[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3746 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3746

         To amend and extend the Higher Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 2007

Mr. McKeon (for himself, Mr. Keller of Florida, Mr. Boustany, Mr. Kline 
  of Minnesota, Mr. Fortuno, Mr. Wilson of South Carolina, Mr. David 
Davis of Tennessee, Mr. Souder, and Mr. Bishop of Utah) introduced the 
 following bill; which was referred to the Committee on Education and 
                                 Labor

_______________________________________________________________________

                                 A BILL


 
         To amend and extend the Higher Education Act of 1965.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``College Access and 
Opportunity Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Definition of institution of higher education.
        ``Sec. 101. Definition of institution of higher education.
        ``Sec. 102. Institutions outside the United States.
        ``Sec. 123. Restrictions on funds for for-profit schools.
Sec. 102. New borrower definition.
Sec. 103. Student speech and association rights.
Sec. 104. National Advisory Committee on Institutional Quality and 
                            Integrity.
Sec. 105. Alcohol and drug abuse prevention.
Sec. 106. Prior rights and obligations.
Sec. 107. Limitation on certain uses of funds.
        ``Sec. 124. Limitation on certain uses of funds.
Sec. 108. Consumer information and public accountability in higher 
                            education.
        ``Sec. 131. Consumer information and public accountability in 
                            higher education.
Sec. 109. Databases of student information.
        ``Sec. 132. Databases of student information prohibited.
Sec. 110. Performance-based organization.
Sec. 111. Treatment of territories and territorial student assistance.
Sec. 112. Institution and lender reporting and disclosure requirements.
 ``Part E--Lender and Institution Requirements Relating to Educational 
                                 Loans

        ``Sec. 151. Definitions.
        ``Sec. 152. Requirements for lenders and institutions 
                            participating in educational loan 
                            arrangements.
        ``Sec. 153. Interest rate report for institutions and lenders 
                            participating in educational loan 
                            arrangements.
                 TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality partnership grants.
              ``Part A--Teacher Quality Partnership Grants

        ``Sec. 201. Authorization of appropriations.
        ``Sec. 202. Purposes and definitions.
        ``Sec. 202. Partnership grants.
        ``Sec. 203. Administrative provisions.
        ``Sec. 204. Accountability and evaluation.
        ``Sec. 205. Accountability for programs that prepare teachers.
        ``Sec. 205A. Teacher development.
        ``Sec. 206. State Functions.
        ``Sec. 207. General Provisions.
        ``Sec. 208. Authorization of appropriations.
Sec. 202. Repeal of Part B (preparing tomorrow's teachers to use 
                            technology).
Sec. 203. General provisions.
                      ``Part B--General Provisions

        ``Sec. 221. Limitations.
Sec. 204. Teacher incentive fund program.
                ``Part C--Teacher Incentive Fund Program

        ``Sec. 231. Purposes; definitions.
        ``Sec. 232. Teacher incentive fund grants.
        ``Sec. 233. Report and evaluation.
        ``Sec. 234. Authorization of appropriations.
Sec. 205. National teacher corps.
                    ``Part D--NATIONAL TEACHER CORPS

        ``Sec. 241. Purposes.
        ``Sec. 242. Definitions.
        ``Sec. 243. Grant program authorized.
        ``Sec. 244. Grant requirements.
        ``Sec. 245. Authorized activities.
        ``Sec. 246. Evaluation.
        ``Sec. 247. Authorization of appropriations.
Sec. 206. Transition.
                      TITLE III--INSTITUTIONAL AID

Sec. 301. Title III Grants for American Indian Tribally Controlled 
                            Colleges and Universities.
Sec. 302. Alaska Native and Native Hawaiian-serving institutions.
Sec. 303. Grants to Part B institutions.
Sec. 304. Technical Amendments.
Sec. 305. Title III authorizations.
                      TITLE IV--STUDENT ASSISTANCE

                       Part A--GRANTS TO STUDENTS

Sec. 401. Pell Grants.
Sec. 402. TRIO programs.
Sec. 403. TRIO reform.
        ``Sec. 402G. Staff development activities.
        ``Sec. 402H. Evaluations.
Sec. 404. GEARUP.
Sec. 405. Federal Supplemental Educational Opportunity Grants.
Sec. 406. LEAP.
Sec. 407. HEP/CAMP program.
Sec. 408. Robert C. Byrd Honors Scholarship Program.
      ``subpart 6--robert c. byrd american competitiveness program

        ``Sec. 419A. Robert C. Byrd mathematics and science honors 
                            scholarship program.
        ``Sec. 419B. Mathematics and science incentive program.
        ``Sec. 419C. Adjunct teacher corps.
        ``Sec. 419D. Authorization of appropriations.
Sec. 409. Child care access.
Sec. 410. Learning anytime anywhere partnerships.
             Part B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

Sec. 421. PLUS loan interest rates.
Sec. 422. Loan forgiveness for service in areas of national need.
        ``Sec. 428K. Loan forgiveness for service in areas of national 
                            need.
Sec. 423. Additional administrative provisions.
Sec. 424. Elimination of auction.
                  Part C--FEDERAL WORK-STUDY PROGRAMS

Sec. 441. Authorization of appropriations.
Sec. 442. Community service.
Sec. 443. Allocation of funds.
Sec. 444. Books and supplies.
Sec. 445. Job location and development.
Sec. 446. Work colleges.
Sec. 447. Work assistance for students in comprehensive postsecondary 
                            programs for students with mental 
                            retardation.
        ``Sec. 449. Work assistance for students in comprehensive 
                            postsecondary programs for students with 
                            mental retardation.
                  Part D--FEDERAL DIRECT LOAN PROGRAM

Sec. 451. Income contingent repayment.
                  Part E--FEDERAL PERKINS LOAN PROGRAM

Sec. 461. Reauthorization of program.
Sec. 462. Loan terms and conditions.
Sec. 463. Loan cancellation.
Sec. 464. Technical Amendments.
                         Part F--NEED ANALYSIS

Sec. 471. Significantly simplifying the student aid Application 
                            process.
Sec. 472. Discretion of student financial aid administrators.
  Part G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE

Sec. 481. Expanding information dissemination regarding eligibility for 
                            Pell Grants.
Sec. 482. Student eligibility.
Sec. 483. Institutional refunds.
Sec. 484. Institutional and financial assistance information for 
                            students.
Sec. 485. Distance education demonstration program.
Sec. 486. College Affordability Demonstration Program.
        ``Sec. 486A. College Affordability Demonstration Program.
Sec. 487. Program participation agreements.
Sec. 488. Additional technical and conforming Amendments.
Sec. 489. Pell Grant eligibility provision.
                       Part H--PROGRAM INTEGRITY

Sec. 495. Accreditation.
Sec. 496. Report to Congress on prevention of fraud and abuse in 
                            student financial aid programs.
        ``Sec. 499. Report to Congress on prevention of fraud and abuse 
                            in student financial aid programs.
Sec. 497. Report to Congress on compliance with the Paperwork Reduction 
                            Act of 1995.
        ``Sec. 499A. Report to Congress on the Compliance of the 
                            student aid Application process with the 
                            requirements of the Paperwork Reduction Act 
                            of 1995.
                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitional changes.
Sec. 502. Assurance of enrollment of needy students.
Sec. 503. Additional Amendments.
Sec. 504. Postbaccalaureate opportunities for Hispanic Americans.
   ``Part B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                               AMERICANS

        ``Sec. 511. Purposes.
        ``Sec. 512. Program authority and eligibility.
        ``Sec. 513. Authorized activities.
        ``Sec. 514. Application and duration.
Sec. 505. Authorization of appropriations.
                     TITLE VI--TITLE VI AMENDMENTS

Sec. 601. International and foreign language studies.
        ``Sec. 607. Advancing America through foreign language 
                            partnerships.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
        ``Sec. 621. Program for foreign service professionals.
Sec. 604. Evaluation, outreach, and dissemination.
        ``Sec. 632. Evaluation, outreach, and dissemination.
Sec. 605. Advisory Board.
        ``Sec. 633. International Higher Education Advisory Board.
Sec. 606. Recruiter access to students and student recruiting 
                            information; safety.
        ``Sec. 634. Recruiter access to students and student recruiting 
                            information.
        ``Sec. 635. Student safety.
Sec. 607. National study of foreign language heritage communities.
        ``Sec. 636. National study of foreign language heritage 
                            communities.
                    TITLE VII--TITLE VII AMENDMENTS

Sec. 701. Javits fellowship program.
Sec. 702. Graduate assistance in areas of national need.
Sec. 703. Thurgood Marshall legal educational opportunity program.
Sec. 704. Fund for the improvement of postsecondary education.
Sec. 705. Urban community service.
Sec. 706. Demonstration projects to ensure students with disabilities 
                            receive a quality higher education.
                    TITLE VIII--CLERICAL AMENDMENTS

Sec. 801. Clerical Amendments.
              TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

               Part A--EDUCATION OF THE DEAF ACT OF 1986

Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Agreement with Gallaudet University.
Sec. 903. Authority.
Sec. 904. Agreement for the National Technical Institute for the Deaf.
Sec. 905. Definitions.
Sec. 906. Audit.
Sec. 907. Reports.
Sec. 908. Monitoring, evaluation, and reporting.
Sec. 909. Liaison for educational programs.
Sec. 910. Federal endowment programs for Gallaudet University and the 
                            National Technical Institute for the Deaf.
Sec. 911. Oversight and effect of agreements.
Sec. 912. International students.
Sec. 913. Research priorities.
Sec. 914. Authorization of appropriations.
        ``Sec. 1. Short title.
                   Part B--ADDITIONAL EDUCATION LAWS

Sec. 921. Amendment to Higher Education Amendments of 1998.
Sec. 922. Tribally Controlled College or University Assistance Act of 
                            1978.
Sec. 923. Navajo Community College Act.
Sec. 924. Education Amendments of 1992.
Sec. 925. Study of student learning outcomes and public accountability.
Sec. 926. Study of education-related indebtedness of medical school 
                            graduates.
Sec. 927. Increase in college textbook prices.
Sec. 928. Independent evaluation of distance education programs.
Sec. 929. Study of campus-based program allocation of funds.
Sec. 930. Summit on sustainability.
Sec. 931. Study of residency applications.

SEC. 2. REFERENCES; EFFECTIVE DATE.

    (a) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
    (b) Effective Date.--Except as otherwise provided in this Act, the 
amendments made by this Act shall take effect on the date of enactment 
of this Act.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    (a) Amendment.--Title I is amended by striking sections 101 and 102 
(20 U.S.C. 1001, 1002) and inserting the following:

``SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

    ``(a) Institution of Higher Education.--For purposes of this Act, 
the term `institution of higher education' means an educational 
institution in any State that--
            ``(1) admits as regular students only individuals who--
                    ``(A) meet the requirements of section 484(d)(3), 
                or have a certificate of graduation from a school 
                providing secondary education, or the recognized 
                equivalent of such a certificate;
                    ``(B) are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located; or
                    ``(C) will be dually enrolled in that institution 
                and a secondary school;
            ``(2) is legally authorized within such State to provide a 
        program of education beyond secondary education;
            ``(3)(A) is accredited by a nationally recognized 
        accrediting agency or association; or
            ``(B) if not so accredited, is a public or nonprofit 
        institution that has been granted preaccreditation status by 
        such an agency or association that has been recognized by the 
        Secretary for the granting of preaccreditation status, and the 
        Secretary has determined that there is satisfactory assurance 
        that the institution will meet the accreditation standards of 
        such an agency or association within a reasonable time; and
            ``(4) meets either of the following criteria:
                    ``(A) is a nonprofit, for-profit, or public 
                institution that--
                            ``(i) provides an educational program for 
                        which the institution awards a bachelor's, 
                        graduate, or professional degree;
                            ``(ii) provides not less than a 2-year 
                        educational program which is acceptable for 
                        full credit towards such a degree;
                            ``(iii) provides not less than a 1-year 
                        program of training that prepares students for 
                        gainful employment in a recognized occupation; 
                        or
                            ``(iv) awards a degree that is acceptable 
                        for admission to graduate or professional 
                        degree programs, subject to the review and 
                        approval of the Secretary; or
                    ``(B) is a nonprofit, for-profit, or public 
                institution that provides an eligible program (as 
                defined in section 481)--
                            ``(i) for which the institution awards a 
                        certificate; and
                            ``(ii) that prepares students for gainful 
                        employment in a recognized occupation.
    ``(b) Additional Limitations.--
            ``(1) For-profit postsecondary institutions.--
                    ``(A) Duration of accreditation.--A for-profit 
                institution shall not be considered to be an 
                institution of higher education unless such institution 
                is accredited by a nationally recognized accrediting 
                agency or association and such institution has been in 
                existence for at least 2 years.
                    ``(B) Institutional eligibility only for 
                competitive grants.--For the purposes of any program 
                providing grants to institutions for use by the 
                institution (and not for distribution among students), 
                a for-profit institution shall not be considered to be 
                an institution of higher education under this section 
                if such grants are awarded on any basis other than 
                competition on the merits of the grant proposal or 
                application.
            ``(2) Postsecondary vocational institutions.--A nonprofit 
        or public institution that meets the criteria of subsection 
        (a)(4)(B) shall not be considered to be an institution of 
        higher education unless such institution has been in existence 
        for at least 2 years.
            ``(3) Limitations based on management.--An institution 
        shall not be considered to meet the definition of an 
        institution of higher education in this section if--
                    ``(A) the institution, or an affiliate of the 
                institution that has the power, by contract or 
                ownership interest, to direct or cause the direction of 
                the management or policies of the institution, has 
                filed for bankruptcy, except that this paragraph shall 
                not apply to a nonprofit institution, the primary 
                function of which is to provide health care educational 
                services (or an affiliate of such an institution that 
                has the power, by contract or ownership interest, to 
                direct or cause the direction of the institution's 
                management or policies) that filed for bankruptcy under 
                chapter 11 of title 11, United States Code, between 
                July 1, 1998, and December 1, 1998; or
                    ``(B) the institution, the institution's owner, or 
                the institution's chief executive officer has been 
                convicted of, or has pled nolo contendere or guilty to, 
                a crime involving the acquisition, use, or expenditure 
                of Federal, State, or local government funds, or has 
                been judicially determined to have committed a crime 
                involving the acquisition, use, or expenditure 
                involving Federal, State, or local government funds.
            ``(4) Limitation on course of study or enrollment.--An 
        institution shall not be considered to meet the definition of 
        an institution of higher education in subsection (a) if such 
        institution--
                    ``(A) offers more than 50 percent of such 
                institution's courses by correspondence (excluding 
                courses offered by telecommunications as defined in 
                section 484(l)(4)), unless the institution is an 
                institution that meets the definition in section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998;
                    ``(B) enrolls 50 percent or more of the 
                institution's students in correspondence courses 
                (excluding courses offered by telecommunications as 
                defined in section 484(l)(4)), unless the institution 
                is an institution that meets the definition in section 
                3(3)(C) of the Carl D. Perkins Vocational and Technical 
                Education Act of 1998, except that the Secretary, at 
                the request of the institution, may waive the 
                applicability of this subparagraph to the institution 
                for good cause, as determined by the Secretary in the 
                case of an institution of higher education that 
                provides a 2- or 4-year program of instruction (or 
                both) for which the institution awards an associate or 
                baccalaureate degree, respectively;
                    ``(C) has a student enrollment in which more than 
                25 percent of the students are incarcerated, except 
                that the Secretary may waive the limitation contained 
                in this subparagraph for an institution that provides a 
                2- or 4-year program of instruction (or both) for which 
                the institution awards a bachelor's degree, or an 
                associate's degree or a postsecondary certificate, 
                respectively; or
                    ``(D) has a student enrollment in which more than 
                50 percent of the students either do not meet the 
                requirements of section 484(d)(3) or do not have a 
                secondary school diploma or its recognized equivalent, 
                and does not provide a 2- or 4-year program of 
                instruction (or both) for which the institution awards 
                an associate's degree or a bachelor's degree, 
                respectively, except that the Secretary may waive the 
                limitation contained in this subparagraph if an 
                institution demonstrates to the satisfaction of the 
                Secretary that the institution exceeds such limitation 
                because the institution serves, through contracts with 
                Federal, State, or local government agencies, 
                significant numbers of students who do not meet the 
                requirements of section 484(d)(3) or do not have a 
                secondary school diploma or its recognized equivalent.
    ``(c) List of Accrediting Agencies.--For purposes of this section, 
the Secretary shall publish a list of nationally recognized accrediting 
agencies or associations that the Secretary determines, pursuant to 
subpart 2 of part H of title IV, to be reliable authority as to the 
quality of the education or training offered.
    ``(d) Certification.--The Secretary shall certify, for the purposes 
of participation in title IV, an institution's qualification as an 
institution of higher education in accordance with the requirements of 
subpart 3 of part H of title IV.
    ``(e) Loss of Eligibility.--An institution of higher education 
shall not be considered to meet the definition of an institution of 
higher education in this section for the purposes of participation in 
title IV if such institution is removed from eligibility for funds 
under title IV as a result of an action pursuant to part H of title IV.

``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

    ``(a) Institutions Outside the United States.--
            ``(1) In general.--An institution outside the United States 
        shall be considered to be an institution of higher education 
        only for purposes of part B of title IV if the institution is 
        comparable to an institution of higher education, as defined in 
        section 101, is legally authorized by the education ministry 
        (or comparable agency) of the country in which the school is 
        located, and has been approved by the Secretary for purposes of 
        that part. The Secretary shall establish criteria by regulation 
        for that approval and that determination of comparability. An 
        institution may not be so approved or determined to be 
        comparable unless such institution is a public or nonprofit 
        institution, except that, subject to paragraph (2)(B), a 
        nursing school, a graduate medical school or veterinary school 
        located outside the United States may be a for-profit 
        institution.
            ``(2) Medical, nursing, and veterinary school criteria.--In 
        the case of a nursing school or a graduate medical or 
        veterinary school outside the United States, such criteria 
        shall include a requirement that a student attending such 
        school outside the United States is ineligible for loans made, 
        insured, or guaranteed under part B of title IV unless--
                    ``(A) in the case of a graduate medical school 
                located outside the United States--
                            ``(i)(I) at least 60 percent of those 
                        enrolled in, and at least 60 percent of the 
                        graduates of, the graduate medical school 
                        outside the United States were not persons 
                        described in section 484(a)(5) in the year 
                        preceding the year for which a student is 
                        seeking a loan under part B of title IV; and
                            ``(II) at least 60 percent of the 
                        individuals who were students or graduates of 
                        the graduate medical school outside the United 
                        States or Canada (both nationals of the United 
                        States and others) taking the examinations 
                        administered by the Educational Commission for 
                        Foreign Medical Graduates received a passing 
                        score in the year preceding the year for which 
                        a student is seeking a loan under part B of 
                        title IV; or
                            ``(ii) the graduate medical school has or 
                        had a clinical training program that was 
                        approved by a State as of January 1, 1992, and 
                        continues to operate a clinical training 
                        program in at least one State, which is 
                        approved by that State;
                    ``(B) in the case of a veterinary school located 
                outside the United States that is not a public or 
                nonprofit institution, the school's students complete 
                their clinical training at an approved veterinary 
                school located in the United States; or
                    ``(C) in the case of a nursing school located 
                outside the United States that is not a public or 
                nonprofit institution, the school--
                            ``(i) has, as of the date of enactment of 
                        the College Access and Opportunity Act of 2007, 
                        agreements with hospitals or accredited nursing 
                        schools inside the United States; and
                            ``(ii) the school's students are required 
                        to complete their senior year at such hospitals 
                        or accredited nurshing schools.
    ``(b) Advisory Panel.--
            ``(1) In general.--For the purpose of qualifying a foreign 
        medical school as an institution of higher education only for 
        purposes of part B of title IV, the Secretary shall publish 
        qualifying criteria by regulation and establish an advisory 
        panel of medical experts that shall--
                    ``(A) evaluate the standards of accreditation 
                applied to applicant foreign medical schools; and
                    ``(B) determine the comparability of those 
                standards to standards for accreditation applied to 
                United States medical schools.
            ``(2) Failure to release information.--The failure of an 
        institution outside the United States to provide, release, or 
        authorize release to the Secretary of such information as may 
        be required by subsection (a)(2) shall render such institution 
        ineligible for the purpose of part B of title IV.''.
    (b) Restrictions on Funds for For-Profit Schools.--Part B of title 
I is amended by inserting after section 122 (20 U.S.C. 1011k) the 
following new section:

``SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT SCHOOLS.

    ``(a) In General.--Notwithstanding any other provision of this Act 
authorizing the use of funds by an institution of higher education that 
receives funds under this Act, none of the funds made available under 
this Act to a for-profit institution of higher education may be used 
for--
            ``(1) construction, maintenance, renovation, repair, or 
        improvement of classrooms, libraries, laboratories, or other 
        facilities;
            ``(2) establishing, improving, or increasing an endowment 
        fund; or
            ``(3) establishing or improving an institutional 
        development office to strengthen or improve contributions from 
        alumni and the private sector.
    ``(b) Exception.--Subsection (a) shall not apply to funds received 
by the institution from the grant, loan, or work assistance that is 
awarded under title IV to the students attending such institution.
    ``(c) Ineligibility for Certain Programs.--Notwithstanding section 
101, a for-profit institution of higher education shall not be 
considered an eligible institution for the programs under titles III 
and V of this Act.''.
    (c) Conforming Amendments.--
            (1) Section 114(a) (20 U.S.C. 1011c(a)) is amended by 
        striking ``(as defined in section 102)''.
            (2) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (3) Subsection (d) of section 484 (20 U.S.C. 1091(d)) is 
        amended by striking the designation and heading of such 
        subsection and inserting the following:
    ``(d) Satisfaction of Secondary Education Standards.--''.
            (4) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by 
        striking ``102(a)(3)(A), 102(a)(3)(B)'' and inserting 
        ``101(b)(4)(A), 101(b)(4)(B)''.
            (5) Section 487(c)(1)(A)(iii) (20 U.S.C. 
        1094(c)(1)(A)(iii)) is amended by striking ``section 
        102(a)(1)(C)'' and inserting ``section 102''.
            (6) Section 487(d) (20 U.S.C. 1094(d)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (7) Subsections (j) and (k) of section 496 (20 U.S.C. 
        1099b(j), (k)) are each amended by striking ``section 102'' and 
        inserting ``section 101''.
            (8) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.
            (9) Section 498(i)(1) (20 U.S.C. 1099c(i)(1)) is amended by 
        striking ``section 102'' and inserting ``section 101''.
            (10) Section 498(j)(1) (20 U.S.C. 1099c) is amended by 
        striking ``except that such branch shall not be required to 
        meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C) 
        prior to seeking such certification'' and inserting ``except 
        that such branch shall not be required to be in existence for 
        at least 2 years prior to seeking such certification''.
            (11) Section 498B(b) (20 U.S.C. 1099c-2(b)) is amended by 
        striking ``section 102(a)(1)(C)'' and inserting ``section 
        102''.
    (d) Effect on Other Laws.--
            (1) Inclusion of for-profit institutions in definition.--
        The inclusion of proprietary and for-profit institutions within 
        the definition of the term ``institution of higher education''' 
        in section 101 of the Higher Education Act of 1965 (20 U.S.C. 
        1001) pursuant to the amendment made by subsection (a) of this 
        section shall not apply to any other provision of law (other 
        than the Higher Education Act of 1965) enacted before the date 
        of enactment of this Act that references section 101 of the 
        Higher Education Act of 1965 (or that term as so defined), 
        except as expressly provided by an amendment to, or other 
        revision of the application of, such law enacted after such 
        date of enactment.
            (2) Inclusion of for-profit institutions as title iii or v 
        eligible institution.--Any reference in any provision of law 
        other than the Higher Education Act of 1965 to institutions of 
        higher education that are eligible to participate in programs 
        under title III or V of such Act (20 U.S.C. 1051 et. seq., 1101 
        et seq.) shall not be treated, as a consequence of the 
        amendment to section 101 of the Higher Education Act of 1965 
        (20 U.S.C. 1001) by subsection (a) of this section, as 
        including a reference to a for-profit or proprietary 
        institution of higher education, except as expressly provided 
        by an amendment to, or other revision of the application of, 
        such law enacted after such date of enactment.

SEC. 102. NEW BORROWER DEFINITION.

    Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as 
follows:
            ``(7) New borrower.--The term `new borrower' when used with 
        respect to any date for any loan under any provision of--
                    ``(A) part B or part D of title IV means an 
                individual who on that date has no outstanding balance 
                of principal or interest owing on any loan made, 
                insured, or guaranteed under either of those parts; and
                    ``(B) part E of title IV means an individual who on 
                that date has no outstanding balance of principal or 
                interest owing on any loan made under that part.''.

SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS.

    Section 112 (20 U.S.C. 1011a) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Protection of Rights.--
            ``(1) It is the sense of Congress that no student attending 
        an institution of higher education on a full- or part-time 
        basis should, on the basis of participation in protected speech 
        or protected association, be excluded from participation in, be 
        denied the benefits of, or be subjected to discrimination or 
        official sanction under any education program, activity, or 
        division of the institution directly or indirectly receiving 
        financial assistance under this Act, whether or not such 
        program, activity, or division is sponsored or officially 
        sanctioned by the institution; and
            ``(2) It is the sense of Congress that--
                    ``(A) the diversity of institutions and educational 
                missions is one of the key strengths of American higher 
                education;
                    ``(B) individual colleges and universities have 
                different missions and each institution should design 
                its academic program in accordance with its educational 
                goals;
                    ``(C) within the context of its institutional 
                mission, a college should promote intellectual 
                pluralism and facilitate the free and open exchange of 
                ideas;
                    ``(D) students should not be intimidated, harassed, 
                discouraged from speaking out, discriminated against, 
                or subject to official sanction because of their 
                personal political, ideological, or religious beliefs; 
                and
                    ``(E) students should be treated equally and 
                fairly, including evaluation and grading, without 
                regard to or consideration of their personal political 
                views or ideological beliefs.
            ``(3) Nothing in paragraph (2) shall be construed to 
        modify, change, or infringe upon any constitutionally protected 
        religious liberty, freedom, expression, or association.''; and
            (2) in subsection (b)(1), by inserting after ``higher 
        education'' the following: ``, if the imposition of such 
        sanction is done objectively, fairly, and without regard to the 
        student's personal political, ideological, or religious 
        beliefs''.

SEC. 104. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
              INTEGRITY.

    (a) Membership.--Section 114(b) (20 U.S.C. 1011c(b)) is amended by 
adding at the end the following new sentence: ``A member of the 
Committee may continue to serve after the expiration of a term until a 
successor has been appointed.''.
    (b) Extension.--Section 114(g) (20 U.S.C. 1011c(g)) is amended by 
striking ``2004'' and inserting ``2013''.

SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION.

    Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding fiscal years'' and inserting 
        ``5 succeeding fiscal years''.

SEC. 106. PRIOR RIGHTS AND OBLIGATIONS.

    Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking ``1999 
and for each of the 4'' each place it appears and inserting ``2008 and 
for each of the 5''.

SEC. 107. LIMITATION ON CERTAIN USES OF FUNDS.

    Part B of title I is further amended by adding after section 123 
(as added by section 101(b) of this Act) the following new section:

``SEC. 124. LIMITATION ON CERTAIN USES OF FUNDS.

    ``No funds made available to carry out this Act may be used--
            ``(1) for publicity or propaganda purposes not authorized 
        by the Congress before the date of enactment of the College 
        Access and Opportunity Act of 2007; or
            ``(2) unless authorized by law in effect on such date of 
        enactment, to produce any prepackaged news story intended for 
        broadcast or distribution unless such story includes a clear a 
        notification contained within the text or audio of such story 
        stating that the prepackaged news story was prepared or funded 
        by the Department of Education.''.

SEC. 108. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    Section 131 (20 U.S.C. 1015) is amended to read as follows:

``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
              EDUCATION.

    ``(a) Purpose.--It is the purpose of this section to--
            ``(1) provide students and families with an easy-to-use, 
        comprehensive web-based tool for researching and comparing 
        institutions of higher education;
            ``(2) increase the transparency of college cost, price, and 
        financial aid; and
            ``(3) raise public awareness of information available about 
        postsecondary education, particularly among low-income 
        families, non-traditional student populations, and first-
        generation college students.
    ``(b) College Opportunity On-Line (COOL) Website Re-Design 
Process.--In carrying out this section, the Commissioner of Education 
Statistics--
            ``(1) shall identify the data elements that are of greatest 
        importance to prospective students, enrolled students, and 
        their families, paying particular attention to low-income, non-
        traditional student populations, and first-generation college 
        students;
            ``(2) shall convene a group of individuals with expertise 
        in the collection and reporting of data related to institutions 
        of higher education to--
                    ``(A) determine the relevance of particular data 
                elements to prospective students, enrolled students, 
                and families;
                    ``(B) assess the cost-effectiveness of various ways 
                in which institutions of higher education might produce 
                relevant data;
                    ``(C) determine the general comparability of the 
                data across institutions of higher education;
                    ``(D) make recommendations regarding the inclusion 
                of specific data items and the most effective and least 
                burdensome methods of collecting and reporting useful 
                data from institutions of higher education; and
            ``(3) shall ensure that the redesigned COOL website--
                    ``(A) uses, to the extent practicable, data 
                elements currently provided by institutions of higher 
                education to the Secretary;
                    ``(B) includes clear and uniform information 
                determined to be relevant to prospective students, 
                enrolled students, and families;
                    ``(C) provides comparable information, by ensuring 
                that data are based on accepted criteria and common 
                definitions;
                    ``(D) includes a sorting function that permits 
                users to customize their search for and comparison of 
                institutions of higher education based on the 
                information identified through the process as 
                prescribed in paragraph (1) as being of greatest 
                relevance to choosing an institution of higher 
                education.
    ``(c) Data Collection.--
            ``(1) Data system.--The Commissioner of Education 
        Statistics shall continue to redesign the relevant parts of the 
        Integrated Postsecondary Education Data System to include 
        additional data as required by this section and to continue to 
        improve the usefulness and timeliness of data collected by such 
        systems in order to inform consumers about institutions of 
        higher education.
            ``(2) College consumer profile.--The Secretary shall 
        continue to publish on the COOL website, for each academic year 
        and in accordance with standard definitions developed by the 
        Commissioner of Education Statistics (including definitions 
        developed under section 131(a)(3)(A) as in effect on the day 
        before the date of enactment of the College Access and 
        Opportunity Act of 2007), from at least all institutions of 
        higher education participating in programs under title IV the 
        following information:
                    ``(A) The tuition and fees charged for a first-
                time, full-time, full-year undergraduate student.
                    ``(B) The room and board charges for a first-time, 
                full-time, full-year undergraduate student.
                    ``(C) The price of attendance for a first-time, 
                full-time, full-year undergraduate student, consistent 
                with the provisions of section 472.
                    ``(D) The average amount of financial assistance 
                received by a first-year, full-time, full-year 
                undergraduate student, including--
                            ``(i) each type of assistance or benefits 
                        described in 428(a)(2)(C)(ii);
                            ``(ii) institutional and other assistance; 
                        and
                            ``(iii) Federal loans under parts B, D, and 
                        E of title IV.
                    ``(E) The number of first-time, full-time, full-
                year undergraduate students receiving financial 
                assistance described in each clause of subparagraph 
                (D).
                    ``(F) The institutional instructional expenditure 
                per full-time equivalent student.
                    ``(G) Student enrollment information, including 
                information on the number and percentage of full-time 
                and part-time students, the number and percentage of 
                resident and non-resident students.
                    ``(H) Faculty-to-student ratios.
                    ``(I) Faculty information, including the total 
                number of faculty and the percentage of faculty who are 
                full-time employees of the institution and the 
                percentage who are part-time.
                    ``(J) Completion and graduation rates of 
                undergraduate students, identifying whether the 
                completion or graduation rates are from a 2-year or 4-
                year program of instruction and, in the case of a 2-
                year program of instruction, the percentage of students 
                who transfer to 4-year institutions prior or subsequent 
                to completion or graduation.
                    ``(K) A link to the institution of higher education 
                with information of interest to students including 
                mission, accreditation, student services (including 
                services for students with disabilities), transfer of 
                credit policies and, if appropriate, placement rates 
                and other measures of success in preparing students for 
                entry into or advancement in the workforce.
                    ``(L) The college affordability information 
                elements specified in subsection (d).
                    ``(M) Any additional information that the Secretary 
                may require.
    ``(d) College Affordability Information Elements.--The college 
affordability information elements required by subsection (c)(2)(L) 
shall include, for each institution submitting data--
            ``(1) the sticker price of the institution for the 3 most 
        recent academic years;
            ``(2) the net tuition price of the institution for the 3 
        most recent academic years;
            ``(3) the percentage change in both the sticker price and 
        the net tuition price over the 3-year time period that is being 
        reported;
            ``(4) the percentage change in the CPI over the same time 
        period; and
            ``(5) whether the institution has been placed on 
        affordability alert status as required by subsection (e)(3).
    ``(e) Outcomes and Actions.--
            ``(1) Response from institution.--Effective on June 30, 
        2008, an institution that increases its sticker price at a 
        percentage rate for any 3-year interval ending on or after that 
        date that exceeds two times the rate of change in the CPI over 
        the same time period shall provide a report to the Secretary, 
        in such a form, at such time, and containing such information 
        as the Secretary may require. Such report shall be published by 
        the Secretary on the COOL website, and shall include--
                    ``(A) a description of the factors contributing to 
                the increase in the institution's costs and in the 
                tuition and fees charged to students; and
                    ``(B) if determinations of tuition and fee 
                increases are not within the exclusive control of the 
                institution, a description of the agency or 
                instrumentality of State government or other entity 
                that participates in such determinations and the 
                authority exercised by such agency, instrumentality, or 
                entity.
            ``(2) Quality-efficiency task forces.--
                    ``(A) Required.--Each institution subject to 
                paragraph (1) that has a percentage change in its 
                sticker price that is in the highest 5 percent of all 
                institutions subject to paragraph (1) shall establish a 
                quality-efficiency task force to review the operations 
                of such institution.
                    ``(B) Membership.--Such task force shall include 
                administrators, business and civic leaders, and 
                faculty, and may include students, trustees, parents of 
                students, and alumni of such institution.
                    ``(C) Functions.--Such task force shall analyze 
                institutional operating costs in comparison with such 
                costs at other institutions within the class of 
                institutions. Such analysis should identify areas 
                where, in comparison with other institutions in such 
                class, the institution operates more expensively to 
                produce a similar result. Any identified areas should 
                then be targeted for in-depth analysis for cost 
                reduction opportunities.
                    ``(D) Report.--The results of the analysis by a 
                quality-efficiency task force under this paragraph 
                shall be made available to the public on the COOL 
                website.
            ``(3) Consequences for 2-year continuation of failure.--If 
        the Secretary determines that an institution that is subject to 
        paragraph (1)) has failed to reduce the subsequent increase in 
        sticker price below two times the rate of change in the CPI for 
        2 consecutive academic years subsequent to the 3-year interval 
        used under paragraph (1), the Secretary shall place the 
        institution on affordability alert status.
            ``(4) Exemptions.--Notwithstanding paragraph (3), an 
        institution shall not be placed on affordability alert status 
        if, for any 3-year interval for which sticker prices are 
        computed under paragraph (1)--
                    ``(A) with respect the class of institutions 
                described in paragraph (6) to which the institution 
                belongs, the sticker price of the institution is in the 
                lowest quartile of institutions within such class, as 
                determined by the Secretary, during the last year of 
                such 3-year interval; or
                    ``(B) the institution has a percentage change in 
                its sticker price computed under paragraph (1) that 
                exceeds two times the rate of change in the CPI over 
                the same time period, but the dollar amount of the 
                sticker price increase is less than $500.
            ``(5) Information to state agencies.--Any institution that 
        reports under paragraph (1)(B) that an agency or 
        instrumentality of State government or other entity 
        participates in the determinations of tuition and fee increases 
        shall, prior to submitting any information to the Secretary 
        under this subsection, submit such information to, and request 
        the comments and input of, such agency, instrumentality, or 
        entity. With respect to any such institution, the Secretary 
        shall provide a copy of any communication by the Secretary with 
        that institution to such agency, instrumentality, or entity.
            ``(6) Classes of institutions.--For purposes of this 
        subsection, the classes of institutions shall be those sectors 
        used by the Integrated Postsecondary Education Data System, 
        based on whether the institution is public, nonprofit private, 
        or for-profit private, and whether the institution has a 4-
        year, 2-year, or less than 2-year program of instruction.
            ``(7) Data rejection.--Nothing in this subsection shall be 
        construed as allowing the Secretary to reject the data 
        submitted by an individual institution of higher education.
    ``(f) Information to the Public.--The Secretary shall work with 
public and private entities to promote broad public awareness, 
particularly among middle and high school students and their families, 
of the information made available under this section, including by 
distribution to students who participate in or receive benefits from 
means-tested federally funded education programs and other Federal 
programs determined by the Secretary.
    ``(g) Fines.--In addition to actions authorized in section 487(c), 
the Secretary may impose a fine in an amount not to exceed $25,000 on 
an institution of higher education for failing to provide the 
information required by this section in a timely and accurate manner, 
or for failing to otherwise cooperate with the National Center for 
Education Statistics regarding efforts to obtain data under subsections 
(c) and (j) and pursuant to the program participation agreement entered 
into under section 487.
    ``(h) GAO Study and Report.--
            ``(1) GAO study.--The Comptroller General shall conduct a 
        study of the policies and procedures implemented by 
        institutions in increasing the affordability of postsecondary 
        education. Such study shall include information with respect 
        to--
                    ``(A) a list of those institutions that--
                            ``(i) have reduced their sticker prices; or
                            ``(ii) are within the least costly quartile 
                        of institutions within each class described in 
                        subsection (e)(6);
                    ``(B) policies implemented to stem the increase in 
                tuition and fees and institutional costs;
                    ``(C) the extent to which room and board costs and 
                prices changed;
                    ``(D) the extent to which other services were 
                altered to affect tuition and fees;
                    ``(E) the extent to which the institution's 
                policies affected student body demographics and time to 
                completion;
                    ``(F) what, if any, operational factors played a 
                role in reducing tuition and fees;
                    ``(G) the extent to which academic quality was 
                affected, and how;
                    ``(H) if the institution is a public institution, 
                the relationship between State and local appropriations 
                and the institution's tuition and fees;
                    ``(I) the extent to which policies and practices 
                reducing costs and prices may be replicated from one 
                institution to another; and
                    ``(J) other information as necessary to determine 
                best practices in increasing the affordability of 
                postsecondary education.
            ``(2) Interim and final reports.--The Comptroller General 
        shall submit an interim and a final report regarding the 
        findings of the study required by paragraph (1) to the 
        appropriate authorizing committees of Congress. The interim 
        report shall be submitted not later than July 31, 2011, and the 
        final report shall be submitted not later than July 31, 2013.
    ``(i) Student Aid Recipient Survey.--
            ``(1) Survey required.--The Secretary shall conduct a 
        survey of student aid recipients under title IV on a regular 
        cycle and State-by-State basis, but not less than once every 4 
        years--
                    ``(A) to identify the population of students 
                receiving Federal student aid;
                    ``(B) to describe the income distribution and other 
                socioeconomic characteristics of federally aided 
                students;
                    ``(C) to describe the combinations of aid from 
                State, Federal, and private sources received by 
                students from all income groups;
                    ``(D) to describe the debt burden of educational 
                loan recipients and their capacity to repay their 
                education debts, and the impact of such debt burden on 
                career choices;
                    ``(E) to describe the role played by the price of 
                postsecondary education in the determination by 
                students of what institution to attend; and
                    ``(F) to describe how the increased costs of 
                textbooks and other instructional materials affects the 
                costs of postsecondary education to students.
            ``(2) Survey design.--The survey shall be representative of 
        full-time and part-time, undergraduate, graduate, and 
        professional and current and former students in all types of 
        institutions, and designed and administered in consultation 
        with the Congress and the postsecondary education community.
            ``(3) Dissemination.--The Commissioner of Education 
        Statistics shall disseminate the information resulting from the 
        survey in both printed and electronic form.
    ``(j) Promotion of the Department of Education Federal Student 
Financial Aid Website.--The Secretary--
            ``(1) shall display a link to the Federal student financial 
        aid website of the Department of Education 
        (www.federalstudentaid.ed.gov) in a prominent place on the 
        homepage of the Department of Education website (www.ed.gov); 
        and
            ``(2) may use administrative funds available for the 
        Department's operations and expenses for purposes of 
        advertising and other promotion of the availability of the 
        Federal student financial aid website.
    ``(k) Promotion of Availability of Information Concerning Student 
Financial Aid Programs of Other Departments and Agencies.--
            ``(1) Collection and posting of information.--The Secretary 
        shall collect and post the eligibility requirements, 
        application procedures, financial terms and conditions, and 
        other relevant information for each non-departmental student 
        financial assistance program.
            ``(2) Manner of posting.--The information required by 
        paragraph (1)--
                    ``(A) shall be easily accessible through the 
                Federal student financial aid website required by 
                subsection (e)(1);
                    ``(B) shall be incorporated into the search matrix 
                on such website on pages pertaining to other options 
                for financial aid; and
                    ``(C) shall clearly describe the programs in a 
                manner that permits students and parents to readily 
                identify the programs that are appropriate to their 
                needs and eligibility.
            ``(3) Agency response.--Each Federal department and agency 
        shall promptly respond to surveys or other requests for the 
        information required by paragraph (1) and shall identify for 
        the Secretary any non-departmental student financial assistance 
        program operated, sponsored, or supported by such Federal 
        department or agency.
            ``(4) Definition.--For purposes of this subsection, the 
        term `non-departmental student financial assistance program' 
        means any grant, loan, scholarship, fellowship, or other form 
        of financial aid for students pursuing a postsecondary 
        education that is--
                    ``(A) distributed directly to the student or to the 
                student's account at the institution of higher 
                education; and
                    ``(B) operated, sponsored, or supported by a 
                Federal department or agency other than the Department 
                of Education.
    ``(l) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(m) Definitions.--For the purposes of this section:
            ``(1) Net tuition price.--The term `net tuition price' 
        means the average tuition and fees charged to a first-time, 
        full-time, full-year undergraduate student, minus the average 
        grants provided to such students, for any academic year.
            ``(2) Sticker price.--The term `sticker price' means the 
        average tuition and fees charged to a first-time, full-time, 
        full-year undergraduate student by an institution of higher 
        education for any academic year.
            ``(3) CPI.--The term `CPI' means the Consumer Price Index-
        All Urban Consumers (Current Series).''.

SEC. 109. DATABASES OF STUDENT INFORMATION.

    Part C of title I is further amended by adding at the end the 
following new section:

``SEC. 132. DATABASES OF STUDENT INFORMATION PROHIBITED.

    ``(a) Prohibition.--Except as described in (b), nothing in this Act 
shall be construed to authorize the design, development, creation, 
implementation, or maintenance of a nationwide database of personally 
identifiable information on individuals receiving assistance, attending 
institutions receiving assistance, or otherwise involved in any studies 
or other collections of data under this Act, including a student unit 
record system, an education bar code system, or any other system that 
tracks individual students over time.
    ``(b) Exception.--The provisions of subsection (a) shall not affect 
the loan obligation enforcement activities described in section 485B of 
this Act.''.

SEC. 110. PERFORMANCE-BASED ORGANIZATION.

    Section 141 (20 U.S.C. 1018) is amended--
            (1) in subsection (a)(2)(B)--
                    (A) by inserting ``unit'' after ``to reduce the''; 
                and
                    (B) by inserting ``and, to the extent practicable, 
                the total costs of administering those programs'' after 
                ``those programs'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by striking ``Each year'' 
                and inserting ``Each fiscal year'';
                    (B) in paragraph (1)(B), by inserting ``secondary 
                markets, guaranty agencies,'' after ``lenders,''; and
                    (C) in paragraph (2)(B), by striking ``Chief 
                Financial Officer Act of 1990 and'' and inserting 
                ``Chief Financial Officers Act of 1990,'' and by 
                inserting before the period at the end the following: 
                ``, and other relevant statutes''; and
            (3) in subsection (f)(3)(A), by striking ``paragraph 
        (1)(A)'' and inserting ``paragraph (1)''.

SEC. 111. TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT ASSISTANCE.

    Section 113 (20 U.S.C. 1011b) is amended--
            (1) by striking ``treatment of territories and territorial 
        student assistance'' in the heading of such section and 
        inserting ``territorial waiver authority'';
            (2) by striking ``(a) Waiver Authority.--''; and
            (3) by striking subsection (b).

SEC. 112. INSTITUTION AND LENDER REPORTING AND DISCLOSURE REQUIREMENTS.

    Title I (20 U.S.C. 1001 et seq.) is amended by adding at the end 
the following:

 ``PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATIONAL 
                                 LOANS

``SEC. 151. DEFINITIONS.

    ``In this part:
            ``(1) Cost of attendance.--The term `cost of attendance' 
        has the meaning given the term in section 472.
            ``(2) Covered institution.--The term `covered 
        institution'--
                    ``(A) means any educational institution that offers 
                a postsecondary educational degree, certificate, or 
                program of study (including any institution of higher 
                education, as such term is defined in section 102) and 
                receives any Federal funding or assistance; and
                    ``(B) includes any employee or agent of the 
                educational institution or any organization or entity 
                affiliated with, or directly or indirectly controlled 
                by, such institution.
            ``(3) Educational loan.--The term `educational loan' means 
        any loan made, insured, or guaranteed under title IV.
            ``(4) Educational loan arrangement.--The term `educational 
        loan arrangement' means an arrangement or agreement between a 
        lender and a covered institution--
                    ``(A) under which arrangement or agreement a lender 
                provides or otherwise issues educational loans to the 
                students attending the covered institution or the 
                parents of such students; and
                    ``(B) which arrangement or agreement--
                            ``(i) relates to the covered institution 
                        recommending, promoting, endorsing, or using 
                        educational loans of the lender; and
                            ``(ii) involves the payment of any fee or 
                        provision of other material benefit by the 
                        lender to the institution or to groups of 
                        students who attend the institution.
            ``(5) Lender.--The term `lender'--
                    ``(A) means--
                            ``(i) any lender--
                                    ``(I) of a loan made, insured, or 
                                guaranteed under part B of title IV; 
                                and
                                    ``(II) that is a financial 
                                institution, as such term is defined in 
                                section 509 of the Gramm-Leach-Bliley 
                                Act (15 U.S.C. 6809); and
                            ``(ii) in the case of any loan issued or 
                        provided to a student under part D of title IV, 
                        the Secretary; and
                    ``(B) includes any individual, group, or entity 
                acting on behalf of the lender in connection with an 
                educational loan.
            ``(6) Officer.--The term `officer' includes a director or 
        trustee of an institution.

``SEC. 152. REQUIREMENTS FOR LENDERS AND INSTITUTIONS PARTICIPATING IN 
              EDUCATIONAL LOAN ARRANGEMENTS.

    ``(a) Use of Lender Name.--A covered institution that enters into 
an educational loan arrangement shall disclose the name of the lender 
in documentation related to the loan.
    ``(b) Disclosures.--
            ``(1) Disclosures by lenders.--Before a lender issues or 
        otherwise provides an educational loan to a student, the lender 
        shall provide the student, in writing, with the disclosures 
        described in paragraph (2).
            ``(2) Disclosures.--The disclosures required by this 
        paragraph shall include a clear and prominent statement--
                    ``(A) of the interest rates of the educational loan 
                being offered;
                    ``(B) showing sample educational loan costs, 
                disaggregated by type;
                    ``(C) that describes, with respect to each type of 
                educational loan being offered--
                            ``(i) the types of repayment plans that are 
                        available;
                            ``(ii) whether, and under what conditions, 
                        early repayment may be made without penalty;
                            ``(iii) when and how often interest on the 
                        loan will be capitalized;
                            ``(iv) the terms and conditions of 
                        deferments or forbearance;
                            ``(v) all available repayment benefits, the 
                        percentage of all borrowers who qualify for 
                        such benefits, and the percentage of borrowers 
                        who received such benefits in the preceding 
                        academic year, for each type of loan being 
                        offered;
                            ``(vi) the collection practices in the case 
                        of default; and
                            ``(vii) all fees that the borrower may be 
                        charged, including late payment penalties and 
                        associated fees; and
                    ``(D) of such other information as the Secretary 
                may require in regulations.
    ``(c) Disclosures to the Secretary by Lender.--
            ``(1) In general.--Each lender shall, on an annual basis, 
        report to the Secretary any reasonable expenses paid or given 
        under section 435(d)(5)(D), 487(a)(21)(A)(ii), or 
        487(a)(21)(A)(iv) to any employee who is employed in the 
        financial aid office of a covered institution, or who otherwise 
        has responsibilities with respect to educational loans or other 
        financial aid of the institution. Such reports shall include--
                    ``(A) the amount of each specific instance in which 
                the lender provided such reimbursement;
                    ``(B) the name of the financial aid official or 
                other employee to whom the reimbursement was made;
                    ``(C) the dates of the activity for which the 
                reimbursement was made; and
                    ``(D) a brief description of the activity for which 
                the reimbursement was made.
            ``(2) Report to congress.--The Secretary shall compile the 
        information in paragraph (1) in a report and transmit such 
        report to the authorizing committees annually.

``SEC. 153. INTEREST RATE REPORT FOR INSTITUTIONS AND LENDERS 
              PARTICIPATING IN EDUCATIONAL LOAN ARRANGEMENTS.

    ``(a) Secretary Duties.--
            ``(1) Report and model format.--Not later than 180 days 
        after the date of enactment of the Higher Education Amendments 
        of 2007, the Secretary shall--
                    ``(A) prepare a report on the adequacy of the 
                information provided to students and the parents of 
                such students about educational loans, after consulting 
                with students, representatives of covered institutions 
                (including financial aid administrators, registrars, 
                and business officers), lenders, loan servicers, and 
                guaranty agencies;
                    ``(B) include in the report a model format, based 
                on the report's findings, to be used by lenders and 
                covered institutions in carrying out subsections (b) 
                and (c)--
                            ``(i) that provides information on the 
                        applicable interest rates and other terms and 
                        conditions of the educational loans provided by 
                        a lender to students attending the institution, 
                        or the parents of such students, disaggregated 
                        by each type of educational loans provided to 
                        such students or parents by the lender, 
                        including--
                                    ``(I) the interest rate and terms 
                                and conditions of the loans offered by 
                                the lender for the upcoming academic 
                                year;
                                    ``(II) with respect to such loans, 
                                any benefits that are contingent on the 
                                repayment behavior of the borrower;
                                    ``(III) the average amount borrowed 
                                from the lender by students enrolled in 
                                the institution who obtain loans of 
                                such type from the lender for the 
                                preceding academic year;
                                    ``(IV) the average interest rate on 
                                such loans provided to such students 
                                for the preceding academic year; and
                                    ``(V) the amount that the borrower 
                                may repay in interest, based on the 
                                standard repayment period of a loan, on 
                                the average amount borrowed from the 
                                lender by students enrolled in the 
                                institution who obtain loans of such 
                                type from the lender for the preceding 
                                academic year; and
                            ``(ii) which format shall be easily usable 
                        by lenders, institutions, guaranty agencies, 
                        loan servicers, parents, and students; and
                    ``(C)(i) submit the report and model format to the 
                authorizing committees; and
                    ``(ii) make the report and model format available 
                to covered institutions, lenders, and the public.
            ``(2) Use of form.--The Secretary shall take such steps as 
        necessary to make the model format available to covered 
        institutions and to encourage--
                    ``(A) lenders subject to subsection (b) to use the 
                model format in providing the information required 
                under subsection (b); and
                    ``(B) covered institutions to use such format in 
                preparing the information report under subsection (c).
    ``(b) Lender Duties.--Each lender that has an educational loan 
arrangement with a covered institution shall annually, by a date 
determined by the Secretary, provide to the covered institution and to 
the Secretary the information included on the model format for each 
type of educational loan provided by the lender to students attending 
the covered institution, or the parents of such students, for the 
preceding academic year.
    ``(c) Covered Institution Duties.--Each covered institution shall--
            ``(1) prepare and submit to the Secretary an annual report, 
        by a date determined by the Secretary, that includes, for each 
        lender that has an educational loan arrangement with the 
        covered institution and that has submitted to the institution 
        the information required under subsection (b)--
                    ``(A) the information included on the model format 
                for each type of educational loan provided by the 
                lender to students attending the covered institution, 
                or the parents of such students; and
                    ``(B) a detailed explanation of why the covered 
                institution believes the terms and conditions of each 
                type of educational loan provided pursuant to the 
                agreement are beneficial for students attending the 
                covered institution, or the parents of such students; 
                and
            ``(2) ensure that the report required under paragraph (1) 
        is made available to the public and provided to students 
        attending or planning to attend the covered institution, and 
        the parents of such students, in time for the student or parent 
        to take such information into account before applying for or 
        selecting an educational loan.''.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

SEC. 201. TEACHER QUALITY PARTNERSHIP GRANTS.

    Part A of title II (20 U.S.C. 1021 et seq.) is amended to read as 
follows:

              ``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

``SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2008 and each of the 5 
succeeding fiscal years.

``SEC. 202. PURPOSES AND DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are to--
            ``(1) improve student achievement;
            ``(2) improve the quality of the current and future 
        teaching force by improving the preparation of prospective 
        teachers and enhancing professional development activities;
            ``(3) hold institutions of higher education accountable for 
        preparing highly qualified teachers; and
            ``(4) recruit qualified individuals, including minorities 
        and individuals from other occupations, into the teaching 
        force.
    ``(b) Definitions.--In this part:
            ``(1) Arts and sciences.--The term `arts and sciences' 
        means--
                    ``(A) when referring to an organizational unit of 
                an institution of higher education, any academic unit 
                that offers 1 or more academic majors in disciplines or 
                content areas corresponding to the academic subject 
                matter areas in which teachers provide instruction; and
                    ``(B) when referring to a specific academic subject 
                area, the disciplines or content areas in which 
                academic majors are offered by the arts and sciences 
                organizational unit.
            ``(2) Children from low-income families.--The term 
        `children from low-income families' means children as described 
        in section 1124(c)(1)(A) of the Elementary and Secondary 
        Education Act of 1965.
            ``(3) Core academic subjects.--The term `core academic 
        subjects' has the meaning given the term in section 9101 of the 
        Elementary and Secondary Education Act of 1965.
            ``(4) Educational service agency.--The term `educational 
        service agency' has the meaning given the term in section 9101 
        of the Elementary and Secondary Education Act of 1965.
            ``(5) Eligible partnership.--The term `eligible 
        partnership' means an entity that--
                    ``(A) shall include--
                            ``(i) a high-need local educational agency;
                            ``(ii) a high-need school or a consortium 
                        of high-need schools served by the high-need 
                        local educational agency;
                            ``(iii) a partner institution;
                            ``(iv) a school, department, or program of 
                        education within such partner institution;
                            ``(v) a school or department of arts and 
                        sciences within such partner institution; and
                            ``(vi) a public or private educational 
                        organization; and
                    ``(B) may include any of the following:
                            ``(i) The Governor of the State.
                            ``(ii) The State educational agency.
                            ``(iii) The State board of education.
                            ``(iv) The State agency for higher 
                        education.
                            ``(v) A State-approved alternative teacher 
                        certification program.
                            ``(vi) A business.
                            ``(vii) An educational service agency.
                            ``(viii) A teacher organization.
                            ``(ix) A high-performing local educational 
                        agency, or a consortium of such local 
                        educational agencies, that can serve as a 
                        resource to the partnership.
                            ``(x) A charter school (as defined in 
                        section 5210 of the Elementary and Secondary 
                        Education Act of 1965).
                            ``(xi) A faith-based or community 
                        organization.
            ``(6) Essential components of reading instruction.--The 
        term `essential components of reading instruction' has the 
        meaning given such term in section 1208 of the Elementary and 
        Secondary Education Act of 1965.
            ``(7) Exemplary teacher.--The term `exemplary teacher' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965.
            ``(8) High-need local educational agency.--The term `high-
        need local educational agency' means a local educational 
        agency--
                    ``(A)(i) for which not less than 20 percent of the 
                children served by the agency are children from low-
                income families;
                    ``(ii) that serves not fewer than 10,000 children 
                from low-income families; or
                    ``(iii) with a total of less than 600 students in 
                average daily attendance at the schools that are served 
                by the agency and all of whose schools are designated 
                with a school locale code of 41, 42, or 43, as 
                determined by the Secretary; and
                    ``(B)(i) for which there is a high percent age of 
                teachers not teaching in the academic subject areas or 
                grade levels in which the teachers were trained to 
                teach; or
                    ``(ii) for which there is a high teacher turnover 
                rate or a high percentage of teachers with emergency, 
                provisional, or temporary certification or licensure.
            ``(9) High-need school.--The term `high need school' means 
        a public elementary school or public secondary school that--
                    ``(A) is among the highest 25 percent of schools 
                served by the local educational agency that serves the 
                school, in terms of the percent age of students from 
                families with income below the poverty line; or
                    ``(B) is designated with a school locale code of 
                41, 42, or 43, as determined by the Secretary.
            ``(10) Highly qualified.--The term `highly qualified' has 
        the meaning given such term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 and, with respect to 
        special education teachers, in section 602 of the Individuals 
        with Disabilities Education Act.
            ``(11) Induction program.--The term `induction program' 
        means a formalized program for new teachers during not less 
        than the teachers' first 2 years of teaching that is designed 
        to provide support for, and improve the professional 
        performance and advance the retention in the teaching field of, 
        beginning teachers. Such program shall promote effective 
        teaching skills and shall include the following components:
                    ``(A) High-quality teacher mentoring.
                    ``(B) Periodic, structured time for collaboration 
                with teachers in the same department or field, as well 
                as time for information-sharing among teachers, 
                principals, administrators, and participating faculty 
                in the partner institution.
                    ``(C) The application of empirically based practice 
                and scientifically based research on instructional 
                practices.
                    ``(D) Opportunities for new teachers to draw 
                directly upon the expertise of teacher mentors, 
                faculty, and researchers to support the integration of 
                empirically based practice and scientifically based 
                research with practice.
                    ``(E) The development of skills in instructional 
                and behavioral interventions derived from empirically 
                based practice and scientifically based research.
                    ``(F) Faculty who--
                            ``(i) model the integration of research and 
                        practice in the classroom; and
                            ``(ii) assist new teachers with the 
                        effective use and integration of technology in 
                        the classroom.
                    ``(G) Interdisciplinary collaboration among 
                exemplary teachers, faculty, researchers, and other 
                staff who prepare new teachers on the learning process 
                and the assessment of learning.
                    ``(H) Assistance with the understanding of data, 
                particularly student achievement data, and the data's 
                applicability in classroom instruction.
                    ``(I) Periodic, structured evaluation of the new 
                teacher by mentor teachers and the principal using 
                valid and reliable benchmarks of teaching skills.
            ``(12) Limited english proficient.--The term `limited 
        English proficient' has the meaning given such term in section 
        9101 of the Elementary and Secondary Education Act of 1965.
            ``(13) Partner institution.--The term `partner institution' 
        means an institution of higher education, which may include a 
        2-year institution of higher education offering a dual program 
        with a 4-year institution of higher education, participating in 
        an eligible partnership that has a teacher preparation 
        program--
                    ``(A) whose graduates exhibit strong performance on 
                State-determined qualifying assessments for new 
                teachers through--
                            ``(i) demonstrating that the graduates of 
                        the program who intend to enter the field of 
                        teaching have passed all of the applicable 
                        State qualification assessments for new 
                        teachers, which shall include an assessment of 
                        each prospective teacher's subject matter 
                        knowledge in the content area in which the 
                        teacher intends to teach; or
                            ``(ii) being ranked among the highest 
                        performing teacher preparation programs in the 
                        State as determined by the State--
                                    ``(I) using criteria consistent 
                                with the requirements for the State 
                                report card under section 205(b); and
                                    ``(II) using the State report card 
                                on teacher preparation required under 
                                section 205(b), after the first 
                                publication of such report card and for 
                                every year thereafter; or
                    ``(B) that requires--
                            ``(i) each student in the program to meet 
                        high academic standards and participate in 
                        intensive clinical experience;
                            ``(ii) in the case of secondary school 
                        candidates, to successfully complete an 
                        academic major in the subject area in which the 
                        candidate intends to teach;
                            ``(iii) in the case of elementary school 
                        candidates, to successfully complete an 
                        academic major in the arts and sciences; and
                            ``(iv) each student in the program 
                        preparing to become a teacher to become highly 
                        qualified.
            ``(14) Professional development.--The term `professional 
        development' has the meaning given the term in section 9101 of 
        the Elementary and Secondary Education Act of 1965.
            ``(15) Scientifically based reading research.--The term 
        `scientifically based reading research' has the meaning given 
        such term in section 1208 of the Elementary and Secondary 
        Education Act of 1965 (29 U.S.C. 6368);
            ``(16) Scientifically based research.--The term 
        `scientifically based research' has the meaning given the term 
        in section 9101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 6368);
            ``(17) Teacher mentoring.--The term `teacher mentoring' 
        means the mentoring of new or prospective teachers through a 
        new or established program that--
                    ``(A) includes clear criteria for the selection of 
                teacher mentors who will provide role model 
                relationships for mentees, which criteria shall be 
                developed by the eligible partnership and based on 
                measures of teacher effectiveness;
                    ``(B) provides high-quality training for such 
                mentors, including instructional strategies for 
                literacy instruction based on scientifically based 
                reading research;
                    ``(C) provides regular and ongoing opportunities 
                for mentors and mentees to observe each other's 
                teaching methods in classroom settings during the day 
                in a high-need school in the high-need local 
                educational agency in the eligible partnership;
                    ``(D) provides mentoring to each mentee by a 
                colleague who teaches in the same field, grade, or 
                subject as the mentee;
                    ``(E) promotes empirically based practice of and 
                scientifically based research on--
                            ``(i) teaching and learning;
                            ``(ii) assessment of student learning;
                            ``(iii) the development of teaching skills 
                        through the use of instructional and behavioral 
                        interventions; and
                            ``(iv) the improvement of the mentees' 
                        capacity to measurably advance student 
                        learning; and
                    ``(F) includes--
                            ``(i) common planning time or regularly 
                        scheduled collaboration for the mentor and 
                        mentee; and
                            ``(ii) joint professional development 
                        opportunities.
            ``(18) Teaching skills.--The term `teaching skills' means 
        skills that enable a teacher to--
                    ``(A) increase student learning, achievement, and 
                the ability to apply knowledge;
                    ``(B) effectively convey and explain academic 
                subject matter;
                    ``(C) employ strategies grounded in the disciplines 
                of teaching and learning that--
                            ``(i) are based on empirically based 
                        practice, scientifically based research, and, 
                        where applicable, scientifically based reading 
                        research, on teaching and learning;
                            ``(ii) are specific to academic subject 
                        matter; and
                            ``(iii) focus on the identification of 
                        students' specific learning needs, particularly 
                        students with disabilities, students who are 
                        limited English proficient, students who are 
                        gifted and talented, and students with low 
                        literacy levels, and the tailoring of academic 
                        instruction to such needs;
                    ``(D) conduct an ongoing assessment of student 
                learning, which may include the use of formative and 
                performance-based assessments that measure higher-order 
                thinking skills, including application, analysis, 
                synthesis, and evaluation;
                    ``(E) effectively manage a classroom; and
                    ``(F) communicate and work with parents and 
                guardians, and involve parents and guardians in their 
                children's education.
            ``(19) Teaching residency program.--The term `teaching 
        residency program' means a school based teacher preparation 
        program in which a prospective teacher--
                    ``(A) for 1 academic year, teaches alongside a 
                mentor teacher, who is the teacher of record;
                    ``(B) receives concurrent instruction during the 
                year described in subparagraph (A) from the partner 
                institution or a State-approved alternative teacher 
                certification program, which courses may be taught by 
                local educational agency personnel or residency program 
                faculty, in the teaching of the content area in which 
                the teacher will become certified or licensed;
                    ``(C) acquires effective teaching skills;
                    ``(D) prior to completion of the program, attains 
                full State teacher certification or licensure, becomes 
                highly qualified, may earn a master`s degree, and 
                receives a valid and reliable evaluation of the 
                teacher's teaching skills.

``SEC. 202. PARTNERSHIP GRANTS.

    ``(a) Program Authorized.--From amounts made available under 
section 208, the Secretary is authorized to award grants, on a 
competitive basis, to eligible partnerships, to enable the eligible 
partnerships to carry out the activities described in subsection (c).
    ``(b) Application.--Each eligible partnership desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall contain--
            ``(1) a needs assessment of all the partners in the 
        eligible partnership with respect to the preparation, ongoing 
        training, professional development, and retention, of general 
        and special education teachers and principals;
            ``(2) a description of the extent to which the program 
        prepares prospective and new teachers with strong teaching 
        skills;
            ``(3) a description of the extent to which the program will 
        prepare prospective and new teachers to understand 
        scientifically based research and data and the applicability of 
        scientifically based research and data in the classroom;
            ``(4) a description of how the partnership will coordinate 
        strategies and activities assisted under the grant with other 
        teacher preparation or professional development programs, 
        including those funded under the Elementary and Secondary 
        Education Act of 1965 and the Individuals with Disabilities 
        Education Act, and through the National Science Foundation, and 
        how the activities of the partnership will be consistent with 
        State, local, and other education reform activities that 
        promote student achievement;
            ``(5) a resource assessment that describes the resources 
        available to the partnership, including--
                    ``(A) the integration of funds from other related 
                sources;
                    ``(B) the intended use of the grant funds;
                    ``(C) the commitment of the resources of the 
                partnership to the activities assisted under this 
                section, including financial support, faculty 
                participation, and time commitments, and to the 
                continuation of the activities when the grant ends;
            ``(6) a description of--
                    ``(A) how the partnership will meet the purposes of 
                this part;
                    ``(B) how the partnership will carry out the 
                activities required under subsection (e) or (f), or 
                both, based on the needs identified in paragraph (1), 
                with the goal of improving student achievement;
                    ``(C) the partnership's evaluation plan under 
                section 204(a);
                    ``(D) how the partnership will align the teacher 
                preparation program with the student academic 
                achievement standards and academic content standards 
                under section 1111(b)(2) of the Elementary and 
                Secondary Education Act of 1965, established by the 
                State in which the partnership is located;
                    ``(E) how faculty at the partner institution will 
                work with, during the term of the grant, highly 
                qualified teachers in the classrooms of schools served 
                by the high-need local educational agency in the 
                partnership to provide high-quality professional 
                development activities;
                    ``(F) how the partnership will design, implement, 
                or enhance a year-long, rigorous, and enriching 
                teaching preservice clinical program component;
                    ``(G) the in-service professional development 
                strategies and activities to be supported;
                    ``(H) how the partnership will collect, analyze, 
                and use data on the retention of all teachers in 
                schools located in the geographic area served by the 
                partnership to evaluate the effectiveness of the 
                partnership's teacher support system; and
                    ``(I) how the partnership will ensure that 
                teachers, principals, and superintendents in private 
                elementary and secondary schools located in the 
                geographic areas served by an eligible partnership 
                under this part will participate equitably in 
                accordance with section 9501 of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7881); and
            ``(7) with respect to the induction program required as 
        part of the activities carried out under this section--
                    ``(A) a demonstration that the schools and 
                departments within the institution of higher education 
                that are part of the induction program have relevant 
                and essential roles in the effective preparation of 
                teachers, including content expertise and expertise in 
                teaching;
                    ``(B) a demonstration of the partnership's 
                capability and commitment to the use of empirically 
                based practice and scientifically based research on 
                teaching and learning, and the accessibility to and 
                involvement of faculty;
                    ``(C) a description of how the teacher preparation 
                program will design and implement an induction program 
                to support all new teachers through not less than the 
                first 2 years of teaching in the further development of 
                the new teachers' teaching skills, including the use of 
                mentors who are trained and compensated by such program 
                for the mentors' work with new teachers; and
                    ``(D) a description of how faculty involved in the 
                induction program will be able to substantially 
                participate in an elementary or secondary school 
                classroom setting, including release time and receiving 
                workload credit for such participation.
    ``(c) Required Use of Grant Funds.--An eligible partnership that 
receives a grant under this part shall use grant funds to carry out a 
program for the preparation of teachers under subsection (e), a 
teaching residency program under subsection (f), or both such programs.
    ``(d) Priority.--In making grants under this part, the Secretary 
shall give priority to eligible partnerships seeking to carry out an 
effective program for teacher preparation under subsection (e).
    ``(e) Partnership Grants for Teacher Preparation.--An eligible 
partnership that receives a grant to carry out an effective program for 
teacher preparation shall carry out all of the following:
            ``(1) Reforms.--
                    ``(A) In general.--Implementing reforms, described 
                in subparagraph (B), within each teacher preparation 
                program of the eligible partnership that is assisted 
                under this section, to hold each program accountable 
                for--
                            ``(i) preparing--
                                    ``(I) current or prospective 
                                teachers to be highly qualified 
                                (including teachers in rural school 
                                districts who may teach multiple 
                                subjects, special educators, teachers 
                                of students who are limited English 
                                proficient who may teach multiple 
                                subjects, and teachers who are 
                                qualified to teach Advanced Placement 
                                or International Baccalaureate 
                                courses); and
                                    ``(II) such teachers to understand 
                                empirically based practice and 
                                scientifically based research on 
                                teaching and learning and its 
                                applicability, and to use technology 
                                effectively, including the use of 
                                instructional techniques to improve 
                                student achievement; and
                            ``(ii) promoting strong teaching skills.
                    ``(B) Required reforms.--The reforms described in 
                subparagraph (A) shall include--
                            ``(i) implementing teacher preparation 
                        program curriculum changes that improve, 
                        evaluate, and assess how well all prospective 
                        and new teachers develop teaching skills;
                            ``(ii) using empirically based practice and 
                        scientifically based research about the 
                        disciplines of teaching and learning so that 
                        all prospective teachers--
                                    ``(I) can understand and implement 
                                research-based teaching practices in 
                                classroom-based instruction;
                                    ``(II) have knowledge of student 
                                learning methods;
                                    ``(III) possess skills to analyze 
                                student academic achievement data and 
                                other measures of student learning and 
                                use such data and measures to improve 
                                instruction in the classroom;
                                    ``(IV) possess teaching skills and 
                                an understanding of effective 
                                instructional strategies across all 
                                applicable content areas that enable 
                                the teachers to--
                                            ``(aa) meet the specific 
                                        learning needs of all students, 
                                        including students with 
                                        disabilities, students who are 
                                        limited English proficient, 
                                        students who are gifted and 
                                        talented, and students with low 
                                        literacy levels; and
                                            ``(bb) differentiate 
                                        instruction for such students; 
                                        and
                                    ``(V) can successfully employ 
                                scientifically based reading research 
                                and effective strategies for reading 
                                instruction using the essential 
                                components of reading instruction;
                            ``(iii) ensuring collaboration with 
                        departments, programs, or units of a partner 
                        institution outside of the teacher preparation 
                        program in all academic content areas to ensure 
                        that new teachers receive training in both 
                        teaching and relevant content areas in order to 
                        become highly qualified;
                            ``(iv) developing admissions goals and 
                        priorities in collaboration with the hiring 
                        objectives of the high-need local educational 
                        agency in the eligible partnership; and
                            ``(v) implementing teacher preparation 
                        program curriculum changes to prepare teachers 
                        to teach Advanced Placement or International 
                        Baccalaureate courses.
            ``(2) Clinical experience and interaction.--Developing and 
        improving a sustained and high-quality pre-service clinical 
        education program to further develop the teaching skills of all 
        prospective teachers involved in the program. Such program 
        shall do the following:
                    ``(A) Incorporate year-long opportunities for 
                enrichment activity or a combination of activities, 
                including--
                            ``(i) clinical learning in classrooms in 
                        high-need schools served by the high-need local 
                        educational agency in the eligible partnership 
                        and identified by the eligible partnership; and
                            ``(ii) closely supervised interaction 
                        between faculty and new and experienced 
                        teachers, principals, and other administrators 
                        at elementary schools or secondary schools, and 
                        providing support for such interaction.
                    ``(B) Integrate pedagogy and classroom practice and 
                promote effective teaching skills in academic content 
                areas.
                    ``(C) Provide high-quality teacher mentoring.
                    ``(D)(i) Be offered over the course of a program of 
                teacher preparation;
                            ``(ii) be tightly aligned with course work 
                        (and may be developed as a 5th year of a 
                        teacher preparation program); and
                            ``(iii) where feasible, allow prospective 
                        teachers to learn to teach in the same school 
                        district in which the teachers will work, 
                        learning the instructional initiatives and 
                        curriculum of that district.
                    ``(E) Provide support and training for those 
                individuals participating in an activity for 
                prospective teachers described in this paragraph or 
                paragraph (3), and for those who serve as mentors for 
                such teachers, based on each individual's experience. 
                such support may include--
                            ``(i) with respect to a prospective teacher 
                        or a mentor, release time for such individual's 
                        participation;
                            ``(ii) with respect to a faculty member, 
                        receiving course workload credit and 
                        compensation for time teaching in the eligible 
                        partnership's activities; and
                            ``(iii) with respect to a mentor, a 
                        stipend, which may include bonus, differential, 
                        incentive, or performance based pay.
            ``(3) Induction programs for new teachers.--Creating an 
        induction program for new teachers.
            ``(4) Teacher recruitment.--Developing and implementing 
        effective mechanisms to ensure that the eligible partnership is 
        able to recruit qualified individuals to become highly 
        qualified teachers, particularly highly qualified special 
        education, math, and science teachers, through the activities 
        of the eligible partnership. Such mechanisms shall include--
                    ``(A) establishing within the high-need local 
                educational agency served by the eligible partnership a 
                performance based compensation system to reward 
                effective teachers who produce demonstrated growth in 
                student achievement. Such compensation system shall be 
                developed with the demonstrated support of teachers;
                    ``(B) developing strategies that provide 
                differential and bonus pay to recruit--
                            ``(i) highly qualified teachers to teach in 
                        high-need academic subjects, such as reading, 
                        mathematics, and science;
                            ``(ii) highly qualified teachers to teach 
                        in schools within the jurisdiction of the 
                        eligible partnership identified for school 
                        improvement under section 1116(b) of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 6316(b));
                            ``(iii) special education teachers;
                            ``(iv) teachers specializing in teaching 
                        limited English proficient children; and
                            ``(v) highly qualified teachers in urban or 
                        rural schools within the jurisdiction of the 
                        eligible partnership; and
                    ``(C) developing alternative routes to State 
                certification and traditional preparation to become 
                highly qualified teachers through--
                            ``(i) innovative approaches that reduce 
                        unnecessary barriers to State certification 
                        while producing highly qualified teachers, 
                        which may include articulation agreements 
                        between institutions of higher education that 
                        are members of eligible partnerships under this 
                        section; and
                            ``(ii) alternative routes to State 
                        certification of teachers for qualified 
                        individuals, including mid-career professionals 
                        from other occupations, former military 
                        personnel, and recent college graduates with 
                        records of academic distinction.
            ``(5) Teacher removal.--Developing and implementing 
        effective mechanisms to ensure that local educational agencies 
        and schools served by the eligible partnership are able to 
        remove expeditiously incompetent or unqualified teachers 
        consistent with procedures to ensure due process for the 
        teachers.
    ``(f) Partnership Grants for the Establishment of Teaching 
Residency Programs.--
            ``(1) In general.--An eligible partnership receiving a 
        grant to carry out an effective teaching residency program 
        shall carry out a program that includes all of the following 
        activities:
                    ``(A) Supporting a teaching residency program 
                described in paragraph (2) for high-need subjects and 
                areas, as determined by the needs of the high-need 
                local educational agency in the partnership.
                    ``(B) Modifying staffing procedures to provide 
                greater flexibility for local educational agency and 
                school leaders to establish effective school-level 
                staffing in order to facilitate placement of graduates 
                of the teaching residency program in cohorts that 
                facilitate professional collaboration, both among 
                graduates of the teaching residency program and between 
                such graduates and mentor teachers in the receiving 
                school.
                    ``(C) Ensuring that teaching residents that 
                participated in the teaching residency program 
                receive--
                            ``(i) effective preservice preparation as 
                        described in paragraph (2);
                            ``(ii) teacher mentoring;
                            ``(iii) induction through the induction 
                        program as the teaching residents enter the 
                        classroom as new teachers; and
                            ``(iv) the preparation described in 
                        subparagraphs (A), (B), and (C) of subsection 
                        (e)(2).
            ``(2) Teaching residency programs.--
                    ``(A) Establishment and design.--A teaching 
                residency program under this paragraph shall be a 
                program based upon models of successful teaching 
                residencies that serves as a mechanism to prepare 
                teachers for success in the high-need schools in the 
                eligible partnership, and shall be designed to include 
                the following characteristics of successful programs:
                            ``(i) The integration of pedagogy, 
                        classroom practice, and teacher mentoring.
                            ``(ii) Engagement of teaching residents in 
                        rigorous coursework while undertaking a guided 
                        teaching apprenticeship.
                            ``(iii) Experience and learning 
                        opportunities alongside a trained and 
                        experienced mentor teacher--
                                    ``(I) whose teaching shall 
                                complement the residency program so 
                                that classroom clinical practice is 
                                tightly aligned with coursework;
                                    ``(II) who shall have extra 
                                responsibilities as a teacher leader of 
                                the teaching residency program, as a 
                                mentor for residents, and as a teacher 
                                coach during the induction program for 
                                novice teachers, and for establishing, 
                                within the program, a learning 
                                community in which all individuals are 
                                expected to continually improve their 
                                capacity to advance student learning; 
                                and
                                    ``(III) who may have full relief 
                                from teaching duties as a result of 
                                such additional responsibilities.
                            ``(iv) The establishment of clear criteria 
                        for the selection of mentor teachers based on 
                        measures of teacher effectiveness and the 
                        appropriate subject area knowledge. Evaluation 
                        of teacher effectiveness shall be based on 
                        observations of such do mains of teaching as 
                        the following:
                                    ``(I) Demonstrated knowledge of 
                                content, pedagogy, and assessment, 
                                including the use of formative 
                                assessments to improve student 
                                learning.
                                    ``(II) Appropriate instruction that 
                                engages students with different 
                                learning styles.
                                    ``(III) Collaboration with 
                                colleagues to improve instruction.
                                    ``(IV) Analysis of gains in student 
                                learning, that, when feasible, may 
                                include valid and reliable objective 
                                measures of the influence of teachers 
                                on the rate of student academic 
                                progress.
                                    ``(V) In the case of mentor 
                                candidates who will be mentoring 
                                current or future literacy and 
                                mathematics coaches or instructors, an 
                                understanding of scientifically based 
                                reading research and appropriate skills 
                                in the essential components of reading 
                                instruction, teacher training in 
                                literacy instructional strategies 
                                across core subject areas, and teacher 
                                training in mathematics instructional 
                                strategies, as appropriate.
                            ``(v) Grouping of teaching residents in 
                        cohorts to facilitate professional 
                        collaboration among such residents.
                            ``(vi) The development of admissions goals 
                        and priorities aligned with the hiring 
                        objectives of the local educational agency 
                        partnering with the program, as well as the 
                        instructional initiatives and curriculum of the 
                        agency, in exchange for a commitment by the 
                        agency to hire graduates from the teaching 
                        residency program.
                            ``(vii) Support for residents, once the 
                        teaching residents are hired as teachers of 
                        record, through an induction program, 
                        professional development, and networking 
                        opportunities to support the residents through 
                        not less than the residents' first 2 years of 
                        teaching.
                    ``(B) Selection of individuals as teacher 
                residents.--
                            ``(i) Eligible individual.--In order to be 
                        eligible to be a teacher resident in a teaching 
                        residency program under this paragraph, an 
                        individual shall--
                                    ``(I) be a recent graduate of a 4-
                                year institution of higher education or 
                                a mid-career professional from outside 
                                the field of education possessing 
                                strong content knowledge or a record of 
                                professional accomplishment; and
                                    ``(II) submit an application to the 
                                teaching residency program.
                            ``(ii) Selection criteria.--An eligible 
                        partnership carrying out a teaching residency 
                        program under this subparagraph shall establish 
                        criteria for the selection of eligible 
                        individuals to participate in the teaching 
                        residency program based on the following 
                        characteristics:
                                    ``(I) Strong content knowledge or 
                                record of accomplishment in the field 
                                or subject area to be taught.
                                    ``(II) Strong verbal and written 
                                communication skills, which may be 
                                demonstrated by performance on 
                                appropriate tests.
                                    ``(III) Other attributes linked to 
                                effective teaching determined by 
                                performance-based assessments.
                    ``(C) Stipend and service requirement.--
                            ``(i) Stipend.--A teaching residency 
                        program under this paragraph shall provide a 1-
                        year living stipend or salary to teaching 
                        residents during the 1-year teaching residency 
                        program.
                            ``(ii) Service requirement.--As a condition 
                        of receiving a stipend under this subparagraph, 
                        a teaching resident shall agree to teach in a 
                        high-need school served by the high-need local 
                        educational agency in the eligible partnership 
                        for a period of 3 or more years after 
                        completing the 1-year teaching residency 
                        program.
                            ``(iii) Repayment.--If a teaching resident 
                        who received a stipend under this subparagraph 
                        does not complete the service requirement 
                        described in clause (ii), such individual shall 
                        repay to the high need local educational agency 
                        a pro rata portion of the stipend amount for 
                        the amount of teaching time that the individual 
                        did not complete.
    ``(g) Consultation.--
            ``(1) In general.--Members of an eligible partnership that 
        receives a grant under this section shall engage in regular 
        consultation throughout the development and implementation of 
        programs and activities under this section.
            ``(2) Regular communication.--To ensure timely and 
        meaningful consultation, regular communication shall occur 
        among all members of the eligible partnership, including the 
        high-need local educational agency. Such communication shall 
        continue throughout the implementation of the grant and the 
        assessment of programs and activities under this section.
            ``(3) Written consent.--The Secretary may approve changes 
        in grant activities of a grant under this section only if a 
        written consent signed by all members of the eligible 
        partnership is submitted to the Secretary.
    ``(h) Construction.--Nothing in this section shall be construed to 
prohibit an eligible partnership from using grant funds to coordinate 
with the activities of eligible partnerships in other States or on a 
regional basis through Governors, State boards of education, State 
educational agencies, State agencies responsible for early childhood 
education, local educational agencies, or State agencies for higher 
education.
    ``(i) Supplement, Not Supplant.--Funds made available under this 
section shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities under this section.

``SEC. 203. ADMINISTRATIVE PROVISIONS.

    ``(a) Duration; Number of Awards; Payments.--
            ``(1) Duration.--A grant awarded under this part shall be 
        awarded for a period of 5 years.
            ``(2) Number of awards.--An eligible partnership, and each 
        individual member that is a part of the eligible partnership, 
        may not receive more than 1 grant under this part.
            ``(3) Payments.--The Secretary shall make annual payments 
        of grant funds awarded under this part.
    ``(b) Peer Review.--
            ``(1) Panel.--The Secretary shall provide the applications 
        submitted under this part to a peer review panel for 
        evaluation. With respect to each application, the peer review 
        panel shall initially recommend the application for funding or 
        for disapproval.
            ``(2) Priority.--In recommending applications to the 
        Secretary for funding under this part, the panel shall give 
        priority--
                    ``(A) to applications from broad-based eligible 
                partnerships that involve businesses and community 
                organizations; and
                    ``(B) to eligible partnerships so that the awards 
                promote an equitable geographic distribution of grants 
                among rural and urban areas.
            ``(3) Secretarial selection.--The Secretary shall 
        determine, based on the peer review process, which applications 
        shall receive funding and the amounts of the grants. In 
        determining the grant amount, the Secretary shall take into 
        account the total amount of funds available for all grants 
        under this part and the types of activities proposed to be 
        carried out by the eligible partnership.
    ``(c) Matching Requirements.--
            ``(1) In general.--Each eligible partnership receiving a 
        grant under this part shall provide, from non-Federal sources, 
        an amount equal to 100 percent of the amount of the grant, 
        which may be provided in cash or in-kind, to carry out the 
        activities supported by the grant.
            ``(2) Waiver.--The Secretary may waive all or part of the 
        matching requirement described in paragraph (1) for any fiscal 
        year for an eligible partnership, if the Secretary determines 
        that applying the matching requirement to the eligible 
        partnership would result in serious hardship or an inability to 
        carry out the authorized activities described in this part.
    ``(d) Limitation on Administrative Expenses.--An eligible 
partnership that receives a grant under this part may use not more than 
2 percent of the grant funds for purposes of administering the grant.

``SEC. 204. ACCOUNTABILITY AND EVALUATION.

    ``(a) Eligible Partnership Evaluation.--Each eligible partnership 
submitting an application for a grant under this part shall establish 
and include in such application, an evaluation plan that includes 
strong performance objectives. The plan shall include objectives and 
measures for increasing--
            ``(1) student achievement for all students as measured by 
        the eligible partnership;
            ``(2) teacher retention in the first 3 years of a teacher's 
        career;
            ``(3) improvement in the pass rates and scaled scores for 
        initial State certification or licensure of teachers; and
            ``(4)(A) the percentage of highly qualified teachers hired 
        by the high-need local educational agency participating in the 
        eligible partnership;
            ``(B) the percentage of such teachers who are members of 
        under represented groups;
            ``(C) the percentage of such teachers who teach high-need 
        academic subject areas (such as reading, mathematics, science, 
        and foreign language, including less commonly taught languages 
        and critical foreign languages);
            ``(D) the percentage of such teachers who teach in high-
        need areas (including special education and English language 
        instruction educational programs for limited English proficient 
        students); and
            ``(E) the percentage of such teachers in high need schools, 
        disaggregated by the elementary and secondary school levels.
    ``(b) Information.--An eligible partnership receiving a grant under 
this part shall ensure that teachers, principals, school 
superintendents, and faculty and leadership at institutions of higher 
education located in the geographic areas served by the eligible 
partnership under this part are provided information about the 
activities carried out with funds under this part, including through 
electronic means.
    ``(c) Revocation of Grant.--If the Secretary determines that an 
eligible partnership receiving a grant under this part is not making 
substantial progress in meeting the purposes, goals, objectives, and 
measures, as appropriate, of the grant by the end of the third year of 
a grant under this part, then the Secretary shall require such eligible 
partnership to submit a revised application that identifies the steps 
the partnership will take to make substantial progress to meet the 
purposes, goals, objectives, and measures, as appropriate, of this 
part.
    ``(d) Evaluation and Dissemination.--The Secretary shall evaluate 
the activities funded under this part and report the Secretary's 
findings regarding the activities to the authorizing committees. The 
Secretary shall broadly disseminate--
            ``(1) successful practices developed by eligible 
        partnerships under this part; and
            ``(2) information regarding such practices that were found 
        to be ineffective.

``SEC. 205. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.

    ``(a) Institutional and Program Report Cards on the Quality of 
Teacher Preparation.--
            ``(1) Report card.--Each institution of higher education 
        that conducts a traditional teacher preparation program or 
        alternative routes to State certification or licensure program 
        and that enrolls students receiving Federal assistance under 
        this Act shall report annually to the State and the general 
        public, in a uniform and comprehensible manner that conforms 
        with the definitions and methods established by the Secretary, 
        both for traditional teacher preparation programs and 
        alternative routes to State certification or licensure 
        programs, the following information:
                    ``(A) Pass rates and scaled scores.--For the most 
                recent year for which the information is available for 
                those students who took the assessments and are 
                enrolled in the traditional teacher preparation program 
                or alternative routes to State certification or 
                licensure program, and for those who have taken the 
                assessments and have completed the traditional teacher 
                preparation program or alternative routes to State 
                certification or licensure program during the 2-year 
                period preceding such year, for each of the assessments 
                used for teacher certification or licensure by the 
                State in which the program is located--
                            ``(i) the percentage of students who have 
                        completed 100 percent of the nonclinical 
                        coursework and taken the assessment who pass 
                        such assessment;
                            ``(ii) the percentage of all such students 
                        who passed each such assessment;
                            ``(iii) the percentage of students taking 
                        an assessment who completed the teacher 
                        preparation program after enrolling in the 
                        program, which shall be made available widely 
                        and publicly by the State;
                            ``(iv) the average scaled score for all 
                        students who took each such assessment;
                            ``(v) a comparison of the program's pass 
                        rates with the average pass rates for programs 
                        in the State; and
                            ``(vi) a comparison of the program's 
                        average scaled scores with the average scaled 
                        scores for programs in the State.
                    ``(B) Program information.--The criteria for 
                admission into the program, the number of students in 
                the program (disaggregated by race and gender), the 
                average number of hours of supervised clinical 
                experience required for those in the program, the 
                number of full-time equivalent faculty and students in 
                the supervised clinical experience, and the total 
                number of students who have been certified or licensed 
                as teachers, disaggregated by subject and area of 
                certification or licensure.
                    ``(C) Statement.--In States that require approval 
                or accreditation of teacher preparation programs, a 
                statement of whether the institution's program is so 
                approved or accredited, and by whom.
                    ``(D) Designation as low-performing.--Whether the 
                program has been designated as low-performing by the 
                State under section 207(a).
                    ``(E) Use of technology.--A description of the 
                activities that prepare teachers to effectively 
                integrate technology into curricula and instruction and 
                effectively use technology to collect, manage, and 
                analyze data in order to improve teaching, learning, 
                and decisionmaking for the purpose of increasing 
                student academic achievement.
            ``(2) Report.--Each eligible partnership receiving a grant 
        under section 202 shall report annually on the progress of the 
        eligible partnership toward meeting the purposes of this part 
        and the objectives and measures described in section 204(a).
            ``(3) Fines.--The Secretary may impose a fine not to exceed 
        $25,000 on an institution of higher education for failure to 
        provide the information described in this subsection in a 
        timely or accurate manner.
            ``(4) Special rule.--In the case of an institution of 
        higher education that conducts a traditional teacher 
        preparation program or alternative routes to State 
        certification or licensure program and has fewer than 10 scores 
        reported on any single initial teacher certification or 
        licensure assessment during an academic year, the institution 
        shall collect and publish information, as required under 
        paragraph (1)(A), with respect to an average pass rate and 
        scaled score on each State certification or licensure 
        assessment taken over a 3-year period.
    ``(b) State Report Card on the Quality of Teacher Preparation.--
            ``(1) In general.--Each State that receives funds under 
        this Act shall provide to the Secretary, annually, in a uniform 
        and comprehensible manner that conforms with the definitions 
        and methods established by the Secretary, a State report card 
        on the quality of teacher preparation in the State, both for 
        traditional teacher preparation programs and for alternative 
        routes to State certification or licensure programs, which 
        shall include not less than the following:
                    ``(A) A description of the reliability and validity 
                of the teacher certification and licensure assessments, 
                and any other certification and licensure requirements, 
                used by the State.
                    ``(B) The standards and criteria that prospective 
                teachers must meet in order to attain initial teacher 
                certification or licensure and to be certified or 
                licensed to teach particular academic subject areas or 
                in particular grades within the State.
                    ``(C) A description of how the assessments and 
                requirements described in subparagraph (A) are aligned 
                with the State's challenging academic content standards 
                required under section 1111(b)(1) of the Elementary and 
                Secondary Education Act of 1965 and State early 
                learning standards for early childhood education 
                programs.
                    ``(D) For each of the assessments used by the State 
                for teacher certification or licensure--
                            ``(i) for each institution of higher 
                        education located in the State and each entity 
                        located in the State that offers an alternative 
                        route for teacher certification or licensure, 
                        the percentage of students at such institution 
                        or entity who have completed 100 percent of the 
                        nonclinical coursework and taken the assessment 
                        who pass such assessment;
                            ``(ii) the percentage of all such students 
                        at all such institutions taking the assessment 
                        who pass such assessment; and
                            ``(iii) the percentage of students taking 
                        an assessment who completed the teacher 
                        preparation program after enrolling in the 
                        program, which shall be made available widely 
                        and publicly by the State.
                    ``(E) A description of alternative routes to State 
                certification or licensure in the State (including any 
                such routes operated by entities that are not 
                institutions of higher education), if any, including, 
                for each of the assessments used by the State for 
                teacher certification or licensure--
                            ``(i) the percentage of individuals 
                        participating in such routes, or who have 
                        completed such routes during the 2-year period 
                        preceding the date of the determination, who 
                        passed each such assessment; and
                            ``(ii) the average scaled score of 
                        individuals participating in such routes, or 
                        who have completed such routes during the 
                        period preceding the date of the determination, 
                        who took each such assessment.
                    ``(F) A description of the State's criteria for 
                assessing the performance of teacher preparation 
                programs within institutions of higher education in the 
                State. Such criteria shall include indicators of the 
                academic content knowledge and teaching skills of 
                students enrolled in such programs.
                    ``(G) For each teacher preparation program in the 
                State, the criteria for admission into the program, the 
                number of students in the program, disaggregated by 
                race and gender (except that such disaggregation shall 
                not be required in a case in which the number of 
                students in a category is insufficient to yield 
                statistically reliable information or the results would 
                reveal personally identifiable information about an 
                individual student), the average number of hours of 
                supervised clinical experience required for those in 
                the program, and the number of full-time equivalent 
                faculty, adjunct faculty, and students in supervised 
                clinical experience.
                    ``(H) For the State as a whole, and for each 
                teacher preparation program in the State, the number of 
                teachers prepared, in the aggregate and reported 
                separately by--
                            ``(i) area of certification or licensure;
                            ``(ii) academic major; and
                            ``(iii) subject area for which the teacher 
                        has been prepared to teach.
                    ``(I) Using the data generated under subparagraphs 
                (G) and (H), a description of the extent to which 
                teacher preparation programs are helping to address 
                shortages of highly qualified teachers, by area of 
                certification or licensure, subject, and specialty, in 
                the State's public schools.
                    ``(J) A description of the activities that prepare 
                teachers to effectively integrate technology into 
                curricula and instruction and effectively use 
                technology to collect, manage, and analyze data in 
                order to improve teaching, learning, and decisionmaking 
                for the purpose of increasing student academic 
                achievement.
            ``(2) Prohibition against creating a national list.--The 
        Secretary shall not create a national list or ranking of 
        States, institutions, or schools using the scaled scores 
        provided under this subsection.
    ``(c) Report of the Secretary on the Quality of Teacher 
Preparation.--
            ``(1) Report card.--The Secretary shall provide to 
        Congress, and publish and make widely available, a report card 
        on teacher qualifications and preparation in the United States, 
        including all the information reported in subparagraphs (A) 
        through (J) of subsection (b)(1). Such report shall identify 
        States for which eligible partnerships received a grant under 
        this part. Such report shall be so provided, published, and 
        made available annually.
            ``(2) Report to congress.--The Secretary shall prepare and 
        submit a report to Congress that contains the following:
                    ``(A) A comparison of States' efforts to improve 
                the quality of the current and future teaching force.
                    ``(B) A comparison of eligible partnerships' 
                efforts to improve the quality of the current and 
                future teaching force.
                    ``(C) The national mean and median scaled scores 
                and pass rate on any standardized test that is used in 
                more than 1 State for teacher certification or 
                licensure.
            ``(3) Special rule.--In the case of a teacher preparation 
        program with fewer than 10 scores reported on any single 
        initial teacher certification or licensure assessment during an 
        academic year, the Secretary shall collect and publish 
        information, and make publicly available, with respect to an 
        average pass rate and scaled score on each State certification 
        or licensure assessment taken over a 3-year period.
    ``(d) Coordination.--The Secretary, to the extent practicable, 
shall coordinate the information collected and published under this 
part among States for individuals who took State teacher certification 
or licensure assessments in a State other than the State in which the 
individual received the individual's most recent degree.

``SEC. 205A. TEACHER DEVELOPMENT.

    ``(a) Annual Goals.--As a condition of receiving assistance under 
title IV, each institution of higher education that conducts a 
traditional teacher preparation program or alternative routes to State 
certification or licensure program and that enrolls students receiving 
Federal assistance under this Act shall set annual quantifiable goals 
for--
            ``(1) increasing the number of prospective teachers trained 
        in teacher shortage areas designated by the Secretary, 
        including mathematics, science, special education, and 
        instruction of limited English proficient students; and
            ``(2) more closely linking the training provided by the 
        institution with the needs of schools and the instructional 
        decisions new teachers face in the classroom.
    ``(b) Assurance.--As a condition of receiving assistance under 
title IV, each institution described in subsection (a) shall provide an 
assurance to the Secretary that--
            ``(1) training provided to prospective teachers responds to 
        the identified needs of the local educational agencies or 
        States where the institution's graduates are likely to teach, 
        based on past hiring and recruitment trends;
            ``(2) prospective special education teachers receive 
        coursework in core academic subjects and receive training in 
        providing instruction in core academic subjects;
            ``(3) regular education teachers receive training in 
        providing instruction to diverse populations, including 
        children with disabilities, limited English proficient 
        students, and children from low-income families; and
            ``(4) prospective teachers receive training on how to 
        effectively teach in urban and rural schools.
    ``(c) Public Reporting.--As part of the annual report card required 
under section 205(a)(1), an institution of higher education described 
in subsection (a) shall publicly report whether the goals established 
under such subsection have been met.

``SEC. 206. STATE FUNCTIONS.

    ``(a) State Assessment.--In order to receive funds under this Act, 
a State shall have in place a procedure to identify and assist, through 
the provision of technical assistance, low-performing programs of 
teacher preparation. Such State shall provide the Secretary an annual 
list of such low-performing teacher preparation programs that includes 
an identification of those programs at risk of being placed on such 
list. Such levels of performance shall be determined solely by the 
State and may include criteria based on information collected pursuant 
to this part. Such assessment shall be described in the report under 
section 205(b).
    ``(b) Termination of Eligibility.--Any program of teacher 
preparation from which the State has withdrawn the State's approval, or 
terminated the State's financial support, due to the low performance of 
the program based upon the State assessment described in subsection 
(a)--
            ``(1) shall be ineligible for any funding for professional 
        development activities awarded by the Department;
            ``(2) shall not be permitted to accept or enroll any 
        student that receives aid under title IV in the institution's 
        teacher preparation program; and
            ``(3) shall provide transitional support, including 
        remedial services if necessary, for students enrolled at the 
        institution at the time of termination of financial support or 
        withdrawal of approval.
    ``(c) Negotiated Rulemaking.--If the Secretary develops any 
regulations implementing subsection (b)(2), the Secretary shall submit 
such proposed regulations to a negotiated rulemaking process, which 
shall include representatives of States, institutions of higher 
education, and educational and student organizations.
    ``(d) Application of the Requirements.--The requirements of this 
section shall apply to both traditional teacher preparation programs 
and alternative routes to State certification and licensure programs.

``SEC. 207. GENERAL PROVISIONS.

    ``(a) Methods.--In complying with sections 205 and 206, the 
Secretary shall ensure that States and institutions of higher education 
use fair and equitable methods in reporting and that the reporting 
methods do not allow identification of individuals.
    ``(b) Special Rule.--For each State that does not use content 
assessments as a means of ensuring that all teachers teaching in core 
academic subjects within the State are highly qualified, as required 
under section 1119 of the Elementary and Secondary Education Act of 
1965 and in accordance with the State plan submitted or revised under 
section 1111 of such Act, and that each person employed as a special 
education teacher in the State who teaches elementary school, middle 
school, or secondary school is highly qualified by the deadline, as 
required under section 612(a)(14)(C) of the Individuals with 
Disabilities Education Act,--
            ``(1) the Secretary shall, to the extent practicable, 
        collect data comparable to the data required under this part 
        from States, local educational agencies, institutions of higher 
        education, or other entities that administer such assessments 
        to teachers or prospective teachers; and
            ``(2) notwithstanding any other provision of this part, the 
        Secretary shall use such data to carry out requirements of this 
        part related to assessments, pass rates, and scaled scores.
    ``(c) Release of Information to Teacher Preparation Programs.--
            ``(1) In general.--For the purpose of improving teacher 
        preparation programs, a State educational agency that receives 
        funds under this Act, or that participates as a member of a 
        partnership, consortium, or other entity that receives such 
        funds, shall provide to a teacher preparation program, upon the 
        request of the teacher preparation program, any and all 
        pertinent education-related information that--
                    ``(A) may enable the teacher preparation program to 
                evaluate the effectiveness of the program's graduates 
                or the program itself; and
                    ``(B) is possessed, controlled, or accessible by 
                the State educational agency.
            ``(2) Content of information.--The information described in 
        paragraph (1)--
                    ``(A) shall include an identification of specific 
                individuals who graduated from the teacher preparation 
                program to enable the teacher preparation program to 
                evaluate the information provided to the program from 
                the State educational agency with the program's own 
                data about the specific courses taken by, and field 
                experiences of, the individual graduates; and
                    ``(B) may include--
                            ``(i) kindergarten through grade 12 
                        academic achievement and demographic data, 
                        without revealing personally identifiable 
                        information about an individual student, for 
                        students who have been taught by graduates of 
                        the teacher preparation program; and
                            ``(ii) teacher effectiveness evaluations 
                        for teachers who graduated from the teacher 
                        preparation program.

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2008 and each of the 5 
succeeding fiscal years.''.

SEC. 202. REPEAL OF PART B (PREPARING TOMORROW'S TEACHERS TO USE 
              TECHNOLOGY).

    Title II (20 U.S.C. 1021 et seq.) is amended by repealing Part B.

SEC. 203. GENERAL PROVISIONS.

    Title II (20 U.S.C. 1021 et seq.) as amended by section 202 of this 
Act is amended by adding at the end the following:

                      ``PART B--GENERAL PROVISIONS

``SEC. 221. LIMITATIONS.

    ``(a) Federal Control Prohibited.--Nothing in this title shall be 
construed to permit, allow, encourage, or authorize any Federal control 
over any aspect of any private, religious, or home school, whether or 
not a home school is treated as a private school or home school under 
State law. This section shall not be construed to prohibit private, 
religious, or home schools from participation in programs or services 
under this title.
    ``(b) No Change in State Control Encouraged or Required.--Nothing 
in this title shall be construed to encourage or require any change in 
a State's treatment of any private, religious, or home school, whether 
or not a home school is treated as a private school or home school 
under State law.
    ``(c) National System of Teacher Certification or Licensure 
Prohibited.--Nothing in this title shall be construed to permit, allow, 
encourage, or authorize the Secretary to establish or support any 
national system of teacher certification or licensure.''.

SEC. 204. TEACHER INCENTIVE FUND PROGRAM.

    Title II (20 U.S.C. 1021 et seq.), as amended by section 203 of 
this Act, is further amended by adding at the end the following:

                ``PART C--TEACHER INCENTIVE FUND PROGRAM

``SEC. 231. PURPOSES; DEFINITIONS.

    ``(a) Purposes.--The purposes of this part are--
            ``(1) to assist States, local educational agencies, and 
        nonprofit organizations to develop, implement, or improve 
        comprehensive performance-based compensation systems for 
        teachers and principals, especially for teachers and principals 
        in high-need schools, who raise student academic achievement 
        and close the achievement gap; and
            ``(2) to study and review performance-based compensation 
        systems for teachers and principals to evaluate their 
        effectiveness, fairness, quality, consistency, and reliability.
    ``(b) Definitions.--For purposes of this part:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a local educational agency (including a 
                charter school that is a local educational agency), or 
                a consortium of such agencies;
                    ``(B) a State educational agency, or other State 
                agency designated by the chief executive of the State 
                to participate under this subpart; or
                    ``(C) a partnership of--
                            ``(i) one or more agencies described in 
                        subparagraph (A) or (B), or both; and
                            ``(ii) at least one nonprofit organization.
            ``(2) High-need local educational agency.--The term `high-
        need local educational agency' has the meaning given the term 
        in section 201.
            ``(3) High-need school.--The term `high-need school' has 
        the meaning given the term in section 201.
            ``(4) Performance-based compensation system.--The term 
        `performance-based compensation system' means a system of 
        compensation for teachers and principals that--
                    ``(A) differentiates levels of compensation 
                primarily on the basis of measurable increases in 
                student academic achievement; and
                    ``(B) may include--
                            ``(i) differentiated levels of compensation 
                        on the basis of high-quality teachers' and 
                        principals' employment and success in hard-to-
                        staff schools or high-need subject areas; and
                            ``(ii) recognition of the skills and 
                        knowledge of teachers and principals as 
                        demonstrated through--
                                    ``(I) successful fulfillment of 
                                additional responsibilities or job 
                                functions; and
                                    ``(II) evidence of high achievement 
                                and mastery of content knowledge and 
                                superior teaching skills.

``SEC. 232. TEACHER INCENTIVE FUND GRANTS.

    ``(a) In General.--From the amounts appropriated to carry out this 
part, the Secretary is authorized to make grants on a competitive basis 
to eligible entities to develop, implement, or improve performance-
based compensation systems in participating schools.
    ``(b) Priority.--In making such a grant, the Secretary shall give 
priority to an eligible entity that concentrates its proposed 
activities on teachers and principals serving in high-need schools.
    ``(c) Applications.--To be eligible to receive a grant under this 
part, an eligible entity shall submit an application to the Secretary, 
at such time and in such manner as the Secretary may reasonably 
require, that includes--
            ``(1) a description of the performance-based compensation 
        system that the applicant proposes to develop and implement or 
        improve;
            ``(2) a description and demonstration of the support and 
        commitment from teachers and principals in the targeted 
        schools, the community, and local educational agency or 
        agencies for the performance-based compensation system, 
        including demonstration of consultation with teachers and 
        principals on the development and implementation of the 
        performance-based compensation system;
            ``(3) a description of how the eligible entity will develop 
        and implement a fair, rigorous, and objective process to 
        evaluate teacher, principal, and student performance, including 
        the baseline performance against which evaluations of improved 
        performance will be made;
            ``(4) a description and demonstration of how teacher and 
        principal views were included in the development of the 
        performance-based compensation system;
            ``(5) a description of the local educational agency or 
        local educational agencies to be served by the project, 
        including such demographic information about students in the 
        schools to be served by the project as the Secretary may 
        request;
            ``(6) information on student academic achievement, the 
        quality of the teachers and principals, and existing 
        compensation, bonuses, and incentive systems for teachers and 
        principals in the schools to be served by the project;
            ``(7) a description of how the applicant will use grant 
        funds under this part in each year of the grant;
            ``(8) a description of the comprehensive, focused 
        professional development that is aligned with student content 
        and achievement standards that the applicant will implement to 
        support the performance-based compensation system;
            ``(9) an explanation of how the grantee will continue its 
        performance-based compensation system after the grant ends;
            ``(10) a description, if applicable, of how the applicant 
        will define the term `high-quality' for the purposes of section 
        241(b)(4)(B)(i), through the use of measurable indicators;
            ``(11) a description of the State, local, or philanthropic 
        funds that will be used to supplement the grant and sustain the 
        activities at the end of the grant period; and
            ``(12) A description of how the applicant will evaluate the 
        project annually, including any objective measures that are 
        clearly related to the goals for the project and information on 
        how the evaluation will produce quantitative and qualitative 
        data.
    ``(d) Use of Funds.--
            ``(1) In general.--A grantee shall use grant funds provided 
        under this part only to develop, implement, or improve, in 
        collaboration with teachers, principals, other school 
        administrators, and members of the public, a performance-based 
        compensation system consistent with the requirements of this 
        part.
            ``(2) Authorized activities.--Authorized activities under 
        this part may include the following:
                    ``(A) Developing appraisal systems that reflect 
                clear and fair measures of student academic 
                achievement.
                    ``(B) Developing appraisal systems that reflect 
                clear and fair measures of teacher and principal 
                performance based on demonstrated improvements in 
                student academic achievement.
                    ``(C) Conducting outreach within the local 
                educational agency (or agencies) or the State to gain 
                input on how to construct the appraisal system and to 
                develop support for it.
                    ``(D) Paying, as part of a comprehensive 
                performance-based compensation system, bonuses and 
                increased salaries to teachers and principals who raise 
                student academic achievement, so long as the grantee 
                uses an increasing share of non-Federal funds to pay 
                these monetary rewards each year of the grant.
                    ``(E) Paying, as part of a comprehensive 
                performance-based compensation system, additional 
                bonuses to teachers who both raise student academic 
                achievement and either teach in high-need schools or 
                teach subjects that are difficult to staff, or both, so 
                long as the grantee uses an increasing share of non-
                Federal funds to pay these monetary rewards each year 
                of the grant.
                    ``(F) Paying, as part of a comprehensive 
                performance-based compensation system, additional 
                bonuses to principals who both raise student academic 
                achievement and serve in high-need schools, so long as 
                the grantee uses an increasing share of non-Federal 
                funds to pay these monetary rewards each year of the 
                grant.
    ``(e) Duration of Grants.--
            ``(1) In general.--The Secretary may make grants under this 
        section for periods of up to 5 years.
            ``(2) Limitation.--An agency described in subparagraph (A) 
        of section 241(b)(1) may receive (whether individually or as 
        part of a consortium or partnership) a grant under this part 
        only once. Such an agency may continue to receive that grant 
        for the period of that grant, but shall not receive (whether 
        individually or as part of a consortium or partnership) any 
        other grant under this part.
    ``(f) Equitable Distribution.--To the extent practicable, the 
Secretary shall ensure an equitable geographic distribution of grants 
under this section.
    ``(g) Matching Requirement.--
            ``(1) Each eligible entity that receives a grant under this 
        section shall provide, from non-Federal sources, an amount 
        (which may be provided in cash or in kind) to carry out the 
        activities supported by the grant equal to--
                    ``(A) for the first year of the grant, 25 percent 
                of the amount received for that year under the grant;
                    ``(B) for the second year, 30 percent;
                    ``(C) for the third year, 35 percent;
                    ``(D) for the fourth year, 40 percent; and
                    ``(E) for the fifth year, 50 percent.
            ``(2) The Secretary may waive all or part of the matching 
        requirement described in paragraph (1) for any fiscal year for 
        an eligible entity described in section 241(b)(1)(A) if that 
        eligible entity is a high-need local educational agency, a 
        consortium of high-need local educational agencies, or a 
        charter school that is a high-need local educational agency and 
        the Secretary determines that applying the matching requirement 
        to such eligible entity would result in serious hardship or an 
        inability to carry out the activities described in subsection 
        (d).
    ``(h) Supplement, Not Supplant.--Grant funds provided under this 
section shall be used to supplement, not supplant, other Federal or 
State funds.

``SEC. 233. REPORT AND EVALUATION.

    ``(a) Report.--The Secretary shall provide an annual report on the 
implementation of the program to the Congress.
    ``(b) Evaluation.--
            ``(1) In general.--The Secretary shall, through grant or 
        contract, carry out an independent evaluation of the program 
        under this part.
            ``(2) Content.--The evaluation shall measure--
                    ``(A) the effectiveness of the program in improving 
                student academic achievement;
                    ``(B) the satisfaction of the participating 
                teachers or principals; and
                    ``(C) the extent to which the program assisted the 
                eligible entities in recruiting and retaining high-
                quality teachers and principals, especially in hard-to-
                staff subject areas.

``SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part such sums as may be necessary for fiscal year 2008 and 
each of the succeeding 5 fiscal years.
    ``(b) Reservation.--The Secretary may reserve not more than 3 
percent of the funds appropriated to carry out this part for any one 
fiscal year for the cost of the evaluation under section 243(b) and for 
technical assistance and program outreach.''.

SEC. 205. NATIONAL TEACHER CORPS.

    Title II (20 U.S.C. 1021 et seq.), as amended by section 204 of 
this Act, is further amended by adding at the end the following:

                    ``PART D--NATIONAL TEACHER CORPS

``SEC. 241. PURPOSES.

    ``The purposes of this part are--
            ``(1) to raise the number of highly accomplished recent 
        college graduates teaching in underserved urban and rural 
        communities in the United States;
            ``(2) to increase the number of school districts and 
        communities served by a nationally recruited corps of 
        outstanding new teachers; and
            ``(3) to build a broader pipeline of talented and 
        experienced future leaders in public education and education 
        reform.

``SEC. 242. DEFINITIONS.

    ``In this part:
            ``(1) In general.--The terms `highly qualified', `local 
        educational agency', and `Secretary' have the meanings given 
        the terms in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801).
            ``(2) High need.--The term `high need', when used with 
        respect to a local educational agency, means a local 
        educational agency experiencing a shortage of highly qualified 
        teachers, as determined by the Secretary.

``SEC. 243. GRANT PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award a grant to a highly-
selective national teacher corps to implement and expand its program of 
recruiting, selecting, training, and supporting new teachers. The 
grantee shall be a highly selective national teacher corps that--
            ``(1) focuses a national recruitment effort on recent 
        college graduates from all academic majors;
            ``(2) trains such graduates through intensive summer 
        institutes;
            ``(3) places such graduates as teachers in public schools 
        in school districts of high need local educational agencies in 
        urban and rural communities across multiple States; and
            ``(4) supports and measures the progress of such teachers 
        through intensive professional development.

``SEC. 244. GRANT REQUIREMENTS.

    ``In carrying out the grant program under this part, the Secretary 
shall enter into an agreement with the grantee under which the grantee 
agrees to use the grant funds--
            ``(1) to provide highly qualified teachers to high need 
        local educational agencies in urban and rural communities;
            ``(2) to pay the cost of recruiting, selecting, training, 
        and supporting new teachers; and
            ``(3) to serve a substantial number and percentage of 
        underserved students.

``SEC. 245. AUTHORIZED ACTIVITIES.

    ``Grant funds provided under this part shall be used by the grantee 
to carry out each of the following activities:
            ``(1) Recruiting and selecting teachers through a highly-
        selective national process.
            ``(2) Providing preservice training to selected teachers 
        through a rigorous summer institute that includes hands-on 
        teaching experience and significant exposure to education 
        coursework and theory.
            ``(3) Placing selected teachers in schools and positions in 
        high need local education agencies that serve a high percentage 
        of low-income students.
            ``(4) Providing ongoing professional development activities 
        for the selected teachers in the classroom, including regular 
        classroom observations and feedback, and ongoing training and 
        support.

``SEC. 246. EVALUATION.

    ``(a) Annual Report.--The grantee shall provide to the Secretary an 
annual report that includes--
            ``(1) data on the number and quality of the teachers 
        provided to local educational agencies through the grant under 
        this part;
            ``(2) an externally conducted analysis of the satisfaction 
        of local educational agencies and principals with the teachers 
        so provided; and
            ``(3) comprehensive data on the background of the selected 
        teachers, the training such teachers received, the placement 
        sites of the teachers, the professional development of the 
        teachers, and the retention of the teachers.
    ``(b) Study.--The Secretary shall provide for a study comparing the 
academic achievement of students taught by the teachers selected, 
trained, and placed under this part with the academic achievement of 
students taught by other teachers in the same schools and positions. 
The Secretary shall provide for such a study not less than once every 3 
years, and each such study shall include multiple local educational 
agencies. Each such study shall meet the peer-review standards of the 
education research community.

``SEC. 247. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums for fiscal year 2008 and each of the 5 succeeding fiscal 
years .''.

SEC. 206. TRANSITION.

    The Secretary of Education shall take such actions as the Secretary 
determines to be appropriate to provide for the orderly implementation 
of this title.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIBALLY CONTROLLED 
              COLLEGES AND UNIVERSITIES.

    (a) Eligible Institutions.--Subsection (b) of section 316 (20 
U.S.C. 1059c(b)) is amended to read as follows:
    ``(b) Definitions.--
            ``(1) Eligible institutions.--For purposes of this section, 
        Tribal Colleges and Universities are the following:
                    ``(A) any of the following institutions that 
                qualify for funding under the Tribally Controlled 
                College or University Assistance Act of 1978 or is 
                listed in the Equity in Educational Land-Grant Status 
                Act of 1994 (7 U.S.C. 301 note): Bay Mills Community 
                College; Blackfeet Community College; Cankdeska Cikana 
                Community College; Chief Dull Knife College; College of 
                Menominee Nation; Crownpoint Institute of Technology; 
                Dine College; D-Q University; Fond du Lac Tribal and 
                Community College; Fort Belknap College; Fort Berthold 
                Community College; Fort Peck Community College; Haskell 
                Indian Nations University; Institute of American Indian 
                and Alaska Native Culture and Arts Development; Lac 
                Courte Oreilles Ojibwa Community College; Leech Lake 
                Tribal College; Little Big Horn College; Little Priest 
                Tribal College; Nebraska Indian Community College; 
                Northwest Indian College; Oglala Lakota College; 
                Saginaw Chippewa Tribal College; Salish Kootenai 
                College; Si Tanka University--Eagle Butte Campus; Sinte 
                Gleska University; Sisseton Wahpeton Community College; 
                Sitting Bull College; Southwestern Indian Polytechnic 
                Institute; Stone Child College; Tohono O'odham 
                Community College; Turtle Mountain Community College; 
                United Tribes Technical College; and White Earth Tribal 
                and Community College; and
                    ``(B) any other institution of higher education 
                that meets the definition of tribally controlled 
                college or university in section 2 of the Tribally 
                Controlled College or University Assistance Act of 
                1978, and meets all other requirements of this section.
            ``(2) Indian.--The term `Indian' has the meaning given the 
        term in section 2 of the Tribally Controlled College or 
        University Assistance Act of 1978.''.
    (b) Distance Learning.--Subsection (c)(2) of such section is 
amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(B) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services, and the acquisition of real property adjacent 
                to the campus of the institution on which to construct 
                such facilities;'';
            (2) in subparagraph (C), by inserting before the semicolon 
        at the end the following: ``, or advanced degrees in tribal 
        governance or tribal public policy'';
            (3) in subparagraph (D), by inserting before the semicolon 
        at the end the following: ``, in tribal governance, or in 
        tribal public policy'';
            (4) by striking ``and'' at the end of subparagraph (K);
            (5) by redesignating subparagraph (L) as subparagraph (M); 
        and
            (6) by inserting after subparagraph (K) the following new 
        subparagraph:
                    ``(L) developing or improving facilities for 
                Internet use or other distance learning academic 
                instruction capabilities; and''.
    (c) Application and Allotment.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Application and Allotment.--
            ``(1) Institutional eligibility.--To be eligible to receive 
        assistance under this section, a Tribal College or University 
        shall be an eligible institution under section 312(b).
            ``(2) Application.--Any Tribal College or University 
        desiring to receive assistance under this section shall submit 
        an application to the Secretary at such time, and in such 
        manner, as the Secretary may reasonably require.
            ``(3) Allotments to institutions.--
                    ``(A) Allotment: pell grant basis.--From the amount 
                appropriated to carry out this section for any fiscal 
                year, the Secretary shall allot to each eligible 
                institution a sum which bears the same ratio to one-
                half that amount as the number of Pell Grant recipients 
                in attendance at such institution at the end of the 
                award year preceding the beginning of that fiscal year 
                bears to the total number of Pell Grant recipients at 
                all eligible institutions.
                    ``(B) Allotment: degree and certificate basis.--
                From the amount appropriated to carry out this section 
                for any fiscal year, the Secretary shall allot to each 
                eligible institution a sum which bears the same ratio 
                to one-half that amount as the number of degrees or 
                certificates awarded by such institution during the 
                preceding academic year bears to the total number of 
                degrees or certificates awarded by all eligible 
                institutions.
                    ``(C) Minimum grant.--Notwithstanding subparagraphs 
                (A) and (B), the amount allotted to each institution 
                under this section shall not be less than $500,000.
            ``(4) Special rules.--
                    ``(A) Concurrent funding.--For the purposes of this 
                part, no Tribal College or University that is eligible 
                for and receives funds under this section shall 
                concurrently receive funds under other provisions of 
                this part or part B.
                    ``(B) Exemption.--Section 313(d) shall not apply to 
                institutions that are eligible to receive funds under 
                this section.''.

SEC. 302. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

    (a) Distance Learning.--Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) 
is amended--
            (1) by amending subparagraph (B) to read as follows:
                    ``(B) construction, maintenance, renovation, and 
                improvement in classrooms, libraries, laboratories, and 
                other instructional facilities, including purchase or 
                rental of telecommunications technology equipment or 
                services, and the acquisition of real property adjacent 
                to the campus of the institution on which to construct 
                such facilities;'';
            (2) in subparagraph (C), by inserting before the semicolon 
        at the end the following: ``, or advanced degrees in tribal 
        governance or tribal public policy'';
            (3) in subparagraph (D), by inserting before the semicolon 
        at the end the following: ``, in tribal governance, or tribal 
        public policy'';
            (4) by striking ``and'' at the end of subparagraph (G);
            (5) by striking the period at the end of subparagraph (H) 
        and inserting a semicolon; and
            (6) by inserting after subparagraph (H) the following new 
        subparagraph:
                    ``(I) development or improvement of facilities for 
                Internet use or other distance learning academic 
                instruction capabilities; and''.
    (b) Endowment Funds.--Section 317(c) is further amended by adding 
at the end the following new paragraph:
            ``(3) Endowment funds.--
                    ``(A) In general.--An Alaska Native-serving 
                institution or Native Hawaiian-serving institution may 
                use not more than 20 percent of the grant funds 
                provided under this section to establish or increase an 
                endowment fund at the institution.
                    ``(B) Matching requirement.--In order to be 
                eligible to use grant funds in accordance with 
                subparagraph (A), the institution shall provide to the 
                endowment fund from non-Federal funds an amount equal 
                to the Federal funds used in accordance with 
                subparagraph (A), for the establishment or increase of 
                the endowment fund.
                    ``(C) Applicability of other provisions.--The 
                provisions of part C regarding the establishment or 
                increase of an endowment fund, that the Secretary 
                determines are not inconsistent with this paragraph, 
                shall apply to funds used under subparagraph (A).''.
    (c) Application Process.--Section 317(d)(2) is amended by striking 
everything after the first sentence.

SEC. 303. GRANTS TO PART B INSTITUTIONS.

    (a) Use of Funds.--
            (1) Facilities and equipment.--
                    (A) Undergraduate institutions.--Paragraph (2) of 
                section 323(a) (20 U.S.C. 1062(a)) is amended to read 
                as follows:
            ``(2) Construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including development or improvement 
        of facilities for Internet use or other distance learning 
        academic instruction capabilities and purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities.''.
                    (B) Graduate and professional schools.--Paragraph 
                (2) of section 326(c) (20 U.S.C. 1063b(c)) is amended 
                to read as follows:
            ``(2) construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities;''.
            (2) Outreach and collaboration.--Paragraph (11) of section 
        323(a) (20 U.S.C. 1062(a)) is amended to read as follows:
            ``(11) Establishing community outreach programs and 
        collaborative partnerships between part B institutions and 
        local elementary or secondary schools. Such partnerships may 
        include mentoring, tutoring, or other instructional 
        opportunities that will boost student academic achievement and 
        assist elementary and secondary school students in developing 
        the academic skills and the interest to pursue postsecondary 
        education.''.
    (b) Technical Assistance.--Section 323 (20 U.S.C. 1062) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Technical Assistance.--
            ``(1) In general.--An institution may not use more than 2 
        percent of the grant funds provided under this part to secure 
        technical assistance.
            ``(2) Technical assistance.--Technical assistance may 
        include assistance with enrollment management, financial 
        management, and strategic planning.
            ``(3) Report.--The institution shall report to the 
        Secretary on an annual basis, in such form as the Secretary 
        requires, on the use of funds under this subsection.''.
    (c) Minimum Grants.--Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is 
amended by inserting before the period at the end the following: ``, 
except that, if the amount appropriated to carry out this part for any 
fiscal year exceeds the amount needed to provide to each institution an 
amount equal to the total amount received by such institution under 
subsections (a), (b), and (c) for the preceding fiscal year, then the 
amount of such excess appropriation shall first be applied to increase 
the minimum allotment under this subsection to $750,000''.
    (d) Eligible Graduate or Professional Schools.--
            (1) General authority.--Section 326(a)(1) (20 U.S.C. 
        1063b(a)(1)) is amended--
                    (A) by inserting ``(A)'' after ``subsection (e) 
                that''; and
                    (B) by inserting before the period at the end the 
                following: ``, (B) 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, and (C) according to such 
                an agency or association, is in good standing''.
            (2) Eligible institutions.--Section 326(e)(1) (20 U.S.C. 
        1063b(e)(1)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (Q);
                    (B) by striking the period at the end of 
                subparagraph (R) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(S) Alabama State University qualified graduate 
                program;
                    ``(T) Prairie View A & M University qualified 
                graduate program;
                    ``(U) Coppin State University qualified graduate 
                program;
                    ``(V) Delaware State University qualified graduate 
                program;
                    ``(W) Langston University qualified graduate 
                program;
                    ``(X) West Virginia State University qualified 
                graduate program; and
                    ``(Y) Fayetteville State University qualified 
                graduate program.''.
            (3) Conforming amendment.--Section 326(e)(3) (20 U.S.C. 
        1063b(e)(3)) is amended--
                    (A) by striking ``1998'' and inserting ``2006''; 
                and
                    (B) by striking ``(Q) and (R)'' and inserting ``(S) 
                through (Y)''.
    (e) Professional or Graduate Institutions.--Section 326(f) (20 
U.S.C. 1063b(f)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``$26,600,000'' and inserting 
                ``$54,500,000''; and
                    (B) by striking ``(P)'' and inserting ``(R)'';
            (2) in paragraph (2)--
                    (A) by striking ``$26,600,000, but not in excess of 
                $28,600,000'' and inserting ``$54,500,000, but not in 
                excess of $58,500,000''; and
                    (B) by striking ``subparagraphs (Q) and (R)'' and 
                inserting ``subparagraphs (S) through (Y)''; and
            (3) in paragraph (3)--
                    (A) by striking ``$28,600,000'' and inserting 
                ``$58,500,000''; and
                    (B) by striking ``(R)'' and inserting ``(Y)''.
    (f) Hold Harmless.--Section 326(g) (20 U.S.C. 1063b(g)) is amended 
by striking ``1998'' each place it appears and inserting ``2006''.

SEC. 304. TECHNICAL AMENDMENTS.

    (a) Amendments.--Title III is further amended--
            (1) in section 311(c) (20 U.S.C. 1057(c))--
                    (A) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (2) in section 312(b)(1)(A) (20 U.S.C. 1058(b)(1)(A)), by 
        striking ``subsection (c)'' and inserting ``subsection (d)'';
            (3) in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by 
        inserting ``which is'' before ``located'';
            (4) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by 
        redesignating subparagraphs (E) and (F) as subparagraphs (F) 
        and (G), respectively, and by inserting after subparagraph (D) 
        the following new subparagraph:
                    ``(E) which provides a program that is not less 
                than a 2-year educational program that is acceptable 
                for full credit toward a bachelor's degree;'';
            (5) in section 316(c)(2) (20 U.S.C. 1059c(c)(2))--
                    (A) by redesignating subparagraphs (G) through (M) 
                (as redesignated by section 301(b)(5) of this Act) as 
                subparagraphs (H) through (N), respectively;
                    (B) by inserting after subparagraph (F) the 
                following:
                    ``(G) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents;''; and
                    (C) in subparagraph (N), as redesignated by 
                subparagraph (A), by striking ``subparagraphs (A) 
                through (K)'' and inserting ``subparagraphs (A) through 
                (M)'';
            (6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2)), by 
        inserting after subparagraph (I) (as added by section 302(a)(6) 
        of this Act) the following:
                    ``(J) education or counseling services designed to 
                improve the financial literacy and economic literacy of 
                students and, as appropriate, their parents.'';
            (7) in section 323(a) (20 U.S.C. 1062(a))--
                    (A) by striking ``section 360(a)(2)'' and inserting 
                ``section 399(a)(2)(A)'';
                    (B) by redesignating paragraphs (7) through (12) as 
                paragraphs (8) through (13), respectively; and
                    (C) by inserting after paragraph (6) the following:
            ``(7) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by 
        striking ``section 360(a)(2)(A)'' and inserting ``section 
        399(a)(2)(A)'';
            (9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the 
        matter preceding subparagraph (A), by inserting a colon after 
        ``the following'';
            (10) in section 327(b) (20 U.S.C. 1063c(b)), by striking 
        ``initial'';
            (11) in section 342(5)(C) (20 U.S.C. 1066a(5)(C))--
                    (A) by inserting a comma after ``equipment'' the 
                first place it appears; and
                    (B) by striking ``technology,,'' and inserting 
                ``technology,'';
            (12) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
        after the subsection designation the following: ``Sale of 
        Qualified Bonds.--'';
            (13) in section 351(a) (20 U.S.C. 1067a(a)), by striking 
        ``of 1979'';
            (14) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
        striking ``subparagraph (E)'' and inserting ``subparagraph 
        (D)''; and
            (15) in section 396 (20 U.S.C. 1068e), by striking 
        ``section 360'' and inserting ``section 399''.
    (b) Repeal.--Section 1024 (20 U.S.C. 1135b-3), as transferred by 
section 301(a)(5) of the Higher Education Amendments of 1998 (Public 
Law 105-244; 112 Stat. 1636), is repealed.

SEC. 305. TITLE III AUTHORIZATIONS.

    Section 399(a) (20 U.S.C. 1068h(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2007'';
            (2) by striking ``4 succeeding fiscal years'' each place it 
        appears and inserting ``5 succeeding fiscal years'';
            (3) in paragraph (1)--
                    (A) by striking ``$10,000,000'' in subparagraph (B) 
                and inserting ``$23,800,000''; and
                    (B) by striking ``$5,000,000'' in subparagraph (C) 
                and inserting ``$11,900,000'';
            (4) in paragraph (2)--
                    (A) by striking ``$135,000,000'' in subparagraph 
                (A) and inserting ``$241,000,000''; and
                    (B) by striking ``$35,000,000'' in subparagraph (B) 
                and inserting ``$59,000,000''; and
            (5) in paragraph (4), by striking ``$110,000'' and 
        inserting ``$212,000''.

                      TITLE IV--STUDENT ASSISTANCE

                       PART A--GRANTS TO STUDENTS

SEC. 401. PELL GRANTS.

    (a) Extension of Authority.--Section 401(a) (20 U.S.C. 1070a(a)) is 
amended by striking ``2004'' and inserting ``2013''.
    (b) Direct Payment.--Section 401(a) (20 U.S.C. 1070a(a)) is further 
amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (c) Maximum Pell Grant Increase.--Paragraph (2)(A) of section 
401(b) 20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
    ``(2)(A) The amount of the Federal Pell Grant for a student 
eligible under this part shall be $6,000 for academic years 2008-2009 
through 2013-2014, less an amount equal to the amount determined to be 
the expected family contribution with respect to that student for that 
year.''.
    (d) Multiple Grants.--Paragraph (5) of section 401(b) (as 
redesignated by subsection (d)(2)) is amended to read as follows:
            ``(5) Year-round pell grants.--
                    ``(A) In general.--The Secretary shall, for 
                students enrolled full time in a baccalaureate or 
                associate's degree program of study at an eligible 
                institution, award such students not more than two Pell 
                grants during an award year to permit such students to 
                accelerate progress toward their degree objectives by 
                enrolling in academic programs for 12 months rather 
                than 9 months.
                    ``(B) Limitation.--The Secretary shall limit the 
                awarding of additional Pell grants under this paragraph 
                to students attending--
                            ``(i) baccalaureate degree granting 
                        institutions that have a graduation rate as 
                        reported by the Integrated Postsecondary 
                        Education Data System for the 4 preceding 
                        academic years of at least 30 percent; or
                            ``(ii) two-year institutions that have a 
                        graduation rate as reported by the Integrated 
                        Postsecondary Education Data Systems, in at 
                        least one of the last 3 years for which data is 
                        available, that is above the average for the 
                        applicable year for the institution's type and 
                        control.
                    ``(C) Evaluation.--The Secretary shall conduct an 
                evaluation of the program under this paragraph and 
                submit to the Congress an evaluation report no later 
                than October 1, 2011.
                    ``(D) Regulations required.--The Secretary shall 
                promulgate regulations implementing this paragraph.''.
    (e) Ineligibility Based on Involuntary Civil Commitment for Sexual 
Offenses.--Paragraph (7) of section 401(b) (as redesignated by 
subsection (d)(2)) is amended by inserting before the period the 
following: ``or who is subject to an involuntary civil commitment upon 
completion of a period of incarceration for a forcible or nonforcible 
sexual offense (as determined in accordance with the Federal Bureau of 
Investigation's Uniform Crime Reporting Program)''.
    (f) Pell Grant Eligibility Duration.--Section 401(c) (20 U.S.C. 
1070a(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The period'' and inserting in 
                lieu thereof ``Subject to paragraph (5), the period''; 
                and
                    (B) by striking the period at the end thereof and 
                inserting ``but shall be subject to the limitation 
                described in paragraph (5).''; and
            (2) by adding at the end the following new paragraph:
    ``(5) The period during which a student may receive Federal Pell 
Grants shall not exceed the equivalent of 18 semesters or 27 quarters 
in duration (as determined by the Secretary by regulation), without 
regard to whether the student is enrolled on a full-time basis during 
any portion of that period, and including any period of time for which 
the student received Federal Pell Grants prior to the date of enactment 
of the College Access and Opportunity Act of 2006.''.
    (g) Eligibility Period.--Section 401(c)(2) (20 U.S.C. 1070a(c)(2)) 
is amended by inserting ``, for not more than one academic year,'' 
after ``which are determined by the institution'' in the first 
sentence.
    (h) Academic Competitiveness Grant Eligibility.--Section 401A(c)(3) 
(as added by section 8003 of the Higher Education Reconciliation Act of 
2005) is amended by striking ``established by a State or local 
educational agency and recognized as such by the Secretary'' each place 
it appears in subsections (c)(3)(A)(i) and (c)(3)(B)(i) and inserting 
``that prepares students for college and work beyond the basic 
graduation requirements and that is recognized as such by the 
designated State official, or with respect to any private school or 
home school, the designated school official for such school''.
    (i) Conforming Amendment.--Chapter 3 of subpart 2 of part A of 
title IV (20 U.S.C. 1070a-31 through 1070a-35) is repealed.
    (j) Effective Date.--The amendments made by this section shall be 
effective with respect to academic years beginning on or after July 1, 
2008.

SEC. 402. TRIO PROGRAMS.

    (a) Duration of Grants.--
            (1) Amendment.--Section 402A(b)(2) (20 U.S.C. 1070a-
        11(b)(2)) is amended to read as follows:
            ``(2) Duration.--Grants or contracts awarded under this 
        chapter shall be awarded for a period of 5 years, except that--
                    ``(A) grants under section 402G shall be awarded 
                for a period of 2 years; and
                    ``(B) grants under section 402H shall be awarded 
                for a period determined by the Secretary.''.
            (2) Transition to synchronous grant periods.--
        Notwithstanding section 402A(b)(2) of the Higher Education Act 
        of 1965 (as in effect both prior to and after the amendment 
        made by paragraph (1) of this subsection), the Secretary of 
        Education may continue an award made before the date of 
        enactment of this Act under section 402B, 402C, 402D, 402E, or 
        402F of such Act as necessary to permit all the awards made 
        under such a section to expire at the end of the same fiscal 
        year, and thereafter to expire at the end of 5 years as 
        provided in the amendment made by paragraph (1) of this 
        subsection.
    (b) Minimum Grants.--Section 402A(b)(3) (20 U.S.C. 1070a-11(b)(3)) 
is amended to read as follows:
            ``(3) Minimum grants.--Unless the institution or agency 
        requests a smaller amount, individual grants for programs 
        authorized under this chapter shall be no less than $200,000, 
        except that individual grants for programs authorized under 
        section 402G shall be no less than $170,000.''.
    (c) Application Status; Foster Care Coordination.--Paragraph (7) of 
section 402A(c) (20 U.S.C. 1070a-11(c)(7)) is amended to read as 
follows:
            ``(7) Coordination.--Each applicant for funds under the 
        programs authorized by this chapter shall identify services to 
        foster care youth as a permissible service in those programs, 
        and ensure that such youth receive supportive services, 
        including mentoring, tutoring, and other services provided by 
        those programs.''.
    (d) Documentation of Status.--Section 402A(e) (20 U.S.C. 1070a-
11(e)) is amended by striking ``(g)(2)'' each place it appears in 
paragraphs (1) and (2) and inserting ``(i)(4)''.
    (e) Homeless and Unaccompanied Youth.--Section 402A(e) is further 
amended by adding at the end the following new paragraph:
    ``(3) Notwithstanding this subsection and subsection (i)(4), 
individuals who are homeless or unaccompanied youth as defined in 
section 725 of the McKinney-Vento Homeless Assistance Act shall be 
eligible to participate in programs under sections 402B, 402C, 402D, 
and 402F of this chapter.''.
    (f) Authorization of Appropriations.--Section 402A(f) (20 U.S.C. 
1070a-11(f)) is amended by striking ``$700,000,000 for fiscal year 
1999, and such sums as may be necessary for each of the 4 succeeding 
fiscal years'' and inserting ``$836,500,000 for fiscal year 2008 and 
such sums as may be necessary for each of the 5 succeeding fiscal 
years''.
    (g) Definition.--Section 402A(g) (20 U.S.C. 1070a-11(g)) is 
amended--
            (1) in paragraph (3)--
                    (A) by striking ``by reason of such individual's 
                age'';
                    (B) in subparagraph (A), by striking ``or'' at the 
                end;
                    (C) in subparagraph (B), by striking the period and 
                inserting ``; or''; and
                    (D) by adding at the end the following new 
                subparagraph (C):
                    ``(C) was a member of a reserve component of the 
                Armed Forces who served on active duty in support of a 
                contingency operation (as that term is defined in 
                section 101(a)(13) of title 10, United States Code) on 
                or after September 11, 2001.'';
            (2) by redesignating paragraphs (1) through (4) as 
        paragraphs (3) through (6), respectively; and
            (3) by inserting before paragraph (3), as redesignated, the 
        following:
            ``(1) Different campus.--The term `different campus' means 
        an institutional site that--
                    ``(A) is geographically apart from the main campus 
                of the institution;
                    ``(B) is permanent in nature; and
                    ``(C) offers courses in educational programs 
                leading to a degree, certificate, or other recognized 
                educational credential.
            ``(2) Different population.--The term `different 
        population' means a group of individuals, with respect to whom 
        an entity seeks to serve through an application for funding 
        under this chapter, that--
                    ``(A) is separate and distinct from any other 
                population that the entity seeks to serve through an 
                application for funding under this chapter; or
                    ``(B) while sharing some of the same needs as 
                another population that the entity seeks to serve 
                through an application for funding under this chapter, 
                has distinct needs for specialized services.''.
    (h) Education and Counseling Services.--Chapter 1 of subpart 2 of 
part A of title IV is further amended--
            (1) in section 402B(b) (20 U.S.C. 1070a-12(b))--
                    (A) by redesignating paragraphs (3) through (10) as 
                paragraphs (4) through (11), respectively;
                    (B) by inserting after paragraph (2) the following:
            ``(3) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (2) in section 402C (20 U.S.C. 1070a-13)--
                    (A) in subsection (b)--
                            (i) by redesignating paragraphs (2) through 
                        (12) as paragraphs (3) through (13), 
                        respectively;
                            (ii) by inserting after paragraph (1) the 
                        following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;'';
                            (iii) in paragraph (12), as redesignated by 
                        clause (i), by inserting ``, specifically in 
                        the fields of math and science'' after 
                        ``postsecondary education''; and
                            (iv) in paragraph (13), as redesignated by 
                        clause (i), by striking ``paragraphs (1) 
                        through (11)'' and inserting ``paragraphs (1) 
                        through (12)''; and
                    (B) in subsection (e), by striking ``subsection 
                (b)(10)'' and inserting ``subsection (b)(11)'';
            (3) in section 402D(b) (20 U.S.C. 1070a-14(b))--
                    (A) by redesignating paragraphs (2) through (10) as 
                paragraphs (3) through (11), respectively;
                    (B) by inserting after paragraph (1) the following:
            ``(2) education or counseling services designed to improve 
        the financial literacy and economic literacy of students;''; 
        and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)'';
            (4) in section 402E(b) (20 U.S.C. 1070a-15(b))--
                    (A) by redesignating paragraphs (7) and (8) as 
                paragraphs (8) and (9), respectively; and
                    (B) by inserting after paragraph (6) the following:
            ``(7) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
            (5) in section 402F(b) (20 U.S.C. 1070a-16(b))--
                    (A) by redesignating paragraphs (4) through (10) as 
                paragraphs (5) through (11), respectively;
                    (B) by inserting after paragraph (3) the following:
            ``(4) education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents;''; and
                    (C) in paragraph (11), as redesignated by 
                subparagraph (A), by striking ``paragraphs (1) through 
                (9)'' and inserting ``paragraphs (1) through (10)''.
    (i) Maximum Stipends.--Section 402C(e) (20 U.S.C. 1070a-13(e)) is 
amended--
            (1) by striking ``$60'' and inserting ``$100''; and
            (2) by striking ``$40'' and inserting ``$60''.
    (j) Student Support Services.--Section 402D(d)(6) (20 U.S.C. 1070a-
14(d)(6)) is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) working with other entities that serve low-
                income working adults to increase access to and 
                successful progress in postsecondary education by low-
                income working adults seeking their first postsecondary 
                degree or certificate.''.
    (k) Postbaccalaureate Achievement Maximum Stipends.--Section 
402E(e)(1) (20 U.S.C. 1070a-15(e)(1)) is amended by striking ``$2,800'' 
and inserting ``$5,000''.
    (l) Educational Opportunity Centers: Application Approval.--Section 
402F(c) (20 U.S.C. 1070a-16(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) consider the extent to which the proposed project 
        would provide services to low-income working adults in the 
        region to be served, in order to increase access to 
        postsecondary education by low-income working adults.''.
    (m) GAO Study of Allocation of Funds.--
            (1) Study required.--The Comptroller General shall conduct 
        a study of the Federal TRIO Programs under chapter 1 of subpart 
        2 of part A of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1070a-11 et seq.) to examine the allocation of funds 
        procedures for such programs. Such study shall--
                    (A) examine the consideration of prior experience 
                of service delivery and its impact on grant applicants 
                who have prior experience as compared to those who do 
                not have prior experience; and
                    (B) examine the impact of the prior experience 
                consideration in distribution of funds across programs 
                and the impact of maintaining continuation of older 
                programs on the success rate of accomplishing the goals 
                of the program.
            (2) Report.--The Comptroller General shall submit a report 
        on the study required by paragraph (1) within one year of the 
        date of enactment of this Act to the Committee on Education and 
        Labor of the House of Representatives and the Committee on 
        Health, Education, Labor, and Pensions of the Senate.

SEC. 403. TRIO REFORM.

    (a) Performance Measures.--Section 402A (20 U.S.C. 1070a-11) is 
amended--
            (1) by redesignating subsections (c), (d), (e), (f), and 
        (g) as subsections (d), (e), (g), (h), and (i), respectively; 
        and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Performance Measures.--
            ``(1) In general.--The Secretary shall establish expected 
        program outcomes and procedures for measuring, annually and for 
        longer periods, the quality and effectiveness of programs 
        operated under this chapter, and the impact of these programs 
        in supporting the attainment of higher education for students 
        from disadvantaged backgrounds, particularly low-income 
        individuals, prospective first-generation college students, and 
        individuals with disabilities.
            ``(2) Use of measures.--The performance measures described 
        in paragraph (1) shall consider demographic and geographic 
        variation and be used to--
                    ``(A) assess the impact of the specific services 
                provided by recipients of grants or contracts under 
                this chapter and, to the extent the Secretary finds 
                appropriate, administrative and financial management 
                practices of such programs;
                    ``(B) identify strengths and weaknesses in the 
                provision of services provided by grantees under this 
                chapter;
                    ``(C) identify project operations that may require 
                training and technical assistance resources.
            ``(3) Additional measures.--In addition to the performance 
        measures in paragraph (1), each grant recipient may establish 
        local performance measures.''.
    (b) Selection.--Subsection (d) of such section (as redesignated by 
subsection (a)(1) of this section) is amended--
            (1) by redesignating paragraphs (2) through (6) as 
        paragraphs (3) through (7), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Selection.--
                    ``(A) In general.--In awarding grants from among 
                qualified applicants, the Secretary shall consider the 
                effectiveness of each applicant in providing services 
                under this chapter, based on--
                            ``(i) the plan of such applicant to deliver 
                        program services and achieve expected program 
                        outcomes established by the Secretary;
                            ``(ii) the plan of such applicant to 
                        coordinate program services with other programs 
                        for disadvantaged students; and
                            ``(iii) any prior experience of such 
                        applicant in achieving expected program 
                        outcomes under this chapter.
                    ``(B) Additional criteria.--The Secretary may 
                establish additional selection criteria as necessary to 
                identify the most qualified applicants.''.
    (c) Prior Experience.--Paragraph (3) of such subsection (d) 
(redesignated by subsection (b)(1) of this section) is amended--
            (1) by striking subparagraph (A) and inserting ``(A) In 
        making grants under this chapter, the Secretary shall use the 
        measures described in subsection (c)(1) to evaluate each 
        applicant's prior experience in achieving expected program 
        outcomes under the particular program for which funds are 
        sought.''; and
            (2) by adding at the end the following new subparagraph:
            ``(C) The Secretary shall not give prior experience points 
        to any current grantee that during the then most recent period 
        for which funds were provided--
                    ``(i) failed to meet one or more expected program 
                outcomes based on the performance measures described in 
                subsection (c); or
                    ``(ii) expended funds for indirect costs in an 
                amount that exceeded 8 percent of the total grant 
                award.''.
    (d) Order of Awards.--Paragraph (4) of such subsection (d) (as 
redesignated by subsection (b)(1) of this section) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``under paragraph (4)'' and 
                inserting ``under paragraph (5)''; and
                    (B) by striking ``with paragraph (2)'' and 
                inserting ``with paragraph (3)''; and
            (2) by amending subparagraph (B) to read as follows:
            ``(B) The Secretary shall not provide assistance to an 
        entity if the Secretary has determined that such entity has 
        involved the fraudulent use of public or private funds.''.
    (e) Technical Assistance.--Paragraph (3) of subsection (e) of such 
section (as redesignated by subsection (a)(1) of this section) is 
amended to read as follows:
            ``(3) Technical assistance.--The Secretary shall provide 
        technical assistance to applicants for projects and programs 
        authorized under this chapter. The Secretary shall give 
        priority to serving programs and projects that serve geographic 
        areas and eligible populations which have been underserved by 
        the programs assisted under this chapter. Technical training 
        activities shall include the provision of information on 
        authorizing legislation, goals and objectives of the program, 
        required activities, eligibility requirements, the application 
        process and application deadlines, and assistance in the 
        development of program proposals and the completion of program 
        applications.''.
    (f) Recordkeeping and Reporting.--Section 402A is further amended 
by inserting after subsection (e) of such section (as redesignated by 
subsection (a)(1) of this section) the following new subsection:
    ``(f) Recordkeeping and Reporting.--
            ``(1) In general.--The Secretary shall establish uniform 
        reporting requirements and require each recipient of funds 
        under this chapter to submit annually and in electronic form 
        such information in such manner and form and at such time as 
        the Secretary may require, except that reporting such 
        information shall not reveal personally identifiable 
        information about an individual student.
            ``(2) Report to congress.--At least once every 2-year 
        period, the Secretary shall prepare and submit to the 
        authorizing committees, a report on the services provided to 
        students that shall include--
                    ``(A) a statement for the then most recently 
                concluded fiscal year specifying--
                            ``(i) the amount of funds received by 
                        grantees to provide services under this 
                        chapter; and
                            ``(ii) the amount of funds received by new 
                        grantees to provide services under this 
                        chapter;
                    ``(B) a description of the specific services 
                provided to students;
                    ``(C) a summary of the overall success in achieving 
                specific program outcomes or progress toward such 
                outcomes;
                    ``(D) a report of the number of students served by 
                types of service received;
                    ``(E) information summarizing the types of 
                organizations that received funds under this chapter; 
                and
                    ``(F) a summary of the research and evaluation 
                activities under section 402H, including--
                            ``(i) a status report on ongoing 
                        activities; and
                            ``(ii) results, conclusions, and 
                        recommendations based on the most recent report 
                        available''.
    (g) Increased Monitoring.--Subsection (h) of such section (as 
redesignated by subsection (a)(1) of this section) is amended by 
striking everything after the first sentence and inserting the 
following: ``Of the amount appropriated under this chapter, the 
Secretary may use no more than one half of 1 percent of such amount to 
support the administration of the Federal TRIO programs including to 
increase the level of oversight monitoring, to support impact studies, 
program assessments and reviews, and to provide technical assistance to 
prospective applicants and current grantees.''.
    (h) Expected Program Outcomes.--
            (1) Section 402B (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(c) Expected Program Outcomes.--For the purposes of assessing an 
applicant's performance under section 402A(c)(1), and prior experience 
under section 402A(d)(3), the Secretary shall consider--
            ``(1) the rate of college enrollment of students served by 
        the program;
            ``(2) the continued secondary school enrollment of 
        participating students;
            ``(3) the graduation of participating students from 
        secondary school;
            ``(4) the delivery of services described in the application 
        approved by the Secretary; and
            ``(5) other such outcomes the Secretary may require.''.
            (2) Section 402C (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(f) Expected Program Outcomes.--For the purposes of assessing an 
applicant's performance under section 402A(c)(1), and prior experience 
under section 402A(d)(3), the Secretary shall consider--
            ``(1) the rate of college enrollment of students served by 
        the program;
            ``(2) the persistence of students in postsecondary 
        education;
            ``(3) the delivery of services described in the application 
        approved by the Secretary;
            ``(4) the academic achievement of participating students; 
        and
            ``(5) other such outcomes the Secretary may require.''.
            (3) Section 402D (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(e) Expected Program Outcomes.--For the purposes of assessing an 
applicant's performance under section 402A(c)(1), and prior experience 
under section 402A(d)(3), the Secretary shall consider--
            ``(1) the persistence in postsecondary education of all 
        students served by the program;
            ``(2)(A) in the case of a grant recipient that is an 
        institution of higher education offering a baccalaureate 
        degree, the number of participating students who completed 
        degree programs in which such students were enrolled; or
            ``(B) in the case of a grant recipient that is an 
        institution of higher education not offering a baccalaureate 
        degree, the number of participating students who--
                    ``(i) completed degree or certificate programs; and
                    ``(ii) transferred to institutions of higher 
                education offering baccalaureate degrees;
            ``(3) the delivery of services described in the application 
        approved by the Secretary; and
            ``(4) other such outcomes the Secretary may require.''.
            (4) Section 402E (20 U.S.C. 1070a-12) is amended by 
        striking subsection (f) and inserting the following:
    ``(f) Expected Program Outcomes.--For the purposes of assessing an 
applicant's performance under section 402A(c)(1), and prior experience 
under section 402A(d)(3), the Secretary shall consider--
            ``(1) the rate of graduate school enrollment of 
        participating students;
            ``(2) the attainment of doctoral degrees by participating 
        students;
            ``(3) the delivery of services described in the application 
        approved by the Secretary; and
            ``(4) other such outcomes as required by the Secretary.''.
            (5) Section 402F (20 U.S.C. 1070a-12) is amended by adding 
        at the end the following new subsection:
    ``(d) Expected Program Outcomes.--For the purposes of assessing an 
applicant's performance under section 402A(c)(1), and prior experience 
under section 402A(d)(3), the Secretary shall consider--
            ``(1) the rate of college enrollment of participating 
        students;
            ``(2) the provision of assistance to students served by the 
        program in completing financial aid applications and college 
        admission applications;
            ``(3) the delivery of services described in the application 
        approved by the Secretary; and
            ``(4) other such outcomes as required by the Secretary.''.
    (i) Staff Development.--Section 402G (20 U.S.C. 1070a-17) is 
amended to read as follows:

``SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.

    ``(a) Secretary's Authority.--For the purpose of improving the 
operation of the programs and projects authorized by this chapter, the 
Secretary is authorized to make grants to institutions of higher 
education and other public and private nonprofit institutions and 
organizations to provide training and technical assistance for staff 
and leadership personnel employed in, participating in, or preparing 
for employment in, such programs and projects.
    ``(b) Contents of Training Programs.--Such training shall be 
provided to assist programs and projects in--
            ``(1) achieving the expected program outcomes stated under 
        this chapter or additional outcomes identified by individual 
        programs or projects;
            ``(2) addressing any identified program weaknesses in the 
        overall development, conduct, or administration of a grant or 
        contract;
            ``(3) improving the quality of services provided to 
        eligible students; or
            ``(4) additional areas in need of program improvement as 
        identified by the Secretary or as requested by grantees in 
        order to enhance program operations and outcomes.
    ``(c) Consultation.--Grants for the purposes of this section shall 
be made only after consultation with regional and State professional 
associations of persons having special knowledge with respect to the 
needs and problems of such programs and projects.''.
    (j) Evaluations.--Section 402H (20 U.S.C. 1070a-18) is amended to 
read as follows:

``SEC. 402H. EVALUATIONS.

    ``(a) Evaluations.--
            ``(1) In general.--For the purpose of improving the 
        effectiveness of the programs and projects assisted under this 
        chapter, the Secretary shall make grants to or enter into 
        contracts with one or more organizations to--
                    ``(A) evaluate the effectiveness of the programs 
                and projects assisted under this chapter; and
                    ``(B) disseminate information on the impact of the 
                programs in increasing the education level of 
                participating students, as well as other appropriate 
                measures.
            ``(2) Issues to be evaluated.--The evaluations described in 
        paragraph (1) shall measure the effectiveness of programs under 
        this chapter in--
                    ``(A) meeting the expected program outcomes stated 
                under this chapter and all performance measures 
                identified by the Secretary;
                    ``(B) enhancing the access of low-income 
                individuals and first-generation college students to 
                postsecondary education;
                    ``(C) preparing individuals and students for 
                postsecondary education;
                    ``(D) comparing the level of education completed by 
                students who participate in the programs funded under 
                this chapter with the level of education completed by 
                students of similar backgrounds who do not participate 
                in such programs;
                    ``(E) comparing the retention rates, dropout rates, 
                graduation rates, and college admission and completion 
                rates of students who participate in the programs 
                funded under this chapter with the rates of students of 
                similar backgrounds who do not participate in such 
                programs; and
                    ``(F) such other issues as the Secretary considers 
                appropriate for inclusion in the evaluation.
            ``(3) Program methods.--Such evaluations shall also 
        investigate the effectiveness of alternative and innovative 
        methods within Federal TRIO programs of increasing access to, 
        and retention of, students in postsecondary education.
    ``(b) Results.--The Secretary shall submit to the authorizing 
committees--
            ``(1) an annual interim report on the progress and 
        preliminary results of the evaluation of each program funded 
        under this chapter no later than 2 years following the date of 
        enactment of the College Access and Opportunity Act of 2007; 
        and
            ``(2) a final report not later than 3 years following the 
        date of enactment of such Act.
    ``(c) Public Availability.--All reports and underlying data 
gathered pursuant to this section shall be made available to the public 
upon request, in a timely manner following submission of the applicable 
reports under subsection (b), except that any personally identifiable 
information on students participating in any TRIO program shall not be 
disclosed or made available to the public.''.

SEC. 404. GEARUP.

    (a) Duration of Awards.--Section 404A(b) (20 U.S.C. 1070a-21(b)) is 
amended--
            (1) in paragraph (2)(B), by striking ``Higher Education 
        Amendments of 1998'' and inserting ``College Access and 
        Opportunity Act of 2006''; and
            (2) by adding at the end thereof the following new 
        paragraph:
            ``(3) Duration.--An award made by the Secretary under this 
        chapter to an eligible entity described in paragraph (1) or (2) 
        of subsection (c) shall be for the period of 7 years.''.
    (b) Continuing Eligibility.--Section 404A (20 U.S.C. 1070a-21) is 
amended by adding at the end the following new subsection:
    ``(d) Continuing Eligibility.--An eligible entity shall not cease 
to be an eligible entity upon the expiration of any grant under this 
chapter (including a continuation award).''.
    (c) Foster Care Coordination.--Section 404B(c) (20U.S.C. 1070a-
22(c)) is amended by adding at the end the following new sentence:
            ``Each applicant for funds under the programs authorized by 
        this chapter shall identify services to foster care youth as a 
        permissible service in those programs, and ensure that such 
        youth receive supportive services, including mentoring, 
        tutoring, and other services provided by those programs.''.
    (d) Continuity of Service.--
            (1) Cohort approach.--Section 404B(g)(1)(B) (20 U.S.C. 
        1070a-22(g)(1)(B)) is amended by inserting ``and provide the 
        option of continued services through the student's first year 
        of attendance at an eligible institution of higher education'' 
        after ``grade level''.
            (2) Early intervention.--Section 404D (20 U.S.C. 1070a-24) 
        is amended--
                    (A) in subsection (a)(1)(B)--
                            (i) by striking ``and'' at the end of 
                        clause (ii);
                            (ii) by striking the period at the end of 
                        clause (iii) and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new clause:
                            ``(iv) the transition to college or post-
                        secondary education through continuity of 
                        services to support students in and through the 
                        first year of attendance at an institution of 
                        higher education.'';
                    (B) in subsection (b)(2)(A), by inserting ``and 
                students in the first year of attendance at an eligible 
                institution of higher education'' after ``grade 12''; 
                and
                    (C) in subsection (c), by inserting ``, and may 
                consider students in their first year of attendance at 
                an eligible institution,'' after ``grade 12''.
    (e) Coordination.--Section 404C(a)(2) (20 U.S.C. 1070a-23(a)(2)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) describe activities for coordinating, 
                complementing, and enhancing services under this 
                chapter provided by other eligible entities in the 
                State; and''.
    (f) Education and Counseling Services.--Section 404D(b)(2)(A)(ii) 
(20 U.S.C. 1070a-24(b)(2)(A)(ii)) is amended by striking ``and academic 
counseling'' and inserting ``academic counseling, and financial 
literacy and economic literacy education or counseling''.
    (g) Uses of Funds.--
            (1) Permissible activities.--Section 404D(b)(2) is further 
        amended by adding at the end of the following new 
        subparagraphs:
                    ``(F) Fostering and improving parent and family 
                involvement in elementary and secondary education by 
                promoting the advantages of a college education, and 
                emphasizing academic admission requirements and the 
                need to take college preparation courses, through 
                parent engagement and leadership activities.
                    ``(G) Disseminating information that promotes the 
                importance of higher education, explains college 
                preparation and admission requirements, and raises 
                awareness of the resources and services provided by the 
                eligible entities described in section 404A(c) to 
                eligible students, their families, and communities.''.
            (2) Additional permissible activities for states.--Section 
        404D(b) is further amended by adding at the end the following 
        new paragraph:
            ``(3) Additional permissible activities for states.--In 
        meeting the requirements of subsection (a), an eligible entity 
        described in section 404A(c) (1) receiving funds under this 
        chapter may, in addition to the activities authorized by 
        paragraph (2), use funds to providing technical assistance to--
                    ``(A) middle schools or secondary schools that are 
                located within the State; or
                    ``(B) partnerships described in section 404A(c)(2) 
                that are located within the State.''.
    (h) Homeless and Unaccompanied Youth.--Section 404D is further 
amended by adding at the end the following new subsection:
    ``(e) Homeless and Unaccompanied Youth.--Notwithstanding any other 
provision of this chapter, individuals who are homeless or 
unaccompanied youth as defined in section 725 of the McKinney-Vento 
Homeless Assistance Act shall be eligible to participate in programs 
under this section.''.
    (i) Reauthorization.--Section 404H (20 U.S.C. 1070a-28) is amended 
by striking ``$200,000,000 for fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``$306,500,000 for fiscal year 2008 and such sums as may be necessary 
for each of the 5 succeeding fiscal years''.

SEC. 405. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) Authorization of Appropriations.--Section 413A(b)(1) (20 U.S.C. 
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 1999 
and such sums as may be necessary for the 4 succeeding fiscal years'' 
and inserting ``$779,000,000 for fiscal year 2008 and such sums as may 
be necessary for the 5 succeeding fiscal years''.
    (b) Priority of Awards.--Paragraph (2) of section 413C(c) (20 
U.S.C. 1070b-2(c)(2)) is amended to read as follows:
    ``(2) In carrying out paragraph (1) of this subsection, each 
institution of higher education shall, in the agreement made under 
section 487, assure that the selection procedures--
            ``(A) will give a priority for supplemental grants under 
        this subpart to students who receive Pell Grants and meet the 
        requirements of section 484; and
            ``(B) will award no more than 10 percent of each 
        institution's allocation received under section 413D to 
        students who did not receive Federal Pell Grants in a prior 
        year.''.
    (c) Eligibility for Additional Allocations.--Section 413D(a)(4) (20 
U.S.C. 1070b-3(a)(4)) is amended by striking subparagraph (B) and 
inserting the following:
    ``(B) An otherwise eligible institution may receive a portion of 
the allocation described in subparagraph (A) if--
            ``(i) not less than 10 percent of the undergraduate, 
        degree- or certificate-seeking students attending the 
        institution receive Federal Pell Grants; and
            ``(ii)(I) in the case of an institution that offers 
        programs of at least 4 years in duration, if its graduation 
        rate for Federal Pell Grant recipients attending the 
        institution and graduating within the period of time equal to 
        normal duration of the longest undergraduate program offered by 
        the institution, as measured from the first day of their 
        enrollment, exceeds the median rate for the class of 
        institution (as defined in section 131(f)(7)(C)); or
            ``(II) in the case of an institution that offers programs 
        of at least 2, but less than 4, years in duration, if its rate 
        for Federal Pell Grant recipients attending the institution and 
        graduating or transferring to an institution that offers 
        programs of at least 4 years in duration within the period of 
        time equal to the normal duration of the program offered, as 
        measured from the first day of their enrollment, exceeds the 
        median rate for the class of institution (as defined in section 
        131(f)(7)(C)).''.
    (d) Books and Supplies.--Section 413D(c)(3)(D) (20 U.S.C. 1070-
3(c)(3)(D)) is amended by striking ``$450'' and inserting ``$600''.

SEC. 406. LEAP.

    Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 407. HEP/CAMP PROGRAM.

    Section 418A (20 U.S.C. 1070d-2) is amended--
            (1) in subsection (b)(1)(B)(i), by inserting ``, or whose 
        spouse'' after ``themselves'';
            (2) in subsection (b)(3)(B), by inserting ``, including 
        preparation for college entrance exams'' after ``program'';
            (3) in subsection (b)(8), by inserting ``, including child 
        care and transportation'' after ``supportive services'';
            (4) by striking ``and'' at the end of subsection (b)(7), by 
        striking the period at the end of subsection (b)(8) and 
        inserting ``; and'', and by adding at the end of subsection (b) 
        the following new paragraph:
            ``(9) follow-up activity and reporting requirements, except 
        that not more than 2 percent of the funds provided under this 
        section may be used for such purposes.'';
            (5) in subsection (c)(1)(A), by inserting ``, or whose 
        spouse'' after ``themselves'';
            (6) in subsection (c)(1)(B), by striking clause (i) and 
        inserting the following:
                    ``(i) personal, academic, career, and economic 
                education or personal finance counseling as an ongoing 
                part of the program;'';
            (7) in subsection (c)(2)(B), by inserting ``(including 
        mentoring and guidance of such students)'' after ``services'';
            (8) in subsection (c)(2), by striking ``and'' at the end of 
        subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``; and'', and by adding at the 
        end of subsection (c)(2) the following new subparagraph:
            ``(C) for students in any program that does not award a 
        bachelor's degree, encouraging the transfer to, and persistence 
        in, such a program, and monitoring the rate of such transfer, 
        persistence, and completion.'';
            (9) in subsection (e), by striking ``section 402A(c)(1)'' 
        and inserting ``section 402A(c)(2)'';
            (10) in subsection (h)--
                    (A) in paragraph (1), by striking ``$15,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$24,000,000 for fiscal year 2008 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''; and
                    (B) in paragraph (2), by striking ``$5,000,000 for 
                fiscal year 1999 and such sums as may be necessary for 
                each of the 4 succeeding fiscal years'' and inserting 
                ``$16,000,000 for fiscal year 2008 and such sums as may 
                be necessary for each of the 5 succeeding fiscal 
                years''; and
            (11) by redesignating subsection (h) as subsections (i) and 
        inserting before such subsection the following new subsection:
    ``(h) Technical Assistance.--The Secretary may reserve up to one-
half of one percent of funds appropriated under subsection (i) for 
technical assistance activities for program improvement, including data 
collection and evaluation.''.

SEC. 408. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

    Subpart 6 of part A of title IV is amended to read as follows:

      ``Subpart 6--Robert C. Byrd American Competitiveness Program

``SEC. 419A. ROBERT C. BYRD MATHEMATICS AND SCIENCE HONORS SCHOLARSHIP 
              PROGRAM.

    ``(a) Purpose.--The purpose of this section is to award 
scholarships to students who are enrolled in studies leading to 
baccalaureate and advanced degrees in physical, life, or computer 
sciences, mathematics, and engineering.
    ``(b) Definitions.--As used in this section--
            ``(1) the term `computer science' means the branch of 
        knowledge or study of computers, including such fields of 
        knowledge or study as computer hardware, computer software, 
        computer engineering, information systems, and robotics;
            ``(2) the term `eligible student' means a student who--
                    ``(A) is a citizen of the United States;
                    ``(B) is selected by the managing agent to receive 
                a scholarship;
                    ``(C) is enrolled full-time in an institution of 
                higher education, other than a United States service 
                academy; and
                    ``(D) has shown a commitment to and is pursuing a 
                major in studies leading to a baccalaureate, masters, 
                or doctoral degree (or a combination thereof) in 
                physical, life, or computer sciences, mathematics, or 
                engineering;
            ``(3) the term `engineering' means the science by which the 
        properties of matter and the sources of energy in nature are 
        made useful to humanity in structures, machines, and products, 
        as in the construction of engines, bridges, buildings, mines, 
        and chemical plants, including such fields of knowledge or 
        study as aeronautical engineering, chemical engineering, civil 
        engineering, electrical engineering, industrial engineering, 
        materials engineering, manufacturing engineering, and 
        mechanical engineering;
            ``(4) the term `life sciences' means the branch of 
        knowledge or study of living things, including such fields of 
        knowledge or study as biology, biochemistry, biophysics, 
        microbiology, genetics, physiology, botany, zoology, ecology, 
        and behavioral biology, except that the term does not encompass 
        social psychology or the health professions;
            ``(5) the term `managing agent' means an entity to which an 
        award is made under subsection (c) to manage a program of 
        Mathematics and Science Honors Scholarships;
            ``(6) the term `mathematics' means the branch of knowledge 
        or study of numbers and the systematic treatment of magnitude, 
        relationships between figures and forms, and relations between 
        quantities expressed symbolically, including such fields of 
        knowledge or study as statistics, applied mathematics, and 
        operations research; and
            ``(7) the term `physical sciences' means the branch of 
        knowledge or study of the material universe, including such 
        fields of knowledge or study as astronomy, atmospheric 
        sciences, chemistry, earth sciences, ocean sciences, physics, 
        and planetary sciences.
    ``(c) Award.--
            ``(1)(A) From funds authorized under section 419F to carry 
        out this section, the Secretary is authorized, through a grant 
        or cooperative agreement, to make an award to a private, non-
        profit organization, other than an institution of higher 
        education or system of institutions of higher education, to 
        manage, through a public and private partnership, a program of 
        Mathematics and Science Honors Scholarships under this section.
            ``(B) The award under subparagraph (A) shall be for a five-
        year period.
            ``(2)(A) One hundred percent of the funds awarded under 
        paragraph (1)(A) for any fiscal year shall be obligated and 
        expended solely on scholarships to eligible students.
            ``(B) No Federal funds shall be used to provide more than 
        50 percent of the cost of any scholarship to an eligible 
        student.
            ``(C) The maximum scholarship award shall be the difference 
        between an eligible student's cost of attendance minus any non-
        loan based aid such student receives.
            ``(3)(A) The secretary may establish--
                    ``(i) eligibility criteria for applicants for 
                managing agent, including criteria regarding financial 
                and administrative capability; and
                    ``(ii) operational standards for the managing 
                agent, including management and performance 
                requirements, such as audit, recordkeeping, record 
                retention, and reporting procedures and requirements.
            ``(B) The Secretary, as necessary, may review and revise 
        any criteria, standards, and rules established under this 
        paragraph and, through the agreement with the managing agent, 
        see that any revisions are implemented.
            ``(4) If the managing agent fails to meet the requirements 
        of this section the Secretary may terminate the award to the 
        managing agent.
            ``(5) The Secretary shall conduct outreach efforts to help 
        raise awareness of the Mathematics and Science Honors 
        Scholarships.
    ``(d) Duties of the Managing Agent.--The managing agent shall--
            ``(1) develop criteria to award Mathematics and Science 
        Honors Scholarships based on established measurements available 
        to secondary students who wish to pursue degrees in physical, 
        life, or computer sciences, mathematics, and engineering;
            ``(2) establish a Mathematics and Science Honors 
        Scholarship Fund in a separate, named account that clearly 
        discloses the amount of Federal and non-Federal funds deposited 
        in the account and used for scholarships under this section;
            ``(3) solicit funds for scholarships and for the 
        administration of the program from non-Federal sources;
            ``(4) solicit applicants for scholarships;
            ``(5) from the amounts in the Fund, award scholarships to 
        eligible students and transfer such funds to the institutions 
        of higher education that they attend;
            ``(6) annually submit to the Secretary a financial audit 
        and a report on the progress of the program, and such other 
        documents as the Secretary may require to determine the 
        effective management of the program; and
            ``(7) shall not develop a criteria that discriminates 
        against a student based on the type of program in which the 
        student completed his or her secondary education.
    ``(e) Applications.--
            ``(1) Any eligible entity that desires to be the managing 
        agent under this section shall submit an application to the 
        Secretary, in such form and containing such information, as the 
        Secretary may require.
            ``(2) Each application shall include a description of--
                    ``(A) how the applicant meets or will meet 
                requirements established under subsections (c)(3)(A) 
                and (d);
                    ``(B) how the applicant will solicit funds for 
                scholarships and for the administration of the program 
                from non-Federal sources;
                    ``(C) how the applicant will provide nationwide 
                outreach to inform students about the program and to 
                encourage students to pursue degrees in physical, life, 
                or computer sciences, mathematics, and engineering;
                    ``(D) how the applicant will solicit applications 
                for scholarships, including how the applicant will 
                balance efforts in urban and rural areas;
                    ``(E) the selection criteria based on established 
                measurements available to secondary students the 
                applicant will use to award scholarships and to renew 
                those awards;
                    ``(F) how the applicant will inform the institution 
                of higher education chosen by the recipient of the name 
                and scholarship amount of the recipient;
                    ``(G) what procedures and assurances the applicant 
                and the institution of higher education that the 
                recipient attends will use to verify student 
                eligibility, attendance, degree progress, and academic 
                performance and to deliver and account for payments to 
                such institution;
                    ``(H) the management (including audit and 
                accounting) procedures the applicant will use for the 
                program;
                    ``(I) the human, financial, and other resources 
                that the applicant will need and use to manage the 
                program;
                    ``(J) how the applicant will evaluate the program 
                and report to the Secretary annually; and
                    ``(K) a description of how the entity will 
                coordinate with, complement, and build on similar 
                public and private mathematics and science programs.
    ``(f) Scholarship Recipients.--
            ``(1) A student receiving a scholarship under this section 
        shall be known as a `Byrd Mathematics and Science Honors 
        Scholar'.
            ``(2) Any student desiring to receive a scholarship under 
        this section shall submit an application to the managing agent 
        in such form, and containing such information, as the managing 
        agent may require.
            ``(3) Any student that receives a scholarship under this 
        section shall enter into an agreement with the managing agent 
        to complete 5 consecutive years of service to begin no later 
        than 12 months following completion of the final degree in a 
        position related to the field in which the student obtained the 
        degree.
            ``(4) If any student that receives a scholarship under this 
        section fails to earn at least a baccalaureate degree in 
        physical, life, or computer sciences, mathematics, or 
        engineering as defined under this section, the student shall 
        repay to the managing agent the amount of any financial 
        assistance paid to such student.
            ``(5) If any student that receives a scholarship under this 
        section fails to meet the requirements of paragraph (3), the 
        student shall repay to the managing agent the amount of any 
        financial assistance paid to such student.
            ``(6)(A) Scholarships shall be awarded for only one 
        academic year of study at a time.
            ``(B)(i) A scholarship shall be renewable on an annual 
        basis for the established length of the academic program if the 
        student awarded the scholarship remains eligible.
            ``(ii) The managing agent may condition renewal of a 
        scholarship on measures of academic progress and achievement, 
        with the approval of the Secretary.
            ``(C)(i) If a student fails to either remain eligible or 
        meet established measures of academic progress and achievement, 
        the managing agent shall instruct the student's institution of 
        higher education to suspend payment of the student's 
        scholarship.
            ``(ii) A suspension of payment shall remain in effect until 
        the student is able to demonstrate to the satisfaction of the 
        managing agent that he or she is again eligible and meets the 
        established measures of academic progress and achievement.
            ``(iii) A student's eligibility for a scholarship shall be 
        terminated if a suspension period exceeds 12 months.
            ``(D)(i)(I) A student awarded a scholarship may, in a 
        manner and under the terms established by, and with the 
        approval of, the managing agent, postpone or interrupt his or 
        her enrollment at an institution of higher education for up to 
        12 months.
            ``(II) Such a postponement or interruption shall not be 
        considered a suspension for purposes of subparagraph (C).
            ``(ii) Neither a student nor the student's institution of 
        higher education shall receive the student's scholarship 
        payments during the period of postponement or interruption, but 
        such payments shall resume upon enrollment or reenrollment.
            ``(iii) In exceptional circumstances, such as serious 
        injury or illness or the necessity to care for family members, 
        the student's postponement or interruption may, upon 
        notification and approval of the managing agent, be extended 
        beyond the 12 month period described in clause (i)(I).
    ``(g) Responsibilities of Institution of Higher Education.--
            ``(1) The managing agent shall require any institution of 
        higher education that enrolls a student who receives a 
        scholarship under this section to annually provide an 
        assurance, prior to making any payment, that the student--
                    ``(A) is eligible in accordance with subsection 
                (b)(2); and
                    ``(B) has provided the institution with a written 
                commitment to attend, or is attending, classes and is 
                satisfactorily meeting the institution's academic 
                criteria for enrollment in its program of study.
            ``(2)(A) The managing agent shall provide the institution 
        of higher education with payments from the Fund for selected 
        recipients in at least two installments.
            ``(B) An institution of higher education shall return 
        prorated amounts of any scholarship payment to the managing 
        agent, who shall deposit it in to the Fund, if a recipient 
        declines a scholarship, does not attend courses, transfers to 
        another institution of higher education, or becomes ineligible 
        for a scholarship.

``SEC. 419B. MATHEMATICS AND SCIENCE INCENTIVE PROGRAM.

    ``(a) Program.--
            ``(1) In general.--The Secretary is authorized to carry out 
        a program of assuming the obligation to pay, pursuant to the 
        provisions of this section, the interest on a loan made, 
        insured, or guaranteed under part B or D of this title.
            ``(2) Eligibility.--The Secretary may assume interest 
        payments under paragraph (1) only for a borrower who--
                    ``(A) has submitted an application in compliance 
                with subsection (d);
                    ``(B) obtained one or more loans described in 
                paragraph (1) as an undergraduate student;
                    ``(C) is a new borrower (within the meaning of 
                section 103(7) of this Act) on or after the date of 
                enactment of the College Access and Opportunity Act of 
                2007;
                    ``(D) is a highly qualified teacher (as defined in 
                section 9101 of the Elementary and Secondary Education 
                Act of 1965) of science, technology, engineering or 
                mathematics at an elementary or secondary school in a 
                high need local educational agency, or is a 
                mathematics, science, or engineering professional; and
                    ``(E) enters into an agreement with the Secretary 
                to complete 5 consecutive years of service in a 
                position described in subparagraph (D), starting on the 
                date of the agreement.
            ``(3) Prior interest limitations.--The Secretary shall not 
        make any payments for interest that--
                    ``(A) accrues prior to the beginning of the 
                repayment period on a loan in the case of a loan made 
                under section 428H or a Federal Direct Unsubsidized 
                Stafford Loan; or
                    ``(B) has accrued prior to the signing of an 
                agreement under paragraph (2)(E).
            ``(4) Initial selection.--In selecting participants for the 
        program under this section, the Secretary--
                    ``(A) shall choose among eligible applicants on the 
                basis of--
                            ``(i) the national security, homeland 
                        security, and economic security needs of the 
                        United States, as determined by the Secretary, 
                        in consultation with other Federal agencies, 
                        including the Departments of Labor, Defense, 
                        Homeland Security, Commerce, and Energy, the 
                        Central Intelligence Agency, and the National 
                        Science Foundation; and
                            ``(ii) the academic record or job 
                        performance of the applicant; and
                    ``(B) may choose among eligible applicants on the 
                basis of--
                            ``(i) the likelihood of the applicant to 
                        complete the 5-year service obligation;
                            ``(ii) the likelihood of the applicant to 
                        remain in science, mathematics, or engineering 
                        after the completion of the service 
                        requirement; or
                            ``(iii) other relevant criteria determined 
                        by the Secretary.
            ``(5) Availability subject to appropriations.--Loan 
        interest payments under this section shall be subject to the 
        availability of appropriations. If the amount appropriated for 
        any fiscal year is not sufficient to provide interest payments 
        on behalf of all qualified applicants, the Secretary shall give 
        priority to those individuals on whose behalf interest payments 
        were made during the preceding fiscal year.
            ``(6) Regulations.--The Secretary is authorized to 
        prescribe such regulations as may be necessary to carry out the 
        provisions of this section.
    ``(b) Duration and Amount of Interest Payments.--The period during 
which the Secretary shall pay interest on behalf of a student borrower 
who is selected under subsection (a) is the period that begins on the 
effective date of the agreement under subsection (a)(2)(E), continues 
after successful completion of the service obligation, and ends on the 
earlier of--
            ``(1) the completion of the repayment period of the loan;
            ``(2) payment by the Secretary of a total of $5,000 on 
        behalf of the borrower;
            ``(3) if the borrower ceases to fulfill the service 
        obligation under such agreement prior to the end of the 5-year 
        period, as soon as the borrower is determined to have ceased to 
        fulfill such obligation in accordance with regulations of the 
        Secretary; or
            ``(4) 6 months after the end of any calendar year in which 
        the borrower's gross income equals or exceeds 4 times the 
        national per capita disposable personal income (current 
        dollars) for such calendar year, as determined on the basis of 
        the National Income and Product Accounts Tables of the Bureau 
        of Economic Analysis of the Department of Commerce, as 
        determined in accordance with regulations prescribed by the 
        Secretary.
    ``(c) Repayment to Eligible Lenders.--Subject to the regulations 
prescribed by the Secretary by regulation under subsection (a)(6), the 
Secretary shall pay to each eligible lender or holder for each payment 
period the amount of the interest that accrues on a loan of a student 
borrower who is selected under subsection (a).
    ``(d) Application for Repayment.--
            ``(1) In general.--Each eligible individual desiring loan 
        interest payment under this section shall submit a complete and 
        accurate application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            ``(2) Failure to complete service agreement.--Such 
        application shall contain an agreement by the individual that, 
        if the individual fails to complete the 5 consecutive years of 
        service required by subsection (a)(2)(E), the individual agrees 
        to repay the Secretary the amount of any interest paid by the 
        Secretary on behalf of the individual.
    ``(e) Treatment of Consolidation Loans.--A consolidation loan made 
under section 428C of this Act, or a Federal Direct Consolidation Loan 
made under part D of title IV of this Act, may be a qualified loan for 
the purpose of this section only to the extent that such loan amount 
was used by a borrower who otherwise meets the requirements of this 
section to repay--
            ``(1) a loan made under section 428 or 428H of this Act; or
            ``(2) a Federal Direct Stafford Loan, or a Federal Direct 
        Unsubsidized Stafford Loan, made under part D of title IV of 
        this Act.
    ``(f) Prevention of Double Benefits.--No borrower may, for the same 
service, receive a benefit under both this section and--
            ``(1) any loan forgiveness program under title IV of this 
        Act; or
            ``(2) subtitle D of title I of the National and Community 
        Service Act of 1990 (42 U.S.C. 12601 et seq.).
    ``(g) Definitions.--As used in this section--
            ``(1) the term `high need local educational agency' has the 
        same meaning given such term in section 201(b)(4); and
            ``(2) the term `mathematics, science, or engineering 
        professional' means a person who--
                    ``(A) holds a baccalaureate, masters, or doctoral 
                degree (or a combination thereof) in science, 
                mathematics, or engineering; and
                    ``(B) works in a field the Secretary determines is 
                closely related to that degree, which shall include 
                working as a professor at a two- or four-year 
                institution of higher education.

``SEC. 419C. ADJUNCT TEACHER CORPS.

    ``(a) Purpose.--It is the purpose of this section to create 
opportunities for professionals and other individuals with subject-
matter expertise to teach secondary school courses in mathematics, 
science, and critical foreign languages, on an adjunct basis.
    ``(b) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities to recruit and place well-qualified 
individuals to serve as adjunct teachers in secondary school 
mathematics, science, and critical foreign language courses.
    ``(c) Eligible Entity.--For the purpose of this section, an 
eligible entity is--
            ``(1) a local educational agency;
            ``(2) a public or private educational organization (which 
        may be a State educational agency); or
            ``(3) a partnership consisting of a local educational 
        agency and a public or private educational organization.
    ``(d) Duration of Grants.--The Secretary may award grants under 
this section for a period of not more than five years.
    ``(e) Priorities.--In awarding grants under this section, the 
Secretary shall give priority to eligible entities that propose to--
            ``(1) serve local educational agencies that have a large 
        number or percentage of students performing below grade level 
        in mathematics, science, and critical foreign language courses;
            ``(2) serve local educational agencies that have a large 
        number or percentage of students from families with incomes 
        below the poverty line; and
            ``(3) recruit adjunct faculty to serve in schools that have 
        an insufficient number of teachers in mathematics, science, and 
        critical foreign languages.
    ``(f) Applications.--
            ``(1) Application required.--To be considered for a grant 
        under this section, an eligible entity shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may reasonably 
        require.
            ``(2) Contents.--The Application shall, at a minimum, 
        include a description of--
                    ``(A) the need for, and expected benefits of using, 
                adjunct teachers in the participating schools, which 
                may include information on the difficulty participating 
                schools face in recruiting qualified faculty in 
                mathematics, science, and critical foreign language 
                courses;
                    ``(B) measurable objectives for the project, 
                including the number of adjunct teachers the eligible 
                entity intends to place in classrooms and gains in 
                academic achievement intended to be achieved;
                    ``(C) how the eligible entity will recruit 
                qualified individuals and public or private educational 
                organizations to participate in the program;
                    ``(D) how the eligible entity will use funds 
                received under this section, including how the eligible 
                entity will evaluate the success of its program;
                    ``(E) how the eligible entity will support and 
                continue the program after the grant has expired, 
                including how it will seek support from other sources, 
                such as State and local government, foundations, and 
                the private sector;
                    ``(F) how the eligible entity will address legal, 
                contractual, or administrative barriers to employment 
                of adjunct faculty in the participating State or local 
                educational agency or agencies; and
                    ``(G) how the eligible entity will provide pre-
                service training to selected adjunct teachers, 
                including the on-going mentoring of such teachers by 
                highly qualified teachers.
    ``(g) Uses of Funds.--An eligible entity that receives a grant 
under this section is authorized to use grant funds to carry out one or 
more of the following activities:
            ``(1) To develop the capacity of the local educational 
        agency or the State educational agency, or both, to identify, 
        recruit, and train qualified individuals outside of the 
        elementary and secondary education system (including 
        individuals in business and government, and individuals who 
        would participate through distance-learning arrangements) to 
        become adjunct teachers in mathematics, science, and critical 
        foreign language courses.
            ``(2) To provide signing bonuses and other financial 
        incentives to encourage individuals to become adjunct teachers 
        in mathematics, science, and critical foreign language courses.
            ``(3) To provide pre-service training to adjunct teachers, 
        including the on-going mentoring of such teachers by highly 
        qualified teachers.
            ``(4) To reimburse outside entities for the costs 
        associated with allowing an employee to serve as an adjunct 
        teacher, except that these costs shall not exceed the total 
        cost of salary and benefits for teachers with comparable 
        experience or expertise in the local educational agency.
    ``(h) Matching Requirement.--Each eligible entity that receives a 
grant under this section shall provide, from non-Federal sources, an 
amount equal to 100 percent of the amount of the grant (in cash or in 
kind) to carry out the activities supported by the grant.
    ``(i) Program Performance.--Each eligible entity receiving a grant 
under this section shall prepare and submit to the Secretary a final 
report on the results of the project that contains such information as 
the Secretary may require including improvements in academic 
achievement as a result of instruction from adjunct teachers.
    ``(j) Evaluation.--The Secretary shall evaluate the activities 
funded under this section including the impact of the program on 
student academic achievement and shall report the results of the 
evaluation to the appropriate Committees of Congress.
    ``(k) Definitions.--As used in this section:
            ``(1) Adjunct teacher.--The term `adjunct teacher' means a 
        teacher who--
                    ``(A) possesses, at a minimum, a bachelor's degree;
                    ``(B) has demonstrated expertise in mathematics, 
                science, or a critical foreign language by having met 
                the requirements of section 9101(23)(B)(ii) of the 
                Elementary and Secondary Education Act of 1965; and
                    ``(C) is not required to meet the other 
                requirements of section 9101(23) of the Elementary and 
                Secondary Education Act of 1965.
            ``(2) Critical foreign language.--The term `critical 
        foreign language' has the same meaning given such term under 
        section 428K(h).

``SEC. 419D. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $41,000,000 for fiscal 
year 2008 and such sums as may be necessary for each of the 5 
succeeding fiscal years to carry out this subpart.''.

SEC. 409. CHILD CARE ACCESS.

    Section 419N(g) (20 U.S.C. 1070e(g)) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 410. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

    (a) Repeal.--Subpart 8 of part A of title IV (20 U.S.C. 1070f--
1070f-6) is repealed.
    (b) Conforming Amendment.--Section 400(b) (20 U.S.C. 1070(b)) is 
amended by striking ``through 8'' and inserting ``through 7''.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. PLUS LOAN INTEREST RATES.

    Paragraph (2) of section 427A(l) (20 U.S.C. 1077a(l)(2)) is amended 
to read as follows:
            ``(2) PLUS loans.--Notwithstanding subsection (h), with 
        respect to any loan under section 428B, the applicable rate of 
        interest--
                    ``(A) shall be 8.5 percent on the unpaid principal 
                balance of any such loan for which the first 
                disbursement is made on or after July 1, 2006, and 
                before July 1, 2008; and
                    ``(B) shall be 7.9 percent on the unpaid principal 
                balance of any such loan for which the first 
                disbursement is made on or after July 1, 2008.''.

SEC. 422. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

    Section 428K (20 U.S.C. 1078-11) is amended to read as follows:

``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to encourage highly trained individuals to enter and 
        continue in service in areas of national need; and
            ``(2) to reduce the burden of student debt for Americans 
        who dedicate their careers to service in areas of national 
        need.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to carry out 
        a program of assuming the obligation to repay, subject to 
        paragraphs (2) of subsection (c) and subsection (d), a 
        qualified loan amount for a loan made, insured, or guaranteed 
        under this part or part D (other than loans made under section 
        428B and 428C and comparable loans made under part D), for any 
        new borrower after the date of enactment of the College Access 
        and Opportunity Act of 2007, who--
                    ``(A) has been employed full-time for at least 5 
                consecutive complete school, academic, or calendar 
                years, as appropriate, in an area of national need 
                described in subsection (c); and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Award basis.--Loan repayment under this section shall 
        be on a first-come, first-served basis on behalf of borrowers 
        employed in an area of national need described in subsection 
        (c) and subject to the availability of appropriations.
            ``(3) Regulations.--The Secretary is authorized to issue 
        such regulations as may be necessary to carry out the 
        provisions of this section.
    ``(c) Areas of National Need.--
            ``(1) Statutory categories.--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 and is 
        any of the following:
                    ``(A) Early childhood educators.--An individual who 
                is employed as an early childhood educator in an 
                eligible preschool program or child care facility in a 
                low-income community, and who is involved directly in 
                the care, development and education of infants, 
                toddlers, or young children through age five.
                    ``(B) Nurses.--An individual who is employed--
                            ``(i) as a nurse in a clinical setting; or
                            ``(ii) as a member of the nursing faculty 
                        at an accredited school of nursing (as those 
                        terms are defined in section 801 of the Public 
                        Health Service Act (42 U.S.C. 296)).
                    ``(C) Foreign language specialists.--An individual 
                who has obtained a baccalaureate degree in a critical 
                foreign language and is employed--
                            ``(i) in an elementary or secondary school 
                        as a highly qualified teacher (as such term is 
                        defined in section 9101 of the Elementary and 
                        Secondary Education Act of 1965) of a critical 
                        foreign language; or
                            ``(ii) in an agency of the United States 
                        Government in a position that regularly 
                        requires the use of such critical foreign 
                        language.
                    ``(D) Speech-language pathologists.--An individual 
                who is a speech-language pathologist, who is employed 
                in an eligible preschool program or an elementary or 
                secondary school, and who has, at a minimum, a graduate 
                degree in speech-language pathology, or communication 
                sciences and disorders.
                    ``(E) Medical specialists.--An individual who--
                            ``(i) has received his or her degree from 
                        an accredited medical school (as accredited by 
                        the Liaison Committee on Medical Education or 
                        as defined by this title IV); and
                            ``(ii)(I) has been accepted to, or 
                        currently participates in, a graduate medical 
                        education training program or fellowship (or 
                        both) to provide health care services (as 
                        recognized by the Accreditation Council for 
                        Graduate Medical Education); or
                            ``(II) has been accepted into, or currently 
                        participates in, a graduate medical education 
                        program or fellowship (or both) to provide 
                        health care services that--
                                    ``(aa) requires more than 5 years 
                                of total graduate medical training; and
                                    ``(bb) has fewer United States 
                                medical school graduate applicants than 
                                the total number of training and 
                                fellowship positions available in the 
                                programs specified in subclause (I) of 
                                this clause.
                    ``(F) Additional areas of national need.--An 
                individual who is employed in an area designated by the 
                Secretary under paragraph (2) and has completed a 
                baccalaureate or advanced degree related to such area.
            ``(2) Designation of areas of national need.--After 
        consultation with appropriate Federal, State, and community-
        based agencies and organizations, the Secretary shall designate 
        areas of national need. In making such designations, the 
        Secretary shall take into account the extent to which--
                    ``(A) the national interest in the area is 
                compelling;
                    ``(B) the area suffers from a critical lack of 
                qualified personnel; and
                    ``(C) other Federal programs support the area 
                concerned.
    ``(d) Qualified Loan Amount.--Subject to subsection (b)(2), the 
Secretary shall repay not more than $5,000 in the aggregate of the loan 
obligation on a loan made under section 428 or 428H that is outstanding 
after the completion of the fifth consecutive school, academic, or 
calendar year, as appropriate, described in subsection (b)(1).
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize the refunding of any repayment of a loan made under section 
428 or 428H.
    ``(f) Ineligibility of National Service Award Recipients.--No 
student borrower may, for the same service, receive a benefit under 
both this section and subtitle D of title I of the National and 
Community Service Act of 1990 (42 U.S.C. 12601 et seq.).
    ``(g) Ineligibility for Double Benefits.--No borrower may receive a 
reduction of loan obligations under both this section and section 428J 
or 460.
    ``(h) Definitions.--In this section
            ``(1) Child care facility.--The term `child care facility' 
        means a facility, including a home, that--
                    ``(A) provides for the education and care of 
                children from birth through age 5; and
                    ``(B) meets any applicable State or local 
                government licensing, certification, approval, or 
                registration requirements.
            ``(2) Critical foreign language.--The term `critical 
        foreign language' includes the languages of Arabic, Korean, 
        Japanese, Chinese, Pashto, Persian-Farsi, Serbian-Croatian, 
        Russian, Portuguese, and any other language identified by the 
        Secretary of Education, in consultation with the Defense 
        Language Institute, the Foreign Service Institute, and the 
        National Security Education Program, as a critical foreign 
        language need.
            ``(3) Early childhood educator.--The term `early childhood 
        educator' means an early childhood educator employed in an 
        eligible preschool 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.
            ``(4) Eligible preschool program.--The term `eligible 
        preschool program' means a program that provides for the care, 
        development, and education of infants, toddlers, or young 
        children through age 5, meets any applicable State or local 
        government licensing, certification, approval, and registration 
        requirements, and is operated by--
                    ``(A) a public or private school that may be 
                supported, sponsored, supervised, or administered by a 
                local educational agency;
                    ``(B) a Head Start agency serving as a grantee 
                designated under the Head Start Act (42 U.S.C. 9831 et 
                seq.);
                    ``(C) a nonprofit or community based organization; 
                or
                    ``(D) a child care program, including a home.
            ``(5) Low-income community.--In this subsection, the term 
        `low-income community' means a community in which 70 percent of 
        households earn less than 85 percent of the State median 
        household income.
            ``(6) Nurse.--The term `nurse' means a nurse who meets all 
        of the following:
                    ``(A) The nurse graduated from an accredited school 
                of nursing (as those terms are defined in section 801 
                of the Public Health Service Act (42 U.S.C. 296)).
                    ``(B) The nurse holds a valid and unrestricted 
                license to practice nursing in the State in which the 
                nurse practices in a clinical setting or from an 
                accredited school of nursing (as those terms are 
                defined in section 801 of the Public Health Service Act 
                (42 U.S.C. 296)).
                    ``(C) The nurse holds one or more of the following:
                            ``(i) A graduate degree in nursing, or an 
                        equivalent degree.
                            ``(ii) A nursing degree from a collegiate 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
                            ``(iii) A nursing degree from an associate 
                        degree school of nursing (as defined in section 
                        801 of the Public Health Service Act (42 U.S.C. 
                        296)).
                            ``(iv) A nursing degree from a diploma 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
            ``(7) Speech-language pathologist.--The term `speech-
        language pathologist' means a speech-language pathologist who 
        meets all of the following:
                    ``(A) the speech-language pathologist has received, 
                at a minimum, a graduate degree in speech-language 
                pathology or communication sciences and disorders from 
                an institution of higher education; and
                    ``(B) the speech-language pathologist meets or 
                exceeds the qualifications as defined in section 
                1861(ll) of the Social Security Act (42 U.S.C. 1395x).
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2008 and such sums as may be necessary for each of the 
5 succeeding fiscal years.''.

SEC. 423. ADDITIONAL ADMINISTRATIVE PROVISIONS.

    (a) Repayment Plans.--Section 428(b)(9)(A) (20 U.S.C. 
1078(b)(9)(A)) is amended by inserting before the semicolon at the end 
of clause (ii) the following: ``, and the Secretary may not restrict 
the proportions or ratios by which such payments may be graduated with 
the informed agreement of the borrower''.
    (b) Additional Clarification on Inducements, Payments, Mailings, 
and Advertising by Guaranty Agencies.--Section 428(b) (20 U.S.C. 
1078(b)) is amended by striking paragraph (3) and inserting the 
following:
            ``(3) Restrictions on inducements, payments, mailings, and 
        advertising.--A guaranty agency shall not--
                    ``(A) offer, directly or indirectly, premiums, 
                payments, stock or other securities, prizes, travel, 
                entertainment expenses, tuition repayment, or other 
                inducements to--
                            ``(i) any institution of higher education 
                        or the employees of an institution of higher 
                        education in order to secure applicants for 
                        loans made under this part; or
                            ``(ii) any lender, or any agent, employee, 
                        or independent contractor of any lender or 
                        guaranty agency, in order to administer or 
                        market loans made under this part (other than a 
                        loan made under section 428H or a loan made as 
                        part of the guaranty agency's lender-of-last-
                        resort program pursuant to section 439(q)) for 
                        the purpose of securing the designation of the 
                        guaranty agency as the insurer of such loans;
                    ``(B) conduct unsolicited mailings, by postal or 
                electronic means, of educational loan application forms 
                to students enrolled in secondary school or 
                postsecondary educational institutions, or to the 
                parents of such students, except that applications may 
                be mailed, by postal or electronic means, to students 
                or borrowers who have previously received loans 
                guaranteed under this part by the guaranty agency;
                    ``(C) perform, for an institution of higher 
                education participating in a program under this title, 
                any function that the institution is required to 
                perform under part B, D, or G;
                    ``(D) pay, on behalf of the institution of higher 
                education, another person to perform any function that 
                the institution of higher education is required to 
                perform under part B, D, or G; or
                    ``(E) conduct fraudulent or misleading advertising 
                concerning loan availability, terms, or conditions.
        It shall not be a violation of this paragraph for a guaranty 
        agency to provide technical assistance to institutions of 
        higher education comparable to the technical assistance 
        provided to institutions of higher education by the 
        Department.''.
    (c) Counting of Consolidation Loans Against Limits.--
            (1) Amendment.--Section 428C(a)(3)(B) (20 U.S.C. 1078-
        3(a)(3)(B)) is amended by adding at the end the following new 
        clause:
            ``(ii) Loans made under this section shall, to the extent 
        used to pay off the outstanding principal balance on loans made 
        under this title, excluding capitalized interest, be counted 
        against the applicable limitations on aggregate indebtedness 
        contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, 
        and 464(a)(2)(B).''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply with respect to any loan made, insured, or 
        guaranteed under part B or part D of title IV of the Higher 
        Education Act of 1965 for which the first disbursement of 
        principal is made on or after the date of enactment of this 
        Act.
    (d) Voluntary Flexible Agreements.--Section 428A(c) (20 U.S.C. 
1078-1(c)) is amended by striking paragraph (3) and inserting the 
following:
            ``(3) Notice to interested parties.--Once the Secretary 
        reaches a tentative agreement in principle under this section, 
        the Secretary shall publish in the Federal Register a notice 
        that invites interested parties to comment on the proposed 
        agreement. The notice shall state how to obtain a copy of the 
        tentative agreement in principle and shall give interested 
        parties no less than 30 days to provide comments. The Secretary 
        may consider such comments prior to providing the notices 
        pursuant to paragraph (2).''.
    (e) Financial and Economic Literacy.--
            (1) Default reduction program.--Section 428F is amended by 
        adding at the end the following:
    ``(c) Financial and Economic Literacy.--Where appropriate, each 
program described under subsection (b) shall include making available 
financial and economic education materials for the borrower.''.
            (2) Program assistance for borrowers.--Section 432(k)(1) 
        (20 U.S.C. 1082(k)(1)) is amended by striking ``and offering'' 
        and all that follows through the period and inserting ``, 
        offering loan repayment matching provisions as part of employee 
        benefit packages, and providing employees with financial and 
        economic education and counseling.''.
    (f) Credit Bureau Organization Agreements.--Section 430A(a) (20 
U.S.C. 1080a(a)) is amended by striking ``agreements with credit bureau 
organizations'' and inserting ``an agreement with each national credit 
bureau organization (as described in section 603(p) of the Fair Credit 
Reporting Act)''.
    (g) Default Reduction Management.--Section 432 is further amended--
            (1) by striking subsection (n); and
            (2) by redesignating subsections (o) and (p) as subsections 
        (n) and (o), respectively.
    (h) Definition of Eligible Lender.--Section 435(d)(5) (20 U.S.C. 
1085(d)(5)) is amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (H) and (I), respectively; and
            (2) by striking subparagraphs (A) and (B) and inserting the 
        following:
                    ``(A) offered, directly or indirectly, points, 
                premiums, payments (including payments for referrals 
                and for processing or finder fees), prizes, stock or 
                other securities, travel, entertainment expenses, 
                tuition repayment, the provision of information 
                technology equipment at below-market value, additional 
                financial aid funds, or other inducements to any 
                institution of higher education or any employee of an 
                institution of higher education in order to secure 
                applicants for loans under this part;
                    ``(B) conducted unsolicited mailings, by postal or 
                electronic means, of student loan application forms to 
                students enrolled in secondary school or postsecondary 
                institutions, or to parents of such students, except 
                that applications may be mailed, by postal or 
                electronic means, to students or borrowers who have 
                previously received loans under this part from such 
                lender;
                    ``(C) entered into any type of consulting 
                arrangement, or other contract to provide services to a 
                lender, with an employee who is employed in the 
                financial aid office of an institution of higher 
                education, or who otherwise has responsibilities with 
                respect to student loans or other financial aid of the 
                institution;
                    ``(D) compensated an employee who is employed in 
                the financial aid office of an institution of higher 
                education, or who otherwise has responsibilities with 
                respect to educational loans or other financial aid of 
                the institution, and who is serving on an advisory 
                board, commission, or group established by a lender or 
                group of lenders for providing such service, except 
                that the eligible lender may reimburse such employee 
                for reasonable expenses incurred in providing such 
                service;
                    ``(E) performed for an institution of higher 
                education any function that the institution of higher 
                education is required to carry out under part B, D, or 
                G;
                    ``(F) paid, on behalf of an institution of higher 
                education, another person to perform any function that 
                the institution of higher education is required to 
                perform under part B, D, or G;
                    ``(G) provided payments or other benefits to a 
                student at an institution of higher education to act as 
                the lender's representative to secure applications 
                under this title from individual prospective borrowers, 
                unless such student--
                            ``(i) is also employed by the lender for 
                        other purposes; and
                            ``(ii) made all appropriate disclosures 
                        regarding such employment;''.
    (i) Student Loan Information.--Section 435(m) (20 U.S.C. 1085(m)) 
is amended by adding at the end the following new paragraph:
            ``(5) Student loan information.--
                    ``(A) Notwithstanding any other provision of law or 
                regulation, a lender, secondary market, holder, or 
                guaranty agency shall provide, free of charge and in a 
                timely and effective manner, any student loan 
                information maintained by that entity that is requested 
                by an institution of higher education and any third-
                party servicer (as defined in section 481(c)) working 
                on behalf of that institution to prevent student loan 
                defaults.
                    ``(B) An institution and any third-party servicer 
                obtaining access to information under subparagraph (A) 
                shall safeguard that information in order to prevent 
                potential abuses of that information, including 
                identity theft.
                    ``(C) Any third party servicer that obtains 
                information under this subparagraph shall only use the 
                information in a manner directly related to the default 
                prevention work the servicer is performing on behalf of 
                the institution of higher education.''.
    (j) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a)) 
is amended by adding at the end the following new sentence: ``In making 
such determination of permanent and total disability, the Secretary 
shall provide that a borrower who has been certified as permanently and 
totally disabled by the Department of Veterans Affairs or the Social 
Security Administration shall not be required to present further 
documentation for purposes of this title.''.
    (k) Treatment of Falsely Certified Borrowers.--Section 437(c)(1) 
(20 U.S.C. 1087(c)(1)) is amended by inserting ``or parent's 
eligibility'' after ``such student's eligibility''.
    (l) Additional Technical Amendments.--
            (1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is 
        amended--
                    (A) by striking ``and'' at the end of subclause 
                (II) of clause (i); and
                    (B) by moving the margin of clause (iii) two ems to 
                the left.
            (2) Section 428G(e) (20 U.S.C. 1078-7(e)) is amended by 
        striking ``, made to a student to cover the cost of attendance 
        at an eligible institution outside the United States,''.

SEC. 424. ELIMINATION OF AUCTION.

    Part I of title IV (as added by section 701 of the College Cost 
Reduction and Access Act) is repealed.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

    Section 441(b) (42 U.S.C. 2751(b)) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 442. COMMUNITY SERVICE.

    Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended by striking 
``that are open and accessible to the community''.

SEC. 443. ALLOCATION OF FUNDS.

    (a) Eligibility for Additional Allocations.--Section 442(a)(4) (42 
U.S.C. 2752(a)(4)) is amended by striking subparagraph (B) and 
inserting the following:
    ``(B) An otherwise eligible institution may receive a portion of 
the allocation described in subparagraph (A) if--
            ``(i) not less than 10 percent of the students attending 
        the institution receive Federal Pell Grants; and
            ``(ii)(I) in the case of an institution that offers 
        programs of at least 4 years in duration, if its graduation 
        rate for Federal Pell Grant recipients attending the 
        institution and graduating within the period of time equal to 
        normal duration of the longest undergraduate program offered by 
        the institution, as measured from the first day of their 
        enrollment, exceeds the median rate for the class of 
        institution (as defined in section 131(f)(7)(C)); or
            ``(II) in the case of an institution that offers programs 
        of at least 2, but less than 4, years in duration, if its rate 
        for Federal Pell Grant recipients attending the institution and 
        graduating or transferring to an institution that offers 
        programs of at least 4 years in duration within the period of 
        time equal to the normal duration of the program offered, as 
        measured from the first day of their enrollment, exceeds the 
        median rate for the class of institution (as defined in section 
        131(f)(7)(C)).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to any amounts appropriated under section 441(b) of 
the Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 
2009 or any succeeding fiscal year.

SEC. 444. BOOKS AND SUPPLIES.

    Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by 
striking ``$450'' and inserting ``$600''.

SEC. 445. JOB LOCATION AND DEVELOPMENT.

    Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended--
            (1) by striking ``10 percent or $50,000'' and inserting 
        ``15 percent or $75,000''; and
            (2) by inserting before the period at the end the 
        following: ``, except that not less than one-third of such 
        amount shall be specifically allocated to locate and develop 
        community service jobs''.

SEC. 446. WORK COLLEGES.

    Section 448 (42 U.S.C. 2756b) is amended--
            (1) by striking ``work-learning'' each place it appears and 
        inserting ``work-learning-service'';
            (2) by amending subparagraph (C) of subsection (e)(1) to 
        read as follows:
                    ``(C) requires all resident students, including at 
                least one-half of all students who are enrolled on a 
                full-time basis, to participate in a comprehensive 
                work-learning-service program for at least 5 hours each 
                week, or at least 80 hours during each period of 
                enrollment, unless the student is engaged in an 
                institutionally organized or approved study abroad or 
                externship program; and'';
            (3) by amending paragraph (2) of subsection (e) to read as 
        follows:
            ``(2) the term `comprehensive student work-learning-service 
        program'--
                    ``(A) means a student work-learning-service program 
                that is an integral and stated part of the 
                institution's educational philosophy and program;
                    ``(B) requires participation of all resident 
                students for enrollment and graduation;
                    ``(C) includes learning objectives, evaluation, and 
                a record of work performance as part of the student's 
                college record;
                    ``(D) provides programmatic leadership by college 
                personnel at levels comparable to traditional academic 
                programs;
                    ``(E) recognizes the educational role of work-
                learning-service supervisors; and
                    ``(F) includes consequences for nonperformance or 
                failure in the work-learning-service program similar to 
                the consequences for failure in the regular academic 
                program.''; and
            (4) in subsection (f), by striking ``1999 and such sums as 
        may be necessary for each of the 4 succeeding fiscal years'' 
        and inserting ``2008 and such sums as may be necessary for the 
        5 succeeding fiscal years''.

SEC. 447. WORK ASSISTANCE FOR STUDENTS IN COMPREHENSIVE POSTSECONDARY 
              PROGRAMS FOR STUDENTS WITH MENTAL RETARDATION.

    (a) Amendment.--Part C of title IV (42 U.S.C. 2751 et seq.) is 
further amended by adding at the end thereof the following new section:

``SEC. 449. WORK ASSISTANCE FOR STUDENTS IN COMPREHENSIVE POSTSECONDARY 
              PROGRAMS FOR STUDENTS WITH MENTAL RETARDATION.

    ``(a) Purpose.--It is the purpose of this section to enable an 
institution participating under this part that offers a comprehensive 
postsecondary program for students with mental retardation to provide 
work assistance to such students enrolled in that program in order to 
assist these students with the costs of postsecondary education and 
improve their academic and personal skills, independence, and 
employability.
    ``(b) Program Authority.--(1) An institution of higher education 
participating under this part may, pursuant to a plan developed in 
accordance with subsection (c) and approved by the Secretary, transfer 
funds allocated under section 442 for use under this section to award 
work assistance to students with mental retardation who are enrolled 
and maintaining satisfactory progress in a comprehensive postsecondary 
program for students with mental retardation at that institution.
    ``(2)(A) Notwithstanding any other provisions of this Act, the 
following requirements do not apply to students seeking work assistance 
under this section:
            ``(i) Student eligibility requirements relating to 
        enrollment in a program leading to a recognized education 
        credential under section 484(a)(1).
            ``(ii) Satisfactory progress requirements under sections 
        484(a)(2) and (c).
            ``(iii) Student eligibility requirements relating to the 
        satisfaction of secondary education standards under section 
        484(d).
            ``(iv) Determination of need in accordance with part F.
            ``(v) The common financial reporting form developed and 
        processed pursuant to section 483, and any related aid 
        processing, disbursement, and delivery requirements as the 
        Secretary may specify.
            ``(vi) Any reporting requirements that the Secretary may 
        specify.
    ``(B) Notwithstanding any other provisions of this Act, the 
requirement that a program lead to a degree or certificate, or meet the 
requirements of section 481(b), shall not apply to comprehensive 
postsecondary programs for students with mental retardation at 
institutions of higher education that are otherwise eligible to 
participate under this part.
    ``(c) Agreement With the Secretary.--An institution of higher 
education that wishes to provide work assistance under this section 
shall prepare, and submit to the Secretary for approval, a plan 
describing how work assistance will be awarded under this section to 
students with mental retardation who are enrolled in a comprehensive 
postsecondary program for students with mental retardation at that 
institution. That plan shall include--
            ``(1) a description of how the institution will determine 
        which students in the program will receive work assistance, 
        including what criteria will be used for determining the 
        student's financial need for the assistance in lieu of a 
        determination under part F;
            ``(2) a description of the types of jobs in which students 
        in the program will be employed, at what rates of compensation, 
        and the number of hours that a student may work;
            ``(3) the maximum dollar amount of assistance that the 
        institution may award to a student in the program; and
            ``(4) a requirement that the Federal share of the 
        compensation of a student in the program shall not exceed 75 
        percent.
    ``(d) Definitions.--For the purpose of this section:
            ``(1) Comprehensive postsecondary program for students with 
        mental retardation.--The term `comprehensive postsecondary 
        program for students with mental retardation' means a degree, 
        certificate, or nondegree program offered by an institution of 
        higher education that--
                    ``(A) is designed for students with mental 
                retardation who seek to continue academic, vocational, 
                and independent living instruction at the institution 
                to prepare for gainful employment;
                    ``(B) includes an advising and curriculum 
                structure; and
                    ``(C) includes enrollment by the student (through 
                regular enrollment, auditing courses, participation in 
                internships, or enrollment in noncredit, nondegree 
                courses) in the equivalent of not less than half-time 
                enrollment, as defined by the institution.
            ``(2) Student with mental retardation.--The term `student 
        with mental retardation' means a student with significantly 
        subaverage general intellectual functioning, existing 
        concurrently with deficits in adaptive behavior and manifested 
        during the developmental period, that adversely affects a 
        student's educational performance.
            ``(3) Satisfactory progress.--A student with mental 
        retardation enrolled in a comprehensive postsecondary program 
        for students with mental retardation is maintaining 
        satisfactory progress if--
                    ``(A) the institution at which that student is 
                enrolled reviews the progress of the student at the end 
                of each academic year, or its equivalent, as determined 
                by the institution; and
                    ``(B) the institution determines that the student 
                is meeting or exceeding the program requirements and 
                adequately progressing toward program completion.''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective for academic year 2008-2009 and succeeding academic years.

                  PART D--FEDERAL DIRECT LOAN PROGRAM

SEC. 451. INCOME CONTINGENT REPAYMENT.

    Section 455(e)(2) (20 U.S.C. 1087e(e)(2)) is amended by striking 
``and files a Federal income tax return jointly with the borrower's 
spouse''.

                  PART E--FEDERAL PERKINS LOAN PROGRAM

SEC. 461. REAUTHORIZATION OF PROGRAM.

    (a) Program Authorization.--
            (1) Authorization of appropriations.--Section 461(b) (20 
        U.S.C. 1087aa(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``1999'' and inserting 
                        ``2008''; and
                            (ii) by striking ``4 succeeding'' and 
                        inserting ``5 succeeding''; and
                    (B) in paragraph (2), by striking ``2003'' each 
                place it appears and inserting ``2014''.
            (2) Federal capital contribution recovery.--Section 466 (20 
        U.S.C. 1087ff) is amended--
                    (A) by striking ``2004'' each place it appears in 
                subsections (a) and (c) and inserting ``2014'';
                    (B) by striking ``2003'' each place it appears in 
                subsections (a) and (b), and inserting ``2013''; and
                    (C) by striking ``2012'' in subsection (b) and 
                inserting ``2014''.
    (b) Books and Supplies.--Section 462(c)(4)(D) (20 U.S.C. 
1087bb(c)(4)(D)) is amended by striking ``$450'' and inserting 
``$600''.

SEC. 462. LOAN TERMS AND CONDITIONS.

    (a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a)) is amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``$4,000'' in clause (i) and 
                inserting ``$5,500''; and
                    (B) by striking ``$6,000'' in clause (ii) and 
                inserting ``$8,000''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``$40,000'' in clause (i) and 
                inserting ``$60,000'';
                    (B) by striking ``$20,000'' in clause (ii) and 
                inserting ``$27,500''; and
                    (C) by striking ``$8,000'' in clause (iii) and 
                inserting ``$11,000''.
    (b) Forbearance.--Section 464(e) (20 U.S.C. 1087dd(e)) is amended 
by striking ``, upon written request,''.
    (c) Special Repayment Rule.--Paragraph (2) of section 464(f) is 
amended to read as follows:
    ``(2) No compromise repayment of a defaulted loan as authorized by 
paragraph (1) may be made unless agreed to by the Secretary.''.
    (d) Rehabilitation.--Section 464(h)(1)(A) (20 U.S.C. 
1087dd(h)(1)(A)) is amended by striking ``12 ontime'' and inserting ``9 
on-time''.

SEC. 463. LOAN CANCELLATION.

    Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is amended--
            (1) by inserting ``(D),'' after ``subparagraph (A), (C),'' 
        in clause (i);
            (2) by inserting ``or'' after the semicolon at the end of 
        clause (ii);
            (3) by striking clause (iii); and
            (4) by redesignating clause (iv) as clause (iii).

SEC. 464. TECHNICAL AMENDMENTS.

    Part E is further amended as follows:
            (1) Section 462(g)(1)(E)(i)(I) (20 U.S.C. 
        1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly'' 
        after ``consecutive''.
            (2) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is 
        amended by redesignating subclauses (I) and (II) as clauses (i) 
        and (ii), respectively.
            (3) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended 
        in subparagraph (A), by striking ``section 111(c)'' and 
        inserting ``section 1113(a)(5)''.
            (4) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by 
        striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A), 
        (4)(B), or (5)''.
            (5) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
                    (A) by striking ``sections 602 and 632'' and 
                inserting ``sections 602(3) and 632(5)'';
                    (B) by striking ``qualified professional provider 
                of early intervention services'' and inserting ``early 
                intervention services''; and
                    (C) by striking ``section 672(2)'' and inserting 
                ``section 632(4)''.

                         PART F--NEED ANALYSIS

SEC. 471. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID APPLICATION 
              PROCESS.

    (a) Improvements to Paper and Electronic Forms.--
            (1) Common financial aid form development and processing.--
        Section 483(a) (20 U.S.C. 1090(a)) is amended--
                    (A) by striking paragraphs (1), (2), and (5);
                    (B) by redesignating paragraphs (3), (4), (6), and 
                (7), as paragraphs (9), (10), (11), and (12), 
                respectively;
                    (C) by inserting before paragraph (9), as 
                redesignated by subparagraph (B), the following:
            ``(1) In general.--The Secretary, in cooperation with 
        representatives of agencies and organizations involved in 
        student financial assistance, shall produce, distribute, and 
        process free of charge common financial reporting forms as 
        described in this subsection to be used for application and 
        reapplication to determine the need and eligibility of a 
        student for financial assistance under parts A through E (other 
        than subpart 4 of part A). These forms shall be made available 
        to applicants in both paper and electronic formats and shall be 
        referred to as the `Free Application for Federal Student Aid' 
        or the `FAFSA'.
            ``(2) Early estimates.--
                    ``(A) In general.--The Secretary shall permit 
                applicants to complete such forms as described in this 
                subsection in the 4 years prior to enrollment in order 
                to obtain a non-binding estimate of the family 
                contribution, as defined in section 473. The estimate 
                shall clearly and conspicuously indicate that it is 
                only an estimate of family contribution, and may not 
                reflect the actual family contribution of the applicant 
                that shall be used to determine the grant, loan, or 
                work assistance that the applicant may receive under 
                this title when enrolled in a program of postsecondary 
                education. Such applicants shall be permitted to update 
                information submitted on forms described in this 
                subsection using the process required under paragraph 
                (5)(A).
                    ``(B) Evaluation.--Two years after the early 
                estimates are implemented under this paragraph and from 
                data gathered from the early estimates, the Secretary 
                shall evaluate the differences between initial, non-
                binding early estimates and the final financial aid 
                award made available under this title.
                    ``(C) Report.--The Secretary shall provide a report 
                to the authorizing committees on the results of the 
                evaluation.
            ``(3) Paper format.--
                    ``(A) In general.--The Secretary shall produce, 
                distribute, and process common forms in paper format to 
                meet the requirements of paragraph (1). The Secretary 
                shall develop a common paper form for applicants who do 
                not meet the requirements of subparagraph (B).
                    ``(B) EZ fafsa.--
                            ``(i) In general.--The Secretary shall 
                        develop and use a simplified paper application 
                        form, to be known as the `EZ FAFSA', to be used 
                        for applicants meeting the requirements of 
                        section 479(c).
                            ``(ii) Reduced data requirements.--The form 
                        under this subparagraph shall permit an 
                        applicant to submit, for financial assistance 
                        purposes, only the data elements required to 
                        make a determination of whether the applicant 
                        meets the requirements under section 479(c).
                            ``(iii) State data.--The Secretary shall 
                        include on the form under this subparagraph 
                        such data items as may be necessary to award 
                        State financial assistance, as provided under 
                        paragraph (6), except that the Secretary shall 
                        not include a State's data if that State does 
                        not permit its applicants for State assistance 
                        to use the form under this subparagraph.
                            ``(iv) Free availability and processing.--
                        The provisions of paragraph (7) shall apply to 
                        the form under this subparagraph, and the data 
                        collected by means of the form under this 
                        subparagraph shall be available to institutions 
                        of higher education, guaranty agencies, and 
                        States in accordance with paragraph (9).
                            ``(v) Testing.--The Secretary shall conduct 
                        appropriate field testing on the form under 
                        this subparagraph.
                    ``(C) Promoting the use of electronic fafsa.--
                            ``(i) In general.--The Secretary shall--
                                    ``(I) develop a form that uses skip 
                                logic to simplify the application 
                                process for applicants; and
                                    ``(II) make all efforts to 
                                encourage applicants to utilize the 
                                electronic forms described in paragraph 
                                (4).
                            ``(ii) Maintenance of the fafsa in a 
                        printable electronic file.--The Secretary shall 
                        maintain a version of the paper forms described 
                        in subparagraphs (A) and (B) in a printable 
                        electronic file that is easily portable. The 
                        printable electronic file will be made easily 
                        accessible and downloadable to students on the 
                        same website used to provide students with the 
                        electronic application forms described in 
                        paragraph (4) of this subsection. The Secretary 
                        shall enable students to submit a form created 
                        under this subparagraph that is downloaded and 
                        printed from an electronic file format in order 
                        to meet the filing requirements of this section 
                        and in order to receive aid from programs under 
                        this title.
                            ``(iii) Reporting requirement.--The 
                        Secretary shall report annually to Congress on 
                        the impact of the digital divide on students 
                        completing applications for title IV aid 
                        described under this paragraph and paragraph 
                        (4). The Secretary will also report on the 
                        steps taken to eliminate the digital divide and 
                        phase out the paper form described in 
                        subparagraph (A) of this paragraph. The 
                        Secretary's report will specifically address 
                        the impact of the digital divide on the 
                        following student populations: dependent 
                        students, independent students without 
                        dependents, and independent students with 
                        dependents other than a spouse.
            ``(4) Electronic format.--
                    ``(A) In general.--The Secretary shall produce, 
                distribute, and process common forms in electronic 
                format to meet the requirements of paragraph (1). The 
                Secretary shall develop common electronic forms for 
                applicants who do not meet the requirements of 
                subparagraph (C) of this paragraph.
                    ``(B) State data.--The Secretary shall include on 
                the common electronic forms space for information that 
                needs to be submitted from the applicant to be eligible 
                for State financial assistance, as provided under 
                paragraph (6), except the Secretary shall not require 
                applicants to complete data required by any State other 
                than the applicant's State of residence.
                    ``(C) Simplified applications: fafsa on the web.--
                            ``(i) In general.--The Secretary shall 
                        develop and use a simplified electronic 
                        application form to be used by applicants 
                        meeting the requirements under subsection (c) 
                        of section 479 and an additional, separate 
                        simplified electronic application form to be 
                        used by applicants meeting the requirements 
                        under subsection (b) of section 479.
                            ``(ii) Reduced data requirements.--The 
                        simplified electronic application forms shall 
                        permit an applicant to submit for financial 
                        assistance purposes, only the data elements 
                        required to make a determination of whether the 
                        applicant meets the requirements under 
                        subsection (b) or (c) of section 479.
                            ``(iii) State data.--The Secretary shall 
                        include on the simplified electronic 
                        application forms such data items as may be 
                        necessary to award state financial assistance, 
                        as provided under paragraph (6), except that 
                        the Secretary shall not require applicants to 
                        complete data required by any State other than 
                        the applicant's State of residence.
                            ``(iv) Availability and processing.--The 
                        data collected by means of the simplified 
                        electronic application forms shall be available 
                        to institutions of higher education, guaranty 
                        agencies, and States in accordance with 
                        paragraph (9).
                            ``(v) Testing.--The Secretary shall conduct 
                        appropriate field testing on the forms 
                        developed under this subparagraph.
                    ``(D) Use of forms.--Nothing in this subsection 
                shall be construed to prohibit the use of the forms 
                developed by the Secretary pursuant to this paragraph 
                by an eligible institution, eligible lender, guaranty 
                agency, State grant agency, private computer software 
                provider, a consortium thereof, or such other entities 
                as the Secretary may designate.
                    ``(E) Privacy.--The Secretary shall ensure that 
                data collection under this paragraph complies with 
                section 552a of title 5, United States Code, and that 
                any entity using the electronic version of the forms 
                developed by the Secretary pursuant to this paragraph 
                shall maintain reasonable and appropriate 
                administrative, technical, and physical safeguards to 
                ensure the integrity and confidentiality of the 
                information, and to protect against security threats, 
                or unauthorized uses or disclosures of the information 
                provided on the electronic version of the forms. Data 
                collected by such electronic version of the forms shall 
                be used only for the application, award, and 
                administration of aid awarded under this title, State 
                aid, or aid awarded by eligible institutions or such 
                entities as the Secretary may designate. No data 
                collected by such electronic version of the forms shall 
                be used for making final aid awards under this title 
                until such data have been processed by the Secretary or 
                a contractor or designee of the Secretary, and an 
                expected family contribution has been calculated by the 
                Secretary, except as may be permitted under this title.
                    ``(F) Signature.--Notwithstanding any other 
                provision of this Act, the Secretary may permit an 
                electronic form under this paragraph to be submitted 
                with an electronic signature.
            ``(5) Streamlining.--
                    ``(A) Streamlined reapplication process.--
                            ``(i) In general.--The Secretary shall 
                        develop streamlined reapplication forms and 
                        processes, including both paper and electronic 
                        reapplication processes, consistent with the 
                        requirements of this subsection, for an 
                        applicant who applies for financial assistance 
                        under this title--
                                    ``(I) in the academic year 
                                succeeding the year in which such 
                                applicant first applied for financial 
                                assistance under this title; or
                                    ``(II) in any succeeding academic 
                                years.
                            ``(ii) Mechanisms for reapplication.--The 
                        Secretary shall develop appropriate mechanisms 
                        to support reapplication.
                            ``(iii) Identification of updated data.--
                        The Secretary shall determine, in cooperation 
                        with States, institutions of higher education, 
                        agencies, and organizations involved in student 
                        financial assistance, the data elements that 
                        can be updated from the previous academic 
                        year's application.
                            ``(iv) Reduced data authorized.--Nothing in 
                        this title shall be construed as limiting the 
                        authority of the Secretary to reduce the number 
                        of data elements required of reapplicants.
                            ``(v) Zero family contribution.--Applicants 
                        determined to have a zero family contribution 
                        pursuant to section 479(c) shall not be 
                        required to provide any financial data in a 
                        reapplication form, except that which is 
                        necessary to determine eligibility under such 
                        section.
                    ``(B) Reduction of data elements.--
                            ``(i) Reduction encouraged.--Of the number 
                        of data elements on the FAFSA on the date of 
                        enactment of the College Access and Opportunity 
                        Act of 2007 (including questions on the FAFSA 
                        for the purposes described in paragraph (6)), 
                        the Secretary, in cooperation with 
                        representatives of agencies and organizations 
                        involved in student financial assistance, shall 
                        continue to reduce the number of such data 
                        elements following the date of enactment. 
                        Reductions of data elements under paragraph 
                        (3)(B), (4)(C), or (5)(A)(iv) shall not be 
                        counted towards the reduction referred to in 
                        this paragraph unless those data elements are 
                        reduced for all applicants.
                            ``(ii) Report.--The Secretary shall 
                        annually report to the House of Representatives 
                        and the Senate on the progress made of reducing 
                        data elements.
            ``(6) State requirements.--
                    ``(A) In general.--The Secretary shall include on 
                the forms developed under this subsection, such State-
                specific data items as the Secretary determines are 
                necessary to meet State requirements for State need-
                based financial aid under section 415C, except as 
                provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of 
                this subsection. Such items shall be selected in 
                consultation with State agencies in order to assist in 
                the awarding of State financial assistance in 
                accordance with the terms of this subsection, except as 
                provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of 
                this subsection. The number of such data items shall 
                not be less than the number included on the form on 
                October 7, 1998, unless a State notifies the Secretary 
                that the State no longer requires those data items for 
                the distribution of State need-based financial aid.
                    ``(B) Annual review.--The Secretary shall conduct 
                an annual review process to determine which forms and 
                data items the States require to award State need-based 
                financial aid and other application requirements that 
                the States may impose.
                    ``(C) State use of simplified forms.--The Secretary 
                shall encourage States to take such steps as necessary 
                to encourage the use of simplified application forms, 
                including those described in paragraphs (3)(B) and 
                (4)(C), to meet the requirements under subsection (b) 
                or (c) of section 479.
                    ``(D) Federal register notice.--The Secretary shall 
                publish on an annual basis a notice in the Federal 
                Register requiring State agencies to inform the 
                Secretary--
                            ``(i) if the State agency is unable to 
                        permit applicants to utilize the simplified 
                        application forms described in paragraphs 
                        (3)(B) and (4)(C); and
                            ``(ii) of the State-specific data that the 
                        State agency requires for delivery of State 
                        need-based financial aid.
                    ``(E) State notification to the secretary.--
                            ``(i) In general.--Each State agency shall 
                        notify the Secretary--
                                    ``(I) whether the State permits an 
                                applicant to file a form described in 
                                paragraph (3)(B) or paragraph (4)(C) of 
                                this subsection for purposes of 
                                determining eligibility for State need-
                                based financial aid; and
                                    ``(II) the State-specific data that 
                                the State agency requires for delivery 
                                of State need-based financial aid.
                            ``(ii) Acceptance of forms.--In the event 
                        that a State does not permit an applicant to 
                        file a form described in paragraph (3)(B) or 
                        paragraph (4)(C) of this subsection for 
                        purposes of determining eligibility for State 
                        need-based financial aid--
                                    ``(I) the State shall notify the 
                                Secretary if the State is not permitted 
                                to do so because of either State law or 
                                because of agency policy; and
                                    ``(II) the notification under 
                                subclause (I) shall include an estimate 
                                of the program cost to permit 
                                applicants to complete simplified 
                                application forms under paragraphs 
                                (3)(B) and paragraph (4)(C) of this 
                                subsection.
                            ``(iii) Lack of notification by the 
                        state.--If a State does not notify the 
                        Secretary pursuant to clause (i), the Secretary 
                        shall--
                                    ``(I) permit residents of that 
                                State to complete simplified 
                                application forms under paragraphs 
                                (3)(B) and paragraph (4)(C) of this 
                                subsection; and
                                    ``(II) not require any resident of 
                                that State to complete any data 
                                previously required by that State under 
                                this section.
            ``(7) Charges to students and parents for use of forms 
        prohibited.--
                    ``(A) Fees prohibited.--The FAFSA, in whatever form 
                (including the EZ FAFSA, paper, electronic, simplified, 
                or reapplication), shall be produced, distributed, and 
                processed by the Secretary and no parent or student 
                shall be charged a fee by an entity for the collection, 
                processing, or delivery of financial aid through the 
                use of the FAFSA. The need and eligibility of a student 
                for financial assistance under parts A through E of 
                this title (other than under subpart 4 of part A) may 
                only be determined by using the FAFSA developed by the 
                Secretary pursuant to this subsection. No student may 
                receive assistance under parts A through E of this 
                title (other than under subpart 4 of part A), except by 
                use of the FAFSA developed by the Secretary pursuant to 
                this subsection. No data collected on a form, 
                worksheet, or other document for which a fee is charged 
                shall be used to complete the FAFSA.
                    ``(B) Notice.--Any entity that provides to students 
                or parents, or charges students or parents for, any 
                value-added services with respect to or in connection 
                with the FAFSA, such as completion of the FAFSA, 
                submission of the FAFSA, or tracking of the FAFSA for a 
                student, shall provide to students and parents clear 
                and conspicuous notice that--
                            ``(i) the FAFSA is a free Federal student 
                        aid application;
                            ``(ii) the FAFSA can be completed without 
                        professional assistance; and
                            ``(iii) includes the current Internet 
                        address for the FAFSA on the Department's web 
                        site.
            ``(8) Application processing cycle.--The Secretary shall 
        enable students to submit a form created under this subsection 
        in order to meet the filing requirements of this section and in 
        order to receive aid from programs under this title and shall 
        initiate the processing of applications under this subsection 
        as early as practicable prior to January 1 of the student's 
        planned year of enrollment.''.
            (2) Master calendar.--Section 482(a)(1)(B) (20 U.S.C. 1089) 
        is amended to read as follows:
                    ``(B) by March 1: proposed modifications, updates, 
                and notices pursuant to sections 478, 479(c)(2)(C), and 
                483(a)(6) published in the Federal Register;''.
    (b) Increasing Access to Technology.--Section 483 (20 U.S.C. 1090) 
is further amended by adding at the end the following:
    ``(f) Addressing the Digital Divide.--The Secretary shall utilize 
savings accrued by moving more applicants to the electronic forms 
described in subsection (a)(4) to improve access to the electronic 
forms described in subsection (a)(4) for applicants meeting the 
requirements of section 479(c).''.

SEC. 472. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.

    Section 479A(a) (20 U.S.C. 1087tt(a)) is amended--
            (1) by striking ``(a) In General.--'' and inserting the 
        following:
    ``(a) Authority To Make Adjustments.--
            ``(1) Adjustments for special circumstances.--'';
            (2) by inserting before ``Special circumstances may'' the 
        following:
            ``(2) Special circumstances defined.--'';
            (3) by inserting ``a student's status as a ward of the 
        court at any time prior to attaining 18 years of age, a 
        student's status as an individual who was adopted at or after 
        age 13, a student's status as a homeless or unaccompanied youth 
        (as defined in section 725 of the McKinney-Vento Homeless 
        Assistance Act),'' after ``487,'';
            (4) by inserting before ``Adequate documentation'' the 
        following:
            ``(3) Documentation and use of supplementary information.--
        ''; and
            (5) by inserting before ``No student'' the following:
            ``(4) Fees for supplementary information prohibited.--''.

  PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE

SEC. 481. EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR 
              PELL GRANTS.

    Section 483(a) (20 U.S.C. 1090(a)) (as amended by section 471(a)) 
is further amended by adding at the end the following new paragraph:
            ``(13) Expanding information dissemination regarding 
        eligibility for pell grants.--The Secretary shall make special 
        efforts, in conjunction with State efforts, to notify students 
        and their parents who qualify for a free lunch under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.), the Food Stamps program, or such other programs as the 
        Secretary shall determine, of their potential eligibility for a 
        maximum Pell Grant, and shall disseminate such informational 
        materials as the Secretary deems appropriate.''.

SEC. 482. STUDENT ELIGIBILITY.

    (a) Technical Amendment.--Section 484(b)(5) (20 U.S.C. 1091(b)(5)) 
is amended by inserting ``or parent (on behalf of a student)'' after 
``student''.
    (b) Republic of Palau.--Section 484 (20 U.S.C. 1091) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4), by striking ``the Republic of 
                the Marshall Islands, the Federated States of 
                Micronesia, or''; and
                    (B) in paragraph (5), by striking ``a citizen of 
                any one of the Freely Associated States'' and inserting 
                ``or, to the extent described in subsection (j), a 
                citizen of the Republic of Palau''; and
            (2) by amending subsection (j) to read as follows:
    ``(j) Assistance Under Subpart 1 of Part A for Students From 
Palau.--Notwithstanding any other provision of law, a student shall be 
eligible until September 30, 2008, for assistance under subpart 1 of 
part A if the student is otherwise qualified and--
            ``(1) is a citizen of the Republic of Palau and attends an 
        institution of higher education in a State or a public or 
        nonprofit private institution of higher education in the Freely 
        Associated States; or
            ``(2) meets the requirements of subsection (a)(5) and 
        attends a public or nonprofit private institution of higher 
        education in any one of the Freely Associated States.''.

SEC. 483. INSTITUTIONAL REFUNDS.

    Section 484B(a)(1) (20 U.S.C. 1091b(a)(1)) is amended in subsection 
(a)(1), by inserting ``subpart 4 of part A or'' after ``received 
under''.

SEC. 484. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
              STUDENTS.

    (a) Information Dissemination Activities.--Section 485(a)(1) (20 
U.S.C. 1092(a)(1)) is amended--
            (1) by amending the second sentence to read as follows: 
        ``The information required by this section shall be produced 
        and be made publicly available to an enrolled student and to 
        any prospective student, through appropriate publications, 
        mailings, electronic media, and the reports required by the 
        institution's accrediting agency under section 496(c)(9).'';
            (2) by amending subparagraph (G) to read as follows:
            ``(G) the academic programs of the institution, including--
                    ``(i) the current degree programs and other 
                educational and training programs;
                    ``(ii) the institution's educational mission and 
                goals;
                    ``(iii) the instructional, laboratory, and other 
                physical plant facilities which relate to the academic 
                programs; and
                    ``(iv) the faculty and other instructional 
                personnel;'';
            (3) by striking subparagraph (L) and inserting the 
        following:
            ``(L) a summary of student outcomes for full-time 
        undergraduate students, including--
                    ``(i) the completion or graduation rates of 
                certificate- or degree-seeking undergraduate students 
                entering such institutions; and
                    ``(ii) any other student outcome data, qualitative 
                or quantitative, including data regarding distance 
                education, deemed by the institution to be appropriate 
                to its stated educational mission and goals, and, when 
                applicable, licensing and placement rates for 
                professional and vocational programs;'';
            (4) by inserting before the semicolon at the end of 
        subparagraph (J) the following: ``, and the process for 
        students to register complaints with the accrediting agencies 
        or associations'';
            (5) in subparagraph (M), by striking ``guaranteed student 
        loans under part B of this title or direct student loans under 
        part E of this title, or both,'' and inserting ``student loans 
        under part B, D, or E of this title'';
            (6) by striking ``and'' at the end of subparagraph (N);
            (7) by striking the period at the end of subparagraph (O) 
        and inserting a semicolon; and
            (8) by adding at the end the following new subparagraphs:
            ``(P) the penalties contained in subsection 484(r) 
        regarding suspension of eligibility for drug related offenses;
            ``(Q) the policies of the institution regarding the 
        acceptance or denial of academic credit earned at another 
        institution of higher education, which shall include a 
        statement that such decisions will not be based solely on the 
        source of accreditation of a sending institution, provided that 
        the sending institution is accredited by an agency or 
        association that is recognized by the Secretary pursuant to 
        section 496 to be a reliable authority as to the quality of the 
        education or training offered, and except that nothing in this 
        subparagraph shall be construed to--
                    ``(i) authorize an officer or employee of the 
                Department to exercise any direction, supervision, or 
                control over the curriculum, program of instruction, 
                administration, or personnel of any institution of 
                higher education, or over any accrediting agency or 
                association;
                    ``(ii) limit the application of the General 
                Education Provisions Act; or
                    ``(iii) create any legally enforceable right; and
            ``(R) policies and sanctions related to copyright 
        infringement, including--
                    ``(i) information which explicitly informs students 
                that unauthorized distribution of copyrighted material 
                on the institution's information technology systems, 
                including engaging in unauthorized peer-to-peer file-
                sharing, may subject them to civil and criminal 
                penalties;
                    ``(ii) a summary of the penalties for violation of 
                copyright law under the United States Code;
                    ``(iii) a description of the disciplinary actions 
                which are taken against students who engage in 
                unauthorized distribution of copyrighted material on 
                the institution's information technology systems; and
                    ``(iv) notification that the institution may use 
                technological measures to detect, prevent, and prohibit 
                unauthorized distribution of copyrighted material on 
                its information technology systems, including over 
                local area networks of such systems.''.
    (b) Additional Amendments.--Section 485(a) is further amended by 
striking paragraph (6) and inserting the following:
    ``(6) Each institution may provide supplemental information to 
enrolled and prospective students showing the completion or graduation 
rate for students described in paragraph (4). For the purpose of this 
paragraph, the definitions provided in the Integrated Postsecondary 
Education Data System shall apply.
    ``(7) Each eligible institution participating in any program under 
this title may publicly report to currently enrolled and prospective 
students the voluntary information collected by the National Survey of 
Student Engagement (NSSE), the Community College Survey of Student 
Engagement (CCSSE), or other instruments that provide evidence of 
student participation in educationally purposeful activities. The 
information shall be produced and made available in a uniform and 
comprehensible manner, through appropriate publications, mailings, and 
electronic media, and may be included in reports required by the 
institution's accrediting agency.''.
    (c) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended 
by adding at the end the following new paragraph:
    ``(3) Each eligible institution shall, during the exit interview 
required by this subsection, provide to a borrower of a loan made under 
part B, D, or E a clear and conspicuous notice describing the effect of 
using a consolidation loan to discharge the borrower's student loans, 
including--
            ``(A) the effects of consolidation on total interest to be 
        paid, fees to be paid, and length of repayment;
            ``(B) the effects of consolidation on a borrower's 
        underlying loan benefits, including loan forgiveness, 
        cancellation, and deferment;
            ``(C) the ability for the borrower to prepay the loan, pay 
        on a shorter schedule, and to change repayment plans, and that 
        borrower benefit programs may vary among different loan 
        holders;
            ``(D) the tax benefits for which the borrower may be 
        eligible; and
            ``(E) the consequences of default.''.
    (d) Campus Crime Information.--Section 485(f)(1) (20 U.S.C. 
1092(f)(1)) is amended by inserting ``, other than a foreign 
institution of higher education,'' after ``under this title''.
    (e) Disclosure of Fire Safety of Campus Buildings.--Section 485 (20 
U.S.C. 1092) is further amended--
            (1) in subsection (a)(1), by adding after subparagraph (Q) 
        (as added by subsection (a)(8) of this section) the following 
        new subparagraph:
            ``(R) the fire safety report prepared by the institution 
        pursuant to subsection (h).''; and
            (2) by adding at the end the following new subsection:
    ``(h) Disclosure of Fire Safety Standards and Measures.--
            ``(1) Annual fire safety reports required.--Each 
        institution participating in any program under this title 
        shall, beginning in the first academic year that begins after 
        the date of enactment of the College Access and Opportunity Act 
        of 2007, and each year thereafter, prepare, publish, and 
        distribute, through appropriate publications (including the 
        Internet) or mailings, to all current students and employees, 
        and to any applicant for enrollment or employment upon request, 
        an annual fire safety report. Such reports shall contain at 
        least the following information with respect to the campus fire 
        safety practices and standards of that institution:
                    ``(A) A statement that identifies each institution-
                owned or controlled student housing facility, and 
                whether or not such facility is equipped with a fire 
                sprinkler system or other fire safety system, or has 
                fire escape planning or protocols.
                    ``(B) Statistics for each such facility concerning 
                the occurrence of fires and false alarms in such 
                facility during the 2 preceding calendar years for 
                which data are available.
                    ``(C) For each such occurrence in each such 
                facility, a summary of the human injuries or deaths, 
                structural or property damage, or combination thereof.
                    ``(D) Information regarding rules on portable 
                electrical appliances, smoking and open flames (such as 
                candles), regular mandatory supervised fire drills, and 
                planned and future improvements in fire safety.
                    ``(E) Information about fire safety education and 
                training provided to students, faculty, and staff.
                    ``(F) Information concerning fire safety at any 
                housing facility owned or controlled by a fraternity, 
                sorority, or student group that is recognized by the 
                institution, including--
                            ``(i) information reported to the 
                        institution under paragraph (4); and
                            ``(ii) a statement concerning whether and 
                        how the institution works with recognized 
                        student fraternities and sororities, and other 
                        recognized student groups owning or controlling 
                        housing facilities, to make each building and 
                        property owned or controlled by such 
                        fraternities, sororities, and groups more fire 
                        safe.
            ``(2) Fraternities, sororities, and other groups.--Each 
        institution participating in a program under this title shall 
        request each fraternity and sorority that is recognized by the 
        institution, and any other student group that is recognized by 
        the institution and that owns or controls housing facilities, 
        to collect and report to the institution the information 
        described in subparagraphs (A) through (E) of paragraph (1), as 
        applied to the fraternity, sorority, or recognized student 
        group, respectively, for each building and property owned or 
        controlled by the fraternity, sorority, or group, respectively.
            ``(3) Current information to campus community.--Each 
        institution participating in any program under this title shall 
        establish and maintain a log, written in a form that can be 
        easily understood, recording all on-campus fires, including the 
        nature, date, time, and general location of each fire and all 
        false fire alarms. All entries that are required pursuant to 
        this paragraph shall, except where disclosure of such 
        information is prohibited by law, be open to public inspection, 
        and each such institution shall make annual reports to the 
        campus community on such fires and false fire alarms in a 
        manner that will aid the prevention of similar occurrences.
            ``(4) Reports to the secretary.--On an annual basis, each 
        institution participating in any program under this title shall 
        submit to the Secretary a copy of the statistics required to be 
        made available under paragraph (1)(B). The Secretary shall--
                    ``(A) review such statistics;
                    ``(B) make copies of the statistics submitted to 
                the Secretary available to the public; and
                    ``(C) in coordination with nationally recognized 
                fire organizations and representatives of institutions 
                of higher education, identify exemplary fire safety 
                policies, procedures, and practices and disseminate 
                information concerning those policies, procedures, and 
                practices that have proven effective in the reduction 
                of campus fires.
            ``(5) Rule of construction.--Nothing in this subsection 
        shall be construed to authorize the Secretary to require 
        particular policies, procedures, or practices by institutions 
        of higher education with respect to fire safety.
            ``(6) Definitions.--In this subsection, the term `campus' 
        has the meaning provided in subsection (f)(6).''.
    (f) Campus Based Digital Theft Prevention.--Section 485 (20 U.S.C. 
1092) is further amended by adding at the end the following new 
subsection:
    ``(i) Campus Based Digital Theft Prevention.--
            ``(1) In general.--Each eligible institution participating 
        in any program under this title which is among those identified 
        during the prior calendar year by the Secretary pursuant to 
        paragraph (2)(B), shall--
                    ``(A) provide evidence to the Secretary that the 
                institution has notified students on its policies and 
                procedures related to the illegal downloading and 
                distribution of copyrighted materials by students as 
                required under subsection (a)(1)(R);
                    ``(B) undertake a review, which shall be submitted 
                to the Secretary, of its procedures and plans related 
                to preventing illegal downloading and distribution to 
                determine the program's effectiveness and implement 
                changes to the program if the changes are needed; and
                    ``(C) provide evidence to the Secretary that the 
                institution has developed a plan for implementing a 
                technology-based deterrent to prevent the illegal 
                downloading or peer-to-peer distribution of 
                intellectual property.
            ``(2) Identification.--For purposes of carrying out the 
        requirements of paragraph (1), the Secretary shall, on an 
        annual basis, identify--
                    ``(A) the 25 institutions of higher education 
                participating in programs under this title, which have 
                received during the previous calendar year the highest 
                number of writen notices from copyright owners, or 
                persons authorized to act on behalf of copyright 
                owners, alleging infringement of copyright by users of 
                the institution's information technology systems, where 
                such notices identify with specificity the works 
                alleged to be infringed, or a representative list of 
                works alleged to be infringed, the date and time of the 
                alleged infringing conduct together with information 
                sufficient to identify the infringing user, and 
                information sufficient to contact the copyright owner 
                or its authorized representative; and
                    ``(B) from among those 25 institutions described in 
                paragraph (1), those which have received during the 
                previous calendar year at least 100 notices alleging 
                infringement of copyright by users of the institution's 
                information technology systems, as described in 
                paragraph (1).''.

SEC. 485. DISTANCE EDUCATION DEMONSTRATION PROGRAM.

    (a) Eligible Applicants.--Section 486(b)(3) (20 U.S.C. 1093(b)(3)) 
is amended--
            (1) in subparagraph (B), by striking ``section 
        102(a)(1)(C)'' and inserting ``section 102''; and
            (2) in subparagraph (C), by striking ``subsection (a) of 
        section 102, other than the requirement of paragraph (3)(A) or 
        (3)(B) of such subsection,'' and inserting ``section 101, other 
        than the requirements of subparagraph (A) or (B) of subsection 
        (b)(4) of such section''.
    (b) Selection.--Section 486(d)(1) (20 U.S.C. 1093(d)(1)) is 
amended--
            (1) by striking ``the third year'' and inserting 
        ``subsequent years'';
            (2) by striking ``35 institutions'' and inserting ``100 
        institutions''; and
            (3) by adding at the end the following new sentence: ``Not 
        more than 5 of such institutions, systems, or consortia may be 
        accredited, degree-granting correspondence schools.''.

SEC. 486. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

    Part G of title IV is amended by inserting after section 486 (20 
U.S.C. 1093) the following new section:

``SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to provide, through a college affordability 
        demonstration program, for increased innovation in the delivery 
        of higher education and student financial aid in a manner 
        resulting in reduced costs for students as well as the 
        institution by employing one or more strategies including 
        accelerating degree or program completion, increasing 
        availability of, and access to, distance components of 
        education delivery, engaging in collaborative arrangements with 
        other institutions and organizations, and other alternative 
        methodologies; and
            ``(2) to help determine--
                    ``(A) the most effective means of delivering 
                student financial aid as well as quality education;
                    ``(B) the specific statutory and regulatory 
                requirements that should be altered to provide for more 
                efficient and effective delivery of student financial 
                aid, as well as access to high quality distance 
                education programs, resulting in a student more 
                efficiently completing postsecondary education; and
                    ``(C) the most effective methods of obtaining and 
                managing institutional resources.
    ``(b) Demonstration Program Authorized.--
            ``(1) In general.--In accordance with the purposes 
        described in subsection (a) and the provisions of subsection 
        (d), the Secretary is authorized to select not more than 100 
        institutions of higher education, including those applying as 
        part of systems or consortia of such institutions, for 
        voluntary participation in the College Affordability 
        Demonstration Program in order to enable participating 
        institutions to carry out such purposes by providing programs 
        of postsecondary education, and making available student 
        financial assistance under this title to students enrolled in 
        those programs, in a manner that would not otherwise meet the 
        requirements of this title.
            ``(2) Waivers.--The Secretary is authorized to waive for 
        any institutions of higher education, or any system or 
        consortia of institutions of higher education, selected for 
        participation in the College Affordability Demonstration 
        Program, any requirements of this Act or the regulations 
        thereunder as deemed necessary by the Secretary to meet the 
        purpose described in subsection (a)(1), and shall make a 
        determination that the waiver can reasonably be expected to 
        result in reduced costs to students or institutions without an 
        increase in Federal program costs. The Secretary may not waive 
        under this paragraph the maximum award amounts for an academic 
        year or loan period.
            ``(3) Eligible applicants.--
                    ``(A) Eligible institutions.--Except as provided in 
                subparagraph (B), only an institution of higher 
                education that is eligible to participate in programs 
                under this title shall be eligible to participate in 
                the demonstration program authorized under this 
                section.
                    ``(B) Prohibition.--An institution of higher 
                education described in section 102 shall not be 
                eligible to participate in the demonstration program 
                authorized under this section.
    ``(c) Application.--
            ``(1) In general.--Each institution or system of 
        institutions desiring to participate in the demonstration 
        program under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.
            ``(2) Contents of applications.--Each application for the 
        college affordability demonstration program shall include at 
        least the following:
                    ``(A) a description of the institution or system or 
                consortium of institutions and what quality assurance 
                mechanisms are in place to ensure the integrity of the 
                Federal financial aid programs;
                    ``(B) a description of the innovation or 
                innovations being proposed and the affected programs 
                and students, including--
                            ``(i) a description of any collaborative 
                        arrangements with other institutions or 
                        organizations to reduce costs;
                            ``(ii) a description of any expected 
                        economic impact of participation in the program 
                        within the community in which the institution 
                        is located; and
                            ``(iii) a description of any means the 
                        institution will employ to reduce the costs of 
                        instructional materials, such as textbooks;
                    ``(C) a description of each regulatory or statutory 
                requirement for which waivers are sought, with a reason 
                for each waiver;
                    ``(D) a description of the expected outcomes of the 
                program changes proposed, including the estimated 
                reductions in costs both for the institution and for 
                students;
                    ``(E) an assurance from each institution in a 
                system or consortium of a commitment to fulfill its 
                role as described in the application;
                    ``(F) an assurance that the participating 
                institution or system of institutions will offer full 
                cooperation with the ongoing evaluations of the 
                demonstration program provided for in this section; and
                    ``(G) any other information or assurances the 
                Secretary may require.
    ``(d) Selection.--In selecting institutions to participate in the 
demonstration program under this section, the Secretary shall take into 
account--
            ``(1) the number and quality of applications received, 
        determined on the basis of the contents required by subsection 
        (c)(2);
            ``(2) the Department's capacity to oversee and monitor each 
        institution's participation;
            ``(3) an institution's--
                    ``(A) financial responsibility;
                    ``(B) administrative capability;
                    ``(C) program or programs being offered via 
                distance education, if applicable;
                    ``(D) student completion rates; and
                    ``(E) student loan default rates; and
            ``(4) the participation of a diverse group of institutions 
        with respect to size, mission, and geographic distribution.
    ``(e) Notification.--The Secretary shall make available to the 
public and to the authorizing committees a list of institutions 
selected to participate in the demonstration program authorized by this 
section. Such notice shall include a listing of the specific statutory 
and regulatory requirements being waived for each institution and a 
description of the innovations being demonstrated.
    ``(f) Evaluations and Reports.--
            ``(1) Evaluation.--The Secretary shall evaluate the 
        demonstration program authorized under this section on a 
        biennial basis. Such evaluations specifically shall review--
                    ``(A) the extent to which expected outcomes, 
                including the estimated reductions in cost, were 
                achieved;
                    ``(B) the number and types of students 
                participating in the programs offered, including the 
                progress of participating students toward recognized 
                certificates or degrees and the extent to which 
                participation in such programs increased;
                    ``(C) issues related to student financial 
                assistance associated with the innovations undertaken;
                    ``(D) effective technologies and alternative 
                methodologies for delivering student financial 
                assistance;
                    ``(E) the extent of the cost savings to the 
                institution, the student, and the Federal Government 
                resulting from the waivers provided, and an estimate as 
                to future cost savings for the duration of the 
                demonstration program;
                    ``(F) the extent to which students saved money by 
                completing their postsecondary education sooner;
                    ``(G) the extent to which the institution reduced 
                its tuition and fees and its costs by participating in 
                the demonstration program;
                    ``(H) the extent to which any collaborative 
                arrangements with other institutions or organizations 
                have reduced the participating institution's costs; and
                    ``(I) the extent to which statutory or regulatory 
                requirements not waived under the demonstration program 
                present difficulties for students or institutions.
            ``(2) Policy analysis.--The Secretary shall review current 
        policies and identify those policies that present impediments 
        to the implementation of innovations that result in cost 
        savings and in expanding access to education.
            ``(3) Reports.--The Secretary shall provide a report to the 
        authorizing committees on a biennial basis regarding--
                    ``(A) the demonstration program authorized under 
                this section;
                    ``(B) the results of the evaluations conducted 
                under paragraph (1);
                    ``(C) the cost savings to the Federal Government by 
                the demonstration program authorized by this section; 
                and
                    ``(D) recommendations for changes to increase the 
                efficiency and effective delivery of financial aid.
    ``(g) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) ensure compliance of institutions or systems of 
        institutions with the requirements of this title (other than 
        the sections and regulations that are waived under subsection 
        (b)(2));
            ``(2) provide technical assistance to institutions in their 
        application to and participation in the demonstration program;
            ``(3) monitor fluctuations in the student population 
        enrolled in the participating institutions or systems of 
        institutions;
            ``(4) monitor changes in financial assistance provided at 
        the institution; and
            ``(5) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities.
    ``(h) Termination of Authority.--The authority of the Secretary 
under this section shall cease to be effective on October 1, 2012.''.

SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.

    (a) Refund Policies.--Section 487(a) (20 U.S.C. 1094(a)) is 
amended--
            (1) in paragraph (16), by inserting ``or other Federal, 
        State, or local government funds'' after ``funds under this 
        title'' each place it appears;
            (2) in paragraph (22), by striking ``refund policy'' and 
        inserting ``policy on the return of title IV funds''; and
            (3) in paragraph (23)--
                    (A) by moving subparagraph (C) 2 em spaces to the 
                left; and
                    (B) by adding after such subparagraph the following 
                new subparagraph:
            ``(D) An institution shall be considered in compliance with 
        the requirements of subparagraph (A) with respect to any 
        student to whom the institution electronically transmits a 
        message containing a voter registration form acceptable for use 
        in the State in which the institution is located, or an 
        Internet address where such a form can be downloaded, provided 
        such information is in an electronic message devoted to voter 
        registration.''.
    (b) Enforcing the 90/10 Rule.--
            (1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
        further amended by adding at the end the following new 
        paragraph:
            ``(24) The institution will, as calculated in accordance 
        with subsection (f)(1), have not less than 10 percent of its 
        revenues from sources other than funds provided under this 
        title, or will be subject to the sanctions described in 
        subsection (f)(2).''.
            (2) Implementation.--Section 487 is further amended by 
        adding at the end the following new subsection:
    ``(f) Implementation of Non-Title IV Revenue Requirement.--
            ``(1) Calculation.--In carrying out subsection (a)(24), an 
        institution shall use the cash basis of accounting and count 
        the following funds toward the 10 percent of revenues from 
        sources of funds other than funds provided under this title:
                    ``(A) funds used by students to pay tuition, fees, 
                and other institutional charges from sources other than 
                funds provided under this title as long as the 
                institution can reasonably demonstrate that such funds 
                were used for such purposes;
                    ``(B) institutional funds used to satisfy matching-
                fund requirements for programs under this title;
                    ``(C) funds used by a student from savings plans 
                for educational expenses established by or on behalf of 
                the student and which qualify for special tax treatment 
                under the Internal Revenue Code of 1986;
                    ``(D) funds paid by a student, or on behalf of a 
                student by a party other than the institution, for an 
                education or training program that is not eligible for 
                funds under this title, so long as the program is 
                approved or licensed by the appropriate State agency or 
                an accrediting agency recognized by the Secretary;
                    ``(E) institutional aid, as follows:
                            ``(i) in the case of institutional loans, 
                        only the amount of loan repayments received 
                        during the fiscal year;
                            ``(ii) in the case of institutional 
                        scholarships, only those provided by the 
                        institution in the form of monetary aid based 
                        upon the academic achievements or financial 
                        need of students, and disbursed during the 
                        fiscal year from an established restricted 
                        account; and
                            ``(iii) in the case of tuition discounts, 
                        only those tuition discounts based upon the 
                        academic achievement or financial need of the 
                        students; and
                    ``(F) funds generated by the institution from 
                institutional activities that are necessary for the 
                education and training of the institution's students, 
                if such activities are--
                            ``(i) conducted under the control of the 
                        institution;
                            ``(ii) performed under the supervision of a 
                        member of the institution's faculty; and
                            ``(iii) required to be performed by all 
                        students in a specific educational program at 
                        the institution.
            ``(2) Sanctions.--An institution that fails to meet the 
        requirements of subsection (a)(24) for 3 consecutive years 
        shall become ineligible to participate in the programs 
        authorized by this title. In addition to such other means of 
        enforcing the requirements of this title as may be available to 
        the Secretary, if an institution fails to meet the requirements 
        of subsection (a)(24) in any year, the Secretary may impose one 
        or more of the following sanctions on the institution:
                    ``(A) Place the institution on provisional 
                certification in accordance with section 498(h) until 
                the institution demonstrates, to the satisfaction of 
                the Secretary, that it is in compliance with subsection 
                (a)(24).
                    ``(B) Require such other increased monitoring and 
                reporting requirements as the Secretary determines 
                necessary until the institution demonstrates, to the 
                satisfaction of the Secretary, that it is in compliance 
                with subsection (a)(24).
            ``(3) Publication on cool website.--The Secretary shall 
        identify, on the College Opportunities On-Line website 
        established pursuant to section 131(b), any institution that 
        fails to meet the requirements of subsection (a)(24) in any 
        year as an institution that is failing to meet the minimum non-
        Federal source of revenue requirements of that subsection.''.
    (c) Reports on Disciplinary Proceedings.--
            (1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
        further amended by adding after paragraph (24), as added by 
        subsection (b) of this section, the following new paragraph:
            ``(25) The institution will disclose to the alleged victim 
        of any crime of violence (as that term is defined in section 16 
        of title 18), or a nonforcible sex offense, the final results 
        of any disciplinary proceeding conducted by such institution 
        against a student who is the alleged perpetrator of such crime 
        or offense with respect to such crime or offense. If the 
        alleged victim of such crime or offense is deceased, the next 
        of kin of such victim shall be treated as the alleged victim 
        for purposes of this paragraph.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any disciplinary proceeding 
        conducted by such institution on or after one year after the 
        date of enactment of this Act.
    (d) Code of Conduct and Preferred Lender List.--Section 487(a) is 
further amended by adding after paragraph (25) (as added by subsection 
(c) of this section) the following new paragraphs:
            ``(26) Code of conduct.--
                    ``(A) In general.--The institution will establish, 
                follow, and enforce a code of conduct regarding student 
                loans that includes not less than the following:
                            ``(i) Revenue sharing prohibition.--The 
                        institution is prohibited from receiving 
                        anything of value from any lender in exchange 
                        for any advantage sought by the lender to make 
                        educational loans to a student enrolled, or who 
                        is expected to be enrolled, at the institution, 
                        except that an institution shall not be 
                        prohibited from receiving a philanthropic 
                        contribution from a lender if the contribution 
                        is not made in exchange for any such advantage.
                            ``(ii) Gift and trip prohibition.--Any 
                        employee who is employed in the financial aid 
                        office of the institution, or who otherwise has 
                        responsibilities with respect to educational 
                        loans or other financial aid of the 
                        institution, is prohibited from taking from any 
                        lender any gift or trip worth more than nominal 
                        value, except for reasonable expenses for 
                        professional development that will improve the 
                        efficiency and effectiveness of programs under 
                        this title and for domestic travel to such 
                        professional development.
                            ``(iii) Contracting arrangements.--Any 
                        employee who is employed in the financial aid 
                        office of the institution, or who otherwise has 
                        responsibilities with respect to educational 
                        loans or other financial aid of the 
                        institution, shall be prohibited from entering 
                        into any type of consulting arrangement or 
                        other contract to provide services to a lender.
                            ``(iv) Advisory board compensation.--Any 
                        employee who is employed in the financial aid 
                        office of the institution, or who otherwise has 
                        responsibilities with respect to educational 
                        loans or other student financial aid of the 
                        institution, and who serves on an advisory 
                        board, commission, or group established by a 
                        lender or group of lenders shall be prohibited 
                        from receiving anything of value from the 
                        lender or group of lenders, except that the 
                        employee may be reimbursed for reasonable 
                        expenses incurred in serving on such advisory 
                        board, commission or group.
                            ``(v) Interaction with borrowers.--The 
                        institution will not--
                                    ``(I) for any first-time borrower, 
                                assign, through award packaging or 
                                other methods, the borrower's loan to a 
                                particular lender; and
                                    ``(II) refuse to certify, or, delay 
                                certification of, any loan in 
                                accordance with paragraph (6) based on 
                                the borrower's selection of a 
                                particular lender or guaranty agency.
                    ``(B) Designation.--The institution will designate 
                an individual who shall be responsible for signing an 
                annual attestation on behalf of the institution that 
                the institution agrees to, and is in compliance with, 
                the requirements of the code of conduct described in 
                this paragraph. Such individual shall be the chief 
                executive officer, chief operating officer, chief 
                financial officer, or comparable official, of the 
                institution, and shall annually submit the signed 
                attestation to the Secretary.
                    ``(C) Availability.--The institution will make the 
                code of conduct widely available to the institution's 
                faculty members, students, and parents through a 
                variety of means, including the institution's website.
            ``(27) Preferred lender lists.--
                    ``(A) In general.--In the case of an institution 
                (including an employee or agent of an institution) that 
                maintains a preferred lender list, in print or any 
                other medium, through which the institution recommends 
                one or more specific lenders for loans made under part 
                B to the students attending the institution (or the 
                parents of such students), the institution will--
                            ``(i) clearly and fully disclose on the 
                        preferred lender list--
                                    ``(I) why the institution has 
                                included each lender as a preferred 
                                lender, especially with respect to 
                                terms and conditions favorable to the 
                                borrower; and
                                    ``(II) that the students attending 
                                the institution (or the parents of such 
                                students) do not have to borrow from a 
                                lender on the preferred lender list;
                            ``(ii) ensure, through the use of the list 
                        provided by the Secretary under subparagraph 
                        (C), that--
                                    ``(I) there are not less than 3 
                                lenders named on the preferred lending 
                                list that are not affiliates of each 
                                other; and
                                    ``(II) the preferred lender list--
                                            ``(aa) specifically 
                                        indicates, for each lender on 
                                        the list, whether the lender is 
                                        or is not an affiliate of each 
                                        other lender on the list; and
                                            ``(bb) if the lender is an 
                                        affiliate of another lender on 
                                        the list, describes the 
                                        specifics of such affiliation; 
                                        and
                            ``(iii) establish a process to ensure that 
                        lenders are placed upon the preferred lender 
                        list on the basis of the benefits provided to 
                        borrowers, including --
                                    ``(I) highly competitive interest 
                                rates, terms, or conditions for loans 
                                made under part B;
                                    ``(II) high-quality customer 
                                service for such loans; or
                                    ``(III) additional benefits beyond 
                                the standard terms and conditions for 
                                such loans.
                    ``(B) Definition of affiliate; control.--
                            ``(i) Definition of affiliate.--For the 
                        purposes of subparagraph (A)(ii) the term 
                        `affiliate' means a person that controls, is 
                        controlled by, or is under common control with, 
                        another person.
                            ``(ii) Control.--For purposes of 
                        subparagraph (A)(ii), a person has control over 
                        another person if--
                                    ``(I) the person directly or 
                                indirectly, or acting through 1 or more 
                                others, owns, controls, or has the 
                                power to vote 5 percent or more of any 
                                class of voting securities of such 
                                other person;
                                    ``(II) the person controls, in any 
                                manner, the election of a majority of 
                                the directors or trustees of such other 
                                person; or
                                    ``(III) the Secretary determines 
                                (after notice and opportunity for a 
                                hearing) that the person directly or 
                                indirectly exercises a controlling 
                                interest over the management or 
                                policies of such other person.
                    ``(C) List of lender affiliates.--The Secretary, in 
                consultation with the Director of the Federal Deposit 
                Insurance Corporation, shall maintain and update a list 
                of lender affiliates of all eligible lenders, and shall 
                provide such list to the eligible institutions for use 
                in carrying out subparagraph (A).''.
    (e) Audit Requirements.--Section 487(c)(1)(A)(i) (20 U.S.C. 
1094(c)(1)(A)(i)) is amended by inserting before the semicolon at the 
end the following: ``, except that the Secretary may modify the 
requirements of this clause with respect to institutions of higher 
education that are foreign institutions, and may waive such 
requirements with respect to a foreign institution whose students 
receive less than $500,000 in loans under this title during the award 
year preceding the audit period''.
    (f) Enforcement of the Code of Conduct.--Section 487 (20 U.S.C. 
1094) is further amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Violation of Code of Conduct Regarding Student Loans.--
            ``(1) In general.--Upon a finding by the Secretary, after 
        reasonable notice and an opportunity for a hearing, that an 
        institution of higher education that has entered into a program 
        participation agreement with the Secretary under subsection (a) 
        willfully contravened the institution's attestation of 
        compliance with the provisions of subsection (a)(26), the 
        Secretary may impose a penalty described in paragraph (2).
            ``(2) Penalties.--A violation of paragraph (1) shall result 
        in the limitation, suspension, or termination of the 
        eligibility of the institution for the loan programs under this 
        title.''.

SEC. 488. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS.

    Part G is further amended as follows:
            (1) Section 483(d) (20 U.S.C. 1090(d)) is amended by 
        striking ``that is authorized under section 685(d)(2)(C)'' and 
        inserting ``, or another appropriate provider of technical 
        assistance and information on postsecondary educational 
        services, that is supported under section 663''.
            (2) Section 484 (20 U.S.C. 1091) is amended--
                    (A) in subsection (a)(4), by striking 
                ``certification,,'' and inserting ``certification,''; 
                and
                    (B) in subsection (b)(2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``section 428A'' and inserting 
                        ``section 428H'';
                            (ii) in subparagraph (A), by inserting 
                        ``and'' after the semicolon at the end thereof;
                            (iii) in subparagraph (B), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking subparagraph (C).
            (3) Section 484A(b)(2) (20 U.S.C. 1091a(b)(2)) is amended 
        by striking ``part B of this title'' and inserting ``part B, D, 
        or E of this title''.
            (4) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
                    (A) by redesignating paragraphs (6) through (10) as 
                paragraphs (7) through (11), respectively;
                    (B) by redesignating the paragraph (5) (as added by 
                section 2008 of Public Law 101-239) as paragraph (6); 
                and
                    (C) in paragraph (5) (as added by section 204(3) of 
                the National Community Service Act of 1990 (Public Law 
                101-610))--
                            (i) by striking ``(22 U.S.C. 2501 et 
                        seq.)),'' and inserting ``(22 U.S.C. 2501 et 
                        seq.),''; and
                            (ii) by striking the period at the end 
                        thereof and inserting a semicolon.
            (5) Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``Higher Education 
                        Amendments of 1998'' and inserting ``College 
                        Access and Opportunity Act of 2007''; and
                            (ii) by striking the second sentence;
                    (B) in paragraph (2)--
                            (i) by striking ``1993 through 1998'' and 
                        inserting ``1998 through 2006'';
                            (ii) by striking ``(as such section'' and 
                        all that follows through ``Amendments of 
                        1998)''; and
                            (iii) by striking ``Higher Education 
                        Amendments of 1998.'' and inserting ``College 
                        Access and Opportunity Act of 2007.''; and
                    (C) in paragraph (3)(A)--
                            (i) by striking ``Upon the submission'' and 
                        all that follows through ``limited number of 
                        additional institutions for voluntary 
                        participation'' and inserting ``The Secretary 
                        is authorized to continue the voluntary 
                        participation of institutions participating as 
                        of July 1, 2007,''; and
                            (ii) by inserting before the period at the 
                        end the following: ``, and shall continue the 
                        participation of any such institution unless 
                        the Secretary determines that such 
                        institution's participation has not been 
                        successful in carrying out the purposes of this 
                        section''.
            (6) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding 
        at the end the following new paragraph:
    ``(3) The appointment of members under subparagraphs (A) and (B) of 
paragraph (1) shall be effective upon publication of the appointment in 
the Congressional Record.''.
            (7) Section 491(h)(1) (20 U.S.C. 1098(h)(1)) is amended by 
        striking ``the rate authorized for GS-18 of the General 
        Schedule'' and inserting ``the maximum rate payable under 
        section 5376 of such title''.
            (8) Section 491(k) (20 U.S.C. 1098(k)) is amended by 
        striking ``2004'' and inserting ``2012''.
            (9) Section 493A (20 U.S.C. 1098c) is repealed.
            (10) Section 498 (20 U.S.C. 1099c) is amended--
                    (A) in subsection (c)(2), by striking ``for 
                profit,'' and inserting ``for-profit,''; and
                    (B) in subsection (d)(1)(B), by inserting ``and'' 
                after the semicolon at the end thereof.

SEC. 489. PELL GRANT ELIGIBILITY PROVISION.

    Section 484 is amended by adding at the end the following new 
subsection:
    ``(s) Pell Grant Eligibility Provision.--A student who does not 
have a certificate of graduation from a school providing secondary 
education may be eligible for assistance under subpart 1 of Part A of 
this title for no more than two academic years, if such student--
            ``(1) meets all eligibility requirements for such 
        assistance (other than not being enrolled in an elementary or 
        secondary school) and is an academically gifted and talented 
        student, as defined in section 9101 of the Elementary and 
        Secondary Education Act;
            ``(2) is in the junior or senior year of secondary school, 
        and has not received any assistance under this title;
            ``(3) is selected for participation and is enrolled full-
        time and resides on campus in a residential college gifted 
        student program for early enrollment, leading to fully 
        transferable college academic credit;
            ``(4) does not and will not participate in any secondary 
        school course work during or after such program; and
            ``(5) has entered into an agreement that, if the student 
        fails to complete the entirety of the academic program for 
        which assistance under subpart 1 of Part A of this title was 
        received, or participates in secondary school course work after 
        participating in such program, the student will repay all funds 
        received under such subpart pursuant to this subsection to the 
        Federal Government in accordance with regulations promulgated 
        by the Secretary.''.

                       PART H--PROGRAM INTEGRITY

SEC. 495. ACCREDITATION.

    (a) Standards for Accreditation.--Section 496(a) (20 U.S.C. 
1099b(a)) is amended--
            (1) in paragraph (2), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) is a State agency approved by the Secretary 
                for the purpose described in subparagraph (A) and the 
                State does not, for purposes of this title, directly or 
                indirectly--
                            ``(i) require any institution of higher 
                        education to obtain accreditation by such State 
                        agency, rather than another accrediting agency 
                        or association approved by the Secretary for 
                        the purpose described in subparagraph (A); or
                            ``(ii) provide any exemption or other 
                        privilege or benefit to any institution of 
                        higher education by reason of its accreditation 
                        by such State agency rather than another 
                        accrediting agency or association approved by 
                        the Secretary for the purpose described in 
                        subparagraph (A); or'';
            (2) in paragraph (4)--
                    (A) by inserting ``(A)'' after ``(4)'';
                    (B) by inserting after ``consistently applies and 
                enforces standards'' the following: ``that respect the 
                stated mission of the institution of higher education, 
                including religious missions, and'';
                    (C) by inserting ``and'' after the semicolon at the 
                end thereof; and
                    (D) by adding at the end the following new 
                subparagraph:
            ``(B) if such agency or association already has or seeks to 
        include within its scope of recognition the evaluation of the 
        quality of institutions or programs offering distance 
        education, such agency or association shall, in addition to 
        meeting the other requirements of this subpart, demonstrate to 
        the Secretary that--
                    ``(i) the accreditation agency's or association's 
                standards effectively address the quality of an 
                institution's distance education programs in the areas 
                identified in paragraph (5) of this subsection, except 
                that the agency or association shall not be required to 
                have separate standards, procedures, or policies for 
                the evaluation of distance education institutions or 
                programs in order to meet the requirements of this 
                subparagraph; and
                    ``(ii) the agency or association requires that an 
                institution that offers distance education programs to 
                have processes by which it establishes that the student 
                who registers in a distance education course or program 
                is the same student who participates, completes 
                academic work, and receives academic credit;'';
            (3) in paragraph (5)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) success with respect to student achievement 
                in relation to the institution's mission, including, as 
                appropriate, consideration of student academic 
                achievement as determined by the institution (in 
                accordance with standards of the accrediting agency or 
                association), retention, course and program completion, 
                State licensing examinations, and job placement rates, 
                and other student performance information selected by 
                the institution, particularly that information used by 
                the institution to evaluate or strengthen its 
                programs;''; and
                    (B) by amending subparagraph (E) to read as 
                follows:
                    ``(E) fiscal, administrative capacity, as 
                appropriate to the specified scale of operations, and, 
                for an agency or association where its approval for 
                such institution determines eligibility for student 
                assistance under this title, board governance, within 
                the context of the institution's mission;'';
            (4) by striking paragraph (6) and inserting the following:
            ``(6) such an agency or association shall establish and 
        apply review procedures throughout the accrediting process, 
        including evaluation and withdrawal proceedings that comply 
        with due process that provides for--
                    ``(A) adequate specification of requirements and 
                deficiencies at the institution of higher education or 
                program being examined;
                    ``(B) an opportunity for a written response by any 
                such institution to be included in the evaluation and 
                withdrawal proceedings;
                    ``(C) upon the written request of an institution, 
                an opportunity for the institution to appeal any 
                adverse action at a hearing prior to such action 
                becoming final before an appeals panel that--
                            ``(i) shall not include current members of 
                        the agency or association's underlying 
                        decision-making body that made the adverse 
                        decision; and
                            ``(ii) is subject to a conflict of interest 
                        of policy; and
                    ``(D) the right to representation by counsel for an 
                such institution;''; and
            (5) by striking paragraph (8) and inserting the following:
            ``(8) such agency or association shall make available to 
        the public and submit to the Secretary and the State licensing 
        or authorizing agency, together with the comments of the 
        affected institution, a summary of agency or association 
        actions, involving--
                    ``(A) final denial, withdrawal, suspension, or 
                termination of accreditation; and
                    ``(B) any other final adverse action taken with 
                respect to an institution.''.
    (b) Operating Procedures.--Section 496(c) (20 U.S.C. 1099b(c)) is 
amended--
            (1) by inserting ``(including those regarding distance 
        education)'' before the semicolon at the end of paragraph (1);
            (2) by striking ``and'' at the end of paragraph (5);
            (3) by striking the period at the end of paragraph (6) and 
        inserting a semicolon; and
            (4) by inserting after paragraph (6) the following new 
        paragraphs:
            ``(7) ensures that its onsite comprehensive reviews for 
        accreditation or reaccreditation include evaluation of the 
        substance of the information required in subparagraph (L) of 
        section 485(a)(1);
            ``(8) confirms as a part of its review for accreditation or 
        reaccreditation that the institution has transfer policies that 
        are publicly disclosed and specifically state whether the 
        institution denies a transfer of credit based solely on the 
        accreditation of the institution at which the credit was 
        earned;
            ``(9) develops a brief summary, available to the public, of 
        final adverse actions in accordance with the requirements of 
        subsection (a)(8);
            ``(10) monitors the enrollment growth of distance education 
        to ensure that an institution experiencing significant growth 
        has the capacity to serve its students effectively;
            ``(11) discloses publicly, on the agency's website or 
        through other similar dissemination--
                    ``(A) a list of the individuals who comprised the 
                evaluation teams during the prior calendar year for 
                each agency or association and the title and 
                institutional affiliation of such individuals, although 
                such list shall not be required to identify those 
                individuals who comprised the evaluation team used for 
                any specific institution;
                    ``(B) a description of the agency's or 
                association's process for selecting, preparing, and 
                evaluating such individuals; and
                    ``(C) any statements related to the accreditation 
                responsibilities of such individuals; and
            ``(12) reviews the record of student complaints resulting 
        from the student information process described in section 
        485(a)(1)(J).''.
    (c) Limitation, Suspension, and Termination of Recognition.--
Section 496(l) is amended by adding at the end the following new 
paragraph:
    ``(3) The Secretary shall provide an annual report to Congress on 
the status of any agency or association for which the Secretary has 
limited, suspended or terminated recognition under this subsection.''.
    (d) Program Review and Data.--Section 498A(b) (20 U.S.C. 1099c-
1(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (3) by adding at the end the following new paragraphs:
            ``(6) provide to the institution adequate opportunity to 
        review and respond to any program review report or audit 
        finding and underlying materials related thereto before any 
        final program review or audit determination is reached;
            ``(7) review and take into consideration the institution's 
        response in any final program review or audit determination, 
        and include in the final determination--
                    ``(A) a written statement addressing the 
                institution's response and stating the basis for such 
                final determination; and
                    ``(B) a copy of the institution's statement in 
                response, appropriately redacted to protect 
                confidential information;
            ``(8) maintain and preserve at all times the 
        confidentiality of any program review report or audit finding 
        until the requirements of paragraphs (6) and (7) are met, and 
        until a final program review or audit determination has been 
        issued, except to the extent required to comply with paragraph 
        (5), provided, however, that the Secretary shall promptly 
        disclose any and all program review reports and audit findings 
        to the institution under review; and
            ``(9) require that the authority to approve or issue any 
        program review report or audit finding, preliminary or 
        otherwise, that contains any finding, determination, or 
        proposed assessment that exceeds or may exceed $500,000 in 
        liabilities shall not be delegated to any official beyond the 
        Chief Operating Officer of Federal Student Aid.''.

SEC. 496. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN 
              STUDENT FINANCIAL AID PROGRAMS.

    Title IV is amended by adding at the end the following new section:

``SEC. 499. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN 
              STUDENT FINANCIAL AID PROGRAMS.

    ``(a) Purpose.--It is the purpose of this section to require the 
Secretary to commission a nonpartisan, comprehensive study on the 
prevention of fraud and abuse in title IV student financial aid 
programs, and to report the results of such study to Congress.
    ``(b) Scope of Report.--The study under this section shall 
thoroughly identify and address the following:
            ``(1) The impact of fraud and abuse in title IV student 
        financial aid programs upon students and taxpayers, and the 
        nature of such fraud and abuse.
            ``(2) The effectiveness of existing policies and 
        requirements under this Act that were put in place to prevent 
        fraud and abuse in title IV student financial aid programs, and 
        how such policies and requirements should be improved.
            ``(3) The extent to which existing protections against 
        fraud and abuse under this Act are adequately enforced, and how 
        enforcement should be strengthened.
            ``(4) Areas in which additional information is needed to 
        assess the effectiveness of current protections and enforcement 
        against fraud and abuse.
            ``(5) Existing policies and requirements under this Act 
        aimed at fraud and abuse that are ineffective, hinder 
        innovation, or could be eliminated without reducing 
        effectiveness.
            ``(6) New policies and enforcement, particularly those 
        suited for the current higher education marketplace, needed to 
        protect against fraud and abuse in title IV student financial 
        aid programs.
            ``(7) The extent to which States are implementing 
        regulations to protect students from fraud and abuse, and 
        whether changes to Federal law will preempt such regulations.
    ``(c) Report.--Not later than December 31, 2007, the Secretary, 
after an opportunity for both the Secretary and the Inspector General 
of the Department of Education to review the results of the study, 
shall transmit to Congress a report on the study conducted under this 
section. Such report shall--
            ``(1) include clear and specific recommendations for 
        legislative and regulatory actions that are likely to 
        significantly reduce the fraud and abuse in title IV student 
        financial aid programs that were identified pursuant to 
        subsection (b); and
            ``(2) include both the Secretary's and the Inspector 
        General's comments on the report.''.

SEC. 497. REPORT TO CONGRESS ON COMPLIANCE WITH THE PAPERWORK REDUCTION 
              ACT OF 1995.

    Title IV is further amended by adding after section 499, as added 
by section 496 of this Act, the following new section:

``SEC. 499A. REPORT TO CONGRESS ON THE COMPLIANCE OF THE STUDENT AID 
              APPLICATION PROCESS WITH THE REQUIREMENTS OF THE 
              PAPERWORK REDUCTION ACT OF 1995.

    ``(a) Study and Report.--The Secretary shall commission a 
nonpartisan, comprehensive study on the degree to which the student aid 
application process under title IV complies with the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 101 note). Not later one 
year after the date of the enactment of the College Access and 
Opportunity Act of 2006, the Secretary shall report the results of such 
study to the Congress.
    ``(b) Scope.--The study and report to the Congress under subsection 
(a) shall thoroughly identify and address the following:
            ``(1) The impact of the technical and computer literacy of 
        prospective college students on the existing electronic 
        capabilities offered by the student aid application process 
        under title IV, including the Free Application for Federal 
        Student Aid System (FAFSA).
            ``(2) The effectiveness of the policies and requirements of 
        the FAFSA system that are intended to reduce the need for paper 
        and ease the application process.
            ``(3) Areas in which the electronic system can be improved 
        to help facilitate a `one-stop shopping' goal for students 
        seeking financial assistance.''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. DEFINITIONAL CHANGES.

    Section 502(a) (20 U.S.C. 1101a(a)) is amended--
            (1) in paragraph (5)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of subparagraph (A);
                    (B) in subparagraph (B)--
                            (i) by striking ``at the time of 
                        application,''; and
                            (ii) by inserting ``at the end of the award 
                        year immediately preceding the date of 
                        application'' after ``Hispanic students'';
                    (C) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (D) by striking subparagraph (C); and
            (2) by striking paragraph (7).

SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STUDENTS.

    Section 511(c) (20 U.S.C. 1103(c)) is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (2) through (6); and
            (3) by inserting after paragraph (6) as so redesignated the 
        following new paragraph:
            ``(7) contain such assurances as the Secretary may require 
        that the institution has an enrollment of needy students as 
        required by section 502(b);''.

SEC. 503. ADDITIONAL AMENDMENTS.

    Title V is further amended--
            (1) in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by 
        redesignating clauses (v) and (vi) as clauses (vi) and (vii), 
        respectively, and inserting after clause (iv) the following new 
        clause:
                            ``(v) which provides a program of not less 
                        than 2 years that is acceptable for full credit 
                        toward a bachelor's degree;'';
            (2) in section 503(b) (20 U.S.C. 1101b(b))--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) Construction, maintenance, renovation, and 
        improvement in classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services, and the 
        acquisition of real property adjacent to the campus of the 
        institution on which to construct such facilities.'';
                    (B) by amending paragraph (12) to read as follows:
            ``(12) Establishing community outreach programs and 
        collaborative partnerships between Hispanic-serving 
        institutions and local elementary or secondary schools. Such 
        partnerships may include mentoring, tutoring, or other 
        instructional opportunities that will boost student academic 
        achievement and assist elementary and secondary school students 
        in developing the academic skills and the interest to pursue 
        postsecondary education.'';
                    (C) by redesignating paragraphs (5) through (14) as 
                paragraphs (6) through (15), respectively; and
                    (D) by inserting after paragraph (4) the following:
            ``(5) Education or counseling services designed to improve 
        the financial literacy and economic literacy of students and, 
        as appropriate, their parents.'';
            (3) in section 504(a) (20 U.S.C. 1101c(a))--
                    (A) by striking the following:
    ``(a) Award Period.--
            ``(1) In general.--The Secretary'' and inserting the 
        following:
    ``(a) Award Period.--The Secretary''; and
                    (B) by striking paragraph (2); and
            (4) in section 514(c) (20 U.S.C. 1103c(c)), by striking 
        ``section 505'' and inserting ``section 504''.

SEC. 504. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.

    (a) Establishment of Program.--Title V is amended--
            (1) by redesignating part B as part C;
            (2) by redesignating sections 511 through 518 as sections 
        521 through 528, respectively; and
            (3) by inserting after section 505 (20 U.S.C. 1101d) the 
        following new part:

   ``PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                               AMERICANS

``SEC. 511. PURPOSES.

    ``The purposes of this part are--
            ``(1) to expand postbaccalaureate educational opportunities 
        for, and improve the academic attainment of, Hispanic students; 
        and
            ``(2) to expand the postbaccalaureate academic offerings 
        and enhance the program quality in the institutions that are 
        educating the majority of Hispanic college students and helping 
        large numbers of Hispanic and low-income students complete 
        postsecondary degrees.

``SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY.

    ``(a) Program Authorized.--Subject to the availability of funds 
appropriated to carry out this part, the Secretary shall award 
competitive grants to Hispanic-serving institutions determined by the 
Secretary to be making substantive contributions to graduate 
educational opportunities for Hispanic students.
    ``(b) Eligibility.--For the purposes of this part, an `eligible 
institution' means an institution of higher education that--
            ``(1) is an eligible institution under section 502(a)(2); 
        and
            ``(2) offers a postbaccalaureate certificate or degree 
        granting program.

``SEC. 513. AUTHORIZED ACTIVITIES.

    ``Grants awarded under this part shall be used for one or more of 
the following activities:
            ``(1) Purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, including 
        instructional and research purposes.
            ``(2) Construction, maintenance, renovation, and 
        improvement of classrooms, libraries, laboratories, and other 
        instructional facilities, including purchase or rental of 
        telecommunications technology equipment or services.
            ``(3) Purchase of library books, periodicals, technical and 
        other scientific journals, microfilm, microfiche, and other 
        educational materials, including telecommunications program 
        materials.
            ``(4) Support for needy postbaccalaureate students 
        including outreach, academic support services, mentoring, 
        scholarships, fellowships, and other financial assistance to 
        permit the enrollment of such students in postbaccalaureate 
        certificate and degree granting programs.
            ``(5) Support of faculty exchanges, faculty development, 
        faculty research, curriculum development, and academic 
        instruction.
            ``(6) Creating or improving facilities for Internet or 
        other distance learning academic instruction capabilities, 
        including purchase or rental of telecommunications technology 
        equipment or services.
            ``(7) Collaboration with other institutions of higher 
        education to expand postbaccalaureate certificate and degree 
        offerings.
            ``(8) Other activities proposed in the application 
        submitted pursuant to section 514 that--
                    ``(A) contribute to carrying out the purposes of 
                this part; and
                    ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.

``SEC. 514. APPLICATION AND DURATION.

    ``(a) Application.--Any eligible institution may apply for a grant 
under this part by submitting an application to the Secretary at such 
time and in such manner as determined by the Secretary. Such 
application shall demonstrate how the grant funds will be used to 
improve postbaccalaureate education opportunities in programs and 
professions in which Hispanic Americans are underrepresented.
    ``(b) Duration.--Grants under this part shall be awarded for a 
period not to exceed 5 years.
    ``(c) Limitation.--The Secretary shall not award more than one 
grant under this part in any fiscal year to any Hispanic-serving 
institution.''.
    (b) Cooperative Arrangements.--Section 524(a) (as redesignated by 
subsection (a)(2)) (20 U.S.C. 1103c(a)) is amended by inserting ``and 
section 513'' after ``section 503''.

SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

    Subsection (a) of section 528 (as redesignated by section 504(a)(2) 
of this Act) (20 U.S.C. 1103g) is amended to read as follows:
    ``(a) Authorizations.--
            ``(1) Part a.--There are authorized to be appropriated to 
        carry out part A and part C of this title $96,000,000 for 
        fiscal year 2008 and such sums as may be necessary for each of 
        the 5 succeeding fiscal years.
            ``(2) Part b.--There are authorized to be appropriated to 
        carry out part B of this title $59,000,000 for fiscal year 2008 
        and such sums as may be necessary for each of the 5 succeeding 
        fiscal years.''.

                     TITLE VI--TITLE VI AMENDMENTS

SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.

    (a) Findings and Purposes.--Section 601 (20 U.S.C. 1121) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``post-Cold War'' in paragraph (3);
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively;
                    (C) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) The events and aftermath of September 11, 2001, have 
        underscored the need for the Nation to strengthen and enhance 
        American knowledge of international relations, world regions, 
        and foreign languages. Homeland security and effective United 
        States engagement abroad depend upon an increased number of 
        Americans who have received such training and are willing to 
        serve their Nation.''; and
                    (D) by inserting after paragraph (6) the following 
                new paragraphs:
            ``(7) It is crucial that we expand the number of 
        individuals in the United States mastering languages such as 
        Arabic, Chinese, Russian, Hindi and Farsi, and the number of 
        advanced-level speakers of those languages.
            ``(8) The weaknesses in teaching and learning foreign 
        languages can be addressed by starting language learning at a 
        younger age and expanding opportunities for foreign language 
        education throughout formal schooling, including the 
        postsecondary level.'';
            (2) in subsection (b)(1)--
                    (A) by striking ``; and'' at the end of 
                subparagraph (D) and inserting ``, including through 
                linkages overseas with institutions of higher education 
                and relevant organizations that contribute to the 
                educational programs assisted under this part;'';
                    (B) by inserting ``and'' after the semicolon at the 
                end of subparagraph (E);
                    (C) by inserting after such subparagraph (E) the 
                following new subparagraph:
            ``(F) to assist the national effort to educate and train 
        citizens to participate in the efforts of homeland security;'';
            (3) in subsection (b)(2) strike ``and'' at the end;
            (4) in subsection (b)(3)--
                    (A) by inserting ``reinforce and'' before 
                ``coordinate'';
                    (B) by inserting ``, and international business and 
                trade competitiveness'' before the period; and
                    (C) by striking the period at the end and inserting 
                ``and''; and
            (5) by adding at the end the following:
            ``(4) to significantly increase the opportunities to study, 
        and the number of students in the United States who achieve the 
        highest level of proficiency in, foreign languages critical to 
        the security and competitiveness of the Nation.''.
    (b) Graduate and Undergraduate Language and Area Centers and 
Programs.--Section 602(a) (20 U.S.C. 1122(a)) is amended--
            (1) in paragraph (1), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--The Secretary is authorized to 
                make grants to institutions of higher education or 
                consortia of such institutions for the purpose of 
                establishing, strengthening, and operating--
                            ``(i) comprehensive foreign language and 
                        area or international studies centers and 
                        programs; and
                            ``(ii) a diverse network of undergraduate 
                        foreign language and area or international 
                        studies centers and programs.'';
            (2) in paragraph (2)--
                    (A) by striking ``and'' at the end of subparagraph 
                (G);
                    (B) by striking the period at the end of 
                subparagraph (H) and inserting a semicolon; and
                    (C) by inserting after subparagraph (H) the 
                following new subparagraphs:
                    ``(I) supporting instructors of the less commonly 
                taught languages;
                    ``(J) widely disseminating materials developed by 
                the center or program to local educational agencies and 
                public and private elementary and secondary education 
                schools, and institutions of higher education, 
                presented from diverse perspectives and reflective of a 
                wide range of views on the subject matter, except that 
                no more than 50 percent of funds awarded to an 
                institution of higher education or consortia of such 
                institutions for purposes under this title may be 
                associated with the costs of dissemination; and
                    ``(K) projects that support in students an 
                understanding of science and technology in coordination 
                with foreign language proficiency.''; and
            (3) in paragraph (4)--
                    (A) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Partnerships or programs of linkage and 
                outreach with 2-year and 4-year colleges and 
                universities, including colleges of education and 
                teacher professional development programs.'';
                    (B) in subparagraph (C), by striking ``Programs of 
                linkage or outreach'' and inserting ``Partnerships or 
                programs of linkage and outreach'';
                    (C) in subparagraph (E)--
                            (i) by striking ``foreign area'' and 
                        inserting ``area studies'';
                            (ii) by striking ``of linkage and 
                        outreach''; and
                            (iii) by striking ``(C), and (D)'' and 
                        inserting ``(D), and (E)'';
                    (D) by redesignating subparagraphs (C), (D), and 
                (E) as subparagraphs (D), (E), and (F), respectively; 
                and
                    (E) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) Partnerships with local educational agencies 
                and public and private elementary and secondary 
                education schools that are designed to increase student 
                academic achievement in foreign language and knowledge 
                of world regions, and to facilitate the wide 
                dissemination of materials related to area studies, 
                foreign languages, and international studies that are 
                reflective of a wide range of views on the subject 
                matter.''.
    (c) Language Resource Centers.--Section 603(c) (20 U.S.C. 1123(c)) 
is amended by inserting ``reflect the purposes of this part and'' after 
``shall''.
    (d) Undergraduate International Studies and Foreign Language 
Programs.--Section 604 (20 U.S.C. 1124) is amended--
            (1) in subsection (a)(1), by striking ``combinations'' each 
        place it appears and inserting ``consortia'';
            (2) in subsection (a)(2)--
                    (A) in subparagraph (B)(ii), by striking ``teacher 
                training'' and inserting ``teacher professional 
                development'';
                    (B) by redesignating subparagraphs (I) through (M) 
                as subparagraphs (J) through (N), respectively;
                    (C) by inserting after subparagraph (H) the 
                following new subparagraph:
                    ``(I) the provision of grants for educational 
                programs abroad that are closely linked to the 
                program's overall goals and have the purpose of 
                promoting foreign language fluency and knowledge of 
                world regions, except that not more than 10 percent of 
                a grant recipient's funds may be used for this 
                purpose;''; and
                    (D) in subparagraph (M)(ii) (as redesignated by 
                subparagraph (B) of this paragraph), by striking 
                ``elementary and secondary education institutions'' and 
                inserting ``local educational agencies and public and 
                private elementary and secondary education schools'';
            (3) in subsection (a)(4)(B), by inserting ``that 
        demonstrates a need for a waiver or reduction'' before the 
        period at the end;
            (4) in subsection (a)(6), by inserting ``reflect the 
        purposes of this part and'' after ``shall'';
            (5) in subsection (a)(8), by striking ``may'' and inserting 
        ``shall''; and
            (6) by striking subsection (c).
    (e) Research; Studies; Annual Report.--Section 605(a) (20 U.S.C. 
1125(a)) is amended by inserting before the period at the end of the 
first sentence the following: ``, including the systematic collection, 
analysis, and dissemination of data''.
    (f) Technological Innovation and Cooperation for Foreign 
Information Access.--Section 606 (20 U.S.C. 1126) is amended--
            (1) in subsection (a)--
                    (A) by striking ``or consortia of such institutions 
                or libraries'' and inserting ``museums, or consortia of 
                such entities'';
                    (B) by striking ``new''; and
                    (C) by inserting ``from foreign sources'' after 
                ``disseminate information'';
            (2) in subsection (b)--
                    (A) by inserting ``acquire and'' before 
                ``facilitate access'' in paragraph (1);
                    (B) by striking ``new means of'' in paragraph (3) 
                and inserting ``new means and standards for'';
                    (C) by striking ``and'' at the end of paragraph 
                (6);
                    (D) by striking the period at the end of paragraph 
                (7) and by inserting a semicolon; and
                    (E) by inserting after paragraph (7) the following 
                new paragraphs:
            ``(8) to establish linkages between grant recipients under 
        subsection (a) with libraries, museums, organizations, or 
        institutions of higher education located overseas to facilitate 
        carrying out the purposes of this section; and
            ``(9) to carry out other activities deemed by the Secretary 
        to be consistent with the purposes of this section.''; and
            (3) by adding at the end the following new subsection:
    ``(e) Special Rule.--The Secretary may waive or reduce the required 
non-Federal share for institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction.''.
    (g) International and Foreign Language Studies.--Part A of title VI 
(20 U.S.C. 1121 et seq.) is amended--
            (1) by redesignating sections 607 through 614 as sections 
        608 through 615, respectively; and
            (2) by inserting after section 606 the following:

``SEC. 607. ADVANCING AMERICA THROUGH FOREIGN LANGUAGE PARTNERSHIPS.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to institutions of higher education, in partnership with 
        one or more local educational agencies, to establish 
        articulated programs of study in critical-need foreign 
        languages that will enable successful students to advance from 
        elementary school through college to achieve a superior level 
        of proficiency in those languages.
            ``(2) Grant period.--A grant awarded under paragraph (1) 
        shall be for a period of not more than five years. A grant may 
        be renewed for not more than two additional five-year periods, 
        if the Secretary determines that the grantee's program is 
        effective and the renewal will best serve the purpose of this 
        program.
    ``(b) Definitions.--As used in this section:
            ``(1) The term `critical-need foreign languages' means 
        foreign languages, such as Arabic, Chinese, Russian, Hindi, and 
        Farsi, determined by the Secretary to be most critical for the 
        national security of the United States.
            ``(2) The term `superior level of proficiency' means level 
        (3), the professional working level, as measured by the Federal 
        Interagency Language Roundtable (ILR) or the American Council 
        on the Teaching of Foreign Languages (ACTFL).
    ``(c) Applications.--
            ``(1) In general.--Any institution of higher education that 
        desires to receive 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.
            ``(2) Contents.--Each application shall--
                    ``(A) identify each local educational agency 
                partner, including contact information and letters of 
                commitment, and describe each such partner's 
                responsibilities (including how they will be involved 
                in planning and implementing program curriculum, what 
                resources they will provide, and how they will ensure 
                continuity of student progress from elementary school 
                to the postsecondary level);
                    ``(B) describe how an articulated curriculum for 
                students will be developed and implemented, including 
                how pedagogical philosophy, goals, and approaches will 
                be consistent throughout all educational levels of the 
                program;
                    ``(C) identify target proficiency levels for 
                students at critical benchmarks (such as grades 4, 8, 
                and 12), and describe how progress toward those 
                proficiency levels will be assessed at the benchmarks 
                and how the project will use the results of the 
                assessments to ensure continuous progress toward 
                achieving a superior level of proficiency at the 
                postsecondary level;
                    ``(D) describe how the applicant will--
                            ``(i) ensure that students entering college 
                        from a program supported under this part will 
                        be assessed and enabled to progress to a 
                        superior level of proficiency;
                            ``(ii) address the needs of students 
                        already at, or near, the superior level of 
                        proficiency, which may include diagnostic 
                        assessments for placement purposes, customized 
                        and individualized language learning 
                        opportunities, and experimental and 
                        interdisciplinary language learning; and
                            ``(iii) identify and describe how it will 
                        partner with other institutions of higher 
                        education to provide participating students 
                        with multiple options for postsecondary 
                        education consistent with the purpose of this 
                        part; and
                    ``(E) describe how the applicant will support and 
                continue the program after the grant has expired, 
                including how it will seek support from other sources, 
                such as State and local government, foundations, and 
                the private sector.
    ``(d) Uses of Funds.--Funds awarded under this part shall be used 
to develop and implement programs at the elementary through 
postsecondary school levels consistent with the purpose of this part by 
carrying out one or more of the following activities:
            ``(1) To recruit and develop teachers directly related to 
        the purpose of this part at the elementary through high school 
        levels.
            ``(2) To provide innovative opportunities for maximum 
        language exposure for students in the program, such as the 
        creation of immersion environments (like language houses, 
        language tables, and immersion classrooms, and weekend and 
        summer experiences).
    ``(e) Matching.--
            ``(1) In general.--
                    ``(A) Contribution.--In each fiscal year, a grantee 
                shall provide a non-Federal contribution in an amount 
                equal to 10 percent of the total amount of the grant 
                award for that fiscal year.
                    ``(B) Waiver.--The Secretary may waive the 
                requirement of subparagraph (A), in any fiscal year, if 
                the Secretary determines that--
                            ``(i) the application of the matching 
                        requirement will result in serious hardship for 
                        the grantee; or
                            ``(ii) it will best serve the purpose of 
                        this program.
            ``(2) Composition.--A grantee's non-Federal contribution 
        required under paragraph (1) may be provided in cash or in 
        kind, fairly evaluated, and shall include only non-Federal 
        funds that are used in a manner consistent with the purpose of 
        this section.
    ``(f) Program Evaluation.--
            ``(1) In general.--The Secretary may reserve not more than 
        five percent of the total amount appropriated for this part for 
        any fiscal year to evaluate the program under this part.
            ``(2) Reports.--The Secretary shall promptly report to 
        Congress on the results of any program evaluation conducted 
        under this subsection.''.
    (h) Selection of Grant Recipients.--Section 608(b) (20 U.S.C. 
1127(b)), as redesignated by subsection (g)(1) of this section, is 
amended--
            (1) by striking ``objectives'' and inserting ``missions''; 
        and
            (2) by adding at the end the following new sentence: ``In 
        keeping with the purposes of this part, the Secretary shall 
        take into account the degree to which activities of centers, 
        programs, and fellowships at institutions of higher education 
        address national interests, generate and disseminate 
        information, and foster debate on international issues from 
        diverse perspectives.''.
    (i) Equitable Distribution.--Section 609(a) (20 U.S.C. 1128(a)), as 
redesignated by subsection (g)(1) of this section, is amended by adding 
at the end the following new sentence: ``Grants made under section 602 
shall also reflect the purposes of this part.''.
    (j) Authorization of Appropriations.--Section 611 (20 U.S.C. 
1128b), as redesignated by subsection (g)(1) of this section, is 
amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (k) Conforming Amendments.--
            (1) Sections 603(a) and 604(a)(5) (20 U.S.C. 1123(a), 
        1124(a)(5)) and section 613 (20 U.S.C. 1130-1), as redesignated 
        by subsection (g)(1) of this section, are each amended by 
        striking ``combinations'' each place it appears and inserting 
        ``consortia''.
            (2) Section 613 (20 U.S.C. 1130-1), as redesignated by 
        subsection (g)(1) of this section, is amended by striking 
        ``combination'' each place it appears and inserting 
        ``consortium''.
    (l) Sense of the Congress.--It is the sense of the Congress that 
due to the diplomatic, economic, and military importance of China and 
the Middle East, international exchange and foreign language education 
programs under the Higher Education Act of 1965 should focus on the 
learning of Chinese and Arabic language and culture.

SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

    (a) Centers for International Business Education.--Section 613 (20 
U.S.C. 1130-1), as redesignated by section 601(g)(1) of this title, is 
amended--
            (1) in subsection (c)(1)(D), by inserting ``(including 
        those that are eligible to receive assistance under part A or B 
        of title III or under title V)'' after ``other institutions of 
        higher education''; and
            (2) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(5) Special rule.--The Secretary may waive or reduce the 
        required non-Federal share for institutions that--
                    ``(A) are eligible to receive assistance under part 
                A or B of title III or under title V; and
                    ``(B) have submitted a grant application under this 
                section that demonstrates a need for a waiver or 
                reduction, as determined by the Secretary.''.
    (b) Education and Training Programs.--Section 614 (20 U.S.C. 
1130a), as redesignated by section 601(g)(1) of this title, is amended 
by adding at the end the following new subsection:
    ``(e) Special Rule.--The Secretary may waive or reduce the required 
non-Federal share for institutions that--
            ``(1) are eligible to receive assistance under part A or B 
        of title III or under title V; and
            ``(2) have submitted a grant application under this section 
        that demonstrates a need for a waiver or reduction, as 
        determined by the Secretary.''.
    (c) Authorization of Appropriations.--Section 615 (20 U.S.C. 
1130b), as redesignated by section 601(g)(1) of this title, is 
amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2008''; and
            (2) by striking ``4 succeeding'' each place it appears and 
        inserting ``5 succeeding''.

SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

    (a) Foreign Service Professional Development.--Section 621 (20 
U.S.C. 1131) is amended--
            (1) by striking the heading of such section and inserting 
        the following:

``SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFESSIONALS.'';

            (2) by striking the second sentence of subsection (a) and 
        inserting the following: ``The Institute shall conduct a 
        program to enhance the international competitiveness of the 
        United States by increasing the participation of 
        underrepresented populations in the international service, 
        including private international voluntary organizations and the 
        foreign service of the United States.''; and
            (3) in subsection (b)(1), by striking subparagraphs (A) and 
        (B) and inserting the following:
                    ``(A) A Tribally Controlled College or University 
                or Alaska Native or Native Hawaiian-serving institution 
                eligible for assistance under title III, an institution 
                eligible for assistance under part B of title III, or a 
                Hispanic-serving institution eligible for assistance 
                under title V.
                    ``(B) An institution of higher education which 
                serves substantial numbers of underrepresented 
                students.''.
    (b) Institutional Development.--Section 622 (20 U.S.C. 1131-1) is 
amended by inserting before the period at the end of subsection (a) the 
following: ``and promote collaboration with colleges and universities 
that receive funds under this title''.
    (c) Study Abroad Program.--Section 623(a) (20 U.S.C. 1131a(a)) is 
amended by inserting after ``1978,'' the following: ``Alaska Native-
serving, Native Hawaiian-serving, and Hispanic-serving institutions,''.
    (d) Advanced Degree in International Relations.--Section 624 (20 
U.S.C. 1131b) is amended--
            (1) by striking ``masters'' in the heading of such section 
        and inserting ``advanced'';
            (2) by striking ``a masters degree in international 
        relations'' and inserting ``an advanced degree in international 
        relations, international affairs, international economics, or 
        other academic areas related to the Institute fellow's career 
        objectives''; and
            (3) by striking ``The masters degree program designed by 
        the consortia'' and inserting ``The advanced degree study 
        program shall be designed by the consortia, consistent with the 
        fellow's career objectives, and''.
    (e) Internships.--Section 625 (20 U.S.C. 1131c) is amended--
            (1) in subsection (a), by inserting after ``1978,'' the 
        following: ``Alaska Native-serving, Native Hawaiian-serving, 
        and Hispanic-serving institutions,'';
            (2) in subsection (b)--
                    (A) by inserting ``and'' after the semicolon at the 
                end of paragraph (2);
                    (B) by striking ``; and'' at the end of paragraph 
                (3) and inserting a period; and
                    (C) by striking paragraph (4); and
            (3) by amending subsection (c) to read as follows:
    ``(c) Ralph J. Bunche Fellows.--In order to assure the recognition 
and commitment of individuals from underrepresented student populations 
who demonstrate special interest in international affairs and language 
study, eligible students who participate in the internship programs 
authorized under (a) and (b) shall be known as the `Ralph J. Bunche 
Fellows'.''.
    (f) Report.--Section 626 (20 U.S.C. 1131d) is amended by striking 
``annually prepare a report'' and inserting ``prepare a report 
biennially''.
    (g) Authorization of Appropriations.--Section 628 (20 U.S.C. 1131f) 
is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 604. EVALUATION, OUTREACH, AND DISSEMINATION.

    Part D of title VI is amended by inserting after section 631 (20 
U.S.C. 1132) the following new section:

``SEC. 632. EVALUATION, OUTREACH, AND DISSEMINATION.

    ``The Secretary may use not more than one percent of the funds made 
available for this title for program evaluation, national outreach, and 
information dissemination activities.''.

SEC. 605. ADVISORY BOARD.

    Part D of title VI is amended by inserting after section 632 (as 
added by section 604) the following new section:

``SEC. 633. INTERNATIONAL HIGHER EDUCATION ADVISORY BOARD.

    ``(a) Establishment and Purpose.--
            ``(1) Establishment.--There is established in the 
        Department an independent International Higher Education 
        Advisory Board (hereafter in this section referred to as the 
        `International Advisory Board'). The International Advisory 
        Board shall provide advice, counsel, and recommendations to the 
        Secretary and the Congress on international education issues 
        for higher education.
            ``(2) Purpose.--The purpose of the International Advisory 
        Board is--
                    ``(A) to provide expertise in the area of national 
                needs for proficiency in world regions, foreign 
                languages, international affairs, and international 
                business;
                    ``(B) to make recommendations that will promote the 
                excellence of international education programs and 
                result in the growth and development of such programs 
                at the postsecondary education level that will reflect 
                diverse perspectives and a wide range of views on world 
                regions, foreign language, international affairs, and 
                international business; and
                    ``(C) to advise the Secretary and the Congress with 
                respect to needs for expertise in government, the 
                private sector, and education in order to enhance 
                America's understanding of, and engagement in, the 
                world.
    ``(b) Independence of International Advisory Board.--In the 
exercise of its functions, powers, and duties, the International 
Advisory Board shall be independent of the Secretary and the other 
offices and officers of the Department. Except as provided in this 
subsection and subsection (f), the recommendations of the International 
Advisory Board shall not be subject to review or approval by any 
officer of the Federal Government. Nothing in this title shall be 
construed to authorize the International Advisory Board to mandate, 
direct, or control an institution of higher education's specific 
instructional content, curriculum, or program of instruction or 
instructor. The International Advisory Board is authorized to assess a 
sample of activities supported under this title, using materials that 
have been submitted to the Department of Education by grant recipients 
under this title, in order to provide recommendations to the Secretary 
and the Congress for the improvement of programs under the title and to 
ensure programs meet the purposes of the title to promote the study of 
and expertise in foreign language and world regions, especially with 
respect to diplomacy, national security, and international business and 
trade competitiveness. The recommendations of the International 
Advisory Board may address any area in need of improvement, except that 
any recommendation of specific legislation to Congress shall be made 
only if the President deems it necessary and expedient.
    ``(c) Membership.--
            ``(1) Appointment.--The International Advisory Board shall 
        have 7 members of whom--
                    ``(A) 3 members shall be appointed by the 
                Secretary;
                    ``(B) 2 members shall be appointed by the Speaker 
                of the House of Representatives, upon the 
                recommendation of the Majority Leader and the Minority 
                Leader; and
                    ``(C) 2 members shall be appointed by the President 
                pro tempore of the Senate, upon the recommendation of 
                the Majority Leader and the Minority Leader.
            ``(2) Representation.--Two of the members appointed by the 
        Secretary under paragraph (1)(A) shall be appointed to 
        represent Federal agencies that have diplomacy, national 
        security, international commerce, or other international 
        activity responsibilities, after consultation with the heads of 
        such agencies. The members of the International Advisory Board 
        shall also include (but not be limited to) persons with 
        international expertise representing States, institutions of 
        higher education, cultural organizations, educational 
        organizations, international business, local education 
        agencies, students, and private citizens with expertise in 
        international concerns.
            ``(3) Qualification.--Members of the International Advisory 
        Board shall be individuals who have technical qualifications, 
        professional standing, experience working in international 
        affairs or foreign service or international business 
        occupations, or demonstrated knowledge in the fields of higher 
        education and international education, including foreign 
        languages, world regions, or international affairs.
    ``(d) Functions of the International Advisory Board.--
            ``(1) In general.--The International Advisory Board shall 
        provide recommendations in accordance with subsection (b) 
        regarding improvement of programs under this title to the 
        Secretary and the Congress for their review. The International 
        Advisory Board may--
                    ``(A) review and comment upon the regulations for 
                grants under this title;
                    ``(B) assess a sample of activities supported under 
                this title based on the purposes and objectives of this 
                title, using materials that have been submitted to the 
                Department of Education by grant recipients under this 
                title, in order to provide recommendations for 
                improvement of the programs under this title;
                    ``(C) make recommendations that will assist the 
                Secretary and the Congress to improve the programs 
                under this title to better reflect the national needs 
                related to foreign languages, world regions, diplomacy, 
                national security, and international business and trade 
                competitiveness, including an assessment of the 
                national needs and the training provided by the 
                institutions of higher education that receive a grant 
                under this title for expert and non-expert level 
                foreign language training;
                    ``(D) make recommendations to the Secretary and the 
                Congress regarding such studies, surveys, and analyses 
                of international education that will provide feedback 
                about the programs under this title and assure that 
                their relative authorized activities reflect diverse 
                perspectives and a wide range of views on world 
                regions, foreign languages, diplomacy, national 
                security, and international business and trade 
                competitiveness;
                    ``(E) make recommendations that will strengthen the 
                partnerships between local educational agencies, public 
                and private elementary and secondary education schools, 
                and grant recipients under this title to ensure that 
                the research and knowledge about world regions, foreign 
                languages, and international affairs is widely 
                disseminated to local educational agencies;
                    ``(F) make recommendations on how institutions of 
                higher education that receive a grant under this title 
                can encourage students to serve the Nation and meet 
                national needs in an international affairs, 
                international business, foreign language, or national 
                security capacity;
                    ``(G) make recommendations on how linkages between 
                institutions of higher education and public and private 
                organizations that are involved in international 
                education, international business and trade 
                competitiveness, language training, and international 
                research capacities may fulfill the manpower and 
                information needs of United States businesses; and
                    ``(H) make recommendations to the Secretary and the 
                Congress about opportunities for underrepresented 
                populations in the areas of foreign language study, 
                diplomacy, international business and trade 
                competitiveness, and international economics, in order 
                to effectively carry out the activities of the 
                Institute under part C.
            ``(2) Hearings.--The International Advisory Board shall 
        provide for public hearing and comment regarding the matter 
        contained in the recommendations described in paragraph (1), 
        prior to the submission of those recommendations to the 
        Secretary and the Congress.
    ``(e) Operations of the Committee.--
            ``(1) Terms.--Each member of the International Advisory 
        Board shall be appointed for a term of 3 years, except that, of 
        the members first appointed (A) 4 shall be appointed for a term 
        of 3 years, and (B) 3 shall be appointed for a term of 4 years, 
        as designated at the time of appointment by the Secretary. A 
        member of the International Advisory Board may be reappointed 
        to successive terms on the International Advisory Board.
            ``(2) Vacancies.--Any member appointed to fill a vacancy 
        occurring prior to the expiration of the term of a predecessor 
        shall be appointed only for the remainder of such term. A 
        member of the International Advisory Board shall, upon the 
        Secretary's request, continue to serve after the expiration of 
        a term until a successor has been appointed.
            ``(3) No governmental members.--Except for the members 
        appointed by the Secretary under subsection (c)(1)(A), no 
        officers or full-time employees of the Federal Government shall 
        serve as members of the International Advisory Board.
            ``(4) Meetings.--The International Advisory Board shall 
        meet not less than once each year. The International Advisory 
        Board shall hold additional meetings at the call of the Chair 
        or upon the written request of not less than 3 voting members 
        of the International Advisory Board.
            ``(5) Quorum.--A majority of the voting members of the 
        International Advisory Board serving at the time of a meeting 
        shall constitute a quorum.
            ``(6) Chair.--The International Advisory Board shall elect 
        a Chairman or Chairwoman from among the members of the 
        International Advisory Board.
    ``(f) Submission to Department for Comment.--The International 
Advisory Board shall submit its proposed recommendations to the 
Secretary of Education for comment for a period not to exceed 30 days 
in each instance.
    ``(g) Personnel and Resources.--
            ``(1) Compensation and expense.--Members of the 
        International Advisory Board shall serve without pay for such 
        service. Members of the International Advisory Board who are 
        officers or employees of the United States may not receive 
        additional pay, allowances, or benefits by reason of their 
        service on the International Advisory Board. Members of the 
        International Advisory Board may each receive reimbursement for 
        travel expenses incident to attending International Advisory 
        Board meetings, including per diem in lieu of subsistence, as 
        authorized by section 5703 of title 5, United States Code, for 
        persons in the Government service employed intermittently.
            ``(2) Personnel.--The International Advisory Board may 
        appoint such personnel as may be determined necessary by the 
        Chairman without regard to the provisions of title 5, United 
        States Code, governing appointments in the competitive service, 
        and may be paid without regard to the provisions of chapter 51 
        and subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates, but no 
        individual so appointed shall be paid in excess of the maximum 
        rate payable under section 5376 of such title. The 
        International Advisory Board may appoint not more than one 
        full-time equivalent, nonpermanent, consultant without regard 
        to the provisions of title 5, United States Code. The 
        International Advisory Board shall not be required by the 
        Secretary to reduce personnel to meet agency personnel 
        reduction goals.
            ``(3) Consultation.--In carrying out its duties under the 
        Act, the International Advisory Board shall consult with other 
        Federal agencies, representatives of State and local 
        governments, and private organizations to the extent feasible.
            ``(4) Assistance from other agencies.--
                    ``(A) Information.--The International Advisory 
                Board is authorized to secure directly from any grantee 
                under this title, executive department, bureau, agency, 
                board, commission, office, independent establishment, 
                or instrumentality information, suggestions, estimates, 
                and statistics for the purpose of this section and each 
                such grantee department, bureau, agency, board, 
                commission, office, independent establishment, or 
                instrumentality is authorized and directed, to the 
                extent permitted by law, to furnish such information, 
                suggestions, estimates, and statistics directly to the 
                International Advisory Board, upon request made by the 
                Chairman for the purpose of providing expertise in the 
                area of national needs for the proficiency in world 
                regions, foreign languages, and international affairs.
                    ``(B) Services and personnel.--The head of each 
                Federal agency shall, to the extent not prohibited by 
                law, consult with the International Advisory Board in 
                carrying out this section. The International Advisory 
                Board is authorized to utilize, with their consent, the 
                services, personnel, information, and facilities of 
                other Federal, State, local, and private agencies with 
                or without reimbursement, for the purpose of providing 
                expertise in the area of national needs for the 
                proficiency in world regions, foreign languages, and 
                international affairs.
            ``(5) Contracts; experts and consultants.--The 
        International Advisory Board may enter into contracts for the 
        acquisition of information, suggestions, estimates, and 
        statistics for the purpose of this section. The International 
        Advisory Board is authorized to obtain the services of experts 
        and consultants without regard to section 3109 of title 5, 
        United States Code and to set pay in accordance with such 
        section.
    ``(h) Termination.--Notwithstanding the sunset and charter 
provisions of the Federal Advisory Committee Act (5 U.S.C. App. I) or 
any other statute or regulation, the International Advisory Board shall 
be authorized through September 30, 2012.
    ``(i) Funds.--The Secretary shall use not more than one-half of the 
funds available to the Secretary under section 632 to carry out this 
section.''.

SEC. 606. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING 
              INFORMATION; SAFETY.

    Part D of title VI is amended by inserting after section 633 (as 
added by section 605) the following new sections:

``SEC. 634. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING 
              INFORMATION.

    ``Each institution of higher education that receives a grant under 
this title shall assure that--
            ``(1) recruiters of the United States Government and 
        agencies thereof are given the same access to students as is 
        provided generally to other institutions of higher education 
        and prospective employers of those students for the purpose of 
        recruiting for graduate opportunities or prospective 
        employment; and
            ``(2) no undue restrictions are placed upon students that 
        seek employment with the United States Government or any agency 
        thereof.

``SEC. 635. STUDENT SAFETY.

    ``Applicants seeking funds under this title to support student 
travel and study abroad shall submit as part of their grant application 
a description of safety policies and procedures for students 
participating in the program while abroad.''.

SEC. 607. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

    Part D of title VI is further amended by inserting after section 
635 (as added by section 606) the following new section:

``SEC. 636. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.

    ``(a) Study.--The Secretary of Education, in consultation with the 
International Advisory Board, shall conduct a study to identify foreign 
language heritage communities, particularly such communities that 
include speakers of languages that are critical to the national 
security of the United States.
    ``(b) Foreign Language Heritage Community.--For purposes of this 
section, the term `foreign language heritage community' means a 
community of residents or citizens of the United States who are native 
speakers of, or who have partial fluency in, a foreign language.
    ``(c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Education shall submit a report 
to the Congress on the results of the study conducted under this 
section.''.

                    TITLE VII--TITLE VII AMENDMENTS

SEC. 701. JAVITS FELLOWSHIP PROGRAM.

    (a) Authority and Timing of Awards.--Section 701(a) (20 U.S.C. 
1132a(a)) is amended by inserting after the second sentence the 
following: ``For purposes of the exception in the preceding sentence, a 
master's degree in fine arts shall be considered a terminal degree.''.
    (b) Interruptions of Study.--Section 701(c) (20 U.S.C. 1134(c)) is 
amended by adding at the end the following new sentence: ``In the case 
of other exceptional circumstances, such as active duty military 
service or personal or family member illness, the institution of higher 
education may also permit the fellowship recipient to interrupt periods 
of study for the duration of the tour of duty (in the case of military 
service) or not more than 12 months (in any other case), but without 
payment of the stipend.''.
    (c) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C. 
1134a(a)(1)) is amended--
            (1) in the first sentence, by inserting ``from diverse 
        geographic regions'' after ``higher education''; and
            (2) by adding at the end the following new sentence: ``The 
        Secretary shall also assure that at least one representative 
        appointed to the Board represents an institution that is 
        eligible for a grant under title III or V of this Act.''.
    (d) Stipends.--Section 703 (20 U.S.C. 1134b(a)) is amended--
            (1) in subsection (a)--
                    (A) by striking ``1999-2000'' and inserting ``2008-
                2009'';
                    (B) by striking ``shall be set'' and inserting 
                ``may be set''; and
                    (C) by striking ``Foundation graduate fellowships'' 
                and inserting ``Foundation Graduate Research Fellowship 
                Program on February 1 of such academic year''; and
            (2) in subsection (b), by amending paragraph (1)(A) to read 
        as follows:
            ``(1) In general.--(A) The Secretary shall (in addition to 
        stipends paid to individuals under this subpart) pay to the 
        institution of higher education, for each individual awarded a 
        fellowship under this subpart at such institution, an 
        institutional allowance. Except as provided in subparagraph 
        (B), such allowance shall be, for 2008-2009 and succeeding 
        academic years, the same amount as the institutional payment 
        made for 2007-2008 adjusted for 2008-2009 and annually 
        thereafter in accordance with inflation as determined by the 
        Department of Labor's Consumer Price Index for All Urban 
        Consumers for the previous calendar year.''.
    (e) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2008 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.

SEC. 702. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

    (a) Designation of Areas of National Need; Priority.--Section 712 
(20 U.S.C. 1135a) is amended--
            (1) in the last sentence of subsection (b)--
                    (A) by striking ``and an assessment'' and inserting 
                ``an assessment''; and
                    (B) by inserting before the period at the end the 
                following: ``, and the priority described in subsection 
                (c) of this section''; and
            (2) by adding at the end the following new subsection:
    ``(c) Priority.--The Secretary shall establish a priority for 
grants in order to prepare individuals for the professoriate who will 
train highly-qualified elementary and secondary math and science 
teachers, special education teachers, and teachers who provide 
instruction for limited English proficient individuals. Such grants 
shall offer program assistance and graduate fellowships for--
            ``(1) post-baccalaureate study related to teacher 
        preparation and pedagogy in math and science for students who 
        have completed a master's degree or are pursuing a doctorate of 
        philosophy in math and science;
            ``(2) post-baccalaureate study related to teacher 
        preparation and pedagogy in special education and English 
        language acquisition and academic proficiency for limited 
        English proficient individuals; and
            ``(3) support of dissertation research in the fields of 
        math, science, special education, or second language pedagogy 
        and second language acquisition.''.
    (b) Collaboration Required for Certain Applications.--Section 
713(b) (20 U.S.C. 1135b) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by redesignating paragraph (10) as paragraph (11); and
            (3) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) in the case of an application from a department, 
        program, or unit in education or teacher preparation, provide 
        assurances that such department, program, or unit will 
        collaborate with departments, programs, or units in all content 
        areas to ensure a successful combination of training in both 
        teaching and such content; and''.
    (c) Stipends.--Section 714(b) (20 U.S.C. 1135c(b)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2008-2009'';
            (2) by striking ``shall be set'' and inserting ``may be 
        set''; and
            (3) by striking ``Foundation graduate fellowships'' and 
        inserting ``Foundation Graduate Research Fellowship Program on 
        February 1 of such academic year''.
    (d) Additional Assistance.--Section 715(a)(1) (20 U.S.C. 
1135d(a)(1)) is amended--
            (1) by striking ``1999-2000'' and inserting ``2008-2009'';
            (2) by striking ``1998-1999'' and inserting ``2007-2008''; 
        and
            (3) by inserting ``for All Urban Consumers'' after ``Price 
        Index''.
    (e) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2008 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.
    (f) Technical Amendments.--Section 714(c) (20 U.S.C. 1135c(c)) is 
amended--
            (1) by striking ``section 716(a)'' and inserting ``section 
        715(a)''; and
            (2) by striking ``section 714(b)(2)'' and inserting 
        ``section 713(b)(2)''.

SEC. 703. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

    (a) Contract and Grant Purposes.--Section 721(c) (20 U.S.C. 
1136(c)) is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) to prepare such students for study at accredited law 
        schools and assist them with the development of analytical 
        skills and study methods to enhance their success and promote 
        completion of law school;'';
            (2) by striking ``and'' at the end of paragraph (4);
            (3) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(6) to award Thurgood Marshall Fellowships to eligible 
        law school students--
                    ``(A) who participated in summer institutes 
                authorized by subsection (d) and who are enrolled in an 
                accredited law school; or
                    ``(B) who are eligible law school students who have 
                successfully completed a comparable summer institute 
                program certified by the Council on Legal Educational 
                Opportunity.''.
    (b) Services Provided.--Section 721(d)(1)(D) (20 U.S.C. 
1136(d)(1)(D)) is amended by inserting ``in analytical skills and study 
methods'' after ``courses''.
    (c) Authorization of Appropriations.--Section 721(h) (20 U.S.C. 
1136(h)) is amended by striking ``1999 and each of the 4 succeeding 
fiscal years'' and inserting ``2008 and each of the 5 succeeding fiscal 
years''.
    (d) General Provisions.--Subsection (e) of section 731 (20 U.S.C. 
1137(e)) is repealed.

SEC. 704. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

    (a) Contract and Grant Purposes.--Section 741(a) (20 U.S.C. 
1138(a)) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) the encouragement of the reform and improvement of, 
        and innovation in, postsecondary education and the provision of 
        educational opportunity for all, especially for the non-
        traditional student populations;'';
            (2) in paragraph (2), by inserting before the semicolon at 
        the end the following: ``for postsecondary students, especially 
        institutions, programs, and joint efforts that provide academic 
        credit for programs'';
            (3) by amending paragraph (3) to read as follows:
            ``(3) the establishment of institutions and programs based 
        on the technology of communications, including delivery by 
        distance education;'';
            (4) by amending paragraph (6) to read as follows:
            ``(6) the introduction of institutional reforms designed to 
        expand individual opportunities for entering and reentering 
        postsecondary institutions and pursuing programs of 
        postsecondary study tailored to individual needs;'';
            (5) by striking ``and'' at the end of paragraph (7);
            (6) by striking the period at the end of paragraph (8) and 
        inserting a semicolon; and
            (7) by adding at the end the following new paragraphs:
            ``(9) the provision of support and assistance to programs 
        implementing integrated education reform services in order to 
        improve secondary school graduation and college attendance and 
        completion rates for disadvantaged students, and to programs 
        that reduce postsecondary remediation rates, and improve degree 
        attainment rates, for low-income students and former high 
        school dropouts;
            ``(10) the assessment, in partnership with a public or 
        private nonprofit institution or agency, of the performance of 
        teacher preparation programs within institutions of higher 
        education in a State, using an assessment which provides 
        comparisons across such schools within the State based upon 
        indicators including teacher candidate knowledge in subject 
        areas in which such candidate has been prepared to teach;
            ``(11) supporting efforts to establish pilot programs and 
        initiatives to help college campuses to reduce illegal 
        downloading of copyrighted content, in order to improve the 
        security and integrity of campus computer networks and save 
        bandwidth costs;
            ``(12) support increased fire safety in student housing--
                    ``(A) by establishing a demonstration incentive 
                program for qualified student housing in institutions 
                of higher education;
                    ``(B) by making grants for the purpose of 
                installing fire alarm detection, prevention, and 
                protection technologies in student housing, 
                dormitories, and other buildings controlled by such 
                entities; and
                    ``(C) by requiring, as a condition of such grants--
                            ``(i) that such technologies be installed 
                        professionally to technical standards of the 
                        National Fire Protection Association; and
                            ``(ii) that the recipient shall provide 
                        non-Federal matching funds in an amount equal 
                        to the amount of the grant; and
            ``(13) establishing and operating pregnant and parenting 
        student services offices that--
                    ``(A) will serve students who are pregnant or 
                parenting, prospective parenting students who are 
                anticipating a birth or adoption, and students who are 
                placing or have placed a child for adoption; and
                    ``(B) will help students with locating and 
                utilizing child care, family housing, flexible academic 
                scheduling such as telecommuting programs, parenting 
                classes and programs, and post-partum counseling and 
                support groups.''.
    (b) Military Scholorships.--Section 741 (20 U.S.C. 1138) is further 
amended by adding at the end the following new subsection:
    ``(c) Scholarship Program for Family Members of Veterans or Members 
of the Military.--
            ``(1) Authorization.--The Secretary shall contract with a 
        nonprofit organization with demonstrated experience in carrying 
        out the activities described in this subsection to carry out a 
        program to provide postsecondary education scholarships for 
        eligible students.
            ``(2) Eligible students.--In this subsection, the term 
        `eligible student' means an individual who is enrolled as a 
        full-time or part-time student at an institution of higher 
        education (as defined in section 102) and who is--
                    ``(A) a dependent student who is a child of--
                            ``(i) an individual who is--
                                    ``(I) serving on active duty during 
                                a war or other military operation or 
                                national emergency (as defined in 
                                section 481); or
                                    ``(II) performing qualifying 
                                National Guard duty during a war or 
                                other military operation or national 
                                emergency (as defined in section 481); 
                                or
                            ``(ii) a veteran who died while serving or 
                        performing, as described in subclause (I), 
                        since September 11, 2001, or has been disabled 
                        while serving or performing, as described in 
                        clause (i), as a result of such event; or
                    ``(B) an independent student who is a spouse of--
                            ``(i) an individual who is--
                                    ``(I) serving on active duty during 
                                a war or other military operation or 
                                national emergency (as defined in 
                                section 481); or
                                    ``(II) performing qualifying 
                                National Guard duty during a war or 
                                other military operation or national 
                                emergency (as defined in section 481); 
                                or
                            ``(ii) a veteran who died while serving or 
                        performing, as described in subclause (I), 
                        since September 11, 2001, or has been disabled 
                        while serving or performing, as described in 
                        clause (i), as a result of such event.
            ``(3) Awarding of scholarships.--Scholarships awarded under 
        this subsection shall be awarded based on need with priority 
        given to eligible students who are eligible to receive Federal 
        Pell Grants under subpart 1 of part A of title IV.
            ``(4) Maximum scholarship amount.--The maximum scholarship 
        amount awarded to an eligible student under this subsection for 
        an academic year shall be the lesser of--
                    ``(A) the difference between the eligible student's 
                cost of attendance (as defined in section 472) and any 
                non-loan based aid such student receives; or
                    ``(B) $5,000.
            ``(5) Amounts for scholarships.--All of the amounts 
        appropriated to carry out this subsection for a fiscal year 
        shall be used for scholarships awarded under this subsection, 
        except that a nonprofit organization receiving a contract under 
        this subsection may use not more than 1 percent of such amounts 
        for the administrative costs of the contract.''.
    (c) Prohibition.--Section 741 (20 U.S.C. 1138) is further amended 
by adding at the end the following subsection:
    ``(d) Prohibition.--No funds made available under this part may be 
used to provide financial assistance to students who do not meet the 
requirements of section 484(a)(5).''.
    (d) Areas of National Need.--Section 744(c) (20 U.S.C. 1138c(c)) is 
amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2)(A) Development of partnerships between local 
        educational agencies and institutions of higher education to 
        establish or expand existing dual enrollment programs at 
        institutions of higher education that allow high school 
        students to earn high school and transferable college credit.
            ``(B) Development of consortia of institutions of higher 
        education to create dual enrollment programs including academic 
        and student support agreements and comprehensive articulation 
        agreements that would allow for the seamless and timely 
        acquisition of college credits and the transfer of 
        postsecondary academic credits between such institutions, 
        particularly from 2-year to 4-year institutions of higher 
        education.''; and
            (2) by striking paragraph (4) and inserting the following:
            ``(4) International cooperation, partnerships, or student 
        exchange among postsecondary educational institutions in the 
        United States and abroad.
            ``(5) Establishment of academic programs including graduate 
        and undergraduate courses, seminars and lectures, support of 
        research, and development of teaching materials for the purpose 
        of supporting faculty and academic programs that teach 
        traditional American history (including significant 
        constitutional, political, intellectual, economic, diplomatic, 
        and foreign policy trends, issues, and documents; the history, 
        nature, and development of democratic institutions of which 
        American democracy is a part; and significant events and 
        individuals in the history of the United States).
            ``(6) Support for planning, applied research, training, 
        resource exchanges or technology transfers, the delivery of 
        services, or other activities the purpose of which is to design 
        and implement programs to enable institutions of higher 
        education to work with private and civic organizations to 
        assist communities to meet and address their pressing and 
        severe problems, including economic development, community 
        infrastructure and housing, crime prevention, education, 
        healthcare, self-sufficiency, and workforce preparation. Such 
        activities may include support for the development of 
        coordinated curriculum and internship opportunities for 
        students in disadvantaged communities.''.
    (e) Authorization of Appropriations.--Section 745 (20 U.S.C. 1138d) 
is amended by striking ``$30,000,000 for fiscal year 1999 and such sums 
as may be necessary for each of the 4 succeeding fiscal years'' and 
inserting ``$40,000,000 for fiscal year 2008 and such sums as may be 
necessary for each of the 5 succeeding fiscal years''.

SEC. 705. URBAN COMMUNITY SERVICE.

    Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.

SEC. 706. DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES 
              RECEIVE A QUALITY HIGHER EDUCATION.

    (a) Serving All Students With Disabilities.--Section 762(a) (20 
U.S.C. 1140a(a)) is amended by striking ``students with learning 
disabilities'' and inserting ``students with disabilities''.
    (b) Authorized Activities.--
            (1) Amendment.--Section 762(b)(2) is amended--
                    (A) in subparagraph (A), by inserting ``in order to 
                improve retention and completion'' after 
                ``disabilities'';
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (E), respectively;
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Effective transition practices.--The 
                development of innovative, effective, and efficient 
                teaching methods and strategies to ensure the smooth 
                transition of students with disabilities from high 
                school to postsecondary education.''; and
                    (D) by inserting after subparagraph (C) (as 
                redesignated by subparagraph (B) of this paragraph) the 
                following new subparagraph:
                    ``(D) Distance learning.--The development of 
                innovative, effective, and efficient teaching methods 
                and strategies to provide faculty and administrators 
                with the ability to provide accessible distance 
                education programs or classes that would enhance access 
                of students with disabilities to higher education, 
                including the use of electronic communication for 
                instruction and advisement.''.
            (2) Conforming amendment.--Section 762(b)(3) is amended by 
        striking ``subparagraphs (A) through (C)'' and inserting 
        ``subparagraphs (A) through (E)''.
    (c) Applications.--Section 763 (20 U.S.C. 1140b) is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) a description of how such institution plans to 
        address the activities allowed under this part;'';
            (2) by striking ``and'' at the end of paragraph (2);
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) a description of the extent to which an institution 
        will work to replicate the best practices of institutions of 
        higher education with demonstrated success in serving students 
        with disabilities.''.
    (d) Authorization of Appropriations.--Section 765 (20 U.S.C. 1140d) 
is amended by striking ``fiscal year 1999 and such sums as may be 
necessary for each of the 4 succeeding fiscal years'' and inserting 
``fiscal year 2008 and such sums as may be necessary for each of the 5 
succeeding fiscal years''.

                    TITLE VIII--CLERICAL AMENDMENTS

SEC. 801. CLERICAL AMENDMENTS.

    (a) Definition.--Section 103 (20 U.S.C. 1003) (as amended by 
section 102) is further amended--
            (1) by redesignating paragraphs (1) through (16) as 
        paragraphs (2) through (17), respectively; and
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following new paragraph:
            ``(1) Authorizing committees.--The term `authorizing 
        committees' means the Committee on Health, Education, Labor, 
        and Pensions of the Senate and the Committee on Education and 
        Labor of the House of Representatives.''.
    (b) Committees.--
            (1) The following provisions are each amended by striking 
        ``Committee on Labor and Human Resources of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives'' and inserting ``authorizing committees'':
                    (A) Section 428(g) (20 U.S.C. 1078(g)).
                    (B) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).
                    (C) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).
                    (D) Section 455(b)(7)(B) (20 U.S.C. 
                1087e(b)(7)(B)), as redesignated by section 423(b)(3).
                    (E) Section 483(c) (20 U.S.C. 1090(c)).
                    (F) Section 486(e) (20 U.S.C. 1093(e)).
                    (G) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
                    (H) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
                    (I) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
                    (J) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
                    (K) Section 487A(b)(3)(B) (20 U.S.C. 
                1094a(b)(3)(B)).
                    (L) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).
                    (M) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).
            (2) The following provisions are each amended by striking 
        ``Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Labor and Human Resources 
        of the Senate'' and inserting ``authorizing committees'':
                    (A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
                    (B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
                    (C) Section 437(c)(1) (20 U.S.C. 1087(c)(1)).
                    (D) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
                    (E) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
            (3) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by 
        striking ``Committee on Appropriations and the Committee on 
        Labor and Human Resources of the Senate and the Committee on 
        Appropriations and the Committee on Education and the Workforce 
        of the House of Representatives'' and inserting ``Committees on 
        Appropriations of the Senate and House of Representatives and 
        the authorizing committees''.
            (4) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is 
        amended by striking ``House Committee on Education and the 
        Workforce and the Senate Committee on Labor and Human 
        Resources'' and inserting ``authorizing committees''.
            (5) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is 
        amended by striking ``Committee on Education and the Workforce 
        of the House of Representatives or the Committee on Labor and 
        Human Resources of the Senate'' and inserting ``either of the 
        authorizing committees''.
            (6) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-
        2(d)(1)(E)(iii)) is amended by striking ``Chairman and the 
        Ranking Member on the Committee on Labor and Human Resources of 
        the Senate and the Chairman and the Ranking Member of the 
        Committee on Education and Labor of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (7) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C. 
        1087-2(r)) are each amended by striking ``Chairman and ranking 
        minority member of the Committee on Labor and Human Resources 
        of the Senate, the Chairman and ranking minority member of the 
        Committee on Education and Labor of the House of 
        Representatives,'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (8) Paragraphs (5)(B) and (10) of section 439(r) (20 U.S.C. 
        1087-2(r)) are each amended by striking ``Chairman and ranking 
        minority member of the Senate Committee on Labor and Human 
        Resources and to the Chairman and ranking minority member of 
        the House Committee on Education and Labor'' and inserting 
        ``chairpersons and ranking minority members of the authorizing 
        committees''.
            (9) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is 
        amended by striking ``Chairman and ranking minority member of 
        the Committee on Labor and Human Resources of the Senate and to 
        the Chairman and ranking minority member of the Committee on 
        Education and Labor of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (10) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is 
        amended by striking ``Chairman and Ranking Member of the 
        Committee on Labor and Human Resources of the Senate and the 
        Chairman and Ranking Member of the Committee on Economic and 
        Educational Opportunities of the House of Representatives'' and 
        inserting ``chairpersons and ranking minority members of the 
        authorizing committees''.
            (11) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is 
        amended by striking ``Chairman and Ranking Minority Member of 
        the Committee on Labor and Human Resources of the Senate and 
        Chairman and Ranking Minority Member of the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives'' and inserting ``chairpersons and ranking 
        minority members of the authorizing committees''.
            (12) Section 482(d) (20 U.S.C. 1089(d)) is amended by 
        striking ``Committee on Labor and Human Resources of the Senate 
        and the Committee on Education and Labor of the House of 
        Representatives'' and inserting ``authorizing committees''.
    (c) Additional Clerical Amendments.--
            (1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C. 
        1075(a)(2)(A)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is 
        amended by striking ``428A or''.
            (3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C. 
        1078(b)(1)(B)) are each amended by striking ``428A or 428B'' 
        and inserting ``428B or 428H''.
            (4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is 
        amended by striking ``sections 428A and 428B'' and inserting 
        ``section 428B or 428H''.
            (5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is 
        amended by striking ``428A, 428B,'' and inserting ``428B''.
            (6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended 
        by striking ``428A'' and inserting ``428H''.
            (7) The heading for section 433(e) (20 U.S.C. 1083(e)) is 
        amended by striking ``SLS Loans And''.
            (8) Section 433(e) (20 U.S.C. 1083(e)) is amended by 
        striking ``428A, 428B,'' and inserting ``428B''.
            (9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--
                    (A) by inserting ``or'' at the end of subparagraph 
                (A);
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B).
            (10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is 
        amended by striking ``428A(d), 428B(d), 428C,'' and inserting 
        ``428B(d), 428C, 428H,''.
            (11) Section 435(m) (20 U.S.C. 1085(m)) is amended--
                    (A) in paragraph (1)(A), by striking ``, 428A,''; 
                and
                    (B) in paragraph (2)(D), by striking ``428A'' each 
                place it appears and inserting ``428H''.
            (12) Section 438(b)(2)(D)(ii) (20 U.S.C. 1087-
        1(b)(2)(D)(ii)) is amended by striking ``division (i) of this 
        subparagraph'' and inserting ``clause (i) of this 
        subparagraph''.
            (13) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is 
        amended--
                    (A) by striking ``sls and plus'' in the heading and 
                inserting ``plus''; and
                    (B) by striking ``428A or''.
            (14) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended 
        by striking ``428A or''.
            (15) Nothing in the amendments made by this subsection 
        shall be construed to alter the terms, conditions, and benefits 
        applicable to Federal supplemental loans for students (``SLS 
        loans'') under section 428A as in effect prior to July 1, 1994 
        (20 U.S.C. 1078-1).

              TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

    (a) General Authority.--Section 104(a)(1)(A) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting 
after ``maintain and operate'' the following: ``, at the Laurent Clerc 
National Deaf Education Center,''.
    (b) Administrative Requirements.--
            (1) In general.--Section 104(b) of the Education of the 
        Deaf Act of 1986 (20 U.S.C. 4304(b)) is amended--
                    (A) in the matter preceding subparagraph (A) of 
                paragraph (1), by striking ``elementary and secondary 
                education programs'' and inserting ``Laurent Clerc 
                National Deaf Education Center'';
                    (B) in paragraph (2), by striking ``elementary and 
                secondary education programs'' and inserting ``Laurent 
                Clerc National Deaf Education Center''; and
                    (C) in paragraph (4)(C)--
                            (i) in clause (i), by striking ``(6)'' and 
                        inserting ``(8)''; and
                            (ii) in clause (vi), by striking ``(m)'' 
                        and inserting ``(o)''.
            (2) Academic content standards, achievement standards, and 
        assessments.--Section 104(b) of the Education of the Deaf Act 
        of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the 
        following new paragraph:
    ``(5) The University, in consultation with the Secretary and 
consistent with the mission of the elementary and secondary programs 
operated at the Laurent Clerc National Deaf Education Center, shall--
            ``(A) not later than the beginning of the 2008-2009 school 
        year, adopt and implement academic content standards, academic 
        achievement standards, and academic assessments as described in 
        paragraphs (1) and (3) of section 1111(b) of the Elementary and 
        Secondary Education Act of 1965 for such Center;
            ``(B) develop adequate yearly progress standards for such 
        Center as described in section 1111(b)(2)(C) of such Act; and
            ``(C) publicly report the results of such assessments, 
        except in such case in which such reporting would not yield 
        statistically reliable information or would reveal personally 
        identifiable information about an individual student.''.

SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.

    Section 105(b)(4) of the Education of the Deaf Act of 1986 (20 
U.S.C. 4305) is amended--
            (1) by striking ``the Act of March 3, 1931 (40 U.S.C. 276a-
        276a-5)'' and inserting ``sections 3141 through 3148 of title 
        40, United States Code,''; and
            (2) by striking ``section 2 of the Act of June 13, 1934 (40 
        U.S.C. 276c)'' and inserting ``section 3145 of title 40, United 
        States Code''.

SEC. 903. AUTHORITY.

    Section 111 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4331) is amended by striking ``the institution of higher education with 
which the Secretary has an agreement under this part'' and inserting 
``the Rochester Institute of Technology''.

SEC. 904. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

    (a) General Authority.--Section 112(a) of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4332(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence--
                            (i) by striking ``an institution of higher 
                        education'' and inserting ``the Rochester 
                        Institute of Technology, Rochester, New 
                        York,''; and
                            (ii) by striking ``of a'' and inserting 
                        ``of the''; and
                    (B) by striking the second sentence; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``the institution of higher education with 
                which the Secretary has an agreement under this 
                section'' and inserting ``the Rochester Institute of 
                Technology''; and
                    (B) in subparagraph (B), by striking ``the 
                institution'' and inserting ``the Rochester Institute 
                of Technology''.
    (b) Provisions of Agreement.--Section 112(b) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4332(b)) is amended--
            (1) in paragraph (2), by striking ``or other governing body 
        of the institution'' and inserting ``of the Rochester Institute 
        of Technology'';
            (2) in paragraph (3)--
                    (A) by striking ``or other governing body of the 
                institution'' and inserting ``of the Rochester 
                Institute of Technology'';
                    (B) by striking ``the institution of higher 
                education under the agreement with the Secretary'' and 
                inserting ``the Rochester Institute of Technology by 
                the National Technical Institute for the Deaf''; and
                    (C) by striking ``Committee on Labor and Human 
                Resources of the Senate'' and inserting ``Committee on 
                Health, Education, Labor, and Pensions of the Senate''; 
                and
            (3) in paragraph (5)--
                    (A) by striking ``the Act of March 3, 1931 (40 
                U.S.C. 276a-276a-5)'' and inserting ``sections 3141 
                through 3148 of title 40, United States Code,''; and
                    (B) by striking ``section 2 of the Act of June 13, 
                1934 (40 U.S.C. 276c)'' and inserting ``section 3145 of 
                title 40, United States Code,''.
    (c) Limitation.--Section 112(c) of the Education of the Deaf Act of 
1986 (20 U.S.C. 4332(c)) is amended--
            (1) in paragraphs (1) and (2), by striking ``institution'' 
        each place it appears and inserting ``Rochester Institute of 
        Technology''; and
            (2) in the matter following paragraph (2), by striking 
        ``the applicant'' and inserting ``RIT''.

SEC. 905. DEFINITIONS.

    Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4351) is amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraphs (4) through (7) as 
        paragraphs (3) through (6), respectively; and
            (3) by adding at the end the following new paragraph:
            ``(7) The term `RIT' means the Rochester Institute of 
        Technology.''.

SEC. 906. AUDIT.

    (a) Government Accountability Office Authority.--Section 203(a) of 
the Education of the Deaf Act of 1986 (20 U.S.C. 4353(a)) is amended--
            (1) in the heading, by striking ``general accounting 
        office'' and inserting ``government accountability office''; 
        and
            (2) in the matter following paragraph (2), by striking 
        ``General Accounting Office'' and inserting ``Government 
        Accountability Office''.
    (b) Independent Financial and Compliance Audit.--Section 203(b)(1) 
of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(1)) is 
amended by striking the second sentence and inserting the following: 
``NTID shall have an annual independent financial and compliance audit 
made of RIT programs and activities, including NTID programs and 
activities.''.
    (c) Compliance.--Section 203(b)(2) of the Education of the Deaf Act 
of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking ``sections'' and 
all that follows and inserting ``sections 102(b), 105(b)(4), 112(b)(5), 
203(c), 207(b)(2), subsections (c) through (f) of section 207, and 
subsections (a), (b), and (c) of section 209.''.
    (d) Submission of Audits.--Section 203(b)(3) of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4353(b)(3)) is amended--
            (1) by inserting after ``Secretary'' the following: ``and 
        the Committee on Education and Labor of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate''; and
            (2) by striking ``or the institution authorized to 
        establish and operate the NTID under section 112(a)'' and 
        inserting ``or RIT''.
    (e) Limitations Regarding Expenditure of Funds.--Section 
203(c)(2)(A) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4353(c)(2)(A)) is amended in the fifth sentence by striking ``the 
Committee on Education and Labor of the House of Representatives and 
the Committee on Labor and Human Resources of the Senate'' and 
inserting ``the Committee on Education and Labor of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate''.

SEC. 907. REPORTS.

    (a) Technical Amendments.--Section 204 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4354) is amended in the matter preceding 
paragraph (1)--
            (1) by striking ``or other governing body of the 
        institution of higher education with which the Secretary has an 
        agreement under section 112'' and inserting ``of RIT''; and
            (2) by striking ``Committee on Education and Labor of the 
        House of Representatives and the Committee on Labor and Human 
        Resources of the Senate'' and inserting ``Committee on 
        Education and Labor of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of the 
        Senate''.
    (b) Contents of Report.--Section 204 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4354) is amended--
            (1) in paragraph (1), by striking ``preparatory,'';
            (2) in paragraph (2)(C), by striking ``upon graduation/
        completion'' and inserting ``within one year of graduation/
        completion''; and
            (3) in paragraph (3)(B), by striking ``of the institution 
        of higher education with which the Secretary has an agreement 
        under section 112, including specific schedules and analyses 
        for all NTID funds, as required under section 203'' and 
        inserting ``of RIT programs and activities''.

SEC. 908. MONITORING, EVALUATION, AND REPORTING.

    Secti of the Education of the Deaf Act of 1986 (20 U.S.C. 4305) is 
amended in the first sentence by striking ``preparatory,''.

SEC. 909. LIAISON FOR EDUCATIONAL PROGRAMS.

    Section 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4356(a)) is amended by striking ``Not later than 30 days after the date 
of enactment of this Act, the'' and inserting ``The''.

SEC. 910. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE 
              NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

    Section 207(a)(2) of the Education of the Deaf Act of 1986 (20 
U.S.C. 4357(a)(2)) is amended by striking ``or other governing body of 
the institution of higher education with which the Secretary has an 
agreement under section 112'' and inserting ``of RIT''.

SEC. 911. OVERSIGHT AND EFFECT OF AGREEMENTS.

    Section 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359(a)) is amended--
            (1) by striking ``the institution of higher education with 
        which the Secretary has an agreement under part B of title I'' 
        and inserting ``RIT''; and
            (2) by striking ``Committee on Labor and Human Resources of 
        the Senate and the Committee on Education and the Workforce of 
        the House of Representatives'' and inserting ``Committee on 
        Education and Labor of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of the 
        Senate''.

SEC. 912. INTERNATIONAL STUDENTS.

    (a) Enrollment.--Section 209(a) of the Education of the Deaf Act of 
1986 (20 U.S.C. 4359a(a)) is amended by striking ``preparatory, 
undergraduate,'' and inserting ``undergraduate''.
    (b) Tuition Surcharge.--Section 209(b) of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4359a(b)) is amended by striking ``preparatory, 
undergraduate'' and inserting ``undergraduate''.
    (c) Definition.--Section 209(d) of the Education of the Deaf Act of 
1986 (20 U.S.C. 4359a(d)) is amended by striking ``1990 per capita 
income'' and all that follows and inserting ``per-capita income of not 
more than $5,125, measured in 2002 United States dollars and adjusted 
by the Secretary to reflect inflation since 2002.''.

SEC. 913. RESEARCH PRIORITIES.

    Section 210(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359b(b)) is amended by striking ``Committee on Labor and Human 
Resources'' and inserting ``Committee on Health, Education, Labor, and 
Pensions''.

SEC. 914. AUTHORIZATION OF APPROPRIATIONS.

    (a) Monitoring and Evaluation Activities.--Section 205(c) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by 
striking ``fiscal years 1998 through 2003'' and inserting ``fiscal 
years 2008 through 2013''.
    (b) Federal Endowment Programs for Gallaudet University and the 
National Technical Institute for the Deaf.--Section 207(h) of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is amended in 
paragraphs (1) and (2) by striking ``fiscal years 1998 through 2003'' 
each place it appears and inserting ``fiscal years 2008 through 2013''.
    (c) General Authorization of Appropriations.--Section 212 of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
            (1) in the matter preceding paragraph (1) in subsection 
        (a), by striking ``fiscal years 1998 through 2003'' and 
        inserting ``fiscal years 2008 through 2013''; and
            (2) in subsection (b), by striking ``fiscal years 1998 
        through 2003'' and inserting ``fiscal years 2008 through 
        2013''.
    (d) Short Title.--
            (1) In general.--The Education of the Deaf Act of 1986 (20 
        U.S.C. 4301 note) is amended by striking the matter preceding 
        title I and inserting the following:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Gallaudet University and National 
Technical Institute for the Deaf Act'.''.
            (2) Other references.--Any reference in a law, regulation, 
        document, or other record of the United States to the Education 
        of the Deaf Act of 1986 shall be deemed to be a reference to 
        the Gallaudet University and National Technical Institute for 
        the Deaf Act.

                   PART B--ADDITIONAL EDUCATION LAWS

SEC. 921. AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998.

    (a) Repeals of Expired and Executed Provisions.--The following 
provisions of the Higher Education Amendments of 1998 are repealed:
            (1) Study of market mechanisms in federal student loan 
        programs.--Section 801 (20 U.S.C. 1018 note).
            (2) Study of feasibility of alternate financial instruments 
        for determining lender yields.--Section 802.
            (3) Student related debt study.--Section 803 (20 U.S.C. 
        1015 note).
            (4) Community scholarship mobilization.--Part C of title 
        VIII (20 U.S.C. 1070 note).
            (5) Incarcerated youth.--Part D of title VIII (20 U.S.C. 
        1151).
            (6) Improving united states understanding of science, 
        engineering, and technology in east asia.--Part F of title VIII 
        (42 U.S.C. 1862 note).
            (7) Web-based education commission.--Part J of title VIII.
    (b) Extensions of Authorizations and Studies.--
            (1) Transfer of credit.--Section 804(b) of such Act (20 
        U.S.C. 1099b note) is amended--
                    (A) by striking ``one year after the date of 
                enactment of this Act'' and inserting ``September 30, 
                2008''; and
                    (B) by inserting ``and policies of institutions of 
                higher education'' after ``agencies or associations''.
            (2) Cohort default rate study.--Section 806 of such Act is 
        amended--
                    (A) in subsection (a), by striking ``higher 
                education at which less'' and inserting ``higher 
                education. The study shall also review the effect of 
                cohort default rates specifically on institutions of 
                higher education at which less''; and
                    (B) in subsection (c), by striking ``September 30, 
                1999,'' and inserting ``September 30, 2008,''.
            (3) Underground railroad.--Subsection (c) of section 841 
        (20 U.S.C. 1153(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $3,000,000 for fiscal year 2008 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.''.

SEC. 922. TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF 
              1978.

    (a) Title I Authorization.--Section 110(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1810(a)) is amended--
            (1) by striking ``1999'' each place it appears and 
        inserting ``2008''; and
            (2) by striking ``4 succeeding'' each place it appears and 
        inserting ``5 succeeding''.
    (b) Title III Reauthorization.--Section 306(a) of the Tribally 
Controlled Community College or University Assistance Act of 1978 (25 
U.S.C. 1836(a)) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (c) Title IV Reauthorization.--Section 403 of the Tribal Economic 
Development and Technology Related Education Assistance Act of 1990 (25 
U.S.C. 1852) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.
    (d) Additional Amendments.--The Tribally Controlled Community 
College or University Assistance Act of 1978 is further amended--
            (1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking 
        ``in the field of Indian education'' and inserting ``in the 
        field of Tribal Colleges and Universities and Indian higher 
        education'';
            (2) in section 2(b), by striking paragraph (5) and 
        inserting the following:
            ``(5) Eligible credits earned in a continuing education 
        program shall be determined as one credit for every 10 contact 
        hours for institutions on a quarter system, and 15 contact 
        hours for institutions on a semester system, of participation 
        in an organized continuing education experience under 
        responsible sponsorship, capable direction, and qualified 
        instruction, as described in the criteria established by the 
        International Association for Continuing Education and 
        Training, and may not exceed 20 percent of an institution's 
        total Indian student count.''; and
            (3) in section 103 (25 U.S.C. 1804), by striking ``and'' at 
        the end of paragraph (2), by striking the period at the end of 
        paragraph (3) and inserting ``; and'', and by inserting after 
        paragraph (3) the following new paragraph:
            ``(4) has been accredited by a nationally recognized 
        accrediting agency or association determined by the Secretary 
        of Education 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.''.

SEC. 923. NAVAJO COMMUNITY COLLEGE ACT.

    Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 
640c-1(a)(1)) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 924. EDUCATION AMENDMENTS OF 1992.

    Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070 
note) is amended--
            (1) by striking ``1999'' and inserting ``2008''; and
            (2) by striking ``4 succeeding'' and inserting ``5 
        succeeding''.

SEC. 925. STUDY OF STUDENT LEARNING OUTCOMES AND PUBLIC ACCOUNTABILITY.

    (a) Study Required.--The Secretary shall provide for the conduct a 
study of the best practices of States in assessing undergraduate 
postsecondary student learning, particularly as such practices relate 
to public accountability systems.
    (b) Characteristics of the Association.--Such study shall be 
conducted by an association or organization with specific expertise and 
knowledge in state practices and access to necessary state officials 
(in this section referred to as the ``association''). The association 
responsible for the study under this section shall be a national, non-
partisan or bi-partisan entity representing States or State officials 
with expertise in evaluative and qualitative policy research for best 
practice models, the capacity to convene experts, and to formulate 
policy recommendations.
    (c) Required Subjects of Study.--In performing the study, the 
association shall, at a minimum, examine the following:
            (1) The current status of institutional and state efforts 
        to embed student learning assessments into the state-level 
        public accountability frameworks.
            (2) The extent to which there is commonality among 
        educators and accrediting agencies on learning standards for 
        the associates and bachelors degrees.
            (3) The reliability, rigor, and generalizability of 
        available instruments to assess general education at the 
        undergraduate level.
            (4) Roles and responsibilities for public accountability 
        for student learning.
    (d) Consultation.--
            (1) National committee.--The association shall establish 
        and consult with a national committee. The committee shall meet 
        not less than twice a year to review the research, identify 
        best practice models, and review recommendations.
            (2) Membership.--The national advisory committee shall 
        consist of a representative of the Secretary of Education and 
        individuals with expertise in--
                    (A) State accountability systems;
                    (B) student learning assessments;
                    (C) student flow data;
                    (D) transitions between K-12 and higher education; 
                and
                    (E) Federal higher education policy.
            (3) Additional expertise.--The association may augment this 
        committee with other expertise, as appropriate.
    (e) Congressional Consultation.--The association shall consult on a 
regular basis with the Committee on Education and Labor of the House of 
Representatives and the Committee on Health Education Labor and 
Pensions of the Senate in carrying out the study required by this 
section.
    (f) Report.--The association shall, not later than two years after 
the date of enactment of this Act, prepare and submit a report on the 
study required by this section to the Committee on Education and Labor 
of the House of Representatives and the Committee on Health, Education, 
Labor, and Pensions of the Senate.

SEC. 926. STUDY OF EDUCATION-RELATED INDEBTEDNESS OF MEDICAL SCHOOL 
              GRADUATES.

    (a) Study Required.--The Secretary of Education shall conduct a 
study to evaluate the higher education-related indebtedness of medical 
school graduates in the United States at the time of graduation.
    (b) Deadline.--Not later than one year after the date of enactment 
of this Act, the Secretary shall submit a report on the study required 
by subsection (a) to the Committee on Education and Labor of the House 
of Representatives and the Committee on Health, Education, Labor and 
Pensions of the Senate, and shall make the report widely available to 
the public. Additional reports may be periodically prepared and 
released as necessary.

SEC. 927. INCREASE IN COLLEGE TEXTBOOK PRICES.

    (a) Findings.--The Committee on Education and Labor of the House of 
Representatives makes the following findings:
            (1) The rising costs of higher education are making a 
        postsecondary education inaccessible for many individuals.
            (2) The rise in college textbook pricing contributes to the 
        overall costs of higher education, and many factors have 
        contributed to the rise in textbook pricing.
    (b) Sense of the Committee on Education and Labor.--It is the sense 
of the Committee on Education and Labor of the House of Representatives 
that in order to make a higher education more accessible for all 
students, the following should occur to make college textbooks more 
affordable for students:
            (1) The Congress encourages textbook publishers to provide 
        students with the option of buying materials such as textbooks, 
        CD-ROMs, access to websites, and workbooks, ``a la carte'' or 
        ``unbundled''.
            (2) Textbook publishers should work with faculty to 
        understand the cost to students of purchasing the recommended 
        textbooks.
            (3) College bookstores should work with faculty to review 
        timelines and processes for ordering and stocking selected 
        textbooks, and disclose textbook costs to faculty and students.
            (4) Colleges and universities should be encouraged to 
        implement numerous options to address textbook affordability.

SEC. 928. INDEPENDENT EVALUATION OF DISTANCE EDUCATION PROGRAMS.

    (a) Independent Evaluation.--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--
            (1) 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;
            (2) 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
            (3) 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.
    (b) Scope.--The National Academy of Sciences shall select for 
participation in the evaluation under subsection (a) a diverse group of 
institutions of higher education with respect to size, mission, and 
geographic distribution.
    (c) Interim and Final Reports.--The agreement under subsection (a) 
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--
            (1) an interim report regarding the evaluation under 
        subsection (a) not later than December 31, 2008; and
            (2) a final report regarding such evaluation not later than 
        December 31, 2009.

SEC. 929. STUDY OF CAMPUS-BASED PROGRAM ALLOCATION OF FUNDS.

    (a) Study Required.--The Comptroller General shall conduct a study 
of the Federal Supplemental Educational Opportunity Grant program, the 
Federal Work-Study program, and the Federal Perkins Loan program 
(authorized by subpart 3 of part A, and parts C and E, respectively, of 
title IV of the Higher Education Act of 1965)--
            (1) to examine the procedure for allocating funds to 
        institutions;
            (2) to compare among participating institutions the amount 
        of funds allocated and the amount of aid awarded to students on 
        a per-student basis under these programs; and
            (3) to suggest any modifications to the allocation 
        procedures to ensure appropriate distribution of funds under 
        these programs.
    (b) Report.--The Comptroller General shall submit a report on the 
study required by subsection (a)within one year of the date of 
enactment of this Act to the Committee on Education and Labor of the 
House of Representatives and the Committee on Health, Education, Labor, 
and Pensions of the Senate.

SEC. 930. SUMMIT ON SUSTAINABILITY.

    No later than May 2008, the Secretary of Education shall convene a 
summit of higher education experts working in the area of sustainable 
operations and programs, representatives from the agencies of the 
Federal Government, and business and industry leaders to focus on 
efforts of national distinction that--
            (1) encourage faculty, staff, and students at institutions 
        of higher education to establish both administrative and 
        educational sustainability programs on campus;
            (2) enhance research by faculty and students at 
        institutions of higher education in sustainability practices 
        and innovations that assist and improve sustainability;
            (3) encourage institutions of higher education to work with 
        community partners from the business, government, and nonprofit 
        sectors to design and implement sustainability programs for 
        application in the community and workplace; and
            (4) identify opportunities for partnerships involving 
        higher education institutions and the Federal Government to 
        expand sustainable operations and academic programs focused on 
        environmental and economic sustainability.

SEC. 931. STUDY OF RESIDENCY APPLICATIONS.

    (a) GAO Study Required.--The Comptroller General shall conduct a 
study to evaluate the decline, and any causes thereof, in the number of 
individuals who have been accepted into, or currently participate in, a 
graduate medical education program or fellowship (or both) to provide 
health care services that--
            (1) requires more than 5 years of total graduate medical 
        training; and
            (2) has fewer United States medical school graduate 
        applicants than total number of training and fellowship 
        positions.
    (b) Deadline.--Not later than one year after the date of enactment 
of this Act, the Comptroller General shall submit a report on the study 
required by subsection (a) to the Committee on Education and Labor of 
the House of Representatives and the Committee on Health, Education, 
Labor, and Pensions of the Senate, and shall make the report widely 
available to the public. Additional reports may be periodically 
prepared and released as necessary.
                                 <all>