[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 609 Reported in House (RH)]







                                                 Union Calendar No. 128
109th CONGRESS
  1st Session
                                H. R. 609

                          [Report No. 109-231]

         To amend and extend the Higher Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 8, 2005

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

                           September 22, 2005

Additional sponsors: Mr. Fortuno, Mr. Bonilla, Mr. Gerlach, Mr. Kline, 
   Mr. Price of Georgia, Ms. Ros-Lehtinen, and Mr. Lewis of Kentucky

                           September 22, 2005

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 8, 2005]

_______________________________________________________________________

                                 A BILL


 
         To amend and extend the Higher Education Act of 1965.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``College Access and 
Opportunity Act of 2005''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Definition of institution of higher education.
        ``Sec. 101. Definition of institution of higher education.
        ``Sec. 102. Institutions outside the United States.
        ``Sec. 123. Restrictions on funds for for-profit schools.
Sec. 102. New borrower definition.
Sec. 103. Student speech and association rights.
Sec. 104. National Advisory Committee on Institutional Quality and 
                            Integrity.
Sec. 105. Alcohol and drug abuse prevention.
Sec. 106. Prior rights and obligations.
Sec. 107. Limitation on Certain Uses of Funds.
        ``Sec. 124. Limitation on Certain Uses of Funds.
Sec. 108. Consumer information and public accountability in higher 
                            education.
        ``Sec. 131. Consumer information and public accountability in 
                            higher education.
Sec. 109. Databases of student information.
        ``Sec. 132. Databases of student information prohibited.
Sec. 110. Performance-based organization.

                     TITLE II--TEACHER PREPARATION

Sec. 201.  Teacher quality enhancement grants.

      ``Part A--Teacher Quality Enhancement Grants for States and 
                              Partnerships

        ``Sec. 201. Purposes; definitions.
        ``Sec. 202. State grants.
        ``Sec. 203. Partnership grants.
        ``Sec. 204. Teacher recruitment grants.
        ``Sec. 205. Administrative provisions.
        ``Sec. 206. Accountability and evaluation.
        ``Sec. 207. Accountability for programs that prepare teachers.
        ``Sec. 208. State functions.
        ``Sec. 209. General provisions.
        ``Sec. 210. Authorization of appropriations.
Sec. 202. Preparing tomorrow's teachers to use technology.
Sec. 203. Centers of excellence.

                    ``Part C--Centers of Excellence

        ``Sec. 231. Purposes; definitions.
        ``Sec. 232. Centers of excellence.
        ``Sec. 233. Authorization of appropriations.
Sec. 204. Teacher incentive fund program.

                ``Part D--Teacher Incentive Fund Program

        ``Sec. 241. Purpose; definitions.
        ``Sec. 242. Teacher incentive fund grants.
        ``Sec. 243. Evaluations.
        ``Sec. 244. Authorization of appropriations.
Sec. 205. Transition.

                      TITLE III--INSTITUTIONAL AID

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

                      TITLE IV--STUDENT ASSISTANCE

                       Part A--Grants to Students

Sec. 401. Pell Grants.
        ``Sec. 401A. Pell Grants Plus: achievement grants for State 
                            scholars.
Sec. 402. TRIO programs.
Sec. 403. TRIO reform.
        ``Sec. 402G. Staff development activities.
        ``Sec. 402H. Evaluations.
Sec. 404. GEARUP.
Sec. 405. Federal Supplemental Educational Opportunity Grants.
Sec. 406. LEAP.
Sec. 407. HEP/CAMP program.
Sec. 408.``subpart 6--robert c. byrd honors scholarship program
        ``Sec. 419A. Robert C. Byrd mathematics and science honors 
                            scholarship program.
        ``Sec. 419B. Mathematics and science incentive program.
        ``Sec. 419C. Mathematics and science education coordinating 
                            council grants.
        ``Sec. 419D. Authorization of appropriations.
Sec. 409. Child care access.
Sec. 410. Learning anytime anywhere partnerships.

             Part B--Federal Family Education Loan Program

Sec. 421. Reauthorization of Federal Family Education Loan Program.
Sec. 422. Loan limits.
Sec. 423. Interest rates and special allowances.
Sec. 424. Additional loan terms and conditions.
Sec. 425. Consolidation loan changes.
Sec. 426. Deferment of student loans for military service.
Sec. 427. Loan forgiveness for service in areas of national need.
        ``Sec. 428K. Loan forgiveness for service in areas of national 
                            need.
Sec. 428. Unsubsidized Stafford loans.
Sec. 429. Elimination of termination dates from Taxpayer-Teacher 
                            Protection Act of 2004.
Sec. 430. Additional administrative provisions.
        ``Sec. 428I. Special insurance and reinsurance rules for 
                            exceptional performance.

                  Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Community service.
Sec. 443. Allocation of funds.
Sec. 444. Books and supplies.
Sec. 445. Job location and development.
Sec. 446. Work colleges.

                  Part D--Federal Direct Loan Program

Sec. 451. Reauthorization of the Direct Loan Program.

                  Part E--Federal Perkins Loan Program

Sec. 461. Reauthorization of program.
Sec. 462. Loan terms and conditions.
Sec. 463. Loan cancellation.
Sec. 464. Technical amendments.

                         Part F--Need Analysis

Sec. 471. Significantly simplifying the student aid application 
                            process.
Sec. 472. Additional need analysis amendments.

  Part G--General Provisions Relating to Student Financial Assistance

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

                       Part H--Program Integrity

Sec. 495. Accreditation.
Sec. 496. Report to congress on prevention of fraud and abuse in 
                            student financial aid programs.
        ``Sec. 499. Report to Congress on prevention of fraud and abuse 
                            in student financial aid programs.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitional changes.
Sec. 502. Assurance of enrollment of needy students.
Sec. 503. Additional amendments.
Sec. 504. Postbaccalaureate opportunities for Hispanic Americans.

   ``Part B--Promoting Postbaccalaureate Opportunities for Hispanic 
                               Americans

        ``Sec. 511. Purposes.
        ``Sec. 512. Program authority and eligibility.
        ``Sec. 513. Authorized activities.
        ``Sec. 514. Application and duration.
Sec. 505. Authorization of appropriations.

                     TITLE VI--TITLE VI AMENDMENTS

Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
        ``Sec. 621. Program for foreign service professionals.
Sec. 604. Evaluation, outreach, and dissemination.
        ``Sec. 632. Evaluation, outreach, and dissemination.
Sec. 605. Advisory Board.
        ``Sec. 633. International Higher Education Advisory Board.
Sec. 606. Recruiter access to students and student recruiting 
                            information; safety.
        ``Sec. 634. Recruiter access to students and student recruiting 
                            information.
        ``Sec. 635. Student safety.
Sec. 607. National study of foreign language heritage communities.
        ``Sec. 636. National study of foreign language heritage 
                            communities.

                    TITLE VII--TITLE VII AMENDMENTS

Sec. 701. Javits fellowship program.
Sec. 702. Graduate assistance in areas of national need.
Sec. 703. Thurgood Marshall legal educational opportunity program.
Sec. 704. Fund for the improvement of postsecondary education.
Sec. 705. Urban community service.
Sec. 706. Demonstration projects to ensure students with disabilities 
                            receive a quality higher education.

                    TITLE VIII--CLERICAL AMENDMENTS

Sec. 801. Clerical amendments.

              TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

               Part A--Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Authority.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Definitions.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Liaison for educational programs.
Sec. 908. Federal endowment programs for Gallaudet University and the 
                            National Technical Institute for the Deaf.
Sec. 909. Oversight and effect of agreements.
Sec. 910. Authorization of appropriations.
        ``Sec. 1.  Short title.

                   Part B--Additional Education Laws

Sec. 921. Cancellation of Student Loan Indebtedness For Survivors of 
                            Victims of the September 11, 2001, Attacks.
Sec. 922. Amendment to Higher Education Amendments of 1998.
Sec. 923. Tribally Controlled College or University Assistance Act of 
                            1978.
Sec. 924. Navajo Community College Act.
Sec. 925. Education Amendments of 1992.
Sec. 926. Study of student learning outcomes and public accountability.
Sec. 927. Study of minority graduation rates.
Sec. 928. Study of education-related indebtedness of medical school 
                            graduates.
Sec. 929. Study of adult learners.
Sec. 930.  Increase in college textbook prices.

SEC. 2. REFERENCES; EFFECTIVE DATE.

    (a) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
    (b) Effective Date.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect on the date of enactment 
of this Act.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

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

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

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

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

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

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

    ``(a) In General.--Notwithstanding any other provision of this Act 
authorizing the use of funds by an institution of higher education that 
receives funds under this Act, none of the funds made available under 
this Act to a for-profit institution of higher education may be used 
for--
            ``(1) construction, maintenance, renovation, repair, or 
        improvement of classrooms, libraries, laboratories, or other 
        facilities;
            ``(2) establishing, improving, or increasing an endowment 
        fund; or
            ``(3) establishing or improving an institutional 
        development office to strengthen or improve contributions from 
        alumni and the private sector.
    ``(b) Exception.--Subsection (a) shall not apply to funds received 
by the institution from the grant, loan, or work assistance that is 
awarded under title IV to the students attending such institution.
    ``(c) Ineligibility for Certain Programs.--Notwithstanding section 
101, a for-profit institution of higher education shall not be 
considered an eligible institution for the programs under titles III 
and V of this Act.''.
    (c) Conforming Amendments.--
            (1) Section 114(a) (20 U.S.C. 1011c(a)) is amended by 
        striking ``(as defined in section 102)''.
            (2) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (3) Subsection (d) of section 484 (20 U.S.C. 1091(d)) is 
        amended by striking the designation and heading of such 
        subsection and inserting the following:
    ``(d) Satisfaction of Secondary Education Standards.--''.
            (4) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by 
        striking ``102(a)(3)(A), 102(a)(3)(B)'' and inserting 
        ``101(b)(4)(A), 101(b)(4)(B)''.
            (5) Section 487(c)(1)(A)(iii) (20 U.S.C. 
        1094(c)(1)(A)(iii)) is amended by striking ``section 
        102(a)(1)(C)'' and inserting ``section 102''.
            (6) Section 487(d) (20 U.S.C. 1094(d)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (7) Subsections (j) and (k) of section 496 (20 U.S.C. 
        1099b(j), (k)) are each amended by striking ``section 102'' and 
        inserting ``section 101''.
            (8) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.
            (9) Section 498(i)(1) (20 U.S.C. 1099c(i)(1)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (10) Section 498(j)(1) (20 U.S.C. 1099c) is amended by 
        striking ``except that such branch shall not be required to 
        meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C) 
        prior to seeking such certification'' and inserting ``except 
        that such branch shall not be required to be in existence for 
        at least 2 years prior to seeking such certification''.
            (11) Section 498B(b) (20 U.S.C. 1099c-2(b)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.
    (d) Effect on Other Laws.--
            (1) Inclusion of for-profit institutions in definition.--
        The inclusion of proprietary and for-profit institutions within 
        the definition of the term ``institution of higher education''' 
        in section 101 of the Higher Education Act of 1965 (20 U.S.C. 
        1001) pursuant to the amendment made by subsection (a) of this 
        section shall not apply to any other provision of law (other 
        than the Higher Education Act of 1965) enacted before the date 
        of enactment of this Act that references section 101 of the 
        Higher Education Act of 1965 (or that term as so defined), 
        except as expressly provided by an amendment to, or other 
        revision of the application of, such law enacted after such 
        date of enactment.
            (2) Inclusion of for-profit institutions as title iii or v 
        eligible institution.--Any reference in any provision of law 
        other than the Higher Education Act of 1965 to institutions of 
        higher education that are eligible to participate in programs 
        under title III or V of such Act (20 U.S.C. 1051 et. seq., 1101 
        et seq.) shall not be treated, as a consequence of the 
        amendment to section 101 of the Higher Education Act of 1965 
        (20 U.S.C. 1001) by subsection (a) of this section, as 
        including a reference to a for-profit or proprietary 
        institution of higher education, except as expressly provided 
        by an amendment to, or other revision of the application of, 
        such law enacted after such date of enactment.

SEC. 102. NEW BORROWER DEFINITION.

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

SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS.

    Section 112 (20 U.S.C. 1011a) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Protection of Rights.--
            ``(1) It is the sense of Congress that no student attending 
        an institution of higher education on a full- or part-time 
        basis should, on the basis of participation in protected speech 
        or protected association, be excluded from participation in, be 
        denied the benefits of, or be subjected to discrimination or 
        official sanction under any education program, activity, or 
        division of the institution directly or indirectly receiving 
        financial assistance under this Act, whether or not such 
        program, activity, or division is sponsored or officially 
        sanctioned by the institution; and
            ``(2) It is the sense of Congress that--
                    ``(A) the diversity of institutions and educational 
                missions is one of the key strengths of American higher 
                education;
                    ``(B) individual colleges and universities have 
                different missions and each institution should design 
                its academic program in accordance with its educational 
                goals;
                    ``(C) within the context of its institutional 
                mission, a college should promote intellectual 
                pluralism and facilitate the free and open exchange of 
                ideas;
                    ``(D) students should not be intimidated, harassed, 
                discouraged from speaking out, discriminated against, 
                or subject to official sanction because of their 
                personal political, ideological, or religious beliefs; 
                and
                    ``(E) students should be treated equally and 
                fairly, including evaluation and grading, without 
                regard to or consideration of their personal political 
                views or ideological beliefs.
            ``(3) Nothing in paragraph (2) shall be construed to 
        modify, change, or infringe upon any constitutionally protected 
        religious liberty, freedom, expression, or association.''; and
            (2) in subsection (b)(1), by inserting after ``higher 
        education'' the following: ``, if the imposition of such 
        sanction is done objectively, fairly, and without regard to the 
        student's personal political, ideological, or religious 
        beliefs''.

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

    (a) Membership.--Section 114(b) (20 U.S.C. 1011c(b)) is amended by 
adding at the end the following new sentence: ``A member of the 
Committee may continue to serve after the expiration of a term until a 
successor has been appointed.''.
    (b) Extension.--Section 114(g) (20 U.S.C. 1011c(g)) is amended by 
striking ``2004'' and inserting ``2012''.

SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION.

    Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding fiscal years'' and inserting 
        ``5 succeeding fiscal years''.

SEC. 106. PRIOR RIGHTS AND OBLIGATIONS.

    Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking ``1999 
and for each of the 4'' each place it appears and inserting ``2006 and 
for each of the 5''.

SEC. 107. LIMITATION ON CERTAIN USES OF FUNDS.

     Part B of title I is further amended by adding after section 123 
(as added by section 101(b) of this Act) the following new section:

``SEC. 124. LIMITATION ON CERTAIN USES OF FUNDS.

    ``No funds made available to carry out this Act may be used--
            ``(1) for publicity or propaganda purposes not authorized 
        by the Congress before the date of enactment of the College 
        Access and Opportunity Act of 2005; or
            ``(2) unless authorized by law in effect on such date of 
        enactment, to produce any prepackaged news story intended for 
        broadcast or distribution unless such story includes a clear a 
        notification contained within the text or audio of such story 
        stating that the prepackaged news story was prepared or funded 
        by the Department of Education.''.

SEC. 108. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

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

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

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) provide students and families with an easy-to-use, 
        comprehensive web-based tool for researching and comparing 
        institutions of higher education;
            ``(2) increase the transparency of college cost, price, and 
        financial aid; and
            ``(3) raise public awareness of information available about 
        postsecondary education, particularly among low-income 
        families, non-traditional student populations, and first-
        generation college students.
    ``(b) College Opportunity On-Line (COOL) Website Re-Design 
Process.--In carrying out this section, the Secretary--
            ``(1) shall identify the data elements that are of greatest 
        importance to prospective students, enrolled students, and 
        their families, paying particular attention to low-income, non-
        traditional student populations, and first-generation college 
        students;
            ``(2) shall convene a group of individuals with expertise 
        in the collection and reporting of data related to institutions 
        of higher education, the measurement of institutional 
        compliance costs, consumer use of data related to institutions 
        of higher education, general consumer marketing, and college 
        intervention services to--
                    ``(A) determine the relevance of particular data 
                elements to prospective students, enrolled students, 
                and families;
                    ``(B) assess the cost-effectiveness of various ways 
                in which institutions of higher education might produce 
                the data desired by consumers;
                    ``(C) determine the general comparability of the 
                data across institutions of higher education;
                    ``(D) make recommendations regarding the inclusion 
                of specific data items and the most effective and least 
                burdensome methods to institutions of higher education 
                of collecting and reporting useful data; and
            ``(3) shall assure that the redesigned COOL website--
                    ``(A) uses, to the extent practicable, data 
                elements currently provided by institutions of higher 
                education to the Secretary;
                    ``(B) includes clear and uniform information 
                determined to be relevant to prospective students, 
                enrolled students, and families;
                    ``(C) provides comparable information, by assuring 
                that data is based on accepted criteria and common 
                definitions;
                    ``(D) includes a sorting function that permits 
                users to customize their search for and comparison of 
                institutions of higher education based on the 
                information identified through the process as 
                prescribed in paragraph (1) as being of greatest 
                relevance to choosing an institution of higher 
                education.
    ``(c) Data Collection.--
            ``(1) Data system.--The Secretary shall continue to 
        redesign the relevant parts of the Integrated Postsecondary 
        Education Data System to include additional data as required by 
        this section and to continue to improve the usefulness and 
        timeliness of data collected by such systems in order to inform 
        consumers about institutions of higher education.
            ``(2) College consumer profile.--The Secretary shall 
        publish, for each academic year and in accordance with standard 
        definitions developed by the Commissioner of Education 
        Statistics (including definitions developed under section 
        131(a)(3)(A) as in effect on the day before the date of 
        enactment of the College Access and Opportunity Act of 2005), 
        from at least all institutions of higher education 
        participating in programs under title IV the following 
        information:
                    ``(A) The tuition and fees charged for a first-
                time, full-time undergraduate student.
                    ``(B) The room and board charges for such a 
                student.
                    ``(C) The cost of attendance for a first-time, 
                full-time undergraduate student, consistent with the 
                provisions of section 472.
                    ``(D) The average amount of financial assistance 
                received by a first-time full-time undergraduate 
                student, including--
                            ``(i) each type of assistance or benefits 
                        described in 428(a)(2)(C)(ii);
                            ``(ii) institutional and other assistance; 
                        and
                            ``(iii) Federal loans under parts B, D, and 
                        E of title IV.
                    ``(E) The number of first-time, full-time students 
                receiving financial assistance described in each clause 
                of subparagraph (D).
                    ``(F) The average net price for first-time, full-
                time students receiving Federal, State, or 
                institutional grant or loan assistance.
                    ``(G) The institutional instructional expenditure 
                per full-time equivalent student.
                    ``(H) Student enrollment information, including 
                information on the number and percentage of full-time 
                and part-time students, the number and percentage of 
                resident and non-resident students.
                    ``(I) Faculty/student ratios.
                    ``(J) Faculty information, including the total 
                number of faculty and the percentage of faculty who are 
                full-time employees of the institution and the 
                percentage who are part-time.
                    ``(K) Completion and graduation rates, identifying 
                whether the completion or graduation rates are from a 
                2-year or 4-year program of instruction and, in the 
                case of a 2-year program of instruction, the percentage 
                of students who transfer to 4-year institutions prior 
                or subsequent to completion or graduation.
                    ``(L) A link to the institution of higher education 
                with information of interest to students including 
                mission, accreditation, student services (including 
                services for students with disabilities), transfer of 
                credit policies and, if appropriate, placement rates 
                and other measures of success in preparing students for 
                entry into or advancement in the workforce.
                    ``(M) Any additional information that the Secretary 
                may require.
    ``(d) Data Dissemination.--The Secretary shall make available, at a 
minimum, the data collected pursuant to this section, including an 
institution's college affordability 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 prices for typical 
full-time undergraduate students and the institution's rate of cost 
increase. The Secretary shall work with public and private entities to 
promote broad public awareness, particularly among middle and high 
school students and their families, of the information made available 
under this section, including by distribution to students who 
participate in or receive benefits from Federally funded education 
programs and other Federal programs determined by the Secretary.
    ``(e) College Affordability Index.--
            ``(1) In general.--The Secretary shall, on the basis of the 
        data submitted under subsection (a), calculate a college 
        affordability index for each institution of higher education 
        submitting such data and shall make the index available in 
        accordance with subsection (d) as soon as operationally 
        possible on the Department's college opportunity online Web 
        site. Such index shall be presented in a manner so that the 
        index for any institution is stated in a column or cell 
        immediately adjacent to a column or cell containing the total 
        tuition and fees of the institution.
            ``(2) Calculation of index.--The college affordability 
        index shall be equal to--
                    ``(A) the percentage increase in the tuition and 
                fees charged for a first-time, full-time, full-year 
                undergraduate student between the first of the 3 most 
                recent preceding academic years and the last of those 3 
                academic years; divided by
                    ``(B) the percentage increase in the Consumer Price 
                Index--All Urban Consumers (Current Series) from July 
                of the first of those 3 academic years to July of the 
                last of those 3 academic years.
    ``(f) Outcomes and Actions.--
            ``(1) Response from institution.--Effective on June 30, 
        2009, an institution that has a college affordability index 
        that exceeds 2.0 for any 3-year interval ending on or after 
        that date shall provide a report to the Secretary, in such a 
        form, at such time, and containing such information as the 
        Secretary may require. Such report shall include--
                    ``(A) an explanation of the factors contributing to 
                the increase in the institution's costs and in the 
                tuition and fees charged to students;
                    ``(B) a management plan stating the specific steps 
                the institution is and will be taking to reduce its 
                college affordability index;
                    ``(C) an action plan, including a schedule, by 
                which the institution will reduce increases in or 
                stabilize, such costs and tuition and fees; and
                    ``(D) if determinations of tuition and fee 
                increases are not within the exclusive control of the 
                institution, a description of the agency or 
                instrumentality of State government or other entity 
                that participates in such determinations and the 
                authority exercised by such agency, instrumentality, or 
                entity.
            ``(2) Information to the public.--Upon receipt of the 
        institution's report and management plan under paragraph (1), 
        the Secretary shall make the institution's report required 
        under paragraph (1) available to the public in accordance with 
        subsection (b).
            ``(3) Quality-efficiency task forces.--
                    ``(A) Required.--Each institution subject to 
                paragraph (1) that has a college affordability index 
                that is in the highest 25 percent of such indexes of 
                all institutions subject to paragraph (1) shall 
                establish a quality-efficiency task force to review the 
                operations of such institution.
                    ``(B) Membership.--Such task force shall include 
                administrators and business and civic leaders and may 
                include faculty, students, trustees, parents of 
                students, and alumni of such institution.
                    ``(C) Functions.--Such task force shall analyze 
                institutional operating costs in comparison with such 
                costs at other institutions within the class of 
                institutions. Such analysis should identify areas 
                where, in comparison with other institutions in such 
                class, the institution operates more expensively to 
                produce a similar result. Any identified areas should 
                then be targeted for in-depth analysis for cost 
                reduction opportunities.
                    ``(D) Report.--The results of the analysis by a 
                quality-efficiency task force under this paragraph 
                shall be included in the report to the Secretary under 
                paragraph (1).
            ``(4) Consequences for 2-year continuation of failure.--If 
        the Secretary determines that the institution has failed to 
        comply with the management plan and action plan submitted by 
        the institution under this subsection following the next 2 
        academic years that begin after the submission of such plans, 
        and has failed to reduce the college affordability index below 
        2.0 for such 2 academic years, the Secretary--
                    ``(A) shall make available to the public a detailed 
                report provided by the institution on all costs and 
                expenditures, and on all tuition and fees charged to 
                students, for such 2 academic years;
                    ``(B) shall place the institution on an 
                affordability alert status and shall make the 
                information regarding the institution's failure 
                available in accordance with subsection (d);
                    ``(C) shall notify the institution's accrediting 
                agency of the institution's failure; and
                    ``(D) may require the institution to submit to a 
                review and audit by the Inspector General of the 
                Department of Education to determine the cause of the 
                institution's failure.
            ``(5) Information to state agencies.--Any institution that 
        reports under paragraph (1)(C) that an agency or 
        instrumentality of State government or other entity 
        participates in the determinations of tuition and fee increases 
        shall, prior to submitting any information to the Secretary 
        under this subsection, submit such information to, and request 
        the comments and input of, such agency, instrumentality, or 
        entity. With respect to any such institution, the Secretary 
        shall provide a copy of any communication by the Secretary with 
        that institution to such agency, instrumentality, or entity.
            ``(6) Exemptions.--
                    ``(A) Relative price exemption.--The Secretary 
                shall, for any 3-year interval for which college 
                affordability indexes are computed under paragraph (1), 
                determine and publish the dollar amount that, for each 
                class of institution described in paragraph (7) 
                represents the maximum tuition and fees charged for a 
                full-time undergraduate student in the least costly 
                quartile of institutions within each such class during 
                the last year of such 3-year interval. An institution 
                that has a college affordability index computed under 
                paragraph (1) that exceeds 2.0 for any such 3-year 
                interval, but that, on average during such 3-year 
                interval, charges less than such maximum tuition and 
                fees shall not be subject to the actions required by 
                subparagraph (B) or (C) of paragraph (1), or any action 
                under paragraph (4), unless such institution, for a 
                subsequent 3-year interval, charges more than such 
                maximum tuition and fees.
                    ``(B) Dollar increase exemption.--An institution 
                that has a college affordability index computed under 
                paragraph (1) that exceeds 2.0 for any 3-year interval, 
                but that exceeds such 2.0 by a dollar amount that is 
                less than $500, shall not be subject to the actions 
                required by subparagraph (B) or (C) of paragraph (1), 
                or any action under paragraph (4), unless such 
                institution has a college affordability index for a 
                subsequent 3-year interval that exceeds 2.0 by more 
                than such dollar amount.
            ``(7) Classes of institutions.--For purposes of this 
        subsection, the classes of institutions shall be those sectors 
        used by the Integrated Postsecondary Education Data System, 
        based on whether the institution is public, nonprofit private, 
        or for-profit private, and whether the institution has a 4-
        year, 2-year, or less than 2-year program of instruction.
    ``(g) Fines.--In addition to actions authorized in section 487(c), 
the Secretary may impose a fine in an amount not to exceed $25,000 on 
an institution of higher education for failing to provide the 
information described in this section in a timely and accurate manner, 
or for failing to otherwise cooperate with the National Center for 
Education Statistics regarding efforts to obtain data on the cost and 
price of higher education under this section and pursuant to the 
program participation agreement entered into under section 487.
    ``(h) GAO Study and Report.--
            ``(1) GAO study.--The Comptroller General shall conduct a 
        study of the policies and procedures implemented by 
        institutions in increasing the affordability of postsecondary 
        education. Such study shall include information with respect 
        to--
                    ``(A) a list of those institutions that--
                            ``(i) have reduced their college 
                        affordability indexes; or
                            ``(ii) are, as determined under subsection 
                        (f)(6)(A), within the least costly quartile of 
                        institutions within each class described in 
                        subsection (f)(7);
                    ``(B) policies implemented to stem the increase in 
                tuition and fees and institutional costs;
                    ``(C) the extent to which room and board costs and 
                prices changed;
                    ``(D) the extent to which other services were 
                altered to affect tuition and fees;
                    ``(E) the extent to which the institution's 
                policies affected student body demographics and time to 
                completion;
                    ``(F) what, if any, operational factors played a 
                role in reducing tuition and fees;
                    ``(G) the extent to which academic quality was 
                affected, and how;
                    ``(H) the extent to which policies and practices 
                reducing costs and prices may be replicated from one 
                institution to another; and
                    ``(I) other information as necessary to determine 
                best practices in increasing the affordability of 
                postsecondary education.
            ``(2) Interim and final reports.--The Comptroller General 
        shall submit an interim and a final report regarding the 
        findings of the study required by paragraph (1) to the 
        appropriate authorizing committees of Congress. The interim 
        report shall be submitted not later than July 31, 2011, and the 
        final report shall be submitted not later than July 31, 2013.
    ``(i) Student Aid Recipient Survey.--
            ``(1) Survey required.--The Secretary shall conduct a 
        survey of student aid recipients under title IV on a regular 
        cycle and State-by-State basis, but not less than once every 4 
        years--
                    ``(A) to identify the population of students 
                receiving Federal student aid;
                    ``(B) to describe the income distribution and other 
                socioeconomic characteristics of federally aided 
                students;
                    ``(C) to describe the combinations of aid from 
                State, Federal, and private sources received by 
                students from all income groups;
                    ``(D) to describe the debt burden of educational 
                loan recipients and their capacity to repay their 
                education debts, and the impact of such debt burden on 
                career choices;
                    ``(E) to describe the role played by the price of 
                postsecondary education in the determination by 
                students of what institution to attend; and
                    ``(F) to describe how the increased costs of 
                textbooks and other instructional materials affects the 
                costs of postsecondary education to students.
            ``(2) Survey design.--The survey shall be representative of 
        full-time and part-time, undergraduate, graduate, and 
        professional and current and former students in all types of 
        institutions, and designed and administered in consultation 
        with the Congress and the postsecondary education community.
            ``(3) Dissemination.--The Secretary shall disseminate the 
        information resulting from the survey in both printed and 
        electronic form.
    ``(j) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.''.

SEC. 109. DATABASES OF STUDENT INFORMATION.

    Part C of title I is further amended by adding at the end the 
following new section:

``SEC. 132. DATABASES OF STUDENT INFORMATION PROHIBITED.

    ``(a) Prohibition.--Except as described in (b), nothing in this Act 
shall be construed to authorize the design, development, creation, 
implementation, or maintenance of a nationwide database of personally 
identifiable information on individuals receiving assistance, attending 
institutions receiving assistance, or otherwise involved in any studies 
or other collections of data under this Act, including a student unit 
record system, an education bar code system, or any other system that 
tracks individual students over time.
    ``(b) Exception.--The provisions of subsection (a) shall not affect 
the loan obligation enforcement activities described in section 485B of 
this Act.''.

SEC. 110. PERFORMANCE-BASED ORGANIZATION.

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

                     TITLE II--TEACHER PREPARATION

SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS.

    Part A of title II (20 U.S.C. 1021 et seq.) is amended to read as 
follows:

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                              PARTNERSHIPS

``SEC. 201. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are to--
            ``(1) improve student academic achievement;
            ``(2) improve the quality of the current and future 
        teaching force by improving the preparation of prospective 
        teachers and enhancing professional development activities;
            ``(3) hold institutions of higher education accountable for 
        preparing highly qualified teachers; and
            ``(4) recruit qualified individuals, including minorities 
        and individuals from other occupations, into the teaching 
        force.
    ``(b) Definitions.--In this part:
            ``(1) Arts and sciences.--The term `arts and sciences' 
        means--
                    ``(A) when referring to an organizational unit of 
                an institution of higher education, any academic unit 
                that offers one or more academic majors in disciplines 
                or content areas corresponding to the academic subject 
                matter areas in which teachers provide instruction; and
                    ``(B) when referring to a specific academic subject 
                matter area, the disciplines or content areas in which 
                academic majors are offered by the arts and science 
                organizational unit.
            ``(2) Exemplary teacher.--The term `exemplary teacher' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            ``(3) Highly qualified.--The term `highly qualified' when 
        used with respect to an individual means that the individual is 
        highly qualified as determined under section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801) 
        or section 602 of the Individuals with Disabilities Education 
        Act (20 U.S.C. 1401).
            ``(4) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i)(I) that serves not fewer than 10,000 
                children from families with incomes below the poverty 
                line; or
                    ``(II) for which not less than 25 percent of the 
                children served by the agency are from families with 
                incomes below the poverty line;
                    ``(ii) that is among those serving the highest 
                number or percentage of children from families with 
                incomes below the poverty line in the State, but this 
                clause applies only in a State that has no local 
                educational agency meeting the requirements of clause 
                (i); or
                    ``(iii) with a total of less than 600 students in 
                average daily attendance at the schools that are served 
                by the agency and all of whose schools are designated 
                with a school locale code of 7, as determined by the 
                Secretary; and
                    ``(B)(i) for which there is a high percentage of 
                teachers not teaching in the academic subjects or grade 
                levels that the teachers were trained to teach; or
                    ``(ii) for which there is a high percentage of 
                teachers with emergency, provisional, or temporary 
                certification or licensing.
            ``(5) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            ``(6) Professional development.--The term `professional 
        development' has the meaning given such term in section 9101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            ``(7) 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).
            ``(8) 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).
            ``(9) Teaching skills.--The term `teaching skills' means 
        skills that--
                    ``(A) are based on scientifically based research;
                    ``(B) enable teachers to effectively convey and 
                explain subject matter content;
                    ``(C) lead to increased student academic 
                achievement; and
                    ``(D) use strategies that--
                            ``(i) are specific to subject matter;
                            ``(ii) include ongoing assessment of 
                        student learning;
                            ``(iii) focus on identification and 
                        tailoring of academic instruction to students's 
                        specific learning needs; and
                            ``(iv) focus on classroom management.

``SEC. 202. STATE GRANTS.

    ``(a) In General.--From amounts made available under section 210(1) 
for a fiscal year, the Secretary is authorized to award grants under 
this section, on a competitive basis, to eligible States to enable the 
eligible States to carry out the activities described in subsection 
(d).
    ``(b) Eligible State.--
            ``(1) Definition.--In this part, the term `eligible State' 
        means--
                    ``(A) the Governor of a State; or
                    ``(B) 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.
            ``(2) Consultation.--The Governor or the individual, 
        entity, or agency designated under paragraph (1)(B) shall 
        consult with the Governor, State board of education, State 
        educational agency, State agency for higher education, or State 
        agency responsible for early childhood education and programs, 
        as appropriate, with respect to the activities assisted under 
        this section.
            ``(3) Construction.--Nothing in this subsection shall be 
        construed to negate or supersede the legal authority under 
        State law of any State agency, State entity, or State public 
        official over programs that are under the jurisdiction of the 
        agency, entity, or official.
    ``(c) Application.--To be eligible to receive a grant under this 
section, an eligible State shall submit an application to the Secretary 
that--
            ``(1) meets the requirement of this section;
            ``(2) demonstrates that the State is in full compliance 
        with sections 207 and 208;
            ``(3) includes a description of how the eligible State 
        intends to use funds provided under this section;
            ``(4) includes measurable objectives for the use of the 
        funds provided under the grant;
            ``(5) demonstrates the State has submitted and is actively 
        implementing a plan that meets the requirements of sections 
        1111(h)(1)(C)(viii) and 1119 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6311(h)(1)(C)(viii) and 6319); 
        and
            ``(6) contains such other information and assurances as the 
        Secretary may require.
    ``(d) Uses of Funds.--An eligible State that receives a grant under 
this section shall use the grant funds to reform teacher preparation 
requirements, to coordinate with State activities under section 2113(c) 
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6613(c)), and to ensure that current and future teachers are highly 
qualified, by carrying out one or more of the following activities:
            ``(1) Reforms.--Ensuring that all teacher preparation 
        programs in the State are preparing teachers who are highly 
        qualified, are able to understand scientifically based research 
        and its applicability, and are able to use advanced technology 
        effectively in the classroom, including use for instructional 
        techniques to improve student academic achievement, by 
        assisting such programs--
                    ``(A) to retrain faculty; and
                    ``(B) to design (or redesign) teacher preparation 
                programs so they--
                            ``(i) 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) Certification or licensure requirements.--Reforming 
        teacher certification (including recertification) or licensing 
        requirements to ensure that--
                    ``(A) teachers have the subject matter knowledge 
                and teaching skills in the academic subjects that the 
                teachers teach that are necessary to help students meet 
                challenging State student academic achievement 
                standards; and
                    ``(B) such requirements are aligned with 
                challenging State academic content standards.
            ``(3) Alternatives to traditional teacher preparation and 
        state certification.--Providing prospective teachers with 
        alternative routes to State certification and traditional 
        preparation to become highly qualified teachers through--
                    ``(A) innovative approaches that reduce unnecessary 
                barriers to State certification while producing highly 
                qualified teachers, which may include articulation 
                agreements between institutions of higher education;
                    ``(B) programs that provide support to teachers 
                during their initial years in the profession; and
                    ``(C) alternative routes to State certification of 
                teachers for qualified individuals, including mid-
                career professionals from other occupations, former 
                military personnel, and recent college graduates with 
                records of academic distinction.
            ``(4) Innovative programs.--Planning and implementing 
        innovative programs to enhance the ability of institutions of 
        higher education to prepare highly qualified teachers, such as 
        charter colleges of education or university and local 
        educational agency partnership schools, that--
                    ``(A) permit flexibility in meeting State 
                requirements as long as graduates, during their initial 
                years in the profession, increase student academic 
                achievement;
                    ``(B) provide long-term data gathered from 
                teachers' performance over multiple years in the 
                classroom on the ability to increase student academic 
                achievement;
                    ``(C) ensure high-quality preparation of teachers 
                from underrepresented groups; and
                    ``(D) create performance measures that can be used 
                to document the effectiveness of innovative methods for 
                preparing highly qualified teachers.
            ``(5) Merit pay.--Developing, or assisting local 
        educational agencies in developing--
                    ``(A) merit-based performance systems that reward 
                teachers who increase student academic achievement; and
                    ``(B) strategies that provide differential and 
                bonus pay in high-need local educational agencies to 
                retain--
                            ``(i) principals;
                            ``(ii) highly qualified teachers who teach 
                        in high-need academic subjects, such as 
                        reading, mathematics, and science;
                            ``(iii) highly qualified teachers who teach 
                        in schools identified for school improvement 
                        under section 1116(b) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        6316(b));
                            ``(iv) special education teachers;
                            ``(v) teachers specializing in teaching 
                        limited English proficient children; and
                            ``(vi) highly qualified teachers in urban 
                        and rural schools or districts.
            ``(6) Teacher advancement.--Developing, or assisting local 
        educational agencies in developing, teacher advancement and 
        retention initiatives that promote professional growth and 
        emphasize multiple career paths (such as paths to becoming a 
        highly qualified mentor teacher or exemplary teacher) and pay 
        differentiation.
            ``(7) Teacher removal.--Developing and implementing 
        effective mechanisms to ensure that local educational agencies 
        and schools are able to remove expeditiously incompetent or 
        unqualified teachers consistent with procedures to ensure due 
        process for the teachers.
            ``(8) Technical assistance.--Providing technical assistance 
        to low-performing teacher preparation programs within 
        institutions of higher education identified under section 
        208(a).
            ``(9) Teacher effectiveness.--Developing--
                    ``(A) systems to measure the effectiveness of 
                teacher preparation programs and professional 
                development programs; and
                    ``(B) strategies to document gains in student 
                academic achievement or increases in teacher mastery of 
                the academic subjects the teachers teach as a result of 
                such programs.
            ``(10) Teacher recruitment and retention.--Undertaking 
        activities that--
                    ``(A) develop and implement effective mechanisms to 
                ensure that local educational agencies and schools are 
                able effectively to recruit and retain highly qualified 
                teachers; or
                    ``(B) are described in section 204(d).
            ``(11) Early childhood educator.--Developing strategies--
                    ``(A) to improve the qualifications of preschool 
                teachers, which may include State certification for 
                such teachers;
                    ``(B) to improve and expand preschool teacher 
                preparation programs; and
                    ``(C) to reduce unnecessary burdens to the 
                attainment of a bachelor's degree in early childhood 
                education and increase the number of bilingual early 
                childhood educators, which may include developing 
                articulation agreements between institutions of higher 
                education.
            ``(12) Gifted and talented students.--Incorporating the 
        learning needs of gifted and talented students into the 
        activities described in paragraph (1), (2), or (3) in order to 
        ensure that new teachers possess the basic knowledge and skills 
        necessary to meet the educational needs of gifted and talented 
        students.
            ``(13) New-teacher mentoring on the needs of gifted and 
        talented students.-- Establishing or expanding new-teacher 
        mentoring and assessment programs (including induction and 
        evaluation programs) that are a part of a licensure process 
        which is designed to demonstrate that new teachers possess 
        basic knowledge of the classroom indicators of giftedness, are 
        able to identify student learning differences among gifted 
        students, and are able to provide instruction to accommodate 
        such differences.
            ``(14) Special education, math, and science faculty.--
        Supporting the development of new special education, math, and 
        science faculty positions in institutions of higher education 
        dedicated to the preparation of highly qualified special 
        education, math, and science teachers (as defined by section 
        9101 of the Elementary and Secondary Education Act or section 
        602 of the Individuals with Disabilities Education Act), with 
        matching funds from institutions of higher education and a 
        commitment to continue new faculty positions when Federal 
        funding ends.
            ``(15) Subject area evaluation.--Assessing the performance 
        of teacher preparation programs within institutions of higher 
        education in the State using an assessment which provides 
        comparisons across such schools in the State based upon 
        indicators including teacher candidate knowledge in subject 
        areas in which such candidate has been prepared to teach. Such 
        information shall be made publicly available and widely 
        disseminated.
    ``(e) Evaluation.--
            ``(1) Evaluation system.--An eligible State that receives a 
        grant under this section shall develop and utilize a system to 
        evaluate annually the effectiveness of teacher preparation 
        programs and professional development activities within the 
        State in producing gains in--
                    ``(A) the teacher's annual contribution to 
                improving student academic achievement, as measured by 
                State academic assessments required under section 
                1111(b)(3) of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6311(b)(3)); and
                    ``(B) teacher mastery of the academic subjects they 
                teach, as measured by pre- and post-participation tests 
                of teacher knowledge, as appropriate.
            ``(2) Use of evaluation system.--Such evaluation system 
        shall be used by the State to evaluate--
                    ``(A) activities carried out using funds provided 
                under this section; and
                    ``(B) the quality of its teacher education 
                programs.
            ``(3) Public reporting.--The State shall make the 
        information described in paragraph (1) widely available through 
        public means, such as posting on the Internet, distribution to 
        the media, and distribution through public agencies.

``SEC. 203. PARTNERSHIP GRANTS.

    ``(a) Grants.--From amounts made available under section 210(2) for 
a fiscal year, the Secretary is authorized to award grants under this 
section, on a competitive basis, to eligible partnerships to enable the 
eligible partnerships to carry out the activities described in 
subsections (d) and (e).
    ``(b) Definitions.--
            ``(1) Eligible partnerships.--In this part, the term 
        `eligible partnership' means an entity that--
                    ``(A) shall include--
                            ``(i) a partner institution;
                            ``(ii) a school of arts and sciences;
                            ``(iii) a high-need local educational 
                        agency; and
                            ``(iv) a public or private educational 
                        organization; and
                    ``(B) may include a Governor, State educational 
                agency, the State board of education, the State agency 
                for higher education, an institution of higher 
                education not described in subparagraph (A), a public 
                charter school, a public or private elementary school 
                or secondary school, a public or private educational 
                organization, a business, a science-, mathematics-, or 
                technology-oriented entity, a faith-based or community 
                organization, a prekindergarten program, a teacher 
                organization, an education service agency, a consortia 
                of local educational agencies, or a nonprofit 
                telecommunications entity.
            ``(2) Partner institution.--In this section, the term 
        `partner institution' means an institution of higher education, 
        the teacher training program of which demonstrates that--
                    ``(A) graduates from the teacher training program 
                exhibit strong performance on State-determined 
                qualifying assessments for new teachers through--
                            ``(i) demonstrating that the graduates of 
                        the program who intend to enter the field of 
                        teaching have passed all of the applicable 
                        State qualification assessments for new 
                        teachers, which shall include an assessment of 
                        each prospective teacher's subject matter 
                        knowledge in the content area or areas in which 
                        the teacher intends to teach; or
                            ``(ii) being ranked among the highest-
                        performing teacher preparation programs in the 
                        State as determined by the State--
                                    ``(I) using criteria consistent 
                                with the requirements for the State 
                                report card under section 207(a); and
                                    ``(II) using the State report card 
                                on teacher preparation required under 
                                section 207(a); or
                    ``(B) the teacher training program requires all the 
                students of the program to participate in intensive 
                clinical experience, to meet high academic standards, 
                and--
                            ``(i) in the case of secondary school 
                        candidates, to successfully complete an 
                        academic major in the subject area in which the 
                        candidate intends to teach or to demonstrate 
                        competence through a high level of performance 
                        in relevant content areas; and
                            ``(ii) in the case of elementary school 
                        candidates, to successfully complete an 
                        academic major in the arts and sciences or to 
                        demonstrate competence through a high level of 
                        performance in core academic subject areas.
    ``(c) Application.--Each eligible partnership desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall--
            ``(1) contain a needs assessment of all the partners with 
        respect to teaching and learning and a description of how the 
        partnership will coordinate with other teacher training or 
        professional development programs, and how the activities of 
        the partnership will be consistent with State, local, and other 
        education reform activities that promote student academic 
        achievement;
            ``(2) contain a resource assessment that describes the 
        resources available to the partnership, the intended use of the 
        grant funds, including a description of how the grant funds 
        will be used in accordance with subsection (f), and the 
        commitment of the resources of the partnership to the 
        activities assisted under this part, including financial 
        support, faculty participation, time commitments, and 
        continuation of the activities when the grant ends;
            ``(3) contain a description of--
                    ``(A) how the partnership will meet the purposes of 
                this part;
                    ``(B) how the partnership will carry out the 
                activities required under subsection (d) and any 
                permissible activities under subsection (e);
                    ``(C) the partnership's evaluation plan pursuant to 
                section 206(b);
                    ``(D) how faculty of the teacher preparation 
                program at the partner institution will serve, over the 
                term of the grant, with highly qualified teachers in 
                the classrooms of the high-need local educational 
                agency included in the partnership;
                    ``(E) how the partnership will ensure that 
                teachers, principals, and superintendents in private 
                elementary and secondary schools located in the 
                geographic areas served by an eligible partnership 
                under this section will participate equitably in 
                accordance with section 9501 of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7881);
                    ``(F) how the partnership will design and implement 
                a clinical program component that includes close 
                supervision of student teachers by faculty of the 
                teacher preparation program at the partner institution 
                and mentor teachers;
                    ``(G) how the partnership will design and implement 
                an induction program to support all new teachers 
                through the first 3 years of teaching that includes 
                mentors who are trained and compensated by the 
                partnership for their work with new teachers; and
                    ``(H) how the partnership will collect, analyze, 
                and use data on the retention of all teachers in 
                schools located in the geographic areas served by the 
                partnership to evaluate the effectiveness of its 
                teacher support system; and
            ``(4) contain a certification from the high-need local 
        educational agency included in the partnership that it has 
        reviewed the application and determined that the grant proposed 
        will comply with subsection (f).
    ``(d) Required Uses of Funds.--An eligible partnership that 
receives a grant under this section shall use the grant funds to reform 
teacher preparation requirements, to coordinate with State activities 
under section 2113(c) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6613(c)), and to ensure that current and future 
teachers are highly qualified, by carrying out one or more of the 
following activities:
            ``(1) Reforms.--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 its applicability, 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 so they--
                            ``(i) 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) Clinical experience and interaction.--Providing 
        sustained and high-quality preservice and in-service 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 
        for teachers, including preparation time and release time, for 
        such interaction.
            ``(3) Professional development.--Creating opportunities for 
        enhanced and ongoing professional development that improves the 
        academic content knowledge of teachers in the subject areas in 
        which the teachers are certified to teach or in which the 
        teachers are working toward certification to teach, and that 
        promotes strong teaching skills.
            ``(4) Teacher preparation.--Developing, or assisting local 
        educational agencies in developing, professional development 
        activities that--
                    ``(A) provide training in how to teach and address 
                the needs of students with different learning styles, 
                particularly students with disabilities, limited 
                English proficient students, gifted and talented 
                students, and students with special learning needs; and
                    ``(B) provide training in methods of--
                            ``(i) improving student behavior in the 
                        classroom; and
                            ``(ii) identifying early and appropriate 
                        interventions to help students described in 
                        subparagraph (A) learn.
    ``(e) Allowable Uses of Funds.--An eligible partnership that 
receives a grant under this section may use such funds to carry out the 
following activities:
            ``(1) Alternatives to traditional teacher preparation and 
        state certification.--Providing prospective teachers with 
        alternative routes to State certification and traditional 
        preparation to become highly qualified teachers through--
                    ``(A) innovative approaches that reduce unnecessary 
                barriers to teacher preparation producing highly 
                qualified teachers, which may include articulation 
                agreements between institutions of higher education;
                    ``(B) programs that provide support during a 
                teacher's initial years in the profession; and
                    ``(C) alternative routes to State certification of 
                teachers for qualified individuals, including mid-
                career professionals from other occupations, former 
                military personnel, and recent college graduates with 
                records of academic distinction.
            ``(2) Dissemination and coordination.--Broadly 
        disseminating information on effective practices used by the 
        partnership, and coordinating with the activities of the 
        Governor, State board of education, State higher education 
        agency, and State educational agency, as appropriate.
            ``(3) Managerial and leadership skills.--Developing and 
        implementing professional development programs for principals 
        and superintendents that enable them to be effective school 
        leaders and prepare all students to meet challenging State 
        academic content and student academic achievement standards.
            ``(4) Teacher recruitment.--Activities--
                    ``(A) to encourage students to become highly 
                qualified teachers, such as extracurricular enrichment 
                activities; and
                    ``(B) activities described in section 204(d).
            ``(5) Clinical experience in science, mathematics, and 
        technology.--Creating opportunities for clinical experience and 
        training, by participation in the business, research, and work 
        environments with professionals, in areas relating to science, 
        mathematics, and technology for teachers and prospective 
        teachers, including opportunities for use of laboratory 
        equipment, in order for the teacher to return to the classroom 
        for at least 2 years and provide instruction that will raise 
        student academic achievement.
            ``(6) Coordination with community colleges.--Coordinating 
        with community colleges to implement teacher preparation 
        programs, including through distance learning or articulation 
        agreements, for the purposes of allowing prospective teachers--
                    ``(A) to attain a bachelor's degree and State 
                certification or licensure; and
                    ``(B) to become highly qualified teachers.
            ``(7) Teacher mentoring.--Establishing or implementing a 
        teacher mentoring program that--
                    ``(A) includes minimum qualifications for mentors;
                    ``(B) provides training and stipends for mentors;
                    ``(C) provides mentoring programs for teachers in 
                their first 3 years of teaching;
                    ``(D) provides regular and ongoing opportunities 
                for mentors and mentees to observe each other's 
                teaching methods in classroom settings during the 
                school day;
                    ``(E) establishes an evaluation and accountability 
                plan for activities conducted under this paragraph that 
                includes rigorous objectives to measure the impact of 
                such activities; and
                    ``(F) provides for a report to the Secretary on an 
                annual basis regarding the partnership's progress in 
                meeting the objectives described in subparagraph (E).
            ``(8) Computer software for multilingual education.--
        Training teachers to use computer software for multilingual 
        education to address the needs of limited English proficient 
        students.
            ``(9) Gifted and talented students.--Increasing the 
        knowledge and skills of preservice teachers participating in 
        activities under subsection (d) in the educational and related 
        needs of gifted and talented students by, among other 
        strategies, infusing teacher coursework with units on the 
        characteristics of high-ability learners, using assessments to 
        identify preexisting knowledge and skills among students, and 
        developing teaching strategies that are driven by the learner's 
        progress.
            ``(10) Reducing the shortage of highly qualified special 
        education, math, and science teachers.--Increasing the number 
        of highly qualified special education, math, and science 
        teachers (as defined by section 9101 of the Elementary and 
        Secondary Education Act or section 602 of the Individuals with 
        Disabilities Education Act) through such activities as 
        recruitment, scholarships for tuition, and new teacher 
        mentoring.
    ``(f) Special Rule.--At least 50 percent of the funds made 
available to an eligible partnership under this section shall be used 
directly to benefit the high-need local educational agency included in 
the partnership. Any entity described in subsection (b)(1)(A) may be 
the fiscal agent under this section.
    ``(g) Construction.--Nothing in this section shall be construed to 
prohibit an eligible partnership from using grant funds to coordinate 
with the activities of more than one Governor, State board of 
education, State educational agency, local educational agency, or State 
agency for higher education.
    ``(h) Supplement, not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
the purposes of this section.

``SEC. 204. TEACHER RECRUITMENT GRANTS.

    ``(a) Program Authorized.--From amounts made available under 
section 210(3) for a fiscal year, the Secretary is authorized to award 
grants, on a competitive basis, to eligible applicants to enable the 
eligible applicants to carry out activities described in subsection 
(d).
    ``(b) Eligible Applicant Defined.--In this part, the term `eligible 
applicant' means--
            ``(1) an eligible State described in section 202(b); or
            ``(2) an eligible partnership described in section 203(b).
    ``(c) Application.--Any eligible applicant desiring to receive a 
grant under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information as the 
Secretary may require, including--
            ``(1) a description of the assessment that the eligible 
        applicant, and the other entities with whom the eligible 
        applicant will carry out the grant activities, have undertaken 
        to determine the most critical needs of the participating high-
        need local educational agencies;
            ``(2) a description of the activities the eligible 
        applicant will carry out with the grant, including the extent 
        to which the applicant will use funds to recruit minority 
        students to become highly qualified teachers; and
            ``(3) a description of the eligible applicant's plan for 
        continuing the activities carried out with the grant, once 
        Federal funding ceases.
    ``(d) Uses of Funds.--Each eligible applicant receiving a grant 
under this section shall use the grant funds--
            ``(1)(A) to award scholarships to help students, such as 
        individuals who have been accepted for their first year, or who 
        are enrolled in their first or second year, of a program of 
        undergraduate education at an institution of higher education, 
        pay the costs of tuition, room, board, and other expenses of 
        completing a teacher preparation program;
            ``(B) to provide support services, if needed to enable 
        scholarship recipients--
                    ``(i) to complete postsecondary education programs; 
                or
                    ``(ii) to transition from a career outside of the 
                field of education into a teaching career; and
            ``(C) for followup services provided to former scholarship 
        recipients during the recipients first 3 years of teaching; or
            ``(2) to develop and implement effective mechanisms to 
        ensure that high-need local educational agencies and schools 
        are able effectively to recruit highly qualified teachers.
    ``(e) Additional Discretionary Uses of Funds.--In addition to the 
uses described in subsection (d), each eligible applicant receiving a 
grant under this section may use the grant funds--
            ``(1) to develop and implement effective mechanisms to 
        recruit into the teaching profession employees from--
                    ``(A) high-demand industries, including technology 
                industries; and
                    ``(B) the fields of science, mathematics, and 
                engineering;
            ``(2) to conduct outreach and coordinate with inner city 
        and rural secondary schools to encourage students to pursue 
        teaching as a career;
            ``(3) to develop and implement dual degree programs that 
        enable students at institutions of higher education to earn two 
        undergraduate degrees concurrently, one of such degrees being 
        in education and the other in the subject matter of the 
        student's choosing; and
            ``(4) to recruit high achieving students, bilingual 
        students, and other qualified candidates into early childhood 
        education programs.
    ``(f) Service Requirements.--
            ``(1) In general.--The Secretary shall establish such 
        requirements as the Secretary determines necessary to ensure 
        that recipients of scholarships under this section who complete 
        teacher education programs--
                    ``(A) subsequently teach in a high-need local 
                educational agency for a period of time equivalent to--
                            ``(i) one year; increased by
                            ``(ii) the period for which the recipient 
                        received scholarship assistance; or
                    ``(B) repay the amount of the scholarship.
            ``(2) Use of repayments.--The Secretary shall use any such 
        repayments to carry out additional activities under this 
        section.
    ``(g) Priority.--The Secretary shall give priority under this 
section to eligible applicants who provide an assurance that they will 
recruit a high percentage of minority students to become highly 
qualified teachers.

``SEC. 205. ADMINISTRATIVE PROVISIONS.

    ``(a) Duration; One-Time Awards; Payments.--
            ``(1) Duration.--
                    ``(A) Eligible states and eligible applicants.--
                Grants awarded to eligible States and eligible 
                applicants under this part shall be awarded for a 
                period not to exceed 3 years.
                    ``(B) Eligible partnerships.--Grants awarded to 
                eligible partnerships under this part shall be awarded 
                for a period of 5 years.
            ``(2) One-time award.--An eligible partnership may receive 
        a grant under each of sections 203 and 204, as amended by the 
        College Access and Opportunity Act of 2005, only once.
            ``(3) Payments.--The Secretary shall make annual payments 
        of grant funds awarded under this part.
    ``(b) Peer Review.--
            ``(1) Panel.--The Secretary shall provide the applications 
        submitted under this part to a peer review panel for 
        evaluation. With respect to each application, the peer review 
        panel shall initially recommend the application for funding or 
        for disapproval.
            ``(2) Priority.--In recommending applications to the 
        Secretary for funding under this part, the panel shall--
                    ``(A) with respect to grants under section 202, 
                give priority to eligible States that--
                            ``(i) have initiatives to reform State 
                        teacher certification requirements that are 
                        based on rigorous academic content, 
                        scientifically based research, including 
                        scientifically based reading research, and 
                        challenging State student academic content 
                        standards;
                            ``(ii) have innovative reforms to hold 
                        institutions of higher education with teacher 
                        preparation programs accountable for preparing 
                        teachers who are highly qualified and have 
                        strong teaching skills; or
                            ``(iii) have innovative efforts aimed at 
                        reducing the shortage of highly qualified 
                        teachers in high poverty urban and rural areas; 
                        and
                    ``(B) with respect to grants under section 203--
                            ``(i) give priority to applications from 
                        broad-based eligible partnerships that involve 
                        businesses and community organizations; and
                            ``(ii) take into consideration--
                                    ``(I) providing an equitable 
                                geographic distribution of the grants 
                                throughout the United States; and
                                    ``(II) the potential of the 
                                proposed activities for creating 
                                improvement and positive change.
            ``(3) Secretarial selection.--The Secretary shall 
        determine, based on the peer review process, which application 
        shall receive funding and the amounts of the grants. In 
        determining grant amounts, the Secretary shall take into 
        account the total amount of funds available for all grants 
        under this part and the types of activities proposed to be 
        carried out.
    ``(c) Matching Requirements.--
            ``(1) State grants.--Each eligible State receiving a grant 
        under section 202 or 204 shall provide, from non-Federal 
        sources, an amount equal to 50 percent of the amount of the 
        grant (in cash or in kind) to carry out the activities 
        supported by the grant.
            ``(2) Partnership grants.--Each eligible partnership 
        receiving a grant under section 203 or 204 shall provide, from 
        non-Federal sources (in cash or in kind), an amount equal to 25 
        percent of the grant for the first year of the grant, 35 
        percent of the grant for the second year of the grant, and 50 
        percent of the grant for each succeeding year of the grant.
    ``(d) Limitation on Administrative Expenses.--An eligible State or 
eligible partnership that receives a grant under this part may not use 
more than 2 percent of the grant funds for purposes of administering 
the grant.

``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 and the authorizing committees. 
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) and section 602 of the 
        Individuals with Disabilities Act (20 U.S.C. 1401).
            ``(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, 
        decisionmaking, and parental involvement 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 authorizing 
committees. 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 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 certification and 
        licensure assessments, and any other certification and 
        licensure requirements, used by the State.
            ``(2) The standards and criteria that prospective teachers 
        must meet in order to attain initial teacher certification or 
        licensure and to be certified or licensed to teach particular 
        subjects or in particular grades within the State.
            ``(3) A description 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 preparation programs 
        in the State, including indicators of teacher candidate skills, 
        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 and students in 
        supervised practice teaching.
    ``(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 (8) of subsection (a). Such report shall identify which 
        eligible States received a grant under this part, and the 
        States in which eligible partnerships receiving grants are 
        located. Such report shall be 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 one 
                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:
                    ``(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.
                    ``(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.

    ``(a) Methods.--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.
    ``(b) Special Rule.--For each State in which there are no State 
certification or licensure assessments, or for States that do not set 
minimum performance levels on those assessments--
            ``(1) the Secretary shall, to the extent practicable, 
        collect data comparable to the data required under this part 
        from States, local educational agencies, institutions of higher 
        education, or other entities that administer such assessments 
        to teachers or prospective teachers; and
            ``(2) notwithstanding any other provision of this part, the 
        Secretary shall use such data to carry out requirements of this 
        part related to assessments or pass rates.
    ``(c) Limitations.--
            ``(1) Federal control prohibited.--Nothing in this part 
        shall be construed to permit, allow, encourage, or authorize 
        any Federal control over any aspect of any private, religious, 
        or home school, whether or not a home school is treated as a 
        private school or home school under State law. This section 
        shall not be construed to prohibit private, religious, or home 
        schools from participation in programs or services under this 
        part.
            ``(2) No change in state control encouraged or required.--
        Nothing in this part shall be construed to encourage or require 
        any change in a State's treatment of any private, religious, or 
        home school, whether or not a home school is treated as a 
        private school or home school under State law.
            ``(3) National system of teacher certification 
        prohibited.--Nothing in this part shall be construed to permit, 
        allow, encourage, or authorize the Secretary to establish or 
        support any national system of teacher certification.

``SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$300,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 5 succeeding fiscal years, of which--
            ``(1) 45 percent shall be available for each fiscal year to 
        award grants under section 202;
            ``(2) 45 percent shall be available for each fiscal year to 
        award grants under section 203; and
            ``(3) 10 percent shall be available for each fiscal year to 
        award grants under section 204.''.

SEC. 202. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.

    (a) Eligibility.--Section 222(a)(3)(D) (20 U.S.C. 1042(a)(3)(D)) is 
amended by inserting ``nonprofit telecommunications entity,'' after 
``community-based organization,''.
    (b) Permissible Uses of Funds.--Section 223(b)(1)(E) of the Higher 
Education Act of 1965 (20 U.S.C. 1043(b)(1)(E)) is amended to read as 
follows:
                    ``(E) to use technology to collect, manage, and 
                analyze data to improve teaching, learning, and 
                decisionmaking for the purpose of increasing student 
                academic achievement.''.
    (c) Authorization of Appropriations.--Section 224 (20 U.S.C. 1044) 
is amended by striking ``each of fiscal years 2002 and 2003.'' and 
inserting ``fiscal year 2006 and each of the 5 succeeding fiscal 
years.''.

SEC. 203. CENTERS OF EXCELLENCE.

    Title II (20 U.S.C. 1021 et seq.) is amended by adding at the end 
the following:

                    ``PART C--CENTERS OF EXCELLENCE

``SEC. 231. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are--
            ``(1) to help recruit and prepare teachers, including 
        minority teachers, to meet the national demand for a highly 
        qualified teacher in every classroom; and
            ``(2) to increase opportunities for Americans of all 
        educational, ethnic, class, and geographic backgrounds to 
        become highly qualified teachers.
    ``(b) Definitions.--As used in this part:
            ``(1) Eligible institution.--The term `eligible 
        institution' means--
                    ``(A) an institution of higher education that has a 
                teacher preparation program that meets the requirements 
                of section 203(b)(2) and that is--
                            ``(i) a part B institution (as defined in 
                        section 322);
                            ``(ii) a Hispanic-serving institution (as 
                        defined in section 502);
                            ``(iii) a Tribal College or University (as 
                        defined in section 316);
                            ``(iv) an Alaska Native-serving institution 
                        (as defined in section 317(b)); or
                            ``(v) a Native Hawaiian-serving institution 
                        (as defined in section 317(b));
                    ``(B) a consortium of institutions described in 
                subparagraph (A); or
                    ``(C) an institution described in subparagraph (A), 
                or a consortium described in subparagraph (B), in 
                partnership with any other institution of higher 
                education, but only if the center of excellence 
                established under section 232 is located at an 
                institution described in subparagraph (A).
            ``(2) Highly qualified.--The term `highly qualified' when 
        used with respect to an individual means that the individual is 
        highly qualified as determined under section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801) 
        or section 602 of the Individuals with Disabilities Education 
        Act (20 U.S.C. 1401).
            ``(3) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6368).
            ``(4) Scientifically based research.--The term 
        `scientifically based research' has the meaning given such term 
        in section 9101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7801).

``SEC. 232. CENTERS OF EXCELLENCE.

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

``SEC. 233. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$10,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

SEC. 204. TEACHER INCENTIVE FUND PROGRAM.

    Title II (20 U.S.C. 1021 et seq.), as amended by section 203 of 
this Act, is further amended by adding at the end the following:

                ``PART D--TEACHER INCENTIVE FUND PROGRAM

``SEC. 241. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--The purpose of this part is to assist States, local 
educational agencies, and non-profit or for-profit organizations to 
develop and implement, or expand, innovative compensation systems to 
provide financial rewards for teachers and principals who raise student 
academic achievement and close the achievement gap, especially in the 
highest-need local educational agencies.
    ``(b) Definitions.--For purposes of this part:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a local educational agency, including a 
                charter school that is a local educational agency;
                    ``(B) a State educational agency, or other State 
                agency designated by the chief executive of the State; 
                or
                    ``(C) a partnership of--
                            ``(i) one or more agencies described in 
                        subparagraph (A) or (B), or both; and
                            ``(ii) at least one non-profit or for-
                        profit organization.
            ``(2) High-need local educational agency.--The term `high-
        need local educational agency' has the meaning given that term 
        in section 201.

``SEC. 242. TEACHER INCENTIVE FUND GRANTS.

    ``(a) Program Authorized.--
            ``(1) In general.--From the amounts appropriated to carry 
        out this part, the Secretary is authorized to award competitive 
        grants of up to 5 years in length to eligible entities to 
        develop and implement, or expand, a comprehensive performance-
        based compensation system for teachers and principals for one 
        or more local educational agencies.
            ``(2) Comprehensive performance-based compensation 
        systems.--A comprehensive performance-based compensation system 
        developed and implemented, or expanded with funds under this 
        part--
                    ``(A) shall differentiate levels of compensation 
                primarily on the basis of increases in student academic 
                achievement; and
                    ``(B) may--
                            ``(i) differentiate levels of compensation 
                        on the basis of high-quality teachers' and 
                        principals' employment and success in hard-to-
                        staff schools or high-need subject areas; and
                            ``(ii) recognize teachers' and principals' 
                        skills and knowledge as demonstrated through--
                                    ``(I) successful fulfillment of 
                                additional responsibilities or job 
                                functions; and
                                    ``(II) evidence of high achievement 
                                and mastery of content knowledge and 
                                teaching skills.
    ``(b) Use of Funds.--A grantee shall use grant funds provided under 
this part only to design and implement, or expand, in collaboration 
with teachers, principals, other school administrators, and members of 
the public, a compensation system consistent with the requirements of 
this part. Authorized activities under this part may include the 
following:
            ``(1) Developing appraisal systems that reflect clear and 
        fair measures of student academic achievement.
            ``(2) Conducting outreach within the local educational 
        agency (or agencies) or the State to gain input on how to 
        construct the appraisal system and to develop support for it.
            ``(3) Paying, as part of a comprehensive performance-based 
        compensation system, bonuses and increased salaries to teachers 
        and principals who raise student academic achievement, so long 
        as the grantee uses an increasing share of non-Federal funds to 
        pay these monetary rewards each year of the grant.
            ``(4) Paying, as part of a comprehensive performance-based 
        compensation system, additional bonuses to teachers who both 
        raise student academic achievement and either teach in high-
        poverty schools or teach subjects that are difficult to staff, 
        or both, so long as the grantee uses an increasing share of 
        non-Federal funds to pay these monetary rewards each year of 
        the grant.
            ``(5) Paying, as part of a comprehensive performance-based 
        compensation system, additional bonuses to principals who both 
        raise student academic achievement and serve in high-poverty 
        schools, so long as the grantee uses an increasing share of 
        non-Federal funds to pay these monetary rewards each year of 
        the grant.
    ``(c) Applications.--To be eligible to receive a grant under this 
part, an eligible entity shall submit an application that includes--
            ``(1) a description of the local educational agency or 
        local educational agencies to be served by the project, 
        including such demographic information as the Secretary may 
        request;
            ``(2) information on student academic achievement and the 
        quality of the teachers and principals in the local educational 
        agency or agencies to be served by the project;
            ``(3) a description of the performance-based teacher and 
        principal compensation system that the applicant proposes to 
        develop and implement or expand;
            ``(4) a description of how the applicant will use grant 
        funds under this part in each year of the grant;
            ``(5) an explanation of how the applicant will meet the 
        requirement in subsection (b)(3) and how the grantee will 
        continue its performance-based compensation system after the 
        grant ends;
            ``(6) a description of the support and commitment from 
        teachers, the community or local educational agency or agencies 
        for the development and implementation, or expansion, of a 
        performance-based teacher and principal compensation system;
            ``(7) a description of how teacher, principal and student 
        performance will be measured and the baseline measurement 
        units; and
            ``(8) a description, if applicable, of how the applicant 
        will define the term `high-quality' for the purposes of 
        subsection (a)(2)(B)(i), through the use of measurable 
        indicators, such as effectiveness in raising student academic 
        achievement, or demonstrated mastery of subject matter 
        knowledge.
    ``(d) Priority.--The Secretary shall give priority to applications 
for projects that would establish comprehensive performance-based 
compensation systems in high-need local educational agencies.

``SEC. 243. EVALUATIONS.

    ``The Secretary shall conduct an independent evaluation of the 
program under this part and may use up to 1 percent of the funds made 
available under this part or $1,000,000, whichever is less, for any 
fiscal year for the cost of the evaluation.

``SEC. 244. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$100,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

SEC. 205. TRANSITION.

    The Secretary of Education shall take such actions as the Secretary 
determines to be appropriate to provide for the orderly implementation 
of this title.

                      TITLE III--INSTITUTIONAL AID

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

    (a) Eligible Institutions.--Subsection (b) of section 316 (20 
U.S.C. 1059c(b)) is amended to read as follows:
    ``(b) Definitions.--
            ``(1) Eligible institutions.--For purposes of this section, 
        Tribal Colleges and Universities are the following:
                    ``(A) any of the following institutions that 
                qualify for funding under the Tribally Controlled 
                College or University Assistance Act of 1978 or is 
                listed in Equity in Educational Land Grant Status Act 
                of 1994 (7 U.S.C. 301 note): Bay Mills Community 
                College; Blackfeet Community College; Cankdeska Cikana 
                Community College; Chief Dull Knife College; College of 
                Menominee Nation; Crownpoint Institute of Technology; 
                Dine College; D-Q University; Fond du Lac Tribal and 
                Community College; Fort Belknap College; Fort Berthold 
                Community College; Fort Peck Community College; Haskell 
                Indian Nations University; Institute of American Indian 
                and Alaska Native Culture and Arts Development; Lac 
                Courte Oreilles Ojibwa Community College; Leech Lake 
                Tribal College; Little Big Horn College; Little Priest 
                Tribal College; Nebraska Indian Community College; 
                Northwest Indian College; Oglala Lakota College; 
                Saginaw Chippewa Tribal College; Salish Kootenai 
                College; Si Tanka University--Eagle Butte Campus; Sinte 
                Gleska University; Sisseton Wahpeton Community College; 
                Sitting Bull College; Southwestern Indian Polytechnic 
                Institute; Stone Child College; Tohono O'Odham 
                Community College; Turtle Mountain Community College; 
                United Tribes Technical College; and White Earth Tribal 
                and Community College; and
                    ``(B) any other institution that meets the 
                definition of tribally controlled college or university 
                in section 2 of the Tribally Controlled College or 
                University Assistance Act of 1978, and meets all other 
                requirements of this section.
            ``(2) Indian.--The term `Indian' has the meaning given the 
        term in section 2 of the Tribally Controlled College or 
        University Assistance Act of 1978.''.
    (b) Distance Learning.--Subsection (c)(2) of such section is 
amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(B) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services, and the acquisition of real property adjacent 
                to the campus of the institution on which to construct 
                such facilities;'';
            (2) in subparagraph (C), by inserting before the semicolon 
        at the end the following: ``, or advanced degrees in tribal 
        governance or tribal public policy'';
            (3) in subparagraph (D), by inserting before the semicolon 
        at the end the following: ``, in tribal governance, or tribal 
        public policy'';
            (4) by striking ``and'' at the end of subparagraph (K);
            (5) by redesignating subparagraph (L) as subparagraph (M); 
        and
            (6) by inserting after subparagraph (K) the following new 
        subparagraph:
                    ``(L) developing or improving facilities for 
                Internet use or other distance learning academic 
                instruction capabilities; and''.
    (c) Application and Allotment.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Application and Allotment.--
            ``(1) Institutional eligibility.--To be eligible to receive 
        assistance under this section, a Tribal College or University 
        shall be an eligible institution under section 312(b).
            ``(2) Application.--Any Tribal College or University 
        desiring to receive assistance under this section shall submit 
        an application to the Secretary at such time, and in such 
        manner, as the Secretary may reasonably require.
            ``(3) Allotments to institutions.--
                    ``(A) Allotment: pell grant basis.--From the amount 
                appropriated to carry out this section for any fiscal 
                year, the Secretary shall allot to each eligible 
                institution a sum which bears the same ratio to one-
                half that amount as the number of Pell Grant recipients 
                in attendance at such institution at the end of the 
                award year preceding the beginning of that fiscal year 
                bears to the total number of Pell Grant recipients at 
                all eligible institutions.
                    ``(B) Allotment: degree and certificate basis.--
                From the amount appropriated to carry out this section 
                for any fiscal year, the Secretary shall allot to each 
                eligible institution a sum which bears the same ratio 
                to one-half that amount as the number of degrees or 
                certificates awarded by such institution during the 
                preceding academic year bears to the total number of 
                degrees or certificates at all eligible institutions.
                    ``(C) Minimum grant.--Notwithstanding subparagraphs 
                (A) and (B), the amount allotted to each institution 
                under this section shall not be less than $400,000.
            ``(4) Special rules.--
                    ``(A) Concurrent funding.--For the purposes of this 
                part, no Tribal College or University that is eligible 
                for and receives funds under this section shall 
                concurrently receive funds under other provisions of 
                this part or part B.
                    ``(B) Exemption.--Section 313(d) shall not apply to 
                institutions that are eligible to receive funds under 
                this section.''.

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

    (a) Distance Learning.--Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) 
is amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(B) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services, and the acquisition of real property adjacent 
                to the campus of the institution on which to construct 
                such facilities;'';
            (2) in subparagraph (C), by inserting before the semicolon 
        at the end the following: ``, or advanced degrees in tribal 
        governance or tribal public policy'';
            (3) in subparagraph (D), by inserting before the semicolon 
        at the end the following: ``, in tribal governance, or tribal 
        public policy'';
            (4) by striking ``and'' at the end of subparagraph (G);
            (5) by striking the period at the end of subparagraph (H) 
        and inserting a semicolon; and
            (6) by inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) development or improvement of facilities for 
                Internet use or other distance learning academic 
                instruction capabilities; and''.
    (b) Endowment Funds.--Section 317(c) is further amended by adding 
at the end the following new paragraph:
            ``(3) Endowment funds.--
                    ``(A) In general.--An Alaska Native or Native 
                Hawaiian-serving institution may use not more than 20 
                percent of the grant funds provided under this section 
                to establish or increase an endowment fund at the 
                institution.
                    ``(B) Matching requirement.--In order to be 
                eligible to use grant funds in accordance with 
                subparagraph (A), the institution shall provide to the 
                endowment fund from non-Federal funds an amount equal 
                to the Federal funds used in accordance with 
                subparagraph (A), for the establishment or increase of 
                the endowment fund.
                    ``(C) Applicability of other provisions.--The 
                provisions of part C regarding the establishment or 
                increase of an endowment fund, that the Secretary 
                determines are not inconsistent with this paragraph, 
                shall apply to funds used under subparagraph (A).''.
    (c) Application Process.--Section 317(d)(2) is amended by striking 
``Such application shall include--'' and all that follows through ``may 
require.''.

SEC. 303. GRANTS TO PART B INSTITUTIONS.

    (a) Use of Funds.--
            (1) Facilities and equipment.--
                    (A) Undergraduate institutions.--Paragraph (2) of 
                section 323(a) (20 U.S.C. 1062(a)) is amended to read 
                as follows:
            ``(2) Construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities.''.
                    (B) Graduate and professional schools.--Paragraph 
                (2) of section 326(c) is amended to read as follows:
            ``(2) construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities;''.
            (2) Outreach and collaboration.--Paragraph (11) of section 
        323(a) is amended to read as follows:
            ``(11) Establishing community outreach programs and 
        collaborative partnerships between part B institutions and 
        local elementary or secondary schools. Such partnerships may 
        include mentoring, tutoring, or other instructional 
        opportunities that will boost student academic achievement and 
        assist elementary and secondary school students in developing 
        the academic skills and the interest to pursue postsecondary 
        education.''.
    (b) Technical Assistance.--Section 323 (20 U.S.C. 1062) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Technical Assistance.--
            ``(1) In general.--An institution may not use more than 2 
        percent of the grant funds provided under this part to secure 
        technical assistance services.
            ``(2) Technical assistance services.--Technical assistance 
        services may include assistance with enrollment management, 
        financial management, and strategic planning.
            ``(3) Report.--The institution shall report to the 
        Secretary on an annual basis, in such form as the Secretary 
        requires, on the use of funds under this subsection.''.
    (c) Distance Learning.--Section 323(a)(2) (20 U.S.C. 1062(a)(2)) 
(as amended by subsection (a)(1)(A)) is further amended by inserting 
``development or improvement of facilities for Internet use or other 
distance learning academic instruction capabilities and'' after 
``including''.
    (d) Minimum Grants.--Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is 
amended by inserting before the period at the end the following: ``, 
except that, if the amount appropriated to carry out this part for any 
fiscal year exceeds the amount required to provide to each institution 
an amount equal to the total amount received by such institution under 
subsections (a), (b), and (c) for the preceding fiscal year, then the 
amount of such excess appropriation shall first be applied to increase 
the minimum allotment under this subsection to $750,000''.
    (e) Eligible Graduate or Professional Schools.--
            (1) General authority.--Section 326(a)(1) (20 U.S.C. 
        1063b(a)(1)) is amended--
                    (A) by inserting ``(A)'' after ``subsection (e) 
                that'';
                    (B) by inserting before the period at the end the 
                following: ``, (B) is accredited by a nationally 
                recognized accrediting agency or association determined 
                by the Secretary to be a reliable authority as to the 
                quality of training offered, and (C) according to such 
                an agency or association, is in good standing''.
            (2) Eligible institutions.--Section 326(e)(1) (20 U.S.C. 
        1063b(e)(1)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (Q);
                    (B) by striking the period at the end of 
                subparagraph (R) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(S) Alabama State University qualified graduate 
                program;
                    ``(T) Prairie View A & M University qualified 
                graduate program;
                    ``(U) Coppin State University qualified graduate 
                program; and
                    ``(V) Delaware State University qualified graduate 
                program.''.
            (3) Conforming amendment.--Section 326(e)(3) (20 U.S.C. 
        1063b(e)(3)) is amended--
                    (A) by striking ``1998'' and inserting ``2005''; 
                and
                    (B) by striking ``(Q) and (R)'' and inserting 
                ``(S), (T), (U), and (V)''.
    (f) Professional or Graduate Institutions.--Section 326(f) (20 
U.S.C. 1063b(f)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``$26,600,000'' and inserting 
                ``$54,500,000''; and
                    (B) by striking ``(P)'' and inserting ``(R)'';
            (2) in paragraph (2)--
                    (A) by striking ``$26,600,000, but not in excess of 
                $28,600,000'' and inserting ``$54,500,000, but not in 
                excess of $58,500,000''; and
                    (B) by striking ``subparagraphs (Q) and (R)'' and 
                inserting ``subparagraphs (S), (T), (U), and (V)''; and
            (3) in paragraph (3)--
                    (A) by striking ``$28,600,000'' and inserting 
                ``$58,500,000''; and
                    (B) by striking ``(R)'' and inserting ``(V)''.
    (g) Hold Harmless.--Section 326(g) (20 U.S.C. 1063b(g)) is amended 
by striking ``1998'' each place it appears and inserting ``2005''.

SEC. 304. TECHNICAL AMENDMENTS.

    (a) Amendments.--Title III is further amended--
            (1) in section 311(c) (20 U.S.C. 1057(c))--
                    (A) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (2) in section 312(b)(1)(A) (20 U.S.C. 1058(b)(1)(A)), by 
        striking ``subsection (c)'' and inserting ``subsection (d)'';
            (3) in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by 
        inserting ``which is'' before ``located'';
            (4) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by 
        redesignating subparagraphs (E) and (F) as subparagraphs (F) 
        and (G), respectively, and by inserting after subparagraph (D) 
        the following new subparagraph:
                    ``(E) which provides a program that is not less 
                than a 2-year educational program that is acceptable 
                for full credit toward a bachelor's degree;'';
            (5) in section 316(c)(2) (20 U.S.C. 1059c(c)(2))--
                    (A) by redesignating subparagraphs (G) through (M) 
                (as redesignated by section 301(b)(2) of this Act) as 
                subparagraphs (H) through (N), respectively;
                    (B) by inserting after subparagraph (F) the 
                following:
                    ``(G) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents;''; and
                    (C) in subparagraph (N), as redesignated by 
                subparagraph (A), by striking ``subparagraphs (A) 
                through (K)'' and inserting ``subparagraphs (A) through 
                (M)'';
            (6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2)), by 
        inserting after subparagraph (I) (as added by section 302(a)(6) 
        of this Act) the following:
                    ``(J) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents.'';
            (7) in section 323(a) (20 U.S.C. 1062(a))--
                    (A) by striking ``section 360(a)(2)'' and inserting 
                ``section 399(a)(2)'';
                    (B) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (C) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by 
        striking ``section 360(a)(2)(A)'' and inserting ``section 
        399(a)(2)(A)'';
            (9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the 
        matter preceding subparagraph (A), by inserting a colon after 
        ``the following'';
            (10) in section 327(b) (20 U.S.C. 1063c(b)), by striking 
        ``initial'';
            (11) in section 342(5)(C) (20 U.S.C. 1066a(5)(C))--
                    (A) by inserting a comma after ``equipment'' the 
                first place it appears; and
                    (B) by striking ``technology,,'' and inserting 
                ``technology,'';
            (12) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
        after the subsection designation the following: ``Sale of 
        Qualified Bonds.--'';
            (13) in section 351(a) (20 U.S.C. 1067a(a)), by striking 
        ``of 1979'';
            (14) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
        striking ``subparagraph (E)'' and inserting ``subparagraph 
        (D)''; and
            (15) in section 396 (20 U.S.C. 1068e), by striking 
        ``section 360'' and inserting ``section 399''.
    (b) Repeal.--Section 1024 (20 U.S.C. 1135b-3), as transferred by 
section 301(a)(5) of the Higher Education Amendments of 1998 (Public 
Law 105-244; 112 Stat. 1636), is repealed.

SEC. 305. TITLE III AUTHORIZATIONS.

    Section 399(a) (20 U.S.C. 1068h(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2006'';
            (2) by striking ``4 succeeding fiscal years'' each place it 
        appears and inserting ``5 succeeding fiscal years'';
            (3) in paragraph (1)--
                    (A) by striking ``$10,000,000'' in subparagraph (B) 
                and inserting ``$23,800,000''; and
                    (B) by striking ``$5,000,000'' in subparagraph (C) 
                and inserting ``$11,900,000'';
            (4) in paragraph (2)--
                    (A) by striking ``$135,000,000'' in subparagraph 
                (A) and inserting ``$241,000,000''; and
                    (B) by striking ``$35,000,000'' in subparagraph (B) 
                and inserting ``$59,000,000''; and
            (5) in paragraph (4), by striking ``$110,000'' and 
        inserting ``$212,000''.

                      TITLE IV--STUDENT ASSISTANCE

                       PART A--GRANTS TO STUDENTS

SEC. 401. PELL GRANTS.

    (a) Extension of Authority.--Section 401(a) (20 U.S.C. 1070a(a)) is 
amended by striking ``2004'' and inserting ``2012''.
    (b) Direct Payment.--Section 401(a) (20 U.S.C. 1070a(a)) is further 
amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (c) Maximum Pell Grant Increase.-- Paragraph (2)(A) of section 
401(b) 20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
    ``(2)(A) The amount of the Federal Pell Grant for a student 
eligible under this part shall be $6,000 for academic years 2006-2007 
through 2012-2013, less an amount equal to the amount determined to be 
the expected family contribution with respect to that student for that 
year.''.
    (d) Tuition Sensitivity.--Section 401(b) is further amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) through (8) as 
        paragraphs (3) through (7), respectively.
    (e) Multiple Grants.--Paragraph (5) of section 401(b) (as 
redesignated by subsection (d)(2)) is amended to read as follows:
            ``(5) Year-round pell grants.--
                    ``(A) In general.--The Secretary shall, for 
                students enrolled full time in a baccalaureate or 
                associate's degree program of study at an eligible 
                institution, award such students two Pell grants during 
                a single award year to permit such students to 
                accelerate progress toward their degree objectives by 
                enrolling in academic programs for 12 months rather 
                than 9 months.
                    ``(B) Limitation.--The Secretary shall limit the 
                awarding of additional Pell grants under this paragraph 
                in a single award year to students attending--
                            ``(i) baccalaureate degree granting 
                        institutions that have a graduation rate as 
                        reported by the Integrated Postsecondary 
                        Education Data System for the 4 preceding 
                        academic years of at least 30 percent; or
                            ``(ii) two-year institutions that have a 
                        graduation rate as reported by the Integrated 
                        Postsecondary Education Data Systems, in at 
                        least one of the last 3 years for which data is 
                        available, that is above the average for the 
                        applicable year for the institution's type and 
                        control.
                    ``(C) Evaluation.--The Secretary shall conduct an 
                evaluation of the program under this paragraph and 
                submit to the Congress an evaluation report no later 
                than October 1, 2011.
                    ``(D) Regulations required.--The Secretary shall 
                promulgate regulations implementing this paragraph.''.
    (f) Ineligibility Based on Involuntary Civil Commitment for Sexual 
Offenses.--Paragraph (7) of section 401(b) (as redesignated by 
subsection (d)(2)) is amended by inserting before the period the 
following: ``or who is subject to an involuntary civil commitment upon 
completion of a period of incarceration for a sexual offense (as 
determined under regulations of the Secretary)''.
    (g) Pell Grant Eligibility Duration.--Section 401(c) (20 U.S.C. 
1070a(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The period'' and inserting in 
                lieu thereof ``Subject to paragraph (5), the period''; 
                and
                    (B) by striking the period at the end thereof and 
                inserting ``but shall be subject to the limitation 
                described in paragraph (5).''; and
            (2) by adding at the end the following new paragraph:
    ``(5) The period during which a student may receive Federal Pell 
Grants shall not exceed the equivalent of 18 semesters or 27 quarters 
in duration (as determined by the Secretary by regulation), without 
regard to whether the student is enrolled on a full-time basis during 
any portion of that period, and including any period of time for which 
the student received Federal Pell Grants prior to the date of enactment 
of the College Access and Opportunity Act of 2005.''.
    (h) Eligibility Period.--Section 401(c)(2) (20 U.S.C. 1070a(c)(2)) 
is amended by inserting ``, for not more than one academic year,'' 
after ``which are determined by the institution'' in the first 
sentence.
    (i) Pell Grants Plus: Achievement Grants for State Scholars 
Program.--
            (1) Amendment.--Subpart 1 of part A of title IV is amended 
        by inserting after section 401 (20 U.S.C. 1070a) the following 
        new section:

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

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

SEC. 402. TRIO PROGRAMS.

    (a) Duration of Grants.--
            (1) Amendment.--Section 402A(b)(2) (20 U.S.C. 1070a-
        11(b)(2)) is amended to read as follows:
            ``(2) Duration.--Grants or contracts awarded under this 
        chapter shall be awarded for a period of 5 years, except that--
                    ``(A) grants under section 402G shall be awarded 
                for a period of 2 years; and
                    ``(B) grants under section 402H shall be awarded 
                for a period determined by the Secretary.''.
            (2) Transition to synchronous grant periods.--
        Notwithstanding section 402A(b)(2) of the Higher Education Act 
        of 1965 (as in effect both prior to and after the amendment 
        made by paragraph (1) of this subsection), the Secretary of 
        Education may continue an award made before the date of 
        enactment of this Act under section 402B, 402C, 402D, 402E, or 
        402F of such Act as necessary to permit all the awards made 
        under such a section to expire at the end of the same fiscal 
        year, and thereafter to expire at the end of 5 years as 
        provided in the amendment made by paragraph (1) of this 
        subsection.
    (b) Minimum Grants.--Section 402A(b)(3) (20 U.S.C. 1070a-11(b)(3)) 
is amended to read as follows:
            ``(3) Minimum grants.--Unless the institution or agency 
        requests a smaller amount, individual grants for programs 
        authorized under this chapter shall be no less than $200,000, 
        except that individual grants for programs authorized under 
        section 402G shall be no less than $170,000.''.
    (c) Prior Experience; Novice Applicants.--Section 402A(c)(2) (20 
U.S.C. 1070a-11(c)(2)) is amended--
            (1) by striking ``In making grants'' and inserting ``(A) 
        Subject to subparagraph (B), in making grants''; and
            (2) by adding at the end the following new subparagraph:
            ``(B) From the amount available under subsection (h) for a 
        program under this chapter (other than a program under section 
        402G or 402H) for any fiscal year in which the Secretary 
        conducts a competition for the award of grants or contracts 
        under such program, the Secretary shall reserve 10 percent of 
        such available amount for purposes of funding applications from 
        novice applicants. If the Secretary determines that there are 
        an insufficient number of qualified novice applicants to 
        utilize the amount so reserved, the Secretary shall restore the 
        unutilized remainder of the amount reserved for use by 
        applicants qualifying under subparagraph (A).''.
    (d) Application Status.--Section 402A(c) (20 U.S.C. 1070a-11(c)) is 
amended by striking paragraph (7).
    (e) Documentation of Status.--Section 402A(e) (20 U.S.C. 1070a-
11(e)) is amended by striking ``(g)(2)'' each place it appears in 
paragraphs (1) and (2) and inserting ``(i)(4)''.
    (f) Homeless and Unaccompanied Youth.--Section 402A(e) is further 
amended by adding at the end the following new paragraph:
    ``(3) Notwithstanding this subsection and subsection (i)(4), 
individuals who are homeless or unaccompanied youth as defined in 
section 725 of the McKinney-Vento Homeless Assistance Act shall be 
eligible to participate in programs under sections 402B, 402C, 402D, 
and 402F of this chapter.''.
    (g) Authorization of Appropriations.--Section 402A(f) (20 U.S.C. 
1070a-11(f)) is amended by striking ``$700,000,000 for fiscal year 
1999, and such sums as may be necessary for each of the 4 succeeding 
fiscal years'' and inserting ``$836,500,000 for fiscal year 2006 and 
such sums as may be necessary for each of the 5 succeeding fiscal 
years''.
    (h) Definition.--Section 402A(g) (20 U.S.C. 1070a-11(g)) is 
amended--
            (1) in paragraph (3), by striking ``by reason of such 
        individual's age'';
            (2) by redesignating paragraphs (1) through (4) as 
        paragraphs (3) through (6), respectively; and
            (3) by inserting before paragraph (3), as redesignated, the 
        following:
            ``(1) Different campus.--The term `different campus' means 
        an institutional site that--
                    ``(A) is geographically apart from the main campus 
                of the institution;
                    ``(B) is permanent in nature; and
                    ``(C) offers courses in educational programs 
                leading to a degree, certificate, or other recognized 
                educational credential.
            ``(2) Different population.--The term `different 
        population' means a group of individuals, with respect to whom 
        an entity seeks to serve through an application for funding 
        under this chapter, that--
                    ``(A) is separate and distinct from any other 
                population that the entity seeks to serve through an 
                application for funding under this chapter; or
                    ``(B) while sharing some of the same needs as 
                another population that the entity seeks to serve 
                through an application for funding under this chapter, 
                has distinct needs for specialized services.''.
    (i) Education and Counseling Services.--Chapter 1 of subpart 2 of 
part A of title IV is further amended--
            (1) in section 402B(b) (20 U.S.C. 1070a-12(b))--
                    (A) by redesignating paragraphs (3) through (10) as 
                paragraphs (4) through (11), respectively;
                    (B) by inserting after paragraph (2) the following:
            ``(3) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (2) in section 402C (20 U.S.C. 1070a-13)--
                    (A) in subsection (b)--
                            (i) by redesignating paragraphs (2) through 
                        (12) as paragraphs (3) through (13), 
                        respectively;
                            (ii) by inserting after paragraph (1) the 
                        following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;'';
                            (iii) in paragraph (12), as redesignated by 
                        clause (i), by inserting ``, specifically in 
                        the fields of math and science'' after 
                        ``postsecondary education''; and
                            (iv) in paragraph (13), as redesignated by 
                        clause (i), by striking ``paragraphs (1) 
                        through (11)'' and inserting ``paragraphs (1) 
                        through (12)''; and
                    (B) in subsection (e), by striking ``subsection 
                (b)(10)'' and inserting ``subsection (b)(11)'';
            (3) in section 402D(b) (20 U.S.C. 1070a-14(b))--
                    (A) by redesignating paragraphs (2) through (10) as 
                paragraphs (3) through (11), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (4) in section 402E(b) (20 U.S.C. 1070a-15(b))--
                    (A) by redesignating paragraphs (7) and (8) as 
                paragraphs (8) and (9), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
            (5) in section 402F(b) (20 U.S.C. 1070a-16(b))--
                    (A) by redesignating paragraphs (4) through (10) as 
                paragraphs (5) through (11), respectively;
                    (B) by inserting after paragraph (3) the following:
            ``(4) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)''.
    (j) Maximum Stipends.--Section 402C(e) (20 U.S.C. 1070a-13(e)) is 
amended--
            (1) by striking ``$60'' and inserting ``$100''; and
            (2) by striking ``$40'' and inserting ``$60''.
    (k) Student Support Services.--Section 402D(d)(6) (20 U.S.C. 1070a-
14(d)(6)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) working with other entities that serve low-
                income working adults to increase access to and 
                successful progress in postsecondary education by low-
                income working adults seeking their first postsecondary 
                degree or certificate.''.
    (l) Postbaccalaureate Achievement Maximum Stipends.--Section 
402E(e)(1) (20 U.S.C. 1070a-15(e)(1)) is amended by striking ``$2,800'' 
and inserting ``$5,000''.
    (m) Educational Opportunity Centers: Application Approval.--Section 
402F(c) (20 U.S.C. 1070a-16(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) consider the extent to which the proposed project 
        would provide services to low-income working adults in the 
        region to be served, in order to increase access to 
        postsecondary education by low-income working adults.''.

SEC. 403. TRIO REFORM.

    (a) Performance Measures.--Section 402A (20 U.S.C. 1070a-11) is 
amended--
            (1) by redesignating subsections (c), (d), (e), (f), and 
        (g) as subsections (d), (e), (g), (h), and (i), respectively; 
        and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Performance Measures.--
            ``(1) In general.--The Secretary shall establish expected 
        program outcomes and procedures for measuring, annually and for 
        longer periods, the quality and effectiveness of programs 
        operated under this chapter, and the impact of the services 
        provided through the programs to support the attainment of 
        higher education for students from disadvantaged backgrounds, 
        low-income individuals, and prospective first-generation 
        college students.
            ``(2) Use of measures.--The performance measures described 
        in paragraph (1) shall be used to--
                    ``(A) assess the impact of the specific services 
                provided by recipients of grants or contracts under 
                this chapter and, to the extent the Secretary finds 
                appropriate, administrative and financial management 
                practices of such programs;
                    ``(B) identify strengths and weaknesses in the 
                provision of services provided by grantees under this 
                chapter;
                    ``(C) identify project operations that may require 
                training and technical assistance resources.
            ``(3) Additional measures.--In addition to the performance 
        measures in paragraph (1), each grant recipient may establish 
        local performance measures.''.
    (b) Selection.--Subsection (d) of such section (as redesignated by 
subsection (a)(1) of this section) is amended--
            (1) by redesignating paragraphs (2) through (6) as 
        paragraphs (3) through (7), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Selection.--
                    ``(A) In general.--In awarding grants from among 
                qualified applicants, the Secretary shall consider the 
                effectiveness of each applicant in providing services 
                under this chapter, based on--
                            ``(i) the plan of such applicant to deliver 
                        program services and achieve expected program 
                        outcomes established by the Secretary;
                            ``(ii) the plan of such applicant to 
                        coordinate program services with other programs 
                        for disadvantaged students; and
                            ``(iii) any prior experience of such 
                        applicant in achieving expected program 
                        outcomes under this chapter.
                    ``(B) Additional criteria.--The Secretary may 
                establish additional selection criteria as necessary to 
                identify the most qualified applicants.''.
    (c) Prior Experience.--Paragraph (3) of such subsection (d) (as 
amended by section 402(c) and redesignated by subsection (b)(1) of this 
section) is amended--
            (1) by striking subparagraph (A) and inserting ``(A) In 
        making grants under this chapter, the Secretary shall use the 
        measures described in subsection (c)(1) to evaluate each 
        applicant's prior experience in achieving expected program 
        outcomes under the particular program for which funds are 
        sought.''; and
            (2) by adding at the end the following new subparagraph:
            ``(C) The Secretary shall not give prior experience points 
        to any current grantee that during the then most recent period 
        for which funds were provided--
                    ``(i) failed to meet one or more expected program 
                outcomes based on the performance measures described in 
                subsection (c); or
                    ``(ii) expended funds for indirect costs in an 
                amount that exceeded 8 percent of the total grant 
                award.''.
    (d) Order of Awards.--Paragraph (4) of such subsection (d) (as 
redesignated by subsection (b)(1) of this section) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``under paragraph (4)'' and 
                inserting ``under paragraph (5)''; and
                    (B) by stiking ``with paragraph (2)'' and inserting 
                ``with paragraph (3)''; and
            (2) by amending subparagraph (B) to read as follows:
            ``(B) The Secretary shall not provide assistance to an 
        entity if the Secretary has determined that such entity has 
        involved the fraudulent use of public or private funds.''.
    (e) Technical Assistance.--Paragraph (3) of subsection (e) of such 
section (as redesignated by subsection (a)(1) of this section) is 
amended to read as follows:
            ``(3) Technical assistance.--The Secretary shall provide 
        technical assistance to applicants for projects and programs 
        authorized under this chapter. The Secretary shall give 
        priority to serving programs and projects that serve geographic 
        areas and eligible populations which have been underserved by 
        the programs assisted under this chapter. Technical training 
        activities shall include the provision of information on 
        authorizing legislation, goals and objectives of the program, 
        required activities, eligibility requirements, the application 
        process and application deadlines, and assistance in the 
        development of program proposals and the completion of program 
        applications.''.
    (f) Recordkeeping and Reporting.--Section 402A is further amended 
by inserting after subsection (e) of such section (as redesignated by 
subsection (a)(1) of this section) the following new subsection:
    ``(f) Recordkeeping and Reporting.--
            ``(1) In general.--The Secretary shall establish uniform 
        reporting requirements and require each recipient of funds 
        under this chapter to submit annually and in electronic form 
        such information in such manner and form and at such time as 
        the Secretary may require, except that reporting such 
        information shall not reveal personally identifiable 
        information about an individual student.
            ``(2) Report to congress.--At least once every 2-year 
        period, the Secretary shall prepare and submit to the 
        authorizing committees, a report on the services provided to 
        students that shall include--
                    ``(A) a statement for the then most recently 
                concluded fiscal year specifying--
                            ``(i) the amount of funds received by 
                        grantees to provide services under this 
                        chapter; and
                            ``(ii) the amount of funds received by new 
                        grantees to provide services under this 
                        chapter;
                    ``(B) a description of the specific services 
                provided to students;
                    ``(C) a summary of the overall success in achieving 
                specific program outcomes or progress toward such 
                outcomes;
                    ``(D) a report of the number of students served by 
                types of service received;
                    ``(E) information summarizing the types of 
                organizations that received funds under this chapter; 
                and
                    ``(F) a summary of the research and evaluation 
                activities under section 402H, including--
                            ``(i) a status report on ongoing 
                        activities; and
                            ``(ii) results, conclusions, and 
                        recommendations of such activities available 
                        after the then most recent report.''.
    (g) Increased Monitoring.--Subsection (h) of such section (as 
redesignated by subsection (a)(1) of this section) is amended by 
striking everything after the first sentence and inserting the 
following: ``Of the amount appropriated under this chapter, the 
Secretary may use no more than one half of 1 percent of such amount to 
support the administration of the Federal TRIO programs including to 
increase the level of oversight monitoring, to support impact studies, 
program assessments and reviews, and to provide technical assistance to 
prospective applicants and current grantees.''.
    (h) Expected Program Outcome.--
            (1) Section 402B (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(d) Expected Program Outcome.--For the purposes of assessing an 
applicant's past performance under section 402A(c)(1), and prior 
experience under section 402A(d)(3), the Secretary shall consider the 
college-going rate of the participants served by the program compared 
to that of other applicants eligible to receive consideration of prior 
experience.''.
            (2) Section 402C (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(f) Expected Program Outcome.--For the purposes of assessing an 
applicant's past performance under section 402A(c)(1), and prior 
experience under section 402A(d)(3), the Secretary shall consider the 
college-going rate of the participants served by the program compared 
to that of other applicants eligible to receive consideration of prior 
experience.''.
            (3) Section 402D (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(e) Expected Program Outcome.--For the purposes of assessing an 
applicant's past performance under section 402A(c)(1), and prior 
experience under section 402A(d)(3), the Secretary shall consider the 
college-going rate of the participants served by the program compared 
to that of other applicants eligible to receive consideration of prior 
experience.''.
            (4) Section 402E (20 U.S.C. 1070a-12) is amended by 
        striking subsection (f) and inserting the following:
    ``(f) Expected Program Outcome.--For the purposes of assessing an 
applicant's past performance under section 402A(c)(1), and prior 
experience under section 402A(d)(3), the Secretary shall consider the 
college-going rate of the participants served by the program compared 
to that of other applicants eligible to receive consideration of prior 
experience.''.
            (5) Section 402F (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(d) Expected Program Outcome.--For the purposes of assessing an 
applicant's past performance under section 402A(c)(1), and prior 
experience under section 402A(d)(3), the Secretary shall consider the 
college-going rate of the participants served by the program compared 
to that of other applicants eligible to receive consideration of prior 
experience.''.
    (i) Staff Development.--Section 402G (20 U.S.C. 1070a-17) is 
amended to read as follows:

``SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.

    ``(a) Secretary's Authority.--For the purpose of improving the 
operation of the programs and projects authorized by this chapter, the 
Secretary is authorized to make grants to institutions of higher 
education and other public and private nonprofit institutions and 
organizations to provide training and technical assistance for staff 
and leadership personnel employed in, participating in, or preparing 
for employment in, such programs and projects.
    ``(b) Contents of Training Programs.--Such training shall be 
provided to assist programs and projects in--
            ``(1) achieving the expected program outcomes stated under 
        this chapter or additional outcomes identified by individual 
        programs or projects;
            ``(2) addressing any identified program weaknesses in the 
        overall development, conduct, or administration of a grant or 
        contract;
            ``(3) improving the quality of services provided to 
        eligible students; or
            ``(4) additional areas in need of program improvement as 
        identified by the Secretary or as requested by grantees in 
        order to enhance program operations and outcomes.
    ``(c) Consultation.--Grants for the purposes of this section shall 
be made only after consultation with regional and State professional 
associations of persons having special knowledge with respect to the 
needs and problems of such programs and projects.''.
    (j) Evaluations.--Section 402H (20 U.S.C. 1070a-18) is amended to 
read as follows:

``SEC. 402H. EVALUATIONS.

    ``(a) Evaluations.--
            ``(1) In general.--For the purpose of improving the 
        effectiveness of the programs and projects assisted under this 
        chapter, the Secretary shall make grants to or enter into 
        contracts with one or more organizations to--
                    ``(A) evaluate the effectiveness of the programs 
                and projects assisted under this chapter; and
                    ``(B) disseminate information on the impact of the 
                programs in increasing the education level of 
                participating students, as well as other appropriate 
                measures.
            ``(2) Issues to be evaluated.--The evaluations described in 
        paragraph (1) shall measure the effectiveness of programs under 
        this chapter in--
                    ``(A) meeting the expected program outcomes stated 
                under this chapter and all performance measures 
                identified by the Secretary;
                    ``(B) enhancing the access of low-income 
                individuals and first-generation college students to 
                postsecondary education;
                    ``(C) preparing individuals and students for 
                postsecondary education;
                    ``(D) comparing the level of education completed by 
                students who participate in the programs funded under 
                this chapter with the level of education completed by 
                students of similar backgrounds who do not participate 
                in such programs;
                    ``(E) comparing the retention rates, dropout rates, 
                graduation rates, and college admission and completion 
                rates of students who participate in the programs 
                funded under this chapter with the rates of students of 
                similar backgrounds who do not participate in such 
                programs; and
                    ``(F) such other issues as the Secretary considers 
                appropriate for inclusion in the evaluation.
            ``(3) Program methods.--Such evaluations shall also 
        investigate the effectiveness of alternative and innovative 
        methods within Federal TRIO programs of increasing access to, 
        and retention of, students in postsecondary education.
    ``(b) Results.--The Secretary shall submit to the authorizing 
committees--
            ``(1) an annual interim report on the progress and 
        preliminary results of the evaluation of each program funded 
        under this chapter no later than 2 years following the date of 
        enactment of the College Access and Opportunity Act of 2005; 
        and
            ``(2) a final report not later than 3 years following the 
        date of enactment of such Act.
    ``(c) Public Availability.--All reports and underlying data 
gathered pursuant to this section shall be made available to the public 
upon request, in a timely manner following submission of the applicable 
reports under subsection (b), except that any personally identifiable 
information on students participating in any TRIO program shall not be 
disclosed or made available to the public.''.

SEC. 404. GEARUP.

    (a) Duration of Awards.--Section 404A(b) (20 U.S.C. 1070a-21(b)) is 
amended--
            (1) in paragraph (2)(B), by striking ``Higher Education 
        Amendments of 1998'' and inserting ``College Access and 
        Opportunity Act of 2005''; and
            (2) by adding at the end thereof the following new 
        paragraph:
            ``(3) Duration.--An award made by the Secretary under this 
        chapter to an eligible entity described in paragraph (1) or (2) 
        of subsection (c) shall be for the period of 6 years.''.
    (b) Continuing Eligibility.--Section 404A (20 U.S.C. 1070a-21) is 
amended by adding at the end the following new subsection:
    ``(d) Continuing Eligibility.--An eligible entity shall not cease 
to be an eligible entity upon the expiration of any grant under this 
chapter (including a continuation award).''.
    (c) Continuity of Service.--
            (1) Cohort approach.--Section 404B(g)(1)(B) (20 U.S.C. 
        1070a-22(g)(1)(B)) is amended by inserting ``and provide the 
        option of continued services through the student's first year 
        of attendance at an eligible institution of higher education'' 
        after ``grade level''.
            (2) Early intervention.--Section 404D (20 U.S.C. 1070a-24) 
        is amended--
                    (A) in subsection (b)(2)(A), by inserting ``and 
                students in the first year of attendance at an eligible 
                institution of higher education'' after ``grade 12''; 
                and
                    (B) in subsection (c), by inserting ``, and may 
                consider students in their first year of attendance at 
                an eligible institution,'' after ``grade 12''.
    (d) Coordination.--Section 404C(a)(2) (20 U.S.C. 1070a-23(a)(2)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) describe activities for coordinating, 
                complementing, and enhancing services under this 
                chapter provided by other eligible entities in the 
                State; and''.
    (e) Education and Counseling Services.--Section 404D(b)(2)(A)(ii) 
(20 U.S.C. 1070a-24(b)(2)(A)(ii)) is amended by striking ``and academic 
counseling'' and inserting ``academic counseling, and financial 
literacy and economic literacy education or counseling''.
    (f) Homeless and Unaccompanied Youth.--Section 404D is further 
amended by adding at the end the following new subsection:
    ``(e) Homeless and Unaccompanied Youth.--Notwithstanding any other 
provision of this chapter, individuals who are homeless or 
unaccompanied youth as defined in section 725 of the McKinney-Vento 
Homeless Assistance Act shall be eligible to participate in programs 
under this section.''.
    (g) Reauthorization.--Section 404H (20 U.S.C. 1070a-28) is amended 
by striking ``$200,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``$306,500,000 for fiscal year 2006 and such sums as may be necessary 
for each of the 5 succeeding fiscal years''.

SEC. 405. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Authorization of Appropriations.--Section 413A(b)(1) (20 U.S.C. 
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 1999 
and such sums as may be necessary for the 4 succeeding fiscal years'' 
and inserting ``$779,000,000 for fiscal year 2006 and such sums as may 
be necessary for the 5 succeeding fiscal years''.
    (b) Priority of Awards.--Paragraph (2) of section 413C(c) (20 
U.S.C. 1070b-2(c)(2)) is amended to read as follows:
    ``(2) In carrying out paragraph (1) of this subsection, each 
institution of higher education shall, in the agreement made under 
section 487, assure that the selection procedures--
            ``(A) will give a priority for supplemental grants under 
        this subpart to students who receive Pell Grants and meet the 
        requirements of section 484; and
            ``(B) will award no more than 10 percent of each 
        institution's allocation received under section 413D to 
        students who did not receive Federal Pell Grants in a prior 
        year.''.
    (c) Phaseout of Allocation Based on Previous Allocations.--
            (1) Amendment.--Subsection (a) of section 413D (20 U.S.C. 
        1070b-3(a)) is amended to read as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 413A(b) for each fiscal year after fiscal 
        year 2007, the Secretary shall, subject to paragraph (2), first 
        allocate to each eligible institution an amount equal to the 
        following percentage of the amount such institution received 
        under subsection (a) of this section for fiscal year 2007 (as 
        such subsection was in effect with respect to allocations for 
        such fiscal year):
                    ``(A) 80 percent for fiscal years 2008 and 2009;
                    ``(B) 60 percent for fiscal years 2010 and 2011;
                    ``(C) 40 percent for fiscal years 2012 and 2013;
                    ``(D) 20 percent for fiscal years 2014 and 2015; 
                and
                    ``(E) 0 percent for fiscal year 2016 and any 
                succeeding fiscal year.
            ``(2) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).
            ``(3) Additional allocations for certain institutions.--
                    ``(A) Allocations permitted.--Notwithstanding any 
                other provision of this section, the Secretary may 
                allocate an amount equal to not more than 10 percent of 
                the amount by which the amount appropriated in any 
                fiscal year to carry out this subpart exceeds 
                $700,000,000 among eligible institutions described in 
                subparagraph (B).
                    ``(B) Eligible institutions.--An otherwise eligible 
                institution may receive a portion of the allocation 
                described in subparagraph (A) if--
                            ``(i) not less than 10 percent of the 
                        students attending the institution receive 
                        Federal Pell Grants; and
                            ``(ii)(I) in the case of an institution 
                        that offers programs of at least 4 years in 
                        duration, if its graduation rate for Federal 
                        Pell Grant recipients attending the institution 
                        and graduating within the period of time equal 
                        to normal duration of the longest undergraduate 
                        program offered by the institution, as measured 
                        from the first day of their enrollment, exceeds 
                        the median rate for the class of institution 
                        (as defined in section 131(f)(5)(C)); or
                            ``(II) in the case of an institution that 
                        offers programs of at least 2, but less than 4, 
                        years in duration, if its rate for Federal Pell 
                        Grant recipients attending the institution and 
                        graduating or transferring to an institution 
                        that offers programs of at least 4 years in 
                        duration within the period of time equal to the 
                        normal duration of the program offered, as 
                        measured from the first day of their 
                        enrollment, exceeds the median rate for the 
                        class of institution (as defined in section 
                        131(f)(5)(C)).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any amounts appropriated under 
        section 413A(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1070b(b)) for fiscal year 2008 or any succeeding fiscal year.
    (d) Books and Supplies.--Section 413D(c)(3)(D) (20 U.S.C. 1070-
3(c)(3)(D)) is amended by striking ``$450'' and inserting ``$600''.

SEC. 406. LEAP.

    Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 407. HEP/CAMP PROGRAM.

    Section 418A (20 U.S.C. 1070d-2) is amended--
            (1) in subsection (b)(1)(B)(i), by inserting ``, or whose 
        spouse'' after ``themselves'';
            (2) in subsection (b)(3)(B), by inserting ``, including 
        preparation for college entrance exams'' after ``program'';
            (3) in subsection (b)(8), by inserting ``, including child 
        care and transportation'' after ``supportive services'';
            (4) by striking ``and'' at the end of subsection (b)(7), by 
        striking the period at the end of subsection (b)(8) and 
        inserting ``; and'', and by adding at the end of subsection (b) 
        the following new paragraph:
            ``(9) follow-up activity and reporting requirements, except 
        that not more than 2 percent of the funds provided under this 
        section may be used for such purposes.'';
            (5) in subsection (c)(1)(A), by inserting ``, or whose 
        spouse'' after ``themselves'';
            (6) in subsection (c)(1)(B), by striking clause (i) and 
        inserting the following:
                    ``(i) personal, academic, career, and economic 
                education or personal finance counseling as an ongoing 
                part of the program;'';
            (7) in subsection (c)(2)(B), by inserting ``(including 
        mentoring and guidance of such students)'' after ``services'';
            (8) in subsection (c)(2), by striking ``and'' at the end of 
        subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``; and'', and by adding at the 
        end of subsection (c)(2) the following new subparagraph:
            ``(C) for students in any program that does not award a 
        bachelor's degree, encouraging the transfer to, and persistence 
        in, such a program, and monitoring the rate of such transfer, 
        persistence, and completion.'';
            (9) in subsection (e), by striking ``section 402A(c)(1)'' 
        and inserting ``section 402A(c)(2)''; and
            (10) 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. 408. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

    Subpart 6 of part A of title IV is amended to read as follows:

         ``Subpart 6--Robert C. Byrd Honors Scholarship Program

``SEC. 419A. ROBERT C. BYRD MATHEMATICS AND SCIENCE HONORS SCHOLARSHIP 
              PROGRAM.

    ``(a) Purpose.--The purpose of this section is to award 
scholarships to students who are enrolled in studies leading to 
baccalaureate and advanced degrees in physical, life, or computer 
sciences, mathematics, and engineering.
    ``(b) Definitions.--As used in this section--
            ``(1) the term `computer science' means the branch of 
        knowledge or study of computers, including such fields of 
        knowledge or study as computer hardware, computer software, 
        computer engineering, information systems, and robotics;
            ``(2) the term `eligible student' means a student who--
                    ``(A) is a citizen of the United States;
                    ``(B) is selected by the managing agent to receive 
                a scholarship;
                    ``(C) is enrolled full-time in an institution of 
                higher education, other than a United States service 
                academy; and
                    ``(D) has shown a commitment to and is pursuing a 
                major in studies leading to a baccalaureate, masters, 
                or doctoral degree (or a combination thereof) in 
                physical, life, or computer sciences, mathematics, or 
                engineering;
            ``(3) the term `engineering' means the science by which the 
        properties of matter and the sources of energy in nature are 
        made useful to humanity in structures, machines, and products, 
        as in the construction of engines, bridges, buildings, mines, 
        and chemical plants, including such fields of knowledge or 
        study as aeronautical engineering, chemical engineering, civil 
        engineering, electrical engineering, industrial engineering, 
        materials engineering, manufacturing engineering, and 
        mechanical engineering;
            ``(4) the term `life sciences' means the branch of 
        knowledge or study of living things, including such fields of 
        knowledge or study as biology, biochemistry, biophysics, 
        microbiology, genetics, physiology, botany, zoology, ecology, 
        and behavioral biology, except that the term does not encompass 
        social psychology or the health professions;
            ``(5) the term `managing agent' means an entity to which an 
        award is made under subsection (c) to manage a program of 
        Mathematics and Science Honors Scholarships;
            ``(6) the term `mathematics' means the branch of knowledge 
        or study of numbers and the systematic treatment of magnitude, 
        relationships between figures and forms, and relations between 
        quantities expressed symbolically, including such fields of 
        knowledge or study as statistics, applied mathematics, and 
        operations research; and
            ``(7) the term `physical sciences' means the branch of 
        knowledge or study of the material universe, including such 
        fields of knowledge or study as astronomy, atmospheric 
        sciences, chemistry, earth sciences, ocean sciences, physics, 
        and planetary sciences.
    ``(c) Award.--
            ``(1)(A) From funds authorized under section 419D to carry 
        out this section, the Secretary is authorized, through a grant 
        or cooperative agreement, to make an award to a private, non-
        profit organization, other than an institution of higher 
        education or system of institutions of higher education, to 
        manage, through a public and private partnership, a program of 
        Mathematics and Science Honors Scholarships under this section.
            ``(B) The award under subparagraph (A) shall be for a five-
        year period.
            ``(2)(A) One hundred percent of the funds awarded under 
        paragraph (1)(A) for any fiscal year shall be obligated and 
        expended solely on scholarships to eligible students.
            ``(B) No Federal funds shall be used to provide more than 
        50 percent of the cost of any scholarship to an eligible 
        student.
            ``(C) The maximum scholarship award shall be the difference 
        between an eligible student's cost of attendance minus any non-
        loan based aid such student receives.
            ``(3)(A) The secretary may establish--
                    ``(i) eligibility criteria for applicants for 
                managing agent, including criteria regarding financial 
                and administrative capability; and
                    ``(ii) operational standards for the managing 
                agent, including management and performance 
                requirements, such as audit, recordkeeping, record 
                retention, and reporting procedures and requirements.
            ``(B) The Secretary, as necessary, may review and revise 
        any criteria, standards, and rules established under this 
        paragraph and, through the agreement with the managing agent, 
        see that any revisions are implemented.
            ``(4) If the managing agent fails to meet the requirements 
        of this section the Secretary may terminate the award to the 
        managing agent.
            ``(5) The Secretary shall conduct outreach efforts to help 
        raise awareness of the Mathematics and Science Honors 
        Scholarships.
    ``(d) Duties of the Managing Agent.--The managing agent shall--
            ``(1) develop criteria to award Mathematics and Science 
        Honors Scholarships based on established measurements available 
        to secondary students who wish to pursue degrees in physical, 
        life, or computer sciences, mathematics, and engineering;
            ``(2) establish a Mathematics and Science Honors 
        Scholarship Fund in a separate, named account that clearly 
        discloses the amount of Federal and non-Federal funds deposited 
        in the account and used for scholarships under this section;
            ``(3) solicit funds for scholarships and for the 
        administration of the program from non-Federal sources;
            ``(4) solicit applicants for scholarships;
            ``(5) from the amounts in the Fund, award scholarships to 
        eligible students and transfer such funds to the institutions 
        of higher education that they attend; and
            ``(6) annually submit to the Secretary a financial audit 
        and a report on the progress of the program, and such other 
        documents as the Secretary may require to determine the 
        effective management of the program.
    ``(e) Applications.--
            ``(1) Any eligible entity that desires to be the managing 
        agent under this section shall submit an application to the 
        Secretary, in such form and containing such information, as the 
        Secretary may require.
            ``(2) Each application shall include a description of--
                    ``(A) how the applicant meets or will meet 
                requirements established under subsections (c)(3)(A) 
                and (d);
                    ``(B) how the applicant will solicit funds for 
                scholarships and for the administration of the program 
                from non-Federal sources;
                    ``(C) how the applicant will provide nationwide 
                outreach to inform students about the program and to 
                encourage students to pursue degrees in physical, life, 
                or computer sciences, mathematics, and engineering;
                    ``(D) how the applicant will solicit applications 
                for scholarships, including how the applicant will 
                balance efforts in urban and rural areas;
                    ``(E) the selection criteria based on established 
                measurements available to secondary students the 
                applicant will use to award scholarships and to renew 
                those awards;
                    ``(F) how the applicant will inform the institution 
                of higher education chosen by the recipient of the name 
                and scholarship amount of the recipient;
                    ``(G) what procedures and assurances the applicant 
                and the institution of higher education that the 
                recipient attends will use to verify student 
                eligibility, attendance, degree progress, and academic 
                performance and to deliver and account for payments to 
                such institution;
                    ``(H) the management (including audit and 
                accounting) procedures the applicant will use for the 
                program;
                    ``(I) the human, financial, and other resources 
                that the applicant will need and use to manage the 
                program;
                    ``(J) how the applicant will evaluate the program 
                and report to the Secretary annually; and
                    ``(K) a description of how the entity will 
                coordinate with, complement, and build on similar 
                public and private mathematics and science programs.
    ``(f) Scholarship Recipients.--
            ``(1) A student receiving a scholarship under this section 
        shall be known as a `Byrd Mathematics and Science Honors 
        Scholar'.
            ``(2) Any student desiring to receive a scholarship under 
        this section shall submit an application to the managing agent 
        in such form, and containing such information, as the managing 
        agent may require.
            ``(3) Any student that receives a scholarship under this 
        section shall enter into an agreement with the managing agent 
        to complete 5 consecutive years of service to begin no later 
        than 12 months following completion of the final degree in a 
        position related to physical, life, or computer sciences, 
        mathematics, or engineering as defined under this section.
            ``(4) If any student that receives a scholarship under this 
        section fails to earn at least a baccalaureate degree in 
        physical, life, or computer sciences, mathematics, or 
        engineering as defined under this section, the student shall 
        repay to the managing agent the amount of any financial 
        assistance paid to such student.
            ``(5) If any student that receives a scholarship under this 
        section fails to meet the requirements of paragraph (3), the 
        student shall repay to the managing agent the amount of any 
        financial assistance paid to such student.
            ``(6)(A) Scholarships shall be awarded for only one 
        academic year of study at a time.
            ``(B)(i) A scholarship shall be renewable on an annual 
        basis for the established length of the academic program if the 
        student awarded the scholarship remains eligible.
            ``(ii) The managing agent may condition renewal of a 
        scholarship on measures of academic progress and achievement, 
        with the approval of the Secretary.
            ``(C)(i) If a student fails to either remain eligible or 
        meet established measures of academic progress and achievement, 
        the managing agent shall instruct the student's institution of 
        higher education to suspend payment of the student's 
        scholarship.
            ``(ii) A suspension of payment shall remain in effect until 
        the student is able to demonstrate to the satisfaction of the 
        managing agent that he or she is again eligible and meets the 
        established measures of academic progress and achievement.
            ``(iii) A student's eligibility for a scholarship shall be 
        terminated if a suspension period exceeds 12 months.
            ``(D)(i)(I) A student awarded a scholarship may, in a 
        manner and under the terms established by, and with the 
        approval of, the managing agent, postpone or interrupt his or 
        her enrollment at an institution of higher education for up to 
        12 months.
                    ``(II) Such a postponement or interruption shall 
                not be considered a suspension for purposes of 
                subparagraph (C).
            ``(ii) Neither a student nor the student's institution of 
        higher education shall receive the student's scholarship 
        payments during the period of postponement or interruption, but 
        such payments shall resume upon enrollment or reenrollment.
            ``(iii) In exceptional circumstances, such as serious 
        injury or illness or the necessity to care for family members, 
        the student's postponement or interruption may, upon 
        notification and approval of the managing agent, be extended 
        beyond the 12 month period described in clause (i)(I).
    ``(g) Responsibilities of Institution of Higher Education.--
            ``(1) The managing agent shall require any institution of 
        higher education that enrolls a student who receives a 
        scholarship under this section to annually provide an 
        assurance, prior to making any payment, that the student--
            ``(A) is eligible in accordance with subsection (b)(2); and
            ``(B) has provided the institution with a written 
        commitment to attend, or is attending, classes and is 
        satisfactorily meeting the institution's academic criteria for 
        enrollment in its program of study.
            ``(2)(A) The managing agent shall provide the institution 
        of higher education with payments from the Fund for selected 
        recipients in at least two installments.
            ``(B) An institution of higher education shall return 
        prorated amounts of any scholarship payment to the managing 
        agent, who shall deposit it in to the Fund, if a recipient 
        declines a scholarship, does not attend courses, transfers to 
        another institution of higher education, or becomes ineligible 
        for a scholarship.

``SEC. 419B. MATHEMATICS AND SCIENCE INCENTIVE PROGRAM.

    ``(a) Program.--
            ``(1) In general.--The Secretary is authorized to carry out 
        a program of assuming the obligation to pay, pursuant to the 
        provisions of this section, the interest on a loan made, 
        insured, or guaranteed under part B or D of this title.
            ``(2) Eligibility.--The Secretary may assume interest 
        payments under paragraph (1) only for a borrower who--
                    ``(A) has submitted an application in compliance 
                with subsection (d);
                    ``(B) obtained one or more loans described in 
                paragraph (1) as an undergraduate student;
                    ``(C) is a new borrower (within the meaning of 
                section 103(7) of this Act) on or after the date of 
                enactment of the College Access and Opportunity Act of 
                2005;
                    ``(D) is a highly qualified teacher of science, 
                technology, engineering or mathematics at an elementary 
                or secondary school in a high need local educational 
                agency, or is a mathematics, science, or engineering 
                professional; and
                    ``(E) enters into an agreement with the Secretary 
                to complete 5 consecutive years of service in a 
                position described in subparagraph (D), starting on the 
                date of the agreement.
            ``(3) Prior interest limitations.--The Secretary shall not 
        make any payments for interest that--
                    ``(A) accrues prior to the beginning of the 
                repayment period on a loan in the case of a loan made 
                under section 428H or a Federal Direct Unsubsidized 
                Stafford Loan; or
                    ``(B) has accrued prior to the signing of an 
                agreement under paragraph (2)(E).
            ``(4) Initial selection.--In selecting participants for the 
        program under this section, the Secretary--
                    ``(A) shall choose among eligible applicants on the 
                basis of--
                            ``(i) the national security, homeland 
                        security, and economic security needs of the 
                        United States, as determined by the Secretary, 
                        in consultation with other Federal agencies, 
                        including the Departments of Labor, Defense, 
                        Homeland Security, Commerce, and Energy, the 
                        Central Intelligence Agency, and the National 
                        Science Foundation; and
                            ``(ii) the academic record or job 
                        performance of the applicant; and
                    ``(B) may choose among eligible applicants on the 
                basis of--
                            ``(i) the likelihood of the applicant to 
                        complete the 5-year service obligation;
                            ``(ii) the likelihood of the applicant to 
                        remain in science, mathematics, or engineering 
                        after the completion of the service 
                        requirement; or
                            ``(iii) other relevant criteria determined 
                        by the Secretary.
            ``(5) Availability subject to appropriations.--Loan 
        interest payments under this section shall be subject to the 
        availability of appropriations. If the amount appropriated for 
        any fiscal year is not sufficient to provide interest payments 
        on behalf of all qualified applicants, the Secretary shall give 
        priority to those individuals on whose behalf interest payments 
        were made during the preceding fiscal year.
            ``(6) Regulations.--The Secretary is authorized to 
        prescribe such regulations as may be necessary to carry out the 
        provisions of this section.
    ``(b) Duration and Amount of Interest Payments.--The period during 
which the Secretary shall pay interest on behalf of a student borrower 
who is selected under subsection (a) is the period that begins on the 
effective date of the agreement under subsection (a)(2)(E), continues 
after successful completion of the service obligation, and ends on the 
earlier of--
            ``(1) the completion of the repayment period of the loan;
            ``(2) payment by the Secretary of a total of $5,000 on 
        behalf of the borrower;
            ``(3) if the borrower ceases to fulfill the service 
        obligation under such agreement prior to the end of the 5-year 
        period, as soon as the borrower is determined to have ceased to 
        fulfill such obligation in accordance with regulations of the 
        Secretary; or
            ``(4) 6 months after the end of any calendar year in which 
        the borrower's gross income equals or exceeds 4 times the 
        national per capita disposable personal income (current 
        dollars) for such calendar year, as determined on the basis of 
        the National Income and Product Accounts Tables of the Bureau 
        of Economic Analysis of the Department of Commerce, as 
        determined in accordance with regulations prescribed by the 
        Secretary.
    ``(c) Repayment to Eligible Lenders.--Subject to the regulations 
prescribed by the Secretary by regulation under subsection (a)(6), the 
Secretary shall pay to each eligible lender or holder for each payment 
period the amount of the interest that accrues on a loan of a student 
borrower who is selected under subsection (a).
    ``(d) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        interest payment 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) Failure to complete service agreement.--Such 
        application shall contain an agreement by the individual that, 
        if the individual fails to complete the 5 consecutive years of 
        service required by subsection (a)(2)(E), the individual agrees 
        to repay the Secretary the amount of any interest paid by the 
        Secretary on behalf of the individual.
    ``(e) Treatment of Consolidation Loans.--A consolidation loan made 
under section 428C of this Act, or a Federal Direct Consolidation Loan 
made under part D of title IV of this Act, may be a qualified loan for 
the purpose of this section only to the extent that such loan amount 
was used by a borrower who otherwise meets the requirements of this 
section to repay--
            ``(1) a loan made under section 428 or 428H of this Act; or
            ``(2) a Federal Direct Stafford Loan, or a Federal Direct 
        Unsubsidized Stafford Loan, made under part D of title IV of 
        this Act.
    ``(f) Prevention of Double Benefits.--No borrower may, for the same 
service, receive a benefit under both this section and--
            ``(1) any loan forgiveness program under title IV of this 
        Act; or
            ``(2) subtitle D of title I of the National and Community 
        Service Act of 1990 (42 U.S.C. 12601 et seq.).
    ``(g) Definitions.--As used in this section--
            ``(1) the term `high need local educational agency' has the 
        same meaning given such term in section 201(b)(4); and
            ``(2) the term `mathematics, science, or engineering 
        professional' means a person who--
                    ``(A) holds a baccalaureate, masters, or doctoral 
                degree (or a combination thereof) in science, 
                mathematics, or engineering; and
                    ``(B) works in a field the Secretary determines is 
                closely related to that degree, which shall include 
                working as a professor at a two- or four-year 
                institution of higher education.

``SEC. 419C. MATHEMATICS AND SCIENCE EDUCATION COORDINATING COUNCIL 
              GRANTS.

    ``(a) Purposes.--The purposes of this section include--
            ``(1) supporting programs that encourage students to enroll 
        in and successfully complete baccalaureate and advanced degrees 
        in science, technology, engineering, and mathematics;
            ``(2) achieving the common objective of organizing, 
        leading, and implementing State-based reform agendas that 
        support the continuing improvement of mathematics and science 
        education; and
            ``(3) improving collaboration in a State among the State 
        educational agency, 2-year and 4-year institutions of higher 
        education, and the business community through the development 
        or improvement of a coordinating council.
    ``(b) Definitions.--For the purposes of this section:
            ``(1) the term `eligible State' means--
                    ``(A) the Governor of a State; or
                    ``(B) in the case of a State for which the 
                constitution or laws of the State designate an 
                individual, entity, or agency in the State, other than 
                the Governor, to be responsible for coordination among 
                segments of the State's educational systems, such 
                individual, entity, or agency.
            ``(2) the term `mathematics and science education 
        coordinating council' means an organization that is charged by 
        a State with coordinating mathematics and science education in 
        the State. Such a council shall be composed of education, 
        business, and community leaders working together to increase 
        student participation and academic achievement in mathematics 
        and science.
    ``(c) State Grants.--From amounts made available under section 419D 
for this section, the Secretary is authorized to use not more than 
$5,000,000 to award grants on a competitive basis to eligible States 
for the purpose of carrying out activities described in subsection (d).
    ``(d) Uses of Funds.--An eligible State that receives a grant under 
this section is authorized to use grant funds to carry out one or more 
of the following activities:
            ``(1) In a State in which a mathematics and science 
        education coordinating council does not exist, planning and 
        establishing such a council.
            ``(2) In a State in which such a council exists, reforming 
        or expanding the activities of the council, including 
        implementing State-based reform agendas that support the 
        continuing improvement of mathematics and science education, 
        and support services that lead to better teacher recruitment 
        and training, increased student academic achievement, and 
        increased student enrollment and degree attainment in science, 
        technology, engineering, and mathematics.
            ``(3) Coordinating with activities under part B of title II 
        of the Elementary and Secondary Education Act of 1965 and with 
        title II of this Act, especially as it pertains to the 
        recruitment and preparation of highly qualified mathematics and 
        science teachers.
    ``(e) Application.--To be eligible to receive a grant under this 
section, an eligible State shall submit an application to the Secretary 
that--
            ``(1) describes the activities the State will carry out 
        with the funds;
            ``(2) contains a plan for continuing such activities once 
        Federal funding ceases; and
            ``(3) contains such other information and assurances as the 
        Secretary may require.
    ``(f) Consultation.--The Governor of a State, or the individual, 
entity, or agency in the State described in subsection (b)(1)(B), shall 
consult with the State board of education, State educational agency, 
and the State agency for higher education, as appropriate, with respect 
to the activities assisted under this section. In the case of an 
individual, entity, or agency described in subsection (b)(1)(B), such 
consultation shall also include the Governor.
    ``(g) Construction.--Nothing in this section shall be construed to 
negate or supersede the legal authority under State law of any State 
agency, State entity, or State public official over programs that are 
under the jurisdiction of the agency, entity, or official.
    ``(h) Administrative Provisions.--
            ``(1) In general.--
                    ``(A) Grants awarded under this section shall be 
                awarded for a period not to exceed 5 years.
                    ``(B) A grantee may receive a grant under this part 
                only once.
                    ``(C) Payments of grant funds under this section 
                shall be annual.
            ``(2) Secretarial selections.--The Secretary shall 
        determine which applications receive funds under this section, 
        and the amount of the grant. In determining grant amounts, the 
        Secretary shall take into account the total amount of funds 
        available for all grants under this section and the nature of 
        each grant proposal, including whether funds are being sought 
        to assist in the creation of a new State mathematics and 
        science education coordinating council or to extend the work of 
        an existing council. The Secretary shall also take into account 
        the equitable geographic distribution of grants throughout the 
        United States.
            ``(3) Matching requirement.--Each eligible State receiving 
        a grant under this section shall provide, from non-Federal 
        sources, an amount equal to 50 percent of the amount of the 
        grant (in cash or in kind) to carry out the activities 
        supported by the grant.
    ``(i) Accountability and Evaluation.--
            ``(1) State grant accountability report.--An eligible State 
        that receives a grant under this section shall submit an annual 
        accountability report to the Secretary. Such report shall 
        include a description of the degree to which the eligible 
        State, in using grant funds, has made substantial progress in 
        meeting its objectives.
            ``(2) Evaluation and dissemination.--The Secretary shall 
        evaluate the activities funded under this section and report 
        the Secretary's findings regarding such activities to the 
        authorizing committees. The Secretary shall broadly disseminate 
        successful practices developed by eligible States under this 
        section, and shall broadly disseminate information regarding 
        such practices that were found to be ineffective.
            ``(3) Revocation.--If the Secretary determines that an 
        eligible State is not making substantial progress in meeting 
        the purposes, objectives, and measures, as appropriate, 
        required under this section by the end of the second year of a 
        grant, then the grant payment shall not be made for the third 
        year and subsequent years of the grant.

``SEC. 419D. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $41,000,000 for fiscal 
year 2006 and such sums as may be necessary for each of the 5 
succeeding fiscal years to carry out this subpart.''.

SEC. 409. CHILD CARE ACCESS.

     Section 419N(g) (20 U.S.C. 1070e(g)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 410. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

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

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

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

    (a) Authorization of Appropriations.--Section 421(b)(5) (20 U.S.C. 
1071(b)(5)) is amended by striking ``an administrative cost allowance'' 
and inserting ``a loan processing and issuance fee''.
    (b) Extension of Authority.--
            (1) Federal insurance limitations.--Section 424(a) (20 
        U.S.C. 1074(a)) is amended--
                    (A) by striking ``2004'' and inserting ``2012''; 
                and
                    (B) by striking ``2008'' and inserting ``2016''.
            (2) Guaranteed loans.--Section 428(a)(5) (20 U.S.C. 
        1078(a)(5)) is amended--
                    (A) by striking ``2004'' and inserting ``2012''; 
                and
                    (B) by striking ``2008'' and inserting ``2016''.
            (3) Consolidation loans.--Section 428C(e) (20 U.S.C. 1078-
        3(e)) is amended by striking ``2004'' and inserting ``2012''.

SEC. 422. LOAN LIMITS.

    (a) Federal Insurance Limits.--Section 425(a)(1)(A) (20 U.S.C. 
1075(a)(1)(A)) is amended--
            (1) in clause (i)(I), by striking ``$2,625'' and inserting 
        ``$3,500''; and
            (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
        ``$4,500''.
    (b) Guarantee Limits.--Section 428(b)(1)(A) (20 U.S.C. 
1078(b)(1)(A)) is amended--
            (1) in clause (i)(I), by striking ``$2,625'' and inserting 
        ``$3,500''; and
            (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
        ``$4,500''.
    (c) Counting of Consolidation Loans Against Limits.--Section 
428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding at the 
end the following new clause:
            ``(ii) Loans made under this section shall, to the extent 
        used to pay off the outstanding principal balance on loans made 
        under this title, excluding capitalized interest, be counted 
        against the applicable limitations on aggregate indebtedness 
        contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, 
        and 464(a)(2)(B).''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to any loan made, insured, or guaranteed under part 
B or part D of title IV of the Higher Education Act of 1965 for which 
the first disbursement of principal is made on or after July 1, 2007.

SEC. 423. INTEREST RATES AND SPECIAL ALLOWANCES.

    (a) FFEL Interest Rates.--Section 427A (20 U.S.C. 1077a(k)) is 
amended--
            (1) in subsection (k)--
                    (A) by striking ``, and Before July 1, 2006'' in 
                the heading of such subsection; and
                    (B) by striking ``, and before July 1, 2006,'' each 
                place it appears other than paragraph (4);
            (2) by striking subsection (l); and
            (3) by redesignating subsections (m) and (n) as subsections 
        (l) and (m), respectively.
    (b) Direct Loan Interest Rates.--Section 455(b) (20 U.S.C. 
1087e(b)) is amended--
            (1) in paragraph (6)--
                    (A) by striking ``, and before july 1, 2006'' in 
                the heading of such paragraph; and
                    (B) by striking ``, and before July 1, 2006,'' each 
                place it appears other than subparagraph (D);
            (2) by striking paragraph (7); and
            (3) by redesignating paragraphs (8) and (9) as paragraphs 
        (7) and (8), respectively.
    (c) Consolidation Loan Interest Rates.--
            (1) FFEL loans.--Section 427A(k) (20 U.S.C. 1077a(k)) is 
        further amended--
                    (A) in the heading of paragraph (4), by inserting 
                ``before july 1, 2006'' after ``loans'';
                    (B) by redesignating paragraph (5) as paragraph 
                (6); and
                    (C) by inserting after paragraph (4) the following:
            ``(5) Consolidation loans on or after july 1, 2006.--
                    ``(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, 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, for such 12-
                month period, not be more than--
                            ``(i) the bond equivalent rate of 91-day 
                        Treasury bills auctioned at the final auction 
                        held prior to such June 1; plus
                            ``(ii) 2.3 percent,
                except that such rate shall not exceed 8.25 percent.
                    ``(C) Fixed rate.--Except as provided in 
                subparagraph (D), the rate determined under this 
                subparagraph shall be determined for the duration of 
                the term of the loan on the July 1 that is or precedes 
                the date on which the application is received by an 
                eligible lender, and shall be, for such duration, not 
                more than--
                            ``(i) the bond equivalent rate of 91-day 
                        Treasury bills auctioned at the final auction 
                        held prior to the June 1 immediately preceding 
                        such July 1; plus
                            ``(ii) 3.3 percent,
                except that such rate shall not exceed 8.25 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 clauses (B) and (C) shall be 
                determined--
                            ``(i) by substituting `3.1 percent' for 
                        `2.3 percent';
                            ``(ii) by substituting `4.1 percent' for 
                        `3.3 percent'; and
                            ``(iii) by substituting `9.0 percent' for 
                        `8.25 percent'.''.
            (2) Direct loans.--Section 455(b)(6) (20 U.S.C. 
        1087e(b)(6)) is further amended--
                    (A) in the heading of subparagraph (D), by 
                inserting ``before july 1, 2006'' after ``loans''
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by inserting after subparagraph (D) the 
                following:
                    ``(E) Consolidation loans on or after july 1, 
                2006.--
                            ``(i) Borrower election.--Notwithstanding 
                        the preceding paragraphs of this subsection, 
                        with respect to any Federal Direct 
                        Consolidation Loan for which the application is 
                        received by an eligible lender on or after July 
                        1, 2006, 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 
                        clause shall, during any 12-month period 
                        beginning on July 1 and ending on June 30, be 
                        determined on the preceding June 1 and, for 
                        such 12-month period, be equal to--
                                    ``(I) the bond equivalent rate of 
                                91-day Treasury bills auctioned at the 
                                final auction held prior to such June 
                                1; plus
                                    ``(II) 2.3 percent,
                        except that such rate shall not exceed 8.25 
                        percent.
                            ``(iii) Fixed rate.--Except as provided in 
                        clause (iv), the rate determined under this 
                        clause shall be determined for the duration of 
                        the term of the loan on the July 1 that is or 
                        precedes the date on which the application is 
                        received by an eligible lender, and shall be, 
                        for such duration, equal to--
                                    ``(I) the bond equivalent rate of 
                                91-day Treasury bills auctioned at the 
                                final auction held prior to the June 1 
                                immediately preceding such July 1; plus
                                    ``(II) 3.3 percent,
                        except that such rate shall not exceed 8.25 
                        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 (or both), the rates 
                        determined under clauses (ii) and (iii) shall 
                        be determined--
                                    ``(I) by substituting `3.1 percent' 
                                for `2.3 percent';
                                    ``(II) by substituting `4.1 
                                percent' for `3.3 percent'; and
                                    ``(III) by substituting `9.0 
                                percent' for `8.25 percent'.''.
    (d) Consolidation Loan Conforming Amendment.--Section 
428C(c)(1)(A)(ii) (20 U.S.C. 1078-3(c)(1)(A)(ii)) is amended by 
striking ``section 427A(l)(3)'' and inserting ``section 427A(k)(5)''.
    (e) Conforming Amendments for Special Allowances.--
            (1) Amendment.--Subparagraph (I) of section 438(b)(2) (20 
        U.S.C. 1087-1(b)(2)) is amended--
                    (A) by striking clause (ii) and inserting the 
                following:
                            ``(ii) In school and grace period.--In the 
                        case of any loan for which the first 
                        disbursement is made on or after January 1, 
                        2000, and for which the applicable interest 
                        rate is described in section 427A(k)(2), clause 
                        (i)(III) of this subparagraph shall be applied 
                        by substituting `1.74 percent' for `2.34 
                        percent'.'';
                    (B) in clause (iii)--
                            (i) by striking ``or (l)(2)''; and
                            (ii) by striking ``, subject to clause (v) 
                        of this subparagraph'';
                    (C) in clause (iv)--
                            (i) by striking ``or (l)(3)'' and inserting 
                        ``or (k)(5)''; and
                            (ii) by striking ``, subject to clause (vi) 
                        of this subparagraph''; and
                    (D) by striking clauses (v), (vi), and (vii) and 
                inserting the following:
                            ``(v) Recapture of excess interest.--
                                    ``(I) Excess credited.--With 
                                respect to a loan on which the 
                                applicable interest rate is determined 
                                under section 427A(k) and for which the 
                                first disbursement of principal is made 
                                on or after July 1, 2006, if the 
                                applicable interest rate for any 3-
                                month period exceeds the special 
                                allowance support level 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 support level 
                                        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.
                                    ``(III) Special allowance support 
                                level.--For purposes of this clause, 
                                the term `special allowance support 
                                level' means, for any loan, a number 
                                expressed as a percentage equal to the 
                                sum of the rates determined under 
                                subclauses (I) and (III) of clause (i), 
                                and applying any substitution rules 
                                applicable to such loan under clauses 
                                (ii), (iii), and (iv) in determining 
                                such sum.''.
            (2) Effective date.--The amendments made by this subsection 
        shall not apply with respect to any special allowance payment 
        made under section 438 of the Higher Education Act of 1965 (20 
        U.S.C 1087-1) before July 1, 2006.

SEC. 424. ADDITIONAL LOAN TERMS AND CONDITIONS.

    (a) Federal Default Fees.--
            (1) In general.--Subparagraph (H) of section 428(b)(1) (20 
        U.S.C. 1078(b)(1)(H)) is amended to read as follows:
                    ``(H) provides--
                            ``(i) for loans for which the first 
                        disbursement of principal is made before July, 
                        1, 2006, for the collection of a single 
                        insurance premium equal to not more than 1.0 
                        percent of the principal amount of the loan, by 
                        deduction proportionately from each installment 
                        payment of the proceeds of the loan to the 
                        borrower, and insures that the proceeds of the 
                        premium will not be used for incentive payments 
                        to lenders; or
                            ``(ii) for loans for which the first 
                        disbursement of principal is made on or after 
                        July 1, 2006, for the collection and deposit 
                        into the Federal Student Loan Reserve Fund 
                        under section 422A of a Federal default fee of 
                        1.0 percent of the principal amount of such 
                        loan, which shall be deducted proportionately 
                        from each installment payment of the proceeds 
                        of the loan to the borrower prior to payment to 
                        the borrower, and insures that the proceeds of 
                        the Federal default fee will not be used for 
                        incentive payments to lenders;''.
            (2) Unsubsidized loans.--Section 428H(h) (20 U.S.C. 1078-
        8(h)) is amended by adding at the end the following new 
        sentence: ``In lieu of the insurance premium authorized under 
        the preceding sentence, and effective for loans for which the 
        first disbursement of principal is made on or after July 1, 
        2006, each State or nonprofit private institution or 
        organization having an agreement with the Secretary under 
        section 428(b)(1) shall collect and deposit into the Federal 
        Student Loan Reserve Fund under section 422A a Federal default 
        fee of 1.0 percent of the principal amount of the loan, 
        obtained by deduction proportionately from each installment 
        payment of the proceeds of the loan to the borrower.''.
            (3) Voluntary flexible agreements.--Section 428A(a)(1) (20 
        U.S.C. 1078-1(a)(1)) is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (A);
                    (B) by striking the period at the end of 
                subparagraph (B) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) the Federal default fee required by section 
                428(b)(1)(H) and the second sentence of section 
                428H(h).''.
    (b) Disbursement.--Section 428(b)(1)(N) (20 U.S.C. 
1078(b)(1)(N)(ii)) is amended--
            (1) in clause (i), by inserting ``(including an eligible 
        foreign institution, except as provided in clause (ii))'' after 
        ``institution''; and
            (2) in clause (ii), by striking ``or at an eligible foreign 
        institution''.
    (c) Repayment Plans.--
            (1) FFEL loans.--Section 428(b)(9)(A) (20 U.S.C. 
        1078(b)(9)(A)) is amended--
                    (A) by inserting before the semicolon at the end of 
                clause (ii) the following: ``, and the Secretary may 
                not restrict the proportions or ratios by which such 
                payments may be graduated with the informed agreement 
                of the borrower'';
                    (B) by striking ``and'' at the end of clause (iii);
                    (C) by redesignating clause (iv) as clause (v); and
                    (D) by inserting after clause (iii) the following 
                new clause:
                            ``(iv) a delayed repayment plan under which 
                        the borrower makes scheduled payments for not 
                        more than 2 years that are annually not less 
                        than the amount of interest due or $600, 
                        whichever is greater, and then makes payments 
                        in accordance with clause (i), (ii), or (iii); 
                        and''.
            (2) Direct loans.--Section 455(d)(1) (20 U.S.C. 
        1087e(d)(1)) is amended--
                    (A) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (B) by striking subparagraphs (A), (B), and (C) and 
                inserting the following:
                    ``(A) a standard repayment plan, consistent with 
                subsection (a)(1) of this section and with section 
                428(b)(9)(A)(i);
                    ``(B) a graduated repayment plan, consistent with 
                section 428(b)(9)(A)(ii);
                    ``(C) an extended repayment plan, consistent with 
                section 428(b)(9)(A)(v), except that the borrower shall 
                annually repay a minimum amount determined by the 
                Secretary in accordance with section 428(b)(1)(L);
                    ``(D) a delayed repayment plan under which the 
                borrower makes scheduled payments for not more than 2 
                years that are annually not less than the amount of 
                interest due or $600, whichever is greater, and then 
                makes payments in accordance with subparagraph (A), 
                (B), or (C); and''.
    (d) Origination Fees.--
            (1) FFEL program.--Paragraph (2) of section 438(c) (20 
        U.S.C. 1087-1(c)) is amended--
                    (A) by striking the designation and heading of such 
                paragraph and inserting the following:
            ``(2) Amount of origination fees.--
                    ``(A) In general.--''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(B) Subsequent reductions.--Subparagraph (A) 
                shall be applied to loans made under this part (other 
                than loans made under sections 428C and 439(o))--
                            ``(i) by substituting `2.0 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2006, and before July 1, 2007;
                            ``(ii) by substituting `1.5 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2007, and before July 1, 2008;
                            ``(iii) by substituting `1.0 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2008, and before July 1, 2009;
                            ``(iv) by substituting `0.5 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2009, and before July 1, 2010; 
                        and
                            ``(v) by substituting `0.0 percent' for 
                        `3.0 percent' with respect to loans for which 
                        the first disbursement of principal is made on 
                        or after July 1, 2010.''.
            (2) Direct loan program.--Subsection (c) of section 455 (20 
        U.S.C. 1087e(c)) is amended to read as follows:
    ``(c) Loan Fee.--
            ``(1) In general.--The Secretary shall charge the borrower 
        of a loan made under this part an origination fee of 4.0 
        percent of the principal amount of loan.
            ``(2) Subsequent reduction.--Paragraph (1) shall be applied 
        to loans made under this part, other than consolidation loans 
        and PLUS loans--
                    ``(A) by substituting `not more or less than 3.0 
                percent' for `4.0 percent' with respect to loans for 
                which the first disbursement of principal is made on or 
                after July 1, 2006, and before July 1, 2007;
                    ``(B) by substituting `not more or less than 2.5 
                percent' for `4.0 percent' with respect to loans for 
                which the first disbursement of principal is made on or 
                after July 1, 2007, and before July 1, 2008;
                    ``(C) by substituting `not more or less than 2.0 
                percent' for `4.0 percent' with respect to loans for 
                which the first disbursement of principal is made on or 
                after July 1, 2008, and before July 1, 2009;
                    ``(D) by substituting `not more or less than 1.5 
                percent' for `4.0 percent' with respect to loans for 
                which the first disbursement of principal is made on or 
                after July 1, 2009, and before July 1, 2010; and
                    ``(E) by substituting `not more or less than 1.0 
                percent' for `4.0 percent' with respect to loans for 
                which the first disbursement of principal is made on or 
                after July 1, 2010.
            ``(3) Waivers and repayment incentives prohibited.--
        Beginning with loans made on or after July 1, 2006, the 
        Secretary is prohibited--
                    ``(A) from waiving any amount of the loan fee 
                prescribed under this section as part of a repayment 
                incentive in section 455(b)(7); and
                    ``(B) from providing any repayment incentive before 
                the borrower enters repayment.''.
    (e) Fixed Rate Offset Charge.--
            (1) FFEL consolidation loans.--Section 438(c) (20 U.S.C. 
        1087-1(c)) is further amended--
                    (A) in paragraph (1)(A), by inserting after 
                ``paragraph (2) of this subsection'' the following: 
                ``and the amount the lender is authorized to collect as 
                a fixed rate offset charge in accordance with paragraph 
                (9) of this subsection'';
                    (B) in paragraph (1)(B)--
                            (i) by inserting ``and the fixed rate 
                        offset charge'' after ``origination fee''; and
                            (ii) by inserting ``and fixed rate offset 
                        charges'' after ``origination fees'';
                    (C) in paragraphs (3) and (4), by inserting ``and 
                fixed rate offset charge'' after ``origination fee'' 
                each place it appears;
                    (D) in paragraph (5)--
                            (i) by inserting ``or fixed rate offset 
                        charge'' after ``origination fee''; and
                            (ii) by inserting ``or fixed rate offset 
                        charges'' after ``origination fees'';
                    (E) in paragraph (7), by inserting ``and fixed rate 
                offset charges'' after ``origination fees''; and
                    (F) by adding at the end the following new 
                paragraph:
            ``(9) Fixed rate offset charges for consolidation loans.--
        For any loan under section 428C for which the borrower elects 
        to take a fixed rate under section 427A(k)(5)(C), the lender is 
        authorized to collect a fixed rate offset charge in an amount 
        not to exceed 0.5 percent of the principal amount of the loan. 
        Such amount may be added to the principal amount of the loan 
        for repayment by the borrower.''.
            (2) Direct loans.--Section 455(c) (20 U.S.C. 1087e(c)), as 
        amended by subsection (d)(2) of this section, is further 
        amended by adding at the end the following new paragraph:
            ``(4) Fixed rate offset charges for consolidation loans.--
        For any Federal Direct Consolidation Loan for which the 
        borrower elects to take a fixed rate under section 
        455(b)(6)(E)(iii), the Secretary shall collect a fixed rate 
        offset charge in an amount not to exceed 0.5 percent of the 
        principal amount of the loan. Such amount may be added to the 
        principal amount of the loan for repayment by the borrower. 
        Such amount is not subject to the requirements of paragraph (3) 
        of this subsection.''.

SEC. 425. CONSOLIDATION LOAN CHANGES.

    (a) Cross-Consolidation Between Programs.--Section 428C (20 U.S.C. 
1078-3) is amended--
            (1) in subsection (a)(3)(B)(i)--
                    (A) by inserting ``or under section 455(g)'' after 
                ``under this section'' both places it appears;
                    (B) by inserting ``under both sections'' after 
                ``terminates''
                    (C) by striking ``and'' at the end of subclause 
                (III);
                    (D) by striking the period at the end of subclause 
                (IV) and inserting ``; and''; and
                    (E) by adding at the end the following new 
                subclause:
                    ``(V) an individual may obtain a subsequent 
                consolidation loan under section 455(g) only for the 
                purposes of obtaining an income contingent repayment 
                plan, and only if the loan has been submitted to the 
                guaranty agency for default aversion.''; and
            (2) in subsection (b)(5), by striking the first sentence 
        and inserting the following: ``In the event that a lender with 
        an agreement under subsection (a)(1) of this section denies a 
        consolidation loan application submitted to it by an eligible 
        borrower under this section, or denies an application submitted 
        to it by such a borrower for a consolidation loan with income-
        sensitive repayment terms, the Secretary shall offer any such 
        borrower who applies for it, a direct consolidation loan. The 
        Secretary shall offer such a loan to a borrower who has 
        defaulted, for the purpose of resolving the default.''.
    (b) Repeal of in-School Consolidation.--
            (1) Definition of repayment period.--Section 428(b)(7)(A) 
        (20 U.S.C. 1078(b)(7)(A)) is amended by striking ``shall 
        begin--'' and all that follows through ``earlier date.'' and 
        inserting the following: ``shall begin the day after 6 months 
        after the date the student ceases to carry at least one-half 
        the normal full-time academic workload (as determined by the 
        institution).''.
            (2) Conforming change to eligible borrower definition.--
        Section 428C(a)(3)(A)(ii)(I) (20 U.S.C. 1078-3(a)(3)(A)(ii)(I)) 
        is amended by inserting ``as determined under section 
        428(b)(7)(A)'' after ``repayment status''.
    (c) Additional Amendments.--Section 428C (20 U.S.C. 1078-3) is 
amended--
            (1) in subsection (a)(3), by striking subparagraph (C); and
            (2) in subsection (b)(1)--
                    (A) by striking everything after ``under this 
                section'' the first place it appears in subparagraph 
                (A) and inserting the following: ``and that, if all the 
                borrower's loans under this part are held by a single 
                holder, the borrower has notified such holder that the 
                borrower is seeking to obtain a consolidation loan 
                under this section;'';
                    (B) by striking ``(i) which'' and all that follows 
                through ``and (ii)'' in subparagraph (C);
                    (C) by striking ``and'' at the end of subparagraph 
                (E);
                    (D) by redesignating subparagraph (F) as 
                subparagraph (G); and
                    (E) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) that the lender of the consolidation loan 
                shall, upon application for such loan, provide the 
                borrower with a clear and conspicuous notice of at 
                least the following information:
                            ``(i) the effects of consolidation on total 
                        interest to be paid, fees to be paid, and 
                        length of repayment;
                            ``(ii) the effects of consolidation on a 
                        borrower's underlying loan benefits, including 
                        loan forgiveness, cancellation, deferment, and 
                        reduced interest rates on those underlying 
                        loans;
                            ``(iii) the ability of the borrower to 
                        prepay the loan, pay on a shorter schedule, and 
                        to change repayment plans;
                            ``(iv) that borrower benefit programs may 
                        vary among different loan holders, and a 
                        description of how the borrower benefits may 
                        vary among different loan holders;
                            ``(v) the tax benefits for which borrowers 
                        may be eligible;
                            ``(vi) the consequences of default; and
                            ``(vii) that by making the application the 
                        applicant is not obligated to agree to take the 
                        consolidation loan; and''.
    (d) Effective Date for Single Holder Amendment.--The amendment made 
by subsection (c)(2)(A) shall apply with respect to any loan made under 
section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) for 
which the application is received by an eligible lender on or after 
July 1, 2006.
    (e) Conforming Amendments to Direct Loan Program.--Section 455 (20 
U.S.C. 1087e) is amended
            (1) in subsection (a)(1) by inserting ``428C,'' after 
        ``428B,'';
            (2) in subsection (a)(2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) section 428C shall be known as `Federal 
                Direct Consolidation Loans'; and ''; and
            (3) in subsection (g)--
                    (A) by striking the second sentence; and
                    (B) by adding at the end the following new 
                sentences: ``To be eligible for a consolidation loan 
                under this part, a borrower must meet the eligibility 
                criteria set forth in section 428C(a)(3). The 
                Secretary, upon application for such a loan, shall 
                comply with the requirements applicable to a lender 
                under section 428C(b)(1)(F).''.

SEC. 426. DEFERMENT OF STUDENT LOANS FOR MILITARY SERVICE.

    (a) Federal Family Education Loans.--Section 428(b)(1)(M) (20 
U.S.C. 1078(b)(1)(M)) is amended--
            (1) by striking ``or'' at the end of clause (ii);
            (2) by redesignating clause (iii) as clause (iv); and
            (3) by inserting after clause (ii) the following new 
        clause:
                            ``(iii) not in excess of 3 years during 
                        which the borrower--
                                    ``(I) is serving on active duty 
                                during a war or other military 
                                operation or national emergency; or
                                    ``(II) is performing qualifying 
                                National Guard duty during a war or 
                                other military operation or national 
                                emergency; or''.
    (b) Direct Loans.--Section 455(f)(2) (20 U.S.C. 1087e(f)(2)) is 
amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) not in excess of 3 years during which the 
                borrower--
                            ``(i) is serving on active duty during a 
                        war or other military operation or national 
                        emergency; or
                            ``(ii) is performing qualifying National 
                        Guard duty during a war or other military 
                        operation or national emergency; or''.
    (c) Perkins Loans.--Section 464(c)(2)(A) (20 U.S.C. 
1087dd(c)(2)(A)) is amended--
            (1) by redesignating clauses (iii) and (iv) as clauses (iv) 
        and (v), respectively; and
            (2) by inserting after clause (ii) the following new 
        clause:
            ``(iii) not in excess of 3 years during which the 
        borrower--
                    ``(I) is serving on active duty during a war or 
                other military operation or national emergency; or
                    ``(II) is performing qualifying National Guard duty 
                during a war or other military operation or national 
                emergency;''.
    (d) Definitions.--Section 481 (20 U.S.C. 1088) is amended by adding 
at the end the following new subsection:
    ``(d) Definitions for Military Deferments.--For purposes of parts 
B, D, and E of this title:
            ``(1) Active duty.--The term `active duty' has the meaning 
        given such term in section 101(d)(1) of title 10, United States 
        Code, except that such term does not include active duty for 
        training or attendance at a service school.
            ``(2) Military operation.--The term `military operation' 
        means a contingency operation as such term is defined in 
        section 101(a)(13) of title 10, United States Code.
            ``(3) National emergency.--The term `national emergency' 
        means the national emergency by reason of certain terrorist 
        attacks declared by the President on September 14, 2001, or 
        subsequent national emergencies declared by the President by 
        reason of terrorist attacks.
            ``(4) Serving on active duty.--The term `serving on active 
        duty during a war or other military operation or national 
        emergency' means service by an individual who is--
                    ``(A) a Reserve of an Armed Force ordered to active 
                duty under section 12301(a), 12301(g), 12302, 12304, or 
                12306 of title 10, United States Code, or any retired 
                member of an Armed Force ordered to active duty under 
                section 688 of such title, for service in connection 
                with a war or other military operation or national 
                emergency, regardless of the location at which such 
                active duty service is performed; and
                    ``(B) any other member of an Armed Force on active 
                duty in connection with such emergency or subsequent 
                actions or conditions who has been assigned to a duty 
                station at a location other than the location at which 
                such member is normally assigned.
            ``(5) Qualifying national guard duty.--The term `qualifying 
        National Guard duty during a war or other military operation or 
        national emergency' means service as a member of the National 
        Guard on full-time National Guard duty (as defined in section 
        101(d)(5) of title 10, United States Code) under a call to 
        active service authorized by the President or the Secretary of 
        Defense for a period of more than 30 consecutive days under 
        section 502(f) of title 32, United States Code, in connection 
        with a war, other military operation, or a national emergency 
        declared by the President and supported by Federal funds.''.
    (e) Rule of Construction.--Nothing in the amendments made by this 
section shall be construed to authorize any refunding of any repayment 
of a loan.
    (f) Effective Date.--The amendments made by this section shall 
apply with respect to loans for which the first disbursement is made on 
or after July 1, 1993, to an individual who is a new borrower (within 
the meaning of section 103 of the Higher Education Act of 1965 (20 
U.S.C. 1003)) on or after such date.

SEC. 427. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

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

``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to encourage highly trained individuals to enter and 
        continue in service in areas of national need; and
            ``(2) to reduce the burden of student debt for Americans 
        who dedicate their careers to service in areas of national 
        need.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to carry out 
        a program of assuming the obligation to repay, pursuant to 
        paragraphs (2) of subsection (c) and subsection (d), a 
        qualified loan amount for a loan made, insured, or guaranteed 
        under this part or part D (other than loans made under section 
        428B and 428C and comparable loans made under part D), for any 
        new borrower after the date of enactment of the College Access 
        and Opportunity Act of 2005, who--
                    ``(A) has been employed full-time for at least 5 
                consecutive complete school, academic, or calendar 
                years, as appropriate, in an area of national need 
                described in subsection (c); and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Award basis.--Loan repayment under this section shall 
        be on a first-come, first-served basis pursuant to the 
        designation under subsection (c) and subject to the 
        availability of appropriations.
            ``(3) Regulations.--The Secretary is authorized to issue 
        such regulations as may be necessary to carry out the 
        provisions of this section.
    ``(c) Areas of National Need.--
            ``(1) Statutory categories.--For purposes of this section, 
        an individual shall be treated as employed in an area of 
        national need if the individual is employed full time and is 
        any of the following:
                    ``(A) Early childhood educators.--An individual who 
                is employed as an early childhood educator in an 
                eligible preschool program or child care facility in a 
                low-income community, and who is involved directly in 
                the care, development and education of infants, 
                toddlers, or young children through age five.
                    ``(B) Nurses.--An individual who is employed--
                            ``(i) as a nurse 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)).
                    ``(C) Foreign language specialists.--An individual 
                who has obtained a baccalaureate degree in a critical 
                foreign language and is employed--
                            ``(i) in an elementary or secondary school 
                        as a teacher of a critical foreign language; or
                            ``(ii) in an agency of the United States 
                        Government in a position that regularly 
                        requires the use of such critical foreign 
                        language.
                    ``(D) Librarians.--An individual who is employed 
                full-time as a libarian in--
                            ``(i) a public library that serves a 
                        geographic area within which the public schools 
                        have a combined average of 30 percent or more 
                        of their total student enrollments composed of 
                        children counted under section 1113(a)(5) of 
                        the Elementary and Secondary Education Act of 
                        1965; or
                            ``(ii) an 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 30 percent of the total enrollment of 
                        that school.
                    ``(E) Highly qualified teachers: bilingual 
                education and low-income communities.--An individual 
                who--
                            ``(i) is highly qualified as such term is 
                        defined in section 9101 of the Elementary and 
                        Secondary Education Act of 1965; and
                            ``(ii)(I) is employed as a full-time 
                        teacher of bilingual education; or
                            ``(II) is employed 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.
                    ``(F) First responders in low-income communities.--
                An individual who--
                            ``(i) is employed as a firefighter, police 
                        officer, or emergency medical technician; and
                            ``(ii) serves as such in a low-income 
                        community.
                    ``(G) Child welfare workers.--An individual who--
                            ``(i) has obtained a degree in social work 
                        or a related field with a focus on serving 
                        children and families; and
                            ``(ii) is employed in public or private 
                        child welfare services.
                    ``(H) Speech-language pathologists.--An individual 
                who is a speech-language pathologist, who is employed 
                in an eligible preschool program or an elementary or 
                secondary school, and who has, at a minimum, a graduate 
                degree in speech-language pathology, or communication 
                sciences and disorders.
                    ``(I) Additional areas of national need.--An 
                individual who is employed in an area designated by the 
                Secretary under paragraph (2) and has completed a 
                baccalaureate or advanced degree related to such area.
            ``(2) Designation of areas of national need.--After 
        consultation with appropriate Federal, State, and community-
        based agencies and organizations, the Secretary shall designate 
        areas of national need. In making such designations, the 
        Secretary shall take into account the extent to which--
                    ``(A) the national interest in the area is 
                compelling;
                    ``(B) the area suffers from a critical lack of 
                qualified personnel; and
                    ``(C) other Federal programs support the area 
                concerned.
    ``(d) Qualified Loan Amount.--The Secretary shall repay not more 
than $5,000 in the aggregate of the loan obligation on a loan made 
under section 428 or 428H that is outstanding after the completion of 
the fifth consecutive school, academic, or calendar year, as 
appropriate, described in subsection (b)(1).
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize the refunding of any repayment of a loan made under section 
428 or 428H.
    ``(f) 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.).
    ``(g) Ineligibility for Double Benefits.--No borrower may receive a 
reduction of loan obligations under both this section and section 428J 
or 460.
    ``(h) Definitions.--In this section
            ``(1) Child care facility.--The term `child care facility' 
        means a facility, including a home, that--
                    ``(A) provides for the education and care of 
                children from birth through age 5; and
                    ``(B) meets any applicable State or local 
                government licensing, certification, approval, or 
                registration requirements.
            ``(2) Critical foreign language.--The term `critical 
        foreign language' includes the languages of Arabic, Korean, 
        Japanese, Chinese, Pashto, Persian-Farsi, Serbian-Croatian, 
        Russian, Portuguese, and any other language identified by the 
        Secretary of Education, in consultation with the Defense 
        Language Institute, the Foreign Service Institute, and the 
        National Security Education Program, as a critical foreign 
        language need.
            ``(3) Early childhood educator.--The term `early childhood 
        educator' means an early childhood educator employed in an 
        eligible preschool program who has completed a baccalaureate or 
        advanced degree in early childhood development, early childhood 
        education, or in a field related to early childhood education.
            ``(4) Eligible preschool program.--The term `eligible 
        preschool program' means a program that provides for the care, 
        development, and education of infants, toddlers, or young 
        children through age 5, meets any applicable State or local 
        government licensing, certification, approval, and registration 
        requirements, and is operated by--
                    ``(A) a public or private school that may be 
                supported, sponsored, supervised, or administered by a 
                local educational agency;
                    ``(B) a Head Start agency serving as a grantee 
                designated under the Head Start Act (42 U.S.C. 9831 et 
                seq.);
                    ``(C) a nonprofit or community based organization; 
                or
                    ``(D) a child care program, including a home.
            ``(5) 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.
            ``(6) Nurse.--The term `nurse' means a nurse who meets all 
        of the following:
                    ``(A) The nurse graduated from--
                            ``(i) an accredited school of nursing (as 
                        those terms are defined in section 801 of the 
                        Public Health Service Act (42 U.S.C. 296));
                            ``(ii) a nursing center; or
                            ``(iii) an academic health center that 
                        provides nurse training.
                    ``(B) The nurse holds a valid and unrestricted 
                license to practice nursing in the State in which the 
                nurse practices in a clinical setting.
                    ``(C) The nurse holds one or more of the following:
                            ``(i) A graduate degree in nursing, or an 
                        equivalent degree.
                            ``(ii) A nursing degree from a collegiate 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
                            ``(iii) A nursing degree from an associate 
                        degree school of nursing (as defined in 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) Speech-language pathologist.--The term `speech-
        language pathologist' means a speech-language pathologist who 
        meets all of the following:
                    ``(A) the speech-language pathologist has received, 
                at a minimum, a graduate degree in speech-language 
                pathology or communication sciences and disorders from 
                an institution of higher education accredited by an 
                agency or association recognized by the Secretary 
                pursuant to section 496(a) of this Act; and
                    ``(B) the speech-language pathologist meets or 
                exceeds the qualifications as defined in section 
                1861(ll) of the Social Security Act (42 U.S.C. 1395x).
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2006 and such sums as may be necessary for each of the 
5 succeeding fiscal years.''.

SEC. 428. UNSUBSIDIZED STAFFORD LOANS.

    (a) Amendment.--Section 428H(d)(2)(C) (20 U.S.C. 1078-8(d)(2)(C)) 
is amended by striking ``$10,000'' and inserting ``$12,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to loans for which the first disbursement of principal is made on 
or after July 1, 2007.

SEC. 429. ELIMINATION OF TERMINATION DATES FROM TAXPAYER-TEACHER 
              PROTECTION ACT OF 2004.

    (a) Extension of Limitations on Special Allowance for Loans From 
the Proceeds of Tax Exempt Issues.--Section 438(b)(2)(B) (20 U.S.C. 
1087-1(b)(2)(B)) is amended--
            (1) in clause (iv), by striking ``and before January 1, 
        2006,''; and
            (2) in clause (v)(II)--
                    (A) by striking ``and before January 1, 2006,'' 
                each place it appears in divisions (aa) and (bb); and
                    (B) by striking ``, and before January 1, 2006'' in 
                division (cc).
    (b) Additional Limitation on Special Allowance for Loans From the 
Proceeds of Tax Exempt Issues.--Section 438(b)(2)(B) (20 U.S.C 1087-
1(b)(2)(B)) is further amended by adding at the end thereof the 
following new clause:
            ``(vi) Notwithstanding clauses (i), (ii), and (v), the 
        quarterly rate of the special allowance shall be the rate 
        determined under subparagraph (A), (E), (F), (G), (H), or (I) 
        of this paragraph, as the case may be, for a holder of loans--
                    ``(I) that were made or purchased on or after 
                October 1, 2005; or
                    ``(II) that were not earning a quarterly rate of 
                special allowance determined under clauses (i) or (ii) 
                of subparagraph (B) of this paragraph (20 U.S.C. 1087-
                1(b)(2)(b)) as of October 1, 2005.''.
    (c) Elimination of Effective Date Limitation on Higher Teacher Loan 
Forgiveness Benefits.--Paragraph (3) of section 3(b) of the Taxpayer-
Teacher Protection Act of 2004 (20 U.S.C. 1078-10, note) is repealed.
    (d) Additional Changes to Teacher Loan Forgiveness Provisions.--
            (1) FFEL provisions.--Section 428J (20 U.S.C. 1078-10) is 
        amended--
                    (A) in subsection (b)(1)(B), by inserting after 
                ``1965'' the following: ``, or meets the requirements 
                of subsection (g)(3)'';
                    (B) in subsection (c)(3)--
                            (i) by striking ``and'' at the end of 
                        subparagraph (A);
                            (ii) by striking the period at the end of 
                        subparagraph (B) and inserting ``; and''; and
                            (iii) by inserting after subparagraph (B) 
                        the following new subparagraph:
                    ``(C) an elementary or secondary school teacher who 
                primarily teaches reading--
                            ``(i) who meets the requirements of 
                        subsection (b);
                            ``(ii) who has obtained a separate reading 
                        instruction credential from the State in which 
                        the teacher is employed; and
                            ``(iii) who is certified by the chief 
                        administrative officer of the public or 
                        nonprofit private elementary or secondary 
                        school in which the borrower is employed to 
                        teach reading--
                                    ``(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.''; and
                    (C) in subsection (g), by adding at the end the 
                following new paragraph:
            ``(3) Private school teachers.--An individual who is 
        employed as a teacher in a private school and is exempt from 
        State certification requirements (unless otherwise applicable 
        under State law), may, in lieu of the requirement of subsection 
        (a)(1)(B), have such employment treated as qualifying 
        employment under this section if such individual is permitted 
        to and does satisfy rigorous subject knowledge and skills tests 
        by taking competency tests in the applicable grade levels and 
        subject areas. For such purposes, the competency tests taken by 
        such a private school teacher must be recognized by 5 or more 
        States for the purpose of fulfilling the highly qualified 
        teacher requirements under section 9101 of the Elementary and 
        Secondary Education Act of 1965, and the score achieved by such 
        teacher on each test must equal or exceed the average passing 
        score of those 5 States.''.
            (2) Direct loan provisions.--Section 460 (20 U.S.C. 1087j) 
        is amended--
                    (A) in subsection (b)(1)(A)(ii), by inserting after 
                ``1965'' the following: ``, or meets the requirements 
                of subsection (g)(3)'';
                    (B) in subsection (c)(3)--
                            (i) by striking ``and'' at the end of 
                        subparagraph (A);
                            (ii) by striking the period at the end of 
                        subparagraph (B) and inserting ``; and''; and
                            (iii) by inserting after subparagraph (B) 
                        the following new subparagraph:
                    ``(C) an elementary or secondary school teacher who 
                primarily teaches reading--
                            ``(i) who meets the requirements of 
                        subsection (b);
                            ``(ii) who has obtained a separate reading 
                        instruction credential from the State in which 
                        the teacher is employed; and
                            ``(iii) who is certified by the chief 
                        administrative officer of the public or 
                        nonprofit private elementary or secondary 
                        school in which the borrower is employed to 
                        teach reading--
                                    ``(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.''; and
                    (C) in subsection (g), by adding at the end the 
                following new paragraph:
            ``(3) Private school teachers.--An individual who is 
        employed as a teacher in a private school and is exempt from 
        State certification requirements (unless otherwise applicable 
        under State law), may, in lieu of the requirement of subsection 
        (a)(1)(A)(ii), have such employment treated as qualifying 
        employment under this section if such individual is permitted 
        to and does satisfy rigorous subject knowledge and skills tests 
        by taking competency tests in the applicable grade levels and 
        subject areas. For such purposes, the competency tests taken by 
        such a private school teacher must be recognized by 5 or more 
        States for the purpose of fulfilling the highly qualified 
        teacher requirements under section 9101 of the Elementary and 
        Secondary Education Act of 1965, and the score achieved by such 
        teacher on each test must equal or exceed the average passing 
        score of those 5 States.''.

SEC. 430. ADDITIONAL ADMINISTRATIVE PROVISIONS.

    (a) Treatment of Exempt Claims.--
            (1) Insurance coverage.--Section 428(b)(1)(G) (20 U.S.C. 
        1078(b)(1)(G)) is amended by inserting before the semicolon at 
        the end the following: ``and 100 percent of the unpaid 
        principal amount of exempt claims as defined in subsection 
        (c)(1)(G)''.
            (2) Treatment.--Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is 
        amended--
                    (A) by redesignating subparagraph (G) as 
                subparagraph (I), and moving such subparagraph 2 em 
                spaces to the left; and
                    (B) by inserting after subparagraph (F) the 
                following new subparagraph:
            ``(G)(i) Notwithstanding any other provisions of this 
        section, in the case of exempt claims, the Secretary shall 
        apply the provisions of--
                    ``(I) the fourth sentence of subparagraph (A) by 
                substituting `100 percent' for `95 percent';
                    ``(II) subparagraph (B)(i) by substituting `100 
                percent' for `85 percent'; and
                    ``(III) subparagraph (B)(ii) by substituting `100 
                percent' for `75 percent'.
            ``(ii) For purposes of clause (i) of this subparagraph, the 
        term `exempt claims' means claims with respect to loans for 
        which it is determined that the borrower (or the student on 
        whose behalf a parent has borrowed), without the lender's or 
        the institution's knowledge at the time the loan was made, 
        provided false or erroneous information or took actions that 
        caused the borrower or the student to be ineligible for all or 
        a portion of the loan or for interest benefits thereon.''.
    (b) Reduction of Insurance/Reinsurance Percentage.--
            (1) Insurance percentage reduction.--Section 428(b)(1)(G) 
        as amended by subsection (a)(1) is further amended by inserting 
        after the matter inserted by such subsection the following: ``, 
        except, for any loan for which the first disbursement of 
        principal is made on or after July 1, 2006, the preceding 
        provisions of this subparagraph shall be applied by 
        substituting `96 percent' for `98 percent'''.
            (2) Reinsurance percentage reduction.--Section 428(c)(1) as 
        amended by subsection (a)(2) is further amended by adding after 
        subparagraph (G) as added by such subsection the following new 
        subparagraph:
            ``(H) Notwithstanding subparagraphs (A) and (B), but 
        subject to subparagraphs (E) and (F), in the case of a loan for 
        which the first disbursement of principal is made on or after 
        July 1, 2006, the Secretary shall apply--
                    ``(i) the fourth sentence of subparagraph (A) by 
                substituting `93 percent' for `95 percent';
                    ``(ii) subparagraph (B)(i) by substituting `83 
                percent' for `85 percent'; and
                    ``(iii) subparagraph (B)(ii) by substituting `73 
                percent' for `75 percent'.''.
            (3) Increase insurance for exceptional performance.--
        Section 428I (20 U.S.C. 1078-9) is amended to read as follows:

``SEC. 428I. SPECIAL INSURANCE AND REINSURANCE RULES FOR EXCEPTIONAL 
              PERFORMANCE.

    ``(a) Designation of Lenders and Servicers.--
            ``(1) In general.--Whenever the Secretary determines that 
        an eligible lender or servicer meets the performance measures 
        required by paragraph (2), the Secretary shall designate that 
        eligible lender or servicer, as the case may be, for 
        exceptional performance. The Secretary shall notify each 
        appropriate guaranty agency of the eligible lenders and 
        servicers designated under this section.
            ``(2) Performance measures.--
                    ``(A) In determining whether to award a lender or 
                servicer the exceptional performance designation, the 
                Secretary shall require that the lender or servicer be 
                performing at or above the 95 percentile of the 
                industry, and demonstrate improved performance against 
                the lender's or service's average of the last 3 years 
                on the factors described in subparagraph (B).
                    ``(B) The factors on which the Secretary shall 
                require improvement shall include--
                            ``(i) delinquency rates;
                            ``(ii) the rate at which delinquent 
                        accounts are restored to good standing;
                            ``(iii) default rates;
                            ``(iv) the rate of rejected claims; and
                            ``(v) any other such measures as determined 
                        by the Secretary.
                    ``(C) In addition, the Secretary shall not make any 
                award of such a designation unless the consequence of 
                the designation is cost-neutral to the Federal 
                Government.
            ``(3) Additional information on lenders and servicers.--
        Each appropriate guaranty agency shall provide the Secretary 
        with such other information in its possession regarding an 
        eligible lender or servicer desiring designation as may relate 
        to the Secretary's determination under paragraph (1), including 
        but not limited to any information suggesting that the 
        application of a lender or servicer for designation should not 
        be approved.
            ``(4) Determinations by the secretary.--
                    ``(A) The Secretary shall designate an eligible 
                lender or servicer for exceptional performance if the 
                eligible lender or servicer meets the performance 
                measures required by paragraph (2).
                    ``(B) The Secretary shall make the determination 
                under paragraph (1) based upon the documentation 
                submitted by the eligible lender or servicer as 
                specified in regulation, such other information as 
                provided by any guaranty agency under paragraph (3), 
                and any information in the possession of the Secretary 
                or submitted by any other agency or office of the 
                Federal Government.
                    ``(C) The Secretary shall inform the eligible 
                lender or servicer and the appropriate guaranty agency 
                that its application for designation as an exceptional 
                performance lender or servicer has been approved or 
                disapproved.
            ``(5) Transition.--
                    ``(A) Any eligible lender or servicer designated 
                for exceptional performance as of the day before the 
                date of enactment of the College Access and Opportunity 
                Act of 2005 shall continue to be so designated, and 
                subject to the requirements of this section as in 
                effect on that day (including revocation), until the 
                performance standards described in paragraph (2) are 
                established.
                    ``(B) The Secretary shall not designate any 
                additional eligible lenders or servicers for 
                exceptional performance until those performance 
                standards are established.
    ``(b) Payment to Lenders and Servicers.--A guaranty agency shall 
pay, to each eligible lender or servicer (as agent for an eligible 
lender) designated under subsection (a), 98 percent of the unpaid 
principal and interest of all loans for which claims are submitted for 
payment by that eligible lender or servicer for the one-year period 
following the receipt by the guaranty agency of the notification of 
designation under this section, or until the guaranty agency receives 
notice from the Secretary that the designation of the lender or 
servicer under subsection (a)(2) has been revoked.
    ``(c) Revocation Authority.--
            ``(1) The Secretary shall revoke the designation of a 
        lender or a servicer under subsection (a) if the Secretary 
        determines that the lender or servicer has failed to meet the 
        performance standards required by subsection (a)(2).
            ``(2) Notwithstanding any other provision of this section, 
        a designation under subsection (a) may be revoked at any time 
        by the Secretary, in the Secretary's discretion, if the 
        Secretary determines that the eligible lender or servicer has 
        failed to meet the criteria and performance standards 
        established by the Secretary in regulation, or if the Secretary 
        believes the lender or servicer may have engaged in fraud in 
        securing designation under subsection (a), or is failing to 
        service loans in accordance with program regulations.
    ``(d) Documentation.--Nothing in this section shall restrict or 
limit the authority of guaranty agencies to require the submission of 
claims documentation evidencing servicing performed on loans, except 
that the guaranty agency may not require greater documentation than 
that required for lenders and servicers not designated under subsection 
(a).
    ``(e) Special Rule.--Reimbursements made by the Secretary on loans 
submitted for claim by an eligible lender or loan servicer designated 
for exceptional performance under this section shall not be subject to 
additional review by the Secretary or repurchase by the guaranty agency 
for any reason other than a determination by the Secretary that the 
eligible lender or loan servicer engaged in fraud or other purposeful 
misconduct in obtaining designation for exceptional performance.
    ``(f) Limitation.--Nothing in this section shall be construed to 
affect the processing of claims on student loans of eligible lenders 
not subject to this section.
    ``(g) Claims.--A lender or servicer designated under subsection (a) 
failing to service loans or otherwise comply with applicable program 
regulations shall be considered in violation of section 3729 of title 
31, United States Code.
    ``(h) Termination.--The Secretary may terminate the designation of 
lenders and servicers under this section if he determines that 
termination would be in the fiscal interest of the United States.
    ``(i) Definitions.--As used in this section--
            ``(1) the term `eligible loan' means a loan made, insured, 
        or guaranteed under this part; and
            ``(2) the term `servicer' means an entity servicing and 
        collecting student loans that--
                    ``(A) has substantial experience in servicing and 
                collecting consumer loans or student loans;
                    ``(B) has an independent financial audit annually 
                which is furnished to the Secretary and any other 
                parties designated by the Secretary;
                    ``(C) has business systems which are capable of 
                meeting the requirements of this part;
                    ``(D) has adequate personnel who are knowledgeable 
                about the student loan programs authorized by this 
                part; and
                    ``(E) does not have any owner, majority 
                shareholder, director, or officer of the entity who has 
                been convicted of a felony.''.
            (4) Effective date of amendments.--The amendments made by 
        this subsection shall apply with respect to loans for which the 
        first disbursement of principal is made on or after July 1, 
        2006.
    (c) Documentation of Forbearance Agreements.--Section 428(c) (20 
U.S.C. 1078(c)) is further amended--
            (1) in paragraph (3)(A)(i), by striking ``in writing''; and
            (2) by adding at the end the following new paragraph:
            ``(10) Documentation of forbearance agreements.--For the 
        purposes of paragraph (3), the terms of forbearance agreed to 
        by the parties shall be documented by confirming the agreement 
        of the borrower by notice to the borrower from the lender, and 
        by recording the terms in the borrower's file.''.
    (d) Consolidation of Defaulted Loans.--Section 428(c) (20 U.S.C. 
1078(c)) is further amended--
            (1) in paragraph (2)(A)--
                    (A) by inserting ``(i)'' after ``including''; and
                    (B) by inserting before the semicolon at the end 
                the following: ``and (ii) requirements establishing 
                procedures to preclude consolidation lending from being 
                an excessive proportion of guaranty agency recoveries 
                on defaulted loans under this part'';
            (2) in paragraph (2)(D), by striking ``paragraph (6)'' and 
        inserting ``paragraph (6)(A)''; and
            (3) in paragraph (6)--
                    (A) by inserting ``(A)'' before ``For the purpose 
                of paragraph (2)(D),'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively; and
                    (C) by adding at the end the following new 
                subparagraphs:
    ``(B) A guaranty agency shall--
            ``(i) on or after October 1, 2006--
                    ``(I) not charge the borrower collection costs in 
                an amount in excess of 18.5 percent of the outstanding 
                principal and interest of a defaulted loan that is paid 
                off through consolidation by the borrower under this 
                title; and
                    ``(II) remit to the Secretary a portion of the 
                collection charge under subclause (I) equal to 8.5 
                percent of the outstanding principal and interest of 
                such defaulted loan; and
            ``(ii) on and after October 1, 2009, remit to the Secretary 
        the entire amount charged under clause (i)(I) with respect to 
        each defaulted loan that is paid off with excess consolidation 
        proceeds.
    ``(C) For purposes of subparagraph (B), the term `excess 
consolidation proceeds' means, with respect to any guaranty agency for 
any Federal fiscal year beginning on or after October 1, 2009, the 
proceeds of consolidation of defaulted loans under this title that 
exceed 45 percent of the agency's total collections on defaulted loans 
in such Federal fiscal year.''.
    (e) Voluntary Flexible Agreements.--Section 428A (20 U.S.C. 1078-1) 
is amended--
            (1) in subsection (a)(1)(B), by striking ``unless the 
        Secretary'' and all that follows through ``designated 
        guarantor'';
            (2) by striking paragraph (2) of subsection (a);
            (3) in paragraph (4)(B) of subsection (a), by striking 
        ``and any waivers provided to other guaranty agencies under 
        paragraph (2)'';
            (4) by redesignating paragraphs (3) and (4) of subsection 
        (a) as paragraphs (2) and (3), respectively; and
            (5) by striking paragraph (3) of subsection (c) and 
        inserting the following:
            ``(3) Notice to interested parties.--Once the Secretary 
        reaches a tentative agreement in principle under this section, 
        the Secretary shall publish in the Federal Register a notice 
        that invites interested parties to comment on the proposed 
        agreement. The notice shall state how to obtain a copy of the 
        tentative agreement in principle and shall give interested 
        parties no less than 30 days to provide comments. The Secretary 
        may consider such comments prior to providing the notices 
        pursuant to paragraph (2).''.
    (f) Fraud: Repayment Required.--Section 428B(a)(1) (20 U.S.C. 1078-
2(a)(1)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) if either of the parents has been convicted 
                of, or has pled nolo contendere or guilty to, a crime 
                involving fraud in obtaining funds under this title, 
                such parent has completed the repayment of such funds 
                to the Secretary, or to the holder in the case of a 
                loan under this title obtained by fraud.''.
    (g) Default Reduction Program.--Section 428F(a)(1) (20 U.S.C. 1078-
6(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``consecutive payments 
        for 12 months'' and inserting ``9 payments made within 20 days 
        of the due date during 10 consecutive months'';
            (2) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) A guaranty agency may charge the borrower and 
                retain collection costs in an amount not to exceed 18.5 
                percent of the outstanding principal and interest at 
                the time of sale of a loan rehabilitated under 
                subparagraph (A).''.
    (h) Financial and Economic Literacy.--
            (1) Default reduction program.--Section 428F is further 
        amended by adding at the end the following:
    ``(c) Financial and Economic Literacy.--Where appropriate, each 
program described under subsection (b) shall include making available 
financial and economic education materials for the borrower.''.
            (2) Program assistance for borrowers.--Section 432(k)(1) 
        (20 U.S.C. 1082(k)(1)) is amended by striking ``and offering'' 
        and all that follows through the period and inserting ``, 
        offering loan repayment matching provisions as part of employee 
        benefit packages, and providing employees with financial and 
        economic education and counseling.''.
    (i) Credit Bureau Organization Agreements.--Section 430A(a) (20 
U.S.C. 1080a(a)) is amended by striking ``agreements with credit bureau 
organizations'' and inserting ``an agreement with each national credit 
bureau organization (as described in section 603(p) of the Fair Credit 
Reporting Act)''.
    (j) Uniform Administrative and Claims Procedure.--Section 
432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting ``and 
anticipated graduation date'' after ``status change''.
    (k) Default Reduction Management.--Section 432 is further amended--
            (1) by striking subsection (n); and
            (2) by redesignating subsections (o) and (p) as subsections 
        (n) and (o), respectively.
    (l) Schools as Lenders.--Paragraph (2) of section 435(d) (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 not--
                                    ``(I) make a loan to any 
                                undergraduate student;
                                    ``(II) make a loan other than a 
                                loan under section 428 or 428H to a 
                                graduate or professional student; or
                                    ``(III) make a loan to a borrower 
                                who is not enrolled at that 
                                institution;
                            ``(iv) shall award any contract for 
                        financing, servicing, or administration of 
                        loans under this title on a competitive basis;
                            ``(v) shall offer loans which carry an 
                        origination fee or an interest rate, or both, 
                        that are less than such fee or rate authorized 
                        under the provisions of this title;
                            ``(vi) shall not have a cohort default rate 
                        (as defined in section 435(m)) greater than 10 
                        percent;
                            ``(vii) 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; and
                            ``(viii) shall use any proceeds from 
                        special allowance payments and interest 
                        payments from borrowers, interest subsidies 
                        received from the Department of Education, and 
                        any proceeds from the sale or other disposition 
                        of loans, for need-based grant programs.
                    ``(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.''.
    (m) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a)) 
is amended by adding at the end the following new sentence: ``In making 
such determination of permanent and total disability, the Secretary 
shall provide that a borrower who has been certified as permanently and 
totally disabled by the Department of Veterans Affairs or the Social 
Security Administration shall not be required to present further 
documentation for purposes of this title.''.
    (n) Treatment of Falsely Certified Borrowers.--Section 437(c)(1) 
(20 U.S.C. 1087(c)(1)) is amended by inserting ``or parent's 
eligibility'' after ``such student's eligibility''.
    (o) Perfection of Security Interests.--Section 439(d) (20 U.S.C. 
1087-2(d)) is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively.
    (p) Additional Technical Amendments.--
            (1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is 
        amended--
                    (A) by striking ``and'' at the end of subclause 
                (II) of clause (i); and
                    (B) by moving the margin of clause (iii) two ems to 
                the left.
            (2) Section 428(a)(3)(A)(v) (20 U.S.C. 1078(a)(3)(A)(v)) is 
        amended--
                    (A) by striking ``or'' at the end of subclause (I);
                    (B) by striking the period at the end of subclause 
                (II) and inserting ``; or''; and
                    (C) by adding after subclause (II) the following 
                new subclause:
                    ``(III) in the case of a loan disbursed through an 
                escrow agent, 3 days before the first disbursement of 
                the loan.''.
            (3) Section 428(c)(1)(A) (20 U.S.C. 1078(c)(1)(A)) is 
        amended by striking ``45 days'' in the last sentence and 
        inserting ``30 days''.
            (4) Section 428(i)(1) (20 U.S.C. 1078(i)(1)) is amended by 
        striking ``21 days'' in the third sentence and inserting ``10 
        days''.
            (5) Section 428G(e) (20 U.S.C. 1078-7(e)) is amended by 
        striking ``, made to a student to cover the cost of attendance 
        at an eligible institution outside the United States,''.
            (6) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended by 
        striking paragraph (6) and inserting the following:
            ``(6) Time limits on billing interest.--A lender may not 
        receive interest on a loan under this section from a borrower 
        for any period that precedes the dates described in section 
        428(a)(3)(A)(v).''.
            (7) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is 
        amended--
                    (A) in clause (i), by inserting ``and'' after the 
                semicolon at the end; and
                    (B) in clause (ii), by striking ``; and'' and 
                inserting a period.
            (8) Section 438(b)(4)(B) (20 U.S.C. 1087-1(b)(4)(B)) is 
        amended by striking ``shall be computed'' and all that follows 
        through ``to the loan'' and inserting ``described in 
        subparagraph (A) shall be computed using the interest rate 
        described in section 3902(a) of title 31, United States 
        Code,''.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    Section 441(b) (42 U.S.C. 2751(b)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 442. COMMUNITY SERVICE.

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

SEC. 443. ALLOCATION OF FUNDS.

    (a) Phaseout of Allocation Based on Previous Allocations.--
Subsection (a) of section 442 (42 U.S.C. 2752(a)) is amended to read as 
follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 441(b) for each fiscal year after fiscal 
        year 2007, the Secretary shall, subject to paragraph (2), first 
        allocate to each eligible institution an amount equal to the 
        following percentage of the amount such institution received 
        under subsection (a) of this section for fiscal year 2007 (as 
        such subsection was in effect with respect to allocations for 
        such fiscal year):
                    ``(A) 80 percent for fiscal years 2008 and 2009;
                    ``(B) 60 percent for fiscal years 2010 and 2011;
                    ``(C) 40 percent for fiscal years 2012 and 2013;
                    ``(D) 20 percent for fiscal years 2014 and 2015; 
                and
                    ``(E) 0 percent for fiscal year 2016 and any 
                succeeding fiscal year.
            ``(2) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).
            ``(3) Additional allocations for certain institutions.--
                    ``(A) Allocations permitted.--Notwithstanding any 
                other provision of this section, the Secretary may 
                allocate an amount equal to not more than 10 percent of 
                the amount by which the amount appropriated in any 
                fiscal year to carry out this part exceeds $700,000,000 
                among eligible institutions described in subparagraph 
                (B).
                    ``(B) Eligible institutions.--An otherwise eligible 
                institution may receive a portion of the allocation 
                described in subparagraph (A) if--
                            ``(i) not less than 10 percent of the 
                        students attending the institution receive 
                        Federal Pell Grants; and
                            ``(ii)(I) in the case of an institution 
                        that offers programs of at least 4 years in 
                        duration, if its graduation rate for Federal 
                        Pell Grant recipients attending the institution 
                        and graduating within the period of time equal 
                        to normal duration of the longest undergraduate 
                        program offered by the institution, as measured 
                        from the first day of their enrollment, exceeds 
                        the median rate for the class of institution 
                        (as defined in section 131(f)(5)(C)); or
                            ``(II) in the case of an institution that 
                        offers programs of at least 2, but less than 4, 
                        years in duration, if its rate for Federal Pell 
                        Grant recipients attending the institution and 
                        graduating or transferring to an institution 
                        that offers programs of at least 4 years in 
                        duration within the period of time equal to the 
                        normal duration of the program offered, as 
                        measured from the first day of their 
                        enrollment, exceeds the median rate for the 
                        class of institution (as defined in section 
                        131(f)(5)(C)).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any amounts appropriated under section 441(b) of 
the Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 
2008 or any succeeding fiscal year.

SEC. 444. BOOKS AND SUPPLIES.

    Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by 
striking ``$450'' and inserting ``$600''.

SEC. 445. JOB LOCATION AND DEVELOPMENT.

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

SEC. 446. WORK COLLEGES.

    Section 448 (42 U.S.C. 2756b) is amended--
            (1) by striking ``work-learning'' each place it appears and 
        inserting ``work-learning-service'';
            (2) by amending subparagraph (C) of subsection (e)(1) to 
        read as follows:
                    ``(C) requires all resident students, including at 
                least one-half of all students who are enrolled on a 
                full-time basis, to participate in a comprehensive 
                work-learning-service program for at least 5 hours each 
                week, or at least 80 hours during each period of 
                enrollment, unless the student is engaged in an 
                institutionally organized or approved study abroad or 
                externship program; and'';
            (3) by amending paragraph (2) of subsection (e) to read as 
        follows:
            ``(2) the term `comprehensive student work-learning-service 
        program'--
                    ``(A) means a student work-learning-service program 
                that is an integral and stated part of the 
                institution's educational philosophy and program;
                    ``(B) requires participation of all resident 
                students for enrollment and graduation;
                    ``(C) includes learning objectives, evaluation, and 
                a record of work performance as part of the student's 
                college record;
                    ``(D) provides programmatic leadership by college 
                personnel at levels comparable to traditional academic 
                programs;
                    ``(E) recognizes the educational role of work-
                learning-service supervisors; and
                    ``(F) includes consequences for nonperformance or 
                failure in the work-learning-service program similar to 
                the consequences for failure in the regular academic 
                program.''; and
            (4) in subsection (f), by striking ``1999 and such sums as 
        may be necessary for each of the 4 succeeding fiscal years'' 
        and inserting ``2006 and such sums as may be necessary for the 
        5 succeeding fiscal years''.

                  PART D--FEDERAL DIRECT LOAN PROGRAM

SEC. 451. REAUTHORIZATION OF THE DIRECT LOAN PROGRAM.

    (a) Administrative Expenses.--Section 458(a)(1) (20 U.S.C. 
1087h(a)(1)) is amended by striking ``$617,000,000'' and all that 
follows through ``fiscal year 2003'' and inserting ``$820,000,000 in 
fiscal year 2006, $833,000,000 in fiscal year 2007, $847,000,000 in 
fiscal year 2008, $862,000,000 in fiscal year 2009, and $878,000,000 in 
fiscal year 2010, and $894,000,000 in fiscal year 2011''.
    (b) Calculation Basis.--Subsection (b) of section 458 (20 U.S.C. 
1087h(b)) is amended by striking ``shall be calculated--'' and all that 
follows through the end of such subsection and inserting ``shall be 
calculated on the basis of 0.10 percent of the original principal 
amount of outstanding loans on which insurance was issued under part 
B.''.
    (c) Special Rules: Fee Cap.--Section 458(c)(1) (20 U.S.C. 
1087h(c)(1)) is amended by striking subparagraphs (A) through (E) and 
inserting the following:
                    ``(A) for fiscal year 2006, shall not exceed 
                $220,000,000;
                    ``(B) for fiscal year 2007, shall not exceed 
                $233,000,000;
                    ``(C) for fiscal year 2008, shall not exceed 
                $247,000,000;
                    ``(D) for fiscal year 2009, shall not exceed 
                $262,000,000;
                    ``(E) for fiscal year 2010, shall not exceed 
                $278,000,000; and
                    ``(F) for fiscal year 2011, shall not exceed 
                $294,000,000.''.
    (d) Income Contingent Repayment.--Section 455(e)(2) (20 U.S.C. 
1087e(e)(2)) is amended by striking ``and files a Federal income tax 
return jointly with the borrower's spouse''.

                  PART E--FEDERAL PERKINS LOAN PROGRAM

SEC. 461. REAUTHORIZATION OF PROGRAM.

    (a) Program Authorization.--
            (1) Authorization of appropriations.--Section 461(b) (20 
        U.S.C. 1087aa(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``1999'' and inserting 
                        ``2006''; and
                            (ii) by striking ``4 succeeding'' and 
                        inserting ``5 succeeding''; and
                    (B) in paragraph (2), by striking ``2003'' each 
                place it appears and inserting ``2012''.
            (2) Federal capital contribution recovery.--Section 466 (20 
        U.S.C. 1087ff) is amended--
                    (A) by striking ``2004'' each place it appears in 
                subsections (a) and (c) and inserting ``2012''; and
                    (B) in subsection (a), by striking ``2003'' each 
                place it appears and inserting ``2011''.
    (b) Phaseout of Allocation Based on Previous Allocations.--
            (1) Amendment.--Subsection (a) of section 462 (20 U.S.C. 
        1087bb(a)) is amended to read as follows:
    ``(a) Allocation Based on Previous Allocation.--
            ``(1) Base guarantee.--From the amount appropriated 
        pursuant to section 461(b) for each fiscal year after fiscal 
        year 2007, the Secretary shall, subject to paragraphs (2) and 
        (3), first allocate to each eligible institution an amount 
        equal to--
                    ``(A) 100 percent of the amount such institution 
                received under subsection (a) of this section for 
                fiscal year 2007 (as such subsection was in effect with 
                respect to allocations for such fiscal year), 
                multiplied by
                    ``(B) the institution's default penalty, as 
                determined under subsection (e), except that if the 
                institution has a cohort default rate in excess of the 
                applicable maximum cohort default rate under subsection 
                (f), the institution may not receive an allocation 
                under this paragraph.
            ``(2) Phase out.--For each of the fiscal years after fiscal 
        year 2007, paragraph (1) shall be applied by substituting for 
        `100 percent':
                    ``(A) `80 percent' for fiscal years 2008 and 2009;
                    ``(B) `60 percent' for fiscal years 2010 and 2011;
                    ``(C) `40 percent' for fiscal years 2012 and 2013;
                    ``(D) `20 percent' for fiscal years 2014 and 2015; 
                and
                    ``(E) `0 percent' for fiscal year 2016 and any 
                succeeding fiscal year.
            ``(3) Ratable reductions for insufficient appropriations.--
                    ``(A) Reduction of base guarantee.--If the amount 
                appropriated for any fiscal year is less than the 
                amount required to be allocated to all institutions 
                under this subsection, then the amount of the 
                allocation to each such institution shall be ratably 
                reduced.
                    ``(B) Additional appropriations allocation.--If 
                additional amounts are appropriated for any such fiscal 
                year, such reduced amounts shall be increased on the 
                same basis as they were reduced (until the amount 
                allocated equals the amount required to be allocated 
                under this subsection).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any amounts appropriated under 
        section 461(b) of the Higher Education Act of 1965 (20 U.S.C. 
        1087bb(b)) for fiscal year 2008 or any succeeding fiscal year.
    (c) Books and Supplies.--Section 462(c)(4)(D) (20 U.S.C. 
1087bb(c)(4)(D)) is amended by striking ``$450'' and inserting 
``$600''.

SEC. 462. LOAN TERMS AND CONDITIONS.

    (a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a)) is amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``$4,000'' in clause (i) and 
                inserting ``$5,500''; and
                    (B) by striking ``$6,000'' in clause (ii) and 
                inserting ``$8,000''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``$40,000'' in clause (i) and 
                inserting ``$60,000'';
                    (B) by striking ``$20,000'' in clause (ii) and 
                inserting ``$27,500''; and
                    (C) by striking ``$8,000'' in clause (iii) and 
                inserting ``$11,000''.
    (b) Forbearance.--Section 464(e) (20 U.S.C. 1087dd(e)) is amended 
by striking ``, upon written request,''.
    (c) Special Repayment Rule.--Paragraph (2) of section 464(f) is 
amended to read as follows:
    ``(2) No compromise repayment of a defaulted loan as authorized by 
paragraph (1) may be made unless agreed to by the Secretary.''.
    (d) Rehabilitation.--Section 464(h)(1)(A) (20 U.S.C. 
1087dd(h)(1)(A)) is amended by striking ``12 ontime'' and inserting ``9 
on-time''.

SEC. 463. LOAN CANCELLATION.

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

SEC. 464. TECHNICAL AMENDMENTS.

    Part E is further amended as follows:
            (1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
        1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly'' 
        after ``consecutive''.
            (2) Section 463(a)(4)(A) (20 U.S.C. 1087cc(a)(4)(A)) is 
        amended by striking ``the Secretary may'' and inserting ``the 
        Secretary shall''.
            (3) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is 
        amended by redesignating subclauses (I) and (II) as clauses (i) 
        and (ii), respectively.
            (4) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended 
        in subparagraph (A), by striking ``section 111(c)'' and 
        inserting ``section 1113(a)(5)''.
            (5) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by 
        striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A), 
        (4)(B), or (5)''.
            (6) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
                    (A) by striking ``sections 602 and 632'' and 
                inserting ``sections 602(3) and 632(5)'';
                    (B) by striking ``qualified professional provider 
                of early intervention services'' and inserting ``early 
                intervention services''; and
                    (C) by striking ``section 672(2)'' and inserting 
                ``section 632(4)''.

                         PART F--NEED ANALYSIS

SEC. 471. 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 file, or are 
                        eligible to file, a form described in paragraph 
                        (3) or certify that they are not required to 
                        file an income tax return, and the student 
                        files, or is eligible to file, such a form or 
                        certifies that the student is not required to 
                        file an income tax return, or the student's 
                        parents, 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) files, or is eligible to file, 
                        a form described in paragraph (3) or certifies 
                        that the student (and the student's spouse, if 
                        any) is not required to file an income tax 
                        return, or the student (and the student's 
                        spouse, if any) 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 
                        subparagraph (A) and inserting the following:
                    ``(A) the student's parents file, or are eligible 
                to file, a form described in subsection (b)(3) or 
                certify that they are not required to file an income 
                tax return, and the student files, or is eligible to 
                file, such a form or certifies that the student is not 
                required to file an income tax return, or the student's 
                parents, or the student, received benefits at some time 
                during the previous 12-month period under a means-
                tested Federal benefit program as defined in subsection 
                (d); and''; and
                            (ii) in paragraph (2), by striking 
                        subparagraph (A) and inserting the following:
                    ``(A) the student (and the student's spouse, if 
                any) files, or is eligible to file, a form described in 
                subsection (b)(3) or certifies that the student (and 
                the student's spouse, if any) is not required to file 
                an income tax return, or the student (and the student's 
                spouse, if any) received benefits at some time during 
                the previous 12-month period under a means-tested 
                Federal benefit program as defined in subsection (d); 
                and''; and
                    (C) by adding at the end the following new 
                subsections:
    ``(d) Definition of 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, 
other than a program under this title, 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 may include such programs as the 
supplemental security income program under title XVI of the Social 
Security Act, the food stamp program under the Food Stamp Act of 1977, 
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, and 
other programs identified by the Secretary.
    ``(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, under the definition 
of means-tested Federal benefit programs in subsection (d), 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(a) (20 U.S.C. 1090(a)) is amended--
                    (A) by striking paragraphs (1), (2), and (5);
                    (B) by redesignating paragraphs (3), (4), (6), and 
                (7), as paragraphs (9), (10), (11), and (12), 
                respectively;
                    (C) 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.--
                    ``(A) In general.--The Secretary shall permit 
                applicants to complete such forms as described in this 
                subsection in the 4 years prior to enrollment in order 
                to obtain a non-binding estimate of the family 
                contribution, as defined in section 473. The estimate 
                shall clearly and conspicuously indicate that it is 
                only an estimate of family contribution, and may not 
                reflect the actual family contribution of the applicant 
                that shall be used to determine the grant, loan, or 
                work assistance that the applicant may receive under 
                this title when enrolled in a program of postsecondary 
                education. Such applicants shall be permitted to update 
                information submitted on forms described in this 
                subsection using the process required under paragraph 
                (5)(A).
                    ``(B) Evaluation.--Two years after the early 
                estimates are implemented under this paragraph and from 
                data gathered from the early estimates, the Secretary 
                shall evaluate the differences between initial, non-
                binding early estimates and the final financial aid 
                award made available under this title.
                    ``(C) Report.--The Secretary shall provide a report 
                to the authorizing committees on the results of the 
                evaluation.
            ``(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 form 
                        under this subparagraph 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 form under this subparagraph 
                        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 form under this subparagraph.
                            ``(iv) Free availability and processing.--
                        The provisions of paragraph (7) shall apply to 
                        the form under this subparagraph, and the data 
                        collected by means of the form under this 
                        subparagraph 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 form under 
                        this subparagraph.
                    ``(C) Promoting the use of electronic fafsa.--
                            ``(i) In general.--The Secretary shall make 
                        an effort to encourage 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: dependent 
                        students, independent students without 
                        dependents, and independent students with 
                        dependents other than a spouse.
            ``(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, 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.
            ``(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--
                                    ``(I) in the academic year 
                                succeeding the year in which such 
                                applicant first applied for financial 
                                assistance under this title; or
                                    ``(II) in any succeeding academic 
                                years.
                            ``(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 encouraged.--Of the number 
                        of data elements on the FAFSA on the date of 
                        enactment of the College Access and Opportunity 
                        Act of 2005 (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 
                        continue to reduce the number of such data 
                        elements following the date of enactment. 
                        Reductions of data elements under paragraph 
                        (3)(B), (4)(C), or (5)(A)(iv) shall not be 
                        counted towards the reduction referred to in 
                        this paragraph unless those data elements are 
                        reduced for all applicants.
                            ``(ii) Report.--The Secretary shall 
                        annually report to the House of Representatives 
                        and the Senate on the progress made of reducing 
                        data elements.
            ``(6) State requirements.--
                    ``(A) In general.--The Secretary shall include on 
                the forms developed under this subsection, such State-
                specific data items as the Secretary determines are 
                necessary to meet State requirements for State need-
                based financial 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 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 financial aid.
                    ``(B) Annual review.--The Secretary shall conduct 
                an annual review process to determine which forms and 
                data items the States require to award State need-based 
                financial 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 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 shall 
                        notify the Secretary--
                                    ``(I) whether the State permits an 
                                applicant to file a form described in 
                                paragraph (3)(B) or paragraph (4)(C) of 
                                this subsection for purposes of 
                                determining eligibility for State need-
                                based financial aid; and
                                    ``(II) the State-specific 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 
                        paragraph (4)(C) of this subsection for 
                        purposes of determining eligibility for State 
                        need-based financial 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 paragraph (4)(C) 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 paragraph (4)(C) of this 
                                subsection; and
                                    ``(II) not require any resident of 
                                that State to complete any 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 
                or 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.''.
            (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 478, 479(c)(2)(C), and 
                483(a)(6) published in the Federal Register;''.
    (c) Increasing Access to Technology.--Section 483 (20 U.S.C. 1090) 
is further amended by adding at the end the following:
    ``(f) 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) Expanding the Definition of an Independent Student.--Section 
480(d) (20 U.S.C.1087vv(d)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) 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;''.

SEC. 472. ADDITIONAL NEED ANALYSIS AMENDMENTS.

    (a) Income Protection Allowance for Dependent Students.----
            (1) Amendment.--Section 475(g)(2)(D) (20 U.S.C. 
        1087oo(g)(2)(D)) is amended by striking ``$2,200'' and 
        inserting ``$3,000''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to determinations of need for periods 
        of enrollment beginning on or after July 1, 2006.
    (b) Employment Expense Allowance.--Section 478(h) (20 U.S.C. 
1087rr(h)) is amended--
            (1) by striking ``476(b)(4)(B),''; and
            (2) by striking ``meals away from home, apparel and upkeep, 
        transportation, and housekeeping services'' and inserting 
        ``food away from home, apparel, transportation, and household 
        furnishings and operations''.
    (c) Discretion of Student Financial Aid Administrators.--Section 
479A(a) (20 U.S.C. 1087tt(a)) is amended--
            (1) by striking ``(a) In General.--'' and inserting the 
        following:
    ``(a) Authority to Make Adjustments.--
            ``(1) Adjustments for special circumstances.--'';
            (2) by inserting before ``Special circumstances may'' the 
        following:
            ``(2) Special circumstances defined.--'';
            (3) by inserting ``a student's status as a ward of the 
        court at any time prior to attaining 18 years of age, a 
        student's status as an individual who was adopted at or after 
        age 13, a student's status as a homeless or unaccompanied youth 
        (as defined in section 725 of the McKinney-Vento Homeless 
        Assistance Act),'' after ``487,'';
            (4) by inserting before ``Adequate documentation'' the 
        following:
            ``(3) Documentation and use of supplementary information.--
        ''; and
            (5) by inserting before ``No student'' the following:
            ``(4) Fees for supplementary information prohibited.--''.
    (d) Treating Active Duty Members of the Armed Forces as Independent 
Students.--Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by 
inserting before the semicolon at the end the following: ``or is 
currently serving on active duty in the Armed Forces for other than 
training purposes''.
    (e) Excludable Income.--Section 480(e) (20 U.S.C. 1087vv(e)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(5) any part of any distribution from a qualified tuition 
        program established under section 529 of the Internal Revenue 
        Code of 1986 that is not includable in gross income under such 
        section 529.''.
    (f) Treatment of Savings Plans.--
            (1) Amendment.--Section 480(f) (20 U.S.C. 1087vv(f)) is 
        amended--
                    (A) in paragraph (1), by inserting ``qualified 
                tuition programs established under section 529 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 529), except 
                as provided in paragraph (2),'' after ``tax 
                shelters,'';
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
    ``(2) A qualified tuition program shall not be considered an asset 
of a dependent student under section 475 of this part. The value of a 
qualified tuition program for purposes of determining the assets of 
parents or independent students shall be--
            ``(A) the refund value of any tuition credits or 
        certificates purchased under section 529 of the Internal 
        Revenue Code of 1986 (26 U.S.C. 529) on behalf of a 
        beneficiary; or
            ``(B) the current balance of any account which is 
        established under such section for the purpose of meeting the 
        qualified higher education expenses of the designated 
        beneficiary of the account.''.
            (2) Conforming amendment.--Section 480(j) (20 U.S.C. 
        1087vv(j)) is amended--
                    (A) by striking ``; Tuition Prepayment Plans'' in 
                the heading of such subsection;
                    (B) by striking paragraph (2);
                    (C) in paragraph (3), by inserting ``, or a 
                distribution that is not includable in gross income 
                under section 529 of such Code,'' after ``1986''; and
                    (D) by redesignating paragraph (3) as paragraph 
                (2).
    (g) Treatment of Family Ownership of Small Businesses.--Section 
480(f)(3) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(3)), 
as redesignated by subsection (f) of this section, is amended--
            (1) in subparagraph (A), by striking ``or'';
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(C) a small business with not more than 100 full-time or 
        full-time equivalent employees (or any part of such a small 
        business) that is owned and controlled by the family.''.
    (h) Designated Assistance.--Section 480(j) (20 U.S.C. 1087vv(j)) is 
amended by adding after paragraph (2) (as redesignated by subsection 
(f)(2)(D) of this section) the following new paragraph:
    ``(3) Notwithstanding paragraph (1) and section 472, assistance not 
received under this title may be excluded from both estimated financial 
assistance and cost of attendance, if that assistance is designated by 
the State providing that assistance to offset a specific component of 
the cost of attendance. If that assistance is excluded from either 
estimated financial assistance or cost of attendance, it shall be 
excluded from both.''.

  PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE

SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE PROGRAM.

    (a) Academic Year.--Paragraph (2) of section 481(a) (20 U.S.C. 
1088(a)) is amended to read as follows:
    ``(2)(A) For the purpose of any program under this title, the term 
`academic year' shall--
            ``(i) require a minimum of 30 weeks of instructional time 
        for a course of study that measures its program length in 
        credit hours; or
            ``(ii) require a minimum of 26 weeks of instructional time 
        for a course of study that measures its program length in clock 
        hours; and
            ``(iii) require an undergraduate course of study to contain 
        an amount of instructional time whereby a full-time student is 
        expected to complete at least--
                    ``(I) 24 semester or trimester hours or 36 quarter 
                credit hours in a course of study that measures its 
                program length in credit hours; or
                    ``(II) 900 clock hours in a course of study that 
                measures its program length in clock hours.
    ``(B) The Secretary may reduce such minimum of 30 weeks to not less 
than 26 weeks for good cause, as determined by the Secretary on a case-
by-case basis, in the case of an institution of higher education that 
provides a 2-year or 4-year program of instruction for which the 
institution awards an associate or baccalaureate degree.''.
    (b) Eligible Program.--Section 481(b) (20 U.S.C. 1088(b)) is 
amended by adding at the end the following new paragraph:
    ``(3) For purposes of this title, an eligible program includes an 
instructional program that utilizes direct assessment of student 
learning, or recognizes the direct assessment of student learning, in 
lieu of credit hours or clock hours as the measure of student learning. 
In the case of a program being determined eligible for the first time 
under this paragraph, such determination shall be made by the Secretary 
before such program is considered to be eligible. The Secretary shall 
provide an annual report to Congress identifying the programs made 
eligible under this paragraph.''.

SEC. 482. DISTANCE EDUCATION.

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

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

    Section 483(a) (20 U.S.C. 1090(a)) (as amended by section 471(b)) 
is further amended by adding at the end the following new paragraph:
            ``(13) Expanding information dissemination regarding 
        eligibility for pell grants.--The Secretary shall make special 
        efforts, in conjunction with State efforts, to notify students 
        and their parents who qualify for a free lunch under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.), the Food Stamps program, or such other programs as the 
        Secretary shall determine, of their potential eligibility for a 
        maximum Pell Grant, and shall disseminate such informational 
        materials as the Secretary deems appropriate.''.

SEC. 484. STUDENT ELIGIBILITY.

    (a) Fraud: Repayment Required.--Section 484(a) (20 U.S.C. 1091(a)) 
is amended--
            (1) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (2) by adding at the end the following new paragraph:
            ``(6) if the student has been convicted of, or has pled 
        nolo contendere or guilty to, a crime involving fraud in 
        obtaining funds under this title, have completed the repayment 
        of such funds to the Secretary, or to the holder in the case of 
        a loan under this title obtained by fraud.''.
    (b) Technical Amendment.--Section 484(b)(5) (20 U.S.C. 1091(b)(5)) 
is amended by inserting ``or parent (on behalf of a student)'' after 
``student''.
    (c) Loan Ineligibility Based on Involuntary Civil Commitment for 
Sexual Offenses.--Section 484(b)(5) (20 U.S.C. 1091(b)(5)) is further 
amended by inserting before the period the following: ``, and no 
student who is subject to an involuntary civil commitment upon 
completion of a period of incarceration for a sexual offense (as 
determined under regulations of the Secretary) is eligible to receive a 
loan under this title''.
    (d) Freely Associated States.--Section 484(j) (20 U.S.C. 1091(j)) 
is amended by inserting ``and shall be eligible only for assistance 
under subpart 1 of part A thereafter,'' after ``part C,''.
    (e) Verification of Income Date.--Paragraph (1) of section 484(q) 
(20 U.S.C. 1091(q)) is amended to read as follows:
            ``(1) Confirmation with irs.--The Secretary of Education, 
        in cooperation with the Secretary of the Treasury, is 
        authorized to confirm with the Internal Revenue Service the 
        information specified in section 6103(l)(13) of the Internal 
        Revenue Code of 1986 reported by applicants (including parents) 
        under this title on their Federal income tax returns for the 
        purpose of verifying the information reported by applicants on 
        student financial aid applications.''.
    (f) Suspension of Eligibility for Drug Offenses.--Section 484(r)(1) 
(20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the 
table and inserting the following:
            ``(1) In general.--A student who is convicted of any 
        offense under any Federal or State law involving the possession 
        or sale of a controlled substance for conduct that occurred 
        during a period of enrollment for which the student was 
        receiving any grant, loan, or work assistance under this title 
        shall not be eligible to receive any grant, loan, or work 
        assistance under this title from the date of that conviction 
        for the period of time specified in the following table:''.

SEC. 485. INSTITUTIONAL REFUNDS.

    Section 484B (20 U.S.C. 1091b) is amended--
            (1) in subsection (a)(1), by inserting ``subpart 4 of part 
        A or'' after ``received under'';
            (2) in subsection (a)(2), by striking ``takes a leave'' and 
        by inserting ``takes one or more leaves'';
            (3) in subsection (a)(3)(B)(ii), by inserting ``(as 
        determined in accordance with subsection (d))'' after ``student 
        has completed'';
            (4) in subsection (a)(4), by amending subparagraph (A) to 
        read as follows:
                    ``(A) In general.--After determining the 
                eligibility of the student for a late disbursement or 
                post-withdrawal disbursement (as required in 
                regulations prescribed by the Secretary), the 
                institution of higher education shall contact the 
                borrower and obtain confirmation that the loan funds 
                are still required by the borrower. In making such 
                contact, the institution shall explain to the borrower 
                the borrower's obligation to repay the funds following 
                any such disbursement. The institution shall document 
                in the borrower's file the result of such contact and 
                the final determination made concerning such 
                disbursement.'';
            (5) in subsection (b)(1), by inserting ``no later than 45 
        days from the determination of withdrawal'' after ``return'';
            (6) in subsection (b)(2), by amending subparagraph (C) to 
        read as follows:
                    ``(C) Grant overpayment requirements.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) and (B), a student shall only 
                        be required to return grant assistance in the 
                        amount (if any) by which--
                                    ``(I) the amount to be returned by 
                                the student (as determined under 
                                subparagraphs (A) and (B)), exceeds
                                    ``(II) 50 percent of the total 
                                grant assistance received by the 
                                student under this title for the 
                                payment period or period of enrollment.
                            ``(ii) Minimum.--A student shall not be 
                        required to return amounts of $50 or less.'';
            (7) in subsection (b)(2), by adding at the end the 
        following new subparagraph:
                    ``(D) Waivers of pell grant repayment by students 
                affected by disasters.--The Secretary may waive the 
                amounts that students are required to return under this 
                section with respect to Pell grants if the withdrawals 
                on which the returns are based are withdrawals by 
                students--
                            ``(i) who were residing in, employed in, or 
                        attending an institution of higher education 
                        that is located in an area in which the 
                        President has declared that a major disaster 
                        exists, in accordance with section 401 of the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5170);
                            ``(ii) whose attendance was interrupted 
                        because of the impact of the disaster on the 
                        student or the institution; and
                            ``(iii) whose withdrawal ended within the 
                        academic year during which the designation 
                        occurred or during the next succeeding academic 
                        year.''; and
            (8) in subsection (d), by striking ``(a)(3)(B)(i)'' and 
        inserting ``(a)(3)(B)''.

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

    (a) Information Dissemination Activities.--Section 485(a)(1) (20 
U.S.C. 1092(a)(1)) is amended--
            (1) by amending the second sentence to read as follows: 
        ``The information required by this section shall be produced 
        and be made publicly available to an enrolled student and to 
        any prospective student, through appropriate publications, 
        mailings, electronic media, and the reports required by the 
        institution's accrediting agency under section 496(c)(9).'';
            (2) by amending subparagraph (G) to read as follows:
            ``(G) the academic programs of the institution, including--
                    ``(i) the current degree programs and other 
                educational and training programs;
                    ``(ii) the institution's educational mission and 
                goals;
                    ``(iii) the instructional, laboratory, and other 
                physical plant facilities which relate to the academic 
                programs; and
                    ``(iv) the faculty and other instructional 
                personnel;'';
            (3) by striking subparagraph (L) and inserting the 
        following:
            ``(L) a summary of student outcomes for full-time 
        undergraduate students, including--
                    ``(i) the completion or graduation rates of 
                certificate- or degree-seeking undergraduate students 
                entering such institutions; and
                    ``(ii) any other student outcome data, qualitative 
                or quantitative, including data regarding distance 
                education, deemed by the institution to be appropriate 
                to its stated educational mission and goals, and, when 
                applicable, licensing and placement rates for 
                professional and vocational programs;'';
            (4) by inserting before the semicolon at the end of 
        subparagraph (J) the following: ``, and the process for 
        students to register complaints with the accrediting agencies 
        or associations'';
            (5) in subparagraph (M), by striking ``guaranteed student 
        loans under part B of this title or direct student loans under 
        part E of this title, or both,'' and inserting ``student loans 
        under part B, D, or E of this title'';
            (6) by striking ``and'' at the end of subparagraph (N);
            (7) by striking the period at the end of subparagraph (O) 
        and inserting a semicolon; and
            (8) by adding at the end the following new subparagraphs:
            ``(P) the penalties contained in subsection 484(r) 
        regarding suspension of eligibility for drug related offenses;
            ``(Q) the policies of the institution regarding the 
        acceptance or denial of academic credit earned at another 
        institution of higher education, which shall include a 
        statement that such decisions will not be based solely on the 
        source of accreditation of a sending institution, provided that 
        the sending institution is accredited by an agency or 
        association that is recognized by the Secretary pursuant to 
        section 496 to be a reliable authority as to the quality of the 
        education or training offered, and except that nothing in this 
        subparagraph shall be construed to--
                    ``(i) authorize an officer or employee of the 
                Department to exercise any direction, supervision, or 
                control over the curriculum, program of instruction, 
                administration, or personnel of any institution of 
                higher education, or over any accrediting agency or 
                association;
                    ``(ii) limit the application of the General 
                Education Provisions Act; or
                    ``(iii) create any legally enforceable right; 
                and''.
    (b) Additional Amendments.--Section 485(a) is further amended by 
striking paragraph (6) and inserting the following:
    ``(6) Each institution may provide supplemental information to 
enrolled and prospective students showing the completion or graduation 
rate for students described in paragraph (4). For the purpose of this 
paragraph, the definitions provided in the Integrated Postsecondary 
Education Data System shall apply.
    ``(7) Each eligible institution participating in any program under 
this title may publicly report to currently enrolled and prospective 
students the voluntary information collected by the National Survey of 
Student Engagement (NSSE), the Community College Survey of Student 
Engagement (CCSSE), or other instruments that provide evidence of 
student participation in educationally purposeful activities. The 
information shall be produced and made available in a uniform and 
comprehensible manner, through appropriate publications, mailings, and 
electronic media, and may be included in reports required by the 
institution's accrediting agency.''.
    (c) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended 
by adding at the end the following new paragraph:
    ``(3) Each eligible institution shall, during the exit interview 
required by this subsection, provide to a borrower of a loan made under 
part B, D, or E a clear and conspicuous notice describing the effect of 
using a consolidation loan to discharge the borrower's student loans, 
including--
            ``(A) the effects of consolidation on total interest to be 
        paid, fees to be paid, and length of repayment;
            ``(B) the effects of consolidation on a borrower's 
        underlying loan benefits, including loan forgiveness, 
        cancellation, and deferment;
            ``(C) the ability for the borrower to prepay the loan, pay 
        on a shorter schedule, and to change repayment plans, and that 
        borrower benefit programs may vary among different loan 
        holders;
            ``(D) the tax benefits for which the borrower may be 
        eligible; and
            ``(E) the consequences of default.''.
    (d) Campus Crime Information.--Section 485(f)(1) (20 U.S.C. 
1092(f)(1)) is amended by inserting ``, other than a foreign 
institution of higher education,'' after ``under this title''.
    (e) Disclosure of Fire Safety of Campus Buildings.--Section 485 of 
the Higher Education Act of 1965 (20 U.S.C. 1092) is further amended--
            (1) in subsection (a)(1), by adding after subparagraph (Q) 
        (as added by subsection (a)(8) of this section) the following 
        new subparagraph:
            ``(R) the fire safety report prepared by the institution 
        pursuant to subsection (h).''; and
            (2) by adding at the end the following new subsection:
    ``(h) Disclosure of Fire Safety Standards and Measures.--
            ``(1) Annual fire safety reports required.--Each 
        institution participating in any program under this title 
        shall, beginning in the first academic year that begins after 
        the date of enactment of the College Access and Opportunity Act 
        of 2005, and each year thereafter, prepare, publish, and 
        distribute, through appropriate publications (including the 
        Internet) or mailings, to all current students and employees, 
        and to any applicant for enrollment or employment upon request, 
        an annual fire safety report. Such reports shall contain at 
        least the following information with respect to the campus fire 
        safety practices and standards of that institution:
                    ``(A) A statement that identifies each institution-
                owned or controlled student housing facility, and 
                whether or not such facility is equipped with a fire 
                sprinkler system or other fire safety system, or has 
                fire escape planning or protocols.
                    ``(B) Statistics for each such facility concerning 
                the occurrence of fires and false alarms in such 
                facility during the 2 preceding calendar years for 
                which data are available.
                    ``(C) For each such occurrence in each such 
                facility, a summary of the human injuries or deaths, 
                structural or property damage, or combination thereof.
                    ``(D) Information regarding rules on portable 
                electrical appliances, smoking and open flames (such as 
                candles), regular mandatory supervised fire drills, and 
                planned and future improvements in fire safety.
                    ``(E) Information about fire safety education and 
                training provided to students, faculty, and staff.
                    ``(F) Information concerning fire safety at any 
                housing facility owned or controlled by a fraternity, 
                sorority, or student group that is recognized by the 
                institution, including--
                            ``(i) information reported to the 
                        institution under paragraph (4); and
                            ``(ii) a statement concerning whether and 
                        how the institution works with recognized 
                        student fraternities and sororities, and other 
                        recognized student groups owning or controlling 
                        housing facilities, to make each building and 
                        property owned or controlled by such 
                        fraternities, sororities, and groups more fire 
                        safe.
            ``(2) Fraternities, sororities, and other groups.--Each 
        institution participating in a program under this title shall 
        request each fraternity and sorority that is recognized by the 
        institution, and any other student group that is recognized by 
        the institution and that owns or controls housing facilities, 
        to collect and report to the institution the information 
        described in subparagraphs (A) through (E) of paragraph (1), as 
        applied to the fraternity, sorority, or recognized student 
        group, respectively, for each building and property owned or 
        controlled by the fraternity, sorority, or group, respectively.
            ``(3) Current information to campus community.--Each 
        institution participating in any program under this title shall 
        make, keep, and maintain a log, written in a form that can be 
        easily understood, recording all on-campus fires, including the 
        nature, date, time, and general location of each fire and all 
        false fire alarms. All entries that are required pursuant to 
        this paragraph shall, except where disclosure of such 
        information is prohibited by law, be open to public inspection, 
        and each such institution shall make annual reports to the 
        campus community on such fires and false fire alarms in a 
        manner that will aid the prevention of similar occurrences.
            ``(4) Reports to the secretary.--On an annual basis, each 
        institution participating in any program under this title shall 
        submit to the Secretary a copy of the statistics required to be 
        made available under paragraph (1)(B). The Secretary shall--
                    ``(A) review such statistics;
                    ``(B) make copies of the statistics submitted to 
                the Secretary available to the public; and
                    ``(C) in coordination with nationally recognized 
                fire organizations and representatives of institutions 
                of higher education, identify exemplary fire safety 
                policies, procedures, and practices and disseminate 
                information concerning those policies, procedures, and 
                practices that have proven effective in the reduction 
                of campus fires.
            ``(5) Rule of construction.--Nothing in this subsection 
        shall be construed to authorize the Secretary to require 
        particular policies, procedures, or practices by institutions 
        of higher education with respect to fire safety.
            ``(6) Definitions.--In this subsection, the term `campus' 
        has the meaning provided in subsection (f)(6).''.

SEC. 487. COLLEGE ACCESS INITIATIVE.

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

``SEC. 485D. COLLEGE ACCESS INITIATIVE.

    ``(a) State-by-state Information.--The Secretary shall direct each 
guaranty agency with which the Secretary has an agreement under section 
428(c) to provide to the Secretary the information necessary for the 
development of web links and access for students and families to a 
comprehensive listing of the postsecondary education opportunities, 
programs, publications, Internet Web sites, and other services 
available in the States for which such agency serves as the designated 
guarantor.
    ``(b) Guaranty Agency Activities.--
            ``(1) Plan and activity required.--Each guaranty agency 
        with which the Secretary has an agreement under section 428(c) 
        shall develop a plan and undertake the activity necessary to 
        gather the information required under subsection (a) and to 
        make such information available to the public and to the 
        Secretary in a form and manner as prescribed by the Secretary.
            ``(2) Activities.--Each guaranty agency shall undertake 
        such activities as are necessary to promote access to 
        postsecondary education for students through providing 
        information on college planning, career preparation, and paying 
        for college. The guaranty agency shall publicize such 
        information and coordinate such activities with other entities 
        that either provide or distribute such information in the 
        States for which such guaranty agency serves as the designated 
        guarantor.
            ``(3) Funding.--The activities required by this section may 
        be funded from the guaranty agency's operating account 
        established pursuant to section 422B and, to the extent funds 
        remain, from earnings on the restricted account established 
        pursuant to section 422(h)(4).
    ``(c) Access to Information.--
            ``(1) Secretary's responsibility.--The Secretary shall 
        ensure the availability of the information provided by the 
        guaranty agencies in accordance with this section to students, 
        parents, and other interested individuals, through web links or 
        other methods prescribed by the Secretary.
            ``(2) Guaranty agency responsibility.--The guaranty 
        agencies shall ensure that the information required by this 
        section is available without charge in printed format for 
        students and parents requesting such information.
            ``(3) Publicity.--Within 270 days after the date of 
        enactment of the College Access and Opportunity Act of 2005, 
        the Secretary and guaranty agencies shall publicize the 
        availability of the information required by this section, with 
        special emphasis on ensuring that populations that are 
        traditionally underrepresented in postsecondary education are 
        made aware of the availability of such information.''.

SEC. 488. DISTANCE EDUCATION DEMONSTRATION PROGRAM.

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

SEC. 489. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

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

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

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to provide, through a college affordability 
        demonstration program, for increased innovation in the delivery 
        of higher education and student financial aid in a manner 
        resulting in reduced costs for students as well as the 
        institution by employing one or more strategies including 
        accelerating degree or program completion, increasing 
        availability of, and access to, distance components of 
        education delivery, engaging in collaborative arrangements with 
        other institutions and organizations, and other alternative 
        methodologies; and
            ``(2) to help determine--
                    ``(A) the most effective means of delivering 
                student financial aid as well as quality education;
                    ``(B) the specific statutory and regulatory 
                requirements that should be altered to provide for more 
                efficient and effective delivery of student financial 
                aid, as well as access to high quality distance 
                education programs, resulting in a student more 
                efficiently completing postsecondary education; and
                    ``(C) the most effective methods of obtaining and 
                managing institutional resources.
    ``(b) Demonstration Program Authorized.--
            ``(1) In general.--In accordance with the purposes 
        described in subsection (a) and the provisions of subsection 
        (d), the Secretary is authorized to select not more than 100 
        institutions of higher education, including those applying as 
        part of systems or consortia of such institutions, for 
        voluntary participation in the College Affordability 
        Demonstration Program in order to enable participating 
        institutions to carry out such purposes by providing programs 
        of postsecondary education, and making available student 
        financial assistance under this title to students enrolled in 
        those programs, in a manner that would not otherwise meet the 
        requirements of this title.
            ``(2) Waivers.--The Secretary is authorized to waive for 
        any institutions of higher education, or any system or 
        consortia of institutions of higher education, selected for 
        participation in the College Affordability Demonstration 
        Program, any requirements of this Act or the regulations 
        thereunder as deemed necessary by the Secretary to meet the 
        purpose described in subsection (a)(1), and shall make a 
        determination that the waiver can reasonably be expected to 
        result in reduced costs to students or institutions without an 
        increase in Federal program costs. The Secretary may not waive 
        under this paragraph the maximum award amounts for an academic 
        year or loan period.
            ``(3) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraph (B), only an institution of higher 
                education that is eligible to participate in programs 
                under this title shall be eligible to participate in 
                the demonstration program authorized under this 
                section.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102 shall not be 
                eligible to participate in the demonstration program 
                authorized under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution or system of 
        institutions desiring to participate in the demonstration 
        program under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.
            ``(2) Contents of applications.--Each application for the 
        college affordability demonstration program shall include at 
        least the following:
                    ``(A) a description of the institution or system or 
                consortium of institutions and what quality assurance 
                mechanisms are in place to insure the integrity of the 
                Federal financial aid programs;
                    ``(B) a description of the innovation or 
                innovations being proposed and the affected programs 
                and students, including--
                            ``(i) a description of any collaborative 
                        arrangements with other institutions or 
                        organizations to reduce costs;
                            ``(ii) a description of any expected 
                        economic impact of participation in the program 
                        within the community in which the institution 
                        is located; and
                            ``(iii) a description of any means the 
                        institution will employ to reduce the costs of 
                        instructional materials, such as textbooks;
                    ``(C) a description of each regulatory or statutory 
                requirement for which waivers are sought, with a reason 
                for each waiver;
                    ``(D) a description of the expected outcomes of the 
                program changes proposed, including the estimated 
                reductions in costs both for the institution and for 
                students;
                    ``(E) a description of the quality assurance 
                mechanisms in place to ensure the integrity of the 
                Federal financial aid programs;
                    ``(F) an assurance from each institution in a 
                system or consortium of a commitment to fulfill its 
                role as described in the application;
                    ``(G) an assurance that the participating 
                institution or system of institutions will offer full 
                cooperation with the ongoing evaluations of the 
                demonstration program provided for in this section; and
                    ``(H) any other information or assurances the 
                Secretary may require.
    ``(d) Selection.--In selecting institutions to participate in the 
demonstration program under this section, the Secretary shall take into 
account--
            ``(1) the number and quality of applications received, 
        determined on the basis of the contents required by subsection 
        (c)(2);
            ``(2) the Department's capacity to oversee and monitor each 
        institution's participation;
            ``(3) an institution's--
                    ``(A) financial responsibility;
                    ``(B) administrative capability;
                    ``(C) program or programs being offered via 
                distance education, if applicable;
                    ``(D) student completion rates; and
                    ``(E) student loan default rates; and
            ``(4) the participation of a diverse group of institutions 
        with respect to size, mission, and geographic distribution.
    ``(e) Notification.--The Secretary shall make available to the 
public and to the authorizing committees a list of institutions 
selected to participate in the demonstration program authorized by this 
section. Such notice shall include a listing of the specific statutory 
and regulatory requirements being waived for each institution and a 
description of the innovations being demonstrated.
    ``(f) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration program authorized under this section on a 
        biennial basis. Such evaluations specifically shall review--
                    ``(A) the extent to which expected outcomes, 
                including the estimated reductions in cost, were 
                achieved;
                    ``(B) the number and types of students 
                participating in the programs offered, including the 
                progress of participating students toward recognized 
                certificates or degrees and the extent to which 
                participation in such programs increased;
                    ``(C) issues related to student financial 
                assistance associated with the innovations undertaken;
                    ``(D) effective technologies and alternative 
                methodologies for delivering student financial 
                assistance;
                    ``(E) the extent of the cost savings to the 
                institution, the student, and the Federal Government by 
                virtue of the waivers provided, and an estimate as to 
                future cost savings for the duration of the 
                demonstration program;
                    ``(F) the extent to which students saved money by 
                virtue of completing their postsecondary education 
                sooner;
                    ``(G) the extent to which the institution reduced 
                its tuition and fees and its costs by virtue of 
                participation in the demonstration program;
                    ``(H) the extent to which any collaborative 
                arrangements with other institutions or organizations 
                have reduced the participating institution's costs; and
                    ``(I) the extent to which statutory or regulatory 
                requirements not waived under the demonstration program 
                present difficulties for students or institutions.
            ``(2) Policy analysis.--The Secretary shall review current 
        policies and identify those policies that present impediments 
        to the implementation of innovations that result in cost 
        savings and in expanding access to education.
            ``(3) Reports.--The Secretary shall provide a report to the 
        authorizing committees on a biennial basis regarding--
                    ``(A) the demonstration program authorized under 
                this section;
                    ``(B) the results of the evaluations conducted 
                under paragraph (1);
                    ``(C) the cost savings to the Federal Government by 
                the demonstration program authorized by this section; 
                and
                    ``(D) recommendations for changes to increase the 
                efficiency and effective delivery of financial aid.
    ``(g) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) ensure compliance of institutions or systems of 
        institutions with the requirements of this title (other than 
        the sections and regulations that are waived under subsection 
        (b)(2));
            ``(2) provide technical assistance to institutions in their 
        application to and participation in the demonstration program;
            ``(3) monitor fluctuations in the student population 
        enrolled in the participating institutions or systems of 
        institutions;
            ``(4) monitor changes in financial assistance provided at 
        the institution; and
            ``(5) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities.
    ``(h) Termination of Authority.--The authority of the Secretary 
under this section shall cease to be effective on October 1, 2011.''.

SEC. 490. PROGRAM PARTICIPATION AGREEMENTS.

    (a) Refund Policies.--Section 487(a) (20 U.S.C. 1094(a)) is 
amended--
            (1) in paragraph (16), by inserting ``or other Federal, 
        State, or local government funds'' after ``funds under this 
        title'' each place it appears;
            (2) in paragraph (22), by striking ``refund policy'' and 
        inserting ``policy on the return of title IV funds''; and
            (3) in paragraph (23)--
                    (A) by moving subparagraph (C) 2 em spaces to the 
                left; and
                    (B) by adding after such subparagraph the following 
                new subparagraph:
            ``(D) An institution shall be considered in compliance with 
        the requirements of subparagraph (A) for any student to whom 
        the institution electronically transmits a message containing a 
        voter registration form acceptable for use in the State in 
        which the institution is located, or an Internet address where 
        such a form can be downloaded, provided such information is in 
        an electronic message devoted to voter registration.''.
    (b) Enforcing the 90/10 Rule.--
            (1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
        further amended by adding at the end the following new 
        paragraph:
            ``(24) The institution will, as calculated in accordance 
        with subsection (f)(1), have at least 10 percent of its 
        revenues from sources other than funds provided under this 
        title, or will be subject to the sanctions described in 
        subsection (f)(2).''.
            (2) Implementation.--Section 487 is further amended by 
        adding at the end the following new subsection:
    ``(f) Implementation of Non-Title IV Revenue Requirement.--
            ``(1) Calculation.--In carrying out subsection (a)(24), an 
        institution shall use the cash basis of accounting and count 
        the following funds toward the 10 percent of revenues from 
        sources of funds other than funds provided under this title:
                    ``(A) funds used by students to pay tuition, fees, 
                and other institutional charges from sources other than 
                funds provided under this title as long as the 
                institution can reasonably demonstrate that such funds 
                were used for such purposes;
                    ``(B) institutional funds used to satisfy matching-
                fund requirements for programs under this title;
                    ``(C) funds from savings plans for educational 
                expenses established pursuant to the Internal Revenue 
                Code of 1986;
                    ``(D) funds paid by a student, or on behalf of a 
                student by a party other than the institution, for an 
                education or training program that is not eligible for 
                funds under this title, so long as the program is 
                approved or licensed by the appropriate State agency or 
                an accrediting agency recognized by the Secretary; and
                    ``(E) institutional aid, as follows:
                            ``(i) in the case of institutional loans, 
                        only the amount of loan repayments received 
                        during the fiscal year; and
                            ``(ii) in the case of institutional 
                        scholarships, only those provided by the 
                        institution in the form of monetary aid or 
                        tuition discounts based upon the academic 
                        achievements or financial need of students, 
                        disbursed during the fiscal year from an 
                        established restricted account, and only to the 
                        extent that the funds in that account represent 
                        designated funds from an outside source or from 
                        income earned on those funds.
            ``(2) Sanctions.--An institution that fails to meet the 
        requirements of subsection (a)(24) for 3 consecutive years 
        shall become ineligible to participate in the programs 
        authorized by this title. In addition to such other means of 
        enforcing the requirements of this title as may be available to 
        the Secretary, if an institution fails to meet the requirements 
        of subsection (a)(24) in any year, the Secretary may impose one 
        or more of the following sanctions on the institution:
                    ``(A) Place the institution on provisional 
                certification in accordance with section 498(h) until 
                the institution demonstrates, to the satisfaction of 
                the Secretary, that it is in compliance with subsection 
                (a)(24).
                    ``(B) Require such other increased monitoring and 
                reporting requirements as the Secretary determines 
                necessary until the institution demonstrates, to the 
                satisfaction of the Secretary, that it is in compliance 
                with subsection (a)(24).
            ``(3) Publication on cool website.--The Secretary shall 
        identify, on the College Opportunities On-Line website under 
        section 131(b), any institution that fails to meet the 
        requirements of subsection (a)(24) in any year as an 
        institution that is failing to meet the minimum non-Federal 
        source of revenue requirements of that subsection.''.
    (c) Reports on Disciplinary Proceedings.--
            (1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
        further amended by adding after paragraph (24), as added by 
        subsection (b) of this section, the following new paragraph:
            ``(25) The institution will disclose to the alleged victim 
        of any crime of violence (as that term is defined in section 16 
        of title 18), or a nonforcible sex offense, the final results 
        of any disciplinary proceeding conducted by such institution 
        against a student who is the alleged perpetrator of such crime 
        or offense with respect to such crime or offense. If the 
        alleged victim of such crime or offense is deceased, the next 
        of kin of such victim shall be treated as the alleged victim 
        for purposes of this paragraph.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any disciplinary proceeding 
        conducted by such institution on or after one year after the 
        date of enactment of this Act.
    (d) Audit Requirements.--Section 487(c)(1)(A)(i) (20 U.S.C. 
1094(c)(1)(A)(i)) is amended by inserting before the semicolon at the 
end the following: ``, except that the Secretary may modify the 
requirements of this clause with respect to institutions of higher 
education that are foreign institutions, and may waive such 
requirements with respect to a foreign institution whose students 
receive less than $500,000 in loans under this title during the award 
year preceding the audit period''.

SEC. 491. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS.

    Part G is further amended as follows:
            (1) Section 483(d) (20 U.S.C. 1090(d)) is amended by 
        striking ``that is authorized under section 685(d)(2)(C)'' and 
        inserting ``, or another appropriate provider of technical 
        assistance and information on postsecondary educational 
        services, that is supported under section 663''.
            (2) Section 484 (20 U.S.C. 1091) is amended--
                    (A) in subsection (a)(4), by striking 
                ``certification,,'' and inserting ``certification,''; 
                and
                    (B) in subsection (b)(2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``section 428A'' and inserting 
                        ``section 428H'';
                            (ii) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end thereof;
                            (iii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking subparagraph (C).
            (3) Section 484A(b)(2) (20 U.S.C. 1091a(b)(2)) is amended 
        by striking ``part B of this title'' and inserting ``part B, D, 
        or E of this title''.
            (4) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
                    (A) by redesignating paragraphs (6) through (10) as 
                paragraphs (7) through (11), respectively;
                    (B) by redesignating the paragraph (5) (as added by 
                section 2008 of Public Law 101-239) as paragraph (6); 
                and
                    (C) in paragraph (5) (as added by section 204(3) of 
                the National Community Service Act of 1990 (Public Law 
                101-610))--
                            (i) by striking ``(22 U.S.C. 2501 et 
                        seq.)),'' and inserting ``(22 U.S.C. 2501 et 
                        seq.),''; and
                            (ii) by striking the period at the end 
                        thereof and inserting a semicolon.
            (5) Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``Higher Education 
                        Amendments of 1998'' and inserting ``College 
                        Access and Opportunity Act of 2005''; and
                            (ii) by striking the second sentence;
                    (B) in paragraph (2)--
                            (i) by striking ``1993 through 1998'' and 
                        inserting ``1998 through 2004'';
                            (ii) by striking ``(as such section'' and 
                        all that follows through ``Amendments of 
                        1998)''; and
                            (iii) by striking ``Higher Education 
                        Amendments of 1998.'' and inserting ``College 
                        Access and Opportunity Act of 2005.''; and
                    (C) in paragraph (3)(A)--
                            (i) by striking ``Upon the submission'' and 
                        all that follows through ``limited number of 
                        additional institutions for voluntary 
                        participation'' and inserting ``The Secretary 
                        is authorized to continue the voluntary 
                        participation of institutions participating as 
                        of July 1, 2005,''; and
                            (ii) by inserting before the period at the 
                        end the following: ``, and shall continue the 
                        participation of any such institution unless 
                        the Secretary determines that such 
                        institution's participation has not been 
                        successful in carrying out the purposes of this 
                        section''.
            (6) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding 
        at the end the following new paragraph:
    ``(3) The appointment of members under subparagraphs (A) and (B) of 
paragraph (1) shall be effective upon publication of the appointment in 
the Congressional Record.''.
            (7) Section 491(h)(1) (20 U.S.C. 1098(h)(1)) is amended by 
        striking ``the rate authorized for GS-18 of the General 
        Schedule'' and inserting ``the maximum rate payable under 
        section 5376 of such title''.
            (8) Section 491(k) (20 U.S.C. 1098(k)) is amended by 
        striking ``2004'' and inserting ``2011''.
            (9) Section 493A (20 U.S.C. 1098c) is repealed.
            (10) Section 498 (20 U.S.C. 1099c) is amended--
                    (A) in subsection (c)(2), by striking ``for 
                profit,'' and inserting ``for-profit,''; and
                    (B) in subsection (d)(1)(B), by inserting ``and'' 
                after the semicolon at the end thereof.

                       PART H--PROGRAM INTEGRITY

SEC. 495. ACCREDITATION.

    (a) Standards for Accreditation.--Section 496(a) (20 U.S.C. 
1099b(a)) is amended--
            (1) in paragraph (3)--
                    (A) by inserting ``or'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (2) in paragraph (4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by inserting after ``consistently applies and 
                enforces standards'' the following: ``that consider the 
                stated missions of institutions of higher education, 
                including such missions as inculcation of religious 
                values, and'';
                    (C) by inserting ``and'' after the semicolon at the 
                end thereof; and
                    (D) by adding at the end the following new 
                subparagraph:
            ``(B) if such agency or association already has or seeks to 
        include within its scope of recognition the evaluation of the 
        quality of institutions or programs offering distance 
        education, such agency or association shall, in addition to 
        meeting the other requirements of this subpart, demonstrate to 
        the Secretary that--
                    ``(i) the accreditation agency's or association's 
                standards effectively address the quality of an 
                institution's distance education programs in the areas 
                identified in paragraph (5) of this subsection, except 
                that the agency or association shall not be required to 
                have separate standards, procedures, or policies for 
                the evaluation of distance education institutions or 
                programs in order to meet the requirements of this 
                subparagraph; and
                    ``(ii) the agency or association requires that an 
                institution that offers distance education programs to 
                have processes by which it establishes that the student 
                who registers in a distance education course or program 
                is the same student who participates, completes 
                academic work, and receives academic credit;'';
            (3) in paragraph (5)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) success with respect to student achievement 
                in relation to the institution's mission, including, as 
                appropriate, consideration of student academic 
                achievement as determined by the institution (in 
                accordance with standards of the accrediting agency or 
                association), retention, course and program completion, 
                State licensing examinations, and job placement rates, 
                and other student performance information selected by 
                the institution, particularly that information used by 
                the institution to evaluate or strengthen its 
                programs;''; and
                    (B) by amending subparagraph (E) to read as 
                follows:
                    ``(E) fiscal, administrative capacity, as 
                appropriate to the specified scale of operations, and, 
                for an agency or association where its approval for 
                such institution determines eligibility for student 
                assistance under this title, board governance, within 
                the context of the institution's mission;'';
            (4) by striking paragraph (6) and inserting the following:
            ``(6) such an agency or association shall establish and 
        apply review procedures throughout the accrediting process, 
        including evaluation and withdrawal proceedings that comply 
        with due process that provides for--
                    ``(A) adequate specification of requirements and 
                deficiencies at the institution of higher education or 
                program being examined;
                    ``(B) an opportunity for a written response by any 
                such institution to be included in the evaluation and 
                withdrawal proceedings;
                    ``(C) upon the written request of an institution, 
                an opportunity for the institution to appeal any 
                adverse action at a hearing prior to such action 
                becoming final before an appeals panel that--
                            ``(i) shall not include current members of 
                        the agency or association's underlying 
                        decision-making body that made the adverse 
                        decision; and
                            ``(ii) is subject to a conflict of interest 
                        of policy; and
                    ``(D) the right to representation by counsel for an 
                such institution;''; and
            (5) by striking paragraph (8) and inserting the following:
            ``(8) such agency or association shall make available to 
        the public and submit to the Secretary and the State licensing 
        or authorizing agency, together with the comments of the 
        affected institution, a summary of agency or association 
        actions, involving--
                    ``(A) final denial, withdrawal, suspension, or 
                termination of accreditation; and
                    ``(B) any other final adverse action taken with 
                respect to an institution.''.
    (b) Operating Procedures.--Section 496(c) (20 U.S.C. 1099b(c)) is 
amended--
            (1) by inserting ``(including those regarding distance 
        education)'' before the semicolon at the end of paragraph (1);
            (2) by striking ``and'' at the end of paragraph (5);
            (3) by striking the period at the end of paragraph (6) and 
        inserting a semicolon; and
            (4) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) ensures that its onsite comprehensive reviews for 
        accreditation or reaccreditation include evaluation of the 
        substance of the information required in subparagraph (H) of 
        section 485(a)(1);
            ``(8) confirms as a part of its review for accreditation or 
        reaccreditation that the institution has transfer policies--
                    ``(A) that are publicly disclosed; and
                    ``(B) that do not deny transfer of credit based 
                solely on the accreditation of the sending institution 
                as long as the association or agency is recognized by 
                the Secretary pursuant to section 496;
            ``(9) develops a brief summary, available to the public, of 
        final adverse actions in accordance with the requirements of 
        subsection (a)(8);
            ``(10) monitors the enrollment growth of distance education 
        to ensure that an institution experiencing signficant growth 
        has the capacity to serve its students effectively;
            ``(11) discloses publicly, on the agency's website or 
        through other similar dissemination--
                    ``(A) a list of the individuals who comprised the 
                evaluation teams during the prior calendar year for 
                each agency or association and the title and 
                institutional affiliation of such individuals, although 
                such list shall not be required to identify those 
                individuals who comprised the evaluation team used for 
                any specific institution;
                    ``(B) a description of the agency's or 
                association's process for selecting, preparing, and 
                evaluating such individuals; and
                    ``(C) any statements related to the accreditation 
                responsibilities of such individuals; and
            ``(12) reviews the record of student complaints resulting 
        from the student information process described in section 
        485(a)(1)(J).''.
    (c) Limitation, Suspension, and Termination of Recognition.--
Section 496(l) is amended by adding at the end the following new 
paragraph:
    ``(3) The Secretary shall provide an annual report to Congress on 
the status of any agency or association for which the Secretary has 
limited, suspended or terminated recognition under this subsection.''.
    (d) Program Review and Data.--Section 498A(b) (20 U.S.C. 1099c-
1(b)) 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 a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(6) provide to the institution adequate opportunity to 
        review and respond to any program review report or audit 
        finding and underlying materials related thereto before any 
        final program review or audit determination is reached;
            ``(7) review and take into consideration the institution's 
        response in any final program review or audit determination, 
        and include in the final determination--
                    ``(A) a written statement addressing the 
                institution's response and stating the basis for such 
                final determination; and
                    ``(B) a copy of the institution's statement in 
                response, appropriately redacted to protect 
                confidential information;
            ``(8) maintain and preserve at all times the 
        confidentiality of any program review report or audit finding 
        until the requirements of paragraphs (6) and (7) are met, and 
        until a final program review or audit determination has been 
        issued, except to the extent required to comply with paragraph 
        (5), provided, however, that the Secretary shall promptly 
        disclose any and all program review reports and audit findings 
        to the institution under review; and
            ``(9) require that the authority to approve or issue any 
        program review report or audit finding, preliminary or 
        otherwise, that contains any finding, determination, or 
        proposed assessment that exceeds or may exceed $500,000 in 
        liabilities shall not be delegated to any official beyond the 
        Chief Operating Officer of Federal Student Aid.''.

SEC. 496. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN 
              STUDENT FINANCIAL AID PROGRAMS.

    Title IV is amended by adding at the end the following new section:

``SEC. 499. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN 
              STUDENT FINANCIAL AID PROGRAMS.

    ``(a) Purpose.--It is the purpose of this section to require the 
Secretary to commission a nonpartisan, comprehensive study on the 
prevention of fraud and abuse in title IV student financial aid 
programs, and to report the results of such study to Congress.
    ``(b) Scope of Report.--The study under this section shall 
thoroughly identify and address the following:
            ``(1) The impact of fraud and abuse in title IV student 
        financial aid programs upon students and taxpayers, and the 
        nature of such fraud and abuse.
            ``(2) The effectiveness of existing policies and 
        requirements under this Act that were put in place to prevent 
        fraud and abuse in title IV student financial aid programs, and 
        how such policies and requirements should be improved.
            ``(3) The extent to which existing protections against 
        fraud and abuse under this Act are adequately enforced, and how 
        enforcement should be strengthened.
            ``(4) Areas in which additional information is needed to 
        assess the effectiveness of current protections and enforcement 
        against fraud and abuse.
            ``(5) Existing policies and requirements under this Act 
        aimed at fraud and abuse that are ineffective, hinder 
        innovation, or could be eliminated without reducing 
        effectiveness.
            ``(6) New policies and enforcement, particularly those 
        suited for the current higher education marketplace, needed to 
        protect against fraud and abuse in title IV student financial 
        aid programs.
            ``(7) The extent to which States are implementing 
        regulations to protect students from fraud and abuse, and 
        whether changes to Federal law will preempt such regulations.
    ``(c) Report.--Not later than December 31, 2007, the Secretary, 
after an opportunity for both the Secretary and the Inspector General 
of the Department of Education to review the results of the study, 
shall transmit to Congress a report on the study conducted under this 
section. Such report shall--
            ``(1) include clear and specific recommendations for 
        legislative and regulatory actions that are likely to 
        significantly reduce the fraud and abuse in title IV student 
        financial aid programs identified under subsection (b); and
            ``(2) include both the Secretary's and the Inspector 
        General's comments on the report.''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEFINITIONAL CHANGES.

    Section 502(a) (20 U.S.C. 1101a(a)) is amended--
            (1) in paragraph (5)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A);
                    (B) by inserting ``at the end of the award year 
                immediately preceding the date of application'' after 
                ``Hispanic students'' in subparagraph (B);
                    (C) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (D) by striking subparagraph (C); and
            (2) by striking paragraph (7).

SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STUDENTS.

    Section 511(c) (20 U.S.C. 1103(c)) is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (2) through (6); and
            (3) by inserting after paragraph (6) as so redesignated the 
        following new paragraph:
            ``(7) contain such assurances as the Secretary may require 
        that the institution has an enrollment of needy students as 
        required by section 502(b);''.

SEC. 503. ADDITIONAL AMENDMENTS.

    Title V is further amended--
            (1) in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by 
        redesignating clauses (v) and (vi) as clauses (vi) and (vii), 
        respectively, and inserting after clause (iv) the following new 
        clause:
                            ``(v) which provides a program of not less 
                        than 2 years that is acceptable for full credit 
                        toward a bachelor's degree;'';
            (2) in section 503(b) (20 U.S.C. 1101b(b))--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) Construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities.'';
                    (B) by amending paragraph (12) to read as follows:
            ``(12) Establishing community outreach programs and 
        collaborative partnerships between Hispanic-serving 
        institutions and local elementary or secondary schools. Such 
        partnerships may include mentoring, tutoring, or other 
        instructional opportunities that will boost student academic 
        achievement and assist elementary and secondary school students 
        in developing the academic skills and the interest to pursue 
        postsecondary education.'';
                    (C) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (D) by inserting after paragraph (4) the following:
            ``(5) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (3) in section 504(a) (20 U.S.C. 1101c(a))--
                    (A) by striking the following:
    ``(a) Award Period.--
            ``(1) In general.--The Secretary'' and inserting the 
        following:
    ``(a) Award Period.--The Secretary''; and
                    (B) by striking paragraph (2); and
            (4) in section 514(c) (20 U.S.C. 1103c(c)), by striking 
        ``section 505'' and inserting ``section 504''.

SEC. 504. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.

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

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

``SEC. 511. PURPOSES.

    ``The purposes of this part are--
            ``(1) to expand postbaccalaureate educational opportunities 
        for, and improve the academic attainment of, Hispanic students; 
        and
            ``(2) to expand the postbaccalaureate academic offerings 
        and enhance the program quality in the institutions that are 
        educating the majority of Hispanic college students and helping 
        large numbers of Hispanic and low-income students complete 
        postsecondary degrees.

``SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY.

    ``(a) Program Authorized.--Subject to the availability of funds 
appropriated to carry out this part, the Secretary shall award 
competitive grants to Hispanic-serving institutions determined by the 
Secretary to be making substantive contributions to graduate 
educational opportunities for Hispanic students.
    ``(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(a)(2); 
        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 of classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services.
            ``(3) Purchase of library books, periodicals, technical and 
        other scientific journals, microfilm, microfiche, and other 
        educational materials, including telecommunications program 
        materials.
            ``(4) Support for 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 in programs and 
professions in which Hispanic Americans are underrepresented.
    ``(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 one 
grant under this part in any fiscal year to any Hispanic-serving 
institution.''.
    (b) Cooperative Arrangements.--Section 524(a) (as redesignated by 
subsection (a)(2)) (20 U.S.C. 1103c(a)) is amended by inserting ``and 
section 513'' after ``section 503''.

SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

    Subsection (a) of section 528 (as redesignated by section 504(a)(2) 
of this Act) (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 and part C of this title $96,000,000 for 
        fiscal year 2006 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 $59,000,000 for fiscal year 2006 
        and such sums as may be necessary for each of the 5 succeeding 
        fiscal years.''.

                     TITLE VI--TITLE VI AMENDMENTS

SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.

    (a) Findings and Purposes.--Section 601 (20 U.S.C. 1121) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``post-Cold War'' in paragraph (3);
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                    (C) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) The events and aftermath of September 11, 2001, have 
        underscored the need for the Nation to strengthen and enhance 
        American knowledge of international relations, world regions, 
        and foreign languages. Homeland security and effective United 
        States engagement abroad depend upon an increased number of 
        Americans who have received such training and are willing to 
        serve their Nation.'';
            (2) in subsection (b)(1)--
                    (A) by striking ``; and'' at the end of 
                subparagraph (D) and inserting ``, including through 
                linkages overseas with institutions of higher education 
                and relevant organizations that contribute to the 
                educational programs assisted under this part;'';
                    (B) by inserting ``and'' after the semicolon at the 
                end of subparagraph (E);
                    (C) by inserting after such subparagraph (E) the 
                following new subparagraph:
            ``(F) to assist the national effort to educate and train 
        citizens to participate in the efforts of homeland security;''; 
        and
            (3) in subsection (b)(3)--
                    (A) by inserting ``reinforce and'' before 
                ``coordinate''; and
                    (B) by inserting ``, and international business and 
                trade competitiveness'' before the period.
    (b) Graduate and Undergraduate Language and Area Centers and 
Programs.--Section 602(a) (20 U.S.C. 1122(a)) is amended--
            (1) in paragraph (1), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--The Secretary is authorized to 
                make grants to institutions of higher education or 
                consortia of such institutions for the purpose of 
                establishing, strengthening, and operating--
                            ``(i) comprehensive foreign language and 
                        area or international studies centers and 
                        programs; and
                            ``(ii) a diverse network of undergraduate 
                        foreign language and area or international 
                        studies centers and programs.'';
            (2) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (G);
                    (B) by striking the period at the end of 
                subparagraph (H) and inserting a semicolon; and
                    (C) by inserting after subparagraph (H) the 
                following new subparagraphs:
                    ``(I) supporting instructors of the less commonly 
                taught languages;
                    ``(J) widely disseminating materials developed by 
                the center or program to local educational agencies and 
                public and private elementary and secondary education 
                schools, and institutions of higher education, 
                presented from diverse perspectives and reflective of a 
                wide range of views on the subject matter, except that 
                no more than 50 percent of funds awarded to an 
                institution of higher education or consortia of such 
                institutions for purposes under this title may be 
                associated with the costs of dissemination; and
                    ``(K) projects that support in students an 
                understanding of science and technology in coordination 
                with foreign language proficiency.''; and
            (3) in paragraph (4)--
                    (A) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Partnerships or programs of linkage and 
                outreach with 2-year and 4-year colleges and 
                universities, including colleges of education and 
                teacher professional development programs.'';
                    (B) in subparagraph (C), by striking ``Programs of 
                linkage or outreach'' and inserting ``Partnerships or 
                programs of linkage and outreach'';
                    (C) in subparagraph (E)--
                            (i) by striking ``foreign area'' and 
                        inserting ``area studies'';
                            (ii) by striking ``of linkage and 
                        outreach''; and
                            (iii) by striking ``(C), and (D)'' and 
                        inserting ``(D), and (E)'';
                    (D) by redesignating subparagraphs (C), (D), and 
                (E) as subparagraphs (D), (E), and (F), respectively; 
                and
                    (E) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) Partnerships with local educational agencies 
                and public and private elementary and secondary 
                education schools that are designed to increase student 
                academic achievement in foreign language and knowledge 
                of world regions, and to facilitate the wide 
                dissemination of materials related to area studies, 
                foreign languages, and international studies that are 
                reflective of a wide range of views on the subject 
                matter.''.
    (c) Language Resource Centers.--Section 603(c) (20 U.S.C. 1123(c)) 
is amended by inserting ``reflect the purposes of this part and'' after 
``shall''.
    (d) Undergraduate International Studies and Foreign Language 
Programs.--Section 604 (20 U.S.C. 1124) is amended--
            (1) in subsection (a)(1), by striking ``combinations'' each 
        place it appears and inserting ``consortia'';
            (2) in subsection (a)(2)--
                    (A) in subparagraph (B)(ii), by striking ``teacher 
                training'' and inserting ``teacher professional 
                development'';
                    (B) by redesignating subparagraphs (I) through (M) 
                as subparagraphs (J) through (N), respectively;
                    (C) by inserting after subparagraph (H) the 
                following new subparagraph:
                    ``(I) the provision of grants for educational 
                programs abroad that are closely linked to the 
                program's overall goals and have the purpose of 
                promoting foreign language fluency and knowledge of 
                world regions, except that not more than 10 percent of 
                a grant recipient's funds may be used for this 
                purpose;''; and
                    (D) in subparagraph (M)(ii) (as redesignated by 
                subparagraph (B) of this paragraph), by striking 
                ``elementary and secondary education institutions'' and 
                inserting ``local educational agencies and public and 
                private elementary and secondary education schools'';
            (3) in subsection (a)(4)(B), by inserting ``that 
        demonstrates a need for a waiver or reduction'' before the 
        period at the end;
            (4) in subsection (a)(6), by inserting ``reflect the 
        purposes of this part and'' after ``shall'';
            (5) in subsection (a)(8), by striking ``may'' and inserting 
        ``shall''; and
            (6) by striking subsection (c).
    (e) Research; Studies; Annual Report.--Section 605(a) (20 U.S.C. 
1125(a)) is amended by inserting before the period at the end of the 
first sentence the following: ``, including the systematic collection, 
analysis, and dissemination of data''.
    (f) Technological Innovation and Cooperation for Foreign 
Information Access.--Section 606 (20 U.S.C. 1126) is amended--
            (1) in subsection (a)--
                    (A) by striking ``or consortia of such institutions 
                or libraries'' and inserting ``museums, or consortia of 
                such entities'';
                    (B) by striking ``new''; and
                    (C) by inserting ``from foreign sources'' after 
                ``disseminate information'';
            (2) in subsection (b)--
                    (A) by inserting ``acquire and'' before 
                ``facilitate access'' in paragraph (1);
                    (B) by striking ``new means of'' in paragraph (3) 
                and inserting ``new means and standards for'';
                    (C) by striking ``and'' at the end of paragraph 
                (6);
                    (D) by striking the period at the end of paragraph 
                (7) and by inserting a semicolon; and
                    (E) by inserting after paragraph (7) the following 
                new paragraphs:
            ``(8) to establish linkages between grant recipients under 
        subsection (a) with libraries, museums, organizations, or 
        institutions of higher education located overseas to facilitate 
        carrying out the purposes of this section; and
            ``(9) to carry out other activities deemed by the Secretary 
        to be consistent with the purposes of this section.''; and
            (3) by adding at the end the following new subsection:
    ``(e) Special Rule.--The Secretary may waive or reduce the required 
non-Federal share for institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction.''.
    (g) Selection of Grant Recipients.--Section 607(b) (20 U.S.C. 
1127(b)) is amended--
            (1) by striking ``objectives'' and inserting ``missions''; 
        and
            (2) by adding at the end the following new sentence: ``In 
        keeping with the purposes of this part, the Secretary shall 
        take into account the degree to which activities of centers, 
        programs, and fellowships at institutions of higher education 
        address national interests, generate and disseminate 
        information, and foster debate on international issues from 
        diverse perspectives.''.
    (h) Equitable Distribution.--Section 608(a) (20 U.S.C. 1128(a)) is 
amended by adding at the end the following new sentence: ``Grants made 
under section 602 shall also reflect the purposes of this part.''.
    (i) Authorization of Appropriations.--Section 610 (20 U.S.C. 1128b) 
is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (j) Conforming Amendments.--
            (1) Sections 603(a), 604(a)(5), and 612 (20 U.S.C. 1123(a), 
        1124(a)(5), 1130-1) are each amended by striking 
        ``combinations'' each place it appears and inserting 
        ``consortia''.
            (2) Section 612 (20 U.S.C. 1130-1) is amended by striking 
        ``combination'' each place it appears and inserting 
        ``consortium'' .

SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

    (a) Centers for International Business Education.--Section 612 (20 
U.S.C. 1130-1) is amended--
            (1) in subsection (c)(1)(D), by inserting ``(including 
        those that are eligible to receive assistance under part A or B 
        of title III or under title V)'' after ``other institutions of 
        higher education''; and
            (2) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(5) Special rule.--The Secretary may waive or reduce the 
        required non-Federal share for institutions that--
                    ``(A) are eligible to receive assistance under part 
                A or B of title III or under title V; and
                    ``(B) have submitted a grant application under this 
                section that demonstrates a need for a waiver or 
                reduction.''.
    (b) Education and Training Programs.--Section 613 (20 U.S.C. 1130a) 
is amended by adding at the end the following new subsection:
    ``(e) Special Rule.--The Secretary may waive or reduce the required 
non-Federal share for institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction.''.
    (c) Authorization of Appropriations.--Section 614 (20 U.S.C. 1130b) 
is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2006''; and
            (2) by striking ``4 succeeding'' each place it appears and 
        inserting ``5 succeeding''.

SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

    (a) Foreign Service Professional Development.--Section 621 (20 
U.S.C. 1131) is amended--
            (1) by striking the heading of such section and inserting 
        the following:

``SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFESSIONALS.'';

            (2) by striking the second sentence of subsection (a) and 
        inserting the following: ``The Institute shall conduct a 
        program to enhance the international competitiveness of the 
        United States by increasing the participation of 
        underrepresented populations in the international service, 
        including private international voluntary organizations and the 
        foreign service of the United States.''; and
            (3) in subsection (b)(1), by striking subparagraphs (A) and 
        (B) and inserting the following:
                    ``(A) A Tribally Controlled College or University 
                or Alaska Native or Native Hawaiian-serving institution 
                eligible for assistance under title III, an institution 
                eligible for assistance under part B of title III, or a 
                Hispanic-serving institution eligible for assistance 
                under title V.
                    ``(B) An institution of higher education which 
                serves substantial numbers of underrepresented 
                students.''.
    (b) Institutional Development.--Section 622 (20 U.S.C. 1131-1) is 
amended by inserting before the period at the end of subsection (a) the 
following: ``and promote collaboration with colleges and universities 
that receive funds under this title''.
    (c) Study Abroad Program.--Section 623(a) (20 U.S.C. 1131a(a)) is 
amended by inserting after ``1978,'' the following: ``Alaska Native-
serving, Native Hawaiian-serving, and Hispanic-serving institutions,''.
    (d) Advanced Degree in International Relations.--Section 624 (20 
U.S.C. 1131b) is amended--
            (1) by striking ``masters'' in the heading of such section 
        and inserting ``advanced'';
            (2) by striking ``a masters degree in international 
        relations'' and inserting ``an advanced degree in international 
        relations, international affairs, international economics, or 
        other academic areas related to the Institute fellow's career 
        objectives''; and
            (3) by striking ``The masters degree program designed by 
        the consortia'' and inserting ``The advanced degree study 
        program shall be designed by the consortia, consistent with the 
        fellow's career objectives, and''.
    (e) Internships.--Section 625 (20 U.S.C. 1131c) is amended--
            (1) in subsection (a), by inserting after ``1978,'' the 
        following: ``Alaska Native-serving, Native Hawaiian-serving, 
        and Hispanic-serving institutions,'';
            (2) in subsection (b)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of paragraph (2);
                    (B) by striking ``; and'' at the end of paragraph 
                (3) and inserting a period; and
                    (C) by striking paragraph (4); and
            (3) by amending subsection (c) to read as follows:
    ``(c) Ralph J. Bunche Fellows.--In order to assure the recognition 
and commitment of individuals from underrepresented student populations 
who demonstrate special interest in international affairs and language 
study, eligible students who participate in the internship programs 
authorized under (a) and (b) shall be known as the `Ralph J. Bunche 
Fellows'.''.
    (f) Report.--Section 626 (20 U.S.C. 1131d) is amended by striking 
``annually prepare a report'' and inserting ``prepare a report 
biennially''.
    (g) Authorization of Appropriations.--Section 628 (20 U.S.C. 1131f) 
is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 604. EVALUATION, OUTREACH, AND DISSEMINATION.

    Part D of title VI is amended by inserting after section 631 (20 
U.S.C. 1132) the following new section:

``SEC. 632. EVALUATION, OUTREACH, AND DISSEMINATION.

    ``The Secretary may use not more than one percent of the funds made 
available for this title for program evaluation, national outreach, and 
information dissemination activities.''.

SEC. 605. ADVISORY BOARD.

    Part D of title VI is amended by inserting after section 632 (as 
added by section 604) the following new section:

``SEC. 633. INTERNATIONAL HIGHER EDUCATION ADVISORY BOARD.

    ``(a) Establishment and Purpose.--
            ``(1) Establishment.--There is established in the 
        Department an independent International Higher Education 
        Advisory Board (hereafter in this section referred to as the 
        `International Advisory Board'). The International Advisory 
        Board shall provide advice, counsel, and recommendations to the 
        Secretary and the Congress on international education issues 
        for higher education.
            ``(2) Purpose.--The purpose of the International Advisory 
        Board is--
                    ``(A) to provide expertise in the area of national 
                needs for proficiency in world regions, foreign 
                languages, international affairs, and international 
                business;
                    ``(B) to make recommendations that will promote the 
                excellence of international education programs and 
                result in the growth and development of such programs 
                at the postsecondary education level that will reflect 
                diverse perspectives and a wide range of views on world 
                regions, foreign language, international affairs, and 
                international business; and
                    ``(C) to advise the Secretary and the Congress with 
                respect to needs for expertise in government, the 
                private sector, and education in order to enhance 
                America's understanding of, and engagement in, the 
                world.
    ``(b) Independence of International Advisory Board.--In the 
exercise of its functions, powers, and duties, the International 
Advisory Board shall be independent of the Secretary and the other 
offices and officers of the Department. Except as provided in this 
subsection and subsection (f), the recommendations of the International 
Advisory Board shall not be subject to review or approval by any 
officer of the Federal Government. Nothing in this title shall be 
construed to authorize the International Advisory Board to mandate, 
direct, or control an institution of higher education's specific 
instructional content, curriculum, or program of instruction or 
instructor. The International Advisory Board is authorized to assess a 
sample of activities supported under this title, using materials that 
have been submitted to the Department of Education by grant recipients 
under this title, in order to provide recommendations to the Secretary 
and the Congress for the improvement of programs under the title and to 
ensure programs meet the purposes of the title to promote the study of 
and expertise in foreign language and world regions, especially with 
respect to diplomacy, national security, and international business and 
trade competitiveness. The recommendations of the International 
Advisory Board may address any area in need of improvement, except that 
any recommendation of specific legislation to Congress shall be made 
only if the President deems it necessary and expedient.
    ``(c) Membership.--
            ``(1) Appointment.--The International Advisory Board shall 
        have 7 members of whom--
                    ``(A) 3 members shall be appointed by the 
                Secretary;
                    ``(B) 2 members shall be appointed by the Speaker 
                of the House of Representatives, upon the 
                recommendation of the Majority Leader and the Minority 
                Leader; and
                    ``(C) 2 members shall be appointed by the President 
                pro tempore of the Senate, upon the recommendation of 
                the Majority Leader and the Minority Leader.
            ``(2) Representation.--Two of the members appointed by the 
        Secretary under paragraph (1)(A) shall be appointed to 
        represent Federal agencies that have diplomacy, national 
        security, international commerce, or other international 
        activity responsibilities, after consultation with the heads of 
        such agencies. The members of the International Advisory Board 
        shall also include (but not be limited to) persons with 
        international expertise representing States, institutions of 
        higher education, cultural organizations, educational 
        organizations, international business, local education 
        agencies, students, and private citizens with expertise in 
        international concerns.
            ``(3) Qualification.--Members of the International Advisory 
        Board shall be individuals who have technical qualifications, 
        professional standing, experience working in international 
        affairs or foreign service or international business 
        occupations, or demonstrated knowledge in the fields of higher 
        education and international education, including foreign 
        languages, world regions, or international affairs.
    ``(d) Functions of the International Advisory Board.--
            ``(1) In general.--The International Advisory Board shall 
        provide recommendations in accordance with subsection (b) 
        regarding improvement of programs under this title to the 
        Secretary and the Congress for their review. The International 
        Advisory Board may--
                    ``(A) review and comment upon the regulations for 
                grants under this title;
                    ``(B) assess a sample of activities supported under 
                this title based on the purposes and objectives of this 
                title, using materials that have been submitted to the 
                Department of Education by grant recipients under this 
                title, in order to provide recommendations for 
                improvement of the programs under this title;
                    ``(C) make recommendations that will assist the 
                Secretary and the Congress to improve the programs 
                under this title to better reflect the national needs 
                related to foreign languages, world regions, diplomacy, 
                national security, and international business and trade 
                competitiveness, including an assessment of the 
                national needs and the training provided by the 
                institutions of higher education that receive a grant 
                under this title for expert and non-expert level 
                foreign language training;
                    ``(D) make recommendations to the Secretary and the 
                Congress regarding such studies, surveys, and analyses 
                of international education that will provide feedback 
                about the programs under this title and assure that 
                their relative authorized activities reflect diverse 
                perspectives and a wide range of views on world 
                regions, foreign languages, diplomacy, national 
                security, and international business and trade 
                competitiveness;
                    ``(E) make recommendations that will strengthen the 
                partnerships between local educational agencies, public 
                and private elementary and secondary education schools, 
                and grant recipients under this title to ensure that 
                the research and knowledge about world regions, foreign 
                languages, and international affairs is widely 
                disseminated to local educational agencies;
                    ``(F) make recommendations on how institutions of 
                higher education that receive a grant under this title 
                can encourage students to serve the Nation and meet 
                national needs in an international affairs, 
                international business, foreign language, or national 
                security capacity;
                    ``(G) make recommendations on how linkages between 
                institutions of higher education and public and private 
                organizations that are involved in international 
                education, international business and trade 
                competitiveness, language training, and international 
                research capacities may fulfill the manpower and 
                information needs of United States businesses; and
                    ``(H) make recommendations to the Secretary and the 
                Congress about opportunities for underrepresented 
                populations in the areas of foreign language study, 
                diplomacy, international business and trade 
                competitiveness, and international economics, in order 
                to effectively carry out the activities of the 
                Institute under part C.
            ``(2) Hearings.--The International Advisory Board shall 
        provide for public hearing and comment regarding the matter 
        contained in the recommendations described in paragraph (1), 
        prior to the submission of those recommendations to the 
        Secretary and the Congress.
    ``(e) Operations of the Committee.--
            ``(1) Terms.--Each member of the International Advisory 
        Board shall be appointed for a term of 3 years, except that, of 
        the members first appointed (A) 4 shall be appointed for a term 
        of 3 years, and (B) 3 shall be appointed for a term of 4 years, 
        as designated at the time of appointment by the Secretary. A 
        member of the International Advisory Board may be reappointed 
        to successive terms on the International Advisory Board.
            ``(2) Vacancies.--Any member appointed to fill a vacancy 
        occurring prior to the expiration of the term of a predecessor 
        shall be appointed only for the remainder of such term. A 
        member of the International Advisory Board shall, upon the 
        Secretary's request, continue to serve after the expiration of 
        a term until a successor has been appointed.
            ``(3) No governmental members.--Except for the members 
        appointed by the Secretary under subsection (c)(1)(A), no 
        officers or full-time employees of the Federal Government shall 
        serve as members of the International Advisory Board.
            ``(4) Meetings.--The International Advisory Board shall 
        meet not less than once each year. The International Advisory 
        Board shall hold additional meetings at the call of the Chair 
        or upon the written request of not less than 3 voting members 
        of the International Advisory Board.
            ``(5) Quorum.--A majority of the voting members of the 
        International Advisory Board serving at the time of a meeting 
        shall constitute a quorum.
            ``(6) Chair.--The International Advisory Board shall elect 
        a Chairman or Chairwoman from among the members of the 
        International Advisory Board.
    ``(f) Submission to Department for Comment.--The International 
Advisory Board shall submit its proposed recommendations to the 
Secretary of Education for comment for a period not to exceed 30 days 
in each instance.
    ``(g) Personnel and Resources.--
            ``(1) Compensation and expense.--Members of the 
        International Advisory Board shall serve without pay for such 
        service. Members of the International Advisory Board who are 
        officers or employees of the United States may not receive 
        additional pay, allowances, or benefits by reason of their 
        service on the International Advisory Board. Members of the 
        International Advisory Board may each receive reimbursement for 
        travel expenses incident to attending International Advisory 
        Board meetings, including per diem in lieu of subsistence, as 
        authorized by section 5703 of title 5, United States Code, for 
        persons in the Government service employed intermittently.
            ``(2) Personnel.--The International Advisory Board may 
        appoint such personnel as may be determined necessary by the 
        Chairman without regard to the provisions of title 5, United 
        States Code, governing appointments in the competitive service, 
        and may be paid without regard to the provisions of chapter 51 
        and subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates, but no 
        individual so appointed shall be paid in excess of the maximum 
        rate payable under section 5376 of such title. The 
        International Advisory Board may appoint not more than one 
        full-time equivalent, nonpermanent, consultant without regard 
        to the provisions of title 5, United States Code. The 
        International Advisory Board shall not be required by the 
        Secretary to reduce personnel to meet agency personnel 
        reduction goals.
            ``(3) Consultation.--In carrying out its duties under the 
        Act, the International Advisory Board shall consult with other 
        Federal agencies, representatives of State and local 
        governments, and private organizations to the extent feasible.
            ``(4) Assistance from other agencies.--
                    ``(A) Information.--The International Advisory 
                Board is authorized to secure directly from any 
                executive department, bureau, agency, board, 
                commission, office, independent establishment, or 
                instrumentality information, suggestions, estimates, 
                and statistics for the purpose of this section and each 
                such department, bureau, agency, board, commission, 
                office, independent establishment, or instrumentality 
                is authorized and directed, to the extent permitted by 
                law, to furnish such information, suggestions, 
                estimates, and statistics directly to the International 
                Advisory Board, upon request made by the Chairman for 
                the purpose of providing expertise in the area of 
                national needs for the proficiency in world regions, 
                foreign languages, and international affairs.
                    ``(B) Services and personnel.--The head of each 
                Federal agency shall, to the extent not prohibited by 
                law, consult with the International Advisory Board in 
                carrying out this section. The International Advisory 
                Board is authorized to utilize, with their consent, the 
                services, personnel, information, and facilities of 
                other Federal, State, local, and private agencies with 
                or without reimbursement, for the purpose of providing 
                expertise in the area of national needs for the 
                proficiency in world regions, foreign languages, and 
                international affairs.
            ``(5) Contracts; experts and consultants.--The 
        International Advisory Board may enter into contracts for the 
        acquisition of information, suggestions, estimates, and 
        statistics for the purpose of this section. The International 
        Advisory Board is authorized to obtain the services of experts 
        and consultants without regard to section 3109 of title 5, 
        United States Code and to set pay in accordance with such 
        section.
    ``(h) Termination.--Notwithstanding the sunset and charter 
provisions of the Federal Advisory Committee Act (5 U.S.C. App. I) or 
any other statute or regulation, the International Advisory Board shall 
be authorized through September 30, 2012.
    ``(i) Funds.--The Secretary shall use not more than one-half of the 
funds available to the Secretary under section 632 to carry out this 
section.''.

SEC. 606. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING 
              INFORMATION; SAFETY.

    Part D of title VI is amended by inserting after section 633 (as 
added by section 605) the following new sections:

``SEC. 634. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING 
              INFORMATION.

    ``Each institution of higher education that receives a grant under 
this title shall assure that--
            ``(1) recruiters of the United States Government and 
        agencies thereof are given the same access to students as is 
        provided generally to other institutions of higher education 
        and prospective employers of those students for the purpose of 
        recruiting for graduate opportunities or prospective 
        employment; and
            ``(2) no undue restrictions are placed upon students that 
        seek employment with the United States Government or any agency 
        thereof.

``SEC. 635. STUDENT SAFETY.

    ``Applicants seeking funds under this title to support student 
travel and study abroad shall submit as part of their grant application 
a description of safety policies and procedures for students 
participating in the program while abroad.''.

SEC. 607. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

    Part D of title VI is further amended by inserting after section 
635 (as added by section 606) the following new section:

``SEC. 636. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

    ``(a) Study.--The Secretary of Education, in consultation with the 
International Advisory Board, shall conduct a study to identify foreign 
language heritage communities, particularly such communities that 
include speakers of languages that are critical to the national 
security of the United States.
    ``(b) Foreign Language Heritage Community.--For purposes of this 
section, the term `foreign language heritage community' means a 
community of residents or citizens of the United States who are native 
speakers of, or who have partial fluency in, a foreign language.
    ``(c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Education shall submit a report 
to the Congress on the results of the study conducted under this 
section.''.

                    TITLE VII--TITLE VII AMENDMENTS

SEC. 701. JAVITS FELLOWSHIP PROGRAM.

    (a) Authority and Timing of Awards.--Section 701(a) (20 U.S.C. 
1132a(a)) is amended by inserting after the second sentence the 
following: ``For purposes of the exception in the preceding sentence, a 
master's degree in fine arts shall be considered a terminal degree.''.
    (b) Interruptions of Study.--Section 701(c) (20 U.S.C. 1134(c)) is 
amended by adding at the end the following new sentence: ``In the case 
of other exceptional circumstances, such as active duty military 
service or personal or family member illness, the institution of higher 
education may also permit the fellowship recipient to interrupt periods 
of study for the duration of the tour of duty (in the case of military 
service) or not more than 12 months (in any other case), but without 
payment of the stipend.''.
    (c) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C. 
1134a(a)(1)) is amended--
            (1) in the first sentence, by inserting ``from diverse 
        geographic regions'' after ``higher education''; and
            (2) by adding at the end the following new sentence: ``The 
        Secretary shall also assure that at least one representative 
        appointed to the Board represents an institution that is 
        eligible for a grant under title III or V of this Act.''.
    (d) Stipends.--Section 703 (20 U.S.C. 1134b(a)) is amended--
            (1) in subsection (a)--
                    (A) by striking ``1999-2000'' and inserting ``2006-
                2007'';
                    (B) by striking ``shall be set'' and inserting 
                ``may be set''; and
                    (C) by striking ``Foundation graduate fellowships'' 
                and inserting ``Foundation Graduate Research Fellowship 
                Program on February 1 of such academic year''; and
            (2) in subsection (b), by amending paragraph (1)(A) to read 
        as follows:
            ``(1) In general.--(A) The Secretary shall (in addition to 
        stipends paid to individuals under this subpart) pay to the 
        institution of higher education, for each individual awarded a 
        fellowship under this subpart at such institution, an 
        institutional allowance. Except as provided in subparagraph 
        (B), such allowance shall be, for 2006-2007 and succeeding 
        academic years, the same amount as the institutional payment 
        made for 2005-2006 adjusted for 2006-2007 and annually 
        thereafter in accordance with inflation as determined by the 
        Department of Labor's Consumer Price Index for All Urban 
        Consumers for the previous calendar year.''.
    (e) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2006 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.

SEC. 702. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

    (a) Designation of Areas of National Need; Priority.--Section 712 
(20 U.S.C. 1135a) is amended--
            (1) in the last sentence of subsection (b)--
                    (A) by striking ``and an assessment'' and inserting 
                ``an assessment''; and
                    (B) by inserting before the period at the end the 
                following: ``, and the priority described in subsection 
                (c) of this section''; and
            (2) by adding at the end the following new subsection:
    ``(c) Priority.--The Secretary shall establish a priority for 
grants in order to prepare individuals for the professoriate who will 
train highly-qualified elementary and secondary math and science 
teachers, special education teachers, and teachers who provide 
instruction for limited English proficient individuals. Such grants 
shall offer program assistance and graduate fellowships for--
            ``(1) post-baccalaureate study related to teacher 
        preparation and pedagogy in math and science for students who 
        have completed a master's degree or are pursuing a doctorate of 
        philosophy in math and science;
            ``(2) post-baccalaureate study related to teacher 
        preparation and pedagogy in special education and English 
        language acquisition and academic proficiency for limited 
        English proficient individuals; and
            ``(3) support of dissertation research in the fields of 
        math, science, special education, or second language pedagogy 
        and second language acquisition.''.
    (b) Collaboration Required for Certain Applications.--Section 
713(b) (20 U.S.C. 1135b) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by redesignating paragraph (10) as paragraph (11); and
            (3) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) in the case of an application for a grant by a 
        department, program, or unit in education or teacher 
        preparation, contain assurances that such department, program, 
        or unit collaborates with departments, programs, or units in 
        all content areas to assure a successful combination of 
        training in both teaching and such content; and''.
    (c) Stipends.--Section 714(b) (20 U.S.C. 1135c(b)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2006-2007'';
            (2) by striking ``shall be set'' and inserting ``may be 
        set''; and
            (3) by striking ``Foundation graduate fellowships'' and 
        inserting ``Foundation Graduate Research Fellowship Program on 
        February 1 of such academic year''.
    (d) Additional Assistance.--Section 715(a)(1) (20 U.S.C. 
1135d(a)(1)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2006-2007'';
            (2) by striking ``1998-1999'' and inserting ``2005-2006''; 
        and
            (3) by inserting ``for All Urban Consumers'' after ``Price 
        Index''.
    (e) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2006 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.
    (f) Technical Amendments.--Section 714(c) (20 U.S.C. 1135c(c)) is 
amended--
            (1) by striking ``section 716(a)'' and inserting ``section 
        715(a)''; and
            (2) by striking ``section 714(b)(2)'' and inserting 
        ``section 713(b)(2)''.

SEC. 703. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

    (a) Contract and Grant Purposes.--Section 721(c) (20 U.S.C. 
1136(c)) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) to prepare such students for study at accredited law 
        schools and assist them with the development of analytical 
        skills and study methods to enhance their success and promote 
        completion of law school;'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(6) to award Thurgood Marshall Fellowships to eligible 
        law school students--
                    ``(A) who participated in summer institutes 
                authorized by subsection (d) and who are enrolled in an 
                accredited law school; or
                    ``(B) who are eligible law school students who have 
                successfully completed a comparable summer institute 
                program certified by the Council on Legal Educational 
                Opportunity.''.
    (b) Services Provided.--Section 721(d)(1)(D) (20 U.S.C. 
1136(d)(1)(D)) is amended by inserting ``in analytical skills and study 
methods'' after ``courses''.
    (c) Authorization of Appropriations.--Section 721(h) (20 U.S.C. 
1136(h)) is amended by striking ``1999 and each of the 4 succeeding 
fiscal years'' and inserting ``2006 and each of the 5 succeeding fiscal 
years''.
    (d) General Provisions.--Subsection (e) of section 731 (20 U.S.C. 
1137(e)) is repealed.

SEC. 704. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

    (a) Contract and Grant Purposes.--Section 741(a) (20 U.S.C. 
1138(a)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) the encouragement of the reform and improvement of, 
        and innovation in, postsecondary education and the provision of 
        educational opportunity for all, especially for the non-
        traditional student populations;'';
            (2) in paragraph (2), by inserting before the semicolon at 
        the end the following: ``for postsecondary students, especially 
        institutions, programs, and joint efforts that provide academic 
        credit for programs'';
            (3) by amending paragraph (3) to read as follows:
            ``(3) the establishment of institutions and programs based 
        on the technology of communications, including delivery by 
        distance education;'';
            (4) by amending paragraph (6) to read as follows:
            ``(6) the introduction of institutional reforms designed to 
        expand individual opportunities for entering and reentering 
        postsecondary institutions and pursuing programs of 
        postsecondary study tailored to individual needs;'';
            (5) by striking ``and'' at the end of paragraph (7);
            (6) by striking the period at the end of paragraph (8) and 
        inserting a semicolon; and
            (7) by adding at the end the following new paragraphs:
            ``(9) the provision of support and assistance to programs 
        implementing integrated education reform services in order to 
        improve secondary school graduation and college attendance and 
        completion rates for disadvantaged students, and to programs 
        that reduce postsecondary remediation rates, and improve degree 
        attainment rates, for low-income students and former high 
        school dropouts; and
            ``(10) the assessment, in partnership with a public or 
        private nonprofit institution or agency, of the performance of 
        teacher preparation programs within institutions of higher 
        education in a State, using an assessment which provides 
        comparisons across such schools within the State based upon 
        indicators including teacher candidate knowledge in subject 
        areas in which such candidate has been prepared to teach. ''.
    (b) Prohibition.--Section 741 (20 U.S.C. 1138) is further amended 
by adding at the end the following new subsection:
    ``(c) Prohibition.--No funds made available under this part may be 
used to provide financial assistance to students who do not meet the 
requirements of section 484(a)(5).''.
    (c) Areas of National Need.--Section 744(c) (20 U.S.C. 1138c(c)) is 
amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2)(A) Development of partnerships between local 
        educational agencies and institutions of higher education to 
        establish or expand existing dual enrollment programs at 
        institutions of higher education that allow high school 
        students to earn high school and transferable college credit.
            ``(B) Development of consortia of institutions of higher 
        education to create dual enrollment programs including academic 
        and student support agreements and comprehensive articulation 
        agreements that would allow for the seamless and timeless 
        acquisition of college credits and the transfer of 
        postsecondary academic credits between such institutions, 
        particularly from 2-year to 4-year institutions of higher 
        education.''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) International cooperation, partnerships, or student 
        exchange among postsecondary educational institutions in the 
        United States and abroad.
            ``(5) Establishment of academic programs including graduate 
        and undergraduate courses, seminars and lectures, support of 
        research, and development of teaching materials for the purpose 
        of supporting faculty and academic programs that teach 
        traditional American history (including significant 
        constitutional, political, intellectual, economic, diplomatic, 
        and foreign policy trends, issues, and documents; the history, 
        nature, and development of democratic institutions of which 
        American democracy is a part; and significant events and 
        individuals in the history of the United States).
            ``(6) Support for planning, applied research, training, 
        resource exchanges or technology transfers, the delivery of 
        services, or other activities the purpose of which is to design 
        and implement programs to enable institutions of higher 
        education to work with private and civic organizations to 
        assist communities to meet and address their pressing and 
        severe problems, including economic development, community 
        infrastructure and housing, crime prevention, education, 
        healthcare, self-sufficiency, and workforce preparation. Such 
        activities may include support for the development of 
        coordinated curriculum and internship opportunities for 
        students in disadvantaged communities.''.
    (d) Authorization of Appropriations.--Section 745 (20 U.S.C. 1138d) 
is amended by striking ``$30,000,000 for fiscal year 1999 and such sums 
as may be necessary for each of the 4 succeeding fiscal years'' and 
inserting ``$40,000,000 for fiscal year 2006 and such sums as may be 
necessary for each of the 5 succeeding fiscal years'' .

SEC. 705. URBAN COMMUNITY SERVICE.

    Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.

SEC. 706. DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES 
              RECEIVE A QUALITY HIGHER EDUCATION.

    (a) Serving All Students With Disabilities.--Section 762(a) (20 
U.S.C. 1140a(a)) is amended by striking ``students with learning 
disabilities'' and inserting ``students with disabilities''.
    (b) Authorized Activities.--
            (1) Amendment.--Section 762(b)(2) is amended--
                    (A) in subparagraph (A), by inserting ``in order to 
                improve retention and completion'' after 
                ``disabilities'';
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (E), respectively;
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Effective transition practices.--The 
                development of innovative, effective, and efficient 
                teaching methods and strategies to ensure the smooth 
                transition of students with disabilities from high 
                school to postsecondary education.''; and
                    (D) by inserting after subparagraph (C) (as 
                redesignated by subparagraph (B) of this paragraph) the 
                following new subparagraph:
                    ``(D) Distance learning.--The development of 
                innovative, effective, and efficient teaching methods 
                and strategies to provide faculty and administrators 
                with the ability to provide accessible distance 
                education programs or classes that would enhance access 
                of students with disabilities to higher education, 
                including the use of electronic communication for 
                instruction and advisement.''.
            (2) Conforming amendment.--Section 762(b)(3) is amended by 
        striking ``subparagraphs (A) through (C)'' and inserting 
        ``subparagraphs (A) through (E)''.
    (c) Applications.--Section 763 (20 U.S.C. 1140b) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) a description of how such institution plans to 
        address the activities allowed under this part;'';
            (2) by striking ``and'' at the end of paragraph (2);
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) a description of the extent to which an institution 
        will work to replicate the best practices of institutions of 
        higher education with demonstrated success in serving students 
        with disabilities.''.
    (d) Authorization of Appropriations.--Section 765 (20 U.S.C. 1140d) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2006 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.

                    TITLE VIII--CLERICAL AMENDMENTS

SEC. 801. CLERICAL AMENDMENTS.

    (a) Definition.--Section 103 (20 U.S.C. 1003) (as amended by 
section 102) is further amended--
            (1) by redesignating paragraphs (1) through (16) as 
        paragraphs (2) through (17), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
            ``(1) Authorizing committees.--The term `authorizing 
        committees' means the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        the Workforce of the House of Representatives.''.
    (b) Committees.--
            (1) The following provisions are each amended by striking 
        ``Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees'':
                    (A) Section 428(g) (20 U.S.C. 1078(g)).
                    (B) Section 428A(a)(3) (20 U.S.C. 1078-1(a)(3)), as 
                redesignated by section 430(e)(4).
                    (C) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).
                    (D) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).
                    (E) Section 455(b)(7)(B) (20 U.S.C. 
                1087e(b)(7)(B)), as redesignated by section 423(b)(3).
                    (F) Section 483(c) (20 U.S.C. 1090(c)).
                    (G) Section 486(e) (20 U.S.C. 1093(e)).
                    (H) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
                    (I) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
                    (J) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
                    (K) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
                    (L) Section 487A(b)(3)(B) (20 U.S.C. 
                1094a(b)(3)(B)).
                    (M) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).
                    (N) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).
            (2) The following provisions are each amended by striking 
        ``Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Labor and Human Resources 
        of the Senate'' and inserting ``authorizing committees'':
                    (A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
                    (B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
                    (C) Section 437(c)(1) (20 U.S.C. 1087(c)(1)).
                    (D) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
                    (E) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
            (3) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by 
        striking ``Committee on Appropriations and the Committee on 
        Labor and Human Resources of the Senate and the Committee on 
        Appropriations and the Committee on Education and the Workforce 
        of the House of Representatives'' and inserting ``Committees on 
        Appropriations of the Senate and House of Representatives and 
        the authorizing committees''.
            (4) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is 
        amended by striking ``House Committee on Education and the 
        Workforce and the Senate Committee on Labor and Human 
        Resources'' and inserting ``authorizing committees''.
            (5) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is 
        amended by striking ``Committee on Education and the Workforce 
        of the House of Representatives or the Committee on Labor and 
        Human Resources of the Senate'' and inserting ``either of the 
        authorizing committees''.
            (6) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-
        2(d)(1)(E)(iii)) is amended by striking ``Chairman and the 
        Ranking Member on the Committee on Labor and Human Resources of 
        the Senate and the Chairman and the Ranking Member of the 
        Committee on Education and Labor of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (7) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 
        1087-2(r)) are each amended by striking ``Chairman and ranking 
        minority member of the Committee on Labor and Human Resources 
        of the Senate, the Chairman and ranking minority member of the 
        Committee on Education and Labor of the House of 
        Representatives,'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (8) Paragraphs (5)(B) and (10) of section 439(r) (20 U.S.C. 
        1087-2(r)) are each amended by striking ``Chairman and ranking 
        minority member of the Senate Committee on Labor and Human 
        Resources and to the Chairman and ranking minority member of 
        the House Committee on Education and Labor'' and inserting 
        ``chairpersons and ranking minority members of the authorizing 
        committees''.
            (9) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is 
        amended by striking ``Chairman and ranking minority member of 
        the Committee on Labor and Human Resources of the Senate and to 
        the Chairman and ranking minority member of the Committee on 
        Education and Labor of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (10) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is 
        amended by striking ``Chairman and Ranking Member of the 
        Committee on Labor and Human Resources of the Senate and the 
        Chairman and Ranking Member of the Committee on Economic and 
        Educational Opportunities of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (11) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is 
        amended by striking ``Chairman and Ranking Minority Member of 
        the Committee on Labor and Human Resources of the Senate and 
        Chairman and Ranking Minority Member of the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (12) Section 482(d) (20 U.S.C. 1089(d)) is amended by 
        striking ``Committee on Labor and Human Resources of the Senate 
        and the Committee on Education and Labor of the House of 
        Representatives'' and inserting ``authorizing committees''.
    (c) Additional Clerical Amendments.--
            (1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 
        1075(a)(2)(A)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is 
        amended by striking ``428A or''.
            (3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 
        1078(b)(1)(B)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is 
        amended by striking ``sections 428A and 428B'' and inserting 
        ``section 428B or 428H''.
            (5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is 
        amended by striking ``428A, 428B,'' and inserting ``428B''.
            (6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended 
        by striking ``428A'' and inserting ``428H''.
            (7) The heading for section 433(e) (20 U.S.C. 1083(e)) is 
        amended by striking ``SLS Loans And''.
            (8) Section 433(e) (20 U.S.C. 1083(e)) is amended by 
        striking ``428A, 428B,'' and inserting ``428B''.
            (9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--
                    (A) by inserting ``or'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is 
        amended by striking ``428A(d), 428B(d), 428C,'' and inserting 
        ``428B(d), 428C, 428H,''.
            (11) Section 435(m) (20 U.S.C. 1085(m)) is amended--
                    (A) in paragraph (1)(A), by striking ``, 428A,''; 
                and
                    (B) in paragraph (2)(D), by striking ``428A'' each 
                place it appears and inserting ``428H''.
            (12) Section 438(b)(2)(D)(ii) (20 U.S.C. 1087-
        1(b)(2)(D)(ii)) is amended by striking ``division (i) of this 
        subparagraph'' and inserting ``clause (i) of this 
        subparagraph''.
            (13) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is 
        amended--
                    (A) by striking ``Sls and plus'' in the heading and 
                inserting ``Plus''; and
                    (B) by striking ``428A or''.
            (14) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended 
        by striking ``428A or''.
            (15) Nothing in the amendments made by this subsection 
        shall be construed to alter the terms, conditions, and benefits 
        applicable to Federal supplemental loans for students (``SLS 
        loans'') under section 428A as in effect prior to July 1, 1994 
        (20 U.S.C. 1078-1).

              TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

    (a) General Authority.--Section 104(a)(1)(A) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting 
after ``maintain and operate'' the following: ``, at the Laurent Clerc 
National Deaf Education Center,''.
    (b) Administrative Requirements.--
            (1) In general.--Section 104(b) of the Education of the 
        Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1), by striking ``elementary and secondary 
                education programs'' and inserting ``Laurent Clerc 
                National Deaf Education Center''; and
                    (B) in paragraph (2), by striking ``elementary and 
                secondary education programs'' and inserting ``Laurent 
                Clerc National Deaf Education Center''.
            (2) Academic content standards, achievement standards, and 
        assessments.--Section 104(b) of the Education of the Deaf Act 
        of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the 
        following new paragraph:
    ``(5) The University, in consultation with the Secretary and 
consistent with the mission of the elementary and secondary programs 
operated at the Laurent Clerc National Deaf Education Center, shall--
            ``(A) not later than the beginning of the 2007-2008 school 
        year, adopt and implement academic content standards, academic 
        achievement standards, and academic assessments as described in 
        paragraphs (1) and (3) of section 1111(b) of the Elementary and 
        Secondary Education Act of 1965 for such Center;
            ``(B) develop adequate yearly progress standards for such 
        Center as described in section 1111(b)(2)(C) of such Act; and
            ``(C) publicly report the results of such assessments, 
        except in such case in which such reporting would not yield 
        statistically reliable information or would reveal personally 
        identifiable information about an individual student.''.

SEC. 902. AUTHORITY.

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

SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

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

SEC. 904. DEFINITIONS.

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

SEC. 905. AUDIT.

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

SEC. 906. REPORTS.

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

SEC. 907. LIAISON FOR EDUCATIONAL PROGRAMS.

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

SEC. 908. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE 
              NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

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

SEC. 909. OVERSIGHT AND EFFECT OF AGREEMENTS.

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

SEC. 910. AUTHORIZATION OF APPROPRIATIONS.

    (a) Monitoring and Evaluation Activities.--Section 205(c) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by 
striking ``fiscal years 1998 through 2003'' and inserting ``fiscal 
years 2006 through 2011''.
    (b) Federal Endowment Programs for Gallaudet University and the 
National Technical Institute for the Deaf.--Section 207(h) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is amended in 
paragraphs (1) and (2) by striking ``fiscal years 1998 through 2003'' 
each place it appears and inserting ``fiscal years 2006 through 2011''.
    (c) General Authorization of Appropriations.--Section 212 of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
            (1) in the matter preceding paragraph (1) in subsection 
        (a), by striking ``fiscal years 1998 through 2003'' and 
        inserting ``fiscal years 2006 through 2011''; and
            (2) in subsection (b), by striking ``fiscal years 1998 
        through 2003'' and inserting ``fiscal years 2006 through 
        2011''.
    (d) Short Title.--
            (1) In general.--The Education of the Deaf Act of 1986 (20 
        U.S.C. 4301 note) is amended by striking the matter preceding 
        title I and inserting the following:

``SEC. 1. SHORT TITLE.

    ``This Act may be cited as the `Gallaudet University and National 
Technical Institute for the Deaf Act'.''.
            (2) Other references.-- Any reference in a law, regulation, 
        document, or other record of the United States to the Education 
        of the Deaf Act of 1986 shall be deemed to be a reference to 
        the Gallaudet University and National Technical Institute for 
        the Deaf Act.

                   PART B--ADDITIONAL EDUCATION LAWS

SEC. 921. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SURVIVORS OF 
              VICTIMS OF THE SEPTEMBER 11, 2001, ATTACKS.

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

SEC. 922. AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998.

    (a) Repeals of Expired and Executed Provisions.--The following 
provisions of the Higher Education Amendments of 1998 are repealed:
            (1) Study of market mechanisms in federal student loan 
        programs.--Section 801 (20 U.S.C. 1018 note).
            (2) Study of feasibility of alternate financial instruments 
        for determining lender yields.--Section 802.
            (3) Student related debt study.--Section 803 (20 U.S.C. 
        1015 note).
            (4) Study of opportunities for participation in athletic 
        programs.--Section 805 (20 U.S.C. 1001 note).
            (5) Community scholarship mobilization.--Part C of title 
        VIII (20 U.S.C. 1070 note).
            (6) Incarcerated youth.--Part D of title VIII (20 U.S.C. 
        1151).
            (7) Improving united states understanding of science, 
        engineering, and technology in east asia.--Part F of title VIII 
        (42 U.S.C. 1862 note).
            (8) Web-based education commission.--Part J of title VIII.
    (b) Extensions of Authorizations and Studies.--
            (1) Transfer of credit.--Section 804(b) of such Act (20 
        U.S.C. 1099b note) is amended--
                    (A) by striking ``one year after the date of 
                enactment of this Act'' and inserting ``September 30, 
                2007''; and
                    (B) by inserting ``and policies of institutions of 
                higher education'' after ``agencies or associations''.
            (2) Cohort default rate study.--Section 806 of such Act is 
        amended--
                    (A) in subsection (a), by striking ``higher 
                education at which less'' and inserting ``higher 
                education. The study shall also review the effect of 
                cohort default rates specifically on institutions of 
                higher education at which less''; and
                    (B) in subsection (c), by striking ``September 30, 
                1999,'' and inserting ``September 30, 2007,''.
            (3) Violence against women.--Section 826 of such Act (20 
        U.S.C. 1152) is amended--
                    (A) in subsection (g), by striking ``for each of 
                the fiscal years 2001 through 2005'' and inserting 
                ``fiscal year 2006 and each of the 5 succeeding fiscal 
                years''; and
                    (B) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively.
            (4) Underground railroad.--Subsection (c) of section 841 
        (20 U.S.C. 1153(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $3,000,000 for fiscal year 2006 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.''.
    (c) Disbursement of Student Loans.--Section 422(d) of the Higher 
Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1696) is 
amended by adding at the end the following new sentence: ``Such 
amendments shall also be effective on and after July 1, 2006.''.

SEC. 923. TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF 
              1978.

    (a) Title I Authorization.--Section 110(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1810(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2006''; and
            (2) by striking ``4 succeeding'' each place it appears and 
        inserting ``5 succeeding''.
    (b) Title III Reauthorization.--Section 306(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1836(a)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (c) Title IV Reauthorization.--Section 403 of the Tribal Economic 
Development and Technology Related Education Assistance Act of 1990 (25 
U.S.C. 1852) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (d) Additional Amendments.--The Tribally Controlled Community 
College or University Assistance Act of 1978 is further amended--
            (1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking 
        ``in the field of Indian education'' and inserting ``in the 
        field of Tribal Colleges and Universities and Indian higher 
        education'';
            (2) in section 2(b), by striking paragraph (5) and 
        inserting the following:
            ``(5) Eligible credits earned in a continuing education 
        program shall be determined as one credit for every 10 contact 
        hours for institutions on a quarter system, and 15 contact 
        hours for institutions on a semester system, of participation 
        in an organized continuing education experience under 
        responsible sponsorship, capable direction, and qualified 
        instruction, as described in the criteria established by the 
        International Association for Continuing Education and 
        Training, and may not exceed 20 percent of an institution's 
        total Indian student count.''; and
            (3) in section 103 (25 U.S.C. 1804), by striking ``and'' at 
        the end of paragraph (2), by striking the period at the end of 
        paragraph (3) and inserting ``; and'', and by inserting after 
        paragraph (3) the following new paragraph:
            ``(4) has been accredited by a nationally recognized 
        accrediting agency or association determined by the Secretary 
        of Education to be a reliable authority as to the quality of 
        training offered, or is, according to such an agency or 
        association, making reasonable progress toward 
        accreditation.''.

SEC. 924. NAVAJO COMMUNITY COLLEGE ACT.

    Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 
640c-1(a)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 925. EDUCATION AMENDMENTS OF 1992.

    Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070 
note) is amended--
            (1) by striking ``1999'' and inserting ``2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 926. STUDY OF STUDENT LEARNING OUTCOMES AND PUBLIC ACCOUNTABILITY.

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

SEC. 927. STUDY OF MINORITY GRADUATION RATES.

    (a) Study Required.--The Secretary of Education shall--
            (1) commission a national study on the decreasing numbers 
        of underrepresented minority males, particularly African 
        American males, entering and graduating from colleges and 
        universities; and
            (2) make specific recommendations to the Congress on new 
        approaches to increase minority male graduation rates and the 
        number of minority males going into careers where the 
        population is underrepresented.
    (b) Submission of Report.--Not later than one year after the date 
of the enactment this Act, the Secretary shall submit a report on the 
study required by subsection (a)(1), together with the recommendations 
required by subsection (a)(2), 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.

SEC. 928. STUDY OF EDUCATION-RELATED INDEBTEDNESS OF MEDICAL SCHOOL 
              GRADUATES.

    (a) Study Required.--The Secretary of Education shall conduct a 
study to evaluate the higher education-related indebtedness of medical 
school graduates in the United States at the time of graduation.
    (b) Deadline.--Not later than one year after the date of enactment 
of this Act, the Secretary shall submit a report on the study required 
by subsection (a) 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, and shall make the report widely 
available to the public. Additional reports may be periodically 
prepared and released as necessary.

SEC. 929. STUDY OF ADULT LEARNERS.

    The Secretary of Education shall conduct a study of the developing 
trends in older adult learners attending college and how institutions 
of higher education are addressing the needs of this specific 
population in terms of outreach, accessibility, financing, and student 
support services, including online education. The Secretary shall 
submit a report on the study to the Committee on Education and the 
Workforce of the House of Representatives that includes recommendations 
on measures the Federal Government can take to address the needs in 
regards to education and job training for the aging population and the 
changing demographics of our country.

SEC. 930. INCREASE IN COLLEGE TEXTBOOK PRICES.

    (a) Findings.--The Committee on Education and the Workforce of the 
House of Representatives makes the following findings:
            (1) The rising costs of higher education are making a 
        postsecondary education inaccessible for many individuals.
            (2) The rise in college textbook pricing contributes to the 
        overall costs of higher education, and many factors have 
        contributed to the rise in textbook pricing.
    (b) Sense of the Committee on Education and the Workforce.--It is 
the sense of the Committee on Education and the Workforce of the House 
of Representatives that in order to make a higher education more 
accessible for all students, the following should occur to make college 
textbooks more affordable for students:
            (1) The Congress encourages textbook publishers to provide 
        students with the option of buying materials such as textbooks, 
        CD-ROMs, access to websites, and workbooks, ``a la carte'' or 
        ``unbundled''.
            (2) Textbook publishers should work with faculty to 
        understand the cost to students of purchasing the recommended 
        textbooks.
            (3) College bookstores should work with faculty to review 
        timelines and processes for ordering and stocking selected 
        textbooks, and disclose textbook costs to faculty and students.
            (4) Colleges and universities should be encouraged to 
        implement numerous options to address textbook affordability.
                                                 Union Calendar No. 128

109th CONGRESS

  1st Session

                               H. R. 609

                          [Report No. 109-231]

_______________________________________________________________________

                                 A BILL

         To amend and extend the Higher Education Act of 1965.

_______________________________________________________________________

                           September 22, 2005

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed