[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3180 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 3180

               To amend the Higher Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 2003

 Mr. George Miller of California (for himself, Ms. Pelosi, Mr. Kildee, 
  Mr. Owens, Mr. Payne, Mr. Andrews, Ms. Woolsey, Mr. Hinojosa, Mrs. 
    McCarthy of New York, Mr. Tierney, Mr. Kucinich, Mr. Holt, Ms. 
   McCollum, Mr. Davis of Illinois, Mr. Case, Mr. Grijalva, Mr. Van 
  Hollen, Mr. Ryan of Ohio, Mr. Bishop of New York, Ms. Majette, Mr. 
 Abercrombie, Mr. Scott of Virginia, Mrs. Jones of Ohio, Mr. Serrano, 
  Mr. Frank of Massachusetts, Mr. Nadler, Mr. Crowley, Ms. Millender-
McDonald, Mr. Brown of Ohio, Ms. Baldwin, Ms. DeLauro, Ms. Watson, Mr. 
Wexler, Mr. Ortiz, Mr. Hoeffel, Mr. Alexander, Mr. Israel, Mr. Filner, 
Ms. Solis, Mr. Markey, Ms. Norton, Mr. Faleomavaega, Mr. Cummings, Ms. 
 Loretta Sanchez of California, Mr. Honda, Ms. Carson of Indiana, Ms. 
 Jackson-Lee of Texas, Mr. Ruppersberger, Mr. Gutierrez, Ms. Linda T. 
Sanchez of California, and Mr. Emanuel) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
               To amend the Higher Education Act of 1965.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``College 
Opportunity for All Act''
    (b) 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.).
    (c) Table of Contents.--

Sec. 1. Short title; reference; table of contents.
Sec. 2. Student access through increased student aid.
Sec. 3. Enhancing support and educational opportunities for students at 
                            minority serving institutions.
Sec. 4. Expanding graduate opportunities at Hispanic-serving 
                            institutions.
Sec. 5. Strengthening outreach programs to disadvantaged students.
Sec. 6. Support for working students.
Sec. 7. Public service scholarships.
Sec. 8. Providing relief to borrowers.
Sec. 9. Simplifying the student aid process.
Sec. 10. Expansion of voluntary flexible agreements with guaranty 
                            agencies.
Sec. 11. Allowance for State and other taxes.

SEC. 2. STUDENT ACCESS THROUGH INCREASED STUDENT AID.

    (a) Pell Grants.--
            (1) Maximum grants.--Section 401(b)(2)(A) (20 U.S.C. 
        1070a(b)(2)(A)) is amended by striking clauses (i) through (v) 
        and inserting the following:
            ``(i) $5,800 for academic year 2004-2005;
            ``(ii) $6,900 for academic year 2005-2006;
            ``(iii) $8,000 for academic year 2006-2007;
            ``(iv) $9,100 for academic year 2007-2008;
            ``(v) $10,200 for academic year 2008-2009; and
            ``(vi) $11,600 for academic year 2009-2010,''.
            (2) Year-round pell grants.--Section 401 is further amended 
        by adding at the end the following new subsection:
    ``(k) Year-Round Pell Grants.--
            ``(1) Pilot program established.--The Secretary shall 
        establish in accordance with this subsection a year-round Pell 
        grant pilot program. Any institution of higher education that 
        desires to participate in the program under this subsection 
        shall submit an application the Secretary at such time and 
        containing or accompanied by such information and assurances as 
        the Secretary may require. The Secretary may select not more 
        than 200 institutions of higher education for participation in 
        the program.
            ``(2) Program elements.--With respect to students enrolled 
        in institutions participating in the program under this 
        subsection, the Secretary is authorized--
                    ``(A) to award such students two Pell grants in one 
                calendar year to permit such students to accelerating 
                progress towards their degree or certificate objectives 
                by enrolling in academic programs for 12 rather than 9 
                months of the year at participating institutions; and
                    ``(B) to award such two Pell grants to such 
                students in a total amount up to 133 percent of the 
                maximum Pell under subsection (b)(2)(A) that is 
                applicable for the academic year.
            ``(3) Limitation.--The Secretary shall limit the awarding 
        of additional Pell grants under this subsection in a single 
        calendar year to students who attend bachelor's degree granting 
        institutions with the following characteristics:
                    ``(A) the graduation rate for the institution of 
                higher education reported by the Integrated 
                Postsecondary Education Data System for the preceding 
                five academic years is at least 50 percent; and
                    ``(B) the average time of enrollment required to 
                complete a degree at the institution among students who 
                enter as freshman and earn bachelor's degrees is 14 or 
                fewer quarters, or 9 or fewer semesters or the 
                equivalent.
            ``(4) Termination; evaluation.--The authority of the 
        Secretary under this subsection shall cease to be effective on 
        October 1, 2009. Not later than October 1, 2008, the Secretary 
        shall conduct an evaluation of the program under this 
        subsection and submit to the Congress a report on the results 
        of such evaluation.''.
            (3) Elimination of tuition sensitivity provision.--Section 
        401(b) is further amended--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraphs (4) though (8) as 
                paragraphs (3) through (7), respectively.
    (b) Federal TRIO Program Authorizations.--Section 402A(f) (20 
U.S.C. 1070a-11(f)) is amended by striking ``$700,000,000 for fiscal 
year 1999'' and inserting ``$1,250,000,000 for fiscal year 2004''.
    (c) GEARUP.--Section 404H (20 U.S.C. 1070a-28) is amended to read 
as follows:

``SEC. 404H. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
chapter--
            ``(1) $500,000,000 for fiscal year 2004; and
            ``(2) such sums as may be necessary for each of the 4 
        succeeding fiscal years.''.
    (d) Federal Supplemental Educational Opportunity Grants.--
            (1) Authorization.--Section 413A(b)(1) (20 U.S.C. 
        1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal 
        year 1999'' and inserting ``$1,000,000,000 for fiscal year 
        2004''.
            (2) Maximum grant.--Section 413B(a)(2) (20 U.S.C. 1070b-
        1(a)(2)) is amended by striking ``$4,000'' and inserting 
        ``$8,000''.
    (e) College Work-Study.--Section 441(b) (20 U.S.C. 2751(b)) is 
amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part--
            ``(1) $1,500,000,000 for fiscal year 2004; and
            ``(2) such sums as may be necessary for each of the 4 
        succeeding fiscal years.''.
    (f) LEAP.--
            (1) Authorization of appropriations.--Section 415A(b)(1) 
        (20 U.S.C. 1070c(b)(1)) is amended by striking ``$105,000,000 
        for fiscal year 1999'' and inserting ``$200,000,000 for fiscal 
        year 2004''.
            (2) Maximum grant.--Section 415C(b)(2) (20 U.S.C. 1070c-
        2(b)(2)) is amended by striking ``$5,000'' and inserting 
        ``$12,500''.

SEC. 3. ENHANCING SUPPORT AND EDUCATIONAL OPPORTUNITIES FOR STUDENTS AT 
              MINORITY SERVING INSTITUTIONS.

    (a) Title II Amendments: Centers of Excellence.--Title II is 
amended by inserting after section 224 (20 U.S.C. 1044) the following 
new part:

                    ``PART C--CENTERS OF EXCELLENCE

``SEC. 231. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are--
            ``(1) to help recruit and prepare teachers, including 
        minority teachers, to meet the national demand for a highly 
        qualified teacher in every classroom; and
            ``(2) to increase opportunities for Americans of all 
        educational, ethnic, class, and geographic backgrounds to 
        become highly qualified teachers.
    ``(b) Definitions.--As used in this part:
            ``(1) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) an institution of higher education that has a 
                teacher preparation program that meets the requirements 
                of section 203(b)(2) 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)); or
                            ``(v) a Native Hawaiian-serving institution 
                        (as defined in section 317(b));
                    ``(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 232 is located at an 
                institution described in subparagraph (A).
            ``(2) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            ``(3) 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 (20 U.S.C. 6368).
            ``(4) Scientifically based research.--The term 
        `scientifically based research' has the meaning given such term 
        in section 9101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7801).

``SEC. 232. 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 
part 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 
        based research, and are able to use advanced technology 
        effectively in the classroom, including use for instructional 
        techniques to improve student academic achievement, by--
                    ``(A) retraining faculty; and
                    ``(B) designing (or redesigning) teacher 
                preparation programs that--
                            ``(i) prepare teachers to close student 
                        achievement gaps, are based on rigorous 
                        academic content, scientifically based research 
                        (including scientifically based reading 
                        research), and challenging State student 
                        academic content 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; or
                    ``(B) induction and support for teachers and 
                principals during their first 3 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.
            ``(5) Disseminating information on effective practices for 
        teacher preparation and successful teacher certification and 
        licensure assessment preparation strategies.
            ``(6) Activities authorized under sections 202, 203, and 
        204.
    ``(c) Application.--Any eligible institution desiring a grant under 
this section shall submit an application to the Secretary at such a 
time, in such a manner, and accompanied by such information the 
Secretary may require.
    ``(d) Minimum Grant Amount.--The minimum amount of each grant under 
this part shall be $1,500,000.
    ``(e) Limitation on Administrative Expenses.--An eligible 
institution that receives a grant under this part may not use more than 
2 percent of the grant funds for purposes of administering the grant.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out this part.

``SEC. 233. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$20,000,000 for fiscal year 2004 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.
    (b) Title III Amendments.--
            (1) Authorizations of appropriations.--Section 399(a) (20 
        U.S.C. 1068h(a)(2)) is amended--
                    (A) by striking paragraphs (1), (2), and (3) and 
                inserting the following:
            ``(1) Part a.--(A) There are authorized to be appropriated 
        to carry out part A (other than section 316 and 317)--
                    ``(i) $170,000,000 for fiscal year 2004; and
                    ``(ii) such sums as may be necessary for each of 
                the 4 succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 316--
                    ``(i) $45,000,000 for fiscal year 2004; and
                    ``(ii) such sums as may be necessary for each of 
                the 4 succeeding fiscal years.
            ``(C) There are authorized to be appropriated to carry out 
        section 317--
                    ``(i) $20,000,000 for fiscal year 2004; and
                    ``(ii) such sums as may be necessary for each of 
                the 4 succeeding fiscal years.
            ``(2) Part b.--(A) There are authorized to be appropriated 
        to carry out part B (other than section 326)--
                    ``(i) $270,000,000 for fiscal year 2004; and
                    ``(ii) such sums as may be necessary for each of 
                the 4 succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 326--
                    ``(i) $90,000,000 for fiscal year 2004; and
                    ``(ii) such sums as may be necessary for each of 
                the 4 succeeding fiscal years.
            ``(3) Part c.--There are authorized to be appropriated to 
        carry out part C--
                    ``(A) $30,000,000 for fiscal year 2004; and
                    ``(B) such sums as may be necessary for each of the 
                4 succeeding fiscal years.''; and
                    (B) by striking paragraph (5) and inserting the 
                following:
            ``(5) Part e.--There are authorized to be appropriated to 
        carry out part E--
                    ``(A) $40,000,000 for fiscal year 2004; and
                    ``(B) such sums as may be necessary for each of the 
                4 succeeding fiscal years.''.
            (2) Authorized uses of funds for title iii.--Section 323(a) 
        (20 U.S.C. 1062(a)) is amended--
                    (A) by redesignating paragraph (12) as paragraph 
                (13); and
                    (B) by inserting after paragraph (11) the following 
                new paragraph:
            ``(12) Technical assistance services, including financial 
        management, enrollment management, strategic planning, 
        replication of best practices, and other needed services, 
        except that the amount expended under this paragraph shall not 
        exceed 2 percent of the institution's annual award under this 
        part.''.
    (c) Title V Authorization of Appropriations.--Subsection (a) of 
section 528 of such Act (as redesignated by subsection (a)(2)) (20 
U.S.C. 1103g) is amended to read as follows:
    ``(a) Authorizations.----
            ``(1) Part a.--There are authorized to be appropriated to 
        carry out part A of this title $175,000,000 for fiscal year 
        2005 and such sums as may be necessary for each of the 4 
        succeeding fiscal years.
            ``(2) Part b.--There are authorized to be appropriated to 
        carry out part B of this title $125,000,000 for fiscal year 
        2005 and such sums as may be necessary for each of the 4 
        succeeding fiscal years.''.
    (d) Reducing Regulatory Barriers for Hispanic-Serving 
Institutions.--Section 503(b) of the Higher Education Act of 1965 (20 
U.S.C. 1101b(a)) is amended by striking paragraph (7) and inserting the 
following:
            ``(7) Articulation agreements and student support programs 
        designed to facilitate the transfer from two-year to four-year 
        institutions.''.

SEC. 4. EXPANDING GRADUATE OPPORTUNITIES AT HISPANIC-SERVING 
              INSTITUTIONS.

    (a) Postbaccalaureate Opportunities for Hispanic Americans.--
            (1) Establishment of program.--Title V of the Higher 
        Education Act is amended--
                    (A) by redesignating part B as part C;
                    (B) by redesignating section 511 through 518 as 
                sections 521 through 528, respectively; and
                    (C) inserting after section 505 (20 U.S.C. 1101d) 
                the following new part:

   ``PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                               AMERICANS

``SEC. 511. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds the following:
            ``(1) According to the United States Census, by the year 
        2050 one in four Americans will be of Hispanic origin.
            ``(2) Despite the dramatic increase in the Hispanic 
        population in the United States, the National Center for 
        Education Statistics reported that in 1999, Hispanics accounted 
        for only 4 percent of the master's degrees, 3 percent of the 
        doctor's degrees, and 5 percent of first-professional degrees 
        awarded in the United States.
            ``(3) Although Hispanics constitute 10 percent of the 
        college enrollment in the United States, they comprise 3 only 
        percent of instructional faculty in college and universities.
            ``(4) The future capacity for research and advanced study 
        in the United States will require increasing the number of 
        Hispanics pursuing postbaccalaureate studies.
            ``(5) Hispanic-serving institutions are leading the nation 
        in increasing the number of Hispanics attaining graduate and 
        professional degrees.
            ``(6) Among Hispanics who received master's degrees in 
        1999-2000, 25 percent earned them at Hispanic-serving 
        institutions.
            ``(7) Between 1991 and 2000, the number of Hispanic 
        students earning master's degrees at Hispanic-serving 
        institutions grew 136 percent, the number receiving doctor's 
        degrees grew by 85 percent, and the number earning first-
        professional degrees grew by 47 percent.
            ``(8) It is in the National interest to expand the capacity 
        of Hispanic-serving institutions to offer graduate and 
        professional degree programs.
    ``(b) 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 and enhance the postbaccalaureate academic 
        offerings, program quality, that are educating the majority of 
        Hispanic college students and helping large numbers of Hispanic 
        students and other low-income individuals 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 
competitive grants to Hispanic-serving institutions that offer 
postbaccalaureate certifications or degrees.
    ``(b) Eligibility.--For the purposes of this part, an `eligible 
institution' means an institution of higher education that--
            ``(1) is an eligible institution under section 502; and
            ``(2) offers a postbaccalaureate certificate or 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 in classroom, library, laboratory, 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 needy 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 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 learning academic instruction capabilities, 
        including purchase or rental of telecommunications technology 
        equipment or services.
            ``(7) Collaboration with other institutions of higher 
        education to expand postbaccalaureate certificate and 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 determined by the Secretary. Such 
application shall demonstrate how the grant funds will be used to 
improve postbaccalaureate education opportunities for Hispanic and low-
income students and will lead to greater financial independence.
    ``(b) Duration.--Grants under this part shall be awarded for a 
period not to exceed 5 years.
    ``(c) Limitation.--The Secretary shall not award more than 1 grant 
under this part in any fiscal year to any Hispanic-serving 
institution.''.
            (2) Cooperative arrangements.--Section 524 of such Act (as 
        redesignated by subsection (a)(2)) (20 U.S.C. 1103c) is amended 
        by inserting ``and section 513'' after ``section 503''.
            (3) Authorization of appropriations.--Subsection (a) of 
        section 528 of such Act (as redesignated by subsection (a)(2)) 
        (20 U.S.C. 1103g) is amended to read as follows:
    ``(a) Authorizations.--
            ``(1) Part a.--There are authorized to be appropriated to 
        carry out part A of this title $175,000,000 for fiscal year 
        2005 and such sums as may be necessary for each of the 4 
        succeeding fiscal years.
            ``(2) Part b.--There are authorized to be appropriated to 
        carry out part B of this title $125,000,000 for fiscal year 
        2005 and such sums as may be necessary for each of the 4 
        succeeding fiscal years.''.
    (b) Definitions.--Section 502(a) of the Higher Education Act of 
1965 (20 U.S.C. 1101a(a)) is amended--
            (1) in paragraph (5)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (C) by striking subparagraph (C); and
            (2) by striking paragraph (7).
    (c) Authorized Activities.--Section 503(b) of the Higher Education 
Act of 1965 (20 U.S.C. 1101b(a)) is amended by striking paragraph (7) 
and inserting the following:
            ``(7) Articulation agreements and student support programs 
        designed to facilitate the transfer from two-year to four-year 
        institutions.''
    (d) Elimination of Wait-Out Period.--Subsection (a) of section 504 
of the Higher Education Act of 1965 (20 U.S.C. 1101c(a)) is amended to 
read as follows:
    ``(a) Award Period.--The Secretary may award a grant to a Hispanic-
serving institution under this title for 5 years.''.
    (e) Application Priority.--Section 521(d) of the Higher Education 
Act of 1965 (as redesignated by section 101(a)(2)) (20 U.S.C. 1103(d)) 
is amended by striking ``(from funds other than funds provided under 
this title)''.

SEC. 5. STRENGTHENING OUTREACH PROGRAMS TO DISADVANTAGED STUDENTS.

    (a) TRIO Duration of Grant.--Section 402A(b) (20 U.S.C. 1070a-
11(b)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Duration.--Grants or contracts made under this 
        chapter shall be awarded for a period of 5 years, except that--
                    ``(A) grants made under section 402G shall be 
                awarded for a period of 2 years; and
                    ``(B) grants under section 402H shall be awarded 
                for a period determined by the Secretary.''.
    (b) Minimum Grants.--Section 402A(b)(3) is amended--
            (1) by striking ``$170,000'' and inserting ``$200,000'';
            (2) by striking ``$180,000'' and inserting ``$210,000''; 
        and
            (3) by striking ``$190,000'' and inserting ``$220,000''.
    (c) Maximum Upward Bound Stipends.--Section 402C(e) (20 U.S.C. 
1070a-13(e)) is amended--
            (1) by striking ``$60'' and inserting ``$100''; and
            (2) by striking ``$40'' and inserting ``$60''.
    (d) Maximum McNair Stipends.--Section 402E(e)(1) (20 U.S.C. 1070a-
15(e)(1)) is amended by striking ``$2,800'' and inserting ``$5,000''.
    (e) GEARUP Coordination.--Section 404C(a)(2) (20 U.S.C. 1070a-
23(a)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) describe activities for coordinating, 
                complementing, and enhancing services under this 
                chapter provided by other eligible entities in the 
                State; and''.
    (f) HEP/CAMP Program.--Section 418A (20 U.S.C. 1070d-2) is 
amended--
            (1) in subsection (b)(1)(B)(i), by inserting ``or whose 
        spouse'' after ``themselves'';
            (2) in subsection (b)(3)(B), by inserting ``, including 
        preparation for college entrance exams,'' after ``program'';
            (3) in subsection (b)(8), by inserting ``, including child 
        care and transportation'' after ``students'';
            (4) by striking ``and'' at the end of subsection (b)(7), by 
        striking the period at the end of subsection (b)(8) and 
        inserting ``; and'', and by adding at the end of subsection (b) 
        the following new paragraph:
            ``(9) follow up activity and reporting requirements, except 
        that not more than 2 percent of the funds provided under this 
        section may be used for such purposes.'';
            (5) in subsection (c)(1)(A), by inserting ``or whose 
        spouse'' after ``themselves'';
            (6) in subsection (c)(2)(B), by inserting ``(including 
        mentoring and guidance of such students)'' after ``services'';
            (7) in subsection (c)(2), by striking ``and'' at the end of 
        subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``; and'', and by adding at the 
        end of subsection (c)(2) the following new subparagraph:
                    ``(C) for students in any program that does not 
                award a bachelor's degree, encouraging the transfer to, 
                and persistence in, such a program, and monitoring the 
                rate of such transfer, persistence, and completion.''; 
                and
            (8) in subsection (h)--
                    (A) in paragraph (1), by striking ``$15,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$24,000,000 for fiscal year 2004 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''; and
                    (B) in paragraph (2), by striking ``$5,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$16,000,000 for fiscal year 2004 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''.

SEC. 6. SUPPORT FOR WORKING STUDENTS.

    (a) Student Contribution From Available Income for Purposes of 
Needs Analysis.--
            (1) Dependent students.--Section 475(g)(2) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087oo(g)(2)) is amended by 
        striking subparagraph (D) and inserting the following:
                    ``(D) $9,000;''.
            (2) Independent students without dependents other than a 
        spouse.--Section 476(b)(1)(A) of the Higher Education Act of 
        1965 (20 U.S.C. 1087pp(b)(1)(A)) is amended by striking clause 
        (iv) and inserting the following:
                            ``(iv) $9,000;''.
            (3) Independent students with dependents other than a 
        spouse.--Section 477(b) of the Higher Education Act of 1965 (20 
        U.S.C. 1087qq(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (D) and 
                        inserting the following:
                    ``(D) $9,000;''; and
                            (ii) in subparagraph (E), by striking 
                        ``paragraph (5)'' and inserting ``paragraph 
                        (4)'';
                    (B) by striking paragraph (4); and
                    (C) by redesignating paragraph (5) as paragraph 
                (4).
            (4) Conforming amendments.--Section 478 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087rr) is amended--
                    (A) by striking subsection (b) and inserting the 
                following:
    ``(b) Income Protection Allowance.--For each academic year after 
academic year 1993-1994, the Secretary shall publish in the Federal 
Register a revised table of income protection allowances for the 
purpose of section 475(c)(4). Such revised table shall be developed by 
increasing each of the dollar amounts contained in the table in such 
section by a percentage equal to the estimated percentage increase in 
the Consumer Price Index (as determined by the Secretary) between 
December 1992 and the December next preceding the beginning of such 
academic year, and rounding the result to the nearest $10.''; and
                    (B) in subsection (h)--
                            (i) in the first sentence, by striking 
                        ``477(b)(5)'' and inserting ``477(b)(4)''; and
                            (ii) in the second sentence--
                                    (I) by striking ``477(b)(5)(A)'' 
                                and inserting ``477(b)(4)(A)''; and
                                    (II) by striking ``477(b)(5)(B)'' 
                                and inserting ``477(b)(4)(B)''.
    (b) Community Service.--Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is 
amended by inserting after ``child care services'' the following: 
``campus employees and students and''.

SEC. 7. PUBLIC SERVICE SCHOLARSHIPS.

    Section 428K (20 U.S.C. 1078-11) is amended to read as follows:

``SEC. 428K. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to reduce the burden of student debt, particularly 
        for Americans who dedicate their careers to meeting certain 
        urgent national needs; and
            ``(2) to attract more excellent individuals into important 
        public service careers.
    ``(b) Loan Forgiveness.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay, pursuant to subsection (c), a loan made 
        under section 428 or 428H, a Federal Direct Stafford Loan or 
        Federal Direct Unsubsidized Stafford Loan, a Federal Direct 
        Consolidation Loan, or a Federal Perkins Loan for any new 
        borrower after the date of enactment of the Higher Education 
        Amendments of 1998, who--
                    ``(A) is employed full time in a qualified public 
                service position described in paragraph (2); and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Qualified public service positions.--For purposes of 
        this section, an individual shall be treated as employed in a 
        qualified public service position if the individual is any of 
        the following:
                    ``(A) Highly qualified teachers in low-income 
                communities and of mathematics, science, and bilingual 
                and special education.--An individual who--
                            ``(i) is highly qualified as such term is 
                        defined in section 9101 of the Elementary and 
                        Secondary Education Act of 1965; and
                            ``(ii) (I) has obtained employment as a 
                        teacher for service in a public or nonprofit 
                        private elementary or secondary school which is 
                        in the school district of a local educational 
                        agency which is eligible in such year for 
                        assistance pursuant to title I of the 
                        Elementary and Secondary Education Act of 1965, 
                        and which for the purpose of this paragraph and 
                        for that year has been 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 
                        counted under section 1113(a)(5) of the 
                        Elementary and Secondary Education Act of 1965 
                        exceeds 40 percent of the total enrollment of 
                        that school; or
                            ``(II) has obtained employment as a full-
                        time teacher of mathematics, science, or 
                        bilingual or special education.
                    ``(B) Early childhood educators.--An individual 
                who--
                            ``(i) has received a degree in early 
                        childhood education; and
                            ``(ii) has obtained employment in a child 
                        care facility, such as employment as a 
                        preschool teacher, in a low-income community.
                    ``(C) Nurses.--An individual who has obtained 
                employment--
                            ``(i) in a clinical setting; or
                            ``(ii) 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)).
                    ``(D) Child welfare workers.--An individual who--
                            ``(i) has completed a degree in social work 
                        or related field with a focus on serving 
                        children and families (as determined in 
                        accordance with regulations prescribed by the 
                        Secretary); and
                            ``(ii) has obtained employment in public or 
                        private child welfare services.
                    ``(E) Nutrition professionals.--An individual who--
                            ``(i) is a certified registered dietician 
                        who has completed a degree in a relevant field; 
                        and
                            ``(ii) has obtained employment in a local 
                        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).
                    ``(F) Infant and toddler specialists.--An 
                individual who--
                            ``(i) has obtained an associate's or 
                        bachelor's degree in a discipline that would 
                        qualify the individual to work in the program 
                        under part C of the Individuals with 
                        Disabilities Education Act in the State in 
                        which such individual resides; and
                            ``(ii) has obtained employment in an 
                        occupation that is directly related to such 
                        degree and that (I) provides services to 
                        infants, toddlers, and their families under an 
                        individualized family service plan under 
                        section 636 of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1436) or 
                        an individualized education plan under section 
                        614(d) of such Act (20 U.S.C. 1414(d)); or (II) 
                        provides training or technical assistance to 
                        providers of such services.
                    ``(G) Additional public servants.--An individual 
                who, as determined by the Secretary of Education by 
                regulation--
                            ``(i) works in a public service profession 
                        that suffers from a critical lack of qualified 
                        personnel;
                            ``(ii) serves a low-income or needy 
                        community; and
                            ``(iii) is highly qualified.
    ``(c) Loan Repayment.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay--
                    ``(A) after each of the first or second years of 
                service by an individual in a qualified public service 
                position, 15 percent of the total amount of principal 
                and interest of the loans described in subsection 
                (b)(1) to such individual that are outstanding 
                immediately preceding such first year of such service;
                    ``(B) after each of the third or fourth years of 
                such service, 20 percent of such total amount; and
                    ``(C) after the fifth year of such service, 30 
                percent of such total amount.
            ``(2) Treatment of consolidation loans.--A loan amount for 
        a loan made under section 428C or for a Federal Direct 
        Consolidation Loan may be a qualified loan amount for the 
        purposes of this subsection only to the extent that such loan 
        amount was used to repay a loan described in subsection (b)(1) 
        for a borrower who meets the requirements of subsection (b), as 
        determined in accordance with regulations prescribed by the 
        Secretary.
            ``(3) Construction.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made under section 428 or 428H, a Federal Direct Stafford Loan 
        or Federal Direct Unsubsidized Stafford Loan, a Federal Direct 
        Loan, or a Federal Perkins Loan.
            ``(4) Interest.--If a portion of a loan is repaid by the 
        Secretary under this section for any year, the proportionate 
        amount of interest on such loan that accrues for such year 
        shall be repaid by the Secretary.
            ``(5) Ineligibility of national service award recipients.--
        No student borrower may, for the same service, receive a 
        benefit under both this section and subtitle D of title I of 
        the National and Community Service Act of 1990 (42 U.S.C. 12601 
        et seq.).
            ``(6) Ineligibility for double benefits.--No borrower may 
        receive a reduction of loan obligations under both this section 
        and section 428J or 460.
            ``(7) Continued eligibility.--
                    ``(A) Teachers.--Any teacher who performs service 
                in a school that--
                            ``(i) meets the requirements of subsection 
                        (b)(2)(A)(ii)(I) in any year during such 
                        service; and
                            ``(ii) in a subsequent year fails to meet 
                        the requirements of such subsection,
        may continue to teach in such school and shall be eligible for 
        loan forgiveness pursuant to subsection (b).
                    ``(B) Teachers in low-income communities.--Any 
                early childhood educator who performs service in a 
                community that--
                            ``(i) meets the definition of low-income 
                        community in any year during such service; and
                            ``(ii) in a subsequent year fails to meet 
                        such definition,
        may continue to perform service in such community and shall be 
        eligible for loan forgiveness pursuant to subsection (b).
    ``(d) Repayment to Eligible Lenders and Holders.--The Secretary 
shall pay to each eligible lender or holder for each fiscal year an 
amount equal to the aggregate amount of the lender's or holder's loans 
that are subject to repayment pursuant to this section for such year.
    ``(e) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        repayment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            ``(2) Conditions.--An eligible individual may apply for 
        loan repayment under this section after completing each of the 
        consecutive years of qualifying service described in subsection 
        (c)(1). The borrower may elect to receive forbearance while 
        engaged in qualifying service described in subsection (c)(1) 
        unless the borrower is in deferment while so engaged.
    ``(f) Regulations.--The Secretary is authorized to prescribe such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(g) Definitions.--In this section:
            ``(1) Child care facility.--The term `child care facility' 
        means a facility, including a home, that--
                    ``(A) provides child care services; and
                    ``(B) meets applicable State or local government 
                licensing, certification, approval, or registration 
                requirements, if any.
            ``(2) Child care services.--The term `child care services' 
        means activities and services provided for the education and 
        care of children from birth through age 5 by an individual who 
        has a degree in early childhood education, including a 
        preschool teacher.
            ``(3) Child welfare services.--The term `child welfare 
        services' has the meaning given the term in section 425 of the 
        Social Security Act.
            ``(4) Degree.--The term `degree' means an associate's or 
        bachelor's degree awarded by an institution of higher 
        education.
            ``(5) Early childhood education.--The term `early childhood 
        education' means education in the area of early child 
        development and education, child care, or any other educational 
        area related to early child education or child care that the 
        Secretary determines to be appropriate.
            ``(6) Eligible nurse.--The term `eligible 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 1 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 section 
                        801 of the Public Health Service Act (42 U.S.C. 
                        296)).
                            ``(iv) A nursing degree from a diploma 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
            ``(7) Eligible preschool program provider.--The term 
        `eligible preschool program provider' means a preschool program 
        provider serving children younger than the age of compulsory 
        school attendance that is--
                    ``(A) a public or private school;
                    ``(B) a provider that is supported, sponsored, 
                supervised, or administered by a local educational 
                agency;
                    ``(C) a Head Start agency designated under the Head 
                Start Act (42 U.S.C. 9831 et seq.);
                    ``(D) a nonprofit or community-based organization; 
                or
                    ``(E) a licensed child care center or family child 
                care provider.
            ``(8) Low-income community.--In this subsection, the term 
        `low-income community' means a community in which 70 percent of 
        households earn less than 85 percent of the State median 
        household income.
            ``(9) Preschool teacher.--The term `preschool teacher' 
        means an individual--
                    ``(A) who has received at least an associate's 
                degree in early childhood education and who is working 
                toward or who has already received a bachelor's degree 
                in early childhood education; and
                    ``(B) who works for an eligible preschool program 
                provider supporting the children's cognitive, social, 
                emotional, and physical development to prepare the 
                children for the transition to kindergarten.
            ``(10) Year.--The term `year', where applied to service as 
        a teacher (or service as a member of an accredited school of 
        nursing (as those terms are defined in section 801 of the 
        Public Health Service Act (42 U.S.C. 296))), means an academic 
        year as defined by the Secretary.''.

SEC. 8. PROVIDING RELIEF TO BORROWERS.

    (a) Elimination of Loan Fees to Borrowers.--
            (1) Federal family education loan program.--Section 438(c) 
        of the Higher Education Act of 1965 (20 U.S.C. 1087-1(c)) is 
        amended by adding at the end the following new paragraph:
            ``(9) Origination fees terminated.--Notwithstanding any 
        other provision of this subsection, with respect to any loan 
        made, insured, or guaranteed under this part on or after the 
        first July 1 after the date of enactment of the College 
        Opportunity for All Act--
                    ``(A) no eligible lender may collect directly or 
                indirectly from any borrower any origination fee with 
                respect to such loan, or any other fee relating to the 
                origination of a loan however described; and
                    ``(B) the Secretary shall not collect any 
                origination fee from the lender under this 
                subsection.''.
            (2) Federal direct loan program.--
                    (A) Amendment.--Section 455(c) of such Act (20 
                U.S.C. 1087e(c)) is amended to read as follows:
    ``(c) Loan Fee.--The Secretary shall not collect directly or 
indirectly from any borrower any origination fee with respect to such 
loan, or any other fee relating to the origination of a loan however 
described.''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply with respect to any loan 
                made under part D of title IV on an after the first 
                July 1 after the date of enactment of this Act.
    (b) Consolidation Loan Lender of Choice.--
            (1) Student loan borrower choice of loan consolidator.--
        Section 428C(b)(1)(A) of the Higher Education Act of 1965 (20 
        U.S.C. 1078-3(b)(1)(A)) is amended by striking ``and (i) the 
        lender holds'' and all that follows through ``selected for 
        consolidation)''.
            (2) Consolidation loan disclosure by lenders.--Section 
        428C(b)(1) of the Higher Education Act of 1965 (20 U.S.C. 1078-
        3(b)(1)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (E);
                    (B) by redesignating subparagraph (F) as 
                subparagraph (G); and
                    (C) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) that each applicant for a consolidation loan 
                will be provided a clear and conspicuous notice, in 
                such form as the Secretary shall prescribe, 
                describing--
                            ``(i) the effects of a consolidation loan 
                        and its available repayment plans on the 
                        borrower's interest rate;
                            ``(ii) the amount of his or her monthly and 
                        total payments, total interest accrued, and the 
                        length of the repayment term;
                            ``(iii) the ability of the student borrower 
                        to pre-pay loans; and
                            ``(iv) the differences between variable and 
                        fixed interest rates;''.
            (3) Disclosures by institutions during exit counseling.--
        Section 485(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1092(b)) is amended by adding at the end the following new 
        paragraph:
    ``(3) Each eligible institution shall provide to the borrower of a 
loan made under part B, D, or E, during the exit interview required by 
this subsection, a clear and conspicuous notice, in such form as the 
Secretary shall prescribe, describing the effect of using a 
consolidation loan to discharge the borrower's student loans, and 
including, with respect to a series of loan amounts ranges--
            ``(A) the differences between fixed and variable interest 
        rates;
            ``(B) the effects of consolidation loan and its available 
        repayment plans on the borrower's interest rate, the amount of 
        his or her monthly and total payments, total interest accrued, 
        and the length of repayment term; and
            ``(C) the ability of the student to prepay loans.''.
    (c) Authority to Refinance Consolidation Loans.--
            (1) Consolidation loan refinancing.--
                    (A) FFEL consolidation loans.--Section 
                428C(a)(3)(B) of the Higher Education Act of 1965 (20 
                U.S.C. 1078-3(a)(3)(B)) is amended by adding at the end 
                the following new clause:
            ``(ii) Notwithstanding clause (i) of this subparagraph, a 
        borrower of a consolidation loan on which the interest is 
        established at a fixed rate under section 427A, 428C(c), or 455 
        may obtain a subsequent consolidation loan for the purposes of 
        refinancing such earlier consolidation loan at the prevailing 
        interest rate determined under section 427A(m) or 455(b)(8) if 
        the interest rate on such earlier consolidation loan exceeds 
        such prevailing rate by 1.0 percent or more.''.
                    (B) Parallel terms for federal direct consolidation 
                loans.--Section 455(a) of the Higher Education Act of 
                1965 (20 U.S.C. 1087e(a)) is amended--
                            (i) in paragraph (1), by inserting 
                        ``428C,'' after ``428B,''; and
                            (ii) in paragraph (2)--
                                    (I) by striking ``and'' at the end 
                                of subparagraph (B);
                                    (II) by redesignating subparagraph 
                                (C) as subparagraph (D); and
                                    (III) by inserting after 
                                subparagraph (B) the following:
                    ``(C) section 428C shall be know as `Federal Direct 
                Consolidation Loans'.''.
            (2) Refinanced consolidation loans interest rate.--
                    (A) FFEL consolidation loans.--Section 427A of the 
                Higher Education Act of 1965 (20 U.S.C. 1077a) is 
                amended--
                            (i) by redesignating subsection (m) and (n) 
                        as subsections (n) and (o), respectively; and
                            (ii) by inserting after subsection (l) the 
                        following:
    ``(m) Refinanced Consolidation Loans.--
            ``(1) Prevailing rate.--Notwithstanding subsections (h), 
        (k), and (l), with respect to any loan made pursuant to section 
        428C(a)(3)(B)(ii) for the purposes of refinancing an earlier 
        consolidation loan, the applicable rate of interest shall, for 
        any loan made during any 12-month period beginning on July 1 
        and ending on June 30, be determined on the preceding June 1 
        (and remain in effect for the duration of the loan) and be 
        equal to--
                    ``(A) the bond equivalent rate of 91-day Treasury 
                bills auctioned at the final auction held prior to such 
                June 1; plus
                    ``(B) 2.3 percent,
        except that such rate shall not exceed 8.25 percent.
            ``(2) Recovery of excess interest.--If, with respect to a 
        consolidation loan on which the applicable interest rate is 
        determined under this subsection, the applicable interest rate 
        for any 3-month period exceeds the special allowance rate 
        applicable to such loan under section 438(b)(2)(I) for such 
        period, then an adjustment shall be made--
                    ``(A) by calculating the excess interest in the 
                amount computed under paragraph (3) of this subsection; 
                and
                    ``(B) by crediting the excess interest to the 
                Government.
            ``(3) Amount of adjustment.--The amount of any adjustment 
        of interest on a loan to be made under this subsection for any 
        quarter shall be equal to--
                    ``(A) the applicable interest rate minus the 
                special allowance rate determined under section 
                438(a)(2)(I); multiplied by
                    ``(B) the average daily principal balance of the 
                loan (not including unearned interest added to 
                principal) during such calendar quarter; divided by
                    ``(C) four.''.
                    (B) Refinanced federal direct consolidation 
                loans.--Section 455(b) of the Higher Education Act of 
                1965 (20 U.S.C. 1087e(b)) is amended--
                            (i) by redesignating paragraphs (8) and (9) 
                        as paragraphs (9) and (10), respectively; and
                            (ii) by inserting after paragraph (7) the 
                        following:
            ``(8) Prevailing rate consolidation loans.--Notwithstanding 
        the preceding paragraphs of this subsection, with respect to 
        any loan made pursuant to section 428C(a)(3)(B)(ii) for the 
        purposes of refinancing an earlier consolidation loan, the 
        applicable rate of interest shall, for any loan made during any 
        12-month period beginning on July 1 and ending on June 30, be 
        determined on the preceding June 1 (and remain in effect for 
        the duration of the loan) and be equal to--
                    ``(A) the bond equivalent rate of 91-day Treasury 
                bills auctioned at the final auction held prior to such 
                June 1; plus
                    ``(B) 2.3 percent,
                except that such rate shall not exceed 8.25 percent.''.
                    (C) Conforming amendment.--Section 438(b)(2)(I) is 
                amended by striking ``section 427A(k)(4) or (l)(3)'' 
                each place it appears in clauses (iv) and (vi) and 
                inserting ``section 427A(k)(4), (l)(3), or (m)''.

SEC. 9. SIMPLIFYING THE STUDENT AID PROCESS.

    (a) Student Eligibility.--Subsection (r) of section 484 (20 U.S.C. 
1091) is repealed.
    (b) Short Form for Simplified Needs Test.--
            (1) FAFSA-EZ in lieu of fafsa.--Subsection (a) of section 
        479 (20 U.S.C. 1087ss(a)) is amended to read as follows:
    ``(a) Simplified Application: FAFSA-EZ.--
            ``(1) In general.--The Secretary shall develop and use a 
        simplified application form, to be known as the `FAFSA-EZ', to 
        be used in lieu of the common financial reporting form 
        prescribed under section 483(a) for families described in 
        subsections (b) and (c) of this section.
            ``(2) Reduced data requirements.--The simplified 
        application form shall--
                    ``(A) in the case of a family meeting the 
                requirements of subsection (b)(1), permit such family 
                to submit only the data elements required under 
                subsection (b)(2) for the purposes of establishing 
                eligibility for student financial aid under this part; 
                and
                    ``(B) in the case of a family meeting the 
                requirements of subsection (c), permit such family to 
                be treated as having an expected family contribution 
                equal to zero for purposes of establishing such 
                eligibility and to submit only the data elements 
                required to make a determination under subsection (c).
            ``(3) Availability of means to determine eligibility.--The 
        Secretary shall provide, both via a widely disseminated printed 
        form and an Internet or other electronic means, the capability 
        for individuals to determine easily, by entering relevant data, 
        whether or not they qualify for the submission of a simplified 
        application form under this subsection. The capability provided 
        under this paragraph shall include the capability to determine 
        approximately the amount of grant, work-study, and loan 
        assistance an individual would be eligible for under this title 
        upon completion and verification of the simplified application 
        form.
            ``(4) Free availability and processing.--The provisions of 
        section 483(a)(2) shall apply to the FAFSA-EZ as if the FAFSA-
        EZ were the common financial reported form prescribed by the 
        Secretary under section 483(a)(1), and the data collected by 
        means of the FAFSA-EZ shall be available to institutions of 
        higher education, guaranty agencies, and States in accordance 
        with section 483(a)(3).''.
            (2) Additional qualifying forms.--Section 479(b)(3) of such 
        Act is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(D) a form for applying for supplemental security 
                income under title XVI of the Social Security Act;
                    ``(E) a form for applying for Medicaid under title 
                XVIII of the Social Security Act;
                    ``(F) a form for applying for food stamps under the 
                Food Stamp Act of 1977; or
                    ``(G) a schedule for applying for the earned income 
                tax credit under section 32 of the Internal Revenue 
                Code of 1986.''.
    (c) Simplification of the Free Application for Federal Student Aid 
(FAFSA).--Section 483(a) of the Higher Education Act of 1965 (20 U.S.C. 
1090(a)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Single form required.--The Secretary, in cooperation 
        with representatives of agencies and organizations involved in 
        student financial assistance, shall produce, distribute, and 
        process free of charge a common financial reporting form to be 
        used to determine the need and eligibility of a student for 
        financial assistance under parts A through E of this title 
        (other than under subpart 4 of part A). Such form shall satisfy 
        the requirements of section 401(d) of this title. Subject to 
        paragraph (8)--
                    ``(A) the Secretary shall include on the form 
                developed under this subsection such data items as the 
                Secretary determines are appropriate for inclusion; and
                    ``(B) such items shall be selected in consultation 
                with States to assist in the awarding of State 
                financial assistance.''; and
            (2) by adding at the end the following new paragraph:
            ``(8) Simplification.--Within 5 years after the date of 
        enactment of the College Opportunity for All Act, the Secretary 
        shall initiate a proceeding to revise the common financial 
        reporting form under this section to reduce the number of data 
        items required to be provided by applicants for student 
        financial assistance under this title (other than subpart 4 of 
        part A). The objective of such proceeding shall be to obtain a 
        50 percent reduction in the number of such data items. The 
        Secretary shall, within 2 years after the date of enactment of 
        such Act submit an interim report to the Congress on the 
        progress made in achieving such objective, and identifying the 
        impediments to further progress.''.

SEC. 10. EXPANSION OF VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY 
              AGENCIES.

    (a) Amendment.--Section 428A(a) of the Higher Education Act of 1965 
(20 U.S.C.1078-1(a)) is amended by striking paragraph (3) and inserting 
the following:
            ``(3) Eligibility.--Any guaranty agency or consortium 
        thereof may enter into a voluntary flexible agreement with the 
        Secretary.''.
    (b) Immediate Effective Date.--The amendment made by paragraph (1) 
shall take effect on the date of enactment of this Act.

SEC. 11. ALLOWANCE FOR STATE AND OTHER TAXES.

    Notwithstanding any other provision of law, the annual updates to 
the allowance for State and other taxes in the tables used in the 
Federal Needs Analysis Methodology to determine a student's expected 
family contribution for the award year 2004-2005 under part F of title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.), 
published in the Federal Register on Friday, May 30, 2003 (68 Fed. Reg. 
32473), shall be deemed to never have been promulgated.
                                 <all>