110 HR 2669 RH: College Cost Reduction Act of 2007 U.S. House of Representatives 2007-06-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
IB Union Calendar No. 128 110th CONGRESS 1st Session H. R. 2669 [Report No. 110–210] IN THE HOUSE OF REPRESENTATIVES June 12, 2007 Mr. George Miller of California (for himself and Mr. Hinojosa) introduced the following bill; which was referred to the Committee on Education and Labor June 25, 2007 Additional sponsors: Ms. Hirono, Mr. Hare, Ms. Clarke, Ms. Woolsey, Mrs. Davis of California, Mr. Sarbanes, Mr. Bishop of New York, Mr. Yarmuth, Ms. Shea-Porter, Mr. Scott of Virginia, Mr. Davis of Illinois, Mr. Tierney, Ms. Zoe Lofgren of California, Mr. Wu, Mr. Ellison, Ms. Carson, Mr. Kildee, Mr. Engel, Mr. Van Hollen, Ms. DeLauro, Mr. Kucinich, Ms. McCollum of Minnesota, Mr. Lewis of Georgia, Ms. Schakowsky, Mr. Stark, Ms. Matsui, Mrs. Maloney of New York, Mr. Price of North Carolina, Ms. Eshoo, and Ms. Kilpatrick of Michigan June 25, 2007 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on June 12, 2007 A BILL To provide for reconciliation pursuant to section 601 of the concurrent resolution on the budget for fiscal year 2008.
1.
Short title; table of contents
(a)
Short title
This Act may be cited to as the College Cost Reduction Act of 2007. (b)
Table of contents
Sec. 1. Short title; table of contents. Sec. 2. References; effective date. Title I—Investing in Student Aid Part A—Increasing the purchasing power of Pell Grants Sec. 101. Mandatory Pell Grant Increases. Sec. 102. Support for working students. Sec. 103. Simplified needs test and automatic zero improvements. Sec. 104. Definitions. Part B—Making Student Loans More Affordable Sec. 111. Interest rate reductions. Sec. 112. Increases in loan limits. Sec. 113. Reduction of lender special allowance payments. Sec. 114. Elimination of exceptional performer status for lenders. Sec. 115. Reduction of lender insurance percentage. Sec. 116. Guaranty agency collection retention. Sec. 117. Unit costs for account maintenance fees. Sec. 118. Increased loan fees from lenders. Sec. 119. Student loan information. Sec. 120. Market-based determination of lender returns. Part C—Rewarding Service in Repayment Sec. 131. Loan forgiveness for service in areas of national need. Sec. 428K. Loan forgiveness for service in areas of national need. Sec. 132. Income-contingent repayment for public sector employees. Sec. 133. Income-based repayment. Sec. 493C. Income-based repayment. Sec. 134. Definition of economic hardship. Sec. 135. Deferrals. Sec. 136. Maximum repayment period. Sec. 137. Deferral of loan repayment following active duty. Sec. 484C. Deferral of loan repayment following active duty. Sec. 138. Sense of the Congress; report. Part D—Sustaining the Perkins Loan Program Sec. 141. Federal Perkins Loans. Title II—Reducing the Cost of College Sec. 201. State commitment to affordable college education. Sec. 132. State commitment to affordable college education. Sec. 202. Consumer information and public accountability in higher education. Sec. 131. Consumer information and public accountability in higher education. Sec. 203. Incentives and rewards for low tuition. Sec. 401B. Incentives and rewards for low tuition. Sec. 204. Cooperative education rewards for institutions that restrain tuition increases. Title VIII—Cooperative education rewards for institutions that restrain tuition increases Sec. 801. Definition of cooperative education. Sec. 802. Authorization of appropriations; reservations. Sec. 803. Grants for cooperative education. Sec. 804. Demonstration and innovation projects; training and resource centers; and research. Title III—Ensuring a Highly Qualified Teacher in Every Classroom Part A—TEACH Grants Sec. 301. TEACH Grants. Subpart 9—TEACH Grants Sec. 420L. Program established. Sec. 420M. Eligibility; applications. Sec. 420N. Definitions. Sec. 420O. Program period and funding. Part B—Centers of Excellence Sec. 311. Centers of excellence. Part C—Centers of Excellence Sec. 231. Definitions. Sec. 232. Centers of excellence. Sec. 233. Appropriations. Title IV—Leveraging Funds to Increase College Access Part A—Strengthening Historically Black Colleges and Universities and Minority-Serving Institutions Sec. 401. Investment in Historically Black Colleges and Universities and Minority-Serving Institution. Part I—Strengthening Historically Black Colleges and Universities and Other Minority-Serving Institutions Sec. 499A. Investment in Historically Black Colleges and Universities and Other Minority-Serving Institution. Part B—College Access Challenge grants Sec. 411. College Access Challenge grants. Part C—Upward Bound Sec. 412. Upward Bound. Title V—Additional Provisions Sec. 501. Independent evaluation of distance education programs. Sec. 502. Encouraging colleges and universities to go green.
2.
References; effective date
(a)
References
Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). (b)
Effective Date
Except as otherwise expressly provided therein, the amendments made by this Act shall be effective on October 1, 2007.
<enum>I</enum><header>Investing in Student Aid</header> <part id="HB61EAD6E50084A0BA3C502589B18DED3"><enum>A</enum><header>Increasing the purchasing power of Pell Grants</header> <section id="H5A50CEEFBBB04EB6ABACC68EE2D46085" section-type="subsequent-section" display-inline="no-display-inline"><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 style="OLC" id="HE3FD306D549047A9A76303A036D5A183" display-inline="no-display-inline"> <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 id="HEF7864991C9B445000342FF8D5FF38B" commented="no"><enum>(vi)</enum><text>$2,400,000,000 for fiscal year 2013;</text></clause> <clause id="HDDAF54382DFC4C9A00EEEB18D7EA8CF" commented="no"><enum>(vii)</enum><text>$2,450,000,000 for fiscal year 2014;</text></clause> <clause id="H123E6A042A5848A8BEBD75D2B3683604" commented="no"><enum>(viii)</enum><text>$2,510,000,000 for fiscal year 2015;</text></clause> <clause id="H390CB371C1DA4206823DD4EB653FC68" commented="no"><enum>(ix)</enum><text>$2,550,000,000 for fiscal year 2016; and</text></clause> <clause id="H48474BB47F4A4DAF882B24F04068F39C" commented="no"><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 id="H41D653DCBDA043E4A95C8D6FE4954970" commented="no"><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 id="H30C5E133B5BC4C1C9887E7268D81929B" commented="no"><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 style="OLC" id="H5A8C8D68A34D4732902900006FA41372" display-inline="no-display-inline"> <paragraph id="HC21296E1D8A5441686E9D851BCFBD0" commented="no" indent="up1"><enum>(2)</enum> <subparagraph id="HFD61AF400CCA48CDB189D5C632580220" display-inline="yes-display-inline" commented="no"><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 id="H269BF729879D478EB4C3C9DA5247D7C9" indent="up1" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">$7,600 for academic year 2008–2009;</text></clause> <clause id="H7C561A2C495F4BB497A09198ED626429" indent="up1" commented="no"><enum>(ii)</enum><text>$8,600 for academic year 2009–2010;</text></clause> <clause id="H2983B101345F452DA1DF417878EF35AC" indent="up1" commented="no"><enum>(iii)</enum><text>$9,600 for academic year 2010–2011; </text></clause> <clause id="H6F97C30F44294815BDF3CB7ECDE7D3C" indent="up1" commented="no"><enum>(iv)</enum><text>$10,600 for academic year 2011–2012; and</text></clause> <clause id="H3ECCF424E1824CB394A1417050396560" indent="up1" commented="no"><enum>(v)</enum><text display-inline="yes-display-inline">$11,600 for academic year 2012–2013,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">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 id="HDE9BFCFA30814D4EB88CD56BFEEC6251" display-inline="no-display-inline"><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></subsection> <subsection id="H44FC715F46E24E12B9E093764CE2C8A0" display-inline="no-display-inline"><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 style="OLC" id="H34F3068BAAC449DABA9E47E2E8552649"> <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 id="H1EA78C6A28514060B6CD69D76D638FB7" commented="no"><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 id="HE7A6132DADA74AFA997740004DD24121" commented="no"><enum>(3)</enum><text>by inserting after subsection (f) the following new subsection:</text> <quoted-block style="OLC" id="H92561B985711460F86276BA487CD4D40" display-inline="no-display-inline"> <subsection id="H384E3B3F71E6427A84E1D67889C62DD8" commented="no"><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 id="H2DFC5D0E014245A781BFADB6941016F" display-inline="no-display-inline"><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 style="OLC" display-inline="no-display-inline" id="H5A68CDBB0D70447FA79D9630B1B09C63"> <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 style="OLC" id="H30CE7D8448A94F249654006BD4855472" display-inline="no-display-inline"> <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 the following amount (or a successor amount prescribed by the Secretary under section 478)—</text> <clause commented="no" display-inline="no-display-inline" id="H09BA19D2733D451EB57F1E7BE8BEE5D5"><enum>(i)</enum><text display-inline="yes-display-inline">for the 2009–2010 academic year, $3,750;</text></clause> <clause commented="no" display-inline="no-display-inline" id="H29F66023582340BEA0BF3622F0F35602"><enum>(ii)</enum><text display-inline="yes-display-inline">for the 2010–2011 academic year, $4,500;</text></clause> <clause commented="no" display-inline="no-display-inline" id="H6283B4DE05024EBABDC9F7E93798DA14"><enum>(iii)</enum><text display-inline="yes-display-inline">for the 2011–2012 academic year, $5,250; and</text></clause> <clause commented="no" display-inline="no-display-inline" id="H5A5C3052356943D4BAF320A2282CCE0"><enum>(iv)</enum><text display-inline="yes-display-inline">for the 2012–2013 academic year, $6,000;</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="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="H45BBD8E8CE224B15BC757796E4E2E3A6"><enum>(I)</enum><text display-inline="yes-display-inline">for single or separated students, or married students where both are enrolled pursuant to subsection (a)(2)—</text> <item commented="no" display-inline="no-display-inline" id="HFB9DE00FEDFB42A78C585FB03D87E1DB"><enum>(aa)</enum><text display-inline="yes-display-inline">for the 2009–2010 academic year, $6,690;</text></item> <item commented="no" display-inline="no-display-inline" id="HFB4BA9DA2453420197B5FCABCD7846BB"><enum>(bb)</enum><text display-inline="yes-display-inline">for the 2010–2011 academic year, $7,160;</text></item> <item commented="no" display-inline="no-display-inline" id="H6EF68332B5ED4B35A674E1852652399"><enum>(cc)</enum><text display-inline="yes-display-inline">for the 2011–2012 academic year, $7,630; and</text></item> <item commented="no" display-inline="no-display-inline" id="HBC90C4793FF844C6B1E2DA69ED33FD15"><enum>(dd)</enum><text display-inline="yes-display-inline">for the 2012–2013 academic year, $8,090; and</text></item></subclause> <subclause commented="no" display-inline="no-display-inline" id="H75ED24AC4B504364B7468533008C483E"><enum>(II)</enum><text display-inline="yes-display-inline">for married students where 1 is enrolled pursuant to subsection (a)(2)—</text> <item commented="no" display-inline="no-display-inline" id="H799FB7BA43324B1DBB00C0515CF3DF9E"><enum>(aa)</enum><text display-inline="yes-display-inline">for the 2009–2010 academic year, $10,720;</text></item> <item commented="no" display-inline="no-display-inline" id="H3BEC4B305AAC45FAA3C1992C7E09312D"><enum>(bb)</enum><text display-inline="yes-display-inline">for the 2010–2011 academic year, $11,470;</text></item> <item commented="no" display-inline="no-display-inline" id="HCA3737FBABF84932B9CD69C0A302004D"><enum>(cc)</enum><text display-inline="yes-display-inline">for the 2011–2012 academic year, $12,220; and</text></item> <item commented="no" display-inline="no-display-inline" id="H85EB214177A24C8FA662E50218360CF"><enum>(dd)</enum><text display-inline="yes-display-inline">for the 2012–2013 academic year, $12,960;</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="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; and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HC7790C8640024C229300953C8C18E654"><enum>(B)</enum><text display-inline="yes-display-inline">for each academic year after 2012–2013, by increasing each of the dollar amounts contained in such section for academic year 2012–2013 by a percentage equal to the estimated percentage increase in the Consumer Price Index (as 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 October 1, 2008, and the amendment made by subsection (c) shall take effect on July 1, 2008.</text></subsection></section> <section commented="no" display-inline="no-display-inline" id="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 id="HC47E33B99FEF4FA79C808CDC797DD063" display-inline="no-display-inline" section-type="subsequent-section"><enum>104.</enum><header>Definitions</header> <subsection id="H4FD74435DB144FE2AF903B84E199B433" commented="no"><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 id="H7F0121ABC6CD41B7A95926EE4DE9111D" commented="no"><enum>(1)</enum><text>by striking <quote>and no portion</quote> and inserting <quote>no portion</quote>; and</text></paragraph> <paragraph id="H2D02F3F1746A487D0055BC489B0085B1" commented="no"><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 style="OLC" id="HB394AFA429804D4FA6F16C59007BB66D" display-inline="no-display-inline"> <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 id="HE64F67FFEC6842F78F91772F7FB02799" commented="no"><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 id="H7149B74816424928AA581F1EC3AF62D7" commented="no"><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 id="HEA153C6A37354734BC4BA042BA7F4E00" commented="no"><enum>(2)</enum><text>by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively; and</text></paragraph> <paragraph id="H24AB1667F1AE4599B22BBE2C746BEBA1" commented="no"><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 id="H80E543ECF1224991AF9E03BBE6EC92BF" commented="no" display-inline="no-display-inline"><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 id="HB6B6FE42EC2D4CCC88D8CC7303ED4579" display-inline="no-display-inline"><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 style="OLC" display-inline="no-display-inline" id="H020E05907B014ADCBEBB5615B3BB56BE"> <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 id="H53F9710AEEC74E668BF4CCA846B5FD60" commented="no"><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 style="OLC" display-inline="no-display-inline" id="H2CBC543EA64647EC90FC9E274C7E3CE8"> <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 id="HA230578563D24DB48D7FC6C5803EF2FA" display-inline="no-display-inline"><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 id="H9B4B1544F1174DC0B77CD8D608154327" display-inline="no-display-inline"><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) for which the first disbursement of principal is made on or after October 1, 2007.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HCBBDCA8DBFD84DEC974FEC56AF17BFB1" display-inline="no-display-inline" 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="H0B2088B5EE164B3384D71ECA61C8D311"><enum>117.</enum><header>Unit costs for account maintenance fees</header><text display-inline="no-display-inline">Section 458(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087h">20 U.S.C. 1087h(b)</external-xref>) is amended—</text> <paragraph id="H2B8AF2953B23436BB4CC4116C4ED1DC8"><enum>(1)</enum><text>by striking <quote>Account</quote> and inserting the following: </text> <quoted-block style="OLC" id="H41404405B8374235A0B6C52D7B4A1EB" display-inline="no-display-inline"> <paragraph id="H551FEA029076424BB8A8F4D73888A684"><enum>(1)</enum><header>For fiscal years 2006 and 2007</header><text>For fiscal years 2006 and 2007, account</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H9EDFEB29B6E2421291A6C52D93FA8AE"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block style="OLC" id="HE442B49E6D074A5886E8B3E3F543D285" display-inline="no-display-inline"> <paragraph id="HCAA54855CF8E4AFA9BED40F467C679BF"><enum>(2)</enum><header>For fiscal year 2008 and succeeding fiscal years</header> <subparagraph id="H872065D26B5D47DDB3ED357EAD798C91"><enum>(A)</enum><header>Unit cost basis</header><text>For fiscal year 2008 and each succeeding fiscal year, the Secretary shall calculate the account maintenance fees payable to guaranty agencies under subsection (a)(3), on a per-loan cost basis in accordance with <internal-xref idref="H40989AA2D44D4403B3D38C441687C80" legis-path="(2)(B)">subparagraph (B) of this paragraph</internal-xref>.</text></subparagraph> <subparagraph id="H40989AA2D44D4403B3D38C441687C80"><enum>(B)</enum><header>Determinations</header><text>To determine the amount that shall be paid under subsection (a)(3) per outstanding loan guaranteed by a guaranty agency for fiscal year 2008 and succeeding fiscal years, the Secretary shall—</text> <clause id="H193E9D8763AC43B19C048FEE1F279B96"><enum>(i)</enum><text>establish the per-loan cost basis amount by—</text> <subclause id="HE0D00DD5DB2F439D9365096D00EBED7D"><enum>(I)</enum><text>dividing the total amount of account maintenance fees paid under subsection (a)(3) in fiscal year 2006, by</text></subclause> <subclause id="H156AB2DC44424345B74D317CD8DD2CC"><enum>(II)</enum><text>the number of loans under part B that were outstanding in that fiscal year; and</text></subclause></clause> <clause id="H140460D51E4E4FEC894B8B00113FA1C"><enum>(ii)</enum><text display-inline="yes-display-inline">determine on October 1 of fiscal year 2008 and each subsequent fiscal year, and pay to each guaranty agency, an amount equal to the product of the number of loans under part B that are outstanding on October 1 of that fiscal year and insured by that guaranty agency, multiplied by—</text> <subclause id="HE2A36C7783A242C685B1599693488B84"><enum>(I)</enum><text>the amount determined under <internal-xref idref="H193E9D8763AC43B19C048FEE1F279B96" legis-path="(2)(B)(i)">clause (i)</internal-xref>; increased by</text></subclause> <subclause id="HA54ECD8F105A41498F00506BBE061DA5"><enum>(II)</enum><text>a percentage equal to the percentage increase in the GDP price index (as determined by the Bureau of Labor Statistics of the Department of Labor) between the calendar quarter ending on June 30, 2006, and the calendar quarter ending on the June 30 preceding such October 1 of such fiscal year.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HB314C91C339C47EBA0BFF800A2C9F945" section-type="subsequent-section" display-inline="no-display-inline"><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 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 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, or otherwise affiliated with, 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="HA6A8F99ECB3942C5006F03345C71EE9F" commented="no"><enum>119.</enum><header>Student loan information</header><text display-inline="no-display-inline">Section 428(k) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C. 1078(k)</external-xref>) is amended by adding at the end the following new paragraph: </text> <quoted-block style="OLC" id="H445B4CA94E4445A984695190D28F20EC" display-inline="no-display-inline"> <paragraph id="HE6E8CEC495FD44A0862D27ED692F49B5" commented="no"><enum>(4)</enum><header>Student loan information</header> <subparagraph id="H072305440299452C895DC44865BD98BF" commented="no"><enum>(A)</enum><text>Notwithstanding any other provision of law or regulation, a lender, secondary market, holder, or guaranty agency shall provide, free of charge and in a timely and effective manner, any student loan information maintained by that entity that is requested by an institution of higher education or any third-party servicer (as defined in section 481(c)) working on behalf of that institution to prevent student loan defaults.</text></subparagraph> <subparagraph id="HDFB34BF1BD47482F9B5B93DE3E21C3B" commented="no"><enum>(B)</enum><text>An institution and any third-party servicer obtaining access to information under <internal-xref idref="H072305440299452C895DC44865BD98BF" legis-path="(4)(A)">subparagraph (A)</internal-xref> shall safeguard that information in order to prevent potential abuses of that information, including identity theft.</text></subparagraph> <subparagraph id="HDCEFC8845E0A4857957E136B1F00F3A2" commented="no"><enum>(C)</enum><text>Any third party servicer that obtains information under this paragraph—</text> <clause id="H33012C3BBFFC4F96BD21A00150FB6300"><enum>(i)</enum><text>shall only use the information in a manner directly related to the default prevention work the servicer is performing on behalf of the institution of higher education; and</text></clause> <clause id="H6154613D2D03460588131F4C9CC8EE6" commented="no"><enum>(ii)</enum><text>shall be subject to any regulations established by the Secretary pursuant to section 432 concerning the misuse of such information, including any penalties for such misuse.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HC002B4BB741147EEBEE9D06F0219F9FF"><enum>120.</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></part> <part id="HC40E5FE6E6684810A9AFAB391330A9A1"><enum>C</enum><header>Rewarding Service in Repayment</header> <section id="H6B78191C7C3E4367A35EA16B04A9B415" display-inline="no-display-inline" 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 style="OLC" id="HA7B8A2B65F2D4C5EBB9C30BC29DF9555" display-inline="no-display-inline"> <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 id="H2F6441B4C889493999F1B01BAC62CC51" display-inline="no-display-inline"><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 id="H242C697D5DFB45599D3D50EB6374C1D5" display-inline="no-display-inline"><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 id="H1EF73A72273B484494328B7706AADD79" display-inline="no-display-inline"><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 id="H70B07363AC1B4B2F00269F5FEC1DD8AB" display-inline="yes-display-inline"><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 id="HCECA671253EE4EA5008E553200F23F6E" display-inline="no-display-inline"><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 id="HBEB0D3AEA10C443392B99124BA06CE7D" commented="no"><enum>(9)</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). </text></paragraph></subsection> <subsection id="H845EF40167BD48919741B1928909E33E" display-inline="no-display-inline"><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 id="H8BF656728ED04360B8D32C938B073B00" commented="no"><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 id="H4319D16122F444849648E31D34855491" commented="no"><enum>(A)</enum><text>a public or private school that is supported, sponsored, supervised, or administered by a local educational agency;</text></subparagraph> <subparagraph id="H30F5361B6F96405286A0FE4015615E67" commented="no"><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 id="H2E708C8EA2664D409C2D26515EC4C6CA" commented="no"><enum>(C)</enum><text>a nonprofit or community based organization; or</text></subparagraph> <subparagraph id="HB60CE2174747488AB581BED51FED03FA" commented="no"><enum>(D)</enum><text>a child care program, including a home.</text></subparagraph></paragraph> <paragraph id="H72351C1FE4C245209216CF3EA5E0426C" commented="no"><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 id="HA713275A044B45CF8CE63B007900EF00" commented="no"><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 id="HADC1DB7E012F4BF6BACA800421FB17F" commented="no"><enum>(i)</enum><text>is licensed or regulated by the State; and</text></clause> <clause id="H921B1A921EF04324AB7426BD32153B7" commented="no"><enum>(ii)</enum><text>serves 2 or more unrelated children who are not old enough to attend kindergarten; </text></clause></subparagraph> <subparagraph id="HE85198927CC14D8CAAF67DE7E364202C" commented="no"><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 id="H6CC3B1B412684449A4215DDC7926BFBD" commented="no"><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 id="HE89997C2A8674AADA9431EA1CD403200" commented="no"><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, or public interest legal services (including prosecution or public defense).</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 id="HE19B6F67FCD445BBBF761268B39FA3C5" commented="no" display-inline="no-display-inline"><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 id="H403AE1A98A99421CA3E3ABF8E166F955" commented="no" display-inline="no-display-inline"><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 id="H9E612C73DB5F44B2BA3F75299D309E00" commented="no"><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 id="H468C00991CCB4342A7F68B57866E5481" commented="no"><enum>(1)</enum><text>does not include active duty for training or attendance at a service school; but</text></paragraph> <paragraph id="H69560997AB83486D81F330E5E1E59E30" commented="no"><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> <section id="H60CFCEB534404170ADFEDBDF5FF24748"><enum>138.</enum><header>Sense of the Congress; report</header> <subsection id="H8422BEBECD404E4DA86DF880BBEC9F1"><enum>(a)</enum><header>Sense of Congress</header><text>It is the sense of the Congress that—</text> <paragraph id="HDE6896570D064C40B1598B001F00BE34"><enum>(1)</enum><text>in order to provide the borrowers of Federal student loans with the option of converting their loans to income-contingent repayment by providing direct loans for the discharge of such loans (in this section referred to as <quote>direct IDEA loans</quote>), the Secretary of Education and the Secretary of the Treasury will work together with the Government Accountability Office to develop a process by which the borrower will make payments on such loan using the income tax withholding system and will make appropriate adjustments to his or her withholding or estimated tax payments for such purposes; </text></paragraph> <paragraph id="H5195A72D12EE462090E1214B8FD47CAB"><enum>(2)</enum><text>the Secretaries shall determine—</text> <subparagraph id="H3E86885CD9754B008C905DE65D132300"><enum>(A)</enum><text>whether such a repayment option would be beneficial to borrowers and taxpayers; and </text></subparagraph> <subparagraph id="H9CF678979D4840FA872000C983CB7786"><enum>(B)</enum><text>how such program would be implemented by the Departments of Education and Treasury; and</text></subparagraph></paragraph> <paragraph id="HEAB44003707349DA9C61CDDE49A8F08C"><enum>(3)</enum><text>this process would—</text> <subparagraph id="H720028674BB64B5F8FD49DB5EEA5726C"><enum>(A)</enum><text>streamline the repayment process and provide greater flexibility for borrowers electing to use the direct IDEA loan;</text></subparagraph> <subparagraph id="H77A0697A59254C559C0000251FC6FD3F"><enum>(B)</enum><text>significantly reduce the number of loan defaults by borrowers; and</text></subparagraph> <subparagraph id="H5273B587B60D40C5BC828426E4973819"><enum>(C)</enum><text>significantly reduce the redundancy in reporting information pertaining to income-contingent repayment to the Department of Education, institutions, and applicants.</text></subparagraph></paragraph></subsection> <subsection id="HBDF2149646034EEBAE26058B168230C2"><enum>(b)</enum><header>Report</header><text>The Secretaries of Education and the Treasury shall, within one year after the date of enactment of this Act—</text> <paragraph id="H7F4C34F5FAB84E578179DBA450E5205F"><enum>(1)</enum><text>provide the Congress with information on the progress in devising the direct IDEA loan with income-contingent repayment using the income tax withholding system;</text></paragraph> <paragraph id="HF0EFB7BE0EE6418881BFFABCEC5C3A8"><enum>(2)</enum><text>inform the Congress of any necessary statutory changes for the purpose of establishing a direct IDEA loan with income-contingent repayment using the income tax withholding system; and</text></paragraph> <paragraph id="HC3146CEF0CFE4E7E876D4C3D348053E6"><enum>(3)</enum><text display-inline="yes-display-inline">consider international programs demonstrating implementation of income-contingent repayment collected through revenue services, such as programs in England, Australia, and New Zealand.</text></paragraph></subsection></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 style="OLC" id="HDCA7995842C447D08C90580254C045B9" display-inline="no-display-inline"> <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 id="H6F7BEB4BE2334C62968EFE64D251976"><enum>201.</enum><header>State commitment to affordable college education</header><text display-inline="no-display-inline">Title I is amended by inserting after section 131 (<external-xref legal-doc="usc" parsable-cite="usc/20/1015">20 U.S.C. 1015</external-xref>) the following new section:</text> <quoted-block id="H410941982E65493F85B80060EF86AC68"> <section id="H9B61C576D2DD404C8EF6FCF947ADCE60"><enum>132.</enum><header>State commitment to affordable college education</header> <subsection id="H2A5F873BB137437BAE50F1E2007568EE"><enum>(a)</enum><header>Maintenance of effort required</header><text>No State shall reduce the total amount provided by the State for public institutions of higher education in such State for any academic year beginning on or after July 1, 2008, to an amount which is less than the average amount provided by such State to such institutions of higher education during the 5 most recent preceeding academic years for which satisfactory data is available.</text></subsection> <subsection id="HE74C988B083243A683B4B7B530E7EDE"><enum>(b)</enum><header>Waiver</header><text display-inline="yes-display-inline">The Secretary may waive the requirements of this section, if the Secretary determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances, such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State educational agency.</text></subsection> <subsection id="H760EE981BDDE441CA7BA62B81DE9C01F" commented="no"><enum>(c)</enum><header>Withholding of all LEAP funds for violations</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, the Secretary of Education shall withhold from any State that violates <internal-xref idref="H2A5F873BB137437BAE50F1E2007568EE" legis-path="132.(a)">subsection (a)</internal-xref> (except a State that receives a waiver under <internal-xref idref="HE74C988B083243A683B4B7B530E7EDE" legis-path="132.(b)">subsection (b)</internal-xref>) any amount that would otherwise be available to the State under the Leveraging Educational Assistance Partnership Program under subpart 4 of part A of title IV until such State has corrected such violation.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HA0D0ACA55B174162971BC28BD57F9118"><enum>202.</enum><header>Consumer information and public accountability in higher education</header><text display-inline="no-display-inline">Section 131 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1015">20 U.S.C. 1015</external-xref>) is amended to read as follows:</text> <quoted-block style="OLC" id="HCDED2A3822D4434DB7A4C2463C86C861" display-inline="no-display-inline"> <section id="H9651024B7B1245F5004EB7C69EA8A890"><enum>131.</enum><header>Consumer information and public accountability in higher education</header> <subsection id="H76DEBB77956446BFB2061159AA829503"><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="H1030186779CB4037A26C9B41B9B0D642"><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="H06C575FCA2394177AEF9E1ED4BEE2B9"><enum>(2)</enum><text>shall convene a group of individuals with expertise in the collection and reporting of data related to institutions of higher education, the use of consumer data, and consumer marketing in general to—</text> <subparagraph id="H4B312E43200049C1928700D27FDF75B0"><enum>(A)</enum><text>determine the relevance of particular data elements to prospective students, enrolled students, and families;</text></subparagraph> <subparagraph id="H505FFF8B9DF34238AFEAEB11E0781C82"><enum>(B)</enum><text>assess the cost-effectiveness of various ways in which institutions of higher education might produce relevant data;</text></subparagraph> <subparagraph id="H0492FC948F244D4B985CEE7477705B29"><enum>(C)</enum><text>determine the general comparability of the data across institutions of higher education; and</text></subparagraph> <subparagraph id="HB0C958F6F8334BB58089BD03FC008B84"><enum>(D)</enum><text>make recommendations regarding the inclusion of specific data items and the most effective and least burdensome methods of collecting and reporting useful data from institutions of higher education; and</text></subparagraph></paragraph> <paragraph id="H60BB06430CE0439C82A8679034B3FE57"><enum>(3)</enum><text>shall ensure that the redesigned COOL website—</text> <subparagraph id="H208C6570439D41F680A18E243400B97B"><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="H46B7A0DA700D4400B18426956E91119B"><enum>(B)</enum><text>includes clear and uniform information determined to be relevant to prospective students, enrolled students, and families;</text></subparagraph> <subparagraph id="HCAD5AE0FF8D74EC591E5527CF4FB0067"><enum>(C)</enum><text>provides comparable information, by ensuring that data are based on accepted criteria and common definitions;</text></subparagraph> <subparagraph id="HDFF5F65815BB4738B700CEBB664953D1"><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="H1030186779CB4037A26C9B41B9B0D642" 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="H491DC004CB8941468B167E60D5563F7E"><enum>(b)</enum><header>Data Collection</header> <paragraph id="H9929D2A5D6DE444BB129853C003CAE86"><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="H7E267F539E9C4D51817BA76D54AD7F8B"><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="H02236E459938419ABDF624B1BFF45FDE"><enum>(A)</enum><text>The tuition and fees charged for a first-time, full-time undergraduate student.</text></subparagraph> <subparagraph id="H0F8D5BB7F1DB4A129E017DA812FCFF4F"><enum>(B)</enum><text>The room and board charges for a first-time, full-time undergraduate student.</text></subparagraph> <subparagraph id="H44EBB4D72D6C4BD598E1A3C8F45DEDC3"><enum>(C)</enum><text>The price of attendance for a first-time, full-time undergraduate student, consistent with the provisions of section 472.</text></subparagraph> <subparagraph id="H515D94DE1B9D40059B816FD37D4D99C4"><enum>(D)</enum><text>The average amount of financial assistance received by a first-year, full-time undergraduate student, including—</text> <clause id="H7112D7EED0D449EC81CE4E5F42D8FC83"><enum>(i)</enum><text>each type of assistance or benefits described in 428(a)(2)(C)(ii);</text></clause> <clause id="HB48BD58B9E0B40C38913D47C78A4992C"><enum>(ii)</enum><text>institutional and other assistance; and</text></clause> <clause id="H5B89F6FC6DCE48D790005CC1B8BF6593"><enum>(iii)</enum><text>Federal loans under parts B, D, and E of title IV.</text></clause></subparagraph> <subparagraph id="H7318FA18EE014A9FB1CC4B6D8BB8A9C0"><enum>(E)</enum><text>The number of first-time, full-time undergraduate students receiving financial assistance described in each clause of <internal-xref idref="H515D94DE1B9D40059B816FD37D4D99C4" legis-path="131.(b)(2)(D)">subparagraph (D)</internal-xref>.</text></subparagraph> <subparagraph id="H6053E1E6FD884AB4BBE943E2161ECB1C"><enum>(F)</enum><text>The institutional instructional expenditure per full-time equivalent student.</text></subparagraph> <subparagraph id="HBFA51D94942847E896AF67237547AB63"><enum>(G)</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="H59A131B8FE0D4485BCA0C198B0C468AC"><enum>(H)</enum><text>Faculty-to-student ratios.</text></subparagraph> <subparagraph id="HA8FEA5C9F462415F92D1BD191001423"><enum>(I)</enum><text>Faculty information, including the total number of faculty and the percentage of faculty who are full-time employees of the institution and the percentage who are part-time.</text></subparagraph> <subparagraph id="H36B7C74999F64F0FA2BE43A819A33D80"><enum>(J)</enum><text>Completion and graduation rates of undergraduate students, identifying whether the completion or graduation rates are from a 2-year or 4-year program of instruction and, in the case of a 2-year program of instruction, the percentage of students who transfer to 4-year institutions prior or subsequent to completion or graduation.</text></subparagraph> <subparagraph id="HDBBC2A638EA44994B1FD1414CC553E91"><enum>(K)</enum><text>A link to the institution of higher education with information of interest to students including mission, accreditation, student services (including services for students with disabilities), transfer of credit policies, any articulation agreements entered into by the institution, and, if appropriate, placement rates and other measures of success in preparing students for entry into or advancement in the workforce.</text></subparagraph> <subparagraph id="H1902C63E54B7402F891D284923C6BCA6"><enum>(L)</enum><text display-inline="yes-display-inline">The college affordability information elements specified in <internal-xref idref="H5228B584627C47F993DBB05FB24F78D3" legis-path="131.(c)">subsection (c)</internal-xref>.</text></subparagraph> <subparagraph id="H8A3C3C8BDDEB468EB659476941504D60"><enum>(M)</enum><text>Any additional information that the Secretary may require.</text></subparagraph></paragraph></subsection> <subsection id="H5228B584627C47F993DBB05FB24F78D3"><enum>(c)</enum><header>College affordability information elements</header><text>The college affordability information elements required by <internal-xref idref="H1902C63E54B7402F891D284923C6BCA6" legis-path="131.(b)(2)(L)">subsection (b)(2)(L)</internal-xref> shall include, for each institution submitting data—</text> <paragraph id="HD9AD6D34E6E14AD3B423DBC94CB5C890"><enum>(1)</enum><text>the sticker price of the institution for the 3 most recent academic years;</text></paragraph> <paragraph id="HBA50B1EB9DE5449397F9CEBBA941D2FF"><enum>(2)</enum><text>the net tuition price of the institution for the 3 most recent academic years;</text></paragraph> <paragraph id="H61143B907D80447BBEC4E38E0080E85F"><enum>(3)</enum><text>the percentage change in both the sticker price and the net tuition price over the 3-year time period that is being reported;</text></paragraph> <paragraph id="HBA7E49E77A9D4579BFC935EE45BF69A3"><enum>(4)</enum><text>the percentage change in the higher education price index (as defined in section 401B(d)) over the same 3-year time period; and</text></paragraph> <paragraph id="H45DDC83DBD0A46DF9D0710CC6CDF4CCF"><enum>(5)</enum><text>whether the institution has been placed on affordability alert status as required by <internal-xref idref="H1D2C0941F3234B7D84EE2ECD8FA5DF82" legis-path="131.(d)(2)">subsection (d)(2)</internal-xref>.</text></paragraph></subsection> <subsection id="HB9A068CBE3D04E47BB777D03C8B68020"><enum>(d)</enum><header>Outcomes and Actions</header> <paragraph id="HD52A3054A7ED4E52857971A359C1D445"><enum>(1)</enum><header>Response from institution</header><text display-inline="yes-display-inline">Effective on June 30, 2008, an institution that increases its sticker price at a percentage rate for any 3-year interval ending on or after that date that exceeds two times the rate of change in the higher education price index (as defined in section 401B(d)) over the same time period shall provide a report to the Secretary, in such a form, at such time, and containing such information as the Secretary may require. Such report shall be published by the Secretary on the COOL website, and shall include—</text> <subparagraph id="H1B509728CBC548199D864B64BD5BD4C7"><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="HAC5B4B80F1DD4F00BAB041561297071E"><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="H1D2C0941F3234B7D84EE2ECD8FA5DF82"><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="HD52A3054A7ED4E52857971A359C1D445" legis-path="131.(d)(1)">paragraph (1)</internal-xref> has failed to reduce the subsequent increase in sticker price to equal to or below two times the rate of change in the higher education price index (as defined in section 401B(d)) for 2 consecutive academic years subsequent to the 3-year interval used under <internal-xref idref="HD52A3054A7ED4E52857971A359C1D445" legis-path="131.(d)(1)">paragraph (1)</internal-xref>, the Secretary shall place the institution on affordability alert status.</text></paragraph> <paragraph id="H5B2944322DAD4984843D36EE46DEB3E2"><enum>(3)</enum><header>Exemptions</header><text display-inline="yes-display-inline">Notwithstanding <internal-xref idref="H1D2C0941F3234B7D84EE2ECD8FA5DF82" legis-path="131.(d)(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="HD52A3054A7ED4E52857971A359C1D445" legis-path="131.(d)(1)">paragraph (1)</internal-xref>—</text> <subparagraph id="H883B5FDA3EE64F85956D008825B1C3C7"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to the class of institutions described in <internal-xref idref="H53C98171FE2B4640B0D2CF00A824A15" legis-path="131.(d)(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 id="H8C8DD2CC277841BB882E5D7CE0CAECB0"><enum>(B)</enum><text display-inline="yes-display-inline">the institution has a percentage change in its sticker price computed under <internal-xref idref="HD52A3054A7ED4E52857971A359C1D445" legis-path="131.(d)(1)">paragraph (1)</internal-xref> that exceeds two times 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 sticker price increase is less than $500.</text></subparagraph></paragraph> <paragraph id="HDFDE7E78FCB445DA8BFEEDD845CB624E"><enum>(4)</enum><header>Information to state agencies</header><text>Any institution that reports under <internal-xref idref="HAC5B4B80F1DD4F00BAB041561297071E" legis-path="131.(d)(1)(B)">paragraph (1)(B)</internal-xref> that an agency or instrumentality of State government or other entity participates in the determinations of tuition and fee increases shall, prior to submitting any information to the Secretary under this subsection, submit such information to, and request the comments and input of, such agency, instrumentality, or entity. With respect to any such institution, the Secretary shall provide a copy of any communication by the Secretary with that institution to such agency, instrumentality, or entity.</text></paragraph> <paragraph id="H53C98171FE2B4640B0D2CF00A824A15"><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="HA0B1508068214E1A82A114CC0623B5BF"><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="HFA51472295A04AD68036F12673053683"><enum>(e)</enum><header>Information to the Public</header><text display-inline="yes-display-inline">The Secretary shall work with public and private entities to promote broad public awareness, particularly among middle and high school students and their families, of the information made available under this section, including by distribution to students who participate in or receive benefits from means-tested federally funded education programs and other Federal programs determined by the Secretary.</text></subsection> <subsection id="HF9B75954F4134D8400780000FDC2F607"><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="H0E359205E98147A787EFF80031C6607D"><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="HF9A590532AF14B0AAB24C43002129808"><enum>(h)</enum><header>Definitions</header><text>For the purposes of this section:</text> <paragraph id="H89771BF4988B4E2B8DDE244A439376B"><enum>(1)</enum><header>Net tuition price</header><text>The term <term>net tuition price</term> means the sticker price, minus the average grants provided to such students, for any academic year.</text></paragraph> <paragraph id="H19E5F60A354F47BD87002EB63B19D7B3"><enum>(2)</enum><header>Sticker price</header><text>The term <term>sticker price</term> means the average tuition and fees charged to a first-time, full-time, full-year undergraduate student by an institution of higher education for any academic year.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H665338A754274DBEA57D5390B3AE5D8D" section-type="subsequent-section" display-inline="no-display-inline"><enum>203.</enum><header>Incentives and rewards for low tuition</header><text display-inline="no-display-inline">Subpart 1 of part A of title IV is amended by inserting after section 401A (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a-1">20 U.S.C. 1070a–1</external-xref>) the following new section:</text> <quoted-block id="H0AD861C55C7E47DE8897A4B55BB23338"> <section id="H44B576AC24114C38AAA556F0A33E1F92"><enum>401B.</enum><header>Incentives and rewards for low tuition</header> <subsection id="H95FA9DF7D9AB4DAD8928D8C6D12E86F"><enum>(a)</enum><header>Rewards for low tuition</header><text>For an institution of higher education that, for academic year 2008–2009 or any succeeding academic year, has an annual net tuition price 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, the Secretary shall provide such institution an amount sufficient to provide a 25 percent increase under subpart 1 of part A of title IV to each Pell Grant recipient attending such institution for the next award year beginning after the date of such determination. Each such institution shall distribute any amounts received under this subsection among such Pell Grant recipients by increasing the amount of their Pell Grant awards by 25 percent.</text></subsection> <subsection id="H9A9486CE910A4DBAA932D85812BC3500"><enum>(b)</enum><header>Rewards for guaranteed tuition</header> <paragraph id="HFA7DB37390F9475A83F39EAB4B7F21BE"><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="H7482A9E6B7004F698F1EDC4315104DEB" legis-path="401B.(b)(2)">paragraph (2)</internal-xref> or <internal-xref idref="HA6F06861E5AE49EC9BA0DCA9B3BEF600" legis-path="401B.(b)(3)">(3)</internal-xref> of this subsection, the Secretary shall provide to such institution a bonus amount equal to 25 percent of the aggregate amount of aid received by students at the institution under section 401(a). Such institution shall award the bonus amount to the Pell Grant recipients who were in attendance at the institution during the award year that such institution satisfied the eligibility criteria for maintaining low tuition and fees. Each such student shall receive an amount that equals 25 percent of their total Pell Grant award for such award year, except that no student shall recieve 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. If there are additional funds remaining after all eligible students have been paid from the bonus amount, the institution shall award all excess funds first to remaining Pell Grant recipients who were not in attendance at the institution during such award year, and then to other eligible students under this title in attendance at such institution in the form of need-based aid.</text></paragraph> <paragraph id="H7482A9E6B7004F698F1EDC4315104DEB"><enum>(2)</enum><header>4-year institutions</header><text>An institution of higher education that provides a program of instruction for which it awards a bachelor’s degree complies with the requirements of this paragraph if such institution guarantees that for any academic year beginning on or after July 1, 2008, and for each of the 4 succeeding continuous academic years, the net tuition price charged to an undergraduate student will not exceed—</text> <subparagraph id="H22826F1C8736485D892FA89DED83047D"><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="H331D8037D72F4240B4F423627439AA2F"><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="HA6F06861E5AE49EC9BA0DCA9B3BEF600"><enum>(3)</enum><header>Less-than 4-year institutions</header><text>An institution of higher education that does not provide a program of instruction for which it awards a bachelor’s degree complies with the requirements of this paragraph if such institution guarantees that for any academic year (or the equivalent) beginning on or after July 1, 2008, and for each of the 1.5 succeeding continuous academic years, the net tuition price charged to an undergraduate student will not exceed—</text> <subparagraph id="HA92E05FC21494D7D0027F964DD8BA630"><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="H87C4427E411542C993B5F1A16DE1DE1F"><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="H109DDCBBE7D545218827DC45630137AA"><enum>(c)</enum><header>Maintaining affordable tuition</header><text>For any institution of higher education whose increase in the annual net tuition price (expressed as a percentage), for the most recent academic year for which satisfactory data is available, is greater than the percentage increase in the higher education price index for such academic year, the Secretary shall require such institution to submit to the Secretary the following information, within 6 months of such determination:</text> <paragraph id="HA5F701B3DB6844C19EEDB7084000E19C"><enum>(1)</enum><text>a detailed report on the exact causes for the net tuition price increase that outlines revenues and expenditures; and</text></paragraph> <paragraph id="H6AD44BFB80D042E89BA7B87F24C1884C"><enum>(2)</enum><text>cost containment strategies to lower net tuition prices.</text></paragraph></subsection> <subsection id="H8759A895BA054BC98CD7113CB36C1E"><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 price increase (expressed as a percentage) for the most recent academic year for which satisfactory data is available, when compared with other institutions of higher education with annual net tuition price increases that are equal to or less than the percentage change in the higher education price index for such academic year.</text></subsection> <subsection id="HE33703C248524D749974C4E71611DACF"><enum>(e)</enum><header>Definitions</header> <paragraph id="H628D7E4FEC204855A468B2EC482D3FEE" display-inline="no-display-inline"><enum>(1)</enum><header>Net tuition price</header><text>The term <term>net tuition price</term> has the same meaning as provided in section 131(k).</text></paragraph> <paragraph id="HC2487131D3544ACFBEAD1C93CFB4A68B" commented="no"><enum>(2)</enum><header>Higher education price index</header><text>The term <term>higher education price index</term> means a statistical measure of change over time in the prices of a fixed market basket of goods and services purchased by colleges and universities through current fund educational and general expenditures (excluding expenditures for research), as developed by the Bureau of Labor Statistics.</text></paragraph></subsection> <subsection id="HAD253EC6FCC64A1595B0E513D2968124"><enum>(f)</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="HCCBD7E9C37954A439C772301386E15B1"><enum>(g)</enum><header>Sunset</header><text>The authority to carry out this section shall expire at the end of fiscal year 2012. </text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H484CB7771DF7434594F9006C9D30BDE1"><enum>204.</enum><header>Cooperative education rewards for institutions that restrain tuition increases</header><text display-inline="no-display-inline">The <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (<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>Cooperative education rewards for institutions that restrain tuition increases</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 id="H89C5168701AF4D90ADD25349563000B4" commented="no"><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 id="HD1DA1F3E4BAC48BF913BF671548C0005" display-inline="yes-display-inline"><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 indent="up1" id="HE2A834C0AA674679931D7D3F4C9264BD"><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 indent="up1" id="HBDF0EDC2919744FDA5DB5E4FA8862020"><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 id="H8859551E5B354999B001832DF4791DD4" commented="no"><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 id="H8D953231235D4A9CAFF02CEFC6357171" commented="no"><enum>(i)</enum><text>the number of unduplicated student applicants in the cooperative education program;</text></clause> <clause id="HB9EFA7C29B404A1B90DD553239E33F94" commented="no"><enum>(ii)</enum><text>the number of unduplicated students placed in cooperative education jobs;</text></clause> <clause id="HC20423BCB0AD482B80DD99F854F79611" commented="no"><enum>(iii)</enum><text>the number of employers who have hired cooperative education students;</text></clause> <clause id="H7B5F1FAB87244CEF9E001C608F009B30" commented="no"><enum>(iv)</enum><text>the average income for students derived from working in cooperative education jobs; and</text></clause> <clause id="HE2E9587F0FD446188EED70DC697D3C05" commented="no"><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>. <enum>III</enum><header>Ensuring a Highly Qualified Teacher in Every Classroom</header> <part id="H281A0B2BB20740228CD908A6708D8710"><enum>A</enum><header>TEACH Grants</header> <section id="H2E07D25F62094974BD05C6A4122C3698" display-inline="no-display-inline" 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 style="OLC" id="HE440D790CE1D49BCB26F5F71FD885BCA" display-inline="no-display-inline"> <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 students</header><text>The period during which an undergraduate student may receive grants under this subpart shall be the period required for the completion of the first undergraduate baccalaureate course of study being pursued by that student at the institution at which the student is in attendance except that—</text> <subparagraph id="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>the total amount that a student may receive under this subpart for undergraduate study shall not exceed $16,000 with respect to a student who receives only TEACH Grants, and $18,000 with respect to a student who receives TEACH Grants and Bonus TEACH Grants. </text></subparagraph></paragraph> <paragraph id="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>Nothing in this section shall exclude from eligibility courses of study which are noncredit or remedial in nature (including courses in English language acquisition) which are determined by the institution to be necessary to help the student be prepared for the pursuit of a first undergraduate baccalaureate degree or certificate or, in the case of courses in English language instruction, to be necessary to enable the student to utilize already existing knowledge, training, or skills. Nothing in this section shall exclude from eligibility programs of study abroad that are approved for credit by the home institution at which the student is enrolled. </text></paragraph></subsection></section> <section id="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>displayed high academic aptitude by receiving a score above the 75th percentile on at least one of the batteries in an undergraduate or graduate school admissions test; and</text></subclause></clause> <clause id="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 id="HE27806EF69034CD1BD9FD657E73908D2" commented="no"><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 id="H7ED0A55E2A954ED98E80CCAB5E8E62F7" commented="no"><enum>(A)</enum><text>eligible for, and has applied for, a TEACH Grant; and</text></subparagraph> <subparagraph id="HCDE41F3D8CF843C394BB057751D0DCA3" commented="no"><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 id="HF18BC8AE82984DEE892024741500B43D" commented="no"><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 id="HBFCB734CF8274794B9E1B4DECE644524"><enum>(1)</enum><header>Eligible institution</header><text>The term <term>eligible institution</term> means an institution of higher education as defined in section 102.</text></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 id="HCD0774277BE242F9812E791BC6F8889D" commented="no"><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 id="HCD9976B2660841DA86A429B9013419E" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">is implemented by an institution of higher education in partnership with high-need local educational agencies;</text></subparagraph> <subparagraph id="H89F383336BD84335AFA97F54F2A07620" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">offers a baccalaureate degree with a concurrent teacher certification to teacher candidates; </text></subparagraph> <subparagraph id="H96A9B971587640B8A432D323B092A67E" commented="no"><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 id="H7F4C169D453F4049B82DF3C2D8FF8C23" commented="no"><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 id="HF9269E2796AF471998F3B9A9CF2625A1" commented="no"><enum>(F)</enum><text display-inline="yes-display-inline">provides teacher candidates with—</text> <clause id="H3FBE4B4DECB248E3A7C6046C7F9DD7E0" commented="no"><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 id="H7613DA10A2844834B2FB9B4B5E8D4E00" commented="no"><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 id="H49279688AC274ABDBA95C1763F76118F" commented="no"><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 id="H2767C71A7D834CD9B85BC2E42EF0801D" commented="no"><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 id="H89B970A5AFD147DDA75283ABFB3114E1" commented="no"><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 id="HD10D16452AD84DD9B924EE125DF1C57" commented="no"><enum>(I)</enum><text>encourages individuals from underrepresented populations to enter into the teaching profession. </text></subparagraph></paragraph></section> <section id="H3ABC949C742A46B580D7D7DDA9057963" commented="no"><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 id="H1DF54DC259604122A28FEB00FB576B77" display-inline="no-display-inline"><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 id="H7F16EE2CFA8844808EF911A2F5EDA60" display-inline="no-display-inline"><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 id="HB7C292339FA945BEA71583771740D00" commented="no"><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 style="OLC" id="H5ACD1F6E80774837B76F7B9C751D777D" display-inline="no-display-inline"> <part id="HBDDEE18801A34B7FB95D5F0032FE7690"><enum>I</enum><header>Strengthening Historically Black Colleges and Universities and Other Minority-Serving Institutions</header> <section id="HCF117C7BEC7544889047A5908CA59483" section-type="subsequent-section" display-inline="no-display-inline"><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 id="HA90065417CB54F81B92D38FD2D57F47F" display-inline="no-display-inline"><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 id="HB16B986ED17844E1A53B99AEC576E800" display-inline="no-display-inline"><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 id="HAF203A81E2424BF79200461B3340D867" display-inline="no-display-inline"><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 id="H75E59A821C93444CAB22B04E532D0088" display-inline="no-display-inline"><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 from subgroups with low levels of college degree attainment.</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> <paragraph id="H70F9E2D6D8BE4FE8AD6004D991DF89BB"><enum>(8)</enum><header>Low levels of college degree attainment</header><text>The term <term>low levels of college degree attainment</term> mean college degree attainment that is less than 20 percent for adults ages 25 through 29 as reported by the National Center for Educational Statistics.</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 id="H53D46EACE1A44396B621388D059CCAAC" section-type="subsequent-section" display-inline="no-display-inline"><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 id="H355A0B8DF90F487E987200CB60DF148B" display-inline="no-display-inline"><enum>(A)</enum><text>providing need-based grants to eligible students;</text></subparagraph> <subparagraph id="H9D41A6197C15486387BB1B8204851300" display-inline="no-display-inline"><enum>(B)</enum><text>providing support to eligible students through school- or institution-based mentoring programs; and</text></subparagraph> <subparagraph id="H8E6638E842494627A1292500DA38B4D7" display-inline="no-display-inline"><enum>(C)</enum><text>conducting outreach programs to encourage eligible students to pursue higher education.</text></subparagraph></paragraph> <paragraph id="H9D7A065594FF41B3B63C85C0A9DE4246" commented="no"><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 id="H7E1BF81DD8D841D5A16152AE06DC9500" commented="no"><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 activites 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 id="HF0B2779F037D4F6BBF4B8E768327A543"><enum>(e)</enum><header>Annual report</header><text>A philanthropic organization receiving a grant under this section shall prepare and submit an annual report to the Secretary on the activities carried out with such grant. The report shall include—</text> <paragraph id="H3FA41E7AD4064997AC3483C8262CB2D6"><enum>(1)</enum><text>each activity or service that was provided to eligible students over the course of the year;</text></paragraph> <paragraph id="HFC416D680174456FA500C57811EFDC5"><enum>(2)</enum><text>the cost of providing each such activity or service;</text></paragraph> <paragraph id="H2E4AF24759EC4952A1F4A9AC5D38867F"><enum>(3)</enum><text>the number and percentage of eligible students who received grants, mentoring, and outreach services; and</text></paragraph> <paragraph id="H32E4445A2FC947E0AFC9124746CAF54F"><enum>(4)</enum><text>the total amount of charitable gifts received by the eligible consortia (including its members) with which the philanthropic organization is affiliated for the fiscal year.</text></paragraph></subsection> <subsection id="H1BABD73126684064A2F5E78DD366F46D" commented="no"><enum>(f)</enum><header>Regulations</header><text>The Secretary shall promulgate regulations to carry out this section. Such regulations shall include—</text> <paragraph id="H900D3BC0402E4D77919400D157C9D4BD" commented="no"><enum>(1)</enum><text>the maximum grant amount that may be awarded to a philanthropic organization under this section;</text></paragraph> <paragraph id="H1241F056C74D48C9B12C6079C7CE4D79" commented="no"><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>(g)</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 id="H1C15C7D4605F4DBE9D1F68C93F3D6C43" commented="no"><enum>(A)</enum><text>is a member of an underserved population;</text></subparagraph> <subparagraph id="HF64E343C360C4363961FFDBEF1BCC69" commented="no"><enum>(B)</enum><text>is enrolled—</text> <clause id="H811CEB2773624C6FB300E9E41D597B59" commented="no"><enum>(i)</enum><text>in a secondary school pursuing a high school diploma; or</text></clause> <clause id="H01AF69C1CF5B498DB22D4675E3F60000" commented="no"><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 id="H9C4319DFF1A345FE87787F155F457737" commented="no"><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 id="H696C1C7C635548ECBADA9F28F29B9D94" commented="no"><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 insitution 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 id="H9E4BFED2A3F749889663669FAE0439FC" commented="no"><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>(h)</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 id="H6C9241AD6F2C4E61A4CF9603CFB32ECC" commented="no"><enum>(i)</enum><header>Sunset</header><text>The authority to carry out this section shall expire at the end of fiscal year 2012.</text></subsection></section></part> <part id="HCFB88BE4D2774901B6C8A5A1996569C5"><enum>C</enum><header>Upward Bound</header> <section id="HFDA334087A08424BB6229010A47425E9" display-inline="no-display-inline" section-type="subsequent-section"><enum>412.</enum><header>Upward Bound</header> <subsection id="H000D1655EF1D4974B02537072724EF00" display-inline="no-display-inline"><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 style="OLC" id="H99B377F54D3A47718432B1C5A41355AA" display-inline="no-display-inline"> <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 style="OLC" id="HAEBDF81D29C74A5085CFA5EB4BC3F19" display-inline="no-display-inline"> <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, $30,000,000 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 <internal-xref idref="H6DD310491FB840AAAB53D8A47CB3244F" legis-path="(f)(1)">paragraph (1)</internal-xref> shall be available to provide assistance to all Upward Bound projects that received assistance in fiscal year 2006 but that did not receive assistance in fiscal year 2007 (other than new applicants) with 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> <enum>V</enum><header>Additional Provisions</header> <section id="H0BFBFA9378414F5B9B55773135EDA3DB" display-inline="no-display-inline" section-type="subsequent-section"><enum>501.</enum><header>Independent evaluation of distance education programs</header> <subsection id="HB68C644E80D9483B8751114317F4FB30"><enum>(a)</enum><header>Independent evaluation</header><text display-inline="yes-display-inline">The Secretary of Education shall enter into an agreement with the National Academy of Sciences to conduct a scientifically correct and statistically valid evaluation of the quality of distance education programs, as compared to campus-based education programs, at institutions of higher education. Such evaluation shall include—</text> <paragraph id="HF4C192A19B604BAB9B72CF809BEDE547"><enum>(1)</enum><text display-inline="yes-display-inline">identification of the elements by which the quality of distance education, as compared to campus-based education, can be assessed, including elements such as subject matter, interactivity, and student outcomes;</text></paragraph> <paragraph id="H8E4905EC5B4B4B6FA4407E5BFF949D4"><enum>(2)</enum><text display-inline="yes-display-inline">identification of distance and campus-based education program success, with respect to student achievement, in relation to the mission of the institution of higher education; and</text></paragraph> <paragraph id="HE40313A0224A41A1B7DB53C394A9BD"><enum>(3)</enum><text display-inline="yes-display-inline">identification of the types of students (including classification of types of students based on student age) who most benefit from distance education programs, the types of students who most benefit from campus-based education programs, and the types of students who do not benefit from distance education programs, by assessing elements including access to higher education, job placement rates, undergraduate graduation rates, and graduate and professional degree attainment rates.</text></paragraph></subsection> <subsection id="H946FDF6C637844AC94915BE9326FE01E"><enum>(b)</enum><header>Scope</header><text display-inline="yes-display-inline">The National Academy of Sciences shall select for participation in the evaluation under <internal-xref idref="HB68C644E80D9483B8751114317F4FB30" legis-path="501.(a)">subsection (a)</internal-xref> a diverse group of institutions of higher education with respect to size, mission, and geographic distribution.</text></subsection> <subsection id="H732DCE3D07B34CE08B9CB9F46CA0C7EF"><enum>(c)</enum><header>Interim and Final Reports</header><text display-inline="yes-display-inline">The agreement under <internal-xref idref="HB68C644E80D9483B8751114317F4FB30" legis-path="501.(a)">subsection (a)</internal-xref> shall require that the National Academy of Sciences submit to the Secretary of Education, the Committee on Health, Education, Labor and Pensions of the Senate, and the Committee on Education and Labor of the House of Representatives—</text> <paragraph id="H5FFF913C5A9D47F0B8F1FE419E8FAEE6"><enum>(1)</enum><text display-inline="yes-display-inline">an interim report regarding the evaluation under <internal-xref idref="HB68C644E80D9483B8751114317F4FB30" legis-path="501.(a)">subsection (a)</internal-xref> not later than December 31, 2007; and</text></paragraph> <paragraph id="HDF8F10DC5DE145CC8DE3991D61AB562C"><enum>(2)</enum><text>a final report regarding such evaluation not later than December 31, 2009.</text></paragraph></subsection> <subsection id="HB14B8A7E294D4FDA9FBAFA00D9C036D9"><enum>(d)</enum><header>Appropriations</header><text display-inline="yes-display-inline">There shall be available to the Secretary, from funds not otherwise appropriated, $100,000 to carry out this section.</text></subsection></section> <section id="H3ECA862EC69F4D3C873D21533B63BEAF"><enum>502.</enum><header>Encouraging colleges and universities to <quote>go green</quote></header> <subsection id="H23ED008117014E6F89D0ED1FF7535BB1"><enum>(a)</enum><header>Findings</header><text>The Committee on Education and Labor of the House of Representatives makes the following findings:</text> <paragraph id="H84CDAF92327446DBA5F23778C7D7B666"><enum>(1)</enum><text>A commitment to and academic programs for environmental and economic sustainability are essential for our Nation’s future prosperity.</text></paragraph> <paragraph id="HD4AAC66C6050453CAF72205CD35D00CF"><enum>(2)</enum><text>The more than 4,200 higher education institutions in the United States have the capacity to innovatively leverage spending and change consumption patterns by incorporating concepts of sustainability into their academic programs and by modeling sustainable economic and environmental practices for their communities.</text></paragraph> <paragraph id="HE6D1A6F7B6AC47518DDE79B9A37563DA"><enum>(3)</enum><text>Many colleges and universities have interdisciplinary programs or centers focusing on equipping students with the academic content knowledge needed to understand concepts of sustainability and <quote>going green</quote>.</text></paragraph> <paragraph id="H40702845C7214F92AC2F3DF9AC9DC200"><enum>(4)</enum><text>Many colleges and universities have programs related to the research of sustainability and sustainable systems.</text></paragraph> <paragraph id="H6B93195B7C144F54ACBB1226A4BECD40"><enum>(5)</enum><text>Academic programs related to sustainability vary in rigor because no national education content standards for academic sustainability programs currently exist.</text></paragraph> <paragraph id="H9D72C52FA1BA463AB3B8083DC9FEBBFE"><enum>(6)</enum><text>Colleges and universities may partner with businesses to encourage students and faculty to translate academic learning and research into practical solutions that promote sustainability.</text></paragraph> <paragraph id="HEC6F6D9B84354A2F953B9DD7222F9E04"><enum>(7)</enum><text>Colleges and universities that make an effort to reduce energy consumption and promote environmental sustainability not only reduce their own emissions, but also motivate the leaders of the next generation to action and create technical skills and resources to develop innovative solutions.</text></paragraph> <paragraph id="HC40A0601F07940D38FB02461005305B3"><enum>(8)</enum><text>Many colleges and universities have undertaken detailed, campus-wide assessments of their progress toward <quote>going green</quote> and sustainability or have measured their progress in specific sectors, such as operations, or specific parameters, such as recycling, energy, and water consumption.</text></paragraph> <paragraph id="H7C2AD3D3DBB24F42A3EB701C5019CB40"><enum>(9)</enum><text>No system that evaluates and compares college and university campuses in terms of overall sustainability-related academic programs and practices currently exists.</text></paragraph></subsection> <subsection id="HF26F2CA2CA2B4ED2B36F52B784314444"><enum>(b)</enum><header>Sense of the committee on education and labor</header><text>It is the sense of the Committee on Education and Labor that in order to encourage increased public awareness of the need to <quote>go green</quote> by using sustainable economic and environmental practices and rigorous sustainability academic programs on college and university campuses, the following should be encouraged:</text> <paragraph id="H1D76D549A9454DFBB58BE604E539041"><enum>(1)</enum><text>The development of educational standards by institutions of higher education to determine the necessary rigor and effectiveness of academic sustainability programs.</text></paragraph> <paragraph id="H479A78294053427EBD20C8597804705C"><enum>(2)</enum><text>Public awareness of the need for <quote>going green</quote> by using sustainable economic and environmental practices.</text></paragraph> <paragraph id="HF5DC205F364B447798A61E56000520F0"><enum>(3)</enum><text>Non-governmental efforts to improve economic and environmental sustainability efforts on college and university campuses, including holding national summits to share best practices.</text></paragraph> <paragraph id="H51AB96AC37884A37AC2B338CE56B049E"><enum>(4)</enum><text>Collaborative partnerships between Federal agencies, businesses, universities and communities to broaden sustainability practices.</text></paragraph></subsection></section> June 25, 2007 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed