[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2669 Engrossed Amendment Senate (EAS)]
In the Senate of the United States,
July 20 (legislative day, July 19), 2007.
Resolved, That the bill from the House of Representatives (H.R.
2669) entitled ``An Act to provide for reconciliation pursuant to
section 601 of the concurrent resolution on the budget for fiscal year
2008.'', do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; REFERENCES.
(a) Short Title.--This Act may be cited as the ``Higher Education
Access Act of 2007''.
(b) 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.).
TITLE I--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER
EDUCATION
SEC. 101. TUITION SENSITIVITY.
(a) Amendment.--Section 401(b) (20 U.S.C. 1070a(b)) is amended by
striking paragraph (3).
(b) Authorization and Appropriation of Funds.--There is authorized
to be appropriated, and there is appropriated, out of any money in the
Treasury not otherwise appropriated, for the Department of Education to
carry out the amendment made by subsection (a), $5,000,000 for fiscal
year 2008.
SEC. 102. PROMISE GRANTS.
(a) Amendment.--Subpart 1 of part A of title IV (20 U.S.C. 1070a et
seq.) is amended by adding at the end the following:
``SEC. 401B. PROMISE GRANTS.
``(a) Grants.--
``(1) In general.--From amounts appropriated under
subsection (e) for a fiscal year and subject to subsection (b),
the Secretary shall award grants to students in the same manner
as the Secretary awards Federal Pell Grants to students under
section 401, except that--
``(A) at the beginning of each award year, the
Secretary shall establish a maximum and minimum award
level based on amounts made available under subsection
(e);
``(B) the Secretary shall only award grants under
this section to students eligible for a Federal Pell
Grant for the award year; and
``(C) when determining eligibility for the awards
under this section, the Secretary shall consider only
those students who submitted a Free Application for
Federal Student Aid or other common reporting form
under section 483 as of July 1 of the award year for
which the determination is made.
``(2) Students with the greatest need.--The Secretary shall
ensure grants are awarded under this section to students with
the greatest need as determined in accordance with section 471.
``(b) Cost of Attendance Limitation.--A grant awarded under this
section for an award year shall be awarded in an amount that does not
exceed--
``(1) the student's cost of attendance for the award year;
less
``(2) an amount equal to the sum of--
``(A) the expected family contribution for the
student for the award year; and
``(B) any Federal Pell Grant award received by the
student for the award year.
``(c) Supplement Not Supplant.--Grants awarded from funds made
available under subsection (e) shall be used to supplement, and not
supplant, other Federal, State, or institutional grant funds.
``(d) Use of Excess Funds.--
``(1) Fifteen percent or less.--If, at the end of a fiscal
year, the funds available for making grant payments under this
section exceed the amount necessary to make the grant payments
required under this section to eligible students by 15 percent
or less, then all of the excess funds shall remain available
for making grant payments under this section during the next
succeeding fiscal year.
``(2) More than fifteen percent.--If, at the end of a
fiscal year, the funds available for making grant payments
under this section exceed the amount necessary to make the
grant payments required under this section to eligible students
by more than 15 percent, then all of such funds shall remain
available for making such grant payments but grant payments may
be made under this paragraph only with respect to awards for
that fiscal year.
``(e) Authorization and Appropriation of Funds.--
``(1) In general.--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--
``(A) $2,620,000,000 for fiscal year 2008;
``(B) $3,040,000,000 for fiscal year 2009;
``(C) $3,460,000,000 for fiscal year 2010;
``(D) $3,900,000,000 for fiscal year 2011;
``(E) $4,020,000,000 for fiscal year 2012;
``(F) $10,000,000 for fiscal year 2013;
``(G) $3,650,000,000 for fiscal year 2014;
``(H) $3,850,000,000 for fiscal year 2015;
``(I) $4,175,000,000 for fiscal year 2016; and
``(J) $4,180,000,000 for fiscal year 2017.
``(2) Availability of funds.--Funds appropriated under
paragraph (1) for a fiscal year shall remain available through
the last day of the fiscal year immediately succeeding the
fiscal year for which the funds are appropriated.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on July 1, 2008.
TITLE II--STUDENT LOAN BENEFITS, TERMS, AND CONDITIONS
SEC. 201. DEFERMENTS.
(a) FISL.--Section 427(a)(2)(C)(iii) (20 U.S.C. 1077(a)(2)(C)(iii))
is amended by striking ``3 years'' and inserting ``6 years''.
(b) Interest Subsidies.--Section 428(b)(1)(M)(iv) (20 U.S.C.
1078(b)(1)(M)(iv)) is amended by striking ``3 years'' and inserting ``6
years''.
(c) Direct Loans.--Section 455(f)(2)(D) (20 U.S.C. 1087e(f)(2)(D))
is amended by striking ``3 years'' and inserting ``6 years''.
(d) Perkins.--Section 464(c)(2)(A)(iv) (20 U.S.C.
1087dd(c)(2)(A)(iv)) is amended by striking ``3 years'' and inserting
``6 years''.
(e) Effective Date and Applicability.--The amendments made by this
section shall take effect on July 1, 2008, and shall only apply with
respect to the loans made to a borrower of a loan under title IV of the
Higher Education Act of 1965 who obtained the borrower's first loan
under such title prior to October 1, 2012.
SEC. 202. STUDENT LOAN DEFERMENT FOR CERTAIN MEMBERS OF THE ARMED
FORCES.
(a) Federal Family Education Loans.--Section 428(b)(1)(M)(iii) (20
U.S.C. 1078(b)(1)(M)(iii)) is amended--
(1) in the matter preceding subclause (I), by striking
``not in excess of 3 years'';
(2) in subclause (II), by striking ``; or'' and inserting a
comma; and
(3) by adding at the end the following:
``and for the 180-day period following the
demobilization date for the service described
in subclause (I) or (II); or''.
(b) Direct Loans.--Section 455(f)(2)(C) (20 U.S.C. 1087e(f)(2)(C))
is amended--
(1) in the matter preceding clause (i), by striking ``not
in excess of 3 years'';
(2) in clause (ii), by striking ``; or'' and inserting a
comma; and
(3) by adding at the end the following:
``and for the 180-day period following the
demobilization date for the service described in clause
(i) or (ii); or''.
(c) Perkins Loans.--Section 464(c)(2)(A)(iii) (20 U.S.C.
1087dd(c)(2)(A)(iii)) is amended--
(1) in the matter preceding subclause (I), by striking
``not in excess of 3 years'';
(2) in subclause (II), by striking the semicolon and
inserting a comma; and
(3) by adding at the end the following:
``and for the 180-day period following the
demobilization date for the service described in
subclause (I) or (II);''.
(d) Applicability.--Section 8007(f) of the Higher Education
Reconciliation Act of 2005 (20 U.S.C. 1078 note) is amended by striking
``loans for which'' and all that follows through the period at the end
and inserting ``all loans under title IV of the Higher Education Act of
1965.''.
(e) Effective Date.--The amendments made by this section shall take
effect on July 1, 2008.
SEC. 203. INCOME-BASED REPAYMENT PLANS.
(a) FFEL.--Section 428 (as amended by sections 201(b) and 202(a))
(20 U.S.C. 1078) is further amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (D), by striking
``income contingent'' and inserting ``income-
based''; and
(ii) in subparagraph (E)(i), by striking
``income-sensitive'' and inserting ``income-
based''; and
(B) by striking clause (iii) of paragraph (9)(A)
and inserting the following:
``(iii) an income-based repayment plan,
with parallel terms, conditions, and benefits
as the income-based repayment plan described in
subsections (e) and (d)(1)(D) of section 455,
except that--
``(I) the plan described in this
clause shall not be available to a
borrower of an excepted PLUS loan (as
defined in section 455(e)(10)) or of a
loan made under 428C that includes an
excepted PLUS loan;
``(II) in lieu of the process of
obtaining Federal income tax returns
and information from the Internal
Revenue Service, as described in
section 455(e)(1), the borrower shall
provide the lender with a copy of the
Federal income tax return and return
information for the borrower (and, if
applicable, the borrower's spouse) for
the purposes described in section
455(e)(1), and the lender shall
determine the repayment obligation on
the loan, in accordance with the
procedures developed by the Secretary;
``(III) in lieu of the requirements
of section 455(e)(3), in the case of a
borrower who chooses to repay a loan
made, insured, or guaranteed under this
part pursuant to income-based repayment
and for whom the adjusted gross income
is unavailable or does not reasonably
reflect the borrower's current income,
the borrower shall provide the lender
with other documentation of income that
the Secretary has determined is
satisfactory for similar borrowers of
loans made under part D;
``(IV) the Secretary shall pay any
interest due and not paid for under the
repayment schedule described in section
455(e)(4) for a loan made, insured, or
guaranteed under this part in the same
manner as the Secretary pays any such
interest under section 455(e)(6) for a
Federal Direct Stafford Loan;
``(V) the Secretary shall assume
the obligation to repay an outstanding
balance of principal and interest due
on all loans made, insured, or
guaranteed under this part (other than
an excepted PLUS Loan or a loan under
section 428C that includes an excepted
PLUS loan), for a borrower who
satisfies the requirements of
subparagraphs (A) and (B) of section
455(e)(7), in the same manner as the
Secretary cancels such outstanding
balance under section 455(e)(7); and
``(VI) in lieu of the notification
requirements under section 455(e)(8),
the lender shall notify a borrower of a
loan made, insured, or guaranteed under
this part who chooses to repay such
loan pursuant to income-based repayment
of the terms and conditions of such
plan, in accordance with the procedures
established by the Secretary, including
notification that--
``(aa) the borrower shall
be responsible for providing
the lender with the information
necessary for documentation of
the borrower's income,
including income information
for the borrower's spouse (as
applicable); and
``(bb) if the borrower
considers that special
circumstances warrant an
adjustment, as described in
section 455(e)(8)(B), the
borrower may contact the
lender, and the lender shall
determine whether such
adjustment is appropriate, in
accordance with the criteria
established by the Secretary;
and'';
(2) in subsection (e)--
(A) in the subsection heading, by striking
``Income-Sensitive'' and inserting ``Income-Based'';
(B) in paragraph (1)--
(i) by striking ``income-sensitive
repayment'' and inserting ``income-based
repayment''; and
(ii) by inserting ``and for the public
service loan forgiveness program under section
455(m), in accordance with section 428C(b)(5)''
before the semicolon; and
(C) in paragraphs (2) and (3), by striking
``income-sensitive'' each place the term occurs and
inserting ``income-based''; and
(3) in subsection (m)--
(A) in the subsection heading, by striking ``Income
Contingent'' and inserting ``Income-Based'';
(B) in paragraph (1), by striking ``income
contingent repayment plan'' and all that follows
through the period at the end and inserting ``income-
based repayment plan as described in subsection
(b)(9)(A)(iii) and section 455(d)(1)(D).''; and
(C) in the paragraph heading of paragraph (2), by
striking ``income contingent'' and inserting ``income-
based''.
(b) Consolidation Loans.--Section 428C (20 U.S.C. 1078-3) is
amended--
(1) in subsection (a)(3)(B)(i)(V), by striking ``for the
purposes of obtaining an income contingent repayment plan,''
and inserting ``for the purpose of using the public service
loan forgiveness program under section 455(m),'';
(2) in subsection (b)(5)--
(A) in the first sentence, by striking ``, or is
unable to obtain a consolidation loan with income-
sensitive repayment terms acceptable to the borrower
from such a lender,'' and inserting ``, or chooses to
obtain a consolidation loan for the purposes of using
the public service loan forgiveness program offered
under section 455(m),''; and
(B) in the second sentence, by striking ``income
contingent repayment under part D of this title'' and
inserting ``income-based repayment''; and
(3) in subsection (c)--
(A) in paragraph (2)(A)--
(i) in the first sentence, by striking ``of
graduated or income-sensitive repayment
schedules, established by the lender in
accordance with the regulations of the
Secretary.'' and inserting ``of graduated
repayment schedules, established by the lender
in accordance with the regulations of the
Secretary, and income-based repayment
schedules, established pursuant to regulations
by the Secretary.''; and
(ii) in the second sentence, by striking
``Except as required'' and all that follows
through ``subsection (b)(5),'' and inserting
``Except as required by such income-based
repayment schedules,''; and
(B) in paragraph (3)(B), by striking ``income
contingent repayment offered by the Secretary under
subsection (b)(5)'' and inserting ``income-based
repayment''.
(c) Direct Loans.--Section 455 (as amended by sections 201(c) and
202(b)) (20 U.S.C. 1087e) is further amended--
(1) in subsection (d)--
(A) in paragraph (1)(D)--
(i) by striking ``income contingent
repayment plan'' and inserting ``income-based
repayment plan''; and
(ii) by striking ``a Federal Direct PLUS
loan'' and inserting ``an excepted PLUS loan or
any Federal Direct Consolidation Loan that
includes an excepted PLUS loan (as defined in
subsection (e)(10))''; and
(B) in paragraph (5)(B), by striking ``income
contingent'' and inserting ``income-based''; and
(2) in subsection (e)--
(A) in the subsection heading, by striking ``Income
Contingent'' and inserting ``Income-Based'';
(B) in paragraphs (1), (2), and (3), by striking
``income contingent'' each place the term appears and
inserting ``income-based'';
(C) in paragraph (4)--
(i) by striking ``Income contingent'' and
inserting ``Income-based''; and
(ii) by striking ``Secretary.'' and
inserting ``Secretary, except that the monthly
required payment under such schedule shall not
exceed 15 percent of the result obtained by
calculating the amount by which--
``(A) the borrower's adjusted gross income; exceeds
``(B) 150 percent of the poverty line applicable to
the borrower's family size, as determined under section
673(2) of the Community Service Block Grant Act,
divided by 12.'';
(D) in paragraph (5), by striking ``income
contingent'' and inserting ``income-based'';
(E) by redesignating paragraph (6) as paragraph
(8);
(F) by inserting after paragraph (5) the following:
``(6) Treatment of interest.--In the case of a Federal
Direct Stafford Loan, any interest due and not paid for under
paragraph (2) shall be paid by the Secretary.
``(7) Loan forgiveness.--The Secretary shall cancel the
obligation to repay an outstanding balance of principal and
interest due on all loans made under this part, or assume the
obligation to repay an outstanding balance of principal and
interest due on all loans made, insured, or guaranteed under
part B, (other than an excepted PLUS Loan, or any Federal
Direct Consolidation Loan or loan under section 428C that
includes an excepted PLUS loan) to a borrower who--
``(A) makes the election under this subsection or
under section 428(b)(9)(A)(iii); and
``(B) for a period of time prescribed by the
Secretary not to exceed 25 years (including any period
during which the borrower is in deferment due to an
economic hardship described in section 435(o)), meets 1
of the following requirements with respect to each
payment made during such period:
``(i) Has made the payment under this
subsection or section 428(b)(9)(A)(iii).
``(ii) Has made the payment under a
standard repayment plan under section
428(b)(9)(A)(i) or 455(d)(1)(A).
``(iii) Has made a payment that counted
toward the maximum repayment period under
income-sensitive repayment under section
428(b)(9)(A)(iii) or income contingent
repayment under section 455(d)(1)(D), as each
such section was in effect on June 30, 2008.
``(iv) Has made a reduced payment of not
less than the amount required under subsection
(e), pursuant to a forbearance agreement under
section 428(c)(3)(A)(i) for a borrower
described in 428(c)(3)(A)(i)(II).'';
(G) in the matter preceding subparagraph (A) of
paragraph (8) (as redesignated by subparagraph (E)), by
striking ``income contingent'' and inserting ``income-
based''; and
(H) by adding at the end the following:
``(9) Return to standard repayment.--A borrower who is
repaying a loan made under this part pursuant to income-based
repayment may choose, at any time, to terminate repayment
pursuant to income-based repayment and repay such loan under
the standard repayment plan.
``(10) Definition of excepted plus loan.--In this
subsection, the term `excepted PLUS loan' means a Federal
Direct PLUS loan or a loan under section 428B that is made,
insured, or guaranteed on behalf of a dependent student.''.
(d) Conforming Amendments and Technical Corrections.--The Act (20
U.S.C. 1001 et seq.) is further amended--
(1) in section 427(a)(2)(H) (20 U.S.C. 1077(a)(2)(H))--
(A) by striking ``or income-sensitive''; and
(B) by inserting ``or income-based repayment
schedule established pursuant to regulations by the
Secretary'' before the semicolon at the end; and
(2) in section 455(d)(1)(C) (20 U.S.C. 1087e(d)(1)(C)), by
striking ``428(b)(9)(A)(v)'' and inserting
``428(b)(9)(A)(iv)''.
(e) Transition Provision.--A student who, as of June 30, 2008,
elects to repay a loan under part B or part D of the Higher Education
Act of 1965 (20 U.S.C. 1071 et seq., 1087a et seq.) through an income-
sensitive repayment plan under section 428(b)(9)(A)(iii) of such Act
(20 U.S.C. 1078(b)(9)(A)(iii)) or an income contingent repayment plan
under section 455(d)(1)(D) of such Act (20 U.S.C. 1087e(d)(1)(D)) (as
each such section was in effect on the day before the date of enactment
of this Act) shall have the option to continue repayment under such
section (as such section was in effect on such day), or may elect,
beginning on July 1, 2008, to use the income-based repayment plan under
section 428(b)(9)(A)(iii) or 455(d)(1)(D) (as applicable) of the Higher
Education Act of 1965, as amended by this section.
(f) Effective Date and Applicability.--The amendments made by this
section shall take effect on July 1, 2008, and shall only apply with
respect to a borrower of a loan under title IV of the Higher Education
Act of 1965 who obtained the borrower's first loan under such title
prior to October 1, 2012.
TITLE III--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 301. REDUCTION OF LENDER INSURANCE PERCENTAGE.
(a) Amendment.--Section 428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is
amended--
(1) in the matter preceding clause (i), by striking
``insures 98 percent'' and inserting ``insures 97 percent'';
(2) in clause (i), by inserting ``and'' after the
semicolon;
(3) by striking clause (ii); and
(4) by redesignating clause (iii) as clause (ii).
(b) Effective Date.--The amendment made by subsection (a) shall
take effect with respect to loans made on or after October 1, 2007.
SEC. 302. GUARANTY AGENCY COLLECTION RETENTION.
Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)(ii))
is amended to read as follows:
``(ii) an amount equal to 24 percent of such
payments for use in accordance with section 422B,
except that--
``(I) beginning October 1, 2003 and ending
September 30, 2007, this subparagraph shall be
applied by substituting `23 percent' for `24
percent'; and
``(II) beginning October 1, 2007, this
subparagraph shall be applied by substituting
`16 percent' for `24 percent'.''.
SEC. 303. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR LENDERS.
(a) Elimination of Status.--Part B of title IV (20 U.S.C. 1071 et
seq.) is amended by striking section 428I (20 U.S.C. 1078-9).
(b) Conforming Amendments.--Part B of title IV is further amended--
(1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))--
(A) by striking subparagraph (D); and
(B) by redesignating subparagraphs (E) through (H)
as subparagraphs (D) through (G), respectively; and
(2) in section 438(b)(5) (20 U.S.C. 1087-1(b)(5)), by
striking the matter following subparagraph (B).
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on October 1, 2007, except that section 428I of the
Higher Education Act of 1965 (as in effect on the day before the date
of enactment of this Act) shall apply to eligible lenders that received
a designation under subsection (a) of such section prior to October 1,
2007, for the remainder of the year for which the designation was made.
SEC. 304. DEFINITIONS.
(a) Amendments.--Section 435 (20 U.S.C. 1085) is amended--
(1) in subsection (o)(1)--
(A) in subparagraph (A)(ii), by striking ``100
percent of the poverty line for a family of 2'' and
inserting ``150 percent of the poverty line applicable
to the borrower's family size''; and
(B) in subparagraph (B)(ii), by striking ``to a
family of two'' and inserting ``to the borrower's
family size''; and
(2) by adding at the end the following:
``(p) Eligible Not-for-Profit Holder.--
``(1) Definition of eligible not-for-profit holder.--The
term `eligible not-for-profit holder' means an eligible lender
under subsection (d) (except for an eligible lender described
in subsection (d)(1)(E)) that requests a special allowance
payment under section 438(b)(2)(I)(vi)(II) and that is--
``(A) a State of the United States, or a political
subdivision thereof, or an authority, agency, or other
instrumentality thereof (including such entities that
are eligible to issue bonds described in section 1.103-
1 of title 26, Code of Federal Regulations, or section
144(b) of the Internal Revenue Code of 1986);
``(B) an entity described in section 150(d)(2) of
such Code that has not made the election described in
section 150(d)(3) of such Code;
``(C) an entity described in section 501(c)(3) of
such Code; or
``(D) a trustee acting as an eligible lender on
behalf of an entity described in subparagraph (A), (B),
or (C),
except that no entity described in subparagraph (A), (B), or
(C) shall be owned or controlled in whole or in part by a for-
profit entity.
``(2) Prohibition.--In the case of a loan for which the
special allowance payment is calculated under section
438(b)(2)(I)(vi)(II) and that is sold by the eligible not-for-
profit holder holding the loan to a for-profit entity or to an
entity that is not an eligible not-for-profit holder, the
special allowance payment for such loan shall, beginning on the
date of the sale, no longer be calculated under section
438(b)(2)(I)(vi)(II) and shall be calculated under section
438(b)(2)(I)(vi)(I) instead.
``(3) Regulations.--Not later than 1 year after the date of
enactment of the Higher Education Access Act of 2007, the
Secretary shall promulgate regulations in accordance with the
provisions of this subsection.''.
(b) Applicability.--The amendment made by subsection (a)(1) shall
only apply with respect to any borrower of a loan under title IV of the
Higher Education Act of 1965 who obtained the borrower's first loan
under such title prior to October 1, 2012.
SEC. 305. SPECIAL ALLOWANCES.
(a) Reduction of Lender Special Allowance Payments.--Section
438(b)(2)(I) (20 U.S.C. 1087-1(b)(2)(I)) is amended--
(1) in clause (i), by striking ``(iii), and (iv)'' and
inserting ``(iii), (iv), and (vi)''; and
(2) by adding at the end the following:
``(vi) Reduction for loans disbursed on or
after october 1, 2007.--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 October 1, 2007, the special allowance
payment computed pursuant to this subparagraph
shall be computed--
``(I) for loans held by an eligible
lender not described in subclause
(II)--
``(aa) by substituting
`1.24 percent' for `1.74
percent' in clause (ii);
``(bb) by substituting
`1.84 percent' for `2.34
percent' each place the term
appears in this subparagraph;
``(cc) by substituting
`1.84 percent' for `2.64
percent' in clause (iii); and
``(dd) by substituting
`2.14 percent' for `2.64
percent' in clause (iv); and
``(II) for loans held by an
eligible not-for-profit holder--
``(aa) by substituting
`1.99 percent' for `2.34
percent' each place the term
appears in this subparagraph;
``(bb) by substituting
`1.39 percent' for `1.74
percent' in clause (ii);
``(cc) by substituting
`1.99 percent' for `2.64
percent' in clause (iii); and
``(dd) by substituting
`2.29 percent' for `2.64
percent' in clause (iv).''.
(b) Increased Loan Fees From Lenders.--Paragraph (2) of section
438(d) (20 U.S.C. 1087-1(d)(2)) is amended to read as follows:
``(2) Amount of loan fees.--The amount of the loan fee
which shall be deducted under paragraph (1), but which may not
be collected from the borrower, shall be equal to 1.0 percent
of the principal amount of the loan with respect to any loan
under this part for which the first disbursement was made on or
after October 1, 2007.''.
TITLE IV--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
SEC. 401. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES.
Section 455 (as amended by sections 201(c), 202(b), and 203(c)) (20
U.S.C. 1087e) is further amended by adding at the end the following:
``(m) Repayment Plan for Public Service Employees.--
``(1) In general.--The Secretary shall cancel the balance
of interest and principal due, in accordance with paragraph
(2), on any eligible Federal Direct Loan not in default for an
eligible borrower who--
``(A) has made 120 monthly payments on the Federal
Direct Loan after October 1, 2007, pursuant to any
combination of--
``(i) payments under an income-based
repayment plan under section 455(d)(1)(D);
``(ii) payments under a standard repayment
plan under section 455(d)(1)(A); or
``(iii) monthly payments under a repayment
plan under section 455(d)(1) of not less than
the monthly amount calculated under section
455(d)(1)(A); and
``(B)(i) is employed in a public service job at the
time of such forgiveness; and
``(ii) has been employed in a public service job
during the period in which the borrower makes each of
the 120 payments described in subparagraph (A).
``(2) Loan cancellation amount.--After the conclusion of
the employment period described in paragraph (1), the Secretary
shall cancel the obligation to repay, for each year during such
period described in paragraph (1)(B)(ii) for which the eligible
borrower submits documentation to the Secretary that the
borrower's annual adjusted gross income or annual earnings were
less than or equal to $65,000, \1/10\ of the amount of the
balance of principal and interest due as of the time of such
cancellation, on the eligible Federal Direct Loans made to the
borrower under this part.
``(3) Definitions.--In this subsection:
``(A) Eligible borrower.--The term `eligible
borrower' means a borrower who submits documentation to
the Secretary that the borrower's annual adjusted gross
income or annual earnings is less than or equal to
$65,000.
``(B) Eligible federal direct loan.--The term
`eligible Federal Direct Loan' means a Federal Direct
Stafford Loan, Federal Direct PLUS Loan, Federal Direct
Unsubsidized Loan, or a Federal Direct Consolidation
Loan if such consolidation loan was obtained by the
borrower under section 428C(b)(5) or in accordance with
section 428C(a)(3)(B)(i)(V).
``(C) Public service job.--In this paragraph, the
term `public service job' means--
``(i) a full-time job in public emergency
management, government, public safety, public
law enforcement, public health, public
education, public early childhood education,
public child care, social work in a public
child or family service agency, public services
for individuals with disabilities, public
services for the elderly, public interest legal
services (including prosecution or public
defense), public library sciences, public
school library sciences, or other public
school-based services; or
``(ii) teaching as a full-time faculty
member at a Tribal College or University as
defined in section 316(b).''.
SEC. 402. UNIT COST CALCULATION FOR GUARANTY AGENCY ACCOUNT MAINTENANCE
FEES.
Section 458(b) (20 U.S.C. 1087h(b)) is amended--
(1) by striking ``Account'' and inserting the following:
``(1) For fiscal years 2006 and 2007.--For each of the
fiscal years 2006 and 2007, account''; and
(2) by adding at the end the following:
``(2) For fiscal year 2008 and succeeding fiscal years.--
``(A) In general.--For fiscal year 2008 and each
succeeding fiscal year, the Secretary shall calculate
the account maintenance fees payable to guaranty
agencies under subsection (a)(3), on a per-loan cost
basis in accordance with subparagraph (B).
``(B) Amount determination.--To determine the
amount that shall be paid under subsection (a)(3) per
outstanding loan guaranteed by a guaranty agency for
fiscal year 2008 and succeeding fiscal years, the
Secretary shall--
``(i) establish the per-loan cost basis
amount by dividing the total amount of account
maintenance fees paid under subsection (a)(3)
for fiscal year 2006 by the number of loans
under part B that were outstanding for that
fiscal year; and
``(ii) for subsequent fiscal years, adjust
the amount determined under clause (i) as the
Secretary determines necessary to account for
inflation.''.
TITLE V--FEDERAL PERKINS LOANS
SEC. 501. DISTRIBUTION OF LATE COLLECTIONS.
Section 466(b) (20 U.S.C. 1087ff(b)) is amended by striking ``March
31, 2012'' and inserting ``September 30, 2012''.
TITLE VI--NEED ANALYSIS
SEC. 601. SUPPORT FOR WORKING STUDENTS.
(a) Dependent Students.--Subparagraph (D) of section 475(g)(2) (20
U.S.C. 1087oo(g)(2)(D)) is amended to read as follows:
``(D) an income protection allowance of the
following amount (or a successor amount prescribed by
the Secretary under section 478):
``(i) for academic year 2009-2010, $3,750;
``(ii) for academic year 2010-2011, $4,500;
``(iii) for academic year 2011-2012,
$5,250; and
``(iv) for academic year 2012-2013,
$6,000;''.
(b) Independent Students Without Dependents Other Than a Spouse.--
Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is
amended to read as follows:
``(iv) an income protection allowance of
the following amount (or a successor amount
prescribed by the Secretary under section 478):
``(I) for single or separated
students, or married students where
both are enrolled pursuant to
subsection (a)(2)--
``(aa) for academic year
2009-2010, $7,000;
``(bb) for academic year
2010-2011, $7,780;
``(cc) for academic year
2011-2012, $8,550; and
``(dd) for academic year
2012-2013, $9,330; and
``(II) for married students where 1
is enrolled pursuant to subsection
(a)(2)--
``(aa) for academic year
2009-2010, $11,220;
``(bb) for academic year
2010-2011, $12,460;
``(cc) for academic year
2011-2012, $13,710; and
``(dd) for academic year
2012-2013, $14,960;''.
(c) Independent Students With Dependents Other Than a Spouse.--
Paragraph (4) of section 477(b) (20 U.S.C. 1087qq(b)(4)) is amended to
read as follows:
``(4) Income protection allowance.--The income protection
allowance is determined by the tables described in
subparagraphs (A) through (D) (or a successor table prescribed
by the Secretary under section 478).
``(A) Academic year 2009-2010.--For academic year
2009-2010, the income protection allowance is
determined by the following table:
``Income Protection Allowance
------------------------------------------------------------------------
Number in College
Family Size ----------------------------------------------------------
1 2 3 4 5
------------------------------------------------------------------------
2 $17,720 $14,690
3 22,060 19,050 $16,020
4 27,250 24,220 21,210 $18,170
5 32,150 29,120 26,100 23,070 $20,060
6 37,600 34,570 31,570 28,520 25,520
------------------------------------------------------------------------
NOTE: For each additional family member, add $4,240.
For each additional college student, subtract $3,020.
``(B) Academic year 2010-2011.--For academic year
2010-2011, the income protection allowance is
determined by the following table:
``Income Protection Allowance
------------------------------------------------------------------------
Number in College
Family Size ----------------------------------------------------------
1 2 3 4 5
------------------------------------------------------------------------
2 $19,690 $16,330
3 24,510 21,160 $17,800
4 30,280 26,910 23,560 $20,190
5 35,730 32,350 29,000 25,640 $22,290
6 41,780 38,410 35,080 31,690 28,350
------------------------------------------------------------------------
NOTE: For each additional family member, add $4,710.
For each additional college student, subtract $3,350.
``(C) Academic year 2011-2012.--For academic year
2011-2012, the income protection allowance is
determined by the following table:
``Income Protection Allowance
------------------------------------------------------------------------
Number in College
Family Size ----------------------------------------------------------
1 2 3 4 5
------------------------------------------------------------------------
2 $21,660 $17,960
3 26,960 23,280 $19,580
4 33,300 29,600 25,920 $22,210
5 39,300 35,590 31,900 28,200 $24,520
6 45,950 42,250 38,580 34,860 31,190
------------------------------------------------------------------------
NOTE: For each additional family member, add $5,180.
For each additional college student, subtract $3,690.
``(D) Academic year 2012-2013.--For academic year
2012-2013, the income protection allowance is
determined by the following table:
``Income Protection Allowance
------------------------------------------------------------------------
Number in College
Family Size ----------------------------------------------------------
1 2 3 4 5
------------------------------------------------------------------------
2 $23,630 $19,590
3 29,420 25,400 $21,360
4 36,330 32,300 28,280 $24,230
5 42,870 38,820 34,800 30,770 $26,750
6 50,130 46,100 42,090 38,030 34,020
------------------------------------------------------------------------
NOTE: For each additional family member, add $5,660.
For each additional college student, subtract $4,020.''.
(d) Updated Tables and Amounts.--Section 478(b) (20 U.S.C.
1087rr(b)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Revised tables.--
``(A) In general.--For each academic year after
academic year 2008-2009, the Secretary shall publish in
the Federal Register a revised table of income
protection allowances for the purpose of such sections,
subject to subparagraphs (B) and (C).
``(B) Table for independent students.--
``(i) Academic years 2009-2010 through
2012-2013.--For each of the academic years
2009-2010 through 2012-2013, the Secretary
shall not develop a revised table of income
protection allowances under section 477(b)(4)
and the table specified for such academic year
under subparagraphs (A) through (D) of such
section shall apply.
``(ii) Other academic years.--For each
academic year after academic year 2012-2013,
the Secretary shall develop the revised table
of income protection allowances by increasing
each of the dollar amounts contained in the
table of income protection allowances under
section 477(b)(4)(D) by a percentage equal to
the estimated percentage increase in the
Consumer Price Index (as determined by the
Secretary) between December 2011 and the
December next preceding the beginning of such
academic year, and rounding the result to the
nearest $10.
``(C) Table for parents.--For each academic year
after academic year 2008-2009, the Secretary shall
develop the revised table of income protection
allowances under section 475(c)(4) by increasing each
of the dollar amounts contained in the table by a
percentage equal to the estimated percentage increase
in the Consumer Price Index (as determined by the
Secretary) between December 1992 and the December next
preceding the beginning of such academic year, and
rounding the result to the nearest $10.''; and
(2) in paragraph (2), by striking ``shall be developed''
and all that follows through the period at the end and
inserting ``shall be developed for each academic year after
academic year 2012-2013, by increasing each of the dollar
amounts contained in such section for academic year 2012-2013
by a percentage equal to the estimated percentage increase in
the Consumer Price Index (as determined by the Secretary)
between December 2011 and the December next preceding the
beginning of such academic year, and rounding the result to the
nearest $10.''.
(e) Effective Date.--The amendments made by this section shall take
effect on July 1, 2009.
SEC. 602. AUTOMATIC ZERO IMPROVEMENTS.
(a) In General.--Section 479(c) (20 U.S.C. 1087ss(c)) is amended--
(1) in paragraph (1)(B), by striking ``20,000'' and
inserting ``$30,000''; and
(2) in paragraph (2)(B), by striking ``$20,000'' and
inserting ``$30,000''.
(b) Effective Date.--The amendments made by this section shall take
effect on July 1, 2009.
SEC. 603. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
The third sentence of section 479A(a) (20 U.S.C. 1087tt(a)) is
amended--
(1) by inserting ``or an independent student'' after
``family member''; and
(2) by inserting ``a change in housing status that results
in homelessness (as defined in section 103 of the McKinney-
Vento Homeless Assistance Act),'' after ``under section 487,''.
SEC. 604. DEFINITIONS.
(a) In General.--Section 480 (20 U.S.C. 1087vv) is amended--
(1) in subsection (a)(2)--
(A) by striking ``and no portion'' and inserting
``no portion''; and
(B) by inserting ``and no distribution from any
qualified education benefit described in subsection
(f)(3) that is not subject to Federal income tax,''
after ``1986,'';
(2) in subsection (d)--
(A) by redesignating paragraphs (1), (2), (3)
through (6), and (7) as subparagraphs (A), (B), (D)
through (G), and (I), respectively, and indenting
appropriately;
(B) by striking ``Independent Student.--The term''
and inserting ``Independent Student.--
``(1) Definition.--The term'';
(C) by striking subparagraph (B) (as redesignated
by subparagraph (A)) and inserting the following:
``(B) is an orphan, in foster care, or a ward of
the court, or was in foster care when the individual
was 13 years of age or older or a ward of the court
until the individual reached the age of 18;
``(C) is an emancipated minor or is in legal
guardianship as determined by a court of competent
jurisdiction in the individual's State of legal
residence;'';
(D) in subparagraph (G) (as redesignated by
subparagraph (A)), by striking ``or'' after the
semicolon;
(E) by inserting after subparagraph (G) (as
redesignated by subparagraph (A)) the following:
``(H) has been verified as an unaccompanied youth
who is a homeless child or youth (as such terms are
defined in section 725 of the McKinney-Vento Homeless
Assistance Act) during the school year in which the
application is submitted, by--
``(i) a local educational agency homeless
liaison, designated pursuant to section
722(g)(1)(J)(ii) of the McKinney-Vento Homeless
Assistance Act;
``(ii) the director of a program funded
under the Runaway and Homeless Youth Act or a
designee of the director; or
``(iii) the director of a program funded
under subtitle B of title IV of the McKinney-
Vento Homeless Assistance Act (relating to
emergency shelter grants) or a designee of the
director; or''; and
(F) by adding at the end the following:
``(2) Simplifying the dependency override process.--A
financial aid administrator may make a determination of
independence under paragraph (1)(I) based upon a documented
determination of independence that was previously made by
another financial aid administrator under such paragraph in the
same award year.'';
(3) in subsection (e)--
(A) in paragraph (3), by striking ``and'' after the
semicolon;
(B) in paragraph (4), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(5) special combat pay.'';
(4) in subsection (f), by striking paragraph (3) and
inserting the following:
``(3) A qualified education benefit shall be considered an
asset of--
``(A) the student if the student is an independent
student; or
``(B) the parent if the student is a dependent
student, regardless of whether the owner of the account
is the student or the parent.'';
(5) in subsection (j)--
(A) in paragraph (2), by inserting ``, or a
distribution that is not includable in gross income
under section 529 of such Code, under another prepaid
tuition plan offered by a State, or under a Coverdell
education savings account under section 530 of such
Code,'' after ``1986''; and
(B) by adding at the end the following:
``(4) Notwithstanding paragraph (1), special combat pay shall not
be treated as estimated financial assistance for purposes of section
471(3).''; and
(6) by adding at the end the following:
``(n) Special Combat Pay.--The term `special combat pay' means pay
received by a member of the Armed Forces because of exposure to a
hazardous situation.''.
SEC. 605. AUTHORIZATION AND APPROPRIATIONS.
There are authorized to be appropriated, and there are
appropriated, out of any money in the Treasury not otherwise
appropriated, $10,000,000 for fiscal year 2008 for the Department of
Education to pay the estimated increase in costs in the Federal Pell
Grant program under section 401 of the Higher Education Act of 1965 (20
U.S.C. 1070a) resulting from the amendments made by sections 603 and
604 for award year 2007-2008.
TITLE VII--MISCELLANEOUS
SEC. 701. COMPETITIVE LOAN AUCTION PILOT PROGRAM.
Title IV (20 U.S.C. 1070 et seq.) is further amended by adding at
the end the following:
``PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM; STATE GRANT PROGRAM
``SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible federal plus loan.--The term `eligible
Federal PLUS Loan' means a loan described in section 428B made
to a parent of a dependent student.
``(2) Eligible lender.--The term `eligible lender' has the
meaning given the term in section 435.
``(b) Pilot Program.--The Secretary shall carry out a pilot program
under which the Secretary establishes a mechanism for an auction of
eligible Federal PLUS Loans in accordance with this subsection. The
pilot program shall meet the following requirements:
``(1) Planning and implementation.--During the period
beginning on the date of enactment of this section and ending
on June 30, 2009, the Secretary shall plan and implement the
pilot program under this subsection.
``(2) Origination and disbursement; applicability of
section 428b.--Beginning on July 1, 2009, the Secretary shall
arrange for the origination and disbursement of all eligible
Federal PLUS Loans in accordance with the provisions of this
subsection and the provisions of section 428B that are not
inconsistent with this subsection.
``(3) Loan origination mechanism.--The Secretary shall
establish a loan origination auction mechanism that meets the
following requirements:
``(A) Auction.--The Secretary administers an
auction under this paragraph for each State under which
eligible lenders compete to originate eligible Federal
PLUS Loans under this paragraph at all institutions of
higher education within the State.
``(B) Prequalification process.--The Secretary
establishes a prequalification process for eligible
lenders desiring to participate in an auction under
this paragraph that contains, at a minimum--
``(i) a set of borrower benefits and
servicing requirements each eligible lender
shall meet in order to participate in such an
auction; and
``(ii) an assessment of each such eligible
lender's capacity, including capital capacity,
to participate effectively.
``(C) Timing and origination.--Each State auction
takes place every 2 years, and the eligible lenders
with the winning bids for the State are the only
eligible lenders permitted to originate eligible
Federal PLUS Loans made under this paragraph for the
cohort of students at the institutions of higher
education within the State until the students graduate
from or leave the institutions of higher education.
``(D) Bids.--Each eligible lender's bid consists of
the amount of the special allowance payment (including
the recapture of excess interest) the eligible lender
proposes to accept from the Secretary with respect to
the eligible Federal PLUS Loans made under this
paragraph in lieu of the amount determined under
section 438(b)(2)(I).
``(E) Maximum bid.--The maximum bid allowable under
this paragraph shall not exceed the amount of the
special allowance payable on eligible Federal PLUS
Loans made under this paragraph computed under section
438(b)(2)(I) (other than clauses (ii), (iii), (iv), and
(vi) of such section), except that for purposes of the
computation under this subparagraph, section
438(b)(2)(I)(i)(III) shall be applied by substituting
`1.74 percent' for `2.34 percent'.
``(F) Winning bids.--The winning bids for each
State auction shall be the 2 bids containing the lowest
and the second lowest proposed special allowance
payments, subject to subparagraph (E).
``(G) Agreement with secretary.--Each eligible
lender having a winning bid under subparagraph (F)
enters into an agreement with the Secretary under which
the eligible lender--
``(i) agrees to originate eligible Federal
PLUS Loans under this paragraph to each
borrower who--
``(I) seeks an eligible Federal
PLUS Loan under this paragraph to
enable a dependent student to attend an
institution of higher education within
the State;
``(II) is eligible for an eligible
Federal PLUS Loan; and
``(III) elects to borrow from the
eligible lender; and
``(ii) agrees to accept a special allowance
payment (including the recapture of excess
interest) from the Secretary with respect to
the eligible Federal PLUS Loans originated
under clause (i) in the amount proposed in the
second lowest winning bid described in
subparagraph (F) for the applicable State
auction.
``(H) Sealed bids; confidentiality.--All bids are
sealed and the Secretary keeps the bids confidential,
including following the announcement of the winning
bids.
``(I) Eligible lender of last resort.--
``(i) In general.--In the event that there
is no winning bid under subparagraph (F), the
students at the institutions of higher
education within the State that was the subject
of the auction shall be served by an eligible
lender of last resort, as determined by the
Secretary.
``(ii) Determination of eligible lender of
last resort.--Prior to the start of any auction
under this paragraph, eligible lenders that
desire to serve as an eligible lender of last
resort shall submit an application to the
Secretary at such time and in such manner as
the Secretary may determine. Such application
shall include an assurance that the eligible
lender will meet the prequalification
requirements described in subparagraph (B).
``(iii) Geographic location.--The Secretary
shall identify an eligible lender of last
resort for each State.
``(iv) Notification timing.--The Secretary
shall not identify any eligible lender of last
resort until after the announcement of all the
winning bids for a State auction for any year.
``(J) Guarantee against losses.--The Secretary
guarantees the eligible Federal PLUS Loans made under
this paragraph against losses resulting from the
default of a parent borrower in an amount equal to 99
percent of the unpaid principal and interest due on the
loan.
``(K) Loan fees.--The Secretary shall not collect a
loan fee under section 438(d) with respect to an
eligible Federal Plus Loan originated under this
paragraph.
``(L) Consolidation.--
``(i) In general.--An eligible lender who
is permitted to originate eligible Federal PLUS
Loans for a borrower under this paragraph shall
have the option to consolidate such loans into
1 loan.
``(ii) Notification.--In the event a
borrower with eligible Federal PLUS Loans made
under this paragraph wishes to consolidate the
loans, the borrower shall notify the eligible
lender who originated the loans under this
paragraph.
``(iii) Limitation on eligible lender
option to consolidate.--The option described in
clause (i) shall not apply if--
``(I) the borrower includes in the
notification in clause (ii)
verification of consolidation terms and
conditions offered by an eligible
lender other than the eligible lender
described in clause (i); and
``(II) not later than 10 days after
receiving such notification from the
borrower, the eligible lender described
in clause (i) does not agree to match
such terms and conditions, or provide
more favorable terms and conditions to
such borrower than the offered terms
and conditions described in subclause
(I).
``(iv) Consolidation of additional loans.--
If a borrower has a Federal Direct PLUS Loan or
a loan made on behalf of a dependent student
under section 428B and seeks to consolidate
such loan with an eligible Federal PLUS Loan
made under this paragraph, then the eligible
lender that originated the borrower's loan
under this paragraph may include in the
consolidation under this subparagraph a Federal
Direct PLUS Loan or a loan made on behalf of a
dependent student under section 428B, but only
if--
``(I) in the case of a Federal
Direct PLUS Loan, the eligible lender
agrees, not later than 10 days after
the borrower requests such
consolidation from the lender, to match
the consolidation terms and conditions
that would otherwise be available to
the borrower if the borrower
consolidated such loans in the loan
program under part D; or
``(II) in the case of a loan made
on behalf of a dependent student under
section 428B, the eligible lender
agrees, not later than 10 days after
the borrower requests such
consolidation from the lender, to match
the consolidation terms and conditions
offered by an eligible lender other
than the eligible lender that
originated the borrower's loans under
this paragraph.
``(v) Special allowance on consolidation
loans that include loans made under this
paragraph.--The applicable special allowance
payment for loans consolidated under this
paragraph shall be equal to the lesser of--
``(I) the weighted average of the
special allowance payment on such
loans, except that such weighted
average shall exclude the special
allowance payment for any Federal
Direct PLUS Loan included in the
consolidation; or
``(II) the result of--
``(aa) the average of the
bond equivalent rates of the
quotes of the 3-month
commercial paper (financial)
rates in effect for each of the
days in such quarter as
reported by the Federal Reserve
in Publication H-15 (or its
successor) for such 3-month
period; plus
``(bb) 1.59 percent.
``(vi) Interest payment rebate fee.--Any
loan under section 428C consolidated under this
paragraph shall not be subject to the interest
payment rebate fee under section 428C(f).
``(c) College Access Partnership Grant Program.--
``(1) Purpose.--It is the purpose of this subsection to
make payments to States to assist the States in carrying out
the activities and services described in paragraph (7) in order
to increase access to higher education for students in the
State.
``(2) Authorization and appropriations.--There are
authorized to be appropriated, and there are appropriated,
$113,000,000 for each of the fiscal years 2008 and 2009 to
carry out this subsection.
``(3) Program authorized.--
``(A) Grants authorized.--From amounts appropriated
under paragraph (2), the Secretary shall award grants,
from allotments under paragraph (4), to States having
applications approved under paragraph (5), to enable
the State to pay the Federal share of the costs of
carrying out the activities and services described in
paragraph (7).
``(B) Federal share; non-federal share.--
``(i) Federal share.--The amount of the
Federal share under this subsection for a
fiscal year shall be equal to \2/3\ of the
costs of the activities and services described
in paragraph (7).
``(ii) Non-federal share.--The amount of
the non-Federal share under this subsection
shall be equal to \1/3\ of the costs of the
activities and services described in paragraph
(7). The non-Federal share may be in cash or
in-kind, and may be provided from a combination
of State resources and contributions from
private organizations in the State.
``(C) Reduction for failure to pay non-federal
share.--If a State fails to provide the full non-
Federal share required under this paragraph, the
Secretary shall reduce the amount of the grant payment
under this subsection proportionately.
``(D) Temporary ineligibility for subsequent
payments.--
``(i) In general.--The Secretary shall
determine a State to be temporarily ineligible
to receive a grant payment under this
subsection for a fiscal year if--
``(I) the State fails to submit an
annual report pursuant to paragraph (9)
for the preceding fiscal year; or
``(II) the Secretary determines,
based on information in such annual
report, that the State is not
effectively meeting the conditions
described under paragraph (8) and the
goals of the application under
paragraph (5).
``(ii) Reinstatement.--If the Secretary
determines a State is ineligible under clause
(i), the Secretary may enter into an agreement
with the State setting forth the terms and
conditions under which the State may regain
eligibility to receive payments under this
subsection.
``(4) Determination of allotment.--
``(A) Amount of allotment.--Subject to subparagraph
(B), in making grant payments to States under this
subsection, the allotment to each State for a fiscal
year shall be equal to the sum of--
``(i) the amount that bears the same
relation to 50 percent of the amount
appropriated under paragraph (2) for such
fiscal year as the number of residents in the
State aged 5 through 17 who are living below
the poverty line applicable to the resident's
family size (as determined under section 673(2)
of the Community Service Block Grant Act) bears
to the total number of such residents in all
States; and
``(ii) the amount that bears the same
relation to 50 percent of the amount
appropriated under paragraph (2) for such
fiscal year as the number of residents in the
State aged 15 through 44 who are living below
the poverty line applicable to the individual's
family size (as determined under section 673(2)
of the Community Service Block Grant Act) bears
to the total number of such residents in all
States.
``(B) Minimum amount.--No State shall receive an
allotment under this subsection for a fiscal year in an
amount that is less than \1/2\ of 1 percent of the
total amount appropriated under paragraph (2) for such
fiscal year.
``(5) Submission and contents of application.--
``(A) In general.--For each fiscal year for which a
State desires a grant payment under paragraph (3), the
State agency with jurisdiction over higher education,
or another agency designated by the Governor of the
State to administer the program under this subsection,
shall submit an application to the Secretary at such
time, in such manner, and containing the information
described in subparagraph (B).
``(B) Application.--An application submitted under
subparagraph (A) shall include the following:
``(i) A description of the State's capacity
to administer the grant under this subsection
and report annually to the Secretary on the
activities and services described in paragraph
(7).
``(ii) A description of the State's plan
for using the grant funds to meet the
requirements of paragraphs (7) and (8),
including plans for how the State will make
special efforts to provide such benefits to
students in the State that are underrepresented
in postsecondary education.
``(iii) A description of how the State will
provide or coordinate the non-Federal share
from State and private funds, if applicable.
``(iv) A description of the existing
structure that the State has in place to
administer the activities and services under
paragraph (7) or the plan to develop such
administrative capacity.
``(6) Payment to eligible nonprofit organizations.--A State
receiving a payment under this subsection may elect to make a
payment to 1 or more eligible nonprofit organizations,
including an eligible not-for-profit holder (as defined in
section 438(p)), or a partnership of such organizations, in the
State in order to carry out activities or services described in
paragraph (7), if the eligible nonprofit organization or
partnership--
``(A) was in existence on the day before the date
of enactment of the Higher Education Access Act of
2007; and
``(B) as of the day of such payment, is
participating in activities and services related to
increasing access to higher education, such as those
activities and services described in paragraph (7).
``(7) Allowable uses.--
``(A) In general.--Subject to subparagraph (C), a
State may use a grant payment under this subsection
only for the following activities and services,
pursuant to the conditions under paragraph (8):
``(i) Information for students and families
regarding--
``(I) the benefits of a
postsecondary education;
``(II) postsecondary education
opportunities;
``(III) planning for postsecondary
education; and
``(IV) career preparation.
``(ii) Information on financing options for
postsecondary education and activities that
promote financial literacy and debt management
among students and families.
``(iii) Outreach activities for students
who may be at risk of not enrolling in or
completing postsecondary education.
``(iv) Assistance in completion of the Free
Application for Federal Student Aid or other
common financial reporting form under section
483(a).
``(v) Need-based grant aid for students.
``(vi) Professional development for
guidance counselors at middle schools and
secondary schools, and financial aid
administrators and college admissions
counselors at institutions of higher education,
to improve such individuals' capacity to assist
students and parents with--
``(I) understanding--
``(aa) entrance
requirements for admission to
institutions of higher
education; and
``(bb) State eligibility
requirements for Academic
Competitiveness Grants or
National SMART Grants under
section 401A, and other
financial assistance that is
dependent upon a student's
coursework;
``(II) applying to institutions of
higher education;
``(III) applying for Federal
student financial assistance and other
State, local, and private student
financial assistance and scholarships;
``(IV) activities that increase
students' ability to successfully
complete the coursework required for a
postsecondary degree, including
activities such as tutoring or
mentoring; and
``(V) activities to improve
secondary school students' preparedness
for postsecondary entrance
examinations.
``(vii) Student loan cancellation or
repayment (as applicable), or interest rate
reductions, for borrowers who are employed in a
high-need geographical area or a high-need
profession in the State, as determined by the
State.
``(B) Prohibited uses.--Funds made available under
this subsection shall not be used to promote any
lender's loans.
``(C) Use of funds for administrative purposes.--A
State may use not more than 2 percent of the total
amount of the Federal share and non-Federal share
provided under this subsection for administrative
purposes relating to the grant under this subsection.
``(8) Special conditions.--
``(A) Availability to students and families.--A
State receiving a grant payment under this subsection
shall--
``(i) make the activities and services
described in clauses (i) through (vi) of
paragraph (7)(A) that are funded under the
payment available to all qualifying students
and families in the State;
``(ii) allow students and families to
participate in the activities and services
without regard to--
``(I) the postsecondary institution
in which the student enrolls;
``(II) the type of student loan the
student receives;
``(III) the servicer of such loan;
or
``(IV) the student's academic
performance;
``(iii) not charge any student or parent a
fee or additional charge to participate in the
activities or services; and
``(iv) in the case of an activity providing
grant aid, not require a student to meet any
condition other than eligibility for Federal
financial assistance under this title, except
as provided for in the loan cancellation or
repayment or interest rate reductions described
in paragraph (7)(A)(vii).
``(B) Priority.--A State receiving a grant payment
under this subsection shall, in carrying out any
activity or service described in paragraph (7)(A) with
the grant funds, prioritize students and families who
are living below the poverty line applicable to the
individual's family size (as determined under section
673(2) of the Community Service Block Grant Act).
``(C) Disclosures.--
``(i) Organizational disclosures.--In the
case of a State that has chosen to make a
payment to an eligible not-for-profit holder in
the State in accordance with paragraph (6), the
holder shall clearly and prominently indicate
the name of the holder and the nature of its
work in connection with any of the activities
carried out, or any information or services
provided, with such funds.
``(ii) Informational disclosures.--Any
information about financing options for higher
education provided through an activity or
service funded under this subsection shall--
``(I) include information to
students and the students' parents of
the availability of Federal, State,
local, institutional, and other grants
and loans for postsecondary education;
and
``(II) present information on
financial assistance for postsecondary
education that is not provided under
this title in a manner that is clearly
distinct from information on student
financial assistance under this title.
``(D) Coordination.--A State receiving a grant
payment under this subsection shall attempt to
coordinate the activities carried out with the payment
with any existing activities that are similar to such
activities, and with any other entities that support
the existing activities in the State.
``(9) Report.--A State receiving a payment under this
subsection shall prepare and submit an annual report to the
Secretary on the program under this subsection and on the
implementation of the activities and services described in
paragraph (7). The report shall include--
``(A) each activity or service that was provided to
students and families over the course of the year;
``(B) the cost of providing each activity or
service;
``(C) the number, and percentage, if feasible and
applicable, of students who received each activity or
service; and
``(D) the total contributions from private
organizations included in the State's non-Federal share
for the fiscal year.
``(10) Sunset.--The authority provided to carry out this
subsection shall expire on September 30, 2009.
``(d) Financial Literacy Program Established.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means a nonprofit or for-profit
organization, or a consortium of such organizations, with a
demonstrated record of effectiveness in providing financial
literacy services to students at the secondary and
postsecondary level.
``(2) Program established.--From amounts appropriated under
paragraph (6), the Secretary shall award grants to eligible
entities to enable the eligible entities to increase the
financial literacy of students who are enrolled or will enroll
in an institution of higher education, including providing
instruction to students on topics such as the understanding of
loan terms and conditions, the calculation of interest rates,
refinancing of debt, debt management, and future savings for
education, health care and long-term care, and retirement.
``(3) Grant period; renewability.--Each grant under this
subsection shall be awarded for one 5-year period, and may not
be renewed.
``(4) Matching requirements.--Each eligible entity that
receives a grant under this subsection shall provide, from non-
Federal sources, an amount (which may be provided in cash or in
kind) to carry out the activities supported by the grant equal
to 100 percent of the amount received under the grant.
``(5) Applications.--An eligible entity desiring a grant
under this subsection shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require. Such
application shall include the following:
``(A) A detailed description of the eligible
entity's plans for providing financial literacy
activities and the students and schools the grant will
target.
``(B) The eligible entity's plan for using the
matching grant funds, including how the funds will be
used to provide financial literacy programs to
students.
``(C) A plan to ensure the viability of the work of
the eligible entity beyond the grant period.
``(D) A detailed description of the activities that
carry out this subsection and that are conducted by the
eligible entity at the time of the application, and how
the matching grant funds will assist the eligible
entity with expanding and enhancing such activities.
``(E) A description of the strategies that will be
used to target activities under the grant to students
in secondary school and enrolled in institutions of
higher education who are historically underrepresented
in institutions of higher education and who may benefit
from the activities of the eligible entity.
``(6) Authorization and appropriations.--There are
authorized to be appropriated, and there are appropriated,
$10,000,000 for each of the fiscal years 2008 and 2009 to carry
out this subsection.
``(e) Secondary School Graduation and College Enrollment Program.--
``(1) Definitions.--In this subsection:
``(A) Eligible local educational agency.--
``(i) In general.--The term `eligible local
educational agency' means a local educational
agency with a secondary school graduation rate
of 70 percent or less--
``(I) in the aggregate; or
``(II) applicable to 2 or more
subgroups of secondary school students
served by the local educational agency
that are described in clause (ii).
``(ii) Subgroups.--A subgroup referred to
in clause (i)(II) is--
``(I) a subgroup of economically
disadvantaged students; or
``(II) a subgroup of students from
a major racial or ethnic group.
``(B) Eligible entity.--The term `eligible entity'
means a consortium of a nonprofit organization and an
institution of higher education with a demonstrated
record of effectiveness in raising secondary school
graduation rates and postsecondary enrollment rates.
``(2) Program established.--From amounts appropriated under
paragraph (7), the Secretary shall award grants to eligible
entities to enable the eligible entities to carry out
activities that--
``(A) create models of excellence for academically
rigorous secondary schools, including early college
secondary schools;
``(B) increase secondary school graduation rates;
``(C) raise the rate of students who enroll in an
institution of higher education;
``(D) improve instruction and access to supports
for struggling secondary school students;
``(E) create, implement, and utilize early warning
systems to help identify students at risk of dropping
out of secondary school; and
``(F) improve communication between parents,
students, and schools concerning requirements for
secondary school graduation, postsecondary education
enrollment, and financial assistance available for
attending postsecondary education.
``(3) Use of funds.--An eligible entity that receives a
grant under this subsection shall use the funds--
``(A) to implement a college-preparatory curriculum
for all students in a secondary school served by the
eligible local educational agency that is, at a
minimum, aligned with a rigorous secondary school
program of study;
``(B) to implement accelerated academic catch-up
programs, for students who enter secondary school not
meeting the proficient levels of student academic
achievement on the State academic assessments for
mathematics, reading or language arts, or science under
section 1111(b)(3) of the Elementary and Secondary
Education Act of 1965, that enable such students to
meet the proficient levels of achievement and remain on
track to graduate from secondary school on time with a
regular secondary school diploma;
``(C) to implement an early warning system to
quickly identify students at risk of dropping out of
secondary school, including systems that track student
absenteeism; and
``(D) to implement a comprehensive postsecondary
education guidance program that--
``(i) will ensure that all students are
regularly notified throughout the students'
time in secondary school of secondary school
graduation requirements and postsecondary
education entrance requirements; and
``(ii) provides guidance and assistance to
students in applying to an institution of
higher education and in applying for Federal
financial assistance and other State, local,
and private financial assistance and
scholarships.
``(4) Grant period; renewability.--Each grant under this
subsection shall be awarded for one 5-year period, and may not
be renewed.
``(5) Matching requirements.--Each eligible entity that
receives a grant under this subsection shall provide, from non-
Federal sources, an amount (which may be provided in cash or
in-kind) to carry out the activities supported by the grant
equal to 100 percent of the amount received under the grant.
``(6) Applications.--An eligible entity desiring a grant
under this subsection shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
``(7) Authorization and appropriations.--There are
authorized to be appropriated, and there are appropriated,
$25,000,000 for each of the fiscal years 2008 and 2009 to carry
out this subsection.''.
SEC. 702. INNOCENT CHILD PROTECTION.
(a) In General.--It shall be unlawful for any authority, military
or civil, of the United States, a State, or any district, possession,
commonwealth or other territory under the authority of the United
States, to carry out a sentence of death on a woman while she carries a
child in utero.
(b) Definition.--In this section, the term ``child in utero'' means
a member of the species homo sapiens, at any stage of development, who
is carried in the womb.
TITLE VIII--OTHER MATTERS
SEC. 801. SENSE OF SENATE ON THE DETAINEES AT GUANTANAMO BAY, CUBA.
(a) Findings.--The Senate makes the following findings:
(1) During the War on Terror, senior members of al Qaeda
have been captured by the United States military and
intelligence personnel and their allies.
(2) Many such senior members of al Qaeda have since been
transferred to the detention facility at Guantanamo Bay, Cuba.
(3) These senior al Qaeda members detained at Guantanamo
Bay include Khalid Sheikh Mohammed, who was the mastermind
behind the terrorist attacks of September 11, 2001, which
killed approximately 3,000 innocent people.
(4) These senior al Qaeda members detained at Guantanamo
Bay also include Majid Khan, who was tasked to develop plans to
poison water reservoirs inside the United States, was
responsible for conducting a study on the feasibility of a
potential gas station bombing campaign inside the United
States, and was integral in recommending Iyman Farris, who
plotted to destroy the Brooklyn Bridge, to be an operative for
al Qaeda inside the United States.
(5) These senior al Qaeda members detained at Guantanamo
Bay also include Abd al-Rahim al-Nashiri, who was an al Qaeda
operations chief for the Arabian Peninsula and who, at the
request of Osama bin Laden, orchestrated the attack on the
U.S.S. Cole, which killed 17 United States sailors.
(6) These senior al Qaeda members detained at Guantanamo
Bay also include Ahmed Khalfan Ghailani, who played a major
role in the East African Embassy Bombings, which killed more
than 250 people.
(7) The Department of Defense has estimated that of the
approximately 415 detainees who have been released or
transferred from the detention facility at Guantanamo Bay, at
least 29 have subsequently taken up arms against the United
States and its allies.
(8) Osama bin Laden, the leader of al Qaeda, said in his
1998 fatwa against the United States, that ``[t]he ruling to
kill the Americans and their allies--civilians and military--is
an individual duty for every Muslim who can do it in any
country in which it is possible to do it''.
(9) In the same fatwa, bin Laden said, ``[w]e--with God's
help--call on every Muslim who believes in God and wishes to be
rewarded to comply with God's order to kill the Americans and
plunder their money wherever and whenever they find it''.
(10) It is safer for American citizens if captured members
of al Qaeda and other terrorist organizations are not housed on
American soil where they could more easily carry out their
mission to kill innocent civilians.
(b) Sense of Senate.--It is the sense of the Senate that detainees
housed at Guantanamo Bay, Cuba, including senior members of al Qaeda,
should not be released into American society, nor should they be
transferred stateside into facilities in American communities and
neighborhoods.
Attest:
Secretary.
110th CONGRESS
1st Session
H. R. 2669
_______________________________________________________________________
AMENDMENT