[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4283 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4283

         To amend and extend the Higher Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2004

Mr. Boehner (for himself and Mr. McKeon) introduced the following bill; 
   which was referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
         To amend and extend 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``College Access and 
Opportunity Act of 2004''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Definition of institution of higher education.
        ``Sec. 101. Definition of institution of higher education.
        ``Sec. 102. Institutions outside the United States.
        ``Sec. 123. Restrictions on funds for for-profit schools.
Sec. 102. New borrower definition.
Sec. 103. Student speech and association rights.
Sec. 104. Extension of National Advisory Committee on Institutional 
                            Quality and Integrity.
Sec. 105. Alcohol and drug abuse prevention.
Sec. 106. Prior rights and obligations.
Sec. 107. Consumer information and public accountability in higher 
                            education.
        ``Sec. 131. Consumer information and public accountability in 
                            higher education.
Sec. 108. Performance-based organization.
                     TITLE II--TEACHER PREPARATION

Sec. 201. Sense of the House of Representatives.
                      TITLE III--INSTITUTIONAL AID

Sec. 301. Title III grants for American Indian Tribally Controlled 
                            Colleges and Universities.
Sec. 302. Alaska Native and Native Hawaiian-serving institutions.
Sec. 303. Grants to part B institutions.
Sec. 304. Technical amendments.
Sec. 305. Title III authorizations.
                      TITLE IV--STUDENT ASSISTANCE

                       Part A--Grants to Students

Sec. 401. Pell Grants.
        ``Sec. 401A. Pell Grants Plus: achievement grants for State 
                            scholars.
Sec. 402. TRIO programs.
Sec. 403. GEARUP.
Sec. 404. Federal Supplemental Educational Opportunity Grants.
Sec. 405. LEAP.
Sec. 406. HEP/CAMP program.
Sec. 407. Byrd Scholarship.
Sec. 408. Child care access.
Sec. 409. Learning anytime anywhere partnerships.
Sec. 410. Technical amendments.
             Part B--Federal Family Education Loan Program

Sec. 421. Reauthorization of Federal Family Education Loan Program.
Sec. 422. Loan limits.
Sec. 423. Interest rates and special allowances.
Sec. 424. Additional loan terms and conditions.
Sec. 425. Consolidation loan changes.
Sec. 426. Unsubsidized Stafford loans.
Sec. 427. Teacher recruitment and retention.
Sec. 428. Additional administrative provisions.
                  Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Community service.
Sec. 443. Allocation of funds.
Sec. 444. Books and supplies.
Sec. 445. Job location and development.
Sec. 446. Work colleges.
                  Part D--Federal Direct Loan Program

Sec. 451. Reauthorization of the Direct Loan Program.
                  Part E--Federal Perkins Loan Program

Sec. 461. Reauthorization of program.
Sec. 462. Loan terms and conditions.
Sec. 463. Loan cancellation.
Sec. 464. Technical amendments.
                         Part F--Need Analysis

Sec. 471. Simplified needs test improvements.
Sec. 472. Additional need analysis amendments.
  Part G--General Provisions Relating to Student Financial Assistance

Sec. 481. Definition of academic year.
Sec. 482. Distance education.
Sec. 483. Expanding information dissemination regarding eligibility for 
                            Pell Grants.
Sec. 484. Student eligibility.
Sec. 485. Institutional refunds.
Sec. 486. Institutional and financial assistance information for 
                            students.
Sec. 487. College access initiative.
        ``Sec. 485D. College access initiative.
Sec. 488. Distance education demonstration program.
Sec. 489. College affordability demonstration program.
        ``Sec. 486A. College affordability demonstration program.
Sec. 490. Program participation agreements.
Sec. 491. Additional technical and conforming amendments.
                       Part H--Program Integrity

Sec. 495. Accreditation.
                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitional changes.
Sec. 502. Assurance of enrollment of needy students.
Sec. 503. Additional amendments.
Sec. 504. Title V authorization.
                     TITLE VI--TITLE VI AMENDMENTS

Sec. 601. Sense of the House.
                    TITLE VII--TITLE VII AMENDMENTS

Sec. 701. Sense of the House.
                    TITLE VIII--CLERICAL AMENDMENTS

Sec. 801. Clerical amendments.
    TITLE IX--STUDENT LOAN FORGIVENESS FOR FAMILIES OF 9/11 VICTIMS

Sec. 901. Cancellation of student loan indebtedness for spouses, 
                            surviving joint debtors, and parents.
              TITLE X--AMENDMENTS TO OTHER EDUCATION LAWS

               Part A--Education of the Deaf Act of 1986

Sec. 1001. Laurent Clerc National Deaf Education Center.
Sec. 1002. Authority.
Sec. 1003. Agreement for the National Technical Institute for the Deaf.
Sec. 1004. Definitions.
Sec. 1005. Audit.
Sec. 1006. Reports.
Sec. 1007. Liaison for educational programs.
Sec. 1008. Federal endowment programs for Gallaudet University and the 
                            National Technical Institute for the Deaf.
Sec. 1009. Oversight and effect of agreements.
Sec. 1010. Authorization of appropriations.
                   Part B--Additional education laws

Sec. 1021. Amendment to Higher Education Amendments of 1998.
Sec. 1022. Tribally Controlled College or University Assistance Act of 
                            1978.
Sec. 1023. Navajo Community College Act.
Sec. 1024. Education Amendments of 1992.
Sec. 1025. Study of student learning outcomes and public 
                            accountability.

SEC. 2. REFERENCES; EFFECTIVE DATE.

    (a) 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.).
    (b) Effective Date.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect on the date of enactment 
of this Act.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    (a) Amendment.--Title I is amended by striking sections 101 and 102 
(20 U.S.C. 1001, 1002) and inserting the following:

``SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    ``(a) Institution of Higher Education.--For purposes of this Act, 
the term `institution of higher education' means an educational 
institution in any State that--
            ``(1) admits as regular students only persons who--
                    ``(A) meet the requirements of section 484(d)(3), 
                or have a certificate of graduation from a school 
                providing secondary education, or the recognized 
                equivalent of such a certificate; or
                    ``(B) are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located;
            ``(2) is legally authorized within such State to provide a 
        program of education beyond secondary education;
            ``(3)(A) is accredited by a nationally recognized 
        accrediting agency or association; or
            ``(B) if not so accredited, is a public or nonprofit 
        institution that has been granted preaccreditation status by 
        such an agency or association that has been recognized by the 
        Secretary for the granting of preaccreditation status, and the 
        Secretary has determined that there is satisfactory assurance 
        that the institution will meet the accreditation standards of 
        such an agency or association within a reasonable time; and
            ``(4) meets either of the following criteria:
                    ``(A) is a nonprofit, for-profit, or public 
                institution that--
                            ``(i) provides an educational program for 
                        which the institution awards a bachelor's 
                        degree;
                            ``(ii) provides not less than a 2-year 
                        educational program which is acceptable for 
                        full credit towards such a degree; or
                            ``(iii) provides not less than a 1-year 
                        program of training that prepares students for 
                        gainful employment in a recognized occupation; 
                        or
                    ``(B) is a nonprofit, for-profit, or public 
                institution that provides an eligible program (as 
                defined in section 481)--
                            ``(i) for which the institution awards a 
                        certificate; and
                            ``(ii) that prepares students for gainful 
                        employment in a recognized occupation.
    ``(b) Additional Limitations.--
            ``(1) For-profit postsecondary institutions.--
                    ``(A) Duration of accreditation.--A for-profit 
                institution shall not be considered to be an 
                institution of higher education unless such institution 
                is accredited by a nationally recognized accrediting 
                agency or association and such institution has been in 
                existence for at least 2 years.
                    ``(B) Institutional eligibility only for 
                competitive grants.--For the purposes of any program 
                providing grants to institutions for use by the 
                institution (and not for distribution among students), 
                a for-profit institution shall not be considered to be 
                an institution of higher education under this section 
                if such grants are awarded on any basis other than 
                competition on the merits of the grant proposal or 
                application.
            ``(2) Postsecondary vocational institutions.--A nonprofit 
        or public institution that meets the criteria of subsection 
        (a)(4)(B) shall not be considered to be an institution of 
        higher education unless such institution has been in existence 
        for at least 2 years.
            ``(3) Limitations based on management.--An institution 
        shall not be considered to meet the definition of an 
        institution of higher education in this section if--
                    ``(A) the institution, or an affiliate of the 
                institution that has the power, by contract or 
                ownership interest, to direct or cause the direction of 
                the management or policies of the institution, has 
                filed for bankruptcy, except that this paragraph shall 
                not apply to a nonprofit institution, the primary 
                function of which is to provide health care educational 
                services (or an affiliate of such an institution that 
                has the power, by contract or ownership interest, to 
                direct or cause the direction of the institution's 
                management or policies) that filed for bankruptcy under 
                chapter 11 of title 11, United States Code, between 
                July 1, 1998, and December 1, 1998; or
                    ``(B) the institution, the institution's owner, or 
                the institution's chief executive officer has been 
                convicted of, or has pled nolo contendere or guilty to, 
                a crime involving the acquisition, use, or expenditure 
                of Federal funds, or has been judicially determined to 
                have committed a crime involving the acquisition, use, 
                or expenditure involving Federal funds.
            ``(4) Limitation on course of study or enrollment.--An 
        institution shall not be considered to meet the definition of 
        an institution of higher education in subsection (a) if such 
        institution--
                    ``(A) offers more than 50 percent of such 
                institution's courses by correspondence (excluding 
                courses offered by telecommunications as defined in 
                484(l)(4)), unless the institution is an institution 
                that meets the definition in section 3(3)(C) of the 
                Carl D. Perkins Vocational and Technical Education Act 
                of 1998;
                    ``(B) enrolls 50 percent or more of the 
                institution's students in correspondence courses 
                (excluding courses offered by telecommunications as 
                defined in 484(l)(4)), unless the institution is an 
                institution that meets the definition in section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998, except that the Secretary, at 
                the request of the institution, may waive the 
                applicability of this subparagraph to the institution 
                for good cause, as determined by the Secretary in the 
                case of an institution of higher education that 
                provides a 2- or 4-year program of instruction (or 
                both) for which the institution awards an associate or 
                baccalaureate degree, respectively;
                    ``(C) has a student enrollment in which more than 
                25 percent of the students are incarcerated, except 
                that the Secretary may waive the limitation contained 
                in this subparagraph for an institution that provides a 
                2- or 4-year program of instruction (or both) for which 
                the institution awards a bachelor's degree, or an 
                associate's degree or a postsecondary certificate, 
                respectively; or
                    ``(D) has a student enrollment in which more than 
                50 percent of the students either do not meet the 
                requirements of section 484(d)(3) or do not have a 
                secondary school diploma or its recognized equivalent, 
                and does not provide a 2- or 4-year program of 
                instruction (or both) for which the institution awards 
                an associate's degree or a bachelor's degree, 
                respectively, except that the Secretary may waive the 
                limitation contained in this subparagraph if an 
                institution demonstrates to the satisfaction of the 
                Secretary that the institution exceeds such limitation 
                because the institution serves, through contracts with 
                Federal, State, or local government agencies, 
                significant numbers of students who do not meet the 
                requirements of section 484(d)(3) or do not have a 
                secondary school diploma or its recognized equivalent.
    ``(c) List of Accrediting Agencies.--For purposes of this section, 
the Secretary shall publish a list of nationally recognized accrediting 
agencies or associations that the Secretary determines, pursuant to 
subpart 2 of part H of title IV, to be reliable authority as to the 
quality of the education or training offered.
    ``(d) Certification.--The Secretary shall certify, for the purposes 
of participation in title IV, an institution's qualification as an 
institution of higher education in accordance with the requirements of 
subpart 3 of part H of title IV.
    ``(e) Loss of Eligibility.--An institution of higher education 
shall not be considered to meet the definition of an institution of 
higher education in this section for the purposes of participation in 
title IV if such institution is removed from eligibility for funds 
under title IV as a result of an action pursuant to part H of title IV.

``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

    ``(a) Institutions Outside the United States.--
            ``(1) In general.--An institution outside the United States 
        shall be considered to be an institution of higher education 
        only for purposes of part B of title IV if the institution is 
        comparable to an institution of higher education, as defined in 
        section 101, is legally authorized by the education ministry 
        (or comparable agency) of the country in which the school is 
        located, and has been approved by the Secretary for purposes of 
        that part. The Secretary shall establish criteria by regulation 
        for that approval and that determination of comparability. An 
        institution may not be so approved or determined to be 
        comparable unless such institution is a public or nonprofit 
        institution, except that, subject to paragraph (2)(B), a 
        graduate medical school or veterinary school located outside 
        the United States may be a for-profit institution.
            ``(2) Medical and veterinary school criteria.--In the case 
        of a graduate medical or veterinary school outside the United 
        States, such criteria shall include a requirement that a 
        student attending such school outside the United States is 
        ineligible for loans made, insured, or guaranteed under part B 
        of title IV unless--
                    ``(A) in the case of a graduate medical school 
                located outside the United States--
                            ``(i)(I) at least 60 percent of those 
                        enrolled in, and at least 60 percent of the 
                        graduates of, the graduate medical school 
                        outside the United States were not persons 
                        described in section 484(a)(5) in the year 
                        preceding the year for which a student is 
                        seeking a loan under part B of title IV; and
                            ``(II) at least 60 percent of the 
                        individuals who were students or graduates of 
                        the graduate medical school outside the United 
                        States or Canada (both nationals of the United 
                        States and others) taking the examinations 
                        administered by the Educational Commission for 
                        Foreign Medical Graduates received a passing 
                        score in the year preceding the year for which 
                        a student is seeking a loan under part B of 
                        title IV; or
                            ``(ii) the institution has a clinical 
                        training program that was approved by a State 
                        as of January 1, 1992; or
                    ``(B) in the case of a veterinary school located 
                outside the United States that is not a public or 
                nonprofit institution, the institution's students 
                complete their clinical training at an approved 
                veterinary school located in the United States.
    ``(b) Advisory Panel.--
            ``(1) In general.--For the purpose of qualifying a foreign 
        medical school as an institution of higher education only for 
        purposes of part B of title IV, the Secretary shall publish 
        qualifying criteria by regulation and establish an advisory 
        panel of medical experts that shall--
                    ``(A) evaluate the standards of accreditation 
                applied to applicant foreign medical schools; and
                    ``(B) determine the comparability of those 
                standards to standards for accreditation applied to 
                United States medical schools.
            ``(2) Failure to release information.--The failure of an 
        institution outside the United States to provide, release, or 
        authorize release to the Secretary of such information as may 
        be required by subsection (a)(2) shall render such institution 
        ineligible for the purpose of part B of title IV.
    ``(c) Special Rule.--If, pursuant to this section, an institution 
located outside the United States loses eligibility to participate in 
the programs under part B of title IV, then a student enrolled at such 
institution may, notwithstanding such loss of eligibility, continue to 
be eligible to receive a loan under part B of title IV while attending 
such institution for the academic year succeeding the academic year in 
which such loss of eligibility occurred.''.
    (b) Restrictions on Funds for For-Profit Schools.--Part B of title 
I is amended by inserting after section 122 (20 U.S.C. 1011k) the 
following new section:

``SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT SCHOOLS.

    ``(a) In General.--Notwithstanding any other provision of this Act 
authorizing the use of funds by an institution of higher education that 
receives funds under this Act, none of the funds made available under 
this Act to a for-profit institution of higher education may be used 
for--
            ``(1) construction, maintenance, renovation, repair, or 
        improvement of classrooms, libraries, laboratories, or other 
        facilities;
            ``(2) establishing, improving, or increasing an endowment 
        fund; or
            ``(3) establishing or improving an institutional 
        development office to strengthen or improve contributions from 
        alumni and the private sector.
    ``(b) Exception.--Subsection (a) shall not apply to funds received 
by the institution from the grant, loan, or work assistance that is 
awarded under title IV to the students attending such institution.''.
    (c) Conforming Amendments.--
            (1) Section 114(a) (20 U.S.C. 1011c(a)) is amended by 
        striking ``(as defined in section 102)''.
            (2) Section 428K(b) (20 U.S.C. 1078-11(b)) is amended by 
        striking paragraph (5).
            (3) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (4) Subsection (d) of section 484 (20 U.S.C. 1091(d)) is 
        amended by striking the designation and heading of such 
        subsection and inserting the following:
    ``(d) Satisfaction of Secondary Education Standards.--''.
            (5) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by 
        striking ``102(a)(3)(A), 102(a)(3)(B)'' and inserting 
        ``101(b)(4)(A), 101(b)(4)(B)''.
            (6) Section 487(c)(1)(A)(iii) (20 U.S.C. 
        1094(c)(1)(A)(iii)) is amended by striking ``section 
        102(a)(1)(C)'' and inserting ``section 102''.
            (7) Section 487(d) (20 U.S.C. 1094(d)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (8) Subsections (j) and (k) of section 496 (20 U.S.C. 
        1099b(j), (k)) are each amended by striking ``section 102'' and 
        inserting ``section 101''.
            (9) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.
            (10) Section 498(i) (20 U.S.C. 1099c(i)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (11) Section 498(j)(1) (20 U.S.C. 1099c) is amended by 
        striking ``except that such branch shall not be required to 
        meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C) 
        prior to seeking such certification'' and inserting ``except 
        that such branch shall not be required to be in existence for 
        at least 2 years prior to seeking such certification''.
            (12) Section 498B(b) (20 U.S.C. 1099c-2(b)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.

SEC. 102. NEW BORROWER DEFINITION.

    Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as 
follows:
            ``(7) New borrower.--The term `new borrower' when used with 
        respect to any date for any loan under any provision of--
                    ``(A) part B or part D of title IV means an 
                individual who on that date has no outstanding balance 
                of principal or interest owing on any loan made, 
                insured, or guaranteed under either of those parts; and
                    ``(B) part E of title IV means an individual who on 
                that date has no outstanding balance of principal or 
                interest owing on any loan made under that part.''.

SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS.

    Section 112 (20 U.S.C. 1011a) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Protection of Rights.--It is the sense of Congress that--
            ``(1) no student attending an institution of higher 
        education on a full- or part-time basis should, on the basis of 
        participation in protected speech or protected association, be 
        excluded from participation in, be denied the benefits of, or 
        be subjected to discrimination or official sanction under any 
        education program, activity, or division of the institution 
        directly or indirectly receiving financial assistance under 
        this Act, whether or not such program, activity, or division is 
        sponsored or officially sanctioned by the institution; and
            ``(2) an institution of higher education should ensure that 
        a student attending such institution on a full- or part-time 
        basis is--
                    ``(A) evaluated solely on the basis of their 
                reasoned answers and knowledge of the subjects and 
                disciplines they study and without regard to their 
                political, ideological, or religious beliefs;
                    ``(B) assured that the selection of speakers and 
                allocation of funds for speakers, programs, and other 
                student activities will utilize methods that promote 
                intellectual pluralism and include diverse viewpoints;
                    ``(C) presented diverse approaches and dissenting 
                sources and viewpoints within the instructional 
                setting; and
                    ``(D) not excluded from participation in, denied 
                the benefits of, or subjected to discrimination or 
                official sanction on the basis of their political or 
                ideological beliefs under any education program, 
                activity, or division of the institution directly or 
                indirectly receiving financial assistance under this 
                Act, whether or not such program, activity, or division 
                is sponsored or officially sanctioned by the 
                institution.''; and
            (2) in subsection (b)(1), by inserting after ``higher 
        education'' the following: ``, provided that the imposition of 
        such sanction is done objectively, fairly, and without regard 
        to the student's political, ideological, or religious 
        beliefs''.

SEC. 104. EXTENSION OF NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL 
              QUALITY AND INTEGRITY.

    Section 114(g) (20 U.S.C. 1011c(g)) is amended by striking ``2004'' 
and inserting ``2011''.

SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION.

    Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding fiscal years'' and inserting 
        ``5 succeeding fiscal years''.

SEC. 106. PRIOR RIGHTS AND OBLIGATIONS.

    Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking ``1999 
and for each of the 4'' each place it appears and inserting ``2005 and 
for each of the 5''.

SEC. 107. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    Section 131 (20 U.S.C. 1015) is amended to read as follows:

``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    ``(a) Data Collection.--
            ``(1) Data systems.--The Secretary shall continue to 
        redesign the relevant parts of the postsecondary education data 
        systems to include additional data as required by this section 
        and to continue to improve the usefulness and timeliness of 
        data collected by such systems.
            ``(2) Information from institutions.--The Commissioner of 
        Education Statistics shall collect, for each academic year and 
        in accordance with standard definitions developed by the 
        Commissioner of Education Statistics (including definitions 
        developed under section 131(a)(3)(A) as in effect on the day 
        before the date of enactment of the College Access and 
        Opportunity Act of 2004) from at least all institutions of 
        higher education participating in programs under title IV, and 
        such institutions shall provide, the following data:
                    ``(A) The tuition and fees charged for a full-time 
                undergraduate student.
                    ``(B) The room and board charges for such a 
                student.
                    ``(C) The cost of attendance for a full-time 
                undergraduate student, consistent with the provisions 
                of section 472.
                    ``(D) The average amount of financial assistance 
                received by a full-time undergraduate student, 
                including--
                            ``(i) each type of assistance or benefits 
                        described in 428(a)(2)(C)(ii);
                            ``(ii) fellowships;
                            ``(iii) institutional and other assistance; 
                        and
                            ``(iv) loans under parts B and D.
                    ``(E) The number of students receiving financial 
                assistance described in each clause of subparagraph 
                (D).
                    ``(F) The average net price for students receiving 
                Federal, State, or institutional financial assistance.
                    ``(G) The institutional instructional expenditure 
                per full-time equivalent student.
    ``(b) Data Dissemination.--The Secretary shall make available the 
data collected pursuant to this section, including an institution's 
college affordability index as calculated in accordance with subsection 
(c). Such data shall be made available in a manner that permits the 
review and comparison of data submissions of individual institutions of 
higher education. Such data shall be presented in a form that is easily 
accessible and understandable and allows parents and students to make 
informed decisions based on the prices for typical full-time 
undergraduate students and the institution's rate of cost increase.
    ``(c) College Affordability Index.--
            ``(1) In general.--The Secretary shall, on the basis of the 
        data submitted under subsection (a), calculate a college 
        affordability index for each institution of higher education 
        submitting such data and shall make the index available in 
        accordance with subsection (b) as soon as operationally 
        possible on the Department's college opportunity online Web 
        site.
            ``(2) Calculation of index.--The college affordability 
        index shall be equal to--
                    ``(A) the percentage increase in the tuition and 
                fees charged for a first-time, full-time, full-year 
                undergraduate student between the first of the 3 most 
                recent preceding academic years and the last of those 3 
                academic years; divided by
                    ``(B) the percentage increase in the Consumer Price 
                Index--All Urban Consumers (Current Series) from July 
                of the first of those 3 academic years to July of the 
                last of those 3 academic years.
    ``(d) Outcomes and Actions.--
            ``(1) Response from institution.--Effective on June 30, 
        2008, an institution that has a college affordability index 
        that exceeds 2.0 for any 3-year interval ending on or after 
        that date shall provide a report to the Secretary, in such a 
        form, at such time, and containing such information as the 
        Secretary may require. Such report shall include--
                    ``(A) an explanation of the factors contributing to 
                the increase in the institution's costs and in the 
                tuition and fees charged to students;
                    ``(B) a management plan stating the specific steps 
                the institution is and will be taking to reduce its 
                college affordability index;
                    ``(C) an action plan, including a schedule, by 
                which the institution will reduce increases in or 
                stabilize, such costs and tuition and fees; and
                    ``(D) if determinations of tuition and fee 
                increases are not within the exclusive control of the 
                institution, a description of the agency or 
                instrumentality of State government or other entity 
                that participates in such determinations and the 
                authority exercised by such agency, instrumentality, or 
                entity.
            ``(2) Information to the public.--Upon receipt of the 
        institution's report and management plan under paragraph (1), 
        the Secretary shall make the institution's report required 
        under paragraph (1) available to the public in accordance with 
        subsection (b).
            ``(3) Consequences for 2-year continuation of failure.--If 
        the Secretary determines that the institution has failed to 
        comply with the management plan and action plan submitted by 
        the institution under this subsection following the next 2 
        academic years that begin after the submission of such plans, 
        and has failed to reduce the college affordability index below 
        2.0 for such 2 academic years, the Secretary--
                    ``(A) shall make available to the public a detailed 
                report provided by the institution on all costs and 
                expenditures, and on all tuition and fees charged to 
                students, for such 2 academic years;
                    ``(B) shall place the institution on an 
                affordability alert status and shall make the 
                information regarding the institution's failure 
                available in accordance with subsection (b);
                    ``(C) shall notify the institution's accrediting 
                agency of the institution's failure; and
                    ``(D) may require the institution to submit to a 
                review and audit by the Inspector General of the 
                Department of Education to determine the cause of the 
                institution's failure.
            ``(4) Information to state agencies.--Any institution that 
        reports under paragraph (1)(D) that an agency or 
        instrumentality of State government or other entity 
        participates in the determinations of tuition and fee increases 
        shall, prior to submitting any information to the Secretary 
        under this subsection, submit such information to, and request 
        the comments and input of, such agency, instrumentality, or 
        entity. With respect to any such institution, the Secretary 
        shall provide a copy of any communication by the Secretary with 
        that institution to such agency, instrumentality, or entity.
            ``(5) Exemptions.--
                    ``(A) Relative price exemption.--The Secretary 
                shall, for any 3-year interval for which college 
                affordability indexes are computed under paragraph (1), 
                determine and publish the dollar amount that, for each 
                class of institution described in subparagraph (C) 
                represents the maximum tuition and fees charged for a 
                full-time undergraduate student in the least costly 
                quartile of institutions within each such class during 
                the last year of such 3-year interval. An institution 
                that has a college affordability index computed under 
                paragraph (1) that exceeds 2.0 for any such 3-year 
                interval, but that, on average during such 3-year 
                interval, charges less than such maximum tuition and 
                fees shall not be subject to the actions required by 
                subparagraph (B) or (C) of paragraph (1), or any action 
                under paragraph (3), unless such institution, for a 
                subsequent 3-year interval, charges more than such 
                maximum tuition and fees.
                    ``(B) Dollar increase exemption.--An institution 
                that has a college affordability index computed under 
                paragraph (1) that exceeds 2.0 for any 3-year interval, 
                but that exceeds such 2.0 by a dollar amount that is 
                less than $500, shall not be subject to the actions 
                required by subparagraph (B) or (C) of paragraph (1), 
                or any action under paragraph (3), unless such 
                institution has a college affordability index for a 
                subsequent 3-year interval that exceeds 2.0 by more 
                than such dollar amount.
                    ``(C) Classes of institutions.--For purposes of 
                subparagraph (B), the classes of institutions shall be 
                those sectors used by the Integrated Postsecondary 
                Education Data System, based on whether the institution 
                is public, nonprofit private, or for-profit private, 
                and whether the institution has a 4-year, 2-year, or 
                less than 2-year program of instruction.
    ``(e) Fines.--In addition to actions authorized in section 487(c), 
the Secretary may impose a fine in an amount not to exceed $25,000 on 
an institution of higher education for failing to provide the 
information described in this section in a timely and accurate manner, 
or for failing to otherwise cooperate with the National Center for 
Education Statistics regarding efforts to obtain data on the cost and 
price of higher education under this section and pursuant to the 
program participation agreement entered into under section 487.
    ``(f) GAO Study and Report.--
            ``(1) GAO study.--The Comptroller General shall conduct a 
        study of the policies and procedures implemented by 
        institutions in increasing the affordability of postsecondary 
        education. Such study shall include information with respect 
        to--
                    ``(A) a list of those institutions that--
                            ``(i) have reduced their college 
                        affordability indexes; or
                            ``(ii) are, as determined under subsection 
                        (d)(5)(A), within the least costly quartile of 
                        institutions within each class described in 
                        subsection (d)(5)(C);
                    ``(B) policies implemented to stem the increase in 
                tuition and fees and institutional costs;
                    ``(C) the extent to which room and board costs and 
                prices changed;
                    ``(D) the extent to which other services were 
                altered to affect tuition and fees;
                    ``(E) the extent to which the institution's 
                policies affected student body demographics and time to 
                completion;
                    ``(F) what, if any, operational factors played a 
                role in reducing tuition and fees;
                    ``(G) the extent to which academic quality was 
                affected, and how;
                    ``(H) the extent to which policies and practices 
                reducing costs and prices may be replicated from one 
                institution to another; and
                    ``(I) other information as necessary to determine 
                best practices in increasing the affordability of 
                postsecondary education.
            ``(2) Interim and final reports.--The Comptroller General 
        shall submit an interim and a final report regarding the 
        findings of the study required by paragraph (1) to the 
        appropriate authorizing committees of Congress. The interim 
        report shall be submitted not later than July 31, 2010, and the 
        final report shall be submitted not later than July 31, 2012.
    ``(g) Student Aid Recipient Survey.--
            ``(1) Survey required.--The Secretary shall conduct a 
        survey of student aid recipients under title IV on a regular 
        cycle and State-by-State basis, but not less than once every 4 
        years--
                    ``(A) to identify the population of students 
                receiving Federal student aid;
                    ``(B) to describe the income distribution and other 
                socioeconomic characteristics of federally aided 
                students;
                    ``(C) to describe the combinations of aid from 
                State, Federal, and private sources received by 
                students from all income groups;
                    ``(D) to describe the debt burden of educational 
                loan recipients and their capacity to repay their 
                education debts, and the impact of such debt burden on 
                career choices;
                    ``(E) to describe the role played by the price of 
                postsecondary education in the determination by 
                students of what institution to attend; and
                    ``(F) to describe how the increased costs of 
                textbooks and other instructional materials affects the 
                costs of postsecondary education to students.
            ``(2) Survey design.--The survey shall be representative of 
        full-time and part-time, undergraduate, graduate, and 
        professional and current and former students in all types of 
        institutions, and designed and administered in consultation 
        with the Congress and the postsecondary education community.
            ``(3) Dissemination.--The Secretary shall disseminate the 
        information resulting from the survey in both printed and 
        electronic form.
    ``(h) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.''.

SEC. 108. PERFORMANCE-BASED ORGANIZATION.

    Section 141 (20 U.S.C. 1018) is amended--
            (1) in subsection (a)(2)(B)--
                    (A) by inserting ``unit'' after ``to reduce the''; 
                and
                    (B) by inserting ``and, to the extent practicable, 
                the total costs of administering those programs'' after 
                ``those programs'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by striking ``Each year'' 
                and inserting ``Each fiscal year'';
                    (B) in paragraph (1)(B), by inserting ``secondary 
                markets, guaranty agencies,'' after ``lenders,''; and
                    (C) in paragraph (2)(B), by striking ``Chief 
                Financial Officer Act of 1990 and'' and inserting 
                ``Chief Financial Officers Act of 1990,'' and by 
                inserting before the period at the end the following: 
                ``, and other relevant statutes''; and
            (3) in subsection (f)(3)(A), by striking ``paragraph 
        (1)(A)'' and inserting ``paragraph (1)''.

                     TITLE II--TEACHER PREPARATION

SEC. 201. SENSE OF THE HOUSE OF REPRESENTATIVES.

    It is the sense of the House of Representatives that title II of 
the Higher Education Act of 1965 should be amended as provided in H.R. 
2211 as passed by the House of Representatives on July 9, 2003.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIBALLY CONTROLLED 
              COLLEGES AND UNIVERSITIES.

    (a) Eligible Institutions.--Subsection (b) of section 316 (20 
U.S.C. 1059c(b)) is amended to read as follows:
    ``(b) Definitions.--
            ``(1) Eligible institutions.--For purposes of this section, 
        Tribal Colleges and Universities are the following:
                    ``(A) any of the following institutions that 
                qualify for funding under the Tribally Controlled 
                College or University Assistance Act of 1978 or is 
                listed in Equity in Educational Land Grant Status Act 
                of 1994 (7 U.S.C. 301 note): Bay Mills Community 
                College; Blackfeet Community College; Cankdeska Cikana 
                Community College; Chief Dull Knife College; College of 
                Menominee Nation; Crownpoint Institute of Technology; 
                Dine College; D-Q University; Fond du Lac Tribal and 
                Community College; Fort Belknap College; Fort Berthold 
                Community College; Fort Peck Community College; Haskell 
                Indian Nations University; Institute of American Indian 
                and Alaska Native Culture and Arts Development; Lac 
                Courte Oreilles Ojibwa Community College; Leech Lake 
                Tribal College; Little Big Horn College; Little Priest 
                Tribal College; Nebraska Indian Community College; 
                Northwest Indian College; Oglala Lakota College; 
                Saginaw Chippewa Tribal College; Salish Kootenai 
                College; Si Tanka University--Eagle Butte Campus; Sinte 
                Gleska University; Sisseton Wahpeton Community College; 
                Sitting Bull College; Southwestern Indian Polytechnic 
                Institute; Stone Child College; Tohono O'Odham 
                Community College; Turtle Mountain Community College; 
                United Tribes Technical College; and White Earth Tribal 
                and Community College; and
                    ``(B) any other institution that meets the 
                definition of tribally controlled college or university 
                in section 2 of the Tribally Controlled College or 
                University Assistance Act of 1978, and meets all other 
                requirements of this section.
            ``(2) Indian.--The term `Indian' has the meaning given the 
        term in section 2 of the Tribally Controlled College or 
        University Assistance Act of 1978.''.
    (b) Distance Learning.--Subsection (c)(2) of such section is 
amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(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;'';
            (2) by striking ``and'' at the end of subparagraph (K);
            (3) by redesignating subparagraph (L) as subparagraph (M); 
        and
            (4) by inserting after subparagraph (K) the following new 
        subparagraph:
                    ``(L) developing or improving facilities for 
                Internet use or other distance learning academic 
                instruction capabilities; and''.
    (c) Application and Allotment.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Application and Allotment.--
            ``(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.--Any Tribal College or University 
        desiring to receive assistance under this section shall submit 
        an application to the Secretary at such time, and in such 
        manner, as the Secretary may reasonably require.
            ``(3) Allotments to institutions.--
                    ``(A) Allotment: pell grant basis.--From the amount 
                appropriated to carry out this section for any fiscal 
                year, the Secretary shall allot to each eligible 
                institution a sum which bears the same ratio to one-
                half that amount as the number of Pell Grant recipients 
                in attendance at such institution at the end of the 
                award year preceding the beginning of that fiscal year 
                bears to the total number of Pell Grant recipients at 
                all eligible institutions.
                    ``(B) Allotment: degree and certificate basis.--
                From the amount appropriated to carry out this section 
                for any fiscal year, the Secretary shall allot to each 
                eligible institution a sum which bears the same ratio 
                to one-half that amount as the number of degrees or 
                certificates awarded by such institution during the 
                preceding academic year bears to the total number of 
                degrees or certificates at all eligible institutions.
                    ``(C) Minimum grant.--Notwithstanding subparagraphs 
                (A) and (B), the amount allotted to each institution 
                under this section shall not be less than $400,000.
            ``(4) Special rules.--
                    ``(A) Concurrent funding.--For the purposes of this 
                part, no Tribal College or University that is eligible 
                for and receives funds under this section shall 
                concurrently receive funds under other provisions of 
                this part or part B.
                    ``(B) Exemption.--Section 313(d) shall not apply to 
                institutions that are eligible to receive funds under 
                this section.''.

SEC. 302. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    (a) Distance Learning.--Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) 
is amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(A) 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;'';
            (2) by striking ``and'' at the end of subparagraph (G);
            (3) by striking the period at the end of subparagraph (H) 
        and inserting ``; and''; and
            (4) by inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) development or improvement of facilities for 
                Internet use or other distance learning academic 
                instruction capabilities.''.
    (b) Endowment Funds.--Section 317(c) is further amended by adding 
at the end the following new paragraph:
            ``(3) Endowment funds.--
                    ``(A) In general.--An Alaska Native or Native 
                Hawaiian-serving 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), the institution shall provide to the 
                endowment fund from non-Federal funds an amount equal 
                to the Federal funds used in accordance with 
                subparagraph (A), for the establishment or increase of 
                the endowment fund.
                    ``(C) Applicability of other provisions.--The 
                provisions of part C regarding the establishment or 
                increase of an endowment fund, that the Secretary 
                determines are not inconsistent with this paragraph, 
                shall apply to funds used under subparagraph (A).''.
    (c) Application Process.--Section 317(d) is amended--
            (1) by adding at the end of paragraph (1) the following new 
        sentences: ``Each Alaska Native-serving institution and Native 
        Hawaiian-serving institution shall develop a 5-year plan for 
        improving the assistance provided to Alaska Native or Native 
        Hawaiian students. Such plan shall not be subject to approval 
        by the Secretary.''; and
            (2) in paragraph (2)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) an assurance that the institution has 
                developed a 5-year plan for serving Alaska Native or 
                Native Hawaiian students;
                    ``(B) a list of activities and other information 
                that are consistent with the institution's 5-year plan; 
                and''.

SEC. 303. GRANTS TO PART B INSTITUTIONS.

    (a) Use of Funds.--
            (1) Facilities and equipment.--
                    (A) Undergraduate institutions.--Paragraph (2) of 
                section 323(a) (20 U.S.C. 1062(a)) is amended to read 
                as follows:
            ``(2) 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) Graduate and professional schools.--Paragraph 
                (2) of section 326(c) is amended to read as follows:
            ``(2) 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;''.
            (2) Outreach and collaboration.--Paragraph (11) of section 
        323(a) is amended to read as follows:
            ``(11) Establishing community outreach programs and 
        collaborative partnerships between part B institutions and 
        local elementary or secondary schools. Such partnerships may 
        include mentoring, tutoring, or other instructional 
        opportunities that will boost student academic achievement and 
        assist elementary and secondary school students in developing 
        the academic skills and the interest to pursue postsecondary 
        education.''.
    (b) Technical Assistance.--Section 323 (20 U.S.C. 1062) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Technical Assistance.--
            ``(1) In general.--An institution may not use more than 2 
        percent of the grant funds provided under this part to secure 
        technical assistance services.
            ``(2) Technical assistance services.--Technical assistance 
        services may include assistance with enrollment management, 
        financial management, and strategic planning.
            ``(3) Report.--The institution shall report to the 
        Secretary on an annual basis, in such form as the Secretary 
        requires, on the use of funds under this subsection.''.
    (c) Distance Learning.--Section 323(a)(2) (20 U.S.C. 1062(a)(2)) is 
amended by inserting ``development or improvement of facilities for 
Internet use or other distance learning academic instruction 
capabilities and'' after ``including''.
    (d) Minimum Grants.--Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is 
amended by inserting before the period at the end the following: ``, 
except that, if the amount appropriated to carry out this part for any 
fiscal year exceeds the amount required to provide to each institution 
an amount equal to the total amount received by such institution under 
subsections (a), (b), and (c) for the preceding fiscal year, then the 
amount of such excess appropriation shall first be applied to increase 
the minimum allotment under this subsection to $750,000''.
    (e) Eligible Graduate or Professional Schools.--
            (1) General authority.--Section 326(a)(1) (20 U.S.C. 
        1063b(a)(1)) is amended--
                    (A) by inserting ``(A)'' after ``subsection (e) 
                that'';
                    (B) by inserting before the period at the end the 
                following: ``, (B) 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, and (C) according to such 
                an agency or association, is in good standing''.
            (2) Eligible institutions.--Section 326(e)(1) (20 U.S.C. 
        1063b(e)(1)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (Q);
                    (B) by striking the period at the end of 
                subparagraph (R) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(S) Alabama State University qualified graduate 
                program;
                    ``(T) Prairie View A&M University qualified 
                graduate program; and
                    ``(U) Coppin State University qualified graduate 
                program.''.
            (3) Conforming amendment.--Section 326(e)(3) (20 U.S.C. 
        1063b(e)(3)) is amended--
                    (A) by striking ``1998'' and inserting ``2004''; 
                and
                    (B) by striking ``(Q) and (R)'' and inserting 
                ``(S), (T), and (U)''.
    (f) Professional or Graduate Institutions.--Section 326(f) (20 
U.S.C. 1063b(f)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``$26,600,000'' and inserting 
                ``$55,500,000''; 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 ``$55,500,000, but not in 
                excess of $58,500,000''; and
                    (B) by striking ``subparagraphs (Q) and (R)'' and 
                inserting ``subparagraphs (S), (T), and (U)''; and
            (3) in paragraph (3)--
                    (A) by striking ``$28,600,000'' and inserting 
                ``$58,500,000''; and
                    (B) by striking ``(R)'' and inserting ``(U)''.
    (g) Hold Harmless.--Section 326(g) (20 U.S.C. 1063b(g)) is amended 
by striking ``1998'' and inserting ``2004''.

SEC. 304. TECHNICAL AMENDMENTS.

    (a) Amendments.--Title III is further amended--
            (1) in section 311(c) (20 U.S.C. 1057(c))--
                    (A) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (2) in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by 
        inserting ``which is'' before ``located'';
            (3) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by 
        redesignating subparagraphs (E) and (F) as subparagraphs (F) 
        and (G), respectively, and by inserting after subparagraph (D) 
        the following new subparagraph:
                    ``(E) which provides a program that is not less 
                than a 2-year educational program that is acceptable 
                for full credit toward a bachelor's degree;'';
            (4) in section 316(b)(3) (20 U.S.C. 1059c(b)(3)), by 
        striking ``give'' and inserting ``given'';
            (5) in section 316(c)(2) (20 U.S.C. 1059c(c)(2))--
                    (A) by redesignating subparagraphs (G) through (M) 
                (as redesignated by section 301(b)(2) of this Act) as 
                subparagraphs (H) through (N), respectively;
                    (B) by inserting after subparagraph (F) the 
                following:
                    ``(G) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents;''; and
                    (C) in subparagraph (N), as redesignated by 
                subparagraph (A), by striking ``subparagraphs (A) 
                through (K)'' and inserting ``subparagraphs (A) through 
                (M)'';
            (6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2))--
                    (A) in subparagraph (G), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (H), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(I) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents.'';
            (7) in section 323(a) (20 U.S.C. 1062(a))--
                    (A) by striking ``section 360(a)(2)'' and inserting 
                ``399(a)(2)'';
                    (B) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (C) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by 
        striking ``section 360(a)(2)(A)'' and inserting ``section 
        399(a)(2)(A)'';
            (9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the 
        matter preceding subparagraph (A), by inserting a colon after 
        ``the following'';
            (10) in section 327(b) (20 U.S.C. 1063c(b)), by striking 
        ``initial'';
            (11) in section 342(5)(C) (20 U.S.C. 1066a(5)(C))--
                    (A) by inserting a comma after ``equipment'' the 
                first place it appears; and
                    (B) by striking ``technology,,'' and inserting 
                ``technology,'';
            (12) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
        after the subsection designation the following: ``Sale of 
        Qualified Bonds.--'';
            (13) in section 351(a) (20 U.S.C. 1067a(a)), by striking 
        ``of 1979''; and
            (14) in section 396 (20 U.S.C. 1068e), by striking 
        ``section 360'' and inserting ``section 399''.
    (b) Repeal.--Section 1024 (20 U.S.C. 1135b-3), as transferred by 
section 301(a)(5) of the Higher Education Amendments of 1998 (Public 
Law 105-244; 112 Stat. 1636), is repealed.

SEC. 305. TITLE III AUTHORIZATIONS.

    Section 399(a) (20 U.S.C. 1068h(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2005'';
            (2) by striking ``4 succeeding fiscal years'' each place it 
        appears and inserting ``5 succeeding fiscal years'';
            (3) in paragraph (1)--
                    (A) by striking ``$10,000,000'' in subparagraph (B) 
                and inserting ``$23,800,000''; and
                    (B) by striking ``$5,000,000'' in subparagraph (C) 
                and inserting ``$11,000,000'';
            (4) in paragraph (2)--
                    (A) by striking ``$135,000,000'' in subparagraph 
                (A) and inserting ``$241,000,000''; and
                    (B) by striking ``$35,000,000'' in subparagraph (B) 
                and inserting ``$59,000,000''; and
            (5) in paragraph (4), by striking ``$110,000'' and 
        inserting ``$212,000''.

                      TITLE IV--STUDENT ASSISTANCE

                       PART A--GRANTS TO STUDENTS

SEC. 401. PELL GRANTS.

    (a) Extension of Authority.--Section 401(a) (20 U.S.C. 1070a(a)) is 
amended by striking ``2004'' and inserting ``2011''.
    (b) Direct Payment.--Section 401(a) (20 U.S.C. 1070a(a)) is further 
amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (c) Maximum Grant Extension.--Paragraph (2)(A) of section 401(b) 
(20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
    ``(2)(A) The amount of the Federal Pell Grant for a student 
eligible under this part shall be $5,800 for academic years 2005-2006 
through 2010-2011, less an amount equal to the amount determined to be 
the expected family contribution with respect to that student for that 
year.''.
    (d) Tuition Sensitivity.--Section 401(b) is further amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) through (8) as 
        paragraphs (3) through (7), respectively.
    (e) Multiple Grants.--Paragraph (5) of section 401(b) (as 
redesignated by subsection (d)(2)) is amended to read as follows:
            ``(5) Year-round pell grants.--
                    ``(A) In general.--The Secretary shall, for 
                students enrolled full time in a baccalaureate degree 
                program of study at an eligible institution, award such 
                students two Pell grants during a single award year to 
                permit such students to accelerate progress toward 
                their degree objectives by enrolling in academic 
                programs for 12 months rather than 9 months.
                    ``(B) Limitation.--The Secretary shall limit the 
                awarding of additional Pell grants under this paragraph 
                in a single award year to students attending 
                baccalaureate degree granting institutions that have a 
                graduation rate as reported by the Integrated 
                Postsecondary Education Data System for the 4 preceding 
                academic years of at least 30 percent.
                    ``(C) Evaluation.--The Secretary shall conduct an 
                evaluation of the program under this paragraph and 
                submit to the Congress an evaluation report no later 
                than October 1, 2010.
                    ``(D) Regulations required.--The Secretary shall 
                promulgate regulations implementing this paragraph.''.
    (f) Eligibility Period.--Section 401(c)(2) (20 U.S.C. 1070a(c)(2)) 
is amended by inserting ``, for not more than one academic year,'' 
after ``which are determined by the institution'' in the first 
sentence.
    (g) Pell Grants Plus: Achievement Grants for State Scholars 
Program.--
            (1) Amendment.--Subpart 1 of part A of title IV is amended 
        by inserting after section 401 (20 U.S.C. 1070a) the following 
        new section:

``SEC. 401A. PELL GRANTS PLUS: ACHIEVEMENT GRANTS FOR STATE SCHOLARS.

    ``(a) Grants Authorized.--From sums appropriated to carry out 
section 401, the Secretary shall establish a program to award Pell 
Grants Plus to students who--
            ``(1) have successfully completed a rigorous high school 
        program of study established by a State or local educational 
        agency in consultation with a State coalition assisted by the 
        Center for State Scholars;
            ``(2) are enrolled full-time in the first academic year of 
        undergraduate education, and have not been previously enrolled 
        in a program of undergraduate education; and
            ``(3) are eligible to receive Federal Pell Grants for the 
        year in which the grant is awarded.
    ``(b) Amount of Grants.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        amount of the grant awarded under this section shall be $1,000.
            ``(2) Assistance not to exceed cost of attendance.--A grant 
        awarded under this section to any student, in combination with 
        the Federal Pell Grant assistance and other student financial 
        assistance available to such student, may not exceed the 
        student's cost of attendance.
    ``(c) Selection of Recipients.--
            ``(1) Procedures established by regulation.--The Secretary 
        shall establish by regulation procedures for the determination 
        of eligibility of students for the grants awarded under this 
        section. Such procedures shall include measures to ensure that 
        eligibility is determined in a timely and accurate manner 
        consistent with the requirements of section 482 and the 
        submission of the financial aid form required by section 483.
            ``(2) Required information.--Each eligible student desiring 
        an award under this section shall submit at such time and in 
        such manner such information as the Secretary may reasonably 
        require.
            ``(3) Continuation of grant requirements.--In order for a 
        student to continue to be eligible to receive an award under 
        this section for the second year of undergraduate education, 
        the eligible student must--
                    ``(A) maintain eligibility to receive a Federal 
                Pell Grant for that year;
                    ``(B) obtain a grade point average of at least 3.0 
                (or the equivalent as determined under regulations 
                prescribed by the Secretary) for the first year of 
                undergraduate education; and
                    ``(C) be enrolled full-time and fulfill the 
                requirements for satisfactory progress described in 
                section 484(c).
    ``(d) Evaluation, and Reports.--The Secretary shall monitor the 
progress, retention, and completion rates of the students to whom 
awards are provided under this section. In doing so, the Secretary 
shall evaluate the impact of the Pell Grants Plus Program and report, 
not less than biennially, to the authorizing committees of the House of 
Representatives and the Senate.''.
            (2) Conforming amendment.--Chapter 3 of subpart 2 of part A 
        of title IV (20 U.S.C. 1070a-31 through 1070a-35) is repealed.

SEC. 402. TRIO PROGRAMS.

    (a) Duration of Grants.--
            (1) Amendment.--Section 402A(b)(2) (20 U.S.C. 1070a-
        11(b)(2)) is amended to read as follows:
            ``(2) Duration.--Grants or contracts awarded under this 
        chapter shall be awarded for a period of 5 years, except that--
                    ``(A) grants 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.''.
            (2) Transition to synchronous grant periods.--
        Notwithstanding section 402A(b)(2) of the Higher Education Act 
        of 1965 (as in effect both prior to and after the amendment 
        made by paragraph (1) of this subsection), the Secretary of 
        Education may continue an award made before the date of 
        enactment of this Act under section 402B, 402C, 402D, 402E, or 
        402F of such Act as necessary to permit all the awards made 
        under such a section to expire at the end of the same fiscal 
        year, and thereafter to expire at the end of 5 years as 
        provided in the amendment made by paragraph (1) of this 
        subsection.
    (b) Minimum Grants.--Section 402A(b)(3) (20 U.S.C. 1070a-11(b)(3)) 
is amended to read as follows:
            ``(3) Minimum grants.--Unless the institution or agency 
        requests a smaller amount, individual grants for programs 
        authorized under this chapter shall be no less than $200,000, 
        except that individual grants for programs authorized under 
        section 402G shall be no less than $170,000.''.
    (c) Prior Experience; Novice Applicants.--Section 402A(c)(2) (20 
U.S.C. 1070a-11(c)(2)) is amended--
            (1) by striking ``In making grants'' and inserting ``(A) 
        Subject to subparagraph (B), in making grants''; and
            (2) by adding at the end the following new subparagraph:
            ``(B) From the amount available under subsection (f) for a 
        program under this chapter (other than a program under section 
        402G or 402H) for any fiscal year in which the Secretary 
        conducts a competition for the award of grants or contracts 
        under such program, the Secretary shall reserve 10 percent of 
        such available amount for purposes of funding applications from 
        novice applicants. If the Secretary determines that there are 
        an insufficient number of qualified novice applicants to 
        utilize the amount so reserved, the Secretary shall restore the 
        unutilized remainder of the amount reserved for use by 
        applicants qualifying under subparagraph (A).''.
    (d) Application Status.--Section 402A(c) (20 U.S.C. 1070a-11(c)) is 
amended by striking paragraph (7).
    (e) Documentation of Status.--Section 402A(e) (20 U.S.C. 1070a-
11(e)) is amended by striking ``(g)(2)'' each place it appears in 
paragraphs (1) and (2) and inserting ``(g)(4)''.
    (f) Authorization of Appropriations.--Section 402A(f) (20 U.S.C. 
1070a-11(f)) is amended by striking ``$700,000,000 for fiscal year 
1999, and such sums as may be necessary for each of the 4 succeeding 
fiscal years'' and inserting ``$835,000,000 for fiscal year 2005 and 
such sums as may be necessary for each of the 5 succeeding fiscal 
years''.
    (g) Definition.--Section 402A(g) (20 U.S.C. 1070a-11(g)) is 
amended--
            (1) in paragraph (3), by striking ``by reason of such 
        individual's age'';
            (2) by redesignating paragraphs (1) through (4) as 
        paragraphs (3) through (6), respectively; and
            (3) by inserting before paragraph (3), as redesignated, the 
        following:
            ``(1) Different campus.--The term `different campus' means 
        an institutional site 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, with respect to whom 
        an entity seeks to serve through an application for funding 
        under this chapter, that--
                    ``(A) is separate and distinct from any other 
                population that the entity seeks to serve through an 
                application for funding under this chapter; or
                    ``(B) while sharing some of the same needs as 
                another population that the entity seeks to serve 
                through an application for funding under this chapter, 
                has distinct needs for specialized services.''.
    (h) Education and Counseling Services.--Chapter 1 of subpart 2 of 
part A of title IV is further amended--
            (1) in section 402B(b) (20 U.S.C. 1070a-12(b))--
                    (A) by redesignating paragraphs (3) through (10) as 
                paragraphs (4) through (11), respectively;
                    (B) by inserting after paragraph (2) the following:
            ``(3) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)''.
            (2) in section 402C (20 U.S.C. 1070a-13)--
                    (A) in subsection (b)--
                            (i) by redesignating paragraphs (2) through 
                        (12) as paragraphs (3) through (13), 
                        respectively;
                            (ii) by inserting after paragraph (1) the 
                        following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                            (iii) in paragraph (13), as redesignated by 
                        clause (i), by striking ``paragraphs (1) 
                        through (11)'' and inserting ``paragraphs (1) 
                        through (12)''; and
                    (B) in subsection (e), by striking ``subsection 
                (b)(10)'' and inserting ``subsection (b)(11)'';
            (3) in section 402D(b) (20 U.S.C. 1070a-14(b))--
                    (A) by redesignating paragraphs (2) through (10) as 
                paragraphs (3) through (11), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (4) in section 402E(b) (20 U.S.C. 1070a-15(b))--
                    (A) by redesignating paragraphs (7) and (8) as 
                paragraphs (8) and (9), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;'';
            (5) in section 402F(b) (20 U.S.C. 1070a-16(b)) --
                    (A) by redesignating paragraphs (4) through (10) as 
                paragraphs (5) through (11), respectively;
                    (B) by inserting after paragraph (3) the following:
            ``(4) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)''.
    (i) Maximum 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''.
    (j) Student Support Services.--Section 402D(d)(6) (20 U.S.C. 1070a-
14(d)(6)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) working with other entities that serve low-
                income working adults to increase access to and 
                successful progress in postsecondary education by low-
                income working adults seeking their first postsecondary 
                degree or certificate.''.
    (k) Postbaccalaureate Achievement Maximum Stipends.--Section 
402E(e)(1) (20 U.S.C. 1070a-15(e)(1)) is amended by striking ``$2,800'' 
and inserting ``$5,000''.
    (l) Educational Opportunity Centers: Application Approval.--Section 
402F(c) (20 U.S.C. 1070a-16(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) consider the extent to which the proposed project 
        would provide services to low-income working adults in the 
        region to be served, in order to increase access to 
        postsecondary education by low-income working adults.''.

SEC. 403. GEARUP.

    (a) Duration of Awards.--Section 404A(b) (20 U.S.C. 1070a-21(b)) is 
amended--
            (1) in paragraph (2)(B), by striking ``Higher Education 
        Amendments of 1998'' and inserting ``College Access and 
        Opportunity Act of 2004''; and
            (2) by adding at the end thereof the following new 
        paragraph:
            ``(3) Duration.--An award made by the Secretary under this 
        chapter to an eligible entity described in paragraph (1) or (2) 
        of subsection (c) shall be for the period of 6 years.''.
    (b) Continuing Eligibility.--Section 404A (20 U.S.C. 1070a-21) is 
amended by adding at the end the following new subsection:
    ``(d) Continuing Eligibility.--An eligible entity shall not cease 
to be an eligible entity upon the expiration of any grant under this 
chapter (including a continuation award).''.
    (c) Continuity of Service.--
            (1) Cohort approach.--Section 404B(g)(1)(B) (20 U.S.C. 
        1070a-22(g)(1)(B)) is amended by inserting ``and provide the 
        option of continued services through the student's first year 
        of attendance at an eligible institution of higher education'' 
        after ``grade level''.
            (2) Early intervention.--Section 404D (20 U.S.C. 1070a-24) 
        is amended--
                    (A) in subsection (b)(2)(A), by inserting ``and 
                students in the first year of attendance at an eligible 
                institution of higher education'' after ``grade 12''; 
                and
                    (B) in subsection (c), by inserting ``and may 
                consider students in their first year of attendance at 
                an eligible institution who is eligible'' after ``grade 
                12''.
    (d) 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''.
    (e) Education and Counseling Services.--Section 404D(b)(2)(A)(ii) 
(20 U.S.C. 1070a-24(b)(2)(A)(ii)) is amended by striking ``and academic 
counseling'' and inserting ``academic counseling, and financial 
literacy and economic literacy education or counseling''.
    (f) Reauthorization.--Section 404H (20 U.S.C. 1070a-28) is amended 
by striking ``$200,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``$300,000,000 for fiscal year 2005 and such sums as may be necessary 
for each of the 5 succeeding fiscal years''.

SEC. 404. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Authorization of Appropriations.--Section 413A(b)(1) (20 U.S.C. 
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 1999 
and such sums as may be necessary for the 4 succeeding fiscal years'' 
and inserting ``$770,500,000 for fiscal year 2005 and such sums as may 
be necessary for the 5 succeeding fiscal years''.
    (b) Phaseout of Allocation Based on Previous Allocations.--
            (1) Amendment.--Subsection (a) of section 413D (20 U.S.C. 
        1070b-3(a)) is amended to read as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 413A(b) for each fiscal year after fiscal 
        year 2006, the Secretary shall, subject to paragraph (2), first 
        allocate to each eligible institution an amount equal to the 
        following percentage of the amount such institution received 
        under subsection (a) of this section for fiscal year 2006 (as 
        such subsection was in effect with respect to allocations for 
        such fiscal year):
                    ``(A) 80 percent for fiscal years 2007 and 2008;
                    ``(B) 60 percent for fiscal years 2009 and 2010;
                    ``(C) 40 percent for fiscal years 2011 and 2012;
                    ``(D) 20 percent for fiscal years 2013 and 2014; 
                and
                    ``(E) 0 percent for fiscal year 2015 and any 
                succeeding fiscal year.
            ``(2) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).
            ``(3) Additional allocations for certain institutions.----
                    ``(A) Allocations permitted.--Notwithstanding any 
                other provision of this section, the Secretary may 
                allocate an amount equal to not more than 10 percent of 
                the amount by which the amount appropriated in any 
                fiscal year to carry out this subpart exceeds 
                $700,000,000 among eligible institutions described in 
                subparagraph (B).
                    ``(B) Eligible institutions.--For purposes of 
                subparagraph (A)--
                            ``(i) an eligible institution that is a 4-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 4 calendar years of the first 
                        day of enrollment; and
                            ``(ii) an eligible institution that is a 2-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 2 calendar years of the first 
                        day of enrollment.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any amounts appropriated under 
        section 413A(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1070b(b)) for fiscal year 2007 or any succeeding fiscal year.
    (c) Books and Supplies.--Section 413D(c)(3)(D) (20 U.S.C. 1070-
3(c)(3)(D)) is amended by striking ``$450'' and inserting ``$600''.

SEC. 405. LEAP.

    Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 406. 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 ``supportive services'';
            (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)(1)(B), by striking clause (i) and 
        inserting the following:
                    ``(i) personal, academic, career, and economic 
                education or personal finance counseling as an ongoing 
                part of the program;'';
            (7) in subsection (c)(2)(B), by inserting ``(including 
        mentoring and guidance of such students)'' after ``services'';
            (8) 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
            (9) 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 2005 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 2005 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''.

SEC. 407. BYRD SCHOLARSHIP.

    Section 419K (20 U.S.C. 1070d-41) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 408. CHILD CARE ACCESS.

     Section 419N(g) (20 U.S.C. 1070e(g)) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 409. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

    (a) Repeal.--Subpart 8 of part A of title IV (20 U.S.C. 1070f--
1070f-6) is repealed.
    (b) Conforming Amendment.--Section 400(b) (20 U.S.C. 1070(b)) is 
amended by striking ``through 8'' and inserting ``through 7''.

SEC. 410. TECHNICAL AMENDMENTS.

    Part A of title IV is further amended as follows:
            (1) Section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)) is 
        amended by inserting ``and'' after the semicolon at the end 
        thereof.
            (2) Section 419D(d) (20 U.S.C. 1070d-34(d)) is amended by 
        striking ``Public Law 95-1134'' and inserting ``Public Law 95-
        134''.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. REAUTHORIZATION OF FEDERAL FAMILY EDUCATION LOAN PROGRAM.

    (a) Authorization of Appropriations.--Section 421(b)(5) (20 U.S.C. 
1071(b)(5)) is amended by striking ``administrative cost allowance'' 
and inserting ``loan processing and issuance fee''.
    (b) Extension of Authority.--
            (1) Federal insurance limitations.--Section 424(a) (20 
        U.S.C. 1074(a)) is amended--
                    (A) by striking ``2004'' and inserting ``2011''; 
                and
                    (B) by striking ``2008'' and inserting ``2015''.
            (2) Guaranteed loans.--Section 428(a)(5) (20 U.S.C. 
        1078(a)(5)) is amended--
                    (A) by striking ``2004'' and inserting ``2011''; 
                and
                    (B) by striking ``2008'' and inserting ``2015''.
            (3) Consolidation loans.--Section 428C(e) (20 U.S.C. 1078-
        3(e)) is amended by striking ``2004'' and inserting ``2011''.

SEC. 422. LOAN LIMITS.

    (a) Federal Insurance Limits.--Section 425(a)(1)(A) (20 U.S.C. 
1075(a)(1)(A)) is amended--
            (1) in clause (i)(I), by striking ``$2,625'' and inserting 
        ``$3,500''; and
            (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
        ``$4,500''.
    (b) Guarantee Limits.--Section 428(b)(1)(A) (20 U.S.C. 
1078(b)(1)(A)) is amended--
            (1) in clause (i)(I), by striking ``$2,625'' and inserting 
        ``$3,500''; and
            (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
        ``$4,500''.
    (c) Counting of Consolidation Loans Against Limits.--Section 
428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding at the 
end the following new clause:
            ``(ii) Loans made under this section shall, to the extent 
        used to discharge loans made under this title, be counted 
        against the applicable limitations on aggregate indebtedness 
        contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, 
        and 464(a)(2)(B).''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to any loan made, insured, or guaranteed under part 
B or part D of title IV of the Higher Education Act of 1965 for which 
the first disbursement of principal is made on or after July 1, 2006.

SEC. 423. INTEREST RATES AND SPECIAL ALLOWANCES.

    (a) FFEL Interest Rate.--Section 427A (20 U.S.C. 1077a(k)) is 
amended--
            (1) in subsection (k)--
                    (A) by striking ``, and Before July 1, 2006'' in 
                the heading of such subsection; and
                    (B) by striking ``, and before July 1, 2006,'' each 
                place it appears other than paragraph (4);
            (2) by striking subsection (l); and
            (3) by redesignating subsections (m) and (n) as subsections 
        (l) and (m), respectively.
    (b) Direct Loan Interest Rates.--Section 455(b) (20 U.S.C. 
1087e(b)) is amended--
            (1) in paragraph (6)--
                    (A) by striking ``, and before July 1, 2006'' in 
                the heading of such paragraph; and
                    (B) by striking ``, and before July 1, 2006,'' each 
                place it appears other than subparagraph (D);
            (2) by striking paragraph (7); and
            (3) by redesignating paragraphs (8) and (9) as paragraphs 
        (7) and (8), respectively.
    (c) Consolidation Loans.--
            (1) FFEL consolidation loans.--Section 427A(k) (20 U.S.C. 
        1077a(k)) is further amended--
                    (A) by redesignating paragraph (5) as paragraph 
                (6); and
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) Variable rate for consolidation loans.--With respect 
        to any consolidation loan under section 428C for which the 
        application is received by an eligible lender on or after July 
        1, 2006, the applicable rate of interest shall, during any 12-
        month period beginning on July 1 and ending on June 30, be 
        determined on the preceding June 1 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, and the 
        rate determined under paragraph (3) shall apply in lieu of the 
        rate determined under this paragraph in the case of any such 
        consolidation loan that is used to repay loans each of which 
        was made under section 428B or was a Federal Direct PLUS Loan 
        (or both).''.
            (2) Direct consolidation loans.--Section 455(b)(6) (20 
        U.S.C. 1087e(b)(6)) is further amended--
                    (A) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (B) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) Variable rate for consolidation loans.--With 
                respect to any Federal Direct Consolidation loan for 
                which the application is received on or after July 1, 
                2006, the applicable rate of interest shall, during any 
                12-month period beginning on July 1 and ending on June 
                30, be determined on the preceding June 1 and be equal 
                to--
                            ``(i) the bond equivalent rate of 91-day 
                        Treasury bills auctioned at the final auction 
                        held prior to such June 1; plus
                            ``(ii) 2.3 percent,
                except that such rate shall not exceed 8.25 percent, 
                and the rate determined under subparagraph (C) shall 
                apply in lieu of the rate determined under this 
                subparagraph in the case of any such consolidation loan 
                that is used to repay loans each of which was made 
                under section 428B or was a Federal Direct PLUS Loan 
                (or both).''.
    (d) Consolidation Loan Conforming Amendment.--Section 
428C(c)(1)(A)(ii) (20 U.S.C. 1078-3(c)(1)(A)(ii)) is amended by 
striking ``section 427A(l)(3)'' and inserting ``section 427A(k)(5)''.
    (e) Conforming Amendments for Special Allowances.--
            (1) Amendment.--Subparagraph (I) of section 438(b)(2) (20 
        U.S.C. 1087-1(b)(2)) is amended--
                    (A) by striking clause (ii) and inserting the 
                following:
                            ``(ii) In school and grace period.--In the 
                        case of any loan for which the first 
                        disbursement is made on or after January 1, 
                        2000, and for which the applicable interest 
                        rate is described in section 427A(k)(2), clause 
                        (i)(III) of this subparagraph shall be applied 
                        by substituting `1.74 percent' for `2.34 
                        percent'.'';
                    (B) in clause (iii)--
                            (i) by striking ``or (l)(2)''; and
                            (ii) by striking ``, subject to clause (v) 
                        of this subparagraph'';
                    (C) in clause (iv)--
                            (i) by striking ``or (l)(3)'' and inserting 
                        ``or (k)(5)''; and
                            (ii) by striking ``, subject to clause (vi) 
                        of this subparagraph''; and
                    (D) by striking clauses (v), (vi), and (vii) and 
                inserting the following:
                            ``(v) Recapture of excess interest.--
                                    ``(I) Excess credited.--With 
                                respect to a loan on which the 
                                applicable interest rate is determined 
                                under section 427A(k) and for which the 
                                first disbursement of principal is made 
                                on or after July 1, 2005, if the 
                                applicable interest rate for any 3-
                                month period exceeds the special 
                                allowance rate applicable to such loan 
                                under this subparagraph for such 
                                period, then an adjustment shall be 
                                made by calculating the excess interest 
                                in the amount computed under subclause 
                                (II) of this clause, and by crediting 
                                the excess interest to the Government 
                                not less often than annually.
                                    ``(II) Calculation of excess.--The 
                                amount of any adjustment of interest on 
                                a loan to be made under this subsection 
                                for any quarter shall be equal to--
                                            ``(aa) the applicable 
                                        interest rate minus the special 
                                        allowance rate determined under 
                                        this subparagraph; multiplied 
                                        by
                                            ``(bb) the average daily 
                                        principal balance of the loan 
                                        (not including unearned 
                                        interest added to principal) 
                                        during such calendar quarter; 
                                        divided by
                                            ``(cc) four.''.
            (2) Effective date.--The amendments made by this subsection 
        shall not apply with respect to any special allowance payment 
        made under section 438 of the Higher Education Act of 1965 (20 
        U.S.C 1087-1) before July 1, 2005.
    (f) Special Allowance for Loans From the Proceeds of Tax Exempt 
Issues.--Section 438(b)(2)(B) (20 U.S.C. 1087-1(b)(2)(B)) is amended--
            (1) in clause (i), by striking ``this division'' and 
        inserting ``this clause'';
            (2) in clause (ii), by striking ``division (i) of this 
        subparagraph'' and inserting ``clause (i) of this 
        subparagraph'';
            (3) in clause (iv), by inserting ``or refunded after May 5, 
        2004,'' after ``October 1, 1993,''; and
            (4) by adding at the end the following new clause:
            ``(v) Notwithstanding clauses (i) and (ii), the quarterly 
        rate of the special allowance shall be the rate determined 
        under subparagraph (A), (E), (F), (G), (H), or (I) of this 
        paragraph, or paragraph (4), as the case may be, for a holder 
        of loans that--
                    ``(I) were made or purchased with funds--
                            ``(aa) obtained from the issuance of 
                        obligations the income from which is excluded 
                        from gross income under the Internal Revenue 
                        Code of 1986 and which obligations were 
                        originally issued before October 1, 1993; or
                            ``(bb) obtained from collections or default 
                        reimbursements on, or interests or other income 
                        pertaining to, eligible loans made or purchased 
                        with funds described in division (aa), or from 
                        income on the investment of such funds; and
                    ``(II) were--
                            ``(aa) financed by such an obligation that 
                        has matured, or been retired or defeased;
                            ``(bb) refinanced after May 5, 2004, with 
                        funds obtained from a source other than funds 
                        described in subclause (I) of this clause; or
                            ``(cc) sold or transferred to any other 
                        holder.''.

SEC. 424. ADDITIONAL LOAN TERMS AND CONDITIONS.

    (a) Disbursement.--Section 428(b)(1)(N) (20 U.S.C. 
1078(b)(1)(N)(ii)) is amended--
            (1) by striking ``or'' at the end of clause (i); and
            (2) by striking clause (ii) and inserting the following:
                            ``(ii) in the case of a student who is 
                        studying outside the United States in a program 
                        of study abroad that is approved for credit by 
                        the home institution at which such student is 
                        enrolled, are, at the request of the student, 
                        disbursed directly to the student by the means 
                        described in clause (i), unless such student 
                        requests that the check be endorsed, or the 
                        funds transfer authorized, pursuant to an 
                        authorized power-of-attorney; or
                            ``(iii) in the case of a student who is 
                        studying outside the United States in a program 
                        of study at an eligible foreign institution, 
                        are, at the request of the foreign institution, 
                        disbursed directly to the student by the means 
                        described in clause (i).''.
    (b) Repayment Plans.--
            (1) FFEL loans.--Section 428(b)(9)(A) (20 U.S.C. 
        1078(b)(9)(A)) is amended--
                    (A) by inserting before the semicolon at the end of 
                clause (ii) the following: ``, and the Secretary may 
                not restrict the proportions or ratios by which such 
                payments may be graduated with the informed agreement 
                of the borrower'';
                    (B) by striking ``and'' at the end of clause (iii);
                    (C) by redesignating clause (iv) as clause (v); and
                    (D) by inserting after clause (iii) the following 
                new clause:
                            ``(iv) a delayed repayment plan under which 
                        the borrower makes scheduled payments for not 
                        more than 2 years that are annually not less 
                        than the amount of interest due or $300, 
                        whichever is greater, and then makes payments 
                        in accordance with clause (i), (ii), or (iii); 
                        and''.
            (2) Direct loans.--Section 455(d)(1) (20 U.S.C. 
        1087e(d)(1)) is amended--
                    (A) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (B) by striking subparagraphs (A), (B), and (C) and 
                inserting the following:
                    ``(A) a standard repayment plan, consistent with 
                subsection (a)(1) of this section and with section 
                428(b)(9)(A)(i);
                    ``(B) a graduated repayment plan, consistent with 
                section 428(b)(9)(A)(ii);
                    ``(C) an extended repayment plan, consistent with 
                section 428(b)(9)(A)(iv), except that the borrower 
                shall annually repay a minimum amount determined by the 
                Secretary in accordance with section 428(b)(1)(L);
                    ``(D) a delayed repayment plan under which the 
                borrower makes scheduled payments for not more than 2 
                years that are annually not less than the amount of 
                interest due or $300, whichever is greater, and then 
                makes payments in accordance with subparagraph (A), 
                (B), or (C); and''.
    (c) Origination Fees.--
            (1) Amendments.--Paragraph (2) of section 438(c) (20 U.S.C. 
        1087-1(c)) is amended--
                    (A) by striking the designating and heading of such 
                paragraph and inserting the following:
            ``(2) Amount of origination fees.--
                    ``(A) In general.--''; and
                    (B) by adding at the end the following new 
                subparagraphs:
                    ``(B) Subsequent reductions.--Subparagraph (A) 
                shall be applied to loans made under this part other 
                than loans made under sections 428C and 439(o)--
                            ``(i) by substituting `2.0 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2006, and before July 1, 2008;
                            ``(ii) by substituting `1.5 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2008, and before July 1, 2010; 
                        and
                            ``(iii) by substituting `1.0 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2010.''.
            (2) Conforming amendment to direct loan program.--
        Subsection (c) of section 455 (20 U.S.C. 1087e(c)) is amended 
        to read as follows:
    ``(c) Loan Fee.--
            ``(1) In general.--The Secretary shall charge the borrower 
        of a loan made under this part an origination fee of 4.0 
        percent of the principal amount of loan.
            ``(2) Subsequent reductions.--Paragraph (1) shall be 
        applied to loans made under this part other than consolidation 
        loans and PLUS loans--
                    ``(A) by substituting `2.0 percent' for `4.0 
                percent' with respect to loans for which the first 
                disbursement of principal is made on or after July 1, 
                2006, and before July 1, 2008;
                    ``(B) by substituting `1.5 percent' for `4.0 
                percent' with respect to loans for which the first 
                disbursement of principal is made on or after July 1, 
                2008, and before July 1, 2010; and
                    ``(C) by substituting `1.0 percent' for `4.0 
                percent' with respect to loans for which the first 
                disbursement of principal is made on or after July 1, 
                2010.''.

SEC. 425. CONSOLIDATION LOAN CHANGES.

    (a) Amendments.--Section 428C (20 U.S.C. 1078-3) is amended--
            (1) in subsection (a)(3), by striking subparagraph (C); and
            (2) in subsection (b)(1)--
                    (A) by striking everything after ``under this 
                section'' the first place it appears in subparagraph 
                (A) and inserting the following: ``and that, if all the 
                borrower's loans under this part are held by a single 
                holder, the borrower has notified such holder that the 
                borrower is seeking to obtain a consolidation loan 
                under this section;'';
                    (B) by striking ``(i) which'' and all that follows 
                through ``and (ii)'' in subparagraph (C);
                    (C) by striking ``and'' at the end of subparagraph 
                (E);
                    (D) by redesignating subparagraph (F) as 
                subparagraph (G); and
                    (E) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) that the lender of the consolidation loan 
                shall, upon application for such loan, provide the 
                borrower with a clear and conspicuous notice of at 
                least the following information:
                            ``(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 
                        loan forgiveness, cancellation, and deferment;
                            ``(iii) the ability for the borrower to 
                        prepay the loan, pay on a shorter schedule, and 
                        to change repayment plans, and that borrower 
                        benefit programs may vary among different loan 
                        holders;
                            ``(iv) the tax benefits for which borrowers 
                        may be eligible;
                            ``(v) the consequences of default; and
                            ``(vi) that by making the application the 
                        applicant is not obligated to agree to take the 
                        consolidation loan; and''.
    (b) Effective Date for Single Holder Amendment.--The amendment made 
by subsection (a)(2)(A) shall apply with respect to any loan made under 
section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) for 
which the application is received by an eligible lender on or after 
July 1, 2006.
    (c) Conforming Amendments to Direct Loan Program.--
            (1) Parallel terms, conditions, benefits, and amounts.--
        Section 455(a)(1) (20 U.S.C. 1087e(a)(1)) is amended by 
        inserting ``428C,'' after ``428B,''.
            (2) Disclosure.--Section 455(g) (20 U.S.C. 1087e(g)) is 
        amended by adding at the end the following new sentences: ``The 
        Secretary, upon application for such a loan, shall comply with 
        the requirements applicable to a lender under 428C(b)(1)(F).''

SEC. 426. UNSUBSIDIZED STAFFORD LOANS.

    (a) Amendment.--Section 428H(d)(2)(C) (20 U.S.C. 1078-8(d)(2)(C)) 
is amended by striking ``$10,000'' and inserting ``$12,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to loans for which the first disbursement of principal is made on 
or after July 1, 2006.

SEC. 427. TEACHER RECRUITMENT AND RETENTION.

    (a) Increased Qualified Loan Amounts.--
            (1) FFEL loans.--Section 428J(c) (20 U.S.C. 1078-10(c)) is 
        amended by adding at the end the following new paragraph:
            ``(3) Increased amounts for teachers in mathematics, 
        science, or special education, and reading specialists.--
                    ``(A) Service qualifying for increased amounts.--
                Notwithstanding the amount specified in paragraph (1), 
                the aggregate amount that the Secretary shall repay 
                under this section shall not be more than $17,500 in 
                the case of--
                            ``(i) a secondary school teacher--
                                    ``(I) who meets the requirements of 
                                subsection (b), subject to subparagraph 
                                (D) of this paragraph; and
                                    ``(II) whose qualifying employment 
                                for purposes of such subsection has 
                                been teaching mathematics or science on 
                                a full-time basis;
                            ``(ii) an elementary or secondary school 
                        teacher--
                                    ``(I) who meets the requirements of 
                                subsection (b), subject to subparagraph 
                                (D) of this paragraph;
                                    ``(II) whose qualifying employment 
                                for purposes of such subsection has 
                                been as a special education teacher 
                                whose primary responsibility is to 
                                provide special education to children 
                                with disabilities (as those terms are 
                                defined in section 602 of the 
                                Individuals with Disabilities Act); and
                                    ``(III) who, as certified by the 
                                chief administrative officer of the 
                                public or nonprofit private elementary 
                                or secondary school in which the 
                                borrower is employed, is teaching 
                                children with disabilities that 
                                correspond with the borrower's special 
                                education training and has demonstrated 
                                knowledge and teaching skills in the 
                                content areas of the elementary or 
                                secondary school curriculum that the 
                                borrower is teaching; and
                            ``(iii) an elementary or secondary school 
                        teacher who primarily teaches reading and--
                                    ``(I) who meets the requirements of 
                                subsection (b), subject to subparagraph 
                                (D) of this paragraph;
                                    ``(II) who has obtained a separate 
                                reading instruction credential from the 
                                State in which the teacher is employed; 
                                and
                                    ``(III) who is certified by the 
                                chief administrative officer of the 
                                public or nonprofit private elementary 
                                or secondary school in which the 
                                borrower is employed to teach reading--
                                            ``(aa) as being proficient 
                                        in teaching the essential 
                                        components of reading 
                                        instruction as defined in 
                                        section 1208 of the Elementary 
                                        and Secondary Education Act of 
                                        1965; and
                                            ``(bb) as having such 
                                        credential.
                    ``(B) Accelerated payment.--Notwithstanding the 
                requirements of subsection (b)(1) and paragraph (1) of 
                this subsection that 5 consecutive complete years of 
                service have been completed prior to the receipt of 
                loan forgiveness, in the case of service described in 
                subparagraph (A) of this paragraph, the Secretary shall 
                repay a portion of a borrower's loan obligation 
                outstanding at the commencement of the qualifying 
                service under this subsection, not to exceed a total of 
                $17,500, in the following increments:
                            ``(i) up to $1,750, or 10 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the second year of such 
                        service;
                            ``(ii) up to $2,625, or 15 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the third year of such 
                        service;
                            ``(iii) up to $4,375, or 25 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the fourth year of such 
                        service; and
                            ``(iv) up to $8,750, or 50 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the fifth year of such 
                        service.
                    ``(C) Promise to complete service required for 
                accelerated payment.--Any borrower who receives 
                accelerated payment under this paragraph shall enter 
                into an agreement to continue in the qualifying service 
                for not less than 5 consecutive complete school years, 
                or, upon a failure to complete such 5 years, to repay 
                the United States, in accordance with regulations 
                prescribed by the Secretary, the amount of the loans 
                repaid by the Secretary under this paragraph, together 
                with interest thereon and, to the extent required in 
                such regulations, the reasonable costs of collection. 
                Such regulations may provide for waiver by the 
                Secretary of such repayment obligations upon proof of 
                economic hardship as specified in such regulations.
                    ``(D) Higher poverty enrollment required.--In order 
                to qualify for an increased repayment amount under this 
                paragraph, section 465(a)(2)(A) shall, for purposes of 
                subsection (b)(1)(A) of this section, be applied by 
                substituting `40 percent of the total enrollment' for 
                `30 percent of the total enrollment'.''.
            (2) Direct loans.--Section 460(c) (20 U.S.C. 1087j(c)) is 
        amended by adding at the end the following new paragraph:
            ``(3) Increased amounts for teachers in mathematics, 
        science, or special education, and reading specialists.--
                    ``(A) Service qualifying for increased amounts.--
                Notwithstanding the amount specified in paragraph (1), 
                the aggregate amount that the Secretary shall repay 
                under this section shall not be more than $17,500 in 
                the case of--
                            ``(i) a secondary school teacher--
                                    ``(I) who meets the requirements of 
                                subsection (b)(1), subject to 
                                subparagraph (D) of this paragraph; and
                                    ``(II) whose qualifying employment 
                                for purposes of such subsection has 
                                been teaching mathematics or science on 
                                a full-time basis;
                            ``(ii) an elementary or secondary school 
                        teacher--
                                    ``(I) who meets the requirements of 
                                subsection (b)(1), subject to 
                                subparagraph (D) of this paragraph;
                                    ``(II) whose qualifying employment 
                                for purposes of such subsection has 
                                been as a special education teacher 
                                whose primary responsibility is to 
                                provide special education to children 
                                with disabilities (as those terms are 
                                defined in section 602 of the 
                                Individuals with Disabilities Act); and
                                    ``(III) who, as certified by the 
                                chief administrative officer of the 
                                public or nonprofit private elementary 
                                or secondary school in which the 
                                borrower is employed, is teaching 
                                children with disabilities that 
                                correspond with the borrower's special 
                                education training and has demonstrated 
                                knowledge and teaching skills in the 
                                content areas of the elementary or 
                                secondary school curriculum that the 
                                borrower is teaching; and
                            ``(iii) an elementary or secondary school 
                        teacher who primarily teaches reading and--
                                    ``(I) who meets the requirements of 
                                subsection (b), subject to subparagraph 
                                (D) of this paragraph;
                                    ``(II) who has obtained a separate 
                                reading instruction credential from the 
                                State in which the teacher is employed; 
                                and
                                    ``(III) who is certified by the 
                                chief administrative officer of the 
                                public or nonprofit private elementary 
                                or secondary school in which the 
                                borrower is employed to teach reading--
                                            ``(aa) as being proficient 
                                        in teaching the essential 
                                        components of reading 
                                        instruction as defined in 
                                        section 1208 of the Elementary 
                                        and Secondary Education Act of 
                                        1965; and
                                            ``(bb) as having such 
                                        credential.
                    ``(B) Accelerated payment.--Notwithstanding the 
                requirements of subsection (b)(1)(A) and paragraph (1) 
                of this subsection that 5 consecutive complete years of 
                service have been completed prior to the receipt of 
                loan forgiveness, in the case of service described in 
                subparagraph (A) of this paragraph, the Secretary shall 
                repay a portion of a borrower's loan obligation 
                outstanding at the commencement of the qualifying 
                service under this subsection, not to exceed a total of 
                $17,500, in the following increments:
                            ``(i) up to $1,750, or 10 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the second year of such 
                        service;
                            ``(ii) up to $2,625, or 15 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the third year of such 
                        service;
                            ``(iii) up to $4,375, or 25 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the fourth year of such 
                        service; and
                            ``(iv) up to $8,750, or 50 percent of such 
                        outstanding loan obligation, whichever is less, 
                        at the completion of the fifth year of such 
                        service.
                    ``(C) Promise to complete service required for 
                accelerated payment.--Any borrower who receives 
                accelerated payment under this paragraph shall enter 
                into an agreement to continue in the qualifying service 
                for not less than 5 consecutive complete school years, 
                or, upon a failure to complete such 5 years, to repay 
                the United States, in accordance with regulations 
                prescribed by the Secretary, the amount of the loans 
                repaid by the Secretary under this paragraph, together 
                with interest thereon and, to the extent required in 
                such regulations, the reasonable costs of collection. 
                Such regulations may provide for waiver by the 
                Secretary of such repayment obligations upon proof of 
                economic hardship as specified in such regulations.
                    ``(D) Higher poverty enrollment required.--In order 
                to qualify for an increased repayment amount under this 
                paragraph, section 465(a)(2)(A) shall, for purposes of 
                subsection (b)(1)(A)(i) of this section, be applied by 
                substituting `40 percent of the total enrollment' for 
                `30 percent of the total enrollment'.''.
    (b) Implementing Highly Qualified Teacher Requirements.--
            (1) Amendments.--
                    (A) FFEL loans.--Section 428J(b)(1) (20 U.S.C. 
                1078-10(b)(1)) is amended--
                            (i) by inserting ``and'' after the 
                        semicolon at the end of subparagraph (A); and
                            (ii) by striking subparagraphs (B) and (C) 
                        and inserting the following:
                    ``(B) if employed as an elementary or secondary 
                school teacher, is highly qualified as defined in 
                section 9101(23) of the Elementary Secondary Education 
                Act of 1965; and''.
                    (B) Direct loans.--Section 460(b)(1)(A) (20 U.S.C. 
                1087j(b)(1)(A)) is amended--
                            (i) by inserting ``and'' after the 
                        semicolon at the end of clause (i); and
                            (ii) by striking clauses (ii) and (iii) and 
                        inserting the following:
                            ``(ii) if employed as an elementary or 
                        secondary school teacher, is highly qualified 
                        as defined in section 9101(23) of the 
                        Elementary Secondary Education Act of 1965; 
                        and''.
            (2) Transition rule.--
                    (A) Rule.--The amendments made by paragraph (1) of 
                this subsection to sections 428J(b)(1) and 460(b)(1)(A) 
                of the Higher Education Act of 1965 shall not be 
                applied to disqualify any individual who, before the 
                date of enactment of this Act, commenced service that 
                met and continues to meet the requirements of such 
                sections as in effect before such date of enactment.
                    (B) Rule not applicable to increased qualified loan 
                amounts.--Subparagraph (A) of this paragraph shall not 
                apply for purposes of obtaining increased qualified 
                loan amounts under sections 428J(b)(3) and 460(b)(3) of 
                the Higher Education Act of 1965 as added by subsection 
                (a) of this section.
    (c) Information on Benefits to Rural School Districts.--The 
Secretary shall--
            (1) notify local educational agencies eligible to 
        participate in the Small Rural Achievement Program authorized 
        under subpart 1 of part B of title VI of the Elementary and 
        Secondary Education Act of 1965 of the benefits available under 
        the amendments made by this section; and
            (2) encourage such agencies to notify their teachers of 
        such benefits.

SEC. 428. ADDITIONAL ADMINISTRATIVE PROVISIONS.

    (a) Treatment of Exempt Claims.--
            (1) Insurance coverage.--Section 428(b)(1)(G) (20 U.S.C. 
        1078(b)(1)(G)) is amended by inserting before the semicolon at 
        the end the following: ``and 100 percent of the unpaid 
        principal amount of exempt claims as defined in subsection 
        (c)(1)(G)''.
            (2) Treatment.--Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is 
        amended--
                    (A) by redesignating subparagraph (G) as 
                subparagraph (H), and moving such subparagraph 2 em 
                spaces to the left; and
                    (B) by inserting after subparagraph (F) the 
                following new subparagraph:
            ``(G)(i) Notwithstanding any other provisions of this 
        section, in the case of exempt claims, the Secretary shall 
        apply the provisions of--
                    ``(I) the fourth sentence of subparagraph (A) by 
                substituting `100 percent' for `95 percent';
                    ``(II) subparagraph (B)(i) by substituting `100 
                percent' for `85 percent'; and
                    ``(III) subparagraph (B)(ii) by substituting `100 
                percent' for `75 percent'.
            ``(ii) For purposes of clause (i) of this subparagraph, the 
        term `exempt claims' means claims with respect to loans for 
        which it is determined that the borrower (or the student on 
        whose behalf a parent has borrowed), without the lender's or 
        the institution's knowledge at the time the loan was made, 
        provided false or erroneous information or took actions that 
        caused the borrower or the student to be ineligible for all or 
        a portion of the loan or for interest benefits thereon.''.
    (b) Documentation of Forbearance Agreements.--Section 428(c) (20 
U.S.C. 1078(c)) is further amended--
            (1) in paragraph (3)(A)(i), by striking ``in writing''; and
            (2) by adding at the end the following new paragraph:
            ``(10) Documentation of forbearance agreements.--For the 
        purposes of paragraph (3), the terms of forbearance agreed to 
        by the parties shall be documented by confirming the agreement 
        of the borrower by notice to the borrower from the lender, and 
        by recording the terms in the borrower's file.''.
    (c) Voluntary Flexible Agreements.--Section 428A (20 U.S.C. 1078-1) 
is amended--
            (1) in subsection (a)(1)(B), by striking ``unless the 
        Secretary'' and all that follows through ``designated 
        guarantor'';
            (2) by striking paragraph (2) of subsection (a);
            (3) in paragraph (4)(B) of such subsection, by striking 
        ``and any waivers provided to other guaranty agencies under 
        paragraph (2)'';
            (4) by redesignating paragraphs (3) and (4) of subsection 
        (a) as paragraphs (2) and (3), respectively; and
            (5) by striking paragraph (3) of subsection (c) and 
        inserting the following:
            ``(3) Notice to interested parties.--Once the Secretary 
        reaches a tentative agreement in principle under this section, 
        the Secretary shall publish in the Federal Register a notice 
        that invites interested parties to comment on the proposed 
        agreement. The notice shall state how to obtain a copy of the 
        tentative agreement in principle and shall give interested 
        parties no less than 30 days to provide comments. The Secretary 
        may consider such comments prior to providing the notices 
        pursuant to paragraph (2).''.
    (d) Default Reduction Program.--Section 428F(a)(1) (20 U.S.C. 1078-
6(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``consecutive payments 
        for 12 months'' and inserting ``9 payments made within 20 days 
        of the due date during 10 consecutive months''; and
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C)(i) A guaranty agency may charge and retain 
                collection costs in an amount not to exceed 18.5 
                percent of the outstanding principal and interest at 
                the time of sale of a loan rehabilitated under 
                subparagraph (A).
                    ``(ii) Notwithstanding clause (i), on and after 
                July 1, 2006, a guaranty agency that rehabilitates a 
                defaulted loan by making a consolidation loan to a 
                borrower under section 428C(a)(3)(A)(ii)(III) may not 
                charge and retain collection costs in an amount in 
                excess of 10 percent of the outstanding principal and 
                interest of the defaulted loans being consolidated.
                    ``(iii) For any year beginning on or after July 1, 
                2009, the total principal and interest of loans that a 
                guaranty agency rehabilitates by making consolidation 
                loans to borrowers under such section shall not exceed 
                45 percent of the total loans rehabilitated under 
                subparagraph (A).''.
    (e) Financial and Economic Literacy.--
            (1) Default reduction program.--Section 428F is further 
        amended by adding at the end the following:
    ``(c) Financial and Economic Literacy.--Where appropriate, each 
program described under subsection (b) shall include making available 
financial and economic education materials for the borrower.''.
            (2) Program assistance for borrowers.--Section 432(k)(1) 
        (20 U.S.C. 1082(k)(1)) is amended by striking ``and offering'' 
        and all that follows through the period and inserting ``, 
        offering loan repayment matching provisions as part of employee 
        benefit packages, and providing employees with financial and 
        economic education and counseling.''.
    (f) Credit Bureau Organization Agreements.--Section 430A(a) (20 
U.S.C. 1080a(a)) is amended by striking ``agreements with credit bureau 
organizations'' and inserting ``an agreement with each national credit 
bureau organization (as described in section 603(p) of the Fair Credit 
Reporting Act)''.
    (g) Uniform Administrative and Claims Procedure.--Section 
432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting ``and 
anticipated graduation date'' after ``status change''.
    (h) Default Reduction Management.--Section 432 is further amended--
            (1) by striking subsection (n); and
            (2) by redesignating subsections (o) and (p) as subsections 
        (n) and (o), respectively.
    (i) School as Lender.--Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is 
amended by striking subparagraphs (C) through (F) and the material 
following subparagraph (F) and inserting the following:
                    ``(C) shall not make a loan, other than a loan made 
                under section 428 or 428H to a graduate or professional 
                student, unless the borrower has previously received a 
                loan from the school, and shall not make a loan to a 
                borrower who is not enrolled at that institution;
                    ``(D) shall not have a cohort default rate (as 
                defined in section 435(m)) greater than 15 percent; and
                    ``(E) shall use the proceeds from special allowance 
                payments and interest payments from borrowers, and any 
                proceeds from the sale or other disposition of loans, 
                for need-based grant programs, except for reasonable 
                reimbursement for direct administrative expenses.''.
    (j) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a)) 
is amended by adding at the end the following new sentence: ``In making 
such determination of permanent and total disability, the Secretary 
shall provide that a borrower who has been certified as permanently and 
totally disabled by the Department of Veterans Affairs or the Social 
Security Administration shall not be required to present further 
documentation for purposes of this title.''.
    (k) Treatment of Falsely Certified Borrowers.--Section 437(c)(1) 
(20 U.S.C. 1087(c)(1)) is amended by inserting ``or parent's 
eligibility'' after ``such student's eligibility''.
    (l) Perfection of Security Interests.--Section 439(d) (20 U.S.C. 
1087-2(d)) is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively.
    (m) Additional Technical Amendments.--
            (1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is 
        amended--
                    (A) by striking ``and'' at the end of subclause 
                (II) of clause (i); and
                    (B) by moving the margin of clause (iii) two ems to 
                the left.
            (2) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraph (7) as paragraph 
                (6).
            (3) Section 428I(g) (20 U.S.C. 1078-9(g)) is amended by 
        striking ``Code,'' and inserting ``Code''.
            (4) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is 
        amended--
                    (A) in clause (i), by inserting ``and'' after the 
                semicolon at the end; and
                    (B) in clause (ii), by striking ``; and'' and 
                inserting a period.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    Section 441(b) (42 U.S.C. 2751(b)) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 442. COMMUNITY SERVICE.

    Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended by striking 
``that are open and accessible to the community''.

SEC. 443. ALLOCATION OF FUNDS.

    (a) Phaseout of Allocation Based on Previous Allocations.--
Subsection (a) of section 442(a) (42 U.S.C. 2752(a)) is amended to read 
as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 441(b) for each fiscal year after fiscal 
        year 2006, the Secretary shall, subject to paragraph (2), first 
        allocate to each eligible institution an amount equal to the 
        following percentage of the amount such institution received 
        under subsection (a) of this section for fiscal year 2006 (as 
        such subsection was in effect with respect to allocations for 
        such fiscal year):
                    ``(A) 80 percent for fiscal years 2007 and 2008;
                    ``(B) 60 percent for fiscal years 2009 and 2010;
                    ``(C) 40 percent for fiscal years 2011 and 2012;
                    ``(D) 20 percent for fiscal years 2013 and 2014; 
                and
                    ``(E) 0 percent for fiscal year 2015 and any 
                succeeding fiscal year.
            ``(2) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).
            ``(3) Additional allocations for certain institutions.--
                    ``(A) Allocations permitted.--Notwithstanding any 
                other provision of this section, the Secretary may 
                allocate an amount equal to not more than 10 percent of 
                the amount by which the amount appropriated in any 
                fiscal year to carry out this part exceeds $700,000,000 
                among eligible institutions described in subparagraph 
                (B).
                    ``(B) Eligible institutions.--For purposes of 
                subparagraph (A)--
                            ``(i) an eligible institution that is a 4-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 4 calendar years of the first 
                        day of enrollment; and
                            ``(ii) an eligible institution that is a 2-
                        year institution may receive an allocation 
                        under subparagraph (A) if more than 50 percent 
                        of the students who are degree-seeking Pell 
                        Grant recipients attending such institution 
                        graduate within 2 calendar years of the first 
                        day of enrollment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any amounts appropriated under section 441(b) of 
the Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 
2007 or any succeeding fiscal year.

SEC. 444. 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. 445. JOB LOCATION AND DEVELOPMENT.

    Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended--
            (1) by striking ``10 percent or $50,000'' and inserting 
        ``15 percent or $75,000''; and
            (2) by inserting before the period at the end the 
        following: ``, except that not less than one-third of such 
        amount shall be specifically allocated to locate and develop 
        community service jobs''.

SEC. 446. 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 ``work-service'' each place it appears and 
        inserting ``work-learning-service'';
            (3) by amending subparagraph (C) of subsection (e)(1) to 
        read as follows:
                    ``(C) requires all resident 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 5 hours each 
                week, or at least 80 hours during each period of 
                enrollment, unless the student is engaged in an 
                institutionally organized or approved study abroad or 
                externship program; and'';
            (4) by amending paragraph (2) of subsection (e) to read as 
        follows:
            ``(2) the term `comprehensive student work-learning-service 
        program'--
                    ``(A) means a student work-learning-service program 
                that 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
            (5) in subsection (f), by striking ``1999 and such sums as 
        may be necessary for each of the 4 succeeding fiscal years'' 
        and inserting ``2005 and such sums as may be necessary for the 
        5 succeeding fiscal years''.

                  PART D--FEDERAL DIRECT LOAN PROGRAM

SEC. 451. REAUTHORIZATION OF THE DIRECT LOAN PROGRAM.

    (a) Administrative Expenses.--Section 458(a)(1) (20 U.S.C. 
1087h(a)(1)) is amended by striking ``$617,000,000'' and all that 
follows through ``fiscal year 2003'' and inserting ``$807,000,000 in 
fiscal year 2005, $820,000,000 in fiscal year 2006, $833,000,000 in 
fiscal year 2007, $847,000,000 in fiscal year 2008, $862,000,000 in 
fiscal year 2009, and $878,000,000 in fiscal year 2010''.
    (b) Calculation Basis.--Subsection (b) of section 458 (20 U.S.C. 
1087h(b)) is amended by striking ``shall be calculated--'' and all that 
follows through the end of such subsection and inserting ``shall be 
calculated on the basis of 0.10 percent of the original principal 
amount of outstanding loans on which insurance was issued under part 
B.''.
    (c) Special Rules: Fee Cap.--Section 458(c)(1) (20 U.S.C. 
1087h(c)(1)) is amended by striking subparagraphs (A) through (E) and 
inserting the following:
                    ``(A) for fiscal year 2005, shall not exceed 
                $207,000,000;
                    ``(B) for fiscal year 2006, shall not exceed 
                $220,000,000;
                    ``(C) for fiscal year 2007, shall not exceed 
                $233,000,000;
                    ``(D) for fiscal year 2008, shall not exceed 
                $247,000,000;
                    ``(E) for fiscal year 2009, shall not exceed 
                $262,000,000; and
                    ``(F) for fiscal year 2010, shall not exceed 
                $278,000,000.''.
    (d) Consolidation Loan Eligibility.--Section 455(g) (20 U.S.C. 
1087e(g)) is amended by adding at the end (after the sentence added by 
section 425(b)(2) of this Act) the following new sentence: ``To be 
eligible for a consolidation loan under this part, a borrower must meet 
all the eligibility criteria set forth in section 428C(a)(3).''.

                  PART E--FEDERAL PERKINS LOAN PROGRAM

SEC. 461. REAUTHORIZATION OF PROGRAM.

    (a) Program Authorization.--
            (1) Authorization of appropriations.--Section 461(b) (20 
        U.S.C. 1087aa(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``1999'' and inserting 
                        ``2005''; and
                            (ii) by striking ``4 succeeding'' and 
                        inserting ``5 succeeding''; and
                    (B) in paragraph (2), by striking ``2003'' each 
                place it appears and inserting ``2011''.
            (2) Federal capital contribution recovery.--Section 466 (20 
        U.S.C. 1087ff) is amended--
                    (A) by striking ``2004'' each place it appears in 
                subsections (a), (b), and (c) and inserting ``2011'';
                    (B) in subsection (a), by striking ``2003'' each 
                place it appears and inserting ``2010''; and
                    (C) in subsection (b), by striking ``2012'' and 
                inserting ``2019''.
    (b) Phaseout of Allocation Based on Previous Allocations.--
            (1) Amendment.--Subsection (a) of section 462 (20 U.S.C. 
        1087bb(a)) is amended to read as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 461(b) for each fiscal year after fiscal 
        year 2006, the Secretary shall, subject to paragraphs (2) and 
        (3), first allocate to each eligible institution an amount 
        equal to--
                    ``(A) 100 percent of the amount such institution 
                received under subsection (a) of this section for 
                fiscal year 2006 (as such subsection was in effect with 
                respect to allocations for such fiscal year), 
                multiplied by
                    ``(B) the institution's default penalty, as 
                determined under subsection (e), except that if the 
                institution has a cohort default rate in excess of the 
                applicable maximum cohort default rate under subsection 
                (f), the institution may not receive an allocation 
                under this paragraph.
            ``(2) Phase out.--For each of the fiscal years after fiscal 
        year 2006, paragraph (1) shall be applied by substituting for 
        `100 percent':
                    ``(A) `80 percent' for fiscal years 2007 and 2008;
                    ``(B) `60 percent' for fiscal years 2009 and 2010;
                    ``(C) `40 percent' for fiscal years 2011 and 2012;
                    ``(D) `20 percent' for fiscal years 2013 and 2014; 
                and
                    ``(E) `0 percent' for fiscal year 2015 and any 
                succeeding fiscal year.
            ``(3) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any amounts appropriated under 
        section 461(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1087bb(b)) for fiscal year 2007 or any succeeding fiscal year.
    (c) 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. 462. LOAN TERMS AND CONDITIONS.

    (a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a))--
            (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) Forbearance.--Section 464(e) (20 U.S.C. 1087dd(e)) is amended 
by striking ``, upon written request,''.
    (c) Special Repayment Rule.--Paragraph (2) of section 464(f) is 
amended to read as follows:
    ``(2) No compromise repayment of a defaulted loan as authorized by 
paragraph (1) may be made unless agreed to by the Secretary.''.
    (d) Rehabilitation.--Section 464(h)(1)(A) (20 U.S.C. 
1087dd(h)(1)(A)) is amended by striking ``12 ontime'' and inserting ``9 
on-time''.

SEC. 463. LOAN CANCELLATION.

    Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is amended--
            (1) by inserting ``(D),'' after ``subparagraph (A), (C),'' 
        in clause (i);
            (2) by inserting ``or'' after the semicolon at the end of 
        clause (ii);
            (3) by striking clause (iii); and
            (4) by redesignating clause (iv) as clause (iii).

SEC. 464. TECHNICAL AMENDMENTS.

    Part E is further amended as follows:
            (1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
        1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly'' 
        after ``consecutive''.
            (2) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is 
        amended by redesignating subclauses (I) and (II) as clauses (i) 
        and (ii), respectively.
            (3) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended--
                    (A) in subparagraph (A), by striking ``section 
                111(c)'' and inserting ``section 1113(a)(5)''; and
                    (B) in subparagraph (C), by striking ``With 
                Disabilities'' and inserting ``with Disabilities''.
            (4) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by 
        striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A), 
        (4)(B), or (5)''.
            (5) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
                    (A) by striking ``sections 602(a)(1) and 672(1)'' 
                and inserting ``sections 602(3) and 632(5)'';
                    (B) by striking ``qualified professional provider 
                of early intervention services'' and inserting ``early 
                intervention services''; and
                    (C) by striking ``section 672(2)'' and inserting 
                ``section 632(4)''.

                         PART F--NEED ANALYSIS

SEC. 471. SIMPLIFIED NEEDS TEST IMPROVEMENTS.

    Section 479 (20 U.S.C. 1087ss) is amended--
            (1) by striking clause (i) of subsection (b)(1)(A) and 
        inserting the following:
                            ``(i) the student's parents file a form 
                        described in paragraph (3) or certify that they 
                        are not required to file an income tax return, 
                        and the student files such a form or certifies 
                        that the student is not required to file an 
                        income tax return, or the student's parents 
                        receive benefits under a means-tested Federal 
                        benefit program;''.
            (2) by striking clause (i) of subsection (b)(1)(B) and 
        inserting the following:
                            ``(i) the student (and the student's 
                        spouse, if any) files a form described in 
                        paragraph (3) or certifies that the student 
                        (and the student's spouse, if any) is not 
                        required to file an income tax return, or the 
                        student (and the student's spouse, if any) 
                        receives benefits under a means-tested Federal 
                        benefit program;'';
            (3) by striking subparagraph (A) of subsection (c)(1) and 
        inserting the following:
                    ``(A) the student's parents file a form described 
                in subsection (b)(3) or certify that they are not 
                required to file an income tax return, and the student 
                files such a form or certifies that the student is not 
                required to file an income tax return, or the student's 
                parents receive benefits under a means-tested Federal 
                benefit program;'';
            (4) by striking subparagraph (A) of subsection (c)(2) and 
        inserting the following:
                    ``(A) the student (and the student's spouse, if 
                any) files a form described in subsection (b)(3) or 
                certifies that the student (and the student's spouse, 
                if any) is not required to file an income tax return, 
                or the student (and the student's spouse, if any) 
                receives benefits under a means-tested Federal benefit 
                program;''; and
            (5) by adding at the end the following new subsection:
    ``(d) Definition of Means-Tested Federal Benefit Program.--For 
purposes of this section, the term `means-tested Federal benefit 
program' means a mandatory spending program of the Federal Government, 
other than a program under this title, in which eligibility for the 
programs' benefits, or the amount of such benefits, or both, are 
determined on the basis of income or resources of the individual or 
family seeking the benefit, and may include such programs as the 
supplemental security income program under title XVI of the Social 
Security Act, the food stamp program under the Food Stamp Act of 1977, 
and the free and reduced price school lunch program under the Richard 
B. Russell National School Lunch Act, and other programs identified by 
the Secretary.''.

SEC. 472. ADDITIONAL NEED ANALYSIS AMENDMENTS.

    (a) Income Protection Allowance for Dependent Students.----
            (1) Amendment.--Section 475(g)(2)(D) (20 U.S.C. 
        1087oo(g)(2)(D)) is amended by striking ``$2,200'' and 
        inserting ``$3,000''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to determinations of need for periods 
        of enrollment beginning on or after July 1, 2005.
    (b) Employment Expense Allowance.--Section 478(h) (20 U.S.C. 
1087rr(h)) is amended--
            (1) by striking ``476(b)(4)(B),''; and
            (2) by striking ``meals away from home, apparel and upkeep, 
        transportation, and housekeeping services'' and inserting 
        ``food away from home, apparel, transportation, and household 
        furnishings and operations''.
    (c) Discretion of Student Financial Aid Administrators.--Section 
479A(a) (20 U.S.C. 1087tt(a)) is amended--
            (1) by striking ``(a) In General.--'' and inserting the 
        following:
    ``(a) Authority to Make Adjustments.--
            ``(1) Adjustments for special circumstances.--'';
            (2) by inserting before ``Special circumstances may'' the 
        following:
            ``(2) Special circumstances defined.--'';
            (3) by inserting ``a student's status as a ward of the 
        court at any time prior to attaining 18 years of age,'' after 
        ``487,'';
            (4) by inserting before ``Adequate documentation'' the 
        following:
            ``(3) Documentation and use of supplementary information.--
        ''; and
            (5) by inserting before ``No student'' the following:
            ``(4) Fees for supplementary information prohibited.--''.
    (d) Treating Active Duty Members of the Armed Forces as Independent 
Students.--Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by 
inserting before the semicolon at the end the following: ``or is 
currently serving on active duty in the Armed Forces for other than 
training purposes''.
    (e) Excludable Income.--Section 480(e) (20 U.S.C. 1087vv(e)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4); and
            (3) by adding at the end the following new paragraph:
            ``(5) any part of any distribution from a qualified tuition 
        program established under section 529 of the Internal Revenue 
        Code of 1986 that is not includable in gross income under such 
        section 529.''.
    (f) Treatment of Savings Plans.--
            (1) Amendment.--Section 480(f) (20 U.S.C. 1087vv(f)) is 
        amended--
                    (A) in paragraph (1), by inserting ``qualified 
                tuition programs established under section 529 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 529), except 
                as provided in subparagraph (2),'' after ``tax 
                shelters,'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
    ``(2) A qualified tuition program shall not be considered an asset 
of a dependent student under section 475 of this part. The value of a 
qualified tuition program for purposes of determining the assets of 
parents or independent students shall be--
            ``(A) the refund value of any tuition credits or 
        certificates purchased under section 529 of the Internal 
        Revenue Code of 1986 (26 U.S.C. 529) on behalf of a 
        beneficiary; or
            ``(B) the current balance of any account which is 
        established under such section for the purpose of meeting the 
        qualified higher education expenses of the designated 
        beneficiary of the account.''.
            (2) Conforming amendment.--Section 480(j) (20 U.S.C. 
        1087vv(j)) is amended--
                    (A) by striking ``; Tuition Prepayment Plans'' in 
                the heading of such subsection;
                    (B) by striking paragraph (2);
                    (C) in paragraph (3), by inserting ``, or a 
                distribution that is not includible in gross income 
                under section 529 of such Code,'' after ``1986''; and
                    (D) by redesignating paragraph (3) as paragraph 
                (2).

  PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE

SEC. 481. DEFINITION OF ACADEMIC YEAR.

    Paragraph (2) of section 481(a) (20 U.S.C. 1088(a)) is amended to 
read as follows:
    ``(2) For the purpose of any program under this title, the term 
`academic year' shall--
            ``(A) require a minimum of 30 weeks of instructional time 
        for a course of study that measures its program length in 
        credit hours; or
            ``(B) require a minimum of 26 weeks of instructional time 
        for a course of study that measures its program length in clock 
        hours; and
            ``(C) require an undergraduate course of study to contain 
        an amount of instructional time whereby a full-time student is 
        expected to complete at least (i) 24 semester or trimester 
        hours or 36 quarter credit hours in a course of study that 
        measures its program length in credit hours, or (ii) 900 clock 
        hours in a course of study that measures its program length in 
        clock hours.''.

SEC. 482. DISTANCE EDUCATION.

    (a) Distance Education: Eligible Program.--Section 481(b) (20 
U.S.C. 1088(b)) is amended by adding at the end the following new 
paragraph:
            ``(3) Distance education.--An otherwise eligible program 
        that is offered in whole or in part through telecommunications 
        is eligible for the purposes of this title if the program is 
        offered by an institution, other than a foreign institution, 
        that has been evaluated and determined (before or after the 
        date of enactment of this paragraph) to have the capability to 
        effectively deliver distance education programs by an 
        accrediting agency or association that--
                    ``(A) is recognized by the Secretary under subpart 
                2 of Part H; and
                    ``(B) has evaluation of distance education programs 
                within the scope of its recognition, as described in 
                section 496(n)(3).''.
    (b) Correspondence Courses.--Section 484(l)(1) (20 U.S.C. 
1091(l)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``for a program of study of 1 year 
                or longer''; and
                    (B) by striking ``unless the total'' and all that 
                follows through ``courses at the institution''; and
            (2) by amending subparagraph (B) to read as follows:
                    ``(B) Exception.--Subparagraph (A) does not apply 
                to an institution or school described in section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998.''.

SEC. 483. EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR 
              PELL GRANTS.

    Section 483(a) (20 U.S.C. 1090(a)) is amended by adding at the end 
the following new paragraph:
            ``(8) Expanding information dissemination regarding 
        eligibility for pell grants.--The Secretary shall make special 
        efforts, in conjunction with State efforts, to notify students 
        and their parents who qualify for a free lunch under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.), the Food Stamps program, or such other programs as the 
        Secretary shall determine, of their potential eligibility for a 
        maximum Pell Grant, and shall disseminate such informational 
        materials as the Secretary deems appropriate.''.

SEC. 484. STUDENT ELIGIBILITY.

    (a) Suspension of Eligibility for Drug Offenses.--Section 484(r)(1) 
(20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the 
table and inserting the following:
            ``(1) In general.--A student who is convicted of any 
        offense under any Federal or State law involving the possession 
        or sale of a controlled substance for conduct that occurred 
        during a period of enrollment for which the student was 
        receiving any grant, loan, or work assistance under this title 
        shall not be eligible to receive any grant, loan, or work 
        assistance under this title from the date of that conviction 
        for the period of time specified in the following table:''.
    (b) Freely Associated States.--Section 484(j) (20 U.S.C. 1091(j)) 
is amended by inserting ``and shall be eligible only for assistance 
under subpart 1 of part A thereafter,'' after ``part C,''.
    (c) Verification of Income Date.--Paragraph (1) of section 484(q) 
(20 U.S.C. 1091(q)) is amended to read as follows:
            ``(1) Confirmation with irs.--The Secretary of Education, 
        in cooperation with the Secretary of the Treasury, is 
        authorized to confirm with the Internal Revenue Service the 
        information specified in section 6103(l)(13) of the Internal 
        Revenue Code of 1986 reported by applicants (including parents) 
        under this title on their Federal income tax returns for the 
        purpose of verifying the information reported by applicants on 
        student financial aid applications.''.
    (d) Pell Grant Eligibility Provision.--Section 484 is amended by 
adding at the end the following new subsection:
    ``(s)  Pell Grant Eligibility Provision.--A student who does not 
have a certificate of graduation from a school providing secondary 
education may be eligible for assistance under subpart 1 of Part A of 
this title for no more than two academic years, if such student--
            ``(1) meets all eligibility requirements for such 
        assistance (other than not being enrolled in an elementary or 
        secondary school) and is an academically gifted and talented 
        student, as defined in section 9101 of the Elementary and 
        Secondary Education Act;
            ``(2) is in the junior or senior year of secondary school, 
        and has not received any assistance under this title;
            ``(3) is selected for participation and is enrolled full-
        time and resides on campus in a residential college gifted 
        student program for early enrollment, leading to fully 
        transferable college academic credit;
            ``(4) does not and will not participate in any secondary 
        school course work during or after such program; and
            ``(5) has entered into an agreement that, if the student 
        fails to complete the entirety of the academic program for 
        which assistance under subpart 1 of Part A of this title was 
        received, or participates in secondary school course work after 
        participating in such program, the student will repay all funds 
        received under such subpart pursuant to this subsection to the 
        Federal Government in accordance with regulations promulgated 
        by the Secretary.''.
    (e) Technical Amendment.--Section 484(b)(5) is amended by inserting 
``or parent (on behalf of a student)'' after ``student''.

SEC. 485. INSTITUTIONAL REFUNDS.

    Section 484B (20 U.S.C. 1091b) is amended--
            (1) in subsection (a)(1), by inserting ``subpart 4 of part 
        A or'' after ``received under'';
            (2) in subsection (a)(2), by striking ``takes a leave'' and 
        by inserting ``takes one or more leaves'';
            (3) in subsection (a)(3)(B)(ii), by inserting ``(as 
        determined in accordance with subsection (d))'' after ``student 
        has completed'';
            (4) in subsection (a)(4), by amending subparagraph (A) to 
        read as follows:
                    ``(A) In general.--After determining the 
                eligibility of the student for a late disbursement or 
                post-withdrawal disbursement (as required in 
                regulations prescribed by the Secretary), the 
                institution of higher education shall contact the 
                borrower and obtain confirmation that the loan funds 
                are still required by the borrower. In making such 
                contact, the institution shall explain to the borrower 
                the borrower's obligation to repay the funds following 
                any such disbursement. The institution shall document 
                in the borrower's file the result of such contact and 
                the final determination made concerning such 
                disbursement. ''.
            (5) in subsection (b)(1), by inserting ``no later than 45 
        days from the determination of withdrawal'' after ``return'';
            (6) in subsection (b)(2), by amending subparagraph (C) to 
        read as follows:
                    ``(C) Grant overpayment requirements.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (B), a student shall only 
                        be required to return grant assistance in the 
                        amount (if any) by which--
                                    ``(I) the amount to be returned by 
                                the student (as determined under 
                                subparagraphs (A) and (B)), exceeds
                                    ``(II) 50 percent of the total 
                                grant assistance received by the 
                                student under this title for the 
                                payment period or period of enrollment.
                            ``(ii) Minimum.--A student shall not be 
                        required to return amounts of $50 or less.''; 
                        and
            (7) in subsection (d), by striking ``(a)(3)(B)(i)'' and 
        inserting ``(a)(3)(B)''.

SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
              STUDENTS.

    (a) Information Dissemination Activities.--Section 485(a)(1) (20 
U.S.C. 1092(a)(1)) is amended--
            (1) by amending the second sentence to read as follows: 
        ``The information required by this section shall be produced 
        and be made publicly available to an enrolled student and to 
        any prospective student in a uniform and comprehensible manner, 
        through appropriate publications, mailings, electronic media, 
        and the reports required by the institution's accrediting 
        agency under section 496(c)(9).'';
            (2) by amending subparagraph (G) to read as follows:
            ``(G) the academic programs of the institution, including--
                    ``(i) the current degree programs and other 
                educational and training programs;
                    ``(ii) the institution's learning objectives for 
                those programs;
                    ``(iii) the instructional, laboratory, and other 
                physical plant facilities which relate to the academic 
                programs; and
                    ``(iv) the faculty and other instructional 
                personnel;'';
            (3) by striking subparagraph (L) and inserting the 
        following:
            ``(L) a summary of student outcomes for full-time 
        undergraduate students, including--
                    ``(i) the completion or graduation rates of 
                certificate- or degree-seeking undergraduate students 
                entering such institutions;
                    ``(ii) when readily available, information showing 
                the number of undergraduate students that transfer out 
                of the institution; and
                    ``(iii) any other student outcome data, qualitative 
                or quantitative, including data regarding distance 
                education deemed by the institution to be appropriate 
                to its stated educational mission and goals, and, when 
                applicable, licensing and placement rates for 
                professional and vocational programs;'';
            (4) by inserting before the semicolon at the end of 
        subparagraph (J) the following: ``, and the process for 
        students to register complaints with the accrediting agencies 
        or associations'';
            (5) in subparagraph (M), by striking ``guaranteed student 
        loans under part B of this title or direct student loans under 
        part E of this title, or both,'' and inserting ``student loans 
        under part B, D, or E of this title'';
            (6) by striking ``and'' at the end of subparagraph (N);
            (7) by striking the period at the end of subparagraph (O) 
        and inserting a semicolon; and
            (8) by adding at the end the following new subparagraphs:
            ``(P) the penalties contained in subsection 484(r) 
        regarding suspension of eligibility for drug related offenses; 
        and
            ``(Q) the policies of the institution for accepting 
        transfer of credit, explained in a manner that clearly states 
        the basis for determining the acceptability and applicability 
        of transfer of credits.''.
    (b) Additional Amendments.--Section 485(a) is further amended by 
striking paragraph (6) and inserting the following:
            ``(6) Each institution may provide supplemental information 
        to enrolled and prospective students showing the completion or 
        graduation rate for students described in paragraph (4). For 
        the purpose of this paragraph, the definitions provided in the 
        Integrated Postsecondary Education Data System shall apply.
            ``(7) Each eligible institution participating in any 
        program under this title may publicly report to currently 
        enrolled and prospective students the voluntary information 
        collected by the National Survey of Student Engagement (NSSE), 
        the Community College Survey of Student Engagement (CCSSE), or 
        other instruments that provide evidence of student 
        participation in educationally purposeful activities. The 
        information shall be produced and made available in a uniform 
        and comprehensible manner, through appropriate publications, 
        mailings, and electronic media, and may be included in reports 
        required by the institution's accrediting agency.''.
    (c) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended 
by adding at the end the following new paragraph:
    ``(3) Each eligible institution shall, during the exit interview 
required by this subsection, provide to a borrower of a loan made under 
part B, D, or E a clear and conspicuous notice describing the effect of 
using a consolidation loan to discharge the borrower's student loans, 
including--
            ``(A) the effects of consolidation on total interest to be 
        paid, fees to be paid, and length of repayment;
            ``(B) the effects of consolidation on a borrower's 
        underlying loan benefits, including loan forgiveness, 
        cancellation, and deferment;
            ``(C) the ability for the borrower to prepay the loan, pay 
        on a shorter schedule, and to change repayment plans, and that 
        borrower benefit programs may vary among different loan 
        holders;
            ``(D) the tax benefits for which the borrower may be 
        eligible; and
            ``(E) the consequences of default.''.
    (d) Campus Crime Information.--Section 485(f)(1) (20 U.S.C. 
1092(f)(1)) is amended by inserting ``, other than a foreign 
institution of higher education,'' after ``under this title''.
    (e) Transfer of Credit Policies.--Section 485 is further amended by 
adding at the end the following new subsection:
    ``(h) Transfer of Credit Policies.--
            ``(1) Disclosure.--Each eligible institution participating 
        in any program under this title shall publicly disclose in a 
        readable and comprehensible manner its transfer of credit 
        policies which shall include:
                    ``(A) A statement of the institution's current 
                transfer of credit policies that includes at least--
                            ``(i) a statement that transfer of credit 
                        shall not be denied solely on the basis of the 
                        agency or association that accredited such 
                        other eligible institution, if that agency or 
                        association is recognized by the Secretary 
                        pursuant to section 496 to be a reliable 
                        authority as to the quality of the education or 
                        training offered; and
                            ``(ii) a statement that transfer of credit 
                        shall be decided on the basis of whether the 
                        courses or program are determined by the 
                        institution to be acceptable for credit in 
                        accordance with objective criteria that the 
                        institution publicly discloses and the student 
                        completed such courses or programs at the 
                        institution's required level of proficiency.
                    ``(B) Statistics concerning the annual, as well as 
                a 3-year rolling average, rate of the percentage of 
                credits accepted in transfer and fully counted toward 
                the degree or certificate completion requirements of 
                undergraduate students. Such data shall be 
                disaggregated to report on the following categories of 
                institutions from which credits were accepted in 
                transfer:
                            ``(i) nationally accredited;
                            ``(ii) regionally accredited in the same 
                        State;
                            ``(iii) regionally accredited in the same 
                        region; and
                            ``(iv) regionally accredited in a different 
                        region.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to--
                    ``(A) 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;
                    ``(B) limit the application of the General 
                Education Provisions Act; or
                    ``(C) create any legally enforceable right.''.

SEC. 487. COLLEGE ACCESS INITIATIVE.

    Part G is further amended by inserting after section 485C (20 
U.S.C. 1092c) the following new section:

``SEC. 485D. COLLEGE ACCESS INITIATIVE.

    ``(a) State-by-State Information.--The Secretary shall direct each 
guaranty agency with which the Secretary has an agreement under section 
428(c) to provide to the Secretary the information necessary for the 
development of web links and access for students and families to a 
comprehensive listing of the postsecondary education opportunities 
programs, publications, Internet Web sites, and other services 
available in the States for which such agency serves as the designated 
guarantor.
    ``(b) Guaranty Agency Activities.--
            ``(1) Plan and activity required.--Each guaranty agency 
        with which the Secretary has an agreement under section 428(c) 
        shall develop a plan and undertake the activity necessary to 
        gather the information required under subsection (a) and to 
        make such information available to the public and to the 
        Secretary in a form and manner as prescribed by the Secretary.
            ``(2) Activities.--Each guaranty agency shall undertake 
        such activities as are necessary to promote access to 
        postsecondary education for students through providing 
        information on college planning, career preparation, and paying 
        for college. The guaranty agency shall publicize such 
        information and coordinate such activities with other entities 
        that either provide or distribute such information in the 
        States for which such guaranty agency serves as the designated 
        guarantor.
            ``(3) Funding.--The activities required by this section may 
        be funded from the guaranty agency's operating account 
        established pursuant to section 422B and to the extent funds 
        remain, from earnings on the restricted account established 
        pursuant to section 422(h)(4).
    ``(c) Access to Information.--
            ``(1) Secretary's responsibility.--The Secretary shall 
        ensure the availability of the information provided by the 
        guaranty agencies in accordance with this section to students, 
        parents and other interested individuals, through web links or 
        other methods prescribed by the Secretary.
            ``(2) Guaranty agency responsibility.--The guaranty 
        agencies shall ensure that the information required by this 
        section is available without charge in printed format for 
        students and parents requesting such information.
            ``(3) Publicity.--Within 270 days after the date of 
        enactment of the College Access and Opportunity Act of 2004, 
        the Secretary and guaranty agencies shall publicize the 
        availability of the information required by this section, with 
        special emphasis on ensuring that populations that are 
        traditionally underrepresented in postsecondary education are 
        made aware of the availability of such information.''.

SEC. 488. DISTANCE EDUCATION DEMONSTRATION PROGRAM.

    (a) Eligible Applicants.--Section 486(b)(3) (20 U.S.C. 1093(b)(3)) 
is amended--
            (1) in subparagraph (B), by striking ``section 
        102(a)(1)(C)'' and inserting ``section 102''; and
            (2) in subparagraph (C), by striking ``subsection (a) of 
        section 102, other than the requirement of paragraph (3)(A) or 
        (3)(B) of such subsection,'' and inserting ``section 101, other 
        than the requirements of subparagraph (A) or (B) of subsection 
        (b)(4) of such section''.
    (b) Selection.--Section 486(d)(1) (20 U.S.C. 1093(d)(1)) is 
amended--
            (1) by striking ``the third year'' and inserting 
        ``subsequent years'';
            (2) by striking ``35 institutions'' and inserting ``100 
        institutions''; and
            (3) by adding at the end the following new sentence: ``Not 
        more than 5 of such institutions, systems, or consortia may be 
        accredited, degree-granting correspondence schools.''.

SEC. 489. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

    Part G of title IV is amended by inserting after section 486 (20 
U.S.C. 1093) the following new section:

``SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to provide, through a college affordability 
        demonstration program, for increased innovation in the delivery 
        of higher education and student financial aid in a manner 
        resulting in reduced costs for students as well as the 
        institution by accelerating degree or program completion, 
        increasing availability of, and access to, distance components 
        of education delivery, and other alternative methodologies; and
            ``(2) to help determine--
                    ``(A) the most effective means of delivering 
                student financial aid as well as quality education;
                    ``(B) the specific statutory and regulatory 
                requirements that should be altered to provide for more 
                efficient and effective delivery of student financial 
                aid, as well as access to high quality distance 
                education programs, resulting in a student more 
                efficiently completing postsecondary education; and
                    ``(C) the most effective methods of obtaining and 
                managing institutional resources.
    ``(b) Demonstration Program Authorized.--
            ``(1) In general.--In accordance with the purposes 
        described in subsection (a) and the provisions of subsection 
        (d), the Secretary is authorized to select not more than 100 
        institutions of higher education or systems of such 
        institutions for voluntary participation in the College 
        Affordability Demonstration Program in order to enable 
        participating institutions to carry out such purposes by 
        providing programs of postsecondary education, and making 
        available student financial assistance under this title to 
        students enrolled in those programs, in a manner that would not 
        otherwise meet the requirements of this title.
            ``(2) Waivers.--The Secretary is authorized to waive for 
        any institutions of higher education, or any system or 
        consortia of institutions of higher education, selected for 
        participation in the College Affordability Demonstration 
        Program, any requirements of this Act or the regulations 
        thereunder as deemed necessary by the Secretary to meet the 
        purpose described in subsection (a)(1).
            ``(3) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraph (B), only an institution of higher 
                education that is eligible to participate in programs 
                under this title shall be eligible to participate in 
                the demonstration program authorized under this 
                section.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102 shall not be 
                eligible to participate in the demonstration program 
                authorized under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution or system of 
        institutions desiring to participate in the demonstration 
        program under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.
            ``(2) Contents of applications.--Each application for the 
        college affordability demonstration program shall include at 
        least the following:
                    ``(A) a description of the institution or system of 
                institutions and what quality assurance mechanisms are 
                in place to insure the integrity of the Federal 
                financial aid programs;
                    ``(B) a description of each regulatory or statutory 
                requirement for which waivers are sought, with a reason 
                for each waiver;
                    ``(C) a description of the programs being offered 
                and the affected students;
                    ``(D) a description of the expected outcomes of the 
                program changes proposed, including the estimated 
                reductions in costs both for the institution and for 
                students;
                    ``(E) a description of any collaborative 
                arrangements with other institutions or organizations 
                to reduce costs;
                    ``(F) a description of any expected economic impact 
                of participation in the program within the community in 
                which the institution is located;
                    ``(G) a description of how the institution will 
                reduce the costs of instructional materials, including 
                textbooks;
                    ``(H) an assurance that the participating 
                institution or system of institutions will offer full 
                cooperation with the ongoing evaluations of the 
                demonstration program provided for in this section; and
                    ``(I) any other information or assurances the 
                Secretary may require.
    ``(d) Selection.--In selecting institutions to participate in the 
demonstration program under this section, the Secretary shall take into 
account--
            ``(1) the number and quality of applications received, 
        determined on the basis of the contents required by subsection 
        (c)(2);
            ``(2) the Department's capacity to oversee and monitor each 
        institution's participation;
            ``(3) an institution's--
                    ``(A) financial responsibility;
                    ``(B) administrative capability;
                    ``(C) program or programs being offered via 
                distance education;
                    ``(D) student completion rates; and
                    ``(E) student loan default rates; and
            ``(4) the participation of a diverse group of institutions 
        with respect to size, mission, and geographic distribution.
    ``(e) Notification.--The Secretary shall make available to the 
public and to the authorizing committees a list of institutions and 
systems of institutions selected to participate in the demonstration 
program authorized by this section. Such notice shall include a listing 
of the specific statutory and regulatory requirements being waived for 
each institution or system of institutions and a description of the 
distance education courses to be offered.
    ``(f) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration program authorized under this section on a 
        biennial basis. Such evaluations specifically shall review--
                    ``(A) the number and types of students 
                participating in the programs offered, including the 
                progress of participating students toward recognized 
                certificates or degrees and the extent to which 
                participation in such programs increased;
                    ``(B) issues related to student financial 
                assistance for distance education;
                    ``(C) effective technologies and alternative 
                methodologies for delivering student financial 
                assistance;
                    ``(D) the extent of the cost savings to the 
                institution, the student, and the Federal Government by 
                virtue of the waivers provided, and an estimate as to 
                future cost savings should the demonstration program 
                continue;
                    ``(E) the extent to which students saved money by 
                virtue of completing their postsecondary education 
                sooner;
                    ``(F) the extent to which the institution reduced 
                its tuition and fees and its costs by virtue of 
                participation in the demonstration program;
                    ``(G) the extent to which any collaborative 
                arrangements with other institutions or organizations 
                have reduced the participating institution's costs; and
                    ``(H) the extent to which statutory or regulatory 
                requirements not waived under the demonstration program 
                present difficulties for students or institutions.
            ``(2) Policy analysis.--The Secretary shall review current 
        policies and identify those policies that present impediments 
        to the development and use of distance education and other 
        nontraditional methods of expanding access to education.
            ``(3) Reports.--The Secretary shall provide a report to the 
        authorizing committees on a biennial basis regarding--
                    ``(A) the demonstration program authorized under 
                this section;
                    ``(B) the results of the evaluations conducted 
                under paragraph (1);
                    ``(C) the cost savings to the Federal Government by 
                the demonstration program authorized by this section; 
                and
                    ``(D) recommendations for changes to increase the 
                efficiency and effective delivery of financial aid.
    ``(g) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) ensure compliance of institutions or systems of 
        institutions with the requirements of this title (other than 
        the sections and regulations that are waived under subsection 
        (b)(2));
            ``(2) provide technical assistance to institutions in their 
        application to and participation in the demonstration program;
            ``(3) monitor fluctuations in the student population 
        enrolled in the participating institutions or systems of 
        institutions;
            ``(4) monitor changes in financial assistance provided at 
        the institution; and
            ``(5) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities.
    ``(h) Termination of Authority.--The authority of the Secretary 
under this section shall cease to be effective on October 1, 2010.''.

SEC. 490. PROGRAM PARTICIPATION AGREEMENTS.

    (a) Refund Policies.--Section 487(a) (20 U.S.C. 1094(a)) is 
amended--
            (1) in paragraph (22), by striking ``refund policy'' and 
        inserting ``policy on the return of title IV funds''; and
            (2) in paragraph (23)--
                    (A) by moving subparagraph (C) 2 em spaces to the 
                left; and
                    (B) by adding after such subparagraph the following 
                new subparagraph:
            ``(D) An institution shall be considered in compliance with 
        the requirements of subparagraph (A) for any 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, provided such information is in 
        an electronic message devoted to voter registration.''.
    (b) Audit Requirements.--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 
receive less than $500,000 in loans under this title during the award 
year preceding the audit period;''.
    (c) Reports on Disciplinary Proceedings.--
            (1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
        amended by adding at the end the following new paragraph:
            ``(24) The institution will disclose to the alleged victim 
        of any crime of violence (as that term is defined in section 16 
        of title 18), or a nonforcible sex offense, the final 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, the next 
        of kin of such victim shall be treated as the alleged victim 
        for purposes of this paragraph.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any disciplinary proceeding 
        conducted by such institution on or after one year after the 
        date of enactment of this Act.

SEC. 491. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS.

    Part G is further amended as follows:
            (1) Section 483(d) (20 U.S.C. 1090(d)) is amended by 
        striking ``that is authorized under section 685(d)(2)(C)'' and 
        inserting ``, or another appropriate provider of technical 
        assistance and information on postsecondary educational 
        services, that is supported under section 685''.
            (2) Section 484 (20 U.S.C. 1091) is amended--
                    (A) in subsection (a)(4), by striking 
                ``certification,,'' and inserting ``certification,'';
                    (B) in subsection (b)(2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``section 428A'' and inserting 
                        ``section 428H'';
                            (ii) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end thereof;
                            (iii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking subparagraph (C); and
                    (C) in subsection (l)(1)(B)(i), by striking 
                ``section 521(4)(C) of the Carl D. Perkins Vocational 
                and Applied Technology Education Act'' and inserting 
                ``section 3(3)(C) of the Carl D. Perkins Vocational and 
                Technical Education Act of 1998''.
            (3) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
                    (A) by redesignating paragraphs (6) through (10) as 
                paragraphs (7) through (11), respectively;
                    (B) by redesignating the paragraph (5) (as added by 
                section 2008 of Public Law 101-239) as paragraph (6); 
                and
                    (C) in paragraph (5) (as added by section 204(3) of 
                the National Community Service Act of 1990 (Public Law 
                101-610))--
                            (i) by striking ``(22 U.S.C. 2501 et 
                        seq.)),'' and inserting ``(22 U.S.C. 2501 et 
                        seq.),''; and
                            (ii) by striking the period at the end 
                        thereof and inserting a semicolon.
            (4) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding 
        at the end the following new paragraph:
    ``(3) The appointment of members under subparagraphs (A) and (B) of 
paragraph (1) shall be effective upon publication of the appointment in 
the Congressional Record.''.
            (5) Section 491(k) (20 U.S.C. 1098(k)) is amended by 
        striking ``2004'' and inserting ``2011''.
            (6) Section 493A (20 U.S.C. 1098c) is repealed.
            (7) Section 498 (20 U.S.C. 1099c) is amended--
                    (A) in subsection (c)(2), by striking ``for 
                profit,'' and inserting ``for-profit,''; and
                    (B) in subsection (d)(1)(B), by inserting ``and'' 
                after the semicolon at the end thereof.

                       PART H--PROGRAM INTEGRITY

SEC. 495. ACCREDITATION.

    (a) Standards for Accreditation.--Section 496(a) (20 U.S.C. 
1099b(a)) is amended--
            (1) in paragraph (3)--
                    (A) by inserting ``or'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (2) in paragraph (4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by inserting ``and'' after the semicolon at the 
                end thereof; and
                    (C) by adding at the end the following new 
                subparagraph:
            ``(B) if such agency or association already has or seeks to 
        include within its scope of recognition the evaluation of the 
        quality of institutions or programs offering distance 
        education, such agency or association shall, in addition to 
        meeting the other requirements of this subpart--
                    ``(i) demonstrate to the Secretary that, through 
                application of its standards, procedures, and policies, 
                particularly those required under paragraph (5) of this 
                subsection, the agency or association determines that 
                the quality of instruction and student support services 
                for distance education is comparable to that provided 
                by the institution in its classrooms and on its 
                campuses (or if distance education is the only mode of 
                delivery used by the institution, comparable to the 
                quality of instruction and student support services 
                provided in campus settings); and
                    ``(ii) evaluate how an institution offering 
                distance education ensures the integrity of student 
                participation in its distance education programs;''.
                    (D) by inserting after ``standards'' the following: 
                ``(including standards to assess the quality of 
                distance education that are comparable to the standards 
                used for face-to-face classroom instruction)'';
            (3) in paragraph (5)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) success with respect to student achievement 
                in relation to the institution's mission, including, as 
                appropriate, consideration of student academic 
                achievement as determined by the institution (in 
                accordance with standards of the accrediting agency or 
                association) related to each institution's articulation 
                of desired learning outcomes, retention, course and 
                program completion, State licensing examinations, and 
                job placement rates; and other student performance data 
                selected by the institution, particularly data used by 
                the institution to evaluate or strengthen its 
                educational programs, and including thresholds for 
                course completion and job placement rates if the 
                institution offers certificate-granting vocation or 
                technical programs;'';
                    (B) in subparagraph (E), by striking ``fiscal and 
                administrative capacity'' and inserting ``fiscal, 
                administrative, and governance capacity''; and
                    (C) by amending subparagraph (I) to read as 
                follows:
                    ``(I) record of student complaints received by the 
                agency or association, including those resulting from 
                the process described in section 485(a)(1)(J); and'';
            (4) by striking ``and'' at the end of paragraph (7); and
            (5) by striking paragraph (8) and inserting the following:
            ``(8) such agency or association shall make available to 
        the public, and submit to the Secretary, for use in consumer 
        information programs, a summary of agency or association 
        actions, including--
                    ``(A) the award of accreditation or reaccreditation 
                of an institution and any findings made in connection 
                with the accreditation or reaccreditation;
                    ``(B) final denial, withdrawal, suspension, or 
                termination of accreditation, or placement on probation 
                of an institution;
                    ``(C) any other adverse action taken with respect 
                to an institution;
                    ``(D) a list of the individuals who comprise the 
                inspection and review teams for each agency or 
                association, including each individual's name, agency 
                affiliation, and relevant professional experience;
                    ``(E) a description of the agency's or 
                association's process for selecting, training, and 
                evaluating such individuals; and
                    ``(F) the agency's or association's code of conduct 
                for its commissioners and such individuals; and
            ``(9) such agency or association shall--
                    ``(A) review, during its onsite comprehensive 
                review, the transfer of credit policies of programs and 
                institutions under its accreditation; and
                    ``(B) not adopt or apply standards, policies, or 
                practices that restrict or deny the transfer of credits 
                earned by a student completing courses or programs at 
                other eligible institutions of higher education solely 
                on the basis of the agency or association that 
                accredited such other eligible institution if that 
                agency or association--
                            ``(i) is recognized by the Secretary 
                        pursuant to this section to be a reliable 
                        authority as to the quality of the education or 
                        training offered; and
                            ``(ii) is currently listed by the Secretary 
                        pursuant to section 101(c).''.
    (b) Operating Procedures.--Section 496(c) (20 U.S.C. 1099b(c)) is 
amended--
            (1) by inserting ``(including those regarding distance 
        education), and have several years of related experience'' 
        before the semicolon at the end of paragraph (1);
            (2) by striking ``and'' at the end of paragraph (5);
            (3) by striking the period at the end of paragraph (6) and 
        inserting a semicolon; and
            (4) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) ensures that its onsite comprehensive reviews for 
        accreditation or reaccreditation include evaluation of the 
        substance of the information required in subparagraphs (G) and 
        (H) of section 485(a)(1);
            ``(8) confirms as a part of its review for accreditation or 
        reaccreditation that the institution has transfer policies that 
        are publicly disclosed and consistently applied;
            ``(9) develops as required in subsection (a)(8), a summary 
        available to the public of the agency's action and the 
        significant findings related to that action;
            ``(10) includes, in its evaluation for accreditation or 
        reaccreditation, review of the transfer of credit policies of 
        the program or institution to assure that transfer policies do 
        not deny transfer of credit based solely on the accreditation 
        of the sending program or institution, except that nothing in 
        this review shall restrict the right of the receiving program 
        or institution to determine, on any other basis or on a 
        combination of that basis together with other bases, the 
        credits the receiving program or institution will accept for 
        transfer; and
            ``(11) monitors the growth of distance education programs, 
        evaluating, as appropriate, the development and management of 
        such programs at institutions that are experiencing significant 
        growth in distance education.''.
    (c) Limitation, Suspension, and Termination of Recognition.--
Section 496(l) is amended by adding at the end the following new 
paragraph:
    ``(3) The Secretary shall provide an annual report to Congress on 
the status of any agency or association for which the Secretary has 
limited, suspended or terminated recognition under this subsection.''.
    (d) College Consumer Profile.--Section 496 is further amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by inserting after subsection (n):
    ``(o) College Consumer Profile.--
            ``(1) Information dissemination.--No accrediting agency or 
        association shall be recognized by the Secretary as a reliable 
        authority as to the quality of the education or training 
        offered by an institution seeking to participate in the 
        programs authorized under this title, unless the agency ensures 
        each institution subject to its jurisdiction makes publicly 
        available in a uniform and comprehensible manner, a college 
        consumer profile including, at minimum, information on the 
        institution's--
                    ``(A) mission;
                    ``(B) student demographics;
                    ``(C) accreditation;
                    ``(D) faculty/student ratios;
                    ``(E) faculty qualifications, including the number 
                of faculty with terminal degrees;
                    ``(F) tuition, fees, and other costs of attending 
                the institution;
                    ``(G) student services, including services for 
                students with disabilities;
                    ``(H) policies and procedures for evaluating and 
                accepting credits earned by students transferring from 
                other institutions and the percentage of such credits 
                accepted;
                    ``(I) completion and graduation rates; and
                    ``(J) placement rates and other measures of success 
                in preparing students for entry into or advancement in 
                the workforce.
            ``(2) Publication of college consumer profile.--The 
        contents of the college consumer profile required by paragraph 
        (1) shall be made public through dissemination via the 
        Secretary's data collection and dissemination system. The 
        information required to be disclosed by section 485 may be used 
        by the institution to provide (where applicable) the contents 
        of the college consumer profile, but nothing in this subsection 
        shall be construed to relieve the institution of any 
        information disclosure requirement of such section.''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEFINITIONAL CHANGES.

    Section 502(a) (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 inserting ``at the end of the award year 
                immediately preceding the date of application'' after 
                ``Hispanic students'' in subparagraph (B);
                    (C) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (D) by striking subparagraph (C); and
            (2) by striking paragraph (7).

SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STUDENTS.

    Section 511(c) (20 U.S.C. 1103(c)) is amended--
            (1) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            (2) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) contain such assurances as the Secretary may require 
        that the institution has an enrollment of needy students as 
        required by section 502(b);''.

SEC. 503. ADDITIONAL AMENDMENTS.

    Title V is further amended--
            (1) in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by 
        redesignating clauses (v) and (vi) as clauses (vi) and (vii), 
        respectively, and inserting after clause (iv) the following new 
        clause:
                            ``(v) which provides a program of not less 
                        than 2 years that is acceptable for full credit 
                        toward a bachelor's degree; and'';
            (2) in section 503(b) (20 U.S.C. 1101b(b))--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) 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) by amending paragraph (12) to read as follows:
            ``(12) Establishing community outreach programs and 
        collaborative partnerships between Hispanic-serving 
        institutions and local elementary or secondary schools. Such 
        partnerships may include mentoring, tutoring, or other 
        instructional opportunities that will boost student academic 
        achievement and assist elementary and secondary school students 
        in developing the academic skills and the interest to pursue 
        postsecondary education.'';
                    (C) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (D) by inserting after paragraph (4) the following:
            ``(5) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.''; and
            (3) in section 504(a) (20 U.S.C. 1101c(a))--
                    (A) by striking the following:
    ``(a) Award Period.--
            ``(1) In general.--The Secretary'' and inserting the 
        following:
    ``(a) Award Period.--The Secretary''; and
                    (B) by striking paragraph (2).

SEC. 504. TITLE V AUTHORIZATION.

    Subsection (a) of section 518 of such Act (20 U.S.C. 1103g(a)) is 
amended to read as follows:
    ``(a) Authorizations of Appropriations.--There are authorized to be 
appropriated to carry out this title $96,000,000 for fiscal year 2005 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.''.

                     TITLE VI--TITLE VI AMENDMENTS

SEC. 601. SENSE OF THE HOUSE.

    It is the sense of the House of Representatives that title VI of 
the Higher Education Act of 1965 should be amended as provided in H.R. 
3077 as passed by the House of Representatives on October 21, 2003.

                    TITLE VII--TITLE VII AMENDMENTS

SEC. 701. SENSE OF THE HOUSE.

    It is the sense of the House of Representatives that title VII of 
the Higher Education Act of 1965 should be amended as provided in H.R. 
3076 as passed by the House of Representatives on October 21, 2003.

                    TITLE VIII--CLERICAL AMENDMENTS

SEC. 801. CLERICAL AMENDMENTS.

    (a) Definition.--Section 103 (20 U.S.C. 1003) is amended--
            (1) by redesignating paragraphs (1) through (16) as 
        paragraphs (2) through (17), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
            ``(1) Authorizing committees.--The term `authorizing 
        committees' means the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        the Workforce of the House of Representatives.''.
    (b) Committees.--
            (1) The following provisions are each amended 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'':
                    (A) Section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)).
                    (B) Section 131(c)(4) (20 U.S.C. 1015(c)(4)).
                    (C) Section 206(d) (20 U.S.C. 1026(d)).
                    (D) Section 207(c)(1) (20 U.S.C. 1027(c)(1)).
                    (E) Section 428(g) (20 U.S.C. 1078(g)).
                    (F) Section 428A(a)(4) (20 U.S.C. 1078-1(a)(4)).
                    (G) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).
                    (H) Section 428A(c)(3) (20 U.S.C. 1078-1(c)(3)).
                    (I) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).
                    (J) Section 455(b)(8)(B) (20 U.S.C. 
                1087e(b)(8)(B)).
                    (K) Section 483(c) (20 U.S.C. 1090(c)).
                    (L) Section 486(e) (20 U.S.C. 1093(e)).
                    (M) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
                    (N) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
                    (O) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
                    (P) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
                    (Q) Section 487A(b)(3)(B) (20 U.S.C. 
                1094a(b)(3)(B)).
                    (R) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).
                    (S) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).
            (2) The following provisions are each amended 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'':
                    (A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
                    (B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
                    (C) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
                    (D) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
            (3) Section 206(a) (20 U.S.C. 1026(a)) is amended by 
        striking ``, the Committee on Labor and Human Resources of the 
        Senate, and the Committee on Education and the Workforce of the 
        House of Representatives'' and inserting ``and the authorizing 
        committees''.
            (4) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by 
        striking ``Committee on Appropriations and the Committee on 
        Labor and Human Resources of the Senate and the Committee on 
        Appropriations and the Committee on Education and the Workforce 
        of the House of Representatives'' and inserting ``Committees on 
        Appropriations of the Senate and House of Representatives and 
        the authorizing committees''.
            (5) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is 
        amended by striking ``House Committee on Education and the 
        Workforce and the Senate Committee on Labor and Human 
        Resources'' and inserting ``authorizing committees''.
            (6) Section 428I(h) (20 U.S.C. 1078-9(h)) is amended by 
        striking ``Chairman of the Senate Labor and Human Resources 
        Committee and the House Committee on Education and Labor'' and 
        inserting ``chairpersons of the authorizing committees''.
            (7) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is 
        amended by striking ``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''.
            (8) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-
        2(d)(1)(E)(iii)) is amended by striking ``Chairman and the 
        Ranking Member on the Committee on Labor and Human Resources of 
        the Senate and the Chairman and the Ranking Member of the 
        Committee on Education and Labor of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (9) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 
        1087-2(r)) are each amended by striking ``Chairman and ranking 
        minority member of the Committee on Labor and Human Resources 
        of the Senate, the Chairman and ranking minority member of the 
        Committee on Education and Labor of the House of 
        Representatives,'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (10) Paragraphs (5)(B) and (10) of section 439(r) (20 
        U.S.C. 1087-2(r)) are each amended by striking ``Chairman and 
        ranking minority member of the Senate Committee on Labor and 
        Human Resources and to the Chairman and ranking minority member 
        of the House Committee on Education and Labor'' and inserting 
        ``chairpersons and ranking minority members of the authorizing 
        committees''.
            (11) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is 
        amended by striking ``Chairman and ranking minority member of 
        the Committee on Labor and Human Resources of the Senate and to 
        the Chairman and ranking minority member of the Committee on 
        Education and Labor of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (12) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is 
        amended by striking ``Chairman and Ranking Member of the 
        Committee on Labor and Human Resources of the Senate and the 
        Chairman and Ranking Member of the Committee on Economic and 
        Educational Opportunities of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (13) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is 
        amended by striking ``Chairman and Ranking Minority Member of 
        the Committee on Labor and Human Resources of the Senate and 
        Chairman and Ranking Minority Member of the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (14) Section 482(d) (20 U.S.C. 1089(d)) is amended 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''.
    (c) Additional Clerical Amendments.--
            (1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 
        1075(a)(2)(A)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is 
        amended by striking ``428A or''.
            (3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 
        1078(b)(1)(B)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is 
        amended by striking ``sections 428A and 428B'' and inserting 
        ``section 428B or 428H''.
            (5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is 
        amended by striking ``428A, 428B,'' and inserting ``428B''.
            (6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended 
        by striking ``428A'' and inserting ``428H''.
            (7) The heading for section 433(e) (20 U.S.C. 1083(e)) is 
        amended by striking ``SLS Loans And''.
            (8) Section 433(e) (20 U.S.C. 1083(e)) is amended by 
        striking ``428A, 428B,'' and inserting ``428B''.
            (9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--
                    (A) by inserting ``or'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is 
        amended by striking ``428A(d), 428B(d), 428C,'' and inserting 
        ``428B(d), 428C, 428H,''.
            (11) Section 435(m) (20 U.S.C. 1085(m)) is amended--
                    (A) in paragraph (1)(A), by striking ``, 428A,''; 
                and
                    (B) in paragraph (2)(D), by striking ``428A'' each 
                place it appears and inserting ``428H''.
            (12) Section 438(b)(2)(D) (20 U.S.C. 1087-1(b)(2)(D)) is 
        amended by striking ``division (i) of this subparagraph'' and 
        inserting ``clause (i) of this subparagraph''.
            (13) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is 
        amended--
                    (A) by striking ``SLS and plus'' in the heading and 
                inserting ``Plus''; and
                    (B) by striking ``428A or''.
            (14) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended 
        by striking ``428A or''.
            (15) Nothing in the amendments made by this subsection 
        shall be construed to alter the terms, conditions, and benefits 
        applicable to Federal supplemental loans for students (``SLS 
        loans'') under section 428A as in effect prior to July 1, 1994 
        (20 U.S.C. 1078-1).

    TITLE IX--STUDENT LOAN FORGIVENESS FOR FAMILIES OF 9/11 VICTIMS

SEC. 901. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES, 
              SURVIVING JOINT DEBTORS, AND PARENTS.

    (a) Definitions.--For purposes of this section:
            (1) Eligible public servant.--The term ``eligible public 
        servant'' means an individual who--
                    (A) served as a police officer, firefighter, other 
                safety or rescue personnel, or as a member of the Armed 
                Forces; and
                    (B) died (or dies) or became (or becomes) 
                permanently and totally disabled due to injuries 
                suffered in the terrorist attack on September 11, 2001;
        as determined in accordance with regulations of the Secretary.
            (2) Eligible victim.--The term ``eligible victim'' means an 
        individual who died (or dies) or became (or becomes) 
        permanently and totally disabled due to injuries suffered in 
        the terrorist attack on September 11, 2001, as determined in 
        accordance with regulations of the Secretary.
            (3) Eligible parent.--The term ``eligible parent'' means 
        the parent of an eligible victim if--
                    (A) the parent owes a Federal student loan that is 
                a consolidation loan that was used to repay a PLUS loan 
                incurred on behalf of such eligible victim; or
                    (B) the parent owes a Federal student loan that is 
                a PLUS loan incurred on behalf of an eligible victim 
                who became (or becomes) permanently and totally 
                disabled due to injuries suffered in the terrorist 
                attack on September 11, 2001.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (5) Federal student loan.--The term ``Federal student 
        loan'' means any loan made, insured, or guaranteed under part 
        B, D, or E of title IV of the Higher Education Act of 1965.
    (b) Relief From Indebtedness.--
            (1) In general.--The Secretary shall provide for the 
        discharge or cancellation of--
                    (A) the Federal student loan indebtedness of the 
                spouse of an eligible public servant, as determined in 
                accordance with regulations of the Secretary, including 
                any consolidation loan that was used jointly by the 
                eligible public servant and his or her spouse to repay 
                the Federal student loans of the spouse and the 
                eligible public servant;
                    (B) the portion incurred on behalf of the eligible 
                victim (other than an eligible public servant), of a 
                Federal student loan that is a consolidation loan that 
                was used jointly by the eligible victim and his or her 
                spouse, as determined in accordance with regulations of 
                the Secretary, to repay the Federal student loans of 
                the eligible victim and his or her spouse;
                    (C) the portion of the consolidation loan 
                indebtedness of an eligible parent that was incurred on 
                behalf of an eligible victim; and
                    (D) the PLUS loan indebtedness of an eligible 
                parent that was incurred on behalf of an eligible 
                victim.
            (2) Method of discharge or cancellation.--A loan required 
        to be discharged or canceled under paragraph (1) shall be 
        discharged or canceled by the method used under section 437(a), 
        455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 
        (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is 
        applicable to such loan.
    (c) Facilitation of Claims.--The Secretary shall--
            (1) establish procedures for the filing of applications for 
        discharge or cancellation under this section by regulations 
        that shall be prescribed and published within 90 days after the 
        date of enactment of this Act and without regard to the 
        requirements of section 553 of title 5, United States Code; and
            (2) take such actions as may be necessary to publicize the 
        availability of discharge or cancellation of Federal student 
        loan indebtedness under this section.
    (d) Availability of Funds for Payments.--Funds available for the 
purposes of making payments to lenders in accordance with section 
437(a) for the discharge of indebtedness of deceased or disabled 
individuals shall be available for making payments under section 437(a) 
to lenders of loans as required by this section.
    (e) Applicable to Outstanding Debt.--The provisions of this section 
shall be applied to discharge or cancel only Federal student loans 
(including consolidation loans) on which amounts were owed on September 
11, 2001. Nothing in this section shall be construed to authorize any 
refunding of any repayment of a loan.

              TITLE X--AMENDMENTS TO OTHER EDUCATION LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 1001. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

    (a) General Authority.--Section 104(a)(1)(A) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting 
after ``maintain and operate'' the following: ``, at the Laurent Clerc 
National Deaf Education Center,''.
    (b) Administrative Requirements.--
            (1) In general.--Section 104(b) of the Education of the 
        Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1), by striking ``elementary and secondary 
                education programs'' and inserting ``Laurent Clerc 
                National Deaf Education Center''; and
                    (B) in paragraph (2), by striking ``elementary and 
                secondary education programs'' and inserting ``Laurent 
                Clerc National Deaf Education Center''.
            (2) Academic content standards, achievement standards, and 
        assessments.--Section 104(b) of the Education of the Deaf Act 
        of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the 
        following new paragraph:
    ``(5) The University, in consultation with the Secretary, shall--
            ``(A) not later than the beginning of the 2006-2007 
        academic year, adopt and implement academic content standards, 
        academic achievement standards, and academic assessments as 
        described in section 1111(b) of the Elementary and Secondary 
        Education Act of 1965 for the Laurent Clerc National Deaf 
        Education Center;
            ``(B) develop adequate yearly progress standards for the 
        Center as described in section 1111(2)(C) of such Act; and
            ``(C) make available to the public the results of such 
        assessments, except in such case in which such reporting would 
        not yield statistically reliable information or would reveal 
        personally identifiable information about an individual 
        student.''.

SEC. 1002. AUTHORITY.

    Section 111 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4331) is amended by striking ``the institution of higher education with 
which the Secretary has an agreement under this part'' and inserting 
``the Rochester Institute of Technology''.

SEC. 1003. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

    (a) General Authority.--Section 112(a) of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4332(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence--
                            (i) by striking ``an institution of higher 
                        education'' and inserting ``the Rochester 
                        Institute of Technology, Rochester, New 
                        York,''; and
                            (ii) by striking ``of a'' and inserting 
                        ``of the''; and
                    (B) by striking the second sentence; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``the institution of higher education with 
                which the Secretary has an agreement under this 
                section'' and inserting ``the Rochester Institute of 
                Technology''; and
                    (B) in subparagraph (B), by striking ``the 
                institution'' and inserting ``the Rochester Institute 
                of Technology''.
    (b) Provisions of Agreement.--Section 112(b) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4332(b)) is amended--
            (1) in paragraph (2), by striking ``or other governing body 
        of the institution'' and inserting ``of the Rochester Institute 
        of Technology''; and
            (2) in paragraph (3)--
                    (A) by striking ``or other governing body of the 
                institution'' and inserting ``of the Rochester 
                Institute of Technology'';
                    (B) by striking ``the institution of higher 
                education under the agreement with the Secretary'' and 
                inserting ``the Rochester Institute of Technology by 
                the National Technical Institute for the Deaf''; and
                    (C) by striking ``Committee on Education and Labor 
                of the House of Representatives and to the Committee on 
                Labor and Human Resources of the Senate'' and inserting 
                ``Committee on Education and the Workforce of the House 
                of Representatives and to the Committee on Health, 
                Education, Labor, and Pensions of the Senate''.
    (c) Limitation.--Section 112(c) of the Education of the Deaf Act of 
1986 (20 U.S.C. 4332(c)) is amended in paragraphs (1) and (2) by 
striking ``institution'' each place it appears and inserting 
``Rochester Institute of Technology''.

SEC. 1004. DEFINITIONS.

    Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4351) is amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraphs (4) through (7) as 
        paragraphs (3) through (6), respectively; and
            (3) by adding at the end the following new paragraph:
            ``(7) The term `RIT' means the Rochester Institute of 
        Technology.''.

SEC. 1005. AUDIT.

    (a) Independent Financial and Compliance Audit.--Section 203(b)(1) 
of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(1)) is 
amended by striking the second sentence and inserting the following: 
``NTID shall have an annual independent financial and compliance audit 
made of RIT programs and activities, including NTID programs and 
activities.''.
    (b) Compliance.--Section 203(b)(2) of the Education of the Deaf Act 
of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking ``sections'' and 
all that follows through ``section 207'' and inserting ``sections 
102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) 
through (f) of section 207''.
    (c) Submission of Audits.--Section 203(b)(3) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4353(b)(3)) is amended--
            (1) by inserting after ``Secretary'' the following: ``and 
        the Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate''; and
            (2) by striking ``or the institution authorized to 
        establish and operate the NTID under section 112(a)'' and 
        inserting ``or RIT''.
    (d) Limitations Regarding Expenditure of Funds.--Section 
203(c)(2)(A) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4353(c)(2)(A)) is amended in the fifth sentence by striking ``the 
Committee on Education and Labor of the House of Representatives and 
the Committee on Labor and Human Resources of the Senate'' and 
inserting ``the Committee on Education and the Workforce of the House 
of Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate''.

SEC. 1006. REPORTS.

    (a) Technical Amendments.--Section 204 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4354) is amended in the matter preceding 
paragraph (1)--
            (1) by striking ``or other governing body of the 
        institution of higher education with which the Secretary has an 
        agreement under section 112'' and inserting ``of RIT''; and
            (2) by striking ``Committee on Education and Labor of the 
        House of Representatives and the Committee on Labor and Human 
        Resources of the Senate'' and inserting ``Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor, and Pensions of the 
        Senate''.
    (b) Contents of Report.--Section 204 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4354) is amended--
            (1) in paragraph (2)(C), by striking ``upon graduation/
        completion'' and inserting ``within one year of graduation/
        completion''; and
            (2) in paragraph (3)(B), by striking ``of the institution 
        of higher education with which the Secretary has an agreement 
        under section 112, including specific schedules and analyses 
        for all NTID funds, as required under section 203'' and 
        inserting ``of RIT programs and activities''.

SEC. 1007. LIAISON FOR EDUCATIONAL PROGRAMS.

    Section 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4356(a)) is amended by striking ``Not later than 30 days after the date 
of enactment of this Act, the'' and inserting ``The''.

SEC. 1008. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE 
              NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

    Section 207(a)(2) of the Education of the Deaf Act of 1986 (20 
U.S.C. 4357(a)(2)) is amended by striking ``or other governing body of 
the institution of higher education with which the Secretary has an 
agreement under section 112'' and inserting ``of RIT''.

SEC. 1009. OVERSIGHT AND EFFECT OF AGREEMENTS.

    Section 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359(a)) is amended--
            (1) by striking ``the institution of higher education with 
        which the Secretary has an agreement under part B of title I'' 
        and inserting ``RIT''; and
            (2) 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 ``Committee on 
        Education and the Workforce of the House of Representatives and 
        the Committee on Health, Education, Labor, and Pensions of the 
        Senate''.

SEC. 1010. AUTHORIZATION OF APPROPRIATIONS.

    (a) Monitoring and Evaluation Activities.--Section 205(c) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by 
striking ``fiscal years 1998 through 2003'' and inserting ``fiscal 
years 2004 through 2009''.
    (b) Federal Endowment Programs for Gallaudet University and the 
National Technical Institute for the Deaf.--Section 207(h) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is amended in 
paragraphs (1) and (2) by striking ``fiscal years 1998 through 2003'' 
each place it appears and inserting ``fiscal years 2004 through 2009''.
    (c) General Authorization of Appropriations.--Section 212 of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
            (1) in the matter preceding paragraph (1) in subsection 
        (a), by striking ``fiscal years 1998 through 2003'' and 
        inserting ``fiscal years 2004 through 2009''; and
            (2) in subsection (b), by striking ``fiscal years 1998 
        through 2003'' and inserting ``fiscal years 2004 through 
        2009''.

                   PART B--ADDITIONAL EDUCATION LAWS

SEC. 1021. AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998.

    (a) Repeals of Expired and Executed Provisions.--The following 
provisions of the Higher Education Amendments of 1998 are repealed:
            (1) Study of market mechanisms in federal student loan 
        programs.--Section 801 (20 U.S.C. 1018 note).
            (2) Study of feasibility of alternate financial instruments 
        for determining lender yields.--Section 802.
            (3) Student related debt study.--Section 803 (20 U.S.C. 
        1015 note)
            (4) Study of opportunities for participation in athletic 
        programs.--Section 805 (20 U.S.C. 1001 note).
            (5) Community scholarship mobilization.--Part C (20 U.S.C. 
        1070 note).
            (6) Incarcerated youth.--Part D (20 U.S.C. 1151).
            (7) Improving united states understanding of science, 
        engineering, and technology in east asia.--Part F (20 U.S.C. 
        1862 note).
            (8) Web-based education commission.--Part J.
    (b) Extensions of Authorizations and Studies.--
            (1) Transfer of credit.--Section 804(b) (20 U.S.C. 1099b 
        note) is amended--
                    (A) by striking ``one year after the date of 
                enactment of this Act'' and inserting ``September 30, 
                2006''; and
                    (B) by inserting ``and policies of institutions of 
                higher education'' after ``agencies or associations''.
            (2) Cohort default rate study.--Section 806 is amended--
                    (A) in subsection (a), by striking ``higher 
                education at which less'' and inserting ``higher 
                education. The study shall also review the effect of 
                cohort default rates specifically on institutions of 
                higher education at which less''; and
                    (B) in subsection (c), by striking ``September 30, 
                1999,'' and inserting ``September 30, 2006,''.
            (3) Violence against women.--Section 826 (20 U.S.C. 1152) 
        is amended--
                    (A) in subsection (g)--
                            (i) by striking ``1999'' and inserting 
                        ``2005''; and
                            (ii) by striking ``4 succeeding'' and 
                        inserting ``5 succeeding''; and
                    (B) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively.
            (4) Underground railroad.--Subsection (c) of section 841 
        (20 U.S.C. 1153(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $3,000,000 for fiscal year 2005 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.''.
    (c) Disbursement of Student Loans.--Section 422(d) of the Higher 
Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1696) is 
amended by adding at the end the following new sentence: ``Such 
amendments shall also be effective on and after July 1, 2005.''.

SEC. 1022. TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF 
              1978.

    (a) Title I Authorization.--Section 110(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1810(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2005''; and
            (2) by striking ``4 succeeding'' each place it appears and 
        inserting ``5 succeeding''.
    (b) Title III Reauthorization.--Section 306(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1836(a)) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (c) Title IV Reauthorization.--Section 403 of the Tribal Economic 
Development and Technology Related Education Assistance Act of 1990 (25 
U.S.C. 1852) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (d) Additional Amendments.--The Tribally Controlled Community 
College or University Assistance Act of 1978 is further amended--
            (1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking 
        ``in the field of Indian education'' and inserting ``in the 
        field of Tribal Colleges and Universities and Indian higher 
        education'';
            (2) in section 2(b), by striking paragraph (5) and 
        inserting the following:
            ``(5) Eligible credits earned in a continuing education 
        program shall be determined as one credit for every 10 contact 
        hours for institutions on a quarter system, and 15 contact 
        hours for institutions on a semester system, of participation 
        in an organized continuing education experience under 
        responsible sponsorship, capable direction, and qualified 
        instruction, as described in the criteria established by the 
        International Association for Continuing Education and 
        Training, and may not exceed 20 percent of an institution's 
        total Indian student count.''; and
            (3) in section 103 (25 U.S.C. 1804), by striking ``and'' at 
        the end of paragraph (2), by striking the period at the end of 
        paragraph (3) and inserting ``; and'', and by inserting after 
        paragraph (3) the following new paragraph:
            ``(4) has been accredited by a nationally recognized 
        accrediting agency or association determined by the Secretary 
        of Education 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.''.

SEC. 1023. NAVAJO COMMUNITY COLLEGE ACT.

    Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 
640c-1(a)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 1024. EDUCATION AMENDMENTS OF 1992.

    Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070 
note) is amended--
            (1) by striking ``1999'' and inserting ``2005''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 1025. STUDY OF STUDENT LEARNING OUTCOMES AND PUBLIC 
              ACCOUNTABILITY.

    (a) Study Required.--The Secretary shall provide for the conduct a 
study of the best practices of States in assessing undergraduate 
postsecondary student learning, particularly as such practices relate 
to public accountability systems.
    (b) Characteristics of the Association.--Such study shall be 
conducted by an association or organization with specific expertise and 
knowledge in state practices and access to necessary state officials 
(in this section referred to as the ``association''). The association 
responsible for the study under this section shall be a national, non-
partisan or bi-partisan entity representing States or State officials 
with expertise in evaluative and qualitative policy research for best 
practice models, the capacity to convene experts, and to formulate 
policy recommendations.
    (c) Required Subjects of Study.--In performing the study, the 
association shall, at a minimum, examine the following:
            (1) The current status of institutional and state efforts 
        to embed student learning assessments into the state-level 
        public accountability frameworks.
            (2) The extent to which there is commonality among 
        educators and accrediting agencies on learning standards for 
        the associates and bachelors degrees.
            (3) The reliability, rigor, and generalizability of 
        available instruments to assess general education at the 
        undergraduate level.
            (4) Roles and responsibilities for public accountability 
        for student learning.
    (d) Consultation.--
            (1) National committee.--The association shall establish 
        and consult with a national committee. The committee shall meet 
        not less than twice a year to review the research, identify 
        best practice models, and review recommendations.
            (2) Membership.--The national advisory committee shall 
        consist of a representative of the Secretary of Education and 
        individuals with expertise in--
                    (A) State accountability systems;
                    (B) student learning assessments;
                    (C) student flow data;
                    (D) transitions between K-12 and higher education; 
                and
                    (E) federal higher education policy.
            (3) Additional expertise.--The association may augment this 
        committee with other expertise, as appropriate.
    (e) Congressional Consultation.--The association shall consult on a 
regular basis with the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health Education Labor 
and Pensions of the Senate in carrying out the study required by this 
section.
    (f) Report.--The association shall, not later than two years after 
the date of enactment of this Act, prepare and submit a report on the 
study required by this section to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate.
                                 <all>