at the end the following:
``(e) Supplement, Not Supplant.--Grant funds awarded under
this chapter shall be used to supplement, and not supplant,
other Federal, State, and local funds that would otherwise be
expended to carry out activities assisted under this
chapter.''.
(c) Application.--Section 404C (20 U.S.C. 1070a-23) is
amended--
(1) in the section heading, by striking ``ELIGIBLE
ENTITY PLANS'' and inserting ``APPLICATIONS'';
(2) in subsection (a)--
(A) in the subsection heading, by striking
``Plan'' and inserting ``Application'';
(B) in paragraph (1)--
(i) by striking ``a plan'' and
inserting ``an application''; and
(ii) by striking the second
sentence; and
(C) by striking paragraph (2) and inserting
the following:
``(2) Contents.--Each application submitted
pursuant to paragraph (1) shall be in such form,
contain or be accompanied by such information or
assurances, and be submitted at such time as the
Secretary may reasonably require. Each such application
shall, at a minimum--
``(A) describe the activities for which
assistance under this chapter is sought,
including how the eligible entity will carry
out the required activities described in
section 404D(a);
``(B) describe, in the case of an eligible
entity described in section 404A(c)(2) that
chooses to provide scholarships, or an eligible
entity described in section 404A(c)(1), how the
eligible entity will meet the requirements of
section 404E;
``(C) describe, in the case of an eligible
entity described in section 404A(c)(2) that
requests a reduced match percentage under
subsection (b)(2), how such reduction will
assist the entity to provide the scholarships
described in subsection (b)(2)(A)(ii);
``(D) provide assurances that adequate
administrative and support staff will be
responsible for coordinating the activities
described in section 404D;
``(E) provide assurances that activities
assisted under this chapter will not displace
an employee or eliminate a position at a school
assisted under this chapter, including a
partial displacement such as a reduction in
hours, wages, or employment benefits;
``(F) describe, in the case of an eligible
entity described in section 404A(c)(1) that
chooses to use a cohort approach, or an
eligible entity described in section
404A(c)(2), how the eligible entity will define
the cohorts of the students served by the
eligible entity pursuant to section 404B(d),
and how the eligible entity will serve the
cohorts through grade 12, including--
``(i) how vacancies in the program
under this chapter will be filled; and
``(ii) how the eligible entity will
serve students attending different
secondary schools;
``(G) describe how the eligible entity will
coordinate programs under this chapter with
other existing Federal, State, or local
programs to avoid duplication and maximize the
number of students served;
``(H) provide such additional assurances as
the Secretary determines necessary to ensure
compliance with the requirements of this
chapter;
``(I) provide information about the
activities that will be carried out by the
eligible entity to support systemic changes
from which future cohorts of students will
benefit; and
``(J) describe the sources of matching
funds that will enable the eligible entity to
meet the matching requirement described in
subsection (b).'';
(3) in subsection (b)--
(A) in the matter preceding subparagraph
(A) of paragraph (1)--
(i) by striking ``a plan'' and
inserting ``an application''; and
(ii) by striking ``such plan'' and
inserting ``such application'';
(B) in paragraph (1)(A), by inserting ``and
may be accrued over the full duration of the
grant award period, except that the eligible
entity shall make substantial progress towards
meeting the matching requirement in each year
of the grant award period'' after ``in cash or
in-kind''; and
(C) in paragraph (2), by adding at the end
the following new sentence: ``The Secretary may
approve an eligible entity's request for a
reduced match percentage--
``(A) at the time of application--
``(i) if the eligible entity
demonstrates significant economic
hardship that precludes the eligible
entity from meeting the matching
requirement; or
``(ii) if the eligible entity is
described in section 404A(c)(2) and
requests that contributions to the
eligible entity's scholarship fund
established under section 404E be
matched on a two to one basis; or
``(B) in response to a petition by an
eligible entity subsequent to a grant award
under this section if the eligible entity
demonstrates that the matching funds described
in its application are no longer available and
the eligible entity has exhausted all revenues
for replacing such matching funds.''; and
(4) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``paid to students
from State, local, institutional, or
private funds under this chapter'' and
inserting ``obligated to students from
State, local, institutional, or private
funds under this chapter, including
pre-existing non-Federal financial
assistance programs,''; and
(ii) by striking the semicolon at
the end and inserting ``including--
``(A) the amount contributed to a student
scholarship fund established under section
404E; and
``(B) the amount of the costs of
administering the scholarship program under
section 404E;'';
(B) in paragraph (2), by striking ``and''
after the semicolon;
(C) in paragraph (3), by striking the
period at the end and inserting ``; and''; and
(D) by adding at the end the following:
``(4) other resources recognized by the Secretary,
including equipment and supplies, cash contributions
from non-Federal sources, transportation expenses, in-
kind or discounted program services, indirect costs,
and facility usage.''.
(d) Activities.--Section 404D (20 U.S.C. 1070a-24) is
amended to read as follows:
``SEC. 404D. ACTIVITIES.
``(a) Required Activities.--Each eligible entity receiving
a grant under this chapter shall provide comprehensive
mentoring, outreach, and supportive services to students
participating in the programs under this chapter. Such
activities shall include the following:
``(1) Providing information regarding financial aid
for postsecondary education to participating students
in the cohort described in section 404B(d)(1)(A) or to
priority students described in subsection (d).
``(2) Encouraging student enrollment in rigorous
and challenging curricula and coursework, in order to
reduce the need for remedial coursework at the
postsecondary level.
``(3) Improving the number of participating
students who--
``(A) obtain a secondary school diploma;
and
``(B) complete applications for and enroll
in a program of postsecondary education.
``(4) In the case of an eligible entity described
in section 404A(c)(1), providing for the scholarships
described in section 404E.
``(b) Permissible Activities for States and Partnerships.--
An eligible entity that receives a grant under this chapter may
use grant funds to carry out one or more of the following
activities:
``(1) Providing tutors and mentors, who may include
adults or former participants of a program under this
chapter, for eligible students.
``(2) Conducting outreach activities to recruit
priority students described in subsection (d) to
participate in program activities.
``(3) Providing supportive services to eligible
students.
``(4) Supporting the development or implementation
of rigorous academic curricula, which may include
college preparatory, Advanced Placement, or
International Baccalaureate programs, and providing
participating students access to rigorous core academic
courses that reflect challenging State academic
standards.
``(5) Supporting dual or concurrent enrollment
programs between the secondary school and institution
of higher education partners of an eligible entity
described in section 404A(c)(2), and other activities
that support participating students in--
``(A) meeting challenging State academic
standards;
``(B) successfully applying for
postsecondary education;
``(C) successfully applying for student
financial aid; and
``(D) developing graduation and career
plans.
``(6) Providing special programs or tutoring in
science, technology, engineering, or mathematics.
``(7) In the case of an eligible entity described
in section 404A(c)(2), providing support for
scholarships described in section 404E.
``(8) Introducing eligible students to institutions
of higher education, through trips and school-based
sessions.
``(9) Providing an intensive extended school day,
school year, or summer program that offers--
``(A) additional academic classes; or
``(B) assistance with college admission
applications.
``(10) Providing other activities designed to
ensure secondary school completion and postsecondary
education enrollment of at-risk children, such as--
``(A) the identification of at-risk
children;
``(B) after-school and summer tutoring;
``(C) assistance to at-risk children in
obtaining summer jobs;
``(D) academic counseling;
``(E) financial literacy and economic
literacy education or counseling;
``(F) volunteer and parent involvement;
``(G) encouraging former or current
participants of a program under this chapter to
serve as peer counselors;
``(H) skills assessments;
``(I) personal and family counseling, and
home visits;
``(J) staff development; and
``(K) programs and activities described in
this subsection that are specially designed for
students who are limited English proficient.
``(11) Enabling eligible students to enroll in
Advanced Placement or International Baccalaureate
courses, or college entrance examination preparation
courses.
``(12) Providing services to eligible students in
the participating cohort described in section
404B(d)(1)(A), through the first year of attendance at
an institution of higher education.
``(13) Fostering and improving parent and family
involvement in elementary and secondary education by
promoting the advantages of a college education, and
emphasizing academic admission requirements and the
need to take college preparation courses, through
parent engagement and leadership activities.
``(14) Disseminating information that promotes the
importance of higher education, explains college
preparation and admission requirements, and raises
awareness of the resources and services provided by the
eligible entities to eligible students, their families,
and communities.
``(15) In the event that matching funds described
in the application are no longer available, engaging
entities described in section 404A(c)(2) in a
collaborative manner to provide matching resources and
participate in other activities authorized under this
section.
``(c) Additional Permissible Activities for States.--In
addition to the required activities described in subsection (a)
and the permissible activities described in subsection (b), an
eligible entity described in section 404A(c)(1) receiving funds
under this chapter may use grant funds to carry out one or more
of the following activities:
``(1) Providing technical assistance to--
``(A) secondary schools that are located
within the State; or
``(B) partnerships described in section
404A(c)(2) that are located within the State.
``(2) Providing professional development
opportunities to individuals working with eligible
cohorts of students described in section 404B(d)(1)(A).
``(3) Providing administrative support to help
build the capacity of eligible entities described in
section 404A(c)(2) to compete for and manage grants
awarded under this chapter.
``(4) Providing strategies and activities that
align efforts in the State to prepare eligible students
to attend and succeed in postsecondary education, which
may include the development of graduation and career
plans.
``(5) Disseminating information on the use of
scientifically valid research and best practices to
improve services for eligible students.
``(6)(A) Disseminating information on effective
coursework and support services that assist students in
obtaining the goals described in subparagraph (B)(ii).
``(B) Identifying and disseminating information on
best practices with respect to--
``(i) increasing parental involvement; and
``(ii) preparing students, including
students with disabilities and students who are
limited English proficient, to succeed
academically in, and prepare financially for,
postsecondary education.
``(7) Working to align State academic standards and
curricula with the expectations of postsecondary
institutions and employers.
``(8) Developing alternatives to traditional
secondary school that give students a head start on
attaining a recognized postsecondary credential
(including an industry-recognized certificate, an
apprenticeship, or an associate's or a bachelor's
degree), including school designs that give students
early exposure to college-level courses and experiences
and allow students to earn transferable college credits
or an associate's degree at the same time as a
secondary school diploma.
``(9) Creating community college programs for drop-
outs that are personalized drop-out recovery programs
that allow drop-outs to complete a regular secondary
school diploma and begin college-level work.
``(d) Priority Students.--For eligible entities not using a
cohort approach, the eligible entity shall treat as a priority
student any student in secondary school who is--
``(1) eligible to be counted under section 1124(c)
of the Elementary and Secondary Education Act of 1965;
``(2) eligible for assistance under a State program
funded under part A or E of title IV of the Social
Security Act (42 U.S.C. 601 et seq., 670 et seq.);
``(3) eligible for assistance under subtitle B of
title VII of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11431 et seq.); or
``(4) otherwise considered by the eligible entity
to be a disconnected student.
``(e) Allowable Providers.--In the case of eligible
entities described in section 404A(c)(1), the activities
required by this section may be provided by service providers
such as community-based organizations, schools, institutions of
higher education, public and private agencies, nonprofit and
philanthropic organizations, businesses, institutions and
agencies sponsoring programs authorized under subpart 4, and
other organizations the State determines appropriate.''.
(e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-
25) is amended--
(1) by striking subsections (e) and (f);
(2) by redesignating subsections (b), (c), and (d)
as subsections (d), (f), and (g), respectively;
(3) by inserting after subsection (a) the
following:
``(b) Limitation.--
``(1) In general.--Subject to paragraph (2), each
eligible entity described in section 404A(c)(1) that
receives a grant under this chapter shall use not less
than 25 percent and not more than 50 percent of the
grant funds for activities described in section 404D
(except for the activity described in subsection (a)(4)
of such section), with the remainder of such funds to
be used for a scholarship program under this section in
accordance with such subsection.
``(2) Exception.--Notwithstanding paragraph (1),
the Secretary may allow an eligible entity to use more
than 50 percent of grant funds received under this
chapter for such activities, if the eligible entity
demonstrates that the eligible entity has another means
of providing the students with the financial assistance
described in this section and describes such means in
the application submitted under section 404C.
``(c) Notification of Eligibility.--Each eligible entity
providing scholarships under this section shall provide
information on the eligibility requirements for the
scholarships to all participating students upon the students'
entry into the programs assisted under this chapter.'';
(4) in subsection (d) (as redesignated by paragraph
(2)), by striking ``the lesser of'' and all that
follows through the period at the end of paragraph (2)
of such subsection (d) and inserting ``the minimum
Federal Pell Grant award under section 401 for such
award year.'';
(5) by inserting after subsection (d) (as
redesignated by paragraph (2) and amended by paragraph
(4)) the following:
``(e) Portability of Assistance.--
``(1) In general.--Each eligible entity described
in section 404A(c)(1) that receives a grant under this
chapter shall hold in reserve, for the students served
by such grant as described in section 404B(d)(1)(A) or
404D(d), an amount that is not less than the minimum
scholarship amount described in subsection (d),
multiplied by the number of students the eligible
entity estimates will meet the requirements of
paragraph (2).
``(2) Requirement for portability.--Funds held in
reserve under paragraph (1) shall be made available to
an eligible student when the eligible student has--
``(A) completed a secondary school diploma,
its recognized equivalent, or another
recognized alternative standard for individuals
with disabilities; and
``(B) enrolled in an institution of higher
education.
``(3) Qualified educational expenses.--Funds
available to an eligible student under this subsection
may be used for--
``(A) tuition, fees, books, supplies, and
equipment required for the enrollment or
attendance of the eligible student at an
institution of higher education; and
``(B) in the case of an eligible student
with special needs, expenses for special needs
services that are incurred in connection with
such enrollment or attendance.
``(4) Return of funds.--
``(A) Redistribution.--
``(i) In general.--Funds held in
reserve under paragraph (1) that are
not used by an eligible student within
six years of the student's scheduled
completion of secondary school may be
redistributed by the eligible entity to
other eligible students.
``(ii) Return of excess to the
secretary.--If, after meeting the
requirements of paragraph (1) and, if
applicable, redistributing excess funds
in accordance with clause (i) of this
subparagraph, an eligible entity has
funds held in reserve under paragraph
(1) that remain available, the eligible
entity shall return such remaining
reserved funds to the Secretary for
distribution to other grantees under
this chapter in accordance with the
funding rules described in section
404B(a).
``(B) Nonparticipating entity.--
Notwithstanding subparagraph (A), in the case
of an eligible entity that does not receive
assistance under this subpart for six fiscal
years, the eligible entity shall return any
funds held in reserve under paragraph (1) that
are not awarded or obligated to eligible
students to the Secretary for distribution to
other grantees under this chapter.''; and
(6) in subsection (g)(4) (as redesignated by
paragraph (2)), by striking ``early intervention
component required under section 404D'' and inserting
``activities required under section 404D(a)''.
(f) 21st Century Scholar Certificates.--Section 404F (20
U.S.C. 1070a-26) is amended by striking subsections (a) and (b)
and inserting the following:
``(a) In General.--An eligible entity that receives a grant
under this chapter shall provide certificates, to be known as
21st Century Scholar Certificates, to all students served by
the eligible entity who are participating in a program under
this chapter.
``(b) Information Required.--A 21st Century Scholar
Certificate shall be personalized for each student and indicate
the amount of Federal financial aid for college and the
estimated amount of any scholarship provided under section
404E, if applicable, that a student may be eligible to
receive.''.
(g) Evaluation.--Section 404G(c) (20 U.S.C. 1070a-27(c)) is
amended by adding at the end the following: ``Such evaluation
shall include a separate analysis of--
``(1) the implementation of the scholarship
component described in section 404E; and
``(2) the use of methods for complying with
matching requirements described in paragraphs (1) and
(2) of section 404C(c).''.
(h) Authorization of Appropriations.--Section 404H (20
U.S.C. 1070a-28) is amended by striking ``$200,000,000 for
fiscal year 1999'' and all that follows through the period and
inserting ``$400,000,000 for fiscal year 2009 and such sums as
may be necessary for each of the five succeeding fiscal
years.''.
SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.
Chapter 3 of subpart 2 of part A of title IV (20 U.S.C.
1070a-31 et seq.) is repealed.
SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.
(a) Appropriations Authorized.--Section 413A(b)(1) (20
U.S.C. 1070b(b)(1)) is amended by striking ``$675,000,000 for
fiscal year 1999'' and all that follows through the period and
inserting ``such sums as may be necessary for fiscal year 2009
and each of the five succeeding fiscal years.''.
(b) Allowance for Books and Supplies.--Section
413D(c)(3)(D) (20 U.S.C. 1070b-3(c)(3)(D)) is amended by
striking ``$450'' and inserting ``$600''.
(c) Technical Correction.--Section 413D(a)(1) (20 U.S.C.
1070b-3(a)(1)) is amended by striking ``such institution'' and
all that follows through the period and inserting ``such
institution received under subsections (a) and (b) of this
section for fiscal year 1999 (as such subsections were in
effect with respect to allocations for such fiscal year).''.
SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.
(a) Authorization of Appropriations.--Section 415A(b) (20
U.S.C. 1070c(b)) is amended by striking paragraphs (1) and (2)
and inserting the following:
``(1) In general.--There are authorized to be
appropriated to carry out this subpart $200,000,000 for
fiscal year 2009 and such sums as may be necessary for
each of the five succeeding fiscal years.
``(2) Reservation.--For any fiscal year for which
the amount appropriated under paragraph (1) exceeds
$30,000,000, the excess amount shall be available to
carry out section 415E.''.
(b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b))
is amended--
(1) in paragraph (2), by striking ``not in excess
of $5,000 per academic year'' and inserting ``not to
exceed the lesser of $12,500 or the student's cost of
attendance per academic year''; and
(2) in paragraph (9), by striking ``and'' after the
semicolon;
(3) in paragraph (10)--
(A) by striking ``a direct appropriation
of''; and
(B) by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(11) provides notification to eligible students
that such grants are--
``(A) Leveraging Educational Assistance
Partnership Grants; and
``(B) funded by the Federal Government, the
State, and, where applicable, other
contributing partners.''.
(c) Grants for Access and Persistence.--Section 415E (20
U.S.C. 1070c-3a) is amended to read as follows:
``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.
``(a) Purpose.--It is the purpose of this section to expand
college access and increase college persistence by making
allotments to States to enable the States to--
``(1) expand and enhance partnerships with
institutions of higher education, early information and
intervention, mentoring, or outreach programs, private
corporations, philanthropic organizations, and other
interested parties, including community-based
organizations, in order to--
``(A) carry out activities under this
section; and
``(B) provide coordination and cohesion
among Federal, State, and local governmental
and private efforts that provide financial
assistance to help low-income students attend
an institution of higher education;
``(2) provide need-based grants for access and
persistence to eligible low-income students;
``(3) provide early notification to low-income
students of the students' eligibility for financial
aid; and
``(4) encourage increased participation in early
information and intervention, mentoring, or outreach
programs.
``(b) Allotments to States.--
``(1) In general.--
``(A) Authorization.--From sums reserved
under section 415A(b)(2) for each fiscal year,
the Secretary shall make an allotment to each
State that submits an application for an
allotment in accordance with subsection (c) to
enable the State to pay the Federal share, as
described in paragraph (2), of the cost of
carrying out the activities under subsection
(d).
``(B) Determination of allotment.--In
making allotments under subparagraph (A), the
Secretary shall consider the following:
``(i) Continuation of award.--If a
State continues to meet the
specifications established in such
State's application under subsection
(c), the Secretary shall make an
allotment to such State that is not
less than the allotment made to such
State for the previous fiscal year.
``(ii) Priority.--The Secretary
shall give priority in making
allotments to States that meet the
requirements described in paragraph
(2)(B)(ii).
``(2) Federal share.--
``(A) In general.--The Federal share of the
cost of carrying out the activities under
subsection (d) for any fiscal year shall not
exceed 66.66 percent.
``(B) Different percentages.--The Federal
share under this section shall be determined in
accordance with the following:
``(i) The Federal share of the cost
of carrying out the activities under
subsection (d) shall be 57 percent if a
State applies for an allotment under
this section in partnership with any
number of degree-granting institutions
of higher education in the State whose
combined full-time enrollment
represents less than a majority of all
students attending institutions of
higher education in the State, and--
``(I) philanthropic
organizations that are located
in, or that provide funding in,
the State; or
``(II) private corporations
that are located in, or that do
business in, the State.
``(ii) The Federal share of the
cost of carrying out the activities
under subsection (d) shall be 66.66
percent if a State applies for an
allotment under this section in
partnership with any number of degree-
granting institutions of higher
education in the State whose combined
full-time enrollment represents a
majority of all students attending
institutions of higher education in the
State, and--
``(I) philanthropic
organizations that are located
in, or that provide funding in,
the State; or
``(II) private corporations
that are located in, or that do
business in, the State.
``(C) Non-federal share.--
``(i) In general.--The non-Federal
share under this section may be
provided in cash or in kind, fairly
evaluated.
``(ii) In-kind contribution.--For
the purpose of calculating the non-
Federal share under this subparagraph,
an in-kind contribution is a non-cash
contribution that--
``(I) has monetary value,
such as the provision of--
``(aa) room and
board; or
``(bb)
transportation passes;
and
``(II) helps a student meet
the cost of attendance at an
institution of higher
education.
``(iii) Effect on need analysis.--
For the purpose of calculating a
student's need in accordance with part
F, an in-kind contribution described in
clause (ii) shall not be considered an
asset or income of the student or the
student's parent.
``(c) Application for Allotment.--
``(1) In general.--
``(A) Submission.--A State that desires to
receive an allotment under this section on
behalf of a partnership described in paragraph
(3) shall submit an application to the
Secretary at such time, in such manner, and
containing such information as the Secretary
may require.
``(B) Content.--An application submitted
under subparagraph (A) shall include the
following:
``(i) A description of the State's
plan for using the allotted funds.
``(ii) An assurance that the State
will provide matching funds, in cash or
in kind, from State, institutional,
philanthropic, or private funds, of not
less than 33.33 percent of the cost of
carrying out the activities under
subsection (d). The State shall specify
the methods by which matching funds
will be paid. A State that uses non-
Federal funds to create or expand
partnerships with entities described in
subsection (a)(1), in which such
entities match State funds for student
scholarships, may apply such matching
funds from such entities toward
fulfilling the State's matching
obligation under this clause.
``(iii) An assurance that the State
will use funds provided under this
section to supplement, and not
supplant, Federal and State funds
available for carrying out the
activities under this title.
``(iv) An assurance that early
information and intervention,
mentoring, or outreach programs exist
within the State or that there is a
plan to make such programs widely
available.
``(v) A description of the
organizational structure that the State
has in place to administer the
activities under subsection (d),
including a description of how the
State will compile information on
degree completion of students receiving
grants under this section.
``(vi) A description of the steps
the State will take to ensure that
students who receive grants under this
section persist to degree completion.
``(vii) An assurance that the State
has a method in place, such as
acceptance of the automatic zero
expected family contribution
determination described in section
479(c), to identify eligible low-income
students and award State grant aid to
such students.
``(viii) An assurance that the
State will provide notification to
eligible low-income students that
grants under this section are--
``(I) Leveraging
Educational Assistance
Partnership Grants; and
``(II) funded by the
Federal Government and the
State, and, where applicable,
other contributing partners.
``(2) State agency.--The State agency that submits
an application for a State under section 415C(a) shall
be the same State agency that submits an application
under paragraph (1) for such State.
``(3) Partnership.--In applying for an allotment
under this section, the State agency shall apply for
the allotment in partnership with--
``(A) not less than one public and one
private degree-granting institution of higher
education that are located in the State, if
applicable;
``(B) new or existing early information and
intervention, mentoring, or outreach programs
located in the State; and
``(C) not less than one--
``(i) philanthropic organization
located in, or that provides funding
in, the State; or
``(ii) private corporation located
in, or that does business in, the
State.
``(4) Roles of partners.--
``(A) State agency.--A State agency that is
in a partnership receiving an allotment under
this section--
``(i) shall--
``(I) serve as the primary
administrative unit for the
partnership;
``(II) provide or
coordinate non-Federal share
funds, and coordinate
activities among partners;
``(III) encourage each
institution of higher education
in the State to participate in
the partnership;
``(IV) make determinations
and early notifications of
assistance as described under
subsection (d)(2); and
``(V) annually report to
the Secretary on the
partnership's progress in
meeting the purpose of this
section; and
``(ii) may provide early
information and intervention,
mentoring, or outreach programs.
``(B) Degree-granting institutions of
higher education.--A degree-granting
institution of higher education that is in a
partnership receiving an allotment under this
section--
``(i) shall--
``(I) recruit and admit
participating qualified
students and provide such
additional institutional grant
aid to participating students
as agreed to with the State
agency;
``(II) provide support
services to students who
receive grants for access and
persistence under this section
and are enrolled at such
institution; and
``(III) assist the State in
the identification of eligible
students and the dissemination
of early notifications of
assistance as agreed to with
the State agency; and
``(ii) may provide funding for
early information and intervention,
mentoring, or outreach programs or
provide such services directly.
``(C) Programs.--An early information and
intervention, mentoring, or outreach program
that is in a partnership receiving an allotment
under this section shall provide direct
services, support, and information to
participating students.
``(D) Philanthropic organization or private
corporation.--A philanthropic organization or
private corporation that is in a partnership
receiving an allotment under this section shall
provide funds for grants for access and
persistence for participating students, or
provide funds or support for early information
and intervention, mentoring, or outreach
programs.
``(d) Authorized Activities.--
``(1) In general.--
``(A) Establishment of partnership.--Each
State receiving an allotment under this section
shall use the funds to establish a partnership
to award grants for access and persistence to
eligible low-income students in order to
increase the amount of financial assistance
such students receive under this subpart for
undergraduate education expenses.
``(B) Amount of grants.--The amount of a
grant for access and persistence awarded by a
State to a student under this section shall be
not less than--
``(i) the average undergraduate
tuition and mandatory fees at the
public institutions of higher education
in the State where the student resides
that are of the same type of
institution as the institution of
higher education the student attends;
minus
``(ii) other Federal and State aid
the student receives.
``(C) Special rules.--
``(i) Partnership institutions.--A
State receiving an allotment under this
section may restrict the use of grants
for access and persistence under this
section by awarding the grants only to
students attending institutions of
higher education that are participating
in the partnership.
``(ii) Out-of-state institutions.--
If a State provides grants through
another program under this subpart to
students attending institutions of
higher education located in another
State, grants awarded under this
section may be used at institutions of
higher education located in another
State.
``(2) Early notification.--
``(A) In general.--Each State receiving an
allotment under this section shall annually
notify low-income students in grades seven
through 12 in the State, and their families, of
their potential eligibility for student
financial assistance, including an access and
persistence grant, to attend an institution of
higher education.
``(B) Content of notice.--The notice under
subparagraph (A)--
``(i) shall include--
``(I) information about
early information and
intervention, mentoring, or
outreach programs available to
the student;
``(II) information that a
student's eligibility for a
grant for access and
persistence is enhanced through
participation in an early
information and intervention,
mentoring, or outreach program;
``(III) an explanation that
student and family eligibility
for, and participation in,
other Federal means-tested
programs may indicate
eligibility for a grant for
access and persistence and
other student aid programs;
``(IV) a nonbinding
estimate of the total amount of
financial aid that a low-income
student with a similar income
level may expect to receive,
including an estimate of the
amount of a grant for access
and persistence and an estimate
of the amount of grants, loans,
and all other available types
of aid from the major Federal
and State financial aid
programs;
``(V) an explanation that
in order to be eligible for a
grant for access and
persistence, at a minimum, a
student shall--
``(aa) meet the
requirement under
paragraph (3);
``(bb) graduate
from secondary school;
and
``(cc) enroll at an
institution of higher
education--
``(AA) that is a
partner in the
partnership; or
``(BB) with respect
to which attendance is
permitted under
subsection
(d)(1)(C)(ii);
``(VI) information on any
additional requirements (such
as a student pledge detailing
student responsibilities) that
the State may impose for
receipt of a grant for access
and persistence under this
section; and
``(VII) instructions on how
to apply for a grant for access
and persistence and an
explanation that a student is
required to file a Free
Application for Federal Student
Aid authorized under section
483(a) to be eligible for such
grant and assistance from other
Federal and State financial aid
programs; and
``(ii) may include a disclaimer
that grant awards for access and
persistence are contingent on--
``(I) a determination of
the student's financial
eligibility at the time of the
student's enrollment at an
institution of higher education
that is a partner in the
partnership or qualifies under
subsection (d)(1)(C)(ii);
``(II) annual Federal and
State spending for higher
education; and
``(III) other aid received
by the student at the time of
the student's enrollment at
such institution of higher
education.
``(3) Eligibility.--In determining which students
are eligible to receive grants for access and
persistence, the State shall ensure that each such
student complies with the following subparagraph (A) or
(B):
``(A) Meets not less than two of the
following criteria, with priority given to
students meeting all of the following criteria:
``(i) Has an expected family
contribution equal to zero, as
determined under part F, or a
comparable alternative based upon the
State's approved criteria in section
415C(b)(4).
``(ii) Qualifies for the State's
maximum undergraduate award, as
authorized under section 415C(b).
``(iii) Is participating in, or has
participated in, a Federal, State,
institutional, or community early
information and intervention,
mentoring, or outreach program, as
recognized by the State agency
administering activities under this
section.
``(B) Is receiving, or has received, a
grant for access and persistence under this
section, in accordance with paragraph (5).
``(4) Grant award.--Once a student, including those
students who have received early notification under
paragraph (2) from the State, applies for admission to
an institution that is a partner in the partnership,
files a Free Application for Federal Student Aid and
any related State form, and is determined eligible by
the State under paragraph (3), the State shall--
``(A) issue the student a preliminary award
certificate for a grant for access and
persistence with estimated award amounts; and
``(B) inform the student that payment of
the grant for access and persistence award
amounts is subject to certification of
enrollment and award eligibility by the
institution of higher education.
``(5) Duration of award.--An eligible student who
receives a grant for access and persistence under this
section shall receive such grant award for each year of
such student's undergraduate education in which the
student remains eligible for assistance under this
title, including pursuant to section 484(c), and
remains financially eligible as determined by the
State, except that the State may impose reasonable time
limits to degree completion.
``(e) Administrative Cost Allowance.--A State that receives
an allotment under this section may reserve not more than two
percent of the funds made available annually through the
allotment for State administrative functions required to carry
out this section.
``(f) Statutory and Regulatory Relief for Institutions of
Higher Education.--The Secretary may grant, upon the request of
an institution of higher education that is in a partnership
described in subsection (b)(2)(B)(ii) and that receives an
allotment under this section, a waiver for such institution
from statutory or regulatory requirements that inhibit the
ability of the institution to successfully and efficiently
participate in the activities of the partnership.
``(g) Applicability Rule.--The provisions of this subpart
that are not inconsistent with this section shall apply to the
program authorized by this section.
``(h) Maintenance of Effort Requirement.--Each State
receiving an allotment under this section for a fiscal year
shall provide the Secretary with an assurance that the
aggregate amount expended per student or the aggregate
expenditures by the State, from funds derived from non-Federal
sources, for the authorized activities described in subsection
(d) for the preceding fiscal year were not less than the amount
expended per student or the aggregate expenditure by the State
for the activities for the second preceding fiscal year.
``(i) Special Rule.--Notwithstanding subsection (h), for
purposes of determining a State's share of the cost of the
authorized activities described in subsection (d), the State
shall consider only those expenditures from non-Federal sources
that exceed the State's total expenditures for need-based
grants, scholarships, and work-study assistance for fiscal year
1999 (including any such assistance provided under this
subpart).
``(j) Continuation and Transition.--For the two-year period
that begins on the date of enactment of the Higher Education
Opportunity Act, the Secretary shall continue to award grants
under section 415E of the Higher Education Act of 1965 as such
section existed on the day before the date of enactment of the
Higher Education Opportunity Act to States that choose to apply
for grants under such predecessor section.
``(k) Reports.--Not later than three years after the date
of enactment of the Higher Education Opportunity Act and
annually thereafter, the Secretary shall submit a report
describing the activities and the impact of the partnerships
under this section to the authorizing committees.''.
SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN
MIGRANT AND SEASONAL FARMWORK.
Section 418A (20 U.S.C. 1070d-2) is amended--
(1) in subsection (b)--
(A) in paragraph (1)(B)(i), by striking
``parents'' and inserting ``immediate family'';
(B) in paragraph (3)(B), by inserting
``(including preparation for college entrance
examinations)'' after ``college program'';
(C) in paragraph (5), by striking
``weekly'';
(D) in paragraph (7), by striking ``and''
after the semicolon;
(E) in paragraph (8)--
(i) by inserting ``(such as
transportation and child care)'' after
``services''; and
(ii) by striking the period at the
end and inserting ``; and''; and
(F) by adding at the end the following:
``(9) other activities to improve persistence and
retention in postsecondary education.'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking ``parents''
and inserting ``immediate
family''; and
(II) by striking ``(or such
part's predecessor
authority)'';
(ii) in subparagraph (B)--
(I) in the matter preceding
clause (i), by inserting ``to
improve placement, persistence,
and retention in postsecondary
education,'' after
``services''; and
(II) in clause (i), by
striking ``and career'' and
inserting ``career, and
economic education or personal
finance'';
(iii) in subparagraph (E), by
striking ``and'' after the semicolon;
(iv) by redesignating subparagraph
(F) as subparagraph (G);
(v) by inserting after subparagraph
(E) the following:
``(F) internships; and''; and
(vi) in subparagraph (G) (as
redesignated by clause (iv)), by
striking ``support services'' and
inserting ``essential supportive
services (such as transportation and
child care)'' ; and
(B) in paragraph (2)--
(i) in subparagraph (A), by
striking ``and'' after the semicolon;
(ii) in subparagraph (B), by
striking the period at the end and
inserting ``, and coordinating such
services, assistance, and aid with
other non-program services, assistance,
and aid, including services,
assistance, and aid provided by
community-based organizations, which
may include mentoring and guidance;
and''; and
(iii) by adding at the end the
following:
``(C) for students attending two-year institutions
of higher education, encouraging the students to
transfer to four-year institutions of higher education,
where appropriate, and monitoring the rate of transfer
of such students.'';
(3) in subsection (e), by striking ``section
402A(c)(1)'' and inserting ``section 402A(c)(2)'';
(4) in subsection (f)--
(A) in paragraph (1), by striking
``$150,000'' and inserting ``$180,000''; and
(B) in paragraph (2), by striking
``$150,000'' and inserting ``$180,000'';
(5) by redesignating subsections (g) and (h) as
subsections (h) and (i), respectively;
(6) by inserting after subsection (f) the
following:
``(g) Reservation and Allocation of Funds.--From the
amounts made available under subsection (i), the Secretary--
``(1) may reserve not more than a total of \1/2\ of
one percent for outreach activities, technical
assistance, and professional development programs
relating to the programs under subsection (a);
``(2) for any fiscal year for which the amount
appropriated to carry out this section is equal to or
greater than $40,000,000, shall, in awarding grants
from the remainder of such amounts--
``(A) make available not less than 45
percent of such remainder for the high school
equivalency programs and not less than 45
percent of such remainder for the college
assistance migrant programs;
``(B) award the rest of such remainder for
high school equivalency programs or college
assistance migrant programs based on the
number, quality, and promise of the
applications; and
``(C) consider the need to provide an
equitable geographic distribution of such
grants; and
``(3) for any fiscal year for which the amount
appropriated to carry out this section is less than
$40,000,000, shall, in awarding grants from the
remainder of such amounts make available the same
percentage of funds to the high school equivalency
program and to the college assistance migrant program
as was made available for each such program for the
fiscal year preceding the fiscal year for which the
grant was made.'';
(7) by striking subsection (h) (as redesignated by
paragraph (5)) and inserting the following:
``(h) Data Collection.--The Secretary shall--
``(1) annually collect data on persons receiving
services authorized under this subpart regarding such
persons' rates of secondary school graduation, entrance
into postsecondary education, and completion of
postsecondary education, as applicable;
``(2) not less often than once every two years,
prepare and submit to the authorizing committees a
report based on the most recently available data under
paragraph (1); and
``(3) make such report available to the public.'';
and
(8) by striking subsection (i) (as redesignated by
paragraph (5)) and inserting the following:
``(i) Authorization of Appropriations.--For the purpose of
making grants and contracts under this section, there are
authorized to be appropriated $75,000,000 for fiscal year 2009
and such sums as may be necessary for the each of the five
succeeding fiscal years.''.
SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.
(a) Eligibility of Scholars.--Section 419F(a) (20 U.S.C.
1070d-36(a)) is amended by inserting ``(or a home school,
whether treated as a home school or a private school under
State law)'' after ``public or private secondary school''.
(b) Authorization of Appropriations.--Section 419K (20
U.S.C. 1070d-41) is amended by striking ``$45,000,000 for
fiscal year 1999'' and all that follows through the period and
inserting ``such sums as may be necessary for fiscal year 2009
and each of the five succeeding fiscal years.''.
SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
(a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C.
1070e(b)(2)(B)) is amended--
(1) by striking ``A grant'' and inserting the
following:
``(i) In general.--Except as
provided in clause (ii), a grant''; and
(2) by adding at the end the following:
``(ii) Increase trigger.--For any
fiscal year for which the amount
appropriated under the authority of
subsection (g) is equal to or greater
than $20,000,000, a grant under this
section shall be awarded in an amount
that is not less than $30,000.''.
(b) Eligible Institutions.--Section 419N(b)(4) (20 U.S.C.
1070e(b)(4)) is amended by inserting ``, except that for any
fiscal year for which the amount appropriated to carry out this
section is equal to or greater than $20,000,000, this sentence
shall be applied by substituting `$250,000' for `$350,000'''
before the period.
(c) Definition of Low-Income Student.--Paragraph (7) of
section 419N(b) (20 U.S.C. 1070e(b)) is amended to read as
follows:
``(7) Definition of low-income student.--For the
purpose of this section, the term `low-income student'
means a student--
``(A) who is eligible to receive a Federal
Pell Grant for the award year for which the
determination is made; or
``(B) who would otherwise be eligible to
receive a Federal Pell Grant for the award year
for which the determination is made, except
that the student fails to meet the requirements
of--
``(i) section 401(c)(1) because the
student is enrolled in a graduate or
first professional course of study; or
``(ii) section 484(a)(5) because
the student is in the United States for
a temporary purpose.''.
(d) Publicity.--Section 419N(b) (20 U.S.C. 1070e(b)) is
further amended by adding at the end the following new
paragraph:
``(8) Publicity.--The Secretary shall publicize the
availability of grants under this section in
appropriate periodicals, in addition to publication in
the Federal Register, and shall inform appropriate
educational organizations of such availability.''.
(e) Reporting Requirements.--Section 419N(e) (20 U.S.C.
1070e(e)) is amended--
(1) in paragraph (1)(A), by striking ``18 months,''
and all that follows through the end and inserting
``annually.''; and
(2) in paragraph (2)--
(A) by striking ``the third annual grant
payment'' and inserting ``continuation
awards''; and
(B) by striking ``the 18-month report'' and
inserting ``the reports''.
(f) Authorization of Appropriations.--Section 419N(g) (20
U.S.C. 1070e(g)) is amended by striking ``$45,000,000 for
fiscal year 1999'' and all that follows through the period and
inserting ``such sums as may be necessary for fiscal year 2009
and each of the five succeeding fiscal years.''.
SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.
Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.)
is repealed.
SEC. 412. TEACH GRANTS.
(a) Amendments.--Subpart 9 of part A of title IV (20 U.S.C.
1070g et seq.) is amended--
(1) in section 420N (20 U.S.C. 1070g-2)--
(A) in subsection (b)--
(i) in paragraph (1)(E), by
striking ``and'' after the semicolon;
(ii) in paragraph (2), by striking
the period at the end and inserting ``;
and''; and
(iii) by adding at the end the
following new paragraph:
``(3) contains, or is accompanied by, a plain-
language disclosure form developed by the Secretary
that clearly describes the nature of the TEACH Grant
award, the service obligation, and the loan repayment
requirements that are the consequence of the failure to
complete the service obligation.''; and
(B) by adding at the end the following new
subsection:
``(d) Additional Administrative Provisions.--
``(1) Change of high-need designation.--If a
recipient of an initial grant under this subpart has
acquired an academic degree, or expertise, in a field
that was, at the time of the recipient's application
for that grant, designated as high need in accordance
with subsection (b)(1)(C)(vii), but is no longer so
designated, the grant recipient may fulfill the service
obligation described in subsection (b)(1) by teaching
in that field.
``(2) Extenuating circumstances.--The Secretary
shall establish, by regulation, categories of
extenuating circumstances under which a recipient of a
grant under this subpart who is unable to fulfill all
or part of the recipient's service obligation may be
excused from fulfilling that portion of the service
obligation.''; and
(2) by adding at the end the following new section:
``SEC. 420P. PROGRAM REPORT.
``Not later than two years after the date of enactment of
the Higher Education Opportunity Act and every two years
thereafter, the Secretary shall prepare and submit to the
authorizing committees a report on TEACH grants with respect to
the schools and students served by recipients of such grants.
Such report shall take into consideration information related
to--
``(1) the number of TEACH grant recipients;
``(2) the degrees obtained by such recipients;
``(3) the location, including the school, local
educational agency, and State, where the recipients
completed the service agreed to under section 420N(b)
and the subject taught;
``(4) the duration of such service; and
``(5) any other data necessary to conduct such
evaluation.''.
(b) Effective Date.--The amendments made by subsection
(a)(1) shall take effect on July 1, 2010.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 421. LIMITATIONS ON AMOUNTS OF LOANS COVERED BY FEDERAL INSURANCE.
Section 424(a) (20 U.S.C. 1074(a)) is amended--
(1) by striking ``2012'' and inserting ``2014'';
and
(2) by striking ``2016'' and inserting ``2018''.
SEC. 422. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.
(a) Definitions.--
(1) Amendments.--Subparagraph (C) of section
428(a)(2) (20 U.S.C. 1078(a)(2)) is amended to read as
follows:
``(C) For the purpose of this paragraph--
``(i) a student's cost of attendance shall
be determined under section 472;
``(ii) a student's estimated financial
assistance means, for the period for which the
loan is sought--
``(I) the amount of assistance such
student will receive under subpart 1 of
part A (as determined in accordance
with section 484(b)), subpart 3 of part
A, and parts C and E; plus
``(II) other scholarship, grant, or
loan assistance, but excluding--
``(aa) any national service
education award or post-service
benefit under title I of the
National and Community Service
Act of 1990; and
``(bb) any veterans'
education benefits as defined
in section 480(c); and
``(iii) the determination of need and of
the amount of a loan by an eligible institution
under subparagraph (B) with respect to a
student shall be calculated in accordance with
part F.''.
(2) Effective date.--The amendments made by
paragraph (1) shall take effect on July 1, 2010.
(b) Duration of Authority To Make Interest Subsidized
Loans.--Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended--
(1) by striking ``2012'' and inserting ``2014'';
and
(2) by striking ``2016'' and inserting ``2018''.
(c) Insurance Program Agreements.--
(1) Deferment information requirements.--Section
428(b)(1)(Y) (20 U.S.C. 1078(b)(1)(Y)) is amended--
(A) by striking clause (i) and inserting
the following:
``(i) the lender shall determine
the eligibility of a borrower for a
deferment described in subparagraph
(M)(i) based on--
``(I) receipt of a request
for deferment from the borrower
and documentation of the
borrower's eligibility for the
deferment;
``(II) receipt of a newly
completed loan application that
documents the borrower's
eligibility for a deferment;
``(III) receipt of student
status information documenting
that the borrower is enrolled
on at least a half-time basis;
or
``(IV) the lender's
confirmation of the borrower's
half-time enrollment status
through use of the National
Student Loan Data System, if
the confirmation is requested
by the institution of higher
education;'';
(B) in clause (ii), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(iii) the lender shall, at the
time the lender grants a deferment to a
borrower who received a loan under
section 428H and is eligible for a
deferment under subparagraph (M) of
this paragraph, provide information to
the borrower to assist the borrower in
understanding the impact of the
capitalization of interest on the
borrower's loan principal and on the
total amount of interest to be paid
during the life of the loan.''.
(2) Transfer information requirements.--Section
428(b)(2)(F)(i) (20 U.S.C. 1078(b)(2)(F)(i)) is
amended--
(A) in subclause (III), by striking ``and''
after the semicolon;
(B) in subclause (IV), by striking ``and''
after the semicolon; and
(C) by adding at the end the following:
``(V) the effective date of
the transfer;
``(VI) the date on which
the current servicer (as of the
date of the notice) will stop
accepting payments; and
``(VII) the date on which
the new servicer will begin
accepting payments; and''.
(d) Restrictions on Inducements, Payments, Mailings, and
Advertising.--Paragraph (3) of section 428(b) (20 U.S.C.
1078(b)(3)) is amended to read as follows:
``(3) Restrictions on inducements, payments,
mailings, and advertising.--A guaranty agency shall
not--
``(A) offer, directly or indirectly,
premiums, payments, stock or other securities,
prizes, travel, entertainment expenses, tuition
payment or reimbursement, or other inducements
to--
``(i) any institution of higher
education or the employees of an
institution of higher education in
order to secure applicants for loans
made under this part; or
``(ii) any lender, or any agent,
employee, or independent contractor of
any lender or guaranty agency, in order
to administer or market loans made
under this part (other than a loan made
as part of the guaranty agency's
lender-of-last-resort program pursuant
to section 428(j)), for the purpose of
securing the designation of the
guaranty agency as the insurer of such
loans;
``(B) conduct unsolicited mailings, by
postal or electronic means, of student loan
application forms to students enrolled in
secondary schools or postsecondary educational
institutions, or to the families of such
students, except that applications may be
mailed, by postal or electronic means, to
students or borrowers who have previously
received loans guaranteed under this part by
the guaranty agency;
``(C) perform, for an institution of higher
education participating in a program under this
title, any function that such institution is
required to perform under this title, except
that the guaranty agency may perform functions
on behalf of such institution in accordance
with section 485(b);
``(D) pay, on behalf of an institution of
higher education, another person to perform any
function that such institution is required to
perform under this title, except that the
guaranty agency may perform functions on behalf
of such institution in accordance with section
485(b); or
``(E) conduct fraudulent or misleading
advertising concerning loan availability,
terms, or conditions.
It shall not be a violation of this paragraph for a
guaranty agency to provide technical assistance to
institutions of higher education comparable to the
technical assistance provided to institutions of higher
education by the Department.''.
(e) Information Regarding Income-Based Repayment Plans.--
(1) In general.--Section 428(b)(9)(A) (20 U.S.C.
1078(b)(9)(A)) is amended--
(A) in clause (iii), by striking ``and''
after the semicolon;
(B) in clause (iv), by striking the period
at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(v) beginning July 1, 2009, an
income-based repayment plan that
enables a borrower who has a partial
financial hardship to make a lower
monthly payment in accordance with
section 493C, except that the plan
described in this clause shall not be
available to a borrower for a loan
under section 428B made on behalf of a
dependent student or for a
consolidation loan under section 428C,
if the proceeds of such loan were used
to discharge the liability of a loan
under section 428B made on behalf of a
dependent student.''.
(2) Conforming amendment.--Section 428(b)(1)(L)(i)
(20 U.S.C. 1078(b)(1)(L)(i)) is amended by striking
``clause (ii) or (iii)'' and inserting ``clause (ii),
(iii), or (v)''.
(f) Forbearance Information Requirements in Guaranty
Agreements.--Section 428(c) (20 U.S.C. 1078(c)) is amended--
(1) in paragraph (2)(H)(i), by striking
``preclaims'' and inserting ``default aversion''; and
(2) in paragraph (3)(C)--
(A) in clause (i), by striking ``and''
after the semicolon;
(B) in clause (ii), by striking ``and''
after the semicolon; and
(C) by inserting after clause (ii) the
following:
``(iii) the lender shall, at the
time of granting a borrower
forbearance, provide information to the
borrower to assist the borrower in
understanding the impact of
capitalization of interest on the
borrower's loan principal and total
amount of interest to be paid during
the life of the loan; and
``(iv) the lender shall contact the
borrower not less often than once every
180 days during the period of
forbearance to inform the borrower of--
``(I) the amount of unpaid
principal and the amount of
interest that has accrued since
the last statement of such
amounts provided to the
borrower by the lender;
``(II) the fact that
interest will accrue on the
loan for the period of
forbearance;
``(III) the amount of
interest that will be
capitalized, and the date on
which capitalization will
occur;
``(IV) the option of the
borrower to pay the interest
that has accrued before the
interest is capitalized; and
``(V) the borrower's option
to discontinue the forbearance
at any time; and''.
(g) Applicability of Usury Laws.--
(1) Amendment.--Section 428(d) (20 U.S.C. 1078(d))
is amended by inserting ``and section 207 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 527)''
after ``this Act''.
(2) Conforming amendment.--Section 438 (20 U.S.C.
1087-1) is amended by adding at the end the following
new subsection:
``(g) Special Rule.--With respect to any loan made under
this part for which the interest rate is determined under the
Servicemembers Civil Relief Act (50 U.S.C. App. 527), the
applicable interest rate to be subtracted in calculating the
special allowance for such loan under this section shall be the
interest rate determined under that Act for such loan.''.
(3) Effective dates.--The amendment made by
paragraph (1) shall take effect on the date of
enactment of this Act, and the amendment made by
paragraph (2) shall take effect for loans for which the
first disbursement is made on or after July 1, 2008.
(h) Repeal of Duplicative Notice Requirement.--Subsection
(e) of section 428 (20 U.S.C. 1078(e)) is repealed.
(i) Information on Defaults.--Section 428(k) (20 U.S.C.
1078(k)) is amended by adding at the end the following:
``(4) Provision of information to borrowers in
default.--Each guaranty agency that has received a
default claim from a lender regarding a borrower, shall
provide the borrower in default, on not less than two
separate occasions, with a notice, in simple and
understandable terms, of not less than the following
information:
``(A) The options available to the borrower
to remove the borrower's loan from default.
``(B) The relevant fees and conditions
associated with each option.''.
(j) Authority to Require Income-Based Repayment.--Section
428(m) (20 U.S.C. 1078(m)) is amended--
(1) in the subsection heading, by inserting ``and
Income-Based'' after ``Income Contingent'';
(2) in paragraph (1)--
(A) by inserting ``or income-based
repayment plan'' before ``, the terms and
conditions''; and
(B) by inserting ``or an income-based
repayment plan under section 493C, as the case
may be'' before the period at the end; and
(3) in the paragraph heading of paragraph (2), by
inserting ``or income-based'' after ``income
contingent''.
SEC. 423. VOLUNTARY FLEXIBLE AGREEMENTS.
Section 428A(a) (20 U.S.C. 1078-1(a)) is amended by adding
at the end the following:
``(3) Report required.--
``(A) In general.--The Secretary, in
consultation with the guaranty agencies
operating under voluntary flexible agreements,
shall report on an annual basis to the
authorizing committees regarding the program
outcomes that the voluntary flexible agreements
have had with respect to--
``(i) program integrity and program
and cost efficiencies, delinquency
prevention, and default aversion,
including a comparison of such outcomes
to such outcomes for each guaranty
agency operating under an agreement
under subsection (b) or (c) of section
428;
``(ii) consumer education programs
described in section 433A; and
``(iii) the availability and
delivery of student financial aid.
``(B) Contents.--Each report described in
subparagraph (A) shall include--
``(i) a description of each
voluntary flexible agreement and the
performance goals established by the
Secretary for each agreement;
``(ii) a list of--
``(I) guaranty agencies
operating under voluntary
flexible agreements;
``(II) the specific
statutory or regulatory waivers
provided to each such guaranty
agency; and
``(III) any other waivers
provided to other guaranty
agencies under paragraph (1);
``(iii) a description of the
standards by which each guaranty
agency's performance under the guaranty
agency's voluntary flexible agreement
was assessed and the degree to which
each guaranty agency achieved the
performance standards;
``(iv) an analysis of the fees paid
by the Secretary, and the costs and
efficiencies achieved under each
voluntary flexible agreement; and
``(v) an identification of
promising practices for program
improvement that could be replicated by
other guaranty agencies.''.
SEC. 424. FEDERAL PLUS LOANS.
(a) Amendments.--Section 428B (20 U.S.C. 1078-2) is
amended--
(1) in subsection (a)(3)(B)(i), by striking
subclause (II) and inserting the following:
``(II) does not otherwise have an
adverse credit history, as determined
by the lender in accordance with the
regulations promulgated pursuant to
paragraph (1)(A), as such regulations
were in effect on the day before the
date of enactment of the Ensuring
Continued Access to Student Loans Act
of 2008.''; and
(2) in subsection (d), by striking paragraphs (1)
and (2) and inserting the following:
``(1) Commencement of repayment.--Repayment of
principal on loans made under this section shall
commence not later than 60 days after the date such
loan is disbursed by the lender, subject to deferral--
``(A)(i) during any period during which the
parent borrower or the graduate or professional
student borrower meets the conditions required
for a deferral under section 427(a)(2)(C) or
428(b)(1)(M); and
``(ii) upon the request of the parent
borrower, during any period during which the
student on whose behalf the loan was borrowed
by the parent borrower meets the conditions
required for a deferral under section
427(a)(2)(C)(i)(I) or 428(b)(1)(M)(i)(I); and
``(B)(i) in the case of a parent borrower,
upon the request of the parent borrower, during
the 6-month period beginning on the later of--
``(I) the day after the date the
student on whose behalf the loan was
borrowed ceases to carry at least one-
half the normal full-time academic
workload (as determined by the
institution); or
``(II) if the parent borrower is
also a student, the day after the date
such parent borrower ceases to carry at
least one-half such a workload; and
``(ii) in the case of a graduate or
professional student borrower, during the 6-
month period beginning on the day after the
date such student ceases to carry at least one-
half the normal full-time academic workload (as
determined by the institution).
``(2) Capitalization of interest.--
``(A) In general.--Interest on loans made
under this section for which payments of
principal are deferred pursuant to paragraph
(1) shall, if agreed upon by the borrower and
the lender--
``(i) be paid monthly or quarterly;
or
``(ii) be added to the principal
amount of the loan not more frequently
than quarterly by the lender.
``(B) Insurable limits.--Capitalization of
interest under this paragraph shall not be
deemed to exceed the annual insurable limit on
account of the borrower.''.
(b) Conforming Amendment.--Section 428(b)(7)(C) (20 U.S.C.
1078(b)(7)(C)) is amended by striking ``section'' and all that
follows through ``428C'' and inserting ``section 428B or
428C''.
(c) Effective Date.--The amendments made by this section
shall take effect for loans for which the first disbursement is
made on or after July 1, 2008.
SEC. 425. FEDERAL CONSOLIDATION LOANS.
(a) Eligible Borrower.--Section 428C(a)(3)(B)(i)(V) (20
U.S.C. 1078-3(a)(3)(B)(i)(V)) is amended--
(1) in item (aa), by striking ``or'' after the
semicolon;
(2) in item (bb), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(cc) for the purpose of using the
no accrual of interest for active duty
service members benefit offered under
section 455(o).''.
(b) Consolidation Loan Lender Agreements.--
(1) In general.--Section 428C(b)(1) (20 U.S.C.
1078-3(b)(1)) is amended--
(A) in subparagraph (E), by striking
``and'' after the semicolon;
(B) by redesignating subparagraph (F) as
subparagraph (G); and
(C) by inserting after subparagraph (E) the
following:
``(F) that the lender shall disclose to a
prospective borrower, in simple and
understandable terms, at the time the lender
provides an application for a consolidation
loan--
``(i) whether consolidation would
result in a loss of loan benefits under
this part or part D, including loan
forgiveness, cancellation, and
deferment;
``(ii) with respect to Federal
Perkins Loans under part E--
``(I) that if a borrower
includes a Federal Perkins Loan
under part E in the
consolidation loan, the
borrower will lose all
interest-free periods that
would have been available for
the Federal Perkins Loan, such
as--
``(aa) the periods
during which no
interest accrues on
such loan while the
borrower is enrolled in
school at least half-
time;
``(bb) the grace
period under section
464(c)(1)(A); and
``(cc) the periods
during which the
borrower's student loan
repayments are deferred
under section
464(c)(2);
``(II) that if a borrower
includes a Federal Perkins Loan
in the consolidation loan, the
borrower will no longer be
eligible for cancellation of
part or all of the Federal
Perkins Loan under section
465(a); and
``(III) the occupations
listed in section 465 that
qualify for Federal Perkins
Loan cancellation under section
465(a);
``(iii) the repayment plans that
are available to the borrower;
``(iv) the options of the borrower
to prepay the consolidation loan, to
pay such loan on a shorter schedule,
and to change repayment plans;
``(v) that borrower benefit
programs for a consolidation loan may
vary among different lenders;
``(vi) the consequences of default
on the consolidation loan; and
``(vii) that by applying for a
consolidation loan, the borrower is not
obligated to agree to take the
consolidation loan; and''.
(2) Consolidation loans.--Section 428C(b)(5) (20
U.S.C. 1078-3(b)(5)) is amended--
(A) by inserting after the first sentence
the following: ``In addition, in the event that
a borrower chooses to obtain a consolidation
loan for the purposes of using the no accrual
of interest for active duty service members
program offered under section 455(o), the
Secretary shall offer a Federal Direct
Consolidation loan to any such borrower who
applies for participation in such program.'';
and
(B) by striking ``Such direct consolidation
loan'' and inserting ``A direct consolidation
loan offered under this paragraph''.
(3) Conforming amendment.--Section 455(g) (20
U.S.C. 1087e(g)) is amended by striking ``section
428C(b)(1)(F)'' and inserting ``section
428C(b)(1)(G)''.
(c) Technical Amendment.--Section 203(b)(2)(C) of the
College Cost Reduction and Access Act (121 Stat. 794) is
amended by striking ``the second sentence'' and inserting ``the
third sentence''.
(d) Income-Based Repayment.--
(1) Amendments.--Section 428C(c) (20 U.S.C. 1078-
3(c)) is amended--
(A) in the matter preceding clause (i) of
paragraph (2)(A)--
(i) by striking ``or income-
sensitive'' and inserting ``income-
sensitive, or income-based''; and
(ii) by inserting ``or income-
based'' after ``such income-
sensitive''; and
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) by inserting ``except
in the case of an income-based
repayment schedule under
section 493C'', before ``a
repayment''; and
(II) by striking ``and''
after the semicolon;
(ii) in subparagraph (B), by
striking the period at the end and
inserting ``; and''; and
(iii) by adding at the end the
following:
``(C) an income-based repayment schedule
under section 493C shall not be available to a
consolidation loan borrower who used the
proceeds of the loan to discharge the liability
on a loan under section 428B, or a Federal
Direct PLUS loan, made on behalf of a dependent
student.''.
(2) Effective date.--The amendments made by this
subsection shall take effect on July 1, 2009.
(e) Extension of Consolidation Loan Authority.--Section
428C(e) (20 U.S.C. 1078-3(e)) is amended by striking ``2012''
and inserting ``2014''.
SEC. 426. DEFAULT REDUCTION PROGRAM.
Section 428F (20 U.S.C. 1078-6) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(A), by adding at the
end the following: ``Upon the sale of the loan
to an eligible lender, the guaranty agency or
other holder of the loan shall request any
consumer reporting agency to which the guaranty
agency or holder, as applicable, reported the
default of the loan, to remove the record of
default from the borrower's credit history.'';
and
(B) by adding at the end the following:
``(5) Limitation.--A borrower may obtain the
benefits available under this subsection with respect
to rehabilitating a loan only one time per loan.''; and
(2) by adding at the end the following:
``(c) Financial and Economic Literacy.--Each program
described in subsection (b) shall include making available
financial and economic education materials for a borrower who
has rehabilitated a loan.''.
SEC. 427. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.
(a) Special Rule.--Section 428G(a) (20 U.S.C. 1078-7(a)) is
amended by adding at the end the following:
``(4) Amendment to special rule.--Beginning on
October 1, 2011, the special rule under paragraph (3)
shall be applied by substituting `15 percent' for `10
percent'.''.
(b) Requirements for Disbursements to First Year
Students.--Section 428G(b) (20 U.S.C. 1078-7(b)) is amended by
adding at the end the following:
``(3) Amendment to cohort default rate exemption.--
Beginning on October 1, 2011, the exemption to the
requirements of paragraph (1) in the second sentence of
such paragraph shall be applied by substituting `15
percent' for `10 percent'.''.
SEC. 428. UNSUBSIDIZED STAFFORD LOAN LIMITS.
(a) Amendments.--Section 428H(d) (20 U.S.C. 1078-8(d)) is
amended--
(1) in paragraph (2)--
(A) in the paragraph heading, by striking
``Graduate and professional students'' and
inserting ``Graduate, professional, and
independent postbaccalaureate students''; and
(B) in subparagraph (A)--
(i) in the matter preceding clause
(i), by inserting ``, or a student
described in clause (ii),'' after
``graduate or professional student'';
and
(ii) by striking clause (ii) and
inserting the following:
``(ii) notwithstanding paragraph
(4), in the case of an independent
student, or a dependent student whose
parents are unable to borrow under
section 428B or the Federal Direct PLUS
Loan Program, who has obtained a
baccalaureate degree and who is
enrolled in coursework specified in
paragraph (3)(B) or (4)(B) of section
484(b)--
``(I) $7,000 for coursework
necessary for enrollment in a
graduate or professional
program; and
``(II) $7,000 for
coursework necessary for a
professional credential or
certification from a State
required for employment as a
teacher in an elementary or
secondary school,''; and
(2) in paragraph (4)(A), by striking clause (iii)
and inserting the following:
``(iii) in the case of such a
student enrolled in coursework
specified in--
``(I) section 484(b)(3)(B),
$6,000; or
``(II) section
484(b)(4)(B), $7,000.''.
(b) Effective Date.--The amendments made by this section
shall take effect for loans for which the first disbursement is
made on or after July 1, 2008.
SEC. 429. LOAN FORGIVENESS FOR TEACHERS EMPLOYED BY EDUCATIONAL SERVICE
AGENCIES.
Section 428J (20 U.S.C. 1078-10) is amended--
(1) in subsection (b)(1)(A)--
(A) by inserting ``or location'' after ``a
school''; and
(B) by inserting ``or locations'' after
``schools'';
(2) in subsection (c)(1), by striking the second
sentence;
(3) in subsection (c)(3)(B)(iii), by inserting
``or, in the case of a teacher who is employed by an
educational service agency, as certified by the chief
administrative officer of such agency,'' after
``borrower is employed,''; and
(4) in subsection (g), by striking paragraph (2)
and inserting the following:
``(2) Prevention of double benefits.--No borrower
may, for the same service, receive a benefit under both
this section and--
``(A) section 428K;
``(B) section 455(m);
``(C) section 460; or
``(D) subtitle D of title I of the National
and Community Service Act of 1990 (42 U.S.C.
12571 et seq.).''.
SEC. 430. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
Section 428K (20 U.S.C. 1078-11) is amended to read as
follows:
``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
``(a) Program Authorized.--
``(1) Loan forgiveness authorized.--The Secretary
shall forgive, in accordance with this section, the
qualified loan amount described in subsection (c) of
the student loan obligation of a borrower who--
``(A) is employed full-time in an area of
national need, as described in subsection (b);
and
``(B) is not in default on a loan for which
the borrower seeks forgiveness.
``(2) Method of loan forgiveness.--To provide loan
forgiveness under paragraph (1), the Secretary is
authorized to carry out a program--
``(A) through the holder of the loan, to
assume the obligation to repay a qualified loan
amount for a loan made, insured, or guaranteed
under this part (other than an excepted PLUS
loan or an excepted consolidation loan (as such
terms are defined in section 493C(a))); and
``(B) to cancel a qualified loan amount for
a loan made under part D of this title (other
than an excepted PLUS loan or an excepted
consolidation loan).
``(3) Regulations.--The Secretary is authorized to
issue such regulations as may be necessary to carry out
this section.
``(b) Areas of National Need.--For purposes of this
section, an individual is employed in an area of national need
if the individual meets the requirements of one of the
following:
``(1) Early childhood educators.--The individual is
employed full-time as an early childhood educator.
``(2) Nurses.--The individual is employed full-
time--
``(A) as a nurse in a clinical setting; or
``(B) as a member of the nursing faculty at
an accredited school of nursing (as those terms
are defined in section 801 of the Public Health
Service Act (42 U.S.C. 296)).
``(3) Foreign language specialists.--The
individual--
``(A) has obtained a baccalaureate or
advanced degree in a critical foreign language;
and
``(B) is employed full-time--
``(i) in an elementary school or
secondary school as a teacher of a
critical foreign language;
``(ii) in an agency of the United
States Government in a position that
regularly requires the use of such
critical foreign language; or
``(iii) in an institution of higher
education as a faculty member or
instructor teaching a critical foreign
language.
``(4) Librarians.--The individual is employed full-
time as a librarian in--
``(A) a public library that serves a
geographic area within which the public schools
have a combined average of 30 percent or more
of the schools' total student enrollments
composed of children meeting a measure of
poverty under section 1113(a)(5) of the
Elementary and Secondary Education Act of 1965;
or
``(B) a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such a school.
``(5) Highly qualified teachers serving students
who are limited english proficient, low-income
communities, and underrepresented populations.--The
individual--
``(A) is highly qualified, as such term is
defined in section 9101 of the Elementary and
Secondary Education Act of 1965; and
``(B) is employed full-time--
``(i) as a teacher educating
students who are limited English
proficient;
``(ii) as a teacher in a school
that qualifies under section
465(a)(2)(A) for loan cancellation for
Perkins loan recipients who teach in
such a school;
``(iii) as a teacher and is an
individual from an underrepresented
population in the teaching profession,
as determined by the Secretary; or
``(iv) as a teacher in an
educational service agency, as such
term is defined in section 9101 of the
Elementary and Secondary Education Act
of 1965.
``(6) Child welfare workers.--The individual--
``(A) has obtained a degree in social work
or a related field with a focus on serving
children and families; and
``(B) is employed full-time in public or
private child welfare services.
``(7) Speech-language pathologists and
audiologists.--The individual--
``(A) is employed full-time as a speech-
language pathologist or audiologist in an
eligible preschool program or a school that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who
teach in such a school; and
``(B) has, at a minimum, a graduate degree
in speech-language pathology, audiology, or
communication sciences and disorders.
``(8) School counselors.--The individual is
employed full-time as a school counselor (as such term
is defined in section 5421(e) of the Elementary and
Secondary Education Act of 1965), in a school that
qualifies under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who teach in
such a school.
``(9) Public sector employees.--The individual is
employed full-time in--
``(A) public safety (including as a first
responder, firefighter, police officer, or
other law enforcement or public safety
officer);
``(B) emergency management (including as an
emergency medical technician);
``(C) public health (including full-time
professionals engaged in health care
practitioner occupations and health care
support occupations, as such terms are defined
by the Bureau of Labor Statistics); or
``(D) public interest legal services
(including prosecution, public defense, or
legal advocacy in low-income communities at a
nonprofit organization).
``(10) Nutrition professionals.--The individual--
``(A) is a licensed, certified, or
registered dietician who has completed a degree
in a relevant field; and
``(B) is employed full-time as a dietician
with an agency of the special supplemental
nutrition program for women, infants, and
children under section 17 of the Child
Nutrition Act of 1966 (42 U.S.C. 1786).
``(11) Medical specialists.--The individual--
``(A) has received a degree from a medical
school at an institution of higher education;
and
``(B) has been accepted to, or currently
participates in, a full-time graduate medical
education training program or fellowship (or
both) to provide health care services (as
recognized by the Accreditation Council for
Graduate Medical Education) that--
``(i) requires more than five years
of total graduate medical training; and
``(ii) has fewer United States
medical school graduate applicants than
the total number of positions available
in such program or fellowship.
``(12) Mental health professionals.--The
individual--
``(A) has not less than a master's degree
in social work, psychology, or psychiatry; and
``(B) is employed full-time providing
mental health services to children,
adolescents, or veterans.
``(13) Dentists.--The individual--
``(A)(i) has received a degree from an
accredited dental school (as accredited by the
Commission on Dental Accreditation);
``(ii) has completed residency training in
pediatric dentistry, general dentistry, or
dental public health; and
``(iii) is employed full-time as a dentist;
or
``(B) is employed full-time as a member of
the faculty at a program or school accredited
by the Commission on Dental Accreditation.
``(14) STEM employees.--The individual is employed
full-time in applied sciences, technology, engineering,
or mathematics.
``(15) Physical therapists.--The individual--
``(A) is a physical therapist; and
``(B) is employed full-time providing
physical therapy services to children,
adolescents, or veterans.
``(16) Superintendents, principals, and other
administrators.--The individual is employed full-time
as a school superintendent, principal, or other
administrator in a local educational agency, including
in an educational service agency, in which 30 percent
or more of the schools are schools that qualify under
section 465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such a school.
``(17) Occupational therapists.--The individual is
an occupational therapist and is employed full-time
providing occupational therapy services to children,
adolescents, or veterans.
``(c) Qualified Loan Amount.--
``(1) In general.--Subject to paragraph (2), for
each school, academic, or calendar year of full-time
employment in an area of national need described in
subsection (b) that a borrower completes on or after
the date of enactment of the Higher Education
Opportunity Act, the Secretary shall forgive not more
than $2,000 of the student loan obligation of the
borrower that is outstanding after the completion of
each such school, academic, or calendar year of
employment, respectively.
``(2) Maximum amount.--The Secretary shall not
forgive more than $10,000 in the aggregate for any
borrower under this section, and no borrower shall
receive loan forgiveness under this section for more
than five years of service.
``(d) Priority.--The Secretary shall grant loan forgiveness
under this section on a first-come, first-served basis, and
subject to the availability of appropriations.
``(e) Rule of Construction.--Nothing in this section shall
be construed to authorize the refunding of any repayment of a
loan.
``(f) Ineligibility for Double Benefits.--No borrower may,
for the same service, receive a reduction of loan obligations
under both this section and section 428J, 428L, 455(m), or 460.
``(g) Definitions.--In this section:
``(1) Audiologist.--The term `audiologist' means an
individual who--
``(A) has received, at a minimum, a
graduate degree in audiology from an
institution of higher education accredited by
an agency or association recognized by the
Secretary pursuant to section 496(a); and
``(B)(i) provides audiology services under
subsection (ll)(2) of section 1861 of the
Social Security Act (42 U.S.C. 1395x(ll)(2));
or
``(ii) meets or exceeds the qualifications
for a qualified audiologist under subsection
(ll)(4) of such section (42 U.S.C.
1395x(ll)(4)).
``(2) Early childhood educator.--The term `early
childhood educator' means an individual who--
``(A) works directly with children in an
eligible preschool program or eligible early
childhood education program in a low-income
community;
``(B) is involved directly in the care,
development, and education of infants,
toddlers, or young children age five and under;
and
``(C) has completed a baccalaureate or
advanced degree in early childhood development
or early childhood education, or in a field
related to early childhood education.
``(3) Eligible preschool program.--The term
`eligible preschool program' means a program that--
``(A) provides for the care, development,
and education of infants, toddlers, or young
children age five and under;
``(B) meets any applicable State or local
government licensing, certification, approval,
and registration requirements, and
``(C) is operated by--
``(i) a public or private school
that is supported, sponsored,
supervised, or administered by a local
educational agency;
``(ii) a Head Start agency serving
as a grantee designated under the Head
Start Act (42 U.S.C. 9831 et seq.);
``(iii) a nonprofit or community
based organization; or
``(iv) a child care program,
including a home.
``(4) Eligible early childhood education program.--
The term `eligible early childhood education program'
means--
``(A) a family child care program, center-
based child care program, State prekindergarten
program, school program, or other out-of-home
early childhood development care program,
that--
``(i) is licensed or regulated by
the State; and
``(ii) serves two or more unrelated
children who are not old enough to
attend kindergarten;
``(B) a Head Start Program carried out
under the Head Start Act (42 U.S.C. 9831 et
seq.); or
``(C) an Early Head Start Program carried
out under section 645A of the Head Start Act
(42 U.S.C. 9840a).
``(5) Low-income community.--The term `low-income
community' means a school attendance area (as defined
in section 1113(a)(2)(A) of the Elementary and
Secondary Education Act of 1965)--
``(A) in which 70 percent of households
earn less than 85 percent of the State median
household income; or
``(B) that includes a school that qualifies
under section 465(a)(2)(A) for loan
cancellation for Perkins loan recipients who
teach in such a school.
``(6) Nurse.--The term `nurse' means a nurse who
meets all of the following:
``(A) The nurse graduated from--
``(i) an accredited school of
nursing (as those terms are defined in
section 801 of the Public Health
Service Act (42 U.S.C. 296));
``(ii) a nursing center; or
``(iii) an academic health center
that provides nurse training.
``(B) The nurse holds a valid and
unrestricted license to practice nursing in the
State in which the nurse practices in a
clinical setting.
``(C) The nurse holds one or more of the
following:
``(i) A graduate degree in nursing,
or an equivalent degree.
``(ii) A nursing degree from a
collegiate school of nursing (as
defined in section 801 of the Public
Health Service Act (42 U.S.C. 296)).
``(iii) A nursing degree from an
associate degree school of nursing (as
defined in such section).
``(iv) A nursing degree from a
diploma school of nursing (as defined
in such section).
``(7) Occupational therapist.--The term
`occupational therapist' means an individual who--
``(A) has received, at a minimum, a
baccalaureate degree in occupational therapy
from an institution of higher education
accredited by an agency or association
recognized by the Secretary pursuant to section
496(a); and
``(B)(i) provides occupational therapy
services under section 1861(g) of the Social
Security Act (42 U.S.C. 1395x(g)); or
``(ii) meets or exceeds the qualifications
for a qualified occupational therapist, as
determined by State law.
``(8) Physical therapist.--The term `physical
therapist' means an individual who--
``(A) has received, at a minimum, a
graduate degree in physical therapy from an
institution of higher education accredited by
an agency or association recognized by the
Secretary pursuant to section 496(a); and
``(B)(i) provides physical therapy services
under section 1861(p) of the Social Security
Act (42 U.S.C. 1395x(p)); or
``(ii) meets or exceeds the qualifications
for a qualified physical therapist, as
determined by State law.
``(9) Speech-language pathologist.--The term
`speech-language pathologist' means a speech-language
pathologist who--
``(A) has received, at a minimum, a
graduate degree in speech-language pathology or
communication sciences and disorders from an
institution of higher education accredited by
an agency or association recognized by the
Secretary pursuant to section 496(a); and
``(B) provides speech-language pathology
services under section 1861(ll)(1) of the
Social Security Act (42 U.S.C. 1395x(ll)(1)),
or meets or exceeds the qualifications for a
qualified speech-language pathologist under
subsection (ll)(3) of such section (42 U.S.C.
1395x(ll)(3)).
``(h) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for fiscal year 2009 and each of the
five succeeding fiscal years to provide loan forgiveness in
accordance with this section.''.
SEC. 431. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.
Part B of title IV (20 U.S.C. 1071 et seq.) is amended by
inserting after section 428K the following:
``SEC. 428L. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.
``(a) Purpose.--The purpose of this section is to encourage
qualified individuals to enter and continue employment as civil
legal assistance attorneys.
``(b) Definitions.--In this section:
``(1) Civil legal assistance attorney.--The term
`civil legal assistance attorney' means an attorney
who--
``(A) is a full-time employee of--
``(i) a nonprofit organization that
provides legal assistance with respect
to civil matters to low-income
individuals without a fee; or
``(ii) a protection and advocacy
system or client assistance program
that provides legal assistance with
respect to civil matters and receives
funding under--
``(I) subtitle C of title I
of the Developmental
Disabilities Assistance and
Bill of Rights Act of 2000 (42
U.S.C. 15041 et seq.);
``(II) section 112 or 509
of the Rehabilitation Act of
1973 (29 U.S.C. 732, 794e);
``(III) part A of title I
of the Protection and Advocacy
for Individuals with Mental
Illness Act (42 U.S.C. 10801 et
seq.);
``(IV) section 5 of the
Assistive Technology Act of
1998 (29 U.S.C. 3004);
``(V) section 1150 of the
Social Security Act (42 U.S.C.
1320b-21);
``(VI) section 1253 of the
Public Health Service Act (42
U.S.C. 300d-53); or
``(VII) section 291 of the
Help America Vote Act of 2002
(42 U.S.C. 15461);
``(B) as such employee, provides civil
legal assistance as described in subparagraph
(A) on a full-time basis; and
``(C) is continually licensed to practice
law.
``(2) Student loan.--
``(A) In general.--Except as provided in
subparagraph (B), the term `student loan'
means--
``(i) subject to clause (ii), a
loan made, insured, or guaranteed under
this part, part D, or part E; and
``(ii) a loan made under section
428C or 455(g), to the extent that such
loan was used to repay--
``(I) a Federal Direct
Stafford Loan, a Federal Direct
Unsubsidized Stafford Loan, or
a Federal Direct PLUS Loan;
``(II) a loan made under
section 428, 428B, or 428H; or
``(III) a loan made under
part E.
``(B) Exclusion of parent plus loans.--The
term `student loan' does not include any of the
following loans:
``(i) A loan made to the parents of
a dependent student under section 428B.
``(ii) A Federal Direct PLUS Loan
made to the parents of a dependent
student.
``(iii) A loan made under section
428C or 455(g), to the extent that such
loan was used to repay--
``(I) a loan made to the
parents of a dependent student
under section 428B; or
``(II) a Federal Direct
PLUS Loan made to the parents
of a dependent student.
``(c) Program Authorized.--From amounts appropriated under
subsection (i) for a fiscal year, the Secretary shall carry out
a program of assuming the obligation to repay a student loan,
by direct payments on behalf of a borrower to the holder of
such loan, in accordance with subsection (d), for any borrower
who--
``(1) is employed as a civil legal assistance
attorney; and
``(2) is not in default on a loan for which the
borrower seeks repayment.
``(d) Terms of Agreement.--
``(1) In general.--To be eligible to receive
repayment benefits under subsection (c), a borrower
shall enter into a written agreement with the Secretary
that specifies that--
``(A) the borrower will remain employed as
a civil legal assistance attorney for a
required period of service of not less than
three years, unless involuntarily separated
from that employment;
``(B) if the borrower is involuntarily
separated from employment on account of
misconduct, or voluntarily separates from
employment, before the end of the period
specified in the agreement, the borrower will
repay the Secretary the amount of any benefits
received by such employee under this agreement;
``(C) if the borrower is required to repay
an amount to the Secretary under subparagraph
(B) and fails to repay such amount, a sum equal
to that amount shall be recoverable by the
Federal Government from the employee by such
methods as are provided by law for the recovery
of amounts owed to the Federal Government;
``(D) the Secretary may waive, in whole or
in part, a right of recovery under this
subsection if it is shown that recovery would
be contrary to the public interest; and
``(E) the Secretary shall make student loan
payments under this section for the period of
the agreement, subject to the availability of
appropriations.
``(2) Repayments.--
``(A) In general.--Any amount repaid by, or
recovered from, an individual under this
subsection shall be credited to the
appropriation account from which the amount
involved was originally paid.
``(B) Merger.--Any amount credited under
subparagraph (A) shall be merged with other
sums in such account and shall be available for
the same purposes and period, and subject to
the same limitations, if any, as the sums with
which the amount was merged.
``(3) Limitations.--
``(A) Student loan payment amount.--Student
loan repayments made by the Secretary under
this section shall be made subject to such
terms, limitations, or conditions as may be
mutually agreed upon by the borrower and the
Secretary in an agreement under paragraph (1),
except that the amount paid by the Secretary
under this section shall not exceed--
``(i) $6,000 for any borrower in
any calendar year; or
``(ii) an aggregate total of
$40,000 in the case of any borrower.
``(B) Beginning of payments.--Nothing in
this section shall authorize the Secretary to
pay any amount to reimburse a borrower for any
repayments made by such borrower prior to the
date on which the Secretary entered into an
agreement with the borrower under this
subsection.
``(e) Additional Agreements.--
``(1) In general.--On completion of the required
period of service under an agreement under subsection
(d), the borrower and the Secretary may, subject to
paragraph (2), enter into an additional agreement in
accordance with subsection (d).
``(2) Term.--An agreement entered into under
paragraph (1) may require the borrower to remain
employed as a civil legal assistance attorney for less
than three years.
``(f) Award Basis; Priority.--
``(1) Award basis.--Subject to paragraph (2), the
Secretary shall provide repayment benefits under this
section on a first-come, first-served basis, and
subject to the availability of appropriations.
``(2) Priority.--The Secretary shall give priority
in providing repayment benefits under this section in
any fiscal year to a borrower who--
``(A) has practiced law for five years or
less and, for not less than 90 percent of the
time in such practice, has served as a civil
legal assistance attorney;
``(B) received repayment benefits under
this section during the preceding fiscal year;
and
``(C) has completed less than three years
of the first required period of service
specified for the borrower in an agreement
entered into under subsection (d).
``(g) Ineligibility for Double Benefits.--No borrower may,
for the same service, receive a reduction of loan obligations
under both this section and section 428K or 455(m).
``(h) Regulations.--The Secretary is authorized to issue
such regulations as may be necessary to carry out this section.
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$10,000,000 for fiscal year 2009 and such sums as may be
necessary for each of the five succeeding fiscal years.''.
SEC. 432. REPORTS TO CONSUMER REPORTING AGENCIES AND INSTITUTIONS OF
HIGHER EDUCATION.
(a) In General.--Section 430A (20 U.S.C. 1080a) is
amended--
(1) in the section heading, by striking ``CREDIT
BUREAUS'' and inserting ``CONSUMER REPORTING
AGENCIES'';
(2) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) in the first sentence--
(I) by striking ``the
Secretary,'' and inserting
``the Secretary and''; and
(II) by striking
``agreements with credit bureau
organizations'' and inserting
``an agreement with each
consumer reporting agency'';
(ii) in the second sentence--
(I) by striking ``such
organizations'' each place the
term occurs and inserting
``such consumer reporting
agencies''; and
(II) by striking
``insurance), by'' and
inserting ``insurance) or by'';
and
(iii) in the third sentence--
(I) by striking
``Secretary,'' and inserting
``Secretary or''; and
(II) by striking
``organizations'' and inserting
``consumer reporting
agencies'';
(B) by redesignating paragraphs (1), (2),
and (3) as paragraphs (2), (4), and (5),
respectively;
(C) by inserting before paragraph (2) (as
redesignated by subparagraph (B)), the
following:
``(1) that the loan is an education loan (as such
term is defined in section 151);''; and
(D) by inserting after paragraph (2) (as
redesignated by subparagraph (B)) the
following:
``(3) information concerning the repayment status
of the loan for inclusion in the file of the borrower,
except that nothing in this subsection shall be
construed to affect any otherwise applicable provision
of the Fair Credit Reporting Act (15 U.S.C. 1681 et
seq.);'';
(3) in subsection (b)--
(A) by striking ``organizations'' and
inserting ``consumer reporting agencies''; and
(B) by striking ``subsection (a)(2)'' and
inserting ``subsection (a)(4)'';
(4) in subsection (c)--
(A) in paragraph (2), by striking
``organizations'' and inserting ``consumer
reporting agencies''; and
(B) in paragraph (4)--
(i) by striking ``subsection
(a)(2)'' and inserting ``subsection
(a)(4)''; and
(ii) in subparagraph (A), by
striking ``credit bureau
organizations'' and inserting
``consumer reporting agencies''; and
(5) in subsection (d), by striking ``credit bureau
organization'' and inserting ``consumer reporting
agency''.
(b) Conforming Amendments.--The Act (20 U.S.C. 1001 et
seq.) is further amended--
(1) in section 427(a)(2)(G) (20 U.S.C.
1077(a)(2)(G))--
(A) in clause (i), by striking ``credit
bureau organizations'' and inserting ``consumer
reporting agencies''; and
(B) in clause (ii), by striking
``organizations'' and inserting ``consumer
reporting agencies'';
(2) in section 428(c)(3)(A)(iii) (20 U.S.C.
1078(c)(3)(A)(iii)), by striking ``credit bureau
organization'' and inserting ``consumer reporting
agency'';
(3) in section 428C(b)(4)(E) (20 U.S.C. 1078-
3(b)(4)(E))--
(A) in clause (i), by striking ``credit
bureau organizations'' and inserting ``consumer
reporting agencies''; and
(B) in clause (ii), by striking
``organizations'' and inserting ``consumer
reporting agencies'';
(4) in section 437(c)(5) (20 U.S.C. 1087(c)(5)), by
striking ``credit bureaus'' and inserting ``consumer
reporting agencies'';
(5) in section 463(c) (20 U.S.C. 1087cc(c))--
(A) in the subsection heading, by striking
``Credit Bureau Organizations'' and inserting
``Consumer Reporting Agencies'';
(B) in paragraph (1), by striking ``credit
bureau organizations'' and inserting ``consumer
reporting agencies'';
(C) in paragraph (2), by striking
``organizations'' and inserting ``consumer
reporting agencies'';
(D) in paragraph (4)(A), by striking
``credit bureau organization'' each place the
term occurs and inserting ``consumer reporting
agency''; and
(E) in paragraph (5)--
(i) by striking ``credit bureau
organizations'' and inserting
``consumer reporting agencies''; and
(ii) by striking ``such
organizations'' and inserting ``such
consumer reporting agencies'';
(6) in section 463A(a)(11) (20 U.S.C. 1087cc-
1(a)(11)), by striking ``credit bureau or credit'' and
inserting ``consumer''; and
(7) in section 464 (20 U.S.C. 10877dd)--
(A) in subsection (c)(1)(I), by striking
``credit bureau organizations'' and inserting
``consumer reporting agencies''; and
(B) in subsection (h)(1)(A), by striking
``credit bureau organization or credit'' and
inserting ``consumer''.
SEC. 433. LEGAL POWERS AND RESPONSIBILITIES.
(a) Settlement of Claims.--Section 432(b) (20 U.S.C.
1082(b)) is amended by adding at the end the following: ``The
Secretary may not enter into any settlement of any claim under
this title that exceeds $1,000,000 unless--
``(1) the Secretary requests a review of the
proposed settlement of such claim by the Attorney
General; and
``(2) the Attorney General responds to such
request, which may include, at the Attorney General's
discretion, a written opinion related to such proposed
settlement.''.
(b) Common Forms and Formats.--Section 432(m)(1)(D)(i) (20
U.S.C. 1082(m)(1)(D)(i)) is amended by adding at the end the
following: ``Unless otherwise notified by the Secretary, each
institution of higher education that participates in the
program under this part or part D may use a master promissory
note for loans under this part and part D.''.
SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
(a) Amendment.--Section 433 (20 U.S.C. 1083) is amended to
read as follows:
``SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
``(a) Required Disclosure Before Disbursement.--Each
eligible lender, at or prior to the time such lender disburses
a loan that is insured or guaranteed under this part (other
than a loan made under section 428C), shall provide thorough
and accurate loan information on such loan to the borrower in
simple and understandable terms. Any disclosure required by
this subsection may be made by an eligible lender by written or
electronic means, including as part of the application material
provided to the borrower, as part of the promissory note
evidencing the loan, or on a separate written form provided to
the borrower. Each lender shall provide to each borrower a
telephone number, and may provide an electronic address,
through which additional loan information can be obtained. The
disclosure shall include--
``(1) a statement prominently and clearly displayed
and in bold print that the borrower is receiving a loan
that must be repaid;
``(2) the name of the eligible lender, and the
address to which communications and payments should be
sent;
``(3) the principal amount of the loan;
``(4) the amount of any charges, such as the
origination fee and Federal default fee, and whether
those fees will be--
``(A) collected by the lender at or prior
to the disbursal of the loan;
``(B) deducted from the proceeds of the
loan;
``(C) paid separately by the borrower; or
``(D) paid by the lender;
``(5) the stated interest rate on the loan;
``(6) for loans made under section 428H or to a
student borrower under section 428B, an explanation--
``(A) that the borrower has the option to
pay the interest that accrues on the loan while
the borrower is a student at an institution of
higher education; and
``(B) if the borrower does not pay such
interest while attending an institution, when
and how often interest on the loan will be
capitalized;
``(7) for loans made to a parent borrower on behalf
of a student under section 428B, an explanation--
``(A) that the parent has the option to
defer payment on the loan while the student is
enrolled on at least a half-time basis in an
institution of higher education;
``(B) if the parent does not pay the
interest on the loan while the student is
enrolled in an institution, when and how often
interest on the loan will be capitalized; and
``(C) that the parent may be eligible for a
deferment on the loan if the parent is enrolled
on at least a half-time basis in an institution
of higher education;
``(8) the yearly and cumulative maximum amounts
that may be borrowed;
``(9) a statement of the total cumulative balance,
including the loan being disbursed, owed by the
borrower to that lender, and an estimate of the
projected monthly payment, given such cumulative
balance;
``(10) an explanation of when repayment of the loan
will be required and when the borrower will be
obligated to pay interest that accrues on the loan;
``(11) a description of the types of repayment
plans that are available for the loan;
``(12) a statement as to the minimum and maximum
repayment terms which the lender may impose, and the
minimum annual payment required by law;
``(13) an explanation of any special options the
borrower may have for loan consolidation or other
refinancing of the loan;
``(14) a statement that the borrower has the right
to prepay all or part of the loan, at any time, without
penalty;
``(15) a statement summarizing circumstances in
which repayment of the loan or interest that accrues on
the loan may be deferred;
``(16) a statement summarizing the circumstances in
which a borrower may obtain forbearance on the loan;
``(17) a description of the options available for
forgiveness of the loan, and the requirements to obtain
loan forgiveness;
``(18) a definition of default and the consequences
to the borrower if the borrower defaults, including a
statement that the default will be reported to a
consumer reporting agency; and
``(19) an explanation of any cost the borrower may
incur during repayment or in the collection of the
loan, including fees that the borrower may be charged,
such as late payment fees and collection costs.
``(b) Required Disclosure Before Repayment.--Each eligible
lender shall, at or prior to the start of the repayment period
on a loan made, insured, or guaranteed under section 428, 428B,
or 428H, disclose to the borrower by written or electronic
means the information required under this subsection in simple
and understandable terms. Each eligible lender shall provide to
each borrower a telephone number, and may provide an electronic
address, through which additional loan information can be
obtained. The disclosure required by this subsection shall be
made not less than 30 days nor more than 150 days before the
first payment on the loan is due from the borrower. The
disclosure shall include--
``(1) the name of the eligible lender or loan
servicer, and the address to which communications and
payments should be sent;
``(2) the scheduled date upon which the repayment
period is to begin or the deferment period under
section 428B(d)(1) is to end, as applicable;
``(3) the estimated balance owed by the borrower on
the loan or loans covered by the disclosure (including,
if applicable, the estimated amount of interest to be
capitalized) as of the scheduled date on which the
repayment period is to begin or the deferment period
under 428B(d)(1) is to end, as applicable;
``(4) the stated interest rate on the loan or
loans, or the combined interest rate of loans with
different stated interest rates;
``(5) information on loan repayment benefits
offered for the loan or loans, including--
``(A) whether the lender offers any
benefits that are contingent on the repayment
behavior of the borrower, such as--
``(i) a reduction in interest rate
if the borrower repays the loan by
automatic payroll or checking account
deduction;
``(ii) a reduction in interest rate
if the borrower makes a specified
number of on-time payments; and
``(iii) other loan repayment
benefits for which the borrower could
be eligible that would reduce the
amount of repayment or the length of
the repayment period;
``(B) if the lender provides a loan
repayment benefit--
``(i) any limitations on such
benefit;
``(ii) explicit information on the
reasons a borrower may lose eligibility
for such benefit;
``(iii) for a loan repayment
benefit that reduces the borrower's
interest rate--
``(I) examples of the
impact the interest rate
reduction would have on the
length of the borrower's
repayment period and the amount
of repayment; and
``(II) upon the request of
the borrower, the effect the
reduction in interest rate
would have with respect to the
borrower's payoff amount and
time for repayment; and
``(iv) whether and how the borrower
can regain eligibility for a benefit if
a borrower loses a benefit;
``(6) a description of all the repayment plans that
are available to the borrower and a statement that the
borrower may change from one plan to another during the
period of repayment;
``(7) the repayment schedule for all loans covered
by the disclosure, including--
``(A) the date the first installment is
due; and
``(B) the number, amount, and frequency of
required payments, which shall be based on a
standard repayment plan or, in the case of a
borrower who has selected another repayment
plan, on the repayment plan selected by the
borrower;
``(8) an explanation of any special options the
borrower may have for loan consolidation or other
refinancing of the loan and of the availability and
terms of such other options;
``(9) except as provided in subsection (d)--
``(A) the projected total of interest
charges which the borrower will pay on the loan
or loans, assuming that the borrower makes
payments exactly in accordance with the
repayment schedule; and
``(B) if the borrower has already paid
interest on the loan or loans, the amount of
interest paid;
``(10) the nature of any fees which may accrue or
be charged to the borrower during the repayment period;
``(11) a statement that the borrower has the right
to prepay all or part of the loan or loans covered by
the disclosure at any time without penalty;
``(12) a description of the options by which the
borrower may avoid or be removed from default,
including any relevant fees associated with such
options; and
``(13) additional resources, including nonprofit
organizations, advocates, and counselors (including the
Student Loan Ombudsman of the Department) of which the
lender is aware, where borrowers may receive advice and
assistance on loan repayment.
``(c) Separate Notification.--Each eligible lender shall,
at the time such lender notifies a borrower of approval of a
loan which is insured or guaranteed under this part, provide
the borrower with a separate notification which summarizes, in
simple and understandable terms, the rights and
responsibilities of the borrower with respect to the loan,
including a statement of the consequences of defaulting on the
loan and a statement that each borrower who defaults will be
reported to a consumer reporting agency. The requirement of
this subsection shall be in addition to the information
required by subsection (a) of this section.
``(d) Special Disclosure Rules on PLUS Loans, and
Unsubsidized Loans.--Loans made under sections 428B and 428H
shall not be subject to the disclosure of projected monthly
payment amounts required under subsection (b)(7) if the lender,
in lieu of such disclosure, provides the borrower with sample
projections of monthly repayment amounts, assuming different
levels of borrowing and interest accruals resulting from
capitalization of interest while the borrower, or the student
on whose behalf the loan is made, is in school, in simple and
understandable terms. Such sample projections shall disclose
the cost to the borrower of--
``(1) capitalizing the interest; and
``(2) paying the interest as the interest accrues.
``(e) Required Disclosures During Repayment.--
``(1) Pertinent information about a loan provided
on a periodic basis.--Each eligible lender shall
provide the borrower of a loan made, insured, or
guaranteed under this part with a bill or statement (as
applicable) that corresponds to each payment
installment time period in which a payment is due and
that includes, in simple and understandable terms--
``(A) the original principal amount of the
borrower's loan;
``(B) the borrower's current balance, as of
the time of the bill or statement, as
applicable;
``(C) the interest rate on such loan;
``(D) the total amount the borrower has
paid in interest on the loan;
``(E) the aggregate amount the borrower has
paid for the loan, including the amount the
borrower has paid in interest, the amount the
borrower has paid in fees, and the amount the
borrower has paid against the balance;
``(F) a description of each fee the
borrower has been charged for the most recently
preceding installment time period;
``(G) the date by which the borrower needs
to make a payment in order to avoid additional
fees and the amount of such payment and the
amount of such fees;
``(H) the lender's or loan servicer's
address and toll-free phone number for payment
and billing error purposes; and
``(I) a reminder that the borrower has the
option to change repayment plans, a list of the
names of the repayment plans available to the
borrower, a link to the appropriate page of the
Department's website to obtain a more detailed
description of the repayment plans, and
directions for the borrower to request a change
in repayment plan.
``(2) Information provided to a borrower having
difficulty making payments.--Each eligible lender shall
provide to a borrower who has notified the lender that
the borrower is having difficulty making payments on a
loan made, insured, or guaranteed under this part with
the following information in simple and understandable
terms:
``(A) A description of the repayment plans
available to the borrower, including how the
borrower should request a change in repayment
plan.
``(B) A description of the requirements for
obtaining forbearance on a loan, including
expected costs associated with forbearance.
``(C) A description of the options
available to the borrower to avoid defaulting
on the loan, and any relevant fees or costs
associated with such options.
``(3) Required disclosures during delinquency.--
Each eligible lender shall provide to a borrower who is
60 days delinquent in making payments on a loan made,
insured, or guaranteed under this part with a notice,
in simple and understandable terms, of the following:
``(A) The date on which the loan will
default if no payment is made.
``(B) The minimum payment the borrower must
make to avoid default.
``(C) A description of the options
available to the borrower to avoid default, and
any relevant fees or costs associated with such
options, including a description of deferment
and forbearance and the requirements to obtain
each.
``(D) Discharge options to which the
borrower may be entitled.
``(E) Additional resources, including
nonprofit organizations, advocates, and
counselors (including the Student Loan
Ombudsman of the Department), of which the
lender is aware, where the borrower can receive
advice and assistance on loan repayment.
``(f) Cost of Disclosure and Consequences of
Nondisclosure.--
``(1) No cost to borrowers.--The information
required under this section shall be available without
cost to the borrower.
``(2) Consequences of nondisclosure.--The failure
of an eligible lender to provide information as
required by this section shall not--
``(A) relieve a borrower of the obligation
to repay a loan in accordance with the loan's
terms; or
``(B) provide a basis for a claim for civil
damages.
``(3) Rule of construction.--Nothing in this
section shall be construed as subjecting the lender to
the Truth in Lending Act with regard to loans made
under this part.
``(4) Actions by the secretary.--The Secretary may
limit, suspend, or terminate the continued
participation of an eligible lender in making loans
under this part for failure by that lender to comply
with this section.''.
(b) Effective Dates.--
(1) Regular disclosure requirements and disclosure
requirements to borrowers having difficulty making
payments.--Paragraphs (1) and (2) of section 433(e) of
the Higher Education Act of 1965, as amended by
subsection (a), shall apply with respect to loans for
which the first payment is due on or after July 1,
2009.
(2) Disclosure requirements for borrowers with
delinquent loans.--Section 433(e)(3) of the Higher
Education Act of 1965, as amended by subsection (a),
shall apply with respect to loans that become
delinquent on or after July 1, 2009.
SEC. 435. CONSUMER EDUCATION INFORMATION.
Part B (20 U.S.C. 1071 et seq.) is amended by inserting
after section 433 (20 U.S.C. 1083) the following:
``SEC. 433A. CONSUMER EDUCATION INFORMATION.
``(a) In General.--Each guaranty agency participating in a
program under this part, working with the institutions of
higher education served by such guaranty agency, shall develop
and make available high-quality educational programs and
materials to provide training for students and families in
budgeting and financial management, including debt management
and other aspects of financial literacy, such as the cost of
using high interest loans to pay for postsecondary education,
particularly as budgeting and financial management relates to
student loan programs authorized by this title. Such programs
and materials shall be in formats that are simple and
understandable to students and families, and shall be provided
before, during, and after the students' enrollment in an
institution of higher education. The activities described in
this section shall be considered default reduction activities
for the purposes of section 422.
``(b) Rule of Construction.--Nothing in this section shall
be construed to prohibit--
``(1) a guaranty agency from using existing
activities, programs, and materials in meeting the
requirements of this section;
``(2) a guaranty agency from providing programs or
materials similar to the programs or materials
described in subsection (a) to an institution of higher
education that provides loans exclusively through part
D; or
``(3) a lender or loan servicer from providing
outreach or financial aid literacy information in
accordance with subsection (a).''.
SEC. 436. DEFINITIONS OF ELIGIBLE INSTITUTION AND ELIGIBLE LENDER.
(a) Participation Rate Index.--
(1) Amendments.--Section 435(a) (20 U.S.C. 1085(a))
is amended--
(A) in paragraph (2)--
(i) in subparagraph (A)(ii), by
striking ``paragraph (4)'' and
inserting ``paragraph (5)''; and
(ii) in subparagraph (B)--
(I) by striking ``and'' at
the end of clause (ii); and
(II) by striking clause
(iii) and inserting the
following:
``(iii) 25 percent for fiscal year
1994 through fiscal year 2011; and
``(iv) 30 percent for fiscal year
2012 and any succeeding fiscal year.'';
(B) by redesignating paragraph (6) as
paragraph (8), and redesignating paragraphs (3)
through (5) as paragraphs (4) through (6),
respectively;
(C) by inserting after paragraph (2) the
following new paragraph:
``(3) Appeals for regulatory relief.--An
institution whose cohort default rate, calculated in
accordance with subsection (m), is equal to or greater
than the threshold percentage specified in paragraph
(2)(B)(iv) for any two consecutive fiscal years may,
not later than 30 days after the date the institution
receives notification from the Secretary, file an
appeal demonstrating exceptional mitigating
circumstances, as defined in paragraph (5). The
Secretary shall issue a decision on any such appeal not
later than 45 days after the date of submission of the
appeal. If the Secretary determines that the
institution demonstrates exceptional mitigating
circumstances, the Secretary may not subject the
institution to provisional certification based solely
on the institution's cohort default rate.'';
(D) in paragraph (5)(A) (as redesignated by
subparagraph (B)), by striking ``For purposes
of paragraph (2)(A)(ii)'' and all that follows
through ``following criteria:'' and inserting
``For purposes of this subsection, an
institution of higher education shall be
treated as having exceptional mitigating
circumstances that make application of
paragraph (2) inequitable, and that provide for
regulatory relief under paragraph (3), if such
institution, in the opinion of an independent
auditor, meets the following criteria:'';
(E) by inserting after paragraph (6) (as
redesignated by subparagraph (B)) the
following:
``(7) Default prevention and assessment of
eligibility based on high default rates.--
``(A) First year.--
``(i) In general.--An institution
whose cohort default rate is equal to
or greater than the threshold
percentage specified in paragraph
(2)(B)(iv) in any fiscal year shall
establish a default prevention task
force to prepare a plan to--
``(I) identify the factors
causing the institution's
cohort default rate to exceed
such threshold;
``(II) establish measurable
objectives and the steps to be
taken to improve the
institution's cohort default
rate; and
``(III) specify actions
that the institution can take
to improve student loan
repayment, including
appropriate counseling
regarding loan repayment
options.
``(ii) Technical assistance.--Each
institution subject to this
subparagraph shall submit the plan
under clause (i) to the Secretary, who
shall review the plan and offer
technical assistance to the institution
to promote improved student loan
repayment.
``(B) Second consecutive year.--
``(i) In general.--An institution
whose cohort default rate is equal to
or greater than the threshold
percentage specified in paragraph
(2)(B)(iv) for two consecutive fiscal
years, shall require the institution's
default prevention task force
established under subparagraph (A) to
review and revise the plan required
under such subparagraph, and shall
submit such revised plan to the
Secretary.
``(ii) Review by the secretary.--
The Secretary shall review each revised
plan submitted in accordance with this
subparagraph, and may direct that such
plan be amended to include actions,
with measurable objectives, that the
Secretary determines, based on
available data and analyses of student
loan defaults, will promote student
loan repayment.''; and
(F) in paragraph (8)(A) (as redesignated by
subparagraph (B)) by striking ``0.0375'' and
inserting ``0.0625''.
(2) Effective date.--The amendment made by
paragraph (1)(F) shall take effect for fiscal years
beginning on or after October 1, 2011.
(b) Types of Lenders.--Section 435(d)(1)(A)(ii) (20 U.S.C.
1085(d)(1)(A)(ii)) is amended--
(1) by striking ``part, or (III)'' and inserting
``part, (III)''; and
(2) by inserting before the semicolon at the end
the following: ``, or (IV) it is a National or State
chartered bank, or a credit union, with assets of less
than $1,000,000,000''.
(c) Disqualification.--Paragraph (5) of section 435(d) (20
U.S.C. 1085(d)(5)) is amended to read as follows:
``(5) Disqualification for use of certain
incentives.--The term `eligible lender' does not
include any lender that the Secretary determines, after
notice and opportunity for a hearing, has--
``(A) offered, directly or indirectly,
points, premiums, payments (including payments
for referrals and for processing or finder
fees), prizes, stock or other securities,
travel, entertainment expenses, tuition payment
or reimbursement, the provision of information
technology equipment at below-market value,
additional financial aid funds, or other
inducements, to any institution of higher
education or any employee of an institution of
higher education in order to secure applicants
for loans under this part;
``(B) conducted unsolicited mailings, by
postal or electronic means, of student loan
application forms to students enrolled in
secondary schools or postsecondary
institutions, or to family members of such
students, except that applications may be
mailed, by postal or electronic means, to
students or borrowers who have previously
received loans under this part from such
lender;
``(C) entered into any type of consulting
arrangement, or other contract to provide
services to a lender, with an employee who is
employed in the financial aid office of an
institution of higher education, or who
otherwise has responsibilities with respect to
student loans or other financial aid of the
institution;
``(D) compensated an employee who is
employed in the financial aid office of an
institution of higher education, or who
otherwise has responsibilities with respect to
student loans or other financial aid of the
institution, and who is serving on an advisory
board, commission, or group established by a
lender or group of lenders for providing such
service, except that the eligible lender may
reimburse such employee for reasonable expenses
incurred in providing such service;
``(E) performed for an institution of
higher education any function that such
institution of higher education is required to
perform under this title, except that a lender
shall be permitted to perform functions on
behalf of such institution in accordance with
section 485(b);
``(F) paid, on behalf of an institution of
higher education, another person to perform any
function that such institution of higher
education is required to perform under this
title, except that a lender shall be permitted
to perform functions on behalf of such
institution in accordance with section 485(b);
``(G) provided payments or other benefits
to a student at an institution of higher
education to act as the lender's representative
to secure applications under this title from
individual prospective borrowers, unless such
student--
``(i) is also employed by the
lender for other purposes; and
``(ii) made all appropriate
disclosures regarding such employment;
``(H) offered, directly or indirectly,
loans under this part as an inducement to a
prospective borrower to purchase a policy of
insurance or other product; or
``(I) engaged in fraudulent or misleading
advertising.
It shall not be a violation of this paragraph for a
lender to provide technical assistance to institutions
of higher education comparable to the kinds of
technical assistance provided to institutions of higher
education by the Department.''.
(d) School as Lender Program Audit.--Section 435(d) (20
U.S.C. 1085(d)) is further amended by adding at the end the
following:
``(8) School as lender program audit.--Each
institution serving as an eligible lender under
paragraph (1)(E), and each eligible lender serving as a
trustee for an institution of higher education or an
organization affiliated with an institution of higher
education, shall annually complete and submit to the
Secretary a compliance audit to determine whether--
``(A) the institution or lender is using
all proceeds from special allowance payments
and interest payments from borrowers, interest
subsidies received from the Department, and any
proceeds from the sale or other disposition of
loans, for need-based grant programs, in
accordance with paragraph (2)(A)(viii);
``(B) the institution or lender is using
not more than a reasonable portion of the
proceeds described in paragraph (2)(A)(viii)
for direct administrative expenses; and
``(C) the institution or lender is ensuring
that the proceeds described in paragraph
(2)(A)(viii) are being used to supplement, and
not to supplant, Federal and non-Federal funds
that would otherwise be used for need-based
grant programs.''.
(e) Cohort Default Rates.--
(1) Amendments.--Section 435(m) (20 U.S.C. 1085(m))
is amended--
(A) in paragraph (1)--
(i) in the first sentence of
subparagraph (A), by striking ``end of
the following fiscal year'' and
inserting ``end of the second fiscal
year following the fiscal year in which
the students entered repayment'';
(ii) in subparagraph (B), by
striking ``such fiscal year'' and
inserting ``such second fiscal year'';
(iii) in subparagraph (C), by
striking ``end of the fiscal year
immediately following the year in which
they entered repayment'' and inserting
``end of the second fiscal year
following the year in which they
entered repayment'';
(B) in paragraph (2)(C)--
(i) by striking ``end of such
following fiscal year is not considered
as in default for the purposes of this
subsection'' and inserting ``end of the
second fiscal year following the year
in which the loan entered repayment is
not considered as in default for
purposes of this subsection''; and
(ii) by striking ``such following
fiscal year'' and inserting ``such
second fiscal year''; and
(C) in paragraph (4)--
(i) by amending the paragraph
heading to read as follows:
``Collection and reporting of cohort
default rates and life of cohort
default rates.--''; and
(ii) by amending subparagraph (A)
to read as follows:
``(A) The Secretary shall publish not less often
than once every fiscal year a report showing cohort
default data and life of cohort default rates for each
category of institution, including: (i) four-year
public institutions; (ii) four-year private nonprofit
institutions; (iii) two-year public institutions; (iv)
two-year private nonprofit institutions; (v) four-year
proprietary institutions; (vi) two-year proprietary
institutions; and (vii) less than two-year proprietary
institutions. For purposes of this subparagraph, for
any fiscal year in which one or more current and former
students at an institution enter repayment on loans
under section 428, 428B, or 428H, received for
attendance at the institution, the Secretary shall
publish the percentage of those current and former
students who enter repayment on such loans (or on the
portion of a loan made under section 428C that is used
to repay any such loans) received for attendance at the
institution in that fiscal year who default before the
end of each succeeding fiscal year.''.
(2) Effective date and transition.--
(A) Effective date.--The amendments made by
paragraph (1) shall take effect for purposes of
calculating cohort default rates for fiscal
year 2009 and succeeding fiscal years.
(B) Transition.--Notwithstanding
subparagraph (A), the method of calculating
cohort default rates under section 435(m) of
the Higher Education Act of 1965 as in effect
on the day before the date of enactment of this
Act shall continue in effect, and the rates so
calculated shall be the basis for any sanctions
imposed on institutions of higher education
because of their cohort default rates, until
three consecutive years of cohort default rates
calculated in accordance with the amendments
made by paragraph (1) are available.
SEC. 437. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF DISABILITY.
(a) FFEL and Direct Loans.--Section 437(a) (20 U.S.C.
1087(a)) is amended--
(1) by striking ``(a) Repayment in Full for Death
and Disability.--If a'' and inserting the following:
``(a) Repayment in Full for Death and Disability.--
``(1) In general.--If a'';
(2) by inserting ``, or if a student borrower who
has received such a loan is unable to engage in any
substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be
expected to result in death, has lasted for a
continuous period of not less than 60 months, or can be
expected to last for a continuous period of not less
than 60 months'' after ``of the Secretary),''; and
(3) by adding at the end the following: ``The
Secretary may develop such safeguards as the Secretary
determines necessary to prevent fraud and abuse in the
discharge of liability under this subsection.
Notwithstanding any other provision of this subsection,
the Secretary may promulgate regulations to reinstate
the obligation of, and resume collection on, loans
discharged under this subsection in any case in which--
``(A) a borrower received a discharge of
liability under this subsection and after the
discharge the borrower--
``(i) receives a loan made,
insured, or guaranteed under this
title; or
``(ii) has earned income in excess
of the poverty line; or
``(B) the Secretary determines
necessary.''.
(b) Disability Determinations.--Section 437(a) (20 U.S.C.
1087(a)) is further amended by adding at the end the following:
``(2) Disability determinations.--A borrower who
has been determined by the Secretary of Veterans
Affairs to be unemployable due to a service-connected
condition and who provides documentation of such
determination to the Secretary of Education, shall be
considered permanently and totally disabled for the
purpose of discharging such borrower's loans under this
subsection, and such borrower shall not be required to
present additional documentation for purposes of this
subsection.''.
(c) Effective Date.--The amendments made by subsection (a)
shall take effect on July 1, 2010.
SEC. 438. CONFORMING AMENDMENTS FOR REPEAL OF SECTION 439.
(a) Part B Amendments.--Part B of title IV (20 U.S.C. 1071
et seq.) is amended--
(1) in section 422A(d)(1) (20 U.S.C. 1072a(d)(1)),
by striking ``437, and 439(q)'' and inserting ``and
437'';
(2) in section 428 (20 U.S.C. 1078)--
(A) in subsection (b)(1)(G)(i), by striking
``or 439(q)'';
(B) by striking subsection (h); and
(C) in subsection (j)(2)--
(i) by inserting ``and'' at the end
of subparagraph (C);
(ii) by striking ``; and'' at the
end of subparagraph (D) and inserting a
period; and
(iii) by striking subparagraph (E);
and
(3) in section 435(d)(1)(G) (20 U.S.C.
1085(d)(1)(G)), by striking ``428C, and 439(q),'' and
inserting ``and 428C,''.
(b) Federal Deposit Insurance Act.--Section
18(s)(4)(C)(ii)(I) of the Federal Deposit Insurance Act (12
U.S.C. 1828(s)(4)(C)(ii)(I)) is amended by striking ``as
amended'' and inserting ``as such section existed on the day
before the date of the repeal of such section''.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. AUTHORIZATION OF APPROPRIATIONS.
Section 441 (42 U.S.C. 2751) is amended--
(1) in subsection (b), by striking ``$1,000,000,000
for fiscal year 1999'' and all that follows through the
period and inserting ``such sums as may be necessary
for fiscal year 2009 and each of the five succeeding
fiscal years.''; and
(2) in subsection (c)(1), by inserting ``emergency
preparedness and response,'' after ``public safety,''.
SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES.
Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended
by striking ``$450'' and inserting ``$600''.
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
Section 443 (42 U.S.C. 2753) is amended--
(1) in subsection (b)(2)--
(A) by striking subparagraph (A); and
(B) by redesignating subparagraphs (B) and
(C) as subparagraphs (A) and (B), respectively;
and
(2) by adding at the end the following new
subsection:
``(e) Civic Education and Participation Activities.--
``(1) Use of funds.--Funds granted to an
institution under this section may be used in
accordance with such subsection to compensate
(including compensation for time spent in training and
travel directly related to civic education and
participation activities) students employed in projects
that--
``(A) teach civics in schools;
``(B) raise awareness of government
functions or resources; or
``(C) increase civic participation.
``(2) Priority for schools.--To the extent
practicable, an institution shall--
``(A) give priority to the employment of
students participating in projects that educate
or train the public about evacuation, emergency
response, and injury prevention strategies
relating to natural disasters, acts of
terrorism, and other emergency situations; and
``(B) ensure that any student compensated
with the funds described in paragraph (1)
receives appropriate training to carry out the
educational services required.
``(3) Federal share.--The Federal share of the
compensation of work-study students compensated under
this subsection may exceed 75 percent.''.
SEC. 444. FLEXIBLE USE OF FUNDS.
Section 445 (42 U.S.C. 2755) is amended by adding at the
end the following new subsection:
``(d) Flexibility in the Event of a Major Disaster.--
``(1) In general.--In the event of a major
disaster, an eligible institution located in any area
affected by such major disaster, as determined by the
Secretary, may make payments under this part to
disaster-affected students, for the period of time (not
to exceed one academic year) in which the disaster-
affected students were prevented from fulfilling the
students' work-study obligations as described in
paragraph (2)(A)(iii), as follows:
``(A) Payments may be made under this part
to disaster-affected students in an amount
equal to or less than the amount of wages such
students would have been paid under this part
had the students been able to complete the work
obligation necessary to receive work study
funds.
``(B) Payments shall not be made to any
student who was not eligible for work study or
was not completing the work obligation
necessary to receive work study funds under
this part prior to the occurrence of the major
disaster.
``(C) Any payments made to disaster-
affected students under this subsection shall
meet the matching requirements of section 443,
unless such matching requirements are waived by
the Secretary.
``(2) Definitions.--In this subsection:
``(A) The term `disaster-affected student'
means a student enrolled at an eligible
institution who--
``(i) received a work-study award
under this section for the academic
year during which a major disaster
occurred;
``(ii) earned Federal work-study
wages from such eligible institution
for such academic year;
``(iii) was prevented from
fulfilling the student's work-study
obligation for all or part of such
academic year due to such major
disaster; and
``(iv) was unable to be reassigned
to another work-study job.
``(B) The term `major disaster' has the
meaning given such term in section 102(2) of
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5122(2)).''.
SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.
Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by
striking ``$50,000'' and inserting ``$75,000''.
SEC. 446. ADDITIONAL FUNDS FOR OFF-CAMPUS COMMUNITY SERVICE.
Section 447 (42 U.S.C. 2756a) is amended--
(1) by striking ``Each institution participating''
and inserting ``(a) Community Service-Learning.--Each
institution participating''; and
(2) by adding at the end the following new
subsection:
``(b) Off-Campus Community Service.--
``(1) Grants authorized.--In addition to funds made
available under section 443(b)(2)(A), the Secretary is
authorized to award grants to institutions
participating under this part to supplement off-campus
community service employment.
``(2) Use of funds.--An institution shall ensure
that funds granted to such institution under this
subsection are used in accordance with section
443(b)(2)(A) to recruit and compensate students
(including compensation for time spent in training and
for travel directly related to such community service).
``(3) Priority.--In awarding grants under this
subsection, the Secretary shall give priority to
applications that support postsecondary students
assisting with early childhood education activities and
activities in preparation for emergencies and natural
disasters.
``(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as may be necessary for fiscal
year 2009 and each of the five succeeding fiscal
years.''.
SEC. 447. WORK COLLEGES.
Section 448 (42 U.S.C. 2756b) is amended--
(1) by striking ``work-learning'' each place it
appears and inserting ``work-learning-service'';
(2) by striking subsection (e) and inserting the
following:
``(e) Definitions.--For the purpose of this section--
``(1) the term `work college' means an eligible
institution that--
``(A) has been a public or private
nonprofit, four-year, degree-granting
institution with a commitment to community
service;
``(B) has operated a comprehensive work-
learning-service program for at least two
years;
``(C) requires students, including at least
one-half of all students who are enrolled on a
full-time basis, to participate in a
comprehensive work-learning-service program for
at least five hours each week, or at least 80
hours during each period of enrollment, except
summer school, unless the student is engaged in
an institutionally organized or approved study
abroad or externship program; and
``(D) provides students participating in
the comprehensive work-learning-service program
with the opportunity to contribute to their
education and to the welfare of the community
as a whole; and
``(2) the term `comprehensive student work-
learning-service program' means a student work-
learning-service program that--
``(A) is an integral and stated part of the
institution's educational philosophy and
program;
``(B) requires participation of all
resident students for enrollment and
graduation;
``(C) includes learning objectives,
evaluation, and a record of work performance as
part of the student's college record;
``(D) provides programmatic leadership by
college personnel at levels comparable to
traditional academic programs;
``(E) recognizes the educational role of
work-learning-service supervisors; and
``(F) includes consequences for
nonperformance or failure in the work-learning-
service program similar to the consequences for
failure in the regular academic program.''; and
(3) in subsection (f), by striking ``$5,000,000''
and all that follows through the period and inserting
``such sums as may be necessary for fiscal year 2009
and each of the five succeeding fiscal years.''.
PART D--FEDERAL DIRECT STUDENT LOAN
SEC. 451. TERMS AND CONDITIONS OF LOANS.
(a) Income-Based Repayment.--Section 455(d)(1) (20 U.S.C.
1087e(d)(1)) is amended--
(1) in subparagraph (C), by striking ``and'' after
the semicolon;
(2) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(E) beginning on July 1, 2009, an income-
based repayment plan that enables borrowers who
have a partial financial hardship to make a
lower monthly payment in accordance with
section 493C, except that the plan described in
this subparagraph shall not be available to the
borrower of a Federal Direct PLUS Loan made on
behalf of a dependent student or a Federal
Direct Consolidation Loan, if the proceeds of
such loan were used to discharge the liability
on such Federal Direct PLUS Loan or a loan
under section 428B made on behalf of a
dependent student.''.
(b) Public Service Job Definition.--
(1) In general.--Section 455(m)(3)(B) (20 U.S.C.
1087e(m)(3)(B)) is amended to read as follows:
``(B) Public service job.--The term `public
service job' means--
``(i) a full-time job in emergency
management, government (excluding time
served as a member of Congress),
military service, public safety, law
enforcement, public health (including
nurses, nurse practitioners, nurses in
a clinical setting, and full-time
professionals engaged in health care
practitioner occupations and health
care support occupations, as such terms
are defined by the Bureau of Labor
Statistics), public education, social
work in a public child or family
service agency, public interest law
services (including prosecution or
public defense or legal advocacy on
behalf of low-income communities at a
nonprofit organization), early
childhood education (including licensed
or regulated childcare, Head Start, and
State funded prekindergarten), public
service for individuals with
disabilities, public service for the
elderly, public library sciences,
school-based library sciences and other
school-based services, or at an
organization that is described in
section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from
taxation under section 501(a) of such
Code; or
``(ii) teaching as a full-time
faculty member at a Tribal College or
University as defined in section 316(b)
and other faculty teaching in high-
needs subject areas or areas of
shortage (including nurse faculty,
foreign language faculty, and part-time
faculty at community colleges), as
determined by the Secretary.''.
(2) Ineligibility for double benefits.--Section
455(m) (20 U.S.C. 1087e(m)) is further amended by
adding at the end the following:
``(4) Ineligibility for double benefits.--No
borrower may, for the same service, receive a reduction
of loan obligations under both this subsection and
section 428J, 428K, 428L, or 460.''.
(c) Identity Fraud Protection.--Section 455 (as amended by
this section) (20 U.S.C. 1087e) is amended by adding at the end
the following:
``(n) Identity Fraud Protection.--The Secretary shall take
such steps as may be necessary to ensure that monthly Federal
Direct Loan statements and other publications of the Department
do not contain more than four digits of the Social Security
number of any individual.''.
(d) No Accrual of Interest for Active Duty Service
Members.--Section 455 (as amended by this section) (20 U.S.C.
1087e) is further amended by adding at the end the following:
``(o) No Accrual of Interest for Active Duty Service
Members.--
``(1) In general.--Notwithstanding any other
provision of this part and in accordance with
paragraphs (2) and (4), interest shall not accrue for
an eligible military borrower on a loan made under this
part for which the first disbursement is made on or
after October 1, 2008.
``(2) Consolidation loans.--In the case of any
consolidation loan made under this part that is
disbursed on or after October 1, 2008, interest shall
not accrue pursuant to this subsection only on such
portion of such loan as was used to repay a loan made
under this part for which the first disbursement is
made on or after October 1, 2008.
``(3) Eligible military borrower.--In this
subsection, the term `eligible military borrower' means
an individual who--
``(A)(i) is serving on active duty during a
war or other military operation or national
emergency; or
``(ii) is performing qualifying National
Guard duty during a war or other military
operation or national emergency; and
``(B) is serving in an area of hostilities
in which service qualifies for special pay
under section 310 of title 37, United States
Code.
``(4) Limitation.--An individual who qualifies as
an eligible military borrower under this subsection may
receive the benefit of this subsection for not more
than 60 months.''.
(e) Disclosures.--Section 455 (as amended by this section)
(20 U.S.C. 1087e) is further amended by adding at the end the
following:
``(p) Disclosures.--Each institution of higher education
with which the Secretary has an agreement under section 453,
and each contractor with which the Secretary has a contract
under section 456, shall, with respect to loans under this part
and in accordance with such regulations as the Secretary shall
prescribe, comply with each of the requirements under section
433 that apply to a lender with respect to a loan under part
B.''.
SEC. 452. FUNDS FOR ADMINISTRATIVE EXPENSES.
Section 458(a) (20 U.S.C. 1087h(a)) is amended--
(1) in paragraph (2)--
(A) in the heading of such paragraph, by
striking ``2011'' and inserting ``2014''; and
(B) by striking ``2011'' and inserting
``2014''; and
(2) in paragraph (3), by striking ``2011'' and
inserting ``2014''.
SEC. 453. GUARANTY AGENCY RESPONSIBILITIES AND PAYMENTS; REPORTS AND
COST ESTIMATES.
Section 459A of the Higher Education Act of 1965 (20 U.S.C.
1087i-1) is amended--
(1) by redesignating subsection (d) as subsection
(f); and
(2) by inserting after subsection (c) the
following:
``(d) Guaranty Agency Responsibilities and Payments.--
Notwithstanding any other provision of this Act, beginning on
the date on which the Secretary purchases a loan under this
section--
``(1) the guaranty agency that insured such loan
shall cease to have any obligations, responsibilities,
or rights (including rights to any payment) under this
Act for any activity related to the administration of
such loan that is carried out or required to be carried
out on or after the date of such purchase; and
``(2) the insurance issued by such agency pursuant
to section 428(b) for such loan shall cease to be
effective with respect to any default on such loan that
occurs on or after the date of such purchase.
``(e) Reports and Cost Estimates.--The Secretary shall
prepare, transmit to the authorizing committees, and make
available to the public, the following:
``(1) Quarterly reports.--
``(A) Contents.--Not later than 60 days
after the end of each quarter during the period
beginning July 1, 2008, and ending September
30, 2009, a quarterly report on--
``(i) the number of loans the
Secretary has agreed to purchase, or
has purchased, using the authority
provided under this section, and the
total amount of outstanding principal
and accrued interest of such loans,
during such period; and
``(ii) the number of loans in which
the Secretary has purchased a
participation interest, and the total
amount of outstanding principal and
accrued interest of such loans, during
such period.
``(B) Disaggregated information.--For each
quarterly report, the information described in
clauses (i) and (ii) of subparagraph (A) shall
be disaggregated by lender and, for each
lender, by category of institution (using the
categories described in section 132(d)) and
type of loan.
``(2) Estimates of purchase program costs.--Not
later than February 15, 2010, an estimate of the costs
associated with the program of purchasing loans
described in paragraph (1)(A)(i) during the period
beginning July 1, 2008, and ending September 30, 2009,
and an estimate of the costs associated with the
program of purchasing a participation interest in loans
described in paragraph (1)(A)(ii) during such period.
Each such estimate shall--
``(A) contain the same level of detail, and
be reported in a similar manner, as the budget
estimates provided for the loan program under
part B and the direct student loan program
under this part in the President's annual
budget submission to Congress, except that
current and future administrative costs shall
also be reported;
``(B) include an estimate of the gross and
net outlays that have been, or will be,
incurred by the Federal Government (including
subsidy and administrative costs, and any
payments made by the Department to lenders,
trusts, or other entities related to such
activities) in purchasing such loans or
purchasing a participation interest in such
loans during such period (as applicable); and
``(C) include a comparison of--
``(i) the average amount of the
gross and net outlays (including costs
and payments) described in subparagraph
(B) for each $100 of loans purchased or
for which a participation interest was
purchased (as applicable) during such
period, disaggregated by type of loan;
with
``(ii) the average amount of such
gross and net outlays (including costs
and payments) to the Federal Government
for each $100 of comparable loans made
under this part and part B during such
period, disaggregated by part and by
type of loan.
``(3) Annual cost estimates.--Not later than
February 15 of the fiscal year following each of the
fiscal years 2008, 2009, and 2010, an annual estimate
of the costs associated with the program of purchasing
loans described in paragraph (1)(A)(i), and an annual
estimate of the costs associated with the program of
purchasing a participation interest in loans described
in paragraph (1)(A)(ii), that includes the information
described in paragraph (2) for such fiscal year.''.
SEC. 454. LOAN CANCELLATION FOR TEACHERS.
(a) In General.--Section 460 (20 U.S.C. 1087j) is amended--
(1) in subsection (b)(1)(A)(i)--
(A) by inserting ``or location'' after ``a
school''; and
(B) by inserting ``or locations'' after
``schools''; and
(2) in subsection (c)(3)(B)(iii), by inserting
``or, in the case of a teacher who is employed by an
educational service agency, as certified by the chief
administrative officer of such agency,'' after
``borrower is employed,''.
(b) Prevention of Double Benefits.--Section 460(g)(2) (20
U.S.C. 1087j(g)(2)) is amended to read as follows:
``(2) Prevention of double benefits.--No borrower
may, for the same voluntary service, receive a benefit
under both this section and--
``(A) section 428J;
``(B) section 428K;
``(C) section 455(m); or
``(D) subtitle D of title I of the National
and Community Service Act of 1990 (42 U.S.C.
12571 et seq.).''.
(c) Technical Amendments.--Section 460(b) (as amended by
subsection (a)(1)) (20 U.S.C. 1087j(b)) is further amended--
(1) by striking paragraph (2);
(2) by striking ``Program Authorized.--'' and all
that follows through ``The Secretary shall'' and
inserting ``Program Authorized.--The Secretary shall'';
(3) by redesignating subparagraph (B) as paragraph
(2), and adjusting the margin accordingly; and
(4) by redesignating subparagraph (A) as paragraph
(1), by redesignating clauses (i) and (ii) of such
paragraph (as so redesignated) as subparagraphs (A) and
(B), respectively, and by adjusting the margins
accordingly.
(d) Conforming Amendments.--Section 460 (20 U.S.C. 1087j)
is further amended--
(1) in subsection (c)(1), by striking ``(b)(1)(A)''
and inserting ``(b)(1)'';
(2) in subsection (c)(3)--
(A) in subparagraph (A)(i), by striking
``(b)(1)'' and inserting ``(b)''; and
(B) in subparagraph (B)(i), by striking
``(b)(1)'' and inserting ``(b)''; and
(3) in subsection (g)(3), by striking
``(b)(1)(A)(ii)'' and inserting ``(b)(1)(B)''.
PART E--FEDERAL PERKINS LOANS
SEC. 461. EXTENSION OF AUTHORITY.
Section 461(b) (20 U.S.C. 1087aa(b)) is amended--
(1) in paragraph (1), by striking ``$250,000,000
for fiscal year 1999'' and all that follows through the
period and inserting ``$300,000,000 for fiscal year
2009 and for each of the five succeeding fiscal
years.''; and
(2) in paragraph (2), by striking ``2003'' each
place it appears and inserting ``2015''.
SEC. 462. ALLOWANCE FOR BOOKS AND SUPPLIES.
Section 462(c)(4)(D) (20 U.S.C. 1087bb(c)(4)(D)) is amended
by striking ``$450'' and inserting ``$600''.
SEC. 463. AGREEMENTS WITH INSTITUTIONS.
(a) Transfers for Collection.--Section 463(a)(4)(B) (20
U.S.C. 1087cc(a)(4)(B)) is amended to read as follows:
``(B) if the institution is not one
described in subparagraph (A), the Secretary
may allow such institution to refer such note
or agreement to the Secretary, without
recompense, except that, once every six months,
any sums collected on such a loan (less an
amount not to exceed 30 percent of any such
sums collected to cover the Secretary's
collection costs) shall be repaid to such
institution and treated as an additional
capital contribution under section 462;''.
(b) Revise Authority To Prescribe Additional Fiscal
Controls.--Section 463(a)(9) (20 U.S.C. 1087cc(a)(9)) is
amended by inserting ``, except that nothing in this paragraph
shall be construed to permit the Secretary to require the
assignment of loans to the Secretary other than as is provided
for in paragraphs (4) and (5)'' before the period.
SEC. 464. PERKINS LOAN TERMS AND CONDITIONS.
(a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a)) is
amended--
(1) in paragraph (2)(A)--
(A) by striking ``$4,000'' in clause (i)
and inserting ``$5,500''; and
(B) by striking ``$6,000'' in clause (ii)
and inserting ``$8,000''; and
(2) in paragraph (2)(B)--
(A) by striking ``$40,000'' in clause (i)
and inserting ``$60,000'';
(B) by striking ``$20,000'' in clause (ii)
and inserting ``$27,500''; and
(C) by striking ``$8,000'' in clause (iii)
and inserting ``$11,000''.
(b) Discharge and Cancellation Rights in Cases of
Disability.--
(1) Amendment.--Section 464 (20 U.S.C. 1087dd(c))
is further amended--
(A) in subsection (c)(1)(F), by striking
``canceled upon the death'' and all that
follows through the semicolon and inserting
``cancelled--
``(i) upon the death of the
borrower;
``(ii) if the borrower becomes
permanently and totally disabled as
determined in accordance with
regulations of the Secretary;
``(iii) if the borrower is unable
to engage in any substantial gainful
activity by reason of any medically
determinable physical or mental
impairment that can be expected to
result in death, has lasted for a
continuous period of not less than 60
months, or can be expected to last for
a continuous period of not less than 60
months; or
``(iv) if the borrower is
determined by the Secretary of Veterans
Affairs to be unemployable due to a
service-connected disability;''; and
(B) by adding at the end the following:
``(k) The Secretary may develop such additional safeguards
as the Secretary determines necessary to prevent fraud and
abuse in the cancellation of liability under subsection
(c)(1)(F). Notwithstanding subsection (c)(1)(F), the Secretary
may promulgate regulations to resume collection on loans
cancelled under subsection (c)(1)(F) in any case in which--
``(1) a borrower received a cancellation of
liability under subsection (c)(1)(F) and after the
cancellation the borrower--
``(A) receives a loan made, insured, or
guaranteed under this title; or
``(B) has earned income in excess of the
poverty line; or
``(2) the Secretary determines necessary.''.
(2) Effective date.--The amendments made by
paragraph (1) shall take effect on July 1, 2008.
(c) Forbearance.--Section 464 (20 U.S.C. 1087dd) is further
amended--
(1) in subsection (e)--
(A) in the matter preceding paragraph (1),
by striking ``, upon written request,'' and
inserting ``, as documented in accordance with
paragraph (2),'';
(B) by redesignating paragraphs (1) through
(3) as subparagraphs (A) through (C),
respectively;
(C) by inserting ``(1)'' after
``Forbearance.--''; and
(D) by adding at the end the following:
``(2) For the purpose of paragraph (1), the terms of
forbearance agreed to by the parties shall be documented by--
``(A) confirming the agreement of the borrower by
notice to the borrower from the institution of higher
education; and
``(B) recording the terms in the borrower's
file.'';
(2) in subsection (h)(1)(A), by striking ``12
ontime'' and inserting ``9 on-time''; and
(3) in subsection (j)(2), by striking ``(e)(3)''
and inserting ``(e)(1)(C)''.
SEC. 465. CANCELLATION FOR PUBLIC SERVICE.
Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
(1) in paragraph (2)--
(A) by striking subparagraph (A) and
inserting the following:
``(A) as a full-time teacher for service in an
academic year (including such a teacher employed by an
educational service agency)--
``(i) in a public or other nonprofit
private elementary school or secondary school,
which, for the purpose of this paragraph and
for that year--
``(I) has been determined by the
Secretary (pursuant to regulations of
the Secretary and after consultation
with the State educational agency of
the State in which the school is
located) to be a school in which the
number of children meeting a measure of
poverty under section 1113(a)(5) of the
Elementary and Secondary Education Act
of 1965, exceeds 30 percent of the
total number of children enrolled in
such school; and
``(II) is in the school district of
a local educational agency which is
eligible in such year for assistance
pursuant to part A of title I of the
Elementary and Secondary Education Act
of 1965; or
``(ii) in one or more public, or nonprofit
private, elementary schools or secondary
schools or locations operated by an educational
service agency that have been determined by the
Secretary (pursuant to regulations of the
Secretary and after consultation with the State
educational agency of the State in which the
educational service agency operates) to be a
school or location at which the number of
children taught who meet a measure of poverty
under section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965, exceeds 30
percent of the total number of children taught
at such school or location;'';
(B) in subparagraph (B), by striking ``Head
Start Act which'' and inserting ``Head Start
Act, or in a prekindergarten or child care
program that is licensed or regulated by the
State, that'';
(C) in subparagraph (C), by inserting ``,
including a system administered by an
educational service agency'' after ``secondary
school system'';
(D) by striking subparagraph (F) and
inserting the following:
``(F) as a full-time law enforcement officer or
corrections officer for service to local, State, or
Federal law enforcement or corrections agencies, or as
a full-time attorney employed in a defender
organization established in accordance with section
3006A(g)(2) of title 18, United States Code;'';
(E) in subparagraph (H), by striking ``or''
after the semicolon;
(F) in subparagraph (I), by striking the
period and inserting a semicolon; and
(G) by inserting before the matter
following subparagraph (I) the following:
``(J) as a full-time fire fighter for service to a
local, State, or Federal fire department or fire
district;
``(K) as a full-time faculty member at a Tribal
College or University, as that term is defined in
section 316;
``(L) as a librarian, if the librarian has a
master's degree in library science and is employed in--
``(i) an elementary school or secondary
school that is eligible for assistance under
part A of title I of the Elementary and
Secondary Education Act of 1965; or
``(ii) a public library that serves a
geographic area that contains one or more
schools eligible for assistance under part A of
title I of the Elementary and Secondary
Education Act of 1965; or
``(M) as a full-time speech language pathologist,
if the pathologist has a masters degree and is working
exclusively with schools that are eligible for
assistance under title I of the Elementary and
Secondary Education Act of 1965.''; and
(2) in paragraph (3)(A)--
(A) in clause (i)--
(i) by inserting ``(D),'' after
``(C),''; and
(ii) by striking ``or (I)'' and
inserting ``(I), (J), (K), (L), or
(M)'';
(B) in clause (ii), by inserting ``or''
after the semicolon;
(C) by striking clause (iii); and
(D) by redesignating clause (iv) as clause
(iii).
SEC. 466. SENSE OF CONGRESS REGARDING FEDERAL PERKINS LOANS.
It is the sense of Congress that the Federal Perkins Loan
Program, which provides low-interest loans to help needy
students finance the costs of postsecondary education, is an
important part of Federal student aid, and should remain a
campus-based aid program at colleges and universities.
PART F--NEED ANALYSIS
SEC. 471. COST OF ATTENDANCE.
(a) Amendments.--Section 472(3) (20 U.S.C. 1087ll(3)) is
amended--
(1) in subparagraph (B), by striking ``and'' after
the semicolon;
(2) by redesignating subparagraph (C) as
subparagraph (D); and
(3) by inserting after subparagraph (B), as amended
by paragraph (1), the following:
``(C) for students who live in housing
located on a military base or for which a basic
allowance is provided under section 403(b) of
title 37, United States Code, shall be an
allowance based on the expenses reasonably
incurred by such students for board but not for
room; and''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on July 1, 2010.
SEC. 472. DISCRETION TO MAKE ADJUSTMENTS.
(a) Amendments.--Section 479A(a) (as amended by Public Law
110-84) (20 U.S.C. 1087tt(a)) is amended--
(1) by striking ``medical or dental expenses'' and
inserting ``medical, dental, or nursing home
expenses'';
(2) by inserting ``or dependent care'' after
``child care'';
(3) by inserting ``student or'' before ``family
member who is a dislocated worker''; and
(4) by striking the second to last sentence and
inserting the following: ``In addition, nothing in this
title shall be interpreted as limiting the authority of
the student financial aid administrator in such cases
(1) to request and use supplementary information about
the financial status or personal circumstances of
eligible applicants in selecting recipients and
determining the amount of awards under this title, or
(2) to offer a dependent student financial assistance
under section 428H or a Federal Direct Unsubsidized
Stafford Loan without requiring the parents of such
student to file the financial aid form prescribed under
section 483 if the student financial aid administrator
verifies that the parent or parents of such student
have ended financial support of such student and refuse
to file such form.''.
(b) Effective Date Amendment to the College Cost Reduction
and Access Act.--Section 603(b) of the College Cost Reduction
and Access Act (Public Law 110-84) is amended by striking
``July 1, 2009'' and inserting ``the date of enactment of the
Higher Education Opportunity Act''.
SEC. 473. DEFINITIONS.
(a) Total Income.--Section 480(a) (as amended by Public Law
110-84) (20 U.S.C. 1087vv(a)) is amended--
(1) in paragraph (1)--
(A) by inserting ``(A)'' after ``(1)'';
(B) by inserting ``subparagraph (B) and''
after ``provided in''; and
(C) by adding at the end the following new
subparagraph:
``(B) Notwithstanding section 478(a), the Secretary may
provide for the use of data from the second preceding tax year
when and to the extent necessary to carry out the
simplification of applications (including simplification for a
subset of applications) used for the estimation and
determination of financial aid eligibility. Such simplification
may include the sharing of data between the Internal Revenue
Service and the Department, pursuant to the consent of the
taxpayer.''; and
(2) in paragraph (2), by inserting ``no portion of
veterans' education benefits received by an
individual,'' after ``any program by an individual,''.
(b) Untaxed Income and Benefits.--Section 480(b)(1)(E) (as
amended by Public Law 110-84) (20 U.S.C. 1087vv(b)(1)(E)) is
amended by inserting ``, except that the value of on-base
military housing or the value of basic allowance for housing
determined under section 403(b) of title 37, United States
Code, received by the parents, in the case of a dependent
student, or the student or student's spouse, in the case of an
independent student, shall be excluded'' before the semicolon.
(c) Independent Student.--Section 480(d)(1) (as amended by
Public Law 110-84) (20 U.S.C. 1087vv(d)(1)) is amended--
(1) by striking subparagraph (B) and inserting the
following:
``(B) is an orphan, in foster care, or a
ward of the court, or was an orphan, in foster
care, or a ward of the court at any time when
the individual was 13 years of age or older;'';
and
(2) by striking subparagraph (C) and inserting the
following:
``(C) is, or was immediately prior to
attaining the age of majority, an emancipated
minor or in legal guardianship as determined by
a court of competent jurisdiction in the
individual's State of legal residence;''.
(d) Treatment of Cooperative Education Work Income.--
Section 480(e) (as amended by Public Law 110-84) (20 U.S.C.
1087vv(e)) is amended--
(1) by redesignating paragraphs (2) through (5) as
paragraphs (3) through (6), respectively; and
(2) by inserting after paragraph (1) the following
new paragraph:
``(2) any income earned from work under a
cooperative education program offered by an institution
of higher education;''.
(e) Other Financial Assistance.--Section 480(j)(1) (20
U.S.C. 1087vv(j)(1)) is amended--
(1) by striking ``veterans' education benefits as
defined in subsection (c), and''; and
(2) by inserting before the period at the end the
following: ``, but excluding veterans' education
benefits as defined in subsection (c)''.
(f) Effective Date.--The amendments made by this section
shall take effect on July 1, 2010.
PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE
SEC. 481. DEFINITIONS.
Section 481 (20 U.S.C. 1088) is amended--
(1) in subsection (a)(2)(B), by inserting ``and
that measures program length in credit hours or clock
hours'' after ``baccalaureate degree''; and
(2) by adding at the end the following:
``(e) Consumer Reporting Agency.--For purposes of this
title, the term `consumer reporting agency' has the meaning
given the term `consumer reporting agency that compiles and
maintains files on consumers on a nationwide basis' in Section
603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)).
``(f) Definition of Educational Service Agency.--For
purposes of parts B, D, and E, the term `educational service
agency' has the meaning given the term in section 9101 of the
Elementary and Secondary Education Act of 1965.''.
SEC. 482. MASTER CALENDAR.
(a) Amendment.--Section 482 (20 U.S.C. 1089) is amended--
(1) in subsection (a)(1), by striking subparagraphs
(B) and (C) and inserting the following:
``(B) by March 1: proposed modifications,
updates, and notices pursuant to sections 478
and 483(a)(5) published in the Federal
Register;
``(C) by June 1: final modifications,
updates, and notices pursuant to sections 478
and 483(a)(5) published in the Federal
Register;''; and
(2) by adding at the end the following:
``(e) Compliance Calendar.--Prior to the beginning of each
award year, the Secretary shall provide to institutions of
higher education a list of all the reports and disclosures
required under this Act. The list shall include--
``(1) the date each report or disclosure is
required to be completed and to be submitted, made
available, or disseminated;
``(2) the required recipients of each report or
disclosure;
``(3) any required method for transmittal or
dissemination of each report or disclosure;
``(4) a description of the content of each report
or disclosure sufficient to allow the institution to
identify the appropriate individuals to be assigned the
responsibility for such report or disclosure;
``(5) references to the statutory authority,
applicable regulations, and current guidance issued by
the Secretary regarding each report or disclosure; and
``(6) any other information which is pertinent to
the content or distribution of the report or
disclosure.''.
(b) Effective Date.--The amendment made by subsection
(a)(1) shall take effect on July 1, 2010.
SEC. 483. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS AND PROCESSES.
(a) Common Financial Aid Form Development and Processing.--
Section 483 (20 U.S.C. 1090) is amended--
(1) in subsection (a), by striking paragraphs (1)
through (7) and inserting the following:
``(1) In general.--The Secretary, in cooperation
with representatives of agencies and organizations
involved in student financial assistance, shall
produce, distribute, and process free of charge common
financial reporting forms as described in this
subsection to be used for application and reapplication
to determine the need and eligibility of a student for
financial assistance under parts A through E (other
than subpart 4 of part A). The forms shall be made
available to applicants in both paper and electronic
formats and shall be referred to as the `Free
Application for Federal Student Aid' or the `FAFSA'.
The Secretary shall work to make the FAFSA consumer-
friendly and to make questions on the FAFSA easy for
students and families to read and understand, and shall
ensure that the FAFSA is available in formats
accessible to individuals with disabilities.
``(2) Paper format.--
``(A) In general.--The Secretary shall
develop, make available, and process--
``(i) a paper version of EZ FAFSA,
as described in subparagraph (B); and
``(ii) a paper version of the other
forms described in this subsection, in
accordance with subparagraph (C), for
any applicant who does not meet the
requirements of or does not wish to use
the process described in subparagraph
(B).
``(B) EZ fafsa.--
``(i) In general.--The Secretary
shall develop and use, after
appropriate field testing, a simplified
paper form, to be known as the EZ
FAFSA, to be used for applicants
meeting the requirements of subsection
(b) or (c) of section 479.
``(ii) Reduced data requirements.--
The EZ FAFSA shall permit an applicant
to submit, for financial assistance
purposes, only the data elements
required to make a determination of
whether the applicant meets the
requirements under subsection (b) or
(c) of section 479.
``(iii) State data.--The Secretary
shall include on the EZ FAFSA such data
items as may be necessary to award
State financial assistance, as provided
under paragraph (5), except that the
Secretary shall not include a State's
data if that State does not permit the
State's resident applicants to use the
EZ FAFSA for State assistance.
``(iv) Free availability and
processing.--The provisions of
paragraph (6) shall apply to the EZ
FAFSA, and the data collected by means
of the EZ FAFSA shall be available to
institutions of higher education,
guaranty agencies, and States in
accordance with paragraph (10).
``(C) Promoting the use of electronic
fafsa.--
``(i) In general.--The Secretary
shall make all efforts to encourage all
applicants to utilize the electronic
version of the forms described in
paragraph (3).
``(ii) Maintenance of the fafsa in
a printable electronic file.--The
Secretary shall maintain a version of
the paper forms described in
subparagraphs (A) and (B) in a
printable electronic file that is
easily portable, accessible, and
downloadable to students on the same
website used to provide students with
the electronic version of the forms
described in paragraph (3).
``(iii) Requests for printed
copy.--The Secretary shall provide a
printed copy of the full paper version
of FAFSA upon request.
``(iv) Reporting requirement.--The
Secretary shall maintain data, and
periodically report to Congress, on the
impact of the digital divide on
students completing applications for
aid under this title. The Secretary
shall report on the steps taken to
eliminate the digital divide and reduce
production of the paper form described
in subparagraph (A). The Secretary's
report shall specifically address the
impact of the digital divide on the
following student populations:
``(I) Independent students.
``(II) Traditionally
underrepresented students.
``(III) Dependent students.
``(3) Electronic format.--
``(A) In general.--The Secretary shall
produce, distribute, and process forms in
electronic format to meet the requirements of
paragraph (1). The Secretary shall develop an
electronic version of the forms for applicants
who do not meet the requirements of subsection
(b) or (c) of section 479.
``(B) Simplified applications: fafsa on the
web.--
``(i) In general.--The Secretary
shall develop and use a simplified
electronic version of the form to be
used by applicants meeting the
requirements under subsection (b) or
(c) of section 479.
``(ii) Reduced data requirements.--
The simplified electronic version of
the forms shall permit an applicant to
submit, for financial assistance
purposes, only the data elements
required to make a determination of
whether the applicant meets the
requirements under subsection (b) or
(c) of section 479.
``(iii) Use of forms.--Nothing in
this subsection shall be construed to
prohibit the use of the forms developed
by the Secretary pursuant to this
paragraph by an eligible institution,
eligible lender, guaranty agency, State
grant agency, private computer software
provider, a consortium thereof, or such
other entities as the Secretary may
designate.
``(C) State data.--The Secretary shall
include on the electronic version of the forms
such items as may be necessary to determine
eligibility for State financial assistance, as
provided under paragraph (5), except the
Secretary shall not require an applicant to
enter data pursuant to this subparagraph that
are required by any State other than the
applicant's State of residence.
``(D) Availability and processing.--The
data collected by means of the simplified
electronic version of the forms shall be
available to institutions of higher education,
guaranty agencies, and States in accordance
with paragraph (10).
``(E) Privacy.--The Secretary shall ensure
that data collection under this paragraph
complies with section 552a of title 5, United
States Code, and that any entity using the
electronic version of the forms developed by
the Secretary pursuant to this paragraph shall
maintain reasonable and appropriate
administrative, technical, and physical
safeguards to ensure the integrity and
confidentiality of the information, and to
protect against security threats, or
unauthorized uses or disclosures of the
information provided on the electronic version
of the forms. Data collected by such electronic
version of the forms shall be used only for the
application, award, and administration of aid
awarded under this title, State aid, or aid
awarded by eligible institutions or such
entities as the Secretary may designate. No
data collected by such electronic version of
the forms shall be used for making final aid
awards under this title until such data have
been processed by the Secretary or a contractor
or designee of the Secretary, except as may be
permitted under this title.
``(F) Signature.--Notwithstanding any other
provision of this Act, the Secretary may
continue to permit an electronic version of the
form under this paragraph to be submitted
without a signature, if a signature is
subsequently submitted by the applicant or if
the applicant uses a personal identification
number provided by the Secretary under
subparagraph (G).
``(G) Personal identification numbers
authorized.--The Secretary may continue to
assign to an applicant a personal
identification number--
``(i) to enable the applicant to
use such number as a signature for
purposes of completing an electronic
version of a form developed under this
paragraph; and
``(ii) for any purpose determined
by the Secretary to enable the
Secretary to carry out this title.
``(H) Personal identification number
improvement.--The Secretary shall continue to
work with the Commissioner of Social Security
to minimize the time required for an applicant
to obtain a personal identification number when
applying for aid under this title through an
electronic version of a form developed under
this paragraph.
``(4) Streamlining.--
``(A) Streamlined reapplication process.--
``(i) In general.--The Secretary
shall continue to streamline
reapplication forms and processes for
an applicant who applies for financial
assistance under this title in the next
succeeding academic year subsequent to
an academic year for which such
applicant applied for financial
assistance under this title.
``(ii) Updating of data elements.--
The Secretary shall determine, in
cooperation with States, institutions
of higher education, agencies, and
organizations involved in student
financial assistance, the data elements
that may be transferred from the
previous academic year's application
and those data elements that shall be
updated.
``(iii) Reduced data authorized.--
Nothing in this title shall be
construed as limiting the authority of
the Secretary to reduce the number of
data elements required of reapplicants.
``(iv) Zero family contribution.--
Applicants determined to have a zero
family contribution pursuant to section
479(c) shall not be required to provide
any financial data in a reapplication
form, except data that are necessary to
determine eligibility under such
section.
``(B) Reduction of data elements.--
``(i) Reduction encouraged.--Of the
number of data elements on the FAFSA
used for the 2009-2010 award year, the
Secretary, in cooperation with
representatives of agencies and
organizations involved in student
financial assistance and consistent
with efforts under subsection (c),
shall continue to reduce the number of
such data elements required to be
entered by all applicants, with the
goal of reducing such number by 50
percent.
``(ii) Report.--The Secretary shall
submit a report on the process of this
reduction to each of the authorizing
committees by June 30, 2011.
``(5) State requirements.--
``(A) In general.--Except as provided in
paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii),
the Secretary shall include on the forms
developed under this subsection, such State-
specific data items as the Secretary determines
are necessary to meet State requirements for
need-based State aid. Such items shall be
selected in consultation with State agencies in
order to assist in the awarding of State
financial assistance in accordance with the
terms of this subsection. The number of such
data items shall not be less than the number
included on the form for the 2008-2009 award
year unless a State notifies the Secretary that
the State no longer requires those data items
for the distribution of State need-based aid.
``(B) Annual review.--The Secretary shall
conduct an annual review to determine--
``(i) which data items each State
requires to award need-based State aid;
and
``(ii) if the State will permit an
applicant to file a form described in
paragraph (2)(B) or (3)(B).
``(C) Federal register notice.--Beginning
with the forms developed under paragraphs
(2)(B) and (3)(B) for the award year 2010-2011,
the Secretary shall publish on an annual basis
a notice in the Federal Register requiring
State agencies to inform the Secretary--
``(i) if the State agency is unable
to permit applicants to utilize the
simplified forms described in
paragraphs (2)(B) and (3)(B); and
``(ii) of the State-specific
nonfinancial data that the State agency
requires for delivery of State need-
based financial aid.
``(D) Use of simplified forms encouraged.--
The Secretary shall encourage States to take
such steps as are necessary to encourage the
use of simplified forms under this subsection,
including those forms described in paragraphs
(2)(B) and (3)(B), for applicants who meet the
requirements of subsection (b) or (c) of
section 479.
``(E) Consequences if state does not accept
simplified forms.--If a State does not permit
an applicant to file a form described in
paragraph (2)(B) or (3)(B) for purposes of
determining eligibility for State need-based
financial aid, the Secretary may determine that
State-specific questions for such State will
not be included on a form described in
paragraph (2)(B) or (3)(B). If the Secretary
makes such determination, the Secretary shall
advise the State of the Secretary's
determination.
``(F) Lack of state response to request for
information.--If a State does not respond to
the Secretary's request for information under
subparagraph (B), the Secretary shall--
``(i) permit residents of that
State to complete simplified forms
under paragraphs (2)(B) and (3)(B); and
``(ii) not require any resident of
such State to complete any data items
previously required by that State under
this section.
``(G) Restriction.--The Secretary shall, to
the extent practicable, not require applicants
to complete any financial or nonfinancial data
items that are not required--
``(i) by the applicant's State; or
``(ii) by the Secretary.
``(6) Charges to students and parents for use of
forms prohibited.--The need and eligibility of a
student for financial assistance under parts A through
E (other than under subpart 4 of part A) may be
determined only by using a form developed by the
Secretary under this subsection. Such forms shall be
produced, distributed, and processed by the Secretary,
and no parent or student shall be charged a fee by the
Secretary, a contractor, a third-party servicer or
private software provider, or any other public or
private entity for the collection, processing, or
delivery of financial aid through the use of such
forms. No data collected on a form for which a fee is
charged shall be used to complete the form prescribed
under this section, except that a Federal or State
income tax form prepared by a paid income tax preparer
or preparer service for the primary purpose of filing a
Federal or State income tax return may be used to
complete the form prescribed under this section.
``(7) Restrictions on use of pin.--No person,
commercial entity, or other entity may request, obtain,
or utilize an applicant's personal identification
number assigned under paragraph (3)(G) for purposes of
submitting a form developed under this subsection on an
applicant's behalf.
``(8) Application processing cycle.--The Secretary
shall enable students to submit forms developed under
this subsection and initiate the processing of such
forms under this subsection, as early as practicable
prior to January 1 of the student's planned year of
enrollment.
``(9) Early estimates.--The Secretary shall
continue to--
``(A) permit applicants to enter data in
such forms as described in this subsection in
the years prior to enrollment in order to
obtain a non-binding estimate of the
applicant's family contribution (as defined in
section 473);
``(B) permit applicants to update
information submitted on forms described in
this subsection, without needing to re-enter
previously submitted information;
``(C) develop a means to inform applicants,
in the years prior to enrollment, of student
aid options for individuals in similar
financial situations;
``(D) develop a means to provide a clear
and conspicuous notice that the applicant's
expected family contribution is subject to
change and may not reflect the final expected
family contribution used to determine Federal
student financial aid award amounts under this
title; and
``(E) consult with representatives of
States, institutions of higher education, and
other individuals with experience or expertise
in student financial assistance application
processes in making updates to forms used to
provide early estimates under this paragraph.
``(10) Distribution of data.--Institutions of
higher education, guaranty agencies, and States shall
receive, without charge, the data collected by the
Secretary using a form developed under this subsection
for the purposes of processing loan applications and
determining need and eligibility for institutional and
State financial aid awards. Entities designated by
institutions of higher education, guaranty agencies, or
States to receive such data shall be subject to all the
requirements of this section, unless such requirements
are waived by the Secretary.
``(11) Third party servicers and private software
providers.--To the extent practicable and in a timely
manner, the Secretary shall provide, to private
organizations and consortia that develop software used
by institutions of higher education for the
administration of funds under this title, all the
necessary specifications that the organizations and
consortia must meet for the software the organizations
and consortia develop, produce, and distribute
(including any diskette, modem, or network
communications) to be so used. The specifications shall
contain record layouts for required data. The Secretary
shall develop in advance of each processing cycle an
annual schedule for providing such specifications. The
Secretary, to the extent practicable, shall use
multiple means of providing such specifications,
including conferences and other meetings, outreach, and
technical support mechanisms (such as training and
printed reference materials). The Secretary shall, from
time to time, solicit from such organizations and
consortia means of improving the support provided by
the Secretary.
``(12) Parent's social security number and birth
date.--The Secretary is authorized to include space on
the forms developed under this subsection for the
social security number and birth date of parents of
dependent students seeking financial assistance under
this title.'';
(2) by striking subsections (b) and (e);
(3) by redesignating subsections (c) and (d) (as
amended by section 103(b)(10)) as subsections (b) and
(c), respectively;
(4) in subsection (c) (as redesignated by paragraph
(3)), by striking ``that is authorized'' and all that
follows through the period at the end and inserting
``or other appropriate provider of technical assistance
and information on postsecondary educational services
for individuals with disabilities, including the
National Technical Assistance Center under section 777.
The Secretary shall continue to implement, to the
extent practicable, a toll-free telephone based system
to permit applicants who meet the requirements of
subsection (b) or (c) of section 479 to submit an
application over such system.''; and
(5) by adding at the end the following:
``(d) Assistance in Preparation of Financial Aid
Application.--
``(1) Preparation authorized.--Notwithstanding any
provision of this Act, an applicant may use a preparer
for consultative or preparation services for the
completion of a form developed under subsection (a) if
the preparer satisfies the requirements of this
subsection.
``(2) Preparer identification required.--If an
applicant uses a preparer for consultative or
preparation services for the completion of a form
developed under subsection (a), and for which a fee is
charged, the preparer shall--
``(A) include, at the time the form is
submitted to the Department, the name, address
or employer's address, social security number
or employer identification number, and
organizational affiliation of the preparer on
the applicant's form; and
``(B) be subject to the same penalties as
an applicant for purposely giving false or
misleading information in the application.
``(3) Additional requirements.--A preparer that
provides consultative or preparation services pursuant
to this subsection shall--
``(A) clearly inform each individual upon
initial contact, including contact through the
Internet or by telephone, that the FAFSA and EZ
FAFSA are free forms that may be completed
without professional assistance via paper or
electronic version of the forms that are
provided by the Secretary;
``(B) include in any advertising clear and
conspicuous information that the FAFSA and EZ
FAFSA are free forms that may be completed
without professional assistance via paper or
electronic version of the forms that are
provided by the Secretary;
``(C) if advertising or providing any
information on a website, or if providing
services through a website, include on the
website a link to the website that provides the
electronic version of the forms developed under
subsection (a); and
``(D) not produce, use, or disseminate any
other form for the purpose of applying for
Federal student financial aid other than the
form developed by the Secretary under
subsection (a).
``(4) Special rule.--Nothing in this Act shall be
construed to limit preparers of the forms required
under this title that meet the requirements of this
subsection from collecting source information from a
student or parent, including Internal Revenue Service
tax forms, in providing consultative and preparation
services in completing the forms.
``(e) Early Application and Estimated Award Demonstration
Program.--
``(1) Purpose and objectives.--The purpose of the
demonstration program under this subsection is to
measure the benefits, in terms of student aspirations
and plans to attend an institution of higher education,
and any adverse effects, in terms of program costs,
integrity, distribution, and delivery of aid under this
title, of implementing an early application system for
all dependent students that allows dependent students
to apply for financial aid using information from two
years prior to the year of enrollment. Additional
objectives associated with implementation of the
demonstration program are the following:
``(A) To measure the feasibility of
enabling dependent students to apply for
Federal, State, and institutional financial aid
in their junior year of secondary school, using
information from two years prior to the year of
enrollment, by completing any of the forms
under this subsection.
``(B) To identify whether receiving final
financial aid award estimates not later than
the fall of the senior year of secondary school
provides students with additional time to
compete for the limited resources available for
State and institutional financial aid and
positively impacts the college aspirations and
plans of these students.
``(C) To measure the impact of using income
information from the years prior to enrollment
on--
``(i) eligibility for financial aid
under this title and for other State
and institutional aid; and
``(ii) the cost of financial aid
programs under this title.
``(D) To effectively evaluate the benefits
and adverse effects of the demonstration
program on program costs, integrity,
distribution, and delivery of financial aid.
``(2) Program authorized.--Not later than two years
after the date of enactment of the Higher Education
Opportunity Act, the Secretary shall implement an early
application demonstration program enabling dependent
students who wish to participate in the program--
``(A) to complete an application under this
subsection during the academic year that is two
years prior to the year such students plan to
enroll in an institution of higher education;
and
``(B) based on the application described in
subparagraph (A), to obtain, not later than one
year prior to the year of the students' planned
enrollment, information on eligibility for
Federal Pell Grants, Federal student loans
under this title, and State and institutional
financial aid for the student's first year of
enrollment in the institution of higher
education.
``(3) Early application and estimated award.--For
all dependent students selected for participation in
the demonstration program who submit a completed FAFSA,
or, as appropriate, an EZ FAFSA, two years prior to the
year such students plan to enroll in an institution of
higher education, the Secretary shall, not later than
one year prior to the year of such planned enrollment--
``(A) provide each student who completes an
early application with an estimated
determination of such student's--
``(i) expected family contribution
for the first year of the student's
enrollment in an institution of higher
education; and
``(ii) Federal Pell Grant award for
the first such year, based on the
maximum Federal Pell Grant award at the
time of application; and
``(B) remind the students of the need to
update the students' information during the
calendar year of enrollment using the expedited
reapplication process provided for in
subsection (a)(4)(A).
``(4) Participants.--The Secretary shall include as
participants in the demonstration program--
``(A) States selected through the
application process described in paragraph (5);
``(B) institutions of higher education
within the selected States that are interested
in participating in the demonstration program,
and that can make estimates or commitments of
institutional student financial aid, as
appropriate, to students the year before the
students' planned enrollment date; and
``(C) secondary schools within the selected
States that are interested in participating in
the demonstration program, and that can commit
resources to--
``(i) advertising the availability
of the program;
``(ii) identifying students who
might be interested in participating in
the program;
``(iii) encouraging such students
to apply; and
``(iv) participating in the
evaluation of the program.
``(5) Applications.--Each State that is interested
in participating in the demonstration program shall
submit an application to the Secretary at such time, in
such form, and containing such information as the
Secretary shall require. The application shall
include--
``(A) information on the amount of the
State's need-based student financial assistance
available, and the eligibility criteria for
receiving such assistance;
``(B) a commitment to make, not later than
the year before the dependent students
participating in the demonstration program plan
to enroll in an institution of higher
education, an estimate of the award of State
financial aid to such dependent students;
``(C) a plan for recruiting institutions of
higher education and secondary schools with
different demographic characteristics to
participate in the program;
``(D) a plan for selecting institutions of
higher education and secondary schools to
participate in the program that--
``(i) demonstrate a commitment to
encouraging students to submit a FAFSA,
or, as appropriate, an EZ FAFSA, two
years before the students' planned date
of enrollment in an institution of
higher education;
``(ii) serve different populations
of students;
``(iii) in the case of institutions
of higher education--
``(I) to the extent
possible, are of varying types
and sectors; and
``(II) commit to making,
not later than the year prior
to the year that dependent
students participating in the
demonstration program plan to
enroll in the institution--
``(aa) estimated
institutional awards to
participating dependent
students; and
``(bb) estimated
grants or other
financial aid available
under this title
(including supplemental
grants under subpart 3
of part A), for all
participating dependent
students, along with
information on State
awards, as provided to
the institution by the
State;
``(E) a commitment to participate in the
evaluation conducted by the Secretary; and
``(F) such other information as the
Secretary may require.
``(6) Special provisions.--
``(A) Discretion of student financial aid
administrators.--A financial aid administrator
at an institution of higher education
participating in a demonstration program under
this subsection may use the discretion provided
under section 479A as necessary for students
participating in the demonstration program.
``(B) Waivers.--The Secretary is authorized
to waive, for an institution of higher
education participating in the demonstration
program, any requirements under this title, or
regulations prescribed under this title, that
will make the demonstration program unworkable,
except that the Secretary shall not waive any
provisions with respect to the maximum award
amounts for grants and loans under this title.
``(7) Outreach.--The Secretary shall make
appropriate efforts to notify States of the
demonstration program under this subsection. Upon
determination of participating States, the Secretary
shall continue to make efforts to notify institutions
of higher education and dependent students within
participating States of the opportunity to participate
in the demonstration program and of the participation
requirements.
``(8) Evaluation.--The Secretary shall conduct a
rigorous evaluation of the demonstration program to
measure the program's benefits and adverse effects, as
the benefits and effects relate to the purpose and
objectives of the program described in paragraph (1).
In conducting the evaluation, the Secretary shall--
``(A) identify whether receiving financial
aid estimates one year prior to the year in
which the student plans to enroll in an
institution of higher education, has a positive
impact on the higher education aspirations and
plans of such student;
``(B) measure the extent to which using a
student's income information from the year that
is two years prior to the student's planned
enrollment date had an impact on the ability of
States and institutions of higher education to
make financial aid awards and commitments;
``(C) determine what operational changes
are required to implement the program on a
larger scale;
``(D) identify any changes to Federal law
that are necessary to implement the program on
a permanent basis;
``(E) identify the benefits and adverse
effects of providing early estimates on program
costs, program operations, program integrity,
award amounts, distribution, and delivery of
aid; and
``(F) examine the extent to which estimated
awards differ from actual awards made to
students participating in the program.
``(9) Consultation.--The Secretary shall consult,
as appropriate, with the Advisory Committee on Student
Financial Assistance established under section 491 on
the design, implementation, and evaluation of the
demonstration program.
``(f) Reduction of Income and Asset Information to
Determine Eligibility for Student Financial Aid.--
``(1) Continuation of current fafsa simplification
efforts.--The Secretary shall continue to examine--
``(A) how the Internal Revenue Service can
provide to the Secretary income and other data
needed to compute an expected family
contribution for taxpayers and dependents of
taxpayers, and when in the application cycle
the data can be made available;
``(B) whether data provided by the Internal
Revenue Service can be used to--
``(i) prepopulate the electronic
version of the FAFSA with student and
parent taxpayer data; or
``(ii) generate an expected family
contribution without additional action
on the part of the student and
taxpayer; and
``(C) whether the data elements collected
on the FAFSA that are needed to determine
eligibility for student aid, or to administer
the Federal student financial aid programs
under this title, but are not needed to compute
an expected family contribution, such as
information regarding the student's citizenship
or permanent residency status, registration for
selective service, or driver's license number,
can be reduced without adverse effects.
``(2) Report on fafsa simplification efforts to
date.--Not later than 90 days after the date of
enactment of the Higher Education Opportunity Act, the
Secretary shall provide a written report to the
authorizing committees on the work the Department has
done with the Secretary of the Treasury regarding--
``(A) how the expected family contribution
of a student can be calculated using
substantially less income and asset information
than was used on March 31, 2008;
``(B) the extent to which the reduced
income and asset information will result in a
redistribution of Federal grants and subsidized
loans under this title, State aid, or
institutional aid, or in a change in the
composition of the group of recipients of such
aid, and the amount of such redistribution;
``(C) how the alternative approaches for
calculating the expected family contribution
will--
``(i) rely mainly, in the case of
students and parents who file income
tax returns, on information available
on the 1040, 1040EZ, and 1040A; and
``(ii) include formulas for
adjusting income or asset information
to produce similar results to the
existing approach with less data;
``(D) how the Internal Revenue Service can
provide to the Secretary of Education income
and other data needed to compute an expected
family contribution for taxpayers and
dependents of taxpayers, and when in the
application cycle the data can be made
available;
``(E) whether data provided by the Internal
Revenue Service can be used to--
``(i) prepopulate the electronic
version of the FAFSA with student and
parent taxpayer data; or
``(ii) generate an expected family
contribution without additional action
on the part of the student and
taxpayer;
``(F) the extent to which the use of income
data from two years prior to a student's
planned enrollment date will change the
expected family contribution computed in
accordance with part F, and potential
adjustments to the need analysis formula that
will minimize the change; and
``(G) the extent to which the data elements
collected on the FAFSA on March 31, 2008, that
are needed to determine eligibility for student
aid or to administer the Federal student
financial aid programs, but are not needed to
compute an expected family contribution, such
as information regarding the student's
citizenship or permanent residency status,
registration for selective service, or driver's
license number, can be reduced without adverse
effects.
``(3) Study.--
``(A) Formation of study group.--Not later
than 90 days after the date of enactment of the
Higher Education Opportunity Act, the
Comptroller General shall convene a study group
the membership of which shall include the
Secretary of Education, the Secretary of the
Treasury, the Director of the Office of
Management and Budget, the Director of the
Congressional Budget Office, representatives of
institutions of higher education with expertise
in Federal and State financial aid assistance,
State chief executive officers of higher
education with a demonstrated commitment to
simplifying the FAFSA, and such other
individuals as the Comptroller General and the
Secretary of Education may designate.
``(B) Study required.--The Comptroller
General, in consultation with the study group
convened under subparagraph (A) shall--
``(i) review and build on the work
of the Secretary of Education and the
Secretary of the Treasury, and
individuals with expertise in analysis
of financial need, to assess
alternative approaches for calculating
the expected family contribution under
the statutory need analysis formula in
effect on the day before the date of
enactment of the Higher Education
Opportunity Act and under a new
calculation that will use substantially
less income and asset information than
was used for the 2008-2009 FAFSA;
``(ii) conduct an additional
analysis if necessary; and
``(iii) make recommendations to the
authorizing committees.
``(C) Objectives of study.--The objectives
of the study required under subparagraph (B)
are--
``(i) to determine methods to
shorten the FAFSA and make the FAFSA
easier and less time-consuming to
complete, thereby increasing higher
education access for low-income
students;
``(ii) to identify changes to the
statutory need analysis formula that
will be necessary to reduce the amount
of financial information students and
families need to provide to receive a
determination of eligibility for
student financial aid without causing
significant redistribution of Federal
grants and subsidized loans under this
title; and
``(iii) to review State and
institutional needs and uses for data
collected on the FAFSA, and to
determine the best means of addressing
such needs in the case of modification
of the FAFSA as described in clause
(i), or modification of the need
analysis formula as described in clause
(ii).
``(D) Required subjects of study.--The
study required under subparagraph (B) shall
examine--
``(i) with respect to
simplification of the financial aid
application process using the statutory
requirements for need analysis--
``(I) additional steps that
can be taken to simplify the
financial aid application
process for students who (or,
in the case of dependent
students, whose parents) are
not required to file a Federal
income tax return for the prior
taxable year;
``(II) information on State
use of information provided on
the FAFSA, including--
``(aa) whether a
State uses, as of the
time of the study, or
can use, a student's
expected family
contribution based on
data from two years
prior to the student's
planned enrollment
date;
``(bb) the extent
to which States and
institutions will
accept the data
provided by the
Internal Revenue
Service to prepopulate
the electronic version
of the FAFSA to
determine the
distribution of State
and institutional
student financial aid
funds;
``(cc) what data
are used by States, as
of the time of the
study, to determine
eligibility for State
student financial aid,
and whether the data
are used for merit- or
need-based aid;
``(dd) whether
State data are required
by State law, State
regulations, or policy
directives; and
``(ee) the extent
to which any State-
specific information
requirements can be met
by completion of a
State application
linked to the
electronic version of
the FAFSA; and
``(III) information on
institutional needs, including
the extent to which
institutions of higher
education are already using
supplemental forms to collect
additional data from students
and their families to determine
eligibility for institutional
funds; and
``(ii) ways to reduce the amount of
financial information students and
families need to provide to receive a
determination of eligibility for
student financial aid, taking into
account--
``(I) the amount of
redistribution of Federal
grants and subsidized loans
under this title caused by such
a reduction, and the benefits
to be gained by having an
application process that will
be easier for students and
their families;
``(II) students and
families who do not file income
tax returns;
``(III) the extent to which
the full array of income and
asset information collected on
the FAFSA, as of the time of
the study, plays an important
role in the awarding of need-
based State financial aid, and
whether the State can use an
expected family contribution
generated by the FAFSA, instead
of income and asset information
or a calculation with reduced
data elements, to support
determinations of eligibility
for such State aid programs
and, if not, what additional
information will be needed or
what changes to the FAFSA will
be required; and
``(IV) information on
institutional needs, including
the extent to which
institutions of higher
education are already using
supplemental forms to collect
additional data from students
and their families to determine
eligibility for institutional
funds; and
``(V) changes to this Act
or other laws that will be
required to implement a
modified need analysis system.
``(4) Consultation.--The Secretary shall consult
with the Advisory Committee on Student Financial
Assistance established under section 491 as appropriate
in carrying out this subsection.
``(5) Reports.--
``(A) Reports on study.--The Secretary
shall prepare and submit to the authorizing
committees--
``(i) not later than one year after
the date of enactment of the Higher
Education Opportunity Act, an interim
report on the progress of the study
required under paragraph (3) that
includes any preliminary
recommendations by the study group
established under such paragraph; and
``(ii) not later than two years
after the date of enactment of the
Higher Education Opportunity Act, a
final report on the results of the
study required under paragraph (3) that
includes recommendations by the study
group established under such paragraph.
``(B) Reports on fafsa simplification
efforts.--The Secretary shall report to the
authorizing committees, from time to time, on
the progress of the simplification efforts
under this subsection.
``(g) Addressing the Digital Divide.--The Secretary shall
utilize savings accrued by moving more applicants to the
electronic version of the forms described in subsection (a)(3)
to improve access to the electronic version of the forms
described in such subsection for applicants meeting the
requirements of subsection (b) or (c) of section 479.
``(h) Adjustments.--The Secretary shall disclose, on the
form notifying a student of the student's expected family
contribution, that the student may, on a case-by-case basis,
qualify for an adjustment under section 479A to the cost of
attendance or the values of the data items required to
calculate the expected contribution for the student or parent.
Such disclosure shall specify--
``(1) the special circumstances under which a
student or family member may qualify for such
adjustment; and
``(2) additional information regarding the steps a
student or family member may take in order to seek an
adjustment under section 479A.''.
SEC. 484. MODEL INSTITUTION FINANCIAL AID OFFER FORM.
(a) Model Format.--The Secretary of Education shall--
(1) not later than six months after the date of
enactment of the Higher Education Opportunity Act,
convene a group of students, families of students,
secondary school guidance counselors, representatives
of institutions of higher education (including
financial aid administrators, registrars, and business
officers), and nonprofit consumer groups for the
purpose of offering recommendations for improvements
that--
(A) can be made to financial aid offer
forms; and
(B) include the information described in
subsection (b);
(2) develop a model format for financial aid offer
forms based on the recommendations of the group; and
(3) not later than one year after the date of
enactment of the Higher Education Opportunity Act--
(A) submit recommendations to the
authorizing committees (as defined in section
103 of the Higher Education Act of 1965 (20
U.S.C. 1003); and
(B) make the recommendations and model
format widely available.
(b) Contents.--The recommendations developed under
subsection (a) for model financial aid offer forms shall
include, in a consumer-friendly manner that is simple and
understandable, the following:
(1) Information on the student's cost of
attendance, including the following:
(A) Tuition and fees.
(B) Room and board costs.
(C) Books and supplies.
(D) Transportation.
(2) The amount of financial aid that the student
does not have to repay, such as scholarships, grants,
and work-study assistance, offered to the student for
such year, and the conditions of such financial aid.
(3) The types and amounts of loans under part B, D,
or E of title IV of the Higher Education Act of 1965
(20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.)
for which the student is eligible for such year, and
the applicable terms and conditions of such loans.
(4) The net amount that the student, or the
student's family on behalf of the student, will have to
pay for the student to attend the institution for such
year, equal to--
(A) the cost of attendance for the student
for such year; minus
(B) the amount of financial aid described
in paragraphs (2) and (3) that is offered in
the financial aid offer form.
(5) Where a student or the student's family can
seek additional information regarding the financial aid
offered.
(6) Any other information the Secretary of
Education determines necessary so that students and
parents can make informed student loan borrowing
decisions.
SEC. 485. STUDENT ELIGIBILITY.
(a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
(1) in subsection (a)--
(A) in paragraph (4)(B), by striking
``number,'' and all that follows through the
semicolon and inserting ``number;''; and
(B) in paragraph (5)--
(i) by inserting ``or'' after ``a
permanent resident of the United
States,''; and
(ii) by striking ``citizen or
permanent resident'' and all that
follows through the semicolon and
inserting ``citizen or permanent
resident;'';
(2) in subsection (b)(1), by inserting ``, or under
section 428H pursuant to an exercise of discretion
under section 479A'' after ``428C'';
(3) in subsection (d), by adding at the end the
following:
``(4) The student shall be determined by the
institution of higher education as having the ability
to benefit from the education or training offered by
the institution of higher education upon satisfactory
completion of six credit hours or the equivalent
coursework that are applicable toward a degree or
certificate offered by the institution of higher
education.'';
(4) by striking subsection (j);
(5) by striking subsection (l) and inserting the
following:
``(l) Courses Offered Through Distance Education.--
``(1) Relation to correspondence courses.--
``(A) In general.--A student enrolled in a
course of instruction at an institution of
higher education that is offered principally
through distance education and leads to a
recognized certificate, or recognized
associate, recognized baccalaureate, or
recognized graduate degree, conferred by such
institution, shall not be considered to be
enrolled in correspondence courses.
``(B) Exception.--An institution of higher
education referred to in subparagraph (A) shall
not include an institution or school described
in section 3(3)(C) of the Carl D. Perkins
Career and Technical Education Act of 2006.
``(2) Reductions of financial aid.--A student's
eligibility to receive grants, loans, or work
assistance under this title shall be reduced if a
financial aid officer determines under the
discretionary authority provided in section 479A that
distance education results in a substantially reduced
cost of attendance to such student.
``(3) Special rule.--For award years beginning
prior to July 1, 2008, the Secretary shall not take any
compliance, disallowance, penalty, or other action
based on a violation of this subsection against a
student or an eligible institution when such action
arises out of such institution's prior award of student
assistance under this title if the institution
demonstrates to the satisfaction of the Secretary that
its course of instruction would have been in
conformance with the requirements of this
subsection.'';
(6) by striking subsection (q) and inserting the
following:
``(q) Use of Income Data.--
``(1) Matching with irs.--The Secretary, in
cooperation with the Secretary of the Treasury, is
authorized to obtain from the Internal Revenue Service
such information reported on Federal income tax returns
by applicants, or by any other person whose financial
information is required to be provided on the Federal
student financial aid application, as the Secretary
determines is necessary for the purpose of--
``(A) prepopulating the Federal student
financial aid application described in section
483; or
``(B) verifying the information reported on
such student financial aid applications.
``(2) Consent.--The Secretary may require that
applicants for financial assistance under this title
provide a consent to the disclosure of the data
described in paragraph (1) as a condition of the
student receiving assistance under this title. The
parents of an applicant, in the case of a dependent
student, or the spouse of an applicant, in the case of
an applicant who is married but files separately, may
also be required to provide consent as a condition of
the student receiving assistance under this title.'';
(7) in subsection (r)(2)--
(A) in subparagraph (A), by striking ``or''
at the end of clause (ii);
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) the student successfully passes two
unannounced drug tests conducted by a drug
rehabilitation program that complies with such
criteria as the Secretary shall prescribe in
regulations for purposes of subparagraph
(A)(i); or'';
(8) by adding at the end the following:
``(s) Students With Intellectual Disabilities.--
``(1) Definitions.--In this subsection the terms
`comprehensive transition and postsecondary program for
students with intellectual disabilities' and `student
with an intellectual disability' have the meanings
given the terms in section 760.
``(2) Requirements.--Notwithstanding subsections
(a), (c), and (d), in order to receive any grant or
work assistance under section 401, subpart 3 of part A,
or part C, a student with an intellectual disability
shall--
``(A) be enrolled or accepted for
enrollment in a comprehensive transition and
postsecondary program for students with
intellectual disabilities at an institution of
higher education;
``(B) be maintaining satisfactory progress
in the program as determined by the
institution, in accordance with standards
established by the institution; and
``(C) meet the requirements of paragraphs
(3), (4), (5), and (6) of subsection (a).
``(3) Authority.--Notwithstanding any other
provision of law unless such provision is enacted with
specific reference to this section, the Secretary is
authorized to waive any statutory provision applicable
to the student financial assistance programs under
section 401, subpart 3 of part A, or part C (other than
a provision of part F related to such a program), or
any institutional eligibility provisions of this title,
as the Secretary determines necessary to ensure that
programs enrolling students with intellectual
disabilities otherwise determined to be eligible under
this subsection may receive such financial assistance.
``(4) Regulations.--Notwithstanding regulations
applicable to grant or work assistance awards made
under section 401, subpart 3 of part A, and part C
(other than a regulation under part F related to such
an award), including with respect to eligible programs,
instructional time, credit status, and enrollment
status as described in section 481, the Secretary shall
promulgate regulations allowing programs enrolling
students with intellectual disabilities otherwise
determined to be eligible under this subsection to
receive such awards.''; and
(9) by adding after subsection (s) (as added by
paragraph (7)) the following:
``(t) Data Analysis on Access to Federal Student Aid For
Certain Populations.--
``(1) Development of the system.--Within one year
of enactment of the Higher Education Opportunity Act,
the Secretary shall analyze data from the FAFSA
containing information regarding the number,
characteristics, and circumstances of students denied
Federal student aid based on a drug conviction while
receiving Federal aid.
``(2) Results from analysis.--The results from the
analysis of such information shall be made available on
a continuous basis via the Department website and the
Digest of Education Statistics.
``(3) Data updating.--The data analyzed under this
subsection shall be updated at the beginning of each
award year and at least one additional time during such
award year.
``(4) Report to congress.--The Secretary shall
prepare and submit to the authorizing committees, in
each fiscal year, a report describing the results
obtained by the establishment and operation of the data
system authorized by this subsection.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on July 1, 2010, except that the amendments
made by paragraphs (3), (4), and (8) of such subsection shall
take effect on the date of enactment of this Act.
SEC. 486. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.
Section 484A (20 U.S.C. 1091a) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``and''
after the semicolon;
(B) in paragraph (2), by striking the
period and inserting ``; and''; and
(C) by adding at the end the following:
``(3) in collecting any obligation arising from a
loan made under part E, an institution of higher
education that has an agreement with the Secretary
pursuant to section 463(a) shall not be subject to a
defense raised by any borrower based on a claim of
infancy.''; and
(2) by adding at the end the following:
``(d) Special Rule.--This section shall not apply in the
case of a student who is deceased, or to a deceased student's
estate or the estate of such student's family. If a student is
deceased, then the student's estate or the estate of the
student's family shall not be required to repay any financial
assistance under this title, including interest paid on the
student's behalf, collection costs, or other charges specified
in this title.''.
SEC. 487. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.
Part G of title IV (20 U.S.C. 1088 et seq.) is amended by
inserting after section 484B the following:
``SEC. 484C. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.
``(a) Definition of Service in the Uniformed Services.--In
this section, the term `service in the uniformed services'
means service (whether voluntary or involuntary) on active duty
in the Armed Forces, including such service by a member of the
National Guard or Reserve, for a period of more than 30 days
under a call or order to active duty of more than 30 days.
``(b) Discrimination Against Students Who Serve in the
Uniformed Services Prohibited.--A person who is a member of,
applies to be a member of, performs, has performed, applies to
perform, or has an obligation to perform, service in the
uniformed services shall not be denied readmission to an
institution of higher education on the basis of that
membership, application for membership, performance of service,
application for service, or obligation.
``(c) Readmission Procedures.--
``(1) In general.--Any student whose absence from
an institution of higher education is necessitated by
reason of service in the uniformed services shall be
entitled to readmission to the institution of higher
education if--
``(A) the student (or an appropriate
officer of the Armed Forces or official of the
Department of Defense) gives advance written or
verbal notice of such service to the
appropriate official at the institution of
higher education;
``(B) the cumulative length of the absence
and of all previous absences from that
institution of higher education by reason of
service in the uniformed services does not
exceed five years; and
``(C) except as otherwise provided in this
section, the student submits a notification of
intent to reenroll in the institution of higher
education in accordance with the provisions of
paragraph (4).
``(2) Exceptions.--
``(A) Military necessity.--No notice is
required under paragraph (1)(A) if the giving
of such notice is precluded by military
necessity, such as--
``(i) a mission, operation,
exercise, or requirement that is
classified; or
``(ii) a pending or ongoing
mission, operation, exercise, or
requirement that may be compromised or
otherwise adversely affected by public
knowledge.
``(B) Failure to give advance notice.--Any
student (or an appropriate officer of the Armed
Forces or official of the Department of
Defense) who did not give advance written or
verbal notice of service to the appropriate
official at the institution of higher education
in accordance with paragraph (1)(A) may meet
the notice requirement by submitting, at the
time the student seeks readmission, an
attestation to the student's institution of
higher education that the student performed
service in the uniformed services that
necessitated the student's absence from the
institution of higher education.
``(3) Applicability.--This section shall apply to a
student who is absent from an institution of higher
education by reason of service in the uniformed
services if such student's cumulative period of service
in the Armed Forces (including the National Guard or
Reserve), with respect to the institution of higher
education for which a student seeks readmission, does
not exceed five years, except that any such period of
service shall not include any service--
``(A) that is required, beyond five years,
to complete an initial period of obligated
service;
``(B) during which such student was unable
to obtain orders releasing such student from a
period of service in the uniformed services
before the expiration of such five-year period
and such inability was through no fault of such
student; or
``(C) performed by a member of the Armed
Forces (including the National Guard and
Reserves) who is--
``(i) ordered to or retained on
active duty under section 688,
12301(a), 12301(g), 12302, 12304, or
12305 of title 10, United States Code,
or under section 331, 332, 359, 360,
367, or 712 of title 14, United States
Code;
``(ii) ordered to or retained on
active duty (other than for training)
under any provision of law because of a
war or national emergency declared by
the President or the Congress, as
determined by the Secretary concerned;
``(iii) ordered to active duty
(other than for training) in support,
as determined by the Secretary
concerned, of an operational mission
for which personnel have been ordered
to active duty under section 12304 of
title 10, United States Code;
``(iv) ordered to active duty in
support, as determined by the Secretary
concerned, of a critical mission or
requirement of the Armed Forces
(including the National Guard or
Reserve); or
``(v) called into Federal service
as a member of the National Guard under
chapter 15 of title 10, United States
Code, or section 12406 of title 10,
United States Code.
``(4) Notification of intent to return.--
``(A) In general.--Except as provided in
subparagraph (B), a student referred to in
subsection (a) shall, upon the completion of a
period of service in the uniformed services,
notify the institution of higher education of
the student's intent to return to the
institution not later than three years after
the completion of the period of service.
``(B) Hospitalization or convalescence.--A
student who is hospitalized for or convalescing
from an illness or injury incurred in or
aggravated during the performance of service in
the uniformed services shall notify the
institution of higher education of the
student's intent to return to the institution
not later than two years after the end of the
period that is necessary for recovery from such
illness or injury.
``(C) Special rule.--A student who fails to
apply for readmission within the period
described in this section shall not
automatically forfeit such eligibility for
readmission to the institution of higher
education, but shall be subject to the
institution of higher education's established
leave of absence policy and general practices.
``(5) Documentation.--
``(A) In general.--A student who submits an
application for readmission to an institution
of higher education under this section shall
provide to the institution of higher education
documentation to establish that--
``(i) the student has not exceeded
the service limitations established
under this section; and
``(ii) the student's eligibility
for readmission has not been terminated
due to an exception in subsection (d).
``(B) Prohibited documentation demands.--An
institution of higher education may not delay
or attempt to avoid a readmission of a student
under this section by demanding documentation
that does not exist, or is not readily
available, at the time of readmission.
``(6) No change in academic status.--A student who
is readmitted to an institution of higher education
under this section shall be readmitted with the same
academic status as such student had when such student
last attended the institution of higher education.
``(d) Exception From Readmission Eligibility.--A student's
eligibility for readmission to an institution of higher
education under this section by reason of such student's
service in the uniformed services terminates upon the
occurrence of any of the following events:
``(1) A separation of such person from the Armed
Forces (including the National Guard and Reserves) with
a dishonorable or bad conduct discharge.
``(2) A dismissal of such person permitted under
section 1161(a) of title 10, United States Code.
``(3) A dropping of such person from the rolls
pursuant to section 1161(b) of title 10, United States
Code.''.
SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--Section 485(a)
(20 U.S.C. 1092(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (G)--
(i) by striking ``program, and''
and inserting ``program,''; and
(ii) by inserting ``, and (iv) any
plans by the institution for improving
the academic program of the
institution'' after ``instructional
personnel''; and
(B) by striking subparagraph (M) and
inserting the following:
``(M) the terms and conditions of the loans
that students receive under parts B, D, and
E;'';
(C) in subparagraph (N), by striking
``and'' after the semicolon;
(D) in subparagraph (O), by striking the
period and inserting a semicolon; and
(E) by adding at the end the following:
``(P) institutional policies and sanctions
related to copyright infringement, including--
``(i) an annual disclosure that
explicitly informs students that
unauthorized distribution of
copyrighted material, including
unauthorized peer-to-peer file sharing,
may subject the students to civil and
criminal liabilities;
``(ii) a summary of the penalties
for violation of Federal copyright
laws; and
``(iii) a description of the
institution's policies with respect to
unauthorized peer-to-peer file sharing,
including disciplinary actions that are
taken against students who engage in
unauthorized distribution of
copyrighted materials using the
institution's information technology
system;
``(Q) student body diversity at the
institution, including information on the
percentage of enrolled, full-time students
who--
``(i) are male;
``(ii) are female;
``(iii) receive a Federal Pell
Grant; and
``(iv) are a self-identified member
of a major racial or ethnic group;
``(R) the placement in employment of, and
types of employment obtained by, graduates of
the institution's degree or certificate
programs, gathered from such sources as alumni
surveys, student satisfaction surveys, the
National Survey of Student Engagement, the
Community College Survey of Student Engagement,
State data systems, or other relevant sources;
``(S) the types of graduate and
professional education in which graduates of
the institution's four-year degree programs
enrolled, gathered from such sources as alumni
surveys, student satisfaction surveys, the
National Survey of Student Engagement, State
data systems, or other relevant sources;
``(T) the fire safety report prepared by
the institution pursuant to subsection (i);
``(U) the retention rate of certificate- or
degree-seeking, first-time, full-time,
undergraduate students entering such
institution; and
``(V) institutional policies regarding
vaccinations.''; and
(2) by striking paragraph (4) and inserting the
following:
``(4) For purposes of this section, institutions
may--
``(A) exclude from the information
disclosed in accordance with subparagraph (L)
of paragraph (1) the completion or graduation
rates of students who leave school to serve in
the Armed Forces, on official church missions,
or with a recognized foreign aid service of the
Federal Government; or
``(B) in cases where the students described
in subparagraph (A) represent 20 percent or
more of the certificate- or degree-seeking,
full-time, undergraduate students at the
institution, recalculate the completion or
graduation rates of such students by excluding
from the calculation described in paragraph (3)
the time period such students were not enrolled
due to their service in the Armed Forces, on
official church missions, or with a recognized
foreign aid service of the Federal
Government.''; and
(3) by adding at the end the following:
``(7)(A)(i) Subject to clause (ii), the information
disseminated under paragraph (1)(L), or reported under
subsection (e), shall be disaggregated by gender, by
each major racial and ethnic subgroup, by recipients of
a Federal Pell Grant, by recipients of a loan made
under part B or D (other than a loan made under section
428H or a Federal Direct Unsubsidized Stafford Loan)
who did not receive a Federal Pell Grant, and by
recipients of neither a Federal Pell Grant nor a loan
made under part B or D (other than a loan made under
section 428H or a Federal Direct Unsubsidized Stafford
Loan), if the number of students in such subgroup or
with such status is sufficient to yield statistically
reliable information and reporting will not reveal
personally identifiable information about an individual
student. If such number is not sufficient for such
purposes, then the institution shall note that the
institution enrolled too few of such students to so
disclose or report with confidence and confidentiality.
``(ii) The requirements of clause (i) shall not
apply to two-year, degree-granting institutions of
higher education until academic year 2011-2012.
``(B)(i) In order to assist two-year degree-
granting institutions of higher education in meeting
the requirements of paragraph (1)(L) and subsection
(e), the Secretary, in consultation with the
Commissioner for Education Statistics, shall, not later
than 90 days after the date of enactment of the Higher
Education Opportunity Act, convene a group of
representatives from diverse institutions of higher
education, experts in the field of higher education
policy, state higher education officials, students, and
other stakeholders in the higher education community,
to develop recommendations regarding the accurate
calculation and reporting of the information required
to be disseminated or reported under paragraph (1)(L)
and subsection (e) by two-year, degree-granting
institutions of higher education. In developing such
recommendations, the group of representatives shall
consider the mission and role of two-year degree-
granting institutions of higher education, and may
recommend additional or alternative measures of student
success for such institutions in light of the mission
and role of such institutions.
``(ii) The Secretary shall widely disseminate the
recommendations required under this subparagraph to
two-year, degree-granting institutions of higher
education, the public, and the authorizing committees
not later than 18 months after the first meeting of the
group of representatives convened under clause (i).
``(iii) The Secretary shall use the recommendations
from the group of representatives convened under clause
(i) to provide technical assistance to two-year,
degree-granting institutions of higher education in
meeting the requirements of paragraph (1)(L) and
subsection (e).
``(iv) The Secretary may modify the information
required to be disseminated or reported under paragraph
(1)(L) or subsection (e) by a two-year, degree-granting
institution of higher--
``(I) based on the recommendations received
under this subparagraph from the group of
representatives convened under clause (i);
``(II) to include additional or alternative
measures of student success if the goals of the
provisions of paragraph (1)(L) and subsection
(e) can be met through additional means or
comparable alternatives; and
``(III) during the period beginning on the
date of enactment of the Higher Education
Opportunity Act, and ending on June 30,
2011.''.
(b) Exit Counseling.--Subsection (b)(1)(A) of section 485
(20 U.S.C. 1092(b)(1)(A)) is amended to read as follows:
``(b) Exit Counseling for Borrowers.--(1)(A) Each eligible
institution shall, through financial aid offices or otherwise,
provide counseling to borrowers of loans that are made,
insured, or guaranteed under part B (other than loans made
pursuant to section 428C or loans under section 428B made on
behalf of a student) or made under part D (other than Federal
Direct Consolidation Loans or Federal Direct PLUS Loans made on
behalf of a student) or made under part E of this title prior
to the completion of the course of study for which the borrower
enrolled at the institution or at the time of departure from
such institution. The counseling required by this subsection
shall include--
``(i) information on the repayment plans available,
including a description of the different features of
each plan and sample information showing the average
anticipated monthly payments, and the difference in
interest paid and total payments, under each plan;
``(ii) debt management strategies that are designed
to facilitate the repayment of such indebtedness;
``(iii) an explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans;
``(iv) for any loan forgiveness or cancellation
provision of this title, a general description of the
terms and conditions under which the borrower may
obtain full or partial forgiveness or cancellation of
the principal and interest, and a copy of the
information provided by the Secretary under section
485(d);
``(v) for any forbearance provision of this title,
a general description of the terms and conditions under
which the borrower may defer repayment of principal or
interest or be granted forbearance, and a copy of the
information provided by the Secretary under section
485(d);
``(vi) the consequences of defaulting on a loan,
including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation;
``(vii) information on the effects of using a
consolidation loan under section 428C or a Federal
Direct Consolidation Loan to discharge the borrower's
loans under parts B, D, and E, including at a minimum--
``(I) the effects of consolidation on total
interest to be paid, fees to be paid, and
length of repayment;
``(II) the effects of consolidation on a
borrower's underlying loan benefits, including
grace periods, loan forgiveness, cancellation,
and deferment opportunities;
``(III) the option of the borrower to
prepay the loan or to change repayment plans;
and
``(IV) that borrower benefit programs may
vary among different lenders;
``(viii) a general description of the types of tax
benefits that may be available to borrowers; and
``(ix) a notice to borrowers about the availability
of the National Student Loan Data System and how the
system can be used by a borrower to obtain information
on the status of the borrower's loans; and''.
(c) Departmental Publication of Descriptions of Assistance
Programs.--Section 485(d) (20 U.S.C. 1092(d)) is amended--
(1) in paragraph (1)--
(A) by inserting after ``under this
title.'' the following: ``Such information
shall also include information on the various
payment options available for student loans,
including income-sensitive and income-based
repayment plans for loans made, insured, or
guaranteed under part B and income-contingent
and income-based repayment plans for loans made
under part D.''; and
(B) by inserting after ``tax-exempt
organization.'' the following: ``The Secretary
shall also provide information on loan
forbearance, including the increase in debt
that results from capitalization of
interest.''; and
(2) by adding at the end the following:
``(4) The Secretary shall widely publicize the location of
the information described in paragraph (1) among the public,
eligible institutions, and eligible lenders, and promote the
use of such information by prospective students, enrolled
students, families of prospective and enrolled students, and
borrowers.''.
(d) Disclosure of Athletically Related Graduation Rates.--
Section 485(e)(3) (20 U.S.C. 1092(e)(3)) is amended to read as
follows:
``(3) For purposes of this subsection, institutions
may--
``(A) exclude from the reporting
requirements under paragraphs (1) and (2) the
completion or graduation rates of students and
student athletes who leave school to serve in
the Armed Forces, on official church missions,
or with a recognized foreign aid service of the
Federal Government; or
``(B) in cases where the students described
in subparagraph (A) represent 20 percent or
more of the certificate- or degree-seeking,
full-time, undergraduate students at the
institution, calculate the completion or
graduation rates of such students by excluding
from the calculations described in paragraph
(1) the time period such students were not
enrolled due to their service in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government.''.
(e) Criminal Offenses Reported.--Section 485(f) (20 U.S.C.
1092(f)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph
(A), by inserting ``, other than a foreign
institution higher education,'' after ``under
this title'';
(B) in subparagraph (C), by striking
clauses (i) and (ii) and inserting the
following:
``(i) the law enforcement authority
of campus security personnel;
``(ii) the working relationship of
campus security personnel with State
and local law enforcement agencies,
including whether the institution has
agreements with such agencies, such as
written memoranda of understanding, for
the investigation of alleged criminal
offenses; and
``(iii) policies which encourage
accurate and prompt reporting of all
crimes to the campus police and the
appropriate law enforcement
agencies.'';
(C) in subparagraph (F)(ii)--
(i) by striking ``clause (i), and''
and inserting ``clause (i), of larceny-
theft, simple assault, intimidation,
and destruction, damage, or vandalism
of property, and of''; and
(ii) by inserting a comma after
``any person''; and
(D) by adding at the end the following new
subparagraph:
``(J) A statement of current campus
policies regarding immediate emergency response
and evacuation procedures, including the use of
electronic and cellular communication (if
appropriate), which policies shall include
procedures to--
``(i) immediately notify the campus
community upon the confirmation of a
significant emergency or dangerous
situation involving an immediate threat
to the health or safety of students or
staff occurring on the campus, as
defined in paragraph (6), unless
issuing a notification will compromise
efforts to contain the emergency;
``(ii) publicize emergency response
and evacuation procedures on an annual
basis in a manner designed to reach
students and staff; and
``(iii) test emergency response and
evacuation procedures on an annual
basis.'';
(2) by redesignating paragraph (15) as paragraph
(18); and
(3) by inserting after paragraph (14) the
following:
``(15) The Secretary shall annually report to the
authorizing committees regarding compliance with this
subsection by institutions of higher education,
including an up-to-date report on the Secretary's
monitoring of such compliance.
``(16) The Secretary may seek the advice and
counsel of the Attorney General concerning the
development, and dissemination to institutions of
higher education, of best practices information about
campus safety and emergencies.
``(17) Nothing in this subsection shall be
construed to permit an institution, or an officer,
employee, or agent of an institution, participating in
any program under this title to retaliate, intimidate,
threaten, coerce, or otherwise discriminate against any
individual with respect to the implementation of any
provision of this subsection.''.
(f) Report.--Section 485(g)(4) (20 U.S.C. 1092(g)(4)) is
amended--
(1) by striking subparagraph (B);
(2) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively;
(3) in subparagraph (B) (as redesignated by
paragraph (2)), by striking ``and the report to
Congress described in subparagraph (B)''; and
(4) in subparagraph (C) (as redesignated by
paragraph (2)), by striking ``the information reported
under subparagraph (B) and''.
(g) Additional Requirements.--Section 485 (20 U.S.C. 1092)
is further amended by adding at the end the following new
subsections:
``(h) Transfer of Credit Policies.--
``(1) Disclosure.--Each institution of higher
education participating in any program under this title
shall publicly disclose, in a readable and
comprehensible manner, the transfer of credit policies
established by the institution which shall include a
statement of the institution's current transfer of
credit policies that includes, at a minimum--
``(A) any established criteria the
institution uses regarding the transfer of
credit earned at another institution of higher
education; and
``(B) a list of institutions of higher
education with which the institution has
established an articulation agreement.
``(2) Rule of construction.--Nothing in this
subsection shall be construed to--
``(A) authorize the Secretary or the
National Advisory Committee on Institutional
Quality and Integrity to require particular
policies, procedures, or practices by
institutions of higher education with respect
to transfer of credit;
``(B) authorize an officer or employee of
the Department to exercise any direction,
supervision, or control over the curriculum,
program of instruction, administration, or
personnel of any institution of higher
education, or over any accrediting agency or
association;
``(C) limit the application of the General
Education Provisions Act; or
``(D) create any legally enforceable right
on the part of a student to require an
institution of higher education to accept a
transfer of credit from another institution.
``(i) Disclosure of Fire Safety Standards and Measures.--
``(1) Annual fire safety reports on student housing
required.--Each eligible institution participating in
any program under this title that maintains on-campus
student housing facilities shall, on an annual basis,
publish a fire safety report, which shall contain
information with respect to the campus fire safety
practices and standards of that institution,
including--
``(A) statistics concerning the following
in each on-campus student housing facility
during the most recent calendar years for which
data are available:
``(i) the number of fires and the
cause of each fire;
``(ii) the number of injuries
related to a fire that result in
treatment at a medical facility;
``(iii) the number of deaths
related to a fire; and
``(iv) the value of property damage
caused by a fire;
``(B) a description of each on-campus
student housing facility fire safety system,
including the fire sprinkler system;
``(C) the number of regular mandatory
supervised fire drills;
``(D) policies or rules on portable
electrical appliances, smoking, and open flames
(such as candles), procedures for evacuation,
and policies regarding fire safety education
and training programs provided to students,
faculty, and staff; and
``(E) plans for future improvements in fire
safety, if determined necessary by such
institution.
``(2) Report to the secretary.--Each eligible
institution participating in any program under this
title shall, on an annual basis, submit to the
Secretary a copy of the statistics required to be made
available under paragraph (1)(A).
``(3) Current information to campus community.--
Each eligible institution participating in any program
under this title shall--
``(A) make, keep, and maintain a log,
recording all fires in on-campus student
housing facilities, including the nature, date,
time, and general location of each fire; and
``(B) make annual reports to the campus
community on such fires.
``(4) Responsibilities of the secretary.--The
Secretary shall--
``(A) make the statistics submitted under
paragraph (1)(A) to the Secretary available to
the public; and
``(B) in coordination with nationally
recognized fire organizations and
representatives of institutions of higher
education, representatives of associations of
institutions of higher education, and other
organizations that represent and house a
significant number of students--
``(i) identify exemplary fire
safety policies, procedures, programs,
and practices, including the
installation, to the technical
standards of the National Fire
Protection Association, of fire
detection, prevention, and protection
technologies in student housing,
dormitories, and other buildings;
``(ii) disseminate the exemplary
policies, procedures, programs and
practices described in clause (i) to
the Administrator of the United States
Fire Administration;
``(iii) make available to the
public information concerning those
policies, procedures, programs, and
practices that have proven effective in
the reduction of fires; and
``(iv) develop a protocol for
institutions to review the status of
their fire safety systems.
``(5) Rules of construction.--Nothing in this
subsection shall be construed to--
``(A) authorize the Secretary to require
particular policies, procedures, programs, or
practices by institutions of higher education
with respect to fire safety, other than with
respect to the collection, reporting, and
dissemination of information required by this
subsection;
``(B) affect section 444 of the General
Education Provisions Act (the Family
Educational Rights and Privacy Act of 1974) or
the regulations issued under section 264 of the
Health Insurance Portability and Accountability
Act of 1996 (42 U.S.C. 1320d-2 note);
``(C) create a cause of action against any
institution of higher education or any employee
of such an institution for any civil liability;
or
``(D) establish any standard of care.
``(6) Compliance report.--The Secretary shall
annually report to the authorizing committees regarding
compliance with this subsection by institutions of
higher education, including an up-to-date report on the
Secretary's monitoring of such compliance.
``(7) Evidence.--Notwithstanding any other
provision of law, evidence regarding compliance or
noncompliance with this subsection shall not be
admissible as evidence in any proceeding of any court,
agency, board, or other entity, except with respect to
an action to enforce this subsection.
``(j) Missing Person Procedures.--
``(1) Option and procedures.--Each institution of
higher education that provides on-campus housing and
participates in any program under this title shall--
``(A) establish a missing student
notification policy for students who reside in
on-campus housing that--
``(i) informs each such student
that such student has the option to
identify an individual to be contacted
by the institution not later than 24
hours after the time that the student
is determined missing in accordance
with official notification procedures
established by the institution under
subparagraph (B);
``(ii) provides each such student a
means to register confidential contact
information in the event that the
student is determined to be missing for
a period of more than 24 hours;
``(iii) advises each such student
who is under 18 years of age, and not
an emancipated individual, that the
institution is required to notify a
custodial parent or guardian not later
than 24 hours after the time that the
student is determined to be missing in
accordance with such procedures;
``(iv) informs each such residing
student that the institution will
notify the appropriate law enforcement
agency not later than 24 hours after
the time that the student is determined
missing in accordance with such
procedures; and
``(v) requires, if the campus
security or law enforcement personnel
has been notified and makes a
determination that a student who is the
subject of a missing person report has
been missing for more than 24 hours and
has not returned to the campus, the
institution to initiate the emergency
contact procedures in accordance with
the student's designation; and
``(B) establish official notification
procedures for a missing student who resides in
on-campus housing that--
``(i) includes procedures for
official notification of appropriate
individuals at the institution that
such student has been missing for more
than 24 hours;
``(ii) requires any official
missing person report relating to such
student be referred immediately to the
institution's police or campus security
department; and
``(iii) if, on investigation of the
official report, such department
determines that the missing student has
been missing for more than 24 hours,
requires--
``(I) such department to
contact the individual
identified by such student
under subparagraph (A)(i);
``(II) if such student is
under 18 years of age, and not
an emancipated individual, the
institution to immediately
contact the custodial parent or
legal guardian of such student;
and
``(III) if subclauses (I)
or (II) do not apply to a
student determined to be a
missing person, inform the
appropriate law enforcement
agency.
``(2) Rule of construction.--Nothing in this
subsection shall be construed--
``(A) to provide a private right of action
to any person to enforce any provision of this
subsection; or
``(B) to create a cause of action against
any institution of higher education or any
employee of the institution for any civil
liability.
``(k) Notice to Students Concerning Penalties for Drug
Violations.--
``(1) Notice upon enrollment.--Each institution of
higher education shall provide to each student, upon
enrollment, a separate, clear, and conspicuous written
notice that advises the student of the penalties under
section 484(r).
``(2) Notice after loss of eligibility.--An
institution of higher education shall provide in a
timely manner to each student who has lost eligibility
for any grant, loan, or work-study assistance under
this title as a result of the penalties listed under
484(r)(1) a separate, clear, and conspicuous written
notice that notifies the student of the loss of
eligibility and advises the student of the ways in
which the student can regain eligibility under section
484(r)(2).
``(l) Entrance Counseling for Borrowers.--
``(1) Disclosure required prior to disbursement.--
``(A) In general.--Each eligible
institution shall, at or prior to the time of a
disbursement to a first-time borrower of a loan
made, insured, or guaranteed under part B
(other than a loan made pursuant to section
428C or a loan made on behalf of a student
pursuant to section 428B) or made under part D
(other than a Federal Direct Consolidation Loan
or a Federal Direct PLUS loan made on behalf of
a student), ensure that the borrower receives
comprehensive information on the terms and
conditions of the loan and of the
responsibilities the borrower has with respect
to such loan in accordance with subparagraph
(B). Such information--
``(i) shall be provided in a simple
and understandable manner; and
``(ii) may be provided--
``(I) during an entrance
counseling session conduction
in person;
``(II) on a separate
written form provided to the
borrower that the borrower
signs and returns to the
institution; or
``(III) online, with the
borrower acknowledging receipt
of the information.
``(B) Use of interactive programs.--The
Secretary shall encourage institutions to carry
out the requirements of subparagraph (A)
through the use of interactive programs that
test the borrower's understanding of the terms
and conditions of the borrower's loans under
part B or D, using simple and understandable
language and clear formatting.
``(2) Information to be provided.--The information
to be provided to the borrower under paragraph (1)(A)
shall include the following:
``(A) To the extent practicable, the effect
of accepting the loan to be disbursed on the
eligibility of the borrower for other forms of
student financial assistance.
``(B) An explanation of the use of the
master promissory note.
``(C) Information on how interest accrues
and is capitalized during periods when the
interest is not paid by either the borrower or
the Secretary.
``(D) In the case of a loan made under
section 428B or 428H, a Federal Direct PLUS
Loan, or a Federal Direct Unsubsidized Stafford
Loan, the option of the borrower to pay the
interest while the borrower is in school.
``(E) The definition of half-time
enrollment at the institution, during regular
terms and summer school, if applicable, and the
consequences of not maintaining half-time
enrollment.
``(F) An explanation of the importance of
contacting the appropriate offices at the
institution of higher education if the borrower
withdraws prior to completing the borrower's
program of study so that the institution can
provide exit counseling, including information
regarding the borrower's repayment options and
loan consolidation.
``(G) Sample monthly repayment amounts
based on--
``(i) a range of levels of
indebtedness of--
``(I) borrowers of loans
under section 428 or 428H; and
``(II) as appropriate,
graduate borrowers of loans
under section 428, 428B, or
428H; or
``(ii) the average cumulative
indebtedness of other borrowers in the
same program as the borrower at the
same institution.
``(H) The obligation of the borrower to
repay the full amount of the loan, regardless
of whether the borrower completes or does not
complete the program in which the borrower is
enrolled within the regular time for program
completion.
``(I) The likely consequences of default on
the loan, including adverse credit reports,
delinquent debt collection procedures under
Federal law, and litigation.
``(J) Information on the National Student
Loan Data System and how the borrower can
access the borrower's records.
``(K) The name of and contact information
for the individual the borrower may contact if
the borrower has any questions about the
borrower's rights and responsibilities or the
terms and conditions of the loan.''.
SEC. 489. NATIONAL STUDENT LOAN DATA SYSTEM.
Section 485B (20 U.S.C. 1092b) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (6) through
(10) as paragraphs (7) through (11),
respectively;
(B) in paragraph (5) (as added by Public
Law 101-610), by striking ``effectiveness.''
and inserting ``effectiveness;''; and
(C) by redesignating paragraph (5) (as
added by Public Law 101-234) as paragraph (6);
(2) by redesignating subsections (d) through (g) as
subsections (e) through (h), respectively; and
(3) by inserting after subsection (c) the
following:
``(d) Principles for Administering the Data System.--In
managing the National Student Loan Data System, the Secretary
shall take actions necessary to maintain confidence in the data
system, including, at a minimum--
``(1) ensuring that the primary purpose of access
to the data system by guaranty agencies, eligible
lenders, and eligible institutions of higher education
is for legitimate program operations, such as the need
to verify the eligibility of a student, potential
student, or parent for loans under part B, D, or E;
``(2) prohibiting nongovernmental researchers and
policy analysts from accessing personally identifiable
information;
``(3) creating a disclosure form for students and
potential students that is distributed when such
students complete the common financial reporting form
under section 483, and as a part of the exit counseling
process under section 485(b), that--
``(A) informs the students that any title
IV grant or loan the students receive will be
included in the National Student Loan Data
System, and instructs the students on how to
access that information;
``(B) describes the categories of
individuals or entities that may access the
data relating to such grant or loan through the
data system, and for what purposes access is
allowed;
``(C) defines and explains the categories
of information included in the data system;
``(D) provides a summary of the provisions
of section 444 of the General Education
Provisions Act (the Family Educational Rights
and Privacy Act of 1974) and other applicable
Federal privacy statutes, and a statement of
the students' rights and responsibilities with
respect to such statutes;
``(E) explains the measures taken by the
Department to safeguard the students' data; and
``(F) includes other information as
determined appropriate by the Secretary;
``(4) requiring guaranty agencies, eligible
lenders, and eligible institutions of higher education
that enter into an agreement with a potential student,
student, or parent of such student regarding a loan
under part B, D, or E, to inform the student or parent
that such loan shall be--
``(A) submitted to the data system; and
``(B) accessible to guaranty agencies,
eligible lenders, and eligible institutions of
higher education determined by the Secretary to
be authorized users of the data system;
``(5) regularly reviewing the data system to--
``(A) delete inactive users from the data
system;
``(B) ensure that the data in the data
system are not being used for marketing
purposes; and
``(C) monitor the use of the data system by
guaranty agencies and eligible lenders to
determine whether an agency or lender is
accessing the records of students in which the
agency or lender has no existing financial
interest; and
``(6) developing standardized protocols for
limiting access to the data system that include--
``(A) collecting data on the usage of the
data system to monitor whether access has been
or is being used contrary to the purposes of
the data system;
``(B) defining the steps necessary for
determining whether, and how, to deny or
restrict access to the data system; and
``(C) determining the steps necessary to
reopen access to the data system following a
denial or restriction of access.''; and
(4) by striking subsection (e) (as redesignated by
paragraph (1)) and inserting the following:
``(e) Reports to Congress.--
``(1) Annual report.--Not later than September 30
of each fiscal year, the Secretary shall prepare and
submit to the authorizing committees a report
describing--
``(A) the effectiveness of existing privacy
safeguards in protecting student and parent
information in the data system;
``(B) the success of any new authorization
protocols in more effectively preventing abuse
of the data system;
``(C) the ability of the Secretary to
monitor how the system is being used, relative
to the intended purposes of the data system;
and
``(D) any protocols developed under
subsection (d)(6) during the preceding fiscal
year.
``(2) Study.--
``(A) In general.--The Secretary shall
conduct a study regarding--
``(i) available mechanisms for
providing students and parents with the
ability to opt in or opt out of
allowing eligible lenders to access
their records in the National Student
Loan Data System; and
``(ii) appropriate protocols for
limiting access to the data system,
based on the risk assessment required
under subchapter III of chapter 35 of
title 44, United States Code.
``(B) Submission of study.--Not later than
three years after the date of enactment of the
Higher Education Opportunity Act, the Secretary
shall prepare and submit a report on the
findings of the study under subparagraph (A) to
the authorizing committees.''.
SEC. 490. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
Part G of title IV (20 U.S.C. 1088 et seq.) is amended by
inserting after section 485D (20 U.S.C. 1092c) the following:
``SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
``(a) In General.--The Secretary shall implement, in
cooperation with States, institutions of higher education,
secondary schools, early intervention and outreach programs
under this title, other agencies and organizations involved in
student financial assistance and college access, public
libraries, community centers, employers, and businesses, a
comprehensive system of early financial aid information in
order to provide students and families with early information
about financial aid and early estimates of such students'
eligibility for financial aid from multiple sources. Such
system shall include the activities described in subsection
(b).
``(b) Communication of Availability of Aid and Aid
Eligibility.--
``(1) Students who receive benefits.--The Secretary
shall--
``(A) make special efforts to notify
students who receive or are eligible to receive
benefits under a Federal means-tested benefit
program (including the supplemental nutrition
assistance program under the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.)), or
another such benefit program as determined by
the Secretary, of such students' potential
eligibility for a maximum Federal Pell Grant
under subpart 1 of part A; and
``(B) disseminate such informational
materials, that are part of the system
described in subsection (a), as the Secretary
determines necessary.
``(2) Secondary school students.--The Secretary, in
cooperation with States, institutions of higher
education, other organizations involved in college
access and student financial aid, secondary schools,
and programs under this title that serve secondary
school students, shall make special efforts to notify
students in secondary school and their families, as
early as possible but not later than such students'
junior year of secondary school, of the availability of
financial aid under this title and shall provide
nonbinding estimates of the amounts of grant and loan
aid that an individual may be eligible for under this
title upon completion of an application form under
section 483(a). The Secretary shall ensure that such
information is as accurate as possible and that such
information is provided in an age-appropriate format
using dissemination mechanisms suitable for students in
secondary school.
``(3) Adult learners.--The Secretary, in
cooperation with States, institutions of higher
education, other organizations involved in college
access and student financial aid, employers, workforce
investment boards, and public libraries, shall make
special efforts to provide individuals who would
qualify as independent students, as defined in section
480(d), with information regarding the availability of
financial aid under this title and with nonbinding
estimates of the amounts of grant and loan aid that an
individual may be eligible for under this title upon
completion of an application form under section 483(a).
The Secretary shall ensure that such information--
``(A) is as accurate as possible;
``(B) includes specific information
regarding the availability of financial aid for
students qualified as independent students, as
defined in section 480(d); and
``(C) uses dissemination mechanisms
suitable for adult learners.
``(4) Public awareness campaign.--Not later than
two years after the date of enactment of the Higher
Education Opportunity Act, the Secretary, in
coordination with States, institutions of higher
education, early intervention and outreach programs
under this title, other agencies and organizations
involved in college access and student financial aid,
secondary schools, organizations that provide services
to individuals that are or were homeless, to
individuals in foster care, or to other disconnected
individuals, local educational agencies, public
libraries, community centers, businesses, employers,
employment services, workforce investment boards, and
movie theaters, shall implement a public awareness
campaign in order to increase national awareness
regarding the availability of financial aid under this
title. The public awareness campaign shall disseminate
accurate information regarding the availability of
financial aid under this title and shall be
implemented, to the extent practicable, using a variety
of media, including print, television, radio, and the
Internet. The Secretary shall design and implement the
public awareness campaign based upon relevant
independent research and the information and
dissemination strategies found most effective in
implementing paragraphs (1) through (3).''.
SEC. 491. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
Section 486(f)(3) (20 U.S.C. 1093(f)(3)) is amended--
(1) in subparagraph (B), by redesignating clauses
(i) and (ii) as subparagraphs (A) and (B),
respectively, and adjusting the margins accordingly;
and
(2) by striking ``Reports.--'' and all that follows
through ``House of Representatives on an annual basis''
and inserting ``Annual reports.--The Secretary shall
provide reports to the authorizing committees on an
annual basis''.
SEC. 492. ARTICULATION AGREEMENTS.
Part G of title IV is further amended by inserting after
section 486 (20 U.S.C. 1093) the following new section:
``SEC. 486A. ARTICULATION AGREEMENTS.
``(a) Definition.--In this section, the term `articulation
agreement' means an agreement between or among institutions of
higher education that specifies the acceptability of courses in
transfer toward meeting specific degree or program
requirements.
``(b) Program To Encourage Articulation Agreements.--
``(1) Program established.--The Secretary shall
carry out a program for States, in cooperation with
public institutions of higher education, to develop,
enhance, and implement comprehensive articulation
agreements between or among such institutions in a
State, and (to the extent practicable) across State
lines, by 2010. Such articulation agreements shall be
made widely and publicly available on the websites of
States and such institutions. In developing, enhancing,
and implementing articulation agreements, States and
public institutions of higher education may employ
strategies, where applicable, including--
``(A) common course numbering;
``(B) a general education core curriculum;
``(C) management systems regarding course
equivalency, transfer of credit, and
articulation; and
``(D) other strategies identified by the
Secretary.
``(2) Technical assistance provided.--The Secretary
shall provide technical assistance to States and public
institutions of higher education for the purposes of
developing and implementing articulation agreements in
accordance with this subsection.
``(3) Rule of construction.--Nothing in this
subsection shall be construed to authorize the
Secretary to require particular policies, procedures,
or practices by institutions of higher education with
respect to articulation agreements.''.
SEC. 493. PROGRAM PARTICIPATION AGREEMENTS.
(a) Program Participation Agreement Requirements.--
(1) Voter registration; 90-10 rule; code of
conduct; disciplinary proceedings; preferred lender
lists; private education loan certification;
copyrighted material.--
(A) Amendment.--Section 487(a) (20 U.S.C.
1094(a)) is amended--
(i) in paragraph (23)--
(I) by moving subparagraph
(C) two ems to the left; and
(II) by adding at the end
the following:
``(D) The institution shall be considered
in compliance with the requirements of
subparagraph (A) for each student to whom the
institution electronically transmits a message
containing a voter registration form acceptable
for use in the State in which the institution
is located, or an Internet address where such a
form can be downloaded, if such information is
in an electronic message devoted exclusively to
voter registration.''; and
(ii) by adding at the end the
following:
``(24) In the case of a proprietary institution of
higher education (as defined in section 102(b)), such
institution will derive not less than ten percent of
such institution's revenues from sources other than
funds provided under this title, as calculated in
accordance with subsection (d)(1), or will be subject
to the sanctions described in subsection (d)(2).
``(25) In the case of an institution that
participates in a loan program under this title, the
institution will--
``(A) develop a code of conduct with
respect to such loans with which the
institution's officers, employees, and agents
shall comply, that--
``(i) prohibits a conflict of
interest with the responsibilities of
an officer, employee, or agent of an
institution with respect to such loans;
and
``(ii) at a minimum, includes the
provisions described in subsection (e);
``(B) publish such code of conduct
prominently on the institution's website; and
``(C) administer and enforce such code by,
at a minimum, requiring that all of the
institution's officers, employees, and agents
with responsibilities with respect to such
loans be annually informed of the provisions of
the code of conduct.
``(26) The institution will, upon written request,
disclose to the alleged victim of any crime of violence
(as that term is defined in section 16 of title 18,
United States Code), or a nonforcible sex offense, the
report on the results of any disciplinary proceeding
conducted by such institution against a student who is
the alleged perpetrator of such crime or offense with
respect to such crime or offense. If the alleged victim
of such crime or offense is deceased as a result of
such crime or offense, the next of kin of such victim
shall be treated as the alleged victim for purposes of
this paragraph.
``(27) In the case of an institution that has
entered into a preferred lender arrangement, the
institution will at least annually compile, maintain,
and make available for students attending the
institution, and the families of such students, a list,
in print or other medium, of the specific lenders for
loans made, insured, or guaranteed under this title or
private education loans that the institution
recommends, promotes, or endorses in accordance with
such preferred lender arrangement. In making such list,
the institution shall comply with the requirements of
subsection (h).
``(28)(A) The institution will, upon the request of
an applicant for a private education loan, provide to
the applicant the form required under section 128(e)(3)
of the Truth in Lending Act (15 U.S.C. 1638(e)(3)), and
the information required to complete such form, to the
extent the institution possesses such information.
``(B) For purposes of this paragraph, the term
`private education loan' has the meaning given such
term in section 140 of the Truth in Lending Act.
``(29) The institution certifies that the
institution--
``(A) has developed plans to effectively
combat the unauthorized distribution of
copyrighted material, including through the use
of a variety of technology-based deterrents;
and
``(B) will, to the extent practicable,
offer alternatives to illegal downloading or
peer-to-peer distribution of intellectual
property, as determined by the institution in
consultation with the chief technology officer
or other designated officer of the
institution.''.
(B) Effective date.--The amendment made by
subparagraph (A) with respect to section
487(a)(26) of the Higher Education Act of 1965
(as added by subparagraph (A)) shall apply with
respect to any disciplinary proceeding
conducted by an institution on or after the day
that is one year after the date of enactment of
this Act.
(b) Audits; Financial Responsibility; Enforcement of
Standards.--Section 487(c)(1)(A)(i) (20 U.S.C.
1094(c)(1)(A)(i)) is amended by inserting before the semicolon
at the end the following: ``, except that the Secretary may
modify the requirements of this clause with respect to
institutions of higher education that are foreign institutions,
and may waive such requirements with respect to a foreign
institution whose students receives less than $500,000 in loans
under this title during the award year preceding the audit
period''.
(c) Implementation of Non-Title IV Revenue Requirement;
Code of Conduct; Institutional Requirements for Teach-Outs;
Inspector General Report on Gift Ban Violations; Preferred
Lender List Requirements.--Section 487 (20 U.S.C. 1094) is
further amended--
(1) by redesignating subsections (d) and (e) as
subsections (i) and (j), respectively; and
(2) by inserting after subsection (c) the
following:
``(d) Implementation of Non-Title IV Revenue Requirement.--
``(1) Calculation.--In making calculations under
subsection (a)(24), a proprietary institution of higher
education shall--
``(A) use the cash basis of accounting,
except in the case of loans described in
subparagraph (D)(i) that are made by the
proprietary institution of higher education;
``(B) consider as revenue only those funds
generated by the institution from--
``(i) tuition, fees, and other
institutional charges for students
enrolled in programs eligible for
assistance under this title;
``(ii) activities conducted by the
institution that are necessary for the
education and training of the
institution's students, if such
activities are--
``(I) conducted on campus
or at a facility under the
control of the institution;
``(II) performed under the
supervision of a member of the
institution's faculty; and
``(III) required to be
performed by all students in a
specific educational program at
the institution; and
``(iii) funds paid by a student, or
on behalf of a student by a party other
than the institution, for an education
or training program that is not
eligible for funds under this title, if
the program--
``(I) is approved or
licensed by the appropriate
State agency;
``(II) is accredited by an
accrediting agency recognized
by the Secretary; or
``(III) provides an
industry-recognized credential
or certification;
``(C) presume that any funds for a program
under this title that are disbursed or
delivered to or on behalf of a student will be
used to pay the student's tuition, fees, or
other institutional charges, regardless of
whether the institution credits those funds to
the student's account or pays those funds
directly to the student, except to the extent
that the student's tuition, fees, or other
institutional charges are satisfied by--
``(i) grant funds provided by non-
Federal public agencies or private
sources independent of the institution;
``(ii) funds provided under a
contractual arrangement with a Federal,
State, or local government agency for
the purpose of providing job training
to low-income individuals who are in
need of that training;
``(iii) funds used by a student
from savings plans for educational
expenses established by or on behalf of
the student and which qualify for
special tax treatment under the
Internal Revenue Code of 1986; or
``(iv) institutional scholarships
described in subparagraph (D)(iii);
``(D) include institutional aid as revenue
to the school only as follows:
``(i) in the case of loans made by
a proprietary institution of higher
education on or after July 1, 2008 and
prior to July 1, 2012, the net present
value of such loans made by the
institution during the applicable
institutional fiscal year accounted for
on an accrual basis and estimated in
accordance with generally accepted
accounting principles and related
standards and guidance, if the loans--
``(I) are bona fide as
evidenced by enforceable
promissory notes;
``(II) are issued at
intervals related to the
institution's enrollment
periods; and
``(III) are subject to
regular loan repayments and
collections;
``(ii) in the case of loans made by
a proprietary institution of higher
education on or after July 1, 2012,
only the amount of loan repayments
received during the applicable
institutional fiscal year, excluding
repayments on loans made and accounted
for as specified in clause (i); and
``(iii) in the case of scholarships
provided by a proprietary institution
of higher education, only those
scholarships provided by the
institution in the form of monetary aid
or tuition discounts based upon the
academic achievements or financial need
of students, disbursed during each
fiscal year from an established
restricted account, and only to the
extent that funds in that account
represent designated funds from an
outside source or from income earned on
those funds;
``(E) in the case of each student who
receives a loan on or after July 1, 2008, and
prior to July 1, 2011, that is authorized under
section 428H or that is a Federal Direct
Unsubsidized Stafford Loan, treat as revenue
received by the institution from sources other
than funds received under this title, the
amount by which the disbursement of such loan
received by the institution exceeds the limit
on such loan in effect on the day before the
date of enactment of the Ensuring Continued
Access to Student Loans Act of 2008; and
``(F) exclude from revenues--
``(i) the amount of funds the
institution received under part C,
unless the institution used those funds
to pay a student's institutional
charges;
``(ii) the amount of funds the
institution received under subpart 4 of
part A;
``(iii) the amount of funds
provided by the institution as matching
funds for a program under this title;
``(iv) the amount of funds provided
by the institution for a program under
this title that are required to be
refunded or returned; and
``(v) the amount charged for books,
supplies, and equipment, unless the
institution includes that amount as
tuition, fees, or other institutional
charges.
``(2) Sanctions.--
``(A) Ineligibility.--A proprietary
institution of higher education that fails to
meet a requirement of subsection (a)(24) for
two consecutive institutional fiscal years
shall be ineligible to participate in the
programs authorized by this title for a period
of not less than two institutional fiscal
years. To regain eligibility to participate in
the programs authorized by this title, a
proprietary institution of higher education
shall demonstrate compliance with all
eligibility and certification requirements
under section 498 for a minimum of two
institutional fiscal years after the
institutional fiscal year in which the
institution became ineligible.
``(B) Additional enforcement.--In addition
to such other means of enforcing the
requirements of this title as may be available
to the Secretary, if a proprietary institution
of higher education fails to meet a requirement
of subsection (a)(24) for any institutional
fiscal year, then the institution's eligibility
to participate in the programs authorized by
this title becomes provisional for the two
institutional fiscal years after the
institutional fiscal year in which the
institution failed to meet the requirement of
subsection (a)(24), except that such
provisional eligibility shall terminate--
``(i) on the expiration date of the
institution's program participation
agreement under this subsection that is
in effect on the date the Secretary
determines that the institution failed
to meet the requirement of subsection
(a)(24); or
``(ii) in the case that the
Secretary determines that the
institution failed to meet a
requirement of subsection (a)(24) for
two consecutive institutional fiscal
years, on the date the institution is
determined ineligible in accordance
with subparagraph (A).
``(3) Publication on college navigator website.--
The Secretary shall publicly disclose on the College
Navigator website--
``(A) the identity of any proprietary
institution of higher education that fails to
meet a requirement of subsection (a)(24); and
``(B) the extent to which the institution
failed to meet such requirement.
``(4) Report to congress.--Not later than July 1,
2009, and July 1 of each succeeding year, the Secretary
shall submit to the authorizing committees a report
that contains, for each proprietary institution of
higher education that receives assistance under this
title, as provided in the audited financial statements
submitted to the Secretary by each institution pursuant
to the requirements of subsection (a)(24)--
``(A) the amount and percentage of such
institution's revenues received from sources
under this title; and
``(B) the amount and percentage of such
institution's revenues received from other
sources.
``(e) Code of Conduct Requirements.--An institution of
higher education's code of conduct, as required under
subsection (a)(25), shall include the following requirements:
``(1) Ban on revenue-sharing arrangements.--
``(A) Prohibition.--The institution shall
not enter into any revenue-sharing arrangement
with any lender.
``(B) Definition.--For purposes of this
paragraph, the term `revenue-sharing
arrangement' means an arrangement between an
institution and a lender under which--
``(i) a lender provides or issues a
loan that is made, insured, or
guaranteed under this title to students
attending the institution or to the
families of such students; and
``(ii) the institution recommends
the lender or the loan products of the
lender and in exchange, the lender pays
a fee or provides other material
benefits, including revenue or profit
sharing, to the institution, an officer
or employee of the institution, or an
agent.
``(2) Gift ban.--
``(A) Prohibition.--No officer or employee
of the institution who is employed in the
financial aid office of the institution or who
otherwise has responsibilities with respect to
education loans, or agent who has
responsibilities with respect to education
loans, shall solicit or accept any gift from a
lender, guarantor, or servicer of education
loans.
``(B) Definition of gift.--
``(i) In general.--In this
paragraph, the term `gift' means any
gratuity, favor, discount,
entertainment, hospitality, loan, or
other item having a monetary value of
more than a de minimus amount. The term
includes a gift of services,
transportation, lodging, or meals,
whether provided in kind, by purchase
of a ticket, payment in advance, or
reimbursement after the expense has
been incurred.
``(ii) Exceptions.--The term `gift'
shall not include any of the following:
``(I) Standard material,
activities, or programs on
issues related to a loan,
default aversion, default
prevention, or financial
literacy, such as a brochure, a
workshop, or training.
``(II) Food, refreshments,
training, or informational
material furnished to an
officer or employee of an
institution, or to an agent, as
an integral part of a training
session that is designed to
improve the service of a
lender, guarantor, or servicer
of education loans to the
institution, if such training
contributes to the professional
development of the officer,
employee, or agent.
``(III) Favorable terms,
conditions, and borrower
benefits on an education loan
provided to a student employed
by the institution if such
terms, conditions, or benefits
are comparable to those
provided to all students of the
institution.
``(IV) Entrance and exit
counseling services provided to
borrowers to meet the
institution's responsibilities
for entrance and exit
counseling as required by
subsections (b) and (l) of
section 485, as long as--
``(aa) the
institution's staff are
in control of the
counseling, (whether in
person or via
electronic
capabilities); and
``(bb) such
counseling does not
promote the products or
services of any
specific lender.
``(V) Philanthropic
contributions to an institution
from a lender, servicer, or
guarantor of education loans
that are unrelated to education
loans or any contribution from
any lender, guarantor, or
servicer that is not made in
exchange for any advantage
related to education loans.
``(VI) State education
grants, scholarships, or
financial aid funds
administered by or on behalf of
a State.
``(iii) Rule for gifts to family
members.--For purposes of this
paragraph, a gift to a family member of
an officer or employee of an
institution, to a family member of an
agent, or to any other individual based
on that individual's relationship with
the officer, employee, or agent, shall
be considered a gift to the officer,
employee, or agent if--
``(I) the gift is given
with the knowledge and
acquiescence of the officer,
employee, or agent; and
``(II) the officer,
employee, or agent has reason
to believe the gift was given
because of the official
position of the officer,
employee, or agent.
``(3) Contracting arrangements prohibited.--
``(A) Prohibition.--An officer or employee
who is employed in the financial aid office of
the institution or who otherwise has
responsibilities with respect to education
loans, or an agent who has responsibilities
with respect to education loans, shall not
accept from any lender or affiliate of any
lender any fee, payment, or other financial
benefit (including the opportunity to purchase
stock) as compensation for any type of
consulting arrangement or other contract to
provide services to a lender or on behalf of a
lender relating to education loans.
``(B) Exceptions.--Nothing in this
subsection shall be construed as prohibiting--
``(i) an officer or employee of an
institution who is not employed in the
institution's financial aid office and
who does not otherwise have
responsibilities with respect to
education loans, or an agent who does
not have responsibilities with respect
to education loans, from performing
paid or unpaid service on a board of
directors of a lender, guarantor, or
servicer of education loans;
``(ii) an officer or employee of
the institution who is not employed in
the institution's financial aid office
but who has responsibility with respect
to education loans as a result of a
position held at the institution, or an
agent who has responsibility with
respect to education loans, from
performing paid or unpaid service on a
board of directors of a lender,
guarantor, or servicer of education
loans, if the institution has a written
conflict of interest policy that
clearly sets forth that officers,
employees, or agents must recuse
themselves from participating in any
decision of the board regarding
education loans at the institution; or
``(iii) an officer, employee, or
contractor of a lender, guarantor, or
servicer of education loans from
serving on a board of directors, or
serving as a trustee, of an
institution, if the institution has a
written conflict of interest policy
that the board member or trustee must
recuse themselves from any decision
regarding education loans at the
institution.
``(4) Interaction with borrowers.--The institution
shall not--
``(A) for any first-time borrower, assign,
through award packaging or other methods, the
borrower's loan to a particular lender; or
``(B) refuse to certify, or delay
certification of, any loan based on the
borrower's selection of a particular lender or
guaranty agency.
``(5) Prohibition on offers of funds for private
loans.--
``(A) Prohibition.--The institution shall
not request or accept from any lender any offer
of funds to be used for private education loans
(as defined in section 140 of the Truth in
Lending Act), including funds for an
opportunity pool loan, to students in exchange
for the institution providing concessions or
promises regarding providing the lender with--
``(i) a specified number of loans
made, insured, or guaranteed under this
title;
``(ii) a specified loan volume of
such loans; or
``(iii) a preferred lender
arrangement for such loans.
``(B) Definition of opportunity pool
loan.--In this paragraph, the term `opportunity
pool loan' means a private education loan made
by a lender to a student attending the
institution or the family member of such a
student that involves a payment, directly or
indirectly, by such institution of points,
premiums, additional interest, or financial
support to such lender for the purpose of such
lender extending credit to the student or the
family.
``(6) Ban on staffing assistance.--
``(A) Prohibition.--The institution shall
not request or accept from any lender any
assistance with call center staffing or
financial aid office staffing.
``(B) Certain assistance permitted.--
Nothing in paragraph (1) shall be construed to
prohibit the institution from requesting or
accepting assistance from a lender related to--
``(i) professional development
training for financial aid
administrators;
``(ii) providing educational
counseling materials, financial
literacy materials, or debt management
materials to borrowers, provided that
such materials disclose to borrowers
the identification of any lender that
assisted in preparing or providing such
materials; or
``(iii) staffing services on a
short-term, nonrecurring basis to
assist the institution with financial
aid-related functions during
emergencies, including State-declared
or federally declared natural
disasters, federally declared national
disasters, and other localized
disasters and emergencies identified by
the Secretary.
``(7) Advisory board compensation.--Any employee
who is employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other student financial
aid of the institution, and who serves on an advisory
board, commission, or group established by a lender,
guarantor, or group of lenders or guarantors, shall be
prohibited from receiving anything of value from the
lender, guarantor, or group of lenders or guarantors,
except that the employee may be reimbursed for
reasonable expenses incurred in serving on such
advisory board, commission, or group.
``(f) Institutional Requirements for Teach-Outs.--
``(1) In general.--In the event the Secretary
initiates the limitation, suspension, or termination of
the participation of an institution of higher education
in any program under this title under the authority of
subsection (c)(1)(F) or initiates an emergency action
under the authority of subsection (c)(1)(G) and its
prescribed regulations, the Secretary shall require
that institution to prepare a teach-out plan for
submission to the institution's accrediting agency or
association in compliance with section 496(c)(4), the
Secretary's regulations on teach-out plans, and the
standards of the institution's accrediting agency or
association.
``(2) Teach-out plan defined.--In this subsection,
the term `teach-out plan' means a written plan that
provides for the equitable treatment of students if an
institution of higher education ceases to operate
before all students have completed their program of
study, and may include, if required by the
institution's accrediting agency or association, an
agreement between institutions for such a teach-out
plan.
``(g) Inspector General Report on Gift Ban Violations.--The
Inspector General of the Department shall--
``(1) submit an annual report to the authorizing
committees identifying all violations of an
institution's code of conduct that the Inspector
General has substantiated during the preceding year
relating to the gift ban provisions described in
subsection (f)(2); and
``(2) make the report available to the public
through the Department's website.
``(h) Preferred Lender List Requirements.--
``(1) In general.--In compiling, maintaining, and
making available a preferred lender list as required
under subsection (a)(27), the institution will--
``(A) clearly and fully disclose on such
preferred lender list--
``(i) not less than the information
required to be disclosed under section
153(a)(2)(A);
``(ii) why the institution has
entered into a preferred lender
arrangement with each lender on the
preferred lender list, particularly
with respect to terms and conditions or
provisions favorable to the borrower;
and
``(iii) that the students attending
the institution, or the families of
such students, do not have to borrow
from a lender on the preferred lender
list;
``(B) ensure, through the use of the list
of lender affiliates provided by the Secretary
under paragraph (2), that--
``(i) there are not less than three
lenders of loans made under part B that
are not affiliates of each other
included on the preferred lender list
and, if the institution recommends,
promotes, or endorses private education
loans, there are not less than two
lenders of private education loans that
are not affiliates of each other
included on the preferred lender list;
and
``(ii) the preferred lender list
under this paragraph--
``(I) specifically
indicates, for each listed
lender, whether the lender is
or is not an affiliate of each
other lender on the preferred
lender list; and
``(II) if a lender is an
affiliate of another lender on
the preferred lender list,
describes the details of such
affiliation;
``(C) prominently disclose the method and
criteria used by the institution in selecting
lenders with which to enter into preferred
lender arrangements to ensure that such lenders
are selected on the basis of the best interests
of the borrowers, including--
``(i) payment of origination or
other fees on behalf of the borrower;
``(ii) highly competitive interest
rates, or other terms and conditions or
provisions of loans under this title or
private education loans;
``(iii) high-quality servicing for
such loans; or
``(iv) additional benefits beyond
the standard terms and conditions or
provisions for such loans;
``(D) exercise a duty of care and a duty of
loyalty to compile the preferred lender list
under this paragraph without prejudice and for
the sole benefit of the students attending the
institution, or the families of such students;
``(E) not deny or otherwise impede the
borrower's choice of a lender or cause
unnecessary delay in loan certification under
this title for those borrowers who choose a
lender that is not included on the preferred
lender list; and
``(F) comply with such other requirements
as the Secretary may prescribe by regulation.
``(2) Lender affiliates list.--
``(A) In general.--The Secretary shall
maintain and regularly update a list of lender
affiliates of all eligible lenders, and shall
provide such list to institutions for use in
carrying out paragraph (1)(B).
``(B) Use of most recent list.--An
institution shall use the most recent list of
lender affiliates provided by the Secretary
under subparagraph (A) in carrying out
paragraph (1)(B).''.
(d) Definitions.--Section 487(i) (as redesignated by
subsection (c)(1)) (20 U.S.C. 1087(i)) is further amended--
(1) by striking ``(i) Definition of Eligible
Institution.--For the purpose of this section, the''
and inserting the following:
``(i) Definitions.--For the purpose of this section:
``(1) Agent.--The term `agent' has the meaning
given the term in section 151.
``(2) Affiliate.--The term `affiliate' means a
person that controls, is controlled by, or is under
common control with another person. A person controls,
is controlled by, or is under common control with
another person if--
``(A) the person directly or indirectly, or
acting through one or more others, owns,
controls, or has the power to vote five percent
or more of any class of voting securities of
such other person;
``(B) the person controls, in any manner,
the election of a majority of the directors or
trustees of such other person; or
``(C) the Secretary determines (after
notice and opportunity for a hearing) that the
person directly or indirectly exercises a
controlling interest over the management or
policies of such other person's education
loans.
``(3) Education loan.--The term `education loan'
has the meaning given the term in section 151.
``(4) Eligible institution.--The''; and
(2) by adding at the end the following new
paragraph:
``(5) Officer.--The term `officer' has the meaning
given the term in section 151.
``(6) Preferred lender arrangement.--The term
`preferred lender arrangement' has the meaning given
the term in section 151.''.
SEC. 494. REGULATORY RELIEF AND IMPROVEMENT.
Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) In general.--The Secretary shall continue the
voluntary participation of any experimental sites in
existence as of July 1, 2007, unless the Secretary
determines that such site's participation has not been
successful in carrying out the purposes of this
section. Any activities approved by the Secretary prior
to such date that have not been successful in carrying
out the purposes of this section shall be discontinued
not later than June 30, 2009.'';
(2) in paragraph (2), by striking the matter
preceding subparagraph (A) and inserting the following:
``(2) Report.--The Secretary shall review and
evaluate the experience of institutions participating
as experimental sites and shall, on a biennial basis,
submit a report based on the review and evaluation to
the authorizing committees. Such report shall include--
''; and
(3) in paragraph (3)--
(A) in subparagraph (A)--
(i) by striking ``Upon the
submission of the report required by
paragraph (2), the'' and inserting
``The''; and
(ii) by inserting ``periodically''
after ``authorized to'';
(B) by striking subparagraph (B);
(C) by redesignating subparagraph (C) as
subparagraph (B); and
(D) in subparagraph (B) (as redesignated by
subparagraph (C))--
(i) by inserting ``, including
requirements related to the award
process and disbursement of student
financial aid (such as innovative
delivery systems for modular or
compressed courses, or other innovative
systems), verification of student
financial aid application data,
entrance and exit interviews, or other
management procedures or processes as
determined in the negotiated rulemaking
process under section 492'' after
``requirements in this title'';
(ii) by inserting ``(other than an
award rule related to an experiment in
modular or compressed schedules)''
after ``award rules''; and
(iii) by inserting ``unless the
waiver of such provisions is authorized
by another provision under this title''
before the period at the end.
SEC. 494A. TRANSFER OF ALLOTMENTS.
Section 488 (20 U.S.C. 1095) is amended in the first
sentence--
(1) in paragraph (1), by striking ``and'' after the
semicolon;
(2) in paragraph (2), by striking ``413D.'' and
inserting ``413D or 462 (or both); and''; and
(3) by adding at the end ``(3) transfer 25 percent
of the institution's allotment under section 413D to
the institution's allotment under section 442.''.
SEC. 494B. PURPOSE OF ADMINISTRATIVE PAYMENTS.
Section 489(b)(1) (20 U.S.C. 1096(b)(1)) is amended by
striking ``offsetting the administrative costs of'' and
inserting ``administering''.
SEC. 494C. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
(a) Amendments.--Section 491 (20 U.S.C. 1098) is amended--
(1) in subsection (a)(2)--
(A) in subparagraph (B), by striking
``and'' after the semicolon;
(B) in subparagraph (C), by striking the
period and inserting a semicolon; and
(C) by adding at the end the following:
``(D) to provide knowledge and
understanding of early intervention programs,
and to make recommendations that will result in
early awareness by low- and moderate-income
students and families--
``(i) of their eligibility for
assistance under this title; and
``(ii) to the extent practicable,
of their eligibility for other forms of
State and institutional need-based
student assistance;
``(E) to make recommendations that will
expand and improve partnerships among the
Federal Government, States, institutions of
higher education, and private entities to
increase the awareness and the total amount of
need-based student assistance available to low-
and moderate-income students; and
``(F) to collect information on Federal
regulations, and on the impact of Federal
regulations on student financial assistance and
on the cost of receiving a postsecondary
education, and to make recommendations to help
streamline the regulations for institutions of
higher education from all sectors.'';
(2) by striking subsection (c) and inserting the
following new subsection:
``(c) Membership.--(1) The Advisory Committee shall consist
of 11 members appointed as follows:
``(A) Four members shall be appointed by the
President pro tempore of the Senate, of whom two
members shall be appointed from recommendations by the
Majority Leader of the Senate, and two members shall be
appointed from recommendations by the Minority Leader
of the Senate.
``(B) Four members shall be appointed by the
Speaker of the House of Representatives, of whom two
members shall be appointed from recommendations by the
Majority Leader of the House of Representatives, and
two members shall be appointed from recommendations by
the Minority Leader of the House of Representatives.
``(C) Three members shall be appointed by the
Secretary, of whom at least one member shall be a
student.
``(2) Each member of the Advisory Committee, with the
exception of a student member, shall be appointed on the basis
of technical qualifications, professional experience, and
demonstrated knowledge in the fields of higher education,
student financial aid, financing post-secondary education, and
the operations and financing of student loan guarantee
agencies.
``(3) The appointment of a member under subparagraph (A) or
(B) of paragraph (1) shall be effective upon publication of
such appointment in the Congressional Record.'';
(3) in subsection (d)--
(A) in paragraph (6), by striking ``, but
nothing in this section shall authorize the
committee to perform such studies, surveys, or
analyses'';
(B) in paragraph (8), by striking ``and''
after the semicolon;
(C) by redesignating paragraph (9) as
paragraph (11); and
(D) by inserting after paragraph (8) (as
amended by subparagraph (B)) the following:
``(9) provide an annual report to the authorizing
committees that provides analyses and policy
recommendations regarding--
``(A) the adequacy of need-based grant aid
for low- and moderate-income students; and
``(B) the postsecondary enrollment and
graduation rates of low- and moderate-income
students;
``(10) develop and maintain an information
clearinghouse to help institutions of higher education
understand the regulatory impact of the Federal
Government on institutions of higher education from all
sectors, in order to raise awareness of institutional
legal obligations and provide information to improve
compliance with, and to reduce the duplication and
inefficiency of, Federal regulations; and'';
(4) in subsection (e)--
(A) in the matter preceding subparagraph
(A) of paragraph (1), by striking ``3'' and
inserting ``4''; and
(B) in paragraph (2), by striking ``A
member of the Advisory Committee shall'' and
all that follows through ``on the Advisory
Committee.'' and inserting ``A member of the
Advisory Committee serving on the date of
enactment of the Higher Education Opportunity
Act shall be permitted to serve the duration of
the member's term, regardless of whether the
member was previously appointed to more than
one term.'';
(5) in subsection (j)--
(A) in paragraph (1)--
(i) by inserting ``and
simplifications'' after ``delivery
processes''; and
(ii) by striking ``including the
implementation of a performance-based
organization within the Department, and
report to Congress regarding such
modernization on not less than an
annual basis,''; and
(B) by striking paragraphs (4) and (5) and
inserting the following:
``(4) conduct a review and analysis of regulations
in accordance with subsection (l); and
``(5) conduct a study in accordance with subsection
(m).'';
(6) in subsection (k), by striking ``2004'' and
inserting ``2014''; and
(7) by adding at the end the following:
``(l) Review and Analysis of Regulations.--
``(1) Recommendations.--The Advisory Committee
shall make recommendations to the Secretary and the
authorizing committees for consideration of future
legislative action regarding redundant or outdated
regulations consistent with the Secretary's
requirements under section 498B.
``(2) Review and analysis of regulations.--
``(A) Review of current regulations.--To
meet the requirements of subsection (d)(10),
the Advisory Committee shall conduct a review
and analysis of the regulations issued by
Federal agencies that are in effect at the time
of the review and that apply to the operations
or activities of institutions of higher
education from all sectors. The review and
analysis may include a determination of whether
the regulation is duplicative, is no longer
necessary, is inconsistent with other Federal
requirements, or is overly burdensome. In
conducting the review, the Advisory Committee
shall pay specific attention to evaluating ways
in which regulations under this title affecting
institutions of higher education (other than
institutions described in section
102(a)(1)(C)), that have received in each of
the two most recent award years prior to the
date of enactment of Higher Education
Opportunity Act less than $200,000 in funds
through this title, may be improved,
streamlined, or eliminated.
``(B) Review and collection of future
regulations.--The Advisory Committee shall--
``(i) monitor all Federal
regulations, including notices of
proposed rulemaking, for their impact
or potential impact on higher
education; and
``(ii) provide a succinct
description of each regulation or
proposed regulation that is generally
relevant to institutions of higher
education from all sectors.
``(C) Maintenance of public website.--The
Advisory Committee shall develop and maintain
an easy to use, searchable, and regularly
updated website that--
``(i) provides information
collected in subparagraph (B);
``(ii) provides an area for the
experts and members of the public to
provide recommendations for ways in
which the regulations may be
streamlined; and
``(iii) publishes the study
conducted by the National Research
Council of the National Academy of
Sciences under section 1106 of the
Higher Education Opportunity Act.
``(3) Consultation.--
``(A) In general.--In carrying out the
review, analysis, and development of the
website required under paragraph (2), the
Advisory Committee shall consult with the
Secretary, other Federal agencies, relevant
representatives of institutions of higher
education, individuals who have expertise and
experience with Federal regulations, and the
review panels described in subparagraph (B).
``(B) Review panels.--The Advisory
Committee shall convene not less than two
review panels of representatives of the groups
involved in higher education, including
individuals involved in student financial
assistance programs under this title, who have
experience and expertise in the regulations
issued by the Federal Government that affect
all sectors of higher education, in order to
review the regulations and to provide
recommendations to the Advisory Committee with
respect to the review and analysis under
paragraph (2). The panels shall be made up of
experts in areas such as the operations of the
financial assistance programs, the
institutional eligibility requirements for the
financial assistance programs, regulations not
directly related to the operations or the
institutional eligibility requirements of the
financial assistance programs, and regulations
for dissemination of information to students
about the financial assistance programs.
``(4) Periodic updates to the authorizing
committees.--The Advisory Committee shall--
``(A) submit, not later than two years
after the completion of the negotiated
rulemaking process required under section 492
resulting from the amendments to this Act made
by the Higher Education Opportunity Act, a
report to the authorizing committees and the
Secretary detailing the review panels' findings
and recommendations with respect to the review
of regulations; and
``(B) provide periodic updates to the
authorizing committees regarding--
``(i) the impact of all Federal
regulations on all sectors of higher
education; and
``(ii) suggestions provided through
the website for streamlining or
eliminating duplicative regulations.
``(5) Additional support.--The Secretary and the
Inspector General of the Department shall provide such
assistance and resources to the Advisory Committee as
the Secretary and Inspector General determine are
necessary to conduct the review and analysis required
by this subsection.
``(m) Study of Innovative Pathways to Baccalaureate Degree
Attainment.--
``(1) Study required.--The Advisory Committee shall
conduct a study of the feasibility of increasing
baccalaureate degree attainment rates by reducing the
costs and financial barriers to attaining a
baccalaureate degree through innovative programs.
``(2) Scope of study.--The Advisory Committee shall
examine new and existing programs that promote
baccalaureate degree attainment through innovative
ways, such as dual or concurrent enrollment programs,
changes made to the Federal Pell Grant program,
simplification of the needs analysis process,
compressed or modular scheduling, articulation
agreements, and programs that allow two-year
institutions of higher education to offer baccalaureate
degrees.
``(3) Required aspects of the study.--In performing
the study described in this subsection, the Advisory
Committee shall examine the following aspects of such
innovative programs:
``(A) The impact of such programs on
baccalaureate attainment rates.
``(B) The degree to which a student's total
cost of attaining a baccalaureate degree can be
reduced by such programs.
``(C) The ways in which low- and moderate-
income students can be specifically targeted by
such programs.
``(D) The ways in which nontraditional
students can be specifically targeted by such
programs.
``(E) The cost-effectiveness for the
Federal Government, States, and institutions of
higher education to implement such programs.
``(4) Consultation.--
``(A) In general.--In performing the study
described in this subsection, the Advisory
Committee shall consult with a broad range of
interested parties in higher education,
including parents, students, appropriate
representatives of secondary schools and
institutions of higher education, appropriate
State administrators, administrators of dual or
concurrent enrollment programs, and appropriate
Department officials.
``(B) Consultation with the authorizing
committees.--The Advisory Committee shall
consult on a regular basis with the authorizing
committees in carrying out the study required
by this subsection.
``(5) Reports to authorizing committees.--
``(A) Interim report.--The Advisory
Committee shall prepare and submit to the
authorizing committees and the Secretary an
interim report, not later than one year after
the date of enactment of the Higher Education
Opportunity Act, describing the progress made
in conducting the study required by this
subsection and any preliminary findings on the
topics identified under paragraph (2).
``(B) Final report.--The Advisory Committee
shall, not later than three years after the
date of enactment of the Higher Education
Opportunity Act, prepare and submit to the
authorizing committees and the Secretary a
final report on the study, including
recommendations for legislative, regulatory,
and administrative changes based on findings
related to the topics identified under
paragraph (2).''.
(b) Conforming Amendments.--Subsections (a)(1), (b), and
(d)(6) of section 491 (20 U.S.C. 1098) are each amended by
striking ``Congress'' and inserting ``authorizing committees''.
SEC. 494D. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
(a) Regional Meetings.--Section 492(a) (20 U.S.C. 1098a(a))
is amended--
(1) in paragraph (1), by inserting ``State student
grant agencies,'' after ``institutions of higher
education,''; and
(2) in paragraph (2), by striking ``, as amended by
the Higher Education Amendments of 1998''.
(b) Negotiated Rulemaking.--Section 492(b)(1) (20 U.S.C.
1098a(b)(1)) is amended--
(1) in the first sentence, by striking ``as amended
by the Higher Education Amendments of 1998''; and
(2) in the third sentence--
(A) by striking ``To the extent possible,
the Secretary'' and inserting ``The
Secretary''; and
(B) by inserting ``with demonstrated
expertise or experience in the relevant
subjects under negotiation,'' after ``select
individuals''.
SEC. 494E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.
Section 493A (20 U.S.C. 1098c) is repealed.
SEC. 494F. TECHNICAL AMENDMENT OF INCOME-BASED REPAYMENT.
Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amended by
striking ``or is already in default'' and inserting ``or had
been in default''.
PART H--PROGRAM INTEGRITY
SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.
Section 496 (20 U.S.C. 1099b) is amended--
(1) in subsection (a)--
(A) by striking paragraph (4) and inserting
the following:
``(4)(A) such agency or association consistently
applies and enforces standards that respect the stated
mission of the institution of higher education,
including religious missions, and that ensure that the
courses or programs of instruction, training, or study
offered by the institution of higher education,
including distance education or correspondence courses
or programs, are of sufficient quality to achieve, for
the duration of the accreditation period, the stated
objective for which the courses or the programs are
offered; and
``(B) if such agency or association has or seeks to
include within its scope of recognition the evaluation
of the quality of institutions or programs offering
distance education or correspondence education, such
agency or association shall, in addition to meeting the
other requirements of this subpart, demonstrate to the
Secretary that--
``(i) the agency or association's standards
effectively address the quality of an
institution's distance education or
correspondence education in the areas
identified in paragraph (5), except that--
``(I) the agency or association
shall not be required to have separate
standards, procedures, or policies for
the evaluation of distance education or
correspondence education institutions
or programs in order to meet the
requirements of this subparagraph; and
``(II) in the case that the agency
or association is recognized by the
Secretary, the agency or association
shall not be required to obtain the
approval of the Secretary to expand its
scope of accreditation to include
distance education or correspondence
education, provided that the agency or
association notifies the Secretary in
writing of the change in scope; and
``(ii) the agency or association requires
an institution that offers distance education
or correspondence education to have processes
through which the institution establishes that
the student who registers in a distance
education or correspondence education course or
program is the same student who participates in
and completes the program and receives the
academic credit;'';
(B) in paragraph (5), by amending
subparagraph (A) to read as follows:
``(A) success with respect to student
achievement in relation to the institution's
mission, which may include different standards
for different institutions or programs, as
established by the institution, including, as
appropriate, consideration of State licensing
examinations, consideration of course
completion, and job placement rates;'';
(C) by striking paragraph (6) and inserting
the following:
``(6) such an agency or association shall establish
and apply review procedures throughout the accrediting
process, including evaluation and withdrawal
proceedings, which comply with due process procedures
that provide--
``(A) for adequate written specification
of--
``(i) requirements, including clear
standards for an institution of higher
education or program to be accredited;
and
``(ii) identified deficiencies at
the institution or program examined;
``(B) for sufficient opportunity for a
written response, by an institution or program,
regarding any deficiencies identified by the
agency or association to be considered by the
agency or association--
``(i) within a timeframe determined
by the agency or association; and
``(ii) prior to final action in the
evaluation and withdrawal proceedings;
``(C) upon the written request of an
institution or program, for an opportunity for
the institution or program to appeal any
adverse action under this section, including
denial, withdrawal, suspension, or termination
of accreditation, taken against the institution
or program, prior to such action becoming final
at a hearing before an appeals panel that--
``(i) shall not include current
members of the agency's or
association's underlying decisionmaking
body that made the adverse decision;
and
``(ii) is subject to a conflict of
interest policy;
``(D) for the right to representation and
participation by counsel for an institution or
program during an appeal of the adverse action;
``(E) for a process, in accordance with
written procedures developed by the agency or
association, through which an institution or
program, before a final adverse action based
solely upon a failure to meet a standard or
criterion pertaining to finances, may on one
occasion seek review of significant financial
information that was unavailable to the
institution or program prior to the
determination of the adverse action, and that
bears materially on the financial deficiencies
identified by the agency or association;
``(F) in the case that the agency or
association determines that the new financial
information submitted by the institution or
program under subparagraph (E) meets the
criteria of significance and materiality
described in such subparagraph, for
consideration by the agency or association of
the new financial information prior to the
adverse action described in such subparagraph
becoming final; and
``(G) that any determination by the agency
or association made with respect to the new
financial information described in subparagraph
(E) shall not be separately appealable by the
institution or program.'';
(2) in subsection (c)--
(A) in paragraph (1), by inserting ``,
including those regarding distance education''
after ``their responsibilities'';
(B) by redesignating paragraphs (2) through
(6) as paragraphs (4) through (8);
(C) by inserting after paragraph (1) (as
amended by subparagraph (A)) the following:
``(2) monitors the growth of programs at
institutions that are experiencing significant
enrollment growth;
``(3) requires an institution to submit for
approval to the accrediting agency a teach-out plan
upon the occurrence of any of the following events:
``(A) the Department notifies the
accrediting agency of an action against the
institution pursuant to section 487(f);
``(B) the accrediting agency acts to
withdraw, terminate, or suspend the
accreditation of the institution; or
``(C) the institution notifies the
accrediting agency that the institution intends
to cease operations;'';
(D) by striking paragraph (7) (as
redesignated by subparagraph (B)) and inserting
the following:
``(7) makes available to the public and the State
licensing or authorizing agency, and submits to the
Secretary, a summary of agency or association actions,
including--
``(A) the award of accreditation or
reaccreditation of an institution;
``(B) final denial, withdrawal, suspension,
or termination of accreditation of an
institution, and any findings made in
connection with the action taken, together with
the official comments of the affected
institution; and
``(C) any other adverse action taken with
respect to an institution or placement on
probation of an institution;'';
(E) in paragraph (8) (as redesignated by
subparagraph (B)), by striking the period and
inserting ``; and''; and
(F) by adding at the end the following:
``(9) confirms, as a part of the agency's or
association's review for accreditation or
reaccreditation, that the institution has transfer of
credit policies--
``(A) that are publicly disclosed; and
``(B) that include a statement of the
criteria established by the institution
regarding the transfer of credit earned at
another institution of higher education.'';
(3) in subsection (g), by adding at the end the
following: ``Nothing in this section shall be construed
to permit the Secretary to establish any criteria that
specifies, defines, or prescribes the standards that
accrediting agencies or associations shall use to
assess any institution's success with respect to
student achievement.'';
(4) in subsection (o), by adding at the end the
following: ``Notwithstanding any other provision of
law, the Secretary shall not promulgate any regulation
with respect to the standards of an accreditation
agency or association described in subsection
(a)(5).''; and
(5) by adding at the end the following new
subsection:
``(p) Rule of Construction.--Nothing in subsection (a)(5)
shall be construed to restrict the ability of--
``(1) an accrediting agency or association to set,
with the involvement of its members, and to apply,
accreditation standards for or to institutions or
programs that seek review by the agency or association;
or
``(2) an institution to develop and use
institutional standards to show its success with
respect to student achievement, which achievement may
be considered as part of any accreditation review.
``(q) Review of Scope Changes.--The Secretary shall require
a review, at the next available meeting of the National
Advisory Committee on Institutional Quality and Integrity, of
any change in scope undertaken by an agency or association
under subsection (a)(4)(B)(i)(II) if the enrollment of an
institution that offers distance education or correspondence
education that is accredited by such agency or association
increases by 50 percent or more within any one institutional
fiscal year.''.
SEC. 496. ELIGIBILITY AND CERTIFICATION PROCEDURES.
Section 498 (20 U.S.C. 1099c) is amended--
(1) in subsection (d)(1)(B), by inserting ``and''
after the semicolon; and
(2) by adding at the end the following:
``(k) Treatment of Teach-Outs at Additional Locations.--
``(1) In general.--A location of a closed
institution of higher education shall be eligible as an
additional location of an eligible institution of
higher education, as defined pursuant to regulations of
the Secretary, for the purposes of a teach-out
described in section 487(f), if such teach-out has been
approved by the institution's accrediting agency.
``(2) Special rule.--An institution of higher
education that conducts a teach-out through the
establishment of an additional location described in
paragraph (1) shall be permitted to establish a
permanent additional location at a closed institution
and shall not be required--
``(A) to meet the requirements of sections
102(b)(1)(E) and 102(c)(1)(C) for such
additional location; or
``(B) to assume the liabilities of the
closed institution.''.
SEC. 497. PROGRAM REVIEW AND DATA.
Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--
(1) in paragraph (4), by striking ``and'' after the
semicolon;
(2) in paragraph (5) by striking the period and
inserting a semicolon; and
(3) by adding at the end the following:
``(6) provide to an institution of higher education
an adequate opportunity to review and respond to any
program review report and relevant materials related to
the report before any final program review report is
issued;
``(7) review and take into consideration an
institution of higher education's response in any final
program review report or audit determination, and
include in the report or determination--
``(A) a written statement addressing the
institution of higher education's response;
``(B) a written statement of the basis for
such report or determination; and
``(C) a copy of the institution's response;
and
``(8) maintain and preserve at all times the
confidentiality of any program review report until the
requirements of paragraphs (6) and (7) are met, and
until a final program review is issued, other than to
the extent required to comply with paragraph (5),
except that the Secretary shall promptly disclose any
and all program review reports to the institution of
higher education under review.''.
SEC. 498. REVIEW OF REGULATIONS.
Section 498B (20 U.S.C. 1099c-2) is amended by striking
subsection (d).
PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM
SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION.
SECTION 499 (20 U.S.C. 1099D) IS AMENDED--
(1) in subsection (b)(3)--
(A) in subparagraph (B)--
(i) in clause (i), by striking
``and'' after the semicolon;
(ii) in clause (ii), by striking
the period at the end of the sentence
and inserting ``; and''; and
(iii) by adding at the end the
following:
``(iii) a commitment from such
eligible lender that, if the lender has
a winning bid under subparagraph (F),
the lender will enter into the
agreement required under subparagraph
(G).'';
(B) by striking subparagraph (G) and
inserting the following:
``(G) Agreement with secretary;
compliance.--
``(i) Agreement.--Each eligible
lender having a winning bid under
subparagraph (F) shall enter into an
agreement with the Secretary under
which the eligible lender--
``(I) agrees to originate
eligible Federal PLUS Loans
under this paragraph to each
borrower who--
``(aa) seeks an
eligible Federal PLUS
Loan under this
paragraph to enable a
dependent student to
attend an institution
of higher education
within the State;
``(bb) is eligible
for an eligible Federal
PLUS Loan; and
``(cc) elects to
borrow from the
eligible lender; and
``(II) agrees to accept a
special allowance payment
(after the application of
section 438(b)(2)(I)(v)) from
the Secretary with respect to
the eligible Federal PLUS Loans
originated under subclause (I)
in the amount proposed in the
second lowest winning bid
described in subparagraph (F)
for the applicable State
auction.
``(ii) Compliance.--If an eligible
lender with a winning bid under
subparagraph (F) fails to enter into
the agreement required under clause
(i), or fails to comply with the terms
of such agreement, the Secretary may
sanction such eligible lender through
one or more of the following:
``(I) The assessment of a
penalty on such eligible lender
for any eligible Federal PLUS
Loans that such eligible lender
fails to originate under this
paragraph in accordance with
the agreement required under
clause (i), in the amount of
the additional costs (including
the amounts of any increase in
special allowance payments)
incurred by the Secretary in
obtaining another eligible
lender to originate such
eligible Federal PLUS Loans.
The Secretary shall collect
such penalty by--
``(aa) reducing the
amount of any payments
otherwise due to such
eligible lender from
the Secretary by the
amount of the penalty;
or
``(bb) requesting
any other Federal
agency to reduce the
amount of any payments
due to such eligible
lender from such agency
by the amount of the
penalty, in accordance
with section 3716 of
title 31, United States
Code.
``(II) A prohibition of
bidding by such lender in other
auctions under this section.
``(III) The limitation,
suspension, or termination of
such eligible lender's
participation in the loan
program under part B.
``(IV) Any other
enforcement action the
Secretary is authorized to take
under part B.''; and
(C) by striking subparagraph (J) and
inserting the following:
``(J) Guarantee against losses.--Each
eligible Federal PLUS Loan originated under
this paragraph shall be insured by a guaranty
agency in accordance with part B, except that,
notwithstanding section 428(b)(1)(G), such
insurance shall be in an amount equal to 99
percent of the unpaid principal and interest
due on the loan.''; and
(2) by adding at the end the following new
subsections:
``(c) Required Initial Evaluation.--The Secretary and
Secretary of the Treasury shall jointly conduct an evaluation,
in consultation with the Office of Management and Budget, the
Congressional Budget Office, and the Comptroller General, of
the pilot program carried out by the Secretary under this
section. The evaluation shall determine--
``(1) the extent of the savings to the Federal
Government that are generated through the pilot
program, compared to the cost the Federal Government
would have incurred in operating the PLUS loan program
under section 428B in the absence of the pilot program;
``(2) the number of lenders that participated in
the pilot program, and the extent to which the pilot
program generated competition among lenders to
participate in the auctions under the pilot program;
``(3) the number and volume of loans made under the
pilot program in each State;
``(4) the effect of the transition to and operation
of the pilot program on the ability of--
``(A) lenders participating in the pilot
program to originate loans made through the
pilot program smoothly and efficiently;
``(B) institutions of higher education
participating in the pilot program to disburse
loans made through the pilot program smoothly
and efficiently; and
``(C) parents to obtain loans made through
the pilot program in a timely and efficient
manner;
``(5) the differential impact, if any, of the
auction among the States, including between rural and
non-rural States; and
``(6) the feasibility of using the mechanism
piloted to operate the other loan programs under part B
of this title.
``(d) Reports.--
``(1) In general.--The Secretary and the Secretary
of the Treasury shall submit to the authorizing
committees--
``(A) not later than September 1, 2010, a
preliminary report regarding the findings of
the evaluation described in subsection (c);
``(B) not later than September 1, 2012, an
interim report regarding such findings; and
``(C) not later than September 1, 2013, a
final report regarding such findings.
``(2) Contents.--The Secretary shall include, in
each report required under subparagraphs (A), (B), and
(C) of paragraph (1), any recommendations, that are
based on the findings of the evaluation under
subsection (c), for--
``(A) improving the operation and
administration of the auction; and
``(B) improving the operation and
administration of other loan programs under
part B.''.
TITLE V--DEVELOPING INSTITUTIONS
SEC. 501. AUTHORIZED ACTIVITIES.
Section 503(b) (20 U.S.C. 1101b(b)) is amended--
(1) by redesignating paragraphs (6), (7), (8), (9),
(10), (11), (12), (13), and (14), as paragraphs (7),
(8), (9), (10), (11), (12), (13), (14), and (16),
respectively;
(2) in paragraph (5), by inserting ``, including
innovative and customized instruction courses (which
may include remedial education and English language
instruction) designed to help retain students and move
the students rapidly into core courses and through
program completion'' before the period at the end;
(3) by inserting after paragraph (5) the following:
``(6) Articulation agreements and student support
programs designed to facilitate the transfer from two-
year to four-year institutions.'';
(4) by inserting after paragraph (14) (as
redesignated by paragraph (1)) the following:
``(15) Providing education, counseling services, or
financial information designed to improve the financial
literacy and economic literacy of students or the
students' families, especially with regard to student
indebtedness and student assistance programs under
title IV.''; and
(5) in paragraph (11) (as redesignated by paragraph
(1)), by striking ``distance learning academic
instruction capabilities'' and inserting ``distance
education technologies''.
SEC. 502. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.
(a) Amendments.--Title V (20 U.S.C. 1101 et seq.) is
amended--
(1) by redesignating part B as part C;
(2) by redesignating sections 511 through 518 as
sections 521 through 528, respectively; and
(3) by inserting after section 505 the following:
``PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC
AMERICANS
``SEC. 511. PURPOSES.
``The purposes of this part are--
``(1) to expand postbaccalaureate educational
opportunities for, and improve the academic attainment
of, Hispanic students; and
``(2) to expand the postbaccalaureate academic
offerings and enhance the program quality in the
institutions of higher education that are educating the
majority of Hispanic college students and helping large
numbers of Hispanic and low-income students complete
postsecondary degrees.
``SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY.
``(a) Program Authorized.--Subject to the availability of
funds appropriated to carry out this part, the Secretary shall
award grants, on a competitive basis, to eligible institutions
to enable the eligible institutions to carry out the authorized
activities described in section 513.
``(b) Eligibility.--For the purposes of this part, an
`eligible institution' means an institution of higher education
that--
``(1) is a Hispanic-serving institution (as defined
in section 502); and
``(2) offers a postbaccalaureate certificate or
postbaccalaureate degree granting program.
``SEC. 513. AUTHORIZED ACTIVITIES.
``Grants awarded under this part shall be used for one or
more of the following activities:
``(1) Purchase, rental, or lease of scientific or
laboratory equipment for educational purposes,
including instructional and research purposes.
``(2) Construction, maintenance, renovation, and
improvement of classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.
``(3) Purchase of library books, periodicals,
technical and other scientific journals, microfilm,
microfiche, and other educational materials, including
telecommunications program materials.
``(4) Support for low-income postbaccalaureate
students including outreach, academic support services,
mentoring, scholarships, fellowships, and other
financial assistance to permit the enrollment of such
students in postbaccalaureate certificate and
postbaccalaureate degree granting programs.
``(5) Support of faculty exchanges, faculty
development, faculty research, curriculum development,
and academic instruction.
``(6) Creating or improving facilities for Internet
or other distance education technologies, including
purchase or rental of telecommunications technology
equipment or services.
``(7) Collaboration with other institutions of
higher education to expand postbaccalaureate
certificate and postbaccalaureate degree offerings.
``(8) Other activities proposed in the application
submitted pursuant to section 514 that--
``(A) contribute to carrying out the
purposes of this part; and
``(B) are approved by the Secretary as part
of the review and acceptance of such
application.
``SEC. 514. APPLICATION AND DURATION.
``(a) Application.--Any eligible institution may apply for
a grant under this part by submitting an application to the
Secretary at such time and in such manner as the Secretary may
require. Such application shall demonstrate how the grant funds
will be used to improve postbaccalaureate education
opportunities for Hispanic and low-income students.
``(b) Duration.--Grants under this part shall be awarded
for a period not to exceed five years.
``(c) Limitation.--The Secretary may not award more than
one grant under this part in any fiscal year to any Hispanic-
serving institution.''.
(b) Conforming Amendments.--Title V (20 U.S.C. 1101 et
seq.) is amended--
(1) in section 502--
(A) in subsection (a)(2)(A)(ii), by
striking ``section 512(b)'' and inserting
``section 522(b)''; and
(B) in subsection (b)(2), by striking
``section 512(a)'' and inserting ``section
522(a)'';
(2) in section 521(c)(6) (as redesignated by
subsection (a)(2)), by striking ``section 516'' and
inserting ``section 526''; and
(3) in section 526 (as redesignated by subsection
(a)(2)), by striking ``section 518'' and inserting
``section 528''.
SEC. 503. APPLICATIONS.
Section 521(b)(1)(A) (as redesignated by section 502(a)(2))
(20 U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection
(b)'' and inserting ``subsection (c)''.
SEC. 504. COOPERATIVE ARRANGEMENTS.
Section 524(a) (as redesignated by section 502(a)(2)) (20
U.S.C. 1103c(a)) is amended by striking ``section 503'' and
inserting ``sections 503 and 513''.
SEC. 505. AUTHORIZATION OF APPROPRIATIONS.
Section 528(a) (as redesignated by section 502(a)(2)) (20
U.S.C. 1103g(a)) is amended to read as follows:
``(a) Authorizations.--
``(1) Parts a and c.--There are authorized to be
appropriated to carry out parts A and C $175,000,000
for fiscal year 2009 and such sums as may be necessary
for each of the five succeeding fiscal years.
``(2) Part b.--There are authorized to be
appropriated to carry out part B $100,000,000 for
fiscal year 2009 and such sums as may be necessary for
each of the five succeeding fiscal years.''.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
SEC. 601. FINDINGS; PURPOSES; CONSULTATION; SURVEY.
Section 601 (20 U.S.C. 1121) is amended--
(1) in the section heading, by striking ``AND
PURPOSES'' and inserting ``; PURPOSES; CONSULTATION;
SURVEY'';
(2) in subsection (a)(3), by striking ``post-Cold
War'';
(3) in subsection (b)(1)(D), by inserting ``,
including through linkages with overseas institutions''
before the semicolon; and
(4) by adding at the end the following:
``(c) Consultation.--
``(1) In general.--The Secretary shall, prior to
requesting applications for funding under this title
during each grant cycle, consult with and receive
recommendations regarding national need for expertise
in foreign languages and world regions from the head
officials of a wide range of Federal agencies.
``(2) Considering recommendations; providing
information.--The Secretary--
``(A) may take into account the
recommendations described in paragraph (1); and
``(B) shall--
``(i) provide information collected
under paragraph (1) when requesting
applications for funding under this
title; and
``(ii) make available to applicants
a list of areas identified as areas of
national need.
``(d) Survey.--The Secretary shall assist grantees in
developing a survey to administer to students who have
completed programs under this title to determine postgraduate
employment, education, or training. All grantees, where
applicable, shall administer such survey once every two years
and report survey results to the Secretary.''.
SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND
PROGRAMS.
Section 602 (20 U.S.C. 1122) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking
subparagraph (A) and inserting the following:
``(A) In general.--The Secretary is
authorized to make grants to institutions of
higher education or consortia of such
institutions for the purpose of establishing,
strengthening, and operating--
``(i) comprehensive foreign
language and area or international
studies centers and programs; and
``(ii) a diverse network of
undergraduate foreign language and area
or international studies centers and
programs.'';
(B) in paragraph (2)--
(i) by striking ``and'' at the end
of subparagraph (G);
(ii) by striking the period at the
end of subparagraph (H) and inserting a
semicolon; and
(iii) by inserting after
subparagraph (H) the following new
subparagraphs:
``(I) supporting instructors of the less
commonly taught languages; and
``(J) projects that support students in the
science, technology, engineering, and
mathematics fields to achieve foreign language
proficiency.''; and
(C) in paragraph (4)--
(i) in subparagraph (C)--
(I) by striking ``Programs
of linkage or outreach'' and
inserting ``Partnerships or
programs of linkage and
outreach''; and
(II) by inserting ``,
including Federal or State
scholarship programs for
students in related areas''
before the period at the end;
(ii) in subparagraph (E)--
(I) by striking ``foreign
area'' and inserting ``area
studies'';
(II) by striking ``of
linkage and outreach''; and
(III) by striking ``(C),
and (D)'' and inserting ``(D),
and (E)'';
(iii) by redesignating
subparagraphs (C) through (E) (as so
amended) as subparagraphs (D) through
(F), respectively; and
(iv) by inserting after
subparagraph (B) the following:
``(C) Programs of linkage or outreach
between or among--
``(i) postsecondary programs or
departments in foreign language, area
studies, or other international fields;
and
``(ii) State educational agencies
or local educational agencies.'';
(2) in subsection (b)--
(A) in the subsection heading, by striking
``Graduate''; and
(B) by striking paragraph (2) and inserting
the following:
``(2) Eligible students.--A student receiving a
stipend described in paragraph (1) shall be engaged--
``(A) in an instructional program with
stated performance goals for functional foreign
language use or in a program developing such
performance goals, in combination with area
studies, international studies, or the
international aspects of a professional studies
program; and
``(B)(i) in the case of an undergraduate
student, in the intermediate or advanced study
of a less commonly taught language; or
``(ii) in the case of a graduate student,
in graduate study in connection with a program
described in subparagraph (A), including--
``(I) predissertation level study;
``(II) preparation for dissertation
research;
``(III) dissertation research
abroad; or
``(IV) dissertation writing.''; and
(3) by striking subsection (d) and inserting the
following:
``(d) Allowances.--
``(1) Graduate level recipients.--A stipend awarded
to a graduate level recipient may include allowances
for dependents and for travel for research and study in
the United States and abroad.
``(2) Undergraduate level recipients.--A stipend
awarded to an undergraduate level recipient may include
an allowance for educational programs in the United
States or educational programs abroad that--
``(A) are closely linked to the overall
goals of the recipient's course of study; and
``(B) have the purpose of promoting foreign
language fluency and knowledge of foreign
cultures.
``(e) Application.--Each institution of higher education or
consortium of such institutions desiring a grant under this
section shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information and
assurances as the Secretary may require. Each such application
shall include--
``(1) an explanation of how the activities funded
by the grant will reflect diverse perspectives and a
wide range of views and generate debate on world
regions and international affairs; and
``(2) a description of how the applicant will
encourage government service in areas of national need,
as identified by the Secretary, as well as in areas of
need in the education, business, and nonprofit
sectors.''.
SEC. 603. LANGUAGE RESOURCE CENTERS.
Section 603(c) (20 U.S.C. 1123(c)) is amended by inserting
``reflect the purposes of this part and'' after ``shall''.
SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE
PROGRAMS.
Section 604 (20 U.S.C. 1124) is amended--
(1) in subsection (a)(1), by striking
``combinations'' each place it appears and inserting
``consortia'';
(2) in subsection (a)(2)--
(A) in subparagraph (B), by amending clause
(ii) to read as follows:
``(ii) pre-service teacher training
and in-service teacher professional
development;'';
(B) by redesignating subparagraphs (I)
through (M) as subparagraphs (J) through (N),
respectively; and
(C) by inserting after subparagraph (H) the
following new subparagraph:
``(I) the provision of grants for
educational programs abroad that--
``(i) are closely linked to the
program's overall goals; and
``(ii) have the purpose of
promoting foreign language fluency and
knowledge of world regions;'';
(3) in subsection (a)(4)(B), by inserting ``that
demonstrates a need for a waiver or reduction'' before
the period at the end;
(4) in subsection (a)(6), by inserting ``reflect
the purposes of this part and'' after ``shall'';
(5) in subsection (a)(7)--
(A) in subparagraph (C), by striking
``and'' after the semicolon;
(B) in subparagraph (D), by striking the
period at the end and inserting a semicolon;
and
(C) by adding at the end the following:
``(E) a description of how the applicant
will provide information to students regarding
federally funded scholarship programs in
related areas;
``(F) an explanation of how the activities
funded by the grant will reflect diverse
perspectives and a wide range of views and
generate debate on world regions and
international affairs, where applicable; and
``(G) a description of how the applicant
will encourage service in areas of national
need, as identified by the Secretary.''; and
(6) in subsection (c)--
(A) by striking ``(c) Funding Support.--The
Secretary'' and inserting the following:
``(c) Funding Support.--
``(1) In general.--The Secretary'';
(B) by striking ``10'' and inserting
``20''; and
(C) by adding at the end the following:
``(2) Grantees.--Of the total amount of grant funds
awarded to a grantee under this section, the grantee
may use not more than ten percent of such funds for the
activity described in subsection (a)(2)(I).''.
SEC. 605. RESEARCH; STUDIES.
Section 605(a) (20 U.S.C. 1125(a)) is amended--
(1) in paragraph (8), by striking ``and'' after the
semicolon;
(2) in paragraph (9), by striking the period and
inserting a semicolon; and
(3) by adding at the end the following:
``(10) evaluation of the extent to which programs
assisted under this title reflect diverse perspectives
and a wide range of views and generate debate on world
regions and international affairs, as described in the
grantee's application;
``(11) the systematic collection, analysis, and
dissemination of data that contribute to achieving the
purposes of this part; and
``(12) support for programs or activities to make
data collected, analyzed, or disseminated under this
section publicly available and easy to understand.''.
SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOREIGN
INFORMATION ACCESS.
Section 606 (20 U.S.C. 1126) is amended--
(1) in subsection (a)--
(A) by striking ``or consortia of such
institutions or libraries'' and inserting ``or
partnerships between such institutions and
other such institutions, libraries, or
nonprofit educational organizations'';
(B) by striking ``new electronic
technologies'' and inserting ``electronic
technologies'';
(C) by inserting ``from foreign sources''
after ``disseminate information'';
(D) by striking ``(a) Authority.-- The
Secretary'' and inserting the following:
``(a) Authority.--
``(1) In general.--The Secretary''; and
(E) by adding at the end the following:
``(2) Grant recipients.--The Secretary may award
grants under this section to carry out the activities
authorized under this section to the following:
``(A) An institution of higher education.
``(B) A public or nonprofit private
library.
``(C) A partnership of an institution of
higher education and one or more of the
following:
``(i) Another institution of higher
education.
``(ii) A library.
``(iii) A nonprofit educational
organization.'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``to
facilitate access to'' and inserting ``to
acquire, facilitate access to,'';
(B) in paragraph (3), by inserting ``or
standards for'' after ``means of'';
(C) in paragraph (6), by striking ``and''
after the semicolon;
(D) in paragraph (7), by striking the
period and inserting a semicolon; and
(E) by adding at the end the following:
``(8) to establish linkages to facilitate carrying
out the activities described in this subsection
between--
``(A) the institutions of higher education,
libraries, and partnerships receiving grants
under this section; and
``(B) institutions of higher education,
nonprofit educational organizations, and
libraries overseas; and
``(9) to carry out other activities that the
Secretary determines are consistent with the purpose of
the grants awarded under this section.''; and
(3) in subsection (c), by striking ``institution or
consortium'' and inserting ``institution of higher
education, library, or partnership''.
SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS.
Section 607 (20 U.S.C. 1127) is amended--
(1) in subsection (a), by striking ``evaluates the
applications for comprehensive and undergraduate
language and area centers and programs.'' and inserting
``evaluates--
``(1) the applications for comprehensive foreign
language and area or international studies centers and
programs; and
``(2) the applications for undergraduate foreign
language and area or international studies centers and
programs.''; and
(2) in subsection (b), by adding at the end the
following: ``In keeping with the purposes of this part,
the Secretary shall take into account the degree to
which activities of centers, programs, and fellowships
at institutions of higher education address national
needs, and generate information for and disseminate
information to the public. The Secretary shall also
consider an applicant's record of placing students into
postgraduate employment, education, or training in
areas of national need and an applicant's stated
efforts to increase the number of such students that go
into such placements.''.
SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.
Section 609 (20 U.S.C. 1128a) is amended by adding at the
end the following:
``(e) Application.--Each center desiring to receive a grant
or contract under this section shall submit an application to
the Secretary at such time, in such manner, and accompanied by
such information and assurances as the Secretary may
require.''.
SEC. 609. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL AND FOREIGN
LANGUAGE STUDIES.
Section 610 (20 U.S.C. 1128b) is amended--
(1) by striking ``$80,000,000'' and inserting
``such sums as may be necessary'';
(2) by striking ``1999'' and inserting ``2009'';
and
(3) by striking ``4'' and inserting ``five''.
SEC. 610. CONFORMING AMENDMENTS.
(a) Sections 603(a), 604(a)(5), and 612 (20 U.S.C. 1123(a),
1124(a)(5), 1130-1) are each amended by striking
``combinations'' each place it appears and inserting
``consortia''.
(b) Section 612 (20 U.S.C. 1130-1) is further amended by
striking ``combination'' each place it appears and inserting
``consortium''.
SEC. 611. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
(a) Centers for International Business Education.--Section
612 (20 U.S.C. 1130-1) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1) and (2)
as paragraphs (2) and (3), respectively; and
(B) by inserting before paragraph (2) (as
redesignated by subparagraph (A)) the
following:
``(1) Purpose.--The purpose of this section is to
coordinate the programs of the Federal Government in
the areas of research, education, and training in
international business and trade competitiveness.'';
(2) in subsection (c)(2)--
(A) in subparagraph (E), by inserting
``(including those that are eligible to receive
assistance under part A or B of title III or
under title V)'' after ``other institutions of
higher education'';
(B) by striking ``and'' at the end of
subparagraph (E);
(C) by redesignating subparagraph (F) as
subparagraph (G); and
(D) by inserting the following new
subparagraph after subparagraph (E):
``(F) programs encouraging the advancement
and understanding of technology-related
disciplines, including manufacturing software
systems and technology management; and''; and
(3) in subsection (f)(3), by inserting ``, and that
diverse perspectives will be made available to students
in programs under this section'' before the semicolon.
(b) Education and Training Programs.--Section 613(c) (20
U.S.C. 1130a(c)) is amended by adding at the end the following:
``Each such application shall include an assurance that, where
applicable, the activities funded by the grant will reflect
diverse perspectives and a wide range of views on world regions
and international affairs.''.
(c) Authorization of Appropriations.--Section 614 (20
U.S.C. 1130b) is amended--
(1) in subsection (a)--
(A) by striking ``$11,000,000'' and
inserting ``such sums as may be necessary'';
(B) by striking ``1999'' and inserting
``2009''; and
(C) by striking ``4'' and inserting
``five''; and
(2) in subsection (b)--
(A) by striking ``$7,000,000'' and
inserting ``such sums as may be necessary'';
(B) by striking ``1999'' and inserting
``2009''; and
(C) by striking ``4'' and inserting
``five''.
SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT PROGRAM.
Section 621 (20 U.S.C. 1131) is amended--
(1) in subsection (a), by striking the second
sentence and inserting the following: ``The Institute
shall conduct a program to enhance the international
competitiveness of the United States by increasing the
participation of underrepresented populations in the
international service, including private international
voluntary organizations and the foreign service of the
United States.'';
(2) in subsection (b)(1)--
(A) by striking subparagraph (B);
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (A) the
following:
``(B) A tribally controlled college or
university or Alaska Native or Native Hawaiian-
serving institution eligible for assistance
under part A or B of title III, or an
institution eligible for assistance under title
V.
``(C) An institution of higher education
that serves substantial numbers of
underrepresented minority students.''; and
(3) in subsection (c)--
(A) by striking ``(c) Application.--Each''
and inserting the following:
``(c) Application.--
``(1) In general.--Each''; and
(B) by adding at the end the following:
``(2) Content of application.--Each application
submitted under paragraph (1) shall include a
description of how the activities funded by the grant
will reflect diverse perspectives and a wide range of
views and generate debate on world regions and
international affairs, where applicable.''.
SEC. 613. INSTITUTIONAL DEVELOPMENT.
Section 622 (20 U.S.C. 1131-1) is amended--
(1) in subsection (a)--
(A) by striking ``Tribally Controlled
Colleges or Universities'' and inserting
``tribally controlled colleges or
universities''; and
(B) by striking ``international affairs
programs.'' and inserting ``international
affairs, international business, and foreign
language study programs, including the teaching
of foreign languages, at such colleges,
universities, and institutions, respectively,
which may include collaboration with
institutions of higher education that receive
funding under this title''; and
(2) in subsection (c)--
(A) by striking paragraphs (1) and (3);
(B) by redesignating paragraphs (2) and (4)
as paragraphs (1) and (2), respectively; and
(C) in paragraph (1) (as redesignated by
subparagraph (B)), by inserting ``and'' after
the semicolon.
SEC. 614. STUDY ABROAD PROGRAM.
Section 623(a) (20 U.S.C. 1131a(a)) is amended--
(1) by striking ``as defined in section 322 of this
Act''; and
(2) by striking ``tribally controlled Indian
community colleges as defined in the Tribally
Controlled Community College Assistance Act of 1978''
and inserting ``tribally controlled colleges or
universities, Alaska Native-serving, Native Hawaiian-
serving, and Hispanic-serving institutions''.
SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.
Section 624 (20 U.S.C. 1131b) is amended--
(1) by striking ``MASTERS'' in the heading of such
section and inserting ``ADVANCED'';
(2) by striking ``a masters degree in international
relations'' and inserting ``an advanced degree in
international relations, international affairs,
international economics, or other academic areas
related to the Institute fellow's career objectives'';
and
(3) by striking ``The masters degree program
designed by the consortia'' and inserting ``The
advanced degree study program shall be designed by the
consortia, consistent with the fellow's career
objectives, and''.
SEC. 616. INTERNSHIPS.
Section 625 (20 U.S.C. 1131c) is amended--
(1) in subsection (a)--
(A) by striking ``as defined in section 322
of this Act'';
(B) by striking ``tribally controlled
Indian community colleges as defined in the
Tribally Controlled Community College
Assistance Act of 1978'' and inserting
``tribally controlled colleges or universities,
Alaska Native-serving, Native Hawaiian-serving,
and Hispanic-serving institutions'';
(C) by striking ``an international'' and
inserting ``international,''; and
(D) by striking ``the United States
Information Agency'' and inserting ``the
Department of State'';
(2) in subsection (b)--
(A) by inserting ``and'' after the
semicolon at the end of paragraph (2);
(B) by striking ``; and'' at the end of
paragraph (3) and inserting a period; and
(C) by striking paragraph (4); and
(3) in subsection (c)(1)--
(A) in subparagraph (E), by inserting
``and'' after the semicolon;
(B) in subparagraph (F), by striking ``;
and'' and inserting a period; and
(C) by striking subparagraph (G).
SEC. 617. FINANCIAL ASSISTANCE.
Part C of title VI (20 U.S.C. 1131 et seq.) is further
amended--
(1) by redesignating sections 626, 627, and 628 as
sections 627, 628, and 629, respectively; and
(2) by inserting after section 625 the following:
``SEC. 626. FINANCIAL ASSISTANCE.
``(a) Authority.--The Institute may provide financial
assistance, in the form of summer stipends described in
subsection (b) and Ralph Bunche scholarship assistance
described in subsection (c), to low-income students to
facilitate the participation of the students in the Institute's
programs under this part.
``(b) Summer Stipends.--
``(1) Requirements.--A student receiving a summer
stipend under this section shall use such stipend to
defray the student's cost of participation in a summer
institute program funded under this part, including the
costs of travel, living, and educational expenses
necessary for the student's participation in such
program.
``(2) Amount.--A summer stipend awarded to a
student under this section shall not exceed $3,000 per
summer.
``(c) Ralph Bunche Scholarship.--
``(1) Requirements.--A student receiving a Ralph
Bunche scholarship under this section--
``(A) shall be a full-time student at an
institution of higher education who is accepted
into a program funded under this part; and
``(B) shall use such scholarship to pay
costs related to the cost of attendance, as
defined in section 472, at the institution of
higher education in which the student is
enrolled.
``(2) Amount and duration.--A Ralph Bunche
scholarship awarded to a student under this section
shall not exceed $5,000 per academic year.''.
SEC. 618. REPORT.
Section 627 (as redesignated by section 617(1)) (20 U.S.C.
1131d) is amended by striking ``annually prepare a report'' and
inserting ``prepare a report once every two years''.
SEC. 619. GIFTS AND DONATIONS.
Section 628 (as redesignated by section 617(1)) (20 U.S.C.
1131e) is amended by striking ``annual report described in
section 626'' and inserting ``report described in section
627''.
SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE FOR
INTERNATIONAL PUBLIC POLICY.
Section 629 (as redesignated by section 617(1)) (20 U.S.C.
1131f) is amended--
(1) by striking ``$10,000,000'' and inserting
``such sums as may be necessary'';
(2) by striking ``1999'' and inserting ``2009'';
and
(3) by striking ``4 succeeding'' and inserting
``five succeeding''.
SEC. 621. DEFINITIONS.
Section 631 (20 U.S.C. 1132) is amended--
(1) by striking paragraph (7);
(2) by redesignating paragraphs (2), (3), (4), (5),
(6), (8), and (9), as paragraphs (7), (4), (8), (2),
(10), (6), and (3), respectively;
(3) in paragraph (2), as redesignated by paragraph
(2), by striking ``comprehensive language and area
center'' and inserting ``comprehensive foreign language
and area or international studies center'';
(4) in paragraph (3), as redesignated by paragraph
(2), by striking the period at the end and inserting a
semicolon;
(5) by inserting after paragraph (4), as
redesignated by paragraph (2), the following:
``(5) the term `historically Black college and
university' has the meaning given the term `part B
institution' in section 322;'';
(6) in paragraph (6), as redesignated by paragraph
(2), by striking ``and'' after the semicolon;
(7) by inserting after paragraph (8), as
redesignated by paragraph (2), the following:
``(9) the term `tribally controlled college or
university' has the meaning given the term in section 2
of the Tribally Controlled Colleges and Universities
Assistance Act of 1978 (25 U.S.C. 1801); and''; and
(8) in paragraph (10), as redesignated by paragraph
(2)--
(A) by striking ``undergraduate language
and area center'' and inserting ``undergraduate
foreign language and area or international
studies center''; and
(B) by striking the semicolon and inserting
a period.
SEC. 622. NEW PROVISIONS.
Part D of title VI (20 U.S.C. 1132) is amended by adding at
the end the following:
``SEC. 632. SPECIAL RULE.
``The Secretary may waive or reduce the non-Federal share
required under this title for institutions that--
``(1) are eligible to receive assistance under part
A or B of title III or under title V; and
``(2) have submitted a grant application under this
section that demonstrates a need for a waiver or
reduction, as determined by the Secretary.''.
``SEC. 633. RULE OF CONSTRUCTION.
``Nothing in this title shall be construed to authorize the
Secretary to mandate, direct, or control an institution of
higher education's specific instructional content, curriculum,
or program of instruction.
``SEC. 634. ASSESSMENT.
``The Secretary is authorized to assess and ensure
compliance with all the conditions and terms of grants provided
under this title.
``SEC. 635. EVALUATION, OUTREACH, AND INFORMATION.
``The Secretary may use not more than one percent of the
funds made available under this title to carry out program
evaluation, national outreach, and information dissemination
activities relating to the programs authorized under this
title.
``SEC. 636. REPORT.
``The Secretary shall, in consultation and collaboration
with the Secretary of State, the Secretary of Defense, and the
heads of other relevant Federal agencies, submit a report once
every two years that identifies areas of national need in
foreign language, area, and international studies as such
studies relate to government, education, business, and
nonprofit needs, and a plan to address those needs. The report
shall be provided to the authorizing committees and made
available to the public.
``SEC. 637. SCIENCE AND TECHNOLOGY ADVANCED FOREIGN LANGUAGE EDUCATION
GRANT PROGRAM.
``(a) Purpose.--It is the purpose of this section to
support programs in institutions of higher education that--
``(1) encourage students to develop--
``(A) an understanding of science and
technology; and
``(B) foreign language proficiency;
``(2) foster future international scientific
collaboration;
``(3) provide for professional development
opportunities for elementary school and secondary
school teachers of critical foreign languages to
increase the number of highly qualified teachers in
critical foreign languages; and
``(4) increase the number of United States students
who achieve the highest level of proficiency in foreign
languages critical to the security and competitiveness
of the Nation.
``(b) Development.--The Secretary shall develop a program
for the awarding of grants to institutions of higher education
that develop innovative programs for the teaching of foreign
languages, which may include the preparation of teachers to
teach foreign languages.
``(c) Regulations and Requirements.--The Secretary shall
promulgate regulations for the awarding of grants under
subsection (b). Such regulations may require institutions of
higher education to use grant funds for, among other things--
``(1) the development of an on-campus cultural
awareness program by which students attend classes
taught in a foreign language and study the science and
technology developments and practices in a non-English
speaking country;
``(2) immersion programs where students take
science or technology related course work in a non-
English speaking country;
``(3) other programs, such as summer workshops,
that emphasize the intense study of a foreign language
and science technology;
``(4) if applicable, recruiting highly qualified
teachers in critical foreign languages, and providing
professional development activities for such teachers
at the elementary school and secondary school levels;
and
``(5) providing innovative opportunities for
students that will allow for critical language
learning, such as immersion environments, intensive
study opportunities, internships, and distance
learning.
``(d) Grant Distribution.--In distributing grants to
institutions of higher education under this section, the
Secretary shall give priority to--
``(1) institutions that have programs focusing on
curricula that combine the study of foreign languages
and the study of science and technology and produce
graduates who have both skills; and
``(2) institutions teaching critical foreign
languages.
``(e) Report on Best Practices.--Not later than one year
after the date of enactment of this section, the Secretary
shall--
``(1) conduct a study to identify the best
practices to strengthen the role of institutions of
higher education that receive funding under title III
or title V in increasing the critical foreign language
education efforts in the United States; and
``(2) submit a report on the results of such study
to the authorizing committees.
``(f) Appropriations Authorized.--There are authorized to
be appropriated to carry out this section, such sums as may be
necessary for fiscal year 2009 and for each subsequent fiscal
year.
``SEC. 638. REPORTING BY INSTITUTIONS.
``(a) Applicability.--The data requirement in subsection
(b) shall apply to an institution of higher education that
receives funds for a center or program under this title if--
``(1) the amount of the contribution (including
cash and the fair market value of any property)
received from any foreign government or from a foreign
private sector corporation or foundation during any
fiscal year exceeds $250,000 in the aggregate; and
``(2) the aggregate contribution, or a significant
part of the aggregate contribution, is to be used by a
center or program receiving funds under this title.
``(b) Data Required.--The Secretary shall require an
institution of higher education referred to in subsection (a)
to report information listed in subsection (a) to the Secretary
consistent with the requirements of section 117.''.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
SEC. 701. PURPOSE.
Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended
by inserting ``, including those areas critical to United
States national and homeland security needs, such as science,
technology, engineering, and mathematics'' before the
semicolon.
SEC. 702. JACOB K. JAVITS FELLOWSHIP PROGRAM.
(a) Interruptions of Study.--Section 701(c) (20 U.S.C.
1134(c)) is amended by adding at the end the following new
sentence: ``In the case of other exceptional circumstances,
such as active duty military service or personal or family
member illness, the institution of higher education may also
permit the fellowship recipient to interrupt periods of study
for the duration of the tour of duty (in the case of military
service) or for not more than 12 months (in any other case),
but without payment of the stipend.''.
(b) Allocation of Fellowships.--Section 702(a)(1) (20
U.S.C. 1134a(a)(1)) is amended to read as follows:
``(1) Appointment.--
``(A) In general.--The Secretary shall
appoint a Jacob K. Javits Fellows Program
Fellowship Board (referred to in this subpart
as the `Board') consisting of 9 individuals
representative of both public and private
institutions of higher education who are
especially qualified to serve on the Board.
``(B) Qualifications.--In making
appointments under subparagraph (A), the
Secretary shall--
``(i) give due consideration to the
appointment of individuals who are
highly respected in the academic
community;
``(ii) appoint members who
represent the various geographic
regions of the United States;
``(iii) ensure that individuals
appointed to the Board are broadly
representative of a range of
disciplines in graduate education in
arts, humanities, and social sciences;
and
``(iv) ensure that such individuals
include representatives from
institutions that are eligible for one
or more of the grants under title III
or V.''.
(c) Stipends.--
(1) Section 703 (20 U.S.C. 1134b) is amended--
(A) in subsection (a)--
(i) by striking ``1999-2000'' and
inserting ``2009-2010''; and
(ii) by striking ``Foundation
graduate fellowships'' and inserting
``Foundation Graduate Research
Fellowship Program for such academic
year''; and
(B) in subsection (b), by striking
paragraph (1)(A) and inserting the following:
``(1) In general.--(A) The Secretary shall (in
addition to stipends paid to individuals under this
subpart) pay to the institution of higher education,
for each individual awarded a fellowship under this
subpart at such institution, an institutional
allowance. Except as provided in subparagraph (B), such
allowance shall be, for academic year 2009-2010 and
succeeding academic years, the same amount as the
institutional payment made for academic year 2008-2009,
adjusted for academic year 2009-2010 and annually
thereafter in accordance with inflation as determined
by the Department of Labor's Consumer Price Index for
the previous calendar year.''.
(d) Authorization of Appropriations.--Section 705 (20
U.S.C. 1134d) is amended by striking ``fiscal year 1999'' and
all that follows through the period at the end and inserting
``fiscal year 2009 and each of the five succeeding fiscal years
to carry out this subpart.''.
SEC. 703. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.
(a) Institutional Eligibility.--Section 712 (20 U.S.C.
1135a) is amended by striking subsection (b) and inserting the
following:
``(b) Designation of Areas of National Need.--After
consultation with appropriate Federal and nonprofit agencies
and organizations, including the National Science Foundation,
the Department of Defense, the Department of Homeland Security,
the National Academy of Sciences, and the Bureau of Labor
Statistics, the Secretary shall designate areas of national
need. In making such designations, the Secretary shall take
into consideration--
``(1) the extent to which the interest in the area
is compelling;
``(2) the extent to which other Federal programs
support postbaccalaureate study in the area concerned;
``(3) an assessment of how the program may achieve
the most significant impact with available resources;
and
``(4) an assessment of current (as of the time of
the designation) and future professional workforce
needs of the United States.''.
(b) Awards to Graduate Students.--Section 714(b) (20 U.S.C.
1135c(b)) is amended--
(1) by striking ``1999-2000'' and inserting ``2009-
2010''; and
(2) by striking ``Foundation graduate fellowships''
and inserting ``Foundation Graduate Research Fellowship
Program for such academic year''.
(c) Additional Assistance.--Section 715(a)(1) (20 U.S.C.
1135d(a)(1)) is amended--
(1) by striking ``1999-2000'' and inserting ``2009-
2010''; and
(2) by striking ``1998-1999'' and inserting ``2008-
2009''.
(d) Authorization of Appropriations.--Section 716 (20
U.S.C. 1135e) is amended by striking ``fiscal year 1999'' and
all that follows through the period at the end and inserting
``fiscal year 2009 and each of the five succeeding fiscal years
to carry out this subpart.''.
(e) Technical Amendments.--Subpart 2 of part A of title VII
(as amended by this section) (20 U.S.C. 113 et seq.) is further
amended--
(1) in section 711(a)(1) (20 U.S.C. 1135(a)(1)), by
inserting ``, including a master's or doctoral
degree,'' after ``leading to a graduate degree'';
(2) in section 712(a) (20 U.S.C. 1135a(a)), by
inserting ``, including a master's or doctoral
degree,'' after ``leading to a graduate degree'';
(3) in section 713(b)(5)(C) (20 U.S.C.
1135b(b)(5)(C)), by inserting ``at the institution''
before the semicolon; and
(4) in section 714(c) (20 U.S.C. 1135c(c))--
(A) by striking ``716(a)'' and inserting
``715(a)''; and
(B) by striking ``714(b)(2)'' and inserting
``713(b)(2)''.
SEC. 704. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.
(a) Program Authority.--
(1) Section 721(a) (20 U.S.C. 1136(a)) is amended--
(A) by inserting ``secondary school and''
after ``disadvantaged''; and
(B) by inserting ``and admission to law
practice'' before the period at the end.
(b) Eligibility.--Section 721(b) (20 U.S.C. 1136(b)) is
amended in the matter preceding paragraph (1), by inserting
``secondary school student or'' before ``college student''.
(c) Contract and Grant Purposes.--Section 721(c) (20
U.S.C. 1136(c)) is amended--
(1) in paragraph (1), by inserting ``secondary
school and'' before ``college students'';
(2) by striking paragraph (2) and inserting the
following:
``(2) to prepare such students for successful
completion of a baccalaureate degree and for study at
accredited law schools, and to assist them with the
development of analytical skills, writing skills, and
study methods to enhance the students' success in, and
promote the students' admission to and completion of,
law school;'';
(3) in paragraph (4), by striking ``and'' after the
semicolon; and
(4) by striking paragraph (5) and inserting the
following:
``(5) to motivate and prepare such students--
``(A) with respect to law school studies
and practice in low-income communities; and
``(B) to provide legal services to low-
income individuals and families; and
``(6) to award Thurgood Marshall Fellowships to
eligible law school students--
``(A) who participated in summer institutes
under subsection (d)(6) and who are enrolled in
an accredited law school; or
``(B) who have successfully completed a
comparable summer institute program that is
certified by the Council on Legal Education
Opportunity.''.
(d) Services Provided.--Section 721(d) (20 U.S.C. 1136(d))
is amended--
(1) in the matter preceding paragraph (1), by
inserting ``pre-college programs, undergraduate''
before ``pre-law'';
(2) in paragraph (1)--
(A) in subparagraph (B), by inserting ``law
school'' before ``graduation''; and
(B) by striking subparagraph (D) and
inserting the following:
``(D) pre-college and undergraduate
preparatory courses in analytical and writing
skills, study methods, and course selection;'';
(3) by redesignating paragraphs (2) through (6) as
paragraphs (3) through (7), respectively;
(4) by inserting after paragraph (1) the following:
``(2) summer academic programs for secondary school
students who have expressed interest in a career in the
law;''; and
(5) in paragraph (7) (as redesignated by paragraph
(3)), by inserting ``and Associates'' after ``Thurgood
Marshall Fellows''.
(e) Duration.--Section 721(e)(1) (20 U.S.C. 1136(e)(1)) is
amended by inserting ``, including before and during
undergraduate study'' before the semicolon.
(f) Subcontracts and Subgrants.--Section 721(f) (20 U.S.C.
1136(f)) is amended--
(1) by inserting ``national and State bar
associations,'' after ``agencies and organizations,'';
and
(2) by striking ``and organizations.'' and
inserting ``organizations, and associations.''.
(g) Stipends.--Section 721(g) (20 U.S.C. 1136(g)) is
amended to read as follows:
``(g) Fellowships and Stipends.--The Secretary shall
annually establish the maximum fellowship to be awarded, and
the maximum stipend to be paid (including allowances for
participant travel and for the travel of the dependents of the
participant), to Thurgood Marshall Fellows or Associates for
the period of participation in summer institutes, midyear
seminars, and bar preparation seminars. A Thurgood Marshall
Fellow or Associate may be eligible for such a fellowship or
stipend only if the Fellow or Associate maintains satisfactory
academic progress toward the Juris Doctor or Bachelor of Laws
degree, as determined by the respective institutions (except
with respect to a law school graduate enrolled in a bar
preparation course).''.
(h) Authorization of Appropriations.--Section 721(h) (20
U.S.C. 1136(h)) is amended by striking ``fiscal year 1999'' and
all that follows through the period at the end and