1.This Act may be cited as the
College Cost Reduction Act of
2007
.
2.References;
effective date
(a)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)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="HB61EAD6E50084A0BA3C502589B18DED3"><enum>A</enum><header>Increasing the
purchasing power of Pell Grants</header>
<section display-inline="no-display-inline" id="H5A50CEEFBBB04EB6ABACC68EE2D46085" section-type="subsequent-section"><enum>101.</enum><header>Mandatory Pell Grant
Increases</header>
<subsection id="HD40E2E49AAFA42A7B0C398E6713C27A3"><enum>(a)</enum><header>Extension of
authority</header><text display-inline="yes-display-inline">Section 401(a)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C.
1070a(a)</external-xref>) is amended by striking <quote>fiscal year
2004</quote> and inserting <quote>fiscal year 2013</quote>.</text>
</subsection><subsection id="HB2160E84216340229CB6C7EB7119C403"><enum>(b)</enum><header>Funding for
increases</header><text display-inline="yes-display-inline">Section 401(b)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C.
1070a(b)</external-xref>) is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE3FD306D549047A9A76303A036D5A183" style="OLC">
<paragraph id="HB1BA7A9B4589436B996FE264BEC5C4B9"><enum>(9)</enum><header>Additional
funds</header>
<subparagraph id="H76B031D26CA948E1A8DCA02EE2E337F"><enum>(A)</enum><header>In
general</header><text>There are authorized to be appropriated, and there are
appropriated, to carry out
<internal-xref idref="HA631475355A84B13BA7934361DFDA1DA" 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="HADDC76A5DA71494D8255003EECB94873"><enum>(i)</enum><text>$840,000,000 for
fiscal year 2008;</text>
</clause><clause id="H480B9F19EA184696A905DC2671E4AD86"><enum>(ii)</enum><text>$870,000,000 for
fiscal year 2009;</text>
</clause><clause id="H9012377CE34545789D1CAEEA52D0B11F"><enum>(iii)</enum><text>$1,340,000,000
for fiscal year 2010;</text>
</clause><clause id="H610EC14BFC50477BB014F482B54C4C83"><enum>(iv)</enum><text>$2,280,000,000
for fiscal year 2011;</text>
</clause><clause id="HDCFA18041EC14EAF9F2DAFCE69B2D94C"><enum>(v)</enum><text>$2,350,000,000 for
fiscal year 2012;</text>
</clause><clause commented="no" id="HEF7864991C9B445000342FF8D5FF38B"><enum>(vi)</enum><text>$2,400,000,000 for
fiscal year 2013;</text>
</clause><clause commented="no" id="HDDAF54382DFC4C9A00EEEB18D7EA8CF"><enum>(vii)</enum><text>$2,450,000,000
for fiscal year 2014;</text>
</clause><clause commented="no" id="H123E6A042A5848A8BEBD75D2B3683604"><enum>(viii)</enum><text>$2,510,000,000
for fiscal year 2015;</text>
</clause><clause commented="no" id="H390CB371C1DA4206823DD4EB653FC68"><enum>(ix)</enum><text>$2,550,000,000 for
fiscal year 2016; and</text>
</clause><clause commented="no" id="H48474BB47F4A4DAF882B24F04068F39C"><enum>(x)</enum><text>$2,570,000,000 for
fiscal year 2017.</text>
</clause></subparagraph><subparagraph id="HA631475355A84B13BA7934361DFDA1DA"><enum>(B)</enum><header>Increase in
Federal Pell Grants</header><text>The amounts made available pursuant to
<internal-xref idref="H76B031D26CA948E1A8DCA02EE2E337F" 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="H179594F315994DAF9B26F044168198EE"><enum>(i)</enum><text>$200 for each of
the award years 2008–2009 and 2009–2010;</text>
</clause><clause id="H4CA05289722747288D30E6A76C9B615E"><enum>(ii)</enum><text>$300 for award
year 2010–2011; and</text>
</clause><clause id="H5D6CA39D827B408DA3D673AD76A71419"><enum>(iii)</enum><text>$500 for award
year 2011–2012 and each subsequent award year.</text>
</clause></subparagraph><subparagraph commented="no" id="H41D653DCBDA043E4A95C8D6FE4954970"><enum>(C)</enum><header>Use of fiscal
year funds for award years</header><text>The amounts made available by
<internal-xref idref="H76B031D26CA948E1A8DCA02EE2E337F" legis-path="(9)(A)">subparagraph (A)</internal-xref> for any fiscal year shall
be available and remain available for use under
<internal-xref idref="HA631475355A84B13BA7934361DFDA1DA" 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="H30C5E133B5BC4C1C9887E7268D81929B"><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="H5A8C8D68A34D4732902900006FA41372" style="OLC">
<paragraph commented="no" id="HC21296E1D8A5441686E9D851BCFBD0" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HFD61AF400CCA48CDB189D5C632580220"><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="H269BF729879D478EB4C3C9DA5247D7C9" indent="up1"><enum>(i)</enum><text display-inline="yes-display-inline">$7,600 for academic year 2008–2009;</text>
</clause><clause commented="no" id="H7C561A2C495F4BB497A09198ED626429" indent="up1"><enum>(ii)</enum><text>$8,600 for academic year
2009–2010;</text>
</clause><clause commented="no" id="H2983B101345F452DA1DF417878EF35AC" indent="up1"><enum>(iii)</enum><text>$9,600 for academic year
2010–2011;</text>
</clause><clause commented="no" id="H6F97C30F44294815BDF3CB7ECDE7D3C" indent="up1"><enum>(iv)</enum><text>$10,600 for academic year 2011–2012;
and</text>
</clause><clause commented="no" id="H3ECCF424E1824CB394A1417050396560" 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="HDE9BFCFA30814D4EB88CD56BFEEC6251"><enum>(d)</enum><header>Tuition
Sensitivity</header>
<paragraph id="H422B026916DF4E809C8FC0143DB73D6C"><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="HC2F41955407940AD8ECB4C299CBAF546"><enum>(A)</enum><text>by striking
paragraph (3); and</text>
</subparagraph><subparagraph id="HB41FACE1D68A4670B0F523EFE19119F6"><enum>(B)</enum><text>by redesignating
paragraphs (4) through (9) as paragraphs (3) through (8), respectively.</text>
</subparagraph></paragraph><paragraph id="H42B7BDD3A5C44682B800F000998F93C2"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by
<internal-xref idref="H422B026916DF4E809C8FC0143DB73D6C" legis-path="101.(d)(1)">paragraph (1) of this subsection</internal-xref> are
effective on the date of enactment of this Act.</text>
</paragraph><paragraph id="H1301AD2174024602A06BB800963EF563"><enum>(3)</enum><header>Appropriation</header><text>There
shall be available to the Secretary, from funds not otherwise appropriated,
$5,000,000 for the period beginning on the date of enactment of this Act and
ending on October 1, 2008, to carry out the amendments made by paragraph (1) of
this subsection.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H44FC715F46E24E12B9E093764CE2C8A0"><enum>(e)</enum><header>Multiple
Grants</header>
<paragraph id="H57B4DECF615049F882412D5873EA9CB6"><enum>(1)</enum><header>Amendment</header><text>Paragraph
(5) of section 401(b) (as redesignated by
<internal-xref idref="HB41FACE1D68A4670B0F523EFE19119F6" legis-path="101.(d)(1)(B)">subsection (d)(1)(B)</internal-xref>) is amended to
read as follows:</text>
<quoted-block id="H34F3068BAAC449DABA9E47E2E8552649" style="OLC">
<paragraph id="H10B4C13035714D5EB3B643D62DA8D423"><enum>(5)</enum><header>Year-round pell
grants</header><text display-inline="yes-display-inline">The Secretary is
authorized, for students enrolled in a baccalaureate degree, associate’s
degree, or certificate 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 or certificate objectives
by enrolling in courses for more than 2 semesters, or 3 quarters, or the
equivalent, in a given academic
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA6EEE5532C6E4F9FBAEEC81E9C00A314"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by
<internal-xref idref="H57B4DECF615049F882412D5873EA9CB6" legis-path="101.(e)(1)">paragraph (1)</internal-xref> shall be effective July
1, 2009.</text>
</paragraph></subsection><subsection id="H0BE781D8D1A74A2CA7FACB221AB8179"><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="H1EA78C6A28514060B6CD69D76D638FB7"><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="HDF6260AE14F0409A8E7F8EF92E34F1E2"><enum>(2)</enum><text>by redesignating
subsection (g) as subsection (h); and</text>
</paragraph><paragraph commented="no" id="HE7A6132DADA74AFA997740004DD24121"><enum>(3)</enum><text>by inserting after
subsection (f) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H92561B985711460F86276BA487CD4D40" style="OLC">
<subsection commented="no" id="H384E3B3F71E6427A84E1D67889C62DD8"><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><subsection display-inline="no-display-inline" id="H2DFC5D0E014245A781BFADB6941016F"><enum>(g)</enum><header>Eligibility for
Academic Competitiveness Grants</header><text>Section 401A is further
amended—</text>
<paragraph id="HA9C18EB9D47E44808000D45B08C430A2"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="H634769D8F8744A278DB6C3FE64D7FB20"><enum>(A)</enum><text>by striking
<quote>full–time</quote>; and</text>
</subparagraph><subparagraph id="HB0898836132D4E728800EB1EFE3503A7"><enum>(B)</enum><text>by amending
paragraph (1) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H5A68CDBB0D70447FA79D9630B1B09C63" style="OLC">
<paragraph id="H05A0A850016146ABAEA7997139239F5B"><enum>(1)</enum><text display-inline="yes-display-inline">is an eligible student under section 484,
including being enrolled or accepted for enrollment in a degree, certificate,
or other eligible program leading to a recognized educational credential at an
institution of higher education;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HCCDCF63098F54800A6F0E47B7799A941"><enum>(2)</enum><text>in subsection (d),
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H30CE7D8448A94F249654006BD4855472" style="OLC">
<paragraph id="H2DCE38FB756946FE82788207A665DD28"><enum>(3)</enum><header>Adjustment for
less than full-time enrollment</header><text display-inline="yes-display-inline">A grant awarded under this section to an
eligible student who attends an eligible institution on a less than full-time
(but at least half-time or more) basis shall be reduced in the same proportion
as would a Federal Pell Grant pursuant to section
401(b)(2)(B).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H9B60FDC11ED24B8189214014E3E9F920" 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="H6C070BA61D0E48E392C4FC4F000A306"><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)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087oo">20 U.S.C.
1087oo</external-xref>)(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="HFA3924EF3CA44ADE808C2D3038ACF7EA" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HC5EA9C93372B48CC8B8211BA1E861555"><enum>(D)</enum><text>an income
protection allowance of $3,750 (or a successor amount prescribed by the
Secretary under section
478);</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H63E62F958B07470DA6371B33A761D336"><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="H11F018C42443462B9630CC614C1176BB" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H1FF9C35111E64FBC92DCCBE5408DF4BF"><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="H99C74F22402743068D8872BEEC2101E"><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), $6,690;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H4528715814904A92B7E6DC2EFDEC6736"><enum>(II)</enum><text display-inline="yes-display-inline">for married students where 1 is enrolled
pursuant to subsection (a)(2),
$10,720;</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFF9B7A6B4899419F86EF0030208D80E6"><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="H6573ED786CD84FE6BAA1C947EFDB8E26"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7D80D1DE437C48A08B09FD677B7C3B5D"><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="H27A033775532439DB781CFA1E801279" 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="H25D170792EA14F96828674D2E2114DAE"><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="H597E5F1B9BEF4D4DA79D6D1F0297C242"><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="H360B5938A499441093CF35DFAF720081"><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="H13881F617D2147BE9DD34F831C9A47F"><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="HD0F19CCBC599453F9CDE0069833D4B67" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H3E6DCBDA175C428EABC734326021935"><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="HE10F49D7F03D461B9D67CF4642417500"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD7522B1FEE7D41E8944B38388356869E" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H31B5A445F74C4297B028CB868C930055"><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="H71C554F9941047EDB5FBD42847300A8"><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="HAD10C8C2864E41D093D8C353345630D1" style="OLC">
<text>shall be
developed—</text><subparagraph commented="no" display-inline="no-display-inline" id="H4E7B9DAA128A46B89461CC81451CF4FD"><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 defined in section 478(f))
between December 2006 and the December next preceding the beginning of such
academic year, and rounding the result to the nearest $10;</text>
</subparagraph><subparagraph id="H55F8D641106A4911AD00F371A6C4C695"><enum>(B)</enum><text>for each of the
academic years 2010–2011 and 2011–2012, by increasing each of the amounts
determined under this paragraph for the preceding academic year by 10 percent;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC7790C8640024C229300953C8C18E654"><enum>(C)</enum><text display-inline="yes-display-inline">for each academic year after 2012–2013, by
increasing each of the dollar amounts determined under this paragraph for
academic year 2012–2013 by a percentage equal to the estimated percentage
increase in the Consumer Price Index (as defined in section 478(f)) between
December 2011 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="H93D316B6D9C04B20B535DC3792D0A91E"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by subsections (a) and (b) shall take
effect on July 1, 2009, 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="H3A6A00F363224DAB82F698A728254E20" 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="H68EDFBC89C13481DAADFF1E339332869"><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="H4107AA9537514E03808363FBCAB1343B"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD1691AF3A509452CAA14CB53EA13C025"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)(A)(i)—</text>
<clause commented="no" display-inline="no-display-inline" id="H1E4A6198EBD74BEA95EDD4A145DE312C"><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="HD5D4CC8521F24BAEB022EB9B45B13908"><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="HE92217C6EE1D4C86A0510013E0F2D66"><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="H9905B96E036D4790BECACD3330003C61" style="OLC">
<subclause commented="no" display-inline="no-display-inline" id="H008C17614E93444594FE0873008450BF"><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="HFAC1E5754C524038BBD6AF8FA99592D"><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="H5E96272E58F442FB8676A9414E1897B1"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)(i)—</text>
<clause commented="no" display-inline="no-display-inline" id="H4195ACDABB3C485E906C5B3F6F2BFA73"><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="H59EB5331ED144A6AA3640053BDFB41D"><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="HD0CF26BCF6C6458F9C96B115B56D6D5C"><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="HDF37D215043E4F1F9E73DE7071B40097" style="OLC">
<subclause commented="no" display-inline="no-display-inline" id="H809AACC5148D40E09C3EC9E3BA4CEAF0"><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="HE5444A72AAFE41CE82CF78EDEFD25ED2"><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="HCA6503F9B42A40E5BBF7F89BAA4DD200"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC7C60BDCE653487084BCE06EFCB8F00"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<clause commented="no" display-inline="no-display-inline" id="H34F32E5F4BDC4EE9845E50A0653672FA"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H664AFC7225B4428BAE4C4732CDBDFF7"><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="H36F80BF8BC354B0AA8D588120100426F"><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="H7008E7D30AC2481ABF10A4A680D864D7"><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="HC9FE724529944EF5002200E61595E146" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H155BF1F058F342FE9DE2BE2B6FED7BD9"><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="H4EFAF9AF4F9B42D8BE19F988759D6305"><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="HFB685B7920B940D69F54DBE4383CAFFF"><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="H537A90B1B8C944E099E110A6D9D3F749"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H52693706E10646A6B8C74DDEF8691ED5"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H0F894F19F6DB4DBE87D54E98FF0800F5"><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="HE9F9E6D567E9450BA55124CB1262CB5B"><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="H465B2E88ACBD45F8A4B51344F37E0014"><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="H595D40D4A9B14CE9988CFD37E8AF58F0" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H566E073930D94D129D33D0891D9D86E5"><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="HB55E6C511F594EEF846CB3AEA3AC53F2"><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="H7CC9F7F82FA8490991EE9E453385728E"><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="HF4D87C46ABAD43569E24D2BE802CD16"><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="H5E21D7F72D21435A9BB139938B33D3DC"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H90035DAA96EE4E51AEA277B4C95C7974"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) through (6)
as subparagraphs (A) through (F), respectively and moving the margins of such
subparagraphs 2 ems to the right;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8907F067BC5146F6AFDF92005200092E"><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="H79AB3AD8EC64423C9B5C4261F9AC2800" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H3A48F5FA09D84D860018D6C01F986FA6"><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="H1ACE0B578C98454C956FA6646E88087D"><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="HA841C41D26674942A41303E85414D43B"><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="HE5BAB62745A1458194F868B11BE5D2E0"><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="H4D597BF487284970A4F6F3881F022E3"><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="HC47E33B99FEF4FA79C808CDC797DD063" section-type="subsequent-section"><enum>104.</enum><header>Definitions</header>
<subsection commented="no" id="H4FD74435DB144FE2AF903B84E199B433"><enum>(a)</enum><header>Total
income</header><text display-inline="yes-display-inline">Section 480(a)(2)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087vv">20 U.S.C.
1087vv(a)(2)</external-xref>) is amended—</text>
<paragraph commented="no" id="H7F0121ABC6CD41B7A95926EE4DE9111D"><enum>(1)</enum><text>by striking
<quote>and no portion</quote> and inserting <quote>no portion</quote>;
and</text>
</paragraph><paragraph commented="no" id="H2D02F3F1746A487D0055BC489B0085B1"><enum>(2)</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>
</paragraph></subsection><subsection id="H05080F75F7AA4FD8005BB69800F300F5"><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="HB394AFA429804D4FA6F16C59007BB66D" style="OLC">
<subsection id="HDFEF67D662BC459C8FFAC649742F96A1"><enum>(b)</enum><header>Untaxed income
and benefits</header>
<paragraph id="H832A4EF962D34FE5BFAF864D09D612F2"><enum>(1)</enum><text>The term
<term>untaxed income and benefits</term> means—</text>
<subparagraph id="H44338FCAB5F044F8BB79333F4FBC3E2F"><enum>(A)</enum><text>child support
received;</text>
</subparagraph><subparagraph id="HC84BD47464EC46B5AC4300E91F338FC5"><enum>(B)</enum><text>workman's
compensation;</text>
</subparagraph><subparagraph id="HC65299C26E26421DB033F1E23177B42F"><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="H98B188F876E940CF9DAD8FEF3CA9287"><enum>(D)</enum><text>interest on
tax-free bonds;</text>
</subparagraph><subparagraph id="H0FEE3D0A340842F0BB95ED78C759B483"><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="H0D7F40376CDA4C5B00F5A100CCC23E00"><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="H0447C650557947F2BA5D6C84CDBCDB3"><enum>(G)</enum><text>untaxed portion of
pensions;</text>
</subparagraph><subparagraph id="HA1D7F15A51AB4CE5A837A5D6D079B219"><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="HCA4902EFE5984B18892C1B87BB21B056"><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 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801 et seq.</external-xref>).</text>
</subparagraph></paragraph><paragraph id="H4641D0DBF30A49B6830041DB33D95318"><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="HE64F67FFEC6842F78F91772F7FB02799"><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="H7149B74816424928AA581F1EC3AF62D7"><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="HEA153C6A37354734BC4BA042BA7F4E00"><enum>(2)</enum><text>by redesignating
paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and</text>
</paragraph><paragraph commented="no" id="H24AB1667F1AE4599B22BBE2C746BEBA1"><enum>(3)</enum><text>by inserting after
paragraph (3) the following:</text>
<quoted-block display-inline="no-display-inline" id="HA890763BA54A46DD97192B4CF58ECE2" style="OLC">
<paragraph commented="no" id="H8F0E3298F8F9437D9200CB357C09D6E7"><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="H80E543ECF1224991AF9E03BBE6EC92BF"><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="HE6A96EADA4A4404000C7C2469DC2BB27"><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="H99298355C3DD453C001FAA60081047B"><enum>B</enum><header>Making
Student Loans More Affordable</header>
<section display-inline="no-display-inline" id="HB6B6FE42EC2D4CCC88D8CC7303ED4579"><enum>111.</enum><header>Interest rate
reductions</header>
<subsection id="H81E3F4EDA37E4F3E916D9DDFA0F15BE6"><enum>(a)</enum><header>FFEL Interest
Rates</header>
<paragraph id="HF7978A4EC1B94357BC783EDCDDBE03C"><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="H020E05907B014ADCBEBB5615B3BB56BE" style="OLC">
<paragraph id="H0D37D7F26A1E42A3816BC8DDA47402CE"><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="H53F9710AEEC74E668BF4CCA846B5FD60"><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="H697A172E89354E0F8C2910E0EE88F966"><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="HFD53DE2EBA93400A00389D16FD74C19B"><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="HB477DBED28BA4B94828EC919E72956B"><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="H3F49266DB2B94922AA24F332B592C395"><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="H57B0F8CB2838419D906F5888EC1E3550"><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="H006164B2104A45BF004B963467D326D6"><enum>(2)</enum><header>Special
allowance cross reference</header><text>Section 438(b)(2)(I)(ii)(II)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1086">20 U.S.C.
1086(b)(2)(I)(ii)(II)</external-xref>) 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="H4CD7F1E80BFB44B680B8B3B8D858865"><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="H2CBC543EA64647EC90FC9E274C7E3CE8" style="OLC">
<subparagraph id="H3345135CABBF4ED60068DDB0C493BB1F"><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="H2B3966AF34114AD385F9A9EF23F56288"><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="HF61B90C5E86C4C31A7E5318F5FCA956F"><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="H6D79C9BDD5C54C909245AB7D9C34E3B6"><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="H5056EDE47AA747E78E9E4DEE6B4C5721"><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="HCE213972263F4D50B51F0060198E8CD3"><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="HD551E5959C264E4D00446D26DFC91563"><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="HF3AC547CA5EB473F86DB89541FEC7CD0"><enum>112.</enum><header>Increases in
loan limits</header>
<subsection id="HC4F9E790A9544757B25E4400A00E284"><enum>(a)</enum><header>Increase in third
and subsequent year limits</header>
<paragraph id="H14F4877D75CD463B9170462CF0F13200"><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="HA230578563D24DB48D7FC6C5803EF2FA"><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="HEC42149FDC1C416392C048C3DDA55002"><enum>(b)</enum><header>Increase in
aggregate limits</header>
<paragraph id="HCA98B3C2C6EF4445BCE4D3B9C1B37C31"><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="H98C088AD4E46435F97C4F39821EA59C"><enum>(A)</enum><text>in clause (i), by
striking <quote>$23,000</quote> and inserting <quote>$30,500</quote>;
and</text>
</subparagraph><subparagraph id="H6FEF6269201E4BB3AB946211005127DA"><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="H9B4B1544F1174DC0B77CD8D608154327"><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="HCF46F06AB57047139E947FFBA62DDCBA"><enum>(A)</enum><text>in clause (i), by
striking <quote>$23,000</quote> and inserting <quote>$30,500</quote>;
and</text>
</subparagraph><subparagraph id="HDB93199978294411ADCE4963DBE935D7"><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="H0E97DFCCA43343218999DAAF524000E6"><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="H3AF2B738653C4B71AAC9CB42ED6F3016" 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) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087-1">20 U.S.C.
1087–1(b)(2)(I)</external-xref>) is amended—</text>
<paragraph id="H4BAE19CA4068496EBEAD77872D8D59"><enum>(1)</enum><text>in
clause (i), by striking <quote>clauses (ii), (iii), and (iv)</quote> and
inserting <quote>the following clauses</quote>;</text>
</paragraph><paragraph id="HCA8FF2404922472A8CE9F2EE62EB4A0"><enum>(2)</enum><text>in
clause (v)(III), by striking <quote>clauses (ii), (iii), and (iv)</quote> and
inserting <quote>clauses (ii), (iii), (iv), and (vi)</quote>; and</text>
</paragraph><paragraph id="H01ED73E9C6004A3A9B0646673BBA39C6"><enum>(3)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H96EBD8BE2BD74C069CF1EF92312798F4" style="OLC">
<clause id="HEFCBB041E4A84F2782B02B49A09C1FBE"><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="H5FB56FDAAC584C1DA01CA58AF2FE178"><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="HFE2C2B9628F344B887EACAE168B43565"><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="H93682CDCACEC4EA4B58CB8BE827992F8"><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) 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="HCBBDCA8DBFD84DEC974FEC56AF17BFB1" section-type="subsequent-section"><enum>114.</enum><header>Elimination of
exceptional performer status for lenders</header>
<subsection id="HD0E4258DE8374B1B84297E089D341231"><enum>(a)</enum><header>Elimination of
Status</header><text display-inline="yes-display-inline">Part B of title IV
(<external-xref legal-doc="usc" parsable-cite="usc/20/1071">20 U.S.C. 1071 et
seq.</external-xref>) is amended by striking section 428I (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-9">20 U.S.C.
1078–9</external-xref>).</text>
</subsection><subsection id="H42D9AB10EA624966B87602EDCB00FDB2"><enum>(b)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Part B of title IV
is further amended—</text>
<paragraph id="HF6F62A5241CB45B6AE17811072BA33B5"><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="H6E4A46D3BD41481C8840D200EF78679D"><enum>(A)</enum><text>by striking
subparagraph (D); and</text>
</subparagraph><subparagraph id="HB55E7034CB9C4569A4F6D2C1DFED20"><enum>(B)</enum><text>by redesignating
subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively;
and</text>
</subparagraph></paragraph><paragraph id="HA826E2A5AC2F40A5A7268350C807B302"><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></section><section id="H1E2A01FB779443E0B675D8FCEA1C6BDC"><enum>115.</enum><header>Reduction of
lender insurance percentage</header>
<subsection id="H0C11E462670A488900B670AAEEC3B770"><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="H601CEF0F7B0C4979952655B5CD30932F" style="OLC">
<subparagraph id="HE54CE78E6A1C4C47B3D9BFDB0128DEAF"><enum>(G)</enum><text>insures 95 percent
of the unpaid principal of loans insured under the program, except that—</text>
<clause commented="no" id="H7B1FD748F26E4D70A79FB458241B32D2"><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="H94E9932828CC42E688450739D85746F5"><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="H59E1DBBD171142698893BCFEE964894"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by
<internal-xref idref="H0C11E462670A488900B670AAEEC3B770" 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="HF36EC2956D7D4177A8433D20C835C22"><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="HEBBAEC9E51BE4D61B9B852D9DA224726" style="OLC">
<clause id="H8F82E6DA99F14D4E92687974F6B46372"><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="HD44F3A3CBBCD4465AF8196E5055DB6E3"><enum>117.</enum><header>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 by striking <quote>0.10 percent</quote>
and inserting <quote>0.06 percent</quote>.</text>
</section><section display-inline="no-display-inline" id="HB314C91C339C47EBA0BFF800A2C9F945" 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="H757CDCE8547C46B600B8CCD1C52B2412" style="OLC">
<paragraph id="H58467DB6235048B799DB88643BD216A"><enum>(2)</enum><header>Amount of loan
fees</header>
<subparagraph id="H0EB1C13E26FC4BAAA67F12AB23CC39D7"><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="H9BCA66B03EF94A1800BB731320CF24DD"><enum>(i)</enum><text display-inline="yes-display-inline">except as provided in
<internal-xref idref="H44CBFE3D27AE4886BD00FE667D2DE774" legis-path="(2)(A)(ii)">clauses (ii)</internal-xref> and
<internal-xref idref="HAC1AA1431B444185A9E993DEE4C91C4" 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="H44CBFE3D27AE4886BD00FE667D2DE774"><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 described in subclause (I) or (II) of clause (iii); and</text>
</clause><clause id="HAC1AA1431B444185A9E993DEE4C91C4"><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—</text>
<subclause id="H259313A572FF47B4B5455DEF609F166C"><enum>(I)</enum><text>any holder that,
together with its affiliated holders, is designated by the Secretary annually
as a small lender under
<internal-xref idref="HBE397CB1F1674A84AA8100D861B4AB4D" legis-path="(2)(B)">subparagraph (B)</internal-xref>; or</text>
</subclause><subclause id="H654E14804D454FCDAA6C109E9353FF25"><enum>(II)</enum><text display-inline="yes-display-inline">any holder that—</text>
<item id="HBAF458C17819465FBDC6D3C3128396C5"><enum>(aa)</enum><text>is
a unit of a State or local government or a nonprofit private entity; and</text>
</item><item id="HA01958D25A1F4240823C9FEABCC2F37F"><enum>(bb)</enum><text>is
not owned in whole or in part by, or controlled or operated by a for-profit
entity.</text>
</item></subclause></clause></subparagraph><subparagraph id="HBE397CB1F1674A84AA8100D861B4AB4D"><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="HAC1AA1431B444185A9E993DEE4C91C4" legis-path="(2)(A)(iii)">subparagraph (A)(iii)(I)</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="H809CCE267B0846F583D8CDDA17D0284"><enum>(i)</enum><text display-inline="yes-display-inline">rank all holders of eligible loans
(combined with their affiliated holders) in descending order by total principal
amount of eligible loans held;</text>
</clause><clause id="H6B3161727D9A46B1ADEA55BE4E0089A5"><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="HF2EEDCF9FDD14A81A98EB83BBC5D16FB"><enum>(iii)</enum><text display-inline="yes-display-inline">identify the subset of consecutively ranked
holders under
<internal-xref idref="H809CCE267B0846F583D8CDDA17D0284" 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="H6B3161727D9A46B1ADEA55BE4E0089A5" 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="HC93F588FE7B544D0B969C46C59876629"><enum>(iv)</enum><text>designate as
small lenders any holder identified as a member of the subset under
<internal-xref idref="HF2EEDCF9FDD14A81A98EB83BBC5D16FB" legis-path="(2)(B)(iii)">clause
(iii)</internal-xref>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HC002B4BB741147EEBEE9D06F0219F9FF"><enum>119.</enum><header>Market-based
determination of lender returns</header>
<subsection id="H3E4A03C4895144E6892432885E53C62B"><enum>(a)</enum><header>Joint planning
study To select auction mechanisms for testing</header>
<paragraph id="H31E212845ACB4856BCAD324E14D2A7BE"><enum>(1)</enum><header>Planning
study</header><text>The Secretaries of Education and Treasury jointly shall
conduct a planning study, in consultation with the Office of Management and
Budget, the Congressional Budget Office, the General Accounting Office, and
other individuals and entities the Secretaries determines appropriate,
to—</text>
<subparagraph id="HB594BA62A67A44F6AF41519BA9A154B1"><enum>(A)</enum><text>examine the
matters described in
<internal-xref idref="H17F4E11118414AD7A85680CF7E02747C" legis-path="120.(a)(2)">paragraph (2)</internal-xref> in order to determine
which market-based mechanisms for determining lender returns on loans made,
insured, or guaranteed under part B of title IV of the Higher Education Act of
1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1071">20 U.S.C. 1071
et seq.</external-xref>) shall be tested under the pilot programs described in
<internal-xref idref="HFFBBC7A06B484A94A5373FD3279F0500" legis-path="120.(c)">subsection (c)</internal-xref>; and</text>
</subparagraph><subparagraph id="HC20C40088A444E37A3E5070099233883"><enum>(B)</enum><text>determine what
related administrative and other changes will be required in order to ensure
that high-quality services are provided under a successful implementation of
market-based determinations of lender returns for all loans made, insured, or
guaranteed under such part.</text>
</subparagraph></paragraph><paragraph id="H17F4E11118414AD7A85680CF7E02747C"><enum>(2)</enum><header>Matters
examined</header><text>The planning study under this subsection shall
examine—</text>
<subparagraph id="H017E58490E4041ACA0755CADECB3F64F"><enum>(A)</enum><text>whether it is most
appropriate to auction existing loans under part B of title IV of such Act, to
auction the rights to originate loans under such part, or whether the sale of
securities backed by federally-owned student loan assets originated by banks
acting as agents of the Federal Government would provide the most efficient
market-based alternative;</text>
</subparagraph><subparagraph id="HA5773603E92F451BB4F20036B327D613"><enum>(B)</enum><text>matters related to
efficient financial organization of any auctions or sales of loans under such
part, including how loans and origination rights are bundled, the capital
structure of any securitization plan, and issues related to servicing;
and</text>
</subparagraph><subparagraph id="H40488AC6CCC24E9D9EB39870E677943"><enum>(C)</enum><text>how to ensure that
statutory, regulatory, and administrative requirements do not impede separate
management and ownership of loans or assets backed by loans under part B of
title IV of such Act.</text>
</subparagraph></paragraph><paragraph id="HEC3FB68586E74AA485D2D8205D147022"><enum>(3)</enum><header>Mechanisms</header><text>In
determining which market-based mechanisms are the most promising models to test
the pilot programs under subsection (b), the planning study shall take into
account whether a particular market-based mechanism will—</text>
<subparagraph id="HD1E90F4D105542C1B3F4355EEA0666"><enum>(A)</enum><text>ensure loan
availability under part B of title IV of such Act to all eligible students at
all participating institutions;</text>
</subparagraph><subparagraph id="H3DCB3726CC6B478186CDF9C4781C1653"><enum>(B)</enum><text>minimize
administrative complexity for borrowers, institutions, lenders, and the Federal
Government; and</text>
</subparagraph><subparagraph id="H7888AC20EC294F640049DE329FB5BA00"><enum>(C)</enum><text>reduce Federal
costs if used on a program-wide basis.</text>
</subparagraph></paragraph><paragraph id="HD0F744879A2244210033A41CA9F764DE"><enum>(4)</enum><header>Report</header><text>A
report on the results of the planning study, together with a plan for
implementation of one or more pilot programs using promising market-based
approaches for determining lender returns, shall be transmitted to Congress not
later than 6 months after the date of enactment of this Act.</text>
</paragraph></subsection><subsection id="HE4B986D1B7A04C7B8EC5856F525883C7"><enum>(b)</enum><header>Pilot programs
To be tested</header>
<paragraph id="H14CE71816474438BAAF3BB0030FB7767"><enum>(1)</enum><header>Authorization</header>
<subparagraph id="HF56EB03ED9094F5C815D6EACE4EDD037"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of law, after the
report described in
<internal-xref idref="HD0F744879A2244210033A41CA9F764DE" legis-path="120.(a)(4)">subsection (a)(4)</internal-xref> is transmitted to
Congress, the Secretary of Education shall, in consultation with the Secretary
of the Treasury, begin preparations necessary to carry out pilot programs
meeting the requirements of this subsection in accordance with the
implementation plan included in such report.</text>
</subparagraph><subparagraph id="H48CEA6721F344137937F86737F93DAE1"><enum>(B)</enum><header>Implementation
date</header><text>The Secretary of Education shall commence implementation of
the pilot programs under this subsection not earlier than July 1, 2008.</text>
</subparagraph><subparagraph id="H4A3730BDAD004B99B47D5FDCC2004D37"><enum>(C)</enum><header>Duration and
loan volume</header><text>The pilot programs under this subsection shall be not
more than two academic years in duration, and the Secretary of Education may
use the pilot programs to determining the lender returns for not more
than—</text>
<clause id="HA218346DA4F44794BE04DDA0456B1E95"><enum>(i)</enum><text>10
percent of the annual loan volume under part B of title IV of the Higher
Education Act of 1965 during the first year of the pilot programs under this
subsection; and</text>
</clause><clause id="H6CAAB87B14C74C75B59294F2F8FEC85B"><enum>(ii)</enum><text display-inline="yes-display-inline">20 percent of the annual loan volume under
part B of title IV of such Act during the second year of the pilot programs
under this subsection.</text>
</clause></subparagraph></paragraph><paragraph id="H8F69F33382E34E5E9DB9697BB9007EFF"><enum>(2)</enum><header>Voluntary
participation</header>
<subparagraph id="HB7B9D322D0244F8E9C108CA856AF4D68"><enum>(A)</enum><text display-inline="yes-display-inline">Participation in any auction-based pilot
program under this subsection shall be voluntary for eligible institutions and
eligible lenders participating under part B of title IV of such Act prior to
July 1, 2006.</text>
</subparagraph><subparagraph id="H8B8CB2E6FD464575901F373E1C66B9FC"><enum>(B)</enum><text display-inline="yes-display-inline">All savings to the United States Treasury
generated by such auctions shall be distributed to institutions participating
under this subsection on a basis proportionate to loan volume under such part
for supplemental, need-based financial aid, except that an institution that is
operating as an eligible lender under section 435(d)(2) of such Act shall not
be eligible for any such distribution.</text>
</subparagraph></paragraph><paragraph id="H483086A3C7B2457DBD6CAB7EB900D056"><enum>(3)</enum><header>Independent
evaluation</header><text>The Government Accountability Office shall conduct an
independent evaluation of the pilot programs under this subsection, which
evaluation shall be completed, and the results of such submitted to the
Secretary of Education, the Secretary of the Treasury, and Congress, not later
than 120 days after the termination of such pilot programs.</text>
</paragraph></subsection><subsection id="HFFBBC7A06B484A94A5373FD3279F0500"><enum>(c)</enum><header>Program-wide
implementation</header><text>Notwithstanding any other provision of part B of
title IV of the Higher Education Act of 1965, for the first academic year
beginning not less than 120 days after the independent evaluation described in
<internal-xref idref="H483086A3C7B2457DBD6CAB7EB900D056" legis-path="120.(b)(3)">subsection (b)(3)</internal-xref> has been transmitted
to Congress, and succeeding academic years, the Secretary of Education is
authorized to implement for all loans made under such part, a program-wide,
market-based system to determine returns to all lenders as the Secretary of
Education determines appropriate, provided that—</text>
<paragraph id="HC2379FE79CE84729A305E68BE9CADE72"><enum>(1)</enum><text>the Secretary of
Education, in consultation with the Secretary of the Treasury, has certified
that the auction-based system that the Secretary of Education intends to
implement on a program-wide basis would—</text>
<subparagraph id="H024BACF597FE470D002634BBD552E3AB"><enum>(A)</enum><text>ensure loan
availability under such part to all eligible students at all participating
institutions;</text>
</subparagraph><subparagraph id="H627AA5C374EE48F1AAC300B7D0FCF6D2"><enum>(B)</enum><text>minimize
administrative complexity for borrowers, institutions, lenders, and the Federal
Government, including the enhancement of the modernization of the student
financial aid system; and</text>
</subparagraph><subparagraph id="H0516DFC5BDAD46C4B1FCE935A11B09D9"><enum>(C)</enum><text>reduce Federal
costs when used on a program-wide basis; and</text>
</subparagraph></paragraph><paragraph id="H3AE99E6FEB24441BA771A3008C57CF8F"><enum>(2)</enum><text>the Secretary of
Education has notified Congress of the Secretary’s intent to implement a
program-wide auction based system, and has provided a description of the
structure of such auction-based system, at least 120 days before implementing
such system.</text>
</paragraph></subsection><subsection id="HF4D199A34C004B6BB0BCEA20C9172F92"><enum>(d)</enum><header>Consultation</header>
<paragraph id="H665D923A27104544A6148E71F708269B"><enum>(1)</enum><header>In
general</header><text>As part of the planning study, pilot programs, and
program-wide implementation phases described in this section, the Secretary of
Education shall consult with representatives of investment banks, ratings
agencies, lenders, institutions of higher education, and students, as well as
individuals or other entities with pertinent technical expertise. The Secretary
of Education shall engage in such consultations using such methods as, and to
the extent that, the Secretary determines appropriate to the time constraints
associated with the study, programs, and implementation.</text>
</paragraph><paragraph id="H7F265E80343C418A99130000321DC122"><enum>(2)</enum><header>Services of
other Federal agencies</header><text>In carrying out the planning study and
pilot programs described in this section, the Secretary of Education may use,
on a reimbursable basis, the services (including procurement authorities and
services), equipment, personnel, and facilities of other agencies and
instrumentalities of the Federal Government.</text>
</paragraph></subsection></section><section id="H781484B8D3E34BFF99669DE59DB756AF"><enum>120.</enum><header>Other guaranty
agency reforms</header>
<subsection id="H2825498E61F9417684E662AFFDEE549"><enum>(a)</enum><header>Agency operating
funds</header><text display-inline="yes-display-inline">Section 422B(c)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1072b">20 U.S.C.
1072b(c)</external-xref>) is amended—</text>
<paragraph id="H04D45C6953164D0888A3124C97005C55"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of paragraph (5);</text>
</paragraph><paragraph id="H136AA782B2354130992561759510DA65"><enum>(2)</enum><text>by redesignating
paragraph (6) as paragraph (7); and</text>
</paragraph><paragraph id="H6C61435AA338468DBF6B6732A4AB1DCA"><enum>(3)</enum><text>by inserting after
paragraph (5) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H66940E03E44446F4B3C52B49FD76841" style="OLC">
<paragraph id="H864BC89BD5F94876AE20BAD904990072"><enum>(6)</enum><text>the delinquency
prevention fee paid by the Secretary in accordance with section 428(o);
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H168C3E0E934E4E70BEE20880074EB1E"><enum>(b)</enum><header>Delinquency
prevention fee </header><text>Section 428 (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078</external-xref>) is amended by
adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H563741F480BD4B318C968D7471C5C6B" style="OLC">
<subsection id="HC91AED0382BF4AFC9FDAAFF77606E6EE"><enum>(o)</enum><header>Delinquency
prevention fee</header>
<paragraph id="HFEAF26D08D59437F89AC81DB4213719D"><enum>(1)</enum><header>Amount of
fee</header><text>The Secretary shall pay to each guaranty agency, on a monthly
basis, a delinquency prevention fee equal to 0.0055 percent of the original
principal amount of loans insured by the agency, other than loans in in-school
or grace period status, that are not in delinquency status as of the end of the
previous month.</text>
</paragraph><paragraph id="H61DC7C018FB14C358F1BDB731507D546"><enum>(2)</enum><header>Definition</header><text>For
the purpose of earning the delinquency prevention fee, the term <quote>not in
delinquency status</quote> means the borrower is less than 60 days delinquent
in making a required
payment.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEDB0B576AE9B408FBF293E6C197135C6"><enum>(c)</enum><header>Minimum loan
processing and issuance fees</header><text>Section 428(f)(1)(A)(ii)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C.
1078(f)(1)(A)(ii)</external-xref>) is amended by inserting before the period at
the end the following: <quote>, except that the total amount of such payments
to each guaranty agency in any fiscal year shall equal at least
$1,500,000</quote>.</text>
</subsection></section></part><part id="HC40E5FE6E6684810A9AFAB391330A9A1"><enum>C</enum><header>Rewarding Service
in Repayment</header>
<section display-inline="no-display-inline" id="H6B78191C7C3E4367A35EA16B04A9B415" section-type="subsequent-section"><enum>131.</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="HA7B8A2B65F2D4C5EBB9C30BC29DF9555" style="OLC">
<section id="H9A8C206ECD3C42698B2CAF35DFD892F"><enum>428K.</enum><header>Loan
forgiveness for service in areas of national need</header>
<subsection id="H292D91DC436F46F2A8A09C146EF86000"><enum>(a)</enum><header>Program
authorized</header>
<paragraph id="H8E9370B1604846B29DCEF09CBABC379D"><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="H845EF40167BD48919741B1928909E33E" 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="HFA734E6D35524E34BBBD32644CAE95FB"><enum>(A)</enum><text display-inline="yes-display-inline">is employed full-time in an area of
national need described in
<internal-xref idref="H75D98172B9094CF28D4C419E9C54C614" legis-path="428K.(b)">subsection (b)</internal-xref>; and</text>
</subparagraph><subparagraph id="HF83F2DE7297849B9AEDC4BE492AE4EB7"><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="H2F6441B4C889493999F1B01BAC62CC51"><enum>(2)</enum><header>Method of loan
forgiveness</header><text>To provide loan forgiveness under
<internal-xref idref="H8E9370B1604846B29DCEF09CBABC379D" legis-path="428K.(a)(1)">paragraph (1)</internal-xref>, the Secretary is
authorized to carry out a program—</text>
<subparagraph id="H9E4CA7DF0F424CC8AB1D9D4020DC90E7"><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="HAD6DA8B8A91D4FEC000187B91D87D7DD"><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="H8B8717E297D74716A44E41483CC83AD"><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="H75D98172B9094CF28D4C419E9C54C614"><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="H29A6A8663BD047FE96B6EC71BB016F15"><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 age 5 and
under.</text>
</paragraph><paragraph id="H5C9E95F7DC464DAB901F50BAD33916B5"><enum>(2)</enum><header>Nurses</header><text>An
individual who is employed—</text>
<subparagraph id="H6F9D428A2751469A9577DD293F3E477"><enum>(A)</enum><text>as a nurse in a
clinical setting; or</text>
</subparagraph><subparagraph id="H11CD043A170143BA84DAA3A13CA34567"><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="HDC23898787E34E0293E4533B1B25A62"><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="H744B0CAABF964BDF84E405E89E762297"><enum>(A)</enum><text>in an elementary
or secondary school as a teacher of a critical foreign language; or</text>
</subparagraph><subparagraph id="H1174A1CF5BCA47C68EAF84965B91E571"><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="H242C697D5DFB45599D3D50EB6374C1D5"><enum>(4)</enum><header>Librarians</header><text>An
individual who is employed as a librarian in—</text>
<subparagraph id="H33D25682A57D45C8B06DD9FF269D597E"><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="HB7556D801D4A425084DE4BFA3FECE4"><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="H1EF73A72273B484494328B7706AADD79"><enum>(5)</enum><header>Highly Qualified
Teachers: Bilingual Education and Low-income Communities</header><text>An
individual who—</text>
<subparagraph id="HFCA7B2F0C8C44A91AFE8E9007E00EEA3"><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="H1F9B6BEA33684D73B9E19E1022007279"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H70B07363AC1B4B2F00269F5FEC1DD8AB"><enum>(i)</enum><text>is employed as a
full-time teacher of bilingual education; or</text>
</clause><clause id="H84C94CB591EC4EF9A3F147F7AF3E9099" indent="up1"><enum>(ii)</enum><text>is employed as a teacher 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="HCECA671253EE4EA5008E553200F23F6E"><enum>(6)</enum><header>Child Welfare
Workers</header><text display-inline="yes-display-inline">An individual
who—</text>
<subparagraph id="HDFF46A502398474CB6D5D109B59758A"><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="H7CBA081B40884335A9806706A54499A8"><enum>(B)</enum><text>is employed in
public or private child welfare services.</text>
</subparagraph></paragraph><paragraph id="H8C659AE5C74D4BADA2B84C4072DE91B9"><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="HB9CBFDBF311B4E4CB014918DAE00FF72"><enum>(8)</enum><header>National
service</header><text>An individual who is engaged as a participant in a
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 display-inline="no-display-inline" id="H6078309FDF7E4715B46BF707754E7CFD"><enum>(9)</enum><header>School
counselors</header><text display-inline="yes-display-inline">An individual who
is employed as a school counselor (as such term is defined in section
5421(e)(3) of Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7245">20 U.S.C.
7245(e)(3)</external-xref>) in an elementary or secondary school which is in
the school district of a local educational agency which is eligible in such
year for assistance pursuant to title I of the Elementary and Secondary
Education Act of 1965, and which for the purpose of this paragraph and for that
year has been determined by the Secretary (pursuant to regulations and after
consultation with the State educational agency of the State in which the school
is located) to be a school in which the enrollment of children counted under
section 1113(a)(5) of the Elementary and Secondary Education Act of 1965
exceeds 30 percent of the total enrollment of that school.</text>
</paragraph><paragraph commented="no" id="HBEB0D3AEA10C443392B99124BA06CE7D"><enum>(10)</enum><header>Public sector
employees</header><text display-inline="yes-display-inline">An individual who
is employed in 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 or
legal advocacy in low-income communities at a nonprofit organization).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H845EF40167BD48919741B1928909E33E"><enum>(c)</enum><header>Qualified loan
amount</header><text>At the end of each school, academic, or calendar year of
full-time employment in an area of national need described in subsection (b),
not to exceed 5 years, the Secretary shall forgive not more than $1,000 of the
student loan obligation of a borrower that is outstanding after the completion
of each such school, academic, or calendar year of employment, as appropriate,
not to exceed $5,000 in the aggregate for any borrower.</text>
</subsection><subsection id="HCEE729D9B9AE42C29B8B6BE100499533"><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="HA5B44B0D5EC1487FA817CE1559B6F789"><enum>(e)</enum><header>Segal Americorps
Education Award and National Service Award Recipients</header><text display-inline="yes-display-inline">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
receive under this section the amount, if any, by which the maximum benefit
available under this section exceeds the maximum education award available
under such subtitle.</text>
</subsection><subsection id="H6E7B4419F3C1402B86AFC2B9B84BAF00"><enum>(f)</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="HB97B344DCAF7428E9F008EB06C2591CF"><enum>(g)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H5A18C7314D9C4BEE897382B04ED4E618"><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="H37858C795CE3416193E2007405B7EFF3"><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="H8BF656728ED04360B8D32C938B073B00"><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 age 5 and under, meets any
applicable State or local government licensing, certification, approval, and
registration requirements, and is operated by—</text>
<subparagraph commented="no" id="H4319D16122F444849648E31D34855491"><enum>(A)</enum><text>a public or
private school that is supported, sponsored, supervised, or administered by a
local educational agency;</text>
</subparagraph><subparagraph commented="no" id="H30F5361B6F96405286A0FE4015615E67"><enum>(B)</enum><text>a Head Start
agency serving as a grantee designated under the Head Start Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9831">42 U.S.C. 9831 et
seq.</external-xref>);</text>
</subparagraph><subparagraph commented="no" id="H2E708C8EA2664D409C2D26515EC4C6CA"><enum>(C)</enum><text>a nonprofit or
community based organization; or</text>
</subparagraph><subparagraph commented="no" id="HB60CE2174747488AB581BED51FED03FA"><enum>(D)</enum><text>a child care
program, including a home.</text>
</subparagraph></paragraph><paragraph commented="no" id="H72351C1FE4C245209216CF3EA5E0426C"><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="HA713275A044B45CF8CE63B007900EF00"><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="HADC1DB7E012F4BF6BACA800421FB17F"><enum>(i)</enum><text>is licensed or
regulated by the State; and</text>
</clause><clause commented="no" id="H921B1A921EF04324AB7426BD32153B7"><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="HE85198927CC14D8CAAF67DE7E364202C"><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="H6CC3B1B412684449A4215DDC7926BFBD"><enum>(C)</enum><text>an Early Head
Start Program carried out under section 645A of the Head Start Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/9840a">42 U.S.C.
9840a</external-xref>).</text>
</subparagraph></paragraph><paragraph id="H401942873ED14D6AB40004EB69915D23"><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="H1E71FBF26E6B4524B51F73FA12C84ED8"><enum>(6)</enum><header>Nurse</header><text>The
term <term>nurse</term> means a nurse who meets all of the following:</text>
<subparagraph id="HFF6072C0D5974EEAA7D1CBDE787FF693"><enum>(A)</enum><text>The nurse
graduated from—</text>
<clause id="H044F10A6DB804614848770CD8889B980"><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="H90D6E90FC9F7463DB537CDBDCE8E60BA"><enum>(ii)</enum><text>a
nursing center; or</text>
</clause><clause id="HFFECF7423E3D492C9668EC1767A305D6"><enum>(iii)</enum><text>an academic
health center that provides nurse training.</text>
</clause></subparagraph><subparagraph id="HB682AB482AFD4224BAD9E7002C1B517B"><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="H81727CC9E29A4F13B30173FC8668C13F"><enum>(C)</enum><text>The nurse holds
one or more of the following:</text>
<clause id="H1556CD0B627C468EA096AF859BB500EB"><enum>(i)</enum><text>A
graduate degree in nursing, or an equivalent degree.</text>
</clause><clause id="H090687E55CAB4342A6CE747232EBEE28"><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="H9C9BEAE2474E404995ECE99F87EC80D0"><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="H71321BE71C2B401FB286007FF2DD5D70"><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="HEA6240878BCF40E9952E912995DE71C7"><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—</text>
<subparagraph id="H56E317F3C858497FB23428143BF9D6FA"><enum>(A)</enum><text>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="H2DF41D0F21F24A279F935F51C358EF5B"><enum>(B)</enum><text display-inline="yes-display-inline">provides speech-language pathology services
under section 1861(ll)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C.
1395x(ll)(1)</external-xref>, or meets or exceeds the qualifications for a
qualified speech-language pathologist under subsection (ll)(3) of such section
(<external-xref legal-doc="usc" parsable-cite="usc/42/1395x">42 U.S.C.
1395x(ll)(3)</external-xref>).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HE89997C2A8674AADA9431EA1CD403200"><enum>(h)</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="H92FAD01902F9412089473EEB8C1D90A8" section-type="subsequent-section"><enum>132.</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="H820BF81628794A29A9713C5500147568" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H184BD8BEDC11494D8658C72B09433500"><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="HD0965D4FFDD64E45AF4D3B330023D7B6"><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="H99BD53EA575A46D6AA606065591707A8"><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="H006E3C6D6A89486FBF04F35159CA721"><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="H99BD53EA575A46D6AA606065591707A8" 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="H4DDBB33BBECB4189BAF53423F949C1B"><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,
public interest legal services (including prosecution or public defense or
legal advocacy in low-income communities at a nonprofit organization), or at an
organization that is described in
<external-xref legal-doc="usc" parsable-cite="usc/26/501">section
501(c)(3)</external-xref> of the Internal Revenue Code of 1986 and exempt from
taxation under section 501(a) of such Code.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H012B247BDC414C74A24D67E00042F908"><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="H4C61AC5343AA439BB21D46716BBB6982" section-type="subsequent-section"><enum>133.</enum><header display-inline="yes-display-inline">Income-based repayment</header>
<subsection commented="no" display-inline="no-display-inline" id="H9D06551F5B8D43E8A271873C307D4C3B"><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="H36D8A8B0EBDA4D2BB7E30008F93C0603" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HDC6CA9E7727B4B3287DE61D78125E562" 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="H386601F19AF84C40A58F0461BDB44EB"><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="H773DD2E71FE249818E3DA9E31FC0C584"><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="H13D195D3CD0649CCBDEB63C233BE002E"><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>, when used with respect to a borrower, means that for such
borrower—</text>
<subparagraph id="HDAC9EDDB547C44E191F29F007401B85C"><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="H4886EF78BE5B4E16BAC3E22CC9268E09"><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="HE19B6F67FCD445BBBF761268B39FA3C5"><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="H403AE1A98A99421CA3E3ABF8E166F955"><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="H50DE4120591E46BEA2A223EF519D0245"><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="H6767A3658F96453BB295334F5C36AD7C"><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="H4886EF78BE5B4E16BAC3E22CC9268E09" 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="H083C233750C3441AAD31BDECFDCFF2"><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="H95F8E8EB14EF45F08BB57500705945C1"><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="HD195B978BFAB46F9A7A4EFB9A28BC9A1"><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="H8F3D19B860D34C7AA6F800853DC4258D"><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="H445B63AB82AE4111974D00E07F5D2135"><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="H03031601D36E458982E843613F3ABAF"><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="H38EAB5E8DE9247C38EDF03F2DD6E8B00"><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="HEAAAF3F96B1A464AB571B156A5D40071"><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="H13DC110CA3F448F0A18F00F0556FFC7"><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="H4CF9F8158162499BB37FA8BFB5E00DF"><enum>(B)(i)</enum><text display-inline="yes-display-inline">makes the election to participate in
income-based repayment under paragraph (1); and</text>
<clause commented="no" display-inline="no-display-inline" id="HB2AF97D602A24BA2BDE66CC1DB423531" 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="H0EAD5BF0C0FB40ABB55BE97142C37000"><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="H76BA1428C541468F8CEBD80020485175"><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="HE3E6C08D06A84CC1A073FF147DD5DB05"><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="H55592243559248F1B0E36521B21E90FC"><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="H3A7BF510045548EC8290FB1B5D8C95B1"><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="H45530454A877403ABA5D01C51FD839D7"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming ICR amendment</header><text display-inline="yes-display-inline">Section 455(d)(1)(D) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C.
1087e(d)(1)(D)</external-xref>) 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="H5433ADE29CD448FDB84D6588AB00FB8B" section-type="subsequent-section"><enum>134.</enum><header display-inline="yes-display-inline">Definition of economic
hardship</header><text display-inline="no-display-inline">Section 435(o)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1085">20 U.S.C.
1085(o)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB27B9D26C5004504925600D96FD5349F"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H39FFB383D2AA4A80A46B5529B7FC72DF"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)(ii)—</text>
<clause id="HCCFFB59A8DDA4E628086DCE14011F400"><enum>(i)</enum><text>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>; and</text>
</clause><clause id="HE724E02110E347CFBAF75DEDB79E2B01"><enum>(ii)</enum><text>by
inserting <quote>or</quote> after the semicolon;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEBA20032041D4A888392D3060E34483"><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="H19E5585BCD674D95B2FC115B70008500"><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="HA7D4FCC24E4645C390344F910604D139"><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="H92A661A310F04A398241A615D2F0FCFB" section-type="subsequent-section"><enum>135.</enum><header display-inline="yes-display-inline">Deferrals</header>
<subsection commented="no" display-inline="no-display-inline" id="HF87949D105064861A7B035B2068F606F"><enum>(a)</enum><header display-inline="yes-display-inline">FISL</header><text display-inline="yes-display-inline">Section 427(a)(2)(C)(iii) (<external-xref legal-doc="usc" parsable-cite="usc/20/1077">20 U.S.C.
1077(a)(2)(C)(iii)</external-xref>) is amended by striking <quote>not in excess
of 3 years</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2B6C97A3E9BC4FC888ACCA50493E265F"><enum>(b)</enum><header display-inline="yes-display-inline">Interest subsidies</header><text display-inline="yes-display-inline">Section 428(b)(1)(M)(iv) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C.
1078(b)(1)(M)(iv)</external-xref>) is amended by striking <quote>not in excess
of 3 years</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7A384FEC5962459F972CBD348C2CCD98"><enum>(c)</enum><header display-inline="yes-display-inline">Direct loans</header><text display-inline="yes-display-inline">Section 455(f)(2)(D) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C.
1087e(f)(2)(D)</external-xref>) is amended by striking <quote>not in excess of
3 years</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1458CF16929B4E089372A4861FEF2176"><enum>(d)</enum><header display-inline="yes-display-inline">Perkins</header><text display-inline="yes-display-inline">Section 464(c)(2)(A)(iv) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087dd">20 U.S.C.
1087dd(c)(2)(A)(iv)</external-xref>) is amended by striking <quote>not in
excess of 3 years</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD971025D59264FCA967DEBAF0073F0A7" section-type="subsequent-section"><enum>136.</enum><header display-inline="yes-display-inline">Maximum repayment period</header>
<subsection commented="no" display-inline="no-display-inline" id="H99392F336FC24414B59B89EEA8B0ED62"><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="HBF47548B0978458C85908193081E9D48" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H0659DAECFD4A4468A2FD95308C115C9"><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="H615AA483F0D6407895DDD3313CE5D6BC"><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="H3E73BC9DD7944986006708F886C61DA9"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HE565060EB6EB460D80DAE310FDA2D882"><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="HED3E5A1A449D440C85FB00B39BA58803" 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="H6E6D24268F0C495FAF87BA12D39198B3" 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="H9C4623DF69884D38A9AB5536A91534F8"><enum>(b)</enum><header display-inline="yes-display-inline">Technical correction</header><text display-inline="yes-display-inline">Section 455(d)(1)(C) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C.
1087e(d)(1)(C)</external-xref>) is amended by striking
<quote>428(b)(9)(A)(v)</quote> and inserting
<quote>428(b)(9)(A)(iv)</quote>.</text>
</subsection></section><section id="HE041DA9B18094985B790482783CBB121"><enum>137.</enum><header>Deferral of
loan repayment following active duty</header><text display-inline="no-display-inline">Part G of title IV is amended by inserting
after section 484B (<external-xref legal-doc="usc" parsable-cite="usc/20/1091b">20 U.S.C. 1091b</external-xref>) the following new
section:</text>
<quoted-block act-name="Higher" id="H7CE9925CF6CC4CA8AF2F6C041E52C3F1">
<section id="H0573CC6AB52946BEBEE0B20090A836F"><enum>484C.</enum><header>Deferral of
loan repayment following active duty</header>
<subsection id="H889C9DA60F6B4DB9BB97A6861B1E3FA0"><enum>(a)</enum><header>Deferral of loan
repayment following active duty</header><text display-inline="yes-display-inline">In addition to any deferral of repayment of
a loan made under this title pursuant to section 428(b)(1)(M)(iii),
455(f)(2)(C), or 464(c)(2)(A)(ii), a borrower of a loan under this title who is
a member of the National Guard or other reserve component of the Armed Forces
of the United States, or a member of such Armed Forces in a retired status, is
called or ordered to active duty, and is currently enrolled, or was enrolled
within six months prior to the activation, in a program of instruction at an
eligible institution, shall be eligible for a deferment during the 13 months
following the conclusion of such service, except that a deferment under this
subsection shall expire upon the borrower’s return to enrolled student
status.</text>
</subsection><subsection commented="no" id="H9E612C73DB5F44B2BA3F75299D309E00"><enum>(b)</enum><header>Active
duty</header><text>Notwithstanding section 481(d), in this section, the term
<term>active duty</term> has the meaning given such term in
<external-xref legal-doc="usc" parsable-cite="usc/10/101">section
101(d)(1)</external-xref> of title 10, United States Code, except that such
term—</text>
<paragraph commented="no" id="H468C00991CCB4342A7F68B57866E5481"><enum>(1)</enum><text>does not include
active duty for training or attendance at a service school; but</text>
</paragraph><paragraph commented="no" id="H69560997AB83486D81F330E5E1E59E30"><enum>(2)</enum><text>includes, in the
case of members of the National Guard, active State
duty.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></part><part id="HDCF24CD5B10F490ABF00C7E70093D3FF"><enum>D</enum><header>Sustaining the
Perkins Loan Program</header>
<section id="H4F11653A70FE45BB9F396C07BFBA1E8C"><enum>141.</enum><header>Federal Perkins
Loans</header><text display-inline="no-display-inline">Section 461(b)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087aa">20 U.S.C.
1087aa(b)</external-xref>) is amended by adding at the end the following new
paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HDCA7995842C447D08C90580254C045B9" style="OLC">
<paragraph id="H304B854CC8F44EC693383D7951E1153E"><enum>(3)</enum><text>In addition to any
amounts appropriated pursuant to paragraph (1) or (2) of this subsection, there
shall be available to the Secretary for contributions to student loan funds
established under part E, from funds not otherwise appropriated, $100,000,000
for each of the fiscal years 2008 through 2012. The sum of the amount made
available under this subsection for any such fiscal year, plus the amount so
appropriated for such fiscal year, shall, for purposes of allocations under
section 462, be treated as the amount appropriated pursuant to section 461(b)
for such fiscal year.</text>
</paragraph><paragraph id="H89C2DBBD51AD48DEA1EFC57C99C2852B"><enum>(4)</enum><text display-inline="yes-display-inline">The authority to make contributions to
student loan funds under this part shall expire at the end of fiscal year
2012.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></part><enum>II</enum><header>Reducing the Cost
of College</header>
<section display-inline="no-display-inline" id="H4BFF4A31E40745DBB73FB968009066B9"><enum>201.</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="H2182723D87434E6C866C7CFDFE011775" style="OLC">
<section id="H021D7D470155482C91EFC6CED7E05EA0"><enum>131.</enum><header>Consumer
information and public accountability in higher education</header>
<subsection id="H76BA9A5E67E04F1F9B94A5F6C29230A0"><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="H6FB9BFA4024247F992EF2E00C2ACFE0"><enum>(1)</enum><text>shall identify the
data elements related to college costs 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="H2B75D7F4D1764193AE775C2385268300"><enum>(2)</enum><text>shall convene a
group of individuals with expertise the informational needs of prospective
college students and parents to—</text>
<subparagraph id="H970B49D0B6604995BD9C9055E25D1C58"><enum>(A)</enum><text>determine the
relevance of particular data elements to prospective students, enrolled
students, and families based upon the results of opinion research; and</text>
</subparagraph><subparagraph id="H4BE06ADFFDC441B2A6000088F62B2554"><enum>(B)</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="H97FB693E1B034EC99000A0C8D3874DB4"><enum>(3)</enum><text>shall ensure that
the redesigned COOL website—</text>
<subparagraph id="H24228559EC5E4B43A213F38F9C642C98"><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="HB24C5FBE015E42C6B90006595236BF50"><enum>(B)</enum><text>includes clear and
uniform information determined to be relevant to prospective students, enrolled
students, and families;</text>
</subparagraph><subparagraph id="HE39E38CEDBF345FBAC78E4A2C4864C00"><enum>(C)</enum><text>provides
comparable information, by ensuring that information is based on accepted
criteria and common definitions;</text>
</subparagraph><subparagraph id="H3D7096B081754DDD948C8CA7A191F113"><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="H6FB9BFA4024247F992EF2E00C2ACFE0" 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="H1697594B3F7949EB8C8C59681D7FAB80"><enum>(b)</enum><header>Data
Collection</header>
<paragraph id="H7219BF0981554AB29FC4D99D9740E1EA"><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 System in
order to inform consumers about institutions of higher education.</text>
</paragraph><paragraph id="HCC0DF555D6684F96B2F955BBD7E00FA"><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="H3C6ED7DA2BB54885BC742565CFC50060"><enum>(A)</enum><text>The tuition and
fees charged for a first-time, full-time undergraduate student.</text>
</subparagraph><subparagraph id="HD27C41DAE57E45309821CB78B0F621F8"><enum>(B)</enum><text>The room and board
charges for a first-time, full-time undergraduate student.</text>
</subparagraph><subparagraph id="H6719409B769F44DBBD75F9D0E4A4E800"><enum>(C)</enum><text>The cost of
attendance for a first-time, full-time undergraduate student, consistent with
the provisions of section 472.</text>
</subparagraph><subparagraph id="H81E11BB67FDD4A06BBE041931E03F104"><enum>(D)</enum><text>The average amount
of financial assistance (including grant assistance) received by a first-year,
full-time undergraduate student.</text>
</subparagraph><subparagraph id="H809B16D568A74C6F886C12D904D799EC"><enum>(E)</enum><text>The number and
percentage of first-time, full-time undergraduate students receiving financial
assistance (including grant assistance) described in each clause of
<internal-xref idref="H81E11BB67FDD4A06BBE041931E03F104" legis-path="131.(b)(2)(D)">subparagraph (D)</internal-xref>.</text>
</subparagraph><subparagraph id="H1199602C429849BEAD97371276DAB1F7"><enum>(F)</enum><text>Student enrollment
information, including information on the number and percentage of full-time
and part-time students, and the number and percentage of resident and
non-resident students.</text>
</subparagraph><subparagraph id="H58062B74C3224590908917E900AF6520"><enum>(G)</enum><text>Faculty-to-student
ratios.</text>
</subparagraph><subparagraph id="H2DAAB8E7DFCD4ACDB662BBBC90F1AC3"><enum>(H)</enum><text>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="H96E9BF832E8E4BE2938F264C9DA8BC23"><enum>(I)</enum><text>Graduation rates
calculated pursuant to section 485(a)(1)(L), including rates disaggregated by
gender, by each major racial and ethnic subgroup, and by income status, as
measured by receipt of Federal Pell Grants or Federal subsidized student
loans.</text>
</subparagraph><subparagraph id="H0639A30B4F414798BA00F98D98EFFF5C"><enum>(J)</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.</text>
</subparagraph><subparagraph id="HA0075DA33F954D379C69B69FAB5FE440"><enum>(K)</enum><text display-inline="yes-display-inline">The college affordability information
elements specified in
<internal-xref idref="HE0B0F19F143A4188A42FBCEDC890827" legis-path="131.(d)">subsection (d)</internal-xref>.</text>
</subparagraph></paragraph></subsection><subsection id="HA4BB5CB5648E4847B0968E00AA85504E"><enum>(c)</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="HE0B0F19F143A4188A42FBCEDC890827"><enum>(d)</enum><header>College
affordability information elements</header><text>The college affordability
information elements required by
<internal-xref idref="HA0075DA33F954D379C69B69FAB5FE440" legis-path="131.(b)(2)(K)">subsection (b)(2)(K)</internal-xref> shall include,
for each institution submitting data—</text>
<paragraph id="HCD25BB5EB4B540EDB690B8AA4500B6A1"><enum>(1)</enum><text>the sticker price
of the institution for the 5 most recent academic years; and</text>
</paragraph><paragraph id="HBBFFB9E0CC7E45F4A679F2C1680047C"><enum>(2)</enum><text>the net tuition of
the institution for the most recent academic year for which data are
available.</text>
</paragraph></subsection><subsection id="HB959638405A44158861330D02F042154"><enum>(e)</enum><header>Outcomes and
Actions</header>
<paragraph id="HBF862F8493E94A3BA700A100C8327C5E"><enum>(1)</enum><header>Response from
institution</header><text display-inline="yes-display-inline">Effective on June
30, 2011, 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 higher education price index over the same time period
shall provide a report to the Secretary. Such report shall be published by the
Secretary on the COOL website, and shall include—</text>
<subparagraph id="H62E9442B93C1417FA55877D08B19F404"><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="H54DC85644C5A41C3A26E3CD2C405AD55"><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="H11B4EFFDDBAF46D9AAAF8846634E0035"><enum>(2)</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="HBF862F8493E94A3BA700A100C8327C5E" legis-path="131.(e)(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 higher education price index for 2 consecutive academic years
subsequent to the 3-year interval used under
<internal-xref idref="HBF862F8493E94A3BA700A100C8327C5E" legis-path="131.(e)(1)">paragraph (1)</internal-xref>, the Secretary shall
place the institution on affordability alert status.</text>
</paragraph><paragraph commented="no" id="H95A7CD2B835448369313D7CBAB432830"><enum>(3)</enum><header>Exemptions</header><text display-inline="yes-display-inline">Notwithstanding
<internal-xref idref="H11B4EFFDDBAF46D9AAAF8846634E0035" legis-path="131.(e)(2)">paragraph (2)</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="HBF862F8493E94A3BA700A100C8327C5E" legis-path="131.(e)(1)">paragraph (1)</internal-xref>—</text>
<subparagraph commented="no" id="H9BFA6DA0000F48AE820900DD9B6D4F7F"><enum>(A)</enum><text display-inline="yes-display-inline">with respect the class of institutions
described in
<internal-xref idref="HA1F9DEDF46E9489D004600C70000B01E" legis-path="131.(e)(5)">paragraph (5)</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 commented="no" id="H1E86EB713D554F2A0038AA33A6D2AF61"><enum>(B)</enum><text display-inline="yes-display-inline">the institution has a percentage change in
its sticker price computed under
<internal-xref idref="HBF862F8493E94A3BA700A100C8327C5E" legis-path="131.(e)(1)">paragraph (1)</internal-xref> that exceeds two times
the rate of change in the higher education price index over the same time
period, but the dollar amount of the sticker price increase is less than
$500.</text>
</subparagraph></paragraph><paragraph id="H4EAB73EC701D4A618F52C0CF04E72643"><enum>(4)</enum><header>Information to
state agencies</header><text>Any institution that reports under
<internal-xref idref="H54DC85644C5A41C3A26E3CD2C405AD55" legis-path="131.(e)(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="HA1F9DEDF46E9489D004600C70000B01E"><enum>(5)</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="H17A7B74E58404976B372DCBB0C8B365"><enum>(6)</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="H33C040737ED941F9BB007552EAA25542"><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 subsection (c) and pursuant
to the program participation agreement entered into under section 487.</text>
</subsection><subsection id="H34F530E20CC74A38BE15E24FECC7BBBE"><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="H9F83509696AF462B8133DC1BBC2DF444"><enum>(h)</enum><header>Definitions</header><text>For
the purposes of this section:</text>
<paragraph id="HB58053E1AE0E4AA197000482F1F98200"><enum>(1)</enum><header>Net
tuition</header><text display-inline="yes-display-inline">The term <term>net
tuition</term> means the average tuition and fees charged to a full-time
undergraduate student by an institution of higher education for any academic
year, minus the average grant amount received by such a student for such
academic year.</text>
</paragraph><paragraph id="H6BCF37D3CF28400AA120EB7490CEF1B7"><enum>(2)</enum><header>Sticker
price</header><text display-inline="yes-display-inline">The term <term>sticker
price</term> means the average published tuition and fees charged to a
first-time, full-time, undergraduate student by an institution of higher
education for any academic year.</text>
</paragraph><paragraph id="HB6B65ADEEABB460A813500D501E5A6CD"><enum>(3)</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></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H484CB7771DF7434594F9006C9D30BDE1"><enum>202.</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>
(<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001 et
seq.</external-xref>) is amended by adding at the end the following
title:</text>
<quoted-block act-name="Higher" id="H1ED859557E3A40ADA7A079A0316B7445">
<title id="HC5DCD4931AEB49E59D1B34A457F41736"><enum>VIII</enum><header>Restraining
Tuition Increases</header>
<part id="H8EC10C28E37F496FAF2FD9E67B8D7DA4"><enum>A</enum><header>Cooperative
Education</header>
<section id="H3E36BE2AAA494A01AE6EC56D7E674897"><enum>801.</enum><header>Definition of
cooperative education</header><text display-inline="no-display-inline">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>
</section><section id="HE6B842354E964BA7A565AE8F58772901"><enum>802.</enum><header>Authorization
of appropriations; reservations</header>
<subsection commented="no" id="H89C5168701AF4D90ADD25349563000B4"><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="H5AF9B5DA5054408CA0D6EB09B3EE2400"><enum>(b)</enum><header>Reservations</header><text>Of
the amount appropriated for each such fiscal year—</text>
<paragraph id="HBEF75104AEDC476A8B50E87FBF5979"><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
<internal-xref idref="H0835136B00F34863A3CE0621CD6B16B" legis-path="803.(a)(1)(A)">section 803(a)(1)(A)</internal-xref> for cooperative
education under
<internal-xref idref="H8A0270A082B2418B84003D665B875C66" legis-path="803.">section 803</internal-xref>;</text>
</paragraph><paragraph id="HF65CEAB7027F4CD3BDEEE0001609FE81"><enum>(2)</enum><text>not less than 25
percent shall be available for carrying out grants to institutions of higher
education described in
<internal-xref idref="HF52DDB2BC9B24D66BB990081A6DA6C7" legis-path="803.(a)(1)(B)">section 803(a)(1)(B)</internal-xref> for cooperative
education under
<internal-xref idref="H8A0270A082B2418B84003D665B875C66" legis-path="803.">section 803</internal-xref>;</text>
</paragraph><paragraph id="H5593BF52DB64444F9C0000BE31665CC0"><enum>(3)</enum><text>not more than 11
percent shall be available for demonstration projects under paragraph (1) of
<internal-xref idref="H19FB689F3B9247F6B0CCCAC4529184F8" legis-path="804.(a)">section 804(a)</internal-xref>;</text>
</paragraph><paragraph id="HDFA3152A91754917AACE18AE67416101"><enum>(4)</enum><text>not more than 11
percent shall be available for training and resource centers under paragraph
(2) of
<internal-xref idref="H19FB689F3B9247F6B0CCCAC4529184F8" legis-path="804.(a)">section 804(a)</internal-xref>; and</text>
</paragraph><paragraph id="HC281F539135C419AAF5B04695C4F4719"><enum>(5)</enum><text>not more than 3
percent shall be available for research under paragraph (3) of
<internal-xref idref="H19FB689F3B9247F6B0CCCAC4529184F8" legis-path="804.(a)">section 804(a)</internal-xref>.</text>
</paragraph></subsection><subsection id="H27DD8224568E46CBA4B193B00031092C"><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="HE616FE4A726E45C8A9B0D456B300F31"><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="H8A0270A082B2418B84003D665B875C66"><enum>803.</enum><header>Grants for
cooperative education</header>
<subsection id="H3C9AF75667264234AE867E2DA6485781"><enum>(a)</enum><header>Grants
authorized</header>
<paragraph id="HD4846F9FEC1B416388737BAC09FAFA00"><enum>(1)</enum><header>In
general</header><text>The Secretary is authorized—</text>
<subparagraph id="H0835136B00F34863A3CE0621CD6B16B"><enum>(A)</enum><text display-inline="yes-display-inline">from the amount available under
<internal-xref idref="HBEF75104AEDC476A8B50E87FBF5979" legis-path="802.(b)(1)">section 802(b)(1)</internal-xref> 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 previously received a grant under this paragraph 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="HF52DDB2BC9B24D66BB990081A6DA6C7"><enum>(B)</enum><text>from the amount
available under
<internal-xref idref="HF65CEAB7027F4CD3BDEEE0001609FE81" legis-path="802.(b)(2)">section 802(b)(2)</internal-xref> 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="HFAA78E3C74164B88BFD585BFA27BB100"><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="H1307CCB12A454B439F9882BBB0DB2B9E"><enum>(3)</enum><header>Amount of
grants</header>
<subparagraph id="H62B5AA30A80B43EBACC71F7E3FDEDFAD"><enum>(A)</enum><text>The amount of each
grant awarded pursuant to
<internal-xref idref="H0835136B00F34863A3CE0621CD6B16B" legis-path="803.(a)(1)(A)">paragraph (1)(A)</internal-xref> to any institution
of higher education or combination of such institutions in any fiscal year
shall not exceed $500,000.</text>
</subparagraph><subparagraph id="H4F8A85E612304EE3B373B4B3FF1D8587"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HD1DA1F3E4BAC48BF913BF671548C0005"><enum>(i)</enum><text>Except as provided in
<internal-xref idref="HE2A834C0AA674679931D7D3F4C9264BD" legis-path="803.(a)(3)(B)(ii)">clauses (ii)</internal-xref> and
<internal-xref idref="HBDF0EDC2919744FDA5DB5E4FA8862020" legis-path="803.(a)(3)(B)(iii)">(iii)</internal-xref>, the Secretary shall
award grants in each fiscal year to each institution of higher education
described in
<internal-xref idref="HF52DDB2BC9B24D66BB990081A6DA6C7" legis-path="803.(a)(1)(B)">paragraph (1)(B)</internal-xref> that has an
application approved under
<internal-xref idref="H5C3EC9AA96104F8BBD512B54B6D1BFF8" legis-path="803.(b)">subsection (b)</internal-xref> in an amount which bears
the same ratio to the amount reserved pursuant to
<internal-xref idref="HF65CEAB7027F4CD3BDEEE0001609FE81" legis-path="802.(b)(2)">section 802(b)(2)</internal-xref> 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
<internal-xref idref="H455A86954590458797D2307FB477E956" legis-path="804.">section 804</internal-xref> 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="HE2A834C0AA674679931D7D3F4C9264BD" 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="HBDF0EDC2919744FDA5DB5E4FA8862020" indent="up1"><enum>(iii)</enum><text>The minimum annual grant amount
which an institution of higher education is eligible to receive under
<internal-xref idref="HF52DDB2BC9B24D66BB990081A6DA6C7" legis-path="803.(a)(1)(B)">paragraph (1)(B)</internal-xref> is $1,000 and the
maximum annual grant amount is $75,000.</text>
</clause></subparagraph></paragraph><paragraph id="H4E6D5384126F46D888C6B8D9DF4E3141"><enum>(4)</enum><header>Limitation</header><text>The
Secretary shall not award grants pursuant to
<internal-xref idref="H0835136B00F34863A3CE0621CD6B16B" legis-path="803.(a)(1)(A)">paragraphs (1)(A)</internal-xref> and
<internal-xref idref="HF52DDB2BC9B24D66BB990081A6DA6C7" legis-path="803.(a)(1)(B)">(1)(B)</internal-xref> to the same institution of
higher education or combination of such institution in any one fiscal
year.</text>
</paragraph><paragraph id="HEF207FDD4E4948C5BC81BEF3AD1B256F"><enum>(5)</enum><header>Uses</header><text>Grants
under
<internal-xref idref="HF52DDB2BC9B24D66BB990081A6DA6C7" legis-path="803.(a)(1)(B)">paragraph (1)(B)</internal-xref> shall be used
exclusively—</text>
<subparagraph id="H158AD68F5E4E4FF88CA17DF4D0FBFFF3"><enum>(A)</enum><text>to expand the
quality and participation of a cooperative education program;</text>
</subparagraph><subparagraph id="H9D37B292E5054F1981F292051233C8A6"><enum>(B)</enum><text>for outreach in
new curricular areas; and</text>
</subparagraph><subparagraph id="HFE6A35D208E643AF9C1BCD27EA388E69"><enum>(C)</enum><text>for outreach to
potential participants including underrepresented and nontraditional
populations.</text>
</subparagraph></paragraph></subsection><subsection id="H5C3EC9AA96104F8BBD512B54B6D1BFF8"><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="H4A3D41456A4B436D9B2F2786A191D00"><enum>(1)</enum><text>set forth the
program or activities for which a grant is authorized under this
section;</text>
</paragraph><paragraph id="HD28B8FC5ECE74AE78916CE4D82DD7321"><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="H16729BCE45B14C55A65407BA1EE200D5"><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="H6915A2F467884FFCAA94652F7D9E46A6"><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
<internal-xref idref="HF0F61E59B0B24F2DA704A40037250124" legis-path="803.(c)(1)">subsection (c)(1)</internal-xref> 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="HDE598D84EFAF4AA69C684CBDEFCCCFC"><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="H55C2325209EF42D588A415A0C9000147"><enum>(6)</enum><text>provide that the
applicant will—</text>
<subparagraph commented="no" id="H8859551E5B354999B001832DF4791DD4"><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="H8D953231235D4A9CAFF02CEFC6357171"><enum>(i)</enum><text>the number of
unduplicated student applicants in the cooperative education program;</text>
</clause><clause commented="no" id="HB9EFA7C29B404A1B90DD553239E33F94"><enum>(ii)</enum><text>the number of
unduplicated students placed in cooperative education jobs;</text>
</clause><clause commented="no" id="HC20423BCB0AD482B80DD99F854F79611"><enum>(iii)</enum><text>the number of
employers who have hired cooperative education students;</text>
</clause><clause commented="no" id="H7B5F1FAB87244CEF9E001C608F009B30"><enum>(iv)</enum><text>the average
income for students derived from working in cooperative education jobs;
and</text>
</clause><clause commented="no" id="HE2E9587F0FD446188EED70DC697D3C05"><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="HEAFD0F70B1364B8CBFA4BE9C65CCCDC"><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="HFAEFA9F2EF6348A08C38BC8CCEE9633C"><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="HBE0D63D98AAC440891C9936B2D9C7577"><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="HDA1A7236C4444F419F2C870333A7621D"><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="H84BFA8250CD643D7B9B086EF75CF1D1B"><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="H7C92B8864862432B00A7E553E82CB8F6"><enum>(11)</enum><text>demonstrate a
commitment to serving all underserved populations; and</text>
</paragraph><paragraph id="HBC877E4C15E648BF8404E896E3A0BDC"><enum>(12)</enum><text>include such other
information as is essential to carry out the provisions of this title.</text>
</paragraph></subsection><subsection id="HE2C53D979DD3403E9B8E506E05D715B6"><enum>(c)</enum><header>Duration of
grants; Federal share</header>
<paragraph id="HF0F61E59B0B24F2DA704A40037250124"><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="H8FD624652D6A467192C5B9ADE546A0ED"><enum>(A)</enum><text>a grant pursuant
to
<internal-xref idref="H0835136B00F34863A3CE0621CD6B16B" legis-path="803.(a)(1)(A)">subsection (a)(1)(A)</internal-xref> for more than 5
fiscal years; or</text>
</subparagraph><subparagraph id="HCCC0D8136A9F47BF9BF609D69E46B456"><enum>(B)</enum><text>a grant pursuant
to
<internal-xref idref="HF52DDB2BC9B24D66BB990081A6DA6C7" legis-path="803.(a)(1)(B)">subsection (a)(1)(B)</internal-xref> for more than 5
fiscal years.</text>
</subparagraph></paragraph><paragraph id="HC4095CAB6B92449E97111D7597C4FC55"><enum>(2)</enum><header>Federal
share</header><text>The Federal share of a grant under
<internal-xref idref="H0835136B00F34863A3CE0621CD6B16B" legis-path="803.(a)(1)(A)">section 803(a)(1)(A)</internal-xref> may not
exceed—</text>
<subparagraph id="HDFF6DE972AA240FF89D504005E7354E6"><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="H1F4A15A0C04349DFB18FD915A3A498D6"><enum>(B)</enum><text>70 percent of such
cost in the second such year;</text>
</subparagraph><subparagraph id="HD7E673DAF2014683AFABD64EB877E6F9"><enum>(C)</enum><text>55 percent of such
cost in the third such year;</text>
</subparagraph><subparagraph id="HCDA7CD7294234F9E99F02B00B733B399"><enum>(D)</enum><text>40 percent of such
cost in the fourth such year; and</text>
</subparagraph><subparagraph id="H07C14932DCDF4DBCB2DEF17600C328F5"><enum>(E)</enum><text>25 percent of such
cost in the fifth such year.</text>
</subparagraph></paragraph><paragraph id="HE96E973DDE4D47F7895D871B34424CF9"><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="H6A9E3E906313407BA621509FDB085609"><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="H455A86954590458797D2307FB477E956"><enum>804.</enum><header>Demonstration
and innovation projects; training and resource centers; and research</header>
<subsection id="H19FB689F3B9247F6B0CCCAC4529184F8"><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—</text>
<paragraph id="H15838C38E91E4205BD4ED9B2389913FC"><enum>(1)</enum><text>from the amounts
available in each fiscal year under
<internal-xref idref="H5593BF52DB64444F9C0000BE31665CC0" legis-path="802.(b)(3)">section 802(b)(3)</internal-xref>, for the conduct of
demonstration projects designed to demonstrate or determine the feasibility or
value of innovative methods of cooperative education;</text>
</paragraph><paragraph id="H843F70B0735049F8ADCC3D9DE3B44523"><enum>(2)</enum><text display-inline="yes-display-inline">from the amounts available in each fiscal
year under
<internal-xref idref="HDFA3152A91754917AACE18AE67416101" legis-path="802.(b)(4)">section 802(b)(4)</internal-xref>, for the conduct of
training and resource centers designed to—</text>
<subparagraph id="H38DB11681D294A8C809800C6817E909D"><enum>(A)</enum><text>train personnel in
the field of cooperative education;</text>
</subparagraph><subparagraph id="H2BDA6F6A1DE54755BA61DFCB07121AD"><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="HC814D7D79154423E9D54980021AE136C"><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="HFEE6884ED3C743A29033523D43F916C8"><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="H7556CF8213F8453C83DAF61C9797005E"><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—</text>
<clause id="HC17BF3F3EF0B4B9296D9B8EF8982B6B"><enum>(i)</enum><text>assist the
institutions other than the comprehensive cooperative education institution to
develop and expand an existing program of cooperative education; or</text>
</clause><clause id="HA70AAAF40BCF4A6D90F98740880E700"><enum>(ii)</enum><text>establish and
improve or expand comprehensive cooperative education programs; and</text>
</clause></subparagraph><subparagraph id="HF4648B224D2943E282F9D59800707CE6"><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; and</text>
</subparagraph></paragraph><paragraph id="HFF35E28ECAE0455E9C813F33C9A0C1A8"><enum>(3)</enum><text>from the amounts
available in each fiscal year under
<internal-xref idref="HC281F539135C419AAF5B04695C4F4719" legis-path="802.(b)(5)">section 802(b)(5)</internal-xref>, for the conduct of
research relating to cooperative education.</text>
</paragraph></subsection><subsection id="H1C36D29A1268439C804BDA5D5090020"><enum>(b)</enum><header>Administrative
provision</header>
<paragraph id="H7566D010FB404C8EA1C12B18E40565D"><enum>(1)</enum><header>In
general</header><text>To carry out this section, the Secretary may—</text>
<subparagraph id="HB10E4FBAE92844CD95907C811D768E4D"><enum>(A)</enum><text>make grants to or
contracts with institutions of higher education, or combinations of such
institutions; and</text>
</subparagraph><subparagraph id="HED72DD3AB66447E1ABF85B51C369A989"><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="H562A9679E56A4C0EBDEDC45EDE1F00FB"><enum>(2)</enum><header>Limitation</header>
<subparagraph id="HF387906E490B447C95C58594987B2648"><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 make grants or enter into contracts described in
<internal-xref idref="HB10E4FBAE92844CD95907C811D768E4D" legis-path="804.(b)(1)(A)">paragraph (1)(A)</internal-xref>.</text>
</subparagraph><subparagraph id="H4BCBADBCD8244A1BB1B8A2ABDAF205BE"><enum>(B)</enum><text display-inline="yes-display-inline">The Secretary may use not more than 3
percent of the amount appropriated to carry out this section in each fiscal
year to make grants or enter into contracts described in
<internal-xref idref="HED72DD3AB66447E1ABF85B51C369A989" legis-path="804.(b)(1)(B)">paragraph (1)(B)</internal-xref>.</text>
</subparagraph></paragraph></subsection><subsection id="H8B25280D7EDE4D2691594F2807625DE2"><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 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></part><part id="H43BC059B42EA48DCB56EE62BC19E3ED3"><enum>B</enum><header>Low
Tuition</header>
<section display-inline="no-display-inline" id="HF8AF1EBD6DE544C290C32005EB57EC2"><enum>811.</enum><header>Incentives and
rewards for low tuition</header>
<subsection id="H16A69E8CA64B486F90002F2D96A7D41F"><enum>(a)</enum><header>Rewards for low
tuition</header>
<paragraph id="H8AA311B056554CD199B2F691140000E4"><enum>(1)</enum><header>Competitive
grants</header><text>The Secretary shall award grants on a competitive basis to
institutions of higher education that, for academic year 2008–2009 or any
succeeding academic year, have an annual net tuition increase (expressed as a
percentage) for the most recent academic year for which satisfactory data is
available that is equal to or less than the percentage change in the higher
education price index for such academic year.</text>
</paragraph><paragraph id="H6FC404D20BCF4BAFB2A86317947C783"><enum>(2)</enum><header>Use of
funds</header><text display-inline="yes-display-inline">Funds awarded to an
institution of higher education under
<internal-xref idref="H8AA311B056554CD199B2F691140000E4" legis-path="811.(a)(1)">paragraph (1)</internal-xref> shall be distributed by
the institution in the form of need-based grant aid to students who are
eligible for Federal Pell Grants, except that no student shall receive an
amount under this section that would cause the amount of total financial aid
received by such student to exceed the cost of attendance of the
institution.</text>
</paragraph></subsection><subsection id="H0E9C44B36A914E579500ABCE00405557"><enum>(b)</enum><header>Rewards for
guaranteed tuition</header>
<paragraph id="H80C1970904284D8D8D3D195DE575DB59"><enum>(1)</enum><header>Bonus</header><text display-inline="yes-display-inline">For each institution of higher education
that the Secretary of Education determines complies with the requirements of
<internal-xref idref="H20DEB1FB8FAA48789F681C89AA47B6AF" legis-path="811.(b)(2)">paragraph (2)</internal-xref> or
<internal-xref idref="H7D4919CAF83146C1AAAFFE99F5C63438" legis-path="811.(b)(3)">(3)</internal-xref> of this subsection, the Secretary
shall provide to such institution a bonus amount. Such institution shall award
the bonus amount first to students who are eligible for Federal Pell Grants who
were in attendance at the institution during the award year that such
institution satisfied the eligibility criteria for maintaining low tuition and
fees, then to students who are eligible for Federal Pell Grants who were not in
attendance at the institution during such award year, in the form of need-based
aid.</text>
</paragraph><paragraph id="H20DEB1FB8FAA48789F681C89AA47B6AF"><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 charged to an
undergraduate student will not exceed—</text>
<subparagraph id="H6D082FB880374FE38EB553A36EB9B72B"><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="H074CDD12E703423FA3FA1DD24FF505B5"><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="H7D4919CAF83146C1AAAFFE99F5C63438"><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 charged to an undergraduate student will not exceed—</text>
<subparagraph id="H555C173CBB944A1DB0B8AECF8520698D"><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="H44A03E486F284E1EB6B1DCB7AB8EC9E3"><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="H296813A23FFA42C583832D37AFF529FA"><enum>(c)</enum><header>Maintaining
affordable tuition</header>
<paragraph id="H85A7DBDDB7164EB892CAA9A6CC671766"><enum>(1)</enum><header>Institution
reports</header><text>If an institution of higher education has an increase in
annual net tuition (expressed as a percentage), for the most recent academic
year for which satisfactory data is available, that is greater than the
percentage increase in the higher education price index for such academic year,
the institution is required to submit to the Secretary the following
information, within 6 months of such determination—</text>
<subparagraph id="H1EA932C517474ADFB486E3C8BD5E7FE1"><enum>(A)</enum><text>a report on the
factors contributing to the increase in the institution’s costs and the
increase in net tuition and fees charged to students, including identification
of the major areas in the institution’s budget with the greatest cost
increases;</text>
</subparagraph><subparagraph id="HDA83BF8F06984F7980DB6184943B5B19"><enum>(B)</enum><text>the institution’s
3 most recent Form 990s submitted to the Internal Revenue Service, as required
under <external-xref legal-doc="usc" parsable-cite="usc/26/6033">section
6033</external-xref> of the Internal Revenue Code of 1986;</text>
</subparagraph><subparagraph id="H2992276EAF03437082D3169D79497C1C"><enum>(C)</enum><text>a description of
the major areas of expenditures in the institution’s budget with the greatest
increase for such academic year; and</text>
</subparagraph><subparagraph id="H37A0372DCB604C93A7941BE16436803E"><enum>(D)</enum><text>voluntary actions
being taken by the institution to reduce net tuition.</text>
</subparagraph></paragraph><paragraph id="H40694E3AEED84B8D9D674D43B757F2C"><enum>(2)</enum><header>Report to
Congress</header><text>The Secretary shall compile the information submitted
under this subsection and shall provide to the relevant authorizing committees
an annual report relating to such information.</text>
</paragraph></subsection><subsection commented="no" id="H1D29010A7B55481982A2098B33BD783F"><enum>(d)</enum><header>Priority</header><text display-inline="yes-display-inline">In awarding incentives and rewards under
this section, the Secretary shall give priority to institutions of higher
education with the lowest annual net tuition increase for the most recent
academic year for which satisfactory data is available, when compared with
other institutions of higher education with annual net tuition increases that
are equal to or less than the higher education price index for such academic
year.</text>
</subsection><subsection display-inline="no-display-inline" id="H04C1AA7A9A104E6F00D2B5306E772EDC"><enum>(e)</enum><header>Exemptions</header><text>An
institution shall still be eligible to receive rewards under subsections (a)
and (b), and will not be penalized under subsection (c) if, for any 2-year
interval for which net tuition is computed under such subsections—</text>
<paragraph id="HC645B329173C47A48BC1B3329746A778"><enum>(1)</enum><text>with respect to
the class of institutions described in section 131(d)(5) to which the
institution belongs, the net tuition of the institution is in the lowest
quartile of institutions within such class, as determined by the Secretary,
during the last year of such 2-year interval; or</text>
</paragraph><paragraph id="HE9840DCB36F545D1BDC6BB1EDCE6F723"><enum>(2)</enum><text>the institution
has a percentage change in its net tuition computed under subsection (a) or (c)
that exceeds the rate of change in the higher education price index (as defined
in section 401B(d)) over the same time period, but the dollar amount of the net
tuition increase is less than $500.</text>
</paragraph></subsection><subsection id="H2DD5152F24734CEA878BCEA018D806D6"><enum>(f)</enum><header>Definitions</header>
<paragraph display-inline="no-display-inline" id="H125B0359F22E4D2B9200F16BF698965F"><enum>(1)</enum><header>Net
tuition</header><text>The term <term>net tuition</term> has the same meaning as
provided in section 131(h).</text>
</paragraph><paragraph id="H49933B55F8D94E70B39D05FD479FE63"><enum>(2)</enum><header>Higher education
price index</header><text>The term <term>higher education price index</term>
has the same meaning as provided in section 131(h).</text>
</paragraph></subsection><subsection id="HCCEA2E088041489E98DB8F5688552B9B"><enum>(g)</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="H60A4410C046949F1928469B9D4475D22"><enum>(h)</enum><header>Sunset</header><text>The
authority to carry out this section shall expire at the end of fiscal year
2012.</text>
</subsection></section></part>.
<enum>III</enum><header>Ensuring a
Highly Qualified Teacher in Every Classroom</header>
<part id="H281A0B2BB20740228CD908A6708D8710"><enum>A</enum><header>TEACH
Grants</header>
<section display-inline="no-display-inline" id="H2E07D25F62094974BD05C6A4122C3698" section-type="subsequent-section"><enum>301.</enum><header>TEACH
Grants</header><text display-inline="no-display-inline">Part A of title IV
(<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a et
seq.</external-xref>) is amended by adding at the end the following new
subpart:</text>
<quoted-block display-inline="no-display-inline" id="HE440D790CE1D49BCB26F5F71FD885BCA" style="OLC">
<subpart id="HB9EE9A3989BD44769F3F1E623266026D"><enum>9</enum><header>TEACH
Grants</header>
<section id="HEB3DDE60B2BF4383A37C04145024A9E6"><enum>420L.</enum><header>Program
established</header>
<subsection id="HD6114281BAD74048ABE61DC5B44500D6"><enum>(a)</enum><header>Program
Authority</header>
<paragraph id="H265346886905404ABC7F9BAED09176D5"><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="H7A2CC7F11ED04DD68DA9F259D5C29D2D" legis-path="420M.">section 420M</internal-xref>, and who qualifies—</text>
<subparagraph id="H793346BA1C4B40F9B48405C4E4333679"><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="H5515FB106E2F42F1003724D6AA2DA0"><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="H793346BA1C4B40F9B48405C4E4333679" 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="H92449BDB0F4D478ABA9B613294B9BBC2"><enum>(2)</enum><header>Reference</header><text>Grants
made under—</text>
<subparagraph id="HAC4B1E50FA4542A68ED7C068D2CC1A1"><enum>(A)</enum><text><internal-xref idref="H793346BA1C4B40F9B48405C4E4333679" 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="H3EA8BB8E09AA4713BAD326D61E83DB61"><enum>(B)</enum><text display-inline="yes-display-inline"><internal-xref idref="H5515FB106E2F42F1003724D6AA2DA0" legis-path="420L.(a)(1)(B)">paragraph
(1)(B)</internal-xref> shall be known as Bonus TEACH Grants.</text>
</subparagraph></paragraph></subsection><subsection id="H8A99D7E806814718A0611745A4B39BFC"><enum>(b)</enum><header>Payment
methodology</header>
<paragraph id="H3A72E1A33939400AAB843D4F2411EA6F"><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="HD6114281BAD74048ABE61DC5B44500D6" 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="HC2B4B8488B244E1AA5F5DAD41C49FC2B"><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="H3A72E1A33939400AAB843D4F2411EA6F" legis-path="420L.(b)(1)">paragraph (1)</internal-xref>.</text>
</paragraph><paragraph id="H32C68A6F0B2848119FD6CCB6D736F08"><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="H9317A0E23A2B4DEDA6C2A672FF4F06D7"><enum>(c)</enum><header>Reductions in
amount</header>
<paragraph id="H1695AA10B62048A59F2758FE789EDD49"><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="H8234EF13B5C04D4A8FCEFA45EDA697B9"><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="H4EE58BA8E2814FD58947708534A5CFC1"><enum>(d)</enum><header>Period of
eligibility for grants</header>
<paragraph id="HCF7D6A208B4F4E80AE009DE86C5E5054"><enum>(1)</enum><header>Undergraduate
and post-baccalaureate students</header><text display-inline="yes-display-inline">The period during which an undergraduate or
post-baccalaureate student may receive grants under this subpart shall be the
period required for the completion of the first undergraduate baccalaureate or
post-baccalaureate course of study being pursued by that student at the
institution at which the student is in attendance except that—</text>
<subparagraph id="HE5F304A6C82848EB93AF831D8B29E200"><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="HBE956AE851EA46E79561C9F808EB275F" legis-path="420L.(d)(3)">paragraph (3)</internal-xref> shall not be counted for
the purpose of this paragraph; and</text>
</subparagraph><subparagraph id="H076EA531569D41C18F6BDCE52E002340"><enum>(B)</enum><text display-inline="yes-display-inline">the total amount that a student may receive
under this subpart for undergraduate or post-baccalaureate 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="H6FD3F620FA684E2900498693B575C400"><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="HBE956AE851EA46E79561C9F808EB275F"><enum>(3)</enum><header>Remedial course;
study abroad</header><text display-inline="yes-display-inline">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 or
post-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="H7A2CC7F11ED04DD68DA9F259D5C29D2D"><enum>420M.</enum><header>Eligibility;
applications</header>
<subsection id="H674A79E558A2484C98CF7D36A0C77670"><enum>(a)</enum><header>Applications;
demonstration of eligibility</header>
<paragraph id="HDF3F5538F84E4B1EA2E71F8D00D93C02"><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="HDF4642D47D3445FDA78B9BBA08258374"><enum>(2)</enum><header>Demonstration of
TEACH Grant eligibility</header><text>Each application submitted under
<internal-xref idref="HDF3F5538F84E4B1EA2E71F8D00D93C02" 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="H5B7F895A94514B29ACC4A6C36FFBEF4E"><enum>(A)</enum><text>if the applicant
is an enrolled student—</text>
<clause id="HB134CFFD556D4465974998180093E742"><enum>(i)</enum><text>the student is an
eligible student for purposes of section 484;</text>
</clause><clause id="H089BFF870C454BCB9C9288DB34D51842"><enum>(ii)</enum><text>the
student—</text>
<subclause id="HED878839F5EF4BDD8D5049F3405121BB"><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="H2B828342394646C1A21800A94C1D8517"><enum>(II)</enum><text display-inline="yes-display-inline">displayed high academic aptitude by
receiving a score above the 75th percentile on at least one of the batteries in
an undergraduate, post-baccalaureate, or graduate school admissions test;
and</text>
</subclause></clause><clause id="H91EAD5DA4BE346B5B15598F55707259F"><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="H2E54FAA04CD74F4EA261289C765900DE"><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="H3FE9D487F5224490B349E2A6DA31BCBE"><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="HA3FEB2E74C004DE59999C7EF53788FB8"><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="HE27806EF69034CD1BD9FD657E73908D2"><enum>(3)</enum><header>Demonstration of
Bonus TEACH Grant eligibility</header><text>Each application submitted under
<internal-xref idref="HDF3F5538F84E4B1EA2E71F8D00D93C02" legis-path="420M.(a)(1)">paragraph (1)</internal-xref> for a Bonus TEACH Grant
shall contain such information as is necessary to demonstrate that the
applicant is—</text>
<subparagraph commented="no" id="H7ED0A55E2A954ED98E80CCAB5E8E62F7"><enum>(A)</enum><text>eligible for, and
has applied for, a TEACH Grant; and</text>
</subparagraph><subparagraph commented="no" id="HCDE41F3D8CF843C394BB057751D0DCA3"><enum>(B)</enum><text display-inline="yes-display-inline">a student enrolled in a qualified teacher
preparation program, as defined in section 420N.</text>
</subparagraph></paragraph></subsection><subsection id="H47EDF3C435EA431DAA50C300C09DE7C9"><enum>(b)</enum><header>Agreements To
serve</header><text>Each application under
<internal-xref idref="H674A79E558A2484C98CF7D36A0C77670" legis-path="420M.(a)">subsection (a)</internal-xref> shall contain or be
accompanied by an agreement by the applicant that—</text>
<paragraph id="H59E025CCFCA74C0182231293770050A9"><enum>(1)</enum><text display-inline="yes-display-inline">the applicant will—</text>
<subparagraph id="HEBBC1E5ECC3A409E982C43281546542E"><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="H68B27ABD046D4104927F6B54D5B754D2"><enum>(B)</enum><text>teach in a school
described in section 465(a)(2)(A);</text>
</subparagraph><subparagraph id="H9D561BF3DBD24677BDE1793D5FA0D434"><enum>(C)</enum><text>with respect to an
applicant for—</text>
<clause id="H3F2F85580FBD49ABAA2CC7794D4E009D"><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="HF18BC8AE82984DEE892024741500B43D"><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="H8722EEC6BFF2424FB50022E917B77BE4"><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="H9140583A73CE452AB4435302D25ECBA0"><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="HFE449199B0BD4CCBBA00F3E66C142875"><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="HAF27308614524FDFA47C07C84D711EFC" legis-path="420M.(c)">subsection (c)</internal-xref> and the regulations
thereunder.</text>
</paragraph></subsection><subsection id="HAF27308614524FDFA47C07C84D711EFC"><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="H47EDF3C435EA431DAA50C300C09DE7C9" 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="HE733058FC4D5484E8CF0E64E07022010"><enum>420N.</enum><header>Definitions</header><text display-inline="no-display-inline">For the purposes of this subpart:</text>
<paragraph display-inline="no-display-inline" id="HFE212DFB79DC41BB99AF4E9C387CAB10"><enum>(1)</enum><header>Eligible
institution</header><text>The term <quote>eligible institution</quote> means an
institution of higher education, as defined in section 102, that the Secretary
determines—</text>
<subparagraph id="HF7698D5E23E745C58684AA00854C22E8"><enum>(A)</enum><text display-inline="yes-display-inline">provides high quality teacher preparation
and professional development services, including extensive clinical experience
as a part of pre-service preparation;</text>
</subparagraph><subparagraph id="H7DD08386BF2E4E1B8718A01F1D12E5D1"><enum>(B)</enum><text>is financially
sound;</text>
</subparagraph><subparagraph id="H2AB77DD8C85E4719A99198BF8407E79C"><enum>(C)</enum><text>provides
pedagogical course work, or assistance in the provision of such coursework,
including the monitoring of student performance, and formal instruction related
to the theory and practices of teaching; and</text>
</subparagraph><subparagraph id="HC1A9C10F4AD34AA100DDC895BCDD8940"><enum>(D)</enum><text>provides
supervision and support services to teachers, or assistance in the provision of
such services, including mentoring focused on developing effective teaching
skills and strategies.</text>
</subparagraph></paragraph><paragraph id="H5C0443793E1D4FC5BE5E39BFA8673BE3"><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 and teachers described
in subparagraph (A) or (B) of section 420M(a)(2) (referred to jointly in this
paragraph as <quote>teacher candidates</quote>) that—</text>
<subparagraph commented="no" id="HCD0774277BE242F9812E791BC6F8889D"><enum>(A)</enum><text>recruits and
prepares teacher candidates who major in science, technology fields, special
education, foreign language, engineering, or mathematics disciplines to become
certified as elementary and secondary teachers in those disciplines, special
education teachers, or teachers of English Language Learners, with the goals of
improving teacher knowledge and effectiveness and increasing elementary and
secondary student academic achievement;</text>
</subparagraph><subparagraph commented="no" id="HCD9976B2660841DA86A429B9013419E"><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 and
schools;</text>
</subparagraph><subparagraph commented="no" id="H89F383336BD84335AFA97F54F2A07620"><enum>(C)</enum><text display-inline="yes-display-inline">offers a baccalaureate degree,
post-baccalaureate teacher credential, or graduate degree with a concurrent
teacher certification to teacher candidates;</text>
</subparagraph><subparagraph commented="no" id="H96A9B971587640B8A432D323B092A67E"><enum>(D)</enum><text display-inline="yes-display-inline">is implemented in coordination with the
faculty of the relevant departments of the institution of higher
education;</text>
</subparagraph><subparagraph commented="no" id="H7F4C169D453F4049B82DF3C2D8FF8C23"><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 the disciplines described in
<internal-xref idref="HCD0774277BE242F9812E791BC6F8889D" legis-path="420N.(2)(A)">subparagraph (A)</internal-xref>;</text>
</subparagraph><subparagraph commented="no" id="HF9269E2796AF471998F3B9A9CF2625A1"><enum>(F)</enum><text display-inline="yes-display-inline">provides teacher candidates with—</text>
<clause commented="no" id="H3FBE4B4DECB248E3A7C6046C7F9DD7E0"><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="H7613DA10A2844834B2FB9B4B5E8D4E00"><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="H49279688AC274ABDBA95C1763F76118F"><enum>(iii)</enum><text>other related
support practices while the teacher candidates are participating in the
program, and after such candidates graduate from the institution of higher
education and are employed as teachers;</text>
</clause></subparagraph><subparagraph commented="no" id="H2767C71A7D834CD9B85BC2E42EF0801D"><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="H89B970A5AFD147DDA75283ABFB3114E1"><enum>(H)</enum><text display-inline="yes-display-inline">focuses on increasing the number of
teachers in the disciplines described in
<internal-xref idref="HCD0774277BE242F9812E791BC6F8889D" legis-path="420N.(2)(A)">subparagraph (A)</internal-xref>; and</text>
</subparagraph><subparagraph commented="no" id="HD10D16452AD84DD9B924EE125DF1C57"><enum>(I)</enum><text>encourages
individuals from underrepresented populations to enter into the teaching
profession.</text>
</subparagraph></paragraph><paragraph id="H5F6ECC937AC742FCBC626B002DA3BE34"><enum>(3)</enum><header>Post-baccalaureate</header><text>The
term <quote>post-baccalaureate</quote> means a program of instruction that does
not lead to a graduate degree, and that consists of courses required by a State
in order for the student to receive a professional certification or licensing
credential that is required for employment as a teacher in an elementary school
or secondary school in that State, except that such term shall not include any
program of instruction offered by an institution of higher education that
offers a baccalaureate degree in education.</text>
</paragraph></section><section commented="no" id="H3ABC949C742A46B580D7D7DDA9057963"><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
applicant.</text>
</section></subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</section></part><part id="H2CF4737253F7410FA7DBA95D1E5E7E04"><enum>B</enum><header>Centers of
Excellence</header>
<section display-inline="no-display-inline" id="H1DF54DC259604122A28FEB00FB576B77"><enum>311.</enum><header>Centers of
excellence</header><text display-inline="no-display-inline">Title II
(<external-xref legal-doc="usc" parsable-cite="usc/20/1021">20 U.S.C. 1021 et
seq.</external-xref>) is amended by adding at the end the following:</text>
<quoted-block act-name="Higher" id="HBD71E697E3F746F6B4CA43217F2F2621">
<part id="H2EC4F08D87F34B0ABAE2ECCC86447BD"><enum>C</enum><header>Centers of
Excellence</header>
<section id="H502455AC486C469C8944965F5BEC956"><enum>231.</enum><header>Definitions</header><text display-inline="no-display-inline">As used in this part:</text>
<paragraph id="HBE179D145FA34DA19E03067EC85E9D4F"><enum>(1)</enum><header>Eligible
institution</header><text>The term <term>eligible institution</term>
means—</text>
<subparagraph id="H2A0477C8AE8E47DE8F156B389481DF5C"><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="H9B1F0A8D4643461DA407C80882C8DDC0"><enum>(i)</enum><text>a
part B institution (as defined in section 322);</text>
</clause><clause id="HE451E1428124448497D609AC1401F200"><enum>(ii)</enum><text>a
Hispanic-serving institution (as defined in section 502);</text>
</clause><clause id="H653C14B0EA4B48748D43D3E5F1B4982D"><enum>(iii)</enum><text>a Tribal College
or University (as defined in section 316);</text>
</clause><clause id="H0E979E791FA44BC1A589A630507D7400"><enum>(iv)</enum><text>an Alaska
Native-serving institution (as defined in section 317(b)); or</text>
</clause><clause id="H060859255FB24F32AC9D00611B133800"><enum>(v)</enum><text>a
Native Hawaiian-serving institution (as defined in section 317(b));</text>
</clause></subparagraph><subparagraph id="HB14E99F04CE04D6CA8C8EBD4CE700BD"><enum>(B)</enum><text>a consortium of
institutions described in subparagraph (A); or</text>
</subparagraph><subparagraph id="H0EE346B2B4E74CA5AB01AB73E1BE1C6"><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="H7F16EE2CFA8844808EF911A2F5EDA60"><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="H5E86515CCCFA40B900EDADFADC4C5815"><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="H7A6B64BAAD824E77B0C4E14D43ADD4B5"><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="H154E56D5CBCB4D89A18617F67EFF35AC"><enum>232.</enum><header>Centers of
excellence</header>
<subsection id="HE66828F606BB402F8144B51E6E478FFD"><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="HC2F9CFF1F0864C4DAD484102B1BD999C"><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="H29E39D3C21EC4F44AFC62926E8E1B1A8"><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="HDC7B2CB89188450995769D00A0A22BCE"><enum>(A)</enum><text>retraining
faculty; and</text>
</subparagraph><subparagraph id="H1B7344E82F004191A8539543329D7D17"><enum>(B)</enum><text>designing (or
redesigning) teacher preparation programs that—</text>
<clause id="HE249397E012940B480271E4008002B3C"><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="H7DB798E9E84F44ECA7E9C73DB315AF56"><enum>(ii)</enum><text>promote strong
teaching skills.</text>
</clause></subparagraph></paragraph><paragraph id="H63AD907407E443E8B4EA3962E63150EC"><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="H23C65E54287B4C2A891CA2CD57D3BEC4"><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="HCD9D92144E91483095F2B2FC78003143"><enum>(A)</enum><text>teacher or
principal mentoring from exemplary teachers or principals; or</text>
</subparagraph><subparagraph id="H131837BF05DD483DA558EE9E348D14"><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="H6D0EA976966F4C5FBA63C8EBCA3B57F8"><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="H9DC3273717B34838A492698135728467"><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="H0CC00E46CB834B48B1BDB343F0AA125F"><enum>(6)</enum><text>Activities
authorized under sections 202, 203, and 204.</text>
</paragraph></subsection><subsection id="HD5B162FA36F14D34ABFBC44E58C6E012"><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 as the Secretary may require.</text>
</subsection><subsection id="HA6643DCE695645DAA64C20AD9BB0BD73"><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="HAE3024B0418B4030913EB728D17C73BD"><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="HD123A90D3A6248EDAB1E4900A324DD15"><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="HB7C292339FA945BEA71583771740D00"><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>Leveraging Funds
to Increase College Access</header>
<part id="HFDC85EB1A64244E7AE631791F5D00CD"><enum>A</enum><header>Strengthening
Historically Black Colleges and Universities and Minority-Serving
Institutions</header>
<section id="HF1BED149E3C6401EBE879D24C5528635"><enum>401.</enum><header>Investment in
Historically Black Colleges and Universities and Minority-Serving
Institution</header><text display-inline="no-display-inline">Title IV is
amended by adding at the end the following new part:</text>
<quoted-block display-inline="no-display-inline" id="H5ACD1F6E80774837B76F7B9C751D777D" style="OLC">
<part id="HBDDEE18801A34B7FB95D5F0032FE7690"><enum>I</enum><header>Strengthening
Historically Black Colleges and Universities and Other Minority-Serving
Institutions</header>
<section display-inline="no-display-inline" id="HCF117C7BEC7544889047A5908CA59483" section-type="subsequent-section"><enum>499A.</enum><header>Investment in
Historically Black Colleges and Universities and Other Minority-Serving
Institution</header>
<subsection id="H7225D7019C7E4BE0A1FF1CC157BE25B3"><enum>(a)</enum><header>Eligible
institution</header><text>An institution of higher education is eligible to
receive funds from the amounts made available under this section if such
institution is—</text>
<paragraph id="H3F39572B6EFB45B4004D3F84DEEDB5D"><enum>(1)</enum><text>a part B
institution (as defined in section 322 (<external-xref legal-doc="usc" parsable-cite="usc/20/1061">20 U.S.C. 1061</external-xref>));</text>
</paragraph><paragraph id="H2EE93406621E4549A9E56379FCD8C27F"><enum>(2)</enum><text>a Hispanic-serving
institution (as defined in section 502 (<external-xref legal-doc="usc" parsable-cite="usc/20/1101a">20 U.S.C. 1101a</external-xref>));</text>
</paragraph><paragraph id="H785AFBDFE4794C17AA69886ED7EC9643"><enum>(3)</enum><text>a Tribal College
or University (as defined in section 316 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059c">20 U.S.C. 1059c</external-xref>));</text>
</paragraph><paragraph id="H768C44F540884DBABBF50330FA13B908"><enum>(4)</enum><text>an Alaska
Native-serving institution or a Native Hawaiian-serving institution (as defined
in section 317(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1059d">20 U.S.C. 1059d(b)</external-xref>));</text>
</paragraph><paragraph id="HFD51B4979F4C4A27919532977D3E8DEB"><enum>(5)</enum><text display-inline="yes-display-inline">a Predominantly Black Institution (as
defined in
<internal-xref idref="H3DB7C65BB4BE46E696468CE0002B8B1E" legis-path="499A.(c)">subsection (c)</internal-xref>); or</text>
</paragraph><paragraph id="H125FE8D36CD94AB9A3C311779205DB7"><enum>(6)</enum><text>an Asian and
Pacific Islander-serving institution (as defined in
<internal-xref idref="H3DB7C65BB4BE46E696468CE0002B8B1E" legis-path="499A.(c)">subsection (c)</internal-xref>).</text>
</paragraph></subsection><subsection id="H1C7F8BB366294834B5D777CFB54607D"><enum>(b)</enum><header>New Investment of
Funds</header>
<paragraph id="HBBD5FD2511BC40A1804012DE7EFE90FB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">There shall be
available to the Secretary to carry out this section, from funds not otherwise
appropriated, $100,000,000 for each of the fiscal years 2008 through 2012. The
authority to carry out this section shall expire at the end of fiscal year
2012.</text>
</paragraph><paragraph id="HD3ABE461A158441F93D8006DA5B153A9"><enum>(2)</enum><header>Allocation and
allotment</header>
<subparagraph id="H723564EE2BEC4CBB98FA361997B10089"><enum>(A)</enum><header>In
general</header><text>Of the amounts made available under
<internal-xref idref="HBBD5FD2511BC40A1804012DE7EFE90FB" legis-path="499A.(b)(1)">paragraph (1)</internal-xref> for any fiscal
year—</text>
<clause id="HE2AC2AE36EB34CDD985B4EDDB6BCBF85"><enum>(i)</enum><text>40
percent shall be available for allocation under
<internal-xref idref="HCE989D088C0245B39119337EA0090077" legis-path="499A.(b)(2)(B)">subparagraph (B)</internal-xref>;</text>
</clause><clause id="H0B210499279C436C99879DECAAF96BA"><enum>(ii)</enum><text display-inline="yes-display-inline">40 percent shall be available for
allocation under
<internal-xref idref="HFD59DFECC3CD41BB97A986306721362B" legis-path="499A.(b)(2)(C)">subparagraph (C)</internal-xref>; and</text>
</clause><clause id="H0BAB756339B14C43B742E9F91792354E"><enum>(iii)</enum><text display-inline="yes-display-inline">20 percent shall be available for
allocation under
<internal-xref idref="H6A52D3E1EE714008BFA2A7C863A6CE63" legis-path="499A.(b)(2)(D)">subparagraph (D)</internal-xref>.</text>
</clause></subparagraph><subparagraph id="HCE989D088C0245B39119337EA0090077"><enum>(B)</enum><header>HSI STEM and
articulation programs</header><text display-inline="yes-display-inline">The
amount made available for allocation under this subparagraph by
<internal-xref idref="HE2AC2AE36EB34CDD985B4EDDB6BCBF85" legis-path="499A.(b)(2)(A)(i)">subparagraph (A)(i)</internal-xref> for any
fiscal year shall be available for Hispanic-serving Institutions for activities
described in section 503, with a priority given to applications that
propose—</text>
<clause id="H1D0D6CBB456349D0ADB3552EADA0BB86"><enum>(i)</enum><text>to
increase the number of Hispanic and other low income students attaining degrees
in the fields of science, technology, engineering and mathematics; and</text>
</clause><clause id="H5C79E5CAB7AF42C083CA5DB3001BADC8"><enum>(ii)</enum><text>to develop model
transfer and articulation agreements between 2-year Hispanic-serving
institutions and 4-year institutions in such fields.</text>
</clause></subparagraph><subparagraph id="HFD59DFECC3CD41BB97A986306721362B"><enum>(C)</enum><header>Allocation and
allotment HBCUs and PBIs</header><text>From the amount made available for
allocation under this subparagraph by
<internal-xref idref="H0B210499279C436C99879DECAAF96BA" legis-path="499A.(b)(2)(A)(ii)">subparagraph (A)(ii)</internal-xref> for any
fiscal year—</text>
<clause id="H379A0D9681EF44FB9C233B5F38EFA195"><enum>(i)</enum><text display-inline="yes-display-inline">$34,000,000 shall be available to eligible
institutions described in
<internal-xref idref="H3F39572B6EFB45B4004D3F84DEEDB5D" legis-path="499A.(a)(1)">subsection (a)(1)</internal-xref> and shall be made
available as grants under section 323 and allotted among such institutions
under section 324, treating such amount, plus the amount appropriated for such
fiscal year in a regular or supplemental appropriation Act to carry out part B
of title III, as the amount appropriated to carry out part B of title III for
purposes of allotments under section 324, for use by such institutions with a
priority for—</text>
<subclause id="H6E579C292EB043FB80F2D2A9EAD7612"><enum>(I)</enum><text>activities
described in paragraphs (1), (2), (4), (5), and (10) of section 323(a);
and</text>
</subclause><subclause id="H754568BE6C19478AB3BF3C29432158CD"><enum>(II)</enum><text>other activities,
consistent with the institution’s comprehensive plan and designed to increase
the institution’s capacity to prepare students for careers in the physical and
natural sciences, mathematics, computer science and information technology and
sciences, engineering, language instruction in the less-commonly taught
languages and international affairs, and nursing and allied health professions;
and</text>
</subclause></clause><clause id="H8ED734FA55AA4A928EEE2B10D913C8E6"><enum>(ii)</enum><text display-inline="yes-display-inline">$6,000,000 shall be available to eligible
institutions described in
<internal-xref idref="HFD51B4979F4C4A27919532977D3E8DEB" legis-path="499A.(a)(5)">subsection (a)(5)</internal-xref> and shall be
available for a competitive grant program to award 10 grants of $600,000
annually for programs in the following areas: science, technology, engineering,
or mathematics (STEM); health education; internationalization or globalization;
teacher preparation; or improving educational outcomes of African American
males.</text>
</clause></subparagraph><subparagraph id="H6A52D3E1EE714008BFA2A7C863A6CE63"><enum>(D)</enum><header>Allocation and
allotment to other minority-serving institutions</header><text display-inline="yes-display-inline">From the amount made available for
allocation under this subparagraph by
<internal-xref idref="H0BAB756339B14C43B742E9F91792354E" legis-path="499A.(b)(2)(A)(iii)">subparagraph (A)(iii)</internal-xref> for any
fiscal year (in this subparagraph referred to as the <quote>allocable
amount</quote>)—</text>
<clause display-inline="no-display-inline" id="HA90065417CB54F81B92D38FD2D57F47F"><enum>(i)</enum><text display-inline="yes-display-inline">60 percent of the allocable amount for such
fiscal year shall be available to eligible institutions described in
<internal-xref idref="H785AFBDFE4794C17AA69886ED7EC9643" legis-path="499A.(a)(3)">subsection (a)(3)</internal-xref> and shall be made
available as grants under section 316, treating such 60 percent of the
allocable amount as part of the amount appropriated for such fiscal year in a
regular or supplemental appropriation Act to carry out such section, and using
such 60 percent for purposes described in subsection (c) of such
section;</text>
</clause><clause display-inline="no-display-inline" id="HB16B986ED17844E1A53B99AEC576E800"><enum>(ii)</enum><text display-inline="yes-display-inline">30 percent of the allocable amount for such
fiscal year shall be available to eligible institutions described in
<internal-xref idref="H768C44F540884DBABBF50330FA13B908" legis-path="499A.(a)(4)">subsection (a)(4)</internal-xref> and shall be made
available as grants under section 317, treating such 30 percent of the
allocable amount as part of the amount appropriated for such fiscal year in a
regular or supplemental appropriation Act to carry out such section and using
such 60 percent for purposes described in subsection (a) of such section;
and</text>
</clause><clause id="H3E55792401E1448BA747A6AE97828DB"><enum>(iii)</enum><text display-inline="yes-display-inline">10 percent of the allocable amount for such
fiscal year shall be available to eligible institutions described in
<internal-xref idref="H125FE8D36CD94AB9A3C311779205DB7" legis-path="499A.(a)(6)">subsection (a)(6)</internal-xref> for activities
described in section 311(c).</text>
</clause></subparagraph></paragraph></subsection><subsection id="H3DB7C65BB4BE46E696468CE0002B8B1E"><enum>(c)</enum><header>Definitions</header>
<paragraph id="H90C65E915B064DB1B774975273ECD0AA"><enum>(1)</enum><header>Predominantly
Black institution</header><text>The term <term>Predominantly Black
institution</term> means an institution of higher education that—</text>
<subparagraph id="H0E33A669B7EF4EF98845204C6DDAC01C"><enum>(A)</enum><text>has an enrollment
of needy undergraduate students as required and defined by
<internal-xref idref="H75E59A821C93444CAB22B04E532D0088" legis-path="499A.(c)(2)">paragraph (2)</internal-xref>;</text>
</subparagraph><subparagraph id="HC26A42D4FD0245F691A036FC279E24EA"><enum>(B)</enum><text display-inline="yes-display-inline">has an average educational and general
expenditure which is low, per full-time equivalent undergraduate student in
comparison with the average educational and general expenditure per full-time
equivalent undergraduate student of institutions that offer similar
instruction, except that the Secretary may apply the waiver requirements
described in section 392(b) to this subparagraph in the same manner as the
Secretary applies the waiver requirements to section 312(b)(1)(B);</text>
</subparagraph><subparagraph id="HD5A38AA64918441BA9B044DD2BB71D31"><enum>(C)</enum><text>has an enrollment
of undergraduate students—</text>
<clause id="H494788D1898E465CB150DBE94EEDE9B"><enum>(i)</enum><text>that is at least 40
percent Black American students;</text>
</clause><clause display-inline="no-display-inline" id="HAF203A81E2424BF79200461B3340D867"><enum>(ii)</enum><text>that is at least
1,000 undergraduate students;</text>
</clause><clause id="HFE85462A85AD430B8400480113BE15C3"><enum>(iii)</enum><text display-inline="yes-display-inline">of which not less than 50 percent of the
undergraduate students enrolled at the institution are low-income individuals
or first-generation college students (as that term is defined in section
402A(g)); and</text>
</clause><clause id="HEEDAA451536A4B548B63FBC0D850B200"><enum>(iv)</enum><text display-inline="yes-display-inline">of which not less than 50 percent of the
undergraduate students are enrolled in an educational program leading to a
bachelor’s or associate’s degree that the institution is licensed to award by
the State in which it is located;</text>
</clause></subparagraph><subparagraph id="H7D551C4B009E4B02BCB764285C46DEEF"><enum>(D)</enum><text>is legally
authorized to provide, and provides within the State, an educational program
for which the institution of higher education awards a bachelors degree, or in
the case of a junior or community college, an associate’s degree;</text>
</subparagraph><subparagraph id="H19104F0BFC99483498AB234EB25EF5C2"><enum>(E)</enum><text>is accredited by a
nationally recognized accrediting agency or association determined by the
Secretary to be a reliable authority as to the quality of training offered, or
is, according to such an agency or association, making reasonable progress
toward accreditation; and</text>
</subparagraph><subparagraph id="H7534E7F79D1B4A0B8478A07C22D8B460"><enum>(F)</enum><text>is not receiving
assistance under part B of title III.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H75E59A821C93444CAB22B04E532D0088"><enum>(2)</enum><header>Enrollment of
needy students</header><text display-inline="yes-display-inline">The term
<term>enrollment of needy students</term> means the enrollment at an eligible
institution with respect to which not less than 50 percent of the undergraduate
students enrolled in an academic program leading to a degree—</text>
<subparagraph id="HB0BB5DDAACEE4D2985DD48E1D5487FEF"><enum>(A)</enum><text display-inline="yes-display-inline">in the second fiscal year preceding the
fiscal year for which the determination is made, were Federal Pell Grant
recipients for such year;</text>
</subparagraph><subparagraph id="HB2AC7ABD91734798B85FFAC6360003CF"><enum>(B)</enum><text display-inline="yes-display-inline">come from families that receive benefits
under a means-tested Federal benefits program (as defined in
<internal-xref idref="H42CCE0AB304241428ED10048D96B2B78" legis-path="499A.(c)(4)">paragraph (4)</internal-xref>);</text>
</subparagraph><subparagraph id="H9864E3B4B47F4BC09D953571AAB59CF5"><enum>(C)</enum><text display-inline="yes-display-inline">attended a public or nonprofit private
secondary school—</text>
<clause id="HDD9DF6009AF6482593006C7E896C87F6"><enum>(i)</enum><text>that is in the
school district of a local educational agency that was eligible for assistance
under part A of title I of the Elementary and Secondary Education Act of 1965
for any year during which the student attended such secondary school;
and</text>
</clause><clause id="H019C0F7F4BFB4819ADD14000BE748502"><enum>(ii)</enum><text>which for the
purpose of this paragraph and for that year was 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 such Act exceeds 30
percent of the total enrollment of such school; or</text>
</clause></subparagraph><subparagraph id="HFB00D148EA7E406ABC2058397443AB7C"><enum>(D)</enum><text>are
first-generation college students (as that term is defined in section 402A(g)),
and a majority of such first-generation college students are low-income
individuals.</text>
</subparagraph></paragraph><paragraph id="H0C6EFD4AE70648749B5CFE7EDE93A860"><enum>(3)</enum><header>Low-income
individual</header><text display-inline="yes-display-inline">The term
<term>low-income individual</term> has the meaning given such term in section
402A(g).</text>
</paragraph><paragraph id="H42CCE0AB304241428ED10048D96B2B78"><enum>(4)</enum><header>Means-tested
Federal benefit program</header><text display-inline="yes-display-inline">The
term <term>means-tested Federal benefit program</term> means a program of the
Federal Government, other than a program under title IV, in which eligibility
for the programs’ benefits, or the amount of such benefits, or both, are
determined on the basis of income or resources of the individual or family
seeking the benefit.</text>
</paragraph><paragraph id="H8C47D6DD1EBA4258A900D1A14AAA89F"><enum>(5)</enum><header>Asian American
and Pacific Islander-serving institution</header><text display-inline="yes-display-inline">The term <term>Asian American and Pacific
Islander-serving institution</term> means an institution of higher education
that—</text>
<subparagraph id="HB511128FE4E5427CA2E946FB65F67D"><enum>(A)</enum><text>is an eligible
institution under section 312(b); and</text>
</subparagraph><subparagraph id="HA0F68514384B465EB6B913F6C2226335"><enum>(B)</enum><text>at the time of
application, has an enrollment of undergraduate students that is at least 10
percent Asian American and Pacific Islander students.</text>
</subparagraph></paragraph><paragraph id="H3BFC0503D129461F8B57278D51E19ECA"><enum>(6)</enum><header>Asian
American</header><text>The term <term>Asian American</term> has the meaning
given the term <term>Asian</term> in the Office of Management and Budget's
Standards for Maintaining, Collecting, and Presenting Federal Data on Race and
Ethnicity as published on October 30, 1997 (62 Fed. Reg. 58789).</text>
</paragraph><paragraph id="H06C3A9A523BE42CCB48D952D84731DEE"><enum>(7)</enum><header>Pacific
Islander</header><text>The term <term>Pacific Islander</term> has the meaning
given the term <term>Native Hawaiian</term> or <term>Other Pacific
Islander</term> in such Standards for Maintaining, Collecting, and Presenting
Federal Data on Race and Ethnicity.</text>
</paragraph></subsection><subsection id="HDF858DF72F8647E6BF69D1B37F37B0DC"><enum>(d)</enum><header>Termination of
Authority</header><text>The authority to carry out this section expires at the
end of fiscal year
2012.</text>
</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</section></part><part id="H2BAF94A19FD34E0EA917EE72F27E7822"><enum>B</enum><header>College Access
Challenge grants</header>
<section display-inline="no-display-inline" id="H53D46EACE1A44396B621388D059CCAAC" section-type="subsequent-section"><enum>411.</enum><header>College Access
Challenge grants</header>
<subsection id="H37B43A438D2E488BB3FE4CC892737660"><enum>(a)</enum><header>Challenge grant
program established</header>
<paragraph id="H1B3C6C19FD3C4A14AB90AA093679697C"><enum>(1)</enum><header>Program
established</header><text display-inline="yes-display-inline">The Secretary
shall establish a program to award matching grants 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="H355A0B8DF90F487E987200CB60DF148B"><enum>(A)</enum><text>providing
need-based grants to eligible students;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H9D41A6197C15486387BB1B8204851300"><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="H8E6638E842494627A1292500DA38B4D7"><enum>(C)</enum><text>conducting
outreach programs to encourage eligible students to pursue higher
education.</text>
</subparagraph></paragraph><paragraph commented="no" id="H9D7A065594FF41B3B63C85C0A9DE4246"><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="H03DB9FF0EB36499ABEB1E88859D7DAD1"><enum>(3)</enum><header>Grant
amounts</header>
<subparagraph id="H482546ABBC3D476983F07C9603D37F35"><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 the lesser
of—</text>
<clause id="H5064E1AD6A84489DA091140025FD1C8E"><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 with which the philanthropic organization
is associated; or</text>
</clause><clause commented="no" id="H7E1BF81DD8D841D5A16152AE06DC9500"><enum>(ii)</enum><text>the maximum grant
amount established by the Secretary by regulation, pursuant to
<internal-xref idref="H1BABD73126684064A2F5E78DD366F46D" legis-path="411.(f)">subsection (f)</internal-xref>.</text>
</clause></subparagraph><subparagraph id="H49BB7B557AF946A58F8E82F58CB679A9"><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="H482546ABBC3D476983F07C9603D37F35" legis-path="411.(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="H1FB063BDC26845F987B55BD63C4800E7"><enum>(b)</enum><header>Uses of
Grant</header>
<paragraph id="H149B7EDD523B4B9FA925ADD36208B02"><enum>(1)</enum><header>In
general</header><text>A philanthropic organization receiving a grant under this
section shall—</text>
<subparagraph id="H0E641BAFD54444C18DAA296BD25DEF00"><enum>(A)</enum><text>provide grants to
eligible students; and</text>
</subparagraph><subparagraph id="HC099A29B583B4F92B2C299A96509A59E"><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="HE146AE7BE3494616937979C34057BC49" legis-path="411.(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="HBA5F3D5C88DE4E7FA1FFDFBFD5354160" legis-path="411.(c)">subsection (c)</internal-xref>.</text>
</subparagraph></paragraph><paragraph id="H452B196E24FF4CD4951994859600F303"><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="HBA5F3D5C88DE4E7FA1FFDFBFD5354160"><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="H4EE38CA26E1F44C382F8CDD5577B359D"><enum>(1)</enum><text>A
description of an eligible consortia that meets the requirements of
<internal-xref idref="H62876FBF4DAC44BC86BBC93F00AFD7DA" legis-path="411.(d)">subsection (d)</internal-xref>, with which the
philanthropic organization is affiliated, in accordance with
<internal-xref idref="H753A649E852044349548804F15FAF431" legis-path="411.(g)">subsection (g)</internal-xref>.</text>
</paragraph><paragraph id="HCBB6DAA31AEA47A4A20298DBDD070331"><enum>(2)</enum><text>A
detailed description of—</text>
<subparagraph id="HE146AE7BE3494616937979C34057BC49"><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="HDE27C074B9E94A268953F7753787219E"><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="H183CD703ECE046AFADD9477DDC74CB74"><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="H971E7D30983544FEA079C9121B6140AD"><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="H48291790254C4FF3884B1645E6A66465"><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="HEB898BF6E2334A969B24701BB8B2E06B"><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="H62876FBF4DAC44BC86BBC93F00AFD7DA"><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="H0DF979FB736E499ABCCA3EC81DD9384F"><enum>(1)</enum><text>be a partnership
of mulitple entities that have agreed to work together to carry out this
section, including—</text>
<subparagraph id="H25ED1F1365294976A4B7191EBE5952BE"><enum>(A)</enum><text>such philanthropic
organization, which shall serve as the manager of the consortia;</text>
</subparagraph><subparagraph id="HC69D0A0F4D8D43CD006366D6D2F04C96"><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="HD6FD69BDB5C04FE2A100DB00E4494437"><enum>(C)</enum><text>at the discretion
of the philanthropic organization described in
<internal-xref idref="H25ED1F1365294976A4B7191EBE5952BE" legis-path="411.(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="H7C7E7161CEF6496E838D58968600E0F1"><enum>(2)</enum><text>conduct activities
to assist eligible students with entering and remaining in college, which
include—</text>
<subparagraph id="H2AE4A9187043478AB99FED00C7A9D3C"><enum>(A)</enum><text>providing
need-based grants to eligible students;</text>
</subparagraph><subparagraph id="H8D60A2801A124D1CA4AEAE383C27CA82"><enum>(B)</enum><text display-inline="yes-display-inline">providing early notification to low-income
students of their potential eligibility for Federal financial aid (which may
include assisting students and families with filling out FAFSA forms), as well
as financial aid and other support available from the eligible
consortia;</text>
</subparagraph><subparagraph id="H2A927ED1791146E2B6CDE48007CB25F1"><enum>(C)</enum><text>encouraging
increased eligible student participation in higher education through mentoring
or outreach programs; and</text>
</subparagraph><subparagraph id="H62679ACC1DA544DDA9446293E0EFB303"><enum>(D)</enum><text>conducting
marketing and outreach efforts that are designed to—</text>
<clause id="H743BA6B0356E46F298008BAD78E093D3"><enum>(i)</enum><text>encourage full
participation of eligible students in the activities of the consortia that
carry out this section; and</text>
</clause><clause id="HCCE379F52FE144F690A3004E5BA35D1D"><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 commented="no" id="H1BABD73126684064A2F5E78DD366F46D"><enum>(e)</enum><header>Regulations</header><text>The
Secretary shall promulgate regulations to carry out this section. Such
regulations shall include—</text>
<paragraph commented="no" id="H900D3BC0402E4D77919400D157C9D4BD"><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="H1241F056C74D48C9B12C6079C7CE4D79"><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="H753A649E852044349548804F15FAF431"><enum>(f)</enum><header>Definitions</header><text display-inline="yes-display-inline">For the purposes of this section:</text>
<paragraph id="H77F54EC57EFE40C5B1D674435F25E8AE"><enum>(1)</enum><header>Eligible
student</header><text>The term <term>eligible student</term> means an
individual who—</text>
<subparagraph commented="no" id="H1C15C7D4605F4DBE9D1F68C93F3D6C43"><enum>(A)</enum><text>is a member of an
underserved population;</text>
</subparagraph><subparagraph commented="no" id="HF64E343C360C4363961FFDBEF1BCC69"><enum>(B)</enum><text>is enrolled—</text>
<clause commented="no" id="H811CEB2773624C6FB300E9E41D597B59"><enum>(i)</enum><text>in a secondary
school pursuing a high school diploma; or</text>
</clause><clause commented="no" id="H01AF69C1CF5B498DB22D4675E3F60000"><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="H517C064CAF3940BF99E54846F4DEEAF"><enum>(C)</enum><text>either—</text>
<clause id="HDAA5DCED10CC465D9138E0DC839022E0"><enum>(i)</enum><text>is
receiving, or has received, financial assistance or support services from the
consortium; or</text>
</clause><clause id="H3F2022D0EECA4AE60066FABDD1240097"><enum>(ii)</enum><text>meets 2 or more
of the following criteria:</text>
<subclause id="H1DB1E276F43B427FAAEA8739653EA320"><enum>(I)</enum><text>Has an expected
family contribution equal to zero (as described in section 479 of the Higher
Education Act of 1965) or a comparable alternative based upon the State's
approved criteria in section 415C(b)(4) of such Act.</text>
</subclause><subclause id="HEB7DC2C4C1AF4FBFA506EB1BCC9F7870"><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="H9C4319DFF1A345FE87787F155F457737"><enum>(III)</enum><text>Qualifies for
the State's maximum need-based undergraduate award.</text>
</subclause><subclause id="H896B04F2FE7E486081D03D538ED921E"><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="H1670569190A4472899A70E319E844F9"><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="H696C1C7C635548ECBADA9F28F29B9D94"><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="H3D9E5FAFE2184B8A9995C06734B21CA0"><enum>(B)</enum><text>that is not a
local educational agency or an institution of higher education;</text>
</subparagraph><subparagraph id="H9F75B79B4F7D4299AC6C44996B0255AA"><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="H9E4BFED2A3F749889663669FAE0439FC"><enum>(D)</enum><text>that is affiliated
with an eligible consortia (as defined in
<internal-xref idref="H62876FBF4DAC44BC86BBC93F00AFD7DA" legis-path="411.(d)">subsection (d)</internal-xref>) to carry out this section;
and</text>
</subparagraph><subparagraph id="H733902B64B0343F18CFF4008FCDE136"><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="H412402D77FE34C2DA96990BE00B0A5E3"><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="H299272C204BD4FAA97DD0062D365596"><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="H2975E31C726A4054B3DDA1176B347500"><enum>(g)</enum><header>Program
funding</header>
<paragraph id="H82907F566497438D89FB386DFDA300B7"><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="HEED02C7B766B4CA8B17E18A01E34FF4F"><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="H6C9241AD6F2C4E61A4CF9603CFB32ECC"><enum>(h)</enum><header>Sunset</header><text>The
authority to carry out this section shall expire at the end of fiscal year
2012.</text>
</subsection></section></part><part id="HCFB88BE4D2774901B6C8A5A1996569C5"><enum>C</enum><header>Upward
Bound</header>
<section display-inline="no-display-inline" id="HFDA334087A08424BB6229010A47425E9" section-type="subsequent-section"><enum>412.</enum><header>Upward
Bound</header>
<subsection display-inline="no-display-inline" id="H000D1655EF1D4974B02537072724EF00"><enum>(a)</enum><header>Absolute
priority prohibited in Upward Bound program</header><text>Section 402C
(<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-13">20 U.S.C.
1070a–13</external-xref>) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H99B377F54D3A47718432B1C5A41355AA" style="OLC">
<subsection id="H63BFBA48958B4D77B3B8DE03E000C892"><enum>(f)</enum><header>Absolute
priority prohibited in Upward Bound program</header><text>Except as otherwise
expressly provided by amendment to this section, the Secretary shall not
implement or enforce, and shall rescind, the absolute priority for Upward Bound
Program participant selection and evaluation published by the Department of
Education in the Federal Register on September 22, 2006 (71 Fed. Reg. 55447 et
seq.).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9D2CE7DCBC4B4BCF92C587AC649F2531"><enum>(b)</enum><header>Additional
funds</header><text>Section 402C is further amended by adding after subsection
(f) (as added by
<internal-xref idref="H000D1655EF1D4974B02537072724EF00" legis-path="105.(a)">subsection (a)</internal-xref>) the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HAEBDF81D29C74A5085CFA5EB4BC3F19" style="OLC">
<subsection id="HA6BE1C86D4544B5BBB920016CE6E6D"><enum>(g)</enum><header>Additional
funds</header>
<paragraph id="H6DD310491FB840AAAB53D8A47CB3244F"><enum>(1)</enum><header>Authorization
and appropriation</header><text>There are authorized to be appropriated, and
there are appropriated to the Secretary, from funds not otherwise appropriated,
$57,000,000 for each of the fiscal years 2008 through 2011 to carry out
<internal-xref idref="HA58A168C409E4A87B3898F2E4D1307F0" legis-path="(f)(2)">paragraph (2)</internal-xref>, except that any amounts that
remain unexpended for such purpose for each of such fiscal years may be
available for technical assistance and administration costs for the Upward
Bound program.</text>
</paragraph><paragraph id="HA58A168C409E4A87B3898F2E4D1307F0"><enum>(2)</enum><header>Use of
funds</header><text display-inline="yes-display-inline">The amounts made
available by paragraph (1) shall be available to provide assistance to all
Upward Bound projects that did not receive assistance in fiscal year 2007 and
that have a grant score above 70. Such assistance shall be made available in
the form of 4-year
grants.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></part>
Passed the House of
Representatives July 11, 2007.
Lorraine C. Miller,
Clerk.
July 16, 2007
Received; read twice and placed on the
calendar