[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2669 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 2669
To provide for reconciliation pursuant to section 601 of the concurrent
resolution on the budget for fiscal year 2008.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 12, 2007
Mr. George Miller of California (for himself and Mr. Hinojosa)
introduced the following bill; which was referred to the Committee on
Education and Labor
_______________________________________________________________________
A BILL
To provide for reconciliation pursuant to section 601 of the concurrent
resolution on the budget for fiscal year 2008.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be referred to as the ``College Cost
Reduction Act of 2007''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
TITLE I--INVESTING IN STUDENT AID
Part A--Increasing the Purchasing Power of Pell Grants
Sec. 101. Mandatory Pell Grant Increases.
Sec. 102. Support for working students.
Sec. 103. Simplified needs test and automatic zero improvements.
Sec. 104. Definitions.
Part B--Making Student Loans More Affordable
Sec. 111. Interest rate reductions.
Sec. 112. Increases in loan limits.
Sec. 113. Reduction of lender special allowance payments.
Sec. 114. Elimination of exceptional performer status for lenders.
Sec. 115. Reduction of lender insurance percentage.
Sec. 116. Guaranty agency collection retention.
Sec. 117. Unit costs for account maintenance fees.
Sec. 118. Increased loan fees from lenders.
Sec. 119. Student loan information.
Part C--Rewarding Service in Repayment
Sec. 141. Loan forgiveness for service in areas of national need.
``Sec. 428K. Loan forgiveness for service in areas of national
need.
Sec. 142. Income contingent repayment for public sector employees.
Sec. 143. Income-based repayment.
``Sec. 493C. Income-based repayment.
Sec. 144. Definition of economic hardship.
Sec. 145. Deferrals.
Sec. 146. Maximum repayment period.
TITLE II--REDUCING THE COST OF COLLEGE
Sec. 201. State commitment to affordable college education.
``Sec. 132. State commitment to affordable college education.
Sec. 202. Consumer information and public accountability in higher
education.
``Sec. 131. Consumer information and public accountability in
higher education.
Sec. 203. Incentives and rewards for low tuition.
``Sec. 401B. Incentives and rewards for low tuition.
Sec. 204. Cooperative education rewards for institutions that restrain
tuition increases.
``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT
RESTRAIN TUITION INCREASES
``Sec. 801. Eligible institutions.
``Sec. 802. Authorization of appropriations; reservations.
``Sec. 803. Grants for cooperative education.
``Sec. 804. Demonstration and innovation projects; training and
resource centers; and research.
TITLE III--ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY CLASSROOM
Part A--TEACH Grants
Sec. 301. TEACH Grants.``subpart 9--teach grants
``Sec. 420L. Program established.
``Sec. 420M. Eligibility; applications; selection.
``Sec. 420N. Definitions.
``Sec. 420O. Program period and funding.
Part B--Centers of Excellence
Sec. 311. Centers of excellence.
``Part C--Centers of Excellence
``Sec. 231. Definitions.
``Sec. 232. Centers of excellence.
``Sec. 233. Appropriations.
TITLE IV--COLLEGE ACCESS CHALLENGE GRANT PROGRAM
Sec. 401. College Access Challenge grants.
SEC. 2. REFERENCES; EFFECTIVE DATE.
(a) References.--Except as otherwise expressly provided, whenever
in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
(b) Effective Date.--Except as otherwise expressly provided
therein, the amendments made by this Act shall be effective on October
1, 2007.
TITLE I--INVESTING IN STUDENT AID
PART A--INCREASING THE PURCHASING POWER OF PELL GRANTS
SEC. 101. MANDATORY PELL GRANT INCREASES.
(a) Extension of Authority.--Section 401(a) (20 U.S.C. 1070a(a)) is
amended by striking ``fiscal year 2004'' and inserting ``fiscal year
2013''.
(b) Funding for Increases.--Section 401(b) (20 U.S.C. 1070a(b)) is
amended by adding at the end the following new paragraph:
``(9) Additional funds.--
``(A) In general.--There are authorized to be
appropriated, and there are appropriated, to carry out
subparagraph (B) of this paragraph (in addition to any
other amounts appropriated to carry out this section
and out of any money in the Treasury not otherwise
appropriated) the following amounts:
``(i) $420,000,000 for fiscal year 2008;
``(ii) $870,000,000 for fiscal year 2009;
``(iii) $1,330,000,000 for fiscal year
2010;
``(iv) $1,820,000,000 for fiscal year 2011;
``(v) $2,340,000,000 for fiscal year 2012;
``(vi) $2,390,000,000 for fiscal year 2013;
``(vii) $2,430,000,000 for fiscal year
2014;
``(viii) $2,470,000,000 for fiscal year
2015;
``(ix) $2,500,000,000 for fiscal year 2016;
and
``(x) $2,520,000,000 for fiscal year 2017.
``(B) Increase in federal pell grants.--The amounts
made available pursuant to subparagraph (A) of this
paragraph shall be used to increase the amount of the
maximum Pell Grant for which a student shall be
eligible during an award year, as specified in the last
enacted appropriation Act applicable to that award
year, by--
``(i) $100 for award year 2008-2009;
``(ii) $200 for award year 2009-2010;
``(iii) $300 for award year 2010-2011;
``(iv) $400 for award year 2011-2012; and
``(v) $500 for award year 2012-2013 and
each subsequent award year.
``(C) Use of fiscal year funds for award years.--
The amounts made available by subparagraph (A) for any
fiscal year shall be available and remain available for
use under subparagraph (B) for the award year that
begins in such fiscal year.''.
(c) Authorized Maximums.--Section 401(b)(2)(A) (20 U.S.C.
1070a(b)(2)(A)) is amended to read as follows:
``(2)(A) The amount of the Federal Pell Grant for a student
eligible under this part shall be--
``(i) $7,600 for academic year 2008-2009;
``(ii) $8,600 for academic year 2009-2010;
``(iii) $9,600 for academic year 2010-2011;
``(iv) $10,600 for academic year 2011-2012;
``(v) $11,600 for academic year 2012-2013,
less an amount equal to the amount determined to be the
expected family contribution with respect to that
student for that year.''.
(d) Tuition Sensitivity.--
(1) Amendment.--Section 401(b) (20 U.S.C. 1070a(b)) is
further amended--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) through (9) as
paragraphs (3) through (8), respectively.
(2) Effective date.--The amendments made by paragraph (1)
of this subsection are effective on the date of enactment of
this Act.
(e) Multiple Grants.--Paragraph (5) of section 401(b) (as
redesignated by subsection (d)(2)) is amended to read as follows:
``(5) Year-round pell grants.--The Secretary is authorized,
for students enrolled full time in a baccalaureate or
associate's degree program of study at an eligible institution,
to award such students not more than two Pell grants during an
award year to permit such students to accelerate progress
toward their degree objectives by enrolling in academic
programs for 12 months rather than 9 months.''.
(f) Academic Competitiveness Grants.--Section 401A (as amended by
section 8003 of Public Law 109-171) is amended--
(1) in subsection (c)(3)(A)(ii), by inserting ``, except as
part of a secondary school program of study'' before the
semicolon;
(2) by redesignating subsection (g) as subsection (h); and
(3) by inserting after subsection (f) the following new
subsection:
``(g) Determination of Academic Year.--Notwithstanding section
481(a)(2), for the purpose of determining eligibility for a grant under
this section, a student shall be considered to be enrolled or accepted
for enrollment in the first, second, third, or fourth academic year of
a program of undergraduate education based on the student's class
standing, as determined by the institution of higher education at which
the student is enrolled or accepted for enrollment.''.
SEC. 102. 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 the 2009-2010 academic year,
$3,750;
``(ii) for the 2010-2011 academic year,
$4,500;
``(iii) for the 2011-2012 academic year,
$5,250; and
``(iv) for the 2012-2013 academic year,
$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 the 2009-2010
academic year, $6,690;
``(bb) for the 2010-2011
academic year, $7,160;
``(cc) for the 2011-2012
academic year, $7,630; and
``(dd) for the 2012-2013
academic year, $8,090; and
``(II) for married students where 1
is enrolled pursuant to subsection
(a)(2)--
``(aa) for the 2009-2010
academic year, $10,720;
``(bb) for the 2010-2011
academic year, $11,470;
``(cc) for the 2011-2012
academic year, $12,220; and
``(dd) for the 2012-2013
academic year, $12,960;''.
(c) Updated Tables and Amounts.--Section 478(b) (20 U.S.C.
1087rr(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``Revised tables.--For each'' and
inserting ``Revised tables.--
``(A) In general.--For each'';
(B) in subparagraph (A) (as designated by
subparagraph (A)), in the third sentence--
(i) by striking ``preceding sentence'' and
inserting ``subparagraph (A)''; and
(ii) by striking ``For the 2007-2008'' and
inserting the following:
``(B) Special rule for 2007-2008 academic year.--
For the 2007-2008''; and
(C) by adding at the end the following:
``(C) Special rule for 2009-2010 through 2012-2013
academic years.--For the 2009-2010 academic year, and
for each of the 3 succeeding academic years, the
Secretary shall revise the tables in accordance with
this paragraph, except that, for the table in section
477(b)(4), the Secretary shall revise such table by
increasing the amounts contained in such table for the
preceding academic year by 10 percent.''; 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--
``(A) for academic year 2008-2009, by increasing
each of the dollar amounts contained in such section as
such section was in effect on the day before the date
of enactment of the College Cost Reduction Act of 2007
by a percentage equal to the estimated percentage
increase in the Consumer Price Index (as determined by
the Secretary) between December 2006 and the December
next preceding the beginning of such academic year, and
rounding the result to the nearest $10; and
``(B) for each academic year after 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 2006 and the December next preceding
the beginning of such academic year, and rounding the
result to the nearest $10;''.
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on October 1, 2008, and the amendment made by
subsection (c) shall take effect on July 1, 2008.
SEC. 103. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO IMPROVEMENTS.
(a) Simplified Needs Test.--Section 479 (20 U.S.C. 1087ss) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)(A)(i)--
(i) in subclause (II), by striking ``or''
after the semicolon;
(ii) by redesignating subclause (III) as
subclause (IV);
(iii) by inserting after subclause (II) the
following:
``(III) 1 of whom is a dislocated
worker; or''; and
(iv) in subclause (IV) (as redesignated by
clause (ii)), by striking ``12-month'' and
inserting ``24-month''; and
(B) in subparagraph (B)(i)--
(i) in subclause (II), by striking ``or''
after the semicolon;
(ii) by redesignating subclause (III) as
subclause (IV);
(iii) by inserting after subclause (II) the
following:
``(III) 1 of whom is a dislocated
worker; or''; and
(iv) in subclause (IV) (as redesignated by
clause (ii)), by striking ``12-month'' and
inserting ``24-month'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) in clause (ii), by striking
``or'' after the semicolon;
(II) by redesignating clause (iii)
as clause (iv);
(III) by inserting after clause
(ii) the following:
``(iii) 1 of whom is a dislocated worker;
or''; and
(IV) in clause (iv) (as
redesignated by subclause (II)), by
striking ``12-month'' and inserting
``24-month''; and
(ii) in subparagraph (B), by striking
``$20,000'' and inserting ``$30,000''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (ii), by striking
``or'' after the semicolon;
(II) by redesignating clause (iii)
as clause (iv);
(III) by inserting after clause
(ii) the following:
``(iii) is a dislocated worker; or''; and
(IV) in clause (iv) (as
redesignated by subclause (II)), by
striking ``12-month'' and inserting
``24-month''; and
(ii) in subparagraph (B), by striking
``$20,000'' and inserting ``$30,000''; and
(C) in the flush matter following paragraph (2)(B),
by adding at the end the following: ``The Secretary
shall annually adjust the income level necessary to
qualify an applicant for the zero expected family
contribution. The income level shall be adjusted
according to increases in the Consumer Price Index, as
defined in section 478(f).''; and
(3) in subsection (d)--
(A) by redesignating paragraphs (1) through (6) as
subparagraphs (A) through (F), respectively;
(B) by striking ``(d) Definition'' and all that
follows through ``the term'' and inserting the
following:
``(d) Definitions.--In this section:
``(1) Dislocated worker.--The term `dislocated worker' has
the meaning given the term in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801).
``(2) Means-tested federal benefit program.--The term''.
(b) Discretion of Student Financial Aid Administrators.--Section
479A(a) (20 U.S.C. 1087tt(a)) is amended in the third sentence by
inserting ``a family member who is a dislocated worker (as defined in
section 101 of the Workforce Investment Act of 1998 (29 U.S.C.
2801)),'' after ``recent unemployment of a family member,''.
(c) Effective Date.--The amendments made by this section shall be
effective on July 1, 2009.
SEC. 104. DEFINITIONS.
(a) Total Income.--Section 480(a) (20 U.S.C. 1087vv(a)) is
amended--
(1) in paragraph (1), by inserting before the period at the
end the following: ``, except that the Secretary may, by
regulation, provide for the use of the previous tax year when
and to the extent necessary to carry out the sense of Congress
in section 133 of the College Cost Reduction Act of 2007''; and
(2) in paragraph (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,''.
(b) Untaxed Income and Benefits.--Section 480(b) (20 U.S.C.
1087vv(b)) is amended to read as follows:
``(b) Untaxed Income and Benefits.--
``(1) The term `untaxed income and benefits' means--
``(A) child support received;
``(B) workman's compensation;
``(C) veteran's benefits such as death pension,
dependency, and indemnity compensation, but excluding
veterans' education benefits as defined in subsection
(c);
``(D) interest on tax-free bonds;
``(E) housing, food, and other allowances
(excluding rent subsidies for low-income housing) for
military, clergy, and others (including cash payments
and cash value of benefits);
``(F) cash support or any money paid on the
student`s behalf, except, for dependent students, funds
provided by the student's parents;
``(G) untaxed portion of pensions;
``(H) payments to individual retirement accounts
and Keogh accounts excluded from income for Federal
income tax purposes; and
``(I) any other untaxed income and benefits, such
as Black Lung Benefits, Refugee Assistance, railroad
retirement benefits, or Job Training Partnership Act
noneducational benefits or benefits received through
participation in employment and training activities
under title I of the Workforce Investment Act of 1998.
``(2) The term `untaxed income and benefits' shall not
include the amount of additional child tax credit claimed for
Federal income tax purposes.''.
(c) Assets.--Section 480(f) (20 U.S.C. 1087vv(f)) is amended--
(1) in paragraph (3), by striking ``shall not be considered
an asset of a student for purposes of section 475'' and
inserting ``shall be considered an asset of the parent for
purposes of section 475'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(3) by inserting after paragraph (3) the following:
``(4) A qualified education benefit shall be considered an
asset of the student for purposes of section 476 and 477.''.
(d) Other Financial Assistance.--Section 480(j)(2) (20 U.S.C.
1087vv(j)(2)) is amended 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''.
(e) Effective Date.--The amendments made by this section shall be
effective on July 1, 2009.
PART B--MAKING STUDENT LOANS MORE AFFORDABLE
SEC. 111. INTEREST RATE REDUCTIONS.
(a) FFEL Interest Rates.--
(1) Section 427A(l) (20 U.S.C. 1077a(l)) is amended by
adding at the end the following new paragraph:
``(4) Reduced rates for undergraduate subsidized loans.--
Notwithstanding subsection (h) and paragraph (1) of this
subsection, with respect to any loan to an undergraduate
student made, insured, or guaranteed under this part (other
than a loan made pursuant to section 428B, 428C, or 428H) for
which the first disbursement is made on or after July 1, 2006,
and before July 1, 2013, the applicable rate of interest shall
be as follows:
``(A) For a loan for which the first disbursement
is made on or after July 1, 2006, and before July 1,
2008, 6.80 percent on the unpaid principal balance of
the loan.
``(B) For a loan for which the first disbursement
is made on or after July 1, 2008, and before July 1,
2009, 6.12 percent on the unpaid principal balance of
the loan.
``(C) For a loan for which the first disbursement
is made on or after July 1, 2009, and before July 1,
2010, 5.44 percent on the unpaid principal balance of
the loan.
``(D) For a loan for which the first disbursement
is made on or after July 1, 2010, and before July 1,
2011, 4.76 percent on the unpaid principal balance of
the loan.
``(E) For a loan for which the first disbursement
is made on or after July 1, 2011, and before July 1,
2012, 4.08 percent on the unpaid principal balance of
the loan.
``(F) For a loan for which the first disbursement
is made on or after July 1, 2012 and before July 1,
2013, 3.40 percent on the unpaid principal balance of
the loan.''.
(2) Special allowance cross reference.--Section
438(b)(2)(I)(ii)(II) (20 U.S.C. 1086(b)(2)(I)(ii)(II)) is
amended by striking ``section 427A(l)(1)'' and inserting
``section 427A(l)(1) or (l)(4)''.
(b) Direct Loan Interest Rates.--Section 455(b)(7) (20 U.S.C.
1087e(b)(7)) is amended by adding at the end the following new
subparagraph:
``(D) Reduced rates for undergraduate fdsl.--
Notwithstanding the preceding paragraphs of this
subsection, for Federal Direct Stafford Loans made to
undergraduate students for which the first disbursement
is made on or after July 1, 2006, and before July 1,
2013, the applicable rate of interest shall be as
follows:
``(i) For a loan for which the first
disbursement is made on or after July 1, 2006,
and before July 1, 2008, 6.80 percent on the
unpaid principal balance of the loan.
``(ii) For a loan for which the first
disbursement is made on or after July 1, 2008,
and before July 1, 2009, 6.12 percent on the
unpaid principal balance of the loan.
``(iii) For a loan for which the first
disbursement is made on or after July 1, 2009,
and before July 1, 2010, 5.44 percent on the
unpaid principal balance of the loan.
``(iv) For a loan for which the first
disbursement is made on or after July 1, 2010,
and before July 1, 2011, 4.76 percent on the
unpaid principal balance of the loan.
``(v) For a loan for which the first
disbursement is made on or after July 1, 2011,
and before July 1, 2012, 4.08 percent on the
unpaid principal balance of the loan.
``(vi) For a loan for which the first
disbursement is made on or after July 1, 2012,
and before July 1, 2013, 3.40 percent on the
unpaid principal balance of the loan.''.
SEC. 112. INCREASES IN LOAN LIMITS.
(a) Increase in Third and Subsequent Year Limits.--
(1) Federal insurance limits.--Section 425(a)(1)(A)(iii)
(20 U.S.C. 1075(a)(1)(A)(iii)) is amended by striking
``$5,500'' and inserting ``$7,500''.
(2) Guaranty limits.--Section 428(b)(1)(A)(iii)(I) (20
U.S.C. 1078(b)(1)(A)(iii)(I)) is amended by striking ``$5,500''
and inserting ``$7,500''.
(b) Increase in Aggregate Limits.--
(1) Federal insurance limits.--Section 425(a)(2)(A) (20
U.S.C. 1075(a)(2)(A)(i)) is amended--
(A) in clause (i), by striking ``$23,000'' and
inserting ``$30,500''; and
(B) in clause (ii), by striking ``$65,500'' and
inserting ``$73,000''.
(2) Guaranty limits.--Section 428(b)(1)(B) (20 U.S.C.
1078(b)(1)(A)(iii)(I)) is amended--
(A) in clause (i), by striking ``$23,000'' and
inserting ``$30,500''; and
(B) in clause (ii), by striking ``$65,500'' and
inserting ``$73,000''.
(c) Effective Date.--The amendments made by this section shall be
effective July 1, 2008.
SEC. 113. 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 ``clauses (ii), (iii), and
(iv)'' and inserting ``the following clauses''; and
(2) by adding at the end the following new clause:
``(vi) Reduction for loans on or after
october 1, 2007.--With respect to a loan on
which the applicable interest rate is
determined under section 427A(l), the
percentage to be added under clause (i)(III) in
computing the special allowance payment
pursuant to this subparagraph shall be the
following:
``(I) In general and plus loans.--
1.79 percent in the case of a loan
described in clause (i) or (iii) for
which the first disbursement of
principal is made on or after October
1, 2007.
``(II) In school and grace
period.--1.19 percent in the case of a
loan described in clause (ii)(II) for
which the first disbursement of
principal is made on or after October
1, 2007.
``(III) Consolidation loans.--2.09
percent in the case of a loan described
in clause (iv) for which the first
disbursement of principal is made on or
after October 1, 2007''.
SEC. 114. 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.
SEC. 115. REDUCTION OF LENDER INSURANCE PERCENTAGE.
(a) Amendment.--Subparagraph (G) of section 428(b)(1) (20 U.S.C.
1078(b)(1)(G)) is amended to read as follows:
``(G) insures 95 percent of the unpaid principal of
loans insured under the program, except that--
``(i) such program shall insure 100 percent
of the unpaid principal of loans made with
funds advanced pursuant to section 428(j) or
439(q); and
``(ii) notwithstanding the preceding
provisions of this subparagraph, such program
shall insure 100 percent of the unpaid
principal amount of exempt claims as defined in
subsection (c)(1)(G);''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect with respect to loans made on or after October 1, 2007.
SEC. 116. 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 23 percent of
such payments for use in accordance with
section 422B, except that beginning October 1,
2007, this subparagraph shall be applied by
substituting `16 percent' for `23 percent'.''.
SEC. 117. UNIT COSTS FOR 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 fiscal years
2006 and 2007, account''; and
(2) by adding at the end the following new paragraph:
``(2) For fiscal year 2008 and succeeding fiscal years.--
``(A) Unit cost basis.--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) of
this paragraph.
``(B) Determinations.--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--
``(I) dividing the total amount of
account maintenance fees paid under
subsection (a)(3) in fiscal year 2006,
by
``(II) the number of loans under
part B that were outstanding in that
fiscal year; and
``(ii) determine on October 1 of fiscal
year 2008 and each subsequent fiscal year, and
pay to each guaranty agency, an amount equal to
the product of the number of loans under part B
that are outstanding on October 1 of that
fiscal year and insured by that guaranty agency
multiplied by--
``(I) the amount determined under
clause (i); increased by
``(II) a percentage equal to the
percentage increase in the GDP price
index (as determined by the Bureau of
Labor Statistics of the Department of
Labor) between the calendar quarter
ending on June 30, 2006, and the
calendar quarter ending on the June 30
preceding such October 1 of such fiscal
year.''.
SEC. 118. 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.--
``(A) Amount.--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--
``(i) except as provided in clauses (ii)
and (iii), 0.50 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, 1993;
``(ii) 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, that is held by
any holder other than a holder designated by
the Secretary as a small lender under
subparagraph (B); and
``(iii) 0.0 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, that is held by
any holder that, together with its affiliated
holders, is designated by the Secretary as a
small lender under subparagraph (B).
``(B) Designation of small lenders.--In determining
which holders of eligible loans qualify as small
lenders for purposes of subparagraph (A)(iii), the
Secretary shall, using the most recently available data
with respect to the total principal amount of eligible
loans held by holders--
``(i) rank all holders (combined with their
affiliated holders) of eligible loans in
descending order by total principal amount of
eligible loans held;
``(ii) calculate the total principal amount
of eligible loans held by all holders; and
``(iii) identify the subset of
consecutively ranked holders under clause (i),
starting with the lowest ranked holder, that
together hold a total principal amount of such
loans equal to 15 percent of the total amount
calculated under clause (ii), but excluding the
holder, if any, whose holdings when added cause
the total holdings of the subset to equal but
not exceed such 15 percent of such total amount
calculated; and
``(iv) designate as small lenders any
holder identified as a member of the subset
under clause (iii).''.
SEC. 119. STUDENT LOAN INFORMATION.
Section 428(k) (20 U.S.C. 1078(k)) is amended by adding at the end
the following new paragraph:
``(4) Student loan information.--
``(A) Notwithstanding any other provision of law or
regulation, a lender, secondary market, holder, or
guaranty agency shall provide, free of charge and in a
timely and effective manner, any student loan
information maintained by that entity that is requested
by an institution of higher education and any third-
party servicer (as defined in section 481(c)) working
on behalf of that institution to prevent student loan
defaults.
``(B) An institution and any third-party servicer
obtaining access to information under subparagraph (A)
shall safeguard that information in order to prevent
potential abuses of that information, including
identity theft.
``(C) Any third party servicer that obtains
information under this subparagraph shall only use the
information in a manner directly related to the default
prevention work the servicer is performing on behalf of
the institution of higher education.
``(D) Any third party servicer that obtains
information under this subparagraph shall be subject to
any regulations established by the Secretary pursuant
to section 432 concerning the misuse of such
information, including any penalties for such
misuse.''.
PART C--REWARDING SERVICE IN REPAYMENT
SEC. 141. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
Section 428K (20 U.S.C. 1078-11) is amended to read as follows:
``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
``(a) Program Authorized.--
``(1) Loan forgiveness authorized.--The Secretary shall
forgive, in accordance with this section, the student loan
obligation of a borrower in the amount specified in subsection
(c), for any new borrower after the date of enactment of the
College Cost Reduction Act of 2007, who--
``(A) has been employed full-time for at least 5
consecutive complete school, academic, or calendar
years, as appropriate, in an area of national need
described in subsection (b); and
``(B) is not in default on a loan for which the
borrower seeks forgiveness.
``(2) Method of loan forgiveness.--To provide loan
forgiveness under paragraph (1), the Secretary is authorized to
carry out a program--
``(A) through the holder of the loan, to assume the
obligation to repay a qualified loan amount for a loan
made, insured, or guaranteed under this part; and
``(B) to cancel a qualified loan amount for a loan
made under part D of this title.
``(3) Regulations.--The Secretary is authorized to issue
such regulations as may be necessary to carry out the
provisions of this section.
``(b) Areas of National Need.--For purposes of this section, an
individual shall be treated as employed in an area of national need if
the individual is employed full time as any of the following:
``(1) Early childhood educators.--An individual who is
employed as an early childhood educator in an eligible
preschool program or eligible early childhood education program
in a low-income community, and who is involved directly in the
care, development, and education of infants, toddlers, or young
children through age 5.
``(2) Nurses.--An individual who is employed--
``(A) as a nurse in a clinical setting; or
``(B) as a member of the nursing faculty at an
accredited school of nursing (as those terms are
defined in section 801 of the Public Health Service Act
(42 U.S.C. 296)).
``(3) Foreign language specialists.--An individual who has
obtained a baccalaureate degree in a critical foreign language
and is employed--
``(A) in an elementary or secondary school as a
teacher of a critical foreign language; or
``(B) in an agency of the United States Government
in a position that regularly requires the use of such
critical foreign language.
``(4) Librarians.--An individual who is employed as a
librarian in--
``(A) a public library that serves a geographic
area within which the public schools have a combined
average of 30 percent or more of their total student
enrollments composed of children counted under section
1113(a)(5) of the Elementary and Secondary Education
Act of 1965; or
``(B) an elementary or secondary school which is in
the school district of a local educational agency which
is eligible in such year for assistance pursuant to
title I of the Elementary and Secondary Education Act
of 1965, and which for the purpose of this paragraph
and for that year has been determined by the Secretary
(pursuant to regulations and after consultation with
the State educational agency of the State in which the
school is located) to be a school in which the
enrollment of children counted under section 1113(a)(5)
of the Elementary and Secondary Education Act of 1965
exceeds 30 percent of the total enrollment of that
school.
``(5) Highly qualified teachers: bilingual education and
low-income communities.--An individual who--
``(A) is highly qualified as such term is defined
in section 9101 of the Elementary and Secondary
Education Act of 1965; and
``(B)(i) is employed as a full-time teacher of
bilingual education; or
``(ii) is employed as a teacher for service in a
public or nonprofit private elementary or secondary
school which is in the school district of a local
educational agency which is eligible in such year for
assistance pursuant to title I of the Elementary and
Secondary Education Act of 1965, and which for the
purpose of this paragraph and for that year has been
determined by the Secretary (pursuant to regulations
and after consultation with the State educational
agency of the State in which the school is located) to
be a school in which the enrollment of children counted
under section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965 exceeds 40 percent of
the total enrollment of that school.
``(6) Child welfare workers.--An individual who--
``(A) has obtained a degree in social work or a
related field with a focus on serving children and
families; and
``(B) is employed in public or private child
welfare services.
``(7) Speech-language pathologists.--An individual who is a
speech-language pathologist, who is employed in an eligible
preschool program or an elementary or secondary school, and who
has, at a minimum, a graduate degree in speech-language
pathology, or communication sciences and disorders.
``(8) National service.--An individual who is engaged as a
participant in project under the National and Community Service
Act of 1990 (as such terms are defined in section 101 of such
Act (42 U.S.C. 12511)).
``(9) Public sector employees.--An individual who is
employed in government, public safety (including as a first
responder, firefighter, police officer, or other law
enforcement or public safety officer), emergency management
(including as an emergency medical technician), public health,
or public interest legal services (including prosecution or
public defense).
``(c) Qualified Loan Amount.--The Secretary shall forgive not more
than $5,000 in the aggregate of the student loan obligation of a
borrower that is outstanding after the completion of the fifth
consecutive school, academic, or calendar year of employment, as
appropriate, described in subsection (a)(1).
``(d) Construction.--Nothing in this section shall be construed to
authorize the refunding of any repayment of a loan.
``(e) Segal Americorps Education Award Recipients.--A student
borrower who qualifies for the maximum education award under subtitle D
of title I of the National and Community Service Act of 1990 (42 U.S.C.
12601 et seq.) shall not receive under this section more than the
difference between the maximum benefit available under this section and
the maximum award available under such subtitle.
``(f) National Service Award Recipients.--A student borrower who
receives the maximum education award under subtitle D of title I of the
National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.)
shall not receive under this section more than the difference between
the maximum benefit available under this section and the award received
under such subtitle.
``(g) Ineligibility for Double Benefits.--No borrower may receive a
reduction of loan obligations under both this section and section 428J
or 460.
``(h) Definitions.--In this section:
``(1) Critical foreign language.--The term `critical
foreign language' includes the languages of Arabic, Korean,
Japanese, Chinese, Pashto, Persian-Farsi, Serbian-Croatian,
Russian, Portuguese, and any other language identified by the
Secretary of Education, in consultation with the Defense
Language Institute, the Foreign Service Institute, and the
National Security Education Program, as a critical foreign
language need.
``(2) Early childhood educator.--The term `early childhood
educator' means an early childhood educator who works directly
with children in an eligible preschool program or eligible
early childhood education program who has completed a
baccalaureate or advanced degree in early childhood
development, early childhood education, or in a field related
to early childhood education.
``(3) Eligible preschool program.--The term `eligible
preschool program' means a program that provides for the care,
development, and education of infants, toddlers, or young
children through age 5, meets any applicable State or local
government licensing, certification, approval, and registration
requirements, and is operated by--
``(A) a public or private school that may be
supported, sponsored, supervised, or administered by a
local educational agency;
``(B) a Head Start agency serving as a grantee
designated under the Head Start Act (42 U.S.C. 9831 et
seq.);
``(C) a nonprofit or community based organization;
or
``(D) a child care program, including a home.
``(4) Eligible early childhood education program.--The term
`eligible early childhood education program' means--
``(A) a family child care program, center-based
child care program, State prekindergarten program,
school program, or other out-of-home early childhood
development care program, that--
``(i) is licensed or regulated by the
State; and
``(ii) serves 2 or more unrelated children
who are not old enough to attend kindergarten;
``(B) a Head Start Program carried out under the
Head Start Act (42 U.S.C. 9831 et seq.); or
``(C) an Early Head Start Program carried out under
section 645A of the Head Start Act (42 U.S.C. 9840a).
``(5) Low-income community.--In this subsection, the term
`low-income community' means a community in which 70 percent of
households earn less than 85 percent of the State median
household income.
``(6) Nurse.--The term `nurse' means a nurse who meets all
of the following:
``(A) The nurse graduated from--
``(i) an accredited school of nursing (as
those terms are defined in section 801 of the
Public Health Service Act (42 U.S.C. 296));
``(ii) a nursing center; or
``(iii) an academic health center that
provides nurse training.
``(B) The nurse holds a valid and unrestricted
license to practice nursing in the State in which the
nurse practices in a clinical setting.
``(C) The nurse holds one or more of the following:
``(i) A graduate degree in nursing, or an
equivalent degree.
``(ii) A nursing degree from a collegiate
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
``(iii) A nursing degree from an associate
degree school of nursing (as defined in section
801 of the Public Health Service Act (42 U.S.C.
296)).
``(iv) A nursing degree from a diploma
school of nursing (as defined in section 801 of
the Public Health Service Act (42 U.S.C. 296)).
``(7) Speech-language pathologist.--The term `speech-
language pathologist' means a speech-language pathologist who
meets all of the following:
``(A) the speech-language pathologist has received,
at a minimum, a graduate degree in speech-language
pathology or communication sciences and disorders from
an institution of higher education accredited by an
agency or association recognized by the Secretary
pursuant to section 496(a) of this Act; and
``(B) the speech-language pathologist meets or
exceeds the qualifications as defined in section
1861(ll) of the Social Security Act (42 U.S.C. 1395x).
``(i) Program Funding.--There shall be available to the Secretary
to carry out this section, from funds not otherwise appropriated, such
sums as may be necessary to provide loan forgiveness in accordance with
this section to each eligible individual.''.
SEC. 142. INCOME CONTINGENT REPAYMENT FOR PUBLIC SECTOR EMPLOYEES.
Section 455(e) (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 or section
428C(b)(5) 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), social work in a public child or
family service agency, 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. 143. INCOME-BASED REPAYMENT.
(a) Amendment.--Part G of title IV (20 U.S.C. 1088 et seq.) is
further amended by adding at the end the following:
``SEC. 493C. INCOME-BASED REPAYMENT.
``(a) Definitions.--In this section:
``(1) Excepted plus loan.--The term `excepted PLUS loan'
means a loan under section 428B, or a Federal Direct PLUS Loan,
that is made, insured, or guaranteed on behalf of a dependent
student.
``(2) Partial financial hardship.--The term `partial
financial hardship' means the amount by which--
``(A) the annual amount due on the total amount of
loans made, insured, or guaranteed under part B or D
(other than an excepted PLUS loan) to a borrower as
calculated under the standard repayment plan under
section 428(b)(9)(A)(i) or 455(d)(1)(A); exceeds
``(B) 15 percent of the result obtained by
calculating the amount by which--
``(i) the borrower's, and the borrower's
spouse's (if applicable), adjusted gross
income; exceeds
``(ii) 150 percent of the poverty line
applicable to the borrower's family size as
determined under section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2)).
``(b) Income-Based Repayment Program Authorized.--Notwithstanding
any other provision of this Act, the Secretary shall carry out a
program under which--
``(1) a borrower of any loan made, insured, or guaranteed
under part B or D (other than an excepted PLUS loan) who has a
partial financial hardship may elect, during any period the
borrower has the partial financial hardship, to have the
borrower's aggregate monthly payment for all such loans not
exceed the result described in subsection (a)(2)(B) divided by
12;
``(2) the holder of such a loan shall apply the borrower's
monthly payment under this subsection first toward interest due
on the loan and then toward the principal of the loan;
``(3) any interest due and not paid under paragraph (2)
shall be capitalized;
``(4) any principal due and not paid under paragraph (2)
shall be deferred;
``(5) the amount of time the borrower makes monthly
payments under paragraph (1) may exceed 10 years;
``(6) if the borrower no longer has a partial financial
hardship or no longer wishes to continue the election under
this subsection, then--
``(A) the maximum monthly payment required to be
paid for all loans made to the borrower under part B or
D (other than an excepted PLUS loan) shall not exceed
the monthly amount calculated under section
428(b)(9)(A)(i) or 455(d)(1)(A) when the borrower first
made the election described in this subsection; and
``(B) the amount of time the borrower is permitted
to repay such loans may exceed 10 years;
``(7) the Secretary shall repay or cancel any outstanding
balance of principal and interest due on all loans made under
part B or D (other than a loan under section 428B or a Federal
Direct PLUS Loan) to a borrower who--
``(A) is in deferment due to an economic hardship
described in section 435(o) for a period of time
prescribed by the Secretary, not to exceed 20 years; or
``(B)(i) makes the election under this subsection;
and
``(ii) for a period of time prescribed by the
Secretary, not to exceed 20 years (including any period
during which the borrower is in deferment due to an
economic hardship described in section 435(o)), meets 1
or more of the following requirements:
``(I) Has made reduced monthly payments
under paragraph (1).
``(II) Has made monthly payments of not
less than the monthly amount calculated under
section 428(b)(9)(A)(i) or 455(d)(1)(A) when
the borrower first made the election described
in this subsection.
``(III) Has made payments under a standard
repayment plan under section 428(b)(9)(A)(i) or
455(d)(1)(A).
``(IV) Has made payments under an income
contingent repayment plan under section
455(d)(1)(D); and
``(8) a borrower who is repaying a loan made under this
part pursuant to income-based repayment may elect, at any time,
to terminate repayment pursuant to income-based repayment and
repay such loan under the standard repayment plan.''.
(b) Conforming ICR Amendment.--Section 455(d)(1)(D) (20 U.S.C.
1087e(d)(1)(D)) is amended by inserting ``made on behalf of a dependent
student'' after ``PLUS loan''.
SEC. 144. DEFINITION OF ECONOMIC HARDSHIP.
Section 435(o) (20 U.S.C. 1085(o)) is amended--
(1) in paragraph (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'';
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as
subparagraph (B); and
(2) in paragraph (2), by striking ``(1)(C)'' and inserting
``(1)(B)''.
SEC. 145. DEFERRALS.
(a) FISL.--Section 427(a)(2)(C)(iii) (20 U.S.C. 1077(a)(2)(C)(iii))
is amended by striking ``not in excess of 3 years''.
(b) Interest Subsidies.--Section 428(b)(1)(M)(iv) (20 U.S.C.
1078(b)(1)(M)(iv)) is amended by striking ``not in excess of 3 years''.
(c) Direct Loans.--Section 455(f)(2)(D) (20 U.S.C. 1087e(f)(2)(D))
is amended by striking ``not in excess of 3 years''.
(d) Perkins.--Section 464(c)(2)(A)(iv) (20 U.S.C.
1087dd(c)(2)(A)(iv)) is amended by striking ``not in excess of 3
years''.
SEC. 146. MAXIMUM REPAYMENT PERIOD.
(a) In General.--Section 455(e) (20 U.S.C. 1087e(e)) is amended by
adding at the end the following:
``(9) Maximum repayment period.--In calculating the
extended period of time for which an income contingent
repayment plan under this subsection may be in effect for a
borrower, the Secretary shall include all time periods during
which a borrower of loans under part B, part D, or part E--
``(A) is not in default on any loan that is
included in the income contingent repayment plan; and
``(B)(i) is in deferment due to an economic
hardship described in section 435(o);
``(ii) makes monthly payments under paragraph (1)
or (6) of section 493C(b); or
``(iii) makes payments under a standard repayment
plan described in section 428(b)(9)(A)(i) or subsection
(d)(1)(A).''.
(b) Technical Correction.--Section 455(d)(1)(C) (20 U.S.C.
1087e(d)(1)(C)) is amended by striking ``428(b)(9)(A)(v)'' and
inserting ``428(b)(9)(A)(iv)''.
TITLE II--REDUCING THE COST OF COLLEGE
SEC. 201. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
Title I is amended by inserting after section 131 (20 U.S.C. 1015)
the following new section:
``SEC. 132. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
``(a) Maintenance of Effort Required.--No State shall reduce the
total amount provided by the State for public institutions of higher
education in such State for any academic year beginning on or after
July 1, 2008, to an amount which is less than the average amount
provided by such State to such institutions of higher education during
the 5 most recent preceeding academic years for which satisfactory data
is available.
``(b) Withholding of All LEAP Funds for Violations.--
Notwithstanding any other provision of law, the Secretary of Education
shall withhold from any State that violates subsection (a) any amount
that would otherwise be available to the State under the Leveraging
Educational Assistance Partnership Program under subpart 4 of part A of
title IV until such State has corrected such violation.''.
SEC. 202. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER
EDUCATION.
Section 131 of the Higher Education Act of 1965 (20 U.S.C. 1015) is
amended to read as follows:
``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER
EDUCATION.
``(a) College Opportunity On-Line (COOL) Website Re-Design
Process.--In carrying out this section, the Commissioner of Education
Statistics--
``(1) shall identify the data elements that are of greatest
importance to prospective students, enrolled students, and
their families, paying particular attention to low-income, non-
traditional student populations, and first-generation college
students;
``(2) shall convene a group of individuals with expertise
in the collection and reporting of data related to institutions
of higher education, the use of consumer data, and consumer
marketing in general to--
``(A) determine the relevance of particular data
elements to prospective students, enrolled students,
and families;
``(B) assess the cost-effectiveness of various ways
in which institutions of higher education might produce
relevant data;
``(C) determine the general comparability of the
data across institutions of higher education;
``(D) make recommendations regarding the inclusion
of specific data items and the most effective and least
burdensome methods of collecting and reporting useful
data from institutions of higher education; and
``(3) shall ensure that the redesigned COOL website--
``(A) uses, to the extent practicable, data
elements currently provided by institutions of higher
education to the Secretary;
``(B) includes clear and uniform information
determined to be relevant to prospective students,
enrolled students, and families;
``(C) provides comparable information, by ensuring
that data are based on accepted criteria and common
definitions;
``(D) includes a sorting function that permits
users to customize their search for and comparison of
institutions of higher education based on the
information identified through the process as
prescribed in paragraph (1) as being of greatest
relevance to choosing an institution of higher
education.
``(b) Data Collection.--
``(1) Data system.--The Commissioner of Education
Statistics shall continue to redesign the relevant parts of the
Integrated Postsecondary Education Data System to include
additional data as required by this section and to continue to
improve the usefulness and timeliness of data collected by such
systems in order to inform consumers about institutions of
higher education.
``(2) College consumer profile.--The Secretary shall
continue to publish on the COOL website, for each academic year
and in accordance with standard definitions developed by the
Commissioner of Education Statistics (including definitions
developed under section 131(a)(3)(A) as in effect on the day
before the date of enactment of the College Cost Reduction Act
of 2007), from at least all institutions of higher education
participating in programs under title IV the following
information:
``(A) The tuition and fees charged for a first-
time, full-time, full-year undergraduate student.
``(B) The room and board charges for a first-time,
full-time, full-year undergraduate student.
``(C) The price of attendance for a first-time,
full-time, full-year undergraduate student, consistent
with the provisions of section 472.
``(D) The average amount of financial assistance
received by a first-year, full-time, full-year
undergraduate student, including--
``(i) each type of assistance or benefits
described in 428(a)(2)(C)(ii);
``(ii) institutional and other assistance;
and
``(iii) Federal loans under parts B, D, and
E of title IV.
``(E) The number of first-time, full-time, full-
year undergraduate students receiving financial
assistance described in each clause of subparagraph
(D).
``(F) The institutional instructional expenditure
per full-time equivalent student.
``(G) Student enrollment information, including
information on the number and percentage of full-time
and part-time students, the number and percentage of
resident and non-resident students.
``(H) Faculty-to-student ratios.
``(I) Faculty information, including the total
number of faculty and the percentage of faculty who are
full-time employees of the institution and the
percentage who are part-time.
``(J) Completion and graduation rates of
undergraduate students, identifying whether the
completion or graduation rates are from a 2-year or 4-
year program of instruction and, in the case of a 2-
year program of instruction, the percentage of students
who transfer to 4-year institutions prior or subsequent
to completion or graduation.
``(K) A link to the institution of higher education
with information of interest to students including
mission, accreditation, student services (including
services for students with disabilities), transfer of
credit policies, any articulation agreements entered
into by the institution, and, if appropriate, placement
rates and other measures of success in preparing
students for entry into or advancement in the
workforce.
``(L) The college affordability information
elements specified in subsection (c).
``(M) Any additional information that the Secretary
may require.
``(c) College Affordability Information Elements.--The college
affordability information elements required by subsection (b)(2)(L)
shall include, for each institution submitting data--
``(1) the sticker price of the institution for the 3 most
recent academic years;
``(2) the net tuition price of the institution for the 3
most recent academic years;
``(3) the percentage change in both the sticker price and
the net tuition price over the 3-year time period that is being
reported;
``(4) the percentage change in the CPI over the same 3-year
time period; and
``(5) whether the institution has been placed on
affordability alert status as required by subsection (d)(3).
``(d) Outcomes and Actions.--
``(1) Response from institution.--Effective on June 30,
2008, an institution that increases its sticker price at a
percentage rate for any 3-year interval ending on or after that
date that exceeds two times the rate of change in the CPI over
the same time period shall provide a report to the Secretary,
in such a form, at such time, and containing such information
as the Secretary may require. Such report shall be published by
the Secretary on the COOL website, and shall include--
``(A) a description of the factors contributing to
the increase in the institution's costs and in the
tuition and fees charged to students; and
``(B) if determinations of tuition and fee
increases are not within the exclusive control of the
institution, a description of the agency or
instrumentality of State government or other entity
that participates in such determinations and the
authority exercised by such agency, instrumentality, or
entity.
``(2) Quality-efficiency task forces.--
``(A) Required.--Each institution subject to
paragraph (1) that has a percentage change in its
sticker price that is in the highest 5 percent of all
institutions subject to paragraph (1) shall establish a
quality-efficiency task force to review the operations
of such institution.
``(B) Membership.--Such task force shall include
administrators, business and civic leaders, and
faculty, and may include students, trustees, parents of
students, and alumni of such institution.
``(C) Functions.--Such task force shall analyze
institutional operating costs in comparison with such
costs at other institutions within the class of
institutions. Such analysis should identify areas
where, in comparison with other institutions in such
class, the institution operates more expensively to
produce a similar result. Any identified areas should
then be targeted for in-depth analysis for cost
reduction opportunities.
``(D) Report.--Not later than one year after a
quality-efficiency task force is established pursuant
to subparagraph (A), the results of the analysis by a
such task force shall be submitted to the Secretary and
shall be made available to the public on the COOL
website.
``(3) Consequences for 2-year continuation of failure.--If
the Secretary determines that an institution that is subject to
paragraph (1)) has failed to reduce the subsequent increase in
sticker price to equal to or below two times the rate of change
in the CPI for 2 consecutive academic years subsequent to the
3-year interval used under paragraph (1), the Secretary shall
place the institution on affordability alert status.
``(4) Exemptions.--Notwithstanding paragraph (3), an
institution shall not be placed on affordability alert status
if, for any 3-year interval for which sticker prices are
computed under paragraph (1)--
``(A) with respect to the class of institutions
described in paragraph (6) to which the institution
belongs, the sticker price of the institution is in the
lowest quartile of institutions within such class, as
determined by the Secretary, during the last year of
such 3-year interval; or
``(B) the institution has a percentage change in
its sticker price computed under paragraph (1) that
exceeds two times the rate of change in the CPI over
the same time period, but the dollar amount of the
sticker price increase is less than $500.
``(5) Information to state agencies.--Any institution that
reports under paragraph (1)(B) that an agency or
instrumentality of State government or other entity
participates in the determinations of tuition and fee increases
shall, prior to submitting any information to the Secretary
under this subsection, submit such information to, and request
the comments and input of, such agency, instrumentality, or
entity. With respect to any such institution, the Secretary
shall provide a copy of any communication by the Secretary with
that institution to such agency, instrumentality, or entity.
``(6) Classes of institutions.--For purposes of this
subsection, the classes of institutions shall be those sectors
used by the Integrated Postsecondary Education Data System,
based on whether the institution is public, nonprofit private,
or for-profit private, and whether the institution has a 4-
year, 2-year, or less than 2-year program of instruction.
``(7) Data rejection.--Nothing in this subsection shall be
construed as allowing the Secretary to reject the data
submitted by an individual institution of higher education.
``(e) Information to the Public.--The Secretary shall work with
public and private entities to promote broad public awareness,
particularly among middle and high school students and their families,
of the information made available under this section, including by
distribution to students who participate in or receive benefits from
means-tested federally funded education programs and other Federal
programs determined by the Secretary.
``(f) Fines.--In addition to actions authorized in section 487(c),
the Secretary may impose a fine in an amount not to exceed $25,000 on
an institution of higher education for failing to provide the
information required by this section in a timely and accurate manner,
or for failing to otherwise cooperate with the National Center for
Education Statistics regarding efforts to obtain data under subsections
(c) and (i) and pursuant to the program participation agreement entered
into under section 487.
``(g) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(h) Definitions.--For the purposes of this section:
``(1) Net tuition price.--The term `net tuition price'
means the average tuition and fees charged to a first-time,
full-time, full-year undergraduate student, minus the average
grants provided to such students, for any academic year.
``(2) Sticker price.--The term `sticker price' means the
average tuition and fees charged to a first-time, full-time,
full-year undergraduate student by an institution of higher
education for any academic year.
``(3) CPI.--The term `CPI' means the Consumer Price Index-
All Urban Consumers (Current Series).''.
SEC. 203. INCENTIVES AND REWARDS FOR LOW TUITION.
Subpart 1 of part A of title IV is amended by inserting after
section 401A (20 U.S.C. 1070a-1) the following new section:
``SEC. 401B. INCENTIVES AND REWARDS FOR LOW TUITION.
``(a) Rewards for Low Tuition.--For any institution of higher
education that, for academic year 2008-2009 or any succeeding academic
year, such institution's annual net tuition price increase (expressed
as a percentage) for the most recent academic year for which
satisfactory data is available is equal to or less than the percentage
change in the higher education price index for such academic year, the
Secretary shall, notwithstanding any other provision of the law,
provide such institution an amount sufficient to provide a 25 percent
increase under subpart 1 of part A of title IV to each Pell Grant
recipient attending such institution for the next award year beginning
after the date of such determination. Each such institution shall
distribute any amounts received under this subsection among such Pell
Grant recipients by increasing the amount of their Pell Grant awards by
25 percent.
``(b) Rewards for Guaranteed Tuition.--
``(1) Bonus.--For each institution of higher education that
the Secretary of Education determines complies with the
requirements of paragraph (2) or paragraph (3) of this
subsection, the Secretary shall, notwithstanding any other
provision of the law, provide such institution an amount
sufficient to provide a 10 percent increase under subpart 1 of
part A of title IV to each Pell Grant recipient attending such
institution for the next award year beginning after the date of
such determination. Each such institution shall distribute any
amounts received under this subsection among such Pell Grant
recipients by increasing the amount of their Pell Grant awards
by 10 percent.
``(2) 4-year institutions.--An institution of higher
education that provides a program of instruction for which it
awards a bachelor's degree complies with the requirements of
this paragraph if such institution guarantees that for any
academic year beginning on or after July 1, 2008, and for each
of the 4 succeeding continuous academic years, the net tuition
price charged to an undergraduate student will not exceed--
``(A) the amount that the student was charged for
an academic year at the time he or she first enrolled
in the institution of higher education, plus
``(B) the product of the percentage increase in the
higher education price index for the prior academic
year, or the most recent prior academic year for which
data is available, multiplied by the amount determined
under subparagraph (A).
``(3) Less-than 4-year institutions.--An institution of
higher education that does not provide a program of instruction
for which it awards a bachelor's degree complies with the
requirements of this paragraph if such institution guarantees
that for any academic year (or the equivalent) beginning on or
after July 1, 2008, and for each of the 1.5 succeeding
continuous academic years, the net tuition price charged to an
undergraduate student will not exceed--
``(A) the amount that the student was charged for
an academic year at the time he or she first enrolled
in the institution of higher education, plus
``(B) the product of the percentage increase in the
higher education price index for the prior academic
year, or the most recent prior academic year for which
data is available, multiplied by the amount determined
under subparagraph (A).
``(c) Maintaining Affordable Tuition.--For any institution of
higher education whose increase in the annual net tuition price
(expressed as a percentage), for the most recent academic year for
which satisfactory data is available, is greater than the percentage
increase in the higher education price index for such academic year,
the Secretary shall require such institution to submit to the Secretary
the following information, within 6 months of such determination:
``(1) a detailed report on the exact causes for the net
tuition price increase that outlines revenues and expenditures;
and
``(2) cost containment strategies to lower net tuition
prices.
``(d) Definitions.--
``(1) Net tuition price.--The term `net tuition price' has
the same meaning as provided in section 131(k).
``(2) Higher education price index.--The term `higher
education price index' means a statistical measure of change
over time in the prices of a fixed market basket of goods and
services purchased by colleges and universities through current
fund educational and general expenditures (excluding
expenditures for research), as developed by the Bureau of Labor
Statistics.
``(e) Funding.--There shall be available to the Secretary to carry
out this section, from funds not otherwise appropriated, $15,000,000
for each of the fiscal years 2008 through 2012.
``(f) Sunset.--The authority to carry out this section shall expire
at the end of fiscal year 2012.''.
SEC. 204. COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT RESTRAIN
TUITION INCREASES.
The Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) is
amended by adding at the end the following title:
``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT
RESTRAIN TUITION INCREASES
``SEC. 801. ELIGIBLE INSTITUTIONS.
``(a) Eligible Institutions.--An institution of higher education
shall be eligible to apply for a grant under this title if such
institution, and a combination of such institutions shall be eligible
to apply for such a grant if each institution in such combination--
``(1) for the academic year for which the institution is
applying, keeps such institution's annual net tuition price
increase (expressed as a percentage) for the most recent
academic year for which satisfactory data is available equal to
or less than the percentage change in the higher education
price index for such year; and
``(2) for such academic year, provides the guarantee
required by paragraph (2) or (3) of section 401A(b).
``(b) Definitions.--
``(1) Cooperative education.--For the purpose of this title
the term `cooperative education' means the provision of
alternating or parallel periods of academic study and public or
private employment in order to give students work experiences
related to their academic or occupational objectives and an
opportunity to earn the funds necessary for continuing and
completing their education.
``(2) Calculation of index.--The net tuition price index
shall be equal to the percentage increase in the net tuition
price charged for a first-time, full-time, full-year
undergraduate student between a preceding academic year and the
most recent academic year for which satisfactory data are
available.
``(3) Net tuition price.--The term `net tuition price'
means the average tuition and fees charged to first-time, full-
year, full-time undergraduate students, minus the average
grants provided to such students, for any academic year.
``(4) Tuition.--The term `tuition' means the average price
of or payment for actual instruction of first-time, full-year,
full-time undergraduate students at an institution of higher
education, for any academic year.
``SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.
``(a) Appropriations.--There shall be available to the Secretary to
carry out this title from funds not otherwise appropriated $15,000,000
for each of the fiscal years 2008 through 2012.
``(b) Reservations.--Of the amount appropriated for each such
fiscal year--
``(1) not less than 50 percent shall be available for
carrying out grants to institutions of higher education and
combinations of such institutions described in section
803(a)(1)(A) for cooperative education under section 803;
``(2) not less than 25 percent shall be available for
carrying out grants to institutions of higher education
described in section 803(a)(1)(B) for cooperative education
under section 803;
``(3) not to exceed 11 percent shall be available for
demonstration projects under paragraph (1) of section 804(a);
``(4) not to exceed 11 percent shall be available for
training and resource centers under paragraph (2) of section
804(a); and
``(5) not to exceed 3 percent shall be available for
research under paragraph (3) of section 804(a).
``(c) Availability of Appropriations.--Appropriations under this
title shall not be available for the payment of compensation of
students for employment by employers under arrangements pursuant to
this title.
``(d) Sunset.--The authority to carry out this title shall expire
at the end of fiscal year 2012.
``SEC. 803. GRANTS FOR COOPERATIVE EDUCATION.
``(a) Grants Authorized.--
``(1) In general.--The Secretary is authorized--
``(A) from the amount available under section
802(b)(1) in each fiscal year and in accordance with
the provisions of this title, to make grants to
institutions of higher education or combinations of
such institutions that have not received a grant under
this paragraph in the 10-year period preceding the date
for which a grant under this section is requested to
pay the Federal share of the cost of planning,
establishing, expanding, or carrying out programs of
cooperative education by such institutions or
combinations of institutions; and
``(B) from the amount available under section
802(b)(2) in each fiscal year and in accordance with
the provisions of this title, to make grants to
institutions of higher education that are operating an
existing cooperative education program as determined by
the Secretary to pay the cost of planning,
establishing, expanding, or carrying out programs of
cooperative education by such institutions.
``(2) Program requirement.--Cooperative education programs
assisted under this section shall provide alternating or
parallel periods of academic study and of public or private
employment, giving students work experience related to their
academic or occupational objectives and the opportunity to earn
the funds necessary for continuing and completing their
education.
``(3) Amount of grants.--
``(A) The amount of each grant awarded pursuant to
paragraph (1)(A) to any institution of higher education
or combination of such institutions in any fiscal year
shall not exceed $500,000.
``(B)(i) Except as provided in clauses (ii) and
(iii), the Secretary shall award grants in each fiscal
year to each institution of higher education described
in paragraph (1)(B) that has an application approved
under subsection (b) in an amount which bears the same
ratio to the amount reserved pursuant to section
802(b)(2) for such fiscal year as the number of
unduplicated students placed in cooperative education
jobs during the preceding fiscal year (other than
cooperative education jobs under section 804 and as
determined by the Secretary) by such institution of
higher education bears to the total number of all such
students placed in such jobs during the preceding
fiscal year by all such institutions.
``(ii) No institution of higher education shall
receive a grant pursuant to paragraph (1)(B) in any
fiscal year in an amount which exceeds 25 percent of
such institution's cooperative education program's
personnel and operating budget for the preceding fiscal
year.
``(iii) The minimum annual grant amount which an
institution of higher education is eligible to receive
under paragraph (1)(B) is $1,000 and the maximum annual
grant amount is $75,000.
``(4) Limitation.--The Secretary shall not award grants
pursuant to paragraphs (1)(A) and (1)(B) to the same
institution of higher education or combination of such
institution in any one fiscal year.
``(5) Uses.--Grants under paragraph (1)(B) shall be used
exclusively--
``(A) to expand the quality and participation of a
cooperative education program;
``(B) for outreach in new curricular areas; and
``(C) for outreach to potential participants
including underrepresented and nontraditional
populations.
``(b) Applications.--Each institution of higher education or
combination of such institutions desiring to receive a grant under this
section shall submit an application to the Secretary at such time and
in such manner as the Secretary shall prescribe. Each such application
shall--
``(1) set forth the program or activities for which a grant
is authorized under this section;
``(2) specify each portion of such program or activities
which will be performed by a nonprofit organization or
institution other than the applicant and the compensation to be
paid for such performance;
``(3) provide that the applicant will expend during such
fiscal year for the purpose of such program or activities not
less than the amount expended for such purpose during the
previous fiscal year;
``(4) describe the plans which the applicant will carry out
to assure, and contain a formal statement of the institution's
commitment which assures, that the applicant will continue the
cooperative education program beyond the 5-year period of
Federal assistance described in subsection (c)(1) at a level
which is not less than the total amount expended for such
program during the first year such program was assisted under
this section;
``(5) provide that, in the case of an institution of higher
education that provides a 2-year program which is acceptable
for full credit toward a bachelor's degree, the cooperative
education program will be available to students who are
certificate or associate degree candidates and who carry at
least one-half the normal full-time academic workload;
``(6) provide that the applicant will--
``(A) for each fiscal year for which the applicant
receives a grant, make such reports with respect to the
impact of the cooperative education program in the
previous fiscal year as may be essential to ensure that
the applicant is complying with the provisions of this
section, including--
``(i) the number of unduplicated student
applicants in the cooperative education
program;
``(ii) the number of unduplicated students
placed in cooperative education jobs;
``(iii) the number of employers who have
hired cooperative education students;
``(iv) the average income for students
derived from working in cooperative education
jobs; and
``(v) the increase or decrease in the
number of unduplicated students placed in
cooperative education jobs in each fiscal year
compared to the previous fiscal year; and
``(B) keep such records as are essential to ensure
that the applicant is complying with the provisions of
this title, including the notation of cooperative
education employment on the student's transcript;
``(7) describe the extent to which programs in the academic
discipline for which the application is made have had a
favorable reception by public and private sector employers;
``(8) describe the extent to which the institution is
committed to extending cooperative education on an institution-
wide basis for all students who can benefit;
``(9) describe the plans that the applicant will carry out
to evaluate the applicant's cooperative education program at
the end of the grant period;
``(10) provide for such fiscal control and fund accounting
procedures as may be necessary to assure proper disbursement
of, and accounting for, Federal funds paid to the applicant
under this title;
``(11) demonstrate a commitment to serving all underserved
populations; and
``(12) include such other information as is essential to
carry out the provisions of this title.
``(c) Duration of Grants; Federal Share.--
``(1) Duration of grants.--No individual institution of
higher education may receive, individually or as a participant
in a combination of such institutions--
``(A) a grant pursuant to subsection (a)(1)(A) for
more than 5 fiscal years; or
``(B) a grant pursuant to subsection (a)(1)(B) for
more than 5 fiscal years.
``(2) Federal share.--The Federal share of a grant under
section 803(a)(1)(A) may not exceed--
``(A) 85 percent of the cost of carrying out the
program or activities described in the application in
the first year the applicant receives a grant under
this section;
``(B) 70 percent of such cost in the second such
year;
``(C) 55 percent of such cost in the third such
year;
``(D) 40 percent of such cost in the fourth such
year; and
``(E) 25 percent of such cost in the fifth such
year.
``(3) Special rule.--Any provision of law to the contrary
notwithstanding, the Secretary shall not waive the provisions
of this subsection.
``(d) Maintenance of Effort.--If the Secretary determines that a
recipient of funds under this section has failed to maintain the fiscal
effort described in subsection (b)(3), then the Secretary may elect not
to make grant payments under this section to such recipient.
``SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND
RESOURCE CENTERS; AND RESEARCH.
``(a) Authorization.--The Secretary is authorized, in accordance
with the provisions of this section, to make grants and enter into
contracts for--
``(1) the conduct of demonstration projects designed to
demonstrate or determine the feasibility or value of innovative
methods of cooperative education from the amounts available in
each fiscal year under section 802(b)(3);
``(2) the conduct of training and resource centers designed
to--
``(A) train personnel in the field of cooperative
education;
``(B) improve materials used in cooperative
education programs if such improvement is conducted in
conjunction with other activities described in this
paragraph;
``(C) furnish technical assistance to institutions
of higher education to increase the potential of the
institution to continue to conduct a cooperative
education program without Federal assistance;
``(D) encourage model cooperative education
programs which furnish education and training in
occupations in which there is a national need;
``(E) support partnerships under which an
institution carrying out a comprehensive cooperative
education program joins with one or more institutions
of higher education in order to (i) assist the
institutions other than the comprehensive cooperative
education institution to develop and expand an existing
program of cooperative education, or (ii) establish and
improve or expand comprehensive cooperative education
programs; and
``(F) encourage model cooperative education
programs in the fields of science and mathematics for
women and minorities who are underrepresented in such
fields
from the amounts available in each fiscal year under section
802(b)(4); and
``(3) the conduct of research relating to cooperative
education, from the amounts available in each fiscal year under
section 802(b)(5).
``(b) Administrative Provision.--
``(1) In general.--To carry out this section, the Secretary
may--
``(A) make grants to or contracts with institutions
of higher education, or combinations of such
institutions; and
``(B) make grants to or contracts with other public
or private nonprofit agencies or organizations,
whenever such grants or contracts will make an
especially significant contribution to attaining the
objectives of this section.
``(2) Limitation.--
``(A) The Secretary may not use more than 3 percent
of the amount appropriated to carry out this section in
each fiscal year to enter into contracts described in
paragraph (1)(A).
``(B) The Secretary may use not more than 3 percent
of the amount appropriated to carry out this section in
each fiscal year to enter into contracts described in
paragraph (1)(B).
``(c) Supplement Not Supplant.--A recipient of a grant or contract
under this section may use the funds provided only so as to supplement
and, to the extent possible, increase the level of funds that would, in
the absence of such funds, be made available from non-Federal sources
to carry out the activities supported by such grant or contract, and in
no case to supplant such funds from non-Federal sources.''.
TITLE III--ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY CLASSROOM
PART A--TEACH GRANTS
SEC. 301. TEACH GRANTS.
Part A of title IV (20 U.S.C. 1070a et seq.) is amended by adding
at the end the following new subpart:
``Subpart 9--TEACH Grants
``SEC. 420L. PROGRAM ESTABLISHED.
``(a) Program Authority.--
``(1) Payments required.--The Secretary shall pay to each
eligible institution such sums as may be necessary to pay to
each eligible student (defined in accordance with section 484)
who files an application and agreement in accordance with
section 420M, and who qualifies--
``(A) under paragraph (2) of section 420M(a), a
TEACH Grant in the amount of $4,000 for each academic
year during which that student is in attendance at the
institution; and
``(B) under paragraphs (2) and (3) of section
420M(a), a Bonus TEACH Grant in the amount of $500 (in
addition to the amount of the TEACH Grant under
subparagraph (A)) for each academic year during which
that student so qualifies.
``(2) Reference.--Grants made under--
``(A) paragraph (1)(A) shall be known as `Teacher
Education Assistance for College and Higher Education
Grants' or `TEACH Grants'; and
``(B) paragraph (1)(B) shall be known as Bonus
TEACH Grants.
``(b) Payment Methodology.--
``(1) Prepayment.--Not less than 85 percent of any funds
provided to an institution under subsection (a) shall be
advanced to eligible institutions prior to the start of each
payment period and shall be based upon an amount requested by
the institution as needed to pay eligible students until such
time as the Secretary determines and publishes in the Federal
Register with an opportunity for comment, an alternative
payment system that provides payments to institutions in an
accurate and timely manner, except that this sentence shall not
be construed to limit the authority of the Secretary to place
an institution on a reimbursement system of payment.
``(2) Direct payment.--Nothing in this section shall be
interpreted to prohibit the Secretary from paying directly to
students, in advance of the beginning of the academic term, an
amount for which they are eligible, in cases where the eligible
institution elects not to participate in the disbursement
system required by paragraph (1).
``(3) Distribution of grants to students.--Payments under
this subpart shall be made, in accordance with regulations
promulgated by the Secretary for such purpose, in such manner
as will best accomplish the purposes of this subpart. Any
disbursement allowed to be made by crediting the student's
account shall be limited to tuition and fees and, in the case
of institutionally-owned housing, room and board. The student
may elect to have the institution provide other such goods and
services by crediting the student's account.
``(c) Reductions in Amount.--
``(1) Part-time students.--In any case where a student
attends an institution of higher education on less than a full-
time basis (including a student who attends an institution of
higher education on less than a half-time basis) during any
academic year, the amount of a grant under this subpart for
which that student is eligible shall be reduced in proportion
to the degree to which that student is not attending on a full-
time basis, in accordance with a schedule of reductions
established by the Secretary for the purposes of this subpart,
computed in accordance with this subpart. Such schedule of
reductions shall be established by regulation and published in
the Federal Register in accordance with section 482 of this
Act.
``(2) No exceeding cost.--The amount of a grant awarded
under this subpart, in combination with Federal assistance and
other student assistance, shall not exceed the cost of
attendance (as defined in section 472) at the institution at
which that student is in attendance. If, with respect to any
student, it is determined that the amount of a TEACH Grant or a
Bonus TEACH Grant exceeds the cost of attendance for that year,
the amount of the TEACH Grant or Bonus TEACH Grant,
respectively, shall be reduced until such grant does not exceed
the cost of attendance at such institution.
``(d) Period of Eligibility for Grants.--
``(1) Undergraduate students.--The period during which an
undergraduate student may receive grants under this subpart
shall be the period required for the completion of the first
undergraduate baccalaureate course of study being pursued by
that student at the institution at which the student is in
attendance except that--
``(A) any period during which the student is
enrolled in a noncredit or remedial course of study as
defined in paragraph (3) shall not be counted for the
purpose of this paragraph; and
``(B) the total amount that a student may receive
under this subpart for undergraduate study shall not
exceed $16,000 with respect to a student who receives
only TEACH Grants, and $18,000 with respect to a
student who receives TEACH Grants and Bonus TEACH
Grants.
``(2) Graduate students.--The period during which a
graduate student may receive grants under this subpart shall be
the period required for the completion of a master's degree
course of study being pursued by that student at the
institution at which the student is in attendance, except that
the total amount that a student may receive under this subpart
for graduate study shall not exceed $8,000 with respect to a
student who receives only TEACH Grants, and $10,000 with
respect to a student who receives TEACH Grants and Bonus TEACH
Grants.
``(3) Remedial course; study abroad.--Nothing in this
section shall exclude from eligibility courses of study which
are noncredit or remedial in nature (including courses in
English language acquisition) which are determined by the
institution to be necessary to help the student be prepared for
the pursuit of a first undergraduate baccalaureate degree or
certificate or, in the case of courses in English language
instruction, to be necessary to enable the student to utilize
already existing knowledge, training, or skills. Nothing in
this section shall exclude from eligibility programs of study
abroad that are approved for credit by the home institution at
which the student is enrolled.
``SEC. 420M. ELIGIBILITY; APPLICATIONS; SELECTION.
``(a) Applications; Demonstration of Eligibility.--
``(1) Filing required.--The Secretary shall from time to
time set dates by which students shall file applications for
grants under this subpart. Each student desiring a grant under
this subpart for any year shall file an application containing
such information and assurances as the Secretary may deem
necessary to enable the Secretary to carry out the functions
and responsibilities of this subpart.
``(2) Demonstration of teach grant eligibility.--Each
application submitted under paragraph (1) for a TEACH Grant
shall contain such information as is necessary to demonstrate
that--
``(A) if the applicant is an enrolled student--
``(i) the student is an eligible student
for purposes of section 484;
``(ii) the student--
``(I) has a grade point average
that is determined, under standards
prescribed by the Secretary, to be
comparable to a 3.25 average on a zero
to 4.0 scale, except that, if the
student is in the first year of a
program of undergraduate education,
such grade point average shall be
determined on the basis of the
student's cumulative high school grade
point average; or
``(II) displayed high academic
aptitude by receiving a score above the
75th percentile on at least one of the
batteries in an undergraduate or
graduate school admissions test; and
``(iii) the student is completing
coursework and other requirements necessary to
begin a career in teaching, or plans to
complete such coursework and requirements prior
to graduating; or
``(B) if the applicant is a current or prospective
teacher applying for a grant to obtain a graduate
degree--
``(i) the applicant is a teacher or a
retiree from another occupation with expertise
in a field in which there is a shortage of
teachers, such as math, science, special
education, English language acquisition, or
another high-need subject; or
``(ii) the applicant is or was a teacher
who is using high-quality alternative
certification routes, such as Teach for
America, to get certified.
``(3) Demonstration of bonus teach grant eligibility.--Each
application submitted under paragraph (1) for a Bonus TEACH
Grant shall contain such information as is necessary to
demonstrate that--
``(A) the applicant is eligible for, and has
applied for, a TEACH Grant; and
``(B) the applicant is--
``(i) a student pursuing an undergraduate
degree in mathematics, science, or a science-
related field; and
``(ii) a student enrolled in a qualified
teacher preparation program, as defined in
section 420N.
``(b) Agreements To Serve.--Each application under subsection (a)
shall contain or be accompanied by an agreement by the applicant that--
``(1) the applicant will--
``(A) serve as a full-time teacher for a total of
not less than 4 academic years within 8 years after
completing the course of study for which the applicant
received a TEACH Grant under this subpart;
``(B) teach in a school described in section
465(a)(2)(A);
``(C) with respect to an applicant for--
``(i) TEACH Grants, teach in any of the
following fields: mathematics, science, a
foreign language, bilingual education, or
special education, or as a reading specialist,
or another field documented as high-need by the
Federal Government, State government, or local
education agency and approved by the Secretary;
or
``(ii) TEACH Grants and Bonus TEACH Grants,
teach mathematics, science, or a science-
related field;
``(D) submit evidence of such employment in the
form of a certification by the chief administrative
officer of the school upon completion of each year of
such service; and
``(E) comply with the requirements for being a
highly qualified teacher as defined in section 9101 of
the Elementary and Secondary Education Act of 1965; and
``(2) in the event that the applicant is determined to have
failed or refused to carry out such service obligation, the sum
of the amounts of any TEACH Grants and Bonus TEACH Grants
received by such applicant will be treated as a loan and
collected from the applicant in accordance with subsection (c)
and the regulations thereunder.
``(c) Repayment for Failure To Complete Service.--In the event that
any recipient of a grant under this subpart fails or refuses to comply
with the service obligation in the agreement under subsection (b), the
sum of the amounts of any TEACH Grants and Bonus TEACH Grants received
by such recipient shall be treated as a Direct Loan under part D of
title IV, and shall be subject to repayment, together with interest
thereon accruing after the period of service, in accordance with terms
and conditions specified by the Secretary in regulations under this
subpart.
``SEC. 420N. DEFINITIONS.
``For the purposes of this subpart:
``(1) Eligible institution.--The term `eligible
institution' means an institution of higher education as
defined in section 102, except that such term does not include
an institution described in subsection (a)(1)(A) of that
section.
``(2) Qualified teacher preparation program.--The term
`qualified teacher preparation program' means a program for
students described in subsection (a)(2)(A) of section 420M or
teachers described in subsection (a)(2)(B) of such section
(referred to jointly in this paragraph as `teacher candidates')
that--
``(A) recruits and prepares teacher candidates who
major in science, technology fields, engineering, or
mathematics disciplines to become certified as
elementary and secondary teachers in those disciplines,
with the goals of improving teacher knowledge and
effectiveness and increasing elementary and secondary
student academic achievement;
``(B) is implemented by an institution of higher
education in partnership with high-need local
educational agencies;
``(C) offers a baccalaureate degree with a
concurrent teacher certification to teacher candidates;
``(D) is implemented in coordination with the
faculty of the education, sciences, and mathematics
departments of the institution of higher education;
``(E) utilizes experienced teachers who have a
demonstrated record of success in teaching underserved
students to instruct teacher candidates in science,
technology fields, engineering, or mathematics
disciplines;
``(F) provides teacher candidates with--
``(i) support services, including mentoring
by experienced teachers who have a demonstrated
record of success in teaching underserved
students;
``(ii) exposure to, and field experience
in, the classroom within the first year of
entering the qualified teacher preparation
program; and
``(iii) other related support practices
while the teacher candidates are participating
in the program, and after such candidates
graduate from the isntitution of higher
education and are employed as teachers;
``(G) participates in partnerships which include
the institution of higher education and local
educational agencies and charter districts to provide
opportunities for teacher candidate field work;
``(H) focuses on increasing the number of teachers
in the science, technology fields, engineering, or
mathematics disciplines; and
``(I) encourages individuals from underrepresented
populations to enter into the teaching profession.
``SEC. 420O. PROGRAM PERIOD AND FUNDING.
``There shall be available to the Secretary to carry out this
subpart, from funds not otherwise appropriated, such sums as may be
necessary to provide TEACH Grants and Bonus TEACH Grants in accordance
with this subpart to each eligible student.''.
PART B--CENTERS OF EXCELLENCE
SEC. 311. CENTERS OF EXCELLENCE.
Title II (20 U.S.C. 1021 et seq.) is amended by adding at the end
the following:
``PART C--CENTERS OF EXCELLENCE
``SEC. 231. DEFINITIONS.
``As used in this part:
``(1) Eligible institution.--The term `eligible
institution' means--
``(A) an institution of higher education that has a
teacher preparation program that meets the requirements
of section 203(b)(2) and that is--
``(i) a part B institution (as defined in
section 322);
``(ii) a Hispanic-serving institution (as
defined in section 502);
``(iii) a Tribal College or University (as
defined in section 316);
``(iv) an Alaska Native-serving institution
(as defined in section 317(b)); or
``(v) a Native Hawaiian-serving institution
(as defined in section 317(b));
``(B) a consortium of institutions described in
subparagraph (A); or
``(C) an institution described in subparagraph (A),
or a consortium described in subparagraph (B), in
partnership with any other institution of higher
education, but only if the center of excellence
established under section 232 is located at an
institution described in subparagraph (A).
``(2) Highly qualified.--The term `highly qualified' when
used with respect to an individual means that the individual is
highly qualified as determined under section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)
or section 602 of the Individuals with Disabilities Education
Act (20 U.S.C. 1401).
``(3) Scientifically based reading research.--The term
`scientifically based reading research' has the meaning given
such term in section 1208 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6368).
``(4) Scientifically based research.--The term
`scientifically based research' has the meaning given such term
in section 9101 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7801).
``SEC. 232. CENTERS OF EXCELLENCE.
``(a) Program Authorized.--From the amounts appropriated to carry
out this part, the Secretary is authorized to award competitive grants
to eligible institutions to establish centers of excellence.
``(b) Use of Funds.--Grants provided by the Secretary under this
part shall be used to ensure that current and future teachers are
highly qualified, by carrying out one or more of the following
activities:
``(1) Implementing reforms within teacher preparation
programs to ensure that such programs are preparing teachers
who are highly qualified, are able to understand scientifically
based research, and are able to use advanced technology
effectively in the classroom, including use for instructional
techniques to improve student academic achievement, by--
``(A) retraining faculty; and
``(B) designing (or redesigning) teacher
preparation programs that--
``(i) prepare teachers to close student
achievement gaps, are based on rigorous
academic content, scientifically based research
(including scientifically based reading
research), and challenging State student
academic content standards; and
``(ii) promote strong teaching skills.
``(2) Providing sustained and high-quality preservice
clinical experience, including the mentoring of prospective
teachers by exemplary teachers, substantially increasing
interaction between faculty at institutions of higher education
and new and experienced teachers, principals, and other
administrators at elementary schools or secondary schools, and
providing support, including preparation time, for such
interaction.
``(3) Developing and implementing initiatives to promote
retention of highly qualified teachers and principals,
including minority teachers and principals, including programs
that provide--
``(A) teacher or principal mentoring from exemplary
teachers or principals; or
``(B) induction and support for teachers and
principals during their first 3 years of employment as
teachers or principals, respectively.
``(4) Awarding scholarships based on financial need to help
students pay the costs of tuition, room, board, and other
expenses of completing a teacher preparation program.
``(5) Disseminating information on effective practices for
teacher preparation and successful teacher certification and
licensure assessment preparation strategies.
``(6) Activities authorized under sections 202, 203, and
204.
``(c) Application.--Any eligible institution desiring a grant under
this section shall submit an application to the Secretary at such a
time, in such a manner, and accompanied by such information the
Secretary may require.
``(d) Minimum Grant Amount.--The minimum amount of each grant under
this part shall be $500,000.
``(e) Limitation on Administrative Expenses.--An eligible
institution that receives a grant under this part may not use more than
2 percent of the grant funds for purposes of administering the grant.
``(f) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out this part.
``SEC. 233. APPROPRIATIONS.
``There shall be available to the Secretary, from funds not
otherwise appropriated, $50,000,000 for the period beginning with
fiscal year 2008 and ending with fiscal year 2012, to carry out this
part beginning with academic year 2008-2009, which shall remain
available until expended. The authority to carry out this part shall
expire at the end of fiscal year 2012.''.
TITLE IV--COLLEGE ACCESS CHALLENGE GRANT PROGRAM
SEC. 401. COLLEGE ACCESS CHALLENGE GRANTS.
(a) Challenge Grant Program Established.--
(1) Program established.--The Secretary shall establish a
program to award matching grants to philanthropic organizations
to increase the number of eligible students from underserved
populations who enter and complete college by providing grants
to philanthropic organizations who are members of eligible
consortia to carry out the activities of the consortia to
achieve this purpose, including--
(A) providing need-based grants to eligible
students;
(B) providing support to eligible students through
school- or institution-based mentoring programs; and
(C) conducting outreach programs to encourage
eligible students to pursue higher education.
(2) Grant period; renewability.--Grants under this section
shall be awarded for one 5-year period, and may not be renewed.
(3) Grant amounts.--
(A) In general.--A grant awarded under this part
for a given fiscal year to a philanthropic organization
shall be in an amount equal to lesser of--
(i) 200 percent of the amount of charitable
gifts received in the preceding fiscal year by
the eligible consortia, including charitable
gifts received by the individual members of the
consortia; or
(ii) the maximum grant amount established
by the Secretary by regulation, pursuant to
subsection (f).
(B) Gifts provided in cash or in-kind.--For the
purposes of subparagraph (A), the charitable gifts
received by an eligible consortia and its members may
be provided in cash or in-kind, including physical non-
cash contributions of monetary value such as property,
facilities, and equipment, but excluding services.
(b) Uses of Grant.--
(1) In general.--A philanthropic organization receiving a
grant under this section shall--
(A) provide grants to eligible students; and
(B) distribute grants to members of the consortia
with which the philanthropic organization is
affiliated, in accordance with the plan described in
subsection (c)(2)(A), to fund the activities of such
consortia in accordance with the application under
subsection (c).
(2) Limitation.--Not more than 15 percent of the funds made
available annually through a grant under this section may be
used for administrative purposes.
(c) Applications.--A philanthropic organization desiring 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. Such application shall include the following:
(1) A description of an eligible consortia that meets the
requirements of subsection (d), with which the philanthropic
organization is affiliated, in accordance with subsection (g).
(2) A detailed description of--
(A) the philanthropic organization's plans for
distributing the matching grant funds among the members
of the eligible consortia; and
(B) the eligible consortia's plans for using the
matching grant funds, including how the funds will be
used to provide financial aid, mentoring, and outreach
programs to eligible students.
(3) A plan to ensure the viability of the eligible
consortia and the work of the consortia beyond the grant
period.
(4) A detailed description of the activities that carry out
this section that are conducted by the eligible consortia at
the time of the application, and how the matching grant funds
will assist the eligible consortia with expanding and enhancing
such activities.
(5) A description of the organizational structure that will
be used to administer the activities carried out under the
plan, including a description of the system used to track the
participation of students who receive grants to degree
completion.
(6) A description of the strategies that will be used to
identify eligible students who are enrolled in secondary school
and who may benefit from the activities of the eligible
consortia.
(d) Eligible Consortia.--An eligible consortia with which a
philanthropic organization is affiliated for the program under this
section shall--
(1) be a partnership of mulitple entities that have agreed
to work together carry out this section, including--
(A) such philanthropic organization, which shall
serve as the manager of the consortia;
(B) a State that demonstrates a commitment to
ensuring the creation of a Statewide system to address
the issues of early intervention and financial support
for eligible students to enter and remain in college;
and
(C) at the discretion of the philanthropic
organization described in subparagraph (A), additional
partners, including other non-profit organizations,
government entities (including local municipalities,
school districts, cities, and counties), institutions
of higher education, and other public or private
programs that provide mentoring or outreach programs;
and
(2) conducts activites to assist eligible students with
entering and remaining in college, which include--
(A) providing need-based grants to eligible
students;
(B) providing early notification to low-income
students of their potential eligibility for Federal
financial aid, as well as financial aid and other
support available from the eligible consortia;
(C) encouraging increased eligible student
participation in higher education through mentoring or
outreach programs; and
(D) conducting marketing and outreach efforts that
are designed to--
(i) encourage full participation of
eligible students in the activities of the
consortia that carry out the purposes of this
section; and
(ii) provide the communities impacted by
the activities of the consortia with a general
knowledge about the efforts of the consortia.
(e) Annual Report.--A philanthropic organization receiving a grant
under this section shall prepare and submit an annual report to the
Secretary on the activities carried out with such grant. The report
shall include--
(1) each activity that was provided to eligible students
over the course of the year;
(2) the cost of providing each such activity;
(3) the number and percentage of eligible students who
received grants, mentoring, and outreach services; and
(4) the total amount of charitable gifts received by the
eligible consortia (including its members) with which the
philanthropic organization is affiliated for the fiscal year.
(f) Regulations.--The Secretary shall promulgate regulations to
carry out this section. Such regulations shall include--
(1) the maximum grant amount that may be awarded to a
philanthropic organization under this section;
(2) the minimum amount of chartable gifts an eligible
consortia (including its members) shall receive in a fiscal
year for the philanthropic organization affiliated with such
consortia to be eligible for a grant under this section.
(g) Definitions.--For the purposes of this section:
(1) Eligible student.--The term ``eligible student'' means
an individual who--
(A) is a member of an underserved population;
(B) is enrolled--
(i) in a secondary school pursuing a high
school diploma; or
(ii) in an institution of higher education
or is planning to attend an institution of
higher education; and
(C) either--
(i) is receiving, or has received,
financial assistance or support services from
the consortium; or
(ii) meets 2 or more 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 need-based undergraduate award.
(IV) Is participating in, or has
participated in, a Federal, State,
institutional, or community mentoring
or outreach program, as recognized by
the eligible consortia carrying out
activities under this section.
(2) Philanthropic organization.--The term ``philanthropic
organization'' means a non-profit organization--
(A) that does not receive funds under title IV of
the Higher Education Act of 1965 or under the
Elementary and Secondary Education Act of 1965;
(B) that is not a local educational agency or an
insitution of higher education;
(C) that has a demonstrated record of dispersing
grant aid to underserved populations to ensure access
to, and participation in, higher education;
(D) that is affiliated with an eligible consortia
(as defined in subsection (e)) to carry out this
section; and
(E) the primary purpose of which is to provide
financial aid and support services to students from
underrepresented populations to increase the number of
such students who enter and remain in college.
(3) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and
Puerto Rico.
(4) Underserved population.--The term ``underserved
population'' means a group of individuals who traditionally
have not been well represented in the general population of
students who pursue and successfully complete a higher
education degree.
(h) Program Funding.--
(1) In general.--There shall be available to the Secretary
to carry out this section, from funds not otherwise
appropriated, $300,000,000 for the period beginning with fiscal
year 2008 and ending with fiscal year 2012.
(2) Use of excess funds.--If, at the end of a fiscal year,
the funds available for awarding grants under this section
exceed the amount necessary to make such grants, then all of
the excess funds shall remain available for the subsequent
fiscal year, and shall be used to award grants under section
401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) for
such subsequent fiscal year.
(i) Sunset.--The authority to carry out this section shall expire
at the end of fiscal year 2012.
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