II 109th CONGRESS 1st Session S. 1204 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.

1.

Short title

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

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 21/2 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.

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.

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).

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: 4

Patsy T. Mink Fellowship program

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.

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.

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.

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.

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.

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.

.

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; .

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.

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.

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.