[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2960 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2960

               To amend the Higher Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 2005

 Mr. George Miller of California (for himself, Mr. Kildee, Ms. Pelosi, 
  Mr. Owens, Mr. Payne, Ms. Woolsey, Mr. Hinojosa, Mrs. McCarthy, Mr. 
  Tierney, Mr. Wu, Mr. Kucinich, Mr. Holt, Ms. McCollum of Minnesota, 
Mrs. Davis of California, Mr. Davis of Illinois, Mr. Grijalva, Mr. Van 
   Hollen, Mr. Ryan of Ohio, Mr. Bishop of New York, Mr. Barrow, Mr. 
Higgins, Mr. Doggett, Ms. Matsui, Ms. Baldwin, Mr. Michaud, Mrs. Jones 
   of Ohio, Mr. Stark, Mr. Conyers, Ms. Solis, Ms. Berkley, and Mr. 
 Strickland) introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
               To amend the Higher Education Act of 1965.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Findings.
                TITLE I--BOOSTING COLLEGE OPPORTUNITIES

Sec. 101. Pell grants.
Sec. 102. College affordability and accountability.
        ``Sec. 132. State commitment to affordable college education.
        ``Sec. 133. Cost containment strategies.
        ``Sec. 401A. Incentives and rewards: Pell Plus.
        ``Sec. 486A. Articulation agreement demonstration program.
Sec. 103. Elimination of loan fees to borrowers.
Sec. 104. Authority to refinance consolidation loans.
Sec. 105. Providing low cost loans.
Sec. 106. Recapture of excess interest.
Sec. 107. Termination of excessive allowances.
Sec. 108. Public service scholarships.
        ``Sec. 428K. Loan forgiveness for public service employees.
Sec. 109. Significantly simplifying the student aid application 
                            process.
Sec. 110. Authorizations of appropriations for campus-based aid.
        ``Sec. 404H. Authorization of appropriations.
Sec. 111. Special programs for students whose families are engaged in 
                            migrant and seasonal farm work.
Sec. 112. Initiative to enhance college graduation rates and to 
  ``subpart 8--initiative to enhance college graduation rates and to 
                       accelerate time to degree
        ``Sec. 419P. Program authorized.
Sec. 113. Consolidation loan lender of choice.
Sec. 114. Establishing additional safeguards on schools acting as 
                            lenders under the Federal Family Education 
                            Loan Program.
Sec. 115. Boosting opportunities for low-income parents to pursue 
                            college degrees.
Sec. 116. Support for community service in college work-study program.
Sec. 117. B.J. Stupak Olympic Scholarships.
Sec. 118. Reduction of guaranty agency payments.
                       TITLE II--TEACHER QUALITY

Sec. 201. Teacher Recruiting and Preparation.
                         ``Part C--TEACH Grants

        ``Sec. 231. Purposes.
        ``Sec. 232. Program established.
        ``Sec. 233. Eligibility and applications for Grants.
  ``Part D--Recruiting Teachers With Math, Science, or Language Majors

        ``Sec. 241. Program authorized.
        ``Sec. 242. Authorization of appropriations.
Sec. 202. Teacher Quality Enhancement Grants.
        ``Sec. 206. Accountability and evaluation.
        ``Sec. 207. Accountability for programs that prepare teachers.
        ``Sec. 208. State functions.
        ``Sec. 209. General provisions.
                 TITLE III--ENHANCING COLLEGE OUTREACH

Sec. 301. Federal TRIO Program.
Sec. 302. GEARUP.
Sec. 303. Leveraging Educational Assistance Partnership.
 TITLE IV--OPPORTUNITIES AT HISPANIC-SERVING COLLEGES AND UNIVERSITIES

Sec. 401. Postbaccalaureate opportunities for Hispanic Americans.
   ``Part B--Promoting Postbaccalaureate Opportunities for Hispanic 
                               Americans

        ``Sec. 511. Findings and purposes.
        ``Sec. 512. Program authority and eligibility.
        ``Sec. 513. Authorized activities.
        ``Sec. 514. Application and duration.
Sec. 402. Authorization of appropriations for Hispanic Serving 
                            Institutions.
         TITLE V--HISTORICALLY BLACK COLLEGES AND UNIVERSITIES

Sec. 501. Centers of excellence.
                    ``Part E--Centers of Excellence

        ``Sec. 251. Purposes; definitions.
        ``Sec. 252. Centers of excellence.
        ``Sec. 253. Authorization of appropriations.
Sec. 502. Authorization of appropriations.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.).

SEC. 3. FINDINGS.

    The Congress finds the following:
            (1) A college education is more important than ever, and 
        the Federal Government should significantly increase its 
        investment to make college more affordable and accessible to 
        all students because--
                    (A) recent shifts in the economy have increased the 
                demand for college-educated workers and increased the 
                wage gap between college-educated workers and those 
                without a degree;
                    (B) jobs requiring some postsecondary education are 
                expected to account for about 42 percent of total job 
                growth from 2000 through 2010; and
                    (C) closing the college participation gap between 
                White and minority students would result in $85 billion 
                in increased tax revenue.
            (2) Increased access to college and better retention rates 
        are necessary because--
                    (A) seven times as many students from high-income 
                families graduate from college by age 24 as students 
                from low-income families;
                    (B) forty percent of all white students ages 18 
                through 24 are enrolled in institutions of higher 
                education, whereas only 30 percent of all African-
                Americans and only 16 percent of all Hispanics are 
                enrolled in institutions of higher education;
                    (C) nearly 4 out of every 10 Hispanics enrolled 
                full time in 4-year colleges drop out within 3 years of 
                their initial enrollment;
                    (D) African-Americans are half as likely as white 
                students to complete a Bachelor's degree in 4 years; 
                and
                    (E) low-income students are half as likely as 
                upper-income students to complete a Bachelor's degree 
                in 4 years.
            (3) High loan debt and long work hours threaten college 
        access:
                    (A) Seventy percent of such Federal student aid was 
                in the form of loans and less than 20 percent was in 
                the form of grants--while in 1975 grants accounted for 
                75 percent of Federal student aid funding.
                    (B) The maximum Pell grant scholarship is worth 
                nearly $800 less, in real terms, than the maximum award 
                in 1975-1976.
                    (C) The typical student now graduates with $19,000 
                in debt.
                    (D) Forty-six percent of all students who work in 
                addition to being full-time students report 25 hours or 
                more a week of employment.
                    (E) Half of those employed more than 25 hours a 
                week report that working hurts their grades and 
                retention in college, and students who work more than 
                35 hours a week are considerably less likely to 
                complete a year of college than those who work less 
                than 15 hours a week.
                    (F) Low-income, college-qualified high school 
                graduates have an annual ``unmet need'' of $3,800 in 
                college expenses, expenses not covered by grants, 
                loans, work, or family savings.
            (4) There is a severe shortage of qualified teachers, 
        especially in high-need fields and low-income areas because--
                    (A) approximately one-third of America's teachers 
                leave teaching sometime during their first 3 years of 
                teaching and almost half leave during the first 5 
                years;
                    (B) overall turnover rate for teachers in high-
                poverty areas is almost 33 percent higher than it is 
                for teachers in all schools; and
                    (C) in low-poverty secondary schools, approximately 
                one-third of students are taught by a teacher who lacks 
                either a college degree in the subject area in which 
                the teacher teaches or certification in such subject 
                area, while in high-poverty secondary schools, 
                approximately one-half of students are taught by such a 
                teacher.

                TITLE I--BOOSTING COLLEGE OPPORTUNITIES

SEC. 101. PELL GRANTS.

    (a) Maximum Grants.--Section 401(b)(2)(A) (20 U.S.C. 
1070a(b)(2)(A)) is amended by striking clauses (i) through (v) and 
inserting the following:
            ``(i) $7,600 for academic year 2006-2007;
            ``(ii) $8,600 for academic year 2007-2008;
            ``(iii) $9,600 for academic year 2008-2009;
            ``(iv) $10,600 for academic year 2009-2010; and
            ``(v) $11,600 for academic year 2010-2011,''.
    (b) Year-Round Pell Grants.--Section 401 is further amended by 
adding at the end the following new subsection:
    ``(k) Year-Round Pell Grants.--
            ``(1) Pilot program established.--The Secretary shall 
        establish in accordance with this subsection a year-round Pell 
        grant pilot program. Any institution of higher education that 
        desires to participate in the program under this subsection 
        shall submit an application to the Secretary at such time and 
        containing or accompanied by such information and assurances as 
        the Secretary may require. The Secretary may select not more 
        than 500 institutions of higher education for participation in 
        the program.
            ``(2) Program elements.--With respect to students who are 
        eligible for a Pell grant under this section and who are 
        enrolled in institutions participating in the program under 
        this subsection, the Secretary is authorized--
                    ``(A) to award such students two Pell grants in one 
                calendar year to permit such students to accelerate 
                progress towards their degree or certificate objectives 
                by enrolling in academic programs for 12 rather than 9 
                months of the year at participating institutions; and
                    ``(B) to award such two Pell grants to such 
                students in a total amount up to 133 percent of the 
                maximum Pell under subsection (b)(2)(A) that is 
                applicable for the academic year.
            ``(3) Limitation.--The Secretary shall limit the awarding 
        of additional Pell grants under this subsection in a single 
        calendar year to students who attend bachelor's or associate's 
        degree-granting institutions with the following 
        characteristics:
                    ``(A) in the case of a bachelor's degree-granting 
                institution, the graduation rate for the institution of 
                higher education reported by the Integrated 
                Postsecondary Education Data System for the preceding 
                five academic years is at least 50 percent;
                    ``(B) in the case of an associate's degree-granting 
                institution, the completion rate for the institution of 
                higher education reported by the Integrated 
                Postsecondary Education Data System for the preceding 
                three academic years has improved by a total of at 
                least five percent; and
                    ``(C) the average time of enrollment required to 
                complete a degree at the institution--
                            ``(i) among students who enter as freshman 
                        and earn bachelor's degrees is 14 or fewer 
                        quarters, or 9 or fewer semesters or the 
                        equivalent; or
                            ``(ii) among students who enter as full-
                        time freshmen and earn associate's degrees is 8 
                        or fewer quarters, or 7 or fewer semesters 
                        equivalent.
            ``(4) Termination; evaluation.--The authority of the 
        Secretary under this subsection shall cease to be effective on 
        October 1, 2011. Not later than October 1, 2010, the Secretary 
        shall conduct an evaluation of the program under this 
        subsection and submit to the Congress a report on the results 
        of such evaluation.''.
    (c) Elimination of Tuition Sensitivity Provision.--Section 401(b) 
is further amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) though (8) as 
        paragraphs (3) through (7), respectively.

SEC. 102. COLLEGE AFFORDABILITY AND ACCOUNTABILITY.

    (a) State Commitment to Affordable College Education.--Title I is 
amended by inserting after section 131 (20 U.S.C. 1015) the following 
new section:

``SEC. 132. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

    ``(a) Maintenance of Effort Required.--No State shall reduce the 
total amount provided by the State for public institutions of higher 
education in such State for any academic year beginning on or after 
July 1, 2005, to an amount which is less than the average amount 
provided by such State to such institutions of higher education during 
the academic years between July 1, 1998, and July 1, 2003.
    ``(b) Withholding of All Education Administrative Funds for 
Violations.--Notwithstanding any other provision of law, the Secretary 
of Education shall withhold from any State that violates subsection (a) 
any amount that would otherwise be available to the State for 
administrative expenses and costs under any Federal education program 
until such State has corrected such violation.''.
    (b) Cost Containment Strategies.--Title I is further amended by 
inserting after section 132 (as added by section 4) the following new 
section:

``SEC. 133. COST CONTAINMENT STRATEGIES.

    ``(a) Requirements.--Each institution of higher education shall in 
accordance with the requirements of this section engage in, and report 
upon, cost containment strategies. Such strategies may include (but are 
not limited to) the following activities:
            ``(1) bulk purchasing;
            ``(2) joint faculty appointments;
            ``(3) streamlining administration;
            ``(4) energy conservation and savings;
            ``(5) technological innovations; and
            ``(6) joint degree offerings.
    ``(b) Five-Year Plans.--Within 2 years after the enactment of the 
Act, each institution of higher education shall submit a 5-year plan on 
their cost containment strategies and any progress made to date to the 
Secretary of Education.
    ``(c) Research Into Cost Containment Methods.--
            ``(1) Research authorized.--From the funds appropriated 
        under paragraph (2), the Secretary is authorized--
                    ``(A) to conduct or provide for the conduct of 
                research to identify methods of cost containment 
                currently utilized by institutions of higher education 
                and systems of such institutions, and research into 
                other possible methods of cost containment;
                    ``(B) to disseminate--
                            ``(i) the information obtained by such 
                        research to such institutions and systems; and
                            ``(ii) other research that has identified 
                        successful methods of cost containment;
                    ``(C) to publicly recognize institutions of higher 
                education that are doing an effective job at cost 
                containment; and
                    ``(D) to work together with such institutions and 
                systems to implement these methods.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $1,000,000 for fiscal year 2006 and such sums as may be 
        necessary for each of the 5 succeeding fiscal years.
    ``(d) Consumer Information.--
            ``(1) Annual report required.--
                    ``(A) Contents of report.--The Secretary shall 
                annually prepare and publish a report on college 
                affordability in America. The college affordability 
                report shall provide, at a minimum, comprehensive 
                information on--
                            ``(i) the sticker price, total price of 
                        attendance, net tuition price, and net access 
                        price for every institution of higher education 
                        that participates in the Federal student aid 
                        programs under title IV of this Act;
                            ``(ii) the percentage change in the listed 
                        sticker price, total price of attendance, net 
                        tuition price, and net access price over a 3-, 
                        5-, and 10-year time period for each such 
                        institution; and
                            ``(iii) the level of Federal and State 
                        support for higher education per capita and per 
                        pupil.
                    ``(B) Advisory group.--To ensure that the annual 
                college affordability in America report provides 
                consumer-friendly information, the Secretary shall 
                convene an advisory group of students, parents, and 
                college officials to help determine the information 
                that shall be included in the report.
            ``(2) Data dissemination.--The Secretary shall make 
        publicly available the data collected pursuant to this section, 
        including an institution's net price tuition index as 
        calculated in accordance with subsection (e). 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 average prices 
        for full-time undergraduate students and the institution's rate 
        of increase in the sticker price, total price of attendance, 
        net tuition price, and net access price.
            ``(3) Website enhancement.--
                    ``(A) Website information.--In order to further 
                enhance public knowledge and understanding of college 
                affordability, the Secretary shall modify the college 
                opportunities on line (COOL) web site. The goal of such 
                changes shall be to make the website the single best 
                source of information about applying to and paying for 
                a postsecondary education. Such changes shall make the 
                website more user friendly and facilitate the 
                comparison of multiple institutions at the same time. 
                Such website shall provide detailed tuition and student 
                aid data for each institution (including data from the 
                annual college affordability in America report). As 
                part of improving the website, the Secretary shall 
                establish an advisory board of students and parents to 
                guide the redesign. The college price calculator 
                required by paragraph (4) shall be included on the COOL 
                website.
                    ``(B) Availability in other form.--In addition, the 
                Secretary shall publish all of the institutional 
                information found on the COOL website, minus the 
                college price calculator, and instruct all local 
                educational agencies to notify all their secondary 
                schools of the publication of the COOL web site, both 
                on-line and in-print, and of the steps necessary to 
                procure such information both on-line and in-print.
            ``(4) College price calculator.--
                    ``(A) Establishment.--The Secretary shall establish 
                a system for reporting to prospective students and 
                families on the net tuition price of institutions of 
                higher education. Using the most recent data available, 
                the Secretary shall make available the amount of aid 
                typically granted for students based on family income 
                and college attended. Such information shall be made 
                available in the form of a web site price calculator 
                that permits students to be able to enter an 
                institution of higher education and their family income 
                and be presented the sticker price, net tuition price, 
                and net access price for students in their income 
                bracket in order to determine the approximate cost of 
                attending such a school. The calculator shall include a 
                clear disclaimer that financial aid decisions are made 
                on a case-by-case basis and that the included 
                calculations are based on previous years' data and can 
                therefore serve only as general guidelines for the 
                financial aid that a student may expect to receive.
                    ``(B) Information distribution by institutions.--
                Each institution of higher education shall make 
                available its sticker price, total price of attendance, 
                net tuition price, and net access price and list 
                examples of what families in each of the quartile 
                income brackets might be expected to pay in the net 
                tuition price for the most recent academic year. This 
                information shall be provided in written form and 
                distributed to all students and applicants and made 
                widely available to the public.
    ``(e) Net Tuition Price Index.--
            ``(1) In general.--The Secretary shall, on the basis of the 
        data submitted under subsection (a), calculate a net tuition 
        price 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 on line (COOL) website.
            ``(2) Calculation of index.--The net tuition price index 
        shall be equal to the percentage increase in the net tuition 
        price charged for a first-time, full-time, full-year 
        undergraduate student between a preceding academic year and the 
        most recent academic year for which satisfactory data are 
        available.
    ``(f) Definitions.--For the purposes of this section:
            ``(1) Net access price.--The term `net access price' means 
        the average total price of attendance for full-time 
        undergraduate students, minus the average grants, loans, and 
        work-study provided to such students, for any academic year.
            ``(2) Net tuition price.--The term `net tuition price' 
        means the average tuition and fees charged to full-time 
        undergraduate students, minus the average grants provided to 
        such students, for any academic year.
            ``(3) Sticker price.--The term `sticker price' means the 
        average tuition and fees charged to full-time undergraduate 
        students by an institution of higher education for any academic 
        year.
            ``(4) Total price of attendance.--The term `total price of 
        attendance' means the average tuition and fees charged to full-
        time undergraduate students, as well as the average of the 
        other expenses of such students related to obtaining a higher 
        education, including housing (room and board if the student 
        lives on campus, or rent or related housing costs if the 
        student does not live on campus), books, transportation, for 
        any academic year.
            ``(5) Tuition.--The term `tuition' means the average price 
        of or payment for actual instruction of full-time undergraduate 
        students at an institution of higher education, for any 
        academic year.''.
    (c) Pell Plus.--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. INCENTIVES AND REWARDS: PELL PLUS.

    ``(a) Rewards for Low Tuition.--For any institution of higher 
education that, for academic year 2005-2006 or any succeeding academic 
year, such institution's annual net tuition price increase (expressed 
as a percentage) for the most recent academic year for which 
satisfactory data is available is equal to or less than the percentage 
change in the higher education price index for such academic year, the 
Secretary shall, notwithstanding any other provision of the law, 
provide such institution an amount sufficient to provide a 25 percent 
increase under subpart 1 of part A of title IV to each Pell Grant 
recipient attending such institution for the next award year beginning 
after the date of such determination. Each such institution shall 
distribute any amounts received under this subsection among such Pell 
Grant recipients by increasing the amount of their Pell Grant awards by 
25 percent.
    ``(b) Rewards for Guaranteed Tuition.--
            ``(1) Bonus.--For each institution of higher education that 
        the Secretary of Education determines complies with the 
        requirements of paragraph (2) or paragraph (3) of this 
        subsection, the Secretary shall, notwithstanding any other 
        provision of the law, provide such institution an amount 
        sufficient to provide a 10 percent increase under subpart 1 of 
        part A of title IV to each Pell Grant recipient attending such 
        institution for the next award year beginning after the date of 
        such determination. Each such institution shall distribute any 
        amounts received under this subsection among such Pell Grant 
        recipients by increasing the amount of their Pell Grant awards 
        by 10 percent.
            ``(2) 4-year institutions.--An institution of higher 
        education that provides a program of instruction for which it 
        awards a bachelor's degree complies with the requirements of 
        this paragraph if such institution guarantees that for any 
        academic year beginning on or after July 1, 2005, and for each 
        of the 5 succeeding continuous academic years, the net tuition 
        price charged to an undergraduate student will not exceed--
                    ``(A) the amount that the student was charged for 
                an academic year at the time he or she first enrolled 
                in the institution of higher education, plus
                    ``(B) the product of the percentage increase in the 
                higher education price index for the prior academic 
                year, or the most recent prior academic year for which 
                data is available, multiplied by the amount determined 
                under subparagraph (A).
            ``(3) Less than 4-year institutions.--An institution of 
        higher education that does not provide a program of instruction 
        for which it awards a bachelor's degree complies with the 
        requirements of this paragraph if such institution guarantees 
        that for any academic year (or the equivalent) beginning on or 
        after July 1, 2005, and for each of the 1.5 succeeding 
        continuous academic years, the net tuition price charged to an 
        undergraduate student will not exceed--
                    ``(A) the amount that the student was charged for 
                an academic year at the time he or she first enrolled 
                in the institution of higher education, plus
                    ``(B) the product of the percentage increase in the 
                higher education price index for the prior academic 
                year, or the most recent prior academic year for which 
                data is available, multiplied by the amount determined 
                under subparagraph (A).
    ``(c) Maintaining Affordable Tuition.--For any institution of 
higher education whose increase in the annual net tuition price 
(expressed as a percentage), for the most recent academic year for 
which satisfactory data is available, is greater than the percentage 
increase in the higher education price index for such academic year, 
the Secretary shall require such institution to submit to the Secretary 
the following information, within 6 months of such determination:
            ``(1) a detailed report on the exact causes for the net 
        tuition price increase that outlines revenues and expenditures; 
        and
            ``(2) cost containment strategies to lower net tuition 
        prices.
    ``(d) Definitions.--
            ``(1) Net tuition price.--The term `net tuition price' has 
        the same meaning as provided in section 133(f).
            ``(2) Higher education price index.--The term `higher 
        education price index' means a statistical measure of change 
        over time in the prices of a fixed market basket of goods and 
        services purchased by colleges and universities through current 
        fund educational and general expenditures (excluding 
        expenditures for research), as developed by the Bureau of Labor 
        Statistics pursuant to section 131(c)(4).''.
    (d) Articulation Agreement 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. ARTICULATION AGREEMENT DEMONSTRATION PROGRAM.

    ``(a) Purpose; Definition.--
            ``(1) Purpose.--It is the purpose of this section to allow 
        demonstration programs that are monitored by the Department of 
        Education to encourage institutions of higher education to 
        enter into articulation agreements or consortia groups, as a 
        means to lower tuition prices to students.
            ``(2) Definition.--For the purposes of this section, the 
        term `articulation agreement' means an agreement between 
        institutions of higher education that specifies the 
        acceptability of courses in transfer toward meeting specific 
        degree requirements.
    ``(b) Demonstration Programs Authorized.--
            ``(1) In general.--The Secretary is authorized to select 
        institutions of higher education, systems of such institutions, 
        or consortia of such institutions for voluntary participation 
        in an articulation agreement demonstration program.
            ``(2) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraphs (B), (C), and (D), only an institution of 
                higher education that is eligible to participate in 
                programs under this title shall be eligible to 
                participate in the articulation program authorized 
                under this section.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102(a)(1)(C) shall not 
                be eligible to participate in the articulation program 
                authorized under this section.
                    ``(C) Special rule.--Subject to subparagraph (B), 
                an institution of higher education that meets the 
                requirements of subsection (a) of section 102, other 
                than the requirement of paragraph (3)(A) or (3)(B) of 
                such subsection, and that provides a 2-year or 4-year 
                program of instruction for which the institution awards 
                an associate or baccalaureate degree, shall be eligible 
                to participate in the demonstration program authorized 
                under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution, system, or consortium 
        of institutions desiring to participate in a 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.--Each application shall include--
                    ``(A) a description of the institution, system, or 
                consortium's consultation with a recognized accrediting 
                agency or association with respect to quality 
                assurances for the articulation programs to be offered;
                    ``(B) a description of the articulation program to 
                be offered;
                    ``(C) a description of the students to whom the 
                articulation programs will be offered;
                    ``(D) an assurance that the institution, system, or 
                consortium will offer full cooperation with the ongoing 
                evaluations of the demonstration program provided for 
                in this section; and
                    ``(E) such other information as the Secretary may 
                require.
    ``(d) Selection.--
            ``(1) In general.--For the first year of the demonstration 
        program authorized under this section, the Secretary is 
        authorized to select for participation in the program not more 
        than 100 institutions, systems of institutions, or consortia of 
        institutions. For the third year of the demonstration program 
        authorized under this section, the Secretary may select not 
        more than 250 institutions, systems, or consortia, in addition 
        to the institutions, systems, or consortia selected pursuant to 
        the preceding sentence, to participate in the demonstration 
        program if the Secretary determines that such expansion is 
        warranted based on the evaluations conducted in accordance with 
        subsections (f) and (g).
            ``(2) Considerations.--In selecting institutions to 
        participate in the articulation program in the first or 
        succeeding years of the program, the Secretary shall take into 
        account--
                    ``(A) the number and quality of applications 
                received;
                    ``(B) the Department's capacity to oversee and 
                monitor each institution's participation;
                    ``(C) an applicant's--
                            ``(i) financial responsibility;
                            ``(ii) administrative capability; and
                    ``(D) the need to ensure the participation of a 
                diverse group of institutions with respect to size, 
                mission, and geographic distribution.
            ``(3) Priority.--In selecting institutions to participate 
        in the articulation program in the first or succeeding years of 
        the program, the Secretary shall give priority to applicants 
        that involve a large number of schools; public and private 
        agreements; innovative technology to help reduce costs; and, 
        multi-state projects.
            ``(4) Notification.--The Secretary shall make available to 
        the public and to the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        the Workforce of the House of Representatives a list of 
        institutions, systems or consortia selected to participate in 
        the articulation program authorized by this section.
    ``(e) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration programs authorized under this section on an 
        annual basis. Such evaluations specifically shall review--
                    ``(A) the extent to which the institution, system 
                or consortium has met the goals set forth in its 
                application to the Secretary;
                    ``(B) the number and types of institutions 
                participating in the programs offered;
                    ``(C) the cost containment strategies pursued and 
                the success of such strategies; and
                    ``(D) the effective use of technologies to keep 
                college prices low, while maintaining quality.
            ``(2) Reports.--
                    ``(A) In general.--Within 18 months of the 
                initiation of the demonstration program, the Secretary 
                shall report to the Committee on Health, Education, 
                Labor, and Pensions of the Senate and the Committee on 
                Education and the Workforce of the House of 
                Representatives with respect to the evaluations of the 
                demonstration programs authorized under this section.
                    ``(B) Additional reports.--The Secretary shall 
                provide additional reports to the Committee on Health, 
                Education, Labor, and Pensions of the Senate and the 
                Committee on Education and the Workforce of the House 
                of Representatives on an annual basis regarding--
                            ``(i) the demonstration programs authorized 
                        under this section; and
                            ``(ii) best practices to contain college 
                        costs.''.
    (e) Advisory Committee on Student Financial Assistance.--Section 
491(j) (20 U.S.C. 1098(j)) is amended
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(6) convene a task force of experts, to be representative 
        of the key constituents in higher education--
                    ``(A) to determine the best methods to finance 
                higher education in the long-term;
                    ``(B) to help public institutions utilize long-term 
                budgeting to plan for the future;
                    ``(C) to review the trends of financing of higher 
                education;
                    ``(D) to define the role played by the States, the 
                Federal Government, families, and outside entities in 
                financing higher education, and determine the best 
                methods to strengthen this partnership.''.

SEC. 103. ELIMINATION OF LOAN FEES TO BORROWERS.

    (a) Federal Family Education Loan Program.--Section 438(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1087-1(c)) is amended by adding 
at the end the following new paragraph:
            ``(9) Origination fees terminated.--Notwithstanding any 
        other provision of this subsection, with respect to any loan 
        made, insured, or guaranteed under this part on or after the 
        first July 1 after the date of enactment of the College 
        Opportunity for All Act--
                    ``(A) no eligible lender may collect directly or 
                indirectly from any borrower any origination fee with 
                respect to such loan, or any other fee relating to the 
                origination of a loan however described; and
                    ``(B) the Secretary shall not collect any 
                origination fee from the lender under this 
                subsection.''.
    (b) Federal Direct Loan Program.--
            (1) Amendment.--Section 455(c) of such Act (20 U.S.C. 
        1087e(c)) is amended to read as follows:
    ``(c) Loan Fee.--The Secretary shall not collect directly or 
indirectly from any borrower any origination fee with respect to such 
loan, or any other fee relating to the origination of a loan however 
described.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any loan made under part D of title 
        IV on an after the first July 1 after the date of enactment of 
        this Act.

SEC. 104. AUTHORITY TO REFINANCE CONSOLIDATION LOANS.

    (a) Consolidation Loan Refinancing.--
            (1) FFEL consolidation loans.--Section 428C(a)(3)(B) of the 
        Higher Education Act of 1965 (20 U.S.C. 1078-3(a)(3)(B)) is 
        amended by adding at the end the following new clause:
            ``(ii) Notwithstanding clause (i) of this subparagraph, a 
        borrower of a consolidation loan on which the interest is 
        established at a fixed rate under section 427A, 428C(c), or 455 
        may obtain a subsequent consolidation loan for the purposes of 
        refinancing such earlier consolidation loan at a fixed or 
        variable rate under section 427A(l)(3) or 455(b)(7)(C) if the 
        interest rate on such earlier consolidation loan exceeds the 
        sum of 3.3 percent and the average of the bond equivalent rates 
        of the 91-day Treasury bills auctioned for the previous 
        calendar quarter.''.
            (2) Parallel terms for federal direct consolidation 
        loans.--Section 455(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1087e(a)) is amended--
                    (A) in paragraph (1), by inserting ``428C,'' after 
                ``428B,''; and
                    (B) in paragraph (2)--
                            (i) by striking ``and'' at the end of 
                        subparagraph (B);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (D); and
                            (iii) by inserting after subparagraph (B) 
                        the following:
                    ``(C) section 428C shall be know as `Federal Direct 
                Consolidation Loans'.''.
    (b) Consolidation Loan Interest Rates.--
            (1) FFEL loans.--Paragraph (3) of section 427A(l) (20 
        U.S.C. 1077a(l)) is amended to read as follows:
            ``(3) Consolidation loans.--
                    ``(A) Borrower election.--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 (including an application for a 
                subsequent consolidation loan under section 
                428C(a)(3)(B)(ii)), the applicable rate of interest 
                shall, at the election of the borrower at the time of 
                application for the loan, be either at the rate 
                determined under subparagraph (B) or the rate 
                determined under subparagraph (C).
                    ``(B) Variable rate.--Except as provided in 
                subparagraph (D), the rate determined under this 
                subparagraph 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, for 
                such 12-month period, 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 6.8 percent.
                    ``(C) Fixed rate.--Except as provided in 
                subparagraph (D), the rate determined under this 
                subparagraph shall be determined on the date on which 
                the obligation to repay the loan is signed, and be 
                equal, for the duration of the term of the loan, to the 
                lesser of--
                            ``(i) the weighted average of the interest 
                        rates on the loans consolidated, rounded to the 
                        nearest higher one-eighth of 1 percent; or
                            ``(ii) 6.8 percent.
                    ``(D) Consolidation of plus loans.--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), the rates 
                determined under subparagraphs (B) and (C) shall be 
                determined--
                            ``(i) by substituting `3.1 percent' for 
                        `2.3 percent'; and
                            ``(ii) by substituting `7.9 percent' for 
                        `6.8 percent'.''.
            (2) Direct loans.--Subparagraph (C) of section 455(b)(7) 
        (20 U.S.C. 1087e(b)(7)) is amended to read as follows:
                    ``(C) Consolidation loans.--
                            ``(i) Borrower election.--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 
                        (including an application for a subsequent 
                        consolidation loan under section 
                        428C(a)(3)(B)(ii)), the applicable rate of 
                        interest shall, at the election of the borrower 
                        at the time of application for the loan, be 
                        either at the rate determined under clause (ii) 
                        or the rate determined under clause (iii).
                            ``(ii) Variable rate.--Except as provided 
                        in clause (iv), the rate determined under this 
                        subparagraph 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, for such 12-month period, 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 6.8 
                        percent.
                            ``(iii) Fixed rate.--Except as provided in 
                        clause (iv), the rate determined under this 
                        subparagraph shall be determined on the date on 
                        which the obligation to repay the loan is 
                        signed, and be equal, for the duration of the 
                        term of the loan, to the lesser of--
                                    ``(I) the weighted average of the 
                                interest rates on the loans 
                                consolidated, rounded to the nearest 
                                higher one-eighth of 1 percent; or
                                    ``(II) 6.8 percent.
                            ``(iv) Consolidation of plus loans.--In the 
                        case of any such Federal Direct Consolidation 
                        Loan that is used to repay loans each of which 
                        was made under section 428B or was a Federal 
                        Direct PLUS Loan, the rates determined under 
                        clauses (ii) and (iii) shall be determined--
                                    ``(I) by substituting `3.1 percent' 
                                for `2.3 percent' in clause (ii)(II); 
                                and
                                    ``(II) by substituting `7.9 
                                percent' for `6.8 percent' each place 
                                it appears.''.

SEC. 105. PROVIDING LOW COST LOANS.

    (a) FFEL Interest Rates.--Section 427A(l) (20 U.S.C. 1077a(l)) is 
further amended--
            (1) by redesignating paragraph (3) (as amended by section 
        104(b)(1)) as paragraph (4); and
            (2) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) In general.--Notwithstanding subsection (h), but 
        subject to paragraph (2) of this subsection, with respect to 
        any loan made, insured, or guaranteed under this part (other 
        than a loan made pursuant to section 428B or 428C) for which 
        the first disbursement is made 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 6.8 percent.
            ``(2) In school and grace period rules.--Notwithstanding 
        subsection (h), with respect to any loan under this part (other 
        than a loan made pursuant to section 428B or 428C) for which 
        the first disbursement is made on or after July 1, 2006, the 
        applicable rate of interest for interest which accrues--
                    ``(A) prior to the beginning of the repayment 
                period of the loan; or
                    ``(B) during the period in which principal need not 
                be paid (whether or not such principal is in fact paid) 
                by reason of a provision described in section 
                427(a)(2)(C) or 428(b)(1)(M),
        shall be determined under paragraph (1) by substituting `1.7 
        percent' for `2.3 percent'.
            ``(3) Plus loans.--Notwithstanding subsection (h), with 
        respect to any loan under section 428B for which the first 
        disbursement is made on or after July 1, 2006, the applicable 
        rate of interest shall be determined under paragraph (1)--
                    ``(A) by substituting `3.1 percent' for `2.3 
                percent'; and
                    ``(B) by substituting `7.9 percent' for `6.8 
                percent'.''.
    (b) Direct Loans.--Section 455(b)(7) (20 U.S.C. 1087e(b)(7)) is 
further amended--
            (1) by redesignating subparagraph (C) (as amended by 
        section 104(b)(2)) as subparagraph (D); and
            (2) by striking subparagraph (A) and (B) and inserting the 
        following:
                    ``(A) Rates for fdsl and fdusl.--Notwithstanding 
                the preceding paragraphs of this subsection, for 
                Federal Direct Stafford Loans and Federal Direct 
                Unsubsidized Stafford Loans for which the first 
                disbursement is made 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 6.8 percent.
                    ``(B) In school and grace period rules.--
                Notwithstanding the preceding paragraphs of this 
                subsection, with respect to any Federal Direct Stafford 
                Loan or Federal Direct Unsubsidized Stafford Loan for 
                which the first disbursement is made on or after July 
                1, 2006, the applicable rate of interest for interest 
                which accrues--
                            ``(i) prior to the beginning of the 
                        repayment period of the loan; or
                            ``(ii) during the period in which principal 
                        need not be paid (whether or not such principal 
                        is in fact paid) by reason of a provision 
                        described in section 428(b)(1)(M) or 
                        427(a)(2)(C),
                shall be determined under subparagraph (A) by 
                substituting `1.7 percent' for `2.3 percent'.
                    ``(C) Plus loans.--Notwithstanding the preceding 
                paragraphs of this subsection, with respect to Federal 
                Direct PLUS Loan for which the first disbursement is 
                made on or after October 1, 1998, and before July 1, 
                2006, the applicable rate of interest shall be 
                determined under subparagraph (A)--
                            ``(i) by substituting `3.1 percent' for 
                        `2.3 percent'; and
                            ``(ii) by substituting `7.9 percent' for 
                        `6.8 percent'.''.

SEC. 106. RECAPTURE OF EXCESS INTEREST.

    (a) Amendment.--Subparagraph (I) of section 438(b)(2) (20 U.S.C. 
1087-1(b)(2)) is amended by inserting after clause (vii) the following 
new clause:
                            ``(viii) Recapture of excess interest.--
                                    ``(I) Excess credited.--With 
                                respect to a loan on which the 
                                applicable interest rate is determined 
                                under subsection (l) of section 427A 
                                and for which the first disbursement of 
                                principal is made on or after July 1, 
                                2006, 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.''.
    (b) Effective Date.--The amendments made by this section 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, 2006.

SEC. 107. TERMINATION OF EXCESSIVE ALLOWANCES.

    (a) Amendment.--Section 438(b)(2)(B) of the Higher Education Act of 
1965 (20 U.S.C. 1087-1(b)(2)(B)) is amended by striking clause (v) and 
inserting the following:
                            ``(v) This subparagraph shall not apply 
                        to--
                                    ``(I) any loan made or purchased 
                                after the date of enactment of the 
                                College Opportunity for All Act;
                                    ``(II) any loan that had not 
                                qualified before such date of enactment 
                                for receipt of a special allowance 
                                payment determined under this 
                                subparagraph; or
                                    ``(III) any loan made or purchased 
                                before such date of enactment with 
                                funds described in the first or second 
                                sentence of clause (i) if--
                                            ``(aa) the obligation 
                                        described in the first such 
                                        sentence has, after such date 
                                        of enactment, matured, or been 
                                        retired or defeased; or
                                            ``(bb) the maturity date or 
                                        the date of retirement of the 
                                        obligation described in the 
                                        first such sentence has, after 
                                        such date of enactment, been 
                                        extended.''.
    (b) Continuing Audits of Prior Claims.--The Inspector General of 
the Department of Education shall conduct an audit of each holder of 
student loans who, at any time after September 30, 1993, submitted 
claims for special allowance payments under subparagraph (B) of section 
438(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087-
1(b)(2)(B)), with respect to the claims made pursuant to such 
subparagraph. In conducting such audit, the Inspector General shall use 
the methodology used in preparing the audit report on special allowance 
payments issued in May 2005 (ED-OIG/A05E0017).

SEC. 108. PUBLIC SERVICE SCHOLARSHIPS.

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

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

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to reduce the burden of student debt, particularly 
        for Americans who dedicate their careers to meeting certain 
        urgent national needs; and
            ``(2) to attract more excellent individuals into important 
        public service careers.
    ``(b) Loan Forgiveness.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay, pursuant to subsection (c), a loan made 
        under section 428 or 428H, a Federal Direct Stafford Loan or 
        Federal Direct Unsubsidized Stafford Loan, a Federal Direct 
        Consolidation Loan, or a Federal Perkins Loan for any new 
        borrower after the date of enactment of the Higher Education 
        Amendments of 1998, who--
                    ``(A) is employed full time in a qualified public 
                service position described in paragraph (2); and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Qualified public service positions.--For purposes of 
        this section, an individual shall be treated as employed in a 
        qualified public service position if the individual is any of 
        the following:
                    ``(A) Highly qualified teachers in low-income 
                communities and of mathematics, science, and bilingual 
                and special education.--An individual who--
                            ``(i)(I) is a public school teacher who is 
                        highly qualified as such term is defined in 
                        section 9101 of the Elementary and Secondary 
                        Education Act of 1965; or
                            ``(II) is a teacher who has obtained 
                        employment in a nonprofit private elementary or 
                        secondary school who holds at least a bachelors 
                        degree and--
                                    ``(aa) has demonstrated subject 
                                knowledge and teaching skills in 
                                reading, writing, mathematics, and 
                                other areas of the basic elementary 
                                school curriculum if such teacher is an 
                                elementary teacher; and
                                    ``(bb) has demonstrated a high 
                                level of competency in each of the 
                                academic subjects in which the teacher 
                                teaches if such teacher is a secondary 
                                school teacher; and
                            ``(ii)(I) has obtained employment as a 
                        teacher for service in a public or nonprofit 
                        private elementary or secondary school which is 
                        in the school district of a local educational 
                        agency which is eligible in such year for 
                        assistance pursuant to title I of the 
                        Elementary and Secondary Education Act of 1965, 
                        and which for the purpose of this paragraph and 
                        for that year has been determined by the 
                        Secretary (pursuant to regulations and after 
                        consultation with the State educational agency 
                        of the State in which the school is located) to 
                        be a school in which the enrollment of children 
                        counted under section 1113(a)(5) of the 
                        Elementary and Secondary Education Act of 1965 
                        exceeds 40 percent of the total enrollment of 
                        that school; or
                            ``(II) has obtained employment as a full-
                        time teacher of mathematics, science, or 
                        bilingual or special education.
                    ``(B) Early childhood educators.--An individual 
                who--
                            ``(i) has received a degree in early 
                        childhood education; and
                            ``(ii) has obtained employment in a child 
                        care facility, such as employment as a 
                        preschool teacher, in a low-income community.
                    ``(C) Nurses.--An individual who has obtained 
                employment--
                            ``(i) in a clinical setting; or
                            ``(ii) as a member of the nursing faculty 
                        at an accredited school of nursing (as those 
                        terms are defined in section 801 of the Public 
                        Health Service Act (42 U.S.C. 296)).
                    ``(D) Child welfare workers.--An individual who--
                            ``(i) has completed a degree in social work 
                        or related field with a focus on serving 
                        children and families (as determined in 
                        accordance with regulations prescribed by the 
                        Secretary); and
                            ``(ii) has obtained employment in public or 
                        private child welfare services.
                    ``(E) Nutrition professionals.--An individual who--
                            ``(i) is a certified registered dietician 
                        who has completed a degree in a relevant field; 
                        and
                            ``(ii) has obtained employment in a local 
                        agency of the special supplemental nutrition 
                        program for women, infants, and children under 
                        section 17 of the Child Nutrition Act of 1966 
                        (42 U.S.C. 1786).
                    ``(F) Infant and toddler specialists.--An 
                individual who--
                            ``(i) has obtained an associate's or 
                        bachelor's degree in a discipline that would 
                        qualify the individual to work in the program 
                        under part C of the Individuals with 
                        Disabilities Education Act in the State in 
                        which such individual resides; and
                            ``(ii) has obtained employment in an 
                        occupation that is directly related to such 
                        degree and that (I) provides services to 
                        infants, toddlers, and their families under an 
                        individualized family service plan under 
                        section 636 of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1436) or 
                        an individualized education plan under section 
                        614(d) of such Act (20 U.S.C. 1414(d)); or (II) 
                        provides training or technical assistance to 
                        providers of such services.
                    ``(G) Reading specialists.--An individual who is 
                employed as an elementary or secondary school teacher 
                who primarily teaches reading and who--
                            ``(i) has obtained a separate reading 
                        instruction credential from the State in which 
                        the teacher is employed; and
                            ``(ii) 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--
                                    ``(I) 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
                                    ``(II) as having such credential.
                    ``(H) Additional public servants.--An individual 
                who, as determined by the Secretary of Education by 
                regulation--
                            ``(i) works in a public service profession 
                        that suffers from a critical lack of qualified 
                        personnel;
                            ``(ii) serves a low-income or needy 
                        community; and
                            ``(iii) is highly qualified.
    ``(c) Loan Repayment.--
            ``(1) In general.--The Secretary shall assume the 
        obligation to repay--
                    ``(A) after each of the first or second years of 
                service by an individual in a qualified public service 
                position, 15 percent of the total amount of principal 
                and interest of the loans described in subsection 
                (b)(1) to such individual that are outstanding 
                immediately preceding such first year of such service;
                    ``(B) after each of the third or fourth years of 
                such service, 20 percent of such total amount; and
                    ``(C) after the fifth year of such service, 30 
                percent of such total amount.
            ``(2) Total obligation.--The Secretary shall repay for an 
        individual under this section not more than $20,000 in the 
        aggregate of the loan obligation on loans described in 
        subsection (b)(1).
            ``(3) Treatment of consolidation loans.--A loan amount for 
        a loan made under section 428C or for a Federal Direct 
        Consolidation Loan may be a qualified loan amount for the 
        purposes of this subsection only to the extent that such loan 
        amount was used to repay a loan described in subsection (b)(1) 
        for a borrower who meets the requirements of subsection (b), as 
        determined in accordance with regulations prescribed by the 
        Secretary.
            ``(4) Construction.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made under section 428 or 428H, a Federal Direct Stafford Loan 
        or Federal Direct Unsubsidized Stafford Loan, a Federal Direct 
        Loan, or a Federal Perkins Loan.
            ``(5) Interest.--If a portion of a loan is repaid by the 
        Secretary under this section for any year, the proportionate 
        amount of interest on such loan that accrues for such year 
        shall be repaid by the Secretary.
            ``(6) Ineligibility of national service award recipients.--
        No student borrower may, for the same service, receive a 
        benefit under both this section and subtitle D of title I of 
        the National and Community Service Act of 1990 (42 U.S.C. 12601 
        et seq.).
            ``(7) Ineligibility for double benefits.--No borrower may 
        receive a reduction of loan obligations under both this section 
        and section 428J or 460.
            ``(8) Continued eligibility.--
                    ``(A) Teachers.--Any teacher who performs service 
                in a school that--
                            ``(i) meets the requirements of subsection 
                        (b)(2)(A)(ii)(I) in any year during such 
                        service; and
                            ``(ii) in a subsequent year fails to meet 
                        the requirements of such subsection,
                may continue to teach in such school and shall be 
                eligible for loan forgiveness pursuant to subsection 
                (b).
                    ``(B) Teachers in low-income communities.--Any 
                early childhood educator who performs service in a 
                community that--
                            ``(i) meets the definition of low-income 
                        community in any year during such service; and
                            ``(ii) in a subsequent year fails to meet 
                        such definition,
                may continue to perform service in such community and 
                shall be eligible for loan forgiveness pursuant to 
                subsection (b).
    ``(d) Repayment to Eligible Lenders and Holders.--The Secretary 
shall pay to each eligible lender or holder for each fiscal year an 
amount equal to the aggregate amount of the lender's or holder's loans 
that are subject to repayment pursuant to this section for such year.
    ``(e) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        repayment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            ``(2) Conditions.--An eligible individual may apply for 
        loan repayment under this section after completing each of the 
        consecutive years of qualifying service described in subsection 
        (c)(1). The borrower may elect to receive forbearance while 
        engaged in qualifying service described in subsection (c)(1) 
        unless the borrower is in deferment while so engaged.
            ``(3) Notice concerning eligibility for application.--The 
        Secretary shall notify education agencies and other public 
        agencies of the benefits available under this section, and 
        encourage such agencies to notify individuals in eligible 
        public service positions of such benefits.
    ``(f) Regulations.--The Secretary is authorized to prescribe such 
regulations as may be necessary to carry out the provisions of this 
section. Such regulations shall require the Secretary to actively 
inform individuals eligible for the provisions of this section of the 
loan forgiveness described under this section.
    ``(g) Definitions.--In this section:
            ``(1) Child care facility.--The term `child care facility' 
        means a facility, including a home, that--
                    ``(A) provides child care services; and
                    ``(B) meets applicable State or local government 
                licensing, certification, approval, or registration 
                requirements, if any.
            ``(2) Child care services.--The term `child care services' 
        means activities and services provided for the education and 
        care of children from birth through age 5 by an individual who 
        has a degree in early childhood education, including a 
        preschool teacher.
            ``(3) Child welfare services.--The term `child welfare 
        services' has the meaning given the term in section 425 of the 
        Social Security Act.
            ``(4) Degree.--The term `degree' means an associate's or 
        bachelor's degree awarded by an institution of higher 
        education.
            ``(5) Early childhood education.--The term `early childhood 
        education' means education in the area of early child 
        development and education, child care, or any other educational 
        area related to early child education or child care that the 
        Secretary determines to be appropriate.
            ``(6) Eligible nurse.--The term `eligible nurse' means a 
        nurse who meets all of the following:
                    ``(A) The nurse graduated from--
                            ``(i) an accredited school of nursing (as 
                        those terms are defined in section 801 of the 
                        Public Health Service Act (42 U.S.C. 296));
                            ``(ii) a nursing center; or
                            ``(iii) an academic health center that 
                        provides nurse training.
                    ``(B) The nurse holds a valid and unrestricted 
                license to practice nursing in the State in which the 
                nurse practices in a clinical setting.
                    ``(C) The nurse holds 1 or more of the following:
                            ``(i) A graduate degree in nursing, or an 
                        equivalent degree.
                            ``(ii) A nursing degree from a collegiate 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
                            ``(iii) A nursing degree from an associate 
                        degree school of nursing (as defined in section 
                        801 of the Public Health Service Act (42 U.S.C. 
                        296)).
                            ``(iv) A nursing degree from a diploma 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
            ``(7) Eligible preschool program provider.--The term 
        `eligible preschool program provider' means a preschool program 
        provider serving children younger than the age of compulsory 
        school attendance that is--
                    ``(A) a public or private school;
                    ``(B) a provider that is supported, sponsored, 
                supervised, or administered by a local educational 
                agency;
                    ``(C) a Head Start agency designated under the Head 
                Start Act (42 U.S.C. 9831 et seq.);
                    ``(D) a nonprofit or community-based organization; 
                or
                    ``(E) a licensed child care center or family child 
                care provider.
            ``(8) Low-income community.--In this subsection, the term 
        `low-income community' means a community in which 70 percent of 
        households earn less than 85 percent of the State median 
        household income.
            ``(9) Preschool teacher.--The term `preschool teacher' 
        means an individual--
                    ``(A) who has received at least an associate's 
                degree in early childhood education and who is working 
                toward or who has already received a bachelor's degree 
                in early childhood education; and
                    ``(B) who works for an eligible preschool program 
                provider supporting the children's cognitive, social, 
                emotional, and physical development to prepare the 
                children for the transition to kindergarten.
            ``(10) Year.--The term `year', where applied to service as 
        a teacher (or service as a member of an accredited school of 
        nursing (as those terms are defined in section 801 of the 
        Public Health Service Act (42 U.S.C. 296))), means an academic 
        year as defined by the Secretary.''.

SEC. 109. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID APPLICATION 
              PROCESS.

    (a) Expanding the Auto-Zero and Further Simplifying the Simplified 
Needs Test.--
            (1) Simplified needs test.--Section 479 (20 U.S.C. 1087ss) 
        is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) by striking clause (i) of 
                                subparagraph (A) and inserting the 
                                following:
                            ``(i) the student's parents--
                                    ``(I) file, or are eligible to 
                                file, a form described in paragraph 
                                (3); or
                                    ``(II) certify that they are not 
                                required to file an income tax return; 
                                or
                                    ``(III) or the student received 
                                benefits at some time during the 
                                previous 12-month period under a means-
                                tested Federal benefit program as 
                                defined under subsection (d); and''; 
                                and
                                    (II) by striking clause (i) of 
                                subparagraph (B) and inserting the 
                                following:
                            ``(i) the student (and the student's 
                        spouse, if any)--
                                    ``(I) files, or is eligible to 
                                file, a form described in paragraph 
                                (3); or
                                    ``(II) certifies that the student 
                                (and the student's spouse, if any) is 
                                not required to file an income tax 
                                return; or
                                    ``(III) received benefits at some 
                                time during the previous 12-month 
                                period under a means-tested Federal 
                                benefit program as defined under 
                                subsection (d); and''; and
                            (ii) in paragraph (3), by striking ``A 
                        student or family files a form described in 
                        this subsection, or subsection (c), as the case 
                        may be, if the student or family, respectively, 
                        files'' and inserting ``In the case of an 
                        independent student, the student, or in the 
                        case of a dependent student, the parent, files 
                        a form described in this subsection, or 
                        subsection (c), as the case may be, if the 
                        student or parent, as appropriate, files'';
                    (B) in subsection (c)--
                            (i) in paragraph (1), by striking 
                        subparagraphs (A) and (B) and inserting the 
                        following:
                    ``(A) the student's parents--
                            ``(i) file, or are eligible to file, a form 
                        described in subsection (b)(3); or
                            ``(ii) certify that they are not required 
                        to file an income tax return; or
                            ``(iii) or the student received benefits at 
                        some time during the previous 12-month period 
                        under a means-tested Federal benefit program as 
                        defined under subsection (d); and
                    ``(B) the sum of the adjusted gross income of the 
                parents is less than or equal to $25,000; or''; and
                            (ii) in paragraph (2), by striking 
                        subparagraphs (A) and (B) and inserting the 
                        following:
                    ``(A) the student (and the student's spouse, if 
                any)--
                            ``(i) files, or is eligible to file, a form 
                        described in subsection (b)(3); or
                            ``(ii) certifies that the student (and the 
                        student's spouse, if any) is not required to 
                        file an income tax return; or
                            ``(iii) received benefits at some time 
                        during the previous 12-month period under a 
                        means-tested Federal benefit program as defined 
                        under subsection (d); and
                    ``(B) the sum of the adjusted gross income of the 
                student and spouse (if appropriate) is less than or 
                equal to $25,000.''; and
                            (iii) by inserting after the last sentence 
                        of such subsection the following: ``The 
                        Secretary shall annually adjust the income 
                        level necessary to qualify an applicant for the 
                        zero expected family contribution under this 
                        subsection. The income level shall be adjusted 
                        according to increases in the Consumer Price 
                        Index, as specified in section 478(f).''; and
                    (C) by adding at the end the following new 
                subsections:
    ``(d) Means-Tested Federal Benefit Program.--For the purposes of 
this section, the term `means-tested Federal benefit program' means a 
mandatory spending program of the Federal Government in which 
eligibility for the program's 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 includes the supplemental 
security income program under title XVI of the Social Security Act, the 
food stamp program under the Food Stamp Act of 1977, the free and 
reduced price school lunch program established under the Richard B. 
Russell National School Lunch Act, the temporary assistance to needy 
families program established under part A of title IV of the Social 
Security Act, and the women, infants and children program established 
under Section 17 of the Child Nutrition Act of 1966.
    ``(e) Reporting Requirements.--The Secretary shall regularly 
evaluate the impact of the eligibility guidelines in subsections 
(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A) and (c)(2)(A) of this section. In 
particular, the Secretary shall evaluate whether the means-tested 
Federal benefit programs (as defined by subsection (d)) ensure that the 
Simplified Needs Test continues to be targeted to the maximum number of 
low- and moderate-income students.''.
    (b) Improvements to Paper and Electronic Forms.--
            (1) Common financial aid form development and processing.--
        Section 483 (20 U.S.C. 1090) is amended--
                    (A) in subsection (a)--
                            (i) by striking paragraphs (1), (2), and 
                        (5);
                            (ii) by redesignating paragraphs (3), (4), 
                        (6), and (7), as paragraphs (9), (10), (11), 
                        and (12), respectively;
                            (iii) by inserting before paragraph (9), as 
                        redesignated by subparagraph (B), the 
                        following:
            ``(1) In general.--The Secretary, in cooperation with 
        representatives of agencies and organizations involved in 
        student financial assistance, shall produce, distribute, and 
        process free of charge common financial reporting forms as 
        described in this subsection to be used for application and 
        reapplication to determine the need and eligibility of a 
        student for financial assistance under parts A through E (other 
        than subpart 4 of part A). These forms shall be made available 
        to applicants in both paper and electronic formats and shall be 
        referred to as the `Free Application for Federal Student Aid' 
        or the `FAFSA' .
            ``(2) Early estimates.--The Secretary shall permit 
        applicants to complete such forms as described in this 
        subsection in the years prior to enrollment in order to obtain 
        an estimate of the family contribution, as defined by section 
        473. Such applicants shall be permitted to update information 
        submitted on forms described in this subsection using the 
        process required under paragraph (5)(A).
            ``(3) Paper format.--
                    ``(A) In general.--The Secretary shall produce, 
                distribute, and process common forms in paper format to 
                meet the requirements of paragraph (1). The Secretary 
                shall develop a common paper form for applicants who do 
                not meet the requirements of subparagraph (B).
                    ``(B) EZ fafsa.--
                            ``(i) In general.--The Secretary shall 
                        develop and use a simplified paper application 
                        form, to be known as the `EZ FAFSA', to be used 
                        for applicants meeting the requirements of 
                        section 479(c).
                            ``(ii) Reduced data requirements.--The EZ 
                        FAFSA shall permit an applicant to submit for 
                        financial assistance purposes, only the data 
                        elements required to make a determination of 
                        whether the applicant meets the requirements 
                        under section 479(c).
                            ``(iii) State data.--The Secretary shall 
                        include on the EZ FAFSA such data items as may 
                        be necessary to award State financial 
                        assistance, as provided under paragraph (6), 
                        except that the Secretary shall not include a 
                        State's data if that State does not permit its 
                        applicants for State assistance to use the EZ 
                        FAFSA.
                            ``(iv) Free availability and processing.--
                        The provisions of paragraph (7) shall apply to 
                        the EZ FAFSA, and the data collected by means 
                        of the EZ FAFSA shall be available to 
                        institutions of higher education, guaranty 
                        agencies, and States in accordance with 
                        paragraph (9).
                            ``(v) Testing.--The Secretary shall conduct 
                        appropriate field testing on the EZ FAFSA.
                    ``(C) Promoting the use of electronic fafsa.--
                            ``(i) In general.--The Secretary shall make 
                        all efforts to encourage all applicants to 
                        utilize the electronic forms described in 
                        paragraph (4).
                            ``(ii) Maintenance of the fafsa in a 
                        printable electronic file.--The Secretary shall 
                        maintain a version of the paper forms described 
                        in subparagraphs (A) and (B) in a printable 
                        electronic file that is easily portable. The 
                        printable electronic file will be made easily 
                        accessible and downloadable to students on the 
                        same website used to provide students with the 
                        electronic application forms described in 
                        paragraph (4) of this subsection. The Secretary 
                        shall enable students to submit a form created 
                        under this subparagraph that is downloaded and 
                        printed from an electronic file format in order 
                        to meet the filing requirements of this section 
                        and in order to receive aid from programs under 
                        this title.
                            ``(iii) Reporting requirement.--The 
                        Secretary shall report annually to Congress on 
                        the impact of the digital divide on students 
                        completing applications for title IV aid 
                        described under this paragraph and paragraph 
                        (4). The Secretary will also report on the 
                        steps taken to eliminate the digital divide and 
                        phase out the paper form described in 
                        subparagraph (A) of this paragraph. The 
                        Secretary's report will specifically address 
                        the impact of the digital divide on the 
                        following student populations: independent 
                        students, adults, and dependent students.
            ``(4) Electronic format.--
                    ``(A) In general.--The Secretary shall produce, 
                distribute, and process common forms in electronic 
                format to meet the requirements of paragraph (1). The 
                Secretary shall develop common electronic forms for 
                applicants who do not meet the requirements of 
                subparagraph (C) of this paragraph.
                    ``(B) State data.--The Secretary shall include on 
                the common electronic forms space for information that 
                needs to be submitted from the applicant to be eligible 
                for State financial assistance, as provided under 
                paragraph (6), except the Secretary shall not require 
                applicants to complete data required by any State other 
                than the applicant's State of residence.
                    ``(C) Simplified applications: fafsa on the web.--
                            ``(i) In general.--The Secretary shall 
                        develop and use a simplified electronic 
                        application form to be used by applicants 
                        meeting the requirements under subsection (c) 
                        of section 479 and an additional, separate 
                        simplified electronic application form to be 
                        used by applicants meeting the requirements 
                        under subsection (b) of section 479.
                            ``(ii) Reduced data requirements.--The 
                        simplified electronic application forms shall 
                        permit an applicant to submit for financial 
                        assistance purposes, only the data elements 
                        required to make a determination of whether the 
                        applicant meets the requirements under 
                        subsection (b) or (c) of section 479.
                            ``(iii) State data.--The Secretary shall 
                        include on the simplified electronic 
                        application forms such data items as may be 
                        necessary to award state financial assistance, 
                        as provided under paragraph (6), except that 
                        the Secretary shall not require applicants to 
                        complete data required by any State other than 
                        the applicant's state of residence.
                            ``(iv) Availability and processing.--The 
                        data collected by means of the simplified 
                        electronic application forms shall be available 
                        to institutions of higher education, guaranty 
                        agencies, and States in accordance with 
                        paragraph (9).
                            ``(v) Testing.--The Secretary shall conduct 
                        appropriate field testing on the forms 
                        developed under this subparagraph.
                    ``(D) Use of forms.--Nothing in this subsection 
                shall be construed to prohibit the use of the forms 
                developed by the Secretary pursuant to this paragraph 
                by an eligible institution, eligible lender, guaranty 
                agency, State grant agency, private computer software 
                provider, a consortium thereof, or such other entities 
                as the Secretary may designate.
                    ``(E) Privacy.--The Secretary shall ensure that 
                data collection under this paragraph complies with 
                section 552a of title 5, United States Code, and that 
                any entity using the electronic version of the forms 
                developed by the Secretary pursuant to this paragraph 
                shall maintain reasonable and appropriate 
                administrative, technical, and physical safeguards to 
                ensure the integrity and confidentiality of the 
                information, and to protect against security threats, 
                or unauthorized uses or disclosures of the information 
                provided on the electronic version of the forms. Data 
                collected by such electronic version of the forms shall 
                be used only for the application, award, and 
                administration of aid awarded under this title, State 
                aid awarded under section 415C, or aid awarded by 
                eligible institutions or such entities as the Secretary 
                may designate. No data collected by such electronic 
                version of the forms shall be used for making final aid 
                awards under this title until such data have been 
                processed by the Secretary or a contractor or designee 
                of the Secretary, except as may be permitted under this 
                title.
                    ``(F) Signature.--Notwithstanding any other 
                provision of this Act, the Secretary may permit an 
                electronic form under this paragraph to be submitted 
                without a signature, if a signature is subsequently 
                submitted by the applicant or if the applicant uses a 
                personal identification number provided by the 
                Secretary under subparagraph (G) of this paragraph.
                    ``(G) Personal identification numbers authorized.--
                The Secretary may assign to applicants personal 
                identification numbers--
                            ``(i) to enable the applicants to use such 
                        numbers in lieu of a signature for purposes of 
                        completing a form under this paragraph;
                            ``(ii) to enable the applicants to use such 
                        numbers in lieu of a signature for purposes of 
                        completing forms required by States under 
                        section 415C; and
                            ``(iii) for any purpose determined by the 
                        Secretary to enable the Secretary to carry out 
                        this title.
            ``(5) Streamlining.--
                    ``(A) Streamlined reapplication process.--
                            ``(i) In general.--The Secretary shall 
                        develop streamlined reapplication forms and 
                        processes, including both paper and electronic 
                        reapplication processes, consistent with the 
                        requirements of this subsection, for an 
                        applicant who applies for financial assistance 
                        under this title in the next succeeding 
                        academic year subsequent to the year in which 
                        such applicant first applied for financial 
                        assistance under this title.
                            ``(ii) Mechanisms for reapplication.--The 
                        Secretary shall develop appropriate mechanisms 
                        to support reapplication.
                            ``(iii) Identification of updated data.--
                        The Secretary shall determine, in cooperation 
                        with States, institutions of higher education, 
                        agencies, and organizations involved in student 
                        financial assistance, the data elements that 
                        can be updated from the previous academic 
                        year's application.
                            ``(iv) Reduced data authorized.--Nothing in 
                        this title shall be construed as limiting the 
                        authority of the Secretary to reduce the number 
                        of data elements required of reapplicants.
                            ``(v) Zero family contribution.--Applicants 
                        determined to have a zero family contribution 
                        pursuant to section 479(c) shall not be 
                        required to provide any financial data in a 
                        reapplication form, except that which is 
                        necessary to determine eligibility under such 
                        section.
                    ``(B) Reduction of data elements.--
                            ``(i) Reduction required.--Of the number of 
                        data elements on the FAFSA on the date of 
                        enactment of the College Opportunity for All 
                        Act (including questions on the FAFSA for the 
                        purposes described in paragraph (6)), the 
                        Secretary, in cooperation with representatives 
                        of agencies and organizations involved in 
                        student financial assistance, shall reduce the 
                        number of such data elements by 50 percent 
                        within 5 years after such date of enactment. 
                        Reductions of data elements under paragraph 
                        (3)(B), (4)(C), or (5)(A)(iv) shall not be 
                        counted towards such 50 percent reduction 
                        unless those data elements are reduced for all 
                        applicants.
                            ``(ii) Report.--The Secretary shall submit 
                        a report on the process of this reduction to 
                        each House of Congress within 2 years after 
                        such date of enactment.
            ``(6) State requirements.--
                    ``(A) In general.--The Secretary shall include on 
                the forms developed under this subsection, such State-
                specific nonfinancial data items as the Secretary 
                determines are necessary to meet State requirements for 
                need-based State aid under section 415C, except as 
                provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of 
                this subsection. Such items shall be selected in 
                consultation with State agencies that submit 
                applications under section 415C in order to assist in 
                the awarding of State financial assistance in 
                accordance with the terms of this subsection, except as 
                provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of 
                this subsection. The number of such data items shall 
                not be less than the number included on the form on 
                October 7, 1998, unless a State notifies the Secretary 
                that the State no longer requires those data items for 
                the distribution of State need-based aid.
                    ``(B) Annual review.--The Secretary shall conduct 
                an annual review process to determine which forms and 
                nonfinancial data items the States require to award 
                need-based State aid and other application requirements 
                that the States may impose.
                    ``(C) State use of simplified forms.--The Secretary 
                shall encourage states to take such steps as necessary 
                to encourage the use of simplified application forms, 
                including those described in paragraphs (3)(B) and 
                (4)(C), to meet the requirements under subsection (b) 
                or (c) of section 479.
                    ``(D) Federal register notice.--The Secretary shall 
                publish on an annual basis a notice in the Federal 
                Register requiring State agencies to inform the 
                Secretary--
                            ``(i) if the State agency is unable to 
                        permit applicants to utilize the simplified 
                        application forms described in paragraphs 
                        (3)(B) and (4)(C); and
                            ``(ii) of the State-specific nonfinancial 
                        data that the State agency requires for 
                        delivery of State need-based financial aid.
                    ``(E) State notification to the secretary.--
                            ``(i) In general.--Each State agency that 
                        submits an application under section 415C shall 
                        notify the Secretary--
                                    ``(I) whether the State permits an 
                                applicant to file a form described in 
                                paragraph (3)(B) or (4)(A) of this 
                                subsection for purposes of determining 
                                eligibility for State need-based grant 
                                aid; and
                                    ``(II) the State-specific 
                                nonfinancial data that the State agency 
                                requires for delivery of State need-
                                based financial aid.
                            ``(ii) Acceptance of forms.--In the event 
                        that a State does not permit an applicant to 
                        file a form described in paragraph (3)(B) or 
                        (4)(A) of this subsection for purposes of 
                        determining eligibility for State need-based 
                        grant aid--
                                    ``(I) the State shall notify the 
                                Secretary if the State is not permitted 
                                to do so because of either State law or 
                                because of agency policy; and
                                    ``(II) the notification under 
                                subclause (I) shall include an estimate 
                                of the program cost to permit 
                                applicants to complete simplified 
                                application forms under paragraphs 
                                (3)(B) and (4)(A) of this subsection.
                            ``(iii) Lack of notification by the 
                        state.--If a State does not notify the 
                        Secretary pursuant to clause (i), the Secretary 
                        shall--
                                    ``(I) permit residents of that 
                                State to complete simplified 
                                application forms under paragraphs 
                                (3)(B) and (4)(A) of this subsection; 
                                and
                                    ``(II) not require any resident of 
                                that State to complete any nonfinancial 
                                data previously required by that State 
                                under this section.
            ``(7) Charges to students and parents for use of forms 
        prohibited.--
                    ``(A) Fees prohibited.--The FAFSA, in whatever form 
                (including the EZ-FAFSA, paper, electronic, simplified, 
                or reapplication), shall be produced, distributed, and 
                processed by the Secretary and no parent or student 
                shall be charged a fee for the collection, processing, 
                or delivery of financial aid through the use of the 
                FAFSA. The need and eligibility of a student for 
                financial assistance under parts A through E of this 
                title (other than under subpart 4 of part A) may only 
                be determined by using the FAFSA developed by the 
                Secretary pursuant to this subsection. No student may 
                receive assistance under parts A through E of this 
                title (other than under subpart 4 of part A), except by 
                use of the FAFSA developed by the Secretary pursuant to 
                this subsection. No data collected on a form for which 
                a fee is charged shall be used to complete the FAFSA.
                    ``(B) Notice.--Any entity that provides to students 
                and parents, or charges students or parents for, any 
                value-added services with respect to or in connection 
                with the FAFSA, such as completion of the FAFSA, 
                submission of the FAFSA, or tracking of the FAFSA for a 
                student, shall provide to students and parents clear 
                and conspicuous notice that--
                            ``(i) the FAFSA is a free Federal student 
                        aid application;
                            ``(ii) the FAFSA can be completed without 
                        professional assistance; and
                            ``(iii) includes the current Internet 
                        address for the FAFSA on the Department's web 
                        site.
            ``(8) Application processing cycle.--The Secretary shall 
        enable students to submit a form created under this subsection 
        in order to meet the filing requirements of this section and in 
        order to receive aid from programs under this title and shall 
        initiate the processing of applications under this subsection 
        as early as practicable prior to January 1 of the student's 
        planned year of enrollment.'';
                    (B) by adding at the end of subsection (a) the 
                following paragraph:
            ``(13) Early application and award demonstration program.--
                    ``(A) Program required.--The Secretary shall, no 
                later than two years after the date of enactment of the 
                College Opportunity for All Act, implement an early 
                application demonstration program enabling dependent 
                students to complete applications under this subsection 
                in their junior year of high school, or in the academic 
                year that is two years prior to their intended year of 
                enrollment, and to be eligible to receive aid under 
                this title and such aid as may be available from 
                participants, including State financial assistance as 
                provided under section 415C and other aid provided by 
                participating institutions.
                    ``(B) Purpose and objectives.--The purpose of the 
                demonstration program under this paragraph shall be to 
                measure the benefits, in terms of student aspirations 
                and plans to attend college, and the adverse effects, 
                in terms of program costs, integrity, distribution, and 
                delivery of aid under this title, of implementing an 
                early application system for all dependent students 
                that allows dependent students to apply for financial 
                aid using information from the year prior to the year 
                prior to enrollment. Additional objectives associated 
                with implementation of the demonstration program are 
                the following:
                            ``(i) Measure the feasibility of enabling 
                        dependent students to apply for Federal, State, 
                        and institutional financial aid in their junior 
                        year of high school, using information from the 
                        year prior to the year prior to enrollment, by 
                        completing any of the application forms under 
                        this subsection.
                            ``(ii) Determine the feasibility, benefits, 
                        and adverse effects of implementing a data 
                        match with the Internal Revenue Service (IRS).
                            ``(iii) Identify whether receiving final 
                        financial aid awards no later than the fall of 
                        the senior year provides students with 
                        additional time to compete for the limited 
                        resources available for State and institutional 
                        financial aid and positively impacts the 
                        college aspirations and plans of these 
                        students.
                            ``(iv) Measure the impact of using income 
                        information from the year prior to the year 
                        prior to enrollment on--
                                    ``(I) eligibility for financial aid 
                                under this title and for other 
                                institutional aid; and
                                    ``(II) the cost of financial aid 
                                programs under this title.
                            ``(iv) Effectively evaluate the benefits 
                        and adverse effects of the demonstration 
                        program on program costs, integrity, 
                        distribution, and delivery of aid.
                    ``(C) Participants.--The Secretary shall select 
                States and institutions within those States to 
                participate in the demonstration program under this 
                paragraph that are participating in the programs under 
                this title and that are willing to make final financial 
                aid awards to students based on their application 
                information from the year prior to the year prior to 
                enrollment. The Secretary shall also select as 
                participants in the demonstration program secondary 
                schools and dependent students that are located in the 
                participating States.
                    ``(D) Application process.--The Secretary shall 
                insure that the following provisions are included in 
                the demonstration program:
                            ``(i) Participating States and institutions 
                        shall allow participating students to apply for 
                        financial aid during their junior year of high 
                        school using information from the year prior to 
                        the year prior to enrollment and all provisions 
                        available under this title and shall award 
                        final financial aid awards to participating 
                        students based on the applications provided 
                        under this demonstration program.
                            ``(ii) Participating States and 
                        institutions shall not require students 
                        participating in this demonstration program to 
                        complete an additional application in the year 
                        prior to enrollment in order to receive State 
                        aid under section 415C and any other 
                        institutional aid.
                            ``(iii) Financial aid administrators at 
                        participating institutions shall be allowed to 
                        use their discretion in awarding financial aid 
                        to participating students, as outlined under 
                        section 479A and section 480(d)(7).
                    ``(E) Data match with the internal revenue 
                service.--The Secretary shall include in this 
                demonstration project a data match with the Internal 
                Revenue Service in order to verify data provided by 
                participating students and gauge the feasibility of 
                implementing such a data match for all students 
                applying for aid under this title.
                    ``(F) Evaluation.--The Secretary shall conduct a 
                rigorous evaluation of this demonstration program in 
                order to measure its benefits and adverse effects as 
                indicated under subparagraph (A).
                    ``(G) Outreach.--The Secretary shall make 
                appropriate efforts in order to notify States of the 
                demonstration program under this paragraph. Upon 
                determination of participating States, the Secretary 
                shall continue to make efforts to notify institutions 
                and dependent students within participating States of 
                the opportunity to participate in the demonstration 
                program and of the participation requirements.''
                    (C) by striking subsection (b);
                    (D) by redesignating subsections (c), (d), and (e) 
                as subsections (b), (c), and (d), respectively.
            (2) Master calendar.--Section 482(a)(1)(B) (20 U.S.C. 1089) 
        is amended to read as follows:
                    ``(B) by March 1: proposed modifications, updates, 
                and notices pursuant to sections 479(c)(2)(C), 478, and 
                483(a)(6) published in the Federal Register;''.
    (c) Increasing Access to Technology.--Section 483 (20 U.S.C. 
1087ss) is further amended by adding at the end the following:
    ``(e) Addressing the Digital Divide.--The Secretary shall utilize 
savings accrued by moving more applicants to the electronic forms 
described in subsection (a)(4) to improve access to the electronic 
forms described in subsection (a)(4) for applicants meeting the 
requirements of section 479(c).''
    (d) Simplify the Treatment of Income: Reducing Untaxed Income and 
Benefits.--Subsection (b) of section 480 (20 U.S.C. 1087vv(b)) is 
amended to read as follows:
    ``(b) Untaxed Income and Benefits.--
            ``(1) The term `untaxed income and benefits' means--
                    ``(A) child support received;
                    ``(B) workman's compensation;
                    ``(C) veteran's benefits such as death pension, 
                dependency, and indemnity compensation, but excluding 
                veterans' education benefits as defined in subsection 
                (c);
                    ``(D) interest on tax-free bonds;
                    ``(E) housing, food, and other allowances 
                (excluding rent subsidies for low-income housing) for 
                military, clergy, and others (including cash payments 
                and cash value of benefits);
                    ``(F) cash support or any money paid on the 
                student`s behalf, except, for dependent students, funds 
                provided by the student's parents;
                    ``(G) untaxed portion of pensions;
                    ``(H) payments to individual retirement accounts 
                and Keogh accounts excluded from income for Federal 
                income tax purposes; and
                    ``(I) any other untaxed income and benefits, such 
                as Black Lung Benefits, Refugee Assistance, railroad 
                retirement benefits, or Job Training Partnership Act 
                noneducational benefits or benefits received through 
                participation in employment and training activities 
                under title I of the Workforce Investment Act of 1998.
            ``(2) The term `untaxed income and benefits' shall not 
        include the amount of additional child tax credit claimed for 
        Federal income tax purposes.''.
    (e) Reducing the Number of Questions.--Section 484 (20 U.S.C. 1091) 
is amended by striking subsection (r).
    (f) Allowance for State and Other Taxes.--
            (1) Allowance for state and local taxes.--Section 478 (20 
        U.S.C. 1087rr) is amended--
                    (A) by striking subsection (g); and
                    (B) by redesignating subsection (h) as subsection 
                (g).
            (2) Holding students harmless.--Section 475(c) (20 U.S.C. 
        1087oo(c)) is amended--
                    (A) in paragraph (1):
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating subparagraphs (C), 
                        (D), (E), and (F) as subparagraphs (B), (C), 
                        (D), and (E), respectively;
                    (B) by striking paragraph (2);
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Income protection allowance.--The income protection 
        allowance is determined by the following table (or a successor 
        table prescribed by the Secretary under section 478):


                                          ``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
              Family Size                                           Number in College
----------------------------------------------------------------------------------------------------------------
                                                                                                       For each
          (including student)                 1           2           3           4           5       additional
                                                                                                      subtract:
----------------------------------------------------------------------------------------------------------------
2                                          $15,207     $12,599   ..........  ..........  ..........      $3,641
3                                           18,937      16,350     $13,742   ..........  ..........  ...........
4                                           23,388      20,779      18,193     $15,596   ..........  ...........
5                                           27,595      24,986      22,400      19,802     $17,216   ...........
6                                           32,268      29,670      27,084      24,487      21,900   ...........
For each additional add:                     2,586       2,586       2,586       2,586       2,586          '';
----------------------------------------------------------------------------------------------------------------

                and
                    (D) by redesignating paragraphs (3), (4) and (5) as 
                paragraphs (2), (3) and (4), respectively.
            (3) Dependent student increase in income protection 
        allowance.--Section 475(g) (20 U.S.C. 1087oo(g)) is amended--
                    (A) in paragraph (2)--
                            (i) by striking subparagraph (B);
                            (ii) by striking subparagraph (D) and 
                        inserting the following:
                    ``(D) an income protection allowance of $2,589 (or 
                a successor amount prescribed by the Secretary under 
                section 478);''; and
                            (iii) by redesignating subparagraphs (C), 
                        (D), (E), and (F) as subparagraphs (B), (C), 
                        (D), and (E), respectively;
                    (B) by striking paragraph (3); and
                    (C) by redesignating paragraphs (4), (5), and (6) 
                as paragraphs (3), (4), and (5), respectively.
            (4) Independent student (without dependents) increase in 
        income protection allowance.--Section 476(b) (20 U.S.C. 
        1087pp(b)) is amended--
                    (A) in subparagraph (A) of paragraph (1)--
                            (i) by striking clause (ii);
                            (ii) by striking subclauses (I), (II) and 
                        (III) of clause (iv) and inserting the 
                        following:
                                    ``(I) $5,874 for single students;
                                    ``(II) $5,874 for married students 
                                who are both enrolled pursuant to 
                                subsection (a)(2); and
                                    ``(III) $9,395 for married students 
                                where one is enrolled pursuant to 
                                subsection (a)(2);''; and
                            (iii) by redesignating clauses (iii), (iv), 
                        (v), (vi), as clauses (ii), (iii), (iv), and 
                        (v), respectively;
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraphs (3), (4), and (5) 
                as paragraphs (2), (3), and (4), respectively.
            (5) Independent student (with dependents) increase in 
        income protection allowance.--Section 477(b) (20 U.S.C. 
        1087qq(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (B); and
                            (ii) by redesignating (C), (D), (E), and 
                        (F) as subparagraphs (B), (C), (D), and (E), 
                        respectively;
                    (B) by striking paragraph (2);
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Income protection allowance.--The income protection 
        allowance is determined by the following table (or a successor 
        table prescribed by the Secretary under section 478):


                                          ``Income Protection Allowance
----------------------------------------------------------------------------------------------------------------
              Family Size                                           Number in College
----------------------------------------------------------------------------------------------------------------
                                                                                                       For each
          (including student)                 1           2           3           4           5       additional
                                                                                                      subtract:
----------------------------------------------------------------------------------------------------------------
2                                          $16,935     $12,599   ..........  ..........  ..........      $3,641
3                                           18,937      16,350     $13,742   ..........  ..........  ...........
4                                           23,384      20,779      18,193     $15,596   ..........  ...........
5                                           27,596      24,986      22,400      19,802     $17,216   ...........
6                                           32,268      29,670      27,084      24,487      21,900   ...........
For each additional add:                     2,586       2,586       2,586       2,586       2,586          '';
----------------------------------------------------------------------------------------------------------------

                and
                    (D) by redesignating paragraphs (3), (4), and (5) 
                as paragraphs (2), (3), and (4), respectively.
            (6) Conforming amendment: updates.--Section 478(b) (20 
        U.S.C. 1087rr(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``1993-1994'' and inserting 
                        ``2005-2006'';
                            (ii) by striking ``475(c)(4) and 
                        477(b)(4)'' and inserting ``475(c)(3) and 
                        477(b)(3)''; and
                            (iii) by striking ``December 1992'' and 
                        inserting ``December 2004''; and
                    (B) in paragraph (2)--
                            (i) by striking ``2000-2001'' and inserting 
                        ``2005-2006'';
                            (ii) by striking ``475(g)(2)(D) and 
                        476(b)(1)(A)(iv)'' and inserting ``475(g)(2)(C) 
                        and 476(b)(1)(A)(iii)''; and
                            (iii) by striking ``December 1999'' and 
                        inserting ``December 2004''.
    (g) Relief for Working Students.--
            (1) Dependent students.--Paragraph (4) of section 475(g) 
        (20 U.S.C. 1087oo(g)(4)), as redesignated by subsection 
        (f)(3)(C), is amended to read as follows:
            ``(4) the student's available income (determined in 
        accordance with paragraph (1) of this subsection) is assessed 
        at 40 percent.''
            (2) Independent students without dependents other than a 
        spouse.--Paragraph (4) of section 476(b) (20 U.S.C. 1087pp(b)), 
        as redesignated by subsection (f)(3)(C), is amended to read as 
        follows:
            ``(4) Assessment of available income.--The family's 
        available income (determined in accordance with paragraph 
        (1)(A) of this subsection) is assessed at 40 percent.''.
    (h) Simplifying for Students With Special Circumstances.--Section 
480 (20 U.S.C. 1087vv) is amended by striking subsection (d) and 
inserting the following:
    ``(d) Independent Student.--
            ``(1) Definition.--The term `independent' when used with 
        respect to a student, means any individual who--
                    ``(A) is 24 years of age or older by December 31 of 
                the award year;
                    ``(B) is an orphan, in foster care, or a ward of 
                the court, or was in foster care or a ward of the court 
                until the individual reached the age of 18;
                    ``(C) is an emancipated youth as defined by his or 
                her state of legal residence or is in legal 
                guardianship as defined by section 475(7) of the Social 
                Security Act;
                    ``(D) is a veteran of the Armed Forces of the 
                United States (as defined in subsection (c)(1));
                    ``(E) is a graduate or professional student;
                    ``(F) is a married individual;
                    ``(G) has legal dependents other than a spouse; or
                    ``(H) is a student for whom a financial aid 
                administrator makes a documented determination of 
                independence by reason of unusual circumstances.
            ``(2) Simplifying the dependency override process.--Nothing 
        in this subsection shall prohibit a financial aid administrator 
        to make a determination of independence, as defined in 
        paragraph (1)(H), based upon a documented determination of 
        independence, as defined in paragraph (1)(H), previously made 
        by another financial aid administrator in the same application 
        year.''.
    (i) Tailoring Electronic Applications for Students With Special 
Circumstances.--Section 483(a) of the Higher Education Act is further 
amended by inserting after paragraph (13), as added by subsection 
(b)(1)(B) of this section, the following new paragraph:
            ``(14) Applications for students seeking a documented 
        determination of independence.--In the case of dependent 
        students seeking a documented determination of independence by 
        a financial aid administrator (as defined by section 480(d)), 
        nothing in this section shall prohibit the Secretary from--
                    ``(A) allowing such students to indicate their 
                special circumstance on an electronic form developed 
                pursuant for this section;
                    ``(B) collecting and processing on a preliminary 
                basis data provided by such students using the 
                electronic forms developed pursuant for this section; 
                and
                    ``(C) distributing such data to institutions of 
                higher education, guaranty agencies, and States for the 
                purposes of processing loan applications and 
                determining need and eligibility for institutional and 
                State financial aid awards on a preliminary basis, 
                pending a documented determination of independence by a 
                financial aid administrator.''.

SEC. 110. AUTHORIZATIONS OF APPROPRIATIONS FOR CAMPUS-BASED AID.

    (a) Federal TRIO Program Authorizations.--Section 402A(f) (20 
U.S.C. 1070a-11(f)) is amended--
            (1) by striking ``$700,000,000 for fiscal year 1999'' and 
        inserting ``$1,250,000,000 for fiscal year 2004''; and
            (2) by striking ``4 succeeding fiscal years'' and inserting 
        ``5 succeeding fiscal years''.
    (b) GEARUP.--Section 404H (20 U.S.C. 1070a-28) is amended to read 
as follows:

``SEC. 404H. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
chapter--
            ``(1) $500,000,000 for fiscal year 2006; and
            ``(2) such sums as may be necessary for each of the 5 
        succeeding fiscal years.''.
    (c) Federal Supplemental Educational Opportunity Grants.--
            (1) Authorization.--Section 413A(b)(1) (20 U.S.C. 
        1070b(b)(1)) is amended--
                    (A) by striking ``$675,000,000 for fiscal year 
                1999'' and inserting ``$1,000,000,000 for fiscal year 
                2006''; and
                    (B) by striking ``4 succeeding fiscal years'' and 
                inserting ``5 succeeding fiscal years''.
            (2) Maximum grant.--Section 413B(a)(2) (20 U.S.C. 1070b-
        1(a)(2)) is amended by striking ``$4,000'' and inserting 
        ``$8,000''.
    (d) College Work-Study.--Section 441(b) (20 U.S.C. 2751(b)) is 
amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part--
            ``(1) $1,500,000,000 for fiscal year 2006; and
            ``(2) such sums as may be necessary for each of the 5 
        succeeding fiscal years.''.

SEC. 111. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN 
              MIGRANT AND SEASONAL FARM WORK.

    Section 418A (20 U.S.C. 1070d-2) is amended--
            (1) in subsection (b)(1)(B)(i), by inserting ``or whose 
        spouse'' after ``themselves'';
            (2) in subsection (b)(3)(B), by inserting ``, including 
        preparation for college entrance exams,'' after ``program'';
            (3) in subsection (b)(8), by inserting ``, including child 
        care and transportation'' after ``students'';
            (4) by striking ``and'' at the end of subsection (b)(7), by 
        striking the period at the end of subsection (b)(8) and 
        inserting ``; and'', and by adding at the end of subsection (b) 
        the following new paragraph:
            ``(9) follow up activity and reporting requirements, except 
        that not more than 2 percent of the funds provided under this 
        section may be used for such purposes.'';
            (5) in subsection (c)(1)(A), by inserting ``or whose 
        spouse'' after ``themselves'';
            (6) in subsection (c)(2)(B), by inserting ``(including 
        mentoring and guidance of such students)'' after ``services'';
            (7) in subsection (c)(2), by striking ``and'' at the end of 
        subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``; and'', and by adding at the 
        end of subsection (c)(2) the following new subparagraph:
                    ``(C) for students in any program that does not 
                award a bachelor's degree, encouraging the transfer to, 
                and persistence in, such a program, and monitoring the 
                rate of such transfer, persistence, and completion.''; 
                and
            (8) in subsection (h)--
                    (A) in paragraph (1), by striking ``$15,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$24,000,000 for fiscal year 2006 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 2006 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''.

SEC. 112. INITIATIVE TO ENHANCE COLLEGE GRADUATION RATES AND TO 
              ACCELERATE TIME TO DEGREE.

    Part A of title IV is amended by inserting after subpart 7 the 
following new subpart:

  ``Subpart 8--Initiative to Enhance College Graduation Rates and to 
                       Accelerate Time to Degree

``SEC. 419P. PROGRAM AUTHORIZED.

    ``(a) Purpose.--It is the purpose of this subpart to establish a 
six-year demonstration initiative to test whether Federal financial aid 
can be leveraged more effectively to reduce postsecondary remediation 
rates and improve degree attainment rates for low-income students and 
former high school dropouts by allowing income-eligible high school 
students to use Federal grants to get a head start on college.
    ``(b) Definition of an Early College High School.--A secondary 
school is eligible for purposes of this subpart if such school--
            ``(1) is a secondary school that has an enrollment of high 
        school-aged students--
                    ``(A) all of which are taking at least 50 percent 
                of their courses at the college level over 4 or 5 
                years; and
                    ``(B) all of which, upon their graduation from high 
                school, are working towards earning an associates 
                degree or up to 2 years of transferable college credit; 
                or
            ``(2) is a secondary school that--
                    ``(A) has a partnership agreement establishing co-
                governance of the demonstration sites between local 
                educational agencies, secondary schools, postsecondary 
                institutions, or other partnering agencies (or any 
                combination thereof), including through a non-profit 
                intermediary facilitating such partnerships;
                    ``(B) supports cohorts of students in a coherent 
                course of study with strong individualized services 
                supporting students;
                    ``(C) encourages accelerated accumulation of 
                college credits;
                    ``(D) allows students to earn both a high school 
                diploma and college credit through a coherent course of 
                study enabling the attainment of credit towards a 
                postsecondary degree or credential;
                    ``(E) provides services to underrepresented 
                populations such as students eligible for Pell grants, 
                first-generation college students, students from school 
                districts with high concentrations of poverty, English 
                language learners, or former high school dropouts; and
                    ``(F) includes the participation of postsecondary 
                institutions that are in good standing under the Title 
                IV programs.
    ``(c) Application.--An early college high school which is a local 
education agency or a local education agency on behalf of an early 
college high school which desires to receive a grant under this section 
may submit an application to the Secretary at such time and containing 
such information as the Secretary may require. Such application shall 
require applicants to establish goals for how many students will 
participate in the program, and goals for the academic progress of 
participating students toward earning their high school diploma and 
associate's degree, or transferable college credit, or both.
    ``(d) Selection of Grant Recipients.--The Secretary shall select 
grant recipients on a competitive basis. In making grants under this 
section the Secretary shall award grants in an amount not less than 
$1,000,000.
    ``(e) Evaluation.--
            ``(1) Annual evaluation.--The Secretary of Education shall 
        evaluate the programs under this section on an annual basis. 
        Such evaluations shall include--
                    ``(A) the extent to which the institution, or 
                partnership has met the goals set forth in its 
                application to the Secretary;
                    ``(B) the number of students participating in the 
                program offered, including the progress of 
                participating students towards earning their high 
                school diploma and their associate's degree, or 
                transferable college credit, or both; and
                    ``(C) as consistent with the goals set forth in the 
                application to the Secretary, the number of former high 
                school drop outs participating in the program.
            ``(2) Other evaluations.--Within 18 months of the start of 
        the demonstration initiative, the Secretary of Education shall 
        report 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 with respect to--
                    ``(A) the evaluation of the demonstration program 
                under this section; and
                    ``(B) any proposed statutory changes to enhance the 
                success of the programs under this section.
    ``(f) Authorization.--There are authorized to be appropriated to 
carry out this subpart $100,000,000 for fiscal year 2006 and such sums 
as may be necessary for each of the 5 succeeding fiscal years.''.

SEC. 113. CONSOLIDATION LOAN LENDER OF CHOICE.

    (a) Student Loan Borrower Choice of Loan Consolidator.--Section 
428C(b)(1)(A) of the Higher Education Act of 1965 (20 U.S.C. 1078-
3(b)(1)(A)) is amended by striking ``and (i) the lender holds'' and all 
that follows through ``selected for consolidation)''.
    (b) Consolidation Loan Disclosure by Lenders.--Section 428C(b)(1) 
of the Higher Education Act of 1965 (20 U.S.C. 1078-3(b)(1)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (3) by inserting after subparagraph (E) the following new 
        subparagraph:
                    ``(F) that each applicant for a consolidation loan 
                will be provided a clear and conspicuous notice, in 
                such form as the Secretary shall prescribe, 
                describing--
                            ``(i) the effects of a consolidation loan 
                        and its available repayment plans on the 
                        borrower's interest rate;
                            ``(ii) the amount of his or her monthly and 
                        total payments, total interest accrued, and the 
                        length of the repayment term;
                            ``(iii) the ability of the student borrower 
                        to pre-pay loans; and
                            ``(iv) the differences between variable and 
                        fixed interest rates;''.
    (c) Disclosures by Institutions During Exit Counseling.--Section 
485(b) of the Higher Education Act of 1965 (20 U.S.C. 1092(b)) is 
amended by adding at the end the following new paragraph:
    ``(3) Each eligible institution shall provide to the borrower of a 
loan made under part B, D, or E, during the exit interview required by 
this subsection, a clear and conspicuous notice, in such form as the 
Secretary shall prescribe, describing the effect of using a 
consolidation loan to discharge the borrower's student loans, and 
including, with respect to a series of loan amounts ranges--
            ``(A) the differences between fixed and variable interest 
        rates;
            ``(B) the effects of consolidation loan and its available 
        repayment plans on the borrower's interest rate, the amount of 
        his or her monthly and total payments, total interest accrued, 
        and the length of repayment term; and
            ``(C) the ability of the student to prepay loans.''.

SEC. 114. ESTABLISHING ADDITIONAL SAFEGUARDS ON SCHOOLS ACTING AS 
              LENDERS UNDER THE FEDERAL FAMILY EDUCATION LOAN PROGRAM.

    Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is amended to read as 
follows:
            ``(2) Requirements for eligible institutions.--
                    ``(A) In general.--To be an eligible lender under 
                this part, an eligible institution
                            ``(i) shall employ at least one person 
                        whose full-time responsibilities are limited to 
                        the administration of programs of financial aid 
                        for students attending such institution;
                            ``(ii) shall not be a home study school;
                            ``(iii) shall make loans to not more than 
                        50 percent of the undergraduate students at the 
                        institution;
                            ``(iv) shall not make a loan, other than a 
                        loan to a graduate or professional student, 
                        unless the borrower has previously received a 
                        loan from the school;
                            ``(v) shall award any contract for 
                        financing, servicing, administration, or 
                        administration of loans under this title on a 
                        competitive basis;
                            ``(vi) shall offer loans which carry a 
                        reduced origination fee, or a lower interest 
                        rate, or both, than are authorized under the 
                        provisions of this title;
                            ``(vii) shall not have a cohort default 
                        rate (as defined in section 435(m)) greater 
                        than 10 percent;
                            ``(viii) shall use any 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; and
                            ``(ix) shall, for any year for which the 
                        institution engages in activities as an 
                        eligible lender, provide for a compliance audit 
                        conducted in accordance with section 
                        428(b)(1)(U)(iii)(I), and the regulations 
                        thereunder, and submit the results of such 
                        audit to the Secretary.
                    ``(B) Administrative expenses.--An eligible lender 
                under subparagraph (A) shall be permitted to use a 
                portion of the proceeds described in subparagraph 
                (A)(viii) for reasonable and direct administrative 
                expenses.
                    ``(C) Supplement, not supplant.--An eligible lender 
                under subparagraph (A) shall ensure that the proceeds 
                described in subparagraph (A)(viii) are used to 
                supplement, and not to supplant, non-Federal funds that 
                would otherwise be used for need-based grant 
                programs.''.

SEC. 115. BOOSTING OPPORTUNITIES FOR LOW-INCOME PARENTS TO PURSUE 
              COLLEGE DEGREES.

    (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
1070e(b)(2)(B)) is amended by striking ``$10,000'' and inserting 
``$30,000''.
    (b) Eligible Institutions.--Section 419N(b)(4) is amended by 
striking ``$350,000'' and inserting ``$250,000''.
    (c) Income Eligibility.--Section 419N(b)(7) is amended by striking 
``who is eligible to receive'' and inserting ``whose income qualifies 
for eligibility for''.
    (d) Publicity.--Section 419N(b) is further amended by adding at the 
end the following new paragraph:
            ``(8) Publicity.--The Secretary shall publicize the 
        availability of grants under this section in appropriate 
        periodicals, in addition to publication in the Federal 
        Register, and shall inform appropriate educational 
        organizations of such availability.''.
    (e) Authorization of Appropriations.--Section 419N(g) is amended by 
striking ``$45,000,000 for fiscal year 1999'' and inserting 
``$75,000,000 for fiscal year 2006''.

SEC. 116. SUPPORT FOR COMMUNITY SERVICE IN COLLEGE WORK-STUDY PROGRAM.

    (a) Authorization of Appropriations.--
            (1) Amendment.--Section 441(b) (20 U.S.C. 2751(b)) is 
        amended to read as follows:
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this part (other than for community service 
        competitive grants)--
                    ``(A) $1,500,000,000 for fiscal year 2006; and
                    ``(B) such sums as may be necessary for each of the 
                5 succeeding fiscal years.
            ``(2) Community service competitive grants.--There are 
        authorized to be appropriated to make community service 
        competitive grants under section 447(b)--
                    ``(A) $350,000,000 for fiscal year 2006; and
                    ``(B) such sums as may be necessary for each of the 
                5 succeeding fiscal years.''.
            (2) Conforming amendments.--Section 442 (42 U.S.C. 2752) is 
        amended by striking ``section 441(b)'' each place it appears 
        and inserting ``section 441(b)(1)''.
    (b) Competitive Community Service Grants.--Section 447 (42 U.S.C. 
2756a) is amended--
            (1) by striking ``Each institution'' and inserting the 
        following:
    ``(a) Use of Administrative Funds.--''; and
            (2) by adding at the end the following new subsection:
    ``(b) Competitive Grants to Further Enhance Community Service.--
            ``(1) Grants authorized.--From the amounts appropriated 
        under section 441(b)(2), the Secretary is authorized to award 
        competitive grants to institutions that dedicate a 
        significantly greater proportion of their allocations under 
        section 442 to providing community service opportunities under 
        this part.
            ``(2) Minimum grant; duration.--The minimum grant the 
        Secretary shall award under this subsection shall be $500,000, 
        except that the Secretary may increase such amount based on the 
        number of participants and the level of community service. A 
        grant awarded under this subsection shall be for a single 
        academic year, but such grants may be continued in subsequent 
        years to successful competitors.
            ``(3) Applications; agreements.--Any institution of higher 
        education desiring to obtain a grant under this subsection 
        shall submit an application therefor to the Secretary at such 
        time, in such form, and containing or accompanied by such 
        information and agreements as the Secretary may require.''.

SEC. 117. B.J. STUPAK OLYMPIC SCHOLARSHIPS.

    Section 1543(d) of the Higher Education Amendments of 1992 (20 
U.S.C. 1070 note) is amended by striking ``1999'' and inserting 
``2006''.

SEC. 118. REDUCTION OF GUARANTY AGENCY PAYMENTS.

    (a) Insurance Percentages.--Subparagraph (G) of section 428(b)(1) 
(20 U.S.C. 1078(b)(1)(G)) is amended to read as follows:
                    ``(G) insures 98 percent of the unpaid principal of 
                loans insured under the program, except that--
                            ``(i) such program shall insure 100 percent 
                        of the unpaid principal of loans made with 
                        funds advanced pursuant to section 428(j) or 
                        439(q); and
                            ``(ii) with respect to any loan for which 
                        the first disbursement of principal is made on 
                        or after October 1, 2006, the preceding 
                        provisions of this subparagraph shall be 
                        applied--
                                    ``(I) by substituting `95 percent' 
                                for `98 percent'; and
                                    ``(II) by substituting `97 percent' 
                                for `100 percent';''.
    (b) Retention of Collections.--Subparagraph (B) of section 
428(c)(6) (20 U.S.C. 1078(c)(6)(B)) is amended to read as follows:
                    ``(B) an amount equal to the following percentage 
                of such payments for use in accordance with section 
                422B--
                            ``(i) from October 1, 2003, until September 
                        30, 2006, inclusive, 23 percent;
                            ``(ii) from October 1, 2006, until 
                        September 30, 2008, inclusive, 20 percent;
                            ``(iii) from October 1, 2008, until 
                        September 30, 2010, inclusive, 18 percent; and
                            ``(iv) after September 30, 2010, 16 
                        percent.''.

                       TITLE II--TEACHER QUALITY

SEC. 201. TEACHER RECRUITING AND PREPARATION.

    (a) TEACH Grants.--Title II of the Higher Education Act of 1965 (20 
U.S.C. 1021 et seq.) is amended by adding at the end the following new 
part:

                         ``PART C--TEACH GRANTS

``SEC. 231. PURPOSES.

    ``The purposes of the part are--
            ``(1) to improve student academic achievement;
            ``(2) to help recruit and prepare teachers to meet the 
        national demand for a highly qualified teacher in every 
        classroom; and
            ``(3) to increase opportunities for Americans of all 
        educational, ethnic, class, and geographic backgrounds to 
        become highly qualified teachers.

``SEC. 232. PROGRAM ESTABLISHED.

    ``(a) Program Authority.--
            ``(1) Payments required.--For each of the fiscal years 2006 
        through 2013, the Secretary shall pay to each eligible 
        institution such sums as may be necessary to pay to each 
        eligible student (defined in accordance with section 484) who 
        files an application and agreement in accordance with section 
        233, and qualifies under subsection (a)(2) of such section, a 
        TEACH Grant in the amount of $4,000 for each academic year 
        during which that student is in attendance at an institution of 
        higher education.
            ``(2) Reference.--Grants made under this part shall be 
        known as `Teacher Education Assistance for College and Higher 
        Education Grants' or `TEACH Grants'.
    ``(b) Payment Methodology.--
            ``(1) Prepayment.--Not less than 85 percent of such sums 
        shall be advanced to eligible institutions prior to the start 
        of each payment period and shall be based upon an amount 
        requested by the institution as needed to pay eligible students 
        until such time as the Secretary determines and publishes in 
        the Federal Register with an opportunity for comment, an 
        alternative payment system that provides payments to 
        institutions in an accurate and timely manner, except that this 
        sentence shall not be construed to limit the authority of the 
        Secretary to place an institution on a reimbursement system of 
        payment.
            ``(2) Direct payment.--Nothing in this section shall be 
        interpreted to prohibit the Secretary from paying directly to 
        students, in advance of the beginning of the academic term, an 
        amount for which they are eligible, in cases where the eligible 
        institution elects not to participate in the disbursement 
        system required by paragraph (1).
            ``(3) Distribution of grants to students.--Payments under 
        this part shall be made, in accordance with regulations 
        promulgated by the Secretary for such purpose, in such manner 
        as will best accomplish the purpose of this part. Any 
        disbursement allowed to be made by crediting the student's 
        account shall be limited to tuition and fees and, in the case 
        of institutionally owned housing, room and board. The student 
        may elect to have the institution provide other such goods and 
        services by crediting the student's account.
    ``(c) Reductions in Amount.--
            ``(1) Part time students.--In any case where a student 
        attends an institution of higher education on less than a full-
        time basis (including a student who attends an institution of 
        higher education on less than a half-time basis) during any 
        academic year, the amount of the TEACH Grant for which that 
        student is eligible shall be reduced in proportion to the 
        degree to which that student is not so attending on a full-time 
        basis, in accordance with a schedule of reductions established 
        by the Secretary for the purposes of this part, computed in 
        accordance with this part. Such schedule of reductions shall be 
        established by regulation and published in the Federal Register 
        in accordance with section 482 of this Act.
            ``(2) No exceeding cost.--No TEACH Grant under this part 
        shall exceed the the cost of attendance (as defined in section 
        472) at the institution at which that student is in attendance. 
        If, with respect to any student, it is determined that the 
        amount of a TEACH Grant exceeds the cost of attendance for that 
        year, the amount of the TEACH Grant shall be reduced until the 
        TEACH Grant does not exceed the cost of attendance at such 
        institution.
    ``(d) Period of Eligibility for Grants.--
            ``(1) Undergraduate students.--The period during which an 
        undergraduate student may receive TEACH Grants shall be the 
        period required for the completion of the first undergraduate 
        baccalaureate course of study being pursued by that student at 
        the institution at which the student is in attendance except 
        that--
                    ``(A) any period during which the student is 
                enrolled in a noncredit or remedial course of study as 
                defined in paragraph (3) shall not be counted for the 
                purpose of this paragraph; and
                    ``(B) the total amount that a student may receive 
                under this part for undergraduate study shall not 
                exceed $16,000.
            ``(2) Graduate students.--The period during which a 
        graduate student may receive TEACH Grants shall be the period 
        required for the completion of a master's degree course of 
        study being pursued by that student at the institution at which 
        the student is in attendance, except that the total amount that 
        a student may receive under this part for graduate study shall 
        not exceed $8,000.
            ``(3) Remedial course; study abroad.--Nothing in this 
        section shall exclude from eligibility courses of study which 
        are noncredit or remedial in nature (including courses in 
        English language acquisition) which are determined by the 
        institution to be necessary to help the student be prepared for 
        the pursuit of a first undergraduate baccalaureate degree or 
        certificate or, in the case of courses in English language 
        instruction, to be necessary to enable the student to utilize 
        already existing knowledge, training, or skills. Nothing in 
        this section shall exclude from eligibility programs of study 
        abroad that are approved for credit by the home institution at 
        which the student is enrolled.

``SEC. 233. ELIGIBILITY AND APPLICATIONS FOR GRANTS.

    ``(a) Applications; Demonstration of Eligibility.--
            ``(1) Filing required.--The Secretary shall from time to 
        time set dates by which students shall file applications for 
        TEACH Grants under this part. Each student desiring a TEACH 
        Grant for any year shall file an application therefore 
        containing such information and assurances as the Secretary may 
        deem necessary to enable the Secretary to carry out the 
        functions and responsibilities of this part.
            ``(2) Demonstration of eligibility.--Each such application 
        shall contain such information as is necessary to demonstrate 
        that--
                    ``(A) if the applicant is an enrolled student--
                            ``(i) the student is an eligible student 
                        for purposes of section 484 (other than 
                        subsection (r) of such section);
                            ``(ii) the student--
                                    ``(I) has a grade point average 
                                that is determined, under standards 
                                prescribed by the Secretary, to be 
                                comparable to a 3.25 average on a zero 
                                to 4.0 scale, except that, if the 
                                student is in the first year of a 
                                program of undergraduate education, 
                                such grade point average shall be 
                                determined on the basis of the 
                                student's cumulative high school grade 
                                point average; or
                                    ``(II) displayed high academic 
                                aptitude by receiving a score above the 
                                75th percentile on at least one of the 
                                batteries in a undergraduate or 
                                graduate school admissions test; and
                            ``(iii) the student is completing 
                        coursework and other requirements necessary to 
                        begin a career in teaching, or plans to 
                        complete such coursework and requirements prior 
                        to graduating; or
                    ``(B) if the applicant is a current or prospective 
                teacher applying for a grant to obtain a graduate 
                degree--
                            ``(i) the applicant is a teacher or a 
                        retiree from another occupation with expertise 
                        in a field in which there is a shortage of 
                        teachers, such as math, science, special 
                        education, English language acquisition, or 
                        another high-need subject; or
                            ``(ii) the applicant is or was a teacher 
                        who is using high-quality alternative 
                        certification routes, such as Teach for 
                        America, to get certified.
    ``(b) Agreements to Serve.--Each application under subsection (a) 
shall contain or be accompanied by an agreement by the applicant that--
            ``(1) the applicant will--
                    ``(A) serve as a full-time teacher for a total of 
                not less than 4 academic years within 8 years after 
                completing the course of study for which the applicant 
                received a TEACH Grant under this part;
                    ``(B) teach--
                            ``(i) in a school described in section 
                        465(a)(2)(A); and
                            ``(ii) in any of the following fields: 
                        mathematics, science, a foreign language, 
                        bilingual education, or special education, or 
                        as a reading specialist, or another field 
                        documented as high-need by the Federal 
                        Government, State government, or local 
                        education agency and submitted to the 
                        Secretary;
                    ``(C) submit evidence of such employment in the 
                form of a certification by the chief administrative 
                officer of the school upon completion of each year of 
                such service; and
                    ``(D) comply with the requirements for being a 
                highly qualified teacher as defined in section 9101 of 
                the Elementary and Secondary Education Act of 1965; and
            ``(2) in the event that the applicant is determined to have 
        failed or refused to carry out such service obligation, the sum 
        of the amounts of such Grants will be treated as a loan and 
        collected from the applicant in accordance with subsection (c) 
        and the regulations thereunder.
    ``(c) Repayment for Failure to Complete Service.--In the event that 
any recipient of an TEACH Grant fails or refuses to comply with the 
service obligation in the agreement under subsection (b), the sum of 
the amounts of such Grants provided to such recipient shall be treated 
as a Direct Loan under part D of title IV, and shall be subject to 
repayment in accordance with terms and conditions specified by the 
Secretary in regulations under this part.''.
    (b) Recruiting Teachers With Math, Science, or Language Major.--
Title II of the Higher Education Act of 1965 is further amended by 
adding after part C (as added by subsection (a)) the following new 
part:

  ``PART D--RECRUITING TEACHERS WITH MATH, SCIENCE, OR LANGUAGE MAJORS

``SEC. 241. PROGRAM AUTHORIZED.

    ``(a) Grants Authorized.--From the amounts appropriated under 
section 242, the Secretary shall make competitive grants to 
institutions of higher education to improve the availability and 
recruitment of teachers from among students majoring in math, science, 
foreign languages, special education, or teaching the English language 
to students with limited English proficiency. In making such grants, 
the Secretary shall give priority to programs that focus on preparing 
teachers in subjects in which there is a shortage of highly qualified 
teachers and that prepare students to teach in high-need schools.
    ``(b) Application.--Any institution of higher education desiring to 
obtain a grant under this part shall submit to the Secretary an 
application at such time, in such form, and containing such information 
and assurances as the Secretary may require, which shall--
            ``(1) include reporting on baseline production of teachers 
        with expertise in math, science, a foreign language, or 
        teaching English language learners; and
            ``(2) establish a goal and timeline for increasing the 
        number of such teachers who are prepared by the institution.
    ``(c) Use of Funds.--Funds made available by grant under this 
part--
            ``(1) shall be used to create new recruitment incentives to 
        teaching from other majors, with an emphasis on high-need 
        subjects such as math, science, foreign languages, and teaching 
        the English language to students with limited English 
        proficiency;
            ``(2) may be used to upgrade curriculum in order to provide 
        all students studying to become teachers with high-quality 
        instructional strategies for teaching reading and teaching the 
        English language to students with limited English proficiency, 
        and for modifying instruction to teach students with special 
        needs;
            ``(3) may be used to integrate school of education faculty 
        with other arts and science faculty in math, science, foreign 
        languages, and teaching the English language to students with 
        limited English proficiency through steps such as--
                    ``(A) dual appointments for faculty between schools 
                of education and schools of arts and science; and
                    ``(B) integrating coursework with clinical 
                experience; and
            ``(4) may be used to develop strategic plans between 
        schools of education and local school districts to better 
        prepare teachers for high-need schools, including the creation 
        of professional development partnerships for training new 
        teachers in state-of-the-art practice.

``SEC. 242. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to make grants under this 
part $200,000,000 for fiscal year 2006 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.''.
    (c) Part A Authorization.--Section 210 of the Higher Education Act 
of 1965 (20 U.S.C. 1030) is amended--
            (1) by striking ``$300,000,000 for fiscal year 1999'' and 
        inserting ``$400,000,000 for fiscal year 2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 202. TEACHER QUALITY ENHANCEMENT GRANTS.

    Part A of title II of the Higher Education Act of 1965 is amended 
by striking sections 206 through 209 (20 U.S.C. 1026-1029) and 
inserting the following:

``SEC. 206. ACCOUNTABILITY AND EVALUATION.

    ``(a) State Grant Accountability Report.--An eligible State that 
receives a grant under section 202 shall submit an annual 
accountability report to the Secretary, the Committee on Health, 
Education, Labor, and Pensions of the Senate, and the Committee on 
Education and the Workforce of the House of Representatives. Such 
report shall include a description of the degree to which the eligible 
State, in using funds provided under such section, has made substantial 
progress in meeting the following goals:
            ``(1) Percentage of highly qualified teachers.--Increasing 
        the percentage of highly qualified teachers in the State as 
        required by section 1119 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6319).
            ``(2) Student academic achievement.--Increasing student 
        academic achievement for all students, which may be measured 
        through the use of value-added assessments, as defined by the 
        eligible State.
            ``(3) Raising standards.--Raising the State academic 
        standards required to enter the teaching profession as a highly 
        qualified teacher.
            ``(4) Initial certification or licensure.--Increasing 
        success in the pass rate for initial State teacher 
        certification or licensure, or increasing the numbers of 
        qualified individuals being certified or licensed as teachers 
        through alternative routes to certification and licensure.
            ``(5) Decreasing teacher shortages.--Decreasing shortages 
        of highly qualified teachers in poor urban and rural areas.
            ``(6) Increasing opportunities for research-based 
        professional development.--Increasing opportunities for 
        enhanced and ongoing professional development that--
                    ``(A) improves the academic content knowledge of 
                teachers in the subject areas in which the teachers are 
                certified or licensed to teach or in which the teachers 
                are working toward certification or licensure to teach; 
                and
                    ``(B) promotes strong teaching skills.
            ``(7) Technology integration.--Increasing the number of 
        teachers prepared effectively to integrate technology into 
        curricula and instruction and who use technology to collect, 
        manage, and analyze data to improve teaching, learning, and 
        parental involvement decisionmaking for the purpose of 
        increasing student academic achievement.
    ``(b) Eligible Partnership Evaluation.--Each eligible partnership 
applying for a grant under section 203 shall establish, and include in 
the application submitted under section 203(c), an evaluation plan that 
includes strong performance objectives. The plan shall include 
objectives and measures for--
            ``(1) increased student achievement for all students, as 
        measured by the partnership;
            ``(2) increased teacher retention in the first 3 years of a 
        teacher's career;
            ``(3) increased success in the pass rate for initial State 
        certification or licensure of teachers;
            ``(4) increased percentage of highly qualified teachers; 
        and
            ``(5) increasing the number of teachers trained effectively 
        to integrate technology into curricula and instruction and who 
        use technology to collect, manage, and analyze data to improve 
        teaching, learning, and decisionmaking for the purpose of 
        improving student academic achievement.
    ``(c) Revocation of Grant.--
            ``(1) Report.--Each eligible State or eligible partnership 
        receiving a grant under section 202 or 203 shall report 
        annually on the progress of the eligible State or eligible 
        partnership toward meeting the purposes of this part and the 
        goals, objectives, and measures described in subsections (a) 
        and (b).
            ``(2) Revocation.--
                    ``(A) Eligible states and eligible applicants.--If 
                the Secretary determines that an eligible State or 
                eligible applicant is not making substantial progress 
                in meeting the purposes, goals, objectives, and 
                measures, as appropriate, by the end of the second year 
                of a grant under this part, then the grant payment 
                shall not be made for the third year of the grant.
                    ``(B) Eligible partnerships.--If the Secretary 
                determines that an eligible partnership is not making 
                substantial progress in meeting the purposes, goals, 
                objectives, and measures, as appropriate, by the end of 
                the third year of a grant under this part, then the 
                grant payments shall not be made for any succeeding 
                year of the grant.
    ``(d) Evaluation and Dissemination.--The Secretary shall evaluate 
the activities funded under this part and report annually the 
Secretary's findings regarding the activities to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the Committee 
on Education and the Workforce of the House of Representatives. The 
Secretary shall broadly disseminate successful practices developed by 
eligible States and eligible partnerships under this part, and shall 
broadly disseminate information regarding such practices that were 
found to be ineffective.

``SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

    ``(a) State Report Card on the Quality of Teacher and Principal 
Preparation.--Each State that receives funds under this Act shall 
provide to the Secretary annually, in a uniform and comprehensible 
manner that conforms with the definitions and methods established by 
the Secretary, a State report card on the quality of teacher 
preparation in the State, both for traditional certification or 
licensure programs and for alternative certification or licensure 
programs, which shall include at least the following:
            ``(1) A description of the teacher and principal 
        certification and licensure assessments, and any other 
        certification and licensure requirements, used by the State.
            ``(2) The standards and criteria that prospective teachers 
        and principals must meet in order to attain initial teacher and 
        principal certification or licensure and to be certified or 
        licensed to teach particular subjects or in particular grades 
        within the State.
            ``(3) A demonstration of the extent to which the 
        assessments and requirements described in paragraph (1) are 
        aligned with the State's standards and assessments for 
        students.
            ``(4) The percentage of students who have completed at 
        least 50 percent of the requirements for a teacher preparation 
        program at an institution of higher education or alternative 
        certification program and who have taken and passed each of the 
        assessments used by the State for teacher certification and 
        licensure, and the passing score on each assessment that 
        determines whether a candidate has passed that assessment.
            ``(5) For students who have completed at least 50 percent 
        of the requirements for a teacher preparation program at an 
        institution of higher education or alternative certification 
        program, and who have taken and passed each of the assessments 
        used by the State for teacher certification and licensure, each 
        such institution's and each such program's average raw score, 
        ranked by teacher preparation program, which shall be made 
        available widely and publicly.
            ``(6) A description of each State's alternative routes to 
        teacher certification, if any, and the number and percentage of 
        teachers certified through each alternative certification route 
        who pass State teacher certification or licensure assessments.
            ``(7) For each State, a description of proposed criteria 
        for assessing the performance of teacher and principal 
        preparation programs in the State, including indicators of 
        teacher and principal candidate skills, placement and retention 
        rates (to the extent feasible), and academic content knowledge 
        and evidence of gains in student academic achievement.
            ``(8) For each teacher preparation program in the State, 
        the number of students in the program, the number of minority 
        students in the program, the average number of hours of 
        supervised practice teaching required for those in the program, 
        and the number of full-time equivalent faculty, adjunct 
        faculty, and students in supervised practice teaching.
            ``(9) For the State as a whole, and for each teacher 
        preparation program in the State, the number of teachers 
        prepared, in the aggregate and reported separately by--
                    ``(A) number of minority students;
                    ``(B) level (elementary or secondary);
                    ``(C) academic major;
                    ``(D) subject or subjects for which the student has 
                been prepared to teach; and
                    ``(E) teacher candidates who speak a language other 
                than English and have been trained specifically to 
                teach English-language learners.
            ``(10) The State shall refer to the data generated for 
        paragraph (9) to report on the extent to which teacher 
        preparation programs are helping to address shortages of 
        qualified teachers, by level, subject, and specialty, in the 
        State's public schools, especially in poor urban and rural 
        areas as required by section 206(a)(5).
    ``(b) Report of the Secretary on the Quality of Teacher 
Preparation.--
            ``(1) Report card.--The Secretary shall provide to 
        Congress, and publish and make widely available, a report card 
        on teacher qualifications and preparation in the United States, 
        including all the information reported in paragraphs (1) 
        through (11) of subsection (a). Such report shall identify 
        States for which eligible States and eligible partnerships 
        received a grant under this part. Such report shall be so 
        provided, published and made available annually.
            ``(2) Report to congress.--The Secretary shall report to 
        Congress--
                    ``(A) a comparison of States efforts to improve 
                teaching quality; and
                    ``(B) regarding the national mean and median scores 
                on any standardized test that is used in more than 1 
                State for teacher certification or licensure.
            ``(3) Special rule.--In the case of programs with fewer 
        than 10 students who have completed at least 50 percent of the 
        requirements for a teacher preparation program taking any 
        single initial teacher certification or licensure assessment 
        during an academic year, the Secretary shall collect and 
        publish information with respect to an average pass rate on 
        State certification or licensure assessments taken over a 3-
        year period.
    ``(c) Coordination.--The Secretary, to the extent practicable, 
shall coordinate the information collected and published under this 
part among States for individuals who took State teacher certification 
or licensure assessments in a State other than the State in which the 
individual received the individual's most recent degree.
    ``(d) Institution and Program Report Cards on Quality of Teacher 
Preparation.--
            ``(1) Report card.--Each institution of higher education or 
        alternative certification program that conducts a teacher 
        preparation program that enrolls students receiving Federal 
        assistance under this Act shall report annually to the State 
        and the general public, in a uniform and comprehensible manner 
        that conforms with the definitions and methods established by 
        the Secretary, both for traditional certification or licensure 
        programs and for alternative certification or licensure 
        programs, the following information, disaggregated by major 
        racial and ethnic groups:
                    ``(A) Pass rate.--(i) For the most recent year for 
                which the information is available, the pass rate of 
                each student who has completed at least 50 percent of 
                the requirements for the teacher preparation program on 
                the teacher certification or licensure assessments of 
                the State in which the institution is located, but only 
                for those students who took those assessments within 3 
                years of receiving a degree from the institution or 
                completing the program.
                    ``(ii) A comparison of the institution or program's 
                pass rate for students who have completed at least 50 
                percent of the requirements for the teacher preparation 
                program with the average pass rate for institutions and 
                programs in the State.
                    ``(iii) A comparison of the institution or 
                program's average raw score for students who have 
                completed at least 50 percent of the requirements for 
                the teacher preparation program with the average raw 
                scores for institutions and programs in the State.
                    ``(iv) In the case of programs with fewer than 10 
                students who have completed at least 50 percent of the 
                requirements for a teacher preparation program taking 
                any single initial teacher certification or licensure 
                assessment during an academic year, the institution 
                shall collect and publish information with respect to 
                an average pass rate on State certification or 
                licensure assessments taken over a 3-year period.
                    ``(v) A report on the number of times candidates 
                have to take the test before passing.
                    ``(B) Program information.--The number of students 
                in the program, the average number of hours of 
                supervised practice teaching required for those in the 
                program, and the number of full-time equivalent faculty 
                and students in supervised practice teaching.
                    ``(C) Statement.--In States that require approval 
                or accreditation of teacher education programs, a 
                statement of whether the institution's program is so 
                approved or accredited, and by whom.
                    ``(D) Designation as low-performing.--Whether the 
                program has been designated as low-performing by the 
                State under section 208(a).
            ``(2) Requirement.--The information described in paragraph 
        (1) shall be reported through publications such as school 
        catalogs and promotional materials sent to potential 
        applicants, secondary school guidance counselors, and 
        prospective employers of the institution's program graduates, 
        including materials sent by electronic means.
            ``(3) Fines.--In addition to the actions authorized in 
        section 487(c), the Secretary may impose a fine not to exceed 
        $25,000 on an institution of higher education for failure to 
        provide the information described in this subsection in a 
        timely or accurate manner.
    ``(e) Data Quality.--Either--
            ``(1) the Governor of the State; or
            ``(2) in the case of a State for which the constitution or 
        law of such State designates another individual, entity, or 
        agency in the State to be responsible for teacher certification 
        and preparation activity, such individual, entity, or agency;
shall attest annually, in writing, as to the reliability, validity, 
integrity, and accuracy of the data submitted pursuant to this section.

``SEC. 208. STATE FUNCTIONS.

    ``(a) State Assessment.--In order to receive funds under this Act, 
a State shall have in place a procedure to identify and assist, through 
the provision of technical assistance, low-performing programs of 
teacher preparation within institutions of higher education. Such State 
shall provide the Secretary an annual list of such low-performing 
institutions that includes an identification of those institutions at 
risk of being placed on such list. Such levels of performance shall be 
determined solely by the State and may include criteria based upon 
information collected pursuant to this part. Such assessment shall be 
described in the report under section 207(a). A State receiving Federal 
funds under this title shall develop plans to close or reconstitute 
underperforming programs of teacher preparation within institutions of 
higher education.
    ``(b) Termination of Eligibility.--Any institution of higher 
education that offers a program of teacher preparation in which the 
State has withdrawn the State's approval or terminated the State's 
financial support due to the low performance of the institution's 
teacher preparation program based upon the State assessment described 
in subsection (a)--
            ``(1) shall be ineligible for any funding for professional 
        development activities awarded by the Department of Education; 
        and
            ``(2) shall not be permitted to accept or enroll any 
        student who receives aid under title IV of this Act in the 
        institution's teacher preparation program.

``SEC. 209. GENERAL PROVISIONS.

    ``In complying with sections 207 and 208, the Secretary shall 
ensure that States and institutions of higher education use fair and 
equitable methods in reporting and that the reporting methods do not 
allow identification of individuals.''.

                 TITLE III--ENHANCING COLLEGE OUTREACH

SEC. 301. FEDERAL TRIO PROGRAM.

    (a) TRIO Duration of Grant.--Section 402A(b) (20 U.S.C. 1070a-
11(b)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Duration.--Grants or contracts made under this 
        chapter shall be awarded for a period of 5 years, except that--
                    ``(A) grants made under section 402G shall be 
                awarded for a period of 2 years; and
                    ``(B) grants under section 402H shall be awarded 
                for a period determined by the Secretary.''.
    (b) Minimum Grants.--Section 402A(b)(3) is amended--
            (1) by striking ``$170,000'' and inserting ``$200,000'';
            (2) by striking ``$180,000'' and inserting ``$210,000''; 
        and
            (3) by striking ``$190,000'' and inserting ``$220,000''.
    (c) Maximum Upward Bound Stipends.--Section 402C(e) (20 U.S.C. 
1070a-13(e)) is amended--
            (1) by striking ``$60'' and inserting ``$100''; and
            (2) by striking ``$40'' and inserting ``$60''.
    (d) Maximum Mcnair Stipends.--Section 402E(e)(1) (20 U.S.C. 1070a-
15(e)(1)) is amended by striking ``$2,800'' and inserting ``$5,000''.

SEC. 302. GEARUP.

    (a) Current Grantees.--Section 404A(b)(1) (20 U.S.C. 1070a-
21(b)(1)) is amended--
            (1) by inserting ``6-year'' after ``shall make''; and
            (2) by adding at the end the following: ``An eligible 
        entity that has received an award under this section, has 
        performed successfully, and still has a need for an award may 
        apply for an additional award under this section.''.
    (b) Eligible Entity Plans.--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''.

SEC. 303. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP.

    (a) Authorization of Appropriations.--Section 415A(b)(1) (20 U.S.C. 
1070c(b)(1)) is amended--
            (1) by striking ``$105,000,000 for fiscal year 1999'' and 
        inserting ``$200,000,000 for fiscal year 2004''; and
            (2) by striking ``4 succeeding fiscal years'' and inserting 
        ``5 succeeding fiscal years''.
    (b) Maximum Grant.--Section 415C(b)(2) (20 U.S.C. 1070c-2(b)(2)) is 
amended by striking ``$5,000'' and inserting ``$12,500''.

 TITLE IV--OPPORTUNITIES AT HISPANIC-SERVING COLLEGES AND UNIVERSITIES

SEC. 401. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.

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

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

``SEC. 511. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds the following:
            ``(1) According to the United States Census, by the year 
        2050 one in four Americans will be of Hispanic origin.
            ``(2) Despite the dramatic increase in the Hispanic 
        population in the United States, the National Center for 
        Education Statistics reported that in 1999, Hispanics accounted 
        for only 4 percent of the master's degrees, 3 percent of the 
        doctor's degrees, and 5 percent of first-professional degrees 
        awarded in the United States.
            ``(3) Although Hispanics constitute 10 percent of the 
        college enrollment in the United States, they comprise 3 only 
        percent of instructional faculty in college and universities.
            ``(4) The future capacity for research and advanced study 
        in the United States will require increasing the number of 
        Hispanics pursuing postbaccalaureate studies.
            ``(5) Hispanic-serving institutions are leading the nation 
        in increasing the number of Hispanics attaining graduate and 
        professional degrees.
            ``(6) Among Hispanics who received master's degrees in 
        1999-2000, 25 percent earned them at Hispanic-serving 
        institutions.
            ``(7) Between 1991 and 2000, the number of Hispanic 
        students earning master's degrees at Hispanic-serving 
        institutions grew 136 percent, the number receiving doctor's 
        degrees grew by 85 percent, and the number earning first-
        professional degrees grew by 47 percent.
            ``(8) It is in the National interest to expand the capacity 
        of Hispanic-serving institutions to offer graduate and 
        professional degree programs.
    ``(b) Purposes.--The purposes of this part are--
            ``(1) to expand postbaccalaureate educational opportunities 
        for, and improve the academic attainment of, Hispanic students; 
        and
            ``(2) to expand and enhance the postbaccalaureate academic 
        offerings, program quality, that are educating the majority of 
        Hispanic college students and helping large numbers of Hispanic 
        students and other low-income individuals complete 
        postsecondary degrees.

``SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY.

    ``(a) Program Authorized.--Subject to the availability of funds 
appropriated to carry out this part, the Secretary shall award 
competitive grants to Hispanic-serving institutions that offer 
postbaccalaureate certifications or degrees.
    ``(b) Eligibility.--For the purposes of this part, an `eligible 
institution' means an institution of higher education that--
            ``(1) is an eligible institution under section 502; and
            ``(2) offers a postbaccalaureate certificate or degree 
        granting program.

``SEC. 513. AUTHORIZED ACTIVITIES.

    ``Grants awarded under this part shall be used for one or more of 
the following activities:
            ``(1) Purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, including 
        instructional and research purposes.
            ``(2) Construction, maintenance, renovation, and 
        improvement in classroom, library, laboratory, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services.
            ``(3) Purchase of library books, periodicals, technical and 
        other scientific journals, microfilm, microfiche, and other 
        educational materials, including telecommunications program 
        materials.
            ``(4) Support for needy postbaccalaureate students 
        including outreach, academic support services, mentoring, 
        scholarships, fellowships, and other financial assistance to 
        permit the enrollment of such students in postbaccalaureate 
        certificate and degree granting programs.
            ``(5) Support of faculty exchanges, faculty development, 
        faculty research, curriculum development, and academic 
        instruction.
            ``(6) Creating or improving facilities for Internet or 
        other distance learning academic instruction capabilities, 
        including purchase or rental of telecommunications technology 
        equipment or services.
            ``(7) Collaboration with other institutions of higher 
        education to expand postbaccalaureate certificate and degree 
        offerings.
            ``(8) Other activities proposed in the application 
        submitted pursuant to section 514 that--
                    ``(A) contribute to carrying out the purposes of 
                this part; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.

``SEC. 514. APPLICATION AND DURATION.

    ``(a) Application.--Any eligible institution may apply for a grant 
under this part by submitting an application to the Secretary at such 
time and in such manner as determined by the Secretary. Such 
application shall demonstrate how the grant funds will be used to 
improve postbaccalaureate education opportunities for Hispanic and low-
income students and will lead to greater financial independence.
    ``(b) Duration.--Grants under this part shall be awarded for a 
period not to exceed 5 years.
    ``(c) Limitation.--The Secretary shall not award more than 1 grant 
under this part in any fiscal year to any Hispanic-serving 
institution.''.
    (b) Cooperative Arrangements.--Section 524 of such Act (as 
redesignated by subsection (a)(2)) (20 U.S.C. 1103c) is amended by 
inserting ``and section 513'' after ``section 503''.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS FOR HISPANIC SERVING 
              INSTITUTIONS.

    (a) Authorization of Appropriations.--Subsection (a) of section 528 
of such Act (as redesignated by section 401(a)(2)) (20 U.S.C. 1103g) is 
amended to read as follows:
    ``(a) Authorizations.--
            ``(1) Part a.--There are authorized to be appropriated to 
        carry out part A of this title $175,000,000 for fiscal year 
        2005 and such sums as may be necessary for each of the 5 
        succeeding fiscal years.
            ``(2) Part b.--There are authorized to be appropriated to 
        carry out part B of this title $125,000,000 for fiscal year 
        2005 and such sums as may be necessary for each of the 5 
        succeeding fiscal years.''.
    (b) Definitions.--Section 502(a) of the Higher Education Act of 
1965 (20 U.S.C. 1101a(a)) is amended--
            (1) in paragraph (5)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (C) by striking subparagraph (C); and
            (2) by striking paragraph (7).
    (c) Reducing Regulatory Barriers for Hispanic-Serving 
Institutions.--Section 503(b) of the Higher Education Act of 1965 (20 
U.S.C. 1101b(a)) is amended by striking paragraph (7) and inserting the 
following:
            ``(7) Articulation agreements and student support programs 
        designed to facilitate the transfer from two-year to four-year 
        institutions.''.
    (d) Elimination of Wait-Out Period.--Subsection (a) of section 504 
of the Higher Education Act of 1965 (20 U.S.C. 1101c(a)) is amended to 
read as follows:
    ``(a) Award Period.--The Secretary may award a grant to a Hispanic-
serving institution under this title for 5 years.''.
    (e) Application Priority.--Section 521(d) of the Higher Education 
Act of 1965 (as redesignated by section 401(a)(2)) (20 U.S.C. 1103(d)) 
is amended by striking ``(from funds other than funds provided under 
this title)''.

         TITLE V--HISTORICALLY BLACK COLLEGES AND UNIVERSITIES

SEC. 501. CENTERS OF EXCELLENCE.

    Title II is amended by inserting after part D as added by section 
201 of this Act the following new part:

                    ``PART E--CENTERS OF EXCELLENCE

``SEC. 251. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are--
            ``(1) to help recruit and prepare teachers, including 
        minority teachers, to meet the national demand for a highly 
        qualified teacher in every classroom; and
            ``(2) to increase opportunities for Americans of all 
        educational, ethnic, class, and geographic backgrounds to 
        become highly qualified teachers.
    ``(b) Definitions.--As used in this part:
            ``(1) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) an institution of higher education that has a 
                teacher preparation program that meets the requirements 
                of section 203(b)(2) and that is--
                            ``(i) a part B institution (as defined in 
                        section 322);
                            ``(ii) a Hispanic-serving institution (as 
                        defined in section 502);
                            ``(iii) a Tribal College or University (as 
                        defined in section 316);
                            ``(iv) an Alaska Native-serving institution 
                        (as defined in section 317(b)); or
                            ``(v) a Native Hawaiian-serving institution 
                        (as defined in section 317(b));
                    ``(B) a consortium of institutions described in 
                subparagraph (A); or
                    ``(C) an institution described in subparagraph (A), 
                or a consortium described in subparagraph (B), in 
                partnership with any other institution of higher 
                education, but only if the center of excellence 
                established under section 252 is located at an 
                institution described in subparagraph (A).
            ``(2) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            ``(3) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6368).
            ``(4) Scientifically based research.--The term 
        `scientifically based research' has the meaning given such term 
        in section 9101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7801).

``SEC. 252. CENTERS OF EXCELLENCE.

    ``(a) Program Authorized.--From the amounts appropriated to carry 
out this part, the Secretary is authorized to award competitive grants 
to eligible institutions to establish centers of excellence.
    ``(b) Use of Funds.--Grants provided by the Secretary under this 
part shall be used to ensure that current and future teachers are 
highly qualified, by carrying out one or more of the following 
activities:
            ``(1) Implementing reforms within teacher preparation 
        programs to ensure that such programs are preparing teachers 
        who are highly qualified, are able to understand scientifically 
        based research, and are able to use advanced technology 
        effectively in the classroom, including use for instructional 
        techniques to improve student academic achievement, by--
                    ``(A) retraining faculty; and
                    ``(B) designing (or redesigning) teacher 
                preparation programs that--
                            ``(i) prepare teachers to close student 
                        achievement gaps, are based on rigorous 
                        academic content, scientifically based research 
                        (including scientifically based reading 
                        research), and challenging State student 
                        academic content standards; and
                            ``(ii) promote strong teaching skills.
            ``(2) Providing sustained and high-quality preservice 
        clinical experience, including the mentoring of prospective 
        teachers by exemplary teachers, substantially increasing 
        interaction between faculty at institutions of higher education 
        and new and experienced teachers, principals, and other 
        administrators at elementary schools or secondary schools, and 
        providing support, including preparation time, for such 
        interaction.
            ``(3) Developing and implementing initiatives to promote 
        retention of highly qualified teachers and principals, 
        including minority teachers and principals, including programs 
        that provide--
                    ``(A) teacher or principal mentoring from exemplary 
                teachers or principals; or
                    ``(B) induction and support for teachers and 
                principals during their first 3 years of employment as 
                teachers or principals, respectively.
            ``(4) Awarding scholarships based on financial need to help 
        students pay the costs of tuition, room, board, and other 
        expenses of completing a teacher preparation program.
            ``(5) Disseminating information on effective practices for 
        teacher preparation and successful teacher certification and 
        licensure assessment preparation strategies.
            ``(6) Activities authorized under sections 202, 203, and 
        204.
    ``(c) Application.--Any eligible institution desiring a grant under 
this section shall submit an application to the Secretary at such a 
time, in such a manner, and accompanied by such information the 
Secretary may require.
    ``(d) Minimum Grant Amount.--The minimum amount of each grant under 
this part shall be $1,500,000.
    ``(e) Limitation on Administrative Expenses.--An eligible 
institution that receives a grant under this part may not use more than 
2 percent of the grant funds for purposes of administering the grant.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out this part.

``SEC. 253. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$20,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

SEC. 502. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorizations of Appropriations.--Section 399(a) (20 U.S.C. 
1068h(a)(2)) is amended--
            (1) by striking paragraphs (1), (2), and (3) and inserting 
        the following:
            ``(1) Part a.--(A) There are authorized to be appropriated 
        to carry out part A (other than section 316 and 317)--
                    ``(i) $170,000,000 for fiscal year 2006; and
                    ``(ii) such sums as may be necessary for each of 
                the 5 succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 316--
                    ``(i) $45,000,000 for fiscal year 2006; and
                    ``(ii) such sums as may be necessary for each of 
                the 5 succeeding fiscal years.
            ``(C) There are authorized to be appropriated to carry out 
        section 317--
                    ``(i) $20,000,000 for fiscal year 2006; and
                    ``(ii) such sums as may be necessary for each of 
                the 5 succeeding fiscal years.
            ``(2) Part b.--(A) There are authorized to be appropriated 
        to carry out part B (other than section 326)--
                    ``(i) $270,000,000 for fiscal year 2006; and
                    ``(ii) such sums as may be necessary for each of 
                the 5 succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 326--
                    ``(i) $90,000,000 for fiscal year 2006; and
                    ``(ii) such sums as may be necessary for each of 
                the 5 succeeding fiscal years.
            ``(3) Part c.--There are authorized to be appropriated to 
        carry out part C--
                    ``(A) $30,000,000 for fiscal year 2006; and
                    ``(B) such sums as may be necessary for each of the 
                5 succeeding fiscal years.''; and
            (2) by striking paragraph (5) and inserting the following:
            ``(5) Part e.--There are authorized to be appropriated to 
        carry out part E--
                    ``(A) $40,000,000 for fiscal year 2006; and
                    ``(B) such sums as may be necessary for each of the 
                5 succeeding fiscal years.''.
    (b) Authorized Uses of Funds for Title III.--Section 323(a) (20 
U.S.C. 1062(a)) is amended--
            (1) by redesignating paragraph (12) as paragraph (13); and
            (2) by inserting after paragraph (11) the following new 
        paragraph:
            ``(12) Technical assistance services, including financial 
        management, enrollment management, strategic planning, 
        replication of best practices, and other needed services, 
        except that the amount expended under this paragraph shall not 
        exceed 2 percent of the institution's annual award under this 
        part.''.
                                 <all>