110 HR 2669 IH: College Cost Reduction Act U.S. House of Representatives 2007-06-12 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I 110th CONGRESS 1st Session H. R. 2669 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.
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.
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.
<enum>I</enum><header>Investing in Student Aid</header> <part id="H96AD3EDDCC6340C287FF2060300067E6"><enum>A</enum><header>Increasing the purchasing power of Pell Grants</header> <section display-inline="no-display-inline" id="H864C7881D6104CD1B26BFF17530000D" section-type="subsequent-section"><enum>101.</enum><header>Mandatory Pell Grant Increases</header> <subsection id="H84D5FBBBBB9C49729C24EA2D724973C8"><enum>(a)</enum><header>Extension of authority</header><text display-inline="yes-display-inline">Section 401(a) (20 U.S.C. 1070a(a)) is amended by striking <quote>fiscal year 2004</quote> and inserting <quote>fiscal year 2013</quote>.</text> </subsection><subsection id="H2F9F0752E29D4EFD8BE5CEE33CAD6265"><enum>(b)</enum><header>Funding for increases</header><text display-inline="yes-display-inline">Section 401(b) (20 U.S.C. 1070a(b)) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H1025824C145B416EBA73F2EE00A8EE82" style="OLC"> <paragraph id="HB8CABE801DA544A8AF7BEADCD33E8D27"><enum>(9)</enum><header>Additional funds</header> <subparagraph id="HDFBBDCD13D594DAABF6078D056078569"><enum>(A)</enum><header>In general</header><text>There are authorized to be appropriated, and there are appropriated, to carry out <internal-xref idref="H529C3DB5F5084E108D886FE8009FFE73" legis-path="(9)(B)">subparagraph (B) of this paragraph</internal-xref> (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:</text> <clause id="HAC51A4025C1A4BB69900FE3E81CF5200"><enum>(i)</enum><text>$420,000,000 for fiscal year 2008;</text> </clause><clause id="H37E560B73FDF485284C53561E2275384"><enum>(ii)</enum><text>$870,000,000 for fiscal year 2009;</text> </clause><clause id="HDA48ADF8938248B2964EFECACCC6F9D"><enum>(iii)</enum><text>$1,330,000,000 for fiscal year 2010;</text> </clause><clause id="HB795806A2CD04B6F95427B887782085C"><enum>(iv)</enum><text>$1,820,000,000 for fiscal year 2011;</text> </clause><clause id="H1CB6F403F25342909E738EEB00D43830"><enum>(v)</enum><text>$2,340,000,000 for fiscal year 2012;</text> </clause><clause commented="no" id="H6A7EBC093159471BA2649DCBAED5F1BC"><enum>(vi)</enum><text>$2,390,000,000 for fiscal year 2013;</text> </clause><clause commented="no" id="H3F3011B2D96044B898D55562EB61008B"><enum>(vii)</enum><text>$2,430,000,000 for fiscal year 2014;</text> </clause><clause commented="no" id="H74C341521CFB489AA000D5E3BDDB2FF"><enum>(viii)</enum><text>$2,470,000,000 for fiscal year 2015;</text> </clause><clause commented="no" id="HF594141FA2334D6D89C429E5F6B0C3E4"><enum>(ix)</enum><text>$2,500,000,000 for fiscal year 2016; and</text> </clause><clause commented="no" id="HF2648D0D62CC441F84AA7D0099000014"><enum>(x)</enum><text>$2,520,000,000 for fiscal year 2017.</text> </clause></subparagraph><subparagraph id="H529C3DB5F5084E108D886FE8009FFE73"><enum>(B)</enum><header>Increase in Federal Pell Grants</header><text>The amounts made available pursuant to <internal-xref idref="HDFBBDCD13D594DAABF6078D056078569" legis-path="(9)(A)">subparagraph (A) of this paragraph</internal-xref> 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—</text> <clause id="H6A23B94C916A43DBBE9000FC7E05A78C"><enum>(i)</enum><text>$100 for award year 2008–2009;</text> </clause><clause id="HF1B4079F0A4A422BAF52600025D4C7D"><enum>(ii)</enum><text>$200 for award year 2009–2010;</text> </clause><clause id="H0A7D2CAB3DD94F4384658E80DC8CCBAA"><enum>(iii)</enum><text>$300 for award year 2010–2011;</text> </clause><clause id="HF67B3873DE1B41E7865C76C58CB29F64"><enum>(iv)</enum><text>$400 for award year 2011–2012; and</text> </clause><clause id="H662DF77CA23A4A1995907EE674D9381F"><enum>(v)</enum><text>$500 for award year 2012–2013 and each subsequent award year.</text> </clause></subparagraph><subparagraph commented="no" id="H110091A0BB47476DB7DA42E79B6FEF45"><enum>(C)</enum><header>Use of fiscal year funds for award years</header><text>The amounts made available by <internal-xref idref="HDFBBDCD13D594DAABF6078D056078569" legis-path="(9)(A)">subparagraph (A)</internal-xref> for any fiscal year shall be available and remain available for use under <internal-xref idref="H529C3DB5F5084E108D886FE8009FFE73" legis-path="(9)(B)">subparagraph (B)</internal-xref> for the award year that begins in such fiscal year.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H62A587992C0D4C9A9F5B358B9329F4DB"><enum>(c)</enum><header> Authorized maximums</header><text display-inline="yes-display-inline">Section 401(b)(2)(A) (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(b)(2)(A)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HA5C6DE85EC38489D8B8C9DA7463D3856" style="OLC"> <paragraph commented="no" id="H3851DEFEA42D47D00048219E2C483E96"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HA7EBB3FD1C454A7200C64B969F6D15A0"><enum>(A)</enum><text display-inline="yes-display-inline">The amount of the Federal Pell Grant for a student eligible under this part shall be—</text> <clause commented="no" id="HACBFA422ABFB454F9BF0FD504BE61D1" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">$7,600 for academic year 2008–2009;</text> </clause><clause commented="no" id="H4595E2C55E664D90A755349C27BA598E" indent="up1"><enum>(ii)</enum><text>$8,600 for academic year 2009–2010;</text> </clause><clause commented="no" id="H25A7AED39F034D5F92C2E860A13E4764" indent="up1"><enum>(iii)</enum><text>$9,600 for academic year 2010–2011;</text> </clause><clause commented="no" id="H413C546CEA38460882BB659FE5AB75F1" indent="up1"><enum>(iv)</enum><text>$10,600 for academic year 2011–2012;</text> </clause><clause commented="no" id="H205A404CA15341609659D660BD11D274" indent="up1"><enum>(v)</enum><text display-inline="yes-display-inline">$11,600 for academic year 2012–2013,</text> </clause><continuation-text commented="no" continuation-text-level="subparagraph">less an amount equal to the amount determined to be the expected family contribution with respect to that student for that year.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection display-inline="no-display-inline" id="HAD4A6665D7734DB9A9F1B78EA39E2D6"><enum>(d)</enum><header>Tuition Sensitivity</header> <paragraph id="H96F03A429C3142A2B28707828449DBB2"><enum>(1)</enum><header>Amendment</header><text>Section 401(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(b)</external-xref>) is further amended—</text> <subparagraph id="H3FC83FB296C3492E839BDA508623789B"><enum>(A)</enum><text>by striking paragraph (3); and</text> </subparagraph><subparagraph id="H73928576034B49B694102870D3A26900"><enum>(B)</enum><text>by redesignating paragraphs (4) through (9) as paragraphs (3) through (8), respectively.</text> </subparagraph></paragraph><paragraph id="HFC1C660C2486478AACD9537EBD2E956F"><enum>(2)</enum><header>Effective date</header><text>The amendments made by <internal-xref idref="H96F03A429C3142A2B28707828449DBB2" legis-path="101.(d)(1)">paragraph (1) of this subsection</internal-xref> are effective on the date of enactment of this Act.</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="H84A6D6BAE2604C3AB4007058FD664D5C"><enum>(e)</enum><header>Multiple Grants</header><text>Paragraph (5) of section 401(b) (as redesignated by subsection (d)(2)) is amended to read as follows:</text> <quoted-block id="HCD64B50D5E3C4EDDA000F53B9B01C726" style="OLC"> <paragraph id="H5709762D8BA046EE9625F0223EE8CD57"><enum>(5)</enum><header>Year-round pell grants</header><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HD58B731902A84CA6AF58B2F8F1EA4603"><enum>(f)</enum><header>Academic Competitiveness Grants</header><text display-inline="yes-display-inline">Section 401A (as amended by section 8003 of <external-xref legal-doc="public-law" parsable-cite="pl/109/171">Public Law 109–171</external-xref>) is amended—</text> <paragraph commented="no" id="H437570A49D5C4E399098F3FB119869BC"><enum>(1)</enum><text>in subsection (c)(3)(A)(ii), by inserting <quote>, except as part of a secondary school program of study</quote> before the semicolon;</text> </paragraph><paragraph id="H21C679C5EF6F4A81BFBAB68975A3DE89"><enum>(2)</enum><text>by redesignating subsection (g) as subsection (h); and</text> </paragraph><paragraph commented="no" id="HD9258312FD2149A29D53F43BE8F61CEF"><enum>(3)</enum><text>by inserting after subsection (f) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H905ACBE904B44F359681206E96E77CF" style="OLC"> <subsection commented="no" id="H876F83766F4946E299A5B7DB05E816D1"><enum>(g)</enum><header>Determination of academic year</header><text display-inline="yes-display-inline">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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H22ABF7658B4C4023A6A6F08597F5F8BB" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Support for working students</header> <subsection commented="no" display-inline="no-display-inline" id="H8FA0B9444EB34730A4F7D91B269F2426"><enum>(a)</enum><header display-inline="yes-display-inline">Dependent Students</header><text display-inline="yes-display-inline">Subparagraph (D) of section 475(g)(2) (20 U.S.C. 1087oo)(g)(2)(D)) is amended to read as follows:</text> <quoted-block act-name="Higher Education Act of 1965" display-inline="no-display-inline" id="H2F3CEFA337B14045BF687B84E246B161" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="HE511AF8E30184E86963E80CFF8003E20"><enum>(D)</enum><text>an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 478)—</text> <clause commented="no" display-inline="no-display-inline" id="H10A37482EB2848E69B39E3F92D9CBE1E"><enum>(i)</enum><text display-inline="yes-display-inline">for the 2009–2010 academic year, $3,750;</text> </clause><clause commented="no" display-inline="no-display-inline" id="H9C7FDE14EB8340D798C3CDBA2BA5C69B"><enum>(ii)</enum><text display-inline="yes-display-inline">for the 2010–2011 academic year, $4,500;</text> </clause><clause commented="no" display-inline="no-display-inline" id="H955A08B57B03474F9144E33FDBF10048"><enum>(iii)</enum><text display-inline="yes-display-inline">for the 2011–2012 academic year, $5,250; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="HAED93E04490247DABB3DC3CA258700C5"><enum>(iv)</enum><text display-inline="yes-display-inline">for the 2012–2013 academic year, $6,000;</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H7AAF02E4F2024C4EBD34052F3FBC7393"><enum>(b)</enum><header display-inline="yes-display-inline">Independent Students Without Dependents Other Than a Spouse</header><text display-inline="yes-display-inline">Clause (iv) of section 476(b)(1)(A) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087pp">20 U.S.C. 1087pp(b)(1)(A)(iv)</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Higher Education Act of 1965" display-inline="no-display-inline" id="H4E11E555D20649DBB97B30C79399D5A0" style="OLC"> <clause commented="no" display-inline="no-display-inline" id="HABCBA32037764FC09B9CC1974C74AE4C"><enum>(iv)</enum><text display-inline="yes-display-inline">an income protection allowance of the following amount (or a successor amount prescribed by the Secretary under section 478)—</text> <subclause commented="no" display-inline="no-display-inline" id="H909D0EFA027F4D2E9682F6E0303459D1"><enum>(I)</enum><text display-inline="yes-display-inline">for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2)—</text> <item commented="no" display-inline="no-display-inline" id="H5C8A5B4402394B8EA4434EF89AFE1FE"><enum>(aa)</enum><text display-inline="yes-display-inline">for the 2009–2010 academic year, $6,690;</text> </item><item commented="no" display-inline="no-display-inline" id="H8CB6CDFB15D3441400A3D379D0D59734"><enum>(bb)</enum><text display-inline="yes-display-inline">for the 2010–2011 academic year, $7,160;</text> </item><item commented="no" display-inline="no-display-inline" id="HAC3D6860CE054099A087CE3FAEED5EA2"><enum>(cc)</enum><text display-inline="yes-display-inline">for the 2011–2012 academic year, $7,630; and</text> </item><item commented="no" display-inline="no-display-inline" id="H7909614F39E5458184474F5446FB2618"><enum>(dd)</enum><text display-inline="yes-display-inline">for the 2012–2013 academic year, $8,090; and</text> </item></subclause><subclause commented="no" display-inline="no-display-inline" id="H1E811C2A8072498F93ADFB1CA72FC441"><enum>(II)</enum><text display-inline="yes-display-inline">for married students where 1 is enrolled pursuant to subsection (a)(2)—</text> <item commented="no" display-inline="no-display-inline" id="HDE7B7BD1DD864BF6B464B1D4166E59C7"><enum>(aa)</enum><text display-inline="yes-display-inline">for the 2009–2010 academic year, $10,720;</text> </item><item commented="no" display-inline="no-display-inline" id="H3ABF4BC9831948CBA629F300D6599F64"><enum>(bb)</enum><text display-inline="yes-display-inline">for the 2010–2011 academic year, $11,470;</text> </item><item commented="no" display-inline="no-display-inline" id="HDA85A0F25F9A43A1A46579CF19F14158"><enum>(cc)</enum><text display-inline="yes-display-inline">for the 2011–2012 academic year, $12,220; and</text> </item><item commented="no" display-inline="no-display-inline" id="HE810C5FBA76F45FEBB55597470FACCDE"><enum>(dd)</enum><text display-inline="yes-display-inline">for the 2012–2013 academic year, $12,960;</text> </item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HEF5A40C1C3454F1BA48C06E7F2B664FA"><enum>(c)</enum><header>Updated tables and amounts</header><text>Section 478(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087rr">20 U.S.C. 1087rr(b)</external-xref>) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H160162A1B67945A8A586159DB26B9850"><enum>(1)</enum><text>in paragraph (1)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HFBC37F3D966945B09EE8C4D799F50024"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">Revised tables.—</header-in-text>For each</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="HD5F7A6E2616A47BFADC2DB6BD46922DC" style="OLC"> <text><header-in-text level="paragraph" style="OLC">Revised tables.—</header-in-text></text><subparagraph commented="no" display-inline="no-display-inline" id="H66FAE4AFC4C140FBA0DAA67F128BDFD6"><enum>(A)</enum><text><header-in-text level="paragraph" style="OLC">In general</header-in-text>.—For each</text> </subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H202C158EF7CC4099A2D7921151360037"><enum>(B)</enum><text>in subparagraph (A) (as designated by subparagraph (A)), in the third sentence—</text> <clause commented="no" display-inline="no-display-inline" id="HF0081CFC2C15460C80356CBDC8063550"><enum>(i)</enum><text>by striking <quote>preceding sentence</quote> and inserting <quote>subparagraph (A)</quote>; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="H5D71980A240F4AB380BC13882BAEDE5E"><enum>(ii)</enum><text>by striking <quote>For the 2007–2008</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="H5A33FF1FB79943D1BF51F1051CEF668" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="H89967897402E4EF4AAA584B0E1722412"><enum>(B)</enum><header>Special rule for 2007–2008 academic year</header><text>For the 2007–2008</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H90B34E10B0CB471181CC724B67A85D44"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H2306D4668B874CA98D75CA001C824378" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="H2F1982A276874B39971213DA067C8DB1"><enum>(C)</enum><header>Special rule for 2009–2010 through 2012–2013 academic years</header><text>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.</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4AC7BCAD15234E5AAAD8A79B03E1F5C5"><enum>(2)</enum><text>in paragraph (2), by striking <quote>shall be developed</quote> and all that follows through the period at the end and inserting</text> <quoted-block display-inline="yes-display-inline" id="H1B2F89AFC5B643A6969EC3BFA8CEC4E1" style="OLC"> <text>shall be developed—</text><subparagraph commented="no" display-inline="no-display-inline" id="H88ACCCE2BC0048679515BF1336B78FA"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H557F48FD578C4BEBAA3FE65236B3B4FF"><enum>(B)</enum><text>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;</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB10F86C3EF8646FABCF898C9ACFA484"><enum>(d)</enum><header>Effective date</header><text>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.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H5D4848F5DB434E5E8EBEF10587436F97" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Simplified needs test and automatic zero improvements</header> <subsection commented="no" display-inline="no-display-inline" id="H1636E839F0BD455283E09350EE2E19C5"><enum>(a)</enum><header display-inline="yes-display-inline">Simplified Needs Test</header><text display-inline="yes-display-inline">Section 479 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087ss">20 U.S.C. 1087ss</external-xref>) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H6A9CEE4F4F8C462891070056157569C5"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H6840F7E86921421DBF0039A2B9B79C23"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(A)(i)—</text> <clause commented="no" display-inline="no-display-inline" id="HE3576B5316BC47F4A6DF00B56732F84B"><enum>(i)</enum><text display-inline="yes-display-inline">in subclause (II), by striking <quote>or</quote> after the semicolon;</text> </clause><clause commented="no" display-inline="no-display-inline" id="H3D1AA77BC4A8416F00AA4BD6D3C3CA66"><enum>(ii)</enum><text display-inline="yes-display-inline">by redesignating subclause (III) as subclause (IV);</text> </clause><clause commented="no" display-inline="no-display-inline" id="H2D39265118DE47CDAD5C98473D667889"><enum>(iii)</enum><text display-inline="yes-display-inline">by inserting after subclause (II) the following:</text> <quoted-block display-inline="no-display-inline" id="HF63A0ED2EE914A33A5ADCCC1F505711" style="OLC"> <subclause commented="no" display-inline="no-display-inline" id="H479EDEF3A88240A6848F93FAC2F2376B"><enum>(III)</enum><text display-inline="yes-display-inline">1 of whom is a dislocated worker; or</text> </subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause commented="no" display-inline="no-display-inline" id="H848C5197937643B1A47E6969872EFCCD"><enum>(iv)</enum><text display-inline="yes-display-inline">in subclause (IV) (as redesignated by clause (ii)), by striking <quote>12-month</quote> and inserting <quote>24-month</quote>; and</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H43FF57A9402F47BDBBD7C7F5E53C5F24"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (B)(i)—</text> <clause commented="no" display-inline="no-display-inline" id="H0F6F9D443B244811900058CEC6072C14"><enum>(i)</enum><text display-inline="yes-display-inline">in subclause (II), by striking <quote>or</quote> after the semicolon;</text> </clause><clause commented="no" display-inline="no-display-inline" id="H0C127FBF389F4B74A82EBB9213F82971"><enum>(ii)</enum><text display-inline="yes-display-inline">by redesignating subclause (III) as subclause (IV);</text> </clause><clause commented="no" display-inline="no-display-inline" id="HB396659837054C8086572BDC721E00B9"><enum>(iii)</enum><text display-inline="yes-display-inline">by inserting after subclause (II) the following:</text> <quoted-block display-inline="no-display-inline" id="HC3E2B54C6DDD46C18F1F4F30428FECC4" style="OLC"> <subclause commented="no" display-inline="no-display-inline" id="H4285629B803844FFBC90DC98F6BAD06"><enum>(III)</enum><text display-inline="yes-display-inline">1 of whom is a dislocated worker; or</text> </subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </clause><clause commented="no" display-inline="no-display-inline" id="H2543293D80B248E7A076DEB4EA88D264"><enum>(iv)</enum><text display-inline="yes-display-inline">in subclause (IV) (as redesignated by clause (ii)), by striking <quote>12-month</quote> and inserting <quote>24-month</quote>;</text> </clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H87E4AEDB5B464D0181F0CBA2BE06D2C"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (c)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H61C08CB0104944CF82CF0007DEA95800"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text> <clause commented="no" display-inline="no-display-inline" id="H4542922E2C1B4767BE111CAF379EBBE"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text> <subclause commented="no" display-inline="no-display-inline" id="H978FB850412C4CDDB2E100ECE3582E81"><enum>(I)</enum><text display-inline="yes-display-inline">in clause (ii), by striking <quote>or</quote> after the semicolon;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="HF3F3A8D760BE43F1B266574C70936E00"><enum>(II)</enum><text display-inline="yes-display-inline">by redesignating clause (iii) as clause (iv);</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="H7401C9E150724E778EB0581E9C05092C"><enum>(III)</enum><text display-inline="yes-display-inline">by inserting after clause (ii) the following:</text> <quoted-block display-inline="no-display-inline" id="H524E6C890A884FF8A12741572707DBF0" style="OLC"> <clause commented="no" display-inline="no-display-inline" id="H94CB486787C74914B86F40C832C3D2B7"><enum>(iii)</enum><text display-inline="yes-display-inline">1 of whom is a dislocated worker; or</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </subclause><subclause commented="no" display-inline="no-display-inline" id="HE3F0270E5C594ED00047C2CD1FC4E0FB"><enum>(IV)</enum><text display-inline="yes-display-inline">in clause (iv) (as redesignated by subclause (II)), by striking <quote>12-month</quote> and inserting <quote>24-month</quote>; and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="H2FEE8D41F18A4B5EAAD710E2D7CF2400"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking <quote>$20,000</quote> and inserting <quote>$30,000</quote>; and</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H889B38118682461A867B1D21B5BA2CC2"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text> <clause commented="no" display-inline="no-display-inline" id="H8EBCFC8C3C9148429473847FE5C700AC"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text> <subclause commented="no" display-inline="no-display-inline" id="H5973FE0619B9494692DC2CA41278D2A"><enum>(I)</enum><text display-inline="yes-display-inline">in clause (ii), by striking <quote>or</quote> after the semicolon;</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="HA1CFA73FF7C84B0C9E86AD1BB8DA1687"><enum>(II)</enum><text display-inline="yes-display-inline">by redesignating clause (iii) as clause (iv);</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="HD3CC46AA13384B60A87614EEA42E8287"><enum>(III)</enum><text display-inline="yes-display-inline">by inserting after clause (ii) the following:</text> <quoted-block display-inline="no-display-inline" id="H139C8D45D2EF46D8808048A5DEFCB36D" style="OLC"> <clause commented="no" display-inline="no-display-inline" id="H7430D0379A7343508B33655EE0D48CDC"><enum>(iii)</enum><text display-inline="yes-display-inline">is a dislocated worker; or</text> </clause><after-quoted-block>; and</after-quoted-block></quoted-block> </subclause><subclause commented="no" display-inline="no-display-inline" id="H7DB23840FED747A5BC2576E000050065"><enum>(IV)</enum><text display-inline="yes-display-inline">in clause (iv) (as redesignated by subclause (II)), by striking <quote>12-month</quote> and inserting <quote>24-month</quote>; and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="H0E5C86B5D194493FAC7B7C0540ED00E2"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking <quote>$20,000</quote> and inserting <quote>$30,000</quote>; and</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF2D01E204F3A4489B61DF589FFE58EE5"><enum>(C)</enum><text display-inline="yes-display-inline">in the flush matter following paragraph (2)(B), by adding at the end the following: <quote>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).</quote>; and</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE25D748405B40249CA75B7020797B74"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (d)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HA13B13B44F304455AFEE725BD800EF10"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) through (6) as subparagraphs (A) through (F), respectively;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC9E0346AA45544C0ACB3396EE3BFF13E"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>(d) <header-in-text level="subsection" style="OLC">Definition</header-in-text></quote> and all that follows through <quote>the term</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HB98CC8C3020240E18CF53800AF377800" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="H2CFC228F680C46C8B9DEACEA5729184"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text> <paragraph commented="no" display-inline="no-display-inline" id="H9D38C9D262744D14AF02939D65E2098C"><enum>(1)</enum><header display-inline="yes-display-inline">Dislocated worker</header><text display-inline="yes-display-inline">The term <term>dislocated worker</term> has the meaning given the term in section 101 of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801</external-xref>).</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H52BF823E3DA54707B5124F5FCE8DDAFB"><enum>(2)</enum><header display-inline="yes-display-inline">Means-tested Federal Benefit Program</header><text display-inline="yes-display-inline">The term</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H17A317E41F134D9CBBD2320466BF5D5D"><enum>(b)</enum><header display-inline="yes-display-inline">Discretion of Student Financial Aid Administrators</header><text display-inline="yes-display-inline">Section 479A(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087tt">20 U.S.C. 1087tt(a)</external-xref>) is amended in the third sentence by inserting <quote>a family member who is a dislocated worker (as defined in section 101 of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801</external-xref>)),</quote> after <quote>recent unemployment of a family member,</quote>.</text> </subsection><subsection id="H246E3D1B4D1C4EE495E5EFD7867E9B07"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall be effective on July 1, 2009.</text> </subsection></section><section display-inline="no-display-inline" id="H5F49F771F7034D5E91C19776BD6975DF" section-type="subsequent-section"><enum>104.</enum><header>Definitions</header> <subsection commented="no" id="HE710C34870154EA6BB362FAE1F58B8DF"><enum>(a)</enum><header>Total income</header><text display-inline="yes-display-inline">Section 480(a) (20 U.S.C. 1087vv(a)) is amended—</text> <paragraph commented="no" id="H655259F2A7D343C59B3095FDF04D7581"><enum>(1)</enum><text>in paragraph (1), by inserting before the period at the end the following: <quote>, 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 <short-title>College Cost Reduction Act of 2007</short-title></quote>; and</text> </paragraph><paragraph id="HD8120331AF6A4EA19C62ED8C6EBB5C61"><enum>(2)</enum><text>in paragraph (2)—</text> <subparagraph commented="no" id="HDDB10941FCE9418BA4D6DC6E597B0092"><enum>(A)</enum><text>by striking <quote>and no portion</quote> and inserting <quote>no portion</quote>; and</text> </subparagraph><subparagraph commented="no" id="H3F09C4DED247437AB1C0B122BED71579"><enum>(B)</enum><text>by inserting <quote>and no distribution from any qualified education benefit described in subsection (f)(3) that is not subject to Federal income tax,</quote> after <quote>1986,</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H9BCE5B32FF564F498800B06B3E2B3528"><enum>(b)</enum><header>Untaxed income and benefits</header><text display-inline="yes-display-inline">Section 480(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087vv">20 U.S.C. 1087vv(b)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H4656D0B8CB0A4C18998F7B9EF0C5E00" style="OLC"> <subsection id="H7B98FAFEB008497DADE2A883F0ADD512"><enum>(b)</enum><header>Untaxed income and benefits</header> <paragraph id="H27062F41C72D498893F148A409A44D8E"><enum>(1)</enum><text>The term <term>untaxed income and benefits</term> means—</text> <subparagraph id="H5B0704372BF34C5B82CA66F9E1CC42B5"><enum>(A)</enum><text>child support received;</text> </subparagraph><subparagraph id="H65F8B11A696F464900C6D5D26A773A9"><enum>(B)</enum><text>workman's compensation;</text> </subparagraph><subparagraph id="H0474D6029ACE4CF889DB9FE3A5AEDEB4"><enum>(C)</enum><text>veteran's benefits such as death pension, dependency, and indemnity compensation, but excluding veterans’ education benefits as defined in subsection (c);</text> </subparagraph><subparagraph id="HD00F68083FF048A7BC00BDFA14D9F2E"><enum>(D)</enum><text>interest on tax-free bonds;</text> </subparagraph><subparagraph id="H14D99B6840884DC98EE405D7A7E536D"><enum>(E)</enum><text>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);</text> </subparagraph><subparagraph id="HECB403F30C754D4ABD68FBB1B279176D"><enum>(F)</enum><text>cash support or any money paid on the student<quote>s behalf, except, for dependent students, funds provided by the student</quote>s parents;</text> </subparagraph><subparagraph id="H9FBCEC5249CF4E3D00A4F191003FBA30"><enum>(G)</enum><text>untaxed portion of pensions;</text> </subparagraph><subparagraph id="H08D3592C2E794D049E72047E06674947"><enum>(H)</enum><text>payments to individual retirement accounts and Keogh accounts excluded from income for Federal income tax purposes; and</text> </subparagraph><subparagraph id="H8A615E944DDD47C2BD8CFCE4AB995032"><enum>(I)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H3F23D722E6D34128ACB2EC0900BD255D"><enum>(2)</enum><text>The term <term>untaxed income and benefits</term> shall not include the amount of additional child tax credit claimed for Federal income tax purposes.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="H9123CEEA5E1349CA95728F306F31D4E4"><enum>(c)</enum><header>Assets</header><text>Section 480(f) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087vv">20 U.S.C. 1087vv(f)</external-xref>) is amended—</text> <paragraph commented="no" id="H943E556572464E45B669A077EA9A462"><enum>(1)</enum><text>in paragraph (3), by striking <quote>shall not be considered an asset of a student for purposes of section 475</quote> and inserting <quote>shall be considered an asset of the parent for purposes of section 475</quote>;</text> </paragraph><paragraph commented="no" id="H961357034C674019B714CEAF76BCF136"><enum>(2)</enum><text>by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and</text> </paragraph><paragraph commented="no" id="H58138E273BE34B43B7B297CCAD28EFE4"><enum>(3)</enum><text>by inserting after paragraph (3) the following:</text> <quoted-block display-inline="no-display-inline" id="H8E92843B7E6B4414937D62735205DDA8" style="OLC"> <paragraph commented="no" id="HB9B43C104FAF4746008C477752BF438D"><enum>(4)</enum><text>A qualified education benefit shall be considered an asset of the student for purposes of section 476 and 477.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4B8B8FCE35DF48A8877FE97DEBE95B83"><enum>(d)</enum><header>Other financial assistance</header><text>Section 480(j)(2) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087vv">20 U.S.C. 1087vv(j)(2)</external-xref>) is amended by inserting <quote>, 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,</quote> after <quote>1986</quote>.</text> </subsection><subsection id="H44171140B11944338CE96D101629F2C"><enum>(e)</enum><header>Effective Date</header><text>The amendments made by this section shall be effective on July 1, 2009.</text> </subsection></section></part><part id="H551048435DF14FECB000F15E89CA14CC"><enum>B</enum><header>Making Student Loans More Affordable</header> <section display-inline="no-display-inline" id="HB957F117BF814387B70626F37C7C1D00"><enum>111.</enum><header>Interest rate reductions</header> <subsection id="HE24FC9AC49524BE4A5C1ADDF517BBE65"><enum>(a)</enum><header>FFEL Interest Rates</header> <paragraph id="H164E76311E95420C84AB2044F7BDB9D9"><enum>(1)</enum><text>Section 427A(l) (<external-xref legal-doc="usc" parsable-cite="usc/20/1077a">20 U.S.C. 1077a(l)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H94A72AD561604BB49C81047077C765AD" style="OLC"> <paragraph id="H117FE0A0409645C69B327294C69524CF"><enum>(4)</enum><header>Reduced rates for undergraduate subsidized loans</header><text display-inline="yes-display-inline">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:</text> <subparagraph commented="no" id="H5485A64F8969421A9B2961175FFA1379"><enum>(A)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HD0A48865D7BF490B81705D5EE6B5A88C"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HEFF26B9F3CC540669B83A3117504A35B"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HBB02FF92DFEC4A4DAF31C87DABB7BBFE"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H40E923E7E7F445D8A8A68CA307A055D"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="HAD152817E845466B893EB33F6C118663"><enum>(F)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HB1CFDBB38D8C43C6A286640094C33D0"><enum>(2)</enum><header>Special allowance cross reference</header><text>Section 438(b)(2)(I)(ii)(II) (20 U.S.C. 1086(b)(2)(I)(ii)(II)) is amended by striking <quote>section 427A(l)(1)</quote> and inserting <quote>section 427A(l)(1) or (l)(4)</quote>.</text> </paragraph></subsection><subsection id="H53BB1D7B6E124CAD95DEAEBAB075CE19"><enum>(b)</enum><header>Direct Loan interest rates</header><text display-inline="yes-display-inline">Section 455(b)(7) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(b)(7)</external-xref>) is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H716D4F6AE77E4420BE38EF7C4E2563A" style="OLC"> <subparagraph id="H6C95509D1A904D0192A5A4360783849"><enum>(D)</enum><header>Reduced rates for undergraduate FDSL</header><text>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:</text> <clause id="H59BA4836DD6D41AFA6D56979ED8837FC"><enum>(i)</enum><text display-inline="yes-display-inline">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.</text> </clause><clause id="H9B4026694D584FB8004273AF6585B500"><enum>(ii)</enum><text display-inline="yes-display-inline">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.</text> </clause><clause id="H8DADC67D02304C789195885977A1A463"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text> </clause><clause id="HF0A511D5D127409BBD6B40D78D14DFD1"><enum>(iv)</enum><text display-inline="yes-display-inline">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.</text> </clause><clause id="H20DEA6BB443E4F32AD9647356E6FA1EA"><enum>(v)</enum><text display-inline="yes-display-inline">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.</text> </clause><clause id="HDA8210457CF54721A67D171802300189"><enum>(vi)</enum><text display-inline="yes-display-inline">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.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H39BC62058E874FEAB3CB112505626CE9"><enum>112.</enum><header>Increases in loan limits</header> <subsection id="H1298614BD0EB4DF88E00F5EACF49D07E"><enum>(a)</enum><header>Increase in third and subsequent year limits</header> <paragraph id="H75F1B55CAF74415DAD4E45FD15197D99"><enum>(1)</enum><header>Federal insurance limits</header><text display-inline="yes-display-inline">Section 425(a)(1)(A)(iii) (<external-xref legal-doc="usc" parsable-cite="usc/20/1075">20 U.S.C. 1075(a)(1)(A)(iii)</external-xref>) is amended by striking <quote>$5,500</quote> and inserting <quote>$7,500</quote>.</text> </paragraph><paragraph display-inline="no-display-inline" id="HA88A83EC9D084F97BACED8FBA8131257"><enum>(2)</enum><header>Guaranty limits</header><text display-inline="yes-display-inline">Section 428(b)(1)(A)(iii)(I) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(b)(1)(A)(iii)(I)</external-xref>) is amended by striking <quote>$5,500</quote> and inserting <quote>$7,500</quote>.</text> </paragraph></subsection><subsection id="H9E956405F844499AB82DBC9425FD151D"><enum>(b)</enum><header>Increase in aggregate limits</header> <paragraph id="HD9B82473711E482BAEBFF36D96F09E64"><enum>(1)</enum><header>Federal insurance limits</header><text display-inline="yes-display-inline">Section 425(a)(2)(A) (<external-xref legal-doc="usc" parsable-cite="usc/20/1075">20 U.S.C. 1075(a)(2)(A)(i)</external-xref>) is amended—</text> <subparagraph id="H1DB194ABE281442888652154859B61D3"><enum>(A)</enum><text>in clause (i), by striking <quote>$23,000</quote> and inserting <quote>$30,500</quote>; and</text> </subparagraph><subparagraph id="H3EED69D9EE2A43B5A8C89EF9BC38F125"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (ii), by striking <quote>$65,500</quote> and inserting <quote>$73,000</quote>.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H09C13D20A34F48F4A20066A41F766F89"><enum>(2)</enum><header>Guaranty limits</header><text display-inline="yes-display-inline">Section 428(b)(1)(B) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(b)(1)(A)(iii)(I)</external-xref>) is amended—</text> <subparagraph id="H0D9BFEF1A68A4B4894D5FE580066A5F0"><enum>(A)</enum><text>in clause (i), by striking <quote>$23,000</quote> and inserting <quote>$30,500</quote>; and</text> </subparagraph><subparagraph id="H3B178324B39F42EB84F2C45F25FCA59E"><enum>(B)</enum><text>in clause (ii), by striking <quote>$65,500</quote> and inserting <quote>$73,000</quote>.</text> </subparagraph></paragraph></subsection><subsection id="H7BC136FC2AFA420C833317BA3B77E0E7"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall be effective July 1, 2008.</text> </subsection></section><section display-inline="no-display-inline" id="H9E1B1093E21846969317233D3CBAD9D6" section-type="subsequent-section"><enum>113.</enum><header>Reduction of lender special allowance payments</header><text display-inline="no-display-inline">Section 438(b)(2)(I) (20 U.S.C. 1087–1(b)(2)(I)) is amended—</text> <paragraph id="HB35DEDDB5A784FC899337E529282C6F2"><enum>(1)</enum><text>in clause (i), by striking <quote>clauses (ii), (iii), and (iv)</quote> and inserting <quote>the following clauses</quote>; and</text> </paragraph><paragraph id="H64F7CA07DD40411F92C2AC4FE865E3FC"><enum>(2)</enum><text>by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H7E0054BB1B8A4D2A967D3EFCE0591208" style="OLC"> <clause id="HF1D374788DF846B3954FD6718B8B0066"><enum>(vi)</enum><header>Reduction for loans on or after October 1, 2007</header><text>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:</text> <subclause id="H4D005D8451044011A039663633CD7104"><enum>(I)</enum><header>In general and PLUS loans</header><text display-inline="yes-display-inline">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.</text> </subclause><subclause id="HEA8A09835FAD43F18D42B026BCB1BCC4"><enum>(II)</enum><header>In school and grace period</header><text display-inline="yes-display-inline">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.</text> </subclause><subclause id="HA032DBAE05AB4470B390FAE78F626C75"><enum>(III)</enum><header>Consolidation loans</header><text display-inline="yes-display-inline">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</text> </subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="HCC1106205BD94734A0C32DF4BD7F27F3" section-type="subsequent-section"><enum>114.</enum><header>Elimination of exceptional performer status for lenders</header> <subsection id="H39DF8B4DA85E449E9728FB620083001B"><enum>(a)</enum><header>Elimination of Status</header><text display-inline="yes-display-inline">Part B of title IV (20 U.S.C. 1071 et seq.) is amended by striking section 428I (20 U.S.C. 1078–9).</text> </subsection><subsection id="HE506F7B559CA4715A9158EAFDB2203B2"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Part B of title IV is further amended—</text> <paragraph id="H42044402C7E54D69A4DC005BB2F437D"><enum>(1)</enum><text>in section 428(c)(1) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(c)(1)</external-xref>)—</text> <subparagraph id="H3D2DD00217144BA1A67E1D78B93DD36C"><enum>(A)</enum><text>by striking subparagraph (D); and</text> </subparagraph><subparagraph id="H89227DBE916B4791884876ED227500A5"><enum>(B)</enum><text>by redesignating subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively; and</text> </subparagraph></paragraph><paragraph id="H0C1BA60FCBE5456984B31D43EF7BAD17"><enum>(2)</enum><text>in section 438(b)(5) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087-1">20 U.S.C. 1087–1(b)(5)</external-xref>), by striking the matter following subparagraph (B).</text> </paragraph></subsection><subsection id="HB9B9ADD454AE4F63B62CCE9538AEE411"><enum>(c)</enum><header>Effective date</header><text>The amendments made by subsections (a) and (b) shall take effect on October 1, 2007.</text> </subsection></section><section id="H530E44613B1F44C9B66D9B00A570362D"><enum>115.</enum><header>Reduction of lender insurance percentage</header> <subsection id="H3A5513BE5A8C448FA9006F21F18C1914"><enum>(a)</enum><header>Amendment</header><text>Subparagraph (G) of section 428(b)(1) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(b)(1)(G)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HEDBB7F13D3FF437EBF64B512E67393F6" style="OLC"> <subparagraph id="HDE2C54A7B292471B9BC54E38F739AB57"><enum>(G)</enum><text>insures 95 percent of the unpaid principal of loans insured under the program, except that—</text> <clause commented="no" id="HD91EDE642D9B48DB9E8072D5FB619B7E"><enum>(i)</enum><text>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</text> </clause><clause id="H80F9A7C2BE0347F0B0C78976345CA594"><enum>(ii)</enum><text display-inline="yes-display-inline">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);</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H859673F63493497599FF110052DEA67C"><enum>(b)</enum><header>Effective date</header><text>The amendment made by <internal-xref idref="H3A5513BE5A8C448FA9006F21F18C1914" legis-path="115.(a)">subsection (a)</internal-xref> shall take effect with respect to loans made on or after October 1, 2007.</text> </subsection></section><section id="H3149FC3C5EE8442BA7F5BEDEE3D7C897"><enum>116.</enum><header>Guaranty agency collection retention</header><text display-inline="no-display-inline">Clause (ii) of section 428(c)(6)(A) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(c)(6)(A)(ii)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HEC4F9AC7FF374025A90600A4CDEF6054" style="OLC"> <clause id="H50A7E7F3171A4DD6A8E0A79FB133363C"><enum>(ii)</enum><text>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 <quote>16 percent</quote> for <quote>23 percent</quote>.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HE56FB7B416C44AC5B9C1A485A31BF38C"><enum>117.</enum><header>Unit costs for account maintenance fees</header><text display-inline="no-display-inline">Section 458(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087h">20 U.S.C. 1087h(b)</external-xref>) is amended—</text> <paragraph id="H81B3836E40274E3A862E2B0364A16388"><enum>(1)</enum><text>by striking <quote>Account</quote> and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HCED5C68C5ED048998CF1669CDEB9D76D" style="OLC"> <paragraph id="H5280E4F78D374AA4B3C22D2600C8189E"><enum>(1)</enum><header>For fiscal years 2006 and 2007</header><text>For fiscal years 2006 and 2007, account</text> </paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="HAF5E502070F141C5B5EBE9C4D77F40E0"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H59756ED5BBE54EFC8878D0A1DB268339" style="OLC"> <paragraph id="HBDB94A67F2D24EF89FEF5C6D2E521BD"><enum>(2)</enum><header>For fiscal year 2008 and succeeding fiscal years</header> <subparagraph id="HA22180B4E676427C8C1899663C888BF1"><enum>(A)</enum><header>Unit cost basis</header><text>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 <internal-xref idref="H902F2E12A4A848DA93EE89244E26834E" legis-path="(2)(B)">subparagraph (B) of this paragraph</internal-xref>.</text> </subparagraph><subparagraph id="H902F2E12A4A848DA93EE89244E26834E"><enum>(B)</enum><header>Determinations</header><text>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—</text> <clause id="HC0A16D8EE9AD462AB47722F3EAE675B0"><enum>(i)</enum><text>establish the per-loan cost basis amount by—</text> <subclause id="H25D5C1D4DCB5495EA4F21E88934CF92B"><enum>(I)</enum><text>dividing the total amount of account maintenance fees paid under subsection (a)(3) in fiscal year 2006, by</text> </subclause><subclause id="H2A539980A4E3433CA609585700BA92A3"><enum>(II)</enum><text>the number of loans under part B that were outstanding in that fiscal year; and</text> </subclause></clause><clause id="H6457BFFA94264FD7861E868B512756B2"><enum>(ii)</enum><text display-inline="yes-display-inline">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—</text> <subclause id="H3F18C88A0A184A6E9DF2B7AC701DD56"><enum>(I)</enum><text>the amount determined under <internal-xref idref="HC0A16D8EE9AD462AB47722F3EAE675B0" legis-path="(2)(B)(i)">clause (i)</internal-xref>; increased by</text> </subclause><subclause id="H711768B88AAA4D0E8E310090106F0720"><enum>(II)</enum><text>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.</text> </subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section display-inline="no-display-inline" id="H6CB3713210CB4CF000DBA543551264C2" section-type="subsequent-section"><enum>118.</enum><header>Increased loan fees from lenders</header><text display-inline="no-display-inline">Paragraph (2) of section 438(d) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087-1">20 U.S.C. 1087–1(d)(2)</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H551E2B1332934669A39E33FC4374B2EF" style="OLC"> <paragraph id="HDDF0527D608047F899A94FFD87358C73"><enum>(2)</enum><header>Amount of loan fees</header> <subparagraph id="HCA9807172E50497FA162B2C0BA8EEA"><enum>(A)</enum><header>Amount</header><text>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—</text> <clause id="H9FF9102E113D4A70007608BE25C04850"><enum>(i)</enum><text display-inline="yes-display-inline">except as provided in <internal-xref idref="H0CD9941423E14416BA7331C8ADDF8432" legis-path="(2)(A)(ii)">clauses (ii)</internal-xref> and <internal-xref idref="H0F0F1C91B86C41FDA519C5AD12D7B6B5" legis-path="(2)(A)(iii)">(iii)</internal-xref>, 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;</text> </clause><clause id="H0CD9941423E14416BA7331C8ADDF8432"><enum>(ii)</enum><text display-inline="yes-display-inline">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 <internal-xref idref="H24FB5B5C96A247A3B7F09E5EEE22BFCD" legis-path="(2)(B)">subparagraph (B)</internal-xref>; and</text> </clause><clause id="H0F0F1C91B86C41FDA519C5AD12D7B6B5"><enum>(iii)</enum><text>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 <internal-xref idref="H24FB5B5C96A247A3B7F09E5EEE22BFCD" legis-path="(2)(B)">subparagraph (B)</internal-xref>.</text> </clause></subparagraph><subparagraph id="H24FB5B5C96A247A3B7F09E5EEE22BFCD"><enum>(B)</enum><header>Designation of small lenders</header><text display-inline="yes-display-inline">In determining which holders of eligible loans qualify as small lenders for purposes of <internal-xref idref="H0F0F1C91B86C41FDA519C5AD12D7B6B5" legis-path="(2)(A)(iii)">subparagraph (A)(iii)</internal-xref>, the Secretary shall, using the most recently available data with respect to the total principal amount of eligible loans held by holders—</text> <clause id="H1F0F71480A32442D809C16F579FD02D2"><enum>(i)</enum><text display-inline="yes-display-inline">rank all holders (combined with their affiliated holders) of eligible loans in descending order by total principal amount of eligible loans held;</text> </clause><clause id="H9E74C46D9C5D4CEB94D5889B43C0A5F5"><enum>(ii)</enum><text display-inline="yes-display-inline">calculate the total principal amount of eligible loans held by all holders; and</text> </clause><clause id="HCDC4A4543F394E6697B433A3C7C61877"><enum>(iii)</enum><text display-inline="yes-display-inline">identify the subset of consecutively ranked holders under <internal-xref idref="H1F0F71480A32442D809C16F579FD02D2" legis-path="(2)(B)(i)">clause (i)</internal-xref>, 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 <internal-xref idref="H9E74C46D9C5D4CEB94D5889B43C0A5F5" legis-path="(2)(B)(ii)">clause (ii)</internal-xref>, 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</text> </clause><clause id="H63049D7E290F4AC09B787B900014449D"><enum>(iv)</enum><text>designate as small lenders any holder identified as a member of the subset under <internal-xref idref="HCDC4A4543F394E6697B433A3C7C61877" legis-path="(2)(B)(iii)">clause (iii)</internal-xref>.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" id="HE84797C8CC7B4CF2B61FB410B0E1C9FB"><enum>119.</enum><header>Student loan information</header><text display-inline="no-display-inline">Section 428(k) (20 U.S.C. 1078(k)) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HFFC4B25CBF304811A905B3CF7800CA8B" style="OLC"> <paragraph commented="no" id="HC5F0B34F00F8437B98F7C921C066DCDE"><enum>(4)</enum><header>Student loan information</header> <subparagraph commented="no" id="HDB746EB1D5554EE4A674F961AC081D00"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H07DCBF2997EF4C569C7134D4B4AD004F"><enum>(B)</enum><text>An institution and any third-party servicer obtaining access to information under <internal-xref idref="HDB746EB1D5554EE4A674F961AC081D00" legis-path="(4)(A)">subparagraph (A)</internal-xref> shall safeguard that information in order to prevent potential abuses of that information, including identity theft.</text> </subparagraph><subparagraph commented="no" id="H05B2FDE8AFE340B5A0A42130F9F557B2"><enum>(C)</enum><text>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.</text> </subparagraph><subparagraph commented="no" id="H6B9F8739D63A4CC98595C4D637C87D7C"><enum>(D)</enum><text>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.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section></part><part id="H8EC0E382BD7343F3BBFEF4F2AC545CC"><enum>C</enum><header>Rewarding Service in Repayment</header> <section display-inline="no-display-inline" id="HAF9BD2B464BE42C6A529BA426D16D22" section-type="subsequent-section"><enum>141.</enum><header>Loan forgiveness for service in areas of national need</header><text display-inline="no-display-inline">Section 428K (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-11">20 U.S.C. 1078–11</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H8D9DF6986AC4429ABBAB2E5788C8C51C" style="OLC"> <section id="H2544704A4ABD4DC580B643957B004E73"><enum>428K.</enum><header>Loan forgiveness for service in areas of national need</header> <subsection id="H9C39450732CA491598008D69BAD763EB"><enum>(a)</enum><header>Program authorized</header> <paragraph id="H8E972B6D6910455B863E8197AF353188"><enum>(1)</enum><header>Loan forgiveness authorized</header><text display-inline="yes-display-inline">The Secretary shall forgive, in accordance with this section, the student loan obligation of a borrower in the amount specified in <internal-xref idref="H65CB0FAE713947FB87E8E96CD842F1E" legis-path="428K.(c)">subsection (c)</internal-xref>, for any new borrower after the date of enactment of the <short-title>College Cost Reduction Act of 2007</short-title>, who—</text> <subparagraph id="H3CDF562668F14C27BB13E4175D00A7D7"><enum>(A)</enum><text display-inline="yes-display-inline">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 <internal-xref idref="H5A0FC9C91E954321953D3C00A2876555" legis-path="428K.(b)">subsection (b)</internal-xref>; and</text> </subparagraph><subparagraph id="H0C11468762214A38B0E815D91281193D"><enum>(B)</enum><text>is not in default on a loan for which the borrower seeks forgiveness.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H8B5934BE340A49EE96EE53360E9A199"><enum>(2)</enum><header>Method of loan forgiveness</header><text>To provide loan forgiveness under <internal-xref idref="H8E972B6D6910455B863E8197AF353188" legis-path="428K.(a)(1)">paragraph (1)</internal-xref>, the Secretary is authorized to carry out a program—</text> <subparagraph id="H2C83370114C94123AAAE2869D7E5A8AF"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph id="H9954C91EC78F4B23002054746C9527A1"><enum>(B)</enum><text display-inline="yes-display-inline">to cancel a qualified loan amount for a loan made under part D of this title.</text> </subparagraph></paragraph><paragraph id="HF3684D904E1E4A5E8553BC5CBFF1F6DE"><enum>(3)</enum><header>Regulations</header><text>The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.</text> </paragraph></subsection><subsection id="H5A0FC9C91E954321953D3C00A2876555"><enum>(b)</enum><header>Areas of national need</header><text>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:</text> <paragraph id="H6CE382DBA6024C43B018C5DE5EFFE13"><enum>(1)</enum><header>Early childhood educators</header><text>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.</text> </paragraph><paragraph id="H54AA4002BBAB43E1BA00FEC6A7F2D65"><enum>(2)</enum><header>Nurses</header><text>An individual who is employed—</text> <subparagraph id="H06E808C35A564FF380998BC481990068"><enum>(A)</enum><text>as a nurse in a clinical setting; or</text> </subparagraph><subparagraph id="H50489D2FC2F047F0931791DF4FA677C"><enum>(B)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/296">42 U.S.C. 296</external-xref>)).</text> </subparagraph></paragraph><paragraph id="H2AB7FC9BC2C2404280BD3758D38EFA"><enum>(3)</enum><header>Foreign language specialists</header><text display-inline="yes-display-inline">An individual who has obtained a baccalaureate degree in a critical foreign language and is employed—</text> <subparagraph id="H15511FABE039463A942229FC752F39C3"><enum>(A)</enum><text>in an elementary or secondary school as a teacher of a critical foreign language; or</text> </subparagraph><subparagraph id="HBE2A3373E68C405EBDDD9BFD34FD2FBF"><enum>(B)</enum><text>in an agency of the United States Government in a position that regularly requires the use of such critical foreign language.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H79B3C9980EA5426FB91EC658BD97917C"><enum>(4)</enum><header>Librarians</header><text>An individual who is employed as a librarian in—</text> <subparagraph id="H8AA797C0B4844175BEABF61001BBD25"><enum>(A)</enum><text>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 <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name>; or</text> </subparagraph><subparagraph id="HA1562EA5B8F84042AAEEB9D4609CCCA1"><enum>(B)</enum><text>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 <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name>, 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 <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name> exceeds 30 percent of the total enrollment of that school.</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H65D33C9935694BAE80C0A900AA27369F"><enum>(5)</enum><header>Highly Qualified Teachers: Bilingual Education and Low-income Communities</header><text>An individual who—</text> <subparagraph id="H8CC7B294327C40DA9FD47817827F2EE1"><enum>(A)</enum><text display-inline="yes-display-inline">is highly qualified as such term is defined in section 9101 of the Elementary and Secondary Education Act of 1965; and</text> </subparagraph><subparagraph id="H9A885262F89F43FF9E328853778EF4F6"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H5CAB5C0134CC4169B57C5833F4E3B059"><enum>(i)</enum><text>is employed as a full-time teacher of bilingual education; or</text> </clause><clause id="HA5596E33E47F491E960000DA9FCF00B" indent="up1"><enum>(ii)</enum><text>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.</text> </clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H004F2145BAA645AB9935BC94DBA00C2"><enum>(6)</enum><header>Child Welfare Workers</header><text display-inline="yes-display-inline">An individual who—</text> <subparagraph id="HE004AE2F51D040A1A6A44049F800D908"><enum>(A)</enum><text>has obtained a degree in social work or a related field with a focus on serving children and families; and</text> </subparagraph><subparagraph id="H697467B5CE2243A0AB1E925FB00023A4"><enum>(B)</enum><text>is employed in public or private child welfare services.</text> </subparagraph></paragraph><paragraph id="H6BA72679830648ACBF9604D60758A37D"><enum>(7)</enum><header>Speech-language pathologists</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="H6BA11668AA524913AF2471A7E466003F"><enum>(8)</enum><header>National service</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/12511">42 U.S.C. 12511</external-xref>)).</text> </paragraph><paragraph commented="no" id="H445544122DB045A1A7BEF6A6105345FD"><enum>(9)</enum><header>Public sector employees</header><text display-inline="yes-display-inline">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).</text> </paragraph></subsection><subsection id="H65CB0FAE713947FB87E8E96CD842F1E"><enum>(c)</enum><header>Qualified loan amount</header><text>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 <internal-xref idref="H8E972B6D6910455B863E8197AF353188" legis-path="428K.(a)(1)">subsection (a)(1)</internal-xref>.</text> </subsection><subsection id="H54A16C6D4ECF467FAA5505CB4B928E76"><enum>(d)</enum><header>Construction</header><text display-inline="yes-display-inline">Nothing in this section shall be construed to authorize the refunding of any repayment of a loan.</text> </subsection><subsection id="H3E66626B7C9F46C694AE06267DE30183"><enum>(e)</enum><header>Segal Americorps Education Award Recipients</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/12601">42 U.S.C. 12601 et seq.</external-xref>) 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.</text> </subsection><subsection id="HA33171D763454B3CACCC0471C2C5E3F"><enum>(f)</enum><header>National service award recipients</header><text>A student borrower who receives the maximum education award under subtitle D of title I of the National and Community Service Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12601">42 U.S.C. 12601 et seq.</external-xref>) 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.</text> </subsection><subsection id="HDB0B841C789640A296FB30987EE2453C"><enum>(g)</enum><header>Ineligibility for double benefits</header><text>No borrower may receive a reduction of loan obligations under both this section and section 428J or 460.</text> </subsection><subsection id="H7B9C8FA30A43403E00C50561963DBD11"><enum>(h)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HC84BA8829B914037AD1ED4EBBABCE1C3"><enum>(1)</enum><header>Critical foreign language</header><text display-inline="yes-display-inline">The term <term>critical foreign language</term> 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.</text> </paragraph><paragraph id="H694746E86D4643A3A0A13137D73DFFBE"><enum>(2)</enum><header>Early childhood educator</header><text>The term <term>early childhood educator</term> 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.</text> </paragraph><paragraph commented="no" id="H19775C0933274903804C552F009E005B"><enum>(3)</enum><header>Eligible preschool program</header><text>The term <term>eligible preschool program</term> 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—</text> <subparagraph commented="no" id="H83F138A48E0242D8B200FBB6B8E54FC2"><enum>(A)</enum><text>a public or private school that may be supported, sponsored, supervised, or administered by a local educational agency;</text> </subparagraph><subparagraph commented="no" id="H9A5AE11C025947699D247BFF2FF91FFB"><enum>(B)</enum><text>a Head Start agency serving as a grantee designated under the Head Start Act (42 U.S.C. 9831 et seq.);</text> </subparagraph><subparagraph commented="no" id="H50F4B679EAD34C569C05D5D4F5C98FDE"><enum>(C)</enum><text>a nonprofit or community based organization; or</text> </subparagraph><subparagraph commented="no" id="H7D93F712044D4FF59456EFB9172E396B"><enum>(D)</enum><text>a child care program, including a home.</text> </subparagraph></paragraph><paragraph commented="no" id="HBB48CF01185F4A809C9F65007CDACFC0"><enum>(4)</enum><header>Eligible early childhood education program</header><text display-inline="yes-display-inline">The term <term>eligible early childhood education program</term> means—</text> <subparagraph commented="no" id="HC0B40423A3584DAE82F984EEB162B330"><enum>(A)</enum><text>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—</text> <clause commented="no" id="H5554EA3A2B7A44A99CD6ADBD260053A0"><enum>(i)</enum><text>is licensed or regulated by the State; and</text> </clause><clause commented="no" id="H554FBFFC64984507B2EFA5005027AA1F"><enum>(ii)</enum><text>serves 2 or more unrelated children who are not old enough to attend kindergarten;</text> </clause></subparagraph><subparagraph commented="no" id="H09ADDE6AED1D431BBDDACB7D00948768"><enum>(B)</enum><text display-inline="yes-display-inline">a Head Start Program carried out under the Head Start Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9831">42 U.S.C. 9831 et seq.</external-xref>); or</text> </subparagraph><subparagraph commented="no" id="HFEDB1C571D354561B04946F765BBA273"><enum>(C)</enum><text>an Early Head Start Program carried out under section 645A of the Head Start Act (42 U.S.C. 9840a).</text> </subparagraph></paragraph><paragraph id="H5E19D1C302754076B05DC53EFB075686"><enum>(5)</enum><header>Low-income community</header><text>In this subsection, the term <term>low-income community</term> means a community in which 70 percent of households earn less than 85 percent of the State median household income.</text> </paragraph><paragraph id="H568E50808BF74B8CB921A236BA54F0D"><enum>(6)</enum><header>Nurse</header><text>The term <term>nurse</term> means a nurse who meets all of the following:</text> <subparagraph id="H5F93FF2D9C79488B96FA7135FABF065"><enum>(A)</enum><text>The nurse graduated from—</text> <clause id="H712EEBE611B8433C9F006905DAAEEA21"><enum>(i)</enum><text>an accredited school of nursing (as those terms are defined in section 801 of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/296">42 U.S.C. 296</external-xref>));</text> </clause><clause id="HAB989931B23443229412008C5718E988"><enum>(ii)</enum><text>a nursing center; or</text> </clause><clause id="H8F012C97D8994C3100D134C349070003"><enum>(iii)</enum><text>an academic health center that provides nurse training.</text> </clause></subparagraph><subparagraph id="HFE5383B32ED345238F9EABB16211A8A5"><enum>(B)</enum><text>The nurse holds a valid and unrestricted license to practice nursing in the State in which the nurse practices in a clinical setting.</text> </subparagraph><subparagraph id="H51C785654E054E8081BEAC3C8EED19CB"><enum>(C)</enum><text>The nurse holds one or more of the following:</text> <clause id="HBEE4905097C7457D813CABB7794526D"><enum>(i)</enum><text>A graduate degree in nursing, or an equivalent degree.</text> </clause><clause id="H02FEA0C0ABD54126ABEB3F5146A9CC4B"><enum>(ii)</enum><text>A nursing degree from a collegiate school of nursing (as defined in section 801 of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/296">42 U.S.C. 296</external-xref>)).</text> </clause><clause id="HB432E6590A044A4AAC2DBDCC788B15B9"><enum>(iii)</enum><text>A nursing degree from an associate degree school of nursing (as defined in section 801 of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/296">42 U.S.C. 296</external-xref>)).</text> </clause><clause id="H99481D54F5604BF5B4AA30594700B0E0"><enum>(iv)</enum><text>A nursing degree from a diploma school of nursing (as defined in section 801 of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/296">42 U.S.C. 296</external-xref>)).</text> </clause></subparagraph></paragraph><paragraph id="H7A560C6B6BFE48E1BAA000C1A76FD5B"><enum>(7)</enum><header>Speech-language pathologist</header><text display-inline="yes-display-inline">The term <term>speech-language pathologist</term> means a speech-language pathologist who meets all of the following:</text> <subparagraph id="HC3079C04AF9A466A88B56638E9DC8E87"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H5A3705BD86524807B15644D872B99327"><enum>(B)</enum><text>the speech-language pathologist meets or exceeds the qualifications as defined in section 1861(ll) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C. 1395x</external-xref>).</text> </subparagraph></paragraph></subsection><subsection commented="no" id="HAE88042D216A4C378F9C370592846C1B"><enum>(i)</enum><header>Program funding</header><text>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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" display-inline="no-display-inline" id="H99B68FF00DE1495DA291662B1E3C2165" section-type="subsequent-section"><enum>142.</enum><header display-inline="yes-display-inline">Income contingent repayment for public sector employees</header><text display-inline="no-display-inline">Section 455(e) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H72ADCDBA7F334BF1A900172BBD24CB2E" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="HE39F33B44F27414FB1FCBB5EABD75C91"><enum>(7)</enum><header display-inline="yes-display-inline">Repayment plan for public sector employees</header> <subparagraph commented="no" display-inline="no-display-inline" id="H5CA42D5826B64EBCBF0083F312853800"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall forgive the balance due on any loan made under this part or section 428C(b)(5) for a borrower—</text> <clause commented="no" display-inline="no-display-inline" id="HE309FDFFD30E4143ABC1991700CE0009"><enum>(i)</enum><text display-inline="yes-display-inline">who has made 120 payments on such loan pursuant to income contingent repayment; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="H0007DCCBE6FD40AF804E02BA4B072D76"><enum>(ii)</enum><text display-inline="yes-display-inline">who is employed, and was employed for the 10-year period in which the borrower made the 120 payments described in <internal-xref idref="HE309FDFFD30E4143ABC1991700CE0009" legis-path="(7)(A)(i)">clause (i)</internal-xref>, in a public sector job.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE0BD161BED30471A9600B583374EDDB8"><enum>(B)</enum><header display-inline="yes-display-inline">Public sector job</header><text display-inline="yes-display-inline">In this paragraph, the term <term>public sector job</term> 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).</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7C087488436346BDB2D01010025DCFF1"><enum>(8)</enum><header display-inline="yes-display-inline">Return to standard repayment</header><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section commented="no" display-inline="no-display-inline" id="H7D82C9DAFEE843898C0014AC43AF0043" section-type="subsequent-section"><enum>143.</enum><header display-inline="yes-display-inline">Income-based repayment</header> <subsection commented="no" display-inline="no-display-inline" id="HA0DFC75C9A5C42B99F114C5014E95560"><enum>(a)</enum><header display-inline="yes-display-inline">Amendment</header><text display-inline="yes-display-inline">Part G of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088 et seq.</external-xref>) is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H06AFF9740F2544D9A0DB19504316D182" style="OLC"> <section commented="no" display-inline="no-display-inline" id="HE1BCB59678E9473EB04203827D7C161C" section-type="subsequent-section"><enum>493C.</enum><header display-inline="yes-display-inline">Income-based repayment</header> <subsection commented="no" display-inline="no-display-inline" id="H2AD44E8ED6AE48B998D09737C1B2E0A4"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section:</text> <paragraph commented="no" display-inline="no-display-inline" id="H7D00E19FE1C2433C936C64F85559F3B1"><enum>(1)</enum><header display-inline="yes-display-inline">Excepted PLUS loan</header><text display-inline="yes-display-inline">The term <term>excepted PLUS loan</term> means a loan under section 428B, or a Federal Direct PLUS Loan, that is made, insured, or guaranteed on behalf of a dependent student.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC44F00FEB1A543C191D9783255313D9B"><enum>(2)</enum><header display-inline="yes-display-inline">Partial financial hardship</header><text display-inline="yes-display-inline">The term <term>partial financial hardship</term> means the amount by which—</text> <subparagraph id="HF60203E72DD744E3B5ADCA5360AE8E4B"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H36F06851E0FF4981AEBF00EF8DFA59B9"><enum>(B)</enum><text>15 percent of the result obtained by calculating the amount by which—</text> <clause commented="no" display-inline="no-display-inline" id="H37C2C05D70254F54B8002D234F76BE2C"><enum>(i)</enum><text display-inline="yes-display-inline">the borrower's, and the borrower’s spouse’s (if applicable), adjusted gross income; exceeds</text> </clause><clause commented="no" display-inline="no-display-inline" id="HD498383E82E6417E8831A990A497B0B9"><enum>(ii)</enum><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/9902">42 U.S.C. 9902(2)</external-xref>).</text> </clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB19C224C9F074D19BFAA9EE61924F730"><enum>(b)</enum><header display-inline="yes-display-inline">Income-based repayment program authorized</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this Act, the Secretary shall carry out a program under which—</text> <paragraph commented="no" display-inline="no-display-inline" id="H40801987EB0B4A0DA2EF1DA6E10ACAB"><enum>(1)</enum><text display-inline="yes-display-inline">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 <internal-xref idref="H36F06851E0FF4981AEBF00EF8DFA59B9" legis-path="493C.(a)(2)(B)">subsection (a)(2)(B)</internal-xref> divided by 12;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDB35AC62ADF041818B7D6BB5F7567F68"><enum>(2)</enum><text display-inline="yes-display-inline">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;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6A9CFC7943B443EC95BD7C9CF800B3F4"><enum>(3)</enum><text display-inline="yes-display-inline">any interest due and not paid under paragraph (2) shall be capitalized;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5E38D19D884488697B99ECC00C70276"><enum>(4)</enum><text display-inline="yes-display-inline">any principal due and not paid under paragraph (2) shall be deferred;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H930A23F10D3243C68BB9089BAEB481C4"><enum>(5)</enum><text display-inline="yes-display-inline">the amount of time the borrower makes monthly payments under paragraph (1) may exceed 10 years;</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H86F307C167E544379B30C2AD8ECBBBF4"><enum>(6)</enum><text display-inline="yes-display-inline">if the borrower no longer has a partial financial hardship or no longer wishes to continue the election under this subsection, then—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H6C242AD5C14940EDAB1E65D2AA049BD4"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9EC03856808F41359B8B401E95A3E12B"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of time the borrower is permitted to repay such loans may exceed 10 years;</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H09C3D2075F9A4803AC9D12638886CC59"><enum>(7)</enum><text display-inline="yes-display-inline">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—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HDFFF264750444CF4B4F2AA005D5D384D"><enum>(A)</enum><text display-inline="yes-display-inline">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</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5EFA03FB616040D8B94DBC5027D65083"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id7D9964DC820C4D84956C54004C67E5BB"><enum>(i)</enum><text display-inline="yes-display-inline">makes the election under this subsection; and</text> </clause><clause commented="no" display-inline="no-display-inline" id="H54578AAD034A47B0A24090A8D6CAA4D" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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:</text> <subclause commented="no" display-inline="no-display-inline" id="H8681815AD8A940C3007F7BB4DCFD7DC6"><enum>(I)</enum><text display-inline="yes-display-inline">Has made reduced monthly payments under paragraph (1).</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="HEA4D8B2368F6435FAB9045D7813D5E79"><enum>(II)</enum><text display-inline="yes-display-inline">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.</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="H68CD805933FB453286E133D9F2F16C4F"><enum>(III)</enum><text display-inline="yes-display-inline">Has made payments under a standard repayment plan under section 428(b)(9)(A)(i) or 455(d)(1)(A).</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="HDE1D76CD6E124EAEBCF32B36C544C025"><enum>(IV)</enum><text display-inline="yes-display-inline">Has made payments under an income contingent repayment plan under section 455(d)(1)(D); and</text> </subclause></clause></subparagraph></paragraph><paragraph id="H5A2731DDB0424A15BE963617BE009924"><enum>(8)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H6E3BC791F8DB48CBA6DBA15BB02C8000"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming ICR amendment</header><text display-inline="yes-display-inline">Section 455(d)(1)(D) (20 U.S.C. 1087e(d)(1)(D)) is amended by inserting <quote>made on behalf of a dependent student</quote> after <quote>PLUS loan</quote>.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H675793290A8A4E8A89F123888C3ECC27" section-type="subsequent-section"><enum>144.</enum><header display-inline="yes-display-inline">Definition of economic hardship</header><text display-inline="no-display-inline">Section 435(o) (20 U.S.C. 1085(o)) is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H4B76A265700D4C349817BC8600E981B7"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H6EB4FB4AB7F441C696F13D5444D000C1"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)(ii), by striking <quote>100 percent of the poverty line for a family of 2</quote> and inserting <quote>150 percent of the poverty line applicable to the borrower's family size</quote>;</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H85E7A3E162954372A4AFCAAAADDF036"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (B); and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2389B9E3D02F4686AC3E00BFB7EC24C"><enum>(C)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (C) as subparagraph (B); and</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA28CB78A938848F0871F446F618DDF3"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by striking <quote>(1)(C)</quote> and inserting <quote>(1)(B)</quote>.</text> </paragraph></section><section commented="no" display-inline="no-display-inline" id="HC4C47EE747934E6E81C4B070923C32EF" section-type="subsequent-section"><enum>145.</enum><header display-inline="yes-display-inline">Deferrals</header> <subsection commented="no" display-inline="no-display-inline" id="HC9DAF26948CC4D1AA334A3D2D4C27091"><enum>(a)</enum><header display-inline="yes-display-inline">FISL</header><text display-inline="yes-display-inline">Section 427(a)(2)(C)(iii) (20 U.S.C. 1077(a)(2)(C)(iii)) is amended by striking <quote>not in excess of 3 years</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H85674E4C80AE42D497C1CED6129EAF00"><enum>(b)</enum><header display-inline="yes-display-inline">Interest subsidies</header><text display-inline="yes-display-inline">Section 428(b)(1)(M)(iv) (20 U.S.C. 1078(b)(1)(M)(iv)) is amended by striking <quote>not in excess of 3 years</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HA097AAD405FD482B8293C57293FD2CE3"><enum>(c)</enum><header display-inline="yes-display-inline">Direct loans</header><text display-inline="yes-display-inline">Section 455(f)(2)(D) (20 U.S.C. 1087e(f)(2)(D)) is amended by striking <quote>not in excess of 3 years</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HCA7868538B7D4ECE0052E78C094C923B"><enum>(d)</enum><header display-inline="yes-display-inline">Perkins</header><text display-inline="yes-display-inline">Section 464(c)(2)(A)(iv) (20 U.S.C. 1087dd(c)(2)(A)(iv)) is amended by striking <quote>not in excess of 3 years</quote>.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H76D5C4C4133D4CD9BD154885B3F93F4" section-type="subsequent-section"><enum>146.</enum><header display-inline="yes-display-inline">Maximum repayment period</header> <subsection commented="no" display-inline="no-display-inline" id="H76F5141A02374869B16569881224BB8D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 455(e) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e(e)</external-xref>) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H57BF4A2FD7744F14B7D6131C92C404FD" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="HCD62F8E015F04D09ACBC8CA8C403E44E"><enum>(9)</enum><header display-inline="yes-display-inline">Maximum repayment period</header><text display-inline="yes-display-inline">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—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H1356BA2546B84B3AB858CA8EF42E527"><enum>(A)</enum><text display-inline="yes-display-inline">is not in default on any loan that is included in the income contingent repayment plan; and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E043529295E4A7BB0FFE5D68FA0717"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H45933347F70245BF854F595C1F14FEEB"><enum>(i)</enum><text display-inline="yes-display-inline">is in deferment due to an economic hardship described in section 435(o);</text> </clause><clause commented="no" display-inline="no-display-inline" id="HF84831DC0DA44429979F0096DAEF8B53" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">makes monthly payments under paragraph (1) or (6) of section 493C(b); or</text> </clause><clause commented="no" display-inline="no-display-inline" id="H26F3E5EE9DC44B66BC1B4CE8B451625" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">makes payments under a standard repayment plan described in section 428(b)(9)(A)(i) or subsection (d)(1)(A).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HBEAE5635BD7F4D1BB85CB82E4D95CA4F"><enum>(b)</enum><header display-inline="yes-display-inline">Technical correction</header><text display-inline="yes-display-inline">Section 455(d)(1)(C) (20 U.S.C. 1087e(d)(1)(C)) is amended by striking <quote>428(b)(9)(A)(v)</quote> and inserting <quote>428(b)(9)(A)(iv)</quote>.</text> </subsection></section></part><enum>II</enum><header>Reducing the Cost of College</header> <section id="HE56DA57DF317447CB826533D08295707"><enum>201.</enum><header>State commitment to affordable college education</header><text display-inline="no-display-inline">Title I is amended by inserting after section 131 (<external-xref legal-doc="usc" parsable-cite="usc/20/1015">20 U.S.C. 1015</external-xref>) the following new section:</text> <quoted-block id="HF12AB3E86E5B4C3CB03B64408E1CD230"> <section id="H8ED6BDC9BC3F40A882E87B0877B1F018"><enum>132.</enum><header>State commitment to affordable college education</header> <subsection id="H032A1E471A5B4777A479BA07188E30FC"><enum>(a)</enum><header>Maintenance of effort required</header><text>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.</text> </subsection><subsection commented="no" id="H7D6C2AD421764ED9814C17F7B1C6723D"><enum>(b)</enum><header>Withholding of all LEAP funds for violations</header><text display-inline="yes-display-inline">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.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H2FB04DE59EE14B47BB7500E765C5A208"><enum>202.</enum><header>Consumer information and public accountability in higher education</header><text display-inline="no-display-inline">Section 131 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1015">20 U.S.C. 1015</external-xref>) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H1E9D3E835BED42CEB5A79B8146EDAD6B" style="OLC"> <section id="H423962AF1D6641AA96477F4B4800E711"><enum>131.</enum><header>Consumer information and public accountability in higher education</header> <subsection id="HF60E63E935BC4554B8D612CF76476400"><enum>(a)</enum><header>College Opportunity On-Line (COOL) Website Re-Design Process</header><text>In carrying out this section, the Commissioner of Education Statistics—</text> <paragraph id="HCEE7F3485D704D37A6021B18C09E2C9B"><enum>(1)</enum><text>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;</text> </paragraph><paragraph id="HE060BFC0CD674055AE32D03C0434C000"><enum>(2)</enum><text>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—</text> <subparagraph id="H37D5EC52EA054C0592BA7900D3F44F14"><enum>(A)</enum><text>determine the relevance of particular data elements to prospective students, enrolled students, and families;</text> </subparagraph><subparagraph id="HA7A3A4CAC87B4100976669FD8007BDDB"><enum>(B)</enum><text>assess the cost-effectiveness of various ways in which institutions of higher education might produce relevant data;</text> </subparagraph><subparagraph id="HF283AF30FEC14EE3BF86C17C00E5DD71"><enum>(C)</enum><text>determine the general comparability of the data across institutions of higher education;</text> </subparagraph><subparagraph id="HA4CDC33FBC8E4BE8918000EAD9E1A2F9"><enum>(D)</enum><text>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</text> </subparagraph></paragraph><paragraph id="HBCAD7E5DE00240D19324D001FD50060"><enum>(3)</enum><text>shall ensure that the redesigned COOL website—</text> <subparagraph id="HDB9E85DC92014E1DBDB3F993F9E33048"><enum>(A)</enum><text>uses, to the extent practicable, data elements currently provided by institutions of higher education to the Secretary;</text> </subparagraph><subparagraph id="H28C37A5A0AAB4F1CAA5476503543DFE1"><enum>(B)</enum><text>includes clear and uniform information determined to be relevant to prospective students, enrolled students, and families;</text> </subparagraph><subparagraph id="HD2B671E8C1334CD69D4524B40041E59F"><enum>(C)</enum><text>provides comparable information, by ensuring that data are based on accepted criteria and common definitions;</text> </subparagraph><subparagraph id="H9D234941027743B293F088ACE5116DAD"><enum>(D)</enum><text>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 <internal-xref idref="HCEE7F3485D704D37A6021B18C09E2C9B" legis-path="131.(a)(1)">paragraph (1)</internal-xref> as being of greatest relevance to choosing an institution of higher education.</text> </subparagraph></paragraph></subsection><subsection id="H86ABD1932D884751BDC23DD1CF22988F"><enum>(b)</enum><header>Data Collection</header> <paragraph id="HEF5D3B8FE81E46808CE8DB73E76E69AC"><enum>(1)</enum><header>Data system</header><text>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.</text> </paragraph><paragraph id="HC5F88D34CA38494586173FEEBDC93E70"><enum>(2)</enum><header>College consumer profile</header><text>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 <short-title>College Cost Reduction Act of 2007</short-title>), from at least all institutions of higher education participating in programs under title IV the following information:</text> <subparagraph id="H5A7DF48327194CE69264CA73AEED591E"><enum>(A)</enum><text>The tuition and fees charged for a first-time, full-time, full-year undergraduate student.</text> </subparagraph><subparagraph id="HD44ED72939A84744B5AD11EBCDED4BB1"><enum>(B)</enum><text>The room and board charges for a first-time, full-time, full-year undergraduate student.</text> </subparagraph><subparagraph id="HB5BA02C64C2E464BA6BE64E0BC489FC9"><enum>(C)</enum><text>The price of attendance for a first-time, full-time, full-year undergraduate student, consistent with the provisions of section 472.</text> </subparagraph><subparagraph id="H553449C056D344A98D9254E2D7C9DF"><enum>(D)</enum><text>The average amount of financial assistance received by a first-year, full-time, full-year undergraduate student, including—</text> <clause id="H269469E677964DBF98C851BC9CD455E0"><enum>(i)</enum><text>each type of assistance or benefits described in 428(a)(2)(C)(ii);</text> </clause><clause id="H2D2D768DEB54459A93E45D912F941C1B"><enum>(ii)</enum><text>institutional and other assistance; and</text> </clause><clause id="HC14D3E3D650E4CC6004440C1316D1BF5"><enum>(iii)</enum><text>Federal loans under parts B, D, and E of title IV.</text> </clause></subparagraph><subparagraph id="H1871ED83B1734A708C6FB37EF61192C1"><enum>(E)</enum><text>The number of first-time, full-time, full-year undergraduate students receiving financial assistance described in each clause of <internal-xref idref="H553449C056D344A98D9254E2D7C9DF" legis-path="131.(b)(2)(D)">subparagraph (D)</internal-xref>.</text> </subparagraph><subparagraph id="HB62EA359EF0549CF80BD7105E4D66B50"><enum>(F)</enum><text>The institutional instructional expenditure per full-time equivalent student.</text> </subparagraph><subparagraph id="H95C385F6AD8841A68954D8297DAC16F8"><enum>(G)</enum><text>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.</text> </subparagraph><subparagraph id="HB41400D9387B460600784546A6485110"><enum>(H)</enum><text>Faculty-to-student ratios.</text> </subparagraph><subparagraph id="H10F42609D6634A5FB646B3215856271B"><enum>(I)</enum><text>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.</text> </subparagraph><subparagraph id="H23F6CCE6D1A7467B9973949766E315FD"><enum>(J)</enum><text>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.</text> </subparagraph><subparagraph id="H0EC22A72CD31428E872DE6F23169787"><enum>(K)</enum><text>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.</text> </subparagraph><subparagraph id="H07D434C6B06E454BBEADBDE4F7522734"><enum>(L)</enum><text display-inline="yes-display-inline">The college affordability information elements specified in <internal-xref idref="H6058454531CF44D3A3D600EF00AC3B5D" legis-path="131.(c)">subsection (c)</internal-xref>.</text> </subparagraph><subparagraph id="H8009AA7A628B4D65A6BDE1BC9524989"><enum>(M)</enum><text>Any additional information that the Secretary may require.</text> </subparagraph></paragraph></subsection><subsection id="H6058454531CF44D3A3D600EF00AC3B5D"><enum>(c)</enum><header>College affordability information elements</header><text>The college affordability information elements required by <internal-xref idref="H07D434C6B06E454BBEADBDE4F7522734" legis-path="131.(b)(2)(L)">subsection (b)(2)(L)</internal-xref> shall include, for each institution submitting data—</text> <paragraph id="HC25CED6FEA0A4147A3003B107F5D161E"><enum>(1)</enum><text>the sticker price of the institution for the 3 most recent academic years;</text> </paragraph><paragraph id="H5B335D42A0624586A9A15300CC5001B9"><enum>(2)</enum><text>the net tuition price of the institution for the 3 most recent academic years;</text> </paragraph><paragraph id="H65E366FE7BFB471D981D2D3FC04052C9"><enum>(3)</enum><text>the percentage change in both the sticker price and the net tuition price over the 3-year time period that is being reported;</text> </paragraph><paragraph id="H3ABAAAE818474A39BA59007E5E70C38"><enum>(4)</enum><text>the percentage change in the CPI over the same 3-year time period; and</text> </paragraph><paragraph id="H9DAF192A4BE044F18E99A8DE005127AE"><enum>(5)</enum><text>whether the institution has been placed on affordability alert status as required by <internal-xref idref="H73EA81853029420BB6F314F92D1C8C26" legis-path="131.(d)(3)">subsection (d)(3)</internal-xref>.</text> </paragraph></subsection><subsection id="H9FA8DFE9E362473F8479D48BD5A65168"><enum>(d)</enum><header>Outcomes and Actions</header> <paragraph id="HE53D0C2AAAB6470FBC7CF37CD4CE7917"><enum>(1)</enum><header>Response from institution</header><text display-inline="yes-display-inline">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—</text> <subparagraph id="HE6A5A764804D4707A97F4EE5C09DD557"><enum>(A)</enum><text>a description of the factors contributing to the increase in the institution’s costs and in the tuition and fees charged to students; and</text> </subparagraph><subparagraph id="H6F200DCBF78E449F8E63AAB35125158D"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HAE17103A6E7E4DB2A649C4A6717CE6A3"><enum>(2)</enum><header>Quality-efficiency task forces</header> <subparagraph id="HC16CE70553244CC0957245116F50A87"><enum>(A)</enum><header>Required</header><text>Each institution subject to <internal-xref idref="HE53D0C2AAAB6470FBC7CF37CD4CE7917" legis-path="131.(d)(1)">paragraph (1)</internal-xref> that has a percentage change in its sticker price that is in the highest 5 percent of all institutions subject to <internal-xref idref="HE53D0C2AAAB6470FBC7CF37CD4CE7917" legis-path="131.(d)(1)">paragraph (1)</internal-xref> shall establish a quality-efficiency task force to review the operations of such institution.</text> </subparagraph><subparagraph id="HD11E2A478DB94B81A331B88005F7134"><enum>(B)</enum><header>Membership</header><text>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.</text> </subparagraph><subparagraph id="HB9B905A649CD45849700D5E7676FE000"><enum>(C)</enum><header>Functions</header><text>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.</text> </subparagraph><subparagraph id="HEAAA562229F041BC8ECD38DBB3DEC653"><enum>(D)</enum><header>Report</header><text>Not later than one year after a quality-efficiency task force is established pursuant to <internal-xref idref="HC16CE70553244CC0957245116F50A87" legis-path="131.(d)(2)(A)">subparagraph (A)</internal-xref>, 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.</text> </subparagraph></paragraph><paragraph id="H73EA81853029420BB6F314F92D1C8C26"><enum>(3)</enum><header>Consequences for 2-year continuation of failure</header><text display-inline="yes-display-inline">If the Secretary determines that an institution that is subject to <internal-xref idref="HE53D0C2AAAB6470FBC7CF37CD4CE7917" legis-path="131.(d)(1)">paragraph (1)</internal-xref>) 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 <internal-xref idref="HE53D0C2AAAB6470FBC7CF37CD4CE7917" legis-path="131.(d)(1)">paragraph (1)</internal-xref>, the Secretary shall place the institution on affordability alert status.</text> </paragraph><paragraph id="H3E2EEA67E38E42129537326700B339AB"><enum>(4)</enum><header>Exemptions</header><text display-inline="yes-display-inline">Notwithstanding <internal-xref idref="H73EA81853029420BB6F314F92D1C8C26" legis-path="131.(d)(3)">paragraph (3)</internal-xref>, an institution shall not be placed on affordability alert status if, for any 3-year interval for which sticker prices are computed under <internal-xref idref="HE53D0C2AAAB6470FBC7CF37CD4CE7917" legis-path="131.(d)(1)">paragraph (1)</internal-xref>—</text> <subparagraph id="H3793546CB01F4CDD92BD96D6804B88AC"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to the class of institutions described in <internal-xref idref="H1DCB67DD43F24E04004300D05FAB7B7B" legis-path="131.(d)(6)">paragraph (6)</internal-xref> 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</text> </subparagraph><subparagraph id="H2145D57063AE43D5BBDEA2C1CE04706"><enum>(B)</enum><text display-inline="yes-display-inline">the institution has a percentage change in its sticker price computed under <internal-xref idref="HE53D0C2AAAB6470FBC7CF37CD4CE7917" legis-path="131.(d)(1)">paragraph (1)</internal-xref> 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.</text> </subparagraph></paragraph><paragraph id="HF3F893112996435A9270FA521E3F05F"><enum>(5)</enum><header>Information to state agencies</header><text>Any institution that reports under <internal-xref idref="H6F200DCBF78E449F8E63AAB35125158D" legis-path="131.(d)(1)(B)">paragraph (1)(B)</internal-xref> 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.</text> </paragraph><paragraph id="H1DCB67DD43F24E04004300D05FAB7B7B"><enum>(6)</enum><header>Classes of institutions</header><text>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.</text> </paragraph><paragraph id="H11EA37B226D8433981A66561CFF8A3BC"><enum>(7)</enum><header>Data rejection</header><text>Nothing in this subsection shall be construed as allowing the Secretary to reject the data submitted by an individual institution of higher education.</text> </paragraph></subsection><subsection id="HC19FC308B93848368B1C7C1DA7162ED7"><enum>(e)</enum><header>Information to the Public</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="HF86668A4D10B467EB6353FDF091CE236"><enum>(f)</enum><header>Fines</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="H49CA70DCAD534E22830237E1664BBB3C"><enum>(g)</enum><header>Regulations</header><text>The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.</text> </subsection><subsection id="HF8BEDF2EC266490C8DC1C163E550AB89"><enum>(h)</enum><header>Definitions</header><text>For the purposes of this section:</text> <paragraph id="H6F1774BF29A74E098B583BEF49A3AF88"><enum>(1)</enum><header>Net tuition price</header><text>The term <term>net tuition price</term> 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.</text> </paragraph><paragraph id="H094245FE45F248019BDD67AAB0467872"><enum>(2)</enum><header>Sticker price</header><text>The term <term>sticker price</term> 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.</text> </paragraph><paragraph id="H40C9CC94637C4493A314D33E488B1270"><enum>(3)</enum><header>CPI</header><text display-inline="yes-display-inline">The term <term>CPI</term> means the Consumer Price Index-All Urban Consumers (Current Series).</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section display-inline="no-display-inline" id="H6FE17A81AD1C4506AB3CDF046FFF88C" section-type="subsequent-section"><enum>203.</enum><header>Incentives and rewards for low tuition</header><text display-inline="no-display-inline">Subpart 1 of part A of title IV is amended by inserting after section 401A (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-1">20 U.S.C. 1070a–1</external-xref>) the following new section:</text> <quoted-block id="H4728075E026F4F339433FD8FB7FD58BC"> <section id="HCC856B95538A4EB88479D7EB47648787"><enum>401B.</enum><header>Incentives and rewards for low tuition</header> <subsection id="HB3D6CB77A5634816A03D308C003EB19"><enum>(a)</enum><header>Rewards for low tuition</header><text>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.</text> </subsection><subsection id="HFEE8B2D17EA746F78C3C8D041B5E795D"><enum>(b)</enum><header>Rewards for guaranteed tuition</header> <paragraph id="H7BFAA31824E4437A836594686DE9F0B3"><enum>(1)</enum><header>Bonus</header><text>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.</text> </paragraph><paragraph id="HA438E25663A6438CB4892CA305B49EE2"><enum>(2)</enum><header>4-year institutions</header><text>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—</text> <subparagraph id="H95822062EA3E4509ABDB1914BF170500"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H687D3D4B13F54D25A7CB2D89EA78FB66"><enum>(B)</enum><text>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).</text> </subparagraph></paragraph><paragraph id="HABDD2101F678455C93B813E91BF86081"><enum>(3)</enum><header>Less-than 4-year institutions</header><text>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—</text> <subparagraph id="H61B4A87834414144B3211E150061BABD"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H1C9ED034E1FC40DDA98FC3BAF8B221B"><enum>(B)</enum><text>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).</text> </subparagraph></paragraph></subsection><subsection id="HADFADDFAF5A54A7895C6046DF4168BD6"><enum>(c)</enum><header>Maintaining affordable tuition</header><text>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:</text> <paragraph id="H93EEC0F703384885A12271CA90617911"><enum>(1)</enum><text>a detailed report on the exact causes for the net tuition price increase that outlines revenues and expenditures; and</text> </paragraph><paragraph id="H4AD949CA19EC4C7786527B9681504300"><enum>(2)</enum><text>cost containment strategies to lower net tuition prices.</text> </paragraph></subsection><subsection id="H7B930BC39FCD4460B4966501D030A489"><enum>(d)</enum><header>Definitions</header> <paragraph display-inline="no-display-inline" id="H8AFA27ECB81B44C195F4329FFC279F8"><enum>(1)</enum><header>Net tuition price</header><text>The term <term>net tuition price</term> has the same meaning as provided in section 131(k).</text> </paragraph><paragraph commented="no" id="HB0433A2160E84FDFB94FDA3090C0E496"><enum>(2)</enum><header>Higher education price index</header><text>The term <term>higher education price index</term> 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.</text> </paragraph></subsection><subsection id="H8BD1714BD31543A1821B04B1BD6E00F7"><enum>(e)</enum><header>Funding</header><text>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.</text> </subsection><subsection id="HEB664C9C153343C8B7053F97A7A16500"><enum>(f)</enum><header>Sunset</header><text>The authority to carry out this section shall expire at the end of fiscal year 2012.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H670968BAB7094DF88F309C9E35E2DAF3"><enum>204.</enum><header>Cooperative education rewards for institutions that restrain tuition increases</header><text display-inline="no-display-inline">The <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C. 1101 et seq.) is amended by adding at the end the following title:</text> <quoted-block act-name="Higher" id="H133770AE446444419CE5B976DC0956AF"> <title id="H6C9DDA66C53E4104AD00E02BA5753E21"><enum>VIII</enum><header>Cooperative education rewards for institutions that restrain tuition increases</header> <section id="HDC604C76F8CD4C3FAA2E52C517313453"><enum>801.</enum><header>Eligible institutions</header> <subsection id="H14798708975D462A8018A7B0086C867"><enum>(a)</enum><header>Eligible institutions</header><text>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—</text> <paragraph id="HBD0EBDFEBA6B40039B545E89E33DE93"><enum>(1)</enum><text>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</text> </paragraph><paragraph id="H15417A42F78A4C098200B119FA5F00BC"><enum>(2)</enum><text>for such academic year, provides the guarantee required by paragraph (2) or (3) of section 401A(b).</text> </paragraph></subsection><subsection id="H8C0AB4BD135A466C89619700276D385D"><enum>(b)</enum><header>Definitions</header> <paragraph id="HEFC8DA536CF34724BFECF9D54D1F2541"><enum>(1)</enum><header>Cooperative education</header><text>For the purpose of this title the term <term>cooperative education</term> 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.</text> </paragraph><paragraph display-inline="no-display-inline" id="HCC561E39E03F4E2E84029DFEBF58DF53"><enum>(2)</enum><header>Calculation of index</header><text>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.</text> </paragraph><paragraph id="H4D92D30F26D04B38B3009579B124C35E"><enum>(3)</enum><header>Net tuition price</header><text>The term <term>net tuition price</term> 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.</text> </paragraph><paragraph id="H78C821E35E524ED68C7F252B44E086A4"><enum>(4)</enum><header>Tuition</header><text>The term <term>tuition</term> 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.</text> </paragraph></subsection></section><section id="H069B498F9F6A484D85DD15E668C085FB"><enum>802.</enum><header>Authorization of appropriations; reservations</header> <subsection commented="no" id="HB8D096FC0CB249AF978DE39947C45D7B"><enum>(a)</enum><header>Appropriations</header><text>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.</text> </subsection><subsection id="H230E8947B4CB4DC98E5FC794A7814F84"><enum>(b)</enum><header>Reservations</header><text>Of the amount appropriated for each such fiscal year—</text> <paragraph id="HB3751AC846244469AE818F50E6E3819E"><enum>(1)</enum><text>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;</text> </paragraph><paragraph id="H4202D6D1386F42C7B4E87B60DF625CD5"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="HD155EE01839A473597F96FC5B5ACA822"><enum>(3)</enum><text>not to exceed 11 percent shall be available for demonstration projects under paragraph (1) of section 804(a);</text> </paragraph><paragraph id="HFF6285E5C5C44857AA26F5D9B0FE4C86"><enum>(4)</enum><text>not to exceed 11 percent shall be available for training and resource centers under paragraph (2) of section 804(a); and</text> </paragraph><paragraph id="HE8605FFB5B2D4063983977B96C9CCFF4"><enum>(5)</enum><text>not to exceed 3 percent shall be available for research under paragraph (3) of section 804(a).</text> </paragraph></subsection><subsection id="HE7BB1F5F5D2B4CF4A501129DE503DB06"><enum>(c)</enum><header>Availability of appropriations</header><text>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.</text> </subsection><subsection id="HF28E8DFA2CF243C1A5E5BF400EC06A0"><enum>(d)</enum><header>Sunset</header><text>The authority to carry out this title shall expire at the end of fiscal year 2012.</text> </subsection></section><section id="HCD7274DB11C146B7BE582498C3420200"><enum>803.</enum><header>Grants for cooperative education</header> <subsection id="HF8A2120FEBD64F6B92EF74C4D0864638"><enum>(a)</enum><header>Grants authorized</header> <paragraph id="H1A76AB17AFEB47BBACA57CBAAC4302F9"><enum>(1)</enum><header>In general</header><text>The Secretary is authorized—</text> <subparagraph id="HD720B2894E5C4DC7807741D9E73ED460"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H88B7B8F9FC5A42C8B4EBC3D8C63B00C7"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HD205294AF21D4758A689A10392DC2101"><enum>(2)</enum><header>Program requirement</header><text>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.</text> </paragraph><paragraph id="H2F5AA615ADAB45218DCB515F7EE89E1"><enum>(3)</enum><header>Amount of grants</header> <subparagraph id="H95F4F6D18FC145B4BC4DD178BAD9FBEE"><enum>(A)</enum><text>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.</text> </subparagraph><subparagraph id="H0B6F007F0AE549D997E3AFCB0417E1D"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H5B1D66A8E0CC4DD3928CC0B29C9842D0"><enum>(i)</enum><text>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.</text> </clause><clause id="H3BD76250A51B4C5394C34EC63B697D60" indent="up1"><enum>(ii)</enum><text>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.</text> </clause><clause id="H33DC9B0A977B48D6B1E143A268684984" indent="up1"><enum>(iii)</enum><text>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.</text> </clause></subparagraph></paragraph><paragraph id="HDC64741004884800B924C6C60357CBE6"><enum>(4)</enum><header>Limitation</header><text>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.</text> </paragraph><paragraph id="H47E6E1BC52214C0499C316B733DDAF1C"><enum>(5)</enum><header>Uses</header><text>Grants under paragraph (1)(B) shall be used exclusively—</text> <subparagraph id="HD54849A9D3C5403BB8699893009B7BF"><enum>(A)</enum><text>to expand the quality and participation of a cooperative education program;</text> </subparagraph><subparagraph id="H4BC40653945E4750AABE976BF5F32000"><enum>(B)</enum><text>for outreach in new curricular areas; and</text> </subparagraph><subparagraph id="H53B60E396629440B833EF1D4637DE9BB"><enum>(C)</enum><text>for outreach to potential participants including underrepresented and nontraditional populations.</text> </subparagraph></paragraph></subsection><subsection id="HDC4FB521B6A94E5100ABBF5FE21C6F5B"><enum>(b)</enum><header>Applications</header><text>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—</text> <paragraph id="H12186D02169A4E8AB32EBB78FF67D5D1"><enum>(1)</enum><text>set forth the program or activities for which a grant is authorized under this section;</text> </paragraph><paragraph id="HB113E1BB5D64485D00A49038D9F24D93"><enum>(2)</enum><text>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;</text> </paragraph><paragraph id="H3744DAC50612439DB4479E1656962B3E"><enum>(3)</enum><text>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;</text> </paragraph><paragraph id="H1722AFA6B50F4D4690C20122D4E5C2B8"><enum>(4)</enum><text>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;</text> </paragraph><paragraph id="HC823FFF3A997438AAA4E10AF1DECE139"><enum>(5)</enum><text>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;</text> </paragraph><paragraph id="HA5891ECBA3874D55007F6DA7EE26447F"><enum>(6)</enum><text>provide that the applicant will—</text> <subparagraph commented="no" id="HF9FBCA93DA134AA6A1AB321D2CE580B2"><enum>(A)</enum><text>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—</text> <clause commented="no" id="H894270C5C36A4E77AA42A7D4B9ECC67"><enum>(i)</enum><text>the number of unduplicated student applicants in the cooperative education program;</text> </clause><clause commented="no" id="HB4F5676BB73B41229CEB1782A5CB1DC6"><enum>(ii)</enum><text>the number of unduplicated students placed in cooperative education jobs;</text> </clause><clause commented="no" id="H1D8B1769270B40C3B54E9FF7B6B5F0A2"><enum>(iii)</enum><text>the number of employers who have hired cooperative education students;</text> </clause><clause commented="no" id="HC72808DD0A6F4619AC46D6B3DFC29ED5"><enum>(iv)</enum><text>the average income for students derived from working in cooperative education jobs; and</text> </clause><clause commented="no" id="H2792572CB4BE41209F4881BF8C255800"><enum>(v)</enum><text>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</text> </clause></subparagraph><subparagraph id="H115B5A9D4A2943FEBED69959E655BDB7"><enum>(B)</enum><text>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;</text> </subparagraph></paragraph><paragraph id="HD4E4ADF06A2A4E69BEA1FE8808E4547"><enum>(7)</enum><text>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;</text> </paragraph><paragraph id="H549910AD7EBB4DFDB6DC91D57D73989E"><enum>(8)</enum><text>describe the extent to which the institution is committed to extending cooperative education on an institution-wide basis for all students who can benefit;</text> </paragraph><paragraph id="H7F5EB942DD2249F9A6D67901ECCC98E"><enum>(9)</enum><text>describe the plans that the applicant will carry out to evaluate the applicant’s cooperative education program at the end of the grant period;</text> </paragraph><paragraph id="H5EBD17ED859A42108E025EF800A86090"><enum>(10)</enum><text>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;</text> </paragraph><paragraph id="H21E00A13A9584E019652EBF11CC8B461"><enum>(11)</enum><text>demonstrate a commitment to serving all underserved populations; and</text> </paragraph><paragraph id="H157878CCEDD94EBDB44EBD1E93F69B56"><enum>(12)</enum><text>include such other information as is essential to carry out the provisions of this title.</text> </paragraph></subsection><subsection id="H0BD776A6A2C04B809B95A33FE17EFF3"><enum>(c)</enum><header>Duration of grants; Federal share</header> <paragraph id="HC0EBBACEC97940F3ABC2B688D0CDA7F3"><enum>(1)</enum><header>Duration of grants</header><text>No individual institution of higher education may receive, individually or as a participant in a combination of such institutions—</text> <subparagraph id="HE9B1B53EFBD9408EA5DB00CCE27BB45C"><enum>(A)</enum><text>a grant pursuant to subsection (a)(1)(A) for more than 5 fiscal years; or</text> </subparagraph><subparagraph id="H9C4DBA46EF3B4335A8E9447AD2E0ED"><enum>(B)</enum><text>a grant pursuant to subsection (a)(1)(B) for more than 5 fiscal years.</text> </subparagraph></paragraph><paragraph id="H632D138484E74774B4C471BCFF1844AA"><enum>(2)</enum><header>Federal share</header><text>The Federal share of a grant under section 803(a)(1)(A) may not exceed—</text> <subparagraph id="H569F4FED13AB480FB0623FE5FF7627E6"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H92CF34213429462391338CED7E54F260"><enum>(B)</enum><text>70 percent of such cost in the second such year;</text> </subparagraph><subparagraph id="HBEF411866A8D40E60082DC204EE989F"><enum>(C)</enum><text>55 percent of such cost in the third such year;</text> </subparagraph><subparagraph id="H92EB0C5E4C4E42BB8361E25AB064F"><enum>(D)</enum><text>40 percent of such cost in the fourth such year; and</text> </subparagraph><subparagraph id="H6BB518AAB8D843148125976B6F8DF96F"><enum>(E)</enum><text>25 percent of such cost in the fifth such year.</text> </subparagraph></paragraph><paragraph id="H3F4271FDC3CF49858532EA500A770A0"><enum>(3)</enum><header>Special rule</header><text>Any provision of law to the contrary notwithstanding, the Secretary shall not waive the provisions of this subsection.</text> </paragraph></subsection><subsection id="H9B1002CB169B44CBAFAAB5A128F3FBA6"><enum>(d)</enum><header>Maintenance of effort</header><text>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.</text> </subsection></section><section id="H5D61699882854CF599E24B8194EDB3B5"><enum>804.</enum><header>Demonstration and innovation projects; training and resource centers; and research</header> <subsection id="HE0E7F21AE98E4FEE80C23926C239C5ED"><enum>(a)</enum><header>Authorization</header><text>The Secretary is authorized, in accordance with the provisions of this section, to make grants and enter into contracts for—</text> <paragraph id="H6BF7FDBD15E24A60AFD50071777783CF"><enum>(1)</enum><text>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);</text> </paragraph><paragraph id="H06A2F49829854A85B8A18C9FBE3B4B8"><enum>(2)</enum><text>the conduct of training and resource centers designed to—</text> <subparagraph id="HCD5991E4453A4716BD50ADA6301F83EA"><enum>(A)</enum><text>train personnel in the field of cooperative education;</text> </subparagraph><subparagraph id="H02FA7CD2C5EC47E5AB1DE943EEA74DB"><enum>(B)</enum><text>improve materials used in cooperative education programs if such improvement is conducted in conjunction with other activities described in this paragraph;</text> </subparagraph><subparagraph id="H02607AE49FB746CD9CFBE6D37432DB4"><enum>(C)</enum><text>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;</text> </subparagraph><subparagraph id="H01A181E58AFE43AAB09D0044ECD30558"><enum>(D)</enum><text>encourage model cooperative education programs which furnish education and training in occupations in which there is a national need;</text> </subparagraph><subparagraph id="H1186FEF4ABFB4D0588FFC069B6BAC71"><enum>(E)</enum><text>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</text> </subparagraph><subparagraph id="H8AB3653A6FDC439EA5C942A360DC7F04"><enum>(F)</enum><text>encourage model cooperative education programs in the fields of science and mathematics for women and minorities who are underrepresented in such fields</text> </subparagraph><continuation-text continuation-text-level="paragraph">from the amounts available in each fiscal year under section 802(b)(4); and</continuation-text></paragraph><paragraph id="H2C8891D509C443BBA9E1D5D82776C84"><enum>(3)</enum><text>the conduct of research relating to cooperative education, from the amounts available in each fiscal year under section 802(b)(5).</text> </paragraph></subsection><subsection id="HF0F8B1CFDB7B427A9652CCA918A74595"><enum>(b)</enum><header>Administrative provision</header> <paragraph id="HE219231248B844A2A2C37B2CC5F74C70"><enum>(1)</enum><header>In general</header><text>To carry out this section, the Secretary may—</text> <subparagraph id="H6F7373F27C26489EA1C2EE53E4F355BF"><enum>(A)</enum><text>make grants to or contracts with institutions of higher education, or combinations of such institutions; and</text> </subparagraph><subparagraph id="H77FDA73C64BC41C2A4FD86A36B451808"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H12C12F7D650E46D4B42BB8EE47CCC7D8"><enum>(2)</enum><header>Limitation</header> <subparagraph id="HBE030EF051E2454DA0F98BE9745CE821"><enum>(A)</enum><text>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).</text> </subparagraph><subparagraph id="H15DB4EBCD5CE4AFBAB048658D68C60D1"><enum>(B)</enum><text>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).</text> </subparagraph></paragraph></subsection><subsection id="H01EF9407117D4715A7D33D3DC653C6CA"><enum>(c)</enum><header>Supplement not supplant</header><text>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.</text> </subsection></section>. <enum>III</enum><header>Ensuring a Highly Qualified Teacher in Every Classroom</header> <part id="HDF1799B767CC41A6B710401BB8D2C66E"><enum>A</enum><header>TEACH Grants</header> <section display-inline="no-display-inline" id="HAEE3619D74354ABBB96D2F64C13129BE" section-type="subsequent-section"><enum>301.</enum><header>TEACH Grants</header><text display-inline="no-display-inline">Part A of title IV (20 U.S.C. 1070a et seq.) is amended by adding at the end the following new subpart:</text> <quoted-block display-inline="no-display-inline" id="H7AD5D157E19143BAA9D756691B52A8D2" style="OLC"> <subpart id="H726D8F9F78CF4D2EB823E53B6CEBDD6"><enum>9</enum><header>TEACH Grants</header> <section id="H58DEA3A974034BFD005E4B9E3C83108E"><enum>420L.</enum><header>Program established</header> <subsection id="H37A7EA37E0774DB5BCE9DC907CDFB147"><enum>(a)</enum><header>Program Authority</header> <paragraph id="HC22F5182B87E4A56BBEAA02E7B68D559"><enum>(1)</enum><header>Payments required</header><text>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 <internal-xref idref="HDB50DE8EC3304B28AD299D2954E5353D" legis-path="420M.">section 420M</internal-xref>, and who qualifies—</text> <subparagraph id="H524D19B3D8884C6C879F979548050971"><enum>(A)</enum><text>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</text> </subparagraph><subparagraph id="H5B418B59924D4EC79C00EA4986005208"><enum>(B)</enum><text display-inline="yes-display-inline">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 <internal-xref idref="H524D19B3D8884C6C879F979548050971" legis-path="420L.(a)(1)(A)">subparagraph (A)</internal-xref>) for each academic year during which that student so qualifies.</text> </subparagraph></paragraph><paragraph id="H83E93566FF1A4362ADF579B582D3F004"><enum>(2)</enum><header>Reference</header><text>Grants made under—</text> <subparagraph id="HA6FB0DEC1633452087007B23D5059CD"><enum>(A)</enum><text><internal-xref idref="H524D19B3D8884C6C879F979548050971" legis-path="420L.(a)(1)(A)">paragraph (1)(A)</internal-xref> shall be known as <quote>Teacher Education Assistance for College and Higher Education Grants</quote> or <quote>TEACH Grants</quote>; and</text> </subparagraph><subparagraph id="HA1AF25371446464C8E00FEF600337C99"><enum>(B)</enum><text display-inline="yes-display-inline"><internal-xref idref="H5B418B59924D4EC79C00EA4986005208" legis-path="420L.(a)(1)(B)">paragraph (1)(B)</internal-xref> shall be known as Bonus TEACH Grants.</text> </subparagraph></paragraph></subsection><subsection id="H70962788387C418500DED4001885A600"><enum>(b)</enum><header>Payment methodology</header> <paragraph id="H1B47BD8C3B9B411684B832FCE1749920"><enum>(1)</enum><header>Prepayment</header><text display-inline="yes-display-inline">Not less than 85 percent of any funds provided to an institution under <internal-xref idref="H37A7EA37E0774DB5BCE9DC907CDFB147" legis-path="420L.(a)">subsection (a)</internal-xref> 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.</text> </paragraph><paragraph id="H87C6D3A0D1744567BEDB35D56535C2C"><enum>(2)</enum><header>Direct payment</header><text>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 <internal-xref idref="H1B47BD8C3B9B411684B832FCE1749920" legis-path="420L.(b)(1)">paragraph (1)</internal-xref>.</text> </paragraph><paragraph id="HE353EE888F4E4E63B917BD8EBDB34624"><enum>(3)</enum><header>Distribution of grants to students</header><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><subsection id="H7BA2BBC3EA6147EB88A62D751BEC7E4"><enum>(c)</enum><header>Reductions in amount</header> <paragraph id="HEC60AD5F52EE4421A0AD151092CA07D4"><enum>(1)</enum><header>Part-time students</header><text>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.</text> </paragraph><paragraph id="H6C973B2E91854B4997E1B007E05253A4"><enum>(2)</enum><header>No exceeding cost</header><text>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.</text> </paragraph></subsection><subsection id="HFB4DEE6B18D142068BD8614C177800B3"><enum>(d)</enum><header>Period of eligibility for grants</header> <paragraph id="HCCE6B666940A4FC6AA2DB89BB2F72D23"><enum>(1)</enum><header>Undergraduate students</header><text>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—</text> <subparagraph id="H67B6875C09E54854B7B4FC6CDCE2B85"><enum>(A)</enum><text>any period during which the student is enrolled in a noncredit or remedial course of study as defined in <internal-xref idref="HC37D8A0563934A6C8FC6CDFEC158ECD6" legis-path="420L.(d)(3)">paragraph (3)</internal-xref> shall not be counted for the purpose of this paragraph; and</text> </subparagraph><subparagraph id="H981890C404464CA78E00CAF6B4365D6C"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="HE520C6580C2E45C69EE173EE2DCF8676"><enum>(2)</enum><header>Graduate students</header><text display-inline="yes-display-inline">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.</text> </paragraph><paragraph id="HC37D8A0563934A6C8FC6CDFEC158ECD6"><enum>(3)</enum><header>Remedial course; study abroad</header><text>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.</text> </paragraph></subsection></section><section id="HDB50DE8EC3304B28AD299D2954E5353D"><enum>420M.</enum><header>Eligibility; applications; selection</header> <subsection id="H41607514D7A344529179C34EEDFA7398"><enum>(a)</enum><header>Applications; demonstration of eligibility</header> <paragraph id="H7A6C3324F637425AA55C294800A4349D"><enum>(1)</enum><header>Filing required</header><text>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.</text> </paragraph><paragraph id="HF40E981338EC440F9D2187A65131F9EF"><enum>(2)</enum><header>Demonstration of TEACH Grant eligibility</header><text>Each application submitted under <internal-xref idref="H7A6C3324F637425AA55C294800A4349D" legis-path="420M.(a)(1)">paragraph (1)</internal-xref> for a TEACH Grant shall contain such information as is necessary to demonstrate that—</text> <subparagraph id="H91A802C195334D9581E652080028FA81"><enum>(A)</enum><text>if the applicant is an enrolled student—</text> <clause id="H4C4C0E4DFD7940C9AAB542F134C0194"><enum>(i)</enum><text>the student is an eligible student for purposes of section 484;</text> </clause><clause id="HD5E19090DAED42B1AF835C1EB5D10095"><enum>(ii)</enum><text>the student—</text> <subclause id="H61522A27D2084642845E351540AD23B8"><enum>(I)</enum><text>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</text> </subclause><subclause id="HE3B80EF455AA4D3796AA4D45CB9210F"><enum>(II)</enum><text>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</text> </subclause></clause><clause id="HC20E6AF9E1FB435E816272C084430066"><enum>(iii)</enum><text>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</text> </clause></subparagraph><subparagraph id="H40BD3FB10DF549FD9ED615D4DB43B637"><enum>(B)</enum><text display-inline="yes-display-inline">if the applicant is a current or prospective teacher applying for a grant to obtain a graduate degree—</text> <clause id="H80F176447C80427EAD73C9789795A142"><enum>(i)</enum><text>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</text> </clause><clause id="HBF9D18CE2AF1446384E74EC88C6C1292"><enum>(ii)</enum><text>the applicant is or was a teacher who is using high-quality alternative certification routes, such as Teach for America, to get certified.</text> </clause></subparagraph></paragraph><paragraph commented="no" id="H56F96F304D32409C96625DDA0087C0E0"><enum>(3)</enum><header>Demonstration of Bonus TEACH Grant eligibility</header><text>Each application submitted under <internal-xref idref="H7A6C3324F637425AA55C294800A4349D" legis-path="420M.(a)(1)">paragraph (1)</internal-xref> for a Bonus TEACH Grant shall contain such information as is necessary to demonstrate that—</text> <subparagraph commented="no" id="HB650280C49C64BEDAF1D016B442DDF4"><enum>(A)</enum><text>the applicant is eligible for, and has applied for, a TEACH Grant; and</text> </subparagraph><subparagraph commented="no" id="H32D1375DD93041CBAC2BC13B30FC2229"><enum>(B)</enum><text display-inline="yes-display-inline">the applicant is—</text> <clause id="HE3A09D16300B484E9667EBB0A9C24017"><enum>(i)</enum><text>a student pursuing an undergraduate degree in mathematics, science, or a science-related field; and</text> </clause><clause commented="no" id="H2205C22C078341ABB420FD20E450519C"><enum>(ii)</enum><text>a student enrolled in a qualified teacher preparation program, as defined in section 420N.</text> </clause></subparagraph></paragraph></subsection><subsection id="HAE6B07D1F1E54B54BF48CA9DB59C00E8"><enum>(b)</enum><header>Agreements To serve</header><text>Each application under <internal-xref idref="H41607514D7A344529179C34EEDFA7398" legis-path="420M.(a)">subsection (a)</internal-xref> shall contain or be accompanied by an agreement by the applicant that—</text> <paragraph id="HF22826A6A0224E19B27D9CAD85C400A0"><enum>(1)</enum><text display-inline="yes-display-inline">the applicant will—</text> <subparagraph id="HCF70DE8C29F245EC98682FC1EE209100"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="HF21203CEA1EA41DCBCD9A6BAAFD9DCC"><enum>(B)</enum><text>teach in a school described in section 465(a)(2)(A);</text> </subparagraph><subparagraph id="HD44A452331994DB79ED4BDF3C3A6A888"><enum>(C)</enum><text>with respect to an applicant for—</text> <clause id="H657A8BDD13854D1488F3919CFF03B13"><enum>(i)</enum><text>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</text> </clause><clause commented="no" id="HC263B879DFD14F7AB012A3920011FDA6"><enum>(ii)</enum><text display-inline="yes-display-inline">TEACH Grants and Bonus TEACH Grants, teach mathematics, science, or a science-related field;</text> </clause></subparagraph><subparagraph id="H50E32A15ABD9469294E000C7ED59C040"><enum>(D)</enum><text>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</text> </subparagraph><subparagraph id="H707E91BA85884899BBBE3B86C9F8507C"><enum>(E)</enum><text>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</text> </subparagraph></paragraph><paragraph id="HA97260EB817D4A27A3419C74D5836F1D"><enum>(2)</enum><text display-inline="yes-display-inline">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 <internal-xref idref="H4EDED407A7CE4B029149FBF17156C48" legis-path="420M.(c)">subsection (c)</internal-xref> and the regulations thereunder.</text> </paragraph></subsection><subsection id="H4EDED407A7CE4B029149FBF17156C48"><enum>(c)</enum><header>Repayment for failure To complete service</header><text display-inline="yes-display-inline">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 <internal-xref idref="HAE6B07D1F1E54B54BF48CA9DB59C00E8" legis-path="420M.(b)">subsection (b)</internal-xref>, 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.</text> </subsection></section><section id="HD8F049FB46DE44BF856400D78D9D8555"><enum>420N.</enum><header>Definitions</header><text display-inline="no-display-inline">For the purposes of this subpart:</text> <paragraph id="HEF07188A75F84904AFF1601687C1E477"><enum>(1)</enum><header>Eligible institution</header><text>The term <term>eligible institution</term> 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.</text> </paragraph><paragraph id="H30B593D915954D7E9EA200813DBFF33"><enum>(2)</enum><header>Qualified teacher preparation program</header><text display-inline="yes-display-inline">The term <term>qualified teacher preparation program</term> 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 <quote>teacher candidates</quote>) that—</text> <subparagraph commented="no" id="H05928BAF563442ECB08E4C003623F014"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph commented="no" id="H8294DAAF502A43558C9B60B6C4EACA67"><enum>(B)</enum><text display-inline="yes-display-inline">is implemented by an institution of higher education in partnership with high-need local educational agencies;</text> </subparagraph><subparagraph commented="no" id="HEF3C6B5AFB0F47169374547B1641BDEC"><enum>(C)</enum><text display-inline="yes-display-inline">offers a baccalaureate degree with a concurrent teacher certification to teacher candidates;</text> </subparagraph><subparagraph commented="no" id="HDD8AF51E90884A01BF1693001E10FEF4"><enum>(D)</enum><text display-inline="yes-display-inline">is implemented in coordination with the faculty of the education, sciences, and mathematics departments of the institution of higher education;</text> </subparagraph><subparagraph commented="no" id="H8C84E090134F45B38D210025BF598BB2"><enum>(E)</enum><text display-inline="yes-display-inline">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;</text> </subparagraph><subparagraph commented="no" id="H6EDC54CFBDDB49358365D239170069AA"><enum>(F)</enum><text display-inline="yes-display-inline">provides teacher candidates with—</text> <clause commented="no" id="HFE3EEC42F7254B93BBF6381CC82325DF"><enum>(i)</enum><text>support services, including mentoring by experienced teachers who have a demonstrated record of success in teaching underserved students;</text> </clause><clause commented="no" id="HC14917215934405AA68DDCE70BB4600"><enum>(ii)</enum><text>exposure to, and field experience in, the classroom within the first year of entering the qualified teacher preparation program; and</text> </clause><clause commented="no" id="H4471AC4B1F4E466C887BBE12BEEA713"><enum>(iii)</enum><text>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;</text> </clause></subparagraph><subparagraph commented="no" id="HE45284897F534E85B412FBF86F3EBD4E"><enum>(G)</enum><text>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;</text> </subparagraph><subparagraph commented="no" id="HFCF7695EFD7643929C870728AFA20063"><enum>(H)</enum><text display-inline="yes-display-inline">focuses on increasing the number of teachers in the science, technology fields, engineering, or mathematics disciplines; and</text> </subparagraph><subparagraph commented="no" id="HE35C4F58914A49C7B608880063C1D9F7"><enum>(I)</enum><text>encourages individuals from underrepresented populations to enter into the teaching profession.</text> </subparagraph></paragraph></section><section commented="no" id="H3BFD3A9C903E4223885B12191C495EFD"><enum>420O.</enum><header>Program period and funding</header><text display-inline="no-display-inline">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.</text> </section></subpart><after-quoted-block>.</after-quoted-block></quoted-block> </section></part><part id="HE1B4675F724E4E249063224B5C56D5C2"><enum>B</enum><header>Centers of Excellence</header> <section display-inline="no-display-inline" id="H545538ABD0284CF399DBE7C2D0F41084"><enum>311.</enum><header>Centers of excellence</header><text display-inline="no-display-inline">Title II (20 U.S.C. 1021 et seq.) is amended by adding at the end the following:</text> <quoted-block act-name="Higher" id="H57FE113FE50242B884E6CBBAC322A943"> <part id="H0589D67A182C42FBAB441E4339BA2BB9"><enum>C</enum><header>Centers of Excellence</header> <section id="H443B562CDC4E4B78B4D64E0926AB43D9"><enum>231.</enum><header>Definitions</header><text display-inline="no-display-inline">As used in this part:</text> <paragraph id="HA87681B0DC6040D7B929ACCCCBB37B14"><enum>(1)</enum><header>Eligible institution</header><text>The term <term>eligible institution</term> means—</text> <subparagraph id="H24D87968E73F43A1ABD98B08754CACA"><enum>(A)</enum><text>an institution of higher education that has a teacher preparation program that meets the requirements of section 203(b)(2) and that is—</text> <clause id="HB23A471225374D0200B066B5A74F2793"><enum>(i)</enum><text>a part B institution (as defined in section 322);</text> </clause><clause id="H47CCA958721C4F33A383F3EF2F784CAA"><enum>(ii)</enum><text>a Hispanic-serving institution (as defined in section 502);</text> </clause><clause id="HF003EA81737D4C5BB867D4EEE62F6F84"><enum>(iii)</enum><text>a Tribal College or University (as defined in section 316);</text> </clause><clause id="H6FEA50368EC84B05AF7182F630CE71B2"><enum>(iv)</enum><text>an Alaska Native-serving institution (as defined in section 317(b)); or</text> </clause><clause id="HD704553764B14AE4B3CC424211AE3C11"><enum>(v)</enum><text>a Native Hawaiian-serving institution (as defined in section 317(b));</text> </clause></subparagraph><subparagraph id="H5DA8A25019154BE88E3F7EA200EDC98D"><enum>(B)</enum><text>a consortium of institutions described in subparagraph (A); or</text> </subparagraph><subparagraph id="HFD268FD9655040519714365E7955E5B"><enum>(C)</enum><text>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).</text> </subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HF96C013B177F418D88EC774BF41464C9"><enum>(2)</enum><header>Highly qualified</header><text>The term <term>highly qualified</term> when used with respect to an individual means that the individual is highly qualified as determined under section 9101 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C. 7801</external-xref>) or section 602 of the Individuals with Disabilities Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1401">20 U.S.C. 1401</external-xref>).</text> </paragraph><paragraph id="H280CF26EC75B4EEF97C794C4AFBFA559"><enum>(3)</enum><header>Scientifically based reading research</header><text>The term <term>scientifically based reading research</term> has the meaning given such term in section 1208 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/6368">20 U.S.C. 6368</external-xref>).</text> </paragraph><paragraph id="H57AB7DBC1B664E728BDB452B83E7804F"><enum>(4)</enum><header>Scientifically based research</header><text>The term <term>scientifically based research</term> has the meaning given such term in section 9101 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C. 7801</external-xref>).</text> </paragraph></section><section id="HE0C1854EE0D24FEE9DE12CBC41FDDBED"><enum>232.</enum><header>Centers of excellence</header> <subsection id="HAB2569D3DB01420C9B697F02B4EB0008"><enum>(a)</enum><header>Program authorized</header><text>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.</text> </subsection><subsection id="HC72EA9542D3C45838EE0E310B567C7D5"><enum>(b)</enum><header>Use of funds</header><text>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:</text> <paragraph id="H3E9480C377874300B96D64C767AD5D1"><enum>(1)</enum><text>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—</text> <subparagraph id="H019C07892EF04E57889316BA1E5C9DD0"><enum>(A)</enum><text>retraining faculty; and</text> </subparagraph><subparagraph id="H28D018EC86774BEDA5C5705995D4DAC7"><enum>(B)</enum><text>designing (or redesigning) teacher preparation programs that—</text> <clause id="HA48DCAB1B3454AA094C4AD542E04A327"><enum>(i)</enum><text>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</text> </clause><clause id="H5B14127324E64FB9BE1023A9907F096B"><enum>(ii)</enum><text>promote strong teaching skills.</text> </clause></subparagraph></paragraph><paragraph id="HEFB09B43ACE94930A9A9692C7833EE9C"><enum>(2)</enum><text>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.</text> </paragraph><paragraph id="HA0786474660F4DC6BED5E09D12BC97A0"><enum>(3)</enum><text>Developing and implementing initiatives to promote retention of highly qualified teachers and principals, including minority teachers and principals, including programs that provide—</text> <subparagraph id="H2245BE2D807C48ECB64DD86FD4713BC"><enum>(A)</enum><text>teacher or principal mentoring from exemplary teachers or principals; or</text> </subparagraph><subparagraph id="HBE66C2CDB4DA40DAB76F959FECFD8DEE"><enum>(B)</enum><text>induction and support for teachers and principals during their first 3 years of employment as teachers or principals, respectively.</text> </subparagraph></paragraph><paragraph id="HEA3104C4E0DF4F469FEAE17954164B98"><enum>(4)</enum><text>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.</text> </paragraph><paragraph id="HB30BFE77B03F4E6E9C50D20044ADAC6"><enum>(5)</enum><text>Disseminating information on effective practices for teacher preparation and successful teacher certification and licensure assessment preparation strategies.</text> </paragraph><paragraph id="H2C8FA928F3D64248BA85A9E2C1D8243"><enum>(6)</enum><text>Activities authorized under sections 202, 203, and 204.</text> </paragraph></subsection><subsection id="HCC6ED7BEAF9C4FDEBA429D5C6B416030"><enum>(c)</enum><header>Application</header><text>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.</text> </subsection><subsection id="H751ABD973CA043408840C673586942B"><enum>(d)</enum><header>Minimum grant amount</header><text>The minimum amount of each grant under this part shall be $500,000.</text> </subsection><subsection id="H70F487F97E5F4582ABC8503792DB72B"><enum>(e)</enum><header>Limitation on administrative expenses</header><text>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.</text> </subsection><subsection id="H6C6B0B142DEE4734958CD5AD14D2100"><enum>(f)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations as may be necessary to carry out this part.</text> </subsection></section><section commented="no" id="H72FF2C0F660B4943A9CB83C932CCEB60"><enum>233.</enum><header>Appropriations</header><text display-inline="no-display-inline">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.</text> </section></part><after-quoted-block>.</after-quoted-block></quoted-block> </section></part><enum>IV</enum><header>College Access Challenge Grant Program</header> <section display-inline="no-display-inline" id="H7036FD295A054433BA15AB5F8DB100B3" section-type="subsequent-section"><enum>401.</enum><header>College Access Challenge grants</header> <subsection id="HA0E6A6E8711A4D5581E8224F8B99BC97"><enum>(a)</enum><header>Challenge grant program established</header> <paragraph id="H94B8CAEEFFF141CA86BF86A5FDF6B0E4"><enum>(1)</enum><header>Program established</header><text display-inline="yes-display-inline">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—</text> <subparagraph display-inline="no-display-inline" id="H7BEF2325A93D4DD7B79B5839B20700CC"><enum>(A)</enum><text>providing need-based grants to eligible students;</text> </subparagraph><subparagraph display-inline="no-display-inline" id="H3B143133EFD940C4907C5800E4CD2FC4"><enum>(B)</enum><text>providing support to eligible students through school- or institution-based mentoring programs; and</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HFD00E98FD3134144A7C231DEDFBA996"><enum>(C)</enum><text>conducting outreach programs to encourage eligible students to pursue higher education.</text> </subparagraph></paragraph><paragraph commented="no" id="H86627294CF404F928B99A30D748FE36"><enum>(2)</enum><header>Grant period; renewability</header><text>Grants under this section shall be awarded for one 5-year period, and may not be renewed.</text> </paragraph><paragraph id="H909D0F8A45734A138BB9ABB901FE25EA"><enum>(3)</enum><header>Grant amounts</header> <subparagraph id="HD4C776D99FAD446A928C10C7CF6311DB"><enum>(A)</enum><header>In general</header><text>A grant awarded under this part for a given fiscal year to a philanthropic organization shall be in an amount equal to lesser of—</text> <clause id="H3F592BB676F84DD2B1132FEE0288BB9E"><enum>(i)</enum><text>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</text> </clause><clause commented="no" id="H6D3C555E732D4C05A781880035BAE7D7"><enum>(ii)</enum><text>the maximum grant amount established by the Secretary by regulation, pursuant to <internal-xref idref="HCD15D0852E74403799AEFD449CF846" legis-path="401.(f)">subsection (f)</internal-xref>.</text> </clause></subparagraph><subparagraph id="HB885DCBD36D24E73A3AC5047B402F16"><enum>(B)</enum><header>Gifts provided in cash or in-kind</header><text display-inline="yes-display-inline">For the purposes of <internal-xref idref="HD4C776D99FAD446A928C10C7CF6311DB" legis-path="401.(a)(3)(A)">subparagraph (A)</internal-xref>, 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.</text> </subparagraph></paragraph></subsection><subsection id="H6D84CD28665C42B6AEC3F1674D9E3EAB"><enum>(b)</enum><header>Uses of Grant</header> <paragraph id="H529C4D79281149DEABB89C8E97446306"><enum>(1)</enum><header>In general</header><text>A philanthropic organization receiving a grant under this section shall—</text> <subparagraph id="HD014D251D72446C8BBA9053CBC3E4D6"><enum>(A)</enum><text>provide grants to eligible students; and</text> </subparagraph><subparagraph id="HEDBA31FF9CD749E0AAF7AC45C86FE23F"><enum>(B)</enum><text display-inline="yes-display-inline">distribute grants to members of the consortia with which the philanthropic organization is affiliated, in accordance with the plan described in <internal-xref idref="H9E3AC050D2A04701AF61B4CECB009DA1" legis-path="401.(c)(2)(A)">subsection (c)(2)(A)</internal-xref>, to fund the activities of such consortia in accordance with the application under <internal-xref idref="H2B42DB9394074A479229962C0000A711" legis-path="401.(c)">subsection (c)</internal-xref>.</text> </subparagraph></paragraph><paragraph id="HF774711F799945C2BB96BFC804822BEB"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">Not more than 15 percent of the funds made available annually through a grant under this section may be used for administrative purposes.</text> </paragraph></subsection><subsection id="H2B42DB9394074A479229962C0000A711"><enum>(c)</enum><header>Applications</header><text display-inline="yes-display-inline">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:</text> <paragraph id="HB29DB95C5A67470F870104E55B35CA1E"><enum>(1)</enum><text>A description of an eligible consortia that meets the requirements of <internal-xref idref="H144EAE1A421241FFBA31009DABCFFED1" legis-path="401.(d)">subsection (d)</internal-xref>, with which the philanthropic organization is affiliated, in accordance with <internal-xref idref="H41004F0020C348B08F42AC91001EA410" legis-path="401.(g)">subsection (g)</internal-xref>.</text> </paragraph><paragraph id="HCA9D6D5FB41A4007B7FCD257CC7FF8D4"><enum>(2)</enum><text>A detailed description of—</text> <subparagraph id="H9E3AC050D2A04701AF61B4CECB009DA1"><enum>(A)</enum><text>the philanthropic organization’s plans for distributing the matching grant funds among the members of the eligible consortia; and</text> </subparagraph><subparagraph id="H9827C5E0C0C144C7A4305CA6689C0092"><enum>(B)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H77A2CF90299B4D87ACB540E1C1CC563B"><enum>(3)</enum><text>A plan to ensure the viability of the eligible consortia and the work of the consortia beyond the grant period.</text> </paragraph><paragraph id="H5E62547A889F42B7BFE10810AF241B8F"><enum>(4)</enum><text>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.</text> </paragraph><paragraph id="HFA420F0BD8D74AD600F523B9757702A2"><enum>(5)</enum><text>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.</text> </paragraph><paragraph id="H68EC714D0A024F8C9E79E5B1A32000BD"><enum>(6)</enum><text>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.</text> </paragraph></subsection><subsection id="H144EAE1A421241FFBA31009DABCFFED1"><enum>(d)</enum><header>Eligible consortia</header><text>An eligible consortia with which a philanthropic organization is affiliated for the program under this section shall—</text> <paragraph id="H44FE6416E62841B5ADD85EB91C6945A4"><enum>(1)</enum><text>be a partnership of mulitple entities that have agreed to work together carry out this section, including—</text> <subparagraph id="HA876D87850EC4670928626A11B2D9862"><enum>(A)</enum><text>such philanthropic organization, which shall serve as the manager of the consortia;</text> </subparagraph><subparagraph id="H7719784B152A4D3DB073EAEAAAAADB7"><enum>(B)</enum><text>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</text> </subparagraph><subparagraph id="HA287D28C0FE24F898210A1316CDAE89"><enum>(C)</enum><text>at the discretion of the philanthropic organization described in <internal-xref idref="HA876D87850EC4670928626A11B2D9862" legis-path="401.(d)(1)(A)">subparagraph (A)</internal-xref>, 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</text> </subparagraph></paragraph><paragraph id="HB7E5259A0D474C4AAB01F24EE19409D1"><enum>(2)</enum><text>conducts activites to assist eligible students with entering and remaining in college, which include—</text> <subparagraph id="H4C649A16DD9C4BF2A7E602FB87C26075"><enum>(A)</enum><text>providing need-based grants to eligible students;</text> </subparagraph><subparagraph id="H77C779996F404EDBA4D621A9E9553720"><enum>(B)</enum><text>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;</text> </subparagraph><subparagraph id="HD97968A9EA9E4EBAA6AB465C00E62916"><enum>(C)</enum><text>encouraging increased eligible student participation in higher education through mentoring or outreach programs; and</text> </subparagraph><subparagraph id="H4A0A2BBD8CFD4583837629C5D9364EAD"><enum>(D)</enum><text>conducting marketing and outreach efforts that are designed to—</text> <clause id="HEAEF531049074511A9A4F212D6006B3C"><enum>(i)</enum><text>encourage full participation of eligible students in the activities of the consortia that carry out the purposes of this section; and</text> </clause><clause id="H39ECF2F2EB014900B3631DF3C56AC78"><enum>(ii)</enum><text>provide the communities impacted by the activities of the consortia with a general knowledge about the efforts of the consortia.</text> </clause></subparagraph></paragraph></subsection><subsection id="H31403CBF976B44C397BEABCF769DBD47"><enum>(e)</enum><header>Annual report</header><text>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—</text> <paragraph id="H2166C83472DF41659D00ED15C83CA6"><enum>(1)</enum><text>each activity that was provided to eligible students over the course of the year;</text> </paragraph><paragraph id="HC2F6DACD022948189E5D43209EE8DF98"><enum>(2)</enum><text>the cost of providing each such activity;</text> </paragraph><paragraph id="H70AC2B9780824E528FDE48EA1FA49937"><enum>(3)</enum><text>the number and percentage of eligible students who received grants, mentoring, and outreach services; and</text> </paragraph><paragraph id="H673D38BD094244BA94CB00D3A229034F"><enum>(4)</enum><text>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.</text> </paragraph></subsection><subsection commented="no" id="HCD15D0852E74403799AEFD449CF846"><enum>(f)</enum><header>Regulations</header><text>The Secretary shall promulgate regulations to carry out this section. Such regulations shall include—</text> <paragraph commented="no" id="HD9AA7C1D7A6949A699A889D8242B11CA"><enum>(1)</enum><text>the maximum grant amount that may be awarded to a philanthropic organization under this section;</text> </paragraph><paragraph commented="no" id="H7E37199357274C9E8881BAA6DC0078BC"><enum>(2)</enum><text>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.</text> </paragraph></subsection><subsection id="H41004F0020C348B08F42AC91001EA410"><enum>(g)</enum><header>Definitions</header><text display-inline="yes-display-inline">For the purposes of this section:</text> <paragraph id="H19EACABF96984144BDF7E9EE90222300"><enum>(1)</enum><header>Eligible student</header><text>The term <term>eligible student</term> means an individual who—</text> <subparagraph commented="no" id="HEFF4CDCA3D74404A96718683B68BF855"><enum>(A)</enum><text>is a member of an underserved population;</text> </subparagraph><subparagraph commented="no" id="H06EA529CBCFB4B5E982ECE249100B5BE"><enum>(B)</enum><text>is enrolled—</text> <clause commented="no" id="HA4E3F341EFFE4A08A3621C3290004959"><enum>(i)</enum><text>in a secondary school pursuing a high school diploma; or</text> </clause><clause commented="no" id="H634D208670C040F7835829B4D20080D3"><enum>(ii)</enum><text>in an institution of higher education or is planning to attend an institution of higher education; and</text> </clause></subparagraph><subparagraph id="H7A706A99A8134F12AAFA15ED6B65FBDB"><enum>(C)</enum><text>either—</text> <clause id="H81142ABD3BD04FA886002B00E81FB1ED"><enum>(i)</enum><text>is receiving, or has received, financial assistance or support services from the consortium; or</text> </clause><clause id="H0CBBEC42D3AC49CE8FF758911B34A76E"><enum>(ii)</enum><text>meets 2 or more of the following criteria:</text> <subclause id="HD9652183B3E34BBEA0D86B3EAD48ABAA"><enum>(I)</enum><text>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).</text> </subclause><subclause id="H59BA92852D654BD8BCBE9956DE10093"><enum>(II)</enum><text>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.</text> </subclause><subclause commented="no" id="H4204EC81A84E4EFCACCEF5CB26F5FF00"><enum>(III)</enum><text>Qualifies for the State's maximum need-based undergraduate award.</text> </subclause><subclause id="H0772BEC753E147C6A8FF5BB6EF428979"><enum>(IV)</enum><text>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.</text> </subclause></clause></subparagraph></paragraph><paragraph id="H5E64C49D385A4D83A908D615BC15B333"><enum>(2)</enum><header>Philanthropic organization</header><text display-inline="yes-display-inline">The term <term>philanthropic organization</term> means a non-profit organization—</text> <subparagraph commented="no" id="HE5F9A0EE18F14F36B811E4499DC1642"><enum>(A)</enum><text>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;</text> </subparagraph><subparagraph id="H8EF5F23326B343E7871E59970099AB26"><enum>(B)</enum><text>that is not a local educational agency or an insitution of higher education;</text> </subparagraph><subparagraph id="H07FFD203A709456AABF04FA30084587C"><enum>(C)</enum><text>that has a demonstrated record of dispersing grant aid to underserved populations to ensure access to, and participation in, higher education;</text> </subparagraph><subparagraph commented="no" id="H65650C5816ED479A89B23746E36CA98E"><enum>(D)</enum><text>that is affiliated with an eligible consortia (as defined in subsection (e)) to carry out this section; and</text> </subparagraph><subparagraph id="H6E09AB32FDE74C800033DD60ECF69200"><enum>(E)</enum><text>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.</text> </subparagraph></paragraph><paragraph id="H59297E37E71C43B7ACBD4B507F387D99"><enum>(3)</enum><header>State</header><text>The term <term>State</term> means each of the several States of the United States, the District of Columbia, and Puerto Rico.</text> </paragraph><paragraph id="HC727274AD605402C893683F5CA82C5B8"><enum>(4)</enum><header>Underserved population</header><text display-inline="yes-display-inline">The term <term>underserved population</term> 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.</text> </paragraph></subsection><subsection id="HCF71417EA3F044579EB66A25F034893"><enum>(h)</enum><header>Program funding</header> <paragraph id="H2B87648809264E11A7334987C86452CD"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H9C9CA503FE2644A0AAE3A7638C53135"><enum>(2)</enum><header>Use of excess funds</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a</external-xref>) for such subsequent fiscal year.</text> </paragraph></subsection><subsection commented="no" id="HE8690096665D4A58B6D9CFBDA9BADE93"><enum>(i)</enum><header>Sunset</header><text>The authority to carry out this section shall expire at the end of fiscal year 2012.</text> </subsection></section>