[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1204 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                S. 1204

   To encourage students to pursue graduate education and to assist 
               students in affording graduate education.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 8, 2005

  Mr. Dodd (for himself, Mr. Durbin, and Ms. Stabenow) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
   To encourage students to pursue graduate education and to assist 
               students in affording graduate education.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Getting Results for Advanced Degrees 
Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) From 1976 to 2000, graduate enrollment in the United 
        States increased 38 percent. In the fall of 2000, there were 
        1,850,000 graduate students enrolled in the United States.
            (2) In 2003, 84 percent of graduate students in the United 
        States were citizens of the United States or resident aliens, 
        and 16 percent were temporary residents who were foreign or 
        international students.
            (3) In a 2002 borrower's survey, the average debt reported 
        by graduate students was $45,900.
            (4) In 1999-2000, 60 percent of all graduate and first-
        professional students, and 82 percent of those enrolled full-
        time and full-year, received some type of financial aid, 
        including grants, loans, assistantships, or work study. The 
        average amount of aid received by aided full-time, full-year 
        students was approximately $19,500 per year.
            (5) Annual aid in the form of grants to full-time, full-
        year recipients was awarded in larger average amounts to 
        doctoral students ($13,400) than to either master's students 
        ($7,600) or first-professional students ($6,900). First-
        professional students took out larger loans on average overall 
        ($20,100) than did their counterparts at the master's level 
        ($14,800) and doctoral level ($14,100).
            (6) Median annual earnings in 2003 increased with 
        educational attainment. There was a substantial earnings 
        differential from the highest to the lowest levels of 
        attainment:
                    (A) The median earnings of workers who had a 
                master's degree were almost twice those of high school 
                graduates and $10,000 more than those of individuals 
                with a bachelor's degree.
                    (B) The median earnings of workers who had a 
                doctoral degree were 2\1/2\ times those of high school 
                graduates, $30,000 more than those of individuals with 
                a bachelor's degree, and $20,000 more than those of 
                individuals with a master's degree.
                    (C) The median earnings of workers with a 
                professional degree were more than 3 times those of 
                high school graduates, almost double those of 
                individuals with a bachelor's degree, $35,000 more than 
                those of individuals with a master's degree, and 
                $15,000 more than those of individuals with a doctoral 
                degree.

SEC. 3. JACOB K. JAVITS FELLOWSHIP PROGRAM.

    (a) Criteria for Awards.--Section 701(a) of the Higher Education 
Act of 1965 (20 U.S.C. 1134(a)) is amended by striking ``, financial 
need,''.
    (b) Qualifications of Board.--Section 702(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1134a(a)) is amended by striking 
paragraph (1) and inserting the following:
            ``(1) Appointment.--
                    ``(A) In general.--The Secretary shall appoint a 
                Jacob K. Javits Fellows Program Fellowship Board 
                (referred to in this subpart as the `Board') consisting 
                of 9 individuals representative of both public and 
                private institutions of higher education who are 
                especially qualified to serve on the Board.
                    ``(B) Qualifications.--In making appointments under 
                subparagraph (A), the Secretary shall--
                            ``(i) give due consideration to the 
                        appointment of individuals who are highly 
                        respected in the academic community;
                            ``(ii) assure that individuals appointed to 
                        the Board are broadly representative of a range 
                        of disciplines in graduate education in arts, 
                        humanities, and social sciences;
                            ``(iii) appoint members to represent the 
                        various geographic regions of the United 
                        States; and
                            ``(iv) include representatives from 
                        minority serving institutions.''.
    (c) Amount of Stipends.--Section 703(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1134b(a)) is amended by striking ``graduate 
fellowships,'' and all that follows through the period and inserting 
``Graduate Research Fellowship Program.''.
    (d) Authorization of Appropriations.--Section 705 of the Higher 
Education Act of 1965 (20 U.S.C. 1134d) is amended by striking 
``$30,000,000 for fiscal year 1999'' and inserting ``$35,000,000 for 
fiscal year 2006''.

SEC. 4. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

    (a) Application Contents.--Section 713(b)(5) of the Higher 
Education Act of 1965 (20 U.S.C. 1135b(b)(5)) is amended--
            (1) by striking subparagraph (A); and
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively.
    (b) Amount of Stipends.--Section 714(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1135c(b)) is amended by striking ``graduate 
fellowships,'' and all that follows through the period and inserting 
``Graduate Research Fellowship Program.''.
    (c) Authorization of Appropriations.--Section 716 of the Higher 
Education Act of 1965 (20 U.S.C. 1135e) is amended by striking 
``$35,000,000 for fiscal year 1999'' and inserting ``$50,000,000 for 
fiscal year 2006''.
    (d) Technical Amendments.--Section 714(c) of the Higher Education 
Act of 1965 (20 U.S.C. 1135c(c)) is amended--
            (1) by striking ``716(a)'' and inserting ``715(a)''; and
            (2) by striking ``714(b)(2)'' and inserting ``713(b)(2)''.

SEC. 5. PATSY T. MINK FELLOWSHIP PROGRAM.

    Part A of title VII of the Higher Education Act of 1965 (20 U.S.C. 
1134 et seq.) is amended--
            (1) by redesignating subpart 4 as subpart 5;
            (2) by redesignating section 731 as section 740;
            (3) in section 740 (as redesignated by paragraph (2))--
                    (A) in the section heading, by striking ``and 3.'' 
                and inserting ``3, and 4.'';
                    (B) in subsection (a), by striking ``and 3'' and 
                inserting ``3, and 4'';
                    (C) in subsection (b), by striking ``and 3'' and 
                inserting ``3, and 4''; and
                    (D) in subsection (d), by striking ``or 3'' and 
                inserting ``3, or 4''; and
            (4) by inserting after subpart 3 the following:

             ``Subpart 4--Patsy T. Mink Fellowship Program

``SEC. 731. PURPOSE AND DESIGNATION.

    ``(a) Purpose.--It is the purpose of this subpart to provide, 
through eligible institutions, a program of fellowship awards to assist 
highly qualified minorities and women to acquire the doctoral degree, 
or highest possible degree available, in academic areas in which such 
individuals are underrepresented for the purpose of enabling such 
individuals to enter the higher education professoriate.
    ``(b) Designation.--Each recipient of a fellowship award from an 
eligible institution receiving a grant under this subpart shall be 
known as a `Patsy T. Mink Graduate Fellow'.

``SEC. 732. DEFINITION OF ELIGIBLE INSTITUTION.

    ``In this subpart, the term `eligible institution' means an 
institution of higher education, or a consortium of such institutions, 
that offers a program of postbaccalaureate study leading to a graduate 
degree.

``SEC. 733. PROGRAM AUTHORIZED.

    ``(a) Grants by Secretary.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible institutions to enable such institutions to make 
        fellowship awards to individuals in accordance with the 
        provisions of this subpart.
            ``(2) Priority consideration.--In awarding grants under 
        this subpart, the Secretary shall consider the eligible 
        institution's prior experience in producing doctoral degree, or 
        highest possible degree available, holders who are minorities 
        and women, and shall give priority consideration in making 
        grants under this subpart to those eligible institutions with a 
        demonstrated record of producing minorities and women who have 
        earned such degrees.
    ``(b) Applications.--
            ``(1) In general.--An eligible institution that desires a 
        grant under this subpart shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(2) Applications made on behalf.--
                    ``(A) In general.--The following entities may 
                submit an application on behalf of an eligible 
                institution:
                            ``(i) A graduate school or department of 
                        such institution.
                            ``(ii) A graduate school or department of 
                        such institution in collaboration with an 
                        undergraduate college or university of such 
                        institution.
                            ``(iii) An organizational unit within such 
                        institution that offers a program of 
                        postbaccalaureate study leading to a graduate 
                        degree, including an interdisciplinary or an 
                        interdepartmental program.
                            ``(iv) A nonprofit organization with a 
                        demonstrated record of helping minorities and 
                        women earn postbaccalaureate degrees.
                    ``(B) Nonprofit organizations.--Nothing in this 
                paragraph shall be construed to permit the Secretary to 
                award a grant under this subpart to an entity other 
                than an eligible institution.
    ``(c) Selection of Applications.--In awarding grants under 
subsection (a), the Secretary shall--
            ``(1) take into account--
                    ``(A) the number and distribution of minority and 
                female faculty nationally;
                    ``(B) the current and projected need for highly 
                trained individuals in all areas of the higher 
                education professoriate; and
                    ``(C) the present and projected need for highly 
                trained individuals in academic career fields in which 
                minorities and women are underrepresented in the higher 
                education professoriate; and
            ``(2) consider the need to prepare a large number of 
        minorities and women generally in academic career fields of 
        high national priority, especially in areas in which such 
        individuals are traditionally underrepresented in college and 
        university faculties.
    ``(d) Distribution and Amounts of Grants.--
            ``(1) Equitable distribution.--In awarding grants under 
        this subpart, the Secretary shall, to the maximum extent 
        feasible, ensure an equitable geographic distribution of awards 
        and an equitable distribution among public and independent 
        eligible institutions that apply for grants under this subpart 
        and that demonstrate an ability to achieve the purpose of this 
        subpart.
            ``(2) Special rule.--To the maximum extent practicable, the 
        Secretary shall use not less than 50 percent of the amount 
        appropriated pursuant to section 736 to award grants to 
        eligible institutions that--
                    ``(A) are eligible for assistance under title III 
                or title V; or
                    ``(B) have formed a consortium that includes both 
                non-minority serving institutions and minority serving 
                institutions.
            ``(3) Allocation.--In awarding grants under this subpart, 
        the Secretary shall allocate appropriate funds to those 
        eligible institutions whose applications indicate an ability to 
        significantly increase the numbers of minorities and women 
        entering the higher education professoriate and that commit 
        institutional resources to the attainment of the purpose of 
        this subpart.
            ``(4) Number of fellowship awards.--An eligible institution 
        that receives a grant under this subpart shall make not less 
        than 15 fellowship awards.
            ``(5) Reallotment.--If the Secretary determines that an 
        eligible institution awarded a grant under this subpart is 
        unable to use all of the grant funds awarded to the 
        institution, the Secretary shall reallot, on such date during 
        each fiscal year as the Secretary may fix, the unused funds to 
        other eligible institutions that demonstrate that such 
        institutions can use any reallocated grant funds to make 
        fellowship awards to individuals under this subpart.
    ``(e) Institutional Allowance.--
            ``(1) In general.--
                    ``(A) Number of allowances.--In awarding grants 
                under this subpart, the Secretary shall pay to each 
                eligible institution awarded a grant, for each 
                individual awarded a fellowship by such institution 
                under this subpart, an institutional allowance.
                    ``(B) Amount.--Except as provided in paragraph (3), 
                an institutional allowance shall be in an amount equal 
                to, for academic year 2006-2007 and succeeding academic 
                years, the amount of institutional allowance made to an 
                institution of higher education under section 715 for 
                such academic year.
            ``(2) Use of funds.--Institutional allowances may be 
        expended in the discretion of the eligible institution and may 
        be used to provide, except as prohibited under paragraph (4), 
        academic support and career transition services for individuals 
        awarded fellowships by such institution.
            ``(3) Reduction.--The institutional allowance paid under 
        paragraph (1) shall be reduced by the amount the eligible 
        institution charges and collects from a fellowship recipient 
        for tuition and other expenses as part of the recipient's 
        instructional program.
            ``(4) Use for overhead prohibited.--Funds made available 
        under this subpart may not be used for general operational 
        overhead of the academic department or institution receiving 
        funds under this subpart.

``SEC. 734. FELLOWSHIP RECIPIENTS.

    ``(a) Authorization.--An eligible institution that receives a grant 
under this subpart shall use the grant funds to make fellowship awards 
to minorities and women who are enrolled at such institution in a 
doctoral degree, or highest possible degree available, program and--
            ``(1) intend to pursue a career in instruction at--
                    ``(A) an institution of higher education (as the 
                term is defined in section 101);
                    ``(B) an institution of higher education (as the 
                term is defined in section 102(a)(1));
                    ``(C) an institution of higher education outside 
                the United States (as the term is described in section 
                102(a)(2)); or
                    ``(D) a proprietary institution of higher education 
                (as the term is defined in section 102(b)); and
            ``(2) sign an agreement with the Secretary agreeing to 
        begin employment at an institution described in paragraph (1) 
        not later than 5 years after receiving the doctoral degree or 
        highest possible degree available, and to be employed by such 
        institution for 1 year for each year of fellowship assistance 
        received under this subpart.
    ``(b) Failure To Comply.--If an individual who receives a 
fellowship award under this subpart fails to comply with the agreement 
signed pursuant to subsection (a)(2), then the Secretary shall do 1 or 
both of the following:
            ``(1) Require the individual to repay all or the applicable 
        portion of the total fellowship amount awarded to the 
        individual by converting the balance due to a loan at the 
        interest rate applicable to loans made under part B of title 
        IV.
            ``(2) Impose a fine or penalty in an amount to be 
        determined by the Secretary.
    ``(c) Waiver and Modification.--
            ``(1) Regulations.--The Secretary shall promulgate 
        regulations setting forth criteria to be considered in granting 
        a waiver for the service requirement under subsection (a)(2).
            ``(2) Content.--The criteria under paragraph (1) shall 
        include whether compliance with the service requirement by the 
        fellowship recipient would be--
                    ``(A) inequitable and represent a substantial 
                hardship; or
                    ``(B) deemed impossible because the individual is 
                permanently and totally disabled at the time of the 
                waiver request.
    ``(d) Amount of Fellowship Awards.--Fellowship awards under this 
subpart shall consist of a stipend in an amount equal to the level of 
support provided to the National Science Foundation graduate fellows, 
except that such stipend shall be adjusted as necessary so as not to 
exceed the fellow's tuition and fees or demonstrated need (as 
determined by the institution of higher education where the graduate 
student is enrolled), whichever is greater.
    ``(e) Academic Progress Required.--An individual student shall not 
be eligible to receive a fellowship award--
            ``(1) except during periods in which such student is 
        enrolled, and such student is maintaining satisfactory academic 
        progress in, and devoting essentially full time to, study or 
        research in the pursuit of the degree for which the fellowship 
        support was awarded; and
            ``(2) if the student is engaged in gainful employment, 
        other than part-time employment in teaching, research, or 
        similar activity determined by the eligible institution to be 
        consistent with and supportive of the student's progress toward 
        the appropriate degree.

``SEC. 735. RULE OF CONSTRUCTION.

    ``Nothing in this subpart shall be construed to require an eligible 
institution that receives a grant under this subpart--
            ``(1) to grant a preference or to differentially treat any 
        applicant for a faculty position as a result of the 
        institution's participation in the program under this subpart; 
        or
            ``(2) to hire a Patsy T. Mink Fellow who completes this 
        program and seeks employment at such institution.

``SEC. 736. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this subpart 
$25,000,000 for fiscal year 2006 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

SEC. 6. COST OF ATTENDANCE FOR STUDENTS WITH 1 OR MORE DEPENDENTS.

    Section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll) 
is amended by striking paragraph (8) and inserting the following:
            ``(8) for a student with 1 or more dependents--
                    ``(A) an allowance based on the estimated actual 
                expenses incurred for such dependent care, based on the 
                number and age of such dependents, except that--
                            ``(i) such allowance shall not exceed the 
                        reasonable cost in the community in which such 
                        student resides for the kind of care provided; 
                        and
                            ``(ii) the period for which dependent care 
                        is required includes class-time, study-time, 
                        field work, internships, and commuting time; 
                        and
                    ``(B) if the student is a graduate student, an 
                allowance based on the estimated actual living expenses 
                incurred for such dependents, based on the number and 
                age of such dependents, including--
                            ``(i) room and board for such dependents; 
                        and
                            ``(ii) health insurance for such 
                        dependents;''.

SEC. 7. UNSUBSIDIZED STAFFORD LOAN LIMITS FOR GRADUATE AND PROFESSIONAL 
              STUDENTS.

    Section 428H(d)(2)(C) of the Higher Education Act of 1965 (20 
U.S.C. 1078-8(d)(2)(C)) is amended by striking ``$10,000'' and 
inserting ``$12,000''.

SEC. 8. ALLOWANCE OF ROOM, BOARD, AND SPECIAL NEEDS SERVICES IN THE 
              CASE OF SCHOLARSHIPS AND TUITION REDUCTION PROGRAMS WITH 
              RESPECT TO HIGHER EDUCATION.

    (a) In General.--Paragraph (1) of section 117(b) of the Internal 
Revenue Code of 1986 (defining qualified scholarship) is amended by 
inserting before the period at the end the following: ``or, in the case 
of enrollment or attendance at an eligible educational institution, for 
qualified higher education expenses''.
    (b) Definitions.--Subsection (b) of section 117 of such Code is 
amended by adding at the end the following new paragraph:
            ``(3) Qualified higher education expenses; eligible 
        educational institution.--The terms `qualified higher education 
        expenses' and `eligible educational institution' have the 
        meanings given such terms in section 529(e).''.
    (c) Tuition Reduction Programs.--Paragraph (5) of section 117(d) of 
such Code (relating to special rules for teaching and research 
assistants) is amended by striking ``shall be applied as if it did not 
contain the phrase `(below the graduate level)'.'' and inserting 
``shall be applied--
                    ``(A) as if it did not contain the phrase `(below 
                the graduate level)', and
                    ``(B) by substituting `qualified higher education 
                expenses' for `tuition' the second place it appears.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid after December 31, 2004 (in taxable years ending 
after such date), for education furnished in academic periods beginning 
after such date.

SEC. 9. PROGRAM FUNDING THROUGH TAX-EXEMPT SECURITIES.

    (a) Special Allowances.--
            (1) Technical correction.--Section 2 of the Taxpayer-
        Teacher Protection Act of 2004 (Public Law 108-409; 118 Stat. 
        2299) is amended in the matter preceding paragraph (1) by 
        inserting ``of the Higher Education Act of 1965'' after 
        ``Section 438(b)(2)(B)''.
            (2) In general.--Section 438(b)(2)(B) of the Higher 
        Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(B)) (as amended 
        by section 2 of the Taxpayer-Teacher Protection Act of 2004) is 
        amended--
                    (A) in clause (iv), by striking ``1993, or refunded 
                after September 30, 2004, and before January 1, 2006, 
                the'' and inserting ``1993, or refunded on or after the 
                date of enactment of the Taxpayer-Teacher Protection 
                Act of 2004, the''; and
                    (B) by striking clause (v) and inserting the 
                following:
                            ``(v) Notwithstanding clauses (i) and (ii), 
                        the quarterly rate of the special allowance 
                        shall be the rate determined under subparagraph 
                        (A), (E), (F), (G), (H), or (I) of this 
                        paragraph, or paragraph (4), as the case may 
                        be, for loans--
                                    ``(I) originated, transferred, or 
                                purchased on or after the date of 
                                enactment of the Taxpayer-Teacher 
                                Protection Act of 2004;
                                    ``(II) financed by an obligation 
                                that has matured, been retired, or 
                                defeased on or after the date of 
                                enactment of the Taxpayer-Teacher 
                                Protection Act of 2004;
                                    ``(III) which the special allowance 
                                was determined under such subparagraphs 
                                or paragraph, as the case may be, on or 
                                after the date of enactment of the 
                                Taxpayer-Teacher Protection Act of 
                                2004;
                                    ``(IV) for which the maturity date 
                                of the obligation from which funds were 
                                obtained for such loans was extended on 
                                or after the date of enactment of the 
                                Taxpayer-Teacher Protection Act of 
                                2004; or
                                    ``(V) sold or transferred to any 
                                other holder on or after the date of 
                                enactment of the Taxpayer-Teacher 
                                Protection Act of 2004.''.
            (3) Rule of construction.--Nothing in the amendment made by 
        paragraph (2) shall be construed to abrogate a contractual 
        agreement between the Federal Government and a student loan 
        provider.
    (b) Available Funds From Reduced Expenditures.--Any funds available 
to the Secretary of Education as a result of reduced expenditures under 
section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087-1) 
secured by the enactment of subsection (a) shall be used by the 
Secretary to carry out the programs and activities authorized under 
this Act.
                                 <all>