[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1614 Introduced in Senate (IS)]


109th CONGRESS
  1st Session
                                S. 1614

To extend the authorization of programs under the Higher Education Act 
                    of 1965, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 6, 2005

 Mr. Enzi (for himself and Mr. Kennedy) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To extend the authorization of programs under the Higher Education Act 
                    of 1965, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Higher Education 
Amendments of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. References.
Sec. 3. General effective date.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Additional definitions.
Sec. 102. General definition of institution of higher education.
Sec. 103. Definition of institution of higher education for purposes of 
                            title IV programs.
Sec. 104. Protection of student speech and association rights.
Sec. 105. National Advisory Committee on Institutional Quality and 
                            Integrity.
Sec. 106. Drug and alcohol abuse prevention.
Sec. 107. Prior rights and obligations.
Sec. 108. Cost of higher education.
Sec. 109. Performance-based organization for the delivery of Federal 
                            student financial assistance.
Sec. 110. Procurement flexibility.
                 TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement grants for States and 
                            partnerships.
                      TITLE III--INSTITUTIONAL AID

Sec. 301. Program purpose.
Sec. 302. Definitions; eligibility.
Sec. 303. American Indian tribally controlled colleges and 
                            universities.
Sec. 304. Alaska native and native Hawaiian-serving institutions.
Sec. 305. Native American-serving, nontribal institutions.
Sec. 306. Part B definitions.
Sec. 307. Grants to institutions.
Sec. 308. Allotments to institutions.
Sec. 309. Professional or graduate institutions.
Sec. 310. Authorization of appropriations.
Sec. 311. Technical corrections.
                      TITLE IV--STUDENT ASSISTANCE

  Part A--Grants to Students in Attendance at Institutions of Higher 
                               Education

Sec. 401. Federal Pell Grants.
Sec. 402. Federal trio programs.
Sec. 403. Gaining early awareness and readiness for undergraduate 
                            programs.
Sec. 404. Academic achievement incentive scholarships.
Sec. 405. Federal supplemental educational opportunity grants.
Sec. 406. Leveraging Educational Assistance Partnership Program.
Sec. 407. Special programs for students whose families are engaged in 
                            migrant and seasonal farmwork.
Sec. 408. Robert C. Byrd Honors Scholarship Program.
Sec. 409. Child care access means parents in school.
Sec. 410. Learning anytime anywhere partnerships.
             Part B--Federal Family Education Loan Program

Sec. 421. Extension of authorities.
Sec. 422. Federal payments to reduce student interest costs.
Sec. 423. Federal consolidation loans.
Sec. 424. Default Reduction Program.
Sec. 425. Reports to credit bureaus and institutions of higher 
                            education.
Sec. 426. Common forms and formats.
Sec. 427. Student loan information by eligible borrowers.
Sec. 428. Consumer education information.
Sec. 429. Definition of eligible lender.
Sec. 430. Repayment by the Secretary of loans of bankrupt, deceased, or 
                            disabled borrowers; treatment of borrowers 
                            attending schools that fail to provide a 
                            refund, attending closed schools, or 
                            falsely certified as eligible to borrow.
                  Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Allowance for books and supplies.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Job location and development programs.
Sec. 445. Work colleges.
          Part D--William D. Ford Federal Direct Loan Program

Sec. 451. Funds for administrative expenses.
                     Part E--Federal Perkins Loans

Sec. 461. Program authority.
Sec. 462. Terms of loans.
Sec. 463. Cancellation of loans for certain public service.
                         Part F--Need Analysis

Sec. 471. Cost of attendance.
Sec. 472. Definitions.
       Part G--General Provisions Relating to Student Assistance

Sec. 481. Definition of academic and award year.
Sec. 482. Compliance calendar.
Sec. 483. Forms and regulations.
Sec. 484. Student eligibility.
Sec. 485. Statute of limitations and state court judgments.
Sec. 486. Institutional refunds.
Sec. 487. Institutional and financial assistance for students.
Sec. 488. National student loan data system.
Sec. 489. Early awareness of financial aid eligibility and 
                            demonstration program to provide early 
                            estimates and early awards of financial 
                            aid.
Sec. 490. College Access Initiative.
Sec. 491. Program participation agreements.
Sec. 492. Regulatory relief and improvement.
Sec. 493. Transfer of allotments.
Sec. 494. Wage garnishment requirement.
Sec. 495. Purpose of administrative payments.
Sec. 496. Advisory Committee on Student Financial Assistance.
Sec. 497. Regional meetings.
Sec. 498. Year 2000 requirements at the Department.
                       Part H--Program Integrity

Sec. 499. Recognition of accrediting agency or association.
Sec. 499A. Administrative capacity standard.
Sec. 499B. Program review and data.
                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitions.
Sec. 502. Authorized activities.
Sec. 503. Duration of grant.
Sec. 504. Postbaccalaureate opportunities for Hispanic Americans.
Sec. 505. Applications.
Sec. 506. Cooperative arrangements.
Sec. 507. Authorization of appropriations.
               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Findings.
Sec. 602. Graduate and undergraduate language and area centers and 
                            programs.
Sec. 603. Undergraduate international studies and foreign language 
                            programs.
Sec. 604. Research; studies.
Sec. 605. Technological innovation and cooperation for foreign 
                            information access.
Sec. 606. Selection of certain grant recipients.
Sec. 607. American overseas research centers.
Sec. 608. Authorization of appropriations for international and foreign 
                            language studies.
Sec. 609. Centers for international business education.
Sec. 610. Education and training programs.
Sec. 611. Authorization of appropriations for business and 
                            international education programs.
Sec. 612. Minority foreign service professional development program.
Sec. 613. Institutional development.
Sec. 614. Study abroad program.
Sec. 615. Advanced degree in international relations.
Sec. 616. Internships.
Sec. 617. Financial assistance.
Sec. 618. Report.
Sec. 619. Gifts and donations.
Sec. 620. Authorization of appropriations for the Institute for 
                            International Public Policy.
Sec. 621. Definitions.
Sec. 622. Assessment and enforcement.
       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Purpose.
Sec. 702. Allocation of Jacob K. Javits Fellowships.
Sec. 703. Stipends.
Sec. 704. Authorization of appropriations for the Jacob K. Javits 
                            Fellowship Program.
Sec. 705. Institutional eligibility under the Graduate Assistance in 
                            Areas of National Need Program.
Sec. 706. Awards to graduate students.
Sec. 707. Additional assistance for cost of education.
Sec. 708. Authorization of appropriations for the Graduate Assistance 
                            in Areas of National Need Program.
Sec. 709. Authorization of appropriations for the Thurgood Marshall 
                            Legal Educational Opportunity Program.
Sec. 710. Fund for the improvement of postsecondary education.
Sec. 711. Special projects.
Sec. 712. Authorization of appropriations for the fund for the 
                            improvement of postsecondary education.
Sec. 713. Authorization of appropriations for the urban community 
                            service program.
Sec. 714. Grants authorized for demonstration projects to ensure 
                            students with disabilities receive a 
                            quality higher education.
Sec. 715. Applications for demonstration projects to ensure students 
                            with disabilities receive a quality higher 
                            education.
Sec. 716. Authorization of appropriations for the demonstration 
                            projects to ensure students with 
                            disabilities receive a quality higher 
                            education.
                       TITLE VIII--MISCELLANEOUS

Sec. 801. Mathematics and Science Scholars Program.
                   TITLE IX--AMENDMENTS TO OTHER LAWS

               Part A--Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Agreement with Gallaudet University.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Cultural experiences grants.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Monitoring, evaluation, and reporting.
Sec. 908. Liaison for educational programs.
Sec. 909. Federal endowment programs for Gallaudet University and the 
                            National Technical Institute for the Deaf.
Sec. 910. Oversight and effect of agreements.
Sec. 911. International students.
Sec. 912. Research priorities.
Sec. 913. Authorization of appropriations.
              Part B--United States Institute of Peace Act

Sec. 921. United States Institute of Peace Act.
            Part C--The Higher Education Amendments of 1998

Sec. 931. Repeals.
Sec. 932. Grants to States for workplace and community transition 
                            training for incarcerated youth offenders.
              subpart 1--tribal colleges and universities
Sec. 941. Tribally subpart 2--navajo higher educationAssistance.
Sec. 945. Short title.
Sec. 946. Reauthorization of the Navajo Community College Act.
                        TITLE X--RECONCILIATION

Sec. 1001. Provisional grant assistance program.
Sec. 1002. National SMART grants.
Sec. 1003. Loan limits.
Sec. 1004. PLUS loan interest rates and zero special allowance payment.
Sec. 1005. Reduction of lender insurance reimbursement rates.
Sec. 1006. Guaranty agency origination fee.
Sec. 1007. Deferment of student loans for military service.
Sec. 1008. Rehabilitation through consolidation.
Sec. 1009. Single holder rule.
Sec. 1010. Default reduction program.
Sec. 1011. Requirements for disbursements of student loans.
Sec. 1012. Special insurance and reinsurance rules.
Sec. 1013. School as lender moratorium.
Sec. 1014. Permanent reduction of special allowance payments for loans 
                            from the proceeds of tax exempt issues.
Sec. 1015. Loan fees from lenders.
Sec. 1016. Origination fee.
Sec. 1017. Income contingent repayment for public sector employees.
Sec. 1018. Income protection allowance for dependent students.
Sec. 1019. Simplified need test and automatic zero improvements.
Sec. 1020. Loan forgiveness for teachers.

SEC. 2. REFERENCES.

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

SEC. 3. GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this Act or the amendments made by 
this Act, the amendments made by this Act shall take effect on July 1, 
2006.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. ADDITIONAL DEFINITIONS.

    (a) Amendment.--Section 103 (20 U.S.C. 1003) is amended--
            (1) by redesignating paragraphs (1) through (16) as 
        paragraphs (2) through (17), respectively; and
            (2) by inserting before paragraph (2) (as redesignated by 
        paragraph (1)) the following:
            ``(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) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
amended--
            (1) in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), 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'';
            (2) in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), 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'';
            (3) in section 206 (20 U.S.C. 1026)--
                    (A) in the matter preceding paragraph (1) of 
                subsection (a), by striking ``, the Committee on Labor 
                and Human Resources of the Senate, and the Committee on 
                Education and the Workforce of the House of 
                Representatives'' and inserting ``and the authorizing 
                committees''; and
                    (B) in subsection (d), 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'';
            (4) in section 207(c)(1) (20 U.S.C. 1027(c)(1)), 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'';
            (5) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by 
        striking ``to the Committee on Appropriations'' and all that 
        follows through ``House of Representatives'' and inserting ``to 
        the Committee on Appropriations of the Senate, the Committee on 
        Appropriations of the House of Representatives, and the 
        authorizing committees'';
            (6) in section 428 (20 U.S.C. 1078)--
                    (A) in subsection (c)(9)(K), by striking ``House 
                Committee on Education and the Workforce and the Senate 
                Committee on Labor and Human Resources'' and inserting 
                ``authorizing committees'';
                    (B) in the matter following paragraph (2) of 
                subsection (g), 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''; and
                    (C) in subsection (n)(4), ``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'';
            (7) in section 428A (20 U.S.C. 1078-1)--
                    (A) in the matter preceding subparagraph (A) of 
                subsection (a)(4), 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''; and
                    (B) in subsection (c)--
                            (i) in the matter preceding subparagraph 
                        (A) of paragraph (2), by striking 
                        ``Chairperson'' and all that follows through 
                        ``House of Representatives'' and inserting 
                        ``Chairpersons and Ranking Members of the 
                        authorizing committees'';
                            (ii) in paragraph (3), by striking 
                        ``Chairperson'' and all that follows through 
                        ``House of Representatives'' and inserting 
                        ``Chairpersons and Ranking Members of the 
                        authorizing committees''; and
                            (iii) in paragraph (5), by striking 
                        ``Chairperson'' and all that follows through 
                        ``House of Representatives'' and inserting 
                        ``Chairpersons and Ranking Members of the 
                        authorizing committees'';
            (8) in the matter preceding paragraph (1) of section 
        428I(h) (20 U.S.C. 1078-9(h)), by striking ``Chairman'' and all 
        that follows through ``Education and Labor'' and inserting 
        ``Chairpersons of the authorizing committees'';
            (9) in section 432 (20 U.S.C. 1082)--
                    (A) in subsection (f)(1)(C), by striking ``the 
                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''; and
                    (B) in the matter following subparagraph (D) of 
                subsection (n)(3), 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'';
            (10) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), 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'';
            (11) in section 439 (20 U.S.C. 1087-2)--
                    (A) in subsection (d)(1)(E)(iii), by striking 
                ``advise the Chairman'' and all that follows through 
                ``House of Representatives'' and inserting ``advise the 
                Chairpersons and Ranking Members of the authorizing 
                committees'';
                    (B) in subsection (r)--
                            (i) in paragraph (3), by striking ``inform 
                        the Chairman'' and all that follows through 
                        ``House of Representatives,'' and inserting 
                        ``inform the Chairpersons and Ranking Members 
                        of the authorizing committees'';
                            (ii) in paragraph (5)(B), by striking 
                        ``plan, to the Chairman'' and all that follows 
                        through ``Education and Labor'' and inserting 
                        ``plan, to the Chairpersons and Ranking Members 
                        of the authorizing committees'';
                            (iii) in paragraph (6)(B)--
                                    (I) by striking ``plan, to the 
                                Chairman'' and all that follows through 
                                ``House of Representatives'' and 
                                inserting ``plan, to the Chairpersons 
                                and Ranking Members of the authorizing 
                                committees''; and
                                    (II) by striking ``Chairmen and 
                                ranking minority members of such 
                                Committees'' and inserting 
                                ``Chairpersons and Ranking Members of 
                                the authorizing committees'';
                            (iv) in paragraph (8)(C), by striking 
                        ``implemented to the Chairman'' and all that 
                        follows through ``House of Representatives, 
                        and'' and inserting ``implemented to the 
                        Chairpersons and Ranking Members of the 
                        authorizing committees, and to''; and
                            (v) in the matter preceding subparagraph 
                        (A) of paragraph (10), by striking ``days to 
                        the Chairman'' and all that follows through 
                        ``Education and Labor'' and inserting ``days to 
                        the Chairpersons and Ranking Members of the 
                        authorizing committees''; and
                    (C) in subsection (s)(2)--
                            (i) in the matter preceding clause (i) of 
                        subparagraph (A), by striking ``Treasury and to 
                        the Chairman'' and all that follows through 
                        ``House of Representatives'' and inserting 
                        ``Treasury and to the Chairpersons and Ranking 
                        Members of the authorizing committees''; and
                            (ii) in subparagraph (B), by striking 
                        ``Treasury and to the Chairman'' and all that 
                        follows through ``House of Representatives'' 
                        and inserting ``Treasury and to the 
                        Chairpersons and Ranking Members of the 
                        authorizing committees'';
            (12) in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), 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'';
            (13) in section 482(d) (20 U.S.C. 1089(d)), 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'';
            (14) in section 483(c) (20 U.S.C. 1090(c)), 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'';
            (15) in section 485 (20 U.S.C. 1092)--
                    (A) in subsection (f)(5)(A), 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''; and
                    (B) in subsection (g)(4)(B), 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'';
            (16) in section 486 (20 U.S.C. 1093)--
                    (A) in subsection (e), 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''; and
                    (B) in subsection (f)(3)--
                            (i) in the matter preceding clause (i) of 
                        subparagraph (A), 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''; and
                            (ii) in the matter preceding clause (i) of 
                        subparagraph (B), 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'';
            (17) in section 487A (20 U.S.C. 1094a)--
                    (A) in subsection (a)(5), 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''; and
                    (B) in subsection (b)(3)(B), in the matter 
                preceding clause (i)--
                            (i) 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''; and
                            (ii) by striking ``such Committees'' and 
                        inserting ``the authorizing committees'';
            (18) in section 493A(a)(5) (20 U.S.C. 1098c(a)(5)), by 
        striking ``Chairperson of the Committee on Labor and Human 
        Resources of the Senate and the Chairperson of the Committee on 
        Education and the Workforce of the House of Representatives'' 
        and inserting ``Chairpersons of the authorizing committees''; 
        and
            (19) in section 498B(d) (20 U.S.C. 1099c-2(d))--
                    (A) in paragraph (1), 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''; and
                    (B) in paragraph (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 ``authorizing 
                committees''.

SEC. 102. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    Section 101 (20 U.S.C. 1001) is amended--
            (1) in subsection (a)(3), by inserting ``, or awards a 
        degree that is acceptable for admission to a graduate or 
        professional degree program, subject to the review and approval 
        by the Secretary'' after ``such a degree''; and
            (2) by striking subsection (b)(2) and inserting the 
        following:
            ``(2) a public or nonprofit private educational institution 
        in any State that, in lieu of the requirement in subsection 
        (a)(1), admits as regular students persons--
                    ``(A) who meet the requirements of section 
                484(d)(3);
                    ``(B) who are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located; or
                    ``(C) who will be dually or concurrently enrolled 
                in such institution and a secondary school.''.

SEC. 103. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES OF 
              TITLE IV PROGRAMS.

    Section 102 (20 U.S.C. 1002) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2)(A)(i) and inserting 
                the following:
                            ``(i) in the case of a graduate medical 
                        school located outside the United States--
                                    ``(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'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Limitations based on enrollment.--An institution 
        shall not be considered to meet the definition of an 
        institution of higher education in paragraph (1) if such 
        institution--
                    ``(A) 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 a nonprofit 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 
                diploma, respectively; or
                    ``(B) has a student enrollment in which more than 
                50 percent of the students 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 a bachelor's 
                degree or an associate's degree, respectively, except 
                that the Secretary may waive the limitation contained 
                in this subparagraph if a nonprofit 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 have a secondary school 
                diploma or its recognized equivalent.'';
                    (C) by redesignating paragraphs (4), (5), and (6), 
                as paragraphs (5), (6), and (7), respectively; and
                    (D) by inserting after paragraph (3) the following:
            ``(4) Limitations based on mode of delivery.--
                    ``(A) In general.--An institution shall not be 
                considered to meet the definition of an institution of 
                higher education in paragraph (1) if such institution--
                            ``(i) offers more than 50 percent of such 
                        institution's courses by correspondence, 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; or
                            ``(ii) enrolls 50 percent or more of the 
                        institution's students in correspondence 
                        courses, unless the institution is an 
                        institution that meets the definition in such 
                        section 3(3)(C), except that the Secretary, at 
                        the request of such institution, may waive the 
                        applicability of this subparagraph to such 
                        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.
                    ``(B) Distance education program eligibility.--
                Notwithstanding subparagraph (A), an institution of 
                higher education, other than a foreign institution, 
                that offers education or training programs principally 
                through distance education shall be considered to meet 
                the definition of an institution of higher education in 
                paragraph (1) if such institution--
                            ``(i) has been evaluated and determined 
                        (before or after the date of enactment of the 
                        Higher Education Amendments of 2005) to have 
                        capability to effectively deliver distance 
                        education programs by an accrediting agency or 
                        association that--
                                    ``(I) is recognized by the 
                                Secretary under title IV; and
                                    ``(II) has evaluation of distance 
                                education programs within the scope of 
                                its recognition, as described in 
                                section 496(n)(3);
                            ``(ii) is otherwise eligible to participate 
                        in programs authorized under title IV;
                            ``(iii) has not had its participation in 
                        programs under title IV suspended or terminated 
                        within the 5 years preceding the year for which 
                        the determination is made;
                            ``(iv) has not had, or failed to resolve, 
                        an audit finding or program review finding 
                        under this Act during the 2 years preceding the 
                        year for which the determination is made that, 
                        following any appeal to the Secretary, resulted 
                        in the institution being required to repay an 
                        amount that is equal to or greater than 25 
                        percent of the total funds the institution 
                        received under the programs authorized under 
                        title IV for the most recent award year; and
                            ``(v) has met the requirements of section 
                        487(d), if applicable.
                    ``(C) Definition.--
                            ``(i) In general.--In this Act, except as 
                        otherwise provided, the term `distance 
                        education' means a course or program that uses 
                        1 or more of the technologies described in 
                        clause (ii) to--
                                    ``(I) deliver instruction to 
                                students who are separated from the 
                                instructor; and
                                    ``(II) support regular and 
                                substantive interaction between the 
                                students and the instructor, either 
                                synchronously or asynchronously.
                            ``(ii) Inclusions.--For the purposes of 
                        clause (i), the technologies used may include--
                                    ``(I) the Internet;
                                    ``(II) one-way and two-way 
                                transmissions through open broadcast, 
                                closed circuit, cable, microwave, 
                                broadband lines, fiber optics, 
                                satellite, or wireless communications 
                                devices;
                                    ``(III) audio conferencing; or
                                    ``(IV) video cassette, DVDs, and 
                                CD-ROMs, provided that they are used in 
                                a course in conjunction with the 
                                technologies listed in subclauses (I) 
                                through (III).''; and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (D), by inserting ``and'' after 
                the semicolon;
                    (B) in subparagraph (E), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (F).

SEC. 104. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.

    Section 112 (20 U.S.C. 1011a) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(1)'' before ``It is the 
                sense''; and
                    (B) by adding at the end the following:
    ``(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 institutional mission, a 
        college should facilitate the free and open exchange of ideas;
            ``(D) students should not be intimated, harassed, 
        discouraged from speaking out, or discriminated against;
            ``(E) students should be treated equally and fairly; and
            ``(F) nothing in this paragraph 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 ``, provided that 
        the imposition of such sanction is done objectively and 
        fairly'' after ``higher education''.

SEC. 105. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
              INTEGRITY.

    Section 114(g) (20 U.S.C. 1011c(g)) is amended by striking 
``September 30, 2004'' and inserting ``September 30, 2011''.

SEC. 106. DRUG AND ALCOHOL ABUSE PREVENTION.

    Section 120 (20 U.S.C. 1011i) is amended by striking subsections 
(e) and (f) and inserting the following:
    ``(e) Grants Directed at Reducing Higher Education Drug and Alcohol 
Abuse.--
            ``(1) Authorization of program.--The Secretary may award 
        grants to eligible entities to enable the entities to reduce 
        the rate of drug abuse, underage alcohol use, and binge 
        drinking among students at institutions of higher education.
            ``(2) Applications.--An eligible entity that desires to 
        receive a grant under this subsection shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may require. 
        Each application shall include--
                    ``(A) a description of how the eligible entity will 
                work to enhance an existing, or where none exists to 
                build a, statewide coalition;
                    ``(B) a description of how the eligible entity will 
                target underage students in the State;
                    ``(C) a description of how the eligible entity 
                intends to ensure that the statewide coalition is 
                actually implementing the purpose described in 
                paragraph (1) and moving toward the achievement 
                indicators described in paragraph (4);
                    ``(D) a list of the members of the statewide 
                coalition or interested parties involved in the work of 
                the eligible entity;
                    ``(E) a description of how the eligible entity 
                intends to work with State agencies on substance abuse 
                prevention and education;
                    ``(F) the anticipated impact of funds provided 
                under this subsection in reducing the rates of drug 
                abuse and underage alcohol use;
                    ``(G) outreach strategies, including ways in which 
                the eligible entity proposes to--
                            ``(i) reach out to students;
                            ``(ii) promote the purpose described in 
                        paragraph (1);
                            ``(iii) address the range of needs of the 
                        students and the surrounding communities; and
                            ``(iv) address community norms for underage 
                        students regarding drug abuse and alcohol use; 
                        and
                    ``(H) such additional information as required by 
                the Secretary.
            ``(3) Uses of funds.--Each eligible entity that receives a 
        grant under this subsection shall use the grant funds to carry 
        out the activities described in such entity's application 
        submitted pursuant to paragraph (2).
            ``(4) Accountability.--On the date on which the Secretary 
        first publishes a notice in the Federal Register soliciting 
        applications for grants under this subsection, the Secretary 
        shall include in the notice achievement indicators for the 
        program authorized under this subsection. The achievement 
        indicators shall be designed--
                    ``(A) to measure the impact that the statewide 
                coalitions assisted under this subsection are having on 
                the institutions of higher education and the 
                surrounding communities, including changes in the 
                number of alcohol and drug-related abuse incidents of 
                any kind (including violations, physical assaults, 
                sexual assaults, reports of intimidation, disruptions 
                of school functions, disruptions of student studies, 
                mental health referrals, illnesses, or deaths);
                    ``(B) to measure the quality and accessibility of 
                the programs or information offered by the statewide 
                coalitions; and
                    ``(C) to provide such other measures of program 
                impact as the Secretary determines appropriate.
            ``(5) Supplement not supplant.--Grant funds provided under 
        this subsection shall be used to supplement, and not supplant, 
        Federal and non-Federal funds available for carrying out the 
        activities described in this subsection.
            ``(6) Definitions.--In this subsection:
                    ``(A) Eligible entity.--The term `eligible entity' 
                means a State, an institution of higher education, or a 
                nonprofit entity.
                    ``(B) Institution of higher education.--The term 
                `institution of higher education' has the meaning given 
                the term in section 101(a).
                    ``(C) State.--The term `State' means each of the 50 
                States, the District of Columbia, and the Commonwealth 
                of Puerto Rico.
                    ``(D) Statewide coalition.--The term `statewide 
                coalition' means a coalition that--
                            ``(i) includes--
                                    ``(I) institutions of higher 
                                education within a State; and
                                    ``(II) a nonprofit group, a 
                                community drug abuse or underage 
                                drinking prevention coalition, or 
                                another substance abuse prevention 
                                group within a State; and
                            ``(ii) works toward lowering the alcohol 
                        abuse rate by targeting underage students at 
                        institutions of higher education throughout the 
                        State and in the surrounding communities.
                    ``(E) Surrounding community.--The term `surrounding 
                community' means the community--
                            ``(i) that surrounds an institution of 
                        higher education participating in a statewide 
                        coalition;
                            ``(ii) where the students from the 
                        institution of higher education take part in 
                        the community; and
                            ``(iii) where students from the institution 
                        of higher education live in off-campus housing.
            ``(7) Administrative expenses.--Not more than 5 percent of 
        a grant awarded under this subsection may be expended for 
        administrative expenses.
            ``(8) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection such 
        sums as may be necessary for fiscal year 2006 and each of the 5 
        succeeding fiscal years.''.

SEC. 107. PRIOR RIGHTS AND OBLIGATIONS.

    Section 121(a) (20 U.S.C. 1011j(a)) is amended--
            (1) in paragraph (1), by striking ``1999'' and inserting 
        ``2006''; and
            (2) in paragraph (2), by striking ``1999'' and inserting 
        ``2006''.

SEC. 108. COST OF HIGHER EDUCATION.

    Section 131 (20 U.S.C. 1015) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) College Consumer Information.--
            ``(1) In general.--The Secretary shall make available to 
        the public, on an annual basis, the information described in 
        paragraph (2), in a form that enables the public to compare the 
        information among institutions of higher education. Such 
        information shall be made available for each of the categories 
        described in paragraph (3) and updated regularly.
            ``(2) Information.--The information described in this 
        paragraph is the following:
                    ``(A) Tuition and fees for a full-time 
                undergraduate student.
                    ``(B) Cost of attendance for a full-time 
                undergraduate student.
                    ``(C) The average annual cost of attendance for a 
                full-time undergraduate student for the 10 academic 
                years preceding the year for which the information is 
                made available under this subsection, or if data are 
                not available for such 10 preceding academic years, 
                data for as many of such 10 preceding academic years as 
                are available.
                    ``(D) The percentage of full-time undergraduate 
                students receiving financial assistance, including--
                            ``(i) Federal grants;
                            ``(ii) State and local grants;
                            ``(iii) institutional grants; and
                            ``(iv) loans to students.
                    ``(E) The percentage of students successfully 
                transferring academic credit from another institution 
                of higher education.
                    ``(F) Information regarding students who have 
                completed an undergraduate certificate or degree 
                program and who are placed in employment.
                    ``(G) Information regarding students who have 
                completed an undergraduate degree and who enroll in 
                graduate education.
                    ``(H) A ranking of the dollar and percentage 
                increases in tuition for all institutions of higher 
                education for which data are available, disaggregated 
                by quartiles.
            ``(3) Categories.--The categories described in this 
        paragraph are as follows:
                    ``(A) All institutions of higher education.
                    ``(B) 4-year public, degree-granting, institutions 
                of higher education.
                    ``(C) 2-year public, degree-granting, institutions 
                of higher education.
                    ``(D) 4-year, nonprofit, private, degree-granting 
                institutions of higher education.
                    ``(E) 2-year, nonprofit, private, degree-granting 
                institutions of higher education.
                    ``(F) 4-year, for-profit, private, degree-granting 
                institutions of higher education.
                    ``(G) 2-year, for-profit, private, degree-granting 
                institutions of higher education.
            ``(4) Standard definitions.--In carrying out this section, 
        the Secretary shall use the standard definitions developed 
        under subsection (a)(3).''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by inserting ``be conducted 
                on an annual basis and'' after ``Such study shall'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (C), by striking the 
                        period and inserting a semicolon; and
                            (iii) by adding at the end the following:
                    ``(D) the average cost of attending an institution 
                of higher education, disaggregated by category, as 
                described in subsection (b)(3), of institution of 
                higher education;
                    ``(E) the average annual cost of attending an 
                institution of higher education for the 10 academic 
                years preceding the year for which the study is 
                conducted (if available), disaggregated by category, as 
                described in subsection (b)(3), of institution of 
                higher education; and
                    ``(F) the assistance provided to institutions of 
                higher education by each State, which information the 
                Secretary shall make available to the public.'';
                    (C) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``Final'' and inserting ``Annual'';
                            (ii) by striking ``a report'' and inserting 
                        ``an annual report''; and
                            (iii) by striking ``not later than 
                        September 30, 2002''; and
                    (D) by striking paragraph (4) and inserting the 
                following:
            ``(4) Higher education cost index.--The Bureau of Labor 
        Statistics, in consultation with the Commissioner of Education 
        Statistics, shall develop a higher education cost index that 
        tracks inflation changes in the relevant costs associated with 
        higher education.''.

SEC. 109. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL 
              STUDENT FINANCIAL ASSISTANCE.

    Section 141 (20 U.S.C. 1018) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``operational'' 
                and inserting ``administrative and oversight''; and
                    (B) in paragraph (2)(D), by striking ``of the 
                operational functions'' and inserting ``and 
                administration'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``the 
                        information systems administered by the PBO, 
                        and other functions performed by the PBO'' and 
                        inserting ``the Federal student financial 
                        assistance programs authorized under title 
                        IV''; and
                            (ii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) assist the Chief Operating Officer in 
                identifying goals for--
                            ``(i) the administration of the systems 
                        used to administer the Federal student 
                        financial assistance programs authorized under 
                        title IV; and
                            ``(ii) the updating of such systems to 
                        current technology.''; and
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``administration of the 
                        information and financial systems that 
                        support'' and inserting ``the administration of 
                        Federal'';
                            (ii) in subparagraph (A)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``of the delivery 
                                system for Federal student assistance'' 
                                and inserting ``for the Federal student 
                                assistance programs authorized under 
                                title IV'';
                                    (II) by striking clauses (i) and 
                                (ii) and inserting the following:
                            ``(i) the collection, processing, and 
                        transmission of data to students, institutions, 
                        lenders, State agencies, and other authorized 
                        parties;
                            ``(ii) the design and technical 
                        specifications for software development and 
                        procurement for systems supporting the student 
                        financial assistance programs authorized under 
                        title IV;'';
                                    (III) in clause (iii), by striking 
                                ``delivery'' and inserting 
                                ``administration'';
                                    (IV) in clause (iv)--
                                            (aa) by inserting ``the'' 
                                        after ``supporting''; and
                                            (bb) by striking ``and'' 
                                        after the semicolon;
                                    (V) in clause (v), by striking 
                                ``systems that support those 
                                programs.'' and inserting ``the 
                                administration of the Federal student 
                                assistance programs authorized under 
                                title IV; and''; and
                                    (VI) by adding at the end the 
                                following:
                            ``(vi) ensuring the integrity of the 
                        student assistance programs authorized under 
                        title IV.''; and
                            (iii) in subparagraph (B), by striking 
                        ``operations and services'' and inserting 
                        ``activities and functions''; and
            (3) in subsection (c)--
                    (A) in paragraph (1)(C)--
                            (i) in clause (iii), by striking 
                        ``information and delivery''; and
                            (ii) in clause (iv)--
                                    (I) by striking ``Developing an'' 
                                and inserting ``Developing''; and
                                    (II) by striking ``delivery and 
                                information system'' and inserting 
                                ``systems'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting 
                        ``the'' after ``PBO and''; and
                            (ii) in subparagraph (B), by striking 
                        ``Officer'' and inserting ``Officers''; and
                    (C) in paragraph (3), by inserting ``students,'' 
                after ``consult with'';
            (4) in subsection (d)--
                    (A) in paragraph (1), by striking the second 
                sentence; and
                    (B) in paragraph (5)--
                            (i) in subparagraph (B), by striking 
                        ``paragraph (2)'' and inserting ``paragraph 
                        (4)''; and
                            (ii) in subparagraph (C), by striking 
                        ``this'';
            (5) in subsection (f)--
                    (A) in paragraph (2), by striking ``to borrowers'' 
                and inserting ``to students, borrowers,''; and
                    (B) in paragraph (3)(A), by striking ``(1)(A)'' and 
                inserting ``(1)'';
            (6) in subsection (g)(3), by striking ``not more than 25'';
            (7) in subsection (h), by striking ``organizational 
        effectiveness'' and inserting ``effectiveness'';
            (8) by striking subsection (i);
            (9) by redesignating subsection (j) as subsection (i); and
            (10) in subsection (i) (as redesignated by paragraph (9)), 
        by striking ``, including transition costs''.

SEC. 110. PROCUREMENT FLEXIBILITY.

    Section 142 (20 U.S.C. 1018a) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``for information systems 
                        supporting the programs authorized under title 
                        IV''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) through the Chief Operating Officer--
                    ``(A) to the maximum extent practicable, utilize 
                procurement systems that streamline operations, improve 
                internal controls, and enhance management; and
                    ``(B) assess the efficiency of such systems and 
                assess such systems' ability to meet PBO 
                requirements.'';
            (2) by striking subsection (c)(2) and inserting the 
        following:
            ``(2) Fee for service arrangements.--The Chief Operating 
        Officer shall, when appropriate and consistent with the 
        purposes of the PBO, acquire services related to the functions 
        set forth in section 141(b)(2) from any entity that has the 
        capability and capacity to meet the requirements set by the 
        PBO. The Chief Operating Officer is authorized to pay fees that 
        are equivalent to those paid by other entities to an 
        organization that provides services that meet the requirements 
        of the PBO, as determined by the Chief Operating Officer.'';
            (3) in subsection (d)(2)(B), by striking ``on Federal 
        Government contracts'';
            (4) in subsection (g)--
                    (A) in paragraph (4)(A)--
                            (i) in the subparagraph heading, by 
                        striking ``Sole source.--'' and inserting 
                        ``Single-source basis.--''; and
                            (ii) by striking ``sole-source'' and 
                        inserting ``single-source''; and
                    (B) in paragraph (7), by striking ``sole-source'' 
                and inserting ``single-source'';
            (5) in subsection (h)(2)(A), by striking ``sole-source'' 
        and inserting ``single-source''; and
            (6) in subsection (l), by striking paragraph (3) and 
        inserting the following:
            ``(3) Single-source basis.--The term `single-source basis', 
        with respect to an award of a contract, means that the contract 
        is awarded to a source after soliciting an offer or offers 
        from, and negotiating with, only such source (although such 
        source is not the only source in the marketplace capable of 
        meeting the need) because such source is the most advantageous 
        source for purposes of the award.''.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
              PARTNERSHIPS.

    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 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 1 or more academic majors in disciplines or 
                content areas corresponding to the academic subject 
                areas in which teachers provide instruction; and
                    ``(B) when referring to a specific academic subject 
                area, the disciplines or content areas in which 
                academic majors are offered by the arts and sciences 
                organizational unit.
            ``(2) Children from low-income families.--The term 
        `children from low-income families' means children as described 
        in section 1124(c)(1)(A) of the Elementary and Secondary 
        Education Act of 1965.
            ``(3) Early childhood education program.--The term `early 
        childhood education program' means a Head Start program or an 
        Early Head Start program carried out under the Head Start Act 
        (42 U.S.C. 9831 et seq.), a State licensed or regulated child 
        care program or school, or a State prekindergarten program that 
        serves children from birth through kindergarten and that 
        addresses the children's cognitive (including language, early 
        literacy, and pre-numeracy), social, emotional, and physical 
        development.
            ``(4) Early childhood educator.--The term `early childhood 
        educator' means an individual with primary responsibility for 
        the education of children in an early childhood education 
        program.
            ``(5) Educational service agency.--The term `educational 
        service agency' has the meaning given such term in section 9101 
        of the Elementary and Secondary Education Act of 1965.
            ``(6) Exemplary teacher.--The term `exemplary teacher' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(7) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational agency 
        or educational service agency--
                    ``(A)(i) that serves not fewer than 10,000 children 
                from low-income families;
                    ``(ii) for which not less than 20 percent of the 
                children served by the agency are children from low-
                income families; 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 or 8, as determined by 
                the Secretary; and
                    ``(B)(i) for which there is a high percentage of 
                teachers not teaching in the academic subject areas or 
                grade levels in which the teachers were trained to 
                teach; or
                    ``(ii) for which there is a high teacher turnover 
                rate or a high percentage of teachers with emergency, 
                provisional, or temporary certification or licensure.
            ``(8) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 and, with respect to 
        special education teachers, in section 602 of the Individuals 
        with Disabilities Education Act.
            ``(9) Professional development.--The term `professional 
        development' has the meaning given such term in section 9101 of 
        the Elementary and Secondary Education Act of 1965.
            ``(10) 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.
            ``(11) 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.
            ``(12) Teacher mentoring.--The term `teacher mentoring' 
        means mentoring of teachers through an established or 
        implemented program--
                    ``(A) that includes qualifications for mentors;
                    ``(B) that provides training for mentors;
                    ``(C) that provides regular and ongoing 
                opportunities for mentors and mentees to observe each 
                other's teaching methods in classroom settings during 
                the school day;
                    ``(D) in which the mentoring is provided by a 
                colleague who teaches in the same field, grade, or 
                subject as the mentee; and
                    ``(E) that includes--
                            ``(i) common planning time or regularly 
                        scheduled collaboration with teachers in the 
                        teachers' same field, grade, or subject area; 
                        and
                            ``(ii) additional professional development 
                        opportunities.
            ``(13) Teaching skills.--The term `teaching skills' means 
        the ability to--
                    ``(A) increase student achievement;
                    ``(B) effectively convey and explain academic 
                subject matter;
                    ``(C) employ strategies that--
                            ``(i) are based on scientifically based 
                        research;
                            ``(ii) are specific to academic subject 
                        matter; and
                            ``(iii) focus on identification and 
                        tailoring of academic instruction to students' 
                        specific learning needs, particularly students 
                        with disabilities, students who are limited 
                        English proficient, and students who are gifted 
                        and talented;
                    ``(D) conduct ongoing assessment of student 
                learning;
                    ``(E) effectively manage a classroom;
                    ``(F) communicate and work with parents and 
                guardians, and involve parents and guardians in their 
                children's education; and
                    ``(G) in the case of an early childhood educator, 
                use age appropriate strategies and practices for 
                children in early childhood education programs.

``SEC. 202. STATE GRANTS.

    ``(a) In General.--From amounts made available under section 
209(a)(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 
subsections (d) and (e).
    ``(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 or licensure 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 other 
        applicable State entities (including the State agency 
        responsible for early childhood education), as appropriate, 
        with respect to the activities assisted under this section, 
        including the development of the grant application and 
        implementation of the activities.
            ``(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 eligible State is in full 
        compliance with--
                    ``(A) sections 206(b) and 207; and
                    ``(B) if applicable, sections 207(b) and 208, as 
                such sections were in effect on the day before the date 
                of enactment of the Higher Education Amendments of 
                2005;
            ``(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 this section;
            ``(5) describes how funded activities will--
                    ``(A) reduce shortages, if any, of--
                            ``(i) highly qualified general and special 
                        education teachers, including in low-income 
                        urban and rural areas and in high-need academic 
                        subject areas; and
                            ``(ii) fully competent early childhood 
                        educators; and
                    ``(B) be consistent with State, local, and other 
                education reform activities that promote effective 
                teaching skills and student academic achievement and 
                consistent with State early learning standards for 
                early childhood education programs, including how 
                funded activities will support carrying out the 
                applicable requirements of the eligible State under 
                sections 1111 and 1119 of the Elementary and Secondary 
                Education Act of 1965, and section 612(a)(14) of the 
                Individuals with Disabilities Education Act;
            ``(6) contains an assurance that the eligible State will 
        carry out each of the intended uses of grant funds described in 
        paragraph (3);
            ``(7) describes the eligible State's--
                    ``(A) current capacity to measure the effectiveness 
                of teacher preparation programs and professional 
                development activities within the State using available 
                statewide data;
                    ``(B) activities to enhance or expand the 
                integration of existing data systems to better measure 
                the effectiveness of teacher preparation programs and 
                professional development activities within the State; 
                or
                    ``(C) if such data systems do not exist, plans for 
                the development of an integrated statewide data system 
                to measure the effectiveness of teacher preparation 
                programs and professional development activities within 
                the State using available statewide data; and
            ``(8) contains such other information and assurances as the 
        Secretary may require.
    ``(d) Required 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 
and subsections (a) and (b) of section 654 of the Individuals with 
Disabilities Education Act, and to ensure that current and prospective 
teachers are highly qualified, by carrying out each of the following 
activities:
            ``(1) Reforms.--Ensuring that all teacher preparation 
        programs in the State are preparing current or prospective 
        teachers to become highly qualified, to understand 
        scientifically based research and its applicability, and to use 
        technology effectively, including use of instructional 
        techniques to improve student academic achievement, by 
        assisting such programs--
                    ``(A) in retraining faculty;
                    ``(B) in designing (or redesigning) teacher 
                preparation programs so that such programs--
                            ``(i) are based on rigorous academic 
                        content and scientifically based research 
                        (including scientifically based reading 
                        research), and aligned with challenging State 
                        academic content standards;
                            ``(ii) promote effective teaching skills; 
                        and
                            ``(iii) promote understanding of effective 
                        instructional strategies for students with 
                        special needs, including students with 
                        disabilities, students who are limited English 
                        proficient, and students who are gifted and 
                        talented;
                    ``(C) in ensuring collaboration with departments, 
                programs, or units outside of the teacher preparation 
                program in relevant academic content areas to ensure a 
                successful combination of training in both teaching and 
                such content;
                    ``(D) in developing high-quality, rigorous clinical 
                experiences (that include student teaching experience) 
                in which students participate while enrolled in a 
                teacher preparation program, lasting not less than 1 
                term, through dissemination of best practices, 
                technical assistance, or other relevant activities; and
                    ``(E) in collecting and using data, in 
                collaboration with institutions of higher education, 
                schools, and local educational agencies, on teacher 
                retention rates, by school, to evaluate and strengthen 
                the effectiveness of the State's teacher support 
                system.
            ``(2) Certification or licensure requirements.--Reforming 
        teacher certification or licensure requirements to ensure 
        that--
                    ``(A) teachers have the academic content knowledge 
                and teaching skills in the academic subject areas that 
                the teachers teach that are necessary to help students 
                meet challenging State student academic achievement 
                standards;
                    ``(B) such requirements are aligned with 
                challenging State academic content standards;
                    ``(C) teacher certification and licensure 
                assessments are--
                            ``(i) used for purposes for which such 
                        assessments are valid and reliable;
                            ``(ii) consistent with relevant, 
                        professional, and technical standards; and
                            ``(iii) aligned with the reporting 
                        requirements of sections 205 and 206; and
                    ``(D) such requirements for high-need academic 
                subject areas (such as reading, mathematics, science, 
                and foreign language, including less commonly taught 
                languages) and high-need areas (such as special 
                education, language instruction educational programs, 
                and early childhood education) exist and reflect 
                qualifications to help students meet high standards, 
                which may include the development of a State test for 
                such areas.
            ``(3) Evaluation.--
                    ``(A) Annual evaluation.--An eligible State that 
                receives a grant under this section shall evaluate 
                annually the effectiveness of teacher preparation 
                programs and professional development activities within 
                the State. To the extent practicable, such evaluation 
                shall examine--
                            ``(i) teachers' contributions 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; and
                            ``(ii) teacher mastery of the academic 
                        subject matter the teachers teach.
                    ``(B) Public reporting.--The eligible State shall 
                make the information described in subparagraph (A) 
                (except such information that is individually 
                identifiable) widely available through public means, 
                such as posting on the Internet, distribution to the 
                media, and distribution through public agencies.
                    ``(C) Better measurement of effectiveness.--
                            ``(i) In general.--An eligible State that 
                        receives a grant under this section and does 
                        not have the capacity to measure the 
                        effectiveness of teacher preparation programs 
                        and professional development activities within 
                        the State using available statewide data, shall 
                        use a portion of funds received under this 
                        section to enhance or expand the integration of 
                        existing data systems, as described in 
                        subsection (c)(7)(B), or develop an integrated 
                        statewide data system, as described in 
                        subsection (c)(7)(C), to better measure the 
                        effectiveness of teacher preparation programs 
                        on student learning and achievement, and the 
                        impact of pre-service and ongoing professional 
                        development on teacher placement and retention.
                            ``(ii) Technical quality; student privacy; 
                        funds from other sources.--In carrying out 
                        clause (i), the eligible State shall ensure--
                                    ``(I) the technical quality of the 
                                data system to maximize the validity, 
                                reliability, and accessibility of the 
                                data;
                                    ``(II) that student privacy is 
                                protected and that individually 
                                identifiable information about 
                                students, their achievements, and their 
                                families remains confidential, in 
                                accordance with the Family Educational 
                                Rights and Privacy Act of 1974; and
                                    ``(III) that funds provided under 
                                this section are used to supplement 
                                State efforts to enhance or expand the 
                                integration of existing data systems or 
                                to develop an integrated statewide data 
                                system.
    ``(e) Allowable Uses of Funds.--An eligible State that receives a 
grant under this section may 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 
and subsections (a) and (b) of section 654 of the Individuals with 
Disabilities Education Act, and to ensure that current and future 
teachers are highly qualified, by carrying out any of the following 
activities:
            ``(1) Alternatives to traditional preparation for teaching 
        and state certification or licensure.--Providing prospective 
        teachers with alternative routes to State certification or 
        licensure and alternative route programs to become highly 
        qualified teachers through--
                    ``(A) innovative approaches that reduce unnecessary 
                barriers to State certification or licensure while 
                producing highly qualified teachers;
                    ``(B) a selective means for admitting individuals 
                into such programs that includes passage of State 
                approved teacher examinations in appropriate subject 
                areas;
                    ``(C) programs that help prospective teachers 
                develop effective teaching skills and strategies 
                through knowledge of research-based information on the 
                learning process and learning practices;
                    ``(D) programs that provide support to teachers 
                during the teachers' initial years in the profession; 
                and
                    ``(E) alternative routes to State certification or 
                licensure of teachers for qualified individuals, 
                including mid-career professionals from other 
                occupations, paraprofessionals, former military 
                personnel, and recent college graduates with records of 
                academic distinction.
            ``(2) Innovative programs.--Planning and implementing 
        innovative programs to enhance the ability of institutions of 
        higher education, including charter colleges of education, or 
        university and local educational agency partnership schools, to 
        prepare highly qualified teachers, which programs shall--
                    ``(A) permit flexibility in the manner in which the 
                institution of higher education meets State 
                requirements as long as graduates, during the 
                graduates' initial years in the profession, increase 
                student academic achievement;
                    ``(B) provide a description in the application of 
                long-term data gathered from teachers' performance over 
                multiple years in the classroom regarding the teachers' 
                ability to increase student academic achievement;
                    ``(C) ensure high-quality preparation of teachers 
                from underrepresented groups;
                    ``(D) create performance measures that can be used 
                to document the effectiveness of innovative methods for 
                preparing highly qualified teachers; and
                    ``(E) develop frameworks for exemplary induction 
                programs informed by research and best practices.
            ``(3) Teacher recruitment and retention.--Undertaking 
        activities that develop and implement effective mechanisms to 
        ensure that local educational agencies and schools are able to 
        recruit and retain highly qualified teachers, which may include 
        the following activities:
                    ``(A) Performance based compensation.--Assisting 
                local educational agencies in developing--
                            ``(i) performance systems that reward 
                        teachers who increase student academic 
                        achievement and take on additional 
                        responsibilities, such as teacher mentoring and 
                        serving as master teachers; and
                            ``(ii) strategies that provide differential 
                        and bonus pay in high-need local educational 
                        agencies to recruit and retain--
                                    ``(I) principals;
                                    ``(II) highly qualified teachers 
                                who teach in high-need academic subject 
                                areas (such as reading, mathematics, 
                                science, and foreign language, 
                                including less commonly taught 
                                languages);
                                    ``(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;
                                    ``(IV) highly qualified special 
                                education teachers;
                                    ``(V) highly qualified teachers 
                                specializing in teaching children who 
                                are limited English proficient; and
                                    ``(VI) highly qualified teachers in 
                                low-income urban and rural schools or 
                                districts.
                    ``(B) Additional mechanisms.--Developing and 
                implementing effective mechanisms to ensure that local 
                educational agencies and schools are able to--
                            ``(i) address needs identified with respect 
                        to--
                                    ``(I) underrepresented groups;
                                    ``(II) high-need academic subject 
                                areas (such as reading, mathematics, 
                                science, and foreign language, 
                                including less commonly taught 
                                languages);
                                    ``(III) high-need areas (such as 
                                special education, language instruction 
                                educational programs, and early 
                                childhood education);
                                    ``(IV) high-need communities, such 
                                as rural and urban areas;
                                    ``(V) high-need schools, including 
                                schools with high rates of teacher 
                                turnover; and
                                    ``(VI) students with disabilities 
                                and students who are limited English 
                                proficient;
                            ``(ii) offer teacher mentoring for new 
                        teachers during such teachers' initial years of 
                        teaching; and
                            ``(iii) provide access to ongoing 
                        professional development opportunities for 
                        teachers and administrators.
                    ``(C) Teacher advancement.--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.
                    ``(D) Recruit qualified professionals.--Developing 
                recruitment programs or assisting local educational 
                agencies in--
                            ``(i) recruiting qualified professionals 
                        from other fields, including highly qualified 
                        paraprofessionals (as defined in section 2102 
                        of the Elementary and Secondary Education Act 
                        of 1965); and
                            ``(ii) providing such professionals with 
                        alternative routes to teacher certification or 
                        licensure.
                    ``(E) Underrepresented populations.--Providing 
                increased opportunities for minorities, individuals 
                with disabilities, and other individuals 
                underrepresented in the teaching profession.
                    ``(F) Rural education recruitment and retention 
                programs.--Making grants to rural school districts, or 
                a consortia of rural school districts, to implement--
                            ``(i) teacher recruitment strategies, which 
                        may include tuition assistance, student loan 
                        forgiveness, housing assistance, bonus pay, and 
                        other effective approaches;
                            ``(ii) teacher retention strategies, such 
                        as mentoring programs and ongoing opportunities 
                        for professional growth and advancement; and
                            ``(iii) partnerships with institutions of 
                        higher education designed to--
                                    ``(I) prepare beginning teachers to 
                                teach; and
                                    ``(II) assist teachers (including 
                                teachers who teach multiple subjects) 
                                to become highly qualified.
            ``(4) Teacher scholarships and support.--Providing--
                    ``(A) scholarships to help students, such as 
                individuals who have been accepted by, or who are 
                enrolled in, 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, if--
                            ``(i) the Secretary establishes such 
                        requirements as the Secretary determines 
                        necessary to ensure that recipients of 
                        scholarships under this section who complete 
                        teacher preparation programs--
                                    ``(I) subsequently teach in an 
                                early childhood education program or a 
                                high-need local educational agency for 
                                a period of time equivalent to the 
                                period of time for which the recipient 
                                received scholarship assistance, plus 
                                an additional 1 year; or
                                    ``(II) repay the amount of the 
                                scholarship if the recipient does not 
                                teach as described in subclause (I); 
                                and
                            ``(ii) the eligible State provides an 
                        assurance that the eligible State will recruit 
                        minority students to become highly qualified 
                        teachers;
                    ``(B) support services, if needed, to enable 
                scholarship recipients to complete postsecondary 
                education programs, or to move from a career outside of 
                the field of education into a teaching career; and
                    ``(C) follow-up services to former scholarship 
                recipients during the recipients' initial years of 
                teaching.
            ``(5) Teacher removal.--Developing and implementing 
        effective mechanisms to ensure that local educational agencies 
        and schools are able to expeditiously remove incompetent or 
        unqualified teachers consistent with procedures to ensure due 
        process for the teachers.
            ``(6) 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 subject matter the teachers teach, as a 
                result of such programs.
            ``(7) Early childhood educators.--Developing strategies to 
        improve and expand teacher preparation programs for early 
        childhood educators to teach in early childhood education 
        programs.
            ``(8) Professional development.--Developing and enhancing 
        high-quality professional development, instructional materials, 
        and relevant training materials.
            ``(9) Technology.--Assisting teachers to use technology 
        effectively, including use for instructional techniques and the 
        collection, management, and analysis of data to improve 
        teaching, learning, and decision making for the purpose of 
        increasing student academic achievement.
            ``(10) Areas of instructional shortage.--Increasing the 
        number of--
                    ``(A) teachers in the classroom providing 
                instruction in high-need academic subject areas (such 
                as reading, mathematics, science, and foreign language, 
                including less commonly taught languages) and high-need 
                areas (such as special education, language instruction 
                educational programs, and early childhood education); 
                and
                    ``(B) special education faculty dedicated to 
                preparing highly qualified special education teachers 
                at institutions of higher education.
            ``(11) Technical assistance.--Providing technical 
        assistance to low-performing programs of teacher preparation 
        within institutions of higher education identified under 
        section 207(a).
            ``(12) Evaluation support.--Performing data collection, 
        evaluation, and reporting to meet the requirements of 
        subsection (d)(3).
            ``(13) Professional advancement.--Developing a professional 
        advancement system to--
                    ``(A) initiate or enhance a system in which highly 
                qualified teachers who pursue advanced licensure levels 
                are required to demonstrate increased competencies and 
                undertake increased responsibilities for increased 
                compensation as the teachers progress through levels 
                established by the State; or
                    ``(B) provide opportunities for professional 
                growth, including through--
                            ``(i) a nationally recognized advance 
                        credentialing system; or
                            ``(ii) special certification in advanced 
                        placement or international baccalaureate 
                        content, teaching gifted and talented students, 
                        and pedagogy.
    ``(f) 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 
activities under this section.

``SEC. 203. PARTNERSHIP GRANTS.

    ``(a) Grants.--From amounts made available under section 209(a)(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 (e) and (f).
    ``(b) Definitions.--
            ``(1) Eligible partnership.--
                    ``(A) In general.--In this part, the term `eligible 
                partnership' means an entity that shall include--
                            ``(i) a partner institution;
                            ``(ii) a school of arts and sciences;
                            ``(iii) a high-need local educational 
                        agency and a school or a consortium of schools 
                        served by the agency; and
                            ``(iv) at least 1 individual or entity 
                        described in subparagraph (B).
                    ``(B) Additional individuals and entities.--In this 
                part, the term `eligible partnership' means an entity 
                that shall include at least 1 of the following:
                            ``(i) A Governor.
                            ``(ii) A State educational agency.
                            ``(iii) A State board of education.
                            ``(iv) A State agency for higher education.
                            ``(v) A school or department within the 
                        partner institution focusing on education, 
                        psychology, human development, or a department 
                        with comparable expertise in the disciplines of 
                        teaching, learning, and child and adolescent 
                        development.
                            ``(vi) An institution of higher education 
                        or a department within such institution, not 
                        described in subparagraph (A).
                            ``(vii) A public charter school.
                            ``(viii) A public or private elementary 
                        school or secondary school.
                            ``(ix) A public or private nonprofit 
                        educational organization.
                            ``(x) A business.
                            ``(xi) A science-, mathematics-, or 
                        technology-oriented entity.
                            ``(xii) An early childhood education 
                        program.
                            ``(xiii) A teacher organization.
                            ``(xiv) An educational service agency.
                            ``(xv) A consortium of local educational 
                        agencies.
                            ``(xvi) A nonprofit telecommunications 
                        entity.
            ``(2) Partner institution.--In this section, the term 
        `partner institution' means an institution of higher education, 
        which may include a 2-year institution of higher education 
        offering a dual program with a 4-year institution of higher 
        education, that has a teacher preparation program--
                    ``(A) whose graduates exhibit strong performance on 
                State-determined qualifying assessments for new 
                teachers through--
                            ``(i) demonstrating that 80 percent or more 
                        of 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 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 206(b); and
                                    ``(II) using the State report card 
                                on teacher preparation required under 
                                section 206(b), after the first 
                                publication of such report card and for 
                                every year thereafter; or
                    ``(B) that requires all the students of the program 
                to meet high academic standards and participate in 
                intensive clinical experience, and--
                            ``(i) in the case of secondary school 
                        candidates, to successfully complete--
                                    ``(I) a major or its equivalent in 
                                coursework in the academic subject area 
                                in which the candidate intends to 
                                teach; or
                                    ``(II) a related major in the 
                                academic subject area in which the 
                                candidate intends to teach;
                            ``(ii) in the case of elementary school 
                        candidates, to successfully complete--
                                    ``(I) an academic major or its 
                                equivalent in coursework in the arts 
                                and sciences; or
                                    ``(II) a major in elementary 
                                education with a significant amount of 
                                coursework in the arts and sciences; 
                                and
                            ``(iii) in the case of early childhood 
                        educators, to become fully competent and meet 
                        degree requirements, as established by the 
                        State.
    ``(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 contain--
            ``(1) a needs assessment of all the partners with respect 
        to the preparation, induction, and professional development of 
        early childhood educators, general and special education 
        teachers, and principals;
            ``(2) a description of the extent to which the teacher 
        preparation program of the eligible partnership prepares new 
        teachers with effective teaching skills;
            ``(3) a description of how the eligible partnership will 
        coordinate with other teacher preparation or professional 
        development programs, including those funded under the 
        Elementary and Secondary Education Act of 1965 and the 
        Individuals with Disabilities Education Act, and how the 
        activities of the eligible partnership will be consistent with 
        State, local, and other education reform activities that 
        promote student achievement;
            ``(4) a resource assessment that describes the resources 
        available to the eligible partnership, the intended use of the 
        grant funds (including a description of how the grant funds 
        will be fairly distributed), and the commitment of the 
        resources of the eligible partnership to the activities 
        assisted under this part, including financial support, faculty 
        participation, time commitments, and continuation of the 
        activities when the grant period ends;
            ``(5) a description of--
                    ``(A) how the eligible partnership will meet the 
                purposes of this part;
                    ``(B) how the eligible partnership will carry out 
                the activities required under subsection (e) and any 
                permissible activities under subsection (f);
                    ``(C) the eligible partnership's evaluation plan 
                pursuant to section 205(b);
                    ``(D) how the eligible partnership will align the 
                teacher preparation program with the challenging 
                student academic achievement standards, State early 
                learning standards for early childhood education 
                programs (where applicable), and challenging academic 
                content standards, established by the State in which 
                the partnership is located;
                    ``(E) how faculty of the teacher preparation 
                program at the partner institution will serve, over the 
                period of the grant, with highly qualified teachers in 
                the classrooms of the high-need local educational 
                agency included in the eligible partnership;
                    ``(F) how the eligible partnership will ensure that 
                teachers, principals, and superintendents in all 
                schools (including private schools, as appropriate) 
                located in the geographic areas served by an eligible 
                partnership under this section are provided information 
                about the activities carried out with funds under this 
                section, including through electronic means;
                    ``(G) how the eligible partnership will design, 
                implement, or enhance the clinical program component, 
                including promoting close supervision of student 
                teachers by faculty of the teacher preparation program 
                and mentor teachers while in the program and during the 
                student teachers' initial years of teaching if hired by 
                schools included in the eligible partnership;
                    ``(H) how the eligible partnership will develop or 
                enhance an induction program that includes high-quality 
                professional development to support new teachers during 
                the teachers' initial years of teaching that includes 
                teacher mentoring and collaborating with teachers in 
                the same grade, department, or field; and
                    ``(I) how the eligible partnership will collect, 
                analyze, use, and disseminate data on the retention of 
                all teachers in schools located in the geographic areas 
                served by the eligible partnership to evaluate the 
                effectiveness of its teacher support system; and
            ``(6) an assurance that the eligible partnership will carry 
        out each of the activities described in paragraph (5).
    ``(d) Consultation.--
            ``(1) In general.--Members of an eligible partnership that 
        receives a grant under this section shall engage in regular 
        consultation throughout the development and implementation of 
        programs and activities under this section.
            ``(2) Regular communication.--To ensure timely and 
        meaningful consultation, regular communication shall occur 
        among all members of the eligible partnership, including the 
        high-need local educational agency. Such communication shall 
        continue throughout the implementation of the grant and the 
        assessment of programs and activities under this section.
            ``(3) Written consent.--The Secretary may approve changes 
        in grant activities only if a written consent signed by all 
        members of the eligible partnership is submitted to the 
        Secretary.
    ``(e) Required Uses of Funds.--An eligible partnership that 
receives a grant under this section shall use the grant funds to carry 
out each of the following activities:
            ``(1) Reforms.--Ensuring that each teacher preparation 
        program and each early childhood educator preparation program, 
        where applicable, of the eligible partnership that is assisted 
        under this section addresses the needs identified in the needs 
        assessment of the partnership and is preparing current or 
        prospective teachers to be highly qualified, and, where 
        applicable, early childhood educators to be fully competent, to 
        understand scientifically based research and its applicability, 
        and to use technology effectively, including use of 
        instructional techniques to improve student academic 
        achievement, and in the case of early childhood educators, 
        techniques to improve children's cognitive, social, emotional, 
        and physical development, by assisting such programs--
                    ``(A) in retraining faculty;
                    ``(B) in designing (or redesigning) teacher 
                preparation programs so that such programs--
                            ``(i) are based on rigorous academic 
                        content and scientifically based research 
                        (including scientifically based reading 
                        research), and aligned with challenging State 
                        academic content standards and for early 
                        childhood educators, aligned with State early 
                        learning standards;
                            ``(ii) promote effective teaching skills;
                            ``(iii) promote understanding of effective 
                        instructional strategies for students with 
                        special needs, including students with 
                        disabilities, students who are limited English 
                        proficient, students who are gifted and 
                        talented, and children in early childhood 
                        education programs; and
                            ``(iv) promote high-quality mathematics, 
                        science, and foreign language instruction, 
                        where applicable;
                    ``(C) in ensuring collaboration with departments, 
                programs, or units outside of the teacher preparation 
                program in all academic content areas to ensure a 
                successful combination of training in both teaching and 
                such content; and
                    ``(D) in developing high-quality, rigorous clinical 
                experiences, lasting not less than 1 term, through 
                dissemination of best practices, technical assistance, 
                or other relevant activities.
            ``(2) Clinical experience and interaction.--Improving 
        sustained and high-quality preservice clinical experiences, 
        including--
                    ``(A) providing teacher mentoring; and
                    ``(B) 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 and release time, for such interaction.
            ``(3) Support programs for new teachers.--Creating a 
        program to support new teachers during the initial years of 
        teaching (for not less than 1 year and not more than 3 years). 
        Such program shall promote effective teaching skills and may 
        include the following components:
                    ``(A) Development of skills in educational 
                interventions based on scientifically based research.
                    ``(B) Development of knowledge of scientifically 
                based research on teaching and learning.
                    ``(C) Inclusion of faculty who model the 
                integration of research and practice in the classroom.
                    ``(D) Opportunities for--
                            ``(i) high-quality teacher mentoring; and
                            ``(ii) additional professional development, 
                        dissemination of evidence-based research on 
                        educational practices, and professional 
                        development activities.
                    ``(E) Interdisciplinary collaboration among 
                exemplary teachers, faculty, researchers, and other 
                staff who prepare new teachers on the learning process 
                and the assessment of learning.
    ``(f) Allowable Uses of Funds.--An eligible partnership that 
receives a grant under this section may use the grant funds to carry 
out any of the following activities that address the needs identified 
in the needs assessment:
            ``(1) Alternatives to traditional preparation for teaching 
        and state certification or licensure.--The activity described 
        in section 202(e)(1).
            ``(2) Dissemination and coordination.--Broadly 
        disseminating information on effective practices used by the 
        eligible partnership, and coordinating with the activities of 
        the Governor, State board of education, State agency for higher 
        education, State agency responsible for early childhood 
        education, and State educational agency, as appropriate.
            ``(3) Innovative programs.--Developing innovative programs 
        designed to provide graduates of programs funded under this 
        title with opportunities to continue their education through 
        supports and opportunities to improve instructional practices 
        in the initial years of teaching, including the following:
                    ``(A) Internships.--
                            ``(i) Teacher preparation enhancement 
                        internship.--Developing a 1-year paid 
                        internship program for students who have 
                        completed a 4-year teacher preparation program, 
                        or alternative routes to State certification or 
                        licensure program, to enable such students to 
                        develop the skills and experience necessary for 
                        success in teaching, including providing 
                        intensive clinical training and combining in-
                        service instruction in teacher methods and 
                        assessments with classroom observations, 
                        experiences, and practices. Such interns shall 
                        have a reduced teaching load and a mentor for 
                        assistance in the classroom.
                            ``(ii) Mid-career professional 
                        internships.--Developing a 1-year paid 
                        internship program for mid-career professionals 
                        from other occupations, former military 
                        personnel, and recent college graduates from 
                        fields other than teacher preparation with 
                        records of academic distinction to enable such 
                        individuals to develop the skills and 
                        experience necessary for success in teaching, 
                        including providing intensive clinical training 
                        and combining in-service instruction in teacher 
                        methods and assessments with classroom 
                        observations, experiences, and practices. Such 
                        interns shall have a reduced teaching load and 
                        a mentor for assistance in the classroom.
                    ``(B) Residency programs for new teachers.--
                Supporting teachers in a residency program that 
                provides an induction period for all new general 
                education and special education teachers that 
                includes--
                            ``(i) a forum for information sharing among 
                        prospective teachers, teachers, principals, 
                        administrators, and participating faculty in 
                        the partner institution; and
                            ``(ii) the application of scientifically 
                        based research on teaching and learning 
                        generated by entities such as the Institute of 
                        Education Sciences, and the National Research 
                        Council of the National Academies.
                    ``(C) Pathways for paraprofessionals to enter 
                teaching.--Creating intensive programs to provide the 
                coursework and clinical experiences needed by highly 
                qualified paraprofessionals, as defined in section 2102 
                of the Elementary and Secondary Education Act of 1965, 
                to qualify for State teacher certification or 
                licensure.
            ``(4) Managerial and leadership skills.--Developing and 
        implementing proven mechanisms to provide principals and 
        superintendents with effective managerial, leadership, 
        curricula, and instructional skills that result in increased 
        student academic achievement.
            ``(5) Teacher scholarships and support.--Providing--
                    ``(A) scholarships to help students, such as 
                individuals who have been accepted by, or who are 
                enrolled in, 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, if--
                            ``(i) the Secretary establishes such 
                        requirements as the Secretary determines 
                        necessary to ensure that recipients of 
                        scholarships under this paragraph who complete 
                        teacher preparation programs--
                                    ``(I) subsequently teach in a high-
                                need local educational agency for a 
                                period of time equivalent to the period 
                                of time for which the recipient 
                                received the scholarship assistance, 
                                plus an additional 1 year; or
                                    ``(II) repay the amount of the 
                                scholarship if the recipient does not 
                                teach as described in subclause (I); 
                                and
                            ``(ii) the eligible partnership provides an 
                        assurance that the eligible partnership will 
                        recruit minority students to become highly 
                        qualified teachers;
                    ``(B) support services, if needed, to enable 
                scholarship recipients to complete postsecondary 
                education programs, or to transition from a career 
                outside of the field of education into a teaching 
                career; and
                    ``(C) follow-up services for former scholarship 
                recipients during the recipients' initial years of 
                teaching.
            ``(6) Coordination with community colleges.--
                    ``(A) Teacher preparation programs.--Coordinating 
                with 2-year institutions of higher education to 
                implement teacher preparation programs, including 
                through distance learning, for the purposes of allowing 
                prospective teachers--
                            ``(i) to obtain a bachelor's degree and 
                        State certification or licensure; and
                            ``(ii) to become highly qualified teachers.
                    ``(B) Professional development.--Coordinating with 
                2-year institutions of higher education to provide 
                professional development that--
                            ``(i) improves the academic content 
                        knowledge of teachers in the academic 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
                            ``(ii) promotes effective teaching skills.
            ``(7) Clinical experience in science, mathematics, and 
        technology.--Creating opportunities for clinical experience and 
        training for teachers and prospective teachers through 
        participation with professionals in business, research, and 
        work environments in areas relating to science, mathematics, 
        and technology, including opportunities for using laboratory 
        equipment.
            ``(8) Professional development.--Creating opportunities for 
        enhanced and ongoing professional development for experienced 
        general education and special education teachers, early 
        childhood educators, principals, administrators, and faculty.
            ``(9) Technology.--The activity described in section 
        202(e)(9).
            ``(10) Areas of instructional shortage.--Increasing the 
        number of--
                    ``(A) teachers in the classroom providing 
                instruction in high-need academic subject areas (such 
                as reading, mathematics, science, and foreign language, 
                including less commonly taught languages), and high-
                need areas (such as special education, language 
                instruction educational programs, and early childhood 
                education);
                    ``(B) special education faculty dedicated to 
                preparing highly qualified special education teachers 
                at institutions of higher education; and
                    ``(C) faculty at institutions of higher education 
                with expertise in instruction of students who are 
                limited English proficient.
            ``(11) Improving instruction.--Improving instruction by--
                    ``(A) improving understanding and instruction in 
                core academic subjects and other, specialized courses, 
                such as geography, American history and government, and 
                world history; and
                    ``(B) creating externships for teachers and 
                prospective teachers for field experience and training 
                through participation in business, research, and work 
                environments in high-need academic subject areas (such 
                as reading, mathematics, science, and foreign language, 
                including less commonly taught languages) and high-need 
                areas (such as special education, language instruction 
                educational programs, and early childhood education).
            ``(12) Graduate programs.--Developing, in collaboration 
        with departments, programs, or units of both academic content 
        and teacher education within a partner institution, master's 
        degree programs that meet the demonstrated needs of teachers in 
        the high-need local educational agency participating in the 
        eligible partnership for content expertise and teaching skills.
            ``(13) Literacy teacher training.--Establishing and 
        implementing a program that strengthens content knowledge and 
        teaching skills of secondary school teachers in literacy that--
                    ``(A) provides teacher training and stipends for 
                literacy coaches who train classroom teachers to 
                implement literacy programs;
                    ``(B) develops or redesigns rigorous research-based 
                curricula that are aligned with challenging State and 
                local academic content standards, and with 
                postsecondary standards for reading and writing;
                    ``(C) provides training and stipends for teachers 
                to tutor students with intense individualized reading, 
                writing, and subject matter instruction during or 
                beyond the school day;
                    ``(D) provides opportunities for teachers to plan 
                and assess instruction with other teachers, school 
                leaders, and faculty at institutions of higher 
                education; and
                    ``(E) establishes an evaluation and accountability 
                plan for activities conducted under this paragraph to 
                measure the impact of such activities.
    ``(g) Construction.--Nothing in this section shall be construed to 
prohibit an eligible partnership from using grant funds to coordinate 
with the activities of eligible partnerships in other States or on a 
regional basis through Governors, State boards of education, State 
educational agencies, State agencies responsible for early childhood 
education, local educational agencies, or State agencies 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 
activities under this section.

``SEC. 204. ADMINISTRATIVE PROVISIONS.

    ``(a) Duration; Number of Awards; Payments.--
            ``(1) Duration.--
                    ``(A) Eligible states.--Grants awarded to eligible 
                States 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) Number of awards.--An eligible partnership may not 
        receive more than 1 grant during a 5-year period. Nothing in 
        this title shall be construed to prohibit an individual member, 
        that can demonstrate need, of an eligible partnership that 
        receives a grant under this title from entering into another 
        eligible partnership consisting of new members and receiving a 
        grant with such other eligible partnership before the 5-year 
        period described in the preceding sentence applicable to the 
        eligible partnership with which the individual member has first 
        partnered has expired.
            ``(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--
                            ``(i) that have innovative reforms to hold 
                        institutions of higher education with teacher 
                        preparation programs accountable for preparing 
                        teachers to become highly qualified and have 
                        effective teaching skills;
                            ``(ii) that have innovative efforts aimed 
                        at reducing the shortage of highly qualified 
                        general and special education teachers, 
                        including in low-income urban and rural areas 
                        and in high-need academic subject areas (such 
                        as reading, mathematics, science, and foreign 
                        language, including less commonly taught 
                        languages); and
                            ``(iii) whose awards promote an equitable 
                        geographic distribution of grants among rural 
                        and urban areas; and
                    ``(B) with respect to grants under section 203, 
                give priority--
                            ``(i) to applications from broad-based 
                        eligible partnerships that involve businesses 
                        and community organizations; and
                            ``(ii) to eligible partnerships so that the 
                        awards promote an equitable geographic 
                        distribution of grants among rural and urban 
                        areas.
            ``(3) Secretarial selection.--The Secretary shall 
        determine, based on the peer review process, which applications 
        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 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 shall provide, from non-
        Federal sources (in cash or in kind), an amount equal to 25 
        percent of the amount of the grant for the first year of the 
        grant, 35 percent of the amount of the grant for the second 
        year of the grant, and 50 percent of the amount 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 use not 
more than 2 percent of the grant funds for purposes of administering 
the grant.
    ``(e) Additional Activities.--The Secretary shall use funds repaid 
pursuant to section 202(e)(4)(A)(i)(II) or section 203(f)(5)(A)(i)(II) 
to carry out additional activities under section 202 or 203, 
respectively.

``SEC. 205. 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 
progress in meeting the purposes of this part and substantial progress 
in meeting the following goals, as applicable:
            ``(1) Student academic achievement.--Increasing student 
        academic achievement for all students as defined by the 
        eligible State.
            ``(2) Raising standards.--Raising the State academic 
        standards required to enter the teaching profession as a highly 
        qualified teacher, and where applicable, as a fully competent 
        early childhood educator.
            ``(3) Initial certification or licensure.--Increasing 
        success in the pass rates and scaled scores for initial State 
        teacher certification or licensure, or increasing the numbers 
        of qualified individuals being certified or licensed as 
        teachers through alternative routes to State certification or 
        licensure programs.
            ``(4) Percentage of highly qualified teachers.--Providing 
        data on the progress of the State towards meeting the highly 
        qualified teacher requirements under section 1119(a)(2) of the 
        Elementary and Secondary Education Act of 1965.
            ``(5) Decreasing teacher shortages.--Decreasing shortages 
        of--
                    ``(A) highly qualified teachers in--
                            ``(i) low-income urban and rural areas;
                            ``(ii) high-need academic subject areas 
                        (such as reading, mathematics, science, and 
                        foreign language, including less commonly 
                        taught languages);
                            ``(iii) special education; and
                            ``(iv) high-need areas (such as special 
                        education, language instruction educational 
                        programs, and early childhood education); and
                    ``(B) fully competent early childhood educators.
            ``(6) Increasing opportunities for professional 
        development.--Increasing opportunities for enhanced and ongoing 
        professional development that--
                    ``(A) improves the academic content knowledge of 
                teachers in the academic 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 effective teaching skills.
    ``(b) Eligible Partnership Evaluation.--Each eligible partnership 
submitting an application for a grant under section 203 shall establish 
and include in such application, an evaluation plan that includes 
strong performance objectives. The plan shall include objectives and 
measures for increasing--
            ``(1) student achievement for all students as measured by 
        the eligible partnership;
            ``(2) teacher retention in the first 3 years of a teacher's 
        career;
            ``(3) success in the pass rates and scaled scores for 
        initial State certification or licensure of teachers;
            ``(4) the percentage of highly qualified teachers hired by 
        the high-need local educational agency participating in the 
        eligible partnership; and
            ``(5) the percentage of--
                    ``(A) highly qualified teachers among 
                underrepresented groups, in high-need academic subject 
                areas (such as reading, mathematics, science, and 
                foreign language, including less commonly taught 
                languages), in high-need areas (such as special 
                education, language instruction educational programs, 
                and early childhood education), and in high-need 
                schools;
                    ``(B) elementary school, middle school, and 
                secondary school classes taught by teachers who are 
                highly qualified;
                    ``(C) early childhood education program classes 
                taught by providers who are fully competent; and
                    ``(D) highly qualified special education teachers.
    ``(c) Revocation of Grant.--
            ``(1) Eligible states.--If the Secretary determines that an 
        eligible State 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.
            ``(2) 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 the Secretary's 
findings regarding the activities to the authorizing committees. The 
Secretary shall broadly disseminate--
            ``(1) successful practices developed by eligible States and 
        eligible partnerships under this part; and
            ``(2) information regarding such practices that were found 
        to be ineffective.

``SEC. 206. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

    ``(a) Institutional and Program Report Cards on the Quality of 
Teacher Preparation.--
            ``(1) Report card.--Each institution of higher education 
        that conducts a traditional teacher preparation program or an 
        alternative routes to State certification or licensure program 
        and 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 teacher preparation programs and 
        alternative routes to State certification or licensure 
        programs, the following information:
                    ``(A) Pass rates and scaled scores.--For the most 
                recent year for which the information is available for 
                those students who are enrolled in the traditional 
                teacher preparation program or alternative routes to 
                State certification or licensure program, or who have 
                completed the traditional teacher preparation program 
                or alternative routes to State certification or 
                licensure program during the 2-year period preceding 
                such year, for each of the assessments used for teacher 
                certification or licensure by the State in which the 
                program is located--
                            ``(i) the percentage of students who have 
                        completed 100 percent of the nonclinical 
                        coursework and taken the assessment who pass 
                        such assessment;
                            ``(ii) the percentage of all students who 
                        passed each such assessment;
                            ``(iii) the percentage of students taking 
                        an assessment who completed the teacher 
                        preparation program after enrolling in the 
                        program, which shall be made available widely 
                        and publicly by the State;
                            ``(iv) the average scaled score for all 
                        students who passed each such assessment;
                            ``(v) a comparison of the program's pass 
                        rates with the average pass rates for programs 
                        in the State; and
                            ``(vi) a comparison of the program's 
                        average scaled scores with the average scaled 
                        scores for programs in the State.
                    ``(B) Program information.--The criteria for 
                admission into the program, the number of students in 
                the program (disaggregated by race and gender), the 
                average number of hours of supervised clinical 
                experience required for those in the program, the 
                number of full-time equivalent faculty and students in 
                the supervised clinical experience, and the total 
                number of students who have been certified or licensed 
                as teachers, disaggregated by subject and area of 
                certification or licensure.
                    ``(C) Statement.--In States that require approval 
                or accreditation of teacher preparation 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 207(a).
                    ``(E) Use of technology.--A description of the 
                activities that prepare teachers to effectively 
                integrate technology into curricula and instruction and 
                effectively use technology to collect, manage, and 
                analyze data in order to improve teaching, learning, 
                and decision making for the purpose of increasing 
                student academic achievement.
            ``(2) Report.--Each eligible partnership receiving a grant 
        under section 203 shall report annually on the progress of the 
        eligible partnership toward meeting the purposes of this part 
        and the objectives and measures described in section 205(b).
            ``(3) Fines.--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.
            ``(4) Special rule.--In the case of an institution of 
        higher education that conducts a traditional teacher 
        preparation program or an alternative routes to State 
        certification or licensure program and has fewer than 10 scores 
        reported on any single initial teacher certification or 
        licensure assessment during an academic year, the institution 
        shall collect and publish information, as required under 
        paragraph (1)(A), with respect to an average pass rate and 
        scaled score on each State certification or licensure 
        assessment taken over a 3-year period.
    ``(b) State Report Card on the Quality of Teacher Preparation.--
            ``(1) In general.--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 teacher preparation programs and for alternative 
        routes to State certification or licensure programs, which 
        shall include not less than the following:
                    ``(A) A description of reliability and validity of 
                the teacher certification and licensure assessments, 
                and any other certification and licensure requirements, 
                used by the State.
                    ``(B) 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 academic subject areas or 
                in particular grades within the State.
                    ``(C) A description of how the assessments and 
                requirements described in subparagraph (A) are aligned 
                with the State's challenging academic content standards 
                required under section 1111(b)(1) of the Elementary and 
                Secondary Education Act of 1965 and State early 
                learning standards for early childhood education 
                programs.
                    ``(D) For each of the assessments used by the State 
                for teacher certification or licensure--
                            ``(i) for each institution of higher 
                        education located in the State and each entity 
                        located in the State that offers an alternative 
                        route for teacher certification or licensure, 
                        the percentage of students at such institution 
                        or entity who have completed 100 percent of the 
                        nonclinical coursework and taken the assessment 
                        who pass such assessment;
                            ``(ii) the percentage of all such students 
                        at all such institutions taking the assessment 
                        who pass such assessment; and
                            ``(iii) the percentage of students taking 
                        an assessment who completed the teacher 
                        preparation program after enrolling in the 
                        program, which shall be made available widely 
                        and publicly by the State.
                    ``(E) A description of alternative routes to State 
                certification or licensure in the State, if any, 
                including, for each of the assessments used by the 
                State for teacher certification or licensure--
                            ``(i) the percentage of individuals 
                        participating in such routes, or who have 
                        completed such routes during the 2-year period 
                        preceding the date of the determination, who 
                        passed each such assessment; and
                            ``(ii) the average scaled score of 
                        individuals participating in such routes, or 
                        who have completed such routes during the 
                        period preceding the date of the determination, 
                        who passed each such assessment.
                    ``(F) A description of the State's criteria for 
                assessing the performance of teacher preparation 
                programs within institutions of higher education in the 
                State. Such criteria shall include indicators of the 
                academic content knowledge and teaching skills of 
                students enrolled in such programs.
                    ``(G) For each teacher preparation program in the 
                State, the criteria for admission into the program, the 
                number of students in the program (disaggregated by 
                race and gender), the average number of hours of 
                supervised clinical experience required for those in 
                the program, and the number of full-time equivalent 
                faculty, adjunct faculty, and students in supervised 
                clinical experience.
                    ``(H) For the State as a whole, and for each 
                teacher preparation program in the State, the number of 
                teachers prepared, in the aggregate and reported 
                separately by--
                            ``(i) area of certification or licensure;
                            ``(ii) academic major; and
                            ``(iii) subject area for which the teacher 
                        has been prepared to teach.
                    ``(I) Using the data generated under subparagraphs 
                (G) and (H), a description of the extent to which 
                teacher preparation programs are helping to address 
                shortages of highly qualified teachers, by area of 
                certification or licensure, subject, and specialty, in 
                the State's public schools, including those areas 
                described in section 205(a)(5).
                    ``(J) A description of the activities that prepare 
                teachers to effectively integrate technology into 
                curricula and instruction and effectively use 
                technology to collect, manage, and analyze data in 
                order to improve teaching, learning, and decision 
                making for the purpose of increasing student academic 
                achievement.
            ``(2) Prohibition against creating a national list.--The 
        Secretary shall not create a national list or ranking of States 
        or schools using the scaled scores provided under this 
        subsection.
    ``(c) 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 subparagraphs (A) 
        through (J) of subsection (b)(1). Such report shall identify 
        States for which eligible States and eligible partnerships 
        received a grant under this part. Such report shall be so 
        provided, published, and made available annually.
            ``(2) Report to congress.--The Secretary shall prepare and 
        submit a report to Congress that contains the following:
                    ``(A) A comparison of States efforts to improve the 
                quality of the current and future teaching force.
                    ``(B) A comparison of eligible partnerships' 
                efforts to improve the quality of the current and 
                future teaching force.
                    ``(C) The national mean and median scaled scores 
                and pass rate on any standardized test that is used in 
                more than 1 State for teacher certification or 
                licensure.
            ``(3) Special rule.--In the case of a teacher preparation 
        program with fewer than 10 scores reported on any single 
        initial teacher certification or licensure assessment during an 
        academic year, the Secretary shall collect and publish 
        information, and make publicly available, with respect to an 
        average pass rate and scaled score on each State certification 
        or licensure assessment taken over a 3-year period.
    ``(d) 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.

``SEC. 207. 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. Such State shall provide the Secretary an annual 
list of such low-performing teacher preparation programs that includes 
an identification of those programs at risk of being placed on such 
list. Such levels of performance shall be determined solely by the 
State and may include criteria based on information collected pursuant 
to this part. Such assessment shall be described in the report under 
section 206(b).
    ``(b) Termination of Eligibility.--Any program of teacher 
preparation from which the State has withdrawn the State's approval, or 
terminated the State's financial support, due to the low performance of 
the 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;
            ``(2) shall not be permitted to accept or enroll any 
        student that receives aid under title IV in the institution's 
        teacher preparation program; and
            ``(3) shall provide transitional support, including 
        remedial services if necessary, for students enrolled at the 
        institution at the time of termination of financial support or 
        withdrawal of approval.
    ``(c) Negotiated Rulemaking.--If the Secretary develops any 
regulations implementing subsection (b)(2), the Secretary shall submit 
such proposed regulations to a negotiated rulemaking process, which 
shall include representatives of States, institutions of higher 
education, and educational and student organizations.
    ``(d) Application of the Requirements.--The requirements of this 
section shall apply to both traditional teacher preparation programs 
and alternative routes to State certification and licensure programs.

``SEC. 208. GENERAL PROVISIONS.

    ``(a) Methods.--In complying with sections 206 and 207, 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 that does not use content 
assessments as a means of ensuring that all teachers teaching in core 
academic subjects within the State are highly qualified not later than 
the end of the 2005-2006 school year, as required under section 1119 of 
the Elementary and Secondary Education Act of 1965, and that each 
person employed as a special education teacher in the State who teaches 
elementary school, middle school, or secondary school is highly 
qualified by such deadline, as required under section 612(a)(14)(C) of 
the Individuals with Disabilities Education Act,--
            ``(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, pass rates, and scaled scores.
    ``(c) Limitations.--
            ``(1) Federal control prohibited.--Nothing in this title 
        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 
        title.
            ``(2) No change in state control encouraged or required.--
        Nothing in this title 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 or licensure 
        prohibited.--Nothing in this title shall be construed to 
        permit, allow, encourage, or authorize the Secretary to 
        establish or support any national system of teacher 
        certification or licensure.
    ``(d) Release of Information to Teacher Preparation Programs.--
            ``(1) In general.--For the purpose of improving teacher 
        preparation programs, a State educational agency shall provide 
        to a teacher preparation program, upon the request of the 
        teacher preparation program, any and all pertinent education-
        related information that--
                    ``(A) may enable the teacher preparation program to 
                evaluate the effectiveness of the program's graduates 
                or the program itself; and
                    ``(B) is possessed, controlled, or accessible by 
                the State educational agency.
            ``(2) Content of information.--The information described in 
        paragraph (1)--
                    ``(A) shall include an identification of specific 
                individuals who graduated from the teacher preparation 
                program to enable the teacher preparation program to 
                evaluate the information provided to the program from 
                the State educational agency with the program's own 
                data about the specific courses taken by, and field 
                experiences of, the individual graduates; and
                    ``(B) may include--
                            ``(i) kindergarten through grade 12 
                        academic achievement and demographic data, 
                        without individual identifying information, for 
                        students who have been taught by graduates of 
                        the teacher preparation program; and
                            ``(ii) teacher effectiveness evaluations 
                        for teachers who graduated from the teacher 
                        preparation program.

``SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part such sums as may be necessary for fiscal year 2006 and 
each of the 5 succeeding fiscal years, of which--
            ``(1) 50 percent shall be available for each fiscal year to 
        award grants under section 202; and
            ``(2) 50 percent shall be available for each fiscal year to 
        award grants under section 203.
    ``(b) Special Rule.--If the Secretary determines that there is an 
insufficient number of meritorious applications for grants under 
section 202 or 203 to justify awarding the full amount described in 
paragraph (1) or (2) of subsection (a), respectively, the Secretary 
may, after funding the meritorious applications, use the remaining 
funds for grants under the other such section.''.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. PROGRAM PURPOSE.

    Section 311 (20 U.S.C. 1057) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``351'' and 
                inserting ``391''; and
                    (B) in paragraph (3)(F), by inserting ``, including 
                services that will assist in the education of special 
                populations'' before the period; and
            (2) in subsection (c)--
                    (A) in paragraph (6), by inserting ``, including 
                innovative, customized, remedial education and English 
                language instruction courses designed to help retain 
                students and move the students rapidly into core 
                courses and through program completion'' before the 
                period;
                    (B) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively;
                    (C) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' parents.''; and
                    (D) in the matter preceding subparagraph (A) of 
                paragraph (13) (as redesignated by subparagraph (B)), 
                by striking ``subsection (c)'' and inserting 
                ``subsection (b) and section 391''.

SEC. 302. DEFINITIONS; ELIGIBILITY.

    Section 312 (20 U.S.C. 1058) is amended--
            (1) in subsection (b)(1)(A), by striking ``subsection (c) 
        of this section'' and inserting ``subsection (d)''; and
            (2) in subsection (d)(2), by striking ``subdivision'' and 
        inserting ``paragraph''.

SEC. 303. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
              UNIVERSITIES.

    Section 316 (20 U.S.C. 1059c) is amended--
            (1) by striking subsection (b)(3) and inserting the 
        following:
            ``(3) Tribal college or university.--The term `Tribal 
        College or University' means an institution that meets the 
        definition of a tribally controlled college or university in 
        section 2 of the Tribally Controlled College or University 
        Assistance Act of 1978 (25 U.S.C. 1801).'';
            (2) in subsection (c)(2)--
                    (A) in subparagraph (B), by inserting before the 
                semicolon at the end the following: ``and the 
                acquisition of real property adjacent to the campus of 
                the institution'';
                    (B) by redesignating subparagraphs (G), (H), (I), 
                (J), (K), and (L) as subparagraphs (H), (I), (J), (K), 
                (L), and (N), respectively;
                    (C) by inserting after subparagraph (F) the 
                following:
                    ``(G) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students or parents of students;'';
                    (D) in subparagraph (L) (as redesignated by 
                subparagraph (B)), by striking ``and'' after the 
                semicolon;
                    (E) by inserting after subparagraph (L) (as 
                redesignated by subparagraph (B)) the following:
                    ``(M) developing or improving facilities for 
                Internet use or other distance learning academic 
                instruction capabilities; and''; and
                    (F) in subparagraph (N) (as redesignated by 
                subparagraph (B)), by striking ``subparagraphs (A) 
                through (K)'' and inserting ``subparagraphs (A) through 
                (M)''; and
            (3) by striking subsection (d) and inserting the following:
    ``(d) Application, Plan, and Allocation.--
            ``(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.--
                    ``(A) In general.--A 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.
                    ``(B) Streamlined process.--The Secretary shall 
                establish application requirements in such a manner as 
                to simplify and streamline the process for applying for 
                grants.
            ``(3) Allocations to institutions.--
                    ``(A) Construction grants.--
                            ``(i) In general.--Of the amount 
                        appropriated to carry out this section for any 
                        fiscal year, the Secretary may reserve 30 
                        percent for the purpose of awarding 1-year 
                        grants of not less than $1,000,000 to address 
                        maintenance and renovation needs at eligible 
                        institutions.
                            ``(ii) Preference.--In providing grants 
                        under clause (i), the Secretary shall give 
                        preference to eligible institutions that have 
                        not yet received an award under this section.
                    ``(B) Allotment of remaining funds.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Secretary shall distribute the 
                        remaining funds appropriated for any fiscal 
                        year to each eligible institution as follows:
                                    ``(I) 60 percent of the remaining 
                                appropriated funds shall be distributed 
                                among the eligible Tribal Colleges and 
                                Universities on a pro rata basis, based 
                                on the respective Indian student counts 
                                (as defined in section 2(a) of the 
                                Tribally Controlled College or 
                                University Assistance Act of 1978 (25 
                                U.S.C. 1801(a)) of the Tribal Colleges 
                                and Universities; and
                                    ``(II) the remaining 40 percent 
                                shall be distributed in equal shares to 
                                eligible Tribal Colleges and 
                                Universities.
                            ``(ii) Minimum grant.--The amount 
                        distributed to a Tribal College or University 
                        under clause (i) shall not be less than 
                        $500,000.
            ``(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. 304. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--
            (1) in subparagraph (G), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (H), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(I) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students or the students' parents.''.

SEC. 305. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

    (a) Grant Program Authorized.--Part A of title III (20 U.S.C. 1057 
et seq.) is amended by adding at the end the following:

``SEC. 318. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

    ``(a) Program Authorized.--The Secretary shall provide grants and 
related assistance to Native American-serving, nontribal institutions 
to enable such institutions to improve and expand their capacity to 
serve Native Americans.
    ``(b) Definitions.--In this section:
            ``(1) Native american.--The term `Native American' means an 
        individual who is of a tribe, people, or culture that is 
        indigenous to the United States.
            ``(2) Native american-serving, nontribal institution.--The 
        term `Native American-serving, nontribal institution' means an 
        institution of higher education that, at the time of 
        application--
                    ``(A) has an enrollment of undergraduate students 
                that is not less than 10 percent Native American 
                students; and
                    ``(B) is not a Tribal College or University (as 
                defined in section 316).
    ``(c) Authorized Activities.--
            ``(1) Types of activities authorized.--Grants awarded under 
        this section shall be used by Native American-serving, 
        nontribal institutions to assist such institutions to plan, 
        develop, undertake, and carry out activities to improve and 
        expand such institutions' capacity to serve Native Americans.
            ``(2) Examples of authorized activities.--Such programs may 
        include--
                    ``(A) the purchase, rental, or lease of scientific 
                or laboratory equipment for educational purposes, 
                including instructional and research purposes;
                    ``(B) renovation and improvement in classroom, 
                library, laboratory, and other instructional 
                facilities;
                    ``(C) support of faculty exchanges, and faculty 
                development and faculty fellowships to assist faculty 
                in attaining advanced degrees in the faculty's field of 
                instruction;
                    ``(D) curriculum development and academic 
                instruction;
                    ``(E) the purchase of library books, periodicals, 
                microfilm, and other educational materials;
                    ``(F) funds and administrative management, and 
                acquisition of equipment for use in strengthening funds 
                management;
                    ``(G) the joint use of facilities such as 
                laboratories and libraries; and
                    ``(H) academic tutoring and counseling programs and 
                student support services.
    ``(d) Application Process.--
            ``(1) Institutional eligibility.--A Native American-
        serving, nontribal institution desiring to receive assistance 
        under this section shall submit to the Secretary such 
        enrollment data as may be necessary to demonstrate that the 
        institution is a Native American-serving, nontribal 
        institution, along with such other information and data as the 
        Secretary may by regulation require.
            ``(2) Applications.--
                    ``(A) Permission to submit applications.--Any 
                institution that is determined by the Secretary to be a 
                Native American-serving, nontribal institution may 
                submit an application for assistance under this section 
                to the Secretary.
                    ``(B) Simplified and streamlined format.--The 
                Secretary shall, to the extent possible, prescribe a 
                simplified and streamlined format for applications 
                under this section that takes into account the limited 
                number of institutions that are eligible for assistance 
                under this section.
                    ``(C) Content.--An application submitted under 
                subparagraph (A) shall include--
                            ``(i) a 5-year plan for improving the 
                        assistance provided by the Native American-
                        serving, nontribal institution to Native 
                        Americans; and
                            ``(ii) such other information and 
                        assurances as the Secretary may require.
            ``(3) Special rules.--
                    ``(A) Eligibility.--No Native American-serving, 
                nontribal institution that 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.
                    ``(C) Distribution.--In awarding grants under this 
                section, the Secretary shall, to the extent possible 
                and consistent with the competitive process under which 
                such grants are awarded, ensure maximum and equitable 
                distribution among all eligible institutions.''.
    (b) Authorization of Appropriations.--Section 399 (20 U.S.C. 1068h) 
is amended by adding at the end the following:
    ``(c) Minimum Grant Amount.--The minimum amount of a grant under 
this title shall be $200,000.''.

SEC. 306. PART B DEFINITIONS.

    Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting ``, in 
consultation with the Commissioner for Education Statistics'' before 
``and the Commissioner''.

SEC. 307. GRANTS TO INSTITUTIONS.

    Section 323(a) (20 U.S.C. 1062(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``360(a)(2)'' and inserting ``399(a)(2)'';
            (2) by redesignating paragraphs (7) through (12) as 
        paragraphs (8) through (13), respectively; and
            (3) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' parents.''.

SEC. 308. ALLOTMENTS TO INSTITUTIONS.

    Section 324 (20 U.S.C. 1063) is amended by adding at the end the 
following:
    ``(h) Special Rule on Eligibility.--Notwithstanding any other 
provision of this section, a part B institution shall not receive an 
allotment under this section unless the part B institution provides 
data indicating that the part B institution--
            ``(1) enrolled Federal Pell Grant recipients in the 
        preceding academic year;
            ``(2) in the preceding academic year, has graduated 
        students from a program of academic study that is licensed or 
        accredited by a nationally recognized accrediting agency or 
        association recognized by the Secretary pursuant to part H of 
        title IV where appropriate; and
            ``(3) where appropriate, has graduated students who, within 
        the past 5 years, enrolled in graduate or professional 
        school.''.

SEC. 309. PROFESSIONAL OR GRADUATE INSTITUTIONS.

    Section 326 (20 U.S.C. 1063b) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2), by inserting ``, and for the 
                acquisition and development of real property that is 
                adjacent to the campus for such construction, 
                maintenance, renovation, or improvement'' after 
                ``services'';
                    (B) by redesignating paragraphs (5) through (7) as 
                paragraphs (7) through (9), respectively;
                    (C) by inserting after paragraph (4) the following:
            ``(5) tutoring, counseling, and student service programs 
        designed to improve academic success;
            ``(6) education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' parents;'';
                    (D) in paragraph (7) (as redesignated by 
                subparagraph (B)), by striking ``establish or improve'' 
                and inserting ``establishing or improving'';
                    (E) in paragraph (8) (as redesignated by 
                subparagraph (B))--
                            (i) by striking ``assist'' and inserting 
                        ``assisting''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (F) in paragraph (9) (as redesignated by 
                subparagraph (B)), by striking the period and inserting 
                ``; and''; and
                    (G) by adding at the end the following:
            ``(10) other activities proposed in the application 
        submitted under subsection (d) 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.'';
            (2) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by inserting a colon after ``the 
                        following'';
                            (ii) in subparagraph (Q), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (R), by striking the 
                        period and inserting a semicolon; and
                            (iv) by adding at the end the following:
                    ``(S) Alabama State University qualified graduate 
                program;
                    ``(T) Coppin State University qualified graduate 
                program; and
                    ``(U) Prairie View A & M University qualified 
                graduate program.'';
                    (B) in paragraph (2), by inserting ``in law or'' 
                after ``instruction'';
                    (C) in paragraph (3), by striking ``1998'' and 
                inserting ``2006'';
            (3) in subsection (f)(3)--
                    (A) by striking subparagraphs (A) and (B) and 
                inserting the following:
                    ``(A) The amount of non-Federal funds for the 
                fiscal year for which the determination is made that 
                the institution or program listed in subsection (e)--
                            ``(i) allocates from institutional 
                        resources;
                            ``(ii) secures from non-Federal sources, 
                        including amounts appropriated by the State and 
                        amounts from the private sector; and
                            ``(iii) will utilize to match Federal funds 
                        awarded for the fiscal year for which the 
                        determination is made under this section to the 
                        institution or program.
                    ``(B) The number of students enrolled in the 
                qualified graduate programs of the eligible institution 
                or program, for which the institution or program 
                received and allocated funding under this section in 
                the preceding year.'';
                    (B) in subparagraph (C), by striking ``(or the 
                equivalent) enrolled in the eligible professional or 
                graduate school'' and all that follows through the 
                period and inserting ``enrolled in the qualified 
                programs or institutions listed in paragraph (1).'';
                    (C) in subparagraph (D)--
                            (i) by striking ``students'' and inserting 
                        ``Black American students or minority 
                        students''; and
                            (ii) by striking ``institution'' and 
                        inserting ``institution or program''; and
                    (D) by striking subparagraph (E) and inserting the 
                following:
                    ``(E) The percentage that the total number of Black 
                American students and minority students who receive 
                their first professional, master's, or doctoral degrees 
                from the institution or program in the academic year 
                preceding the academic year for which the determination 
                is made, represents of the total number of Black 
                American students and minority students in the United 
                States who receive their first professional, master's, 
                or doctoral degrees in the professions or disciplines 
                related to the course of study at such institution or 
                program, respectively, in the preceding academic 
                year.''; and
            (4) in subsection (g), by striking ``1998'' and inserting 
        ``2006''.

SEC. 310. AUTHORIZATION OF APPROPRIATIONS.

    Subsection (a) of section 399 (20 U.S.C. 1068h) is amended to read 
as follows:
    ``(a) Authorizations.--
            ``(1) Part a.--(A) There are authorized to be appropriated 
        to carry out part A (other than section 316) such sums as may 
        be necessary for fiscal year 2006 and each of the 5 succeeding 
        fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 316 such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years.
            ``(C) There are authorized to be appropriated to carry out 
        section 317 such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years.
            ``(D) There are authorized to be appropriated to carry out 
        section 318 such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years.
            ``(2) Part b.--(A) There are authorized to be appropriated 
        to carry out part B (other than section 326) such sums as may 
        be necessary for fiscal year 2006 and each of the 5 succeeding 
        fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 326 such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years.
            ``(3) Part c.--There are authorized to be appropriated to 
        carry out part C such sums as may be necessary for fiscal year 
        2006 and each of the 5 succeeding fiscal years.
            ``(4) Part d.--(A) There are authorized to be appropriated 
        to carry out part D (other than section 345(7), but including 
        section 347) such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years.
            ``(B) There are authorized to be appropriated to carry out 
        section 345(7) such sums as may be necessary for fiscal year 
        2006 and each of the 5 succeeding fiscal years.
            ``(5) Part e.--There are authorized to be appropriated to 
        carry out part E such sums as may be necessary for fiscal year 
        2006 and each of the 5 succeeding fiscal years.''.

SEC. 311. TECHNICAL CORRECTIONS.

    Title III (20 U.S.C. 1051 et seq.) is further amended--
            (1) in section 342(5)(C) (20 U.S.C. 1066a(5)(C)), by 
        striking ``,,'' and inserting ``,'';
            (2) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
        ``Sale of Qualified Bonds.--'' before ``Notwithstanding'';
            (3) in the matter preceding clause (i) of section 365(9)(A) 
        (20 U.S.C. 1067k(9)(A)), by striking ``support'' and inserting 
        ``supports'';
            (4) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
        striking ``subparagraph (E)'' and inserting ``subparagraph 
        (D)'';
            (5) in the matter preceding subparagraph (A) of section 
        392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking ``eligible 
        institutions under part A institutions'' and inserting 
        ``eligible institutions under part A''; and
            (6) in the matter preceding paragraph (1) of section 396 
        (20 U.S.C. 1068e), by striking ``360'' and inserting ``399''.

                      TITLE IV--STUDENT ASSISTANCE

  PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER 
                               EDUCATION

SEC. 401. FEDERAL PELL GRANTS.

    Section 401 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a)(1)--
                    (A) in the first sentence, by striking ``2004'' and 
                inserting ``2012''; and
                    (B) in the second sentence, by striking ``,,'' and 
                inserting ``,'';
            (2) in subsection (b)--
                    (A) by striking paragraph (2)(A) and inserting the 
                following:
    ``(2)(A) the amount of the Federal Pell Grant for a student 
eligible under this part shall be--
    ``(i) $5,100 for academic year 2006-2007;
    ``(ii) $5,400 for academic year 2007-2008;
    ``(iii) $5,700 for academic year 2008-2009;
    ``(iv) $6,000 for academic year 2009-2010; and
    ``(v) $6,300 for academic year 2010-2011,
less an amount equal to the amount determined to be the expected family 
contribution with respect to that student for that year.'';
                    (B) by striking paragraph (3);
                    (C) by redesignating paragraphs (4) through (8) as 
                paragraphs (3) through (7), respectively;
                    (D) in paragraph (4) (as redesignated by 
                subparagraph (C)), by striking ``$400, except'' and all 
                that follows through the period and inserting ``10 
                percent of the maximum basic grant level specified in 
                the appropriate Appropriation Act for such academic 
                year.''; and
                    (E) by striking paragraph (5) (as redesignated by 
                subparagraph (C)) and inserting the following:
    ``(5) In the case of a student who is enrolled, on at least a half-
time basis and for a period of more than 1 academic year in a 2-year or 
4-year program of instruction for which an institution of higher 
education awards an associate or baccalaureate degree, the Secretary 
shall allow such student to receive not more than 2 Federal Pell Grants 
during a single award year to permit such student to accelerate the 
student's progress toward a degree by attending additional sessions. In 
the case of a student receiving more than 1 Federal Pell Grant in a 
single award year, the total amount of Federal Pell Grants awarded to 
such student for the award year may exceed the basic grant level 
specified in the appropriate Appropriation Act for such award year.''; 
and
            (3) in subsection (c), by adding at the end the following:
    ``(5) The period of time during which a student may receive Federal 
Pell Grants shall not exceed 18 semesters, or an equivalent period of 
time as determined by the Secretary pursuant to regulations, which 
period shall--
            ``(A) be determined without regard to whether the student 
        is enrolled on a full-time basis during any portion of the 
        period of time; and
            ``(B) include any period of time for which the student 
        received a Federal Pell Grant prior to the date of enactment of 
        the Higher Education Amendments of 2005.''.

SEC. 402. FEDERAL TRIO PROGRAMS.

    (a) Program Authority; Authorization of Appropriations.--Section 
402A (20 U.S.C. 1070a-11) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``4'' and inserting ``5'';
                            (ii) by striking subparagraph (A); and
                            (iii) by redesignating subparagraphs (B) 
                        and (C) as subparagraphs (A) and (B), 
                        respectively; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Minimum grants.--Unless the institution or agency 
        requests a smaller amount, an individual grant authorized under 
        this chapter shall be awarded in an amount that is not less 
        than $200,000, except that an individual grant authorized under 
        section 402G shall be awarded in an amount that is not less 
        than $170,000.'';
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``service 
                delivery'' and inserting ``high quality service 
                delivery, as determined under subsection (f),'';
                    (B) in paragraph (3)(B), by striking ``is not 
                required to'' and inserting ``shall not''; and
                    (C) in paragraph (5), by striking ``campuses'' and 
                inserting ``different campuses'';
            (3) in subsection (e), by striking ``(g)(2)'' each place 
        the term occurs and inserting ``(h)(4)'';
            (4) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (5) by inserting after subsection (e) the following:
    ``(f) Outcome Criteria.--
            ``(1) In general.--The Secretary, by regulation, shall 
        establish outcome criteria for measuring, annually and for 
        longer periods, the quality and effectiveness of programs 
        authorized under this chapter.
            ``(2) Use for prior experience determination.--The outcome 
        criteria under paragraph (1) shall be used to evaluate the 
        programs provided by a recipient of a grant under this chapter, 
        and the Secretary shall determine an eligible entity's prior 
        experience of high quality service delivery, as required in 
        subsection (c)(2), based on the outcome criteria.
            ``(3) Consideration of relevant data.--The outcome criteria 
        under this subsection shall take into account data pertaining 
        to secondary school completion, postsecondary education 
        enrollment, and postsecondary education completion for low-
        income students, first generation college students, and 
        individuals with disabilities, in the schools and institutions 
        of higher education served by the program to be evaluated.
            ``(4) Contents of outcome criteria.--The outcome criteria 
        shall include the following:
                    ``(A) For programs authorized under section 402B, 
                whether the eligible entity met or exceeded the 
                entity's objectives established in the entity's 
                application for such program regarding--
                            ``(i) the delivery of service to a total 
                        number of students served by the program;
                            ``(ii) the continued secondary school 
                        enrollment of such students;
                            ``(iii) the graduation of such students 
                        from secondary school; and
                            ``(iv) the enrollment of such students in 
                        an institution of higher education.
                    ``(B) For programs authorized under section 402C, 
                whether the eligible entity met or exceeded its 
                objectives for such program regarding--
                            ``(i) the delivery of service to a total 
                        number of students served by the program, as 
                        agreed upon by the entity and the Secretary for 
                        the period;
                            ``(ii) such students' school performance, 
                        as measured by the grade point average, or its 
                        equivalent;
                            ``(iii) such students' academic 
                        performance, as measured by standardized tests, 
                        including tests required by the students' 
                        State;
                            ``(iv) the retention in, and graduation 
                        from, secondary school of such students; and
                            ``(v) the enrollment of such students in an 
                        institution of higher education.
                    ``(C) For programs authorized under section 402D--
                            ``(i) whether the eligible entity met or 
                        exceeded the entity's objectives regarding the 
                        retention in postsecondary education of the 
                        students served by the program;
                            ``(ii)(I) in the case of an entity that is 
                        an institution of higher education offering a 
                        baccalaureate degree, the extent to which the 
                        entity met or exceeded the entity's objectives 
                        regarding such students' completion of the 
                        degree programs in which such students were 
                        enrolled; or
                            ``(II) in the case of an entity that is an 
                        institution of higher education that does not 
                        offer a baccalaureate degree, the extent to 
                        which the entity met or exceeded the entity's 
                        objectives regarding--
                                    ``(aa) the completion of a degree 
                                or certificate by such students; and
                                    ``(bb) the transfer of such 
                                students to institutions of higher 
                                education that offer baccalaureate 
                                degrees;
                            ``(iii) whether the entity met or exceeded 
                        the entity's objectives regarding the delivery 
                        of service to a total number of students, as 
                        agreed upon by the entity and the Secretary for 
                        the period; and
                            ``(iv) whether the applicant met or 
                        exceeded the entity's objectives regarding such 
                        students remaining in good academic standing.
                    ``(D) For programs authorized under section 402E, 
                whether the entity met or exceeded the entity's 
                objectives for such program regarding--
                            ``(i) the delivery of service to a total 
                        number of students, as agreed upon by the 
                        entity and the Secretary for the period;
                            ``(ii) the provision of appropriate 
                        scholarly and research activities for the 
                        students served by the program;
                            ``(iii) the acceptance and enrollment of 
                        such students in graduate programs; and
                            ``(iv) the attainment of doctoral degrees 
                        by former program participants.
                    ``(E) For programs authorized under section 402F, 
                whether the entity met or exceeded the entity's 
                objectives for such program regarding--
                            ``(i) the enrollment of students without a 
                        secondary school diploma or its recognized 
                        equivalent, who were served by the program, in 
                        programs leading to such diploma or equivalent;
                            ``(ii) the enrollment of secondary school 
                        graduates who were served by the program in 
                        programs of postsecondary education;
                            ``(iii) the delivery of service to a total 
                        number of students, as agreed upon by the 
                        entity and the Secretary for the period; and
                            ``(iv) the provision of assistance to 
                        students served by the program in completing 
                        financial aid applications and college 
                        admission applications.'';
            (6) in subsection (g) (as redesignated by paragraph (4))--
                    (A) in the first sentence, by striking 
                ``$700,000,000 for fiscal year 1999'' and all that 
                follows through the period and inserting ``such sums as 
                may be necessary for fiscal year 2006 and each of the 5 
                succeeding fiscal years.''; and
                    (B) by striking the fourth sentence; and
            (7) in subsection (h) (as redesignated by paragraph (4))--
                    (A) by redesignating paragraphs (1) through (4) as 
                paragraphs (3) through (6), respectively;
                    (B) by inserting before paragraph (3) (as 
                redesignated by subparagraph (A)) the following:
            ``(1) Different campus.--The term `different campus' means 
        a site of an institution of higher education 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 eligible entity desires to serve through an application for 
        a grant under this chapter, that--
                    ``(A) is separate and distinct from any other 
                population that the entity has applied for a grant 
                under this chapter to serve; or
                    ``(B) while sharing some of the same needs as 
                another population that the eligible entity has applied 
                for a grant under this chapter to serve, has distinct 
                needs for specialized services.'';
                    (C) in paragraph (5) (as redesignated by 
                subparagraph (A))--
                            (i) in subparagraph (A), by striking ``or'' 
                        after the semicolon;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                    ``(C) was a member of a reserve component of the 
                Armed Forces called to active duty for a period of more 
                than 180 days.''; and
                    (D) in paragraph (6), by striking ``subparagraph 
                (A) or (B) of paragraph (3)'' and inserting 
                ``subparagraph (A), (B), or (C) of paragraph (5)''.
    (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``to identify 
                qualified youths with potential for education at the 
                postsecondary level and to encourage such youths'' and 
                inserting ``to encourage eligible youths'';
                    (B) in paragraph (2), by inserting ``, and 
                facilitate the application for,'' after ``the 
                availability of''; and
                    (C) in paragraph (3), by striking ``, but who have 
                the ability to complete such programs, to reenter'' and 
                inserting ``to enter or reenter, and complete'';
            (2) by redesignating subsection (c) as subsection (d);
            (3) by striking subsection (b) and inserting the following:
    ``(b) Required Services.--Any project assisted under this section 
shall provide--
            ``(1) academic tutoring, or connections to high quality 
        academic tutoring services, to enable students to complete 
        secondary or postsecondary courses, which may include 
        instruction in reading, writing, study skills, mathematics, 
        science, and other subjects;
            ``(2) advice and assistance in secondary course selection 
        and, if applicable, initial postsecondary course selection;
            ``(3) assistance in preparing for college entrance 
        examinations and completing college admission applications;
            ``(4)(A) information on both the full range of Federal 
        student financial aid programs (including Federal Pell Grant 
        awards and loan forgiveness) and resources for locating public 
        and private scholarships; and
            ``(B) assistance in completing financial aid applications, 
        including the Free Application for Federal Student Aid 
        described in section 483(a);
            ``(5) guidance on and assistance in--
                    ``(A) secondary school reentry;
                    ``(B) alternative education programs for secondary 
                school dropouts that lead to the receipt of a regular 
                secondary school diploma;
                    ``(C) entry into general educational development 
                (GED) programs; or
                    ``(D) postsecondary education; and
            ``(6) education or counseling services designed to improve 
        the financial literacy and economic literacy of students or 
        their parents, including financial planning for postsecondary 
        education.
    ``(c) Permissible Services.--Any project assisted under this 
section may provide services such as--
            ``(1) personal and career counseling or activities;
            ``(2) information and activities designed to acquaint 
        youths with the range of career options available to the 
        youths;
            ``(3) exposure to the campuses of institutions of higher 
        education, as well as cultural events, academic programs, and 
        other sites or activities not usually available to 
        disadvantaged youth;
            ``(4) workshops and counseling for families of students 
        served;
            ``(5) mentoring programs involving elementary or secondary 
        school teachers or counselors, faculty members at institutions 
        of higher education, students, or any combination of such 
        persons; and
            ``(6) programs and activities as described in subsection 
        (b) or paragraphs (1) through (5) of this subsection that are 
        specially designed for students who are limited English 
        proficient, students with disabilities, students who are 
        homeless children and youths (as such term is defined in 
        section 725 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11434a)), or students who are in foster care or are 
        aging out of the foster care system.''; and
            (4) in the matter preceding paragraph (1) of subsection (d) 
        (as redesignated by paragraph (2)), by striking ``talent search 
        projects under this chapter'' and inserting ``projects under 
        this section''.
    (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Required Services.--Any project assisted under this section 
shall provide--
            ``(1) academic tutoring to enable students to complete 
        secondary or postsecondary courses, which may include 
        instruction in reading, writing, study skills, mathematics, 
        science, and other subjects;
            ``(2) advice and assistance in secondary and postsecondary 
        course selection;
            ``(3) assistance in preparing for college entrance 
        examinations and completing college admission applications;
            ``(4)(A) information on both the full range of Federal 
        student financial aid programs (including Federal Pell Grant 
        awards and loan forgiveness) and resources for locating public 
        and private scholarships; and
            ``(B) assistance in completing financial aid applications, 
        including the Free Application for Federal Student Aid 
        described in section 483(a);
            ``(5) guidance on and assistance in--
                    ``(A) secondary school reentry;
                    ``(B) alternative education programs for secondary 
                school dropouts that lead to the receipt of a regular 
                secondary school diploma;
                    ``(C) entry into general educational development 
                (GED) programs; or
                    ``(D) postsecondary education; and
            ``(6) education or counseling services designed to improve 
        the financial literacy and economic literacy of students, 
        including financial planning for postsecondary education.'';
            (2) in subsection (c)--
                    (A) in the subsection heading, by striking 
                ``Required Services'' and inserting ``Additional 
                Required Services for Multiple-Year Grant Recipients''; 
                and
                    (B) by striking ``upward bound project assisted 
                under this chapter'' and inserting ``project assisted 
                under this section'';
            (3) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively;
            (4) by inserting after subsection (c) the following:
    ``(d) Permissible Services.--Any project assisted under this 
section may provide such services as--
            ``(1) exposure to cultural events, academic programs, and 
        other activities not usually available to disadvantaged youth;
            ``(2) information, activities and instruction designed to 
        acquaint youths participating in the project with the range of 
        career options available to the youths;
            ``(3) on-campus residential programs;
            ``(4) mentoring programs involving elementary school or 
        secondary school teachers or counselors, faculty members at 
        institutions of higher education, students, or any combination 
        of such persons;
            ``(5) work-study positions where youth participating in the 
        project are exposed to careers requiring a postsecondary 
        degree;
            ``(6) special services to enable veterans to make the 
        transition to postsecondary education; and
            ``(7) programs and activities as described in subsection 
        (b), subsection (c), or paragraphs (1) through (6) of this 
        subsection that are specially designed for students who are 
        limited English proficient, students with disabilities, 
        students who are homeless children and youths (as such term is 
        defined in section 725 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11434a)), or students who are in 
        foster care or are aging out of the foster care system.'';
            (5) in the matter preceding paragraph (1) of subsection (e) 
        (as redesignated by paragraph (3)), by striking ``upward bound 
        projects under this chapter'' and inserting ``projects under 
        this section''; and
            (6) in subsection (f) (as redesignated by paragraph (3))--
                    (A) by striking ``during June, July, and August'' 
                each place the term occurs and inserting ``during the 
                summer school recess, for a period not to exceed 3 
                months''; and
                    (B) by striking ``(b)(10)'' and inserting 
                ``(d)(5)''.
    (d) Student Support Services.--Section 402D (20 U.S.C. 1070a-14) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) to foster an institutional climate supportive of the 
        success of low-income and first generation college students, 
        students with disabilities, students who are limited English 
        proficient, students who are homeless children and youths (as 
        such term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)), and students who 
        are in foster care or are aging out of the foster care 
        system.''; and
                    (C) by adding at the end the following:
            ``(4) to improve the financial literacy and economic 
        literacy of students, including--
                    ``(A) basic personal income, household money 
                management, and financial planning skills; and
                    ``(B) basic economic decisionmaking skills.'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (d) and (e);
            (3) by striking subsection (b) and inserting the following:
    ``(b) Required Services.--A project assisted under this section 
shall provide--
            ``(1) academic tutoring to enable students to complete 
        postsecondary courses, which may include instruction in 
        reading, writing, study skills, mathematics, science, and other 
        subjects;
            ``(2) advice and assistance in postsecondary course 
        selection;
            ``(3)(A) information on both the full range of Federal 
        student financial aid programs (including Federal Pell Grant 
        awards and loan forgiveness) and resources for locating public 
        and private scholarships; and
            ``(B) assistance in completing financial aid applications, 
        including the Free Application for Federal Student Aid 
        described in section 483(a);
            ``(4) education or counseling services designed to improve 
        the financial literacy and economic literacy of students, 
        including financial planning for postsecondary education;
            ``(5) activities designed to assist students participating 
        in the project in securing college admission and financial 
        assistance for enrollment in graduate and professional 
        programs; and
            ``(6) activities designed to assist students enrolled in 2-
        year institutions of higher education in securing admission and 
        financial assistance for enrollment in a 4-year program of 
        postsecondary education.
    ``(c) Permissible Services.--A project assisted under this section 
may provide services such as--
            ``(1) consistent, individualized personal, career, and 
        academic counseling, provided by assigned counselors;
            ``(2) information, activities, and instruction designed to 
        acquaint youths participating in the project with the range of 
        career options available to the students;
            ``(3) exposure to cultural events and academic programs not 
        usually available to disadvantaged students;
            ``(4) activities designed to acquaint students 
        participating in the project with the range of career options 
        available to the students;
            ``(5) mentoring programs involving faculty or upper class 
        students, or a combination thereof;
            ``(6) securing temporary housing during breaks in the 
        academic year for students who are homeless children and youths 
        (as such term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)) or were formerly 
        homeless children and youths and students who are in foster 
        care or are aging out of the foster care system; and
            ``(7) programs and activities as described in subsection 
        (b) or paragraphs (1) through (5) of this subsection that are 
        specially designed for students who are limited English 
        proficient, students with disabilities, students who are 
        homeless children and youths (as such term is defined in 
        section 725 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11434a)) or were formerly homeless children and youths, 
        or students who are in foster care or are aging out of the 
        foster care system.'';
            (4) in subsection (d)(1) (as redesignated by paragraph 
        (2)), by striking ``subsection (b)'' and inserting ``subsection 
        (c)''; and
            (5) in the matter preceding paragraph (1) of subsection (e) 
        (as redesignated by paragraph (2)), by striking ``student 
        support services projects under this chapter'' and inserting 
        ``projects under this section''.
    (e) Postbaccalaureate Achievement Program Authority.--Section 402E 
(20 U.S.C. 1070a-15) is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by inserting 
                ``Required'' before ``Services'';
                    (B) in the matter preceding paragraph (1), by 
                striking ``A postbaccalaureate achievement project 
                assisted under this section may provide services such 
                as--'' and inserting ``A project assisted under this 
                section shall provide--'';
                    (C) in paragraph (5), by inserting ``and'' after 
                the semicolon;
                    (D) in paragraph (6), by striking the semicolon and 
                inserting a period; and
                    (E) by striking paragraphs (7) and (8);
            (2) by redesignating subsections (c) through (f) as 
        subsections (d) through (g), respectively;
            (3) by inserting after subsection (b) the following:
    ``(c) Permissible Services.--A project assisted under this section 
may provide services such as--
            ``(1) education or counseling services designed to improve 
        the financial literacy and economic literacy of students or 
        their parents, including financial planning for postsecondary 
        education;
            ``(2) mentoring programs involving faculty members at 
        institutions of higher education, students, or any combination 
        of such persons; and
            ``(3) exposure to cultural events and academic programs not 
        usually available to disadvantaged students.'';
            (4) in the matter preceding paragraph (1) of subsection (d) 
        (as redesignated by paragraph (2)), by striking 
        ``postbaccalaureate achievement'';
            (5) in the matter preceding paragraph (1) of subsection (f) 
        (as redesignated by paragraph (2)), by striking 
        ``postbaccalaureate achievement project'' and inserting 
        ``project under this section''; and
            (6) in subsection (g) (as redesignated by paragraph (2))--
                    (A) by striking ``402A(f)'' and inserting 
                ``402A(g)''; and
                    (B) by striking ``1993 through 1997'' and inserting 
                ``2006 through 2010''.
    (f) Educational Opportunity Centers.--Section 402F (20 U.S.C. 
1070a-16) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) to improve the financial literacy and economic 
        literacy of students, including--
                    ``(A) basic personal income, household money 
                management, and financial planning skills; and
                    ``(B) basic economic decisionmaking skills.''; and
            (2) in subsection (b)--
                    (A) by redesignating paragraphs (5) through (10) as 
                paragraphs (6) through (11), respectively;
                    (B) by inserting after paragraph (4) the following:
            ``(5) education or counseling services designed to improve 
        the financial literacy and economic literacy of students or 
        their parents;'';
                    (C) by striking paragraph (7) (as redesignated by 
                subparagraph (A)) and inserting the following:
            ``(7) individualized personal, career, and academic 
        counseling;''; and
                    (D) by striking paragraph (11) (as redesignated by 
                subparagraph (A)) and inserting the following:
            ``(11) programs and activities as described in paragraphs 
        (1) through (10) that are specially designed for students who 
        are limited English proficient, students with disabilities, or 
        students who are homeless children and youths (as such term is 
        defined in section 725 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11434a)), or programs and activities 
        for students who are in foster care or are aging out of the 
        foster care system.''.
    (g) Staff Development Activities.--Section 402G(b)(3) (20 U.S.C. 
1070a-17(b)(3)) is amended by inserting ``, including strategies for 
recruiting and serving students who are homeless children and youths 
(as such term is defined in section 725 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11434a)) and students who are in foster care 
or are aging out of the foster care system'' before the period at the 
end.
    (h) Reports, Evaluations, and Grants for Project Improvement and 
Dissemination.--Section 402H (20 U.S.C. 1070a-18) is amended--
            (1) by striking the section heading and inserting 
        ``reports, evaluations, and grants for project improvement and 
        dissemination.'';
            (2) by redesignating subsections (a) through (c) as 
        subsections (b) through (d), respectively; and
            (3) by inserting before subsection (b) (as redesignated by 
        paragraph (2)) the following:
    ``(a) Report to Congress.--At least once every 2-year period, the 
Secretary shall prepare and submit to Congress a report on the outcomes 
achieved by the programs authorized under this chapter. Such report 
shall include a statement for the preceding fiscal year specifying--
            ``(1) the number of grants awarded during each fiscal year, 
        and the number of individuals served by the programs carried 
        out under such grants;
            ``(2) the number of entities that received grants during 
        the fiscal year, including the number of entities that--
                    ``(A) received a grant to carry out a program under 
                this chapter for the fiscal year; and
                    ``(B) had not received funding for that particular 
                program during the previous grant cycle;
            ``(3) a comparison of the number and percentage of grant 
        awards made to entities described in paragraph (2), with the 
        number of such entities funded through discretionary grant 
        competitions conducted by the Secretary under this chapter in 
        the 3 grant cycles preceding the fiscal year;
            ``(4) information on the number of individuals served in 
        each program authorized under this chapter; and
            ``(5) information on the outcomes achieved by each program 
        authorized under this chapter, including the outcome criteria 
        described in section 402A(f) for each program.''.

SEC. 403. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE 
              PROGRAMS.

    (a) Early Intervention and College Awareness Program Authorized.--
Section 404A (20 U.S.C. 1070a-21) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Program Authorized.--The Secretary is authorized, in 
accordance with the requirements of this chapter, to establish a 
program that encourages eligible entities to provide support to 
eligible low-income students to assist the students in obtaining a 
secondary school diploma (or its recognized equivalent) and to prepare 
for and succeed in postsecondary education, by providing--
            ``(1) financial assistance, academic support, additional 
        counseling, mentoring, outreach, and supportive services to 
        middle school and secondary school students to reduce--
                    ``(A) the risk of such students dropping out of 
                school; or
                    ``(B) the need for remedial education for such 
                students at the postsecondary level; and
            ``(2) information to students and their parents about the 
        advantages of obtaining a postsecondary education and the 
        college financing options for the students and their 
        parents.'';
            (2) by striking subsection (b)(2)(A) and inserting the 
        following:
                    ``(A) give priority to eligible entities that have 
                a prior, demonstrated commitment to early intervention 
                leading to college access through collaboration and 
                replication of successful strategies;''; and
            (3) by striking subsection (c)(2) and inserting the 
        following:
            ``(2) a partnership--
                    ``(A) consisting of--
                            ``(i) 1 or more local educational agencies; 
                        and
                            ``(ii) 1 or more degree granting 
                        institutions of higher education; and
                    ``(B) which may include not less than 2 other 
                community organizations or entities, such as 
                businesses, professional organizations, State agencies, 
                institutions or agencies sponsoring programs authorized 
                under subpart 4, or other public or private agencies or 
                organizations.''.
    (b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is amended--
            (1) by striking subsection (a) and inserting the 
        following:--
    ``(a) Funding Rules.--
            ``(1) Distribution.--In awarding grants from the amount 
        appropriated under section 404G for a fiscal year, the 
        Secretary shall take into consideration--
                    ``(A) the geographic distribution of such awards; 
                and
                    ``(B) the distribution of such awards between urban 
                and rural applicants.
            ``(2) Special rule.--The Secretary shall annually 
        reevaluate the distribution of funds described in paragraph (1) 
        based on number, quality, and promise of the applications.'';
            (2) by striking subsections (b), (e), and (f);
            (3) by redesignating subsections (c), (d), and (g) as 
        subsections (b), (c), and (d), respectively; and
            (4) by adding at the end the following:
    ``(e) Supplement, Not Supplant.--Grant funds awarded under this 
chapter shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities assisted under this chapter.''.
    (c) Application.--Section 404C (20 U.S.C. 1070a-23) is amended--
            (1) in the section heading, by striking ``eligible entity 
        plans'' and inserting ``applications'';
            (2) in subsection (a)--
                    (A) in the subsection heading, by striking ``Plan'' 
                and inserting ``Application'';
                    (B) in paragraph (1)--
                            (i) by striking ``a plan'' and inserting 
                        ``an application''; and
                            (ii) by striking the second sentence; and
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall be in such form, contain or be accompanied 
        by such information or assurances, and be submitted at such 
        time as the Secretary may require. Each such application shall, 
        at a minimum--
                    ``(A) describe the activities for which assistance 
                under this chapter is sought, including how the 
                eligible entity will carry out the required activities 
                described in section 404D(a);
                    ``(B) describe how the eligible agency will meet 
                the requirements of section 404E;
                    ``(C) provide assurances that adequate 
                administrative and support staff will be responsible 
                for coordinating the activities described in section 
                404D;
                    ``(D) ensure that activities assisted under this 
                chapter will not displace an employee or eliminate a 
                position at a school assisted under this chapter, 
                including a partial displacement such as a reduction in 
                hours, wages or employment benefits;
                    ``(E) describe, in the case of an eligible entity 
                described in section 404A(c)(2), how the eligible 
                entity will define the cohorts of the students served 
                by the eligible entity pursuant to section 404B(d), and 
                how the eligible entity will serve the cohort through 
                grade 12, including--
                            ``(i) how vacancies in the program under 
                        this chapter will be filled; and
                            ``(ii) how the eligible entity will serve 
                        students attending different secondary schools;
                    ``(F) describe how the eligible entity will 
                coordinate programs with other existing Federal, State, 
                or local programs to avoid duplication and maximize the 
                number of students served;
                    ``(G) provide such additional assurances as the 
                Secretary determines necessary to ensure compliance 
                with the requirements of this chapter; and
                    ``(H) provide information about the activities that 
                will be carried out by the eligible entity to support 
                systemic changes from which future cohorts of students 
                will benefit.'';
            (3) in the matter preceding subparagraph (A) of subsection 
        (b)(1)--
                    (A) by striking ``a plan'' and inserting ``an 
                application''; and
                    (B) by striking ``such plan'' and inserting ``such 
                application''; and
            (4) in subsection (c)(1), by striking the semicolon at the 
        end and inserting ``including--
                    ``(A) the amount contributed to a student 
                scholarship fund established under section 404E; and
                    ``(B) the amount of the costs of administering the 
                scholarship program under section 404E;''.
    (d) Activities.--Section 404D (20 U.S.C. 1070a-24) is amended to 
read as follows:

``SEC. 404D. ACTIVITIES.

    ``(a) Required Activities.--Each eligible entity receiving a grant 
under this chapter shall carry out the following:
            ``(1) Provide information regarding financial aid for 
        postsecondary education to participating students in the cohort 
        described in subsection 404B(d)(1)(A).
            ``(2) Encourage student enrollment in rigorous and 
        challenging curricula and coursework, in order to reduce the 
        need for remedial coursework at the postsecondary level.
            ``(3) Support activities designed to improve the number of 
        participating students who--
                    ``(A) obtain a secondary school diploma; and
                    ``(B) complete applications for and enroll in a 
                program of postsecondary education.
            ``(4) In the case of an eligible entity described in 
        section 404A(c)(1), provide for the scholarships described in 
        section 404E.
    ``(b) Optional Activities for States and Partnerships.--An eligible 
entity that receives a grant under this chapter may use grant funds to 
carry out 1 or more of the following activities:
            ``(1) Providing tutoring and supporting mentors, including 
        adults or former participants of a program under this chapter, 
        for eligible students.
            ``(2) Conducting outreach activities to recruit priority 
        students described in subsection (d) to participate in program 
        activities.
            ``(3) Providing supportive services to eligible students.
            ``(4) Supporting the development or implementation of 
        rigorous academic curricula, which may include college 
        preparatory, Advanced Placement, or International Baccalaureate 
        programs, and providing participating students access to 
        rigorous core courses that reflect challenging State academic 
        standards.
            ``(5) Supporting dual or concurrent enrollment programs 
        between the secondary school and institution of higher 
        education partners of an eligible entity described in section 
        404A(c)(2), and other activities that support participating 
        students in--
                    ``(A) achieving challenging academic standards;
                    ``(B) successfully applying for postsecondary 
                education;
                    ``(C) successfully applying for student financial 
                aid; and
                    ``(D) developing graduation and career plans.
            ``(6) Providing support for scholarships described in 
        section 404E.
            ``(7) Introducing eligible students to institutions of 
        higher education, through trips and school-based sessions.
            ``(8) Providing an intensive extended school day, school 
        year, or summer program that offers--
                    ``(A) additional academic classes; or
                    ``(B) assistance with college admission 
                applications.
            ``(9) Providing other activities designed to ensure 
        secondary school completion and postsecondary education 
        enrollment of at-risk children, such as--
                    ``(A) the identification of at-risk children;
                    ``(B) after-school and summer tutoring;
                    ``(C) assistance to at-risk children in obtaining 
                summer jobs;
                    ``(D) academic counseling;
                    ``(E) volunteer and parent involvement;
                    ``(F) encouraging former or current participants of 
                a program under this chapter to serve as peer 
                counselors;
                    ``(G) skills assessments;
                    ``(H) personal counseling;
                    ``(I) family counseling and home visits;
                    ``(J) staff development; and
                    ``(K) programs and activities described in this 
                subsection that are specially designed for students who 
                are limited English proficient.
            ``(10) Enabling eligible students to enroll in Advanced 
        Placement or International Baccalaureate courses, or college 
        entrance examination preparation courses.
            ``(11) Providing services to eligible students in the 
        participating cohort described in section 404B(d)(1)(A), 
        through the first year of attendance at an institution of 
        higher education.
    ``(c) Additional Optional Activities for States.--In addition to 
the required activities described in subsection (a) and the optional 
activities described in subsection (b), an eligible entity described in 
section 404A(c)(1) receiving funds under this chapter may use grant 
funds to carry out 1 or more of the following activities:
            ``(1) Providing technical assistance to--
                    ``(A) middle schools or secondary schools that are 
                located within the State; or
                    ``(B) partnerships described in section 404A(c)(2) 
                that are located within the State.
            ``(2) Providing professional development opportunities to 
        individuals working with eligible cohorts of students described 
        in section 404B(d)(1)(A).
            ``(3) Providing strategies and activities that align 
        efforts in the State to prepare eligible students for attending 
        and succeeding in postsecondary education, which may include 
        the development of graduation and career plans.
            ``(4) Disseminating information on the use of 
        scientifically based research and best practices to improve 
        services for eligible students.
            ``(5)(A) Disseminating information on effective coursework 
        and support services that assist students in obtaining the 
        goals described in subparagraph (B)(ii).
            ``(B) Identifying and disseminating information on best 
        practices with respect to--
                    ``(i) increasing parental involvement; and
                    ``(ii) preparing students, including students with 
                disabilities and students who are limited English 
                proficient, to succeed academically in, and prepare 
                financially for, postsecondary education.
            ``(6) Working to align State academic standards and 
        curricula with the expectations of postsecondary institutions 
        and employers.
            ``(7) Developing alternatives to traditional secondary 
        school that give students a head start on attaining a 
        recognized postsecondary credential (including an industry 
        certificate, an apprenticeship, or an associate's or a 
        bachelor's degree), including school designs that give students 
        early exposure to college-level courses and experiences and 
        allow students to earn transferable college credits or an 
        associate's degree at the same time as a secondary school 
        diploma.
            ``(8) Creating community college programs for drop-outs 
        that are personalized drop-out recovery programs that allow 
        drop-outs to complete a regular secondary school diploma and 
        begin college-level work.
    ``(d) Priority Students.--For eligible entities not using a cohort 
approach, the eligible entity shall treat as priority students any 
student in middle or secondary school who is eligible--
            ``(1) to be counted under section 1124(c) of the Elementary 
        and Secondary Education Act of 1965;
            ``(2) for free or reduced price meals under the Richard B. 
        Russell National School Lunch Act;
            ``(3) for assistance under a State program funded under 
        part A or E of title IV of the Social Security Act (42 U.S.C. 
        601 et seq., 670 et seq.); or
            ``(4) for assistance under subtitle B of title VII of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et 
        seq.).
    ``(e) Allowable Providers.--In the case of eligible entities 
described in section 404A(c)(1), the activities required by this 
section may be provided by service providers such as community-based 
organizations, schools, institutions of higher education, public and 
private agencies, nonprofit and philanthropic organizations, 
businesses, institutions and agencies sponsoring programs authorized 
under subpart 4, and other organizations the State determines 
appropriate.''.
    (e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-25) is 
amended--
            (1) by striking subsections (e) and (f);
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (d), (f), and (g), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Limitation.--
            ``(1) In general.--Subject to paragraph (2), each eligible 
        entity described in section 404A(c)(1) that receives a grant 
        under this chapter shall use not less than 25 percent and not 
        more than 50 percent of the grant funds for activities 
        described in section 404D(c), with the remainder of such funds 
        to be used for a scholarship program under this section.
            ``(2) Exception.--Notwithstanding paragraph (1), the 
        Secretary may allow an eligible entity to use more than 50 
        percent of grant funds received under this chapter for such 
        activities, if the eligible entity demonstrates that the 
        eligible entity has another means of providing the students 
        with the financial assistance described in this section and 
        describes such means in the application submitted under section 
        404C.
    ``(c) Notification of Eligibility.--Each eligible entity providing 
scholarships under this section shall provide information on the 
eligibility requirements for the scholarships to all participating 
students upon the students' entry into the programs assisted under this 
chapter.'';
            (4) in subsection (d) (as redesignated by paragraph (2)), 
        by striking ``the lesser of'' and all that follows through the 
        period at the end of paragraph (2) and inserting ``the minimum 
        Federal Pell Grant award under section 401 for such award 
        year.'';
            (5) by inserting after subsection (d) (as redesignated by 
        paragraph (2) and amended by paragraph (4)) the following:
    ``(e) Portability of Assistance.--
            ``(1) In general.--Each eligible entity described in 
        section 404A(c)(1) that receives a grant under this chapter 
        shall create or organize a trust for each cohort described in 
        section 404B(d)(1)(A) for which the grant is sought in the 
        application submitted by the entity, which trust shall be an 
        amount that is not less than the minimum scholarship amount 
        described in subsection (d), multiplied by the number of 
        students participating in the cohort.
            ``(2) Requirement for portability.--Funds contributed to 
        the trust for a cohort shall be available to a student in the 
        cohort when the student has--
                    ``(A) completed a secondary school diploma, its 
                recognized equivalent, or other recognized alternative 
                standard for individuals with disabilities; and
                    ``(B) enrolled in an institution of higher 
                education.
            ``(3) Qualified educational expenses.--Funds available to 
        an eligible student from a trust may be used for--
                    ``(A) tuition, fees, books, supplies, and equipment 
                required for the enrollment or attendance of the 
                eligible student at an institution of higher education; 
                and
                    ``(B) in the case of an eligible student with 
                special needs, expenses for special needs services 
                which are incurred in connection with such enrollment 
                or attendance.
            ``(4) Return of funds.--
                    ``(A) Redistribution.--
                            ``(i) In general.--Trust funds that are not 
                        used by an eligible student within 6 years of 
                        the student's scheduled completion of secondary 
                        school may be redistributed by the eligible 
                        entity to other eligible students.
                            ``(ii) Return of excess to the secretary.--
                        If, after meeting the requirements of paragraph 
                        (1) and, if applicable, redistributing excess 
                        funds in accordance with clause (i), an 
                        eligible entity has funds remaining, the 
                        eligible entity shall return excess funds to 
                        the Secretary for distribution to other 
                        grantees under this chapter.
                    ``(B) Nonparticipating entity.--Notwithstanding 
                subparagraph (A), in the case of an eligible entity 
                described in section 404A(c)(1)(A) that does not 
                receive assistance under this subpart for 6 fiscal 
                years, the eligible entity shall return any trust funds 
                not awarded or obligated to eligible students to the 
                Secretary for distribution to other grantees under this 
                chapter.''; and
            (6) in subsection (g) (as redesignated by paragraph (2))--
                    (A) in paragraph (2), by striking ``1993'' and 
                inserting ``2000''; and
                    (B) in paragraph (4), by striking ``early 
                intervention component required under section 404D'' 
                and inserting ``activities required under section 
                404D(a)''.
    (f) Repeal of 21st Century Scholar Certificates.--Chapter 2 of 
subpart 2 of part A of title IV (20 U.S.C. 1070a-21 et seq.) is further 
amended--
            (1) by striking section 404F; and
            (2) by redesignating sections 404G and 404H as sections 
        404F and 404G, respectively.
    (g) Authorization of Appropriations.--Section 404G (as redesignated 
by subsection (f)) (20 U.S.C. 1070a-28) is amended by striking 
``$200,000,000 for fiscal year 1999'' and all that follows through the 
period and inserting ``such sums as may be necessary for fiscal year 
2006 and each of the 5 succeeding fiscal years.''.
    (h) Conforming Amendments.--Chapter 2 of subpart 2 of part A of 
title IV (20 U.S.C. 1070a-21 et seq.) is further amended--
            (1) in section 404A(b)(1), by striking ``404H'' and 
        inserting ``404G'';
            (2) in section 404B(a)(1), by striking ``404H'' and 
        inserting ``404G''; and
            (3) in section 404F(c) (as redesignated by section 6(2)), 
        by striking ``404H'' and inserting ``404G''.

SEC. 404. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.

    Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a-31 et 
seq.) is repealed.

SEC. 405. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Appropriations Authorized.--Section 413A(b)(1) (20 U.S.C. 
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 
1999'' and all that follows through the period and inserting ``such 
sums as may be necessary for fiscal year 2006 and each of the 5 
succeeding fiscal years.''.
    (b) Allocation of Funds.--
            (1) Allocation of funds.--Section 413D (20 U.S.C. 1070b-3) 
        is amended--
                    (A) by striking subsection (a)(4); and
                    (B) in subsection (c)(3)(D), by striking ``$450'' 
                and inserting ``$600''.
            (2) Technical correction.--Section 413D(a)(1) (20 U.S.C. 
        1070b-3(a)(1)) is amended by striking ``such institution'' and 
        all that follows through the period and inserting ``such 
        institution received under subsections (a) and (b) of this 
        section for fiscal year 1999 (as such subsections were in 
        effect with respect to allocations for such fiscal year).''.

SEC. 406. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.

    (a) Appropriations Authorized.--Section 415A(b)(1) (20 U.S.C. 
1070c(b)(1)) is amended to read as follows:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this subpart such sums as may be necessary for 
        fiscal year 2006 and each of the 5 succeeding fiscal years.''.
    (b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b)) is 
amended--
            (1) in the matter preceding subparagraph (A) of paragraph 
        (2), by striking ``not in excess of $5,000 per academic year'' 
        and inserting ``not to exceed the lesser of $12,500 or the 
        student's cost of attendance per academic year''; and
            (2) by striking paragraph (10) and inserting the following:
            ``(10) provides notification to eligible students that such 
        grants are--
                    ``(A) Leveraging Educational Assistance Partnership 
                grants; and
                    ``(B) funded by the Federal Government, the State, 
                and other contributing partners.''.
    (c) Grants for Access and Persistence.--Section 415E (20 U.S.C. 
1070c-3a) is amended to read as follows:

``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.

    ``(a) Purpose.--It is the purpose of this section to expand college 
access and increase college persistence by making allotments to States 
to enable the States to--
            ``(1) expand and enhance partnerships with institutions of 
        higher education, early information and intervention, 
        mentoring, or outreach programs, private corporations, 
        philanthropic organizations, and other interested parties in 
        order to--
                    ``(A) carry out activities under this section; and
                    ``(B) provide coordination and cohesion among 
                Federal, State, and local governmental and private 
                efforts that provide financial assistance to help low-
                income students attend an institution of higher 
                education;
            ``(2) provide need-based grants for access and persistence 
        to eligible low-income students;
            ``(3) provide early notification to low-income students of 
        the students' eligibility for financial aid; and
            ``(4) encourage increased participation in early 
        information and intervention, mentoring, or outreach programs.
    ``(b) Allotments to States.--
            ``(1) In general.--
                    ``(A) Authorization.--From sums reserved under 
                section 415A(b)(2) for each fiscal year, the Secretary 
                shall make an allotment to each State that submits an 
                application for an allotment in accordance with 
                subsection (c) to enable the State to pay the Federal 
                share, as described in paragraph (2), of the cost of 
                carrying out the activities under subsection (d).
                    ``(B) Determination of allotment.--In making 
                allotments under subparagraph (A), the Secretary shall 
                consider the following:
                            ``(i) Continuation of award.--If a State 
                        continues to meet the specifications 
                        established in such State's application under 
                        subsection (c), the Secretary shall make an 
                        allotment to such State that is not less than 
                        the allotment made to such State for the 
                        previous fiscal year.
                            ``(ii) Priority.--The Secretary shall give 
                        priority in making allotments to States that 
                        meet the requirements described in paragraph 
                        (2)(A)(ii).
            ``(2) Federal share.--
                    ``(A) In general.--The Federal share under this 
                section shall be determined in accordance with the 
                following:
                            ``(i) If a State applies for an allotment 
                        under this section in partnership with--
                                    ``(I) any number of degree granting 
                                institutions of higher education in the 
                                State whose combined full-time 
                                enrollment represents less than a 
                                majority of all students attending 
                                institutions of higher education in the 
                                State; and
                                    ``(II)(aa) philanthropic 
                                organizations that are located in, or 
                                that provide funding in, the State; or
                                    ``(bb) private corporations that 
                                are located in, or that do business in, 
                                the State,
                        then the Federal share of the cost of carrying 
                        out the activities under subsection (d) shall 
                        be equal to 50 percent.
                            ``(ii) If a State applies for an allotment 
                        under this section in partnership with--
                                    ``(I) any number of degree granting 
                                institutions of higher education in the 
                                State whose combined full-time 
                                enrollment represents a majority of all 
                                students attending institutions of 
                                higher education in the State; and
                                    ``(II)(aa) philanthropic 
                                organizations that are located in, or 
                                that provide funding in, the State; or
                                    ``(bb) private corporations that 
                                are located in, or that do business in, 
                                the State,
                        then the Federal share of the cost of carrying 
                        out the activities under subsection (d) shall 
                        be equal to 57 percent.
                    ``(B) Non-federal share.--
                            ``(i) In general.--The non-Federal share 
                        under this section may be provided in cash or 
                        in kind, fully evaluated and in accordance with 
                        this subparagraph.
                            ``(ii) In kind contribution.--For the 
                        purpose of calculating the non-Federal share 
                        under this section, an in kind contribution is 
                        a non-cash award that has monetary value, such 
                        as provision of room and board and 
                        transportation passes, and that helps a student 
                        meet the cost of attendance.
                            ``(iii) Effect on need analysis.--For the 
                        purpose of calculating a student's need in 
                        accordance with part F of this title, an in-
                        kind contribution described in clause (ii) 
                        shall be considered a resource and not a 
                        reduction in the cost of attendance.
    ``(c) Application for Allotment.--
            ``(1) In general.--
                    ``(A) Submission.--A State that desires to receive 
                an allotment under this section on behalf of a 
                partnership described in paragraph (3) shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    ``(B) Content.--An application submitted under 
                subparagraph (A) shall include the following:
                            ``(i) A description of the State's plan for 
                        using the allotted funds.
                            ``(ii) Assurances that the State will 
                        provide the non-Federal share from State, 
                        institutional, philanthropic, or private funds, 
                        of not less than the required share of the cost 
                        of carrying out the activities under subsection 
                        (d), as determined under subsection (b), in 
                        accordance with the following:
                                    ``(I) The State shall specify the 
                                methods by which non-Federal share 
                                funds will be paid and include 
                                provisions designed to ensure that 
                                funds provided under this section will 
                                be used to supplement, and not 
                                supplant, Federal and non-Federal funds 
                                available for carrying out the 
                                activities under this title.
                                    ``(II) A State that uses non-
                                Federal funds to create or expand 
                                existing partnerships with nonprofit 
                                organizations or community-based 
                                organizations in which such 
                                organizations match State funds for 
                                student scholarships, may apply such 
                                matching funds from such organizations 
                                toward fulfilling the State's non-
                                Federal share obligation under this 
                                clause.
                            ``(iii) Assurances that early information 
                        and intervention, mentoring, or outreach 
                        programs exist within the State or that there 
                        is a plan to make such programs widely 
                        available.
                            ``(iv) A description of the organizational 
                        structure that the State has in place to 
                        administer the activities under subsection (d), 
                        including a description of the system the State 
                        will use to track the participation of students 
                        who receive grants under this section to degree 
                        completion.
                            ``(v) Assurances that the State has a 
                        method in place, such as acceptance of the 
                        automatic zero expected family contribution 
                        determination described in section 479, to 
                        identify eligible low-income students and award 
                        State grant aid to such students.
                            ``(vi) Assurances that the State will 
                        provide notification to eligible low-income 
                        students that grants under this section are--
                                    ``(I) Leveraging Educational 
                                Assistance Partnership Grants; and
                                    ``(II) funded by the Federal 
                                Government, the State, and other 
                                contributing partners.
            ``(2) State agency.--The State agency that submits an 
        application for a State under section 415C(a) shall be the same 
        State agency that submits an application under paragraph (1) 
        for such State.
            ``(3) Partnership.--In applying for an allotment under this 
        section, the State agency shall apply for the allotment in 
        partnership with--
                    ``(A) not less than 1 public and 1 private degree 
                granting institution of higher education that are 
                located in the State, if applicable;
                    ``(B) new or existing early information and 
                intervention, mentoring, or outreach programs located 
                in the State; and
                    ``(C) not less than 1--
                            ``(i) philanthropic organization located 
                        in, or that provides funding in, the State; or
                            ``(ii) private corporation located in, or 
                        that does business in, the State.
            ``(4) Roles of partners.--
                    ``(A) State agency.--A State agency that is in a 
                partnership receiving an allotment under this section--
                            ``(i) shall--
                                    ``(I) serve as the primary 
                                administrative unit for the 
                                partnership;
                                    ``(II) provide or coordinate non-
                                Federal share funds, and coordinate 
                                activities among partners;
                                    ``(III) encourage each institution 
                                of higher education in the State to 
                                participate in the partnership;
                                    ``(IV) make determinations and 
                                early notifications of assistance as 
                                described under subsection (d)(2); and
                                    ``(V) annually report to the 
                                Secretary on the partnership's progress 
                                in meeting the purpose of this section; 
                                and
                            ``(ii) may provide early information and 
                        intervention, mentoring, or outreach programs.
                    ``(B) Degree granting institutions of higher 
                education.--A degree granting institution of higher 
                education that is in a partnership receiving an 
                allotment under this section--
                            ``(i) shall--
                                    ``(I) recruit and admit 
                                participating qualified students and 
                                provide such additional institutional 
                                grant aid to participating students as 
                                agreed to with the State agency;
                                    ``(II) provide support services to 
                                students who receive grants for access 
                                and persistence under this section and 
                                are enrolled at such institution; and
                                    ``(III) assist the State in the 
                                identification of eligible students and 
                                the dissemination of early 
                                notifications of assistance as agreed 
                                to with the State agency; and
                            ``(ii) may provide funding for early 
                        information and intervention, mentoring, or 
                        outreach programs or provide such services 
                        directly.
                    ``(C) Programs.--An early information and 
                intervention, mentoring, or outreach program that is in 
                a partnership receiving an allotment under this section 
                shall provide direct services, support, and information 
                to participating students.
                    ``(D) Philanthropic organization or private 
                corporation.--A philanthropic organization or private 
                corporation that is in a partnership receiving an 
                allotment under this section shall provide funds for 
                grants for access and persistence for participating 
                students, or provide funds or support for early 
                information and intervention, mentoring, or outreach 
                programs.
    ``(d) Authorized Activities.--
            ``(1) In general.--
                    ``(A) Establishment of partnership.--Each State 
                receiving an allotment under this section shall use the 
                funds to establish a partnership to award grants for 
                access and persistence to eligible low-income students 
                in order to increase the amount of financial assistance 
                such students receive under this subpart for 
                undergraduate education expenses.
                    ``(B) Amount of grants.--
                            ``(i) Partnerships with institutions 
                        serving less than a majority of students in the 
                        state.--
                                    ``(I) In general.--In the case 
                                where a State receiving an allotment 
                                under this section is in a partnership 
                                described in subsection (b)(2)(B)(i), 
                                the amount of a grant for access and 
                                persistence awarded by such State shall 
                                be not less than the amount that is 
                                equal to the average undergraduate 
                                tuition and mandatory fees at 4-year 
                                public institutions of higher education 
                                in the State where the student resides 
                                (less any other Federal or State 
                                sponsored grant amount, work study 
                                amount, and scholarship amount received 
                                by the student), and such amount shall 
                                be used toward the cost of attendance 
                                at an institution of higher education, 
                                located in the State, that is a partner 
                                in the partnership.
                                    ``(II) Cost of attendance.--A State 
                                that has a program, apart from the 
                                partnership under this section, of 
                                providing eligible low-income students 
                                with grants that are equal to the 
                                average undergraduate tuition and 
                                mandatory fees at 4-year public 
                                institutions of higher education in the 
                                State, may increase the amount of 
                                access and persistence grants awarded 
                                by such State up to an amount that is 
                                equal to the average cost of attendance 
                                at 4-year public institutions of higher 
                                education in the State (less any other 
                                Federal or State sponsored grant 
                                amount, work study amount, and 
                                scholarship amount received by the 
                                student).
                            ``(ii) Partnership with institutions 
                        serving the majority of students in the 
                        state.--In the case where a State receiving an 
                        allotment under this section is in a 
                        partnership described in subsection 
                        (b)(2)(B)(ii), the amount of an access and 
                        persistence grant awarded by such State shall 
                        be not more than an amount that is equal to the 
                        average at 4-year public institutions of higher 
                        education in the State where the student 
                        resides (less any other Federal or State 
                        sponsored grant amount, college work study 
                        amount, and scholarship amount received by the 
                        student), and such amount shall be used by the 
                        student to attend an institution of higher 
                        education, located in the State, that is a 
                        partner in the partnership.
            ``(2) Early notification.--
                    ``(A) In general.--Each State receiving an 
                allotment under this section shall annually notify low-
                income students, such as students who are eligible to 
                receive a free lunch under the school lunch program 
                established under the Richard B. Russell National 
                School Lunch Act, in grade 7 through grade 12 in the 
                State, of the students' potential eligibility for 
                student financial assistance, including an access and 
                persistence grant, to attend an institution of higher 
                education.
                    ``(B) Content of notice.--The notification under 
                subparagraph (A)--
                            ``(i) shall include--
                                    ``(I) information about early 
                                information and intervention, 
                                mentoring, or outreach programs 
                                available to the student;
                                    ``(II) information that a student's 
                                candidacy for an access and persistence 
                                grant is enhanced through participation 
                                in an early information and 
                                intervention, mentoring, or outreach 
                                program;
                                    ``(III) an explanation that student 
                                and family eligibility and 
                                participation in other Federal means-
                                tested programs may indicate 
                                eligibility for an access and 
                                persistence grant and other student aid 
                                programs;
                                    ``(IV) a nonbinding estimation of 
                                the total amount of financial aid a 
                                low-income student with a similar 
                                income level may expect to receive, 
                                including an estimation of the amount 
                                of an access and persistence grant and 
                                an estimation of the amount of grants, 
                                loans, and all other available types of 
                                aid from the major Federal and State 
                                financial aid programs;
                                    ``(V) an explanation that in order 
                                to be eligible for an access and 
                                persistence grant, at a minimum, a 
                                student shall--
                                            ``(aa) meet the requirement 
                                        under paragraph (3);
                                            ``(bb) graduate from 
                                        secondary school; and
                                            ``(cc) enroll at an 
                                        institution of higher education 
                                        that is a partner in the 
                                        partnership;
                                    ``(VI) information on any 
                                additional requirements (such as a 
                                student pledge detailing student 
                                responsibilities) that the State may 
                                impose for receipt of an access and 
                                persistence grant under this section; 
                                and
                                    ``(VII) instructions on how to 
                                apply for an access and persistence 
                                grant and an explanation that a student 
                                is required to file a Free Application 
                                for Federal Student Aid authorized 
                                under section 483(a) to be eligible for 
                                such grant and assistance from other 
                                Federal and State financial aid 
                                programs; and
                            ``(ii) may include a disclaimer that access 
                        and persistence grant awards are contingent 
                        upon--
                                    ``(I) a determination of the 
                                student's financial eligibility at the 
                                time of the student's enrollment at an 
                                institution of higher education that is 
                                a partner in the partnership;
                                    ``(II) annual Federal and State 
                                appropriations; and
                                    ``(III) other aid received by the 
                                student at the time of the student's 
                                enrollment at an institution of higher 
                                education that is a partner in the 
                                partnership.
            ``(3) Eligibility.--In determining which students are 
        eligible to receive access and persistence grants, the State 
        shall ensure that each such student meets not less than 1 of 
        the following:
                    ``(A) Meets not less than 2 of the following 
                criteria, with priority given to students meeting all 
                of the following criteria:
                            ``(i) Has an expected family contribution 
                        equal to zero (as described in section 479) or 
                        a comparable alternative based upon the State's 
                        approved criteria in section 415C(b)(4).
                            ``(ii) Has qualified for a free lunch, or 
                        at the State's discretion a reduced price 
                        lunch, under the school lunch program 
                        established under the Richard B. Russell 
                        National School Lunch Act.
                            ``(iii) Qualifies for the State's maximum 
                        undergraduate award, as authorized under 
                        section 415C(b).
                            ``(iv) Is participating in, or has 
                        participated in, a Federal, State, 
                        institutional, or community early information 
                        and intervention, mentoring, or outreach 
                        program, as recognized by the State agency 
                        administering activities under this section.
                    ``(B) Is receiving, or has received, an access and 
                persistence grant under this section, in accordance 
                with paragraph (5).
            ``(4) Grant award.--Once a student, including those 
        students who have received early notification under paragraph 
        (2) from the State, applies for admission to an institution 
        that is a partner in the partnership, files a Free Application 
        for Federal Student Aid and any related existing State form, 
        and is determined eligible by the State under paragraph (3), 
        the State shall--
                    ``(A) issue the student a preliminary access and 
                persistence grant award certificate with tentative 
                award amounts; and
                    ``(B) inform the student that payment of the access 
                and persistence grant award amounts is subject to 
                certification of enrollment and award eligibility by 
                the institution of higher education.
            ``(5) Duration of award.--An eligible student that receives 
        an access and persistence grant under this section shall 
        receive such grant award for each year of such student's 
        undergraduate education in which the student remains eligible 
        for assistance under this title, including pursuant to section 
        484(c), and remains financially eligible as determined by the 
        State, except that the State may impose reasonable time limits 
        to baccalaureate degree completion.
    ``(e) Use of Funds for Administrative Costs Prohibited.--A State 
that receives an allotment under this section shall not use any of the 
allotted funds to pay administrative costs associated with any of the 
authorized activities described in subsection (d).
    ``(f) Statutory and Regulatory Relief for Institutions of Higher 
Education.--The Secretary may grant, upon the request of an institution 
of higher education that is in a partnership described in subsection 
(b)(2)(B)(ii) and that receives an allotment under this section, a 
waiver for such institution from statutory or regulatory requirements 
that inhibit the ability of the institution to successfully and 
efficiently participate in the activities of the partnership.
    ``(g) Applicability Rule.--The provisions of this subpart which are 
not inconsistent with this section shall apply to the program 
authorized by this section.
    ``(h) Maintenance of Effort Requirement.--Each State receiving an 
allotment under this section for a fiscal year shall provide the 
Secretary with an assurance that the aggregate amount expended per 
student or the aggregate expenditures by the State, from funds derived 
from non-Federal sources, for the authorized activities described in 
subsection (d) for the preceding fiscal year were not less than the 
amount expended per student or the aggregate expenditure by the State 
for the activities for the second preceding fiscal year.
    ``(i) Special Rule.--Notwithstanding subsection (h), for purposes 
of determining a State's share of the cost of the authorized activities 
described in subsection (d), the State shall consider only those 
expenditures from non-Federal sources that exceed the State's total 
expenditures for need-based grants, scholarships, and work-study 
assistance for fiscal year 1999 (including any such assistance provided 
under this subpart).
    ``(j) Reports.--Not later than 3 years after the date of enactment 
of the Higher Education Amendments of 2005 and annually thereafter, the 
Secretary shall submit a report describing the activities and the 
impact of the partnerships under this section to the authorizing 
committees.''.

SEC. 407. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN 
              MIGRANT AND SEASONAL FARMWORK.

    Section 418A (20 U.S.C. 1070d-2) is amended--
            (1) in subsection (a), by adding ``(including providing 
        outreach and technical assistance)'' after ``maintain and 
        expand'';
            (2) in subsection (b)--
                    (A) in paragraph (1)(B)(i), by striking ``parents'' 
                and inserting ``immediate family'';
                    (B) in paragraph (3)(B), by inserting ``(including 
                preparation for college entrance examinations)'' after 
                ``college program'';
                    (C) in paragraph (5), by striking ``weekly'';
                    (D) in paragraph (7), by striking ``and'' after the 
                semicolon;
                    (E) in paragraph (8), by striking the period at the 
                end and inserting ``; and''; and
                    (F) by adding at the end the following:
            ``(9) other activities to improve persistence and retention 
        in postsecondary education.'';
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by inserting ``to improve 
                                placement, persistence, and retention 
                                in postsecondary education'' after 
                                ``services''; and
                                    (II) in clause (i), by striking 
                                ``and career'' and inserting ``career, 
                                and economic education or personal 
                                finance'';
                            (ii) in subparagraph (E), by striking 
                        ``and'' after the semicolon;
                            (iii) by redesignating subparagraph (F) as 
                        subparagraph (G); and
                            (iv) by inserting after subparagraph (E) 
                        the following:
            ``(F) internships; and''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``, and 
                        coordinating such services, assistance, and aid 
                        with other non-program services, assistance, 
                        and aid, including services, assistance, and 
                        aid provided by community-based organizations, 
                        which may include mentoring and guidance; 
                        and''; and
                            (iii) by adding at the end the following:
                    ``(C) for students attending 2-year institutions of 
                higher education, encouraging the students to transfer 
                to 4-year institutions of higher education, where 
                appropriate, and monitoring the rate of transfer of 
                such students.'';
            (4) in subsection (e), by striking ``section 402A(c)(1)'' 
        and inserting ``section 402A(c)(2)'';
            (5) in subsection (f)--
                    (A) in paragraph (1), by striking ``$150,000'' and 
                inserting ``$180,000''; and
                    (B) in paragraph (2), by striking ``$150,000'' and 
                inserting ``$180,000''; and
            (6) in subsection (h)--
                    (A) in paragraph (1), by striking ``$15,000,000 for 
                fiscal year 1999'' and all that follows through the 
                period and inserting ``such sums as may be necessary 
                for fiscal year 2006 and each of the 5 succeeding 
                fiscal years.''; and
                    (B) in paragraph (2), by striking ``$5,000,000 for 
                fiscal year 1999'' and all that follows through the 
                period and inserting ``such sums as may be necessary 
                for fiscal year 2006 and each of the 5 succeeding 
                fiscal years.''.

SEC. 408. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

    Section 419K (20 U.S.C. 1070d-41) is amended by striking 
``$45,000,000 for fiscal year 1999'' and all that follows through the 
period and inserting ``such sums as may be necessary for fiscal year 
2006 and each of the 5 succeeding fiscal years.''.

SEC. 409. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

    (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
1070e(b)(2)(B)) is amended--
            (1) by striking ``A grant'' and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), a grant''; and
            (2) by adding at the end the following:
                            ``(ii) Increase trigger.--For any fiscal 
                        year for which the amount appropriated under 
                        the authority of subsection (g) is equal to or 
                        greater than $20,000,000, a grant under this 
                        section shall be awarded in an amount that is 
                        not less than $30,000.''.
    (b) Definition of Low-Income Student.--Paragraph (7) of section 
419N(b) (20 U.S.C. 1070e(b)) is amended to read as follows:
            ``(7) Definition of low-income student.--For the purpose of 
        this section, the term `low-income student' means a student 
        who--
                    ``(A) is eligible to receive a Federal Pell Grant 
                for the fiscal year for which the determination is 
                made; or
                    ``(B) would otherwise be eligible to receive a 
                Federal Pell Grant for the fiscal year for which the 
                determination is made, except that the student fails to 
                meet the requirements of--
                            ``(i) section 401(c)(1) because the student 
                        is enrolled in a graduate or first professional 
                        course of study; or
                            ``(ii) section 484(a)(5) because the 
                        student is in the United States for a temporary 
                        purpose.''.
    (c) Authorization of Appropriations.--Section 419N(g) (20 U.S.C. 
1070e(g)) is amended by striking ``$45,000,000 for fiscal year 1999'' 
and all that follows through the period and inserting ``such sums as 
may be necessary for fiscal year 2006 and each of the 5 succeeding 
fiscal years.''.

SEC. 410. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

    Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.) is 
repealed.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. EXTENSION OF AUTHORITIES.

    (a) Federal Insurance Limitations.--Section 424(a) (20 U.S.C. 
1074(a)) is amended--
            (1) by striking ``2004'' and inserting ``2012''; and
            (2) by striking ``2008'' and inserting ``2016''.
    (b) Guaranteed Loans.--Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is 
amended--
            (1) by striking ``2004'' and inserting ``2012''; and
            (2) 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. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

    Section 428 (20 U.S.C. 1078) is amended--
            (1) in subsection (b)(1)--
                    (A) in subparagraph (N)--
                            (i) in clause (i), by striking ``or'' after 
                        the semicolon; and
                            (ii) by striking clause (ii) and inserting 
                        the following:
                            ``(ii) in the case of a student who is 
                        studying outside the United States in a program 
                        of study abroad that is approved for credit by 
                        the home institution at which such student is 
                        enrolled, are, at the request of the student, 
                        disbursed directly to the student by the means 
                        described in clause (i), unless such student 
                        requests that the check be endorsed, or the 
                        funds transfer be authorized, pursuant to an 
                        authorized power-of-attorney; or
                            ``(iii) in the case of a student who is 
                        studying outside the United States in a program 
                        of study at an eligible foreign institution, 
                        are, at the request of the foreign institution, 
                        disbursed directly to the student by the means 
                        described in clause (i);''; and
                    (B) in subparagraph (Y)(i)(III), by inserting ``, 
                except that, if requested by an institution of higher 
                education, the lender shall confirm such status through 
                use of the National Student Loan Data System'' before 
                the semicolon; and
            (2) in subsection (c)(2)(H)(i), by striking ``preclaims'' 
        and inserting ``default aversion''.

SEC. 423. FEDERAL CONSOLIDATION LOANS.

    Section 428C(b)(1) (20 U.S.C. 1078-3(b)(1)) is amended--
            (1) in subparagraph (E), by striking ``and'' after the 
        semicolon;
            (2) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (3) by inserting after subparagraph (E) the following:
                    ``(F) that the lender will disclose, in a clear and 
                conspicuous manner, to borrowers who consolidate loans 
                made under part E of this title--
                            ``(i) that once the borrower adds the 
                        borrower's Federal Perkins Loan to a Federal 
                        Consolidation Loan, the borrower will lose all 
                        interest-free periods that would have been 
                        available, such as those periods when no 
                        interest accrues on the Federal Perkins Loan 
                        while the borrower is enrolled in school at 
                        least half-time, during the grace period, and 
                        during periods when the borrower's student loan 
                        repayments are deferred;
                            ``(ii) that the borrower will no longer be 
                        eligible for loan forgiveness of Federal 
                        Perkins Loans under any provision of section 
                        465; and
                            ``(iii) the occupations described in 
                        section 465(a)(2), individually and in detail, 
                        for which the borrower will lose eligibility 
                        for Federal Perkins Loan forgiveness; and''.

SEC. 424. DEFAULT REDUCTION PROGRAM.

    Section 428F (20 U.S.C. 1078-6) is amended by adding at the end the 
following:
    ``(c) Financial and Economic Literacy.--Where appropriate as 
determined by the institution of higher education in which a borrower 
is enrolled, each program described in subsection (b) shall include 
making available financial and economic education materials for the 
borrower, including making the materials available before, during, or 
after rehabilitation of a loan.''.

SEC. 425. REPORTS TO CREDIT BUREAUS AND INSTITUTIONS OF HIGHER 
              EDUCATION.

    Section 430A(a) (20 U.S.C. 1080a(a)) is amended--
            (1) in the first sentence, by striking ``with credit bureau 
        organizations'' and inserting ``with each consumer reporting 
        agency that compiles and maintains files on consumers on a 
        nationwide basis (as defined in section 603(q) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681a(q))'';
            (2) by redesignating paragraphs (1), (2), and (3) as 
        paragraphs (2), (4), and (5), respectively;
            (3) by inserting before paragraph (2) (as redesignated by 
        paragraph (2)), the following:
            ``(1) the type of loan made, insured, or guaranteed under 
        this title;'';
            (4) by inserting after paragraph (2) (as redesignated by 
        paragraph (2)), the following:
            ``(3) information concerning the repayment status of the 
        loan, which information shall be included in the file of the 
        borrower, except that nothing in this paragraph shall be 
        construed to affect any otherwise applicable provision of the 
        Fair Credit Reporting Act (15 U.S.C. 1681 et seq.)'';
            (5) in paragraph (4) (as redesignated by paragraph (2)), by 
        striking ``and'' after the semicolon;
            (6) in paragraph (5) (as redesignated by paragraph (2)), by 
        striking the period and inserting ``; and''; and
            (7) by adding at the end the following:
            ``(6) any other information required to be reported by 
        Federal law.''.

SEC. 426. COMMON FORMS AND FORMATS.

    Section 432(m)(1)(D)(i) (20 U.S.C. 1082(m)(1)(D)(i)) is amended by 
adding at the end the following: ``Unless otherwise notified by the 
Secretary, each institution of higher education that participates in 
the program under this part or part D may use a master promissory note 
for loans under this part and part D.''.

SEC. 427. STUDENT LOAN INFORMATION BY ELIGIBLE BORROWERS.

    Section 433 (20 U.S.C. 1083) is amended by adding at the end the 
following:
    ``(f) Borrower Information and Privacy.--Each eligible lender, 
guaranty agency, secondary market, consumer reporting agency, or 
student loan servicer participating in a program under this part shall 
not use, release, sell, transfer, or give any student information, 
including the name, address, social security number, or amount borrowed 
by a borrower or a borrower's parent, for any purpose that is not 
related to the processing of, the collecting of, the servicing of, or 
other activities associated with the prevention of default on, loans 
under this title.
    ``(g) Loan Benefit Disclosures.--
            ``(1) In general.--Each eligible lender, holder, or 
        servicer of a loan made, insured, or guaranteed under this part 
        shall provide the borrower with information on the loan benefit 
        repayment options the lender, holder, or servicer offer, 
        including information on reductions in interest rates--
                    ``(A) by repaying the loan by automatic payroll or 
                checking account deduction;
                    ``(B) by completing a program of on-time repayment; 
                and
                    ``(C) under any other interest rate reduction 
                program.
            ``(2) Information.--Such borrower information shall 
        include--
                    ``(A) any limitations on such options;
                    ``(B) explicit information on the reasons a 
                borrower may lose eligibility for such an option;
                    ``(C) examples of the impact the interest rate 
                reductions will have on a borrower's time for repayment 
                and amount of repayment;
                    ``(D) upon the request of the borrower, the effect 
                the reductions in interest rates will have with respect 
                to the borrower's payoff amount and time for repayment; 
                and
                    ``(E) information on borrower recertification 
                requirements.''.

SEC. 428. CONSUMER EDUCATION INFORMATION.

    Part B (20 U.S.C. 1071 et seq.) is amended by inserting after 
section 433 (20 U.S.C. 1083) the following:

``SEC. 433A. CONSUMER EDUCATION INFORMATION.

    ``Each guaranty agency participating in a program under this part 
working with the institutions of higher education served by such 
guaranty agency (or in the case of an institution of higher education 
that provides loans exclusively through part D, the institution working 
with a guaranty agency or with the Secretary) shall develop and make 
available a quality educational program and materials to provide 
training for students in budgeting and financial management, including 
debt management and other aspects of financial literacy, such as the 
cost of using very high interest loans to pay for postsecondary 
education, particularly as budgeting and financial management relates 
to student loan programs authorized by this title. Nothing in this 
section shall be construed to prohibit a guaranty agency from using an 
existing program or existing materials to meet the requirement of this 
section. The activities described in this section shall be considered 
default reduction activities for the purposes of section 422.''.

SEC. 429. DEFINITION OF ELIGIBLE LENDER.

    Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is amended by striking 
subparagraph (F) and inserting the following:
                    ``(F) shall use the proceeds from special allowance 
                payments, interest payments from borrowers, proceeds 
                from the sale of a loan made, insured, or guaranteed 
                under this part, and all other proceeds related to such 
                a loan that are furnished to the eligible institution 
                or any entity affiliated (directly or indirectly) with 
                the eligible institution, for need based grant 
                programs, except that such payments and proceeds may be 
                used for reasonable reimbursement for direct 
                administrative expenses;''.

SEC. 430. REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, DECEASED, OR 
              DISABLED BORROWERS; TREATMENT OF BORROWERS ATTENDING 
              SCHOOLS THAT FAIL TO PROVIDE A REFUND, ATTENDING CLOSED 
              SCHOOLS, OR FALSELY CERTIFIED AS ELIGIBLE TO BORROW.

    Section 437 (20 U.S.C. 1087) is amended--
            (1) in the section heading, by striking ``closed schools or 
        falsely certified as eligible to borrow'' and inserting 
        ``schools that fail to provide a refund, attending closed 
        schools, or falsely certified as eligible to borrow''; and
            (2) in the first sentence of subsection (c)(1), by 
        inserting ``or was falsely certified as a result of a crime of 
        identity theft'' after ``falsely certified by the eligible 
        institution''.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    Section 441(b) (42 U.S.C. 2751(b)) is amended by striking 
``$1,000,000 for fiscal year 1999'' and all that follows through the 
period and inserting ``such sums as may be necessary for fiscal year 
2006 and each of the 5 succeeding fiscal years.''.

SEC. 442. ALLOWANCE FOR 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. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

    Section 443(b)(2) (42 U.S.C. 2753(b)(2)) is amended--
            (1) by striking subparagraph (A);
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively; and
            (3) in subparagraph (A) (as redesignated by paragraph (2)), 
        by striking ``this subparagraph if'' and all that follows 
        through ``institution;'' and inserting ``this subparagraph if--
                            ``(i) the Secretary determines that 
                        enforcing this subparagraph would cause 
                        hardship for students at the institution; or
                            ``(ii) the institution certifies to the 
                        Secretary that 15 percent or more of its total 
                        full-time enrollment participates in community 
                        service activities described in section 441(c) 
                        or tutoring and literacy activities described 
                        in subsection (d) of this section;''.

SEC. 444. JOB LOCATION AND DEVELOPMENT PROGRAMS.

    Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by striking 
``$50,000'' and inserting ``$75,000''.

SEC. 445. WORK COLLEGES.

    Section 448(f) (42 U.S.C. 2756b(f)) is amended by striking 
``5,000,000 for fiscal year 1999'' and all that follows through the 
period and inserting ``such sums as may be necessary for fiscal year 
2006 and each of the 5 succeeding fiscal years.''.

          PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

SEC. 451. FUNDS FOR ADMINISTRATIVE EXPENSES.

    Section 458 (20 U.S.C. 1087h) is amended--
            (1) in subsection (a)(1), in the matter following 
        subparagraph (B), by striking ``$617,000,000'' and all that 
        follows through the period and inserting ``$904,000,000 in 
        fiscal year 2006, $943,000,000 in fiscal year 2007, 
        $983,000,000 in fiscal year 2008, $1,023,000,000 in fiscal year 
        2009, $1,064,000,000 in fiscal year 2010, and $1,106,000,000 in 
        fiscal year 2011.''; and
            (2) in subsection (c)(1), by striking subparagraphs (A) 
        through (E) and inserting the following:
                    ``(A) for fiscal year 2006, shall not exceed 
                $271,000,000;
                    ``(B) for fiscal year 2007, shall not exceed 
                $293,000,000;
                    ``(C) for fiscal year 2008, shall not exceed 
                $315,000,000;
                    ``(D) for fiscal year 2009, shall not exceed 
                $336,000,000;
                    ``(E) for fiscal year 2010, shall not exceed 
                $356,000,000; and
                    ``(F) for fiscal year 2011, shall not exceed 
                $378,000,000.''.

                     PART E--FEDERAL PERKINS LOANS

SEC. 461. PROGRAM AUTHORITY.

    Section 461(b) (20 U.S.C. 1087aa(b)) is amended--
            (1) in paragraph (1), by striking ``$250,000,000 for fiscal 
        year 1999'' and all that follows through the period and 
        inserting ``such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years.''; and
            (2) in paragraph (2),--
                    (A) by striking ``fiscal year 2003'' and inserting 
                ``fiscal year 2009''; and
                    (B) by striking ``October 1, 2003'' and inserting 
                ``October 1, 2009''.

SEC. 462. TERMS OF LOANS.

    Section 464 (20 U.S.C. 1087dd) is amended--
            (1) in subsection (b)(1), by striking ``for an additional 
        loan under this part'' and inserting ``for additional aid under 
        this title''; and
            (2) in subsection (e), by striking ``written''.

SEC. 463. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.

    Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``Head Start 
                Act which'' and inserting ``Head Start Act, or in a 
                prekindergarten or child care program that is licensed 
                or regulated by the State, that'';
                    (B) in subparagraph (H), by striking ``or'' after 
                the semicolon;
                    (C) in subparagraph (I), by striking the period and 
                inserting a semicolon; and
                    (D) by inserting before the matter following 
                subparagraph (I) (as amended by subparagraph (C)) the 
                following:
            ``(J) as a full-time faculty member at a tribally 
        controlled college or university, as that term is defined in 
        section 2 of the Tribally Controlled College or University 
        Assistance Act of 1978; or
            ``(K) as a librarian, if the librarian has a master's 
        degree in library science and is employed in--
                    ``(i) an elementary school or secondary school 
                library that is eligible for assistance under title I 
                of the Elementary and Secondary Education Act of 1965; 
                or
                    ``(ii) a public library that serves a geographic 
                area that contains 1 or more schools eligible for 
                assistance under title I of the Elementary and 
                Secondary Education Act of 1965.''; and
            (2) in paragraph (3)(A)(i), by striking ``or (I)'' and 
        inserting ``(I), (J), or (K)''.

                         PART F--NEED ANALYSIS

SEC. 471. COST OF ATTENDANCE.

    Section 472 (20 U.S.C. 1087ll) is amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) for less than half-time students (as determined by 
        the institution), tuition and fees and an allowance for only--
                    ``(A) books, supplies, and transportation (as 
                determined by the institution);
                    ``(B) dependent care expenses (determined in 
                accordance with paragraph (8)); and
                    ``(C) room and board costs (determined in 
                accordance with paragraph (3)), except that a student 
                may receive an allowance for such costs under this 
                subparagraph for not more than 3 semesters or the 
                equivalent, of which not more than 2 semesters or the 
                equivalent may be consecutive;'';
            (2) in paragraph (11), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (12), by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following:
            ``(13) at the option of the institution, for a student in a 
        program requiring professional licensure or certification, the 
        one time cost of obtaining the first professional credentials 
        (as determined by the institution).''.

SEC. 472. DEFINITIONS.

    (a) Definitions.--Section 480 (20 U.S.C. 1087vv) is amended--
            (1) in subsection (f)--
                    (A) in paragraph (1), by inserting ``qualified 
                education benefits (except as provided in paragraph 
                (3)),'' after ``tax shelters,''; and
                    (B) by adding at the end the following:
    ``(3) A qualified education benefit shall not be considered an 
asset of a student for purposes of section 475.
    ``(4) In determining the value of assets in a determination of need 
under this title (other than for subpart 4 of part A), the value of a 
qualified education benefit shall be--
            ``(A) the refund value of any tuition credits or 
        certificates purchased under a qualified education benefit; and
            ``(B) in the case of a program in which contributions are 
        made to an account that is established for the purpose of 
        meeting the qualified higher education expenses of the 
        designated beneficiary of the account, the current balance of 
        such account.
    ``(5) In this subsection:
            ``(A) Qualified education benefit.--The term `qualified 
        education benefit' means--
                    ``(i) a qualified tuition program (as defined in 
                section 529(b)(1)(A) of the Internal Revenue Code of 
                1986) or other prepaid tuition plan offered by a State; 
                and
                    ``(ii) a Coverdell education savings account (as 
                defined in section 530(b)(1) of the Internal Revenue 
                Code of 1986).
            ``(B) Qualified higher education expenses.--The term 
        `qualified higher education expenses' has the meaning given the 
        term in section 529(e) of the Internal Revenue Code of 1986.''; 
        and
            (2) in subsection (j)--
                    (A) in the subsection heading, by striking ``; 
                Tuition Prepayment Plans'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraph (3) as paragraph 
                (2); and
                    (D) by inserting after paragraph (2) (as 
                redesignated by subparagraph (C)) the following 
                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 estimated 
financial assistance or cost of attendance, that assistance shall be 
excluded from both calculations.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to determinations of need under part F of title IV 
for academic years beginning on or after July 1, 2006.

       PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

SEC. 481. DEFINITION OF ACADEMIC AND AWARD YEAR.

    The second sentence of section 481(a)(2) (20 U.S.C. 1088(a)(2)) is 
amended by inserting ``and that measures program length in credit hours 
or clock hours'' after ``baccalaureate degree''.

SEC. 482. COMPLIANCE CALENDAR.

    Section 482 (20 U.S.C. 1089) is amended by adding at the end the 
following:
    ``(a) Compliance Calendar.--Prior to the beginning of each award 
year, the Secretary shall provide to institutions of higher education a 
list of all the reports and disclosures required under this Act. The 
list shall include--
            ``(1) the date each report or disclosure is required to be 
        completed and to be submitted, made available, or disseminated;
            ``(2) the required recipients of each report or disclosure;
            ``(3) any required method for transmittal or dissemination 
        of each report or disclosure;
            ``(4) a description of the content of each report or 
        disclosure sufficient to allow the institution to identify the 
        appropriate individuals to be assigned the responsibility for 
        such report or disclosure;
            ``(5) references to the statutory authority, applicable 
        regulations, and current guidance issued by the Secretary 
        regarding each report or disclosure; and
            ``(6) any other information which is pertinent to the 
        content or distribution of the report or disclosure.''.

SEC. 483. FORMS AND REGULATIONS.

    Section 483 (20 U.S.C. 1090) is amended--
            (1) by striking subsections (a) and (b), and inserting the 
        following:
    ``(a) Common Financial Aid Form Development and Processing.--
            ``(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 to determine 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). The forms shall be made available to applicants in 
        both paper and electronic formats and shall be referred to 
        (except as otherwise provided in this subsection) as the `Free 
        Application for Federal Student Aid', or `FAFSA'.
            ``(2) Paper format.--
                    ``(A) In general.--Subject to subparagraph (C), 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 or do not wish to use the process 
                described in 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 under 
                        section 479(c).
                            ``(ii) Reduced data requirements.--The EZ 
                        FAFSA shall permit an applicant to submit for 
                        purposes of determining financial need and 
                        eligibility, only the data elements required to 
                        make a determination of student eligibility and 
                        whether the applicant meets the requirements of 
                        section 479(c).
                            ``(iii) State data.--The Secretary shall 
                        include on the EZ FAFSA such data items as may 
                        be necessary to award State financial 
                        assistance, as provided under paragraph (5), 
                        except the Secretary shall not include a 
                        State's data if that State does not permit its 
                        applicants for State assistance to use the EZ 
                        FAFSA.
                            ``(iv) Free availability and processing.--
                        The provisions of paragraph (6) shall apply to 
                        the EZ FAFSA, and the data collected by means 
                        of the EZ FAFSA shall be available to 
                        institutions of higher education, guaranty 
                        agencies, and States in accordance with 
                        paragraph (9).
                            ``(v) Testing.--The Secretary shall conduct 
                        appropriate field testing on the EZ FAFSA.
                    ``(C) Phasing out the full paper form for students 
                who do not meet the requirements of the ez fafsa.--
                            ``(i) In general.--The Secretary shall make 
                        all efforts to encourage all applicants to 
                        utilize the electronic forms described in 
                        paragraph (3).
                            ``(ii) Phaseout of full paper fafsa.--Not 
                        later than 5 years after the date of enactment 
                        of the Higher Education Amendments of 2005, to 
                        the extent practicable, the Secretary shall 
                        phase out the printing of the long paper form 
                        created under subparagraph (A) and used by 
                        applicants who do not meet the requirements of 
                        the EZ FAFSA described in subparagraph (B).
                            ``(iii) Availability of full paper fafsa.--
                                    ``(I) In general.--Both prior to 
                                and after the phaseout described in 
                                clause (ii), the Secretary shall 
                                maintain on the Internet printable 
                                versions of the paper forms described 
                                in subparagraphs (A) and (B).
                                    ``(II) Accessibility.--The 
                                printable versions described in 
                                subclause (I) shall be made easily 
                                accessible and downloadable to students 
                                on the same Web site used to provide 
                                students with the common electronic 
                                forms described in paragraph (3).
                                    ``(III) Submission of forms.--The 
                                Secretary shall conduct a study to 
                                determine the feasibility of using 
                                downloaded forms to ensure sufficient 
                                quality to meet the processing 
                                requirements of this section. Following 
                                the completion of the study, the 
                                Secretary shall enable, to the extent 
                                practicable, students to submit a form 
                                described in this clause that is 
                                downloaded from the Internet and 
                                printed, in order to meet the filing 
                                requirements of this section and to 
                                receive financial assistance under this 
                                title.
                            ``(iv) Use of savings.--
                                    ``(I) In general.--The Secretary 
                                shall utilize any realized savings 
                                accrued by phasing out the full paper 
                                FAFSA and moving more applicants to the 
                                common electronic forms, to improve 
                                access to the electronic forms for 
                                applicants meeting the requirements of 
                                section 479(c).
                                    ``(II) Report.--The Secretary shall 
                                report annually to the authorizing 
                                committees on--
                                            ``(aa) the steps taken to 
                                        improve access to the common 
                                        electronic forms for applicants 
                                        meeting the requirements of 
                                        section 479(c); and
                                            ``(bb) the phaseout of the 
                                        long common paper form 
                                        described in subparagraph (A).
            ``(3) Electronic format.--
                    ``(A) In general.--The Secretary shall produce, 
                distribute, and process common forms in electronic 
                format and make such forms available through a broadly 
                accessible website to meet the requirements of 
                paragraph (1). The Secretary shall develop common 
                electronic forms for applicants who do not meet the 
                requirements of subparagraph (B). 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 (5), except the 
                Secretary shall not require applicants to complete data 
                required by any State other than the applicant's State 
                of residence. The Secretary shall use all available 
                technology to ensure that a student using a common 
                electronic form answers only the minimum number of 
                questions necessary.
                    ``(B) Simplified electronic applications.--
                            ``(i) In general.--The Secretary shall 
                        develop and use a simplified electronic 
                        application form to be used by applicants 
                        meeting the requirements of section 479(c) and 
                        an additional, separate simplified electronic 
                        application form to be used by applicants 
                        meeting the requirements under section 479(b).
                            ``(ii) Reduced data requirements.--The 
                        simplified electronic application forms shall 
                        permit an applicant to submit for purposes of 
                        determining financial need and eligibility, 
                        only the data elements required to make a 
                        determination of student eligibility and 
                        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 (5), except the 
                        Secretary shall not require applicants to 
                        complete data required by any State other than 
                        the applicant's State of residence and shall 
                        not include a State's data if such State does 
                        not permit its applicants for State assistance 
                        to use the simplified electronic application 
                        form described in this subparagraph.
                            ``(iv) Free availability and processing.--
                        The provisions of paragraph (6) shall apply to 
                        the simplified electronic application forms, 
                        and 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.
                    ``(C) 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, a guaranty 
                agency, a State grant agency, a private computer 
                software provider, a consortium of such entities, or 
                such other entity as the Secretary may designate. Data 
                collected by 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.
                    ``(D) 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.
                    ``(E) Signature.--Notwithstanding any other 
                provision of this Act, the Secretary may permit an 
                electronic form under this paragraph to be submitted 
                without a signature, if a signature is subsequently 
                submitted by the applicant or if the applicant uses a 
                personal identification number provided by the 
                Secretary under subparagraph (F).
                    ``(F) Personal identification numbers authorized.--
                The Secretary is authorized to assign to applicants 
                personal identification numbers--
                            ``(i) to enable the applicants to use such 
                        numbers as a signature for purposes of 
                        completing a form under this paragraph; and
                            ``(ii) for any purpose determined by the 
                        Secretary to enable the Secretary to carry out 
                        this title.
            ``(4) Streamlined reapplication process.--
                    ``(A) In general.--The Secretary shall develop 
                streamlined reapplication forms and processes, 
                including both paper and electronic reapplication 
                processes, consistent with the requirements of this 
                subsection, for an applicant who applies for financial 
                assistance under this title in the next succeeding 
                academic year subsequent to an academic year in which 
                such applicant applied for financial assistance under 
                this title.
                    ``(B) Mechanisms for reapplication.--The Secretary 
                shall develop appropriate mechanisms to support 
                reapplication.
                    ``(C) Identification of updated data.--The 
                Secretary shall determine, in cooperation with States, 
                institutions of higher education, and agencies and 
                organizations involved in student financial assistance, 
                the data elements that can be updated from the previous 
                academic year's application.
                    ``(D) 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.
                    ``(E) 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.
            ``(5) State requirements.--
                    ``(A) In general.--Except as provided in paragraphs 
                (2)(B)(iii), (3)(A), and (3)(B)(iii), 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 need-based State aid. 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 
                (2)(B)(iii), (3)(A), and (3)(B)(iii). The number of 
                such data items shall not be less than the number 
                included on the form for the 2005-2006 award year 
                unless a State notifies the Secretary that the State no 
                longer requires those data items for the distribution 
                of State need-based aid.
                    ``(B) Annual review.--The Secretary shall conduct 
                an annual review process to determine which data items 
                the States require to award need-based State aid.
                    ``(C) Encourage use of forms.--The Secretary shall 
                encourage States to take such steps as are necessary to 
                encourage the use of simplified application forms, 
                including those described in paragraphs (2)(B) and 
                (3)(B), for applicants who meet the requirements of 
                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 States to inform the Secretary--
                            ``(i) if the State plans to use the FAFSA 
                        to collect data to determine eligibility for 
                        State need-based financial aid;
                            ``(ii) of the State-specific data that the 
                        State requires for delivery of State need-based 
                        financial aid; and
                            ``(iii) if the State agency is unable to 
                        permit applicants to utilize the simplified 
                        application forms described in paragraph (2)(B) 
                        or (3)(B).
                    ``(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 (2)(B) or (3)(B) for purposes 
                                of determining eligibility for State 
                                need-based financial aid; and
                                    ``(II) of the State-specific data 
                                that the State requires for delivery of 
                                State need-based financial aid.
                            ``(ii) Acceptance of forms.--If a State 
                        does not permit an applicant to file a form 
                        described in paragraph (2)(B) or (3)(B) for 
                        purposes of determining eligibility for State 
                        need-based financial aid, then the State shall 
                        notify the Secretary if it is not permitted to 
                        do so because of State law or agency policy. 
                        The notification shall include an 
                        acknowledgment that State-specific questions 
                        will not be included on a form described in 
                        paragraph (2)(B) or (3)(B).
                            ``(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 
                                (2)(B) and (3)(B); and
                                    ``(II) not require any resident of 
                                such State to complete any data 
                                previously required by that State under 
                                this section.
                    ``(F) Restriction.--The Secretary shall not require 
                applicants to complete any financial or non-financial 
                data that are not required by the applicant's State, 
                except as may be required for applicants who use the 
                paper forms described in subparagraphs (A) and (B) of 
                paragraph (2).
            ``(6) Charges to students and parents for use of forms 
        prohibited.--The common financial reporting forms prescribed by 
        the Secretary under this subsection shall be produced, 
        distributed, and processed by the Secretary, and no parent or 
        student shall be charged a fee by the Secretary, a contractor, 
        a third-party servicer or private software provider, or any 
        other public or private entity for the collection, processing, 
        or delivery of financial aid through the use of such forms. The 
        need and eligibility of a student for financial assistance 
        under parts A through E (other than under subpart 4 of part A) 
        may be determined only by using a form developed by the 
        Secretary pursuant to this subsection. No student may receive 
        financial assistance under parts A through E (other than under 
        subpart 4 of part A), except by use of a form developed by the 
        Secretary pursuant to this subsection. No data collected on a 
        paper or electronic form, worksheet, or other document for 
        which a fee is charged shall be used to complete the form 
        prescribed under this subsection. No person, commercial entity, 
        or other entity shall request, obtain, or utilize an 
        applicant's personal identification number assigned under 
        paragraph (3)(F) for purposes of submitting an application on 
        an applicant's behalf.
            ``(7) Application processing cycle.--The Secretary shall--
                    ``(A) enable students to submit forms created under 
                this subsection in order to meet the filing 
                requirements of this section and in order to receive 
                financial assistance from programs under this title; 
                and
                    ``(B) enable students to submit forms created under 
                this subsection and initiate the processing of such 
                forms under this subsection, as early as practicable 
                prior to January 1 of the student's planned year of 
                enrollment.
            ``(8) Early estimates.--The Secretary shall permit an 
        applicant to complete a form described in this subsection in 
        the years prior to enrollment in order to obtain from the 
        Secretary a nonbinding estimate of the applicant's expected 
        family contribution, as defined in section 473. Such applicant 
        shall be permitted to update information submitted on a form 
        described in this subsection using the process required under 
        paragraph (4).
            ``(9) Distribution of data.--Institutions of higher 
        education, guaranty agencies, and States shall receive, without 
        charge, the data collected by the Secretary using the form 
        developed pursuant to this subsection for the purposes of 
        processing loan applications and determining need and 
        eligibility for institutional and State financial aid awards. 
        Entities designated by institutions of higher education, 
        guaranty agencies, or States to receive such data shall be 
        subject to all the requirements of this section, unless such 
        requirements are waived by the Secretary.
            ``(10) Third party servicers and private software 
        providers.--To the extent practicable and in a timely manner, 
        the Secretary shall provide, to private organizations and 
        consortia that develop software used by institutions of higher 
        education for the administration of funds under this title, all 
        the necessary specifications that the organizations and 
        consortia must meet for the software the organizations and 
        consortia develop, produce, and distribute (including any 
        diskette, modem, or network communications) which are so used. 
        The specifications shall contain record layouts for required 
        data. The Secretary shall develop in advance of each processing 
        cycle an annual schedule for providing such specifications. The 
        Secretary, to the extent practicable, shall use means of 
        providing such specifications, including conferences and other 
        meetings, outreach, and technical support mechanisms (such as 
        training and printed reference materials). The Secretary shall, 
        from time to time, solicit from such organizations and 
        consortia means of improving the support provided by the 
        Secretary.
            ``(11) Parent's social security number and birth date.--The 
        Secretary is authorized to include on the form developed under 
        this subsection space for the social security number and birth 
        date of parents of dependent students seeking financial 
        assistance under this title.'';
            (2) by redesignating subsections (c) through (e) as 
        subsections (b) through (d), respectively; and
            (3) in subsection (c) (as redesignated by paragraph (2)), 
        by striking ``that is authorized'' and all that follows through 
        the period at the end and inserting ``or other appropriate 
        provider of technical assistance and information on 
        postsecondary educational services that is authorized under 
        section 663(a) of the Individuals with Disabilities Education 
        Act. Not later than 2 years after the date of enactment of the 
        Higher Education Amendments of 2005, the Secretary shall test 
        and implement, to the extent practicable, a toll-free telephone 
        based system to permit applicants who meet the requirements of 
        479(c) to submit an application over such system.''.

SEC. 484. STUDENT ELIGIBILITY.

    Section 484 (20 U.S.C. 1091) is amended--
            (1) in subsection (d), by adding at the end the following:
            ``(4) The student shall be determined by the institution of 
        higher education as having the ability to benefit from the 
        education or training offered by the institution of higher 
        education, upon satisfactory completion of 6 credit hours or 
        the equivalent coursework that are applicable toward a degree 
        or certificate offered by the institution of higher 
        education.'';
            (2) by striking subsection (l) and inserting the following:
    ``(l) Courses Offered Through Distance Education.--
            ``(1) Relation to correspondence courses.--
                    ``(A) In general.--A student enrolled in a course 
                of instruction at an institution of higher education 
                that is offered predominately through distance 
                education and leads to a recognized certificate, or 
                associate, baccalaureate, or graduate degree, conferred 
                by such institution, shall not be considered to be 
                enrolled in correspondence courses.
                    ``(B) Exception.--An institution of higher 
                education referred to in subparagraph (A) shall not 
                include an institution or school described in section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998.
            ``(2) Restriction or reductions of financial aid.--A 
        student's eligibility to receive grants, loans, or work 
        assistance under this title shall be reduced if a financial aid 
        officer determines under the discretionary authority provided 
        in section 479A that telecommunications instruction results in 
        a substantially reduced cost of attendance to such student.
            ``(3) Special rule.--For award years prior to the date of 
        enactment of this subsection, the Secretary shall not take any 
        compliance, disallowance, penalty, or other action against a 
        student or an eligible institution when such action arises out 
        of such institution's prior award of student assistance under 
        this title if the institution demonstrates to the satisfaction 
        of the Secretary that its course of instruction would have been 
        in conformance with the requirements of this subsection.
            ``(4) Definition.--In this subsection, the term `distance 
        education' has the meaning given the term in section 102.''; 
        and
            (3) in subsection (r)--
                    (A) in the matter preceding the table, by inserting 
                ``of a controlled substance, while such student is 
                enrolled in an institution of higher education and 
                receiving financial assistance under this title,'' 
                after ``the possession'';
                    (B) in the column heading of the first table, by 
                inserting ``while the student is enrolled in an 
                institution of higher education and receiving financial 
                assistance under this title'' after ``possession of a 
                controlled substance''; and
                    (C) by redesignating paragraph (3) as paragraph 
                (4); and
                    (D) by inserting after paragraph (2) the following:
            ``(2) Interaction with fafsa.--The Secretary shall not 
        require a student to provide information regarding the 
        student's possession of a controlled substance on the Free 
        Application for Federal Student Aid described in section 
        483(a).''.

SEC. 485. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.

    Section 484A (20 U.S.C. 1091a) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (2), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) in collecting any obligation arising from a loan made 
        under part E of this title, an institution of higher education 
        that has an agreement with the Secretary pursuant to section 
        463(a) shall not be subject to a defense raised by any borrower 
        based on a claim of infancy.''; and
            (2) by adding at the end the following:
    ``(d) Special Rule.--This section shall not apply in the case of a 
student who is deceased or to a deceased student's estate or the estate 
of such student's family. If a student is deceased, then the student's 
estate or the estate of the student's family shall not be required to 
repay any financial assistance under this title , including interest 
paid on the student's behalf, collection costs, or other charges 
specified in this title.''.

SEC. 486. INSTITUTIONAL REFUNDS.

    Section 484B (20 U.S.C. 1091B) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding clause (i) of paragraph 
                (2)(A), by striking ``a leave of'' and inserting ``1 or 
                more leaves of''; and
                    (B) in paragraph (3)(C)(i), by striking ``grant or 
                loan assistance under this title'' and inserting 
                ``grant assistance under subparts 1 and 3 of part A, or 
                loan assistance under parts B, D, and E,'';
            (2) in subsection (b), by adding at the end the following:
            ``(4) Time frame.--Not later than 45 days after the date of 
        an institution's determination that a student withdrew from the 
        institution, the institution shall--
                    ``(A) return the amount required under paragraph 
                (1);
                    ``(B) notify the student of the applicable 
                requirements regarding the overpayment of grant and 
                loan assistance and
                    ``(C) notify the student of the student's 
                eligibility for post-withdrawal disbursements.'';
            (3) in subsection (c)(2)--
                    (A) by striking the period at the end and inserting 
                ``; or'';
                    (B) by striking ``may determine the appropriate'' 
                and inserting ``may determine--
                    ``(A) the appropriate''; and
                    (C) by adding at the end the following:
                    ``(B) that the requirements of this section do not 
                apply to the student.''; and
            (4) in subsection (d)(2), by striking ``clock hours--'' and 
        all that follows through the period and inserting ``clock hours 
        scheduled to be completed by the student in that period as of 
        the day the student withdrew.''.

SEC. 487. INSTITUTIONAL AND FINANCIAL ASSISTANCE FOR STUDENTS.

    Section 485 (20 U.S.C. 1092) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (N), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (O), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(P) student body diversity at the institution, including 
        information on the percentage of enrolled, full-time students 
        who are--
                    ``(i) male;
                    ``(ii) female;
                    ``(iii) from a low-income background; and
                    ``(iv) a self-identified member of a major racial 
                or ethnic group.'';
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) For purposes of this section, institutions may--
                    ``(A) exclude from the information disclosed in 
                accordance with subparagraph (L) of paragraph (1) the 
                completion or graduation rates of students who leave 
                school to serve in the Armed Forces, on official church 
                missions, or with a recognized foreign aid service of 
                the Federal Government; or
                    ``(B) in cases where 20 percent or more of the 
                students described in subparagraph (A) are excluded in 
                a reporting year, include in such information on the 
                completion or graduation rates of students described in 
                subparagraph (A) by excluding from the calculation 
                described in paragraph (3) the time period such 
                students were not enrolled due to their service in the 
                Armed Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government.''; and
                    (C) by adding at the end the following:
    ``(7) The information disclosed under subparagraph (L) of paragraph 
(1), or reported under subsection (e), shall include information 
disaggregated by gender, by each major racial and ethnic subgroup, and 
by low-income background status as measured by Federal Pell Grant 
eligibility, if the number of students in such subgroup or with such 
status is sufficient to yield statistically reliable information and 
reporting would not reveal personally identifiable information about an 
individual student. If such number is not sufficient for such purposes, 
then the institution shall note that the institution enrolled too few 
of such students to so disclose or report with confidence and 
confidentiality.'';
            (2) in subsection (b), by adding at the end the following:
            ``(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 general effects 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.'';
            (3) in subsection (d)(2)--
                    (A) by inserting ``grant assistance, as well as 
                State'' after ``describing State''; and
                    (B) by inserting ``and other means, including 
                through the Internet'' before the period at the end;
            (4) in subsection (e), by striking paragraph (3) and 
        inserting the following:
            ``(3) For purposes of this subsection, institutions may--
                    ``(A) exclude from the reporting requirements under 
                paragraphs (1) and (2) the completion or graduation 
                rates of students and student athletes who leave school 
                to serve in the Armed Forces, on official church 
                missions, or with a recognized foreign aid service of 
                the Federal Government; or
                    ``(B) in cases where 20 percent or more of the 
                students described in subparagraph (A) are excluded in 
                a reporting year, include in such information on the 
                completion or graduation rates of students described in 
                subparagraph (A) by excluding from the calculation 
                described in subsection (a)(3) the time period such 
                students were not enrolled due to their service in the 
                Armed Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government.'';
            (5) in the matter preceding subparagraph (A) of subsection 
        (f)(1), by inserting ``, other than a foreign institution of 
        higher education,'' after ``under this title''; and
            (6) by adding at the end the following:
    ``(h) Transfer of Credit Policies.--
            ``(1) Disclosure.--Each institution of higher education 
        participating in any program under this title shall publicly 
        disclose in a readable and comprehensible manner the 
        institution's transfer of credit policies which shall include a 
        statement of the institution's current transfer of credit 
        policies that includes, at a minimum--
                    ``(A) a statement that transfer of credit shall not 
                be denied solely on the basis of the agency or 
                association that accredited such other institution of 
                higher education, if that agency or association is 
                recognized by the Secretary pursuant to section 496 to 
                be a reliable authority as to the quality of the 
                education or training offered; and
                    ``(B) a list of institutions of higher education 
                with which the institution has established an 
                articulation agreement.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to--
                    ``(A) authorize an officer or employee of the 
                Department to exercise any direction, supervision, or 
                control over the curriculum, program of instruction, 
                administration, or personnel of any institution of 
                higher education, or over any accrediting agency or 
                association;
                    ``(B) limit the application of the General 
                Education Provisions Act; or
                    ``(C) create any legally enforceable right on the 
                part of a student to require an institution of higher 
                education to accept a transfer of credit from another 
                institution.''.

SEC. 488. NATIONAL STUDENT LOAN DATA SYSTEM.

    Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
            (1) by redesignating paragraphs (6) through (10) as 
        paragraphs (7) through (11), respectively;
            (2) in paragraph (5) (as added by Public Law 101-610), by 
        striking ``effectiveness.'' and inserting ``effectiveness;''; 
        and
            (3) by redesignating paragraph (5) (as added by Public Law 
        101-234) as paragraph (6).

SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY AND 
              DEMONSTRATION PROGRAM TO PROVIDE EARLY ESTIMATES AND 
              EARLY AWARDS OF FINANCIAL AID.

    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 485C (20 U.S.C. 1092c) the following:

``SEC. 485D. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY AND 
              DEMONSTRATION PROGRAM TO PROVIDE EARLY ESTIMATES AND 
              EARLY AWARDS OF FINANCIAL AID.

    ``(a) In General.--The Secretary shall implement, in cooperation 
with States, institutions of higher education, secondary schools, 
middle schools, early intervention and outreach programs under this 
title, other agencies and organizations involved in student financial 
assistance and college access, public libraries, community centers, 
employers, and businesses, a comprehensive system of early financial 
aid information in order to provide students and families with early 
information about financial aid and early estimates of such students' 
eligibility for financial aid from multiple sources. Such system shall 
include the activities described in subsections (b) and (c).
    ``(b) Communication of Availability of Aid and Aid Eligibility.--
            ``(1) Students who receive benefits.--The Secretary shall--
                    ``(A) make special efforts to notify students who 
                receive or are eligible to receive benefits under 
                Federal means-tested benefit programs (including the 
                school lunch program established under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 1751 et 
                seq.), the food stamp program under the Food Stamp Act 
                of 1977 (7 U.S.C. 2011 et seq.), and other such 
                programs as determined by the Secretary) of such 
                students' potential eligibility for a maximum Federal 
                Pell Grant under subpart 1 of part A; and
                    ``(B) disseminate such informational materials as 
                the Secretary determines necessary.
            ``(2) Middle school students.--The Secretary, in 
        cooperation with States, institutions of higher education, 
        other organizations involved in college access and student 
        financial aid, middle schools, and programs under this title 
        that serve middle school students, shall make special efforts 
        to notify students and their parents of the availability of 
        financial aid under this title and, in accordance with 
        subsection (c), shall provide nonbinding estimates of grant, 
        work-study, and loan aid that an individual may be eligible for 
        under this title upon completion of an application form under 
        section 483(a). The Secretary shall ensure that such 
        information is as accurate as possible and that such 
        information is provided in an age-appropriate format using 
        dissemination mechanisms suitable for students in middle 
        school.
            ``(3) Secondary school students.--The Secretary, in 
        cooperation with States, institutions of higher education, 
        other organizations involved in college access and student 
        financial aid, secondary schools, and programs under this title 
        that serve secondary school students, shall make special 
        efforts to notify students in secondary school and their 
        parents, as early as possible but not later than such students' 
        junior year of secondary school, of the availability of 
        financial aid under this title and, in accordance with 
        subsection (c), shall provide nonbinding estimates of the 
        amounts of grant, work-study, and loan aid that an individual 
        may be eligible for under this title upon completion of an 
        application form under section 483(a). The Secretary shall 
        ensure that such information is as accurate as possible and 
        that such information is provided in an age-appropriate format 
        using dissemination mechanisms suitable for students in 
        secondary school.
            ``(4) Adult learners.--The Secretary, in cooperation with 
        States, institutions of higher education, other organizations 
        involved in college access and student financial aid, 
        employers, workforce investment boards and public libraries, 
        shall make special efforts to provide individuals who would 
        qualify as independent students, as defined in section 480(d), 
        with information regarding the availability of financial aid 
        under this title and, in accordance with subsection (c), with 
        nonbinding estimates of the amounts of grant, work-study, and 
        loan aid that an individual may be eligible for under this 
        title upon completion of an application form under section 
        483(a). The Secretary shall ensure that such information--
                    ``(A) is as accurate as possible;
                    ``(B) includes specific information regarding the 
                availability of financial aid for students qualified as 
                independent students, as defined in section 480(d); and
                    ``(C) uses dissemination mechanisms suitable for 
                adult learners.
            ``(5) Public awareness campaign.--Not later than 2 years 
        after the date of enactment of the Higher Education Amendments 
        of 2005, the Secretary, in coordination with States, 
        institutions of higher education, early intervention and 
        outreach programs under this title, other agencies and 
        organizations involved in student financial aid, local 
        educational agencies, public libraries, community centers, 
        businesses, employers, employment services, workforce 
        investment boards, and movie theaters, shall implement a public 
        awareness campaign in order to increase national awareness 
        regarding the availability of financial aid under this title. 
        The public awareness campaign shall disseminate accurate 
        information regarding the availability of financial aid under 
        this title and shall be implemented, to the extent practicable, 
        using a variety of media, including print, television, radio 
        and the Internet. The Secretary shall design and implement the 
        public awareness campaign based upon relevant independent 
        research and the information and dissemination strategies found 
        most effective in implementing paragraphs (1) through (4).
    ``(c) Availability of Nonbinding Estimates of Federal Financial Aid 
Eligibility.--
            ``(1) In general.--The Secretary, in cooperation with 
        States, institutions of higher education, and other agencies 
        and organizations involved in student financial aid, shall 
        provide, via a printed form and the Internet or other 
        electronic means, the capability for individuals to determine 
        easily, by entering relevant data, nonbinding estimates of 
        amounts of grant and loan aid an individual may be eligible for 
        under this title upon completion and processing of an 
        application and enrollment in an institution of higher 
        education.
            ``(2) Data elements.--The Secretary, in cooperation with 
        States, institutions of higher education, and other agencies 
        and organizations involved in student financial aid, shall 
        determine the data elements that are necessary to create a 
        simplified form that individuals can use to obtain easily 
        nonbinding estimates of the amounts of grant and loan aid an 
        individual may be eligible for under this title.
            ``(3) Qualification to use simplified application.--The 
        capability provided under this paragraph shall include the 
        capability to determine whether the individual is eligible to 
        submit a simplified application form under paragraph (2)(B) or 
        (3)(B) of section 483(a).''.

SEC. 490. COLLEGE ACCESS INITIATIVE.

    Part G of title IV (20 U.S.C. 1088 et seq.) is further amended by 
inserting after section 485D (as added by section 489) the following:

``SEC. 485E. 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 Internet 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 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 that is limited or related to subsection (a). The 
        guaranty agency shall publicize such information and coordinate 
        such activities with other entities that 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 Fund established 
        pursuant to section 422B and to the extent funds remain, from 
        earnings on the restricted account established pursuant to 
        section 422(h)(4).
            ``(4) Rule of construction.--Nothing in this subsection 
        shall require a guaranty agency to duplicate any efforts 
        currently underway that meet the requirements of this 
        subsection.
    ``(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.--Not later than 270 days after the date of 
        enactment of the Higher Education Amendments 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. 491. PROGRAM PARTICIPATION AGREEMENTS.

    Section 487 (20 U.S.C. 1094) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (23), by adding at the end the 
                following:
                    ``(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, if such information is 
                in an electronic message devoted solely to voter 
                registration.''; and
                    (B) by adding at the end the following:
            ``(24) The institution will, as calculated in accordance 
        with subsection (f)(1), have not less than 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) by redesignating subsections (d) and (e) as subsection 
        (e) and (f), respectively;
            (3) by inserting after subsection (c) the following:
    ``(d) Institutional Requirements for Teach-Outs.--
            ``(1) In general.--In the event the Secretary initiates the 
        limitation, suspension, or termination of the participation of 
        an institution of higher education in any program under this 
        title under the authority of subsection (c)(1)(F) or initiates 
        an emergency action for termination under the authority of 
        subsection (c)(1)(G) and its prescribed regulations, the 
        Secretary shall require that institution to prepare a teach-out 
        plan for submission to the institution's accrediting agency or 
        association in compliance with section 496(c)(4), the 
        Secretary's regulations on teach-out plans, and the standards 
        of the institution's accrediting agency or association.
            ``(2) Teach-out plan defined.--In this subsection, the term 
        `teach-out plan' means a written plan that provides for the 
        equitable treatment of students if an institution of higher 
        education ceases to operate before all students have completed 
        their enrollment at the institution, and may include, if 
        required by the institution's accrediting agency or 
        association, an agreement between institutions for such a 
        teach-out plan.''; and
            (4) by adding at the end the following:
    ``(g) Implementation of Nontitle 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 as from sources of funds other than funds 
        provided under this title:
                    ``(A) Funds used by students from sources other 
                than funds received under this title to pay tuition, 
                fees, and other institutional charges to the 
                institution, provided the institution can reasonably 
                demonstrate that such funds were used for such 
                purposes.
                    ``(B) Funds used by the institution to satisfy 
                matching-fund requirements for programs under this 
                title.
                    ``(C) Funds used by a student from savings plans 
                for educational expenses established by or on behalf of 
                the student and which qualify for special tax treatment 
                under 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, to the 
                institution for an education or training program that 
                is not eligible for funds under this title, provided 
                that the program is approved or licensed by the 
                appropriate State agency or an accrediting agency 
                recognized by the Secretary.
                    ``(E) Funds generated by the institution from 
                institutional activities that are necessary for the 
                education and training of the institution's students, 
                if such activities are--
                            ``(i) conducted on campus or at a facility 
                        under the control of the institution;
                            ``(ii) performed under the supervision of a 
                        member of the institution's faculty; and
                            ``(iii) required to be performed by all 
                        students in a specific educational program at 
                        the institution.
                    ``(F) Institutional aid, as follows:
                            ``(i) In the case of loans made by the 
                        institution, only the amount of loan repayments 
                        received by the institution during the fiscal 
                        year for which the determination is made.
                            ``(ii) In the case of scholarships provided 
                        by the institution, only those scholarship 
                        funds provided by the institution that are--
                                    ``(I) in the form of monetary aid 
                                or tuition discounts based upon the 
                                academic achievements or financial need 
                                of students; and
                                    ``(II) disbursed during the fiscal 
                                year for which the determination is 
                                made from an established restricted 
                                account and only to the extent that the 
                                funds in that account represent 
                                designated funds from an outside source 
                                or income earned on those funds.
                            ``(iii) In the case of tuition discounts, 
                        only those tuition discounts based upon the 
                        academic achievement or financial need of 
                        students.
            ``(2) Sanctions.--
                    ``(A) Failure to meet requirement for 1 year.--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 1 or both of the following 
                sanctions on the institution:
                            ``(i) 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).
                            ``(ii) 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).
                    ``(B) Failure to meet requirement for 3 years.--An 
                institution that fails to meet the requirements of 
                subsection (a)(24) for 2 consecutive years shall be 
                ineligible to participate in the programs authorized 
                under this title.
            ``(3) Public availability of information.--The Secretary 
        shall make publicly available, through the means described in 
        subsection (b) of section 131, 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 such subsection (a)(24).''.

SEC. 492. REGULATORY RELIEF AND IMPROVEMENT.

    Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
            (1) in paragraph (1)-
                    (A) by striking ``1998'' and inserting ``2005'' ; 
                and
                    (B) by striking ``1999'' and inserting ``2006''; 
                and
            (2) by striking the matter preceding paragraph (2)(A) and 
        inserting the following:
            ``(2) Report.--The Secretary shall review and evaluate the 
        experience of institutions participating as experimental sites 
        and shall, on a biennial basis, submit a report based on the 
        review and evaluation to the authorizing committees. Such 
        report shall include--''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) by striking ``Upon the submission of 
                        the report required by paragraph (2), the'' and 
                        inserting ``The''; and
                            (ii) by inserting ``periodically'' after 
                        ``authorized to'';
                    (B) by striking subparagraph (B);
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
                    (D) in subparagraph (B) (as redesignated by 
                subparagraph (C))--
                            (i) by inserting ``, including requirements 
                        related to the award process and disbursement 
                        of student financial aid (such as innovative 
                        delivery systems for modular or compressed 
                        courses, or other innovative systems), 
                        verification of student financial aid 
                        application data, entrance and exit interviews, 
                        or other management procedures or processes as 
                        determined in the negotiated rulemaking process 
                        under section 492,'' after ``requirements in 
                        this title''; and
                            (ii) by inserting ``(other than an award 
                        rule related to an experiment in modular or 
                        compressed schedules)'' after ``award rules''; 
                        and
                            (iii) by inserting ``unless the waiver of 
                        such provisions is authorized by another 
                        provision under this title'' before the period 
                        at the end.

SEC. 493. TRANSFER OF ALLOTMENTS.

    Section 488 (20 U.S.C. 1095) is amended in the first sentence--
            (1) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (2), by striking ``413D.'' and inserting 
        ``413D; and''; and
            (3) by adding at the end ``(3) transfer 25 percent of the 
        institution's allotment under section 413D to the institution's 
        allotment under section 442.''.

SEC. 494. WAGE GARNISHMENT REQUIREMENT.

    Section 488A(a)(1) (20 U.S.C. 1095a(a)(1)) is amended by striking 
``10 percent'' and inserting ``15 percent''.

SEC. 495. PURPOSE OF ADMINISTRATIVE PAYMENTS.

    Section 489(b) (20 U.S.C. 1096(b)) is amended by striking 
``offsetting the administrative costs of'' and inserting 
``administering''.

SEC. 496. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

    Section 491 (20 U.S.C. 1098) is amended--
            (1) in subsection (a)(2)--
                    (A) in subparagraph (B), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (C), by striking the period and 
                inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(D) to provide knowledge and understanding of 
                early intervention programs, and to make 
                recommendations that will result in early awareness by 
                low- and moderate-income students and families--
                            ``(i) of their eligibility for assistance 
                        under this title; and
                            ``(ii) to the extent practicable, of their 
                        eligibility for other forms of State and 
                        institutional need-based student assistance; 
                        and
                    ``(E) to make recommendations that will expand and 
                improve partnerships among the Federal Government, 
                States, institutions of higher education, and private 
                entities to increase the awareness and the total amount 
                of need-based student assistance available to low- and 
                moderate-income students.'';
            (2) in subsection (d)(6), by striking ``, but nothing'' and 
        all that follows through ``or analyses'';
            (3) in subsection (j)--
                    (A) in paragraph (1)--
                            (i) by inserting ``and simplification'' 
                        after ``modernization'' each place the term 
                        appears; and
                            (ii) by striking ``including'' and all that 
                        follows through ``Department,''; and
                    (B) by striking paragraphs (4) and (5) and 
                inserting the following:
            ``(4) conduct a review and analysis of regulations in 
        accordance with subsection (l); and
            ``(5) conduct a study in accordance with subsection (m).'';
            (4) in subsection (k), by striking ``2004'' and inserting 
        ``2010''; and
            (5) by adding at the end the following:
    ``(l) Review and Analysis of Regulations.--
            ``(1) Recommendations.--The Advisory Committee shall make 
        recommendations to the Secretary for consideration of future 
        legislative action regarding redundant or outdated regulations 
        under this title, consistent with the Secretary's requirements 
        under section 498B.
            ``(2) Review and analysis of regulations.--The Advisory 
        Committee shall conduct a review and analysis of the 
        regulations issued under this title that are in effect at the 
        time of the review and that apply to the operations or 
        activities of participants in the programs assisted under this 
        title. The review and analysis may include a determination of 
        whether the regulation is duplicative, is no longer necessary, 
        is inconsistent with other Federal requirements, or is overly 
        burdensome. In conducting the review, the Advisory Committee 
        shall pay specific attention to evaluating ways in which 
        regulations under this title affecting institutions of higher 
        education (other than institutions described in section 
        102(a)(1)(C)), that have received in each of the 2 most recent 
        award years prior to the date of enactment of the Higher 
        Education Amendments of 2005 less than $200,000 in funds 
        through this title, may be improved, streamlined, or 
        eliminated.
            ``(3) Consultation.--
                    ``(A) In general.--In carrying out the review and 
                analysis under paragraph (2), the Advisory Committee 
                shall consult with the Secretary, relevant 
                representatives of institutions of higher education, 
                and individuals who have expertise and experience with 
                the regulations issued under this title, in accordance 
                with subparagraph (B).
                    ``(B) Review panels.--The Advisory Committee shall 
                convene not less than 2 review panels of 
                representatives of the groups involved in student 
                financial assistance programs under this title who have 
                experience and expertise in the regulations issued 
                under this title to review the regulations under this 
                title, and to provide recommendations to the Advisory 
                Committee with respect to the review and analysis under 
                paragraph (2). The panels shall be made up of experts 
                in areas such as the operations of the financial 
                assistance programs, the institutional eligibility 
                requirements for the financial assistance programs, 
                regulations not directly related to the operations or 
                the institutional eligibility requirements of the 
                financial assistance programs, and regulations for 
                dissemination of information to students about the 
                financial assistance programs.
            ``(4) Reports to congress.--The Advisory Committee shall 
        submit, not later than 2 years after the completion of the 
        negotiated rulemaking process required under section 492 
        resulting from the amendments to this Act made by the Higher 
        Education Amendments of 2005, a report to the authorizing 
        committees and the Secretary detailing the expert panels' 
        findings and recommendations with respect to the review and 
        analysis under paragraph (2).
            ``(5) Additional support.--The Secretary and the Inspector 
        General of the Department shall provide such assistance and 
        resources to the Advisory Committee as the Secretary and 
        Inspector General determine are necessary to conduct the review 
        required by this subsection.
    ``(m) Study of Innovative Pathways to Baccalaureate Degree 
Attainment.--
            ``(1) Study required.--The Advisory Committee shall conduct 
        a study of the feasibility of increasing baccalaureate degree 
        attainment rates by reducing the costs and financial barriers 
        to attaining a baccalaureate degree through innovative 
        programs.
            ``(2) Scope of study.--The Advisory Committee shall examine 
        new and existing programs that promote baccalaureate degree 
        attainment through innovative ways, such as dual or concurrent 
        enrollment programs, changes made to the Federal Pell Grant 
        program, simplification of the needs analysis process, 
        compressed or modular scheduling, articulation agreements, and 
        programs that allow 2-year institutions of higher education to 
        offer baccalaureate degrees.
            ``(3) Required aspects of the study.--In performing the 
        study described in this subsection, the Advisory Committee 
        shall examine the following aspects of such innovative 
        programs:
                    ``(A) The impact of such programs on baccalaureate 
                attainment rates.
                    ``(B) The degree to which a student's total cost of 
                attaining a baccalaureate degree can be reduced by such 
                programs.
                    ``(C) The ways in which low- and moderate-income 
                students can be specifically targeted by such programs.
                    ``(D) The ways in which nontraditional students can 
                be specifically targeted by such programs.
                    ``(E) The cost-effectiveness for the Federal 
                Government, States, and institutions of higher 
                education to implement such programs.
            ``(4) Consultation.--
                    ``(A) In general.--In performing the study 
                described in this subsection the Advisory Committee 
                shall consult with a broad range of interested parties 
                in higher education, including parents, students, 
                appropriate representatives of secondary schools and 
                institutions of higher education, appropriate State 
                administrators, administrators of dual enrollment 
                programs, and appropriate officials from the 
                Department.
                    ``(B) Congressional consultation.--The Advisory 
                Committee shall consult on a regular basis with the 
                authorizing committees in carrying out the study 
                required by this section.
            ``(5) Reports to congress.--
                    ``(A) Interim report.--The Advisory Committee shall 
                prepare and submit to the authorizing committees and 
                the Secretary 1 interim report, not later than 1 year 
                after the date of enactment of the Higher Education 
                Amendments of 2005, describing the progress that has 
                been made in conducting the study required by this 
                subsection and any preliminary findings on the topics 
                identified under paragraph (2).
                    ``(B) Final report.--The Advisory Committee shall, 
                not later than 3 years after the date of enactment of 
                the Higher Education Amendments of 2005, prepare and 
                submit to the authorizing committees and the Secretary 
                a final report on the study, including recommendations 
                for legislative, regulatory, and administrative changes 
                based on findings related to the topics identified 
                under paragraph (2).''.

SEC. 497. REGIONAL MEETINGS.

    Section 492(a)(1) (20 U.S.C. 1098a(a)(1)) is amended by inserting 
``State student grant agencies,'' after ``institutions of higher 
education,''.

SEC. 498. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.

    (a) Repeal.--Section 493A (20 U.S.C. 1098c) is repealed.
    (b) Redesignation.--Section 493B (20 U.S.C. 1098d) is redesignated 
as section 493A.

                       PART H--PROGRAM INTEGRITY

SEC. 499. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

    Section 496 (200 U.S.C. 1099b) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (4) and inserting the 
                following:
            ``(4)(A) such agency or association consistently applies 
        and enforces standards that respect the stated mission of the 
        institution of higher education, including religious missions, 
        and that ensure that the courses or programs of instruction, 
        training, or study offered by the institution of higher 
        education, including distance education courses or programs, 
        are of sufficient quality to achieve, for the duration of the 
        accreditation period, the stated objective for which the 
        courses or the programs are offered; and
            ``(B) if such agency or association 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 agency or association's standards 
                effectively address the quality of an institution's 
                distance education in the areas identified in section 
                496(a)(5), 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 an 
                institution that offers distance education to have 
                processes through which the institution establishes 
                that the student who registers in a distance education 
                course or program is the same student who participates, 
                completes and receives the academic credit;'';
                    (B) in paragraph (5), by striking subparagraph (A) 
                and inserting the following:
                    ``(A) success with respect to student achievement 
                in relation to the institution's mission, including--
                            ``(i) consideration of student academic 
                        achievement as determined by the institution;
                            ``(ii) student retention;
                            ``(iii) course and program completion;
                            ``(iv) as appropriate, State licensing 
                        examinations;
                            ``(v) as appropriate, job placement rates; 
                        and
                            ``(vi) as appropriate, other student 
                        performance information selected by the 
                        institution, particularly that information used 
                        by the institution to evaluate or strengthen 
                        its programs;'';
                    (C) 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 which comply 
        with due process procedures that provide for--
                    ``(A) adequate specification of requirements and 
                deficiencies at the institution of higher education or 
                program examined;
                    ``(B) an opportunity for a written response by any 
                such institution to be included in the evaluation and 
                withdrawal proceedings prior to final action;
                    ``(C) upon the written request of an institution, 
                an opportunity for the institution to appeal any 
                adverse action, including denial, withdrawal, 
                suspension, or termination of accreditation, or 
                placement on probation of an institution, 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 
                        policy; and
                    ``(D) the right to representation by counsel for 
                such an institution;''; and
                    (D) by striking paragraph (8) and inserting the 
                following:
            ``(8) such agency or association shall make available to 
        the public and the State licensing or authorizing agency, and 
        submit to the Secretary, a summary of agency or association 
        actions, including--
                    ``(A) the award of accreditation or reaccreditation 
                of an institution;
                    ``(B) final denial, withdrawal, suspension, or 
                termination of accreditation, or placement on probation 
                of an institution, and any findings made in connection 
                with the action taken, together with the official 
                comments of the affected institution; and
                    ``(C) any other adverse action taken with respect 
                to an institution.''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by inserting ``, including 
                those regarding distance education'' after ``their 
                responsibilities'';
                    (B) by redesignating paragraphs (2) through (6) as 
                paragraphs (5) through (9);
                    (C) by inserting after paragraph (1) (as amended by 
                subparagraph (A)) the following:
            ``(2) ensures that the agency or association's on-site 
        evaluation for accreditation or reaccreditation includes review 
        of the Federally required information the institution or 
        program provides its current and prospective students;
            ``(3) monitors the growth of programs at institutions that 
        are experiencing significant enrollment growth;
            ``(4) requires an institution to submit a teach-out plan 
        for approval to the accrediting agency upon the occurrence of 
        any of the following events:
                    ``(A) The Department notifies the accrediting 
                agency of an action against the institution pursuant to 
                section 487(d).
                    ``(B) The accrediting agency acts to withdraw, 
                terminate, or suspend the accreditation of an 
                institution.
                    ``(C) The institution notifies the accrediting 
                agency that the institution intends to cease 
                operations.'';
                    (D) in paragraph (8) (as redesignated by 
                subparagraph (B)), by striking ``and'' after the 
                semicolon;
                    (E) in subparagraph (9) (as redesignated by 
                subparagraph (B)), by striking the period and inserting 
                ``; and''; and
                    (F) by adding at the end the following:
            ``(10) confirms, as a part of the agency or association's 
        review for accreditation or reaccreditation, that the 
        institution has transfer of credit policies--
                    ``(A) that are publicly disclosed;
                    ``(B) that do not deny transfer of credit based 
                solely on the accreditation of the sending institution, 
                if the agency or association accrediting the sending 
                institution is recognized by the Secretary pursuant to 
                this section; and
                    ``(C) in which acceptance or denial of transfer of 
                credit is decided according to criteria established in 
                guidelines developed by the institution's admissions 
                committee.''.

SEC. 499A. ADMINISTRATIVE CAPACITY STANDARD.

    Section 498 (20 U.S.C. 1099c) is amended--
            (1) in subsection (d)(1)(B), by inserting ``and'' after the 
        semicolon; and
            (2) by adding at the end the following:
    ``(k) Treatment of Teach-Outs at Additional Locations.--
            ``(1) In general.--A location of a closed institution of 
        higher education shall be eligible as an additional location of 
        an eligible institution of higher education, as defined 
        pursuant to regulations of the Secretary, for the purposes of a 
        teach-out, if such teach-out has been approved by the 
        institution's accrediting agency.
            ``(2) Special rule.--An institution of higher education 
        that conducts a teach-out through the establishment of an 
        additional location described in paragraph (1) shall be 
        permitted to establish a permanent additional location at a 
        closed institution and shall not be required--
                    ``(A) to meet the requirements of sections 
                102(b)(1)(E) and 102(c)(1)(C) for such additional 
                location; or
                    ``(B) to assume the liabilities of the closed 
                institution.''.

SEC. 499B. PROGRAM REVIEW AND DATA.

    Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--
            (1) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (5) by striking the period and inserting a 
        semicolon; and
            (3) by adding at the end the following:
            ``(6) provide to an institution of higher education an 
        adequate opportunity to review and respond to any program 
        review report or audit finding, and relevant materials related 
        to the report or finding, before any final program review or 
        audit determination is reached;
            ``(7) review and take into consideration an institution of 
        higher education's response in any final program review or 
        audit determination; and
            ``(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 is issued, 
        other than to the extent required to comply with paragraph (5), 
        except that the Secretary shall promptly disclose any and all 
        program review reports and audit findings to the institution of 
        higher education under review.''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEFINITIONS.

    Section 502(a) (20 U.S.C. 1101a(a)) is amended--
            (1) in paragraph (5)--
                    (A) in subparagraph (A), by inserting ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (C); and
            (2) by striking paragraph (7).

SEC. 502. AUTHORIZED ACTIVITIES.

    Section 503(b) (20 U.S.C. 1101b(b)) is amended--
            (1) by redesignating paragraphs (6) through (14) as 
        paragraphs (8) through (16), respectively;
            (2) in paragraph (5), by inserting ``, including 
        innovative, customized remedial education and English language 
        instruction courses designed to help retain students and move 
        the students rapidly into core courses and through program 
        completion'' before the period at the end; and
            (3) by inserting after paragraph (5) the following:
            ``(6) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' parents.
            ``(7) Articulation agreements and student support programs 
        designed to facilitate the transfer from 2-year to 4-year 
        institutions.''.

SEC. 503. DURATION OF GRANT.

    Section 504(a) (20 U.S.C. 1101c(a)) is amended to read as follows:
    ``(a) Award Period.--The Secretary may award a grant to a Hispanic-
serving institution under this title for 5 years.''.

SEC. 504. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.

    (a) Establishment of Program.--Title V (20 U.S.C. 1101 et seq.) 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 the following:

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

``SEC. 511. PROGRAM AUTHORITY AND ELIGIBILITY.

    ``(a) Program Authorized.--Subject to the availability of funds 
appropriated to carry out this part, the Secretary shall award grants, 
on a competitive basis, to eligible institutions to enable the eligible 
institutions to carry out the authorized activities described in 
section 512.
    ``(b) Eligibility.--For the purposes of this part, an `eligible 
institution' means an institution of higher education that--
            ``(1) is a Hispanic-serving institution (as defined in 
        section 502); and
            ``(2) offers a postbaccalaureate certificate or degree 
        granting program.

``SEC. 512. AUTHORIZED ACTIVITIES.

    ``Grants awarded under this part shall be used for 1 or more of the 
following activities:
            ``(1) Purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, including 
        instructional and research purposes.
            ``(2) Construction, maintenance, renovation, and 
        improvement in classroom, library, laboratory, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services.
            ``(3) Purchase of library books, periodicals, technical and 
        other scientific journals, microfilm, microfiche, and other 
        educational materials, including telecommunications program 
        materials.
            ``(4) Support for needy postbaccalaureate students, 
        including outreach, academic support services, mentoring, 
        scholarships, fellowships, and other financial assistance, to 
        permit the enrollment of such students in postbaccalaureate 
        certificate and degree granting programs.
            ``(5) Support of faculty exchanges, faculty development, 
        faculty research, curriculum development, and academic 
        instruction.
            ``(6) Creating or improving facilities for Internet or 
        other distance learning academic instruction capabilities, 
        including purchase or rental of telecommunications technology 
        equipment or services.
            ``(7) Collaboration with other institutions of higher 
        education to expand postbaccalaureate certificate and degree 
        offerings.
            ``(8) Other activities proposed in the application 
        submitted pursuant to section 513 that are approved by the 
        Secretary as part of the review and acceptance of such 
        application.

``SEC. 513. 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 the Secretary may require. Such application 
shall demonstrate how the grant funds will be used to improve 
postbaccalaureate education opportunities for Hispanic and low-income 
students and will lead to such students' greater financial 
independence.
    ``(b) Duration.--Grants under this part shall be awarded for a 
period not to exceed 5 years.
    ``(c) Limitation.--The Secretary may not award more than 1 grant 
under this part in any fiscal year to any Hispanic-serving 
institution.''.

SEC. 505. APPLICATIONS.

    Section 521(b)(1)(A) (as redesignated by section 504(a)(2)) (20 
U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection (b)'' and 
inserting ``subsection (c)''.

SEC. 506. COOPERATIVE ARRANGEMENTS.

    Section 524(a) (as redesignated by section 504(a)(2)) (20 U.S.C. 
1103c(a)) is amended by striking ``section 503'' and inserting 
``sections 503 and 512''.

SEC. 507. AUTHORIZATION OF APPROPRIATIONS.

    Section 528(a) (as redesignated by section 504(a)(2)) (20 U.S.C. 
1103g(a)) is amended--
            (1) by inserting ``part A of'' after ``carry out'';
            (2) by striking ``$62,500,000 for fiscal year 1999'' and 
        all that follows through the period and inserting ``such sums 
        as may be necessary for fiscal year 2006 and each of the 5 
        succeeding fiscal years.'';
            (3) by striking ``(a) Authorizations.--There are'' and 
        inserting the following:
    ``(a) Authorizations.--
            ``(1) Part a.--There are''; and
            (4) by adding at the end the following:
            ``(2) Part b.--There are authorized to be appropriated to 
        carry out part B of this title such sums as may be necessary 
        for fiscal year 2006 and each of the 5 succeeding fiscal 
        years.''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

SEC. 601. FINDINGS.

    Section 601 (20 U.S.C. 1121) is amended--
            (1) in the section heading, by striking ``and purposes'' 
        and inserting ``; purposes; consultation; survey''
            (2) in subsection (a)(3), by striking ``post-Cold War'';
            (3) in subsection (b)(1)(D), by inserting ``, including 
        through linkages with overseas institutions'' before the 
        semicolon; and
            (4) by adding at the end the following:
    ``(c) Consultation.--The Secretary shall, prior to requesting 
applications for funding under this title during each grant cycle, 
consult with and receive recommendations regarding national need for 
expertise in foreign languages and world regions from the head 
official, or a designee of such head official, of the National Security 
Council, the Department of Homeland Security, the Department of 
Defense, the Department of State, the Federal Bureau of Investigation, 
the Department of Labor, and the Department of Commerce, and the 
Director of National Intelligence. These entities shall provide 
information to the Secretary regarding how they utilize services 
provided by grantees under this title. The Secretary shall take into 
account such recommendations and information when requesting 
applications for funding under this title, and shall make available to 
applicants a list of areas identified as areas of national need.
    ``(d) Survey.--The Secretary shall assist grantees in developing a 
survey to administer to students who have participated in programs 
under this title to determine postparticipation placement. All 
grantees, where applicable, shall administer such survey not less often 
than annually and report such data to the Secretary.''.

SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND 
              PROGRAMS.

    Section 602 (20 U.S.C. 1122) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (G), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (H), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(I) support for instructors of the less commonly 
                taught languages.''; and
                    (B) in paragraph (4)--
                            (i) by redesignating subparagraphs (C) 
                        through (E) as subparagraphs (D) through (F), 
                        respectively;
                            (ii) by inserting after subparagraph (B) 
                        the following:
                    ``(C) Programs of linkage or outreach between or 
                among--
                            ``(i) foreign language, area studies, or 
                        other international fields; and
                            ``(ii) State educational agencies or local 
                        educational agencies.''; and
                            (iii) in subparagraph (F) (as redesignated 
                        by clause (i)), by striking ``and (D)'' and 
                        inserting ``(D), and (E)'';
            (2) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Graduate''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Eligible students.--A student receiving a stipend 
        described in paragraph (1) shall be engaged--
                    ``(A) in an instructional program with stated 
                performance goals for functional foreign language use 
                or in a program developing such performance goals, in 
                combination with area studies, international studies, 
                or the international aspects of a professional studies 
                program; and
                    ``(B)(i) in the case of an undergraduate student, 
                in the intermediate or advanced study of a less 
                commonly taught language; or
                    ``(ii) in the case of a graduate student, in 
                graduate study in connection with a program described 
                in subparagraph (A), including--
                            ``(I) predissertation level study;
                            ``(II) preparation for dissertation 
                        research;
                            ``(III) dissertation research abroad; or
                            ``(IV) dissertation writing.'';
            (3) by striking subsection (d) and inserting the following:
    ``(d) Allowances.--
            ``(1) Graduate level recipients.--A stipend awarded to a 
        graduate level recipient may include allowances for dependents 
        and for travel for research and study in the United States and 
        abroad.
            ``(2) Undergraduate level recipients.--A stipend awarded to 
        an undergraduate level recipient may include an allowance for 
        educational programs in the United States or educational 
        programs abroad that--
                    ``(A) are closely linked to the overall goals of 
                the recipient's course of study; and
                    ``(B) have the purpose of promoting foreign 
                language fluency and knowledge of foreign cultures.''; 
                and
            (4) by adding at the end the following:
    ``(e) Application.--Each institution or combination of institutions 
desiring a grant under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information and assurances as the Secretary may require. Each 
application shall include an explanation of how the activities funded 
by the grant will reflect diverse and balanced perspectives and 
generate debate on world regions and international affairs. Each 
application shall also describe how the applicant will address disputes 
regarding diversity and balance of activities funded under the 
application. Each application shall also include a description of how 
the applicant will encourage government service in areas of national 
need as identified by the Secretary.''.

SEC. 603. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE 
              PROGRAMS.

    Section 604 (20 U.S.C. 1124) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) by redesignating subparagraphs (I) 
                        through (M) as subparagraphs (J) through (N), 
                        respectively; and
                            (ii) by inserting after subparagraph (H) 
                        the following:
                    ``(I) providing subgrants to undergraduate students 
                for educational programs abroad that--
                            ``(i) are closely linked to the overall 
                        goals of the program for which the grant is 
                        awarded; and
                            ``(ii) have the purpose of promoting 
                        foreign language fluency and knowledge of 
                        foreign cultures;''; and
                    (B) in paragraph (7)--
                            (i) in subparagraph (C), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (D), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iii) by adding at the end the following:
                    ``(E) an explanation of how the activities funded 
                by the grant will reflect diverse and balanced 
                perspectives and generate debate on world regions and 
                international affairs, where applicable;
                    ``(F) a description of how the applicant will 
                address disputes regarding diversity and balance of 
                activities funded under the application; and
                    ``(G) a description of how the applicant will 
                encourage government service in areas of national need 
                as identified by the Secretary.''; and
            (2) in subsection (c)--
                    (A) by striking ``Funding Support.--The Secretary'' 
                and inserting ``Funding Rules.--
            ``(1) The secretary.--The Secretary'';
                    (B) by striking ``10'' and inserting ``20''; and
                    (C) by adding at the end the following:
            ``(2) Grantees.--Of the total amount of grant funds awarded 
        to a grantee under this section, the grantee may use not more 
        than 10 percent of such funds for the activity described in 
        subsection (a)(2)(I).''.

SEC. 604. RESEARCH; STUDIES.

    Section 605(a) (20 U.S.C. 1125(a)) is amended--
            (1) in paragraph (8), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (9), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(10) evaluation of the extent to which programs assisted 
        under this title reflect diverse and balanced perspectives and 
        generate debate on world regions and international affairs;
            ``(11) the systematic collection, analysis, and 
        dissemination of data that contribute to achieving the purposes 
        of this part; and
            ``(12) support for programs or activities to make data 
        collected, analyzed, or disseminated under this section 
        publicly available and easy to understand.''.

SEC. 605. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOREIGN 
              INFORMATION ACCESS.

    Section 606 (20 U.S.C. 1126) is amended--
            (1) in subsection (a)--
                    (A) by striking ``new electronic technologies'' and 
                insert ``electronic technologies'';
                    (B) by inserting ``from foreign sources'' after 
                ``disseminate information'';
                    (C) by striking ``Authority.--The Secretary'' and 
                insert ``Authority.--
            ``(1) In general.--The Secretary''; and
                    (D) by adding at the end the following:
            ``(2) Partnerships with not-for-profit educational 
        organizations.--The Secretary may award grants under this 
        section to carry out the activities authorized under this 
        section to the following:
                    ``(A) An institution of higher education.
                    ``(B) A public or nonprofit private library.
                    ``(C) A consortium of an institution of higher 
                education and 1 or more of the following:
                            ``(i) Another institution of higher 
                        education.
                            ``(ii) A library.
                            ``(iii) A not-for-profit educational 
                        organization.'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``to facilitate 
                access to'' and inserting ``to acquire, facilitate 
                access to,'';
                    (B) in paragraph (2), by inserting ``or standards 
                for'' after ``means of'';
                    (C) in paragraph (6), by striking ``and'' after the 
                semicolon;
                    (D) in paragraph (7), by striking the period and 
                inserting a semicolon; and
                    (E) by adding at the end the following:
            ``(8) to establish linkages to facilitate carrying out the 
        activities described in this subsection between--
                    ``(A) the institutions of higher education, 
                libraries, and consortia receiving grants under this 
                section; and
                    ``(B) institutions of higher education, not-for-
                profit educational organizations, and libraries 
                overseas; and
            ``(9) to carry out other activities that the Secretary 
        determines are consistent with the purpose of the grants or 
        contracts awarded under this section.''; and
            (3) in subsection (c), by striking ``institution or 
        consortium'' and inserting ``institution of higher education, 
        library, or consortium''.

SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.

    Section 607 (20 U.S.C. 1127) is amended--
            (1) in subsection (a), by striking ``evaluates the 
        applications for comprehensive and undergraduate language and 
        area centers and programs.'' and inserting ``evaluates--
            ``(1) the applications for comprehensive foreign language 
        and area or international studies centers and programs; and
            ``(2) the applications for undergraduate foreign language 
        and area or international studies centers and programs.''; and
            (2) in subsection (b), by adding at the end the following: 
        ``The Secretary shall also consider an applicant's record of 
        sending students into public service and an applicant's stated 
        efforts to increase the number of students that go into public 
        service.''.

SEC. 607. AMERICAN OVERSEAS RESEARCH CENTERS.

    Section 609 (20 U.S.C. 1128a) is amended by adding at the end the 
following:
    ``(e) Application.--Each center desiring a grant under this section 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information and assurances as the 
Secretary may require. Each application shall include how the 
activities funded by the grant will reflect diverse and balanced 
perspectives and generate debate on world regions and international 
affairs, where applicable. Each application shall also describe how the 
applicant will address disputes regarding diversity and balance of 
activities funded under the application.''.

SEC. 608. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL AND FOREIGN 
              LANGUAGE STUDIES.

    Section 610 (20 U.S.C. 1128b) is amended by striking ``$80,000,000 
for fiscal year 1999'' and all that follows through the period and 
inserting ``such sums as may be necessary for fiscal year 2006 and each 
of the 5 succeeding fiscal years.''.

SEC. 609. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.

    Section 612(f) (20 U.S.C. 1130-1(f)) is amended--
            (1) in paragraph (3), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(5) assurances that activities funded by the grant will 
        reflect diverse and balanced perspectives and generate debate 
        on world regions and international affairs, where 
        applicable.''.

SEC. 610. EDUCATION AND TRAINING PROGRAMS.

    Section 613(c) (20 U.S.C. 1130a(c)) is amended by adding at the end 
the following: ``Each such application shall include an assurance that, 
where applicable, the activities funded by the grant will reflect 
diverse and balanced perspectives on world regions and international 
affairs.''.

SEC. 611. AUTHORIZATION OF APPROPRIATIONS FOR BUSINESS AND 
              INTERNATIONAL EDUCATION PROGRAMS.

    Section 614 (20 U.S.C. 1130b) is amended--
            (1) in subsection (a), by striking ``$11,000,000 for fiscal 
        year 1999'' and all that follows through ``fiscal years'' and 
        inserting ``such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years''; and
            (2) in subsection (b), by striking ``$7,000,000 for fiscal 
        year 1999'' and all that follows through ``fiscal years,'' and 
        inserting ``such sums as may be necessary for fiscal year 2006 
        and each of the 5 succeeding fiscal years''.

SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT PROGRAM.

    Section 621 (20 U.S.C. 1131) is amended--
            (1) in subsection (c), by adding at the end the following: 
        ``Each application shall include a description of how the 
        activities funded by the grant will reflect diverse and 
        balanced perspectives on world regions and international 
        affairs, where applicable.''; and
            (2) in subsection (e)--
                    (A) by striking ``Match Required.--The eligible'' 
                and inserting ``Matching Funds.--
            ``(1) In general.--Subject to paragraph (2), the 
        eligible''; and
                    (B) by adding at the end the following:
            ``(2) Waiver.--The Secretary may waive the requirement of 
        paragraph (1) for an eligible recipient if the Secretary 
        determines such waiver is appropriate.''.

SEC. 613. INSTITUTIONAL DEVELOPMENT.

    Section 622 (20 U.S.C. 1131-1) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Tribally Controlled Colleges or 
                Universities'' and inserting ``tribally controlled 
                colleges or universities''; and
                    (B) by striking ``international affairs programs.'' 
                and inserting ``international affairs, international 
                business, and foreign language study programs, 
                including the teaching of foreign languages, at such 
                colleges, universities, and institutions, respectively, 
                through increased collaboration with institutions of 
                higher education that receive funding under this 
                title.''; and
            (2) in subsection (c)--
                    (A) by striking paragraphs (1) and (3); and
                    (B) by redesignating paragraphs (2) and (4) as 
                paragraphs (1) and (2), respectively.

SEC. 614. STUDY ABROAD PROGRAM.

    Section 623(a) (20 U.S.C. 1131a(a)) is amended--
            (1) by striking ``as defined in section 322 of this Act''; 
        and
            (2) by striking ``tribally controlled Indian community 
        colleges as defined in the Tribally Controlled Community 
        College Assistance Act of 1978'' and inserting ``tribally 
        controlled colleges or universities''.

SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.

    Section 624 (20 U.S.C. 1131b) is amended--
            (1) in the section heading, by striking ``masters'' and 
        inserting ``advanced'';
            (2) in the first sentence, by inserting ``, and in 
        exceptional circumstances, a doctoral degree,'' after ``masters 
        degree'';
            (3) in the second sentence, by striking ``masters degree'' 
        and inserting ``advanced degree''; and
            (4) in the fourth sentence, by striking ``United States'' 
        and inserting ``United States.''.

SEC. 616. INTERNSHIPS.

    Section 625 (20 U.S.C. 1131c) is amended--
            (1) in subsection (a)--
                    (A) by striking ``as defined in section 322 of this 
                Act'';
                    (B) by striking ``tribally controlled Indian 
                community colleges as defined in the Tribally 
                Controlled Community College Assistance Act of 1978'' 
                and inserting ``tribally controlled colleges or 
                universities'';
                    (C) by striking ``an international'' and inserting 
                ``international,''; and
                    (D) by striking ``the United States Information 
                Agency'' and inserting ``the Department of State''; and
            (2) in subsection (c)(1)--
                    (A) in subparagraph (E), by inserting ``and'' after 
                the semicolon;
                    (B) in subparagraph (F), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (G).

SEC. 617. FINANCIAL ASSISTANCE.

    Part C of title VI (20 U.S.C. 1131 et seq.) is further amended--
            (1) by redesignating sections 626, 627, and 628 as sections 
        627, 628, and 629, respectively; and
            (2) by inserting after section 625 the following:

``SEC. 626. FINANCIAL ASSISTANCE.

    ``(a) Authority.--The Institute may provide financial assistance, 
in the form of summer stipends described in subsection (b) and Ralph 
Bunche scholarship assistance described in subsection (c), to needy 
students to facilitate the participation of the students in the 
Institute's programs under this part.
    ``(b) Summer Stipends.--
            ``(1) Requirements.--A student receiving a summer stipend 
        under this section shall use such stipend to defray the 
        student's cost of participation in a summer institute program 
        funded under this part, including the costs of travel, living, 
        and educational expenses necessary for the student's 
        participation in such program.
            ``(2) Amount.--A summer stipend awarded to a student under 
        this section shall not exceed $3,000 per summer.
    ``(c) Ralph Bunche Scholarship.--
            ``(1) Requirements.--A student receiving a Ralph Bunche 
        scholarship under this section--
                    ``(A) shall be a full-time student at an 
                institution of higher education who is accepted into a 
                program funded under this part; and
                    ``(B) shall use such scholarship to pay costs 
                related to the cost of attendance, as defined in 
                section 472, at the institution of higher education in 
                which the student is enrolled.
            ``(2) Amount and duration.--A Ralph Bunche scholarship 
        awarded to a student under this section shall not exceed $5,000 
        per academic year.''.

SEC. 618. REPORT.

    Section 627 (as redesignated by section 617(1)) (20 U.S.C. 1131d) 
is amended by striking ``annually'' and inserting ``biennially''.

SEC. 619. GIFTS AND DONATIONS.

    Section 628 (as redesignated by section 617(1)) (20 U.S.C. 1131e) 
is amended by striking ``annual report described in section 626'' and 
inserting ``biennial report described in section 627''.

SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE FOR 
              INTERNATIONAL PUBLIC POLICY.

    Section 629 (as redesignated by section 617(1)) (20 U.S.C. 1131f) 
is amended by striking ``$10,000,000 for fiscal year 1999'' and all 
that follows through the period and inserting ``such sums as may be 
necessary for fiscal year 2006 and each of the 5 succeeding fiscal 
years.''.

SEC. 621. DEFINITIONS.

    Section 631 (20 U.S.C. 1132) is amended--
            (1) by redesignating paragraphs (2), (3), (4), (5), (6), 
        (7), (8), and (9), as paragraphs (8), (5), (9), (2), (11), (3), 
        (7), and (4), respectively;
            (2) in paragraph (2), as redesignated by paragraph (1), by 
        striking ``comprehensive language and area center'' and 
        inserting ``comprehensive foreign language and area or 
        international studies center'';
            (3) in paragraph (11), as redesignated by paragraph (1), by 
        striking ``undergraduate language and area center'' and 
        inserting ``undergraduate foreign language and area or 
        international studies center'';
            (4) in paragraph (3), as redesignated by paragraph (1), by 
        striking the first occurrence of the term ``critical 
        languages'' and inserting ``critical foreign languages'';
            (5) in paragraph (7), as redesignated by paragraph (1), by 
        striking ``and'' after the semicolon;
            (6) in paragraph (4), as redesignated by paragraph (1), by 
        striking the period at the end and inserting a semicolon;
            (7) by inserting after paragraph (5), as redesignated by 
        paragraph (1), the following:
            ``(6) the term `historically Black college and university' 
        has the meaning given the term `part B institution' in section 
        322;''; and
            (8) by inserting after paragraph (9), as redesignated by 
        paragraph (1), the following:
            ``(10) the term `tribally controlled college or university' 
        has the meaning given the term in section 2 of the Tribally 
        Controlled College or University Assistance Act of 1978 (25 
        U.S.C. 1801); and''.

SEC. 622. ASSESSMENT AND ENFORCEMENT.

    Part D of title VI (20 U.S.C. 1132) is amended by adding at the end 
the following:

``SEC. 632. ASSESSMENT; ENFORCEMENT; RULE OF CONSTRUCTION.

    ``(a) In General.--The Secretary is authorized to assess and ensure 
compliance with all the conditions and terms of grants provided under 
this title. If a complaint regarding activities funded under this title 
is not resolved under the process outlined in the relevant grantee's 
application, and such complaint is filed with the Department, the 
Secretary shall be notified, and is authorized, when circumstances 
warrant, to immediately suspend future funding for the grant pending 
resolution of such dispute. Such resolution shall not exceed 60 days. 
The Secretary shall take the outcomes of such complaints into account 
when determining the renewal of grants.
    ``(b) Rule of Construction.--Nothing in this title shall be 
construed to authorize the Secretary to mandate, direct, or control an 
institution of higher education's specific instructional content, 
curriculum, or program of instruction.

``SEC. 633. EVALUATION, OUTREACH, AND INFORMATION.

    ``The Secretary may use not more than 1 percent of the funds made 
available under this title to carry out program evaluation, national 
outreach, and information dissemination activities relating to the 
programs authorized under this title.''.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

SEC. 701. PURPOSE.

    Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended by 
inserting ``, including those areas critical to United States national 
and homeland security needs such as mathematics, science, and 
engineering'' before the semicolon at the end.

SEC. 702. ALLOCATION OF JACOB K. JAVITS FELLOWSHIPS.

    Section 702(a)(1) (20 U.S.C. 1134a(a)(1)) is amended to read as 
follows:
            ``(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 institutions, as defined in section 
                        365.''.

SEC. 703. STIPENDS.

    Section 703(a) (20 U.S.C. 1134b(a)) is amended by striking 
``graduate fellowships'' and inserting ``Graduate Research Fellowship 
Program''.

SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR THE JACOB K. JAVITS 
              FELLOWSHIP PROGRAM.

    Section 705 (20 U.S.C. 1134d) is amended by striking ``$30,000,000 
for fiscal year 1999'' and all that follows through the period and 
inserting ``such sums as may be necessary for fiscal year 2006 and each 
of the 5 succeeding fiscal years to carry out this subpart.''.

SEC. 705. INSTITUTIONAL ELIGIBILITY UNDER THE GRADUATE ASSISTANCE IN 
              AREAS OF NATIONAL NEED PROGRAM.

    Section 712(b) (20 U.S.C. 1135a(b)) is amended to read as follows:
    ``(b) Designation of Areas of National Need.--After consultation 
with appropriate Federal and nonprofit agencies and organizations, 
including the National Science Foundation, the Department of Defense, 
the Department of Homeland Security, the National Academy of Sciences, 
and the Bureau of Labor Statistics, the Secretary shall designate areas 
of national need. In making such designations, the Secretary shall take 
into consideration--
            ``(1) the extent to which the interest in the area is 
        compelling;
            ``(2) the extent to which other Federal programs support 
        postbaccalaureate study in the area concerned;
            ``(3) an assessment of how the program may achieve the most 
        significant impact with available resources; and
            ``(4) an assessment of current and future professional 
        workforce needs of the United States.''.

SEC. 706. AWARDS TO GRADUATE STUDENTS.

    Section 714 (20 U.S.C. 1135c) is amended--
            (1) in subsection (b)--
                    (A) by striking ``1999-2000'' and inserting ``2006-
                2007''; and
                    (B) by striking ``graduate fellowships'' and 
                inserting ``Graduate Research Fellowship Program''; and
            (2) in subsection (c)--
                    (A) by striking ``716(a)'' and inserting 
                ``715(a)''; and
                    (B) by striking ``714(b)(2)'' and inserting 
                ``713(b)(2)''.

SEC. 707. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION.

    Section 715(a)(1) (20 U.S.C. 1135d(a)(1)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2006-2007''; 
        and
            (2) by striking ``1998-1999'' and inserting ``2005-2006''.

SEC. 708. AUTHORIZATION OF APPROPRIATIONS FOR THE GRADUATE ASSISTANCE 
              IN AREAS OF NATIONAL NEED PROGRAM.

    Section 716 (20 U.S.C. 1135e) is amended by striking ``$35,000,000 
for fiscal year 1999'' and all that follows through the period and 
inserting ``such sums as may be necessary for fiscal year 2006 and each 
of the 5 succeeding fiscal years to carry out this subpart.''.

SEC. 709. AUTHORIZATION OF APPROPRIATIONS FOR THE THURGOOD MARSHALL 
              LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

    Section 721(h) (20 U.S.C. 1136(h)) is amended by striking 
``$5,000,000 for fiscal year 1999'' and all that follows through the 
period and inserting ``such sums as may be necessary for fiscal year 
2006 and each of the 5 succeeding fiscal years.''.

SEC. 710. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

    Section 741(a) (20 U.S.C. 1138(a)) is amended--
            (1) by striking paragraph (3) and inserting the following:
            ``(3) the establishment and continuation of institutions, 
        programs, consortia, collaborations, and other joint efforts 
        based on the technology of communications, including those 
        efforts that utilize distance education and technological 
        advancements to educate and train postsecondary students 
        (including health professionals serving medically underserved 
        populations);'';
            (2) in paragraph (7), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (4) by adding at the end the following:
            ``(9) the introduction of reforms in remedial education, 
        including English language instruction, to customize remedial 
        courses to student goals and help students progress rapidly 
        from remedial courses into core courses and through program 
        completion; and
            ``(10) the creation of consortia that join diverse 
        institutions of higher education for the purpose of integrating 
        curricular and co-curricular interdisciplinary study.''.

SEC. 711. SPECIAL PROJECTS.

    Section 744(c) (20 U.S.C. 1138c) is amended to read as follows:
    ``(c) Areas of National Need.--Areas of national need shall 
include, at a minimum, the following:
            ``(1) Institutional restructuring to improve learning and 
        promote productivity, efficiency, quality improvement, and cost 
        and price control.
            ``(2) Improvements in academic instruction and student 
        learning, including efforts designed to assess the learning 
        gains made by postsecondary students.
            ``(3) Articulation between 2- and 4-year institutions of 
        higher education, including developing innovative methods for 
        ensuring the successful transfer of students from 2- to 4-year 
        institutions of higher education.
            ``(4) Development, evaluation and dissemination of model 
        programs, including model core curricula that--
                    ``(A) provide students with a broad and integrated 
                knowledge base;
                    ``(B) include, at a minimum, broad survey courses 
                in English literature, American and world history, 
                American political institutions, economics, philosophy, 
                college-level mathematics, and the natural sciences; 
                and
                    ``(C) include sufficient study of a foreign 
                language to lead to reading and writing competency in 
                the foreign language.
            ``(5) International cooperation and student exchanges among 
        postsecondary educational institutions.''.

SEC. 712. AUTHORIZATION OF APPROPRIATIONS FOR THE FUND FOR THE 
              IMPROVEMENT OF POSTSECONDARY EDUCATION.

    Section 745 (20 U.S.C. 1138d) is amended by striking ``$30,000,000 
for fiscal year 1999'' and all that follows through the period and 
inserting ``such sums as may be necessary for fiscal year 2006 and each 
of the 5 succeeding fiscal years.''.

SEC. 713. AUTHORIZATION OF APPROPRIATIONS FOR THE URBAN COMMUNITY 
              SERVICE PROGRAM.

    Section 759 (20 U.S.C. 1139h) is amended by striking ``$20,000,000 
for fiscal year 1999'' and all that follows through the period and 
inserting ``such sums as may be necessary for fiscal year 2006 and each 
of the 5 succeeding fiscal years to carry out this part.''.

SEC. 714. GRANTS AUTHORIZED FOR DEMONSTRATION PROJECTS TO ENSURE 
              STUDENTS WITH DISABILITIES RECEIVE A QUALITY HIGHER 
              EDUCATION.

    Section 762 (20 U.S.C. 1140a) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``to 
                        teach students with disabilities'' and 
                        inserting ``to teach and meet the academic and 
                        programmatic needs of students with 
                        disabilities in order to improve retention and 
                        completion of postsecondary education'';
                            (ii) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (C) and (F), respectively;
                            (iii) by inserting after subparagraph (A) 
                        the following:
                    ``(B) Effective transition practices.--The 
                development of innovative and effective teaching 
                methods and strategies to ensure the successful 
                transition of students with disabilities from secondary 
                school to postsecondary education.'';
                            (iv) in subparagraph (C), as redesignated 
                        by clause (ii), by striking the period at the 
                        end and inserting ``, including data on the 
                        postsecondary education of and impact on 
                        subsequent employment of students with 
                        disabilities. Such research, information, and 
                        data shall be made publicly available and 
                        accessible.'';
                            (v) by inserting after subparagraph (C), as 
                        redesignated by clause (ii), the following:
                    ``(D) Distance learning.--The development of 
                innovative and effective 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 accessible curriculum and 
                electronic communication for instruction and 
                advisement.
                    ``(E) Disability career pathways.--Training and 
                providing support to secondary and postsecondary staff 
                to encourage interest in, enhance awareness and 
                understanding of, provide educational opportunities in, 
                teach practical skills related to, and offer work-based 
                opportunities in, disability related fields, among 
                students, including students with disabilities. Such 
                training and support may include developing means to 
                offer students credit-bearing, college-level 
                coursework, and career and educational counseling.''; 
                and
                            (vi) by adding at the end the following:
                    ``(G) Accessibility of education.--Making 
                postsecondary education more accessible to students 
                with disabilities through curriculum development.''; 
                and
                    (B) in paragraph (3), by striking ``subparagraphs 
                (A) through (C)'' and inserting ``subparagraphs (A) 
                through (G)''; and
            (2) by adding at the end the following:
    ``(d) Report.--The Secretary shall prepare and disseminate a report 
reviewing the activities of the demonstration projects authorized under 
this part and providing guidance and recommendations on how successful 
projects can be replicated.''.

SEC. 715. APPLICATIONS FOR DEMONSTRATION PROJECTS TO ENSURE STUDENTS 
              WITH DISABILITIES RECEIVE A QUALITY HIGHER EDUCATION.

    Section 763 (20 U.S.C. 1140b) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) a description of how such institution plans to 
        address the activities allowed under this part;'';
            (2) in paragraph (2), by striking ``and'' after the 
        semicolon;
            (3) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(4) a description of the extent to which the institution 
        will work to replicate the research based and best practices of 
        institutions of higher education with demonstrated success in 
        serving students with disabilities.''.

SEC. 716. AUTHORIZATION OF APPROPRIATIONS FOR THE DEMONSTRATION 
              PROJECTS TO ENSURE STUDENTS WITH DISABILITIES RECEIVE A 
              QUALITY HIGHER EDUCATION.

    Section 765 (20 U.S.C. 1140d) is amended by striking ``$10,000,000 
for fiscal year 1999'' and all that follows through the period and 
inserting ``such sums as may be necessary for fiscal year 2006 and each 
of the 5 succeeding fiscal years.''.

                       TITLE VIII--MISCELLANEOUS

SEC. 801. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.

    The Act (20 U.S.C. 1001 et seq.) is amended by adding at the end 
the following:

                      ``TITLE VIII--MISCELLANEOUS

           ``PART A--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

``SEC. 811. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.

    ``(a) Program Authorized.--The Secretary is authorized to award 
grants to States, on a competitive basis, to enable the States to award 
eligible students, who complete a rigorous secondary school curriculum 
in mathematics and science, scholarships for undergraduate study.
    ``(b) Eligible Students.--A student is eligible for a scholarship 
under this section if the student is a full-time undergraduate student 
in the student's first and second year of study who has completed a 
rigorous secondary school curriculum in mathematics and science.
    ``(c) Rigorous Curriculum.--Each participating State shall 
determine the requirements for a rigorous secondary school curriculum 
in mathematics and science described in subsection (b).
    ``(d) Priority for Scholarships.--The Governor of a State may set a 
priority for awarding scholarships under this section for particular 
eligible students, such as students attending schools in high-need 
areas, students who are from groups underrepresented in the fields of 
mathematics, science, and engineering, students served by local 
educational agencies that do not meet or exceed State standards in 
mathematics and science, or students with regional or geographic needs 
as determined appropriate by the Governor.
    ``(e) Amount and Duration of Scholarship.--The Secretary shall 
award a grant under this section--
            ``(1) in an amount that does not exceed $1,000; and
            ``(2) for not more than 2 years of undergraduate study.
    ``(f) Matching Requirement.--In order to receive a grant under this 
section, a State shall provide matching funds for the scholarships 
awarded under this section in an amount equal to 50 percent of the 
Federal funds received.
    ``(g) Authorization.--There are authorized to be appropriated to 
carry out this section such sums as may be necessary for fiscal year 
2006 and each of the 5 succeeding fiscal years.

              ``PART B--POSTSECONDARY EDUCATION ASSESSMENT

``SEC. 821. POSTSECONDARY EDUCATION ASSESSMENT.

    ``(a) Contract for Assessment.--The Secretary shall enter into a 
contract, with an independent, bipartisan organization with specific 
expertise in public administration and financial management, to carry 
out an independent assessment of the cost factors associated with the 
cost of tuition at institutions of higher education.
    ``(b) Timeframe.--The Secretary shall enter into the contract 
described in subsection (a) not later than 90 days after the date of 
enactment of the Higher Education Amendments of 2005.
    ``(c) Matters Assessed.--The assessment described in subsection (a) 
shall--
            ``(1) examine the key elements driving the cost factors 
        associated with the cost of tuition at institutions of higher 
        education during academic year 2000 and succeeding academic 
        years;
            ``(2) identify and evaluate measures being used to control 
        postsecondary education costs;
            ``(3) identify and evaluate effective measures that may be 
        utilized to control postsecondary education costs in the 
        future; and
            ``(4) identify systemic approaches to monitor future 
        postsecondary education costs trends and postsecondary 
        education cost control mechanisms.

 ``PART C--JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR INDUSTRIES

``SEC. 831. JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR 
              INDUSTRIES.

    ``(a) Grants Authorized.--The Secretary is authorized to award 
grants, on a competitive basis, to eligible partnerships to enable the 
eligible partnerships to provide relevant job skill training in high-
growth industries or occupations.
    ``(b) Definitions.--In this section:
            ``(1) Eligible partnership.--The term `eligible 
        partnership' means a partnership--
                    ``(A) between an institution of higher education 
                and a local board (as such term is defined in section 
                101 of the Workforce Investment Act of 1998); or
                    ``(B) if an institution of higher education is 
                located within a State that does not operate local 
                boards, between the institution of higher education and 
                a State board (as such term is defined in section 101 
                of the Workforce Investment Act of 1998).
            ``(2) Nontraditional student.--The term `nontraditional 
        student' means a student who--
                    ``(A) is independent, as defined in section 480(d);
                    ``(B) attends an institution of higher education--
                            ``(i) on less than a full-time basis;
                            ``(ii) via evening, weekend, modular, or 
                        compressed courses; or
                            ``(iii) via distance learning methods; or
                    ``(C) has delayed enrollment at an institution of 
                higher education.
            ``(3) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education, as defined in section 101(b), that offers a 
        1- or 2-year program of study leading to a degree or 
        certificate.
    ``(c) Application.--
            ``(1) In general.--Each eligible partnership that desires a 
        grant under this section shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        additional information as the Secretary may require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall include a description of--
                    ``(A) how the eligible partnership, through the 
                institution of higher education, will provide relevant 
                job skill training for students to enter high-growth 
                occupations or industries;
                    ``(B) local high-growth occupations or industries; 
                and
                    ``(C) the need for qualified workers to meet the 
                local demand of high-growth occupations or industries.
    ``(d) Award Basis.--In awarding grants under this section, the 
Secretary shall--
            ``(1) ensure an equitable distribution of grant funds under 
        this section among urban and rural areas of the United States; 
        and
            ``(2) take into consideration the capability of the 
        institution of higher education--
                    ``(A) to offer relevant, high quality instruction 
                and job skill training for students entering a high-
                growth occupation or industry;
                    ``(B) to involve the local business community and 
                to place graduates in the community in employment in 
                high-growth occupations or industries;
                    ``(C) to provide secondary students with dual-
                enrollment or concurrent enrollment options;
                    ``(D) to serve nontraditional or low-income 
                students, or adult or displaced workers; and
                    ``(E) to serve students from rural or remote 
                communities.
    ``(e) Use of Funds.--Grant funds provided under this section may be 
used--
            ``(1) to expand or create academic programs or programs of 
        training that provide relevant job skill training for high-
        growth occupations or industries;
            ``(2) to purchase equipment which will facilitate the 
        development of academic programs or programs of training that 
        provide training for high-growth occupations or industries;
            ``(3) to support outreach efforts that enable students to 
        attend institutions of higher education with academic programs 
        or programs of training focused on high-growth occupations or 
        industries;
            ``(4) to expand or create programs for distance, evening, 
        weekend, modular, or compressed learning opportunities that 
        provide relevant job skill training in high-growth occupations 
        or industries;
            ``(5) to build partnerships with local businesses in high-
        growth occupations or industries;
            ``(6) to support curriculum development related to 
        entrepreneurial training; and
            ``(7) for other uses that the Secretary determines to be 
        consistent with the intent of this section.
    ``(f) Requirements.--
            ``(1) Fiscal agent.--For the purpose of this section, the 
        institution of higher education in an eligible partnership 
        shall serve as the fiscal agent and grant recipient for the 
        eligible partnership.
            ``(2) Duration.--The Secretary shall award grants under 
        this section for periods that may not exceed 5 years.
            ``(3) Supplement, not supplant.--Funds made available under 
        this section shall be used to supplement and not supplant other 
        Federal, State, and local funds available to the eligible 
        partnership for carrying out the activities described in 
        subsection (e).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part such sums as may be necessary for 
fiscal year 2006 and each of the 5 succeeding fiscal years.

   ``PART D--GRANT PROGRAM TO INCREASE STUDENT RETENTION AND PROMOTE 
                        ARTICULATION AGREEMENTS

``SEC. 841. GRANT PROGRAM TO INCREASE STUDENT RETENTION AND PROMOTE 
              ARTICULATION AGREEMENTS.

    ``(a) Authorization of Program.--The Secretary shall award grants, 
on a competitive basis, to eligible institutions to enable the 
institutions to--
            ``(1) focus on increasing traditional and nontraditional 
        student retention at such institutions; and
            ``(2) promote articulation agreements among different 
        institutions that will increase the likelihood of progression 
        of students at such institutions to baccalaureate degrees.
    ``(b) Definition of Eligible Institution.--In this section, the 
term `eligible institution' means an institution of higher education 
(as defined in section 101(a)) where not less than 40 percent of such 
institution's student body receives financial aid under subpart 1 of 
part A of title IV.
    ``(c) Application.--An eligible institution that desires a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may require, including the number of students proposed to be served and 
a description of the services that will be provided.
    ``(d) Mandatory Activities.--An eligible institution that receives 
a grant under this section shall use the grant funds to carry out each 
of the following:
            ``(1) Offering counseling and advisement services to help 
        students adapt to postsecondary education and select 
        appropriate coursework.
            ``(2) Making mentors available to students who are at risk 
        for not completing a degree.
            ``(3) Providing detailed assistance to students who request 
        help in understanding--
                    ``(A) the options for financing their education, 
                including information on grants, loans, and loan 
                repayment programs;
                    ``(B) the process of applying for financial 
                assistance;
                    ``(C) the outcome of their financial assistance 
                application; and
                    ``(D) any unanticipated problems related to 
                financing their education that arise.
            ``(4) Offering tutoring to students at risk of dropping out 
        of school with any course or subject.
            ``(5) Designing and implementing innovative ways to improve 
        retention in and completion of courses, such as enrolling 
        students in cohorts, providing counseling, or creating bridge 
        programs that customize courses to the needs of special 
        population students.
            ``(6) Conducting outreach activities so that all students 
        know that these services are available and are aware of how to 
        access the services.
            ``(7) Creating articulation agreements to promote smooth 
        transition from two year to four year programs.
            ``(8) Making services listed in paragraphs (1) through (5) 
        available in students' native languages, if it is not English, 
        if the percentage of students needing translation services in a 
        specific language exceeds 5 percent.
    ``(e) Permissible Activities.--An eligible institution that 
receives a grant under this section may use grant funds to carry out 
any of the following activities:
            ``(1) Designing innovative course schedules to meet the 
        needs of working adults, such as online, modular, compressed, 
        or other alternative methods.
            ``(2) Offering childcare during the hours when students 
        have class or are studying.
            ``(3) Providing transportation assistance to students that 
        helps such students manage their schedules.
            ``(4) Partnering with local businesses to create flexible 
        work-hour programs so that students can balance work and 
        school.
            ``(5) Offering time management or financial literacy 
        seminars to help students improve their management skills.
            ``(6) Improving professional development to align 
        instruction with innovative program designs.
            ``(7) Any other activities the Secretary believes will 
        promote retention of students attending eligible institutions.
    ``(f) Technical Assistance.--The Secretary may enter into a 
contract with a private entity to provide such technical assistance to 
grantees under this section as the Secretary determines appropriate.
    ``(g) Evaluation.--The Secretary shall conduct an evaluation of 
program impacts under the demonstration program, and shall disseminate 
to the public the findings from the evaluation and information on best 
practices.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this and such sums as may be necessary for 
fiscal year 2006 and each of the 5 succeeding fiscal years.

                 ``PART E--AMERICAN HISTORY FOR FREEDOM

``SEC. 851. AMERICAN HISTORY FOR FREEDOM.

    ``(a) Grants Authorized.--The Secretary is authorized to award 3-
year grants, on a competitive basis, to eligible institutions to 
establish or strengthen postsecondary academic programs or centers that 
promote and impart knowledge of--
            ``(1) traditional American history;
            ``(2) the history and nature of, and threats to, free 
        institutions; or
            ``(3) the history and achievements of Western civilization.
    ``(b) Definitions.--In this section:
            ``(1) Eligible institution.--The term `eligible 
        institution' means an institution of higher education as 
        defined in section 101.
            ``(2) Free institution.--The term `free institution' means 
        an institution that emerged out of Western civilization, such 
        as democracy, constitutional government, individual rights, 
        market economics, religious freedom and religious tolerance, 
        and freedom of thought and inquiry.
            ``(3) Traditional american history.--The term `traditional 
        American history' means--
                    ``(A) the significant constitutional, political, 
                intellectual, economic, and foreign policy trends and 
                issues that have shaped the course of American history; 
                and
                    ``(B) the key episodes, turning points, and leading 
                figures involved in the constitutional, political, 
                intellectual, diplomatic, and economic history of the 
                United States.
    ``(c) Application.--
            ``(1) In general.--Each eligible institution that desires a 
        grant under this part shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        additional information as the Secretary may require.
            ``(2) Contents.--Each application submitted under 
        subsection (a) shall include a description of --
                    ``(A) how funds made available under this part will 
                be used for the activities set forth under subsection 
                (e), including how such activities will increase 
                knowledge with respect to traditional American history, 
                free institutions, or Western civilization;
                    ``(B) how the eligible institution will ensure that 
                information about the activities funded under this part 
                is widely disseminated pursuant to subsection 
                (e)(1)(B);
                    ``(C) any activities to be undertaken pursuant to 
                subsection (e)(2)(A), including identification of 
                entities intended to participate;
                    ``(D) how funds made available under this part 
                shall be used to supplement and not supplant non-
                Federal funds available for the activities described in 
                subsection (e); and
                    ``(E) such fiscal controls and accounting 
                procedures as may be necessary to ensure proper 
                disbursement of and accounting for funding made 
                available to the eligible institution under this part.
    ``(d) Award Basis.--In awarding grants under this part, the 
Secretary shall take into consideration the capability of the eligible 
institution to--
            ``(1) increase access to quality programming that expands 
        knowledge of traditional American history, free institutions, 
        or Western civilization;
            ``(2) involve personnel with strong expertise in 
        traditional American history, free institutions, or Western 
        civilization; and
            ``(3) sustain the activities funded under this part after 
        the grant has expired.
    ``(e) Use of Funds.--
            ``(1) Required use of funds.--Funds provided under this 
        part shall be used to--
                    ``(A) establish or strengthen academic programs or 
                centers focused on traditional American history, free 
                institutions, or Western civilization, which may 
                include--
                            ``(i) design and implementation of programs 
                        of study, courses, lecture series, seminars, 
                        and symposia;
                            ``(ii) development, publication, and 
                        dissemination of instructional materials;
                            ``(iii) research;
                            ``(iv) support for faculty teaching in 
                        undergraduate and, if applicable, graduate 
                        programs;
                            ``(v) support for graduate and postgraduate 
                        fellowships, if applicable; or
                            ``(vi) teacher preparation initiatives that 
                        stress content mastery regarding traditional 
                        American history, free institutions, or Western 
                        civilization; and
                    ``(B) conduct outreach activities to ensure that 
                information about the activities funded under this part 
                is widely disseminated--
                            ``(i) to undergraduate students (including 
                        students enrolled in teacher education 
                        programs, if applicable);
                            ``(ii) to graduate students (including 
                        students enrolled in teacher education 
                        programs), if applicable;
                            ``(iii) to faculty;
                            ``(iv) to local educational agencies; and
                            ``(v) within the local community.
            ``(2) Allowable uses of funds.--Funds provided under this 
        part may be used to support--
                    ``(A) collaboration with entities such as--
                            ``(i) local educational agencies, for the 
                        purpose of providing elementary, middle and 
                        secondary school teachers an opportunity to 
                        enhance their knowledge of traditional American 
                        history, free institutions, or Western 
                        civilization; and
                            ``(ii) nonprofit organizations whose 
                        mission is consistent with the purpose of this 
                        part, such as academic organizations, museums, 
                        and libraries, for assistance in carrying out 
                        activities described under subsection (a); and
                    ``(B) other activities that meet the purposes of 
                this part.
    ``(f) Authorization of Appropriations.--For the purpose of carrying 
out this part, there are authorized to be appropriated such sums as may 
be necessary for fiscal year 2006 and each of the 5 succeeding fiscal 
years.

                      ``PART F--TEACH FOR AMERICA

``SEC. 861. TEACH FOR AMERICA.

    ``(a) Definitions.--
            ``(1) In general.--The terms `highly qualified', `local 
        educational agency', and `Secretary' have the meanings given 
        the terms in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801).
            ``(2) Grantee.--The term `grantee' means Teach For America, 
        Inc.
            ``(3) High need.--The term `high need', when used with 
        respect to a local educational agency, means a local 
        educational agency experiencing a shortage of highly qualified 
        teachers.
    ``(b) Grants Authorized.--The Secretary is authorized to award a 
grant to Teach For America, Inc., the national teacher corps of 
outstanding recent college graduates who commit to teach for 2 years in 
underserved communities in the United States, to implement and expand 
its program of recruiting, selecting, training, and supporting new 
teachers.
    ``(c) Requirements.--In carrying out the grant program under 
subsection (b), the Secretary shall enter into an agreement with the 
grantee under which the grantee agrees to use the grant funds provided 
under this section--
            ``(1) to provide highly qualified teachers to high need 
        local educational agencies in urban and rural communities;
            ``(2) to pay the cost of recruiting, selecting, training, 
        and supporting new teachers; and
            ``(3) to serve a substantial number and percentage of 
        underserved students.
    ``(d) Authorized Activities.--
            ``(1) In general.--Grant funds provided under this section 
        shall be used by the grantee to carry out each of the following 
        activities:
                    ``(A) Recruiting and selecting teachers through a 
                highly selective national process.
                    ``(B) Providing preservice training to the teachers 
                through a rigorous summer institute that includes 
                hands-on teaching experience and significant exposure 
                to education coursework and theory.
                    ``(C) Placing the teachers in schools and positions 
                designated by partner local educational agencies as 
                high need placements serving underserved students.
                    ``(D) Providing ongoing professional development 
                activities for the teachers' first 2 years in the 
                classroom, including regular classroom observations and 
                feedback, and ongoing training and support.
            ``(2) Limitation.--The grantee shall use all grant funds 
        received under this section to support activities related 
        directly to the recruitment, selection, training, and support 
        of teachers as described in subsection (a).
    ``(e) Reports and Evaluations.--
            ``(1) Annual report.--The grantee shall provide to the 
        Secretary an annual report that includes--
                    ``(A) data on the number and quality of the 
                teachers provided to local educational agencies through 
                a grant under this section;
                    ``(B) an externally conducted analysis of the 
                satisfaction of local educational agencies and 
                principals with the teachers so provided; and
                    ``(C) comprehensive data on the background of the 
                teachers chosen, the training the teachers received, 
                the placement sites of the teachers, the professional 
                development of the teachers, and the retention of the 
                teachers.
            ``(2) Study.--
                    ``(A) In general.--From funds appropriated under 
                subsection (f), the Secretary shall provide for a study 
                that examines the achievement levels of the students 
                taught by the teachers assisted under this section.
                    ``(B) Achievement gains compared.--The study shall 
                compare, within the same schools, the achievement gains 
                made by students taught by teachers who are assisted 
                under this section with the achievement gains made by 
                students taught by teachers who are not assisted under 
                this section.
            ``(3) Requirements.--The Secretary shall provide for such a 
        study not less than once every 3 years, and each such study 
        shall include multiple placement sites and multiple schools 
        within placement sites.
            ``(4) Peer review standards.--Each such study shall meet 
        the peer review standards of the education research community.
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section such sums as may be necessary for 
        fiscal year 2006 and each of the 5 succeeding fiscal years.
            ``(2) Limitation.--The grantee shall not use more than 25 
        percent of Federal funds from any source for administrative 
        costs.

               ``PART G--PATSY T. MINK FELLOWSHIP PROGRAM

``SEC. 1. PATSY T. MINK FELLOWSHIP PROGRAM.

    ``(a) Purpose.--
            ``(1) In general.--It is the purpose of this section 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.
            ``(2) Designation.--Each recipient of a fellowship award 
        from an eligible institution receiving a grant under this 
        section shall be known as a `Patsy T. Mink Graduate Fellow'.
    ``(b) Definitions.--In this section, 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.
    ``(c) Program Authorized.--
            ``(1) Grants by secretary.--
                    ``(A) 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 section.
                    ``(B) Priority consideration.--In awarding grants 
                under this section, 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 
                section to those eligible institutions with a 
                demonstrated record of producing minorities and women 
                who have earned such degrees.
            ``(2) Applications.--
                    ``(A) In general.--An eligible institution that 
                desires a grant under this section shall submit an 
                application to the Secretary at such time, in such 
                manner, and containing such information as the 
                Secretary may require.
                    ``(B) Applications made on behalf.--
                            ``(i) 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.
                            ``(ii) Nonprofit organizations.--Nothing in 
                        this paragraph shall be construed to permit the 
                        Secretary to award a grant under this section 
                        to an entity other than an eligible 
                        institution.
            ``(3) Selection of applications.--In awarding grants under 
        subsection (a), the Secretary shall--
                    ``(A) take into account--
                            ``(i) the number and distribution of 
                        minority and female faculty nationally;
                            ``(ii) the current and projected need for 
                        highly trained individuals in all areas of the 
                        higher education professoriate; and
                            ``(iii) 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
                    ``(B) 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, 
                such as mathematics, science, technology, and 
                engineering.
            ``(4) Distribution and amounts of grants.--
                    ``(A) Equitable distribution.--In awarding grants 
                under this section, 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 section and that 
                demonstrate an ability to achieve the purpose of this 
                section.
                    ``(B) Special rule.--To the maximum extent 
                practicable, the Secretary shall use not less than 30 
                percent of the amount appropriated pursuant to 
                subsection (f) to award grants to eligible institutions 
                that--
                            ``(i) are eligible for assistance under 
                        title III or title V; or
                            ``(ii) have formed a consortium that 
                        includes both non-minority serving institutions 
                        and minority serving institutions.
                    ``(C) Allocation.--In awarding grants under this 
                section, 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 
                section.
                    ``(D) Number of fellowship awards.--An eligible 
                institution that receives a grant under this section 
                shall make not less than 15 fellowship awards.
                    ``(E) Reallotment.--If the Secretary determines 
                that an eligible institution awarded a grant under this 
                section 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 section.
            ``(5) Institutional allowance.--
                    ``(A) In general.--
                            ``(i) Number of allowances.--In awarding 
                        grants under this section, the Secretary shall 
                        pay to each eligible institution awarded a 
                        grant, for each individual awarded a fellowship 
                        by such institution under this section, an 
                        institutional allowance.
                            ``(ii) 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.
                    ``(B) 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.
                    ``(C) 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.
                    ``(D) Use for overhead prohibited.--Funds made 
                available under this section may not be used for 
                general operational overhead of the academic department 
                or institution receiving funds under this section.
    ``(d) Fellowship Recipients.--
            ``(1) Authorization.--An eligible institution that receives 
        a grant under this section 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--
                    ``(A) intend to pursue a career in instruction at--
                            ``(i) an institution of higher education 
                        (as the term is defined in section 101);
                            ``(ii) an institution of higher education 
                        (as the term is defined in section 102(a)(1));
                            ``(iii) an institution of higher education 
                        outside the United States (as the term is 
                        described in section 102(a)(2)); or
                            ``(iv) a proprietary institution of higher 
                        education (as the term is defined in section 
                        102(b)); and
                    ``(B) sign an agreement with the Secretary 
                agreeing--
                            ``(i) to begin employment at an institution 
                        described in paragraph (1) not later than 3 
                        years after receiving the doctoral degree or 
                        highest possible degree available, which 3-year 
                        period may be extended by the Secretary for 
                        extraordinary circumstances; and
                            ``(ii) to be employed by such institution 
                        for 1 year for each year of fellowship 
                        assistance received under this section.
            ``(2) Failure to comply.--If an individual who receives a 
        fellowship award under this section fails to comply with the 
        agreement signed pursuant to subsection (a)(2), then the 
        Secretary shall do 1 or both of the following:
                    ``(A) 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.
                    ``(B) Impose a fine or penalty in an amount to be 
                determined by the Secretary.
            ``(3) Waiver and modification.--
                    ``(A) Regulations.--The Secretary shall promulgate 
                regulations setting forth criteria to be considered in 
                granting a waiver for the service requirement under 
                subsection (a)(2).
                    ``(B) Content.--The criteria under paragraph (1) 
                shall include whether compliance with the service 
                requirement by the fellowship recipient would be--
                            ``(i) inequitable and represent an 
                        extraordinary hardship; or
                            ``(ii) deemed impossible because the 
                        individual is permanently and totally disabled 
                        at the time of the waiver request.
            ``(4) Amount of fellowship awards.--Fellowship awards under 
        this section 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.
            ``(5) Academic progress required.--An individual student 
        shall not be eligible to receive a fellowship award--
                    ``(A) 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
                    ``(B) 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.
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to require an eligible institution that receives a grant 
under this section--
            ``(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 section; 
        or
            ``(2) to hire a Patsy T. Mink Fellow who completes this 
        program and seeks employment at such institution.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2006 for each of the 5 succeeding fiscal years.

       ``PART H--STUDY ON COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

``SEC. 1. STUDY ON COLLEGE ENROLLMENT BY SECONDARY SCHOOLS.

    ``The Secretary shall contract with a not-for-profit organization, 
with demonstrated expertise in increasing college enrollment rates in 
low-income communities nationwide, to make publicly available year-to-
year college enrollment rate trends by secondary schools, in full 
compliance with the Family Educational Rights and Privacy Act of 1974 
(FERPA).''.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

    Section 104 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4304) is amended--
            (1) by striking the heading and inserting ``laurent clerc 
        national deaf education center'';
            (2) in subsection (a)(1)(A), by inserting ``the Laurent 
        Clerc National Deaf Education Center (referred to in this 
        section as the `Clerc Center') to carry out'' after ``maintain 
        and operate''; and
            (3) in subsection (b)--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1), by striking ``elementary and secondary 
                education programs'' and inserting ``Clerc Center'';
                    (B) in paragraph (2), by striking ``elementary and 
                secondary education programs'' and inserting ``Clerc 
                Center''; and
                    (C) by adding at the end the following:
    ``(5) The University, for purposes of the elementary and secondary 
education programs carried out at the Clerc Center, shall--
            ``(A)(i) select challenging academic content standards, 
        challenging student academic achievement standards, and 
        academic assessments of a State, adopted and implemented, as 
        appropriate, pursuant to paragraphs (1) and (3) of section 
        1111(b) of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6311(b)(1) and (3)) and approved by the Secretary; 
        and
            ``(ii) implement such standards and assessments for such 
        programs by not later than the beginning of the 2008-2009 
        academic year;
            ``(B) annually determine whether such programs at the Clerc 
        Center are making adequate yearly progress, as determined 
        according to the definition of adequate yearly progress defined 
        (pursuant to section 1111(b)(2)(C) of such Act (20 U.S.C. 
        6311(b)(2)(C))) by the State that has adopted and implemented 
        the standards and assessments selected under subparagraph 
        (A)(i); and
            ``(C) publicly report the results of the academic 
        assessments implemented under subparagraph (A) and whether the 
        programs at the Clerc Center are making adequate yearly 
        progress, as determined under subparagraph (B).''.

SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.

    Section 105(b)(4) of the Education of the Deaf Act of 1986 (20 
U.S.C. 4305(b)(4)) is amended--
            (1) by striking ``the Act of March 3, 1931 (40 U.S.C. 
        276a--276a-5) commonly referred to as the Davis-Bacon Act'' and 
        inserting ``subchapter IV of chapter 31 of title 40, United 
        States Code, commonly referred to as the Davis-Bacon Act''; and
            (2) by striking ``section 2 of the Act of June 13, 1934 (40 
        U.S.C. 276c)'' and inserting ``section 3145 of title 40, United 
        States Code''.

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

    Section 112 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4332) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) 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
                            (ii) by striking the second sentence;
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following:
            ``(2) Notwithstanding the requirement under paragraph (1), 
        if the Secretary or the Rochester Institute of Technology 
        terminates the agreement under paragraph (1), the Secretary 
        shall consider proposals from other institutions of higher 
        education and enter into an agreement with 1 of such 
        institutions for the establishment and operation of a National 
        Technical Institution for the Deaf.''; and
            (2) in subsection (b)--
                    (A) in paragraph (3), 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''; and
                    (B) in paragraph (5)--
                            (i) by striking ``the Act of March 3, 1931 
                        (40 U.S.C. 276a--276a-5) commonly referred to 
                        as the Davis-Bacon Act'' and inserting 
                        ``subchapter IV of chapter 31 of title 40, 
                        United States Code, commonly referred to as the 
                        Davis-Bacon Act''; and
                            (ii) by striking ``section 2 of the Act of 
                        June 13, 1934 (40 U.S.C. 276c)'' and inserting 
                        ``section 3145 of title 40, United States 
                        Code''.

SEC. 904. CULTURAL EXPERIENCES GRANTS.

    (a) Cultural Experiences Grants.--Title I of the Education of the 
Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the 
end the following:

                        ``PART C--OTHER PROGRAMS

``SEC. 121. CULTURAL EXPERIENCES GRANTS.

    ``(a) In General.--The Secretary shall, on a competitive basis, 
make grants to, and enter into contracts and cooperative agreements 
with, eligible entities to support the activities described in 
subsection (b).
    ``(b) Activities.--In carrying out this section, the Secretary 
shall support activities providing cultural experiences, through 
appropriate nonprofit organizations with a demonstrated proficiency in 
providing such activities, that--
            ``(1) enrich the lives of deaf and hard-of-hearing children 
        and adults;
            ``(2) increase public awareness and understanding of 
        deafness and of the artistic and intellectual achievements of 
        deaf and hard-of-hearing persons; or
            ``(3) promote the integration of hearing, deaf, and hard-
        of-hearing persons through shared cultural, educational, and 
        social experiences.
    ``(c) Applications.--An eligible entity that desires to receive a 
grant, or enter into a contract or cooperative agreement, under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(d) 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 each of the 5 succeeding fiscal years.''.
    (b) Conforming Amendment.--The title heading of title I of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended 
by adding at the end ``; OTHER PROGRAMS''.

SEC. 905. AUDIT.

    Section 203 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4353) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking the second 
                sentence and inserting the following: ``The institution 
                of higher education that the Secretary has an agreement 
                with under section 112 shall have an annual independent 
                financial and compliance audit made of NTID programs 
                and activities. The audit shall follow the cycle of the 
                Federal fiscal year.'';
                    (B) in paragraph (2), by striking ``sections'' and 
                all that follows through the period and inserting 
                ``sections 102(b), 105(b)(4), 112(b)(5), 203(c), 
                207(b)(2), subsections (c) through (f) of section 207, 
                and subsections (b) and (c) of section 209.''; and
                    (C) in paragraph (3), by inserting ``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'' after 
                ``Secretary''; and
            (2) in subsection (c)(2)(A), 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''.

SEC. 906. REPORTS.

    Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4354) is amended--
            (1) in the matter preceding paragraph (1), 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'';
            (2) in paragraph (1), by striking ``preparatory,'';
            (3) in paragraph (2)(C), by striking ``upon graduation/
        completion'' and inserting ``on the date that is 1 year after 
        the date of graduation or completion''; and
            (4) in paragraph (3)(B), by striking ``of the institution 
        of higher education'' and all that follows through the period 
        and inserting ``of NTID programs and activities.''.

SEC. 907. MONITORING, EVALUATION, AND REPORTING.

    Section 205 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4355) is amended--
            (1) in subsection (b), by striking ``The Secretary, as part 
        of the annual report required under section 426 of the 
        Department of Education Organization Act, shall include a 
        description of'' and inserting ``The Secretary shall annually 
        transmit information to Congress on''; and
            (2) in subsection (c), by striking ``fiscal years 1998 
        through 2003'' and inserting ``fiscal years 2006 through 
        2010''.

SEC. 908. 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. 909. 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 by striking ``fiscal years 1998 through 2003'' each 
place it appears and inserting ``fiscal years 2006 through 2010''.

SEC. 910. 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 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. 911. INTERNATIONAL STUDENTS.

    Section 209 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359a) is amended--
            (1) in subsection (a)--
                    (A) by striking ``preparatory, undergraduate,'' and 
                inserting ``undergraduate'';
                    (B) by striking ``Effective with'' and inserting 
                the following:
            ``(1) In general.--Except as provided in paragraph (2), 
        effective with''; and
                    (C) by adding at the end the following:
            ``(2) Distance learning.--International students who 
        participate in distance learning courses that are at NTID or 
        the University and who are residing outside of the United 
        States shall--
                    ``(A) not be counted as international students for 
                purposes of the cap on international students under 
                paragraph (1), except that in any school year no United 
                States citizen who applies to participate in distance 
                learning courses that are at the University or NTID 
                shall be denied participation in such courses because 
                of the participation of an international student in 
                such courses; and
                    ``(B) not be charged a tuition surcharge, as 
                described in subsection (b).''; and
            (2) by striking subsections (b), (c), and (d), and 
        inserting the following:
    ``(b) Tuition Surcharge.--Except as provided in subsections 
(a)(2)(B) and (c), the tuition for postsecondary international students 
enrolled in the University (including undergraduate and graduate 
students) or NTID shall include, for academic year 2007-2008 and any 
succeeding academic year, a surcharge of--
            ``(1) 100 percent for a postsecondary international student 
        from a non-developing country; and
            ``(2) 50 percent for a postsecondary international student 
        from a developing country.
    ``(c) Reduction of Surcharge.--
            ``(1) In general.--Beginning with the academic year 2007-
        2008, the University or NTID may reduce the surcharge--
                    ``(A) under subsection (b)(1) to 50 percent if--
                            ``(i) a student described under subsection 
                        (b)(1) demonstrates need; and
                            ``(ii) such student has made a good faith 
                        effort to secure aid through such student's 
                        government or other sources; and
                    ``(B) under subsection (b)(2) to 25 percent if--
                            ``(i) a student described under subsection 
                        (b)(2) demonstrates need; and
                            ``(ii) such student has made a good faith 
                        effort to secure aid through such student's 
                        government or other sources.
            ``(2) Development of sliding scale.--The University and 
        NTID shall develop a sliding scale model that--
                    ``(A) will be used to determine the amount of a 
                tuition surcharge reduction pursuant to paragraph (1); 
                and
                    ``(B) shall be approved by the Secretary.
    ``(d) Definition.--In this section, the term `developing country' 
means a country with a per-capita income of not more than $4,825, 
measured in 1999 United States dollars, as adjusted by the Secretary to 
reflect inflation since 1999.''.

SEC. 912. RESEARCH PRIORITIES.

    Section 210(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359b(b)) is amended by striking ``Committee on Labor and Human 
Resources of the Senate'' and inserting ``Committee on Health, 
Education, Labor, and Pensions of the Senate''.

SEC. 913. AUTHORIZATION OF APPROPRIATIONS.

    Section 212 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4360a) is amended--
            (1) in subsection (a), in the matter preceding paragraph 
        (1), 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''.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

SEC. 921. UNITED STATES INSTITUTE OF PEACE ACT.

    (a) Powers and Duties.--Section 1705(b)(3) of the United States 
Institute of Peace Act (22 U.S.C. 4604(b)(3)) is amended by striking 
``the Arms Control and Disarmament Agency,''.
    (b) Board of Directors.--Section 1706 of the United States 
Institute of Peace Act (22 U.S.C. 4605) is amended--
            (1) by striking ``(b)(5)'' each place the term appears and 
        inserting ``(b)(4)''; and
            (2) in subsection (e), by adding at the end the following:
            ``(5) The term of a member of the Board shall not commence 
        until the member is confirmed by the Senate and sworn in as a 
        member of the Board.''.
    (c) Funding.--Section 1710 of the United States Institute of Peace 
Act (22 U.S.C. 4609) is amended by adding at the end the following:
    ``(d) Extension.--Any authorization of appropriations made for the 
purposes of carrying out this title shall be extended in the same 
manner as applicable programs are extended under section 422 of the 
General Education Provisions Act.''.

            PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998

SEC. 931. REPEALS.

    The following provisions of title VIII of the Higher Education 
Amendments of 1998 (Public Law 105-244) are repealed:
            (1) Part A.
            (2) Part C (20 U.S.C. 1070 note).
            (3) Part F (20 U.S.C. 1862 note).
            (4) Part J.
            (5) Section 861.
            (6) Section 863.

SEC. 932. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
              TRAINING FOR INCARCERATED YOUTH OFFENDERS.

    Section 821(b) of the Higher Education Amendment of 1988 is amended 
by striking ``25'' and inserting ``35''.

                        PART D--INDIAN EDUCATION

              Subpart 1--Tribal Colleges and Universities

SEC. 941. TRIBALLY CONTROLLED COLLEGE AND UNIVERSITY ASSISTANCE.

    (a) Clarification of the Definition of National Indian 
Organization.--Section 2(a)(6) of the Tribally Controlled College or 
University Assistance Act of 1978 (25 U.S.C. 1801(a)(6)) is amended by 
striking ``in the field of Indian education'' and inserting ``in the 
fields of tribally controlled colleges and universities and Indian 
higher education''.
    (b) Indian Student Count.--Section 2(a) of the Tribally Controlled 
College or University Assistance Act (25 U.S.C. 1801(a)) is amended--
            (1) by redesignating paragraphs (7) and (8) as paragraphs 
        (8) and (9), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) `Indian student' means a student who is--
                    ``(A) a member of an Indian tribe; or
                    ``(B) a biological child of a member of an Indian 
                tribe, living or deceased;''.
    (c) Continuing Education.--Section 2(b) of the Tribally Controlled 
College or University Assistance Act (25 U.S.C. 1801(b)) is amended by 
striking paragraph (5) and inserting the following:
            ``(5) Determination of credits.--Eligible credits earned in 
        a continuing education program--
                    ``(A) shall be determined as 1 credit for every 10 
                contact hours in the case of an institution on a 
                quarter system, or 15 contact hours in the case of an 
                institution 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
                    ``(B) shall be limited to 10 percent of the Indian 
                student count of a tribally controlled college or 
                university.''.
    (d) Accreditation Requirement.--Section 103 of the Tribally 
Controlled College or University Assistance Act (25 U.S.C. 1804) is 
amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3), the following:
            ``(4)(A) is accredited by a nationally recognized 
        accrediting agency or association determined by the Secretary 
        of Education to be a reliable authority with regard to the 
        quality of training offered; or
            ``(B) is, according to such an agency or association, 
        making reasonable progress toward accreditation.''.
    (e) Technical Assistance Contract Awards.--Section 105 of the 
Tribally Controlled College or University Assistance Act (25 U.S.C. 
1805) is amended in the second sentence by striking ``In the awarding 
of contracts for technical assistance, preference shall be given'' and 
inserting ``The Secretary shall direct that contracts for technical 
assistance be awarded''.
    (f) Title I Reauthorization.--Section 110(a) of the Tribally 
Controlled College or University Assistance Act of 1978 (25 U.S.C. 
1810(a)) is amended--
            (1) in paragraphs (1), (2), (3), and (4), by striking 
        ``1999'' and inserting ``2006'';
            (2) in paragraphs (1), (2), and (3), by striking ``4 
        succeeding'' and inserting ``5 succeeding'';
            (3) in paragraph (2), by striking ``$40,000,000'' and 
        inserting ``such sums as may be necessary'';
            (4) in paragraph (3), by striking ``$10,000,000'' and 
        inserting ``such sums as may be necessary''; and
            (5) in paragraph (4), by striking ``succeeding 4'' and 
        inserting ``5 succeeding''.
    (g) Title III Reauthorization.--Section 306(a) of the Tribally 
Controlled 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''.
    (h) 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 ``$2,000,000 for fiscal year 1999'' and 
        inserting ``such sums as may be necessary for fiscal year 
        2006''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

                   Subpart 2--Navajo Higher Education

SEC. 945. SHORT TITLE.

    This subpart may be cited as the ``Navajo Nation Higher Education 
Act of 2005''.

SEC. 946. REAUTHORIZATION OF THE NAVAJO COMMUNITY COLLEGE ACT.

    Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 
640c-1(a)(1)) is amended by striking ``$2,000,000'' and all that 
follows through ``years'' and inserting ``such sums as may be necessary 
for fiscal year 2006 and each of the 5 succeeding fiscal years''.

                        TITLE X--RECONCILIATION

SEC. 1001. PROVISIONAL GRANT ASSISTANCE PROGRAM.

    (a) Amendment.--Subpart 1 of part A of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070a) is amended by adding at the end 
the following:

``SEC. 401A. PROVISIONAL GRANT ASSISTANCE PROGRAM.

    ``(a) Grants.--
            ``(1) In general.--From amounts appropriated under 
        subsection (c) for a fiscal year and subject to subsection (b), 
        the Secretary shall award grants to students (which shall be 
        known as `ProGAP awards') in the same manner as the Secretary 
        awards grants to students under section 401, except that the 
        Secretary shall determine the amount of a grant under this 
        section for an academic year by--
                    ``(A) determining the total number of students 
                eligible for a grant under section 401 for the academic 
                year, and the amount that each of those students are 
                eligible to receive under section 401 calculated on the 
                basis of the maximum grant level specified in the 
                appropriate Appropriation Act for section 401 for the 
                academic year;
                    ``(B) determining the amount each of those students 
                would receive under section 401 if the grant award 
                under section 401 were calculated on the basis of the 
                sum of the total amount appropriated to carry out 
                section 401 and the total amount appropriated to carry 
                out this section for the academic year; and
                    ``(C) awarding to each of those students the amount 
                by which the amount determined under subparagraph (B) 
                exceeds the amount determined under subparagraph (A).
            ``(2) Students with the greatest need.--The Secretary shall 
        ensure grants are awarded under this section to students with 
        the greatest need as determined under paragraph (1).
    ``(b) Cost of Attendance Limitation.--A grant awarded under this 
section for an academic year shall be awarded in an amount that does 
not exceed--
            ``(1) the student's cost of attendance for the academic 
        year; less
            ``(2) an amount equal to the expected family contribution 
        for that student for the academic year.
    ``(c) Authorization and Appropriation of Funds.--There are 
authorized to be appropriated, and there are appropriated, out of any 
money in the Treasury not otherwise appropriated, for the Department of 
Education to carry out this section and section 401B--
            ``(1) $1,165,000,000 for fiscal year 2006;
            ``(2) $1,171,000,000 for fiscal year 2007;
            ``(3) $1,171,000,000 for fiscal year 2008;
            ``(4) $1,172,000,000 for fiscal year 2009; and
            ``(5) $1,647,000,000 for fiscal year 2010.
    ``(d) Sunset Provision.--This section shall be effective with 
respect to amounts appropriated for fiscal year 2006 and each of the 4 
succeeding fiscal years.''.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
amounts appropriated to carry out sections 401A and 401B of the Higher 
Education Act of 1965 are the result of the savings generated by the 
amendments made by this title.

SEC. 1002. NATIONAL SMART GRANTS.

    Subpart 1 of part A of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070a) is further amended by adding after section 401A (as 
added by section 1001):

``SEC. 401B. NATIONAL SMART GRANTS.

    ``(a) Grants Authorized.--From amounts appropriated under section 
401A(c) for a fiscal year, the Secretary shall award grants to eligible 
students to assist the eligible students in paying their college 
education expenses.
    ``(b) Designation.--A grant under this section shall be known as a 
`National Science and Mathematics Access to Retain Talent Grant' or a 
`National SMART Grant'.
    ``(c) Definition of Eligible Student.--In this section the term 
`eligible student' means a student who, for the academic year for which 
the determination is made--
            ``(1) is eligible for a Federal Pell Grant; and
            ``(2) is in the student's 3rd or 4th year at an institution 
        of higher education majoring in--
                    ``(A) mathematics, science, technology, or 
                engineering (as determined by the Secretary pursuant to 
                regulations); or
                    ``(B) a foreign language that the Secretary, in 
                consultation with the Director of National 
                Intelligence, determines is critical to the national 
                security of the United States.
    ``(d) Grant Amount.--The Secretary shall award a grant under this 
section in an amount that does not exceed $1,500 for an academic year.
    ``(e) Funding Rule.--The Secretary shall use not more than 
$200,000,000 of the funds appropriated under section 401A(c) for each 
of the fiscal years 2006 through 2010 to carry out this section.
    ``(f) Unobligated funds Available for Federal Grant Assistance.--
The Secretary shall make any funds made available under subsection (e) 
for a fiscal year that remain unobligated at the end of the fiscal year 
available to carry out section 401A.
    ``(g) Matching Assistance.--An institution of higher education may, 
from funds provided from private sources, provide additional assistance 
to a student receiving a grant under this section, except that the 
total assistance provided under this title to a student shall not 
exceed the student's cost of attendance.''.

SEC. 1003. LOAN LIMITS.

    (a) Federal Insurance Limits.--Section 425(a)(1)(A) of the Higher 
Education Act of 1965 (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) of the Higher Education 
Act of 1965 (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) Federal Plus Loans.--Section 428B of the Higher Education Act 
of 1965 (20 U.S.C. 1078-2) is amended--
            (1) in subsection (a)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``Parents'' and inserting ``A graduate or 
                professional student or the parents'';
                    (B) in subparagraph (A), by striking ``the 
                parents'' and inserting ``the graduate or professional 
                student or the parents''; and
                    (C) in subparagraph (B), by striking ``the 
                parents'' and inserting ``the graduate or professional 
                student or the parents'';
            (2) in subsection (b), by striking ``any parent'' and 
        inserting ``any graduate or professional student or any 
        parent'';
            (3) in subsection (c)(2), by striking ``parent'' and 
        inserting ``graduate or professional student or parent''; and
            (4) in subsection (d)(1), by striking ``the parent'' and 
        inserting ``the graduate or professional student or the 
        parent''.
    (d) Unsubsidized Stafford Loans for Graduate or Professional 
Students.--Section 428H(d)(2) of the Higher Education Act of 1965 (20 
U.S.C. 1078-8(d)(2)) is amended--
            (1) in subparagraph (C), by striking ``$10,000'' and 
        inserting ``$12,000''; and
            (2) in subparagraph (D)--
                    (A) in clause (i), by striking ``$5,000'' and 
                inserting ``$7,000''; and
                    (B) in clause (ii), by striking ``$5,000'' and 
                inserting ``$7,000''.

SEC. 1004. PLUS LOAN INTEREST RATES AND ZERO SPECIAL ALLOWANCE PAYMENT.

    (a) PLUS Loans.--Section 427A(l)(2) of the Higher Education Act of 
1965 (20 U.S.C. 1077a(l)(2)) is amended by striking ``7.9 percent'' and 
inserting ``8.5 percent''.
    (b) Conforming Amendments for Special Allowances.--
            (1) Amendments.--Subparagraph (I) of section 438(b)(2) of 
        the Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)) is 
        amended--
                    (A) in clause (iii), by striking ``, subject to 
                clause (v) of this subparagraph'';
                    (B) in clause (iv), by striking ``, subject to 
                clause (vi) of this subparagraph''; and
                    (C) 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(l) and for which the 
                                first disbursement of principal is made 
                                on or after April 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 April 1, 2006.

SEC. 1005. REDUCTION OF LENDER INSURANCE REIMBURSEMENT RATES.

    (a) Amendment.--Subparagraph (G) of section 428(b)(1) of the Higher 
Education Act of 1965 (20 U.S.C. 1078(b)(1)) is amended to read as 
follows:
                    ``(G) insures 97 percent of the unpaid principal of 
                loans insured under the program;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any loan made, insured, or guaranteed under part 
B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
seq.) for which the first disbursement is made on or after January 1, 
2006.

SEC. 1006. GUARANTY AGENCY ORIGINATION FEE.

    (a) Amendment.--Section 428(b)(1)(H) of the Higher Education Act of 
1965 (20 U.S.C. 1078(b)(1)(H)) is amended to read as follows:
                    ``(H) provides for the collection, and the deposit 
                in the Federal Fund established under section 422A(a), 
                of a guaranty agency origination fee of 1.0 percent of 
                each disbursement of the proceeds of the loan, which 
                fee may be provided from funds in the guaranty agency's 
                operating fund under section 422B or from other non-
                Federal funds;''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective with respect to any loan guaranteed under part B of title IV 
of the Higher Education Act of 1965 on or after April 1, 2006.

SEC. 1007. DEFERMENT OF STUDENT LOANS FOR MILITARY SERVICE.

    (a) Federal Family Education Loans.--Section 428(b)(1)(M) of the 
Higher Education Act of 1965 (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) of the Higher Education Act of 
1965 (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) of the Higher Education 
Act of 1965 (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 of the Higher Education Act of 1965 
(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, 2001.

SEC. 1008. REHABILITATION THROUGH CONSOLIDATION.

    Section 428(c) of the Higher Education Act of 1965 (20 U.S.C 
1078(c)) is 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 purposes 
                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) Guaranty agency obligations.--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) Excess consolidation proceeds.--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.''.

SEC. 1009. SINGLE HOLDER RULE.

    Subparagraph (A) of section 428C(b)(1) of the Higher Education Act 
of 1965 (20 U.S.C. 1078-3(b)(1)) is amended by striking ``and (i)'' and 
all that follows through ``so selected for consolidation)''.

SEC. 1010. DEFAULT REDUCTION PROGRAM.

    Section 428F(a)(1) of the Higher Education Act of 1965 (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).''.

SEC. 1011. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.

    Section 428G of the Higher Education Act of 1965 (20 U.S.C. 1078-7) 
is amended--
            (1) in subsection (a)(3), by adding at the end the 
        following: ``Notwithstanding section 422(d) of the Higher 
        Education Amendments of 1998, this paragraph shall be effective 
        beginning on the date of enactment of the Higher Education 
        Amendments of 2005.''; and
            (2) in subsection (b)(1), by adding at the end the 
        following: ``Notwithstanding section 422(d) of the Higher 
        Education Amendments of 1998, the second sentence of this 
        paragraph shall be effective beginning on the date of enactment 
        of the Higher Education Amendments of 2005.''.

SEC. 1012. SPECIAL INSURANCE AND REINSURANCE RULES.

    (a) Repeal.--Section 428I of the Higher Education Act of 1965 (20 
U.S.C. 1078-9) is repealed.
    (b) Conforming Amendments.--Part A of title IV of the Higher 
Education Act of 1965 (20 U.S.C.1070 et seq.) is amended--
            (1) in section 428(c)(1)--
                    (A) by striking subparagraph (D); and
                    (B) by redesignating subparagraphs (E) and (F) as 
                subparagraphs (D) and (E), respectively; and
            (2) in section 438(b)(5), by striking the matter following 
        subparagraph (B).

SEC. 1013. SCHOOL AS LENDER MORATORIUM.

    Section 435(d)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1085(d)(2)) is amended--
            (1) in subparagraph (E), by striking ``and'' after the 
        semicolon; and
            (2) by inserting before the matter following subparagraph 
        (F) the following:
                    ``(G) shall have met the requirements of 
                subparagraphs (A) through (F), and made loans under 
                this part, on or before August 31, 2005;
                    ``(H) shall hold each loan the eligible institution 
                makes under this part to a student enrolled at the 
                eligible institution until the student enters into a 
                grace period described in section 427(a)(2)(B) or 
                428(b)(7);
                    ``(I) shall use the proceeds from the sale of a 
                loan made under this part, for need based grant aid 
                programs, except that such proceeds--
                            ``(i) shall not be used to provide a grant 
                        to a student for an academic year in an amount 
                        that is more than the student's cost of 
                        attendance for the academic year; and
                            ``(ii) shall supplement and not supplant 
                        other Federal, State, and institutional grant 
                        aid; and
                    ``(J) shall not be a foundation or alumni 
                organization;''.

SEC. 1014. PERMANENT REDUCTION OF SPECIAL ALLOWANCE PAYMENTS FOR LOANS 
              FROM THE PROCEEDS OF TAX EXEMPT ISSUES.

    (a) Technical Clarification.--The matter preceding paragraph (1) of 
section 2 of the Taxpayer-Teacher Protection Act of 2004 (Public Law 
108-409; 118 Stat. 2299) is amended by inserting ``of the Higher 
Education Act of 1965'' after ``Section 438(b)(2)(B)''. The amendment 
made by the preceding sentence shall be effective as if enacted on 
October 30, 2004.
    (b) Amendment.--Section 438(b)(2)(B) of the Higher Education Act of 
1965 (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) in item (aa), by striking ``and before January 
                1, 2006,'';
                    (B) in item (bb), by striking ``and before January 
                1, 2006,''; and
                    (C) in item (cc), by striking ``and before January 
                1, 2006,''.

SEC. 1015. LOAN FEES FROM LENDERS.

    (a) Amendment.--Paragraph (2) of section 438(d)(2) (20 U.S.C. 1087-
1(d)) is amended to read as follows:
            ``(2) Amount of loan fees.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), with respect to any loan made under 
                this part for which the first disbursement was made on 
                or after October 1, 1993, the amount of the loan fee 
                that shall be deducted under paragraph (1) shall be 
                equal to 0.50 percent of the principal amount of the 
                loan.
                    ``(B) Consolidation loans.--With respect to any 
                loan made under section 428C on or after April 1, 2006, 
                the amount of the loan fee that shall be deducted under 
                paragraph (1) shall be equal to 1.0 percent of the 
                principal amount of the loan.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any loan made, insured, or guaranteed under part 
B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
seq.) for which the first disbursement is made on or after April 1, 
2006.

SEC. 1016. ORIGINATION FEE.

    Section 455(c) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(c)) is amended--
            (1) by striking ``shall'' and inserting ``is authorized 
        to''; and
            (2) by striking ``4.0 percent of the principal amount of 
        loan'' and inserting ``not less than 1 percent and not more 
        than 3 percent of the principal amount of the loan, except that 
        the Secretary shall charge the borrower of a Federal Direct 
        PLUS Loan an origination fee of 4.0 percent of the principal 
        amount of the loan.''.

SEC. 1017. INCOME CONTINGENT REPAYMENT FOR PUBLIC SECTOR EMPLOYEES.

    Section 455(e) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(e)) is amended by adding at the end the following:
            ``(7) Repayment plan for public sector employees.--
                    ``(A) In general.--The Secretary shall forgive the 
                balance due on any loan made under this part for a 
                borrower--
                            ``(i) who has made 120 payments on such 
                        loan pursuant to income contingent repayment; 
                        and
                            ``(ii) who is employed, and was employed 
                        for the 10-year period in which the borrower 
                        made the 120 payments described in clause (i), 
                        in a public sector job.
                    ``(B) Public sector job.--In this paragraph, the 
                term `public sector job' means a full-time job in 
                emergency management, government, public safety, law 
                enforcement, public health, education (including early 
                childhood education), or public interest legal services 
                (including prosecution or public defense).
            ``(8) Return to standard repayment.--A borrower who is 
        repaying a loan made under this part pursuant to income 
        contingent repayment may choose, at any time, to terminate 
        repayment pursuant to income contingent repayment and repay 
        such loan under the standard repayment plan.''.

SEC. 1018. INCOME PROTECTION ALLOWANCE FOR DEPENDENT STUDENTS.

    (a) Amendment.--Section 475(g)(2)(D) (20 U.S.C. 1087oo(g)(2)(D)) is 
amended by striking ``$2,200'' and inserting ``$3,000''.
    (b) 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.

SEC. 1019. SIMPLIFIED NEED TEST AND AUTOMATIC ZERO IMPROVEMENTS.

    Section 479(c) of the Higher Education Act of 1965 (20 U.S.C. 
10877ss(c)) is amended--
            (1) in paragraph (1), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) the sum of the adjusted gross income of the 
                parents is less than or equal to $20,000; or'';
            (2) in paragraph (2), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) the sum of the adjusted gross income of the 
                student and spouse (if appropriate) is less than or 
                equal to $20,000.''.

SEC. 1020. LOAN FORGIVENESS FOR TEACHERS.

    Section 3(b)(3) of the Taxpayer-Teacher Protection Act of 2004 (20 
U.S.C. 1078-10 note) is amended by striking ``, and before October 1, 
2005''.
                                 <all>