[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4137 Enrolled Bill (ENR)]

        H.R.4137

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 An Act


 
  To amend and extend the Higher Education Act of 1965, and for other 
                                purposes.

    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 ``Higher Education 
Opportunity Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.

                       TITLE I--GENERAL PROVISIONS

Sec. 101. General definition of institution of higher education.
Sec. 102. Definition of institution of higher education for purposes of 
          title IV programs.
Sec. 103. Additional definitions.
Sec. 104. Protection of student speech and association rights.
Sec. 105. Treatment of territories and territorial student assistance.
Sec. 106. National Advisory Committee on Institutional Quality and 
          Integrity.
Sec. 107. Drug and alcohol abuse prevention.
Sec. 108. Prior rights and obligations.
Sec. 109. Diploma mills.
Sec. 110. Improved information concerning the Federal student financial 
          aid website.
Sec. 111. Transparency in college tuition for consumers.
Sec. 112. Textbook information.
Sec. 113. Database of student information prohibited.
Sec. 114. In-State tuition rates for Armed Forces members, spouses, and 
          dependent children.
Sec. 115. State higher education information system pilot program.
Sec. 116. State commitment to affordable college education.
Sec. 117. Performance-based organization for the delivery of Federal 
          student financial assistance.
Sec. 118. Procurement flexibility.
Sec. 119. Certification regarding the use of certain Federal funds.
Sec. 120. Institution and lender reporting and disclosure requirements.

                  TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Program purpose.
Sec. 302. Definitions; eligibility.
Sec. 303. American Indian tribally controlled colleges and universities.
Sec. 304. Alaska Native and Native Hawaiian-serving institutions.
Sec. 305. Predominantly Black Institutions.
Sec. 306. Native American-serving, nontribal institutions.
Sec. 307. Assistance to Asian American and Native American Pacific 
          Islander-serving institutions.
Sec. 308. Part B definitions.
Sec. 309. Grants to institutions.
Sec. 310. Allotments.
Sec. 311. Professional or graduate institutions.
Sec. 312. Unexpended funds.
Sec. 313. Endowment Challenge Grants.
Sec. 314. Historically Black college and university capital financing.
Sec. 315. Programs in STEM fields.
Sec. 316. Investing in historically Black colleges and universities and 
          other minority-serving institutions.
Sec. 317. Technical assistance.
Sec. 318. Waiver authority.
Sec. 319. Authorization of appropriations.
Sec. 320. Technical corrections.

                      TITLE IV--STUDENT ASSISTANCE

   PART A--Grants to Students in Attendance at Institutions of Higher 
                                Education

Sec. 401. Federal Pell Grants.
Sec. 402. Academic competitiveness grants.
Sec. 403. Federal TRIO Programs.
Sec. 404. Gaining early awareness and readiness for undergraduate 
          programs.
Sec. 405. Academic Achievement Incentive Scholarships.
Sec. 406. Federal Supplemental Educational Opportunity Grants.
Sec. 407. Leveraging Educational Assistance Partnership program.
Sec. 408. Special programs for students whose families are engaged in 
          migrant and seasonal farmwork.
Sec. 409. Robert C. Byrd Honors Scholarship Program.
Sec. 410. Child care access means parents in school.
Sec. 411. Learning Anytime Anywhere Partnerships.
Sec. 412. TEACH Grants.

              PART B--Federal Family Education Loan Program

Sec. 421. Limitations on amounts of loans covered by Federal insurance.
Sec. 422. Federal payments to reduce student interest costs.
Sec. 423. Voluntary flexible agreements.
Sec. 424. Federal PLUS loans.
Sec. 425. Federal consolidation loans.
Sec. 426. Default reduction program.
Sec. 427. Requirements for disbursement of student loans.
Sec. 428. Unsubsidized Stafford loan limits.
Sec. 429. Loan forgiveness for teachers employed by educational service 
          agencies.
Sec. 430. Loan forgiveness for service in areas of national need.
Sec. 431. Loan repayment for civil legal assistance attorneys.
Sec. 432. Reports to consumer reporting agencies and institutions of 
          higher education.
Sec. 433. Legal powers and responsibilities.
Sec. 434. Student loan information by eligible lenders.
Sec. 435. Consumer education information.
Sec. 436. Definitions of eligible institution and eligible lender.
Sec. 437. Discharge and cancellation rights in cases of disability.
Sec. 438. Conforming amendments for repeal of section 439.

                   PART C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Allowance for books and supplies.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Additional funds for off-campus community service.
Sec. 447. Work colleges.

                   PART D--Federal Direct Student Loan

Sec. 451. Terms and conditions of loans.
Sec. 452. Funds for administrative expenses.
Sec. 453. Guaranty agency responsibilities and payments; reports and 
          cost estimates.
Sec. 454. Loan cancellation for teachers.

                      PART E--Federal Perkins Loans

Sec. 461. Extension of authority.
Sec. 462. Allowance for books and supplies.
Sec. 463. Agreements with institutions.
Sec. 464. Perkins loan terms and conditions.
Sec. 465. Cancellation for public service.
Sec. 466. Sense of Congress regarding Federal Perkins loans.

                          PART F--Need Analysis

Sec. 471. Cost of attendance.
Sec. 472. Discretion to make adjustments.
Sec. 473. Definitions.

        PART G--General Provisions Relating to Student Assistance

Sec. 481. Definitions.
Sec. 482. Master calendar.
Sec. 483. Improvements to paper and electronic forms and processes.
Sec. 484. Model institution financial aid offer form.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations and State court judgments.
Sec. 487. Readmission requirements for servicemembers.
Sec. 488. Institutional and financial assistance information for 
          students.
Sec. 489. National Student Loan Data System.
Sec. 490. Early awareness of financial aid eligibility.
Sec. 491. Distance Education Demonstration Programs.
Sec. 492. Articulation agreements.
Sec. 493. Program participation agreements.
Sec. 494. Regulatory relief and improvement.
Sec. 494A. Transfer of allotments.
Sec. 494B. Purpose of administrative payments.
Sec. 494C. Advisory Committee on Student Financial Assistance.
Sec. 494D. Regional meetings and negotiated rulemaking.
Sec. 494E. Year 2000 requirements at the Department.
Sec. 494F. Technical amendment of income-based repayment.

                        PART H--Program Integrity

Sec. 495. Recognition of accrediting agency or association.
Sec. 496. Eligibility and certification procedures.
Sec. 497. Program review and data.
Sec. 498. Review of regulations.

             PART I--Competitive Loan Auction Pilot Program

Sec. 499. Competitive loan auction pilot program evaluation.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Authorized activities.
Sec. 502. Postbaccalaureate opportunities for Hispanic Americans.
Sec. 503. Applications.
Sec. 504. Cooperative arrangements.
Sec. 505. Authorization of appropriations.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Findings; purposes; consultation; survey.
Sec. 602. Graduate and Undergraduate Language and Area Centers and 
          Programs.
Sec. 603. Language Resource Centers.
Sec. 604. Undergraduate International Studies and Foreign Language 
          Programs.
Sec. 605. Research; studies.
Sec. 606. Technological innovation and cooperation for foreign 
          information access.
Sec. 607. Selection of certain grant recipients.
Sec. 608. American overseas research centers.
Sec. 609. Authorization of appropriations for international and foreign 
          language studies.
Sec. 610. Conforming amendments.
Sec. 611. Business and international education programs.
Sec. 612. Minority foreign service professional development program.
Sec. 613. Institutional development.
Sec. 614. Study abroad program.
Sec. 615. Advanced degree in international relations.
Sec. 616. Internships.
Sec. 617. Financial assistance.
Sec. 618. Report.
Sec. 619. Gifts and donations.
Sec. 620. Authorization of appropriations for the Institute for 
          International Public Policy.
Sec. 621. Definitions.
Sec. 622. New provisions.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Purpose.
Sec. 702. Jacob K. Javits Fellowship program.
Sec. 703. Graduate assistance in areas of national need.
Sec. 704. Thurgood Marshall Legal educational opportunity program.
Sec. 705. Sense of Congress.
Sec. 706. Masters degree programs at historically Black colleges and 
          universities and Predominantly Black Institutions.
Sec. 707. Fund for the improvement of postsecondary education.
Sec. 708. Repeal of the urban community service program.
Sec. 709. Programs to provide students with disabilities with a quality 
          higher education.
Sec. 710. Subgrants to nonprofit organizations.

                     TITLE VIII--ADDITIONAL PROGRAMS

Sec. 801. Additional programs.
Sec. 802. National Center for Research in Advanced Information and 
          Digital Technologies.
Sec. 803. Establishment of pilot program for course material rental.

                   TITLE IX--AMENDMENTS TO OTHER 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. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Cultural experiences grants.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Monitoring, evaluation, and reporting.
Sec. 908. Liaison for educational programs.
Sec. 909. Federal endowment programs for Gallaudet University and the 
          National Technical Institute for the Deaf.
Sec. 910. Oversight and effect of agreements.
Sec. 911. International students.
Sec. 912. Research priorities.
Sec. 913. National study on the education of the deaf.
Sec. 914. Authorization of appropriations.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

Sec. 921. United States Institute of Peace Act.

 PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998; THE HIGHER EDUCATION 
                           AMENDMENTS OF 1992

Sec. 931. Repeals.
Sec. 932. Grants to States for workplace and community transition 
          training for incarcerated individuals.
Sec. 933. Underground Railroad Educational and Cultural Program.
Sec. 934. Olympic Scholarships.
Sec. 935. Establishment of a Deputy Assistant Secretary for 
          International and Foreign Language Education.

    PART D--TRIBAL COLLEGE AND UNIVERSITIES; NAVAJO HIGHER EDUCATION

               subpart 1--tribal colleges and universities

Sec. 941. Reauthorization of the Tribally Controlled College or 
          University Assistance Act of 1978.

                   subpart 2--navajo higher education

Sec. 945. Short title.
Sec. 946. Reauthorization of Navajo Community College Act.

       PART E--Omnibus Crime Control and Safe Streets Act of 1968

Sec. 951. Short title.
Sec. 952. Loan repayment for prosecutors and defenders.

        PART F--Institutional Loan Repayment Assistance Programs

Sec. 961. Institutional loan forgiveness programs.

  PART G--Minority Serving Institution Digital and Wireless Technology 
                           Opportunity Program

Sec. 971. Minority Serving Institution Digital and Wireless Technology 
          Opportunity Program.
Sec. 972. Authorization of appropriations.

                TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

Sec. 1001. Short title.
Sec. 1002. Regulations.
Sec. 1003. Effective dates.

Subtitle A--Preventing Unfair and Deceptive Private Educational Lending 
             Practices and Eliminating Conflicts of Interest

Sec. 1011. Amendment to the Truth in Lending Act.
Sec. 1012. Civil liability.
Sec. 1013. Clerical amendment.

      Subtitle B--Improved Disclosures for Private Education Loans

Sec. 1021. Private education loan disclosures and limitations.
Sec. 1022. Application of Truth in Lending Act to all private education 
          loans.

                    Subtitle C--College Affordability

Sec. 1031. Community Reinvestment Act credit for low-cost loans.

           Subtitle D--Financial Literacy; Studies and Reports

Sec. 1041. Definitions.
Sec. 1042. Coordinated education efforts.

                      TITLE XI--STUDIES AND REPORTS

Sec. 1101. Study on foreign graduate medical schools.
Sec. 1102. Employment of postsecondary education graduates.
Sec. 1103. Study on IPEDS.
Sec. 1104. Report and study on articulation agreements.
Sec. 1105. Report on proprietary institutions of higher education.
Sec. 1106. Analysis of Federal regulations on institutions of higher 
          education.
Sec. 1107. Independent evaluation of distance education programs.
Sec. 1108. Review of costs and benefits of environmental, health, and 
          safety standards.
Sec. 1109. Study of minority male academic achievement.
Sec. 1110. Study on bias in standardized tests.
Sec. 1111. Endowment report.
Sec. 1112. Study of correctional postsecondary education.
Sec. 1113. Study of aid to less-than-half-time students.
Sec. 1114. Study on regional sensitivity in the needs analysis formula.
Sec. 1115. Study of the impact of student loan debt on public service.
Sec. 1116. Study on teaching students with reading disabilities.
Sec. 1117. Report on income contingent repayment through the income tax 
          withholding system.
Sec. 1118. Developing additional measures of degree completion.
Sec. 1119. Study on the financial and compliance audits of the Federal 
          student loan program.
Sec. 1120. Summit on sustainability.
Sec. 1121. Nursing school capacity.
Sec. 1122. Study and report on nonindividual information.
Sec. 1123. Feasibility study for student loan clearinghouse.
Sec. 1124. Study on Department of Education oversight of incentive 
          compensation ban.
Sec. 1125. Definition of authorizing committees.
SEC. 2. 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.).
SEC. 3. GENERAL EFFECTIVE DATE.
    Except as otherwise provided in this Act or the amendments made by 
this Act, this Act and the amendments made by this Act shall take 
effect on the date of enactment of this Act.

                      TITLE I--GENERAL PROVISIONS

    SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
    (a) Amendments.--Section 101 (20 U.S.C. 1001) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by inserting before the semicolon the 
        following: ``, or persons who meet the requirements of section 
        484(d)(3)''; and
            (B) in paragraph (3), by inserting ``, or awards a degree 
        that is acceptable for admission to a graduate or professional 
        degree program, subject to review and approval by the 
        Secretary'' after ``such a degree''; and
        (2) by striking paragraph (2) of subsection (b) and inserting 
    the following:
        ``(2) a public or nonprofit private educational institution in 
    any State that, in lieu of the requirement in subsection (a)(1), 
    admits as regular students individuals--
            ``(A) who are beyond the age of compulsory school 
        attendance in the State in which the institution is located; or
            ``(B) who will be dually or concurrently enrolled in the 
        institution and a secondary school.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on July 1, 2010.
    SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR 
      PURPOSES OF TITLE IV PROGRAMS.
    (a) International Medical Schools and Nursing Schools.--Section 
102(a)(2) (20 U.S.C. 1002(a)(2)) is amended--
        (1) in subparagraph (A)--
            (A) in the first sentence of the matter preceding clause 
        (i), by inserting ``nursing school,'' after ``graduate medical 
        school,'';
            (B) in clause (i)--
                (i) in the matter preceding subclause (I), by inserting 
            ``except as provided in subparagraph (B)(iii)(IV),'' before 
            ``in the case''; and
                (ii) by striking subclause (II) and inserting the 
            following new subclause:

                    ``(II) the institution--

                        ``(aa) has or had a clinical training program 
                    that was approved by a State as of January 1, 1992; 
                    and
                        ``(bb) continues to operate a clinical training 
                    program in at least one State that is approved by 
                    that State;'';
            (C) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
            (D) by adding at the end the following:
                ``(iii) in the case of a nursing school located outside 
            of the United States--

                    ``(I) the nursing school has an agreement with a 
                hospital, or accredited school of nursing (as such 
                terms are defined in section 801 of the Public Health 
                Service Act (42 U.S.C. 296)), located in the United 
                States that requires the students of the nursing school 
                to complete the students' clinical training at such 
                hospital or accredited school of nursing;
                    ``(II) the nursing school has an agreement with an 
                accredited school of nursing located in the United 
                States providing that the students graduating from the 
                nursing school located outside of the United States 
                also receive a degree from the accredited school of 
                nursing located in the United States;
                    ``(III) the nursing school certifies only Federal 
                Stafford Loans under section 428, unsubsidized Federal 
                Stafford Loans under section 428H, or Federal PLUS 
                loans under section 428B for students attending the 
                institution;
                    ``(IV) the nursing school reimburses the Secretary 
                for the cost of any loan defaults for current and 
                former students included in the calculation of the 
                institution's cohort default rate during the previous 
                fiscal year; and
                    ``(V) not less than 75 percent of the individuals 
                who were students or graduates of the nursing school, 
                and who took the National Council Licensure Examination 
                for Registered Nurses in the year preceding the year 
                for which the institution is certifying a Federal 
                Stafford Loan under section 428, an unsubsidized 
                Federal Stafford Loan under section 428H, or a Federal 
                PLUS loan under section 428B, received a passing score 
                on such examination.''; and

        (2) in subparagraph (B), by adding at the end the following:
                ``(iii) Report.--

                    ``(I) In general.--Not later than 1 year after the 
                date of enactment of the Higher Education Opportunity 
                Act, the advisory panel described in clause (i) shall 
                submit a report to the Secretary and to the authorizing 
                committees recommending eligibility criteria for 
                participation in the loan programs under part B of 
                title IV for graduate medical schools that--

                        ``(aa) are located outside of the United 
                    States;
                        ``(bb) do not meet the requirements of 
                    subparagraph (A)(i); and
                        ``(cc) have a clinical training program 
                    approved by a State prior to January 1, 2008.

                    ``(II) Recommendations.--In the report described in 
                subclause (I), the advisory panel's eligibility 
                criteria shall include recommendations regarding the 
                appropriate levels of performance for graduate medical 
                schools described in such subclause in the following 
                areas:

                        ``(aa) Entrance requirements.
                        ``(bb) Retention and graduation rates.
                        ``(cc) Successful placement of students in 
                    United States medical residency programs.
                        ``(dd) Passage rate of students on the United 
                    States Medical Licensing Examination.
                        ``(ee) The extent to which State medical boards 
                    have assessed the quality of such school's program 
                    of instruction, including through on-site reviews.
                        ``(ff) The extent to which graduates of such 
                    schools would be unable to practice medicine in 1 
                    or more States, based on the judgment of a State 
                    medical board.
                        ``(gg) Any areas recommended by the Comptroller 
                    General of the United States under section 1101 of 
                    the Higher Education Opportunity Act.
                        ``(hh) Any additional areas the Secretary may 
                    require.

                    ``(III) Minimum eligibility requirement.--In the 
                recommendations described in subclause (II), the 
                criteria described in subparagraph (A)(i)(I)(bb), as 
                amended by section 102(b) of the Higher Education 
                Opportunity Act, shall be a minimum eligibility 
                requirement for a graduate medical school described in 
                subclause (I) to participate in the loan programs under 
                part B of title IV.
                    ``(IV) Authority.--The Secretary may--

                        ``(aa) not earlier than 180 days after the 
                    submission of the report described in subclause 
                    (I), issue proposed regulations establishing 
                    criteria for the eligibility of graduate medical 
                    schools described in such subclause to participate 
                    in the loan programs under part B of title IV based 
                    on the recommendations of such report; and
                        ``(bb) not earlier than one year after the 
                    issuance of proposed regulations under item (aa), 
                    issue final regulations establishing such criteria 
                    for eligibility.''.
    (b) Percentage Pass Rate.--Section 102(a)(2)(A)(i)(I)(bb) (20 
U.S.C. 1002(a)(2)(A)(i)(I)(bb)) is amended by striking ``60'' and 
inserting ``75''.
    (c) Conforming Amendment Concerning 90/10 Enforcement.--Section 
102(b)(1) (20 U.S.C. 1002(b)(1)) is amended--
        (1) in subparagraph (D), by adding ``and'' after the semicolon;
        (2) in subparagraph (E), by striking ``; and'' and inserting a 
    period; and
        (3) by striking subparagraph (F).
    (d) Additional Institutions.--
        (1) Amendment.--Section 102 (20 U.S.C. 1002) is further 
    amended--
            (A) in subsection (b)--
                (i) by striking paragraph (1)(A) and inserting the 
            following:
            ``(A)(i) provides an eligible program of training to 
        prepare students for gainful employment in a recognized 
        occupation; or
            ``(ii)(I) provides a program leading to a baccalaureate 
        degree in liberal arts, and has provided such a program since 
        January 1, 2009; and
            ``(II) is accredited by a recognized regional accrediting 
        agency or association, and has continuously held such 
        accreditation since October 1, 2007, or earlier;''; and
                (ii) by striking paragraph (2) and inserting the 
            following:
        ``(2) Additional institutions.--The term `proprietary 
    institution of higher education' also includes a proprietary 
    educational institution in any State that, in lieu of the 
    requirement in section 101(a)(1), admits as regular students 
    individuals--
            ``(A) who are beyond the age of compulsory school 
        attendance in the State in which the institution is located; or
            ``(B) who will be dually or concurrently enrolled in the 
        institution and a secondary school.''; and
            (B) by striking paragraph (2) of subsection (c) and 
        inserting the following:
        ``(2) Additional institutions.--The term `postsecondary 
    vocational institution' also includes an educational institution in 
    any State that, in lieu of the requirement in section 101(a)(1), 
    admits as regular students individuals--
            ``(A) who are beyond the age of compulsory school 
        attendance in the State in which the institution is located; or
            ``(B) who will be dually or concurrently enrolled in the 
        institution and a secondary school.''.
        (2) Rule of construction.--Nothing in the amendment made by 
    paragraph (1)(A)(i) to section 102(b)(1)(A) of the Higher Education 
    Act of 1965 (20 U.S.C. 1002(b)(1)(A)) shall be construed to negate 
    or supercede any State laws governing proprietary institutions of 
    higher education.
    (e) Effective Date.--The amendments made by subsections (a)(1), 
(b), and (d) shall take effect on July 1, 2010.
    SEC. 103. ADDITIONAL DEFINITIONS.
    (a) Additional Definitions.--
        (1) Amendment.--Section 103 (20 U.S.C. 1003) is amended by 
    adding at the end the following:
        ``(17) 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.
        ``(18) Critical foreign language.--Except as otherwise 
    provided, the term `critical foreign language' means each of the 
    languages contained in the list of critical languages designated by 
    the Secretary in the Federal Register on August 2, 1985 (50 Fed. 
    Reg. 31412; promulgated under the authority of section 212(d) of 
    the Education for Economic Security Act (repealed by section 2303 
    of the Augustus F. Hawkins-Robert T. Stafford Elementary and 
    Secondary School Improvement Amendments of 1988)), as updated by 
    the Secretary from time to time and published in the Federal 
    Register, except that in the implementation of this definition with 
    respect to a specific title, the Secretary may set priorities 
    according to the purposes of such title and the national security, 
    economic competitiveness, and educational needs of the United 
    States.
        ``(19) Distance education.--
            ``(A) In general.--Except as otherwise provided, the term 
        `distance education' means education that uses one or more of 
        the technologies described in subparagraph (B)--
                ``(i) to deliver instruction to students who are 
            separated from the instructor; and
                ``(ii) to support regular and substantive interaction 
            between the students and the instructor, synchronously or 
            asynchronously.
            ``(B) Inclusions.--For the purposes of subparagraph (A), 
        the technologies used may include--
                ``(i) the Internet;
                ``(ii) one-way and two-way transmissions through open 
            broadcast, closed circuit, cable, microwave, broadband 
            lines, fiber optics, satellite, or wireless communications 
            devices;
                ``(iii) audio conferencing; or
                ``(iv) video cassettes, DVDs, and CD-ROMs, if the 
            cassettes, DVDs, or CD-ROMs are used in a course in 
            conjunction with any of the technologies listed in clauses 
            (i) through (iii).
        ``(20) Diploma mill.--The term `diploma mill' means an entity 
    that--
            ``(A)(i) offers, for a fee, degrees, diplomas, or 
        certificates, that may be used to represent to the general 
        public that the individual possessing such a degree, diploma, 
        or certificate has completed a program of postsecondary 
        education or training; and
            ``(ii) requires such individual to complete little or no 
        education or coursework to obtain such degree, diploma, or 
        certificate; and
            ``(B) lacks accreditation by an accrediting agency or 
        association that is recognized as an accrediting agency or 
        association of institutions of higher education (as such term 
        is defined in section 102) by--
                ``(i) the Secretary pursuant to subpart 2 of part H of 
            title IV; or
                ``(ii) a Federal agency, State government, or other 
            organization or association that recognizes accrediting 
            agencies or associations.
        ``(21) Early childhood education program.--The term `early 
    childhood education program' means--
            ``(A) a Head Start program or an Early Head Start program 
        carried out under the Head Start Act (42 U.S.C. 9831 et seq.), 
        including a migrant or seasonal Head Start program, an Indian 
        Head Start program, or a Head Start program or an Early Head 
        Start program that also receives State funding;
            ``(B) a State licensed or regulated child care program; or
            ``(C) a program that--
                ``(i) serves children from birth through age six that 
            addresses the children's cognitive (including language, 
            early literacy, and early mathematics), social, emotional, 
            and physical development; and
                ``(ii) is--

                    ``(I) a State prekindergarten program;
                    ``(II) a program authorized under section 619 or 
                part C of the Individuals with Disabilities Education 
                Act; or
                    ``(III) a program operated by a local educational 
                agency.

        ``(22) Poverty line.--The term `poverty line' means the poverty 
    line (as defined in section 673(2) of the Community Services Block 
    Grant Act (42 U.S.C. 9902(2)) applicable to a family of the size 
    involved.
        ``(23) Universal design.--The term `universal design' has the 
    meaning given the term in section 3 of the Assistive Technology Act 
    of 1998 (29 U.S.C. 3002).
        ``(24) Universal design for learning.--The term `universal 
    design for learning' means a scientifically valid framework for 
    guiding educational practice that--
            ``(A) provides flexibility in the ways information is 
        presented, in the ways students respond or demonstrate 
        knowledge and skills, and in the ways students are engaged; and
            ``(B) reduces barriers in instruction, provides appropriate 
        accommodations, supports, and challenges, and maintains high 
        achievement expectations for all students, including students 
        with disabilities and students who are limited English 
        proficient.''.
        (2) Redesignation and reordering of definitions.--Section 103 
    (as amended by paragraph (1)) (20 U.S.C. 1003) is further amended 
    by reordering paragraphs (1) through (16) and the paragraphs added 
    by paragraph (1) of this subsection in alphabetical order based on 
    the headings of such paragraphs, and renumbering such paragraphs as 
    so reordered.
    (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
amended--
        (1) in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), 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'';
        (2) in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), 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'';
        (3) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by striking 
    ``to the Committee on Appropriations'' and all that follows through 
    ``House of Representatives'' and inserting ``to the Committee on 
    Appropriations of the Senate, the Committee on Appropriations of 
    the House of Representatives, and the authorizing committees'';
        (4) in section 428 (20 U.S.C. 1078)--
            (A) in subsection (c)(9)(K), by striking ``House Committee 
        on Education and the Workforce and the Senate Committee on 
        Labor and Human Resources'' and inserting ``authorizing 
        committees'';
            (B) in the matter following paragraph (2) of subsection 
        (g), 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'';
            (C) in subsection (j)(9)(A) (as added by section 5(a) of 
        the Ensuring Continued Access to Student Loans Act of 2008), by 
        striking ``Committee on Health, Education, Labor, and Pensions 
        of the Senate and the Committee on Education and Labor of the 
        House of Representatives'' each place the term appears and 
        inserting ``authorizing committees''; and
            (D) in subsection (n)(4), 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'';
        (5) in section 428A(c) (20 U.S.C. 1078-1(c))--
            (A) in the matter preceding subparagraph (A) of paragraph 
        (2), by striking ``Chairperson'' and all that follows through 
        ``House of Representatives'' and inserting ``members of the 
        authorizing committees'';
            (B) in paragraph (3), by striking ``Chairperson'' and all 
        that follows through ``House of Representatives'' and inserting 
        ``members of the authorizing committees''; and
            (C) in paragraph (5), by striking ``Chairperson'' and all 
        that follows through ``House of Representatives'' and inserting 
        ``members of the authorizing committees'';
        (6) in section 432 (20 U.S.C. 1082)--
            (A) in subsection (f)(1)(C), by striking ``the 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''; and
            (B) in the matter following subparagraph (D) of subsection 
        (n)(3), 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'';
        (7) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), 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'';
        (8) in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), 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'';
        (9) in section 482(d) (20 U.S.C. 1089(d)), 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'';
        (10) in section 483(c) (20 U.S.C. 1090(c)), 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'';
        (11) in section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)), 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'';
        (12) in section 486(e) (20 U.S.C. 1093(e)), 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''; and
        (13) in section 487A(a)(5) (20 U.S.C. 1094a(a)(5)), 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''.
    SEC. 104. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.
    Section 112 (20 U.S.C. 1011a) is amended--
        (1) in subsection (a)--
            (A) by inserting ``(1)'' before ``It is the sense''; and
            (B) by adding at the end the following:
    ``(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 institutions of higher education have 
    different missions and each institution should design its academic 
    program in accordance with its educational goals;
        ``(C) an institution of higher education should facilitate the 
    free and open exchange of ideas;
        ``(D) students should not be intimidated, harassed, discouraged 
    from speaking out, or discriminated against;
        ``(E) students should be treated equally and fairly; and
        ``(F) nothing in this paragraph 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 ``, provided that the 
    imposition of such sanction is done objectively and fairly'' after 
    ``higher education''.
    SEC. 105. 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. 106. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
      INTEGRITY.
    (a) Amendment.--Section 114 (20 U.S.C. 1011c) is amended to read as 
follows:
    ``SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY 
      AND INTEGRITY.
    ``(a) Establishment.--There is established in the Department a 
National Advisory Committee on Institutional Quality and Integrity (in 
this section referred to as the `Committee') to assess the process of 
accreditation and the institutional eligibility and certification of 
institutions of higher education (as defined in section 102) under 
title IV.
    ``(b) Membership.--
        ``(1) In general.--The Committee shall have 18 members, of 
    which--
            ``(A) six members shall be appointed by the Secretary;
            ``(B) six members shall be appointed by the Speaker of the 
        House of Representatives, three of whom shall be appointed on 
        the recommendation of the majority leader of the House of 
        Representatives, and three of whom shall be appointed on the 
        recommendation of the minority leader of the House of 
        Representatives; and
            ``(C) six members shall be appointed by the President pro 
        tempore of the Senate, three of whom shall be appointed on the 
        recommendation of the majority leader of the Senate, and three 
        of whom shall be appointed on the recommendation of the 
        minority leader of the Senate.
        ``(2) Qualifications.--Individuals shall be appointed as 
    members of the Committee--
            ``(A) on the basis of the individuals' experience, 
        integrity, impartiality, and good judgment;
            ``(B) from among individuals who are representatives of, or 
        knowledgeable concerning, education and training beyond 
        secondary education, representing all sectors and types of 
        institutions of higher education (as defined in section 102); 
        and
            ``(C) on the basis of the individuals' technical 
        qualifications, professional standing, and demonstrated 
        knowledge in the fields of accreditation and administration in 
        higher education.
        ``(3) Terms of members.--Except as provided in paragraph (5), 
    the term of office of each member of the Committee shall be for six 
    years, except that any member appointed to fill a vacancy occurring 
    prior to the expiration of the term for which the member's 
    predecessor was appointed shall be appointed for the remainder of 
    such term.
        ``(4) Vacancy.--A vacancy on the Committee shall be filled in 
    the same manner as the original appointment was made not later than 
    90 days after the vacancy occurs. If a vacancy occurs in a position 
    to be filled by the Secretary, the Secretary shall publish a 
    Federal Register notice soliciting nominations for the position not 
    later than 30 days after being notified of the vacancy.
        ``(5) Initial terms.--The terms of office for the initial 
    members of the Committee shall be--
            ``(A) three years for members appointed under paragraph 
        (1)(A);
            ``(B) four years for members appointed under paragraph 
        (1)(B); and
            ``(C) six years for members appointed under paragraph 
        (1)(C).
        ``(6) Chairperson.--The members of the Committee shall select a 
    chairperson from among the members.
    ``(c) Functions.--The Committee shall--
        ``(1) advise the Secretary with respect to establishment and 
    enforcement of the standards of accrediting agencies or 
    associations under subpart 2 of part H of title IV;
        ``(2) advise the Secretary with respect to the recognition of a 
    specific accrediting agency or association;
        ``(3) advise the Secretary with respect to the preparation and 
    publication of the list of nationally recognized accrediting 
    agencies and associations;
        ``(4) advise the Secretary with respect to the eligibility and 
    certification process for institutions of higher education under 
    title IV, together with recommendations for improvements in such 
    process;
        ``(5) advise the Secretary with respect to the relationship 
    between--
            ``(A) accreditation of institutions of higher education and 
        the certification and eligibility of such institutions; and
            ``(B) State licensing responsibilities with respect to such 
        institutions; and
        ``(6) carry out such other advisory functions relating to 
    accreditation and institutional eligibility as the Secretary may 
    prescribe by regulation.
    ``(d) Meeting Procedures.--
        ``(1) Schedule.--
            ``(A) Biannual meetings.--The Committee shall meet not less 
        often than twice each year, at the call of the Chairperson.
            ``(B) Publication of date.--The Committee shall submit the 
        date and location of each meeting in advance to the Secretary, 
        and the Secretary shall publish such information in the Federal 
        Register not later than 30 days before the meeting.
        ``(2) Agenda.--
            ``(A) Establishment.--The agenda for a meeting of the 
        Committee shall be established by the Chairperson and shall be 
        submitted to the members of the Committee upon notification of 
        the meeting.
            ``(B) Opportunity for public comment.--The agenda shall 
        include, at a minimum, opportunity for public comment during 
        the Committee's deliberations.
        ``(3) Secretary's designee.--The Secretary shall designate an 
    employee of the Department to serve as the Secretary's designee to 
    the Committee, and the Chairperson shall invite the Secretary's 
    designee to attend all meetings of the Committee.
        ``(4) Federal advisory committee act.--The Federal Advisory 
    Committee Act (5 U.S.C. App.) shall apply to the Committee, except 
    that section 14 of such Act shall not apply.
    ``(e) Report and Notice.--
        ``(1) Notice.--The Secretary shall annually publish in the 
    Federal Register--
            ``(A) a list containing, for each member of the Committee--
                ``(i) the member's name;
                ``(ii) the date of the expiration of the member's term 
            of office; and
                ``(iii) the name of the individual described in 
            subsection (b)(1) who appointed the member; and
            ``(B) a solicitation of nominations for each expiring term 
        of office on the Committee of a member appointed by the 
        Secretary.
        ``(2) Report.--Not later than the last day of each fiscal year, 
    the Committee shall make available an annual report to the 
    Secretary, the authorizing committees, and the public. The annual 
    report shall contain--
            ``(A) a detailed summary of the agenda and activities of, 
        and the findings and recommendations made by, the Committee 
        during the fiscal year preceding the fiscal year in which the 
        report is made;
            ``(B) a list of the date and location of each meeting 
        during the fiscal year preceding the fiscal year in which the 
        report is made;
            ``(C) a list of the members of the Committee; and
            ``(D) a list of the functions of the Committee, including 
        any additional functions established by the Secretary through 
        regulation.
    ``(f) Termination.--The Committee shall terminate on September 30, 
2014.''.
    (b) Transition.--Notwithstanding section 114 of the Higher 
Education Act of 1965 (20 U.S.C. 1011c) (as in effect before, during, 
and after the date of enactment of this Act)--
        (1) the term of each member appointed to the National Advisory 
    Committee on Institutional Quality and Integrity before the date of 
    enactment of this Act shall expire on the date of enactment of this 
    Act;
        (2) no new members shall be appointed to the National Advisory 
    Committee on Institutional Quality and Integrity during the period 
    beginning on the date of enactment of this Act and ending on 
    January 31, 2009; and
        (3) no meeting of the National Advisory Committee on 
    Institutional Quality and Integrity shall be convened during such 
    period.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 2009.
    SEC. 107. DRUG AND ALCOHOL ABUSE PREVENTION.
    Section 120 (20 U.S.C. 1011i) is amended--
        (1) in subsection (a)(2)--
            (A) in subparagraph (A), by striking ``and'' after the 
        semicolon;
            (B) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (C) by inserting after subparagraph (A) the following:
            ``(B) determine the number of drug and alcohol-related 
        violations and fatalities that--
                ``(i) occur on the institution's campus (as defined in 
            section 485(f)(6)), or as part of any of the institution's 
            activities; and
                ``(ii) are reported to campus officials;
            ``(C) determine the number and type of sanctions described 
        in paragraph (1)(E) that are imposed by the institution as a 
        result of drug and alcohol-related violations and fatalities on 
        the institution's campus or as part of any of the institution's 
        activities; and'';
        (2) in subsection (e)(5), by striking ``$5,000,000'' and all 
    that follows through the period at the end and inserting ``such 
    sums as may be necessary for fiscal year 2009 and each of the five 
    succeeding fiscal years.''; and
        (3) by striking subsection (f).
    SEC. 108. PRIOR RIGHTS AND OBLIGATIONS.
    Section 121(a) (20 U.S.C. 1011j(a)) is amended--
        (1) in paragraph (1), by striking ``1999 and for each of the 4 
    succeeding fiscal years'' and inserting ``2009 and for each 
    succeeding fiscal year''; and
        (2) in paragraph (2), by striking ``1999 and for each of the 4 
    succeeding fiscal years'' and inserting ``2009 and for each 
    succeeding fiscal year''.
    SEC. 109. DIPLOMA MILLS.
    Part B of title I (20 U.S.C. 1011 et seq.) is further amended by 
adding at the end the following:
    ``SEC. 123. DIPLOMA MILLS.
    ``(a) Information to the Public.--The Secretary shall maintain 
information and resources on the Department's website to assist 
students, families, and employers in understanding what a diploma mill 
is and how to identify and avoid diploma mills.
    ``(b) Collaboration.--The Secretary shall continue to collaborate 
with the United States Postal Service, the Federal Trade Commission, 
the Department of Justice (including the Federal Bureau of 
Investigation), the Internal Revenue Service, and the Office of 
Personnel Management to maximize Federal efforts to--
        ``(1) prevent, identify, and prosecute diploma mills; and
        ``(2) broadly disseminate to the public information about 
    diploma mills, and resources to identify diploma mills.''.
    SEC. 110. IMPROVED INFORMATION CONCERNING THE FEDERAL STUDENT 
      FINANCIAL AID WEBSITE.
    (a) Promotion of Federal Student Financial Aid Website.--Section 
131 (20 U.S.C. 1015) is amended by striking subsection (d) and 
inserting the following:
    ``(d) Promotion of the Department of Education Federal Student 
Financial Aid Website.--The Secretary shall display a link to the 
Federal student financial aid website of the Department in a prominent 
place on the homepage of the Department's website.
    ``(e) Enhanced Student Financial Aid Information.--
        ``(1) Implementation.--The Secretary shall continue to improve 
    the usefulness and accessibility of the information provided by the 
    Department on college planning and student financial aid.
        ``(2) Dissemination.--The Secretary shall continue to make the 
    availability of the information on the Federal student financial 
    aid website of the Department widely known, through a major media 
    campaign and other forms of communication.
        ``(3) Coordination.--As a part of the efforts required under 
    this subsection, the Secretary shall create one website accessible 
    from the Department's website that fulfills the requirements under 
    subsections (b), (f), and (g).''.
    (b) Improved Information Concerning Financial Aid for Military 
Members and Veterans.--Section 131 (as amended by subsection (a)) (20 
U.S.C. 1015) is further amended by adding at the end the following:
    ``(f) Improved Availability and Coordination of Information 
Concerning Student Financial Aid Programs for Military Members and 
Veterans.--
        ``(1) Coordination.--The Secretary, in coordination with the 
    Secretary of Defense and the Secretary of Veterans Affairs, shall 
    create a searchable website that--
            ``(A) contains information, in simple and understandable 
        terms, about all Federal and State student financial 
        assistance, readmission requirements under section 484C, and 
        other student services, for which members of the Armed Forces 
        (including members of the National Guard and Reserves), 
        veterans, and the dependents of such members or veterans may be 
        eligible; and
            ``(B) is easily accessible through the website described in 
        subsection (e)(3).
        ``(2) Implementation.--Not later than one year after the date 
    of enactment of the Higher Education Opportunity Act, the Secretary 
    shall make publicly available the Armed Forces information website 
    described in paragraph (1).
        ``(3) Dissemination.--The Secretary, in coordination with the 
    Secretary of Defense and the Secretary of Veterans Affairs, shall 
    make the availability of the Armed Forces information website 
    described in paragraph (1) widely known to members of the Armed 
    Forces (including members of the National Guard and Reserves), 
    veterans, the dependents of such members or veterans, States, 
    institutions of higher education, and the general public.
        ``(4) Definition.--In this subsection, the term `Federal and 
    State student financial assistance' means any grant, loan, work 
    assistance, tuition assistance, scholarship, fellowship, or other 
    form of financial aid for pursuing a postsecondary education that 
    is--
            ``(A) administered, sponsored, or supported by the 
        Department of Education, the Department of Defense, the 
        Department of Veterans Affairs, or a State; and
            ``(B) available to members of the Armed Forces (including 
        members of the National Guard and Reserves), veterans, or the 
        dependents of such members or veterans.
    ``(g) Promotion of Availability of Information Concerning Other 
Student Financial Aid Programs.--
        ``(1) Definition.--For purposes of this subsection, the term 
    `nondepartmental 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 an institution of higher education; and
            ``(B) operated, sponsored, or supported by a Federal 
        department or agency other than the Department of Education.
        ``(2) Availability of other student financial aid 
    information.--The Secretary shall ensure that--
            ``(A) not later than 90 days after the Secretary receives 
        the information required under paragraph (3), the eligibility 
        requirements, application procedures, financial terms and 
        conditions, and other relevant information for each 
        nondepartmental student financial assistance program are 
        searchable and accessible through the Federal student financial 
        aid website in a manner that is simple and understandable for 
        students and the students' families; and
            ``(B) the website displaying the information described in 
        subparagraph (A) includes a link to the National Database on 
        Financial Assistance for the Study of Science, Technology, 
        Engineering, and Mathematics pursuant to paragraph (4), and the 
        information on military benefits under subsection (f), once 
        such Database and information are available.
        ``(3) Nondepartmental student financial assistance programs.--
    The Secretary shall request all Federal departments and agencies to 
    provide the information described in paragraph (2)(A), and each 
    Federal department or agency shall--
            ``(A) promptly respond to surveys or other requests from 
        the Secretary for the information described in such paragraph; 
        and
            ``(B) identify for the Secretary any nondepartmental 
        student financial assistance program operated, sponsored, or 
        supported by such Federal department or agency.
        ``(4) National stem database.--
            ``(A) In general.--The Secretary shall establish and 
        maintain, on the website described in subsection (e)(3), a 
        National Database on Financial Assistance for the Study of 
        Science, Technology, Engineering, and Mathematics (in this 
        paragraph referred to as the `STEM Database'). The STEM 
        Database shall consist of information on scholarships, 
        fellowships, and other programs of Federal, State, local, and, 
        to the maximum extent practicable, private financial assistance 
        available for the study of science, technology, engineering, or 
        mathematics at the postsecondary and postbaccalaureate levels.
            ``(B) Database contents.--The information maintained on the 
        STEM Database shall be displayed on the website in the 
        following manner:
                ``(i) Separate information.--The STEM Database shall 
            provide separate information for each of the fields of 
            science, technology, engineering, and mathematics, and for 
            postsecondary and postbaccalaureate programs of financial 
            assistance.
                ``(ii) Information on targeted assistance.--The STEM 
            Database shall provide specific information on any program 
            of financial assistance that is targeted to individuals 
            based on financial need, merit, or student characteristics.
                ``(iii) Contact and website information.--The STEM 
            Database shall provide--

                    ``(I) standard contact information that an 
                interested person may use to contact a sponsor of any 
                program of financial assistance included in the STEM 
                Database; and
                    ``(II) if such sponsor maintains a public website, 
                a link to the website.

                ``(iv) Search and match capabilities.--The STEM 
            Database shall--

                    ``(I) have a search capability that permits an 
                individual to search for information on the basis of 
                each category of the information provided through the 
                STEM Database and on the basis of combinations of 
                categories of the information provided, including--

                        ``(aa) whether the financial assistance is 
                    need- or merit-based; and
                        ``(bb) by relevant academic majors; and

                    ``(II) have a match capability that--

                        ``(aa) searches the STEM Database for all 
                    financial assistance opportunities for which an 
                    individual may be qualified to apply, based on the 
                    student characteristics provided by such 
                    individual; and
                        ``(bb) provides information to an individual 
                    for only those opportunities for which such 
                    individual is qualified, based on the student 
                    characteristics provided by such individual.
                ``(v) Recommendation and disclaimer.--The STEM Database 
            shall provide, to the users of the STEM Database--

                    ``(I) a recommendation that students and families 
                should carefully review all of the application 
                requirements prior to applying for any aid or program 
                of student financial assistance; and
                    ``(II) a disclaimer that the non-Federal programs 
                of student financial assistance presented in the STEM 
                Database are not provided or endorsed by the Department 
                or the Federal Government.

            ``(C) Compilation of financial assistance information.--In 
        carrying out this paragraph, the Secretary shall--
                ``(i) consult with public and private sources of 
            scholarships, fellowships, and other programs of student 
            financial assistance; and
                ``(ii) make easily available a process for such 
            entities to provide regular and updated information about 
            the scholarships, fellowships, or other programs of student 
            financial assistance.
            ``(D) Contract authorized.--In carrying out the 
        requirements of this paragraph, the Secretary is authorized to 
        enter into a contract with a private entity with demonstrated 
        expertise in creating and maintaining databases such as the one 
        required under this paragraph, under which contract the entity 
        shall furnish, and regularly update, all of the information 
        required to be maintained on the STEM Database.
        ``(5) Dissemination of information.--The Secretary shall take 
    such actions, on an ongoing basis, as may be necessary to 
    disseminate information under this subsection and to encourage the 
    use of the information by interested parties, including sending 
    notices to secondary schools and institutions of higher 
    education.''.
    (c) No User Fees for Department Financial Aid Websites.--Section 
131 (as amended by subsection (b)) (20 U.S.C. 1015) is further amended 
by adding at the end the following:
    ``(h) No User Fees for Department Financial Aid Websites.--No fee 
shall be charged to any individual to access--
        ``(1) a database or website of the Department that provides 
    information about higher education programs or student financial 
    assistance, including the College Navigator website (or successor 
    website) and the websites and databases described in this section 
    and section 132; or
        ``(2) information about higher education programs or student 
    financial assistance available through a database or website of the 
    Department.''.
    SEC. 111. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
    Part C of title I (20 U.S.C. 1015) is amended by adding at the end 
the following:
    ``SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.
    ``(a) Definitions.--In this section:
        ``(1) College navigator website.--The term `College Navigator 
    website' means the College Navigator website operated by the 
    Department and includes any successor website.
        ``(2) Cost of attendance.--The term `cost of attendance' means 
    the average annual cost of tuition and fees, room and board, books, 
    supplies, and transportation for an institution of higher education 
    for a first-time, full-time undergraduate student enrolled in the 
    institution.
        ``(3) Net price.--The term `net price' means the average yearly 
    price actually charged to first-time, full-time undergraduate 
    students receiving student aid at an institution of higher 
    education after deducting such aid, which shall be determined by 
    calculating the difference between--
            ``(A) the institution's cost of attendance for the year for 
        which the determination is made; and
            ``(B) the quotient of--
                ``(i) the total amount of need-based grant aid and 
            merit-based grant aid, from Federal, State, and 
            institutional sources, provided to such students enrolled 
            in the institution for such year; and
                ``(ii) the total number of such students receiving such 
            need-based grant aid or merit-based grant aid for such 
            year.
        ``(4) Tuition and fees.--The term `tuition and fees' means the 
    average annual cost of tuition and fees for an institution of 
    higher education for first-time, full-time undergraduate students 
    enrolled in the institution.
    ``(b) Calculations for Public Institutions.--In making the 
calculations regarding cost of attendance, net price, and tuition and 
fees under this section with respect to a public institution of higher 
education, the Secretary shall calculate the cost of attendance, net 
price, and tuition and fees at such institution in the manner described 
in subsection (a), except that--
        ``(1) the cost of attendance, net price, and tuition and fees 
    shall be calculated for first-time, full-time undergraduate 
    students enrolled in the institution who are residents of the State 
    in which such institution is located; and
        ``(2) in determining the net price, the average need-based 
    grant aid and merit-based grant aid described in subsection 
    (a)(3)(B) shall be calculated based on the average total amount of 
    such aid received by first-time, full-time undergraduate students 
    who are residents of the State in which such institution is 
    located, divided by the total number of such resident students 
    receiving such need-based grant aid or merit-based grant aid at 
    such institution.
    ``(c) College Affordability and Transparency Lists.--
        ``(1) Availability of lists.--Beginning July 1, 2011, the 
    Secretary shall make publicly available on the College Navigator 
    website, in a manner that is sortable and searchable by State, the 
    following:
            ``(A) A list of the five percent of institutions in each 
        category described in subsection (d) that have the highest 
        tuition and fees for the most recent academic year for which 
        data are available.
            ``(B) A list of the five percent of institutions in each 
        such category that have the highest net price for the most 
        recent academic year for which data are available.
            ``(C) A list of the five percent of institutions in each 
        such category that have the largest increase, expressed as a 
        percentage change, in tuition and fees over the most recent 
        three academic years for which data are available, using the 
        first academic year of the three-year period as the base year 
        to compute such percentage change.
            ``(D) A list of the five percent of institutions in each 
        such category that have the largest increase, expressed as a 
        percentage change, in net price over the most recent three 
        academic years for which data are available, using the first 
        academic year of the three-year period as the base year to 
        compute such percentage change.
            ``(E) A list of the ten percent of institutions in each 
        such category that have the lowest tuition and fees for the 
        most recent academic year for which data are available.
            ``(F) A list of the ten percent of institutions in each 
        such category that have the lowest net price for the most 
        recent academic year for which data are available.
        ``(2) Annual updates.--The Secretary shall annually update the 
    lists described in paragraph (1) on the College Navigator website.
    ``(d) Categories of Institutions.--The lists described in 
subsection (c)(1) shall be compiled according to the following 
categories of institutions that participate in programs under title IV:
        ``(1) Four-year public institutions of higher education.
        ``(2) Four-year private, nonprofit institutions of higher 
    education.
        ``(3) Four-year private, for-profit institutions of higher 
    education.
        ``(4) Two-year public institutions of higher education.
        ``(5) Two-year private, nonprofit institutions of higher 
    education.
        ``(6) Two-year private, for-profit institutions of higher 
    education.
        ``(7) Less than two-year public institutions of higher 
    education.
        ``(8) Less than two-year private, nonprofit institutions of 
    higher education.
        ``(9) Less than two-year private, for-profit institutions of 
    higher education.
    ``(e) Reports by Institutions.--
        ``(1) Report to secretary.--If an institution of higher 
    education is included on a list described in subparagraph (C) or 
    (D) of subsection (c)(1), the institution shall submit to the 
    Secretary a report containing the following information:
            ``(A) A description of the major areas in the institution's 
        budget with the greatest cost increases.
            ``(B) An explanation of the cost increases described in 
        subparagraph (A).
            ``(C) A description of the steps the institution will take 
        toward the goal of reducing costs in the areas described in 
        subparagraph (A).
            ``(D) In the case of an institution that is included on the 
        same list under subparagraph (C) or (D) of subsection (c)(1) 
        for two or more consecutive years, a description of the 
        progress made on the steps described in subparagraph (C) of 
        this paragraph that were included in the institution's report 
        for the previous year.
            ``(E) If the determination of any cost increase described 
        in subparagraph (A) is not within the exclusive control of the 
        institution--
                ``(i) an explanation of the extent to which the 
            institution participates in determining such cost increase;
                ``(ii) the identification of the agency or 
            instrumentality of State government responsible for 
            determining such cost increase; and
                ``(iii) any other information the institution considers 
            relevant to the report.
        ``(2) Information to the public.--The Secretary shall--
            ``(A) issue an annual report that summarizes all of the 
        reports by institutions required under paragraph (1) to the 
        authorizing committees; and
            ``(B) publish such report on the College Navigator website.
    ``(f) Exemptions.--
        ``(1) In general.--An institution shall not be placed on a list 
    described in subparagraph (C) or (D) of subsection (c)(1), and 
    shall not be subject to the reporting required under subsection 
    (e), if the dollar amount of the institution's increase in tuition 
    and fees, or net price, as applicable, is less than $600 for the 
    three-year period described in such subparagraph.
        ``(2) Update.--Beginning in 2014, and every three years 
    thereafter, the Secretary shall update the dollar amount described 
    in paragraph (1) based on annual increases in inflation, using the 
    Consumer Price Index for each of the three most recent preceding 
    years.
    ``(g) State Higher Education Spending Chart.--The Secretary shall 
annually report on the College Navigator website, in charts for each 
State, comparisons of--
        ``(1) the percentage change in spending by such State per full-
    time equivalent student at all public institutions of higher 
    education in such State, for each of the five most recent preceding 
    academic years;
        ``(2) the percentage change in tuition and fees for such 
    students for all public institutions of higher education in such 
    State for each of the five most recent preceding academic years; 
    and
        ``(3) the percentage change in the total amount of need-based 
    aid and merit-based aid provided by such State to full-time 
    students enrolled in the public institutions of higher education in 
    the State for each of the five most recent preceding academic 
    years.
    ``(h) Net Price Calculator.--
        ``(1) Development of net price calculator.--Not later than one 
    year after the date of enactment of the Higher Education 
    Opportunity Act, the Secretary shall, in consultation with 
    institutions of higher education and other appropriate experts, 
    develop a net price calculator to help current and prospective 
    students, families, and other consumers estimate the individual net 
    price of an institution of higher education for a student. The 
    calculator shall be developed in a manner that enables current and 
    prospective students, families, and consumers to determine an 
    estimate of a current or prospective student's individual net price 
    at a particular institution.
        ``(2) Calculation of individual net price.--For purposes of 
    this subsection, an individual net price of an institution of 
    higher education shall be calculated in the same manner as the net 
    price of such institution is calculated under subsection (a)(3), 
    except that the cost of attendance and the amount of need-based and 
    merit-based aid available shall be calculated for the individual 
    student as much as practicable.
        ``(3) Use of net price calculator by institutions.--Not later 
    than two years after the date on which the Secretary makes the 
    calculator developed under paragraph (1) available to institutions 
    of higher education, each institution of higher education that 
    receives Federal funds under title IV shall make publicly available 
    on the institution's website a net price calculator to help current 
    and prospective students, families, and other consumers estimate a 
    student's individual net price at such institution of higher 
    education. Such calculator may be a net price calculator 
    developed--
            ``(A) by the Department pursuant to paragraph (1); or
            ``(B) by the institution of higher education, if the 
        institution's calculator includes, at a minimum, the same data 
        elements included in the calculator developed under paragraph 
        (1).
        ``(4) Disclaimer.--Estimates of an individual net price 
    determined using a net price calculator required under paragraph 
    (3) shall be accompanied by a clear and conspicuous notice--
            ``(A) stating that the estimate--
                ``(i) does not represent a final determination, or 
            actual award, of financial assistance;
                ``(ii) shall not be binding on the Secretary, the 
            institution of higher education, or the State; and
                ``(iii) may change;
            ``(B) stating that the student must complete the Free 
        Application for Federal Student Aid described in section 483 in 
        order to be eligible for, and receive, an actual financial aid 
        award that includes Federal grant, loan, or work-study 
        assistance under title IV; and
            ``(C) including a link to the website of the Department 
        that allows students to access the Free Application for Federal 
        Student Aid described in section 483.
    ``(i) Consumer Information.--
        ``(1) Availability of title iv institution information.--Not 
    later than one year after the date of enactment of the Higher 
    Education Opportunity Act, the Secretary shall make publicly 
    available on the College Navigator website, in simple and 
    understandable terms, the following information about each 
    institution of higher education that participates in programs under 
    title IV, for the most recent academic year for which satisfactory 
    data are available:
            ``(A) A statement of the institution's mission.
            ``(B) The total number of undergraduate students who 
        applied to, were admitted by, and enrolled in the institution.
            ``(C) For institutions that require SAT or ACT scores to be 
        submitted, the reading, writing, mathematics, and combined 
        scores on the SAT or ACT, as applicable, for the middle 50 
        percent range of the institution's freshman class.
            ``(D) The number of first-time, full-time, and part-time 
        students enrolled at the institution, at the undergraduate and 
        (if applicable) graduate levels.
            ``(E) The number of degree- or certificate-seeking 
        undergraduate students enrolled at the institution who have 
        transferred from another institution.
            ``(F) The percentages of male and female undergraduate 
        students enrolled at the institution.
            ``(G) Of the first-time, full-time, degree- or certificate-
        seeking undergraduate students enrolled at the institution--
                ``(i) the percentage of such students who are from the 
            State in which the institution is located;
                ``(ii) the percentage of such students who are from 
            other States; and
                ``(iii) the percentage of such students who are 
            international students.
            ``(H) The percentages of first-time, full-time, degree- or 
        certificate-seeking students enrolled at the institution, 
        disaggregated by race and ethnic background.
            ``(I) The percentage of undergraduate students enrolled at 
        the institution who are formally registered with the office of 
        disability services of the institution (or the equivalent 
        office) as students with disabilities, except that if such 
        percentage is three percent or less, the institution shall 
        report `three percent or less'.
            ``(J) The percentages of first-time, full-time, degree- or 
        certificate-seeking undergraduate students enrolled at the 
        institution who obtain a degree or certificate within--
                ``(i) the normal time for completion of, or graduation 
            from, the student's program;
                ``(ii) 150 percent of the normal time for completion 
            of, or graduation from, the student's program; and
                ``(iii) 200 percent of the normal time for completion 
            of, or graduation from, the student's program;
            ``(K) The number of certificates, associate degrees, 
        baccalaureate degrees, master's degrees, professional degrees, 
        and doctoral degrees awarded by the institution.
            ``(L) The undergraduate major areas of study at the 
        institution with the highest number of degrees awarded.
            ``(M) The student-faculty ratio, the number of full-time 
        and part-time faculty, and the number of graduate assistants 
        with primarily instructional responsibilities, at the 
        institution.
            ``(N)(i) The cost of attendance for first-time, full-time 
        undergraduate students enrolled in the institution who live on 
        campus;
            ``(ii) the cost of attendance for first-time, full-time 
        undergraduate students enrolled in the institution who live off 
        campus; and
            ``(iii) in the case of a public institution of higher 
        education and notwithstanding subsection (b)(1), the costs 
        described in clauses (i) and (ii), for--
                ``(I) first-time, full-time students enrolled in the 
            institution who are residents of the State in which the 
            institution is located; and
                ``(II) first-time, full-time students enrolled in the 
            institution who are not residents of such State.
            ``(O) The average annual grant amount (including Federal, 
        State, and institutional aid) awarded to a first-time, full-
        time undergraduate student enrolled at the institution who 
        receives financial aid.
            ``(P) The average annual amount of Federal student loans 
        provided through the institution to undergraduate students 
        enrolled at the institution.
            ``(Q) The total annual grant aid awarded to undergraduate 
        students enrolled at the institution, from the Federal 
        Government, a State, the institution, and other sources known 
        by the institution.
            ``(R) The percentage of first-time, full-time undergraduate 
        students enrolled at the institution receiving Federal, State, 
        and institutional grants, student loans, and any other type of 
        student financial assistance known by the institution, provided 
        publicly or through the institution, such as Federal work-study 
        funds.
            ``(S) The number of students enrolled at the institution 
        receiving Federal Pell Grants.
            ``(T) The institution's cohort default rate, as defined 
        under section 435(m).
            ``(U) The information on campus safety required to be 
        collected under section 485(i).
            ``(V) A link to the institution's website that provides, in 
        an easily accessible manner, the following information:
                ``(i) Student activities offered by the institution.
                ``(ii) Services offered by the institution for 
            individuals with disabilities.
                ``(iii) Career and placement services offered by the 
            institution to students during and after enrollment.
                ``(iv) Policies of the institution related to transfer 
            of credit from other institutions.
            ``(W) A link to the appropriate section of the Bureau of 
        Labor Statistics website that provides information on regional 
        data on starting salaries in all major occupations.
            ``(X) Information required to be submitted under paragraph 
        (4) and a link to the institution pricing summary page 
        described in paragraph (5).
            ``(Y) In the case of an institution that was required to 
        submit a report under subsection (e)(1), a link to such report.
            ``(Z) The availability of alternative tuition plans, which 
        may include guaranteed tuition plans.
        ``(2) Annual updates.--The Secretary shall annually update the 
    information described in paragraph (1) on the College Navigator 
    website.
        ``(3) Consultation.--The Secretary shall regularly consult with 
    current and prospective college students, family members of such 
    students, institutions of higher education, and other experts to 
    improve the usefulness and relevance of the College Navigator 
    website, with respect to the presentation of the consumer 
    information collected in paragraph (1).
        ``(4) Data collection.--The Commissioner for Education 
    Statistics shall continue to update and improve the Integrated 
    Postsecondary Education Data System (referred to in this section as 
    `IPEDS'), including the reporting of information by institutions 
    and the timeliness of the data collected.
        ``(5) Institution pricing summary page.--
            ``(A) Availability of list of participating institutions.--
        The Secretary shall make publicly available on the College 
        Navigator website in a sortable and searchable format a list of 
        all institutions of higher education that participate in 
        programs under title IV, which list shall, for each 
        institution, include the following:
                ``(i) The tuition and fees for each of the three most 
            recent academic years for which data are available.
                ``(ii) The net price for each of the three most recent 
            available academic years for which data are available.
                ``(iii)(I) During the period beginning July 1, 2010, 
            and ending June 30, 2013, the net price for students 
            receiving Federal student financial aid under title IV, 
            disaggregated by the income categories described in 
            paragraph (6), for the most recent academic year for which 
            data are available.
                ``(II) Beginning July 1, 2013, the net price for 
            students receiving Federal student financial aid under 
            title IV, disaggregated by the income categories described 
            in paragraph (6), for each of the three most recent 
            academic years for which data are available.
                ``(iv) The average annual percentage change and average 
            annual dollar change in such institution's tuition and fees 
            for each of the three most recent academic years for which 
            data are available.
                ``(v) The average annual percentage change and average 
            annual dollar change in such institution's net price for 
            each of the three most recent preceding academic years for 
            which data are available.
                ``(vi) A link to the webpage on the College Navigator 
            website that provides the information described in 
            paragraph (1) for the institution.
            ``(B) Annual updates.--The Secretary shall annually update 
        the lists described in subparagraph (A) on the College 
        Navigator website.
        ``(6) Income categories.--
            ``(A) In general.--For purposes of reporting the 
        information required under this subsection, the following 
        income categories shall apply for students who receive Federal 
        student financial aid under title IV:
                ``(i) $0-30,000.
                ``(ii) $30,001-48,000.
                ``(iii) $48,001-75,000.
                ``(iv) $75,001-110,000.
                ``(v) $110,001 and more.
            ``(B) Adjustment.--The Secretary may adjust the income 
        categories listed in subparagraph (A) using the Consumer Price 
        Index if the Secretary determines such adjustment is necessary.
    ``(j) Multi-Year Tuition Calculator.--
        ``(1) Development of multi-year tuition calculator.--Not later 
    than one year after the date of enactment of the Higher Education 
    Opportunity Act, the Secretary shall, in consultation with 
    institutions of higher education, financial planners, and other 
    appropriate experts, develop a multi-year tuition calculator to 
    help current and prospective students, families of such students, 
    and other consumers estimate the amount of tuition an individual 
    may pay to attend an institution of higher education in future 
    years.
        ``(2) Calculation of multi-year tuition.--The multi-year 
    tuition calculator described in paragraph (1) shall--
            ``(A) allow an individual to select an institution of 
        higher education for which the calculation shall be made;
            ``(B) calculate an estimate of tuition and fees for each 
        year of the normal duration of the program of study at such 
        institution by--
                ``(i) using the tuition and fees for such institution, 
            as reported under subsection (i)(5)(A)(i), for the most 
            recent academic year for which such data are reported; and
                ``(ii) determining an estimated annual percentage 
            change for each year for which the calculation is made, 
            based on the annual percentage change in such institution's 
            tuition and fees, as reported under subsection 
            (i)(5)(A)(iv), for the most recent three-year period for 
            which such data are reported;
            ``(C) calculate an estimate of the total amount of tuition 
        and fees to complete a program of study at such institution, 
        based on the normal duration of such program, using the 
        estimate calculated under subparagraph (B) for each year of the 
        program of study;
            ``(D) provide the individual with the option to replace the 
        estimated annual percentage change described in subparagraph 
        (B)(ii) with an alternative annual percentage change specified 
        by the individual, and calculate an estimate of tuition and 
        fees for each year and an estimate of the total amount of 
        tuition and fees using the alternative percentage change;
            ``(E) in the case of an institution that offers a multi-
        year tuition guarantee program, allow the individual to have 
        the estimates of tuition and fees described in subparagraphs 
        (B) and (C) calculated based on the provisions of such 
        guarantee program for the tuition and fees charged to a 
        student, or cohort of students, enrolled for the duration of 
        the program of study; and
            ``(F) include any other features or information determined 
        to be appropriate by the Secretary.
        ``(3) Availability and comparison.--The multi-year tuition 
    calculator described in paragraph (1) shall be available on the 
    College Navigator website and shall allow current and prospective 
    students, families of such students, and consumers to compare 
    information and estimates under this subsection for multiple 
    institutions of higher education.
        ``(4) Disclaimer.--Each calculation of estimated tuition and 
    fees made using the multi-year tuition calculator described in 
    paragraph (1) shall be accompanied by a clear and conspicuous 
    notice--
            ``(A) stating that the calculation--
                ``(i) is only an estimate and not a guarantee of the 
            actual amount the student may be charged;
                ``(ii) is not binding on the Secretary, the institution 
            of higher education, or the State; and
                ``(iii) may change, subject to the availability of 
            financial assistance, State appropriations, and other 
            factors;
            ``(B) stating that the student must complete the Free 
        Application for Federal Student Aid described in section 483 in 
        order to be eligible for, and receive, an actual financial aid 
        award that includes Federal grant, loan, or work-study 
        assistance under title IV; and
            ``(C) including a link to the website of the Department 
        that allows students to access the Free Application for Federal 
        Student Aid described in section 483.
    ``(k) Student Aid Recipient Survey.--
        ``(1) Survey required.--The Secretary, acting through the 
    Commissioner for Education Statistics, shall conduct, on a State-
    by-State basis, a survey of recipients of Federal student financial 
    aid under title IV--
            ``(A) to identify the population of students receiving such 
        Federal student financial aid;
            ``(B) to describe the income distribution and other 
        socioeconomic characteristics of recipients of such Federal 
        student financial aid;
            ``(C) to describe the combinations of aid from Federal, 
        State, and private sources received by such recipients from all 
        income categories;
            ``(D) to describe the--
                ``(i) debt burden of such loan recipients, and their 
            capacity to repay their education debts; and
                ``(ii) the impact of such debt burden on the 
            recipients' course of study and post-graduation plans;
            ``(E) to describe the impact of the cost of attendance of 
        postsecondary education in the determination by students of 
        what institution of higher education to attend; and
            ``(F) to describe how the costs of textbooks and other 
        instructional materials affect the costs of postsecondary 
        education for students.
        ``(2) Frequency.--The survey shall be conducted on a regular 
    cycle and not less often than once every four years.
        ``(3) Survey design.--The survey shall be representative of 
    students from all types of institutions, including full-time and 
    part-time students, undergraduate, graduate, and professional 
    students, and current and former students.
        ``(4) Dissemination.--The Commissioner for Education Statistics 
    shall disseminate to the public, in printed and electronic form, 
    the information resulting from the survey.
    ``(l) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out this section.''.
    SEC. 112. TEXTBOOK INFORMATION.
    (a) Amendment.--Part C of title I (20 U.S.C. 1015) is further 
amended by adding after section 132 (as added by section 111 of this 
Act) the following new section:
    ``SEC. 133. TEXTBOOK INFORMATION.
    ``(a) Purpose and Intent.--The purpose of this section is to ensure 
that students have access to affordable course materials by decreasing 
costs to students and enhancing transparency and disclosure with 
respect to the selection, purchase, sale, and use of course materials. 
It is the intent of this section to encourage all of the involved 
parties, including faculty, students, administrators, institutions of 
higher education, bookstores, distributors, and publishers, to work 
together to identify ways to decrease the cost of college textbooks and 
supplemental materials for students while supporting the academic 
freedom of faculty members to select high quality course materials for 
students.
    ``(b) Definitions.--In this section:
        ``(1) Bundle.--The term `bundle' means one or more college 
    textbooks or other supplemental materials that may be packaged 
    together to be sold as course materials for one price.
        ``(2) College textbook.--The term `college textbook' means a 
    textbook or a set of textbooks, used for, or in conjunction with, a 
    course in postsecondary education at an institution of higher 
    education.
        ``(3) Course schedule.--The term `course schedule' means a 
    listing of the courses or classes offered by an institution of 
    higher education for an academic period, as defined by the 
    institution.
        ``(4) Custom textbook.--The term `custom textbook'--
            ``(A) means a college textbook that is compiled by a 
        publisher at the direction of a faculty member or other person 
        or adopting entity in charge of selecting course materials at 
        an institution of higher education; and
            ``(B) may include, alone or in combination, items such as 
        selections from original instructor materials, previously 
        copyrighted publisher materials, copyrighted third-party works, 
        and elements unique to a specific institution, such as 
        commemorative editions.
        ``(5) Institution of higher education.--The term `institution 
    of higher education' has the meaning given the term in section 102.
        ``(6) Integrated textbook.--The term `integrated textbook' 
    means a college textbook that is--
            ``(A) combined with materials developed by a third party 
        and that, by third-party contractual agreement, may not be 
        offered by publishers separately from the college textbook with 
        which the materials are combined; or
            ``(B) combined with other materials that are so 
        interrelated with the content of the college textbook that the 
        separation of the college textbook from the other materials 
        would render the college textbook unusable for its intended 
        purpose.
        ``(7) Publisher.--The term `publisher' means a publisher of 
    college textbooks or supplemental materials involved in or 
    affecting interstate commerce.
        ``(8) Substantial content.--The term `substantial content' 
    means parts of a college textbook such as new chapters, new 
    material covering additional eras of time, new themes, or new 
    subject matter.
        ``(9) Supplemental material.--The term `supplemental material' 
    means educational material developed to accompany a college 
    textbook that--
            ``(A) may include printed materials, computer disks, 
        website access, and electronically distributed materials; and
            ``(B) is not being used as a component of an integrated 
        textbook.
    ``(c) Publisher Requirements.--
        ``(1) College textbook pricing information.--When a publisher 
    provides a faculty member or other person or adopting entity in 
    charge of selecting course materials at an institution of higher 
    education receiving Federal financial assistance with information 
    regarding a college textbook or supplemental material, the 
    publisher shall include, with any such information and in writing 
    (which may include electronic communications), the following:
            ``(A) The price at which the publisher would make the 
        college textbook or supplemental material available to the 
        bookstore on the campus of, or otherwise associated with, such 
        institution of higher education and, if available, the price at 
        which the publisher makes the college textbook or supplemental 
        material available to the public.
            ``(B) The copyright dates of the three previous editions of 
        such college textbook, if any.
            ``(C) A description of the substantial content revisions 
        made between the current edition of the college textbook or 
        supplemental material and the previous edition, if any.
            ``(D)(i) Whether the college textbook or supplemental 
        material is available in any other format, including paperback 
        and unbound; and
            ``(ii) for each other format of the college textbook or 
        supplemental material, the price at which the publisher would 
        make the college textbook or supplemental material in the other 
        format available to the bookstore on the campus of, or 
        otherwise associated with, such institution of higher education 
        and, if available, the price at which the publisher makes such 
        other format of the college textbook or supplemental material 
        available to the public.
        ``(2) Unbundling of college textbooks from supplemental 
    materials.--A publisher that sells a college textbook and any 
    supplemental material accompanying such college textbook as a 
    single bundle shall also make available the college textbook and 
    each supplemental material as separate and unbundled items, each 
    separately priced.
        ``(3) Custom textbooks.--To the maximum extent practicable, a 
    publisher shall provide the information required under this 
    subsection with respect to the development and provision of custom 
    textbooks.
    ``(d) Provision of ISBN College Textbook Information in Course 
Schedules.--To the maximum extent practicable, each institution of 
higher education receiving Federal financial assistance shall--
        ``(1) disclose, on the institution's Internet course schedule 
    and in a manner of the institution's choosing, the International 
    Standard Book Number and retail price information of required and 
    recommended college textbooks and supplemental materials for each 
    course listed in the institution's course schedule used for 
    preregistration and registration purposes, except that--
            ``(A) if the International Standard Book Number is not 
        available for such college textbook or supplemental material, 
        then the institution shall include in the Internet course 
        schedule the author, title, publisher, and copyright date for 
        such college textbook or supplemental material; and
            ``(B) if the institution determines that the disclosure of 
        the information described in this subsection is not practicable 
        for a college textbook or supplemental material, then the 
        institution shall so indicate by placing the designation `To Be 
        Determined' in lieu of the information required under this 
        subsection; and
        ``(2) if applicable, include on the institution's written 
    course schedule a notice that textbook information is available on 
    the institution's Internet course schedule, and the Internet 
    address for such schedule.
    ``(e) Availability of Information for College Bookstores.--An 
institution of higher education receiving Federal financial assistance 
shall make available to a college bookstore that is operated by, or in 
a contractual relationship or otherwise affiliated with, the 
institution, as soon as is practicable upon the request of such college 
bookstore, the most accurate information available regarding--
        ``(1) the institution's course schedule for the subsequent 
    academic period; and
        ``(2) for each course or class offered by the institution for 
    the subsequent academic period--
            ``(A) the information required by subsection (d)(1) for 
        each college textbook or supplemental material required or 
        recommended for such course or class;
            ``(B) the number of students enrolled in such course or 
        class; and
            ``(C) the maximum student enrollment for such course or 
        class.
    ``(f) Additional Information.--An institution disclosing the 
information required by subsection (d)(1) is encouraged to disseminate 
to students information regarding--
        ``(1) available institutional programs for renting textbooks or 
    for purchasing used textbooks;
        ``(2) available institutional guaranteed textbook buy-back 
    programs;
        ``(3) available institutional alternative content delivery 
    programs; or
        ``(4) other available institutional cost-saving strategies.
    ``(g) GAO Report.--Not later than July 1, 2013, the Comptroller 
General of the United States shall report to the authorizing committees 
on the implementation of this section by institutions of higher 
education, college bookstores, and publishers. The report shall 
particularly examine--
        ``(1) the availability of college textbook information on 
    course schedules;
        ``(2) the provision of pricing information to faculty of 
    institutions of higher education by publishers;
        ``(3) the use of bundled and unbundled material in the college 
    textbook marketplace, including the adoption of unbundled materials 
    by faculty and the use of integrated textbooks by publishers; and
        ``(4) the implementation of this section by institutions of 
    higher education, including the costs and benefits to such 
    institutions and to students.
    ``(h) Rule of Construction.--Nothing in this section shall be 
construed to supercede the institutional autonomy or academic freedom 
of instructors involved in the selection of college textbooks, 
supplemental materials, and other classroom materials.
    ``(i) No Regulatory Authority.--The Secretary shall not promulgate 
regulations with respect to this section.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on July 1, 2010.
    SEC. 113. DATABASE OF STUDENT INFORMATION PROHIBITED.
    Part C of title I (20 U.S.C. 1015) is further amended by adding 
after section 133 (as added by section 112 of this Act) the following:
    ``SEC. 134. DATABASE OF STUDENT INFORMATION PROHIBITED.
    ``(a) Prohibition.--Except as described in subsection (b), nothing 
in this Act shall be construed to authorize the development, 
implementation, or maintenance of a Federal database of personally 
identifiable information on individuals receiving assistance under this 
Act, attending institutions receiving assistance under this Act, 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 apply 
to a system (or a successor system) that--
        ``(1) is necessary for the operation of programs authorized by 
    title II, IV, or VII; and
        ``(2) was in use by the Secretary, directly or through a 
    contractor, as of the day before the date of enactment of the 
    Higher Education Opportunity Act.
    ``(c) State Databases.--Nothing in this Act shall prohibit a State 
or a consortium of States from developing, implementing, or maintaining 
State-developed databases that track individuals over time, including 
student unit record systems that contain information related to 
enrollment, attendance, graduation and retention rates, student 
financial assistance, and graduate employment outcomes.''.
    SEC. 114. IN-STATE TUITION RATES FOR ARMED FORCES MEMBERS, SPOUSES, 
      AND DEPENDENT CHILDREN.
    Part C of title I (20 U.S.C. 1015) is further amended by adding 
after section 134 (as added by section 113 of this Act) the following:
    ``SEC. 135. IN-STATE TUITION RATES FOR MEMBERS OF THE ARMED FORCES 
      ON ACTIVE DUTY, SPOUSES, AND DEPENDENT CHILDREN.
    ``(a) Requirement.--In the case of a member of the armed forces who 
is on active duty for a period of more than 30 days and whose domicile 
or permanent duty station is in a State that receives assistance under 
this Act, such State shall not charge such member (or the spouse or 
dependent child of such member) tuition for attendance at a public 
institution of higher education in the State at a rate that is greater 
than the rate charged for residents of the State.
    ``(b) Continuation.--If a member of the armed forces (or the spouse 
or dependent child of a member) pays tuition at a public institution of 
higher education in a State at a rate determined by subsection (a), the 
provisions of subsection (a) shall continue to apply to such member, 
spouse, or dependent while continuously enrolled at that institution, 
notwithstanding a subsequent change in the permanent duty station of 
the member to a location outside the State.
    ``(c) Effective Date.--This section shall take effect at each 
public institution of higher education in a State that receives 
assistance under this Act for the first period of enrollment at such 
institution that begins after July 1, 2009.
    ``(d) Definitions.--In this section, the terms `armed forces' and 
`active duty for a period of more than 30 days' have the meanings given 
those terms in section 101 of title 10, United States Code.''.
    SEC. 115. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT PROGRAM.
    Part C of title I of the Higher Education Act of 1965 (20 U.S.C. 
1015) is further amended by adding after section 135 (as added by 
section 114 of this Act) the following:
    ``SEC. 136. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT 
      PROGRAM.
    ``(a) Purpose.--It is the purpose of this section to carry out a 
pilot program to assist not more than five States to develop State-
level postsecondary student data systems to--
        ``(1) improve the capacity of States and institutions of higher 
    education to generate more comprehensive and comparable data, in 
    order to develop better-informed educational policy at the State 
    level and to evaluate the effectiveness of institutional 
    performance while protecting the confidentiality of students' 
    personally identifiable information; and
        ``(2) identify how to best minimize the data-reporting burden 
    placed on institutions of higher education, particularly smaller 
    institutions, and to maximize and improve the information 
    institutions receive from the data systems, in order to assist 
    institutions in improving educational practice and postsecondary 
    outcomes.
    ``(b) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means--
        ``(1) a State higher education system; or
        ``(2) a consortium of State higher education systems, or a 
    consortium of individual institutions of higher education, that is 
    broadly representative of institutions in different sectors and 
    geographic locations.
    ``(c) Competitive Grants.--
        ``(1) Grants authorized.--The Secretary shall award grants, on 
    a competitive basis, to not more than five eligible entities to 
    enable the eligible entities to--
            ``(A) design, test, and implement systems of postsecondary 
        student data that provide the maximum benefits to States, 
        institutions of higher education, and State policymakers; and
            ``(B) examine the costs and burdens involved in 
        implementing a State-level postsecondary student data system.
        ``(2) Duration.--A grant awarded under this section shall be 
    for a period of not more than three years.
    ``(d) Application Requirements.--An eligible entity desiring a 
grant under this section shall submit an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may reasonably require, including a description of--
        ``(1) how the eligible entity will ensure that student privacy 
    is protected and that individually identifiable information about 
    students, the students' achievements, and the students' families 
    remains confidential in accordance with section 444 of the General 
    Education Provisions Act (Family Educational Rights and Privacy Act 
    of 1974) (20 U.S.C. 1232g); and
        ``(2) how the activities funded by the grant will be supported 
    after the three-year grant period.
    ``(e) Use of Funds.--A grant awarded under this section shall be 
used to--
        ``(1) design, develop, and implement the components of a 
    comprehensive postsecondary student data system with the capacity 
    to transmit student information within a State;
        ``(2) improve the capacity of institutions of higher education 
    to analyze and use student data;
        ``(3) select and define common data elements, data quality, and 
    other elements that will enable the data system to--
            ``(A) serve the needs of institutions of higher education 
        for institutional research and improvement;
            ``(B) provide students and the students' families with 
        useful information for decision-making about postsecondary 
        education; and
            ``(C) provide State policymakers with improved information 
        to monitor and guide efforts to improve student outcomes and 
        success in higher education;
        ``(4) estimate costs and burdens at the institutional level for 
    the reporting system for different types of institutions; and
        ``(5) test the feasibility of protocols and standards for 
    maintaining data privacy and data access.
    ``(f) Evaluation; Reports.--Not later than six months after the end 
of the projects funded by grants awarded under this section, the 
Secretary shall--
        ``(1) conduct a comprehensive evaluation of the pilot program 
    authorized by this section; and
        ``(2) report the Secretary's findings, as well as 
    recommendations regarding the implementation of State-level 
    postsecondary student data systems, to the authorizing committees.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.''.
    SEC. 116. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
    Part C of title I (20 U.S.C. 1015) is further amended by adding 
after section 136 (as added by section 115 of this Act) the following 
new section:
    ``SEC. 137. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
    ``(a) Maintenance of Effort Required.--A State shall provide--
        ``(1) for public institutions of higher education in such State 
    for any academic year beginning on or after July 1, 2008, an amount 
    which is equal to or greater than the average amount provided for 
    non-capital and non-direct research and development expenses or 
    costs by such State to such institutions of higher education during 
    the five most recent preceding academic years for which 
    satisfactory data are available; and
        ``(2) for private institutions of higher education in such 
    State for any academic year beginning on or after July 1, 2008, an 
    amount which is equal to or greater than the average amount 
    provided for student financial aid for paying costs associated with 
    postsecondary education by such State to such institutions during 
    the five most recent preceding academic years for which 
    satisfactory data are available.
    ``(b) Adjustments for Biennial Appropriations.--The Secretary shall 
take into consideration any adjustments to the calculations under 
subsection (a) that may be required to accurately reflect funding 
levels for postsecondary education in States with biennial 
appropriation cycles.
    ``(c) Waiver.--The Secretary shall waive the requirements of 
subsection (a), if the Secretary determines that such a waiver would be 
equitable due to exceptional or uncontrollable circumstances, such as a 
natural disaster or a precipitous and unforseen decline in the 
financial resources of a State or State educational agency, as 
appropriate.
    ``(d) Violation of Maintenance of Effort.--Notwithstanding any 
other provision of law, the Secretary shall withhold from any State 
that violates subsection (a) and does not receive a waiver pursuant to 
subsection (c) any amount that would otherwise be available to the 
State under section 781 until such State has made significant efforts 
to correct such violation.''.
    SEC. 117. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF 
      FEDERAL STUDENT FINANCIAL ASSISTANCE.
    Section 141 (20 U.S.C. 1018) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by striking ``operational'' and 
        inserting ``administrative and oversight''; and
            (B) in paragraph (2)(D), by striking ``of the operational 
        functions'' and inserting ``and administration'';
        (2) in subsection (b)--
            (A) in paragraph (1)--
                (i) in subparagraph (A), by striking ``the information 
            systems administered by the PBO, and other functions 
            performed by the PBO'' and inserting ``the Federal student 
            financial assistance programs authorized under title IV''; 
            and
                (ii) by striking subparagraph (C) and inserting the 
            following:
            ``(C) assist the Chief Operating Officer in identifying 
        goals for--
                ``(i) the administration of the systems used to 
            administer the Federal student financial assistance 
            programs authorized under title IV; and
                ``(ii) the updating of such systems to current 
            technology.'';
            (B) in paragraph (2)--
                (i) in the matter preceding subparagraph (A)--

                    (I) by striking ``administration of the information 
                and financial systems that support'' and inserting 
                ``the administration of Federal''; and
                    (II) by striking ``this title'' and inserting 
                ``title IV'';

                (ii) in subparagraph (A)--

                    (I) in the matter preceding clause (i), by striking 
                ``of the delivery system for Federal student 
                assistance'' and inserting ``for the Federal student 
                financial assistance programs authorized under title 
                IV'';
                    (II) by striking clauses (i) and (ii) and inserting 
                the following:

                ``(i) the collection, processing, and transmission of 
            data to students, institutions, lenders, State agencies, 
            and other authorized parties;
                ``(ii) the design and technical specifications for 
            software development and procurement for systems supporting 
            the Federal student financial assistance programs 
            authorized under title IV;'';

                    (III) in clause (iii), by striking ``delivery'' and 
                inserting ``administration'';
                    (IV) in clause (iv)--

                        (aa) by inserting ``the Federal'' after 
                    ``supporting'';
                        (bb) by striking ``under this title'' and 
                    inserting ``authorized under title IV''; and
                        (cc) by striking ``and'' after the semicolon;

                    (V) in clause (v), by striking ``systems that 
                support those programs.'' and inserting ``the 
                administration of the Federal student financial 
                assistance programs authorized under title IV; and''; 
                and
                    (VI) by adding at the end the following:

                ``(vi) ensuring the integrity of the Federal student 
            financial assistance programs authorized under title IV.''; 
            and
                (iii) in subparagraph (B), by striking ``operations and 
            services'' and inserting ``activities and functions''; and
        (3) in subsection (c)--
            (A) in the subsection heading, by striking ``Performance 
        Plan and Report'' and inserting ``Performance Plan, Report, and 
        Briefing'';
            (B) in paragraph (1)(C)--
                (i) by striking ``this title'' each place the term 
            appears and inserting ``under title IV'';
                (ii) in clause (iii), by striking ``information and 
            delivery''; and
                (iii) in clause (iv)--

                    (I) by striking ``Developing an'' and inserting 
                ``Developing''; and
                    (II) by striking ``delivery and information 
                system'' and inserting ``systems'';

            (C) in paragraph (2)--
                (i) in subparagraph (A), by inserting ``the'' after 
            ``PBO and''; and
                (ii) in subparagraph (B), by striking ``Officer'' and 
            inserting ``Officers'';
            (D) in paragraph (3), by inserting ``students,'' after 
        ``consult with''; and
            (E) by adding at the end the following:
        ``(4) Briefing on enforcement of student loan provisions.--The 
    Secretary shall, upon request, provide a briefing to the members of 
    the authorizing committees on the steps the Department has taken to 
    ensure--
            ``(A) the integrity of the student loan programs; and
            ``(B) that lenders and guaranty agencies are adhering to 
        the requirements of title IV.'';
        (4) in subsection (d)--
            (A) in paragraph (1), by striking the second sentence; and
            (B) in paragraph (5)--
                (i) in subparagraph (B), by striking ``paragraph (2)'' 
            and inserting ``paragraph (4)''; and
                (ii) in subparagraph (C), by striking ``this'';
        (5) in subsection (f)--
            (A) in paragraph (2), by striking ``to borrowers'' and 
        inserting ``to students, borrowers,''; and
            (B) in paragraph (3)(A), by striking ``(1)(A)'' and 
        inserting ``(1)'';
        (6) in subsection (g)(3), by striking ``not more than 25'';
        (7) in subsection (h), by striking ``organizational 
    effectiveness'' and inserting ``effectiveness'';
        (8) by striking subsection (i);
        (9) by redesignating subsection (j) as subsection (i); and
        (10) in subsection (i) (as redesignated by paragraph (9)), by 
    striking ``, including transition costs''.
    SEC. 118. PROCUREMENT FLEXIBILITY.
    Section 142 (20 U.S.C. 1018a) is amended--
        (1) in subsection (b)--
            (A) in paragraph (1)--
                (i) by striking ``for information systems supporting 
            the programs authorized under title IV''; and
                (ii) by striking ``and'' after the semicolon;
            (B) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(3) through the Chief Operating Officer--
            ``(A) to the maximum extent practicable, utilize 
        procurement systems that streamline operations, improve 
        internal controls, and enhance management; and
            ``(B) assess the efficiency of such systems and assess such 
        systems' ability to meet PBO requirements.'';
        (2) by striking subsection (c)(2) and inserting the following:
        ``(2) Fee for service arrangements.--The Chief Operating 
    Officer shall, when appropriate and consistent with the purposes of 
    the PBO, acquire services related to the functions set forth in 
    section 141(b)(2) from any entity that has the capability and 
    capacity to meet the requirements set by the PBO. The Chief 
    Operating Officer is authorized to pay fees that are equivalent to 
    those paid by other entities to an organization that provides 
    services that meet the requirements of the PBO, as determined by 
    the Chief Operating Officer.'';
        (3) in subsection (d)(2)(B), by striking ``on Federal 
    Government contracts'';
        (4) in subsection (g)--
            (A) in paragraph (4)(A)--
                (i) in the subparagraph heading, by striking ``Sole 
            source.--'' and inserting ``Single-source basis.--''; and
                (ii) by striking ``sole-source'' and inserting 
            ``single-source''; and
            (B) in paragraph (7), by striking ``sole-source'' and 
        inserting ``single-source'';
        (5) in subsection (h)(2)(A), by striking ``sole-source'' and 
    inserting ``single-source''; and
        (6) in subsection (l), by striking paragraph (3) and inserting 
    the following:
        ``(3) Single-source basis.--The term `single-source basis', 
    with respect to an award of a contract, means that the contract is 
    awarded to a source after soliciting an offer or offers from, and 
    negotiating with, only such source (although such source is not the 
    only source in the marketplace capable of meeting the need) because 
    such source is the most advantageous source for purposes of the 
    award.''.
    SEC. 119. CERTIFICATION REGARDING THE USE OF CERTAIN FEDERAL FUNDS.
    (a) Prohibition.--No Federal funds received under the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.) by an institution of 
higher education or other postsecondary educational institution may be 
used to pay any person for influencing or attempting to influence an 
officer or employee of any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any Federal action described in subsection (b).
    (b) Applicability.--The prohibition in subsection (a) applies with 
respect to the following Federal actions:
        (1) The awarding of any Federal contract.
        (2) The making of any Federal grant.
        (3) The making of any Federal loan.
        (4) The entering into of any Federal cooperative agreement.
        (5) The extension, continuation, renewal, amendment, or 
    modification of any Federal contract, grant, loan, or cooperative 
    agreement.
    (c) Lobbying and Earmarks.--No Federal student aid funding under 
the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) may be used 
to hire a registered lobbyist or pay any person or entity for securing 
an earmark.
    (d) Certification.--Each institution of higher education or other 
postsecondary educational institution receiving Federal funding under 
the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), as a 
condition for receiving such funding, shall annually certify to the 
Secretary of Education that the requirements of subsections (a) through 
(c) have been met.
    (e) Actions To Implement and Enforce.--The Secretary of Education 
shall take such actions as are necessary to ensure that the provisions 
of this section are implemented and enforced.
    SEC. 120. INSTITUTION AND LENDER REPORTING AND DISCLOSURE 
      REQUIREMENTS.
    Title I (as amended by this title) (20 U.S.C. 1001 et seq.) is 
further amended by adding at the end the following:

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

    ``SEC. 151. DEFINITIONS.
    ``In this part:
        ``(1) Agent.--The term `agent' means an officer or employee of 
    a covered institution or an institution-affiliated organization.
        ``(2) Covered institution.--The term `covered institution' 
    means any institution of higher education, as such term is defined 
    in section 102, that receives any Federal funding or assistance.
        ``(3) Education loan.--The term `education loan' (except when 
    used as part of the term `private education loan') means--
            ``(A) any loan made, insured, or guaranteed under part B of 
        title IV;
            ``(B) any loan made under part D of title IV; or
            ``(C) a private education loan.
        ``(4) Eligible lender.--The term `eligible lender' has the 
    meaning given such term in section 435(d).
        ``(5) Institution-affiliated organization.--The term 
    `institution-affiliated organization'--
            ``(A) means any organization that--
                ``(i) is directly or indirectly related to a covered 
            institution; and
                ``(ii) is engaged in the practice of recommending, 
            promoting, or endorsing education loans for students 
            attending such covered institution or the families of such 
            students;
            ``(B) may include an alumni organization, athletic 
        organization, foundation, or social, academic, or professional 
        organization, of a covered institution; and
            ``(C) notwithstanding subparagraphs (A) and (B), does not 
        include any lender with respect to any education loan secured, 
        made, or extended by such lender.
        ``(6) Lender.--The term `lender' (except when used as part of 
    the terms `eligible lender' and `private educational lender')--
            ``(A) means--
                ``(i) in the case of a loan made, insured, or 
            guaranteed under part B of title IV, an eligible lender;
                ``(ii) in the case of any loan issued or provided to a 
            student under part D of title IV, the Secretary; and
                ``(iii) in the case of a private education loan, a 
            private educational lender as defined in section 140 of the 
            Truth in Lending Act; and
            ``(B) includes any other person engaged in the business of 
        securing, making, or extending education loans on behalf of the 
        lender.
        ``(7) Officer.--The term `officer' includes a director or 
    trustee of a covered institution or institution-affiliated 
    organization, if such individual is treated as an employee of such 
    covered institution or institution-affiliated organization, 
    respectively.
        ``(8) Preferred lender arrangement.--The term `preferred lender 
    arrangement'--
            ``(A) means an arrangement or agreement between a lender 
        and a covered institution or an institution-affiliated 
        organization of such covered institution--
                ``(i) under which a lender provides or otherwise issues 
            education loans to the students attending such covered 
            institution or the families of such students; and
                ``(ii) that relates to such covered institution or such 
            institution-affiliated organization recommending, 
            promoting, or endorsing the education loan products of the 
            lender; and
            ``(B) does not include--
                ``(i) arrangements or agreements with respect to loans 
            under part D of title IV; or
                ``(ii) arrangements or agreements with respect to loans 
            that originate through the auction pilot program under 
            section 499(b).
        ``(9) Private education loan.--The term `private education 
    loan' has the meaning given the term in section 140 of the Truth in 
    Lending Act.
    ``SEC. 152. RESPONSIBILITIES OF COVERED INSTITUTIONS, INSTITUTION-
      AFFILIATED ORGANIZATIONS, AND LENDERS.
    ``(a) Responsibilities of Covered Institutions and Institution-
Affiliated Organizations.--
        ``(1) Disclosures by covered institutions and institution-
    affiliated organizations.--
            ``(A) Preferred lender arrangement disclosures.--In 
        addition to the disclosures required by subsections (a)(27) and 
        (h) of section 487 (if applicable), a covered institution, or 
        an institution-affiliated organization of such covered 
        institution, that participates in a preferred lender 
        arrangement shall disclose--
                ``(i) on such covered institution's or institution-
            affiliated organization's website and in all informational 
            materials described in subparagraph (C) that describe or 
            discuss education loans--

                    ``(I) the maximum amount of Federal grant and loan 
                aid under title IV available to students, in an easy to 
                understand format;
                    ``(II) the information required to be disclosed 
                pursuant to section 153(a)(2)(A)(i), for each type of 
                loan described in section 151(3)(A) that is offered 
                pursuant to a preferred lender arrangement of the 
                institution or organization to students of the 
                institution or the families of such students; and
                    ``(III) a statement that such institution is 
                required to process the documents required to obtain a 
                loan under part B of title IV from any eligible lender 
                the student selects; and

                ``(ii) on such covered institution's or institution-
            affiliated organization's website and in all informational 
            materials described in subparagraph (C) that describe or 
            discuss private education loans--

                    ``(I) in the case of a covered institution, the 
                information that the Board of Governors of the Federal 
                Reserve System requires to be disclosed under section 
                128(e)(11) of the Truth in Lending Act (15 U.S.C. 
                1638(e)(11)), for each type of private education loan 
                offered pursuant to a preferred lender arrangement of 
                the institution to students of the institution or the 
                families of such students; and
                    ``(II) in the case of an institution-affiliated 
                organization of a covered institution, the information 
                the Board of Governors of the Federal Reserve System 
                requires to be disclosed under section 128(e)(1) of the 
                Truth in Lending Act (15 U.S.C. 1638(e)(1)), for each 
                type of private education loan offered pursuant to a 
                preferred lender arrangement of the organization to 
                students of such institution or the families of such 
                students.

            ``(B) Private education loan disclosures.--A covered 
        institution, or an institution-affiliated organization of such 
        covered institution, that provides information regarding a 
        private education loan from a lender to a prospective borrower 
        shall--
                ``(i) provide the prospective borrower with the 
            information the Board of Governors of the Federal Reserve 
            System requires to be disclosed under section 128(e)(1) of 
            the Truth in Lending Act (15 U.S.C. 1638(e)(1)) for such 
            loan;
                ``(ii) inform the prospective borrower that--

                    ``(I) the prospective borrower may qualify for 
                loans or other assistance under title IV; and
                    ``(II) the terms and conditions of loans made, 
                insured, or guaranteed under title IV may be more 
                favorable than the provisions of private education 
                loans; and

                ``(iii) ensure that information regarding private 
            education loans is presented in such a manner as to be 
            distinct from information regarding loans that are made, 
            insured, or guaranteed under title IV.
            ``(C) Informational materials.--The informational materials 
        described in this subparagraph are publications, mailings, or 
        electronic messages or materials that--
                ``(i) are distributed to prospective or current 
            students of a covered institution and families of such 
            students; and
                ``(ii) describe or discuss the financial aid 
            opportunities available to students at an institution of 
            higher education.
        ``(2) Use of institution name.--A covered institution, or an 
    institution-affiliated organization of such covered institution, 
    that enters into a preferred lender arrangement with a lender 
    regarding private education loans shall not agree to the lender's 
    use of the name, emblem, mascot, or logo of such institution or 
    organization, or other words, pictures, or symbols readily 
    identified with such institution or organization, in the marketing 
    of private education loans to students attending such institution 
    in any way that implies that the loan is offered or made by such 
    institution or organization instead of the lender.
        ``(3) Use of lender name.--A covered institution, or an 
    institution-affiliated organization of such covered institution, 
    that enters into a preferred lender arrangement with a lender 
    regarding private education loans shall ensure that the name of the 
    lender is displayed in all information and documentation related to 
    such loans.
    ``(b) Lender Responsibilities.--
        ``(1) Disclosures by lenders.--
            ``(A) Disclosures to borrowers.--
                ``(i) Federal education loans.--For each education loan 
            that is made, insured, or guaranteed under part B or D of 
            title IV (other than a loan made under section 428C or a 
            Federal Direct Consolidation Loan), at or prior to the time 
            the lender disburses such loan, the lender shall provide 
            the prospective borrower or borrower, in writing (including 
            through electronic means), with the disclosures described 
            in subsections (a) and (c) of section 433.
                ``(ii) Private education loans.--For each of a lender's 
            private education loans, the lender shall comply with the 
            disclosure requirements under section 128(e) of the Truth 
            in Lending Act (15 U.S.C. 1638(e)).
            ``(B) Disclosures to the secretary.--
                ``(i) In general.--Each lender of a loan made, insured, 
            or guaranteed under part B of title IV shall, on an annual 
            basis, report to the Secretary--

                    ``(I) any reasonable expenses paid or provided 
                under section 435(d)(5)(D) or paragraph (3)(B) or (7) 
                of section 487(e) to any agent of a covered institution 
                who--

                        ``(aa) is employed in the financial aid office 
                    of a covered institution; or
                        ``(bb) otherwise has responsibilities with 
                    respect to education loans or other financial aid 
                    of the institution; and

                    ``(II) any similar expenses paid or provided to any 
                agent of an institution-affiliated organization who is 
                involved in the practice of recommending, promoting, or 
                endorsing education loans.

                ``(ii) Contents of reports.--Each report described in 
            clause (i) shall include--

                    ``(I) the amount for each specific instance in 
                which the lender provided such expenses;
                    ``(II) the name of any agent described in clause 
                (i) to whom the expenses were paid or provided;
                    ``(III) the dates of the activity for which the 
                expenses were paid or provided; and
                    ``(IV) a brief description of the activity for 
                which the expenses were paid or provided.

                ``(iii) Report to congress.--The Secretary shall 
            summarize the information received from the lenders under 
            this subparagraph in a report and transmit such report 
            annually to the authorizing committees.
        ``(2) Certification by lenders.--Not later than 18 months after 
    the date of enactment of the Higher Education Opportunity Act--
            ``(A) in addition to any other disclosure required under 
        Federal law, each lender of a loan made, insured, or guaranteed 
        under part B of title IV that participates in one or more 
        preferred lender arrangements shall annually certify the 
        lender's compliance with the requirements of this Act; and
            ``(B) if an audit of a lender is required pursuant to 
        section 428(b)(1)(U)(iii), the lender's compliance with the 
        requirements under this section shall be reported on and 
        attested to annually by the auditor of such lender.
    ``SEC. 153. LOAN INFORMATION TO BE DISCLOSED AND MODEL DISCLOSURE 
      FORM FOR COVERED INSTITUTIONS, INSTITUTION-AFFILIATED 
      ORGANIZATIONS, AND LENDERS PARTICIPATING IN PREFERRED LENDER 
      ARRANGEMENTS.
    ``(a) Duties of the Secretary.--
        ``(1) Determination of minimum disclosures.--
            ``(A) In general.--Not later than 18 months after the date 
        of enactment of the Higher Education Opportunity Act, the 
        Secretary, in coordination with the Board of Governors of the 
        Federal Reserve System, shall determine the minimum information 
        that lenders, covered institutions, and institution-affiliated 
        organizations of such covered institutions participating in 
        preferred lender arrangements shall make available regarding 
        education loans described in section 151(3)(A) that are offered 
        to students and the families of such students.
            ``(B) Consultation and content of minimum disclosures.--In 
        carrying out subparagraph (A), the Secretary shall--
                ``(i) consult with students, the families of such 
            students, representatives of covered institutions 
            (including financial aid administrators, admission 
            officers, and business officers), representatives of 
            institution-affiliated organizations, secondary school 
            guidance counselors, lenders, loan servicers, and guaranty 
            agencies;
                ``(ii) include, in the minimum information under 
            subparagraph (A) that is required to be made available, the 
            information that the Board of Governors of the Federal 
            Reserve System requires to be disclosed under section 
            128(e)(1) of the Truth in Lending Act (15 U.S.C. 
            1638(e)(1)), modified as necessary to apply to such loans; 
            and
                ``(iii) consider the merits of requiring each covered 
            institution, and each institution-affiliated organization 
            of such covered institution, with a preferred lender 
            arrangement to provide to prospective borrowers and the 
            families of such borrowers the following information for 
            each type of education loan offered pursuant to such 
            preferred lender arrangement:

                    ``(I) The interest rate and terms and conditions of 
                the loan for the next award year, including loan 
                forgiveness and deferment.
                    ``(II) Information on any charges, such as 
                origination and Federal default fees, that are payable 
                on the loan, and whether those charges will be--

                        ``(aa) collected by the lender at or prior to 
                    the disbursal of the loan, including whether the 
                    charges will be deducted from the proceeds of the 
                    loan or paid separately by the borrower; or
                        ``(bb) paid in whole or in part by the lender.

                    ``(III) The annual and aggregate maximum amounts 
                that may be borrowed.
                    ``(IV) The average amount borrowed from the lender 
                by students who graduated from such institution in the 
                preceding year with certificates, undergraduate 
                degrees, graduate degrees, and professional degrees, as 
                applicable, and who obtained loans of such type from 
                the lender for the preceding year.
                    ``(V) The amount the borrower may pay in interest, 
                based on a standard repayment plan and the average 
                amount borrowed from the lender by students who 
                graduated from such institution in the preceding year 
                and who obtained loans of such type from the lender for 
                the preceding year, for--

                        ``(aa) borrowers who take out loans under 
                    section 428;
                        ``(bb) borrowers who take out loans under 
                    section 428B or 428H, who pay the interest while in 
                    school; and
                        ``(cc) borrowers who take out loans under 
                    section 428B or 428H, who do not pay the interest 
                    while in school.

                    ``(VI) The consequences for the borrower of 
                defaulting on a loan, including limitations on the 
                discharge of an education loan in bankruptcy.
                    ``(VII) Contact information for the lender.
                    ``(VIII) Other information suggested by the persons 
                and entities with whom the Secretary has consulted 
                under clause (i).

        ``(2) Required disclosures.--After making the determinations 
    under paragraph (1), the Secretary, in coordination with the Board 
    of Governors of the Federal Reserve System and after consultation 
    with the public, shall--
            ``(A)(i) provide that the information determined under 
        paragraph (1) shall be disclosed by covered institutions, and 
        institution-affiliated organizations of such covered 
        institutions, with preferred lender arrangements to prospective 
        borrowers and the families of such borrowers regarding the 
        education loans described in section 151(3)(A) that are offered 
        pursuant to such preferred lender arrangements; and
            ``(ii) make clear that such covered institutions and 
        institution-affiliated organizations may provide the required 
        information on a form designed by the institution or 
        organization instead of the model disclosure form described in 
        subparagraph (B);
            ``(B) develop a model disclosure form that may be used by 
        covered institutions, institution-affiliated organizations, and 
        preferred lenders that includes all of the information required 
        under subparagraph (A)(i) in a format that--
                ``(i) is easily usable by students, families, 
            institutions, institution-affiliated organizations, 
            lenders, loan servicers, and guaranty agencies; and
                ``(ii) is similar in format to the form developed by 
            the Board of Governors of the Federal Reserve System under 
            paragraphs (1) and (5)(A) of section 128(e), in order to 
            permit students and the families of students to easily 
            compare private education loans and education loans 
            described in section 151(3)(A); and
            ``(C) update such model disclosure form periodically, as 
        necessary.
    ``(b) Duties of Lenders.--Each lender that has a preferred lender 
arrangement with a covered institution, or an institution-affiliated 
organization of such covered institution, with respect to education 
loans described in section 151(3)(A) shall annually, by a date 
determined by the Secretary, provide to such covered institution or 
such institution-affiliated organization, and to the Secretary, the 
information the Secretary requires pursuant to subsection (a)(2)(A)(i) 
for each type of education loan described in section 151(3)(A) that the 
lender plans to offer pursuant to such preferred lender arrangement to 
students attending such covered institution, or to the families of such 
students, for the next award year.
    ``(c) Duties of Covered Institutions and Institution-Affiliated 
Organizations.--
        ``(1) Providing information to students and families.--
            ``(A) In general.--Each covered institution, and each 
        institution-affiliated organization of such covered 
        institution, that has a preferred lender arrangement shall 
        provide the following information to students attending such 
        institution, or the families of such students, as applicable:
                ``(i) The information the Secretary requires pursuant 
            to subsection (a)(2)(A)(i), for each type of education loan 
            described in section 151(3)(A) offered pursuant to a 
            preferred lender arrangement to students of such 
            institution or the families of such students.
                ``(ii)(I) In the case of a covered institution, the 
            information that the Board of Governors of the Federal 
            Reserve System requires to be disclosed under section 
            128(e)(11) of the Truth in Lending Act (15 U.S.C. 
            1638(e)(11)) to the covered institution, for each type of 
            private education loan offered pursuant to such preferred 
            lender arrangement to students of such institution or the 
            families of such students.
                ``(II) In the case of an institution-affiliated 
            organization, the information the Board of Governors of the 
            Federal Reserve System requires to be disclosed under 
            section 128(e)(1) of the Truth in Lending Act (15 U.S.C. 
            1638(e)(1)), for each type of private education loan 
            offered pursuant to such preferred lender arrangement to 
            students of the institution with which such organization is 
            affiliated or the families of such students.
            ``(B) Timely provision of information.--The information 
        described in subparagraph (A) shall be provided in a manner 
        that allows for the students or the families to take such 
        information into account before selecting a lender or applying 
        for an education loan.
        ``(2) Annual report.--Each covered institution, and each 
    institution-affiliated organization of such covered institution, 
    that has a preferred lender arrangement, shall--
            ``(A) prepare and submit to the Secretary an annual report, 
        by a date determined by the Secretary, that includes, for each 
        lender that has a preferred lender arrangement with such 
        covered institution or organization--
                ``(i) the information described in clauses (i) and (ii) 
            of paragraph (1)(A); and
                ``(ii) a detailed explanation of why such covered 
            institution or institution-affiliated organization entered 
            into a preferred lender arrangement with the lender, 
            including why the terms, conditions, and provisions of each 
            type of education loan provided pursuant to the preferred 
            lender arrangement are beneficial for students attending 
            such institution, or the families of such students, as 
            applicable; and
            ``(B) ensure that the report required under subparagraph 
        (A) is made available to the public and provided to students 
        attending or planning to attend such covered institution and 
        the families of such students.
        ``(3) Code of conduct.--
            ``(A) In general.--Each covered institution, and each 
        institution-affiliated organization of such covered 
        institution, that has a preferred lender arrangement, shall 
        comply with the code of conduct requirements of subparagraphs 
        (A) through (C) of section 487(a)(25).
            ``(B) Applicable code of conduct.--For purposes of 
        subparagraph (A), an institution-affiliated organization of a 
        covered institution shall--
                ``(i) comply with the code of conduct developed and 
            published by such covered institution under subparagraphs 
            (A) and (B) of section 487(a)(25);
                ``(ii) if such institution-affiliated organization has 
            a website, publish such code of conduct prominently on the 
            website; and
                ``(iii) administer and enforce such code of conduct by, 
            at a minimum, requiring that all of such organization's 
            agents with responsibilities with respect to education 
            loans be annually informed of the provisions of such code 
            of conduct.
    ``SEC. 154. LOAN INFORMATION TO BE DISCLOSED AND MODEL DISCLOSURE 
      FORM FOR INSTITUTIONS PARTICIPATING IN THE WILLIAM. D. FORD 
      FEDERAL DIRECT LOAN PROGRAM.
    ``(a) Provision of Disclosures to Institutions by the Secretary.--
Not later than 180 days after the development of the model disclosure 
form under section 153(a)(2)(B), the Secretary shall provide each 
institution of higher education participating in the William D. Ford 
Direct Loan Program under part D of title IV with a completed model 
disclosure form including the same information for Federal Direct 
Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal 
Direct PLUS loans made to, or on behalf of, students attending each 
such institution as is required on such form for loans described in 
section 151(3)(A).
    ``(b) Duties of Institutions.--
        ``(1) In general.--Each institution of higher education 
    participating in the William D. Ford Direct Loan Program under part 
    D of title IV shall--
            ``(A) make the information the Secretary provides to the 
        institution under subsection (a) available to students 
        attending or planning to attend the institution, or the 
        families of such students, as applicable; and
            ``(B) if the institution provides information regarding a 
        private education loan to a prospective borrower, concurrently 
        provide such borrower with the information the Secretary 
        provides to the institution under subsection (a).
        ``(2) Choice of forms.--In providing the information required 
    under paragraph (1), an institution of higher education may use a 
    comparable form designed by the institution instead of the model 
    disclosure form developed under section 153(a)(2)(B).''.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

    SEC. 201. TEACHER QUALITY ENHANCEMENT.
    Title II (20 U.S.C. 1021 et seq.) is amended--
        (1) by inserting before part A the following:
    ``SEC. 200. DEFINITIONS.
    ``In this title:
        ``(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 
        one 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 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) Early childhood educator.--The term `early childhood 
    educator' means an individual with primary responsibility for the 
    education of children in an early childhood education program.
        ``(5) 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.
        ``(6) Eligible partnership.--Except as otherwise provided in 
    section 251, the term `eligible partnership' means an entity that--
            ``(A) shall include--
                ``(i) a high-need local educational agency;
                ``(ii)(I) a high-need school or a consortium of high-
            need schools served by the high-need local educational 
            agency; or
                ``(II) as applicable, a high-need early childhood 
            education program;
                ``(iii) a partner institution;
                ``(iv) a school, department, or program of education 
            within such partner institution, which may include an 
            existing teacher professional development program with 
            proven outcomes within a four-year institution of higher 
            education that provides intensive and sustained 
            collaboration between faculty and local educational 
            agencies consistent with the requirements of this title; 
            and
                ``(v) a school or department of arts and sciences 
            within such partner institution; 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 business.
                ``(vi) A public or private nonprofit educational 
            organization.
                ``(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 school or department within the partner 
            institution that focuses on psychology and human 
            development.
                ``(xii) A school or department within the partner 
            institution with comparable expertise in the disciplines of 
            teaching, learning, and child and adolescent development.
                ``(xiii) An entity operating a program that provides 
            alternative routes to State certification of teachers.
        ``(7) Essential components of reading instruction.--The term 
    `essential components of reading instruction' has the meaning given 
    the term in section 1208 of the Elementary and Secondary Education 
    Act of 1965.
        ``(8) Exemplary teacher.--The term `exemplary teacher' has the 
    meaning given the term in section 9101 of the Elementary and 
    Secondary Education Act of 1965.
        ``(9) High-need early childhood education program.--The term 
    `high-need early childhood education program' means an early 
    childhood education program serving children from low-income 
    families that is located within the geographic area served by a 
    high-need local educational agency.
        ``(10) 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;
            ``(iii) that meets the eligibility requirements for funding 
        under the Small, Rural School Achievement Program under section 
        6211(b) of the Elementary and Secondary Education Act of 1965; 
        or
            ``(iv) that meets the eligibility requirements for funding 
        under the Rural and Low-Income School Program under section 
        6221(b) of the Elementary and Secondary Education Act of 1965; 
        and
            ``(B)(i) for which there is a high percentage 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.
        ``(11) High-need school.--
            ``(A) In general.--The term `high-need school' means a 
        school that, based on the most recent data available, meets one 
        or both of the following:
                ``(i) The school is in the highest quartile of schools 
            in a ranking of all schools served by a local educational 
            agency, ranked in descending order by percentage of 
            students from low-income families enrolled in such schools, 
            as determined by the local educational agency based on one 
            of the following measures of poverty:

                    ``(I) The percentage of students aged 5 through 17 
                in poverty counted in the most recent census data 
                approved by the Secretary.
                    ``(II) The percentage of students eligible for a 
                free or reduced price school lunch under the Richard B. 
                Russell National School Lunch Act.
                    ``(III) The percentage of students in families 
                receiving assistance under the State program funded 
                under part A of title IV of the Social Security Act.
                    ``(IV) The percentage of students eligible to 
                receive medical assistance under the Medicaid program.
                    ``(V) A composite of two or more of the measures 
                described in subclauses (I) through (IV).

                ``(ii) In the case of--

                    ``(I) an elementary school, the school serves 
                students not less than 60 percent of whom are eligible 
                for a free or reduced price school lunch under the 
                Richard B. Russell National School Lunch Act; or
                    ``(II) any other school that is not an elementary 
                school, the other school serves students not less than 
                45 percent of whom are eligible for a free or reduced 
                price school lunch under the Richard B. Russell 
                National School Lunch Act.

            ``(B) Special rule.--
                ``(i) Designation by the secretary.--The Secretary may, 
            upon approval of an application submitted by an eligible 
            partnership seeking a grant under this title, designate a 
            school that does not qualify as a high-need school under 
            subparagraph (A) as a high-need school for the purpose of 
            this title. The Secretary shall base the approval of an 
            application for designation of a school under this clause 
            on a consideration of the information required under clause 
            (ii), and may also take into account other information 
            submitted by the eligible partnership.
                ``(ii) Application requirements.--An application for 
            designation of a school under clause (i) shall include--

                    ``(I) the number and percentage of students 
                attending such school who are--

                        ``(aa) aged 5 through 17 in poverty counted in 
                    the most recent census data approved by the 
                    Secretary;
                        ``(bb) eligible for a free or reduced price 
                    school lunch under the Richard B. Russell National 
                    School Lunch Act;
                        ``(cc) in families receiving assistance under 
                    the State program funded under part A of title IV 
                    of the Social Security Act; or
                        ``(dd) eligible to receive medical assistance 
                    under the Medicaid program;

                    ``(II) information about the student academic 
                achievement of students at such school; and
                    ``(III) for a secondary school, the graduation rate 
                for such school.

        ``(12) Highly competent.--The term `highly competent', when 
    used with respect to an early childhood educator, means an 
    educator--
            ``(A) with specialized education and training in 
        development and education of young children from birth until 
        entry into kindergarten;
            ``(B) with--
                ``(i) a baccalaureate degree in an academic major in 
            the arts and sciences; or
                ``(ii) an associate's degree in a related educational 
            area; and
            ``(C) who has demonstrated a high level of knowledge and 
        use of content and pedagogy in the relevant areas associated 
        with quality early childhood education.
        ``(13) 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.
        ``(14) Induction program.--The term `induction program' means a 
    formalized program for new teachers during not less than the 
    teachers' first two 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, including mentor 
        teachers, as well as time for information-sharing among 
        teachers, principals, administrators, other appropriate 
        instructional staff, and participating faculty in the partner 
        institution.
            ``(C) The application of empirically-based practice and 
        scientifically valid research on instructional practices.
            ``(D) Opportunities for new teachers to draw directly on 
        the expertise of teacher mentors, faculty, and researchers to 
        support the integration of empirically-based practice and 
        scientifically valid research with practice.
            ``(E) The development of skills in instructional and 
        behavioral interventions derived from empirically-based 
        practice and, where applicable, scientifically valid 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 with respect to the learning process and the 
        assessment of learning.
            ``(H) Assistance with the understanding of data, 
        particularly student achievement data, and the applicability of 
        such data in classroom instruction.
            ``(I) Regular and structured observation and evaluation of 
        new teachers by multiple evaluators, using valid and reliable 
        measures of teaching skills.
        ``(15) Limited english proficient.--The term `limited English 
    proficient' has the meaning given the term in section 9101 of the 
    Elementary and Secondary Education Act of 1965.
        ``(16) Parent.--The term `parent' has the meaning given the 
    term in section 9101 of the Elementary and Secondary Education Act 
    of 1965.
        ``(17) Partner institution.--The term `partner institution' 
    means an institution of higher education, which may include a two-
    year institution of higher education offering a dual program with a 
    four-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 80 percent or more of 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) before the first publication of such report 
                card; 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; and

            ``(B) that requires--
                ``(i) each student in the program to meet high academic 
            standards or demonstrate a record of success, as determined 
            by the institution (including prior to entering and being 
            accepted into a program), and participate in intensive 
            clinical experience;
                ``(ii) each student in the program preparing to become 
            a teacher to become highly qualified; and
                ``(iii) each student in the program preparing to become 
            an early childhood educator to meet degree requirements, as 
            established by the State, and become highly competent.
        ``(18) Principles of scientific research.--The term `principles 
    of scientific research' means principles of research that--
            ``(A) apply rigorous, systematic, and objective methodology 
        to obtain reliable and valid knowledge relevant to education 
        activities and programs;
            ``(B) present findings and make claims that are appropriate 
        to, and supported by, the methods that have been employed; and
            ``(C) include, appropriate to the research being 
        conducted--
                ``(i) use of systematic, empirical methods that draw on 
            observation or experiment;
                ``(ii) use of data analyses that are adequate to 
            support the general findings;
                ``(iii) reliance on measurements or observational 
            methods that provide reliable and generalizable findings;
                ``(iv) strong claims of causal relationships, only with 
            research designs that eliminate plausible competing 
            explanations for observed results, such as, but not limited 
            to, random-assignment experiments;
                ``(v) presentation of studies and methods in sufficient 
            detail and clarity to allow for replication or, at a 
            minimum, to offer the opportunity to build systematically 
            on the findings of the research;
                ``(vi) acceptance by a peer-reviewed journal or 
            critique by a panel of independent experts through a 
            comparably rigorous, objective, and scientific review; and
                ``(vii) consistency of findings across multiple studies 
            or sites to support the generality of results and 
            conclusions.
        ``(19) Professional development.--The term `professional 
    development' has the meaning given the term in section 9101 of the 
    Elementary and Secondary Education Act of 1965.
        ``(20) Scientifically valid research.--The term `scientifically 
    valid research' includes applied research, basic research, and 
    field-initiated research in which the rationale, design, and 
    interpretation are soundly developed in accordance with principles 
    of scientific research.
        ``(21) Teacher mentoring.--The term `teacher mentoring' means 
    the mentoring of new or prospective teachers through a 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 and 
        classroom management (including approaches that improve the 
        schoolwide climate for learning, which may include positive 
        behavioral interventions and supports);
            ``(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 paid release time for mentors, as 
        applicable;
            ``(E) provides mentoring to each mentee by a colleague who 
        teaches in the same field, grade, or subject as the mentee;
            ``(F) promotes empirically-based practice of, and 
        scientifically valid research on, where applicable--
                ``(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
            ``(G) includes--
                ``(i) common planning time or regularly scheduled 
            collaboration for the mentor and mentee; and
                ``(ii) joint professional development opportunities.
        ``(22) Teaching residency program.--The term `teaching 
    residency program' means a school-based teacher preparation program 
    in which a prospective teacher--
            ``(A) for one 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, 
        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; and
            ``(D) prior to completion of the program, earns a master's 
        degree, attains full State teacher certification or licensure, 
        and becomes highly qualified.
        ``(23) 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) effectively teach higher-order analytical, 
        evaluation, problem-solving, and communication skills;
            ``(D) employ strategies grounded in the disciplines of 
        teaching and learning that--
                ``(i) are based on empirically-based practice and 
            scientifically valid research, where applicable, related to 
            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;
            ``(E) conduct an ongoing assessment of student learning, 
        which may include the use of formative assessments, 
        performance-based assessments, project-based assessments, or 
        portfolio assessments, that measures higher-order thinking 
        skills (including application, analysis, synthesis, and 
        evaluation);
            ``(F) effectively manage a classroom, including the ability 
        to implement positive behavioral interventions and support 
        strategies;
            ``(G) communicate and work with parents, and involve 
        parents in their children's education; and
            ``(H) use, in the case of an early childhood educator, age-
        appropriate and developmentally appropriate strategies and 
        practices for children in early childhood education 
        programs.'';
        (2) by striking part A and inserting the following:

              ``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

    ``SEC. 201. PURPOSES.
    ``The purposes of this part are to--
        ``(1) improve student achievement;
        ``(2) improve the quality of prospective and new teachers by 
    improving the preparation of prospective teachers and enhancing 
    professional development activities for new teachers;
        ``(3) hold teacher preparation programs at institutions of 
    higher education accountable for preparing highly qualified 
    teachers; and
        ``(4) recruit highly qualified individuals, including 
    minorities and individuals from other occupations, into the 
    teaching force.
    ``SEC. 202. PARTNERSHIP GRANTS.
    ``(a) Program Authorized.--From amounts made available under 
section 209, 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 the partners in the eligible 
    partnership with respect to the preparation, ongoing training, 
    professional development, and retention of general education and 
    special education teachers, principals, and, as applicable, early 
    childhood educators;
        ``(2) a description of the extent to which the program to be 
    carried out with grant funds, as described in subsection (c), will 
    prepare prospective and new teachers with strong teaching skills;
        ``(3) a description of how such program will prepare 
    prospective and new teachers to understand and use research and 
    data to modify and improve classroom instruction;
        ``(4) a description of--
            ``(A) how the eligible partnership will coordinate 
        strategies and activities assisted under the grant with other 
        teacher preparation or professional development programs, 
        including programs funded under the Elementary and Secondary 
        Education Act of 1965 and the Individuals with Disabilities 
        Education Act, and through the National Science Foundation; and
            ``(B) how the activities of the partnership will be 
        consistent with State, local, and other education reform 
        activities that promote teacher quality and student academic 
        achievement;
        ``(5) an assessment that describes the resources available to 
    the eligible partnership, including--
            ``(A) the integration of funds from other related sources;
            ``(B) the intended use of the grant funds; and
            ``(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 eligible partnership will meet the purposes 
        of this part;
            ``(B) how the partnership will carry out the activities 
        required under subsection (d) or (e), based on the needs 
        identified in paragraph (1), with the goal of improving student 
        academic achievement;
            ``(C) if the partnership chooses to use funds under this 
        section for a project or activities under subsection (f) or 
        (g), how the partnership will carry out such project or 
        required activities based on the needs identified in paragraph 
        (1), with the goal of improving student academic achievement;
            ``(D) the partnership's evaluation plan under section 
        204(a);
            ``(E) how the partnership will align the teacher 
        preparation program under subsection (c) with the--
                ``(i) State early learning standards for early 
            childhood education programs, as appropriate, and with the 
            relevant domains of early childhood development; and
                ``(ii) 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;
            ``(F) how the partnership will prepare general education 
        teachers to teach students with disabilities, including 
        training related to participation as a member of individualized 
        education program teams, as defined in section 614(d)(1)(B) of 
        the Individuals with Disabilities Education Act;
            ``(G) how the partnership will prepare general education 
        and special education teachers to teach students who are 
        limited English proficient;
            ``(H) how faculty at the partner institution will work, 
        during the term of the grant, with highly qualified teachers in 
        the classrooms of high-need schools served by the high-need 
        local educational agency in the partnership to--
                ``(i) provide high-quality professional development 
            activities to strengthen the content knowledge and teaching 
            skills of elementary school and secondary school teachers; 
            and
                ``(ii) train other classroom teachers to implement 
            literacy programs that incorporate the essential components 
            of reading instruction;
            ``(I) how the partnership will design, implement, or 
        enhance a year-long and rigorous teaching preservice clinical 
        program component;
            ``(J) how the partnership will support in-service 
        professional development strategies and activities; and
            ``(K) how the partnership will collect, analyze, and use 
        data on the retention of all teachers and early childhood 
        educators in schools and early childhood education programs 
        located in the geographic area served by the partnership to 
        evaluate the effectiveness of the partnership's teacher and 
        educator support system; 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 will effectively prepare teachers, including 
        providing content expertise and expertise in teaching, as 
        appropriate;
            ``(B) a demonstration of the eligible partnership's 
        capability and commitment to, and the accessibility to and 
        involvement of faculty in, the use of empirically-based 
        practice and scientifically valid research on teaching and 
        learning;
            ``(C) a description of how the teacher preparation program 
        will design and implement an induction program to support, 
        through not less than the first two years of teaching, all new 
        teachers who are prepared by the teacher preparation program in 
        the partnership and who teach in the high-need local 
        educational agency in the partnership, and, to the extent 
        practicable, all new teachers who teach in such high-need local 
        educational agency, 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 early childhood education program or an elementary school or 
        secondary school classroom setting, as applicable, including 
        release time and receiving workload credit for such 
        participation.
    ``(c) Use of Grant Funds.--An eligible partnership that receives a 
grant under this section--
        ``(1) shall use grant funds to carry out a program for the pre-
    baccalaureate preparation of teachers under subsection (d), a 
    teaching residency program under subsection (e), or a combination 
    of such programs; and
        ``(2) may use grant funds to carry out a leadership development 
    program under subsection (f).
    ``(d) Partnership Grants for Pre-Baccalaureate Preparation of 
Teachers.--An eligible partnership that receives a grant to carry out 
an effective program for the pre-baccalaureate preparation of teachers 
shall carry out a program that includes all of the following:
        ``(1) Reforms.--
            ``(A) In general.--Implementing reforms, described in 
        subparagraph (B), within each teacher preparation program and, 
        as applicable, each preparation program for early childhood 
        education programs, of the eligible partnership that is 
        assisted under this section, to hold each program accountable 
        for--
                ``(i) preparing--

                    ``(I) new or prospective teachers to be highly 
                qualified (including teachers in rural school districts 
                who may teach multiple subjects, special educators, and 
                teachers of students who are limited English proficient 
                who may teach multiple subjects);
                    ``(II) such teachers and, as applicable, early 
                childhood educators, to understand empirically-based 
                practice and scientifically valid research related to 
                teaching and learning and the applicability of such 
                practice and research, including through the effective 
                use of technology, instructional techniques, and 
                strategies consistent with the principles of universal 
                design for learning, and through positive behavioral 
                interventions and support strategies to improve student 
                achievement; and
                    ``(III) as applicable, early childhood educators to 
                be highly competent; and

                ``(ii) promoting strong teaching skills and, as 
            applicable, techniques for early childhood educators to 
            improve children's cognitive, social, emotional, and 
            physical development.
            ``(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 valid research, where applicable, about 
            teaching and learning so that all prospective teachers and, 
            as applicable, early childhood educators--

                    ``(I) understand and can implement research-based 
                teaching practices in classroom 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 
                classroom instruction;
                    ``(IV) possess teaching skills and an understanding 
                of effective instructional strategies across all 
                applicable content areas that enable general education 
                and special education teachers and early childhood 
                educators 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, students with 
                    low literacy levels and, as applicable, children in 
                    early childhood education programs; and
                        ``(bb) differentiate instruction for such 
                    students;

                    ``(V) can effectively participate as a member of 
                the individualized education program team, as defined 
                in section 614(d)(1)(B) of the Individuals with 
                Disabilities Education Act; and
                    ``(VI) can successfully employ 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 prospective teachers receive training in 
            both teaching and relevant content areas in order to become 
            highly qualified, which may include training in multiple 
            subjects to teach multiple grade levels as may be needed 
            for individuals preparing to teach in rural communities and 
            for individuals preparing to teach students with 
            disabilities as described in section 602(10)(D) of the 
            Individuals with Disabilities Education Act;
                ``(iv) developing and implementing an induction 
            program;
                ``(v) developing admissions goals and priorities 
            aligned with the hiring objectives of the high-need local 
            educational agency in the eligible partnership; and
                ``(vi) implementing program and curriculum changes, as 
            applicable, to ensure that prospective teachers have the 
            requisite content knowledge, preparation, and degree to 
            teach Advanced Placement or International Baccalaureate 
            courses successfully.
        ``(2) Clinical experience and interaction.--Developing and 
    improving a sustained and high-quality preservice clinical 
    education program to further develop the teaching skills of all 
    prospective teachers and, as applicable, early childhood educators, 
    involved in the program. Such program shall do the following:
            ``(A) Incorporate year-long opportunities for enrichment, 
        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 
            prospective teachers and faculty, experienced teachers, 
            principals, other administrators, and school leaders at 
            early childhood education programs (as applicable), 
            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) Be offered over the course of a program of teacher 
        preparation.
            ``(E) Be tightly aligned with course work (and may be 
        developed as a fifth year of a teacher preparation program).
            ``(F) Where feasible, allow prospective teachers to learn 
        to teach in the same local educational agency in which the 
        teachers will work, learning the instructional initiatives and 
        curriculum of that local educational agency.
            ``(G) As applicable, provide training and experience to 
        enhance the teaching skills of prospective teachers to better 
        prepare such teachers to meet the unique needs of teaching in 
        rural or urban communities.
            ``(H) Provide support and training for individuals 
        participating in an activity for prospective or new teachers 
        described in this paragraph or paragraph (1) or (3), and for 
        individuals 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 pay, 
            based on the mentor's extra skills and responsibilities.
        ``(3) Induction programs for new teachers.--Creating an 
    induction program for new teachers or, in the case of an early 
    childhood education program, providing mentoring or coaching for 
    new early childhood educators.
        ``(4) Support and training for participants in early childhood 
    education programs.--In the case of an eligible partnership 
    focusing on early childhood educator preparation, implementing 
    initiatives that increase compensation for early childhood 
    educators who attain associate or baccalaureate degrees in early 
    childhood education.
        ``(5) Teacher recruitment.--Developing and implementing 
    effective mechanisms (which may include alternative routes to State 
    certification of teachers) to ensure that the eligible partnership 
    is able to recruit qualified individuals to become highly qualified 
    teachers through the activities of the eligible partnership, which 
    may include an emphasis on recruiting into the teaching 
    profession--
            ``(A) individuals from under represented populations;
            ``(B) individuals to teach in rural communities and teacher 
        shortage areas, including mathematics, science, special 
        education, and the instruction of limited English proficient 
        students; and
            ``(C) mid-career professionals from other occupations, 
        former military personnel, and recent college graduates with a 
        record of academic distinction.
        ``(6) Literacy training.--Strengthening the literacy teaching 
    skills of prospective and, as applicable, new elementary school and 
    secondary school teachers--
            ``(A) to implement literacy programs that incorporate the 
        essential components of reading instruction;
            ``(B) to use screening, diagnostic, formative, and 
        summative assessments to determine students' literacy levels, 
        difficulties, and growth in order to improve classroom 
        instruction and improve student reading and writing skills;
            ``(C) to provide individualized, intensive, and targeted 
        literacy instruction for students with deficiencies in literacy 
        skills; and
            ``(D) to integrate literacy skills in the classroom across 
        subject areas.
    ``(e) 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) Placing 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 who participate in 
        the teaching residency program receive--
                ``(i) effective preservice preparation as described in 
            paragraph (2);
                ``(ii) teacher mentoring;
                ``(iii) support required 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 (d)(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 
            graduate-level course work to earn a master's degree 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 new 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 be relieved 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, but 
            not limited to, observations of the following:

                    ``(I) Planning and preparation, including 
                demonstrated knowledge of content, pedagogy, and 
                assessment, including the use of formative and 
                diagnostic 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, based 
                on multiple measures that are valid and reliable and 
                that, when feasible, may include valid, reliable, and 
                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 new or prospective literacy and mathematics 
                coaches or instructors, 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--

                    ``(I) that are aligned with the hiring objectives 
                of the local educational agency partnering with the 
                program, as well as the instructional initiatives and 
                curriculum of such agency, in exchange for a commitment 
                by such agency to hire qualified graduates from the 
                teaching residency program; and
                    ``(II) which may include consideration of 
                applicants who reflect the communities in which they 
                will teach as well as consideration of individuals from 
                underrepresented populations in the teaching 
                profession.

                ``(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 two 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 four-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 
            subsection 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, which may be determined by interviews or 
                performance assessments, as specified by the eligible 
                partnership.

            ``(C) Stipends or salaries; applications; agreements; 
        repayments.--
                ``(i) Stipends or salaries.--A teaching residency 
            program under this subsection shall provide a one-year 
            living stipend or salary to teaching residents during the 
            one-year teaching residency program.
                ``(ii) Applications for stipends or salaries.--Each 
            teacher residency candidate desiring a stipend or salary 
            during the period of residency shall submit an application 
            to the eligible partnership at such time, and containing 
            such information and assurances, as the eligible 
            partnership may require.
                ``(iii) Agreements to serve.--Each application 
            submitted under clause (ii) shall contain or be accompanied 
            by an agreement that the applicant will--

                    ``(I) serve as a full-time teacher for a total of 
                not less than three academic years immediately after 
                successfully completing the one-year teaching residency 
                program;
                    ``(II) fulfill the requirement under subclause (I) 
                by teaching in a high-need school served by the high-
                need local educational agency in the eligible 
                partnership and teach a subject or area that is 
                designated as high need by the partnership;
                    ``(III) provide to the eligible partnership a 
                certificate, from the chief administrative officer of 
                the local educational agency in which the resident is 
                employed, of the employment required in subclauses (I) 
                and (II) at the beginning of, and upon completion of, 
                each year or partial year of service;
                    ``(IV) meet the requirements to be a highly 
                qualified teacher, as defined in section 9101 of the 
                Elementary and Secondary Education Act of 1965, or 
                section 602 of the Individuals with Disabilities 
                Education Act, when the applicant begins to fulfill the 
                service obligation under this clause; and
                    ``(V) comply with the requirements set by the 
                eligible partnership under clause (iv) if the applicant 
                is unable or unwilling to complete the service 
                obligation required by this clause.

                ``(iv) Repayments.--

                    ``(I) In general.--A grantee carrying out a 
                teaching residency program under this paragraph shall 
                require a recipient of a stipend or salary under clause 
                (i) who does not complete, or who notifies the 
                partnership that the recipient intends not to complete, 
                the service obligation required by clause (iii) to 
                repay such stipend or salary to the eligible 
                partnership, together with interest, at a rate 
                specified by the partnership in the agreement, and in 
                accordance with such other terms and conditions 
                specified by the eligible partnership, as necessary.
                    ``(II) Other terms and conditions.--Any other terms 
                and conditions specified by the eligible partnership 
                may include reasonable provisions for pro-rata 
                repayment of the stipend or salary described in clause 
                (i) or for deferral of a teaching resident's service 
                obligation required by clause (iii), on grounds of 
                health, incapacitation, inability to secure employment 
                in a school served by the eligible partnership, being 
                called to active duty in the Armed Forces of the United 
                States, or other extraordinary circumstances.
                    ``(III) Use of repayments.--An eligible partnership 
                shall use any repayment received under this clause to 
                carry out additional activities that are consistent 
                with the purposes of this subsection.

    ``(f) Partnership Grants for the Development of Leadership 
Programs.--
        ``(1) In general.--An eligible partnership that receives a 
    grant under this section may carry out an effective school 
    leadership program, which may be carried out in partnership with a 
    local educational agency located in a rural area and that shall 
    include all of the following activities:
            ``(A) Preparing individuals enrolled or preparing to enroll 
        in school leadership programs for careers as superintendents, 
        principals, early childhood education program directors, or 
        other school leaders (including individuals preparing to work 
        in local educational agencies located in rural areas who may 
        perform multiple duties in addition to the role of a school 
        leader).
            ``(B) Promoting strong leadership skills and, as 
        applicable, techniques for school leaders to effectively--
                ``(i) create and maintain a data-driven, professional 
            learning community within the leader's school;
                ``(ii) provide a climate conducive to the professional 
            development of teachers, with a focus on improving student 
            academic achievement and the development of effective 
            instructional leadership skills;
                ``(iii) understand the teaching and assessment skills 
            needed to support successful classroom instruction and to 
            use data to evaluate teacher instruction and drive teacher 
            and student learning;
                ``(iv) manage resources and school time to improve 
            student academic achievement and ensure the school 
            environment is safe;
                ``(v) engage and involve parents, community members, 
            the local educational agency, businesses, and other 
            community leaders, to leverage additional resources to 
            improve student academic achievement; and
                ``(vi) understand how students learn and develop in 
            order to increase academic achievement for all students.
            ``(C) Ensuring that individuals who participate in the 
        school leadership program receive--
                ``(i) effective preservice preparation as described in 
            subparagraph (D);
                ``(ii) mentoring; and
                ``(iii) if applicable, full State certification or 
            licensure to become a school leader.
            ``(D) Developing and improving a sustained and high-quality 
        preservice clinical education program to further develop the 
        leadership skills of all prospective school leaders involved in 
        the program. Such clinical education program shall do the 
        following:
                ``(i) Incorporate year-long opportunities for 
            enrichment, including--

                    ``(I) clinical learning in high-need schools served 
                by the high-need local educational agency or a local 
                educational agency located in a rural area in the 
                eligible partnership and identified by the eligible 
                partnership; and
                    ``(II) closely supervised interaction between 
                prospective school leaders and faculty, new and 
                experienced teachers, and new and experienced school 
                leaders, in such high-need schools.

                ``(ii) Integrate pedagogy and practice and promote 
            effective leadership skills, meeting the unique needs of 
            urban, rural, or geographically isolated communities, as 
            applicable.
                ``(iii) Provide for mentoring of new school leaders.
            ``(E) Creating an induction program for new school leaders.
            ``(F) Developing and implementing effective mechanisms to 
        ensure that the eligible partnership is able to recruit 
        qualified individuals to become school leaders through the 
        activities of the eligible partnership, which may include an 
        emphasis on recruiting into school leadership professions--
                ``(i) individuals from underrepresented populations;
                ``(ii) individuals to serve as superintendents, 
            principals, or other school administrators in rural and 
            geographically isolated communities and school leader 
            shortage areas; and
                ``(iii) mid-career professionals from other 
            occupations, former military personnel, and recent college 
            graduates with a record of academic distinction.
        ``(2) Selection of individuals for the leadership program.--In 
    order to be eligible for the school leadership program under this 
    subsection, an individual shall be enrolled in or preparing to 
    enroll in an institution of higher education, and shall--
            ``(A) be a--
                ``(i) recent graduate of an institution of higher 
            education;
                ``(ii) mid-career professional from outside the field 
            of education with strong content knowledge or a record of 
            professional accomplishment;
                ``(iii) current teacher who is interested in becoming a 
            school leader; or
                ``(iv) school leader who is interested in becoming a 
            superintendent; and
            ``(B) submit an application to the leadership program.
    ``(g) Partnership With Digital Education Content Developer.--An 
eligible partnership that receives a grant under this section may use 
grant funds provided to carry out the activities described in 
subsection (d) or (e), or both, to partner with a television public 
broadcast station, as defined in section 397(6) of the Communications 
Act of 1934 (47 U.S.C. 397(6)), or another entity that develops digital 
educational content, for the purpose of improving the quality of pre-
baccalaureate teacher preparation programs or to enhance the quality of 
preservice training for prospective teachers.
    ``(h) Evaluation and Reporting.--The Secretary shall--
        ``(1) evaluate the programs assisted under this section; and
        ``(2) make publicly available a report detailing the 
    Secretary's evaluation of each such program.
    ``(i) 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 carried out under this section.
        ``(2) Regular communication.--To ensure timely and meaningful 
    consultation as described in paragraph (1), 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 the eligible 
    partnership submits to the Secretary a written consent of such 
    changes signed by all members of the eligible partnership.
    ``(j) 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.
    ``(k) 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 five years.
        ``(2) Number of awards.--An eligible partnership may not 
    receive more than one grant during a five-year period. Nothing in 
    this title shall be construed to prohibit an individual member, 
    that can demonstrate need, of an eligible partnership that receives 
    a grant under this title from entering into another eligible 
    partnership consisting of new members and receiving a grant with 
    such other eligible partnership before the five-year period 
    described in the preceding sentence applicable to the eligible 
    partnership with which the individual member has first partnered 
    has expired.
    ``(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.--The Secretary, in funding applications under 
    this part, shall give priority--
            ``(A) to eligible partnerships that include an institution 
        of higher education whose teacher preparation program has a 
        rigorous selection process to ensure the highest quality of 
        students entering such program; and
            ``(B)(i) to applications from broad-based eligible 
        partnerships that involve businesses and community 
        organizations; or
            ``(ii) 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 grant 
    amounts, 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 
two percent of the funds provided to administer 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 and measurable performance objectives. The plan shall include 
objectives and measures for increasing--
        ``(1) achievement for all prospective and new teachers, as 
    measured by the eligible partnership;
        ``(2) teacher retention in the first three 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 highly qualified teachers hired by the 
    high-need local educational agency who are members of 
    underrepresented groups;
        ``(C) the percentage of highly qualified teachers hired by the 
    high-need local educational agency 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 highly qualified teachers hired by the 
    high-need local educational agency who teach in high-need areas 
    (including special education, language instruction educational 
    programs for limited English proficient students, and early 
    childhood education);
        ``(E) the percentage of highly qualified teachers hired by the 
    high-need local educational agency who teach in high-need schools, 
    disaggregated by the elementary school and secondary school levels;
        ``(F) as applicable, the percentage of early childhood 
    education program classes in the geographic area served by the 
    eligible partnership taught by early childhood educators who are 
    highly competent; and
        ``(G) as applicable, the percentage of teachers trained--
            ``(i) to integrate technology effectively into curricula 
        and instruction, including technology consistent with the 
        principles of universal design for learning; and
            ``(ii) to use technology effectively to collect, manage, 
        and analyze data to improve teaching and learning for the 
        purpose of improving student academic achievement.
    ``(b) Information.--An eligible partnership receiving a grant under 
this part shall ensure that teachers, principals, school 
superintendents, faculty, and leadership at institutions of higher 
education located in the geographic areas served by the eligible 
partnership are provided information, including through electronic 
means, about the activities carried out with funds under this part.
    ``(c) Revised Application.--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 of the grant, as appropriate, by the end of the third year of 
a grant under this part, then the Secretary--
        ``(1) shall cancel the grant; and
        ``(2) may use any funds returned or available because of such 
    cancellation under paragraph (1) to--
            ``(A) increase other grant awards under this part; or
            ``(B) award new grants to other eligible partnerships under 
        this part.
    ``(d) Evaluation and Dissemination.--The Secretary shall evaluate 
the activities funded under this part and report the findings regarding 
the evaluation of such 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, the following:
            ``(A) Goals and assurances.--
                ``(i) For the most recent year for which the 
            information is available for the institution--

                    ``(I) whether the goals set under section 206 have 
                been met; and
                    ``(II) a description of the activities the 
                institution implemented to achieve such goals.

                ``(ii) A description of the steps the institution is 
            taking to improve its performance in meeting the annual 
            goals set under section 206.
                ``(iii) A description of the activities the institution 
            has implemented to meet the assurances provided under 
            section 206.
            ``(B) Pass rates and scaled scores.--For the most recent 
        year for which the information is available for those students 
        who took the assessments used for teacher certification or 
        licensure by the State in which the program is located and are 
        enrolled in the traditional teacher preparation program or 
        alternative routes to State certification or licensure program, 
        and for those who have taken such assessments and have 
        completed the traditional teacher preparation program or 
        alternative routes to State certification or licensure program 
        during the two-year period preceding such year, for each of 
        such assessments--
                ``(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 students who passed such 
            assessment;
                ``(iii) the percentage of students who have taken such 
            assessment who enrolled in and completed the traditional 
            teacher preparation program or alternative routes to State 
            certification or licensure program, as applicable;
                ``(iv) the average scaled score for all students who 
            took 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.
            ``(C) Program information.--A description of--
                ``(i) the criteria for admission into the program;
                ``(ii) the number of students in the program 
            (disaggregated by race, ethnicity, and gender);
                ``(iii) the average number of hours of supervised 
            clinical experience required for those in the program;
                ``(iv) the number of full-time equivalent faculty and 
            students in the supervised clinical experience; and
                ``(v) the total number of students who have been 
            certified or licensed as teachers, disaggregated by subject 
            and area of certification or licensure.
            ``(D) 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.
            ``(E) Designation as low-performing.--Whether the program 
        has been designated as low-performing by the State under 
        section 207(a).
            ``(F) Use of technology.--A description of the activities, 
        including activities consistent with the principles of 
        universal design for learning, that prepare teachers to 
        integrate technology effectively into curricula and 
        instruction, and to use technology effectively to collect, 
        manage, and analyze data in order to improve teaching and 
        learning for the purpose of increasing student academic 
        achievement.
            ``(G) Teacher training.--A description of the activities 
        that prepare general education and special education teachers 
        to teach students with disabilities effectively, including 
        training related to participation as a member of individualized 
        education program teams, as defined in section 614(d)(1)(B) of 
        the Individuals with Disabilities Education Act, and to 
        effectively teach students who are limited English proficient.
        ``(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 
    $27,500 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)(B), with respect to an average pass rate and 
    scaled score on each State certification or licensure assessment 
    taken over a three-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, and make widely available to 
    the general public, in a uniform and comprehensible manner that 
    conforms with the definitions and methods established by the 
    Secretary, an annual 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 to attain initial teacher certification or licensure 
        and to be certified or licensed to teach particular academic 
        subjects, areas, or 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, as applicable, 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, 
            including those that offer 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 and entities who have taken the assessment who 
            pass such assessment;
                ``(iii) the percentage of students who have taken the 
            assessment who enrolled in and completed a teacher 
            preparation program; and
                ``(iv) the average scaled score of individuals 
            participating in such a program, or who have completed such 
            a program during the two-year period preceding the first 
            year for which the annual State report card is provided, 
            who took each such assessment.
            ``(E) A description of alternative routes to teacher 
        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 
            two-year period preceding the date for which the 
            determination is made, 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 two-year period preceding the first year 
            for which the annual State report card is provided, 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--
                ``(i) the criteria for admission into the program;
                ``(ii) the number of students in the program, 
            disaggregated by race, ethnicity, 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);
                ``(iii) the average number of hours of supervised 
            clinical experience required for those in the program; and
                ``(iv) 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) A description of the extent to which teacher 
        preparation programs are addressing shortages of highly 
        qualified teachers, by area of certification or licensure, 
        subject, and specialty, in the State's public schools.
            ``(J) The extent to which teacher preparation programs 
        prepare teachers, including general education and special 
        education teachers, to teach students with disabilities 
        effectively, including training related to participation as a 
        member of individualized education program teams, as defined in 
        section 614(d)(1)(B) of the Individuals with Disabilities 
        Education Act.
            ``(K) A description of the activities that prepare teachers 
        to--
                ``(i) integrate technology effectively into curricula 
            and instruction, including activities consistent with the 
            principles of universal design for learning; and
                ``(ii) use technology effectively to collect, manage, 
            and analyze data to improve teaching and learning for the 
            purpose of increasing student academic achievement.
            ``(L) The extent to which teacher preparation programs 
        prepare teachers, including general education and special 
        education teachers, to effectively teach students who are 
        limited English proficient.
        ``(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) Data Quality.--The Secretary shall prescribe regulations to 
ensure the reliability, validity, integrity, and accuracy of the data 
submitted pursuant to this section.
    ``(d) Report of the Secretary on the Quality of Teacher 
Preparation.--
        ``(1) Report card.--The Secretary shall annually provide to the 
    authorizing committees, 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 (L) of subsection (b)(1). Such report shall identify States 
    for which eligible partnerships received a grant under this part.
        ``(2) Report to congress.--The Secretary shall prepare and 
    submit a report to the authorizing committees 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 one 
        State for teacher certification or licensure.
        ``(3) Special rule.--In the case of a teacher preparation 
    program with fewer than ten scores reported on any single initial 
    teacher certification or licensure assessment during an academic 
    year, the Secretary shall collect and publish, and make publicly 
    available, information with respect to an average pass rate and 
    scaled score on each State certification or licensure assessment 
    taken over a three-year period.
    ``(e) 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. 206. TEACHER DEVELOPMENT.
    ``(a) Annual Goals.--Each institution of higher education that 
conducts a traditional teacher preparation program (including programs 
that offer any ongoing professional development programs) 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 increasing the number of 
prospective teachers trained in teacher shortage areas designated by 
the Secretary or by the State educational agency, including 
mathematics, science, special education, and instruction of limited 
English proficient students.
    ``(b) Assurances.--Each institution described in subsection (a) 
shall provide assurances 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) training provided to prospective teachers is closely 
    linked with the needs of schools and the instructional decisions 
    new teachers face in the classroom;
        ``(3) prospective special education teachers receive course 
    work in core academic subjects and receive training in providing 
    instruction in core academic subjects;
        ``(4) general 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
        ``(5) prospective teachers receive training on how to 
    effectively teach in urban and rural schools, as applicable.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to require an institution to create a new teacher preparation 
area of concentration or degree program or adopt a specific curriculum 
in complying with this section.
    ``SEC. 207. STATE FUNCTIONS.
    ``(a) State Assessment.--In order to receive funds under this Act, 
a State shall conduct an assessment to identify low-performing teacher 
preparation programs in the State and to assist such programs through 
the provision of technical assistance. Each such State shall provide 
the Secretary with an annual list of low-performing teacher preparation 
programs and an identification of those programs at risk of being 
placed on such list, as applicable. Such assessment shall be described 
in the report under section 205(b). Levels of performance shall be 
determined solely by the State and may include criteria based on 
information collected pursuant to this part, including progress in 
meeting the goals of--
        ``(1) increasing the percentage of highly qualified teachers in 
    the State, including increasing professional development 
    opportunities;
        ``(2) improving student academic achievement for elementary and 
    secondary students; and
        ``(3) raising the standards for entry into the teaching 
    profession.
    ``(b) Termination of Eligibility.--Any teacher preparation program 
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) may not be permitted to accept or enroll any student who 
    receives aid under title IV in the institution's teacher 
    preparation program;
        ``(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; and
        ``(4) shall be reinstated upon demonstration of improved 
    performance, as determined by the State.
    ``(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. 208. 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 reveal personally identifiable information.
    ``(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, 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 or 
secondary school is highly qualified by the deadline, as required under 
section 612(a)(14)(C) of the Individuals with Disabilities Education 
Act, the Secretary shall--
        ``(1) 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, 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 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.
        ``(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 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. 209. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this part 
$300,000,000 for fiscal year 2009 and such sums as may be necessary for 
each of the two succeeding fiscal years.''; and
        (3) by striking part B and inserting the following:

                 ``PART B--ENHANCING TEACHER EDUCATION

    ``SEC. 230. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

        ``Subpart 1--Preparing Teachers for Digital Age Learners

    ``SEC. 231. PROGRAM AUTHORIZED.
    ``(a) Program Authority.--The Secretary is authorized to award 
grants to, or enter into contracts or cooperative agreements with, 
eligible consortia to pay the Federal share of the costs of projects 
to--
        ``(1) serve graduate teacher candidates who are prepared to use 
    modern information, communication, and learning tools to--
            ``(A) improve student learning, assessment, and learning 
        management; and
            ``(B) help students develop learning skills to succeed in 
        higher education and to enter the workforce;
        ``(2) strengthen and develop partnerships among the 
    stakeholders in teacher preparation to transform teacher education 
    and ensure technology-rich teaching and learning environments 
    throughout a teacher candidate's preservice education, including 
    clinical experiences; and
        ``(3) assess the effectiveness of departments, schools, and 
    colleges of education at institutions of higher education in 
    preparing teacher candidates for successful implementation of 
    technology-rich teaching and learning environments, including 
    environments consistent with the principles of universal design for 
    learning, that enable kindergarten through grade 12 students to 
    develop learning skills to succeed in higher education and to enter 
    the workforce.
    ``(b) Amount and Duration.--A grant, contract, or cooperative 
agreement under this subpart--
        ``(1) shall be for not more than $2,000,000;
        ``(2) shall be for a three-year period; and
        ``(3) may be renewed for one additional year.
    ``(c) Non-Federal Share Requirement.--The Federal share of the cost 
of any project funded under this subpart shall not exceed 75 percent. 
The non-Federal share of the cost of such project may be provided in 
cash or in kind, fairly evaluated, including services.
    ``(d) Definition of Eligible Consortium.--In this subpart, the term 
`eligible consortium' means a consortium of members that includes the 
following:
        ``(1) Not less than one institution of higher education that 
    awards baccalaureate or masters degrees and prepares teachers for 
    initial entry into teaching.
        ``(2) Not less than one State educational agency or local 
    educational agency.
        ``(3) A department, school, or college of education at an 
    institution of higher education.
        ``(4) A department, school, or college of arts and sciences at 
    an institution of higher education.
        ``(5) Not less than one entity with the capacity to contribute 
    to the technology-related reform of teacher preparation programs, 
    which may be a professional association, foundation, museum, 
    library, for-profit business, public or private nonprofit 
    organization, community-based organization, or other entity.
    ``SEC. 232. USES OF FUNDS.
    ``(a) In General.--An eligible consortium that receives a grant or 
enters into a contract or cooperative agreement under this subpart 
shall use funds made available under this subpart to carry out a 
project that--
        ``(1) develops long-term partnerships among members of the 
    consortium that are focused on effective teaching with modern 
    digital tools and content that substantially connect preservice 
    preparation of teacher candidates with high-need schools; or
        ``(2) transforms the way departments, schools, and colleges of 
    education teach classroom technology integration, including the 
    principles of universal design, to teacher candidates.
    ``(b) Uses of Funds for Partnership Grants.--In carrying out a 
project under subsection (a)(1), an eligible consortium shall--
        ``(1) provide teacher candidates, early in their preparation, 
    with field experiences with technology in educational settings;
        ``(2) build the skills of teacher candidates to support 
    technology-rich instruction, assessment and learning management in 
    content areas, technology literacy, an understanding of the 
    principles of universal design, and the development of other skills 
    for entering the workforce;
        ``(3) provide professional development in the use of technology 
    for teachers, administrators, and content specialists who 
    participate in field placement;
        ``(4) provide professional development of technology 
    pedagogical skills for faculty of departments, schools, and 
    colleges of education and arts and sciences;
        ``(5) implement strategies for the mentoring of teacher 
    candidates by members of the consortium with respect to technology 
    implementation;
        ``(6) evaluate teacher candidates during the first years of 
    teaching to fully assess outcomes of the project;
        ``(7) build collaborative learning communities for technology 
    integration within the consortium to sustain meaningful 
    applications of technology in the classroom during teacher 
    preparation and early career practice; and
        ``(8) evaluate the effectiveness of the project.
    ``(c) Uses of Funds for Transformation Grants.--In carrying out a 
project under subsection (a)(2), an eligible consortium shall--
        ``(1) redesign curriculum to require collaboration between the 
    department, school, or college of education faculty and the 
    department, school, or college of arts and sciences faculty who 
    teach content or methods courses for training teacher candidates;
        ``(2) collaborate between the department, school, or college of 
    education faculty and the department, school, or college of arts 
    and science faculty and academic content specialists at the local 
    educational agency to educate preservice teachers who can integrate 
    technology and pedagogical skills in content areas;
        ``(3) collaborate between the department, school, or college of 
    education faculty and the department, school, or college of arts 
    and sciences faculty who teach courses to preservice teachers to--
            ``(A) develop and implement a plan for preservice teachers 
        and continuing educators that demonstrates effective 
        instructional strategies and application of such strategies in 
        the use of digital tools to transform the teaching and learning 
        process; and
            ``(B) better reach underrepresented preservice teacher 
        populations with programs that connect such preservice teacher 
        populations with applications of technology;
        ``(4) collaborate among faculty and students to create and 
    disseminate case studies of technology applications in classroom 
    settings with a goal of improving student academic achievement in 
    high-need schools;
        ``(5) provide additional technology resources for preservice 
    teachers to plan and implement technology applications in classroom 
    settings that provide evidence of student learning; and
        ``(6) bring together expertise from departments, schools, or 
    colleges of education, arts and science faculty, and academic 
    content specialists at the local educational agency to share and 
    disseminate technology applications in the classroom through 
    teacher preparation and into early career practice.
    ``SEC. 233. APPLICATION REQUIREMENTS.
    ``To be eligible to receive a grant or enter into a contract or 
cooperative agreement under this subpart, an eligible consortium shall 
submit an application to the Secretary at such time, in such manner, 
and containing such information as the Secretary may require. Such 
application shall include the following:
        ``(1) A description of the project to be carried out with the 
    grant, including how the project will--
            ``(A) develop a long-term partnership focused on effective 
        teaching with modern digital tools and content that 
        substantially connects preservice preparation of teacher 
        candidates with high-need schools; or
            ``(B) transform the way departments, schools, and colleges 
        of education teach classroom technology integration, including 
        the principles of universal design, to teacher candidates.
        ``(2) A demonstration of--
            ``(A) the commitment, including the financial commitment, 
        of each of the members of the consortium for the proposed 
        project; and
            ``(B) the support of the leadership of each organization 
        that is a member of the consortium for the proposed project.
        ``(3) A description of how each member of the consortium will 
    participate in the project.
        ``(4) A description of how the State educational agency or 
    local educational agency will incorporate the project into the 
    agency's technology plan, if such a plan already exists.
        ``(5) A description of how the project will be continued after 
    Federal funds are no longer available under this subpart for the 
    project.
        ``(6) A description of how the project will incorporate--
            ``(A) State teacher technology standards; and
            ``(B) State student technology standards.
        ``(7) A plan for the evaluation of the project, which shall 
    include benchmarks to monitor progress toward specific project 
    objectives.
    ``SEC. 234. EVALUATION.
    ``Not less than ten percent of the funds awarded to an eligible 
consortium to carry out a project under this subpart shall be used to 
evaluate the effectiveness of such project.

    ``Subpart 2--Honorable Augustus F. Hawkins Centers of Excellence

    ``SEC. 241. DEFINITIONS.
    ``In this subpart:
        ``(1) Eligible institution.--The term `eligible institution' 
    means--
            ``(A) an institution of higher education that has a teacher 
        preparation program that is a qualified teacher preparation 
        program and that is--
                ``(i) a part B institution (as defined in section 322);
                ``(ii) a Hispanic-serving institution (as defined in 
            section 502);
                ``(iii) a Tribal College or University (as defined in 
            section 316);
                ``(iv) an Alaska Native-serving institution (as defined 
            in section 317(b));
                ``(v) a Native Hawaiian-serving institution (as defined 
            in section 317(b));
                ``(vi) a Predominantly Black Institution (as defined in 
            section 318);
                ``(vii) an Asian American and Native American Pacific 
            Islander-serving institution (as defined in section 
            320(b)); or
                ``(viii) a Native American-serving, nontribal 
            institution (as defined in section 319);
            ``(B) a consortium of institutions described in 
        subparagraph (A); or
            ``(C) an institution described in subparagraph (A), or a 
        consortium described in subparagraph (B), in partnership with 
        any other institution of higher education, but only if the 
        center of excellence established under section 242 is located 
        at an institution described in subparagraph (A).
        ``(2) 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.
    ``SEC. 242. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.
    ``(a) Program Authorized.--From the amounts appropriated to carry 
out this part, the Secretary is authorized to award competitive grants 
to eligible institutions to establish centers of excellence.
    ``(b) Use of Funds.--Grants provided by the Secretary under this 
subpart shall be used to ensure that current and future teachers are 
highly qualified by carrying out one or more of the following 
activities:
        ``(1) Implementing reforms within teacher preparation programs 
    to ensure that such programs are preparing teachers who are highly 
    qualified, are able to understand scientifically valid research, 
    and are able to use advanced technology effectively in the 
    classroom, including use of instructional techniques to improve 
    student academic achievement, by--
            ``(A) retraining or recruiting faculty; and
            ``(B) designing (or redesigning) teacher preparation 
        programs that--
                ``(i) prepare teachers to serve in low-performing 
            schools and close student achievement gaps, and that are 
            based on rigorous academic content, scientifically valid 
            research (including scientifically based reading research 
            and mathematics research, as it becomes available), and 
            challenging State academic content standards and student 
            academic achievement standards; and
                ``(ii) promote strong teaching skills.
        ``(2) Providing sustained and high-quality preservice clinical 
    experience, including the mentoring of prospective teachers by 
    exemplary teachers, substantially increasing interaction between 
    faculty at institutions of higher education and new and experienced 
    teachers, principals, and other administrators at elementary 
    schools or secondary schools, and providing support, including 
    preparation time, for such interaction.
        ``(3) Developing and implementing initiatives to promote 
    retention of highly qualified teachers and principals, including 
    minority teachers and principals, including programs that provide--
            ``(A) teacher or principal mentoring from exemplary 
        teachers or principals, respectively; or
            ``(B) induction and support for teachers and principals 
        during their first three years of employment as teachers or 
        principals, respectively.
        ``(4) Awarding scholarships based on financial need to help 
    students pay the costs of tuition, room, board, and other expenses 
    of completing a teacher preparation program, not to exceed the cost 
    of attendance.
        ``(5) Disseminating information on effective practices for 
    teacher preparation and successful teacher certification and 
    licensure assessment preparation strategies.
        ``(6) Activities authorized under section 202.
    ``(c) Application.--Any eligible institution desiring a grant under 
this subpart shall submit an application to the Secretary at such a 
time, in such a manner, and accompanied by such information as the 
Secretary may require.
    ``(d) Minimum Grant Amount.--The minimum amount of each grant under 
this subpart shall be $500,000.
    ``(e) Limitation on Administrative Expenses.--An eligible 
institution that receives a grant under this subpart may use not more 
than two percent of the funds provided to administer the grant.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out this subpart.

 ``Subpart 3--Preparing General Education Teachers to More Effectively 
                   Educate Students With Disabilities

    ``SEC. 251. TEACH TO REACH GRANTS.
    ``(a) Authorization of Program.--
        ``(1) In general.--The Secretary is authorized to award grants, 
    on a competitive basis, to eligible partnerships to improve the 
    preparation of general education teacher candidates to ensure that 
    such teacher candidates possess the knowledge and skills necessary 
    to effectively instruct students with disabilities in general 
    education classrooms.
        ``(2) Duration of grants.--A grant under this section shall be 
    awarded for a period of not more than five years.
        ``(3) Non-federal share.--An eligible partnership that receives 
    a grant under this section shall provide not less than 25 percent 
    of the cost of the activities carried out with such grant from non-
    Federal sources, which may be provided in cash or in kind.
    ``(b) Definition of Eligible Partnership.--In this section, the 
term `eligible partnership' means a partnership that--
        ``(1) shall include--
            ``(A) one or more departments or programs at an institution 
        of higher education--
                ``(i) that prepare elementary or secondary general 
            education teachers;
                ``(ii) that have a program of study that leads to an 
            undergraduate degree, a master's degree, or completion of a 
            postbaccalaureate program required for teacher 
            certification; and
                ``(iii) the graduates of which are highly qualified;
            ``(B) a department or program of special education at an 
        institution of higher education;
            ``(C) a department or program at an institution of higher 
        education that provides degrees in core academic subjects; and
            ``(D) a high-need local educational agency; and
        ``(2) may include a department or program of mathematics, earth 
    or physical science, foreign language, or another department at the 
    institution that has a role in preparing teachers.
    ``(c) Activities.--An eligible partnership that receives a grant 
under this section--
        ``(1) shall use the grant funds to--
            ``(A) develop or strengthen an undergraduate, 
        postbaccalaureate, or master's teacher preparation program by 
        integrating special education strategies into the general 
        education curriculum and academic content;
            ``(B) provide teacher candidates participating in the 
        program under subparagraph (A) with skills related to--
                ``(i) response to intervention, positive behavioral 
            interventions and supports, differentiated instruction, and 
            data driven instruction;
                ``(ii) universal design for learning;
                ``(iii) determining and utilizing accommodations for 
            instruction and assessments;
                ``(iv) collaborating with special educators, related 
            services providers, and parents, including participation in 
            individualized education program development and 
            implementation; and
                ``(v) appropriately utilizing technology and assistive 
            technology for students with disabilities; and
            ``(C) provide extensive clinical experience for 
        participants described in subparagraph (B) with mentoring and 
        induction support throughout the program that continues during 
        the first two years of full-time teaching; and
        ``(2) may use grant funds to develop and administer alternate 
    assessments of students with disabilities.
    ``(d) Application.--An eligible partnership seeking a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the Secretary may 
require. Such application shall include--
        ``(1) a self-assessment by the eligible partnership of the 
    existing teacher preparation program at the institution of higher 
    education and needs related to preparing general education teacher 
    candidates to instruct students with disabilities; and
        ``(2) an assessment of the existing personnel needs for general 
    education teachers who instruct students with disabilities, 
    performed by the local educational agency in which most graduates 
    of the teacher preparation program are likely to teach after 
    completion of the program under subsection (c)(1).
    ``(e) Peer Review.--The Secretary shall convene a peer review 
committee to review applications for grants under this section and to 
make recommendations to the Secretary regarding the selection of 
grantees. Members of the peer review committee shall be recognized 
experts in the fields of special education, teacher preparation, and 
general education and shall not be in a position to benefit financially 
from any grants awarded under this section.
    ``(f) Evaluations.--
        ``(1) By the partnership.--
            ``(A) In general.--An eligible partnership receiving a 
        grant under this section shall conduct an evaluation at the end 
        of the grant period to determine--
                ``(i) the effectiveness of the general education 
            teachers who completed a program under subsection (c)(1) 
            with respect to instruction of students with disabilities 
            in general education classrooms; and
                ``(ii) the systemic impact of the activities carried 
            out by such grant on how each institution of higher 
            education that is a member of the partnership prepares 
            teachers for instruction in elementary schools and 
            secondary schools.
            ``(B) Report to the secretary.--Each eligible partnership 
        performing an evaluation under subparagraph (A) shall report 
        the findings of such evaluation to the Secretary.
        ``(2) Report by the secretary.--Not later than 180 days after 
    the last day of the grant period under this section, the Secretary 
    shall make available to Congress and the public the findings of the 
    evaluations submitted under paragraph (1), and information on best 
    practices related to effective instruction of students with 
    disabilities in general education classrooms.

                   ``Subpart 4--Adjunct Teacher Corps

    ``SEC. 255. ADJUNCT TEACHER CORPS.
    ``(a) Purpose.--The purpose of this section is to create 
opportunities for professionals and other individuals with subject 
matter expertise in mathematics, science, or critical foreign languages 
to provide such subject matter expertise to secondary school students 
on an adjunct basis.
    ``(b) Program Authorized.--The Secretary is authorized to award 
grants on a competitive basis to eligible entities to identify, 
recruit, and train qualified individuals with subject matter expertise 
in mathematics, science, or critical foreign languages to serve as 
adjunct content specialists.
    ``(c) Duration of Grants.--The Secretary may award grants under 
this section for a period of not more than five years.
    ``(d) Eligible Entity.--In this section, the term `eligible entity' 
means--
        ``(1) a local educational agency; or
        ``(2) a partnership consisting of a local educational agency, 
    serving as a fiscal agent, and a public or private educational 
    organization or business.
    ``(e) Uses of Funds.--An eligible entity that receives a grant 
under this section is authorized to use such grant to carry out one or 
both of the following activities:
        ``(1) To develop the capacity of the eligible entity to 
    identify, recruit, and train individuals with subject matter 
    expertise in mathematics, science, or critical foreign languages 
    who are not employed in the elementary and secondary education 
    system (including individuals in business and government, and 
    individuals who would participate through distance-learning 
    arrangements) to become adjunct content specialists.
        ``(2) To provide preservice training and on-going professional 
    development to adjunct content specialists.
    ``(f) Applications.--
        ``(1) Application required.--An eligible entity that desires 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.--An application submitted under paragraph (1) 
    shall include--
            ``(A) a description of--
                ``(i) the need for, and expected benefits of using, 
            adjunct content specialists in the schools served by the 
            local educational agency, which may include information on 
            the difficulty the local educational agency faces in 
            recruiting qualified faculty in mathematics, science, and 
            critical foreign language courses;
                ``(ii) measurable objectives for the activities 
            supported by the grant, including the number of adjunct 
            content specialists the eligible entity intends to place in 
            schools and classrooms, and the gains in academic 
            achievement expected as a result of the addition of such 
            specialists;
                ``(iii) how the eligible entity will establish criteria 
            for and recruit the most qualified individuals and public 
            or private organizations and businesses to participate in 
            the activities supported by the grant;
                ``(iv) how the eligible entity will provide preservice 
            training and on-going professional development to adjunct 
            content specialists to ensure that such specialists have 
            the capacity to serve effectively;
                ``(v) how the eligible entity will use funds received 
            under this section, including how the eligible entity will 
            evaluate the success of the activities supported by the 
            grant; and
                ``(vi) how the eligible entity will support and 
            continue the activities supported by the grant after the 
            grant has expired, including how such entity will seek 
            support from other sources, such as State and local 
            government and the private sector; and
            ``(B) an assurance that the use of adjunct content 
        specialists will not result in the displacement or transfer of 
        currently employed teachers nor a reduction in the number of 
        overall teachers in the district.
    ``(g) Priorities.--In awarding grants under this section, the 
Secretary shall give priority to eligible entities that demonstrate in 
the application for such a grant a plan to--
        ``(1) serve the schools served by the local educational agency 
    that have a large number or percentage of students performing below 
    grade level in mathematics, science, or critical foreign language 
    courses;
        ``(2) serve local educational agencies that have a large number 
    or percentage of students from low-income families; and
        ``(3) recruit and train individuals to serve as adjunct content 
    specialists in schools that have an insufficient number of teachers 
    in mathematics, science, or critical foreign languages.
    ``(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 such grant (in cash or in 
kind) to carry out the activities supported by such grant.
    ``(i) Performance Report.--Each eligible entity receiving a grant 
under this section shall prepare and submit to the Secretary a final 
report on the results of the activities supported by such grant, which 
shall contain such information as the Secretary may require, including 
any improvements in student academic achievement as a result of the use 
of adjunct content specialists.
    ``(j) Evaluation.--The Secretary shall evaluate the activities 
supported by grants under this section, including the impact of such 
activities on student academic achievement, and shall report the 
results of such evaluation to the authorizing committees.
    ``(k) Definition.--In this section, the term `adjunct content 
specialist' means an individual who--
        ``(1) meets the requirements of section 9101(23)(B)(ii) of the 
    Elementary and Secondary Education Act of 1965;
        ``(2) has demonstrated expertise in mathematics, science, or a 
    critical foreign language, as determined by the local educational 
    agency; and
        ``(3) is not the primary provider of instructional services to 
    a student, unless the adjunct content specialist is under the 
    direct supervision of a teacher who meets the requirements of 
    section 9101(23) of such Act.

``Subpart 5--Graduate Fellowships to Prepare Faculty in High-Need Areas 
                        at Colleges of Education

    ``SEC. 258. GRADUATE FELLOWSHIPS TO PREPARE FACULTY IN HIGH-NEED 
      AREAS AT COLLEGES OF EDUCATION.
    ``(a) Grants by Secretary.--The Secretary shall make grants to 
eligible institutions to enable such institutions to make graduate 
fellowship awards to qualified individuals in accordance with the 
provisions of this section.
    ``(b) Eligible Institutions.--In this section, the term `eligible 
institution' means an institution of higher education, or a consortium 
of such institutions, that offers a program of postbaccalaureate study 
leading to a doctoral degree.
    ``(c) Applications.--An eligible institution that desires 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 reasonably require.
    ``(d) Types of Fellowships Supported.--
        ``(1) In general.--An eligible institution that receives a 
    grant under this section shall use the grant funds to provide 
    graduate fellowships to individuals who are preparing for the 
    professorate in order to prepare individuals to become highly 
    qualified elementary school and secondary school mathematics and 
    science teachers, special education teachers, and teachers who 
    provide instruction for limited English proficient students.
        ``(2) Types of study.--A graduate fellowship provided under 
    this section shall support an individual in pursuing 
    postbaccalaureate study, which leads to a doctoral degree and may 
    include a master's degree as part of such study, related to teacher 
    preparation and pedagogy in one of the following areas:
            ``(A) Science, technology, engineering, or mathematics, if 
        the individual has completed a master's degree in mathematics 
        or science and is pursuing a doctoral degree in mathematics, 
        science, or education.
            ``(B) Special education.
            ``(C) The instruction of limited English proficient 
        students, including postbaccalaureate study in language 
        instruction educational programs.
    ``(e) Fellowship Terms and Conditions.--
        ``(1) Selection of fellows.--The Secretary shall ensure that an 
    eligible institution that receives a grant under this section--
            ``(A) shall provide graduate fellowship awards to 
        individuals who plan to pursue a career in instruction at an 
        institution of higher education that has a teacher preparation 
        program; and
            ``(B) may not provide a graduate fellowship to an otherwise 
        eligible individual--
                ``(i) during periods in which such individual is 
            enrolled at an institution of higher education unless such 
            individual is maintaining satisfactory academic progress 
            in, and devoting full-time study or research to, the 
            pursuit of the degree for which the fellowship support was 
            provided; or
                ``(ii) if the individual is engaged in gainful 
            employment, other than part-time employment related to 
            teaching, research, or a similar activity determined by the 
            institution to be consistent with and supportive of the 
            individuals's progress toward the degree for which the 
            fellowship support was provided.
        ``(2) Amount of fellowship awards.--
            ``(A) In general.--An eligible institution that receives a 
        grant under this section shall award stipends to individuals 
        who are provided graduate fellowships under this section.
            ``(B) Awards based on need.--A stipend provided under this 
        section shall be in an amount equal to the level of support 
        provided by the National Science Foundation graduate 
        fellowships, except that such stipend shall be adjusted as 
        necessary so as not to exceed the fellowship recipient's 
        demonstrated need, as determined by the institution of higher 
        education where the fellowship recipient is enrolled.
        ``(3) Service requirement.--
            ``(A) Teaching required.--Each individual who receives a 
        graduate fellowship under this section and earns a doctoral 
        degree shall teach for one year at an institution of higher 
        education that has a teacher preparation program for each year 
        of fellowship support received under this section.
            ``(B) Institutional obligation.--Each eligible institution 
        that receives a grant under this section shall provide an 
        assurance to the Secretary that the institution has inquired of 
        and determined the decision of each individual who has received 
        a graduate fellowship to, within three years of receiving a 
        doctoral degree, begin employment at an institution of higher 
        education that has a teacher preparation program, as required 
        by this section.
            ``(C) Agreement required.--Prior to receiving an initial 
        graduate fellowship award, and upon the annual renewal of the 
        graduate fellowship award, an individual selected to receive a 
        graduate fellowship under this section shall sign an agreement 
        with the Secretary agreeing to pursue a career in instruction 
        at an institution of higher education that has a teacher 
        preparation program in accordance with subparagraph (A).
            ``(D) Failure to comply.--If an individual who receives a 
        graduate fellowship award under this section fails to comply 
        with the agreement signed pursuant to subparagraph (C), the sum 
        of the amounts of any graduate fellowship award received by 
        such recipient shall, upon a determination of such a failure, 
        be treated as a Federal Direct Unsubsidized Stafford Loan under 
        part D of title IV, and shall be subject to repayment, together 
        with interest thereon accruing from the date of the fellowship 
        award, in accordance with terms and conditions specified by the 
        Secretary in regulations under this subpart.
            ``(E) Modified service requirement.--The Secretary may 
        waive or modify the service requirement of this paragraph in 
        accordance with regulations promulgated by the Secretary with 
        respect to the criteria to determine the circumstances under 
        which compliance with such service requirement is inequitable 
        or represents a substantial hardship. The Secretary may waive 
        the service requirement if compliance by the fellowship 
        recipient is determined to be inequitable or represent a 
        substantial hardship--
                ``(i) because the individual is permanently and totally 
            disabled at the time of the waiver request; or
                ``(ii) based on documentation presented to the 
            Secretary of substantial economic or personal hardship.
    ``(f) Institutional Support for Fellows.--An eligible institution 
that receives a grant under this section may reserve not more than ten 
percent of the grant amount for academic and career transition support 
for graduate fellowship recipients and for meeting the institutional 
obligation described in subsection (e)(3)(B).
    ``(g) Restriction on Use of Funds.--An eligible institution that 
receives a grant under this section may not use grant funds for general 
operational overhead of the institution.

                      ``PART C--GENERAL PROVISIONS

    ``SEC. 261. 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.
    ``(d) Rule of Construction.--Nothing in this title shall be 
construed to alter or otherwise affect the rights, remedies, and 
procedures afforded to the employees of local educational agencies 
under Federal, State, or local laws (including applicable regulations 
or court orders) or under the terms of collective bargaining 
agreements, memoranda of understanding, or other agreements between 
such employees and their employers.''.

                      TITLE III--INSTITUTIONAL AID

    SEC. 301. PROGRAM PURPOSE.
    Section 311 (20 U.S.C. 1057) is amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by striking ``351'' and inserting 
        ``391''; and
            (B) in paragraph (3)(F), by inserting ``, including 
        services that will assist in the education of special 
        populations'' before the period; and
        (2) in subsection (c)--
            (A) in paragraph (6), by inserting ``, including 
        innovative, customized, instruction courses designed to help 
        retain students and move the students rapidly into core courses 
        and through program completion, which may include remedial 
        education and English language instruction'' before the period;
            (B) by redesignating paragraphs (7) through (12) as 
        paragraphs (8) through (13), respectively;
            (C) by inserting after paragraph (6) the following:
        ``(7) Education or counseling services designed to improve the 
    financial literacy and economic literacy of students or the 
    students' families.'';
            (D) in paragraph (12) (as redesignated by subparagraph 
        (B)), by striking ``distance learning academic instruction 
        capabilities'' and inserting ``distance education 
        technologies''; and
            (E) in the matter preceding subparagraph (A) of paragraph 
        (13) (as redesignated by subparagraph (B)), by striking 
        ``subsection (c)'' and inserting ``subsection (b) and section 
        391''.
    SEC. 302. DEFINITIONS; ELIGIBILITY.
    Section 312 (20 U.S.C. 1058) is amended--
        (1) in subsection (b)(1)(A), by striking ``subsection (c) of 
    this section'' and inserting ``subsection (d)'';
        (2) in subsection (d)(2), by striking ``subdivision'' and 
    inserting ``paragraph'';
        (3) by redesignating subsection (g) as subsection (h); and
        (4) by inserting after subsection (f) the following:
    ``(g) Low-Income Individual.--For the purpose of this part, the 
term `low-income individual' means an individual from a family whose 
taxable income for the preceding year did not exceed 150 percent of an 
amount equal to the poverty level determined by using criteria of 
poverty established by the Bureau of the Census.''.
    SEC. 303. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
      UNIVERSITIES.
    Section 316 (20 U.S.C. 1059c) is amended--
        (1) by striking subsection (b)(3) and inserting the following:
        ``(3) Tribal college or university.--The term `Tribal College 
    or University' means an institution that--
            ``(A) qualifies for funding under the Tribally Controlled 
        Colleges and Universities Assistance Act of 1978 (25 U.S.C. 
        1801 et seq.) or the Navajo Community College Assistance Act of 
        1978 (25 U.S.C. 640a note); or
            ``(B) is cited in section 532 of the Equity in Educational 
        Land-Grant Status Act of 1994 (7 U.S.C. 301 note).'';
        (2) in subsection (c)(2)--
            (A) by striking subparagraph (B) and inserting the 
        following:
            ``(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;'';
            (B) in subparagraph (C), by inserting before the semicolon 
        at the end the following: ``or in tribal governance or tribal 
        public policy'';
            (C) in subparagraph (D), by inserting before the semicolon 
        the following: ``and instruction in tribal governance or tribal 
        public policy'';
            (D) by redesignating subparagraphs (G), (H), (I), (J), (K), 
        and (L) as subparagraphs (H), (I), (J), (K), (L), and (N), 
        respectively;
            (E) by inserting after subparagraph (F) the following:
            ``(G) education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' families;'';
            (F) in subparagraph (L) (as redesignated by subparagraph 
        (D)), by striking ``and'' after the semicolon;
            (G) by inserting after subparagraph (L) (as redesignated by 
        subparagraph (D) and amended by subparagraph (F)) the 
        following:
            ``(M) developing or improving facilities for Internet use 
        or other distance education technologies; and''; and
            (H) in subparagraph (N) (as redesignated by subparagraph 
        (D)), by striking ``subparagraphs (A) through (K)'' and 
        inserting ``subparagraphs (A) through (M)''; and
        (3) by striking subsection (d) and inserting the following:
    ``(d) Application, Plan, and Allocation.--
        ``(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.--
            ``(A) In general.--A Tribal College or University desiring 
        to receive assistance under this section shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may reasonably 
        require.
            ``(B) Streamlined process.--The Secretary shall establish 
        application requirements in such a manner as to simplify and 
        streamline the process for applying for grants under this 
        section.
        ``(3) Awards and allocations to institutions.--
            ``(A) Construction grants.--
                ``(i) In general.--Of the amount appropriated to carry 
            out this section for any fiscal year, the Secretary may 
            reserve 30 percent for the purpose of awarding one-year 
            grants of not less than $1,000,000 to address construction, 
            maintenance, and renovation needs at eligible institutions.
                ``(ii) Preference.--In providing grants under clause 
            (i) for any fiscal year, the Secretary shall give 
            preference to eligible institutions that have not received 
            an award under this section for a previous fiscal year.
            ``(B) Allotment of remaining funds.--
                ``(i) In general.--Except as provided in clause (ii), 
            the Secretary shall distribute the remaining funds 
            appropriated for any fiscal year to each eligible 
            institution as follows:

                    ``(I) 60 percent of the remaining appropriated 
                funds shall be distributed among the eligible Tribal 
                Colleges and Universities on a pro rata basis, based on 
                the respective Indian student counts (as defined in 
                section 2(a) of the Tribally Controlled Colleges and 
                Universities Assistance Act of 1978 (25 U.S.C. 1801(a)) 
                of the Tribal Colleges and Universities.
                    ``(II) The remaining 40 percent shall be 
                distributed in equal shares to the eligible Tribal 
                Colleges and Universities.

                ``(ii) Minimum grant.--The amount distributed to a 
            Tribal College or University under clause (i) shall not be 
            less than $500,000.
        ``(4) Special rules.--
            ``(A) Concurrent funding.--No Tribal College or University 
        that receives funds under this section shall concurrently 
        receive funds under any other provision of this part, part B, 
        or part A of title V.
            ``(B) Exemption.--Section 313(d) shall not apply to 
        institutions that are eligible to receive funds under this 
        section.''.
    SEC. 304. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.
    Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--
        (1) in subparagraph (G), by striking ``and'' after the 
    semicolon;
        (2) in subparagraph (H), by striking the period and inserting 
    ``; and''; and
        (3) by adding at the end the following:
            ``(I) education or counseling services designed to improve 
        the financial literacy and economic literacy of students or the 
        students' families.''.
    SEC. 305. PREDOMINANTLY BLACK INSTITUTIONS.
    (a) In General.--Part A of title III (20 U.S.C. 1057 et seq.) is 
amended by adding at the end the following:
    ``SEC. 318. PREDOMINANTLY BLACK INSTITUTIONS.
    ``(a) Purpose.--It is the purpose of this section to assist 
Predominantly Black Institutions in expanding educational opportunity 
through a program of Federal assistance.
    ``(b) Definitions.--In this section:
        ``(1) Eligible institution.--The term `eligible institution' 
    means an institution of higher education that--
            ``(A) has an enrollment of needy undergraduate students;
            ``(B) has an average educational and general expenditure 
        that is low, per full-time equivalent undergraduate student, in 
        comparison with the average educational and general expenditure 
        per full-time equivalent undergraduate student of institutions 
        that offer similar instruction, except that the Secretary may 
        apply the waiver requirements described in section 392(b) to 
        this subparagraph in the same manner as the Secretary applies 
        the waiver requirements to section 312(b)(1)(B);
            ``(C) has an enrollment of undergraduate students that is 
        not less than 40 percent Black American students;
            ``(D) is legally authorized to provide, and provides, 
        within the State an educational program for which the 
        institution of higher education awards a baccalaureate degree 
        or, in the case of a junior or community college, an 
        associate's degree;
            ``(E) is accredited by a nationally recognized accrediting 
        agency or association determined by the Secretary to be a 
        reliable authority as to the quality of training offered or is, 
        according to such an agency or association, making reasonable 
        progress toward accreditation; and
            ``(F) is not receiving assistance under part B or part A of 
        title V.
        ``(2) Enrollment of needy students.--The term `enrollment of 
    needy students' means the enrollment at an eligible institution 
    with respect to which not less than 50 percent of the undergraduate 
    students enrolled in an academic program leading to a degree--
            ``(A) in the second fiscal year preceding the fiscal year 
        for which the determination is made, were Federal Pell Grant 
        recipients for such year;
            ``(B) come from families that receive benefits under a 
        means-tested Federal benefit program;
            ``(C) attended a public or nonprofit private secondary 
        school that--
                ``(i) is in the school district of a local educational 
            agency that was eligible for assistance under part A of 
            title I of the Elementary and Secondary Education Act of 
            1965 for any year during which the student attended such 
            secondary school; and
                ``(ii) for the purpose of this paragraph and for such 
            year of attendance, was determined by the Secretary 
            (pursuant to regulations and after consultation with the 
            State educational agency of the State in which the school 
            is located) to be a school in which the enrollment of 
            children meeting a measure of poverty under section 
            1113(a)(5) of such Act exceeds 30 percent of the total 
            enrollment of such school; or
            ``(D) are first-generation college students and a majority 
        of such first-generation college students are low-income 
        individuals.
        ``(3) First-generation college student.--The term `first-
    generation college student' has the meaning given the term in 
    section 402A(h).
        ``(4) Low-income individual.--The term `low-income individual' 
    has the meaning given such term in section 402A(h).
        ``(5) Means-tested federal benefit program.--The term `means-
    tested Federal benefit program' means a program of the Federal 
    Government, other than a program under title IV, in which 
    eligibility for the program's benefits, or the amount of such 
    benefits, are determined on the basis of income or resources of the 
    individual or family seeking the benefit.
        ``(6) Predominantly black institution.--The term `Predominantly 
    Black Institution' means an institution of higher education, as 
    defined in section 101(a)--
            ``(A) that is an eligible institution with not less than 
        1,000 undergraduate students;
            ``(B) at which not less than 50 percent of the 
        undergraduate students enrolled at the eligible institution are 
        low-income individuals or first-generation college students; 
        and
            ``(C) at which not less than 50 percent of the 
        undergraduate students are enrolled in an educational program 
        leading to a bachelor's or associate's degree that the eligible 
        institution is licensed to award by the State in which the 
        eligible institution is located.
        ``(7) State.--The term `State' means each of the 50 States and 
    the District of Columbia.
    ``(c) Grant Authority.--
        ``(1) In general.--The Secretary is authorized to award grants, 
    from allotments under subsection (e), to Predominantly Black 
    Institutions to enable the Predominantly Black Institutions to 
    carry out the authorized activities described in subsection (d).
        ``(2) Priority.--In awarding grants under this section the 
    Secretary shall give priority to Predominantly Black Institutions 
    with large numbers or percentages of students described in 
    subsections (b)(1)(A) or (b)(1)(C). The level of priority given to 
    Predominantly Black Institutions with large numbers or percentages 
    of students described in subsection (b)(1)(A) shall be twice the 
    level of priority given to Predominantly Black Institutions with 
    large numbers or percentages of students described in subsection 
    (b)(1)(C).
    ``(d) Authorized Activities.--
        ``(1) Required activities.--Grant funds provided under this 
    section shall be used--
            ``(A) to assist the Predominantly Black Institution to 
        plan, develop, undertake, and implement programs to enhance the 
        institution's capacity to serve more low- and middle-income 
        Black American students;
            ``(B) to expand higher education opportunities for students 
        eligible to participate in programs under title IV by 
        encouraging college preparation and student persistence in 
        secondary school and postsecondary education; and
            ``(C) to strengthen the financial ability of the 
        Predominantly Black Institution to serve the academic needs of 
        the students described in subparagraphs (A) and (B).
        ``(2) Additional activities.--Grant funds provided under this 
    section shall be used for one or more of the following activities:
            ``(A) The activities described in paragraphs (1) through 
        (12) of section 311(c).
            ``(B) Academic instruction in disciplines in which Black 
        Americans are underrepresented.
            ``(C) Establishing or enhancing a program of teacher 
        education designed to qualify students to teach in a public 
        elementary school or secondary school in the State that shall 
        include, as part of such program, preparation for teacher 
        certification or licensure.
            ``(D) Establishing community outreach programs that will 
        encourage elementary school and secondary school students to 
        develop the academic skills and the interest to pursue 
        postsecondary education.
            ``(E) Other activities proposed in the application 
        submitted pursuant to subsection (f) that--
                ``(i) contribute to carrying out the purpose of this 
            section; and
                ``(ii) are approved by the Secretary as part of the 
            review and approval of an application submitted under 
            subsection (f).
        ``(3) Endowment fund.--
            ``(A) In general.--A Predominantly Black 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), a 
        Predominantly Black Institution shall provide matching funds 
        from non-Federal sources, in an amount equal to or greater than 
        the Federal funds used in accordance with subparagraph (A), for 
        the establishment or increase of the endowment fund.
            ``(C) Comparability.--The provisions of part C, regarding 
        the establishment or increase of an endowment fund, that the 
        Secretary determines are not inconsistent with this subsection, 
        shall apply to funds used under subparagraph (A).
        ``(4) Limitation.--Not more than 50 percent of the grant funds 
    provided to a Predominantly Black Institution under this section 
    may be available for the purpose of constructing or maintaining a 
    classroom, library, laboratory, or other instructional facility.
    ``(e) Allotments to Predominantly Black Institutions.--
        ``(1) Federal pell grant basis.--From the amounts appropriated 
    to carry out this section for any fiscal year, the Secretary shall 
    allot to each Predominantly Black Institution having an application 
    approved under subsection (f) a sum that bears the same ratio to 
    one-half of that amount as the number of Federal Pell Grant 
    recipients in attendance at such institution at the end of the 
    academic year preceding the beginning of that fiscal year, bears to 
    the total number of Federal Pell Grant recipients at all such 
    institutions at the end of such academic year.
        ``(2) Graduates basis.--From the amounts appropriated to carry 
    out this section for any fiscal year, the Secretary shall allot to 
    each Predominantly Black Institution having an application approved 
    under subsection (f) a sum that bears the same ratio to one-fourth 
    of that amount as the number of graduates for such academic year at 
    such institution, bears to the total number of graduates for such 
    academic year at all such institutions.
        ``(3) Graduates seeking a higher degree basis.--From the 
    amounts appropriated to carry out this section for any fiscal year, 
    the Secretary shall allot to each Predominantly Black Institution 
    having an application approved under subsection (f) a sum that 
    bears the same ratio to one-fourth of that amount as the percentage 
    of graduates from such institution who are admitted to and in 
    attendance at, not later than two years after graduation with an 
    associate's degree or a baccalaureate degree, a baccalaureate 
    degree-granting institution or a graduate or professional school in 
    a degree program in disciplines in which Black American students 
    are underrepresented, bears to the percentage of such graduates for 
    all such institutions.
        ``(4) Minimum allotment.--
            ``(A) In general.--Notwithstanding paragraphs (1), (2), and 
        (3), the amount allotted to each Predominantly Black 
        Institution under this section may not be less than $250,000.
            ``(B) Insufficient amount.--If the amounts appropriated to 
        carry out this section for a fiscal year are not sufficient to 
        pay the minimum allotment provided under subparagraph (A) for 
        the fiscal year, then the amount of such minimum allotment 
        shall be ratably reduced. If additional sums become available 
        for such fiscal year, such reduced allotment shall be increased 
        on the same basis as the allotment was reduced until the amount 
        allotted equals the minimum allotment required under 
        subparagraph (A).
        ``(5) Reallotment.--The amount of a Predominantly Black 
    Institution's allotment under paragraph (1), (2), (3), or (4) for 
    any fiscal year that the Secretary determines will not be needed 
    for such institution for the period for which such allotment is 
    available, shall be available for reallotment to other 
    Predominantly Black Institutions in proportion to the original 
    allotments to such other institutions under this section for such 
    fiscal year. The Secretary shall reallot such amounts from time to 
    time, on such date and during such period as the Secretary 
    determines appropriate.
    ``(f) Applications.--Each Predominantly Black Institution desiring 
a grant under this section shall submit an application to the Secretary 
at such time, in such manner, and containing or accompanied by such 
information as the Secretary may reasonably require.
    ``(g) Application Review Process.--Section 393 shall not apply to 
applications under this section.
    ``(h) Duration and Carryover.--Any grant funds paid to a 
Predominantly Black Institution under this section that are not 
expended or used for the purposes for which the funds were paid within 
ten years following the date on which the grant was awarded, shall be 
repaid to the Treasury.
    ``(i) Special Rule on Eligibility.--No Predominantly Black 
Institution that receives funds under this section shall concurrently 
receive funds under any other provision of this part, part B, or part A 
of title V.''.
    (b) Conforming Amendment.--Section 312(d) (20 U.S.C. 1058(d)) is 
amended by striking ``For the purpose'' and inserting ``Except as 
provided in section 318(b), for the purpose''.
    SEC. 306. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.
    Part A of title III (20 U.S.C. 1057 et seq.) is amended by adding 
after section 318 (as added by section 305 of this Act) the following:
    ``SEC. 319. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.
    ``(a) Program Authorized.--The Secretary shall provide grants and 
related assistance to Native American-serving, nontribal institutions 
to enable such institutions to improve and expand their capacity to 
serve Native Americans and low-income individuals.
    ``(b) Definitions.--In this section:
        ``(1) Native american.--The term `Native American' means an 
    individual who is of a tribe, people, or culture that is indigenous 
    to the United States.
        ``(2) Native american-serving, nontribal institution.--The term 
    `Native American-serving, nontribal institution' means an 
    institution of higher education, as defined in section 101(a), 
    that, at the time of application--
            ``(A) is an eligible institution under section 312(b);
            ``(B) has an enrollment of undergraduate students that is 
        not less than 10 percent Native American students; and
            ``(C) is not a Tribal College or University (as defined in 
        section 316).
    ``(c) Authorized Activities.--
        ``(1) Types of activities authorized.--Grants awarded under 
    this section shall be used by Native American-serving, nontribal 
    institutions to assist such institutions to plan, develop, 
    undertake, and carry out activities to improve and expand such 
    institutions' capacity to serve Native Americans and low-income 
    individuals.
        ``(2) Examples of authorized activities.--Such programs may 
    include--
            ``(A) the purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, including 
        instructional and research purposes;
            ``(B) renovation and improvement in classroom, library, 
        laboratory, and other instructional facilities;
            ``(C) support of faculty exchanges, and faculty development 
        and faculty fellowships to assist faculty in attaining advanced 
        degrees in the faculty's field of instruction;
            ``(D) curriculum development and academic instruction;
            ``(E) the purchase of library books, periodicals, 
        microfilm, and other educational materials;
            ``(F) funds and administrative management, and acquisition 
        of equipment for use in strengthening funds management;
            ``(G) the joint use of facilities such as laboratories and 
        libraries;
            ``(H) academic tutoring and counseling programs and student 
        support services; and
            ``(I) education or counseling services designed to improve 
        the financial and economic literacy of students or the 
        students' families.
    ``(d) Application Process.--
        ``(1) Institutional eligibility.--A Native American-serving, 
    nontribal institution desiring to receive assistance under this 
    section shall submit to the Secretary such enrollment data as may 
    be necessary to demonstrate that the institution is a Native 
    American-serving, nontribal institution, along with such other 
    information and data as the Secretary may reasonably require.
        ``(2) Applications.--
            ``(A) Authority to submit applications.--Any institution 
        that is determined by the Secretary to be a Native American-
        serving, nontribal institution may submit an application for 
        assistance under this section to the Secretary.
            ``(B) Simplified and streamlined format.--The Secretary 
        shall, to the extent possible, continue to prescribe a 
        simplified and streamlined format for applications under this 
        section that takes into account the limited number of 
        institutions that are eligible for assistance under this 
        section.
            ``(C) Content.--An application submitted under subparagraph 
        (A) shall include--
                ``(i) a five-year plan for improving the assistance 
            provided by the Native American-serving, nontribal 
            institution to Native Americans and low-income individuals; 
            and
                ``(ii) such other information and assurances as the 
            Secretary may reasonably require.
        ``(3) Special rules.--
            ``(A) Eligibility.--No Native American-serving, nontribal 
        institution that receives funds under this section shall 
        concurrently receive funds under any other provision of this 
        part, part B, or part A of title V.
            ``(B) Exemption.--Section 313(d) shall not apply to 
        institutions that are eligible to receive funds under this 
        section.
            ``(C) Distribution.--In awarding grants under this section, 
        the Secretary shall, to the extent possible and consistent with 
        the competitive process under which such grants are awarded, 
        ensure maximum and equitable distribution among all eligible 
        institutions.
            ``(D) Minimum grant amount.--The minimum amount of a grant 
        under this section shall be $200,000.''.
    SEC. 307. ASSISTANCE TO ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
      ISLANDER-SERVING INSTITUTIONS.
    Part A of title III (20 U.S.C. 1057 et seq.) is amended by adding 
after section 319 (as added by section 306 of this Act) the following:
    ``SEC. 320. ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-
      SERVING INSTITUTIONS.
    ``(a) Program Authorized.--The Secretary shall provide grants and 
related assistance to Asian American and Native American Pacific 
Islander-serving institutions to enable such institutions to improve 
and expand their capacity to serve Asian Americans and Native American 
Pacific Islanders and low-income individuals.
    ``(b) Definitions.--In this section:
        ``(1) Asian american.--The term `Asian American' has the 
    meaning given the term `Asian' in the Office of Management and 
    Budget's Standards for Maintaining, Collecting, and Presenting 
    Federal Data on Race and Ethnicity as published on October 30, 1997 
    (62 Fed. Reg. 58789).
        ``(2) Asian american and native american pacific islander-
    serving institution.--The term `Asian American and Native American 
    Pacific Islander-serving institution' means an institution of 
    higher education that--
            ``(A) is an eligible institution under section 312(b); and
            ``(B) at the time of application, has an enrollment of 
        undergraduate students that is not less than 10 percent 
        students who are Asian American or Native American Pacific 
        Islander.
        ``(3) Native american pacific islander.--The term `Native 
    American Pacific Islander' means any descendant of the aboriginal 
    people of any island in the Pacific Ocean that is a territory or 
    possession of the United States.
    ``(c) Authorized Activities.--
        ``(1) Types of activities authorized.--Grants awarded under 
    this section shall be used by Asian American and Native American 
    Pacific Islander-serving institutions to assist such institutions 
    to plan, develop, undertake, and carry out activities to improve 
    and expand such institutions' capacity to serve Asian Americans and 
    Native American Pacific Islanders and low-income individuals.
        ``(2) Examples of authorized activities.--Such programs may 
    include--
            ``(A) purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, including 
        instructional and research purposes;
            ``(B) renovation and improvement in classroom, library, 
        laboratory, and other instructional facilities;
            ``(C) support of faculty exchanges, and faculty development 
        and faculty fellowships to assist in attaining advanced degrees 
        in the faculty's field of instruction;
            ``(D) curriculum development and academic instruction;
            ``(E) purchase of library books, periodicals, microfilm, 
        and other educational materials;
            ``(F) funds and administrative management, and acquisition 
        of equipment for use in strengthening funds management;
            ``(G) joint use of facilities such as laboratories and 
        libraries;
            ``(H) academic tutoring and counseling programs and student 
        support services;
            ``(I) establishing community outreach programs that will 
        encourage elementary school and secondary school students to 
        develop the academic skills and the interest to pursue 
        postsecondary education;
            ``(J) establishing or improving an endowment fund;
            ``(K) academic instruction in disciplines in which Asian 
        Americans and Native American Pacific Islanders are 
        underrepresented;
            ``(L) conducting research and data collection for Asian 
        American and Native American Pacific Islander populations and 
        subpopulations;
            ``(M) establishing partnerships with community-based 
        organizations serving Asian Americans and Native American 
        Pacific Islanders; and
            ``(N) education or counseling services designed to improve 
        the financial and economic literacy of students or the 
        students' families.
    ``(d) Application Process.--
        ``(1) Institutional eligibility.--Each Asian American and 
    Native American Pacific Islander-serving institution desiring to 
    receive assistance under this section shall submit to the Secretary 
    such enrollment data as may be necessary to demonstrate that the 
    institution is an Asian American and Native American Pacific 
    Islander-serving institution as defined in subsection (b), along 
    with such other information and data as the Secretary may 
    reasonably require.
        ``(2) Applications.--Any institution that is determined by the 
    Secretary to be an Asian American and Native American Pacific 
    Islander-serving institution may submit an application for 
    assistance under this section to the Secretary. Such application 
    shall include--
            ``(A) a five-year plan for improving the assistance 
        provided by the Asian American and Native American Pacific 
        Islander-serving institution to Asian American and Native 
        American Pacific Islander students and low-income individuals; 
        and
            ``(B) such other information and assurances as the 
        Secretary may reasonably require.
        ``(3) Special rules.--
            ``(A) Eligibility.--No Asian American and Native American 
        Pacific Islander-serving institution that receives funds under 
        this section shall concurrently receive funds under any other 
        provision of this part, part B, or title V.
            ``(B) Exemption.--Section 313(d) shall not apply to 
        institutions that are eligible to receive funds under this 
        section.
            ``(C) Distribution.--In awarding grants under this section, 
        the Secretary shall--
                ``(i) to the extent possible and consistent with the 
            competitive process under which such grants are awarded, 
            ensure maximum and equitable distribution among all 
            eligible institutions; and
                ``(ii) give priority consideration to institutions for 
            which not less than 10 percent of such institution's Asian 
            American and Native American Pacific Islander students are 
            low-income individuals.''.
    SEC. 308. PART B DEFINITIONS.
    Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting ``, in 
consultation with the Commissioner for Education Statistics'' before 
``and the Commissioner''.
    SEC. 309. GRANTS TO INSTITUTIONS.
    Section 323(a) (20 U.S.C. 1062(a)) is amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``360(a)(2)'' and inserting ``399(a)(2)'';
        (2) by redesignating paragraph (12) as paragraphs (15); and
        (3) by inserting after paragraph (11) the following:
        ``(12) Acquisition of real property in connection with the 
    construction, renovation, or addition to or improvement of campus 
    facilities.
        ``(13) Education or financial information designed to improve 
    the financial literacy and economic literacy of students or the 
    students' families, especially with regard to student indebtedness 
    and student assistance programs under title IV.
        ``(14) Services necessary for the implementation of projects or 
    activities that are described in the grant application and that are 
    approved, in advance, by the Secretary, except that not more than 
    two percent of the grant amount may be used for this purpose.''.
    SEC. 310. ALLOTMENTS.
    (a) Minimum Allotment.--Subsection (d) of section 324 (20 U.S.C. 
1063(d)) is amended to read as follows:
    ``(d) Minimum Allotment.--Notwithstanding subsections (a) through 
(c), and subject to subsection (h), if the amount of an award under 
this section for a part B institution, based on the data provided by 
the part B institution and the formula under subsections (a) through 
(c), would be--
        ``(1) an amount that is greater than $250,000 but less than 
    $500,000, the Secretary shall award the part B institution an 
    allotment in the amount of $500,000; and
        ``(2) an amount that is equal to or less than $250,000, the 
    Secretary shall award the part B institution an allotment in the 
    amount of $250,000.''.
    (b) Conditions for Allotments.--Section 324 (20 U.S.C. 1063) is 
further amended by adding at the end the following new subsection:
    ``(h) Conditions for Allotments.--
        ``(1) Student requirements for allotment.--Notwithstanding any 
    other provision of this section, a part B institution that would 
    otherwise be eligible for funds under this part shall not receive 
    an allotment under this part for a fiscal year, including the 
    minimum allotment under subsection (d), if the part B institution, 
    in the academic year preceding such fiscal year--
            ``(A) did not have any enrolled students who were Pell 
        Grant recipients;
            ``(B) did not graduate any students; or
            ``(C) where appropriate, did not have any students who, 
        within 5 years of graduation from the part B institution, were 
        admitted to and in attendance at a graduate or professional 
        school in a degree program in disciplines in which Blacks are 
        underrepresented.
        ``(2) Data requirements for allotments.--Notwithstanding any 
    other provision of this section, a part B institution shall not 
    receive an allotment under this part for a fiscal year, including 
    the minimum allotment under subsection (d), unless the institution 
    provides the Secretary with the data required by the Secretary and 
    for purposes of the formula described in subsections (a) through 
    (c), including--
            ``(A) the number of Pell Grant recipients enrolled in the 
        part B institution in the academic year preceding such fiscal 
        year;
            ``(B) the number of students who earned an associate or 
        baccalaureate degree from the part B institution in the 
        academic year preceding such fiscal year; and
            ``(C) where appropriate, the percentage of students who, 
        within 5 years of graduation from the part B institution, were 
        admitted to and in attendance at a graduate or professional 
        school in a degree program in disciplines in which Blacks are 
        underrepresented in the academic year preceding such fiscal 
        year.''.
    SEC. 311. PROFESSIONAL OR GRADUATE INSTITUTIONS.
    (a) Duration of Grant.--Section 326(b) (20 U.S.C. 1063b(b)) is 
amended by adding at the end the following: ``Any funds awarded for 
such five-year grant period that are obligated during such five-year 
period may be expended during the 10-year period beginning on the first 
day of such five-year period.''.
    (b) Authorized Activities.--Section 326(c) (20 U.S.C. 1063b(c)) is 
amended--
        (1) in paragraph (5), by striking ``establish or improve'' and 
    inserting ``establishing or improving'';
        (2) in paragraph (6)--
            (A) by striking ``assist'' and inserting ``assisting''; and
            (B) by striking ``and'' after the semicolon;
        (3) by striking the period at the end of paragraph (7) and 
    inserting a semicolon; and
        (4) by adding at the end the following:
        ``(8) acquisition of real property that is adjacent to the 
    campus in connection with the construction, renovation, or addition 
    to or improvement of campus facilities;
        ``(9) education or financial information designed to improve 
    the financial literacy and economic literacy of students or the 
    students' families, especially with regard to student indebtedness 
    and student assistance programs under title IV;
        ``(10) services necessary for the implementation of projects or 
    activities that are described in the grant application and that are 
    approved, in advance, by the Secretary, except that not more than 
    two percent of the grant amount may be used for this purpose;
        ``(11) tutoring, counseling, and student service programs 
    designed to improve academic success; and
        ``(12) other activities proposed in the application submitted 
    under subsection (d) 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.''.
    (c) Eligibility.--
        (1) In general.--Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) is 
    amended--
            (A) in the matter preceding subparagraph (A), by inserting 
        a colon after ``the following'';
            (B) in subparagraph (Q), by striking ``and'' at the end;
            (C) in subparagraph (R), by striking the period at the end 
        and inserting a semicolon; and
            (D) by adding at the end the following:
            ``(S) Alabama State University qualified graduate programs;
            ``(T) Prairie View A&M University qualified graduate 
        programs;
            ``(U) Delaware State University qualified graduate 
        programs;
            ``(V) Langston University qualified graduate programs;
            ``(W) Bowie State University qualified graduate programs; 
        and
            ``(X) University of the District of Columbia David A. 
        Clarke School of Law.''.
        (2) Conforming amendment.--Section 326(e)(3) (20 U.S.C. 
    1063b(e)(3)) is amended--
            (A) by striking ``1998'' and inserting ``2008''; and
            (B) by striking ``(Q) and (R)'' and inserting ``(S) through 
        (X)''.
        (3) Additional eligibility changes.--Section 326(e)(2)(A) (20 
    U.S.C. 1063b(e)(2)(A)) is amended--
            (A) by inserting ``in law or'' after ``instruction''; and
            (B) by striking ``mathematics, or'' and inserting 
        ``mathematics, psychometrics, or''.
        (4) One grant per institution.--Section 326(e)(4) (20 U.S.C. 
    1063b(e)(4)) is amended by striking ``or university system''.
    (d) Funding Rule.--Section 326(f) (20 U.S.C. 1063b(f)) is amended--
        (1) in paragraph (1)--
            (A) by striking ``$26,600,000'' and inserting 
        ``$56,900,000''; 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 ``$56,900,000, but not in excess of 
        $62,900,000''; and
            (B) by striking ``subparagraphs (Q) and (R)'' and inserting 
        ``subparagraphs (S) through (X)''; and
        (3) in the matter preceding subparagraph (A) of paragraph (3)--
            (A) by striking ``$28,600,000'' and inserting 
        ``$62,900,000''; and
            (B) by striking ``(R)'' and inserting ``(X)''.
    (e) Hold Harmless Rule.--Section 326(g) (20 U.S.C. 1063(g)) is 
amended by striking ``1998'' each place it appears and inserting 
``2008''.
    (f) Interaction With Other Grant Programs.--Section 326 (as amended 
by this section) (20 U.S.C. 1063) is further amended by adding at the 
end the following:
    ``(h) Interaction With Other Grant Programs.--No institution that 
is eligible for and receives an award under section 512, 723, or 724 
for a fiscal year shall be eligible to apply for a grant, or receive 
grant funds, under this section for the same fiscal year.''.
    SEC. 312. UNEXPENDED FUNDS.
    Section 327(b) (20 U.S.C. 1063c(b)) is amended to read as follows:
    ``(b) Use of Unexpended Funds.--Any funds paid to an institution 
and not expended or used for the purposes for which the funds were paid 
during the five-year period following the date of the initial grant 
award, may be carried over and expended during the succeeding five-year 
period, if such funds were obligated for a purpose for which the funds 
were paid during the five-year period following the date of the initial 
grant award.''.
    SEC. 313. ENDOWMENT CHALLENGE GRANTS.
    (a) Amounts.--Section 331(b) (20 U.S.C. 1065(b)) is amended--
        (1) in paragraph (2)(B)(i), by striking ``$500,000'' and 
    inserting ``$1,000,000''; and
        (2) in paragraph (5), by striking ``$50,000'' and inserting 
    ``$100,000''.
    (b) Technical Assistance.--Section 331 (20 U.S.C. 1065) is further 
amended by adding at the end the following:
    ``(i) Technical Assistance.--The Secretary, directly or by grant or 
contract, may provide technical assistance to eligible institutions to 
prepare the institutions to qualify, apply for, and maintain a grant, 
under this section.''.
    SEC. 314. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL 
      FINANCING.
    (a) Definitions.--Section 342 (20 U.S.C. 1066a) is amended--
        (1) in paragraph (5)(G), by striking ``by a nationally 
    recognized accrediting agency or association'' and inserting ``by 
    an accrediting agency or association recognized by the Secretary 
    under subpart 2 of part H of title IV''; and
        (2) in paragraph (8), by inserting ``capital project'' after 
    ``issuing taxable''.
    (b) Federal Insurance for Bonds.--Section 343(b) (20 U.S.C. 
1066b(b)) is amended--
        (1) in paragraph (8)(B)(ii)--
            (A) by striking ``10'' and inserting ``5''; and
            (B) by inserting ``within 120 days'' after ``loan 
        proceeds'';
        (2) in paragraph (10), by striking ``and'' after the semicolon;
        (3) in paragraph (11), by striking the period at the end and 
    inserting ``; and''; and
        (4) by adding at the end the following:
        ``(12) limit loan collateralization, with respect to any loan 
    made under this part, to 100 percent of the loan amount, except as 
    otherwise required by the Secretary.''.
    (c) Limitations on Federal Insurance for Bonds Issued by the 
Designated Bonding Authority.--Section 344(a) (20 U.S.C. 1066c(a)) is 
amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``$375,000,000'' and inserting ``$1,100,000,000'';
        (2) in paragraph (1), by striking ``$250,000,000'' and 
    inserting ``$733,333,333''; and
        (3) in paragraph (2), by striking ``$125,000,000'' and 
    inserting ``$366,666,667''.
    (d) Authority of the Secretary.--Section 345 (20 U.S.C. 1066d) is 
amended--
        (1) in paragraph (1), by striking ``enactment of the Higher 
    Education Amendments of 1992,'' and inserting ``the date of 
    enactment of the Higher Education Opportunity Act,'';
        (2) by redesignating paragraphs (2) through (7) as paragraphs 
    (4) through (9), respectively;
        (3) by inserting after paragraph (1) the following:
        ``(2) shall ensure that--
            ``(A) the selection process for the designated bonding 
        authority is conducted on a competitive basis; and
            ``(B) the evaluation and selection process is transparent;
        ``(3) shall--
            ``(A) review the performance of the designated bonding 
        authority after the third year of the insurance agreement; and
            ``(B) following the review described in subparagraph (A), 
        implement a revised competitive selection process, if 
        determined necessary by the Secretary in consultation with the 
        Advisory Board established pursuant to section 347;'';
        (4) in paragraph (8) (as redesignated by paragraph (2)), by 
    striking ``and'' after the semicolon;
        (5) in paragraph (9) (as redesignated by paragraph (2)), by 
    striking the period at the end and inserting ``; and''; and
        (6) by adding at the end the following:
        ``(10) not later than 120 days after the date of enactment of 
    the Higher Education Opportunity Act, shall submit to the 
    authorizing committees a report on the progress of the Department 
    in implementing the recommendations made by the Government 
    Accountability Office in October 2006 for improving the 
    Historically Black College and Universities Capital Financing 
    Program.''.
    (e) HBCU Capital Financing Advisory Board.--Section 347 (20 U.S.C. 
1066f) is amended--
        (1) in subsection (b)(1)--
            (A) by striking out ``9 members'' and inserting ``11 
        members'';
            (B) in subparagraph (C), by striking ``Two'' and inserting 
        ``Three''; and
            (C) by adding at the end the following:
            ``(G) The president of the Thurgood Marshall College Fund, 
        or the designee of the president.''; and
        (2) by adding at the end the following:
    ``(c) Additional Recommendations From Advisory Board.--
        ``(1) In general.--In addition to the responsibilities of the 
    Advisory Board described in subsection (a), the Advisory Board 
    shall advise the Secretary and the authorizing committees 
    regarding--
            ``(A) the fiscal status and strategic financial condition 
        of not less than ten historically Black colleges and 
        universities that have--
                ``(i) obtained construction financing through the 
            program under this part and seek additional financing or 
            refinancing under such program; or
                ``(ii) applied for construction financing through the 
            program under this part but have not received financing 
            under such program; and
            ``(B) the feasibility of reducing borrowing costs 
        associated with the program under this part, including reducing 
        interest rates.
        ``(2) Report.--Not later than six months after the date of 
    enactment of the Higher Education Opportunity Act, the Advisory 
    Board shall prepare and submit a report to the authorizing 
    committees regarding the historically Black colleges and 
    universities described in paragraph (1)(A) that includes 
    administrative and legislative recommendations for addressing the 
    issues related to construction financing facing such historically 
    Black colleges and universities.''.
    SEC. 315. PROGRAMS IN STEM FIELDS.
    (a) YES Partnerships; Entry Into STEM Fields.--Part E of title III 
(20 U.S.C. 1067 et seq.) is amended--
        (1) by redesignating subpart 2 as subpart 3; and
        (2) by inserting after subpart 1 the following new subpart:

                  ``Subpart 2--Programs in STEM Fields

    ``SEC. 355. YES PARTNERSHIPS GRANT PROGRAM.
    ``(a) Grant Program Authorized.--Subject to the availability of 
appropriations to carry out this subpart, the Secretary shall make 
grants to eligible partnerships (as described in subsection (f)) to 
support the engagement of underrepresented minority youth and youth who 
are low-income individuals (as such term is defined in section 302) in 
science, technology, engineering, and mathematics through outreach and 
hands-on, experiential-based learning projects that encourage students 
in kindergarten through grade 12 who are underrepresented minority 
youth or low-income individuals to pursue careers in science, 
technology, engineering, and mathematics.
    ``(b) Minimum Grant Amount.--A grant awarded to a partnership under 
this subpart shall be for an amount that is not less than $500,000.
    ``(c) Duration.--A grant awarded under this subpart shall be for a 
period of five years.
    ``(d) Non-Federal Matching Share Required.--A partnership receiving 
a grant under this subpart shall provide, from non-Federal sources, in 
cash or in-kind, an amount equal to 50 percent of the costs of the 
project supported by such grant.
    ``(e) Distribution of Grants.--In awarding grants under this 
subpart, the Secretary shall ensure that, to the maximum extent 
practicable, the projects funded under this subpart are located in 
diverse geographic regions of the United States.
    ``(f) Eligible Partnerships.--Notwithstanding the general 
eligibility provision in section 361, eligibility to receive grants 
under this subpart is limited to partnerships described in paragraph 
(5) of such section.
    ``SEC. 356. PROMOTION OF ENTRY INTO STEM FIELDS.
    ``(a) Authority To Contract, Subject to Appropriations.--The 
Secretary is authorized to enter into a contract with a firm with a 
demonstrated record of success in advertising to implement a campaign 
to expand the population of qualified individuals in science, 
technology, engineering, and mathematics fields (referred to in this 
section as `STEM fields') by encouraging young Americans to enter such 
fields.
    ``(b) Design of Campaign.--The campaign under this section shall be 
designed to enhance the image of education and professions in the STEM 
fields and promote participation in the STEM fields, and may include--
        ``(1) monitoring trends in youths' attitudes toward pursuing 
    education and professions in the STEM fields and their propensity 
    toward entering the STEM fields;
        ``(2) determining what factors contribute to encouraging and 
    discouraging Americans from pursuing study in STEM fields and 
    entering the STEM fields professionally;
        ``(3) determining what specific factors limit the participation 
    of groups currently underrepresented in STEM fields, including 
    Latinos, African-Americans, and women; and
        ``(4) drawing from the market research performed under this 
    section and implementing an advertising campaign to encourage young 
    Americans to take up studies in STEM fields, beginning at an early 
    age.
    ``(c) Required Components.--The campaign under this section shall--
        ``(1) include components that focus tailored messages on 
    appropriate age groups, starting with elementary school students; 
    and
        ``(2) link participation in the STEM fields to the concept of 
    service to one's country, so that young people will be encouraged 
    to enter the STEM fields in order fulfill the obligation to be of 
    service to their country.
    ``(d) Priority.--The campaign under this section shall hold as a 
high priority making specific appeals to Hispanic Americans, African 
Americans, Native Americans, students with disabilities, and women, who 
are currently underrepresented in the STEM fields, in order to increase 
their numbers in the STEM fields, and shall tailor recruitment efforts 
to each specific group.
    ``(e) Use of Variety of Media.--The campaign under this section 
shall make use of a variety of media, with an emphasis on television 
advertising, to reach its intended audience.
    ``(f) Teaching.--The campaign under this section shall include a 
narrowly focused effort to attract current professionals in the STEM 
fields, through advertising in mediums likely to reach that specific 
group, into teaching in a STEM field in elementary schools and 
secondary schools.
    ``SEC. 357. EVALUATION AND ACCOUNTABILITY PLAN.
    ``The Secretary shall develop an evaluation and accountability plan 
for projects funded under this subpart. Such plan shall include, if the 
Secretary determines that it is practical, an objective measure of the 
impact of such projects, such as a measure of whether underrepresented 
minority student enrollment in courses related to science, technology, 
engineering, and mathematics increases at the secondary and 
postsecondary levels.''.
    (b) Eligibility for Grants.--Section 361 (20 U.S.C. 1067g) is 
amended--
        (1) by striking ``or'' at the end of paragraph (3)(B);
        (2) in paragraph (4)--
            (A) in subparagraph (A), by striking ``institutions of 
        higher education'' and inserting ``public and private nonprofit 
        institutions of higher education'';
            (B) in subparagraph (C), by inserting before the semicolon 
        the following: ``, the Department of Defense, or the National 
        Institutes of Health'';
            (C) by striking subparagraph (D) and inserting the 
        following:
            ``(D) relevant offices of the National Aeronautics and 
        Space Administration, National Oceanic and Atmospheric 
        Administration, National Science Foundation, and National 
        Institute of Standards and Technology;'';
            (D) by striking the period at the end of subparagraph (E) 
        and inserting ``; or''; and
            (E) by adding at the end the following:
            ``(F) institutions of higher education that have State-
        sponsored centers for research in science, technology, 
        engineering, and mathematics; or''; and
        (3) by adding at the end the following:
        ``(5) only with respect to grants under subpart 2, partnerships 
    of organizations, the membership of which shall include--
            ``(A) at least one institution of higher education eligible 
        for assistance under this title or title V;
            ``(B) at least one high-need local educational agency (as 
        defined in section 200); and
            ``(C) at least two community organizations or entities, 
        such as businesses, professional associations, community-based 
        organizations, philanthropic organizations, or State 
        agencies.''.
    SEC. 316. INVESTING IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES 
      AND OTHER MINORITY-SERVING INSTITUTIONS.
    (a) Redesignation and Relocation.--The Act (20 U.S.C. 1001 et seq.) 
is further amended--
        (1) by redesignating part F of title III as part G of title 
    III;
        (2) by redesignating part J of title IV (as added by section 
    802 of the College Cost Reduction and Access Act) as part F of 
    title III, and moving such part so that such part follows part E of 
    title III; and
        (3) by redesignating section 499A (as added by section 802 of 
    such Act) as section 371.
    (b) Conforming Amendments.--Section 371 (as redesignated by 
subsection (a)(3)) is amended--
        (1) in subsection (b)(2)(C)(i), by striking ``title III'' each 
    place the term appears and inserting ``this title''; and
        (2) in subsection (c)(9)(F), by striking ``title III'' and 
    inserting ``this title''.
    (c) Availability of Funds.--Paragraph (1) of section 371(b) (as 
redesignated by subsection (a)(3)) is amended to read as follows:
        ``(1) In general.--
            ``(A) Provision of funds.--There shall be available to the 
        Secretary to carry out this section, from funds in the Treasury 
        not otherwise appropriated, $255,000,000 for each of the fiscal 
        years 2008 and 2009. The authority to award grants under this 
        section shall expire at the end of fiscal year 2009.
            ``(B) Availability.--Funds made available under 
        subparagraph (A) for a fiscal year shall remain available for 
        the next succeeding fiscal year.''.
    SEC. 317. TECHNICAL ASSISTANCE.
    Section 391 (20 U.S.C. 1068) is amended by adding at the end the 
following:
    ``(e) Technical Assistance.--The Secretary, directly or by grant or 
contract, may provide technical assistance to eligible institutions to 
prepare the institutions to qualify, apply for, and maintain a grant, 
under this title.''.
    SEC. 318. WAIVER AUTHORITY.
    Section 392 (20 U.S.C. 1068a) is amended by adding at the end the 
following:
    ``(c) Waiver Authority With Respect to Institutions Located in an 
Area Affected by a Gulf Hurricane Disaster.--
        ``(1) Waiver authority.--Notwithstanding any other provision of 
    law, unless enacted with specific reference to this section, for 
    any affected institution that was receiving assistance under this 
    title at the time of a Gulf hurricane disaster, the Secretary 
    shall, for each of the fiscal years 2009 through 2011 (and may, for 
    each of the fiscal years 2012 and 2013)--
            ``(A) waive--
                ``(i) the eligibility data requirements set forth in 
            section 391(d);
                ``(ii) the wait-out period set forth in section 313(d);
                ``(iii) the allotment requirements under section 324; 
            and
                ``(iv) the use of the funding formula developed 
            pursuant to section 326(f)(3);
            ``(B) waive or modify any statutory or regulatory provision 
        to ensure that affected institutions that were receiving 
        assistance under this title at the time of a Gulf hurricane 
        disaster are not adversely affected by any formula calculation 
        for fiscal year 2009 or for any of the four succeeding fiscal 
        years, as necessary; and
            ``(C) make available to each affected institution an amount 
        that is not less than the amount made available to such 
        institution under this title for fiscal year 2006, except that 
        for any fiscal year for which the funds appropriated for 
        payments under this title are less than the appropriated level 
        for fiscal year 2006, the amount made available to such 
        institutions shall be ratably reduced among the institutions 
        receiving funds under this title.
        ``(2) Definitions.--In this subsection:
            ``(A) Affected institution.--The term `affected 
        institution' means an institution of higher education that--
                ``(i) is--

                    ``(I) a part A institution (which term shall have 
                the meaning given the term `eligible institution' under 
                section 312(b)); or
                    ``(II) a part B institution, as such term is 
                defined in section 322(2), or as identified in section 
                326(e);

                ``(ii) is located in an area affected by a Gulf 
            hurricane disaster; and
                ``(iii) is able to demonstrate that, as a result of the 
            impact of a Gulf hurricane disaster, the institution--

                    ``(I) incurred physical damage;
                    ``(II) has pursued collateral source compensation 
                from insurance, the Federal Emergency Management 
                Agency, and the Small Business Administration, as 
                appropriate; and
                    ``(III) was not able to fully reopen in existing 
                facilities or to fully reopen to the pre-hurricane 
                enrollment levels during the 30-day period beginning on 
                August 29, 2005.

            ``(B) Area affected by a gulf hurricane disaster; gulf 
        hurricane disaster.--The terms `area affected by a Gulf 
        hurricane disaster' and `Gulf hurricane disaster' have the 
        meanings given such terms in section 209 of the Higher 
        Education Hurricane Relief Act of 2005 (Public Law 109-148, 119 
        Stat. 2809).''.
    SEC. 319. AUTHORIZATION OF APPROPRIATIONS.
    Section 399(a) (20 U.S.C. 1068h(a)) is amended to read as follows:
    ``(a) Authorizations.--
        ``(1) Part a.--(A) There are authorized to be appropriated to 
    carry out part A (other than sections 316 through 320), 
    $135,000,000 for fiscal year 2009, and such sums as may be 
    necessary for each of the five succeeding fiscal years.
        ``(B) There are authorized to be appropriated to carry out 
    section 316, $30,000,000 for fiscal year 2009, and such sums as may 
    be necessary for each of the five succeeding fiscal years.
        ``(C) There are authorized to be appropriated to carry out 
    section 317, $15,000,000 for fiscal year 2009, and such sums as may 
    be necessary for each of the five succeeding fiscal years.
        ``(D) There are authorized to be appropriated to carry out 
    section 318, $75,000,000 for fiscal year 2009 and each of the five 
    succeeding fiscal years.
        ``(E) There are authorized to be appropriated to carry out 
    section 319, $25,000,000 for fiscal year 2009, and such sums as may 
    be necessary for each of the five succeeding fiscal years.
        ``(F) There are authorized to be appropriated to carry out 
    section 320, $30,000,000 for fiscal year 2009, and such sums as may 
    be necessary for each of the five succeeding fiscal years.
        ``(2) Part b.--(A) There are authorized to be appropriated to 
    carry out part B (other than section 326), $375,000,000 for fiscal 
    year 2009, and such sums as may be necessary for each of the five 
    succeeding fiscal years.
        ``(B) There are authorized to be appropriated to carry out 
    section 326, $125,000,000 for fiscal year 2009, and such sums as 
    may be necessary for each of the five succeeding fiscal years.
        ``(3) Part c.--There are authorized to be appropriated to carry 
    out part C, $10,000,000 for fiscal year 2009, and such sums as may 
    be necessary for each of the five succeeding fiscal years.
        ``(4) Part d.--(A) There are authorized to be appropriated to 
    carry out part D (other than section 345(9), but including section 
    347), $185,000 for fiscal year 2009, and such sums as may be 
    necessary for each of the five succeeding fiscal years.
        ``(B) There are authorized to be appropriated to carry out 
    section 345(9) such sums as may be necessary for fiscal year 2009 
    and each of the five succeeding fiscal years.
        ``(5) Part e.--(A) There are authorized to be appropriated to 
    carry out subpart 1 of part E, $12,000,000 for fiscal year 2009, 
    and such sums as may be necessary for each of the five succeeding 
    fiscal years.
        ``(B) There are authorized to be appropriated to carry out 
    subpart 2 of part E, such sums as may be necessary for fiscal year 
    2009 and each of the five succeeding fiscal years.''.
    SEC. 320. TECHNICAL CORRECTIONS.
    Title III (20 U.S.C. 1051 et seq.) is further amended--
        (1) in section 342(5) (20 U.S.C. 1066a(5))--
            (A) in the matter preceding subparagraph (A), by inserting 
        a comma after ``344(b)''; and
            (B) in subparagraph (C), by striking ``equipment 
        technology,,'' and inserting ``equipment, technology,'';
        (2) in section 343(e) (20 U.S.C. 1066b(e)), by inserting ``Sale 
    of Qualified Bonds.--'' before ``Notwithstanding'';
        (3) in the matter preceding clause (i) of section 365(9)(A) (20 
    U.S.C. 1067k(9)(A)), by striking ``support'' and inserting 
    ``supports'';
        (4) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
    striking ``subparagraph (E)'' and inserting ``subparagraph (D)'';
        (5) in the matter preceding subparagraph (A) of section 
    392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking ``eligible 
    institutions under part A institutions'' and inserting ``eligible 
    institutions under part A''; and
        (6) in the matter preceding paragraph (1) of section 396 (20 
    U.S.C. 1068e), by striking ``360'' and inserting ``399''.

                      TITLE IV--STUDENT ASSISTANCE

  PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER 
                               EDUCATION

    SEC. 401. FEDERAL PELL GRANTS.
    (a) Authorized Maximums.--
        (1) Amendments.--Section 401(b) (20 U.S.C. 1070a(b)) is 
    amended--
            (A) by amending paragraph (2)(A) to read as follows:
    ``(2)(A) The amount of the Federal Pell Grant for a student 
eligible under this part shall be--
        ``(i) $6,000 for academic year 2009-2010;
        ``(ii) $6,400 for academic year 2010-2011;
        ``(iii) $6,800 for academic year 2011-2012;
        ``(iv) $7,200 for academic year 2012-2013;
        ``(v) $7,600 for academic year 2013-2014; and
        ``(vi) $8,000 for academic year 2014-2015,
less an amount equal to the amount determined to be the expected family 
contribution with respect to that student for that year.'';
            (B) by designating the paragraphs following paragraph (2), 
        in the order in which such paragraphs appear, as paragraphs (3) 
        through (8);
            (C) in paragraph (4) (as designated by subparagraph (B)), 
        by striking ``$400, except'' and all that follows through the 
        period and inserting ``ten percent of the maximum basic grant 
        level specified in the appropriate appropriation Act for such 
        academic year, except that a student who is eligible for a 
        Federal Pell Grant in an amount that is equal to or greater 
        than five percent of such level but less than ten percent of 
        such level shall be awarded a Federal Pell grant in the amount 
        of ten percent of such level.'';
            (D) by striking paragraph (5) (as designated by 
        subparagraph (B)) and inserting the following:
        ``(5)(A) The Secretary shall award a student not more than two 
    Federal Pell Grants during a single award year to permit such 
    student to accelerate the student's progress toward a degree or 
    certificate if the student is enrolled--
            ``(i) on at least a half-time basis for a period of more 
        than one academic year, or more than two semesters or an 
        equivalent period of time, during a single award year; and
            ``(ii) in a program of instruction at an institution of 
        higher education for which the institution awards an associate 
        or baccalaureate degree or a certificate.
        ``(B) In the case of a student receiving more than one Federal 
    Pell Grant in a single award year under subparagraph (A), the total 
    amount of Federal Pell Grants awarded to such student for the award 
    year may exceed the maximum basic grant level specified in the 
    appropriate appropriations Act for such award year.'';
            (E) in paragraph (7) (as designated by subparagraph (B)), 
        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)''; and
            (F) in paragraph (8) (as designated by subparagraph (B))--
                (i) by amending subparagraph (D) to read as follows:
            ``(D) Program requirements and operations otherwise 
        unaffected.--Except as provided in subparagraphs (B) and (C), 
        nothing in this paragraph shall be construed to alter the 
        requirements and operations of the Federal Pell Grant Program 
        as authorized under this section, or authorize the imposition 
        of additional requirements or operations for the determination 
        and allocation of Federal Pell Grants under this section.''; 
        and
                (ii) by amending subparagraph (F) to read as follows:
            ``(F) Availability of funds.--The amounts made available by 
        subparagraph (A) for any fiscal year shall be available 
        beginning on October 1 of that fiscal year, and shall remain 
        available through September 30 of the succeeding fiscal 
        year.''.
        (2) Effective date.--
            (A) In general.--Except as provided in subparagraph (B), 
        the amendments made by paragraph (1) shall take effect on July 
        1, 2009.
            (B) Special rule.--The amendments made by subparagraph (F) 
        of paragraph (1) shall take effect on the date of enactment of 
        this Act.
    (b) Maximum Duration of Eligibility.--Section 401(c) (20 U.S.C. 
1070a(c)) is amended by adding at the end the following new paragraph:
    ``(5) The period during which a student may receive Federal Pell 
Grants shall not exceed 18 semesters, or the equivalent of 18 
semesters, as determined by the Secretary by regulation. Such 
regulations shall provide, with respect to a student who received a 
Federal Pell Grant for a term but was enrolled at a fraction of full-
time, that only that same fraction of such semester or equivalent shall 
count towards such duration limits. The provisions of this paragraph 
shall apply only to a student who receives a Federal Pell Grant for the 
first time on or after July 1, 2008.''.
    (c) Calculation of Federal Pell Grant Eligibility.--
        (1) Amendment.--Section 401(f) (20 U.S.C. 1070a(f)) is amended 
    by adding at the end the following new paragraph:
    ``(4)(A) Notwithstanding paragraph (1) or any other provision of 
this section, the expected family contribution of each student 
described in subparagraph (B) shall be deemed to be zero for the period 
during which each such student is eligible to receive a Federal Pell 
Grant under subsection (c).
    ``(B) Subparagraph (A) shall apply to any student at an institution 
of higher education--
        ``(i) whose parent or guardian was a member of the Armed Forces 
    of the United States who died as a result of performing military 
    service in Iraq or Afghanistan after September 11, 2001; and
        ``(ii) who was less than 24 years of age, or was enrolled as a 
    full-time or part-time student at an institution of higher 
    education, as of the time of the parent or guardian's death.
    ``(C) Notwithstanding any other provision of law, the Secretary of 
Veterans Affairs and the Secretary of Defense, as appropriate, shall 
provide the Secretary of Education with information necessary to 
determine which students meet the requirements of subparagraph (B).''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    take effect on July 1, 2009.
    SEC. 402. ACADEMIC COMPETITIVENESS GRANTS.
    (a) Amendments.--
        (1) In general.--Section 401A (as amended by Public Law 110-
    227) (20 U.S.C. 1070a-1) is amended--
            (A) in subsection (c)(3)--
                (i) in subparagraph (A), by striking clause (i) and 
            inserting the following:
                ``(i)(I) successfully completes, after January 1, 2006, 
            but before July 1, 2009, a rigorous secondary school 
            program of study established by a State or local 
            educational agency and recognized as such by the Secretary; 
            or
                ``(II) successfully completes, on or after July 1, 
            2009, a rigorous secondary school program of study that 
            prepares students for college--

                    ``(aa)(AA) that is recognized as such by the 
                official designated for such recognition consistent 
                with State law; and
                    ``(BB) about which the designated official has 
                reported to the Secretary, at such time as the 
                Secretary may reasonably require, in order to assist 
                financial aid administrators to determine that the 
                student is an eligible student under this section; or
                    ``(bb) that is recognized as such by the Secretary 
                in regulations promulgated to carry out this section, 
                as such regulations were in effect on May 6, 2008; 
                and''; and

                (ii) in subparagraph (B), by striking clause (i) and 
            inserting the following:
                ``(i)(I) successfully completes, after January 1, 2005, 
            but before July 1, 2009, a rigorous secondary school 
            program of study established by a State or local 
            educational agency and recognized as such by the Secretary; 
            or
                ``(II) successfully completes, on or after July 1, 
            2009, a rigorous secondary school program of study that 
            prepares students for college--

                    ``(aa)(AA) that is recognized as such by the 
                official designated for such recognition consistent 
                with State law; and
                    ``(BB) about which the designated official has 
                reported to the Secretary, at such time as the 
                Secretary may reasonably require, in order to assist 
                financial aid administrators to determine that the 
                student is an eligible student under this section; or
                    ``(bb) that is recognized as such by the Secretary 
                in regulations promulgated to carry out this section, 
                as such regulations were in effect on May 6, 2008; 
                and''; and

            (B) by amending subsection (e)(2) to read as follows:
        ``(2) Availability of funds.--The amounts made available by 
    paragraph (1) for any fiscal year shall be available from October 1 
    of that fiscal year and remain available through September 30 of 
    the succeeding fiscal year.''.
        (2) Effective date.--The amendment made by paragraph (1)(B) 
    shall take effect on October 1, 2008.
        (3) Effective date amendment.--Section 10(b) of the Ensuring 
    Continued Access to Student Loans Act of 2008 is amended by 
    striking ``January 1'' and inserting ``July 1''.
    (b) Waiver of Master Calendar and Negotiated Rulemaking 
Requirements.--Sections 482 and 492 of the Higher Education Act of 1965 
(20 U.S.C. 1089, 1098a) shall not apply to the amendments made by 
subsection (a), or to any regulations promulgated under those 
amendments.
    (c) Related Amendment to the Ensuring Continued Access to Student 
Loans Act of 2008.--
        (1) Amendment.--Section 11 of the Ensuring Continued Access to 
    Student Loans Act of 2008 is amended by striking ``sections 2 
    through 9 of''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    take effect as if enacted as part of the Ensuring Continued Access 
    to Student Loans Act of 2008.
    SEC. 403. FEDERAL TRIO PROGRAMS.
    (a) Program Authority; Authorization of Appropriations.--Section 
402A (20 U.S.C. 1070a-11) is amended--
        (1) in subsection (b)--
            (A) in paragraph (1)--
                (i) by inserting ``including community-based 
            organizations with experience in serving disadvantaged 
            youth'' after ``private agencies and organizations''; and
                (ii) by striking ``in exceptional circumstances'' and 
            inserting ``, as appropriate to the purposes of the 
            program'';
            (B) in paragraph (2)--
                (i) in the matter preceding subparagraph (A), by 
            striking ``4'' and inserting ``5''; and
                (ii) by amending subparagraph (A) to read as follows:
            ``(A) in order to synchronize the awarding of grants for 
        programs under this chapter, the Secretary may, under such 
        terms as are consistent with the purposes of this chapter, 
        provide a one-time, limited extension of the length of such an 
        award;''; and
            (C) by striking paragraph (3) and inserting the following:
        ``(3) Minimum grants.--Unless the institution or agency 
    requests a smaller amount, an individual grant authorized under 
    this chapter shall be awarded in an amount that is not less than 
    $200,000, except that an individual grant authorized under section 
    402G shall be awarded in an amount that is not less than 
    $170,000.'';
        (2) in subsection (c)--
            (A) in paragraph (2)--
                (i) by striking ``(2) prior experience.--In'' and 
            inserting the following:
        ``(2) Considerations.--
            ``(A) Prior experience.--In'';
                (ii) by striking ``service delivery'' and inserting 
            ``high quality service delivery, as determined under 
            subsection (f),''; and
                (iii) by adding at the end the following new 
            subparagraph:
            ``(B) Participant need.--In making grants under this 
        chapter, the Secretary shall consider the number, percentages, 
        and needs of eligible participants in the area, institution of 
        higher education, or secondary school to be served to aid such 
        participants in preparing for, enrolling in, or succeeding in 
        postsecondary education, as appropriate to the particular 
        program for which the eligible entity is applying.'';
            (B) in paragraph (3)(B), by striking ``is not required to'' 
        and inserting ``shall not'';
            (C) in paragraph (5), by striking ``campuses'' and 
        inserting ``different campuses'';
            (D) in paragraph (6), by adding at the end the following 
        new sentence: ``The Secretary shall, as appropriate, require 
        each applicant for funds under the programs authorized by this 
        chapter to identify and make available services under such 
        program, including mentoring, tutoring, and other services 
        provided by such program, to foster care youth (including youth 
        in foster care and youth who have left foster care after 
        reaching age 13) or to homeless children and youths as defined 
        in section 725 of the McKinney-Vento Homeless Assistance 
        Act.''; and
            (E) by adding at the end the following:
        ``(8) Review and notification by the secretary.--
            ``(A) Guidance.--Not later than 180 days after the date of 
        enactment of the Higher Education Opportunity Act, the 
        Secretary shall issue nonregulatory guidance regarding the 
        rights and responsibilities of applicants with respect to the 
        application and evaluation process for programs and projects 
        assisted under this chapter, including applicant access to peer 
        review comments. The guidance shall describe the procedures for 
        the submission, processing, and scoring of applications for 
        grants under this chapter, including--
                ``(i) the responsibility of applicants to submit 
            materials in a timely manner and in accordance with the 
            processes established by the Secretary under the authority 
            of the General Education Provisions Act;
                ``(ii) steps the Secretary will take to ensure that the 
            materials submitted by applicants are processed in a proper 
            and timely manner;
                ``(iii) steps the Secretary will take to ensure that 
            prior experience points for high quality service delivery 
            are awarded in an accurate and transparent manner;
                ``(iv) steps the Secretary will take to ensure the 
            quality and integrity of the peer review process, including 
            assurances that peer reviewers will consider applications 
            for grants under this chapter in a thorough and complete 
            manner consistent with applicable Federal law; and
                ``(v) steps the Secretary will take to ensure that the 
            final score of an application, including prior experience 
            points for high quality service delivery and points awarded 
            through the peer review process, is determined in an 
            accurate and transparent manner.
            ``(B) Updated guidance.--Not later than 45 days before the 
        date of the commencement of each competition for a grant under 
        this chapter that is held after the expiration of the 180-day 
        period described in subparagraph (A), the Secretary shall 
        update and publish the guidance described in such subparagraph.
            ``(C) Review.--
                ``(i) In general.--With respect to any competition for 
            a grant under this chapter, an applicant may request a 
            review by the Secretary if the applicant--

                    ``(I) has evidence of a specific technical, 
                administrative, or scoring error made by the 
                Department, an agent of the Department, or a peer 
                reviewer, with respect to the scoring or processing of 
                a submitted application; and
                    ``(II) has otherwise met all of the requirements 
                for submission of the application.

                ``(ii) Technical or administrative error.--In the case 
            of evidence of a technical or administrative error listed 
            in clause (i)(I), the Secretary shall review such evidence 
            and provide a timely response to the applicant. If the 
            Secretary determines that a technical or administrative 
            error was made by the Department or an agent of the 
            Department, the application of the applicant shall be 
            reconsidered in the peer review process for the applicable 
            grant competition.
                ``(iii) Scoring error.--In the case of evidence of a 
            scoring error listed in clause (i)(I), when the error 
            relates to either prior experience points for high quality 
            service delivery or to the final score of an application, 
            the Secretary shall--

                    ``(I) review such evidence and provide a timely 
                response to the applicant; and
                    ``(II) if the Secretary determines that a scoring 
                error was made by the Department or a peer reviewer, 
                adjust the prior experience points or final score of 
                the application appropriately and quickly, so as not to 
                interfere with the timely awarding of grants for the 
                applicable grant competition.

                ``(iv) Error in peer review process.--

                    ``(I) Referral to secondary review.--In the case of 
                a peer review process error listed in clause (i)(I), if 
                the Secretary determines that points were withheld for 
                criteria not required in Federal statute, regulation, 
                or guidance governing a program assisted under this 
                chapter or the application for a grant for such 
                program, or determines that information pertaining to 
                selection criteria was wrongly determined missing from 
                an application by a peer reviewer, then the Secretary 
                shall refer the application to a secondary review 
                panel.
                    ``(II) Timely review; replacement score.--The 
                secondary review panel described in subclause (I) shall 
                conduct a secondary review in a timely fashion, and the 
                score resulting from the secondary review shall replace 
                the score from the initial peer review.
                    ``(III) Composition of secondary review panel.--The 
                secondary review panel shall be composed of reviewers 
                each of whom--

                        ``(aa) did not review the application in the 
                    original peer review;
                        ``(bb) is a member of the cohort of peer 
                    reviewers for the grant program that is the subject 
                    of such secondary review; and
                        ``(cc) to extent practicable, has conducted 
                    peer reviews in not less than two previous 
                    competitions for the grant program that is the 
                    subject of such secondary review.

                    ``(IV) Final score.--The final peer review score of 
                an application subject to a secondary review under this 
                clause shall be adjusted appropriately and quickly 
                using the score awarded by the secondary review panel, 
                so as not to interfere with the timely awarding of 
                grants for the applicable grant competition.
                    ``(V) Qualification for secondary review.--To 
                qualify for a secondary review under this clause, an 
                applicant shall have evidence of a scoring error and 
                demonstrate that--

                        ``(aa) points were withheld for criteria not 
                    required in statute, regulation, or guidance 
                    governing the Federal TRIO programs or the 
                    application for a grant for such programs; or
                        ``(bb) information pertaining to selection 
                    criteria was wrongly determined to be missing from 
                    the application.
                ``(v) Finality.--

                    ``(I) In general.--A determination by the Secretary 
                under clause (i), (ii), or (iii) shall not be 
                reviewable by any officer or employee of the 
                Department.
                    ``(II) Scoring.--The score awarded by a secondary 
                review panel under clause (iv) shall not be reviewable 
                by any officer or employee of the Department other than 
                the Secretary.

                ``(vi) Funding of applications with certain adjusted 
            scores.--To the extent feasible based on the availability 
            of appropriations, the Secretary shall fund applications 
            with scores that are adjusted upward under clauses (ii), 
            (iii), and (iv) to equal or exceed the minimum cut off 
            score for the applicable grant competition.'';
        (3) in subsection (e)--
            (A) by striking ``(g)(2)'' each place it appears and 
        inserting ``(h)(4)''; and
            (B) by adding at the end the following new paragraph:
    ``(3) Notwithstanding this subsection and subsection (h)(4), 
individuals who are foster care youth (including youth in foster care 
and youth who have left foster care after reaching age 13), or homeless 
children and youths 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.'';
        (4) by redesignating subsections (f) and (g) as subsections (g) 
    and (h), respectively;
        (5) by inserting after subsection (e) the following:
    ``(f) Outcome Criteria.--
        ``(1) Use for prior experience determination.--For competitions 
    for grants under this chapter that begin on or after January 1, 
    2009, the Secretary shall determine an eligible entity's prior 
    experience of high quality service delivery, as required under 
    subsection (c)(2), based on the outcome criteria described in 
    paragraphs (2) and (3).
        ``(2) Disaggregation of relevant data.--The outcome criteria 
    under this subsection shall be disaggregated by low-income 
    students, first generation college students, and individuals with 
    disabilities, in the schools and institutions of higher education 
    served by the program to be evaluated.
        ``(3) Contents of outcome criteria.--The outcome criteria under 
    this subsection shall measure, annually and for longer periods, the 
    quality and effectiveness of programs authorized under this chapter 
    and shall include the following:
            ``(A) For programs authorized under section 402B, the 
        extent to which the eligible entity met or exceeded the 
        entity's objectives established in the entity's application for 
        such program regarding--
                ``(i) the delivery of service to a total number of 
            students served by the program;
                ``(ii) the continued secondary school enrollment of 
            such students;
                ``(iii) the graduation of such students from secondary 
            school with a regular secondary school diploma in the 
            standard number of years;
                ``(iv) the completion by such students of a rigorous 
            secondary school program of study that will make such 
            students eligible for programs such as the Academic 
            Competitiveness Grants Program;
                ``(v) the enrollment of such students in an institution 
            of higher education; and
                ``(vi) to the extent practicable, the postsecondary 
            education completion of such students.
            ``(B) For programs authorized under section 402C, the 
        extent to which the eligible entity met or exceeded the 
        entity's objectives for such program regarding--
                ``(i) the delivery of service to a total number of 
            students served by the program, as agreed upon by the 
            entity and the Secretary for the period;
                ``(ii) such students' school performance, as measured 
            by the grade point average, or its equivalent;
                ``(iii) such students' academic performance, as 
            measured by standardized tests, including tests required by 
            the students' State;
                ``(iv) the retention in, and graduation from, secondary 
            school of such students;
                ``(v) the completion by such students of a rigorous 
            secondary school program of study that will make such 
            students eligible for programs such as the Academic 
            Competitiveness Grants Program;
                ``(vi) the enrollment of such students in an 
            institution of higher education; and
                ``(vii) to the extent practicable, the postsecondary 
            education completion of such students.
            ``(C) For programs authorized under section 402D--
                ``(i) the extent to which the eligible entity met or 
            exceeded the entity's objectives regarding the retention in 
            postsecondary education of the students served by the 
            program;
                ``(ii)(I) in the case of an entity that is an 
            institution of higher education offering a baccalaureate 
            degree, the extent to which the entity met or exceeded the 
            entity's objectives regarding the percentage of such 
            students' completion of the degree programs in which such 
            students were enrolled; or
                ``(II) in the case of an entity that is an institution 
            of higher education that does not offer a baccalaureate 
            degree, the extent to which such students met or exceeded 
            the entity's objectives regarding--

                    ``(aa) the completion of a degree or certificate by 
                such students; and
                    ``(bb) the transfer of such students to 
                institutions of higher education that offer 
                baccalaureate degrees;

                ``(iii) the extent to which the entity met or exceeded 
            the entity's objectives regarding the delivery of service 
            to a total number of students, as agreed upon by the entity 
            and the Secretary for the period; and
                ``(iv) the extent to which the entity met or exceeded 
            the entity's objectives regarding the students served under 
            the program who remain in good academic standing.
            ``(D) For programs authorized under section 402E, the 
        extent to which the entity met or exceeded the entity's 
        objectives for such program regarding--
                ``(i) the delivery of service to a total number of 
            students served by the program, as agreed upon by the 
            entity and the Secretary for the period;
                ``(ii) the provision of appropriate scholarly and 
            research activities for the students served by the program;
                ``(iii) the acceptance and enrollment of such students 
            in graduate programs; and
                ``(iv) the continued enrollment of such students in 
            graduate study and the attainment of doctoral degrees by 
            former program participants.
            ``(E) For programs authorized under section 402F, the 
        extent to which the entity met or exceeded the entity's 
        objectives for such program regarding--
                ``(i) the enrollment of students without a secondary 
            school diploma or its recognized equivalent, who were 
            served by the program, in programs leading to such diploma 
            or equivalent;
                ``(ii) the enrollment of secondary school graduates who 
            were served by the program in programs of postsecondary 
            education;
                ``(iii) the delivery of service to a total number of 
            students served by the program, as agreed upon by the 
            entity and the Secretary for the period; and
                ``(iv) the provision of assistance to students served 
            by the program in completing financial aid applications and 
            college admission applications.
        ``(4) Measurement of progress.--In order to determine the 
    extent to which each outcome criterion described in paragraph (2) 
    or (3) is met or exceeded, the Secretary shall compare the agreed 
    upon target for the criterion, as established in the eligible 
    entity's application approved by the Secretary, with the results 
    for the criterion, measured as of the last day of the applicable 
    time period for the determination for the outcome criterion.'';
        (6) in subsection (g) (as redesignated by paragraph (4))--
            (A) in the first sentence, by striking ``$700,000,000 for 
        fiscal year 1999'' and all that follows through the period and 
        inserting ``$900,000,000 for fiscal year 2009 and such sums as 
        may be necessary for each of the five succeeding fiscal 
        years.''; and
            (B) by striking the fourth sentence; and
        (7) in subsection (h) (as redesignated by paragraph (4))--
            (A) by redesignating paragraphs (1) through (4) as 
        paragraphs (3) through (6), respectively;
            (B) by inserting before paragraph (3) (as redesignated by 
        subparagraph (A)) the following:
        ``(1) Different campus.--The term `different campus' means a 
    site of an institution of higher education 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 that an eligible entity desires to 
    serve through an application for a grant under this chapter, and 
    that--
            ``(A) is separate and distinct from any other population 
        that the entity has applied for a grant under this chapter to 
        serve; or
            ``(B) while sharing some of the same needs as another 
        population that the eligible entity has applied for a grant 
        under this chapter to serve, has distinct needs for specialized 
        services.'';
            (C) in paragraph (5) (as redesignated by subparagraph 
        (A))--
                (i) in subparagraph (A)--

                    (I) by striking ``, any part of which occurred 
                after January 31, 1955,''; and
                    (II) by striking ``or'' after the semicolon;

                (ii) in subparagraph (B)--

                    (I) by striking ``after January 31, 1955,''; and
                    (II) by striking the period at the end and 
                inserting a semicolon; and

                (iii) by adding at the end the following:
            ``(C) was a member of a reserve component of the Armed 
        Forces called to active duty for a period of more than 30 days; 
        or
            ``(D) 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.''; and
            (D) in paragraph (6) (as redesignated by subparagraph (A)), 
        by striking ``subparagraph (A) or (B) of paragraph (3)'' and 
        inserting ``subparagraph (A), (B), or (C) of paragraph (5)''.
    (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is amended--
        (1) in subsection (a)--
            (A) in paragraph (2), by inserting ``, and facilitate the 
        application for,'' after ``the availability of''; and
            (B) in paragraph (3), by striking ``, but who have the 
        ability to complete such programs, to reenter'' and inserting 
        ``to enter or reenter, and complete'';
        (2) by redesignating subsection (c) as subsection (d);
        (3) by striking subsection (b) and inserting the following:
    ``(b) Required Services.--Any project assisted under this section 
shall provide--
        ``(1) connections to high quality academic tutoring services, 
    to enable students to complete secondary or postsecondary courses;
        ``(2) advice and assistance in secondary course selection and, 
    if applicable, initial postsecondary course selection;
        ``(3) assistance in preparing for college entrance examinations 
    and completing college admission applications;
        ``(4)(A) information on the full range of Federal student 
    financial aid programs and benefits (including Federal Pell Grant 
    awards and loan forgiveness) and resources for locating public and 
    private scholarships; and
        ``(B) assistance in completing financial aid applications, 
    including the Free Application for Federal Student Aid described in 
    section 483(a);
        ``(5) guidance on and assistance in--
            ``(A) secondary school reentry;
            ``(B) alternative education programs for secondary school 
        dropouts that lead to the receipt of a regular secondary school 
        diploma;
            ``(C) entry into general educational development (GED) 
        programs; or
            ``(D) postsecondary education; and
        ``(6) connections to education or counseling services designed 
    to improve the financial literacy and economic literacy of students 
    or the students' parents, including financial planning for 
    postsecondary education.
    ``(c) Permissible Services.--Any project assisted under this 
section may provide services such as--
        ``(1) academic tutoring, which may include instruction in 
    reading, writing, study skills, mathematics, science, and other 
    subjects;
        ``(2) personal and career counseling or activities;
        ``(3) information and activities designed to acquaint youth 
    with the range of career options available to the youth;
        ``(4) exposure to the campuses of institutions of higher 
    education, as well as cultural events, academic programs, and other 
    sites or activities not usually available to disadvantaged youth;
        ``(5) workshops and counseling for families of students served;
        ``(6) mentoring programs involving elementary or secondary 
    school teachers or counselors, faculty members at institutions of 
    higher education, students, or any combination of such persons; and
        ``(7) programs and activities as described in subsection (b) or 
    paragraphs (1) through (6) of this subsection that are specially 
    designed for students who are limited English proficient, students 
    from groups that are traditionally underrepresented in 
    postsecondary education, students with disabilities, students who 
    are homeless children and youths (as such term is defined in 
    section 725 of the McKinney-Vento Homeless Assistance Act (42 
    U.S.C. 11434a)), students who are in foster care or are aging out 
    of the foster care system, or other disconnected students.''; and
        (4) in the matter preceding paragraph (1) of subsection (d) (as 
    redesignated by paragraph (2)), by striking ``talent search 
    projects under this chapter'' and inserting ``projects under this 
    section''.
    (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
        (1) by striking subsection (b) and inserting the following:
    ``(b) Required Services.--Any project assisted under this section 
shall provide--
        ``(1) academic tutoring to enable students to complete 
    secondary or postsecondary courses, which may include instruction 
    in reading, writing, study skills, mathematics, science, and other 
    subjects;
        ``(2) advice and assistance in secondary and postsecondary 
    course selection;
        ``(3) assistance in preparing for college entrance examinations 
    and completing college admission applications;
        ``(4)(A) information on the full range of Federal student 
    financial aid programs and benefits (including Federal Pell Grant 
    awards and loan forgiveness) and resources for locating public and 
    private scholarships; and
        ``(B) assistance in completing financial aid applications, 
    including the Free Application for Federal Student Aid described in 
    section 483(a);
        ``(5) guidance on and assistance in--
            ``(A) secondary school reentry;
            ``(B) alternative education programs for secondary school 
        dropouts that lead to the receipt of a regular secondary school 
        diploma;
            ``(C) entry into general educational development (GED) 
        programs; or
            ``(D) postsecondary education; and
        ``(6) education or counseling services designed to improve the 
    financial literacy and economic literacy of students or the 
    students' parents, including financial planning for postsecondary 
    education.'';
        (2) in subsection (c)--
            (A) in the subsection heading, by striking ``Required 
        Services'' and inserting ``Additional Required Services for 
        Multiple-Year Grant Recipients''; and
            (B) by striking ``upward bound project assisted under this 
        chapter'' and inserting ``project assisted under this 
        section'';
        (3) by redesignating subsections (d), (e), and (f) as 
    subsections (e), (f), and (g), respectively;
        (4) by inserting after subsection (c) the following:
    ``(d) Permissible Services.--Any project assisted under this 
section may provide such services as--
        ``(1) exposure to cultural events, academic programs, and other 
    activities not usually available to disadvantaged youth;
        ``(2) information, activities, and instruction designed to 
    acquaint youth participating in the project with the range of 
    career options available to the youth;
        ``(3) on-campus residential programs;
        ``(4) mentoring programs involving elementary school or 
    secondary school teachers or counselors, faculty members at 
    institutions of higher education, students, or any combination of 
    such persons;
        ``(5) work-study positions where youth participating in the 
    project are exposed to careers requiring a postsecondary degree;
        ``(6) special services, including mathematics and science 
    preparation, to enable veterans to make the transition to 
    postsecondary education; and
        ``(7) programs and activities as described in subsection (b), 
    subsection (c), or paragraphs (1) through (6) of this subsection 
    that are specially designed for students who are limited English 
    proficient, students from groups that are traditionally 
    underrepresented in postsecondary education, students with 
    disabilities, students who are homeless children and youths (as 
    such term is defined in section 725 of the McKinney-Vento Homeless 
    Assistance Act (42 U.S.C. 11434a)), students who are in foster care 
    or are aging out of the foster care system, or other disconnected 
    students.'';
        (5) in subsection (e) (as redesignated by paragraph (3))--
            (A) in the matter preceding paragraph (1), by striking 
        ``upward bound projects under this chapter'' and inserting 
        ``projects under this section'';
            (B) in paragraph (2), by striking ``either low-income'' and 
        all that follows through the semicolon and inserting ``low-
        income individuals, first generation college students, or 
        students who have a high risk for academic failure;'';
            (C) in paragraph (3), by striking ``and'' after the 
        semicolon;
            (D) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (E) by adding at the end the following:
        ``(5) require an assurance that no student will be denied 
    participation in a project assisted under this section because the 
    student will enter the project after the 9th grade.'';
        (6) in subsection (f) (as redesignated by paragraph (3))--
            (A) by striking ``during June, July, and August'' each 
        place the term occurs and inserting ``during the summer school 
        recess, for a period not to exceed three months''; and
            (B) by striking ``(b)(10)'' and inserting ``(d)(5)''; and
        (7) by adding at the end the following:
    ``(h) Absolute Priority Prohibited in Upward Bound Program.--Upon 
enactment of this subsection and except as otherwise expressly provided 
by amendment to this section, the Secretary shall not continue, 
implement, or enforce the absolute priority for the Upward Bound 
Program published by the Department of Education in the Federal 
Register on September 22, 2006 (71 Fed. Reg. 55447 et seq.). This 
subsection shall not be applied retroactively. In implementing this 
subsection, the Department shall allow the programs and participants 
chosen in the grant cycle to which the priority applies to continue 
their grants and participation without a further recompetition. The 
entities shall not be required to apply the absolute priority 
conditions or restrictions to future participants.''.
    (d) Student Support Services.--Section 402D (20 U.S.C. 1070a-14) is 
amended--
        (1) in subsection (a)--
            (A) in paragraph (2), by striking ``and'' after the 
        semicolon; and
            (B) by striking paragraph (3) and inserting the following:
        ``(3) to foster an institutional climate supportive of the 
    success of students who are limited English proficient, students 
    from groups that are traditionally underrepresented in 
    postsecondary education, students with disabilities, students who 
    are homeless children and youths (as such term is defined in 
    section 725 of the McKinney-Vento Homeless Assistance Act (42 
    U.S.C. 11434a)), students who are in foster care or are aging out 
    of the foster care system, or other disconnected students; and
        ``(4) to improve the financial literacy and economic literacy 
    of students, including--
            ``(A) basic personal income, household money management, 
        and financial planning skills; and
            ``(B) basic economic decisionmaking skills.'';
        (2) by redesignating subsections (c) and (d) as subsections (d) 
    and (e);
        (3) by striking subsection (b) and inserting the following:
    ``(b) Required Services.--A project assisted under this section 
shall provide--
        ``(1) academic tutoring, directly or through other services 
    provided by the institution, to enable students to complete 
    postsecondary courses, which may include instruction in reading, 
    writing, study skills, mathematics, science, and other subjects;
        ``(2) advice and assistance in postsecondary course selection;
        ``(3)(A) information on both the full range of Federal student 
    financial aid programs and benefits (including Federal Pell Grant 
    awards and loan forgiveness) and resources for locating public and 
    private scholarships; and
        ``(B) assistance in completing financial aid applications, 
    including the Free Application for Federal Student Aid described in 
    section 483(a);
        ``(4) education or counseling services designed to improve the 
    financial literacy and economic literacy of students, including 
    financial planning for postsecondary education;
        ``(5) activities designed to assist students participating in 
    the project in applying for admission to, and obtaining financial 
    assistance for enrollment in, graduate and professional programs; 
    and
        ``(6) activities designed to assist students enrolled in two-
    year institutions of higher education in applying for admission to, 
    and obtaining financial assistance for enrollment in, a four-year 
    program of postsecondary education.
    ``(c) Permissible Services.--A project assisted under this section 
may provide services such as--
        ``(1) individualized counseling for personal, career, and 
    academic matters provided by assigned counselors;
        ``(2) information, activities, and instruction designed to 
    acquaint students participating in the project with the range of 
    career options available to the students;
        ``(3) exposure to cultural events and academic programs not 
    usually available to disadvantaged students;
        ``(4) mentoring programs involving faculty or upper class 
    students, or a combination thereof;
        ``(5) securing temporary housing during breaks in the academic 
    year for--
            ``(A) students who are homeless children and youths (as 
        such term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)) or were formerly 
        homeless children and youths; and
            ``(B) students who are in foster care or are aging out of 
        the foster care system; and
        ``(6) programs and activities as described in subsection (b) or 
    paragraphs (1) through (4) of this subsection that are specially 
    designed for students who are limited English proficient, students 
    from groups that are traditionally underrepresented in 
    postsecondary education, students with disabilities, students who 
    are homeless children and youths (as such term is defined in 
    section 725 of the McKinney-Vento Homeless Assistance Act (42 
    U.S.C. 11434a)), students who are in foster care or are aging out 
    of the foster care system, or other disconnected students.'';
        (4) in subsection (d)(1) (as redesignated by paragraph (2)), by 
    striking ``subsection (b)'' and inserting ``subsection (c)''; and
        (5) in the matter preceding paragraph (1) of subsection (e) (as 
    redesignated by paragraph (2)), by striking ``student support 
    services projects under this chapter'' and inserting ``projects 
    under this section''.
    (e) Postbaccalaureate Achievement Program Authority.--Section 402E 
(20 U.S.C. 1070a-15) is amended--
        (1) in subsection (b)--
            (A) in the subsection heading, by inserting ``Required'' 
        before ``Services'';
            (B) in the matter preceding paragraph (1), by striking ``A 
        postbaccalaureate achievement project assisted under this 
        section may provide services such as--'' and inserting ``A 
        project assisted under this section shall provide--'';
            (C) in paragraph (5), by inserting ``and'' after the 
        semicolon;
            (D) in paragraph (6), by striking the semicolon and 
        inserting a period; and
            (E) by striking paragraphs (7) and (8);
        (2) by redesignating subsections (c) through (f) as subsections 
    (d) through (g), respectively;
        (3) by inserting after subsection (b) the following:
    ``(c) Permissible Services.--A project assisted under this section 
may provide services such as--
        ``(1) education or counseling services designed to improve the 
    financial literacy and economic literacy of students, including 
    financial planning for postsecondary education;
        ``(2) mentoring programs involving faculty members at 
    institutions of higher education, students, or any combination of 
    such persons; and
        ``(3) exposure to cultural events and academic programs not 
    usually available to disadvantaged students.'';
        (4) in subsection (d) (as redesignated by paragraph (2))--
            (A) in the matter preceding paragraph (1), by striking 
        ``postbaccalaureate achievement''; and
            (B) in paragraph (2), by inserting after ``graduate 
        education'' the following: ``, including--
            ``(A) Alaska Natives, as defined in section 7306 of the 
        Elementary and Secondary Education Act of 1965;
            ``(B) Native Hawaiians, as defined in section 7207 of such 
        Act; and
            ``(C) Native American Pacific Islanders, as defined in 
        section 320.'';
        (5) in the matter preceding paragraph (1) of subsection (f) (as 
    redesignated by paragraph (2)), by striking ``postbaccalaureate 
    achievement project'' and inserting ``project under this section''; 
    and
        (6) in subsection (g) (as redesignated by paragraph (2))--
            (A) by striking ``402A(f)'' and inserting ``402A(g)''; and
            (B) by striking ``1993 through 1997'' and inserting ``2009 
        through 2014''.
    (f) Educational Opportunity Centers.--Section 402F (20 U.S.C. 
1070a-16) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (B) in paragraph (2), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
        ``(3) to improve the financial literacy and economic literacy 
    of students, including--
            ``(A) basic personal income, household money management, 
        and financial planning skills; and
            ``(B) basic economic decisionmaking skills.''; and
        (2) in subsection (b)--
            (A) by redesignating paragraphs (5) through (10) as 
        paragraphs (6) through (11), respectively;
            (B) by inserting after paragraph (4) the following:
        ``(5) education or counseling services designed to improve the 
    financial literacy and economic literacy of students;'';
            (C) by striking paragraph (7) (as redesignated by 
        subparagraph (A)) and inserting the following:
        ``(7) individualized personal, career, and academic 
    counseling;''; and
            (D) by striking paragraph (11) (as redesignated by 
        subparagraph (A)) and inserting the following:
        ``(11) programs and activities as described in paragraphs (1) 
    through (10) that are specially designed for students who are 
    limited English proficient, students from groups that are 
    traditionally underrepresented in postsecondary education, students 
    with disabilities, students who are homeless children and youths 
    (as such term is defined in section 725 of the McKinney-Vento 
    Homeless Assistance Act (42 U.S.C. 11434a)), students who are in 
    foster care or are aging out of the foster care system, or other 
    disconnected students.''.
    (g) Staff Development Activities.--Section 402G(b) (20 U.S.C. 
1070a-17(b)) is amended by adding at the end the following new 
paragraph:
        ``(5) Strategies for recruiting and serving hard to reach 
    populations, including students who are limited English proficient, 
    students from groups that are traditionally underrepresented in 
    postsecondary education, students with disabilities, students who 
    are homeless children and youths (as such term is defined in 
    section 725 of the McKinney-Vento Homeless Assistance Act (42 
    U.S.C. 11434a)), students who are in foster care or are aging out 
    of the foster care system, or other disconnected students.''.
    (h) Reports, Evaluations, and Grants for Project Improvement and 
Dissemination.--Section 402H (20 U.S.C. 1070a-18) is amended--
        (1) by striking the section heading and inserting ``reports, 
    evaluations, and grants for project improvement and 
    dissemination.'';
        (2) by redesignating subsections (a) through (c) as subsections 
    (b) through (d), respectively;
        (3) by inserting before subsection (b) (as redesignated by 
    paragraph (2)) the following:
    ``(a) Reports to the Authorizing Committees.--
        ``(1) In general.--The Secretary shall submit annually, to the 
    authorizing committees, a report that documents the performance of 
    all programs funded under this chapter. Such report shall--
            ``(A) be submitted not later than 12 months after the 
        eligible entities receiving funds under this chapter are 
        required to report their performance to the Secretary;
            ``(B) focus on the programs' performance on the relevant 
        outcome criteria determined under section 402A(f)(4);
            ``(C) aggregate individual project performance data on the 
        outcome criteria in order to provide national performance data 
        for each program;
            ``(D) include, when appropriate, descriptive data, multi-
        year data, and multi-cohort data; and
            ``(E) include comparable data on the performance nationally 
        of low-income students, first-generation students, and students 
        with disabilities.
        ``(2) Information.--The Secretary shall provide, with each 
    report submitted under paragraph (1), information on the impact of 
    the secondary review process described in section 
    402A(c)(8)(C)(iv), including the number and type of secondary 
    reviews, the disposition of the secondary reviews, the effect on 
    timing of awards, and any other information the Secretary 
    determines is necessary.''; and
        (4) in subsection (b) (as redesignated by paragraph (2)), by 
    striking paragraphs (1) and (2) and inserting the following:
        ``(1) In general.--
            ``(A) Authorization of grants and contracts.--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, institutions of higher 
        education and other public and private institutions and 
        organizations to rigorously evaluate the effectiveness of the 
        programs and projects assisted under this chapter, including a 
        rigorous evaluation of the programs and projects assisted under 
        section 402C. The evaluation of the programs and projects 
        assisted under section 402C shall be implemented not later than 
        June 30, 2010.
            ``(B) Content of upward bound evaluation.--The evaluation 
        of the programs and projects assisted under section 402C that 
        is described in subparagraph (A) shall examine the 
        characteristics of the students who benefit most from the 
        Upward Bound program under section 402C and the characteristics 
        of the programs and projects that most benefit students.
            ``(C) Implementation.--Each evaluation described in this 
        paragraph shall be implemented in accordance with the 
        requirements of this section.
        ``(2) Practices.--
            ``(A) In general.--The evaluations described in paragraph 
        (1) shall identify institutional, community, and program or 
        project practices that are effective in--
                ``(i) enhancing the access of low-income individuals 
            and first-generation college students to postsecondary 
            education;
                ``(ii) the preparation of such individuals and students 
            for postsecondary education; and
                ``(iii) fostering the success of the individuals and 
            students in postsecondary education.
            ``(B) Primary purpose.--Any evaluation conducted under this 
        chapter shall have as the evaluation's primary purpose the 
        identification of particular practices that further the 
        achievement of the outcome criteria determined under section 
        402A(f)(4).
            ``(C) Dissemination and use of evaluation findings.--The 
        Secretary shall disseminate to eligible entities and make 
        available to the public the practices identified under 
        subparagraph (B). The practices may be used by eligible 
        entities that receive assistance under this chapter after the 
        dissemination.
        ``(3) Special rule related to evaluation participation.--The 
    Secretary shall not require an eligible entity, as a condition for 
    receiving, or that receives, assistance under any program or 
    project under this chapter to participate in an evaluation under 
    this section that--
            ``(A) requires the eligible entity to recruit additional 
        students beyond those the program or project would normally 
        recruit; or
            ``(B) results in the denial of services for an eligible 
        student under the program or project.
        ``(4) Consideration.--When designing an evaluation under this 
    subsection, the Secretary shall continue to consider--
            ``(A) the burden placed on the program participants or the 
        eligible entity; and
            ``(B) whether the evaluation meets generally accepted 
        standards of institutional review boards.''.
    SEC. 404. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE 
      PROGRAMS.
    (a) Early Intervention and College Awareness Program Authorized.--
Section 404A (20 U.S.C. 1070a-21) is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(a) Program Authorized.--The Secretary is authorized, in 
accordance with the requirements of this chapter, to establish a 
program that encourages eligible entities to provide support, and 
maintain a commitment, to eligible low-income students, including 
students with disabilities, to assist the students in obtaining a 
secondary school diploma (or its recognized equivalent) and to prepare 
for and succeed in postsecondary education, by providing--
        ``(1) financial assistance, academic support, additional 
    counseling, mentoring, outreach, and supportive services to 
    secondary school students, including students with disabilities, to 
    reduce--
            ``(A) the risk of such students dropping out of school; or
            ``(B) the need for remedial education for such students at 
        the postsecondary level; and
        ``(2) information to students and their families about the 
    advantages of obtaining a postsecondary education and, college 
    financing options for the students and their families.'';
        (2) in subsection (b), by striking paragraph (2) and inserting 
    the following:
        ``(2) Award period.--The Secretary may award a grant under this 
    chapter to an eligible entity described in paragraphs (1) and (2) 
    of subsection (c) for--
            ``(A) six years; or
            ``(B) in the case of an eligible entity that applies for a 
        grant under this chapter for seven years to enable the eligible 
        entity to provide services to a student through the student's 
        first year of attendance at an institution of higher education, 
        seven years.
        ``(3) Priority.--In making awards to eligible entities 
    described in subsection (c)(1), the Secretary shall--
            ``(A) give priority to eligible entities that--
                ``(i) on the day before the date of enactment of the 
            Higher Education Opportunity Act, carried out successful 
            educational opportunity programs under this chapter (as 
            this chapter was in effect on such day); and
                ``(ii) have a prior, demonstrated commitment to early 
            intervention leading to college access through 
            collaboration and replication of successful strategies; and
            ``(B) ensure that students served under this chapter on the 
        day before the date of enactment of the Higher Education 
        Opportunity Act continue to receive assistance through the 
        completion of secondary school.''; and
        (3) in subsection (c), by striking paragraph (2) and inserting 
    the following:
        ``(2) a partnership--
            ``(A) consisting of--
                ``(i) one or more local educational agencies; and
                ``(ii) one or more degree granting institutions of 
            higher education; and
            ``(B) which may include not less than two other community 
        organizations or entities, such as businesses, professional 
        organizations, State agencies, institutions or agencies 
        sponsoring programs authorized under subpart 4, or other public 
        or private agencies or organizations.''.
    (b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is amended--
        (1) by striking subsection (a) and inserting the following:
    ``(a) Funding Rules.--In awarding grants from the amount 
appropriated under section 404H for a fiscal year, the Secretary shall 
make available--
        ``(1) to eligible entities described in section 404A(c)(1), not 
    less than 33 percent of such amount;
        ``(2) to eligible entities described in section 404A(c)(2), not 
    less than 33 percent of such amount; and
        ``(3) to eligible entities described in paragraph (1) or (2) of 
    section 404A(c), the remainder of such amount taking into 
    consideration the number, quality, and promise of the applications 
    for the grants, and, to the extent practicable--
            ``(A) the geographic distribution of such grant awards; and
            ``(B) the distribution of such grant awards between urban 
        and rural applicants.'';
        (2) by striking subsections (b), (e), and (f);
        (3) by redesignating subsections (c), (d), and (g), as 
    subsections (b), (c), and (d), respectively;
        (4) in subsection (d)(1) (as redesignated by paragraph (3))--
            (A) by striking ``and'' at the end of subparagraph (A);
            (B) in subparagraph (B)--
                (i) by inserting ``and provide the option of continued 
            services through the student's first year of attendance at 
            an institution of higher education to the extent the 
            provision of such services was described in the eligible 
            entity's application for assistance under this chapter'' 
            after ``grade level''; and
                (ii) by striking the period at the end and inserting 
            ``; and''; and
            (C) by adding at the end the following new subparagraph:
            ``(C) provide services under this chapter to students who 
        have received services under a previous GEAR UP grant award but 
        have not yet completed the 12th grade.''; and
        (5) by adding at the end the following:
    ``(e) Supplement, Not Supplant.--Grant funds awarded under this 
chapter shall be used to supplement, and not supplant, other Federal, 
State, and local funds that would otherwise be expended to carry out 
activities assisted under this chapter.''.
    (c) Application.--Section 404C (20 U.S.C. 1070a-23) is amended--
        (1) in the section heading, by striking ``eligible entity 
    plans'' and inserting ``applications'';
        (2) in subsection (a)--
            (A) in the subsection heading, by striking ``Plan'' and 
        inserting ``Application'';
            (B) in paragraph (1)--
                (i) by striking ``a plan'' and inserting ``an 
            application''; and
                (ii) by striking the second sentence; and
            (C) by striking paragraph (2) and inserting the following:
        ``(2) Contents.--Each application submitted pursuant to 
    paragraph (1) shall be in such form, contain or be accompanied by 
    such information or assurances, and be submitted at such time as 
    the Secretary may reasonably require. Each such application shall, 
    at a minimum--
            ``(A) describe the activities for which assistance under 
        this chapter is sought, including how the eligible entity will 
        carry out the required activities described in section 404D(a);
            ``(B) describe, in the case of an eligible entity described 
        in section 404A(c)(2) that chooses to provide scholarships, or 
        an eligible entity described in section 404A(c)(1), how the 
        eligible entity will meet the requirements of section 404E;
            ``(C) describe, in the case of an eligible entity described 
        in section 404A(c)(2) that requests a reduced match percentage 
        under subsection (b)(2), how such reduction will assist the 
        entity to provide the scholarships described in subsection 
        (b)(2)(A)(ii);
            ``(D) provide assurances that adequate administrative and 
        support staff will be responsible for coordinating the 
        activities described in section 404D;
            ``(E) provide assurances that activities assisted under 
        this chapter will not displace an employee or eliminate a 
        position at a school assisted under this chapter, including a 
        partial displacement such as a reduction in hours, wages, or 
        employment benefits;
            ``(F) describe, in the case of an eligible entity described 
        in section 404A(c)(1) that chooses to use a cohort approach, or 
        an eligible entity described in section 404A(c)(2), how the 
        eligible entity will define the cohorts of the students served 
        by the eligible entity pursuant to section 404B(d), and how the 
        eligible entity will serve the cohorts through grade 12, 
        including--
                ``(i) how vacancies in the program under this chapter 
            will be filled; and
                ``(ii) how the eligible entity will serve students 
            attending different secondary schools;
            ``(G) describe how the eligible entity will coordinate 
        programs under this chapter with other existing Federal, State, 
        or local programs to avoid duplication and maximize the number 
        of students served;
            ``(H) provide such additional assurances as the Secretary 
        determines necessary to ensure compliance with the requirements 
        of this chapter;
            ``(I) provide information about the activities that will be 
        carried out by the eligible entity to support systemic changes 
        from which future cohorts of students will benefit; and
            ``(J) describe the sources of matching funds that will 
        enable the eligible entity to meet the matching requirement 
        described in subsection (b).'';
        (3) in subsection (b)--
            (A) in the matter preceding subparagraph (A) of paragraph 
        (1)--
                (i) by striking ``a plan'' and inserting ``an 
            application''; and
                (ii) by striking ``such plan'' and inserting ``such 
            application'';
            (B) in paragraph (1)(A), by inserting ``and may be accrued 
        over the full duration of the grant award period, except that 
        the eligible entity shall make substantial progress towards 
        meeting the matching requirement in each year of the grant 
        award period'' after ``in cash or in-kind''; and
            (C) in paragraph (2), by adding at the end the following 
        new sentence: ``The Secretary may approve an eligible entity's 
        request for a reduced match percentage--
            ``(A) at the time of application--
                ``(i) if the eligible entity demonstrates significant 
            economic hardship that precludes the eligible entity from 
            meeting the matching requirement; or
                ``(ii) if the eligible entity is described in section 
            404A(c)(2) and requests that contributions to the eligible 
            entity's scholarship fund established under section 404E be 
            matched on a two to one basis; or
            ``(B) in response to a petition by an eligible entity 
        subsequent to a grant award under this section if the eligible 
        entity demonstrates that the matching funds described in its 
        application are no longer available and the eligible entity has 
        exhausted all revenues for replacing such matching funds.''; 
        and
        (4) in subsection (c)--
            (A) in paragraph (1)--
                (i) by striking ``paid to students from State, local, 
            institutional, or private funds under this chapter'' and 
            inserting ``obligated to students from State, local, 
            institutional, or private funds under this chapter, 
            including pre-existing non-Federal financial assistance 
            programs,''; and
                (ii) by striking the semicolon at the end and inserting 
            ``including--
            ``(A) the amount contributed to a student scholarship fund 
        established under section 404E; and
            ``(B) the amount of the costs of administering the 
        scholarship program under section 404E;'';
            (B) in paragraph (2), by striking ``and'' after the 
        semicolon;
            (C) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (D) by adding at the end the following:
        ``(4) other resources recognized by the Secretary, including 
    equipment and supplies, cash contributions from non-Federal 
    sources, transportation expenses, in-kind or discounted program 
    services, indirect costs, and facility usage.''.
    (d) Activities.--Section 404D (20 U.S.C. 1070a-24) is amended to 
read as follows:
``SEC. 404D. ACTIVITIES.
    ``(a) Required Activities.--Each eligible entity receiving a grant 
under this chapter shall provide comprehensive mentoring, outreach, and 
supportive services to students participating in the programs under 
this chapter. Such activities shall include the following:
        ``(1) Providing information regarding financial aid for 
    postsecondary education to participating students in the cohort 
    described in section 404B(d)(1)(A) or to priority students 
    described in subsection (d).
        ``(2) Encouraging student enrollment in rigorous and 
    challenging curricula and coursework, in order to reduce the need 
    for remedial coursework at the postsecondary level.
        ``(3) Improving the number of participating students who--
            ``(A) obtain a secondary school diploma; and
            ``(B) complete applications for and enroll in a program of 
        postsecondary education.
        ``(4) In the case of an eligible entity described in section 
    404A(c)(1), providing for the scholarships described in section 
    404E.
    ``(b) Permissible Activities for States and Partnerships.--An 
eligible entity that receives a grant under this chapter may use grant 
funds to carry out one or more of the following activities:
        ``(1) Providing tutors and mentors, who may include adults or 
    former participants of a program under this chapter, for eligible 
    students.
        ``(2) Conducting outreach activities to recruit priority 
    students described in subsection (d) to participate in program 
    activities.
        ``(3) Providing supportive services to eligible students.
        ``(4) Supporting the development or implementation of rigorous 
    academic curricula, which may include college preparatory, Advanced 
    Placement, or International Baccalaureate programs, and providing 
    participating students access to rigorous core academic courses 
    that reflect challenging State academic standards.
        ``(5) Supporting dual or concurrent enrollment programs between 
    the secondary school and institution of higher education partners 
    of an eligible entity described in section 404A(c)(2), and other 
    activities that support participating students in--
            ``(A) meeting challenging State academic standards;
            ``(B) successfully applying for postsecondary education;
            ``(C) successfully applying for student financial aid; and
            ``(D) developing graduation and career plans.
        ``(6) Providing special programs or tutoring in science, 
    technology, engineering, or mathematics.
        ``(7) In the case of an eligible entity described in section 
    404A(c)(2), providing support for scholarships described in section 
    404E.
        ``(8) Introducing eligible students to institutions of higher 
    education, through trips and school-based sessions.
        ``(9) Providing an intensive extended school day, school year, 
    or summer program that offers--
            ``(A) additional academic classes; or
            ``(B) assistance with college admission applications.
        ``(10) Providing other activities designed to ensure secondary 
    school completion and postsecondary education enrollment of at-risk 
    children, such as--
            ``(A) the identification of at-risk children;
            ``(B) after-school and summer tutoring;
            ``(C) assistance to at-risk children in obtaining summer 
        jobs;
            ``(D) academic counseling;
            ``(E) financial literacy and economic literacy education or 
        counseling;
            ``(F) volunteer and parent involvement;
            ``(G) encouraging former or current participants of a 
        program under this chapter to serve as peer counselors;
            ``(H) skills assessments;
            ``(I) personal and family counseling, and home visits;
            ``(J) staff development; and
            ``(K) programs and activities described in this subsection 
        that are specially designed for students who are limited 
        English proficient.
        ``(11) Enabling eligible students to enroll in Advanced 
    Placement or International Baccalaureate courses, or college 
    entrance examination preparation courses.
        ``(12) Providing services to eligible students in the 
    participating cohort described in section 404B(d)(1)(A), through 
    the first year of attendance at an institution of higher education.
        ``(13) 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.
        ``(14) 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 to eligible students, their 
    families, and communities.
        ``(15) In the event that matching funds described in the 
    application are no longer available, engaging entities described in 
    section 404A(c)(2) in a collaborative manner to provide matching 
    resources and participate in other activities authorized under this 
    section.
    ``(c) Additional Permissible Activities for States.--In addition to 
the required activities described in subsection (a) and the permissible 
activities described in subsection (b), an eligible entity described in 
section 404A(c)(1) receiving funds under this chapter may use grant 
funds to carry out one or more of the following activities:
        ``(1) Providing technical assistance to--
            ``(A) secondary schools that are located within the State; 
        or
            ``(B) partnerships described in section 404A(c)(2) that are 
        located within the State.
        ``(2) Providing professional development opportunities to 
    individuals working with eligible cohorts of students described in 
    section 404B(d)(1)(A).
        ``(3) Providing administrative support to help build the 
    capacity of eligible entities described in section 404A(c)(2) to 
    compete for and manage grants awarded under this chapter.
        ``(4) Providing strategies and activities that align efforts in 
    the State to prepare eligible students to attend and succeed in 
    postsecondary education, which may include the development of 
    graduation and career plans.
        ``(5) Disseminating information on the use of scientifically 
    valid research and best practices to improve services for eligible 
    students.
        ``(6)(A) Disseminating information on effective coursework and 
    support services that assist students in obtaining the goals 
    described in subparagraph (B)(ii).
        ``(B) Identifying and disseminating information on best 
    practices with respect to--
            ``(i) increasing parental involvement; and
            ``(ii) preparing students, including students with 
        disabilities and students who are limited English proficient, 
        to succeed academically in, and prepare financially for, 
        postsecondary education.
        ``(7) Working to align State academic standards and curricula 
    with the expectations of postsecondary institutions and employers.
        ``(8) Developing alternatives to traditional secondary school 
    that give students a head start on attaining a recognized 
    postsecondary credential (including an industry-recognized 
    certificate, an apprenticeship, or an associate's or a bachelor's 
    degree), including school designs that give students early exposure 
    to college-level courses and experiences and allow students to earn 
    transferable college credits or an associate's degree at the same 
    time as a secondary school diploma.
        ``(9) Creating community college programs for drop-outs that 
    are personalized drop-out recovery programs that allow drop-outs to 
    complete a regular secondary school diploma and begin college-level 
    work.
    ``(d) Priority Students.--For eligible entities not using a cohort 
approach, the eligible entity shall treat as a priority student any 
student in secondary school who is--
        ``(1) eligible to be counted under section 1124(c) of the 
    Elementary and Secondary Education Act of 1965;
        ``(2) eligible for assistance under a State program funded 
    under part A or E of title IV of the Social Security Act (42 U.S.C. 
    601 et seq., 670 et seq.);
        ``(3) eligible for assistance under subtitle B of title VII of 
    the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et 
    seq.); or
        ``(4) otherwise considered by the eligible entity to be a 
    disconnected student.
    ``(e) Allowable Providers.--In the case of eligible entities 
described in section 404A(c)(1), the activities required by this 
section may be provided by service providers such as community-based 
organizations, schools, institutions of higher education, public and 
private agencies, nonprofit and philanthropic organizations, 
businesses, institutions and agencies sponsoring programs authorized 
under subpart 4, and other organizations the State determines 
appropriate.''.
    (e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-25) is 
amended--
        (1) by striking subsections (e) and (f);
        (2) by redesignating subsections (b), (c), and (d) as 
    subsections (d), (f), and (g), respectively;
        (3) by inserting after subsection (a) the following:
    ``(b) Limitation.--
        ``(1) In general.--Subject to paragraph (2), each eligible 
    entity described in section 404A(c)(1) that receives a grant under 
    this chapter shall use not less than 25 percent and not more than 
    50 percent of the grant funds for activities described in section 
    404D (except for the activity described in subsection (a)(4) of 
    such section), with the remainder of such funds to be used for a 
    scholarship program under this section in accordance with such 
    subsection.
        ``(2) Exception.--Notwithstanding paragraph (1), the Secretary 
    may allow an eligible entity to use more than 50 percent of grant 
    funds received under this chapter for such activities, if the 
    eligible entity demonstrates that the eligible entity has another 
    means of providing the students with the financial assistance 
    described in this section and describes such means in the 
    application submitted under section 404C.
    ``(c) Notification of Eligibility.--Each eligible entity providing 
scholarships under this section shall provide information on the 
eligibility requirements for the scholarships to all participating 
students upon the students' entry into the programs assisted under this 
chapter.'';
        (4) in subsection (d) (as redesignated by paragraph (2)), by 
    striking ``the lesser of'' and all that follows through the period 
    at the end of paragraph (2) of such subsection (d) and inserting 
    ``the minimum Federal Pell Grant award under section 401 for such 
    award year.'';
        (5) by inserting after subsection (d) (as redesignated by 
    paragraph (2) and amended by paragraph (4)) the following:
    ``(e) Portability of Assistance.--
        ``(1) In general.--Each eligible entity described in section 
    404A(c)(1) that receives a grant under this chapter shall hold in 
    reserve, for the students served by such grant as described in 
    section 404B(d)(1)(A) or 404D(d), an amount that is not less than 
    the minimum scholarship amount described in subsection (d), 
    multiplied by the number of students the eligible entity estimates 
    will meet the requirements of paragraph (2).
        ``(2) Requirement for portability.--Funds held in reserve under 
    paragraph (1) shall be made available to an eligible student when 
    the eligible student has--
            ``(A) completed a secondary school diploma, its recognized 
        equivalent, or another recognized alternative standard for 
        individuals with disabilities; and
            ``(B) enrolled in an institution of higher education.
        ``(3) Qualified educational expenses.--Funds available to an 
    eligible student under this subsection may be used for--
            ``(A) tuition, fees, books, supplies, and equipment 
        required for the enrollment or attendance of the eligible 
        student at an institution of higher education; and
            ``(B) in the case of an eligible student with special 
        needs, expenses for special needs services that are incurred in 
        connection with such enrollment or attendance.
        ``(4) Return of funds.--
            ``(A) Redistribution.--
                ``(i) In general.--Funds held in reserve under 
            paragraph (1) that are not used by an eligible student 
            within six years of the student's scheduled completion of 
            secondary school may be redistributed by the eligible 
            entity to other eligible students.
                ``(ii) Return of excess to the secretary.--If, after 
            meeting the requirements of paragraph (1) and, if 
            applicable, redistributing excess funds in accordance with 
            clause (i) of this subparagraph, an eligible entity has 
            funds held in reserve under paragraph (1) that remain 
            available, the eligible entity shall return such remaining 
            reserved funds to the Secretary for distribution to other 
            grantees under this chapter in accordance with the funding 
            rules described in section 404B(a).
            ``(B) Nonparticipating entity.--Notwithstanding 
        subparagraph (A), in the case of an eligible entity that does 
        not receive assistance under this subpart for six fiscal years, 
        the eligible entity shall return any funds held in reserve 
        under paragraph (1) that are not awarded or obligated to 
        eligible students to the Secretary for distribution to other 
        grantees under this chapter.''; and
        (6) in subsection (g)(4) (as redesignated by paragraph (2)), by 
    striking ``early intervention component required under section 
    404D'' and inserting ``activities required under section 404D(a)''.
    (f) 21st Century Scholar Certificates.--Section 404F (20 U.S.C. 
1070a-26) is amended by striking subsections (a) and (b) and inserting 
the following:
    ``(a) In General.--An eligible entity that receives a grant under 
this chapter shall provide certificates, to be known as 21st Century 
Scholar Certificates, to all students served by the eligible entity who 
are participating in a program under this chapter.
    ``(b) Information Required.--A 21st Century Scholar Certificate 
shall be personalized for each student and indicate the amount of 
Federal financial aid for college and the estimated amount of any 
scholarship provided under section 404E, if applicable, that a student 
may be eligible to receive.''.
    (g) Evaluation.--Section 404G(c) (20 U.S.C. 1070a-27(c)) is amended 
by adding at the end the following: ``Such evaluation shall include a 
separate analysis of--
        ``(1) the implementation of the scholarship component described 
    in section 404E; and
        ``(2) the use of methods for complying with matching 
    requirements described in paragraphs (1) and (2) of section 
    404C(c).''.
    (h) Authorization of Appropriations.--Section 404H (20 U.S.C. 
1070a-28) is amended by striking ``$200,000,000 for fiscal year 1999'' 
and all that follows through the period and inserting ``$400,000,000 
for fiscal year 2009 and such sums as may be necessary for each of the 
five succeeding fiscal years.''.
    SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.
    Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a-31 et 
seq.) is repealed.
    SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.
    (a) Appropriations Authorized.--Section 413A(b)(1) (20 U.S.C. 
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 
1999'' and all that follows through the period and inserting ``such 
sums as may be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.''.
    (b) Allowance for Books and Supplies.--Section 413D(c)(3)(D) (20 
U.S.C. 1070b-3(c)(3)(D)) is amended by striking ``$450'' and inserting 
``$600''.
    (c) Technical Correction.--Section 413D(a)(1) (20 U.S.C. 1070b-
3(a)(1)) is amended by striking ``such institution'' and all that 
follows through the period and inserting ``such institution received 
under subsections (a) and (b) of this section for fiscal year 1999 (as 
such subsections were in effect with respect to allocations for such 
fiscal year).''.
    SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.
    (a) Authorization of Appropriations.--Section 415A(b) (20 U.S.C. 
1070c(b)) is amended by striking paragraphs (1) and (2) and inserting 
the following:
        ``(1) In general.--There are authorized to be appropriated to 
    carry out this subpart $200,000,000 for fiscal year 2009 and such 
    sums as may be necessary for each of the five succeeding fiscal 
    years.
        ``(2) Reservation.--For any fiscal year for which the amount 
    appropriated under paragraph (1) exceeds $30,000,000, the excess 
    amount shall be available to carry out section 415E.''.
    (b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b)) is 
amended--
        (1) in paragraph (2), by striking ``not in excess of $5,000 per 
    academic year'' and inserting ``not to exceed the lesser of $12,500 
    or the student's cost of attendance per academic year''; and
        (2) in paragraph (9), by striking ``and'' after the semicolon;
        (3) in paragraph (10)--
            (A) by striking ``a direct appropriation of''; and
            (B) by striking the period at the end and inserting ``; 
        and''; and
        (4) by adding at the end the following:
        ``(11) provides notification to eligible students that such 
    grants are--
            ``(A) Leveraging Educational Assistance Partnership Grants; 
        and
            ``(B) funded by the Federal Government, the State, and, 
        where applicable, other contributing partners.''.
    (c) Grants for Access and Persistence.--Section 415E (20 U.S.C. 
1070c-3a) is amended to read as follows:
``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.
    ``(a) Purpose.--It is the purpose of this section to expand college 
access and increase college persistence by making allotments to States 
to enable the States to--
        ``(1) expand and enhance partnerships with institutions of 
    higher education, early information and intervention, mentoring, or 
    outreach programs, private corporations, philanthropic 
    organizations, and other interested parties, including community-
    based organizations, in order to--
            ``(A) carry out activities under this section; and
            ``(B) provide coordination and cohesion among Federal, 
        State, and local governmental and private efforts that provide 
        financial assistance to help low-income students attend an 
        institution of higher education;
        ``(2) provide need-based grants for access and persistence to 
    eligible low-income students;
        ``(3) provide early notification to low-income students of the 
    students' eligibility for financial aid; and
        ``(4) encourage increased participation in early information 
    and intervention, mentoring, or outreach programs.
    ``(b) Allotments to States.--
        ``(1) In general.--
            ``(A) Authorization.--From sums reserved under section 
        415A(b)(2) for each fiscal year, the Secretary shall make an 
        allotment to each State that submits an application for an 
        allotment in accordance with subsection (c) to enable the State 
        to pay the Federal share, as described in paragraph (2), of the 
        cost of carrying out the activities under subsection (d).
            ``(B) Determination of allotment.--In making allotments 
        under subparagraph (A), the Secretary shall consider the 
        following:
                ``(i) Continuation of award.--If a State continues to 
            meet the specifications established in such State's 
            application under subsection (c), the Secretary shall make 
            an allotment to such State that is not less than the 
            allotment made to such State for the previous fiscal year.
                ``(ii) Priority.--The Secretary shall give priority in 
            making allotments to States that meet the requirements 
            described in paragraph (2)(B)(ii).
        ``(2) Federal share.--
            ``(A) In general.--The Federal share of the cost of 
        carrying out the activities under subsection (d) for any fiscal 
        year shall not exceed 66.66 percent.
            ``(B) Different percentages.--The Federal share under this 
        section shall be determined in accordance with the following:
                ``(i) The Federal share of the cost of carrying out the 
            activities under subsection (d) shall be 57 percent if a 
            State applies for an allotment under this section in 
            partnership with any number of degree-granting institutions 
            of higher education in the State whose combined full-time 
            enrollment represents less than a majority of all students 
            attending institutions of higher education in the State, 
            and--

                    ``(I) philanthropic organizations that are located 
                in, or that provide funding in, the State; or
                    ``(II) private corporations that are located in, or 
                that do business in, the State.

                ``(ii) The Federal share of the cost of carrying out 
            the activities under subsection (d) shall be 66.66 percent 
            if a State applies for an allotment under this section in 
            partnership with any number of degree-granting institutions 
            of higher education in the State whose combined full-time 
            enrollment represents a majority of all students attending 
            institutions of higher education in the State, and--

                    ``(I) philanthropic organizations that are located 
                in, or that provide funding in, the State; or
                    ``(II) private corporations that are located in, or 
                that do business in, the State.

            ``(C) Non-federal share.--
                ``(i) In general.--The non-Federal share under this 
            section may be provided in cash or in kind, fairly 
            evaluated.
                ``(ii) In-kind contribution.--For the purpose of 
            calculating the non-Federal share under this subparagraph, 
            an in-kind contribution is a non-cash contribution that--

                    ``(I) has monetary value, such as the provision 
                of--

                        ``(aa) room and board; or
                        ``(bb) transportation passes; and

                    ``(II) helps a student meet the cost of attendance 
                at an institution of higher education.

                ``(iii) Effect on need analysis.--For the purpose of 
            calculating a student's need in accordance with part F, an 
            in-kind contribution described in clause (ii) shall not be 
            considered an asset or income of the student or the 
            student's parent.
    ``(c) Application for Allotment.--
        ``(1) In general.--
            ``(A) Submission.--A State that desires to receive an 
        allotment under this section on behalf of a partnership 
        described in paragraph (3) shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(B) Content.--An application submitted under subparagraph 
        (A) shall include the following:
                ``(i) A description of the State's plan for using the 
            allotted funds.
                ``(ii) An assurance that the State will provide 
            matching funds, in cash or in kind, from State, 
            institutional, philanthropic, or private funds, of not less 
            than 33.33 percent of the cost of carrying out the 
            activities under subsection (d). The State shall specify 
            the methods by which matching funds will be paid. A State 
            that uses non-Federal funds to create or expand 
            partnerships with entities described in subsection (a)(1), 
            in which such entities match State funds for student 
            scholarships, may apply such matching funds from such 
            entities toward fulfilling the State's matching obligation 
            under this clause.
                ``(iii) An assurance that the State will use funds 
            provided under this section to supplement, and not 
            supplant, Federal and State funds available for carrying 
            out the activities under this title.
                ``(iv) An assurance that early information and 
            intervention, mentoring, or outreach programs exist within 
            the State or that there is a plan to make such programs 
            widely available.
                ``(v) A description of the organizational structure 
            that the State has in place to administer the activities 
            under subsection (d), including a description of how the 
            State will compile information on degree completion of 
            students receiving grants under this section.
                ``(vi) A description of the steps the State will take 
            to ensure that students who receive grants under this 
            section persist to degree completion.
                ``(vii) An assurance that the State has a method in 
            place, such as acceptance of the automatic zero expected 
            family contribution determination described in section 
            479(c), to identify eligible low-income students and award 
            State grant aid to such students.
                ``(viii) An assurance that the State will provide 
            notification to eligible low-income students that grants 
            under this section are--

                    ``(I) Leveraging Educational Assistance Partnership 
                Grants; and
                    ``(II) funded by the Federal Government and the 
                State, and, where applicable, other contributing 
                partners.

        ``(2) State agency.--The State agency that submits an 
    application for a State under section 415C(a) shall be the same 
    State agency that submits an application under paragraph (1) for 
    such State.
        ``(3) Partnership.--In applying for an allotment under this 
    section, the State agency shall apply for the allotment in 
    partnership with--
            ``(A) not less than one public and one private degree-
        granting institution of higher education that are located in 
        the State, if applicable;
            ``(B) new or existing early information and intervention, 
        mentoring, or outreach programs located in the State; and
            ``(C) not less than one--
                ``(i) philanthropic organization located in, or that 
            provides funding in, the State; or
                ``(ii) private corporation located in, or that does 
            business in, the State.
        ``(4) Roles of partners.--
            ``(A) State agency.--A State agency that is in a 
        partnership receiving an allotment under this section--
                ``(i) shall--

                    ``(I) serve as the primary administrative unit for 
                the partnership;
                    ``(II) provide or coordinate non-Federal share 
                funds, and coordinate activities among partners;
                    ``(III) encourage each institution of higher 
                education in the State to participate in the 
                partnership;
                    ``(IV) make determinations and early notifications 
                of assistance as described under subsection (d)(2); and
                    ``(V) annually report to the Secretary on the 
                partnership's progress in meeting the purpose of this 
                section; and

                ``(ii) may provide early information and intervention, 
            mentoring, or outreach programs.
            ``(B) Degree-granting institutions of higher education.--A 
        degree-granting institution of higher education that is in a 
        partnership receiving an allotment under this section--
                ``(i) shall--

                    ``(I) recruit and admit participating qualified 
                students and provide such additional institutional 
                grant aid to participating students as agreed to with 
                the State agency;
                    ``(II) provide support services to students who 
                receive grants for access and persistence under this 
                section and are enrolled at such institution; and
                    ``(III) assist the State in the identification of 
                eligible students and the dissemination of early 
                notifications of assistance as agreed to with the State 
                agency; and

                ``(ii) may provide funding for early information and 
            intervention, mentoring, or outreach programs or provide 
            such services directly.
            ``(C) Programs.--An early information and intervention, 
        mentoring, or outreach program that is in a partnership 
        receiving an allotment under this section shall provide direct 
        services, support, and information to participating students.
            ``(D) Philanthropic organization or private corporation.--A 
        philanthropic organization or private corporation that is in a 
        partnership receiving an allotment under this section shall 
        provide funds for grants for access and persistence for 
        participating students, or provide funds or support for early 
        information and intervention, mentoring, or outreach programs.
    ``(d) Authorized Activities.--
        ``(1) In general.--
            ``(A) Establishment of partnership.--Each State receiving 
        an allotment under this section shall use the funds to 
        establish a partnership to award grants for access and 
        persistence to eligible low-income students in order to 
        increase the amount of financial assistance such students 
        receive under this subpart for undergraduate education 
        expenses.
            ``(B) Amount of grants.--The amount of a grant for access 
        and persistence awarded by a State to a student under this 
        section shall be not less than--
                ``(i) the average undergraduate tuition and mandatory 
            fees at the public institutions of higher education in the 
            State where the student resides that are of the same type 
            of institution as the institution of higher education the 
            student attends; minus
                ``(ii) other Federal and State aid the student 
            receives.
            ``(C) Special rules.--
                ``(i) Partnership institutions.--A State receiving an 
            allotment under this section may restrict the use of grants 
            for access and persistence under this section by awarding 
            the grants only to students attending institutions of 
            higher education that are participating in the partnership.
                ``(ii) Out-of-state institutions.--If a State provides 
            grants through another program under this subpart to 
            students attending institutions of higher education located 
            in another State, grants awarded under this section may be 
            used at institutions of higher education located in another 
            State.
        ``(2) Early notification.--
            ``(A) In general.--Each State receiving an allotment under 
        this section shall annually notify low-income students in 
        grades seven through 12 in the State, and their families, of 
        their potential eligibility for student financial assistance, 
        including an access and persistence grant, to attend an 
        institution of higher education.
            ``(B) Content of notice.--The notice under subparagraph 
        (A)--
                ``(i) shall include--

                    ``(I) information about early information and 
                intervention, mentoring, or outreach programs available 
                to the student;
                    ``(II) information that a student's eligibility for 
                a grant for access and persistence is enhanced through 
                participation in an early information and intervention, 
                mentoring, or outreach program;
                    ``(III) an explanation that student and family 
                eligibility for, and participation in, other Federal 
                means-tested programs may indicate eligibility for a 
                grant for access and persistence and other student aid 
                programs;
                    ``(IV) a nonbinding estimate of the total amount of 
                financial aid that a low-income student with a similar 
                income level may expect to receive, including an 
                estimate of the amount of a grant for access and 
                persistence and an estimate of the amount of grants, 
                loans, and all other available types of aid from the 
                major Federal and State financial aid programs;
                    ``(V) an explanation that in order to be eligible 
                for a grant for access and persistence, at a minimum, a 
                student shall--

                        ``(aa) meet the requirement under paragraph 
                    (3);
                        ``(bb) graduate from secondary school; and
                        ``(cc) enroll at an institution of higher 
                    education--
                            ``(AA) that is a partner in the 
                        partnership; or
                            ``(BB) with respect to which attendance is 
                        permitted under subsection (d)(1)(C)(ii);

                    ``(VI) information on any additional requirements 
                (such as a student pledge detailing student 
                responsibilities) that the State may impose for receipt 
                of a grant for access and persistence under this 
                section; and
                    ``(VII) instructions on how to apply for a grant 
                for access and persistence and an explanation that a 
                student is required to file a Free Application for 
                Federal Student Aid authorized under section 483(a) to 
                be eligible for such grant and assistance from other 
                Federal and State financial aid programs; and

                ``(ii) may include a disclaimer that grant awards for 
            access and persistence are contingent on--

                    ``(I) a determination of the student's financial 
                eligibility at the time of the student's enrollment at 
                an institution of higher education that is a partner in 
                the partnership or qualifies under subsection 
                (d)(1)(C)(ii);
                    ``(II) annual Federal and State spending for higher 
                education; and
                    ``(III) other aid received by the student at the 
                time of the student's enrollment at such institution of 
                higher education.

        ``(3) Eligibility.--In determining which students are eligible 
    to receive grants for access and persistence, the State shall 
    ensure that each such student complies with the following 
    subparagraph (A) or (B):
            ``(A) Meets not less than two of the following criteria, 
        with priority given to students meeting all of the following 
        criteria:
                ``(i) Has an expected family contribution equal to 
            zero, as determined under part F, or a comparable 
            alternative based upon the State's approved criteria in 
            section 415C(b)(4).
                ``(ii) Qualifies for the State's maximum undergraduate 
            award, as authorized under section 415C(b).
                ``(iii) Is participating in, or has participated in, a 
            Federal, State, institutional, or community early 
            information and intervention, mentoring, or outreach 
            program, as recognized by the State agency administering 
            activities under this section.
            ``(B) Is receiving, or has received, a grant for access and 
        persistence under this section, in accordance with paragraph 
        (5).
        ``(4) Grant award.--Once a student, including those students 
    who have received early notification under paragraph (2) from the 
    State, applies for admission to an institution that is a partner in 
    the partnership, files a Free Application for Federal Student Aid 
    and any related State form, and is determined eligible by the State 
    under paragraph (3), the State shall--
            ``(A) issue the student a preliminary award certificate for 
        a grant for access and persistence with estimated award 
        amounts; and
            ``(B) inform the student that payment of the grant for 
        access and persistence award amounts is subject to 
        certification of enrollment and award eligibility by the 
        institution of higher education.
        ``(5) Duration of award.--An eligible student who receives a 
    grant for access and persistence under this section shall receive 
    such grant award for each year of such student's undergraduate 
    education in which the student remains eligible for assistance 
    under this title, including pursuant to section 484(c), and remains 
    financially eligible as determined by the State, except that the 
    State may impose reasonable time limits to degree completion.
    ``(e) Administrative Cost Allowance.--A State that receives an 
allotment under this section may reserve not more than two percent of 
the funds made available annually through the allotment for State 
administrative functions required to carry out this section.
    ``(f) Statutory and Regulatory Relief for Institutions of Higher 
Education.--The Secretary may grant, upon the request of an institution 
of higher education that is in a partnership described in subsection 
(b)(2)(B)(ii) and that receives an allotment under this section, a 
waiver for such institution from statutory or regulatory requirements 
that inhibit the ability of the institution to successfully and 
efficiently participate in the activities of the partnership.
    ``(g) Applicability Rule.--The provisions of this subpart that are 
not inconsistent with this section shall apply to the program 
authorized by this section.
    ``(h) Maintenance of Effort Requirement.--Each State receiving an 
allotment under this section for a fiscal year shall provide the 
Secretary with an assurance that the aggregate amount expended per 
student or the aggregate expenditures by the State, from funds derived 
from non-Federal sources, for the authorized activities described in 
subsection (d) for the preceding fiscal year were not less than the 
amount expended per student or the aggregate expenditure by the State 
for the activities for the second preceding fiscal year.
    ``(i) Special Rule.--Notwithstanding subsection (h), for purposes 
of determining a State's share of the cost of the authorized activities 
described in subsection (d), the State shall consider only those 
expenditures from non-Federal sources that exceed the State's total 
expenditures for need-based grants, scholarships, and work-study 
assistance for fiscal year 1999 (including any such assistance provided 
under this subpart).
    ``(j) Continuation and Transition.--For the two-year period that 
begins on the date of enactment of the Higher Education Opportunity 
Act, the Secretary shall continue to award grants under section 415E of 
the Higher Education Act of 1965 as such section existed on the day 
before the date of enactment of the Higher Education Opportunity Act to 
States that choose to apply for grants under such predecessor section.
    ``(k) Reports.--Not later than three years after the date of 
enactment of the Higher Education Opportunity Act and annually 
thereafter, the Secretary shall submit a report describing the 
activities and the impact of the partnerships under this section to the 
authorizing committees.''.
    SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED 
      IN MIGRANT AND SEASONAL FARMWORK.
    Section 418A (20 U.S.C. 1070d-2) is amended--
        (1) in subsection (b)--
            (A) in paragraph (1)(B)(i), by striking ``parents'' and 
        inserting ``immediate family'';
            (B) in paragraph (3)(B), by inserting ``(including 
        preparation for college entrance examinations)'' after 
        ``college program'';
            (C) in paragraph (5), by striking ``weekly'';
            (D) in paragraph (7), by striking ``and'' after the 
        semicolon;
            (E) in paragraph (8)--
                (i) by inserting ``(such as transportation and child 
            care)'' after ``services''; and
                (ii) by striking the period at the end and inserting 
            ``; and''; and
            (F) by adding at the end the following:
        ``(9) other activities to improve persistence and retention in 
    postsecondary education.'';
        (2) in subsection (c)--
            (A) in paragraph (1)--
                (i) in subparagraph (A)--

                    (I) by striking ``parents'' and inserting 
                ``immediate family''; and
                    (II) by striking ``(or such part's predecessor 
                authority)'';

                (ii) in subparagraph (B)--

                    (I) in the matter preceding clause (i), by 
                inserting ``to improve placement, persistence, and 
                retention in postsecondary education,'' after 
                ``services''; and
                    (II) in clause (i), by striking ``and career'' and 
                inserting ``career, and economic education or personal 
                finance'';

                (iii) in subparagraph (E), by striking ``and'' after 
            the semicolon;
                (iv) by redesignating subparagraph (F) as subparagraph 
            (G);
                (v) by inserting after subparagraph (E) the following:
        ``(F) internships; and''; and
                (vi) in subparagraph (G) (as redesignated by clause 
            (iv)), by striking ``support services'' and inserting 
            ``essential supportive services (such as transportation and 
            child care)'' ; and
            (B) in paragraph (2)--
                (i) in subparagraph (A), by striking ``and'' after the 
            semicolon;
                (ii) in subparagraph (B), by striking the period at the 
            end and inserting ``, and coordinating such services, 
            assistance, and aid with other non-program services, 
            assistance, and aid, including services, assistance, and 
            aid provided by community-based organizations, which may 
            include mentoring and guidance; and''; and
                (iii) by adding at the end the following:
        ``(C) for students attending two-year institutions of higher 
    education, encouraging the students to transfer to four-year 
    institutions of higher education, where appropriate, and monitoring 
    the rate of transfer of such students.'';
        (3) in subsection (e), by striking ``section 402A(c)(1)'' and 
    inserting ``section 402A(c)(2)'';
        (4) in subsection (f)--
            (A) in paragraph (1), by striking ``$150,000'' and 
        inserting ``$180,000''; and
            (B) in paragraph (2), by striking ``$150,000'' and 
        inserting ``$180,000'';
        (5) by redesignating subsections (g) and (h) as subsections (h) 
    and (i), respectively;
        (6) by inserting after subsection (f) the following:
    ``(g) Reservation and Allocation of Funds.--From the amounts made 
available under subsection (i), the Secretary--
        ``(1) may reserve not more than a total of \1/2\ of one percent 
    for outreach activities, technical assistance, and professional 
    development programs relating to the programs under subsection (a);
        ``(2) for any fiscal year for which the amount appropriated to 
    carry out this section is equal to or greater than $40,000,000, 
    shall, in awarding grants from the remainder of such amounts--
            ``(A) make available not less than 45 percent of such 
        remainder for the high school equivalency programs and not less 
        than 45 percent of such remainder for the college assistance 
        migrant programs;
            ``(B) award the rest of such remainder for high school 
        equivalency programs or college assistance migrant programs 
        based on the number, quality, and promise of the applications; 
        and
            ``(C) consider the need to provide an equitable geographic 
        distribution of such grants; and
        ``(3) for any fiscal year for which the amount appropriated to 
    carry out this section is less than $40,000,000, shall, in awarding 
    grants from the remainder of such amounts make available the same 
    percentage of funds to the high school equivalency program and to 
    the college assistance migrant program as was made available for 
    each such program for the fiscal year preceding the fiscal year for 
    which the grant was made.'';
        (7) by striking subsection (h) (as redesignated by paragraph 
    (5)) and inserting the following:
    ``(h) Data Collection.--The Secretary shall--
        ``(1) annually collect data on persons receiving services 
    authorized under this subpart regarding such persons' rates of 
    secondary school graduation, entrance into postsecondary education, 
    and completion of postsecondary education, as applicable;
        ``(2) not less often than once every two years, prepare and 
    submit to the authorizing committees a report based on the most 
    recently available data under paragraph (1); and
        ``(3) make such report available to the public.''; and
        (8) by striking subsection (i) (as redesignated by paragraph 
    (5)) and inserting the following:
    ``(i) Authorization of Appropriations.--For the purpose of making 
grants and contracts under this section, there are authorized to be 
appropriated $75,000,000 for fiscal year 2009 and such sums as may be 
necessary for the each of the five succeeding fiscal years.''.
    SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.
    (a) Eligibility of Scholars.--Section 419F(a) (20 U.S.C. 1070d-
36(a)) is amended by inserting ``(or a home school, whether treated as 
a home school or a private school under State law)'' after ``public or 
private secondary school''.
    (b) Authorization of Appropriations.--Section 419K (20 U.S.C. 
1070d-41) is amended by striking ``$45,000,000 for fiscal year 1999'' 
and all that follows through the period and inserting ``such sums as 
may be necessary for fiscal year 2009 and each of the five succeeding 
fiscal years.''.
    SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
    (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
1070e(b)(2)(B)) is amended--
        (1) by striking ``A grant'' and inserting the following:
                ``(i) In general.--Except as provided in clause (ii), a 
            grant''; and
        (2) by adding at the end the following:
                ``(ii) Increase trigger.--For any fiscal year for which 
            the amount appropriated under the authority of subsection 
            (g) is equal to or greater than $20,000,000, a grant under 
            this section shall be awarded in an amount that is not less 
            than $30,000.''.
    (b) Eligible Institutions.--Section 419N(b)(4) (20 U.S.C. 
1070e(b)(4)) is amended by inserting ``, except that for any fiscal 
year for which the amount appropriated to carry out this section is 
equal to or greater than $20,000,000, this sentence shall be applied by 
substituting `$250,000' for `$350,000''' before the period.
    (c) Definition of Low-Income Student.--Paragraph (7) of section 
419N(b) (20 U.S.C. 1070e(b)) is amended to read as follows:
        ``(7) Definition of low-income student.--For the purpose of 
    this section, the term `low-income student' means a student--
            ``(A) who is eligible to receive a Federal Pell Grant for 
        the award year for which the determination is made; or
            ``(B) who would otherwise be eligible to receive a Federal 
        Pell Grant for the award year for which the determination is 
        made, except that the student fails to meet the requirements 
        of--
                ``(i) section 401(c)(1) because the student is enrolled 
            in a graduate or first professional course of study; or
                ``(ii) section 484(a)(5) because the student is in the 
            United States for a temporary purpose.''.
    (d) Publicity.--Section 419N(b) (20 U.S.C. 1070e(b)) is further 
amended by adding at the end the following new paragraph:
        ``(8) Publicity.--The Secretary shall publicize the 
    availability of grants under this section in appropriate 
    periodicals, in addition to publication in the Federal Register, 
    and shall inform appropriate educational organizations of such 
    availability.''.
    (e) Reporting Requirements.--Section 419N(e) (20 U.S.C. 1070e(e)) 
is amended--
        (1) in paragraph (1)(A), by striking ``18 months,'' and all 
    that follows through the end and inserting ``annually.''; and
        (2) in paragraph (2)--
            (A) by striking ``the third annual grant payment'' and 
        inserting ``continuation awards''; and
            (B) by striking ``the 18-month report'' and inserting ``the 
        reports''.
    (f) Authorization of Appropriations.--Section 419N(g) (20 U.S.C. 
1070e(g)) is amended by striking ``$45,000,000 for fiscal year 1999'' 
and all that follows through the period and inserting ``such sums as 
may be necessary for fiscal year 2009 and each of the five succeeding 
fiscal years.''.
    SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.
    Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.) is 
repealed.
    SEC. 412. TEACH GRANTS.
    (a) Amendments.--Subpart 9 of part A of title IV (20 U.S.C. 1070g 
et seq.) is amended--
        (1) in section 420N (20 U.S.C. 1070g-2)--
            (A) in subsection (b)--
                (i) in paragraph (1)(E), by striking ``and'' after the 
            semicolon;
                (ii) in paragraph (2), by striking the period at the 
            end and inserting ``; and''; and
                (iii) by adding at the end the following new paragraph:
        ``(3) contains, or is accompanied by, a plain-language 
    disclosure form developed by the Secretary that clearly describes 
    the nature of the TEACH Grant award, the service obligation, and 
    the loan repayment requirements that are the consequence of the 
    failure to complete the service obligation.''; and
            (B) by adding at the end the following new subsection:
    ``(d) Additional Administrative Provisions.--
        ``(1) Change of high-need designation.--If a recipient of an 
    initial grant under this subpart has acquired an academic degree, 
    or expertise, in a field that was, at the time of the recipient's 
    application for that grant, designated as high need in accordance 
    with subsection (b)(1)(C)(vii), but is no longer so designated, the 
    grant recipient may fulfill the service obligation described in 
    subsection (b)(1) by teaching in that field.
        ``(2) Extenuating circumstances.--The Secretary shall 
    establish, by regulation, categories of extenuating circumstances 
    under which a recipient of a grant under this subpart who is unable 
    to fulfill all or part of the recipient's service obligation may be 
    excused from fulfilling that portion of the service obligation.''; 
    and
        (2) by adding at the end the following new section:
``SEC. 420P. PROGRAM REPORT.
    ``Not later than two years after the date of enactment of the 
Higher Education Opportunity Act and every two years thereafter, the 
Secretary shall prepare and submit to the authorizing committees a 
report on TEACH grants with respect to the schools and students served 
by recipients of such grants. Such report shall take into consideration 
information related to--
        ``(1) the number of TEACH grant recipients;
        ``(2) the degrees obtained by such recipients;
        ``(3) the location, including the school, local educational 
    agency, and State, where the recipients completed the service 
    agreed to under section 420N(b) and the subject taught;
        ``(4) the duration of such service; and
        ``(5) any other data necessary to conduct such evaluation.''.
    (b) Effective Date.--The amendments made by subsection (a)(1) shall 
take effect on July 1, 2010.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

    SEC. 421. LIMITATIONS ON AMOUNTS OF LOANS COVERED BY FEDERAL 
      INSURANCE.
    Section 424(a) (20 U.S.C. 1074(a)) is amended--
        (1) by striking ``2012'' and inserting ``2014''; and
        (2) by striking ``2016'' and inserting ``2018''.
    SEC. 422. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.
    (a) Definitions.--
        (1) Amendments.--Subparagraph (C) of section 428(a)(2) (20 
    U.S.C. 1078(a)(2)) is amended to read as follows:
        ``(C) For the purpose of this paragraph--
            ``(i) a student's cost of attendance shall be determined 
        under section 472;
            ``(ii) a student's estimated financial assistance means, 
        for the period for which the loan is sought--
                ``(I) the amount of assistance such student will 
            receive under subpart 1 of part A (as determined in 
            accordance with section 484(b)), subpart 3 of part A, and 
            parts C and E; plus
                ``(II) other scholarship, grant, or loan assistance, 
            but excluding--

                    ``(aa) any national service education award or 
                post-service benefit under title I of the National and 
                Community Service Act of 1990; and
                    ``(bb) any veterans' education benefits as defined 
                in section 480(c); and

            ``(iii) the determination of need and of the amount of a 
        loan by an eligible institution under subparagraph (B) with 
        respect to a student shall be calculated in accordance with 
        part F.''.
        (2) Effective date.--The amendments made by paragraph (1) shall 
    take effect on July 1, 2010.
    (b) Duration of Authority To Make Interest Subsidized Loans.--
Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended--
        (1) by striking ``2012'' and inserting ``2014''; and
        (2) by striking ``2016'' and inserting ``2018''.
    (c) Insurance Program Agreements.--
        (1) Deferment information requirements.--Section 428(b)(1)(Y) 
    (20 U.S.C. 1078(b)(1)(Y)) is amended--
            (A) by striking clause (i) and inserting the following:
                ``(i) the lender shall determine the eligibility of a 
            borrower for a deferment described in subparagraph (M)(i) 
            based on--

                    ``(I) receipt of a request for deferment from the 
                borrower and documentation of the borrower's 
                eligibility for the deferment;
                    ``(II) receipt of a newly completed loan 
                application that documents the borrower's eligibility 
                for a deferment;
                    ``(III) receipt of student status information 
                documenting that the borrower is enrolled on at least a 
                half-time basis; or
                    ``(IV) the lender's confirmation of the borrower's 
                half-time enrollment status through use of the National 
                Student Loan Data System, if the confirmation is 
                requested by the institution of higher education;'';

            (B) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
                ``(iii) the lender shall, at the time the lender grants 
            a deferment to a borrower who received a loan under section 
            428H and is eligible for a deferment under subparagraph (M) 
            of this paragraph, provide information to the borrower to 
            assist the borrower in understanding the impact of the 
            capitalization of interest on the borrower's loan principal 
            and on the total amount of interest to be paid during the 
            life of the loan.''.
        (2) Transfer information requirements.--Section 428(b)(2)(F)(i) 
    (20 U.S.C. 1078(b)(2)(F)(i)) is amended--
            (A) in subclause (III), by striking ``and'' after the 
        semicolon;
            (B) in subclause (IV), by striking ``and'' after the 
        semicolon; and
            (C) by adding at the end the following:

                    ``(V) the effective date of the transfer;
                    ``(VI) the date on which the current servicer (as 
                of the date of the notice) will stop accepting 
                payments; and
                    ``(VII) the date on which the new servicer will 
                begin accepting payments; and''.

    (d) Restrictions on Inducements, Payments, Mailings, and 
Advertising.--Paragraph (3) of section 428(b) (20 U.S.C. 1078(b)(3)) is 
amended to read as follows:
        ``(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 payment or reimbursement, 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 as part of the guaranty agency's 
            lender-of-last-resort program pursuant to section 428(j)), 
            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 student loan application forms to students enrolled 
        in secondary schools or postsecondary educational institutions, 
        or to the families 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 
        such institution is required to perform under this title, 
        except that the guaranty agency may perform functions on behalf 
        of such institution in accordance with section 485(b);
            ``(D) pay, on behalf of an institution of higher education, 
        another person to perform any function that such institution is 
        required to perform under this title, except that the guaranty 
        agency may perform functions on behalf of such institution in 
        accordance with section 485(b); 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.''.
    (e) Information Regarding Income-Based Repayment Plans.--
        (1) In general.--Section 428(b)(9)(A) (20 U.S.C. 1078(b)(9)(A)) 
    is amended--
            (A) in clause (iii), by striking ``and'' after the 
        semicolon;
            (B) in clause (iv), by striking the period at the end and 
        inserting ``; and''; and
            (C) by adding at the end the following:
                ``(v) beginning July 1, 2009, an income-based repayment 
            plan that enables a borrower who has a partial financial 
            hardship to make a lower monthly payment in accordance with 
            section 493C, except that the plan described in this clause 
            shall not be available to a borrower for a loan under 
            section 428B made on behalf of a dependent student or for a 
            consolidation loan under section 428C, if the proceeds of 
            such loan were used to discharge the liability of a loan 
            under section 428B made on behalf of a dependent 
            student.''.
        (2) Conforming amendment.--Section 428(b)(1)(L)(i) (20 U.S.C. 
    1078(b)(1)(L)(i)) is amended by striking ``clause (ii) or (iii)'' 
    and inserting ``clause (ii), (iii), or (v)''.
    (f) Forbearance Information Requirements in Guaranty Agreements.--
Section 428(c) (20 U.S.C. 1078(c)) is amended--
        (1) in paragraph (2)(H)(i), by striking ``preclaims'' and 
    inserting ``default aversion''; and
        (2) in paragraph (3)(C)--
            (A) in clause (i), by striking ``and'' after the semicolon;
            (B) in clause (ii), by striking ``and'' after the 
        semicolon; and
            (C) by inserting after clause (ii) the following:
                ``(iii) the lender shall, at the time of granting a 
            borrower forbearance, provide information to the borrower 
            to assist the borrower in understanding the impact of 
            capitalization of interest on the borrower's loan principal 
            and total amount of interest to be paid during the life of 
            the loan; and
                ``(iv) the lender shall contact the borrower not less 
            often than once every 180 days during the period of 
            forbearance to inform the borrower of--

                    ``(I) the amount of unpaid principal and the amount 
                of interest that has accrued since the last statement 
                of such amounts provided to the borrower by the lender;
                    ``(II) the fact that interest will accrue on the 
                loan for the period of forbearance;
                    ``(III) the amount of interest that will be 
                capitalized, and the date on which capitalization will 
                occur;
                    ``(IV) the option of the borrower to pay the 
                interest that has accrued before the interest is 
                capitalized; and
                    ``(V) the borrower's option to discontinue the 
                forbearance at any time; and''.

    (g) Applicability of Usury Laws.--
        (1) Amendment.--Section 428(d) (20 U.S.C. 1078(d)) is amended 
    by inserting ``and section 207 of the Servicemembers Civil Relief 
    Act (50 U.S.C. App. 527)'' after ``this Act''.
        (2) Conforming amendment.--Section 438 (20 U.S.C. 1087-1) is 
    amended by adding at the end the following new subsection:
    ``(g) Special Rule.--With respect to any loan made under this part 
for which the interest rate is determined under the Servicemembers 
Civil Relief Act (50 U.S.C. App. 527), the applicable interest rate to 
be subtracted in calculating the special allowance for such loan under 
this section shall be the interest rate determined under that Act for 
such loan.''.
        (3) Effective dates.--The amendment made by paragraph (1) shall 
    take effect on the date of enactment of this Act, and the amendment 
    made by paragraph (2) shall take effect for loans for which the 
    first disbursement is made on or after July 1, 2008.
    (h) Repeal of Duplicative Notice Requirement.--Subsection (e) of 
section 428 (20 U.S.C. 1078(e)) is repealed.
    (i) Information on Defaults.--Section 428(k) (20 U.S.C. 1078(k)) is 
amended by adding at the end the following:
        ``(4) Provision of information to borrowers in default.--Each 
    guaranty agency that has received a default claim from a lender 
    regarding a borrower, shall provide the borrower in default, on not 
    less than two separate occasions, with a notice, in simple and 
    understandable terms, of not less than the following information:
            ``(A) The options available to the borrower to remove the 
        borrower's loan from default.
            ``(B) The relevant fees and conditions associated with each 
        option.''.
    (j) Authority to Require Income-Based Repayment.--Section 428(m) 
(20 U.S.C. 1078(m)) is amended--
        (1) in the subsection heading, by inserting ``and Income-
    Based'' after ``Income Contingent'';
        (2) in paragraph (1)--
            (A) by inserting ``or income-based repayment plan'' before 
        ``, the terms and conditions''; and
            (B) by inserting ``or an income-based repayment plan under 
        section 493C, as the case may be'' before the period at the 
        end; and
        (3) in the paragraph heading of paragraph (2), by inserting 
    ``or income-based'' after ``income contingent''.
    SEC. 423. VOLUNTARY FLEXIBLE AGREEMENTS.
    Section 428A(a) (20 U.S.C. 1078-1(a)) is amended by adding at the 
end the following:
        ``(3) Report required.--
            ``(A) In general.--The Secretary, in consultation with the 
        guaranty agencies operating under voluntary flexible 
        agreements, shall report on an annual basis to the authorizing 
        committees regarding the program outcomes that the voluntary 
        flexible agreements have had with respect to--
                ``(i) program integrity and program and cost 
            efficiencies, delinquency prevention, and default aversion, 
            including a comparison of such outcomes to such outcomes 
            for each guaranty agency operating under an agreement under 
            subsection (b) or (c) of section 428;
                ``(ii) consumer education programs described in section 
            433A; and
                ``(iii) the availability and delivery of student 
            financial aid.
            ``(B) Contents.--Each report described in subparagraph (A) 
        shall include--
                ``(i) a description of each voluntary flexible 
            agreement and the performance goals established by the 
            Secretary for each agreement;
                ``(ii) a list of--

                    ``(I) guaranty agencies operating under voluntary 
                flexible agreements;
                    ``(II) the specific statutory or regulatory waivers 
                provided to each such guaranty agency; and
                    ``(III) any other waivers provided to other 
                guaranty agencies under paragraph (1);

                ``(iii) a description of the standards by which each 
            guaranty agency's performance under the guaranty agency's 
            voluntary flexible agreement was assessed and the degree to 
            which each guaranty agency achieved the performance 
            standards;
                ``(iv) an analysis of the fees paid by the Secretary, 
            and the costs and efficiencies achieved under each 
            voluntary flexible agreement; and
                ``(v) an identification of promising practices for 
            program improvement that could be replicated by other 
            guaranty agencies.''.
    SEC. 424. FEDERAL PLUS LOANS.
    (a) Amendments.--Section 428B (20 U.S.C. 1078-2) is amended--
        (1) in subsection (a)(3)(B)(i), by striking subclause (II) and 
    inserting the following:
                ``(II) does not otherwise have an adverse credit 
            history, as determined by the lender in accordance with the 
            regulations promulgated pursuant to paragraph (1)(A), as 
            such regulations were in effect on the day before the date 
            of enactment of the Ensuring Continued Access to Student 
            Loans Act of 2008.''; and
        (2) in subsection (d), by striking paragraphs (1) and (2) and 
    inserting the following:
        ``(1) Commencement of repayment.--Repayment of principal on 
    loans made under this section shall commence not later than 60 days 
    after the date such loan is disbursed by the lender, subject to 
    deferral--
            ``(A)(i) during any period during which the parent borrower 
        or the graduate or professional student borrower meets the 
        conditions required for a deferral under section 427(a)(2)(C) 
        or 428(b)(1)(M); and
            ``(ii) upon the request of the parent borrower, during any 
        period during which the student on whose behalf the loan was 
        borrowed by the parent borrower meets the conditions required 
        for a deferral under section 427(a)(2)(C)(i)(I) or 
        428(b)(1)(M)(i)(I); and
            ``(B)(i) in the case of a parent borrower, upon the request 
        of the parent borrower, during the 6-month period beginning on 
        the later of--
                ``(I) the day after the date the student on whose 
            behalf the loan was borrowed ceases to carry at least one-
            half the normal full-time academic workload (as determined 
            by the institution); or
                ``(II) if the parent borrower is also a student, the 
            day after the date such parent borrower ceases to carry at 
            least one-half such a workload; and
            ``(ii) in the case of a graduate or professional student 
        borrower, during the 6-month period beginning on the day after 
        the date such student ceases to carry at least one-half the 
        normal full-time academic workload (as determined by the 
        institution).
        ``(2) Capitalization of interest.--
            ``(A) In general.--Interest on loans made under this 
        section for which payments of principal are deferred pursuant 
        to paragraph (1) shall, if agreed upon by the borrower and the 
        lender--
                ``(i) be paid monthly or quarterly; or
                ``(ii) be added to the principal amount of the loan not 
            more frequently than quarterly by the lender.
            ``(B) Insurable limits.--Capitalization of interest under 
        this paragraph shall not be deemed to exceed the annual 
        insurable limit on account of the borrower.''.
    (b) Conforming Amendment.--Section 428(b)(7)(C) (20 U.S.C. 
1078(b)(7)(C)) is amended by striking ``section'' and all that follows 
through ``428C'' and inserting ``section 428B or 428C''.
    (c) Effective Date.--The amendments made by this section shall take 
effect for loans for which the first disbursement is made on or after 
July 1, 2008.
    SEC. 425. FEDERAL CONSOLIDATION LOANS.
    (a) Eligible Borrower.--Section 428C(a)(3)(B)(i)(V) (20 U.S.C. 
1078-3(a)(3)(B)(i)(V)) is amended--
        (1) in item (aa), by striking ``or'' after the semicolon;
        (2) in item (bb), by striking the period and inserting ``; 
    or''; and
        (3) by adding at the end the following:
                ``(cc) for the purpose of using the no accrual of 
            interest for active duty service members benefit offered 
            under section 455(o).''.
    (b) Consolidation Loan Lender Agreements.--
        (1) In general.--Section 428C(b)(1) (20 U.S.C. 1078-3(b)(1)) is 
    amended--
            (A) in subparagraph (E), by striking ``and'' after the 
        semicolon;
            (B) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (C) by inserting after subparagraph (E) the following:
            ``(F) that the lender shall disclose to a prospective 
        borrower, in simple and understandable terms, at the time the 
        lender provides an application for a consolidation loan--
                ``(i) whether consolidation would result in a loss of 
            loan benefits under this part or part D, including loan 
            forgiveness, cancellation, and deferment;
                ``(ii) with respect to Federal Perkins Loans under part 
            E--

                    ``(I) that if a borrower includes a Federal Perkins 
                Loan under part E in the consolidation loan, the 
                borrower will lose all interest-free periods that would 
                have been available for the Federal Perkins Loan, such 
                as--

                        ``(aa) the periods during which no interest 
                    accrues on such loan while the borrower is enrolled 
                    in school at least half-time;
                        ``(bb) the grace period under section 
                    464(c)(1)(A); and
                        ``(cc) the periods during which the borrower's 
                    student loan repayments are deferred under section 
                    464(c)(2);

                    ``(II) that if a borrower includes a Federal 
                Perkins Loan in the consolidation loan, the borrower 
                will no longer be eligible for cancellation of part or 
                all of the Federal Perkins Loan under section 465(a); 
                and
                    ``(III) the occupations listed in section 465 that 
                qualify for Federal Perkins Loan cancellation under 
                section 465(a);

                ``(iii) the repayment plans that are available to the 
            borrower;
                ``(iv) the options of the borrower to prepay the 
            consolidation loan, to pay such loan on a shorter schedule, 
            and to change repayment plans;
                ``(v) that borrower benefit programs for a 
            consolidation loan may vary among different lenders;
                ``(vi) the consequences of default on the consolidation 
            loan; and
                ``(vii) that by applying for a consolidation loan, the 
            borrower is not obligated to agree to take the 
            consolidation loan; and''.
        (2) Consolidation loans.--Section 428C(b)(5) (20 U.S.C. 1078-
    3(b)(5)) is amended--
            (A) by inserting after the first sentence the following: 
        ``In addition, in the event that a borrower chooses to obtain a 
        consolidation loan for the purposes of using the no accrual of 
        interest for active duty service members program offered under 
        section 455(o), the Secretary shall offer a Federal Direct 
        Consolidation loan to any such borrower who applies for 
        participation in such program.''; and
            (B) by striking ``Such direct consolidation loan'' and 
        inserting ``A direct consolidation loan offered under this 
        paragraph''.
        (3) Conforming amendment.--Section 455(g) (20 U.S.C. 1087e(g)) 
    is amended by striking ``section 428C(b)(1)(F)'' and inserting 
    ``section 428C(b)(1)(G)''.
    (c) Technical Amendment.--Section 203(b)(2)(C) of the College Cost 
Reduction and Access Act (121 Stat. 794) is amended by striking ``the 
second sentence'' and inserting ``the third sentence''.
    (d) Income-Based Repayment.--
        (1) Amendments.--Section 428C(c) (20 U.S.C. 1078-3(c)) is 
    amended--
            (A) in the matter preceding clause (i) of paragraph 
        (2)(A)--
                (i) by striking ``or income-sensitive'' and inserting 
            ``income-sensitive, or income-based''; and
                (ii) by inserting ``or income-based'' after ``such 
            income-sensitive''; and
            (B) in paragraph (3)--
                (i) in subparagraph (A)--

                    (I) by inserting ``except in the case of an income-
                based repayment schedule under section 493C'', before 
                ``a repayment''; and
                    (II) by striking ``and'' after the semicolon;

                (ii) in subparagraph (B), by striking the period at the 
            end and inserting ``; and''; and
                (iii) by adding at the end the following:
            ``(C) an income-based repayment schedule under section 493C 
        shall not be available to a consolidation loan borrower who 
        used the proceeds of the loan to discharge the liability on a 
        loan under section 428B, or a Federal Direct PLUS loan, made on 
        behalf of a dependent student.''.
        (2) Effective date.--The amendments made by this subsection 
    shall take effect on July 1, 2009.
    (e) Extension of Consolidation Loan Authority.--Section 428C(e) (20 
U.S.C. 1078-3(e)) is amended by striking ``2012'' and inserting 
``2014''.
    SEC. 426. DEFAULT REDUCTION PROGRAM.
    Section 428F (20 U.S.C. 1078-6) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1)(A), by adding at the end the 
        following: ``Upon the sale of the loan to an eligible lender, 
        the guaranty agency or other holder of the loan shall request 
        any consumer reporting agency to which the guaranty agency or 
        holder, as applicable, reported the default of the loan, to 
        remove the record of default from the borrower's credit 
        history.''; and
            (B) by adding at the end the following:
        ``(5) Limitation.--A borrower may obtain the benefits available 
    under this subsection with respect to rehabilitating a loan only 
    one time per loan.''; and
        (2) by adding at the end the following:
    ``(c) Financial and Economic Literacy.--Each program described in 
subsection (b) shall include making available financial and economic 
education materials for a borrower who has rehabilitated a loan.''.
    SEC. 427. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.
    (a) Special Rule.--Section 428G(a) (20 U.S.C. 1078-7(a)) is amended 
by adding at the end the following:
        ``(4) Amendment to special rule.--Beginning on October 1, 2011, 
    the special rule under paragraph (3) shall be applied by 
    substituting `15 percent' for `10 percent'.''.
    (b) Requirements for Disbursements to First Year Students.--Section 
428G(b) (20 U.S.C. 1078-7(b)) is amended by adding at the end the 
following:
        ``(3) Amendment to cohort default rate exemption.--Beginning on 
    October 1, 2011, the exemption to the requirements of paragraph (1) 
    in the second sentence of such paragraph shall be applied by 
    substituting `15 percent' for `10 percent'.''.
    SEC. 428. UNSUBSIDIZED STAFFORD LOAN LIMITS.
    (a) Amendments.--Section 428H(d) (20 U.S.C. 1078-8(d)) is amended--
        (1) in paragraph (2)--
            (A) in the paragraph heading, by striking ``Graduate and 
        professional students'' and inserting ``Graduate, professional, 
        and independent postbaccalaureate students''; and
            (B) in subparagraph (A)--
                (i) in the matter preceding clause (i), by inserting 
            ``, or a student described in clause (ii),'' after 
            ``graduate or professional student''; and
                (ii) by striking clause (ii) and inserting the 
            following:
                ``(ii) notwithstanding paragraph (4), in the case of an 
            independent student, or a dependent student whose parents 
            are unable to borrow under section 428B or the Federal 
            Direct PLUS Loan Program, who has obtained a baccalaureate 
            degree and who is enrolled in coursework specified in 
            paragraph (3)(B) or (4)(B) of section 484(b)--

                    ``(I) $7,000 for coursework necessary for 
                enrollment in a graduate or professional program; and
                    ``(II) $7,000 for coursework necessary for a 
                professional credential or certification from a State 
                required for employment as a teacher in an elementary 
                or secondary school,''; and

        (2) in paragraph (4)(A), by striking clause (iii) and inserting 
    the following:
                ``(iii) in the case of such a student enrolled in 
            coursework specified in--

                    ``(I) section 484(b)(3)(B), $6,000; or
                    ``(II) section 484(b)(4)(B), $7,000.''.

    (b) Effective Date.--The amendments made by this section shall take 
effect for loans for which the first disbursement is made on or after 
July 1, 2008.
    SEC. 429. LOAN FORGIVENESS FOR TEACHERS EMPLOYED BY EDUCATIONAL 
      SERVICE AGENCIES.
    Section 428J (20 U.S.C. 1078-10) is amended--
        (1) in subsection (b)(1)(A)--
            (A) by inserting ``or location'' after ``a school''; and
            (B) by inserting ``or locations'' after ``schools'';
        (2) in subsection (c)(1), by striking the second sentence;
        (3) in subsection (c)(3)(B)(iii), by inserting ``or, in the 
    case of a teacher who is employed by an educational service agency, 
    as certified by the chief administrative officer of such agency,'' 
    after ``borrower is employed,''; and
        (4) in subsection (g), by striking paragraph (2) and inserting 
    the following:
        ``(2) Prevention of double benefits.--No borrower may, for the 
    same service, receive a benefit under both this section and--
            ``(A) section 428K;
            ``(B) section 455(m);
            ``(C) section 460; or
            ``(D) subtitle D of title I of the National and Community 
        Service Act of 1990 (42 U.S.C. 12571 et seq.).''.
    SEC. 430. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
    Section 428K (20 U.S.C. 1078-11) is amended to read as follows:
``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
    ``(a) Program Authorized.--
        ``(1) Loan forgiveness authorized.--The Secretary shall 
    forgive, in accordance with this section, the qualified loan amount 
    described in subsection (c) of the student loan obligation of a 
    borrower who--
            ``(A) is employed full-time in an area of national need, as 
        described in subsection (b); and
            ``(B) is not in default on a loan for which the borrower 
        seeks forgiveness.
        ``(2) Method of loan forgiveness.--To provide loan forgiveness 
    under paragraph (1), the Secretary is authorized to carry out a 
    program--
            ``(A) through the holder of the loan, to assume the 
        obligation to repay a qualified loan amount for a loan made, 
        insured, or guaranteed under this part (other than an excepted 
        PLUS loan or an excepted consolidation loan (as such terms are 
        defined in section 493C(a))); and
            ``(B) to cancel a qualified loan amount for a loan made 
        under part D of this title (other than an excepted PLUS loan or 
        an excepted consolidation loan).
        ``(3) Regulations.--The Secretary is authorized to issue such 
    regulations as may be necessary to carry out this section.
    ``(b) Areas of National Need.--For purposes of this section, an 
individual is employed in an area of national need if the individual 
meets the requirements of one of the following:
        ``(1) Early childhood educators.--The individual is employed 
    full-time as an early childhood educator.
        ``(2) Nurses.--The individual is employed full-time--
            ``(A) as a nurse in a clinical setting; or
            ``(B) as a member of the nursing faculty at an accredited 
        school of nursing (as those terms are defined in section 801 of 
        the Public Health Service Act (42 U.S.C. 296)).
        ``(3) Foreign language specialists.--The individual--
            ``(A) has obtained a baccalaureate or advanced degree in a 
        critical foreign language; and
            ``(B) is employed full-time--
                ``(i) in an elementary school or secondary school as a 
            teacher of a critical foreign language;
                ``(ii) in an agency of the United States Government in 
            a position that regularly requires the use of such critical 
            foreign language; or
                ``(iii) in an institution of higher education as a 
            faculty member or instructor teaching a critical foreign 
            language.
        ``(4) Librarians.--The individual is employed full-time as a 
    librarian in--
            ``(A) a public library that serves a geographic area within 
        which the public schools have a combined average of 30 percent 
        or more of the schools' total student enrollments composed of 
        children meeting a measure of poverty under section 1113(a)(5) 
        of the Elementary and Secondary Education Act of 1965; or
            ``(B) a school that qualifies under section 465(a)(2)(A) 
        for loan cancellation for Perkins loan recipients who teach in 
        such a school.
        ``(5) Highly qualified teachers serving students who are 
    limited english proficient, low-income communities, and 
    underrepresented populations.--The individual--
            ``(A) is highly qualified, as such term is defined in 
        section 9101 of the Elementary and Secondary Education Act of 
        1965; and
            ``(B) is employed full-time--
                ``(i) as a teacher educating students who are limited 
            English proficient;
                ``(ii) as a teacher in a school that qualifies under 
            section 465(a)(2)(A) for loan cancellation for Perkins loan 
            recipients who teach in such a school;
                ``(iii) as a teacher and is an individual from an 
            underrepresented population in the teaching profession, as 
            determined by the Secretary; or
                ``(iv) as a teacher in an educational service agency, 
            as such term is defined in section 9101 of the Elementary 
            and Secondary Education Act of 1965.
        ``(6) Child welfare workers.--The individual--
            ``(A) has obtained a degree in social work or a related 
        field with a focus on serving children and families; and
            ``(B) is employed full-time in public or private child 
        welfare services.
        ``(7) Speech-language pathologists and audiologists.--The 
    individual--
            ``(A) is employed full-time as a speech-language 
        pathologist or audiologist in an eligible preschool program or 
        a school that qualifies under section 465(a)(2)(A) for loan 
        cancellation for Perkins loan recipients who teach in such a 
        school; and
            ``(B) has, at a minimum, a graduate degree in speech-
        language pathology, audiology, or communication sciences and 
        disorders.
        ``(8) School counselors.--The individual is employed full-time 
    as a school counselor (as such term is defined in section 5421(e) 
    of the Elementary and Secondary Education Act of 1965), in a school 
    that qualifies under section 465(a)(2)(A) for loan cancellation for 
    Perkins loan recipients who teach in such a school.
        ``(9) Public sector employees.--The individual is employed 
    full-time in--
            ``(A) public safety (including as a first responder, 
        firefighter, police officer, or other law enforcement or public 
        safety officer);
            ``(B) emergency management (including as an emergency 
        medical technician);
            ``(C) public health (including full-time professionals 
        engaged in health care practitioner occupations and health care 
        support occupations, as such terms are defined by the Bureau of 
        Labor Statistics); or
            ``(D) public interest legal services (including 
        prosecution, public defense, or legal advocacy in low-income 
        communities at a nonprofit organization).
        ``(10) Nutrition professionals.--The individual--
            ``(A) is a licensed, certified, or registered dietician who 
        has completed a degree in a relevant field; and
            ``(B) is employed full-time as a dietician with an agency 
        of the special supplemental nutrition program for women, 
        infants, and children under section 17 of the Child Nutrition 
        Act of 1966 (42 U.S.C. 1786).
        ``(11) Medical specialists.--The individual--
            ``(A) has received a degree from a medical school at an 
        institution of higher education; and
            ``(B) has been accepted to, or currently participates in, a 
        full-time graduate medical education training program or 
        fellowship (or both) to provide health care services (as 
        recognized by the Accreditation Council for Graduate Medical 
        Education) that--
                ``(i) requires more than five years of total graduate 
            medical training; and
                ``(ii) has fewer United States medical school graduate 
            applicants than the total number of positions available in 
            such program or fellowship.
        ``(12) Mental health professionals.--The individual--
            ``(A) has not less than a master's degree in social work, 
        psychology, or psychiatry; and
            ``(B) is employed full-time providing mental health 
        services to children, adolescents, or veterans.
        ``(13) Dentists.--The individual--
            ``(A)(i) has received a degree from an accredited dental 
        school (as accredited by the Commission on Dental 
        Accreditation);
            ``(ii) has completed residency training in pediatric 
        dentistry, general dentistry, or dental public health; and
            ``(iii) is employed full-time as a dentist; or
            ``(B) is employed full-time as a member of the faculty at a 
        program or school accredited by the Commission on Dental 
        Accreditation.
        ``(14) STEM employees.--The individual is employed full-time in 
    applied sciences, technology, engineering, or mathematics.
        ``(15) Physical therapists.--The individual--
            ``(A) is a physical therapist; and
            ``(B) is employed full-time providing physical therapy 
        services to children, adolescents, or veterans.
        ``(16) Superintendents, principals, and other administrators.--
    The individual is employed full-time as a school superintendent, 
    principal, or other administrator in a local educational agency, 
    including in an educational service agency, in which 30 percent or 
    more of the schools are schools that qualify under section 
    465(a)(2)(A) for loan cancellation for Perkins loan recipients who 
    teach in such a school.
        ``(17) Occupational therapists.--The individual is an 
    occupational therapist and is employed full-time providing 
    occupational therapy services to children, adolescents, or 
    veterans.
    ``(c) Qualified Loan Amount.--
        ``(1) In general.--Subject to paragraph (2), for each school, 
    academic, or calendar year of full-time employment in an area of 
    national need described in subsection (b) that a borrower completes 
    on or after the date of enactment of the Higher Education 
    Opportunity Act, the Secretary shall forgive not more than $2,000 
    of the student loan obligation of the borrower that is outstanding 
    after the completion of each such school, academic, or calendar 
    year of employment, respectively.
        ``(2) Maximum amount.--The Secretary shall not forgive more 
    than $10,000 in the aggregate for any borrower under this section, 
    and no borrower shall receive loan forgiveness under this section 
    for more than five years of service.
    ``(d) Priority.--The Secretary shall grant loan forgiveness under 
this section on a first-come, first-served basis, and subject to the 
availability of appropriations.
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to authorize the refunding of any repayment of a loan.
    ``(f) Ineligibility for Double Benefits.--No borrower may, for the 
same service, receive a reduction of loan obligations under both this 
section and section 428J, 428L, 455(m), or 460.
    ``(g) Definitions.--In this section:
        ``(1) Audiologist.--The term `audiologist' means an individual 
    who--
            ``(A) has received, at a minimum, a graduate degree in 
        audiology from an institution of higher education accredited by 
        an agency or association recognized by the Secretary pursuant 
        to section 496(a); and
            ``(B)(i) provides audiology services under subsection 
        (ll)(2) of section 1861 of the Social Security Act (42 U.S.C. 
        1395x(ll)(2)); or
            ``(ii) meets or exceeds the qualifications for a qualified 
        audiologist under subsection (ll)(4) of such section (42 U.S.C. 
        1395x(ll)(4)).
        ``(2) Early childhood educator.--The term `early childhood 
    educator' means an individual who--
            ``(A) works directly with children in an eligible preschool 
        program or eligible early childhood education program in a low-
        income community;
            ``(B) is involved directly in the care, development, and 
        education of infants, toddlers, or young children age five and 
        under; and
            ``(C) has completed a baccalaureate or advanced degree in 
        early childhood development or early childhood education, or in 
        a field related to early childhood education.
        ``(3) Eligible preschool program.--The term `eligible preschool 
    program' means a program that--
            ``(A) provides for the care, development, and education of 
        infants, toddlers, or young children age five and under;
            ``(B) meets any applicable State or local government 
        licensing, certification, approval, and registration 
        requirements, and
            ``(C) is operated by--
                ``(i) a public or private school that is supported, 
            sponsored, supervised, or administered by a local 
            educational agency;
                ``(ii) a Head Start agency serving as a grantee 
            designated under the Head Start Act (42 U.S.C. 9831 et 
            seq.);
                ``(iii) a nonprofit or community based organization; or
                ``(iv) a child care program, including a home.
        ``(4) Eligible early childhood education program.--The term 
    `eligible early childhood education program' means--
            ``(A) a family child care program, center-based child care 
        program, State prekindergarten program, school program, or 
        other out-of-home early childhood development care program, 
        that--
                ``(i) is licensed or regulated by the State; and
                ``(ii) serves two or more unrelated children who are 
            not old enough to attend kindergarten;
            ``(B) a Head Start Program carried out under the Head Start 
        Act (42 U.S.C. 9831 et seq.); or
            ``(C) an Early Head Start Program carried out under section 
        645A of the Head Start Act (42 U.S.C. 9840a).
        ``(5) Low-income community.--The term `low-income community' 
    means a school attendance area (as defined in section 1113(a)(2)(A) 
    of the Elementary and Secondary Education Act of 1965)--
            ``(A) in which 70 percent of households earn less than 85 
        percent of the State median household income; or
            ``(B) that includes a school that qualifies under section 
        465(a)(2)(A) for loan cancellation for Perkins loan recipients 
        who teach in such a school.
        ``(6) Nurse.--The term `nurse' means a nurse who meets all of 
    the following:
            ``(A) The nurse graduated from--
                ``(i) an accredited school of nursing (as those terms 
            are defined in section 801 of the Public Health Service Act 
            (42 U.S.C. 296));
                ``(ii) a nursing center; or
                ``(iii) an academic health center that provides nurse 
            training.
            ``(B) The nurse holds a valid and unrestricted license to 
        practice nursing in the State in which the nurse practices in a 
        clinical setting.
            ``(C) The nurse holds one or more of the following:
                ``(i) A graduate degree in nursing, or an equivalent 
            degree.
                ``(ii) A nursing degree from a collegiate school of 
            nursing (as defined in section 801 of the Public Health 
            Service Act (42 U.S.C. 296)).
                ``(iii) A nursing degree from an associate degree 
            school of nursing (as defined in such section).
                ``(iv) A nursing degree from a diploma school of 
            nursing (as defined in such section).
        ``(7) Occupational therapist.--The term `occupational 
    therapist' means an individual who--
            ``(A) has received, at a minimum, a baccalaureate degree in 
        occupational therapy from an institution of higher education 
        accredited by an agency or association recognized by the 
        Secretary pursuant to section 496(a); and
            ``(B)(i) provides occupational therapy services under 
        section 1861(g) of the Social Security Act (42 U.S.C. 
        1395x(g)); or
            ``(ii) meets or exceeds the qualifications for a qualified 
        occupational therapist, as determined by State law.
        ``(8) Physical therapist.--The term `physical therapist' means 
    an individual who--
            ``(A) has received, at a minimum, a graduate degree in 
        physical therapy from an institution of higher education 
        accredited by an agency or association recognized by the 
        Secretary pursuant to section 496(a); and
            ``(B)(i) provides physical therapy services under section 
        1861(p) of the Social Security Act (42 U.S.C. 1395x(p)); or
            ``(ii) meets or exceeds the qualifications for a qualified 
        physical therapist, as determined by State law.
        ``(9) Speech-language pathologist.--The term `speech-language 
    pathologist' means a speech-language pathologist who--
            ``(A) has received, at a minimum, a graduate degree in 
        speech-language pathology or communication sciences and 
        disorders from an institution of higher education accredited by 
        an agency or association recognized by the Secretary pursuant 
        to section 496(a); and
            ``(B) provides speech-language pathology services under 
        section 1861(ll)(1) of the Social Security Act (42 U.S.C. 
        1395x(ll)(1)), or meets or exceeds the qualifications for a 
        qualified speech-language pathologist under subsection (ll)(3) 
        of such section (42 U.S.C. 1395x(ll)(3)).
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years to 
provide loan forgiveness in accordance with this section.''.
    SEC. 431. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.
    Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting 
after section 428K the following:
``SEC. 428L. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.
    ``(a) Purpose.--The purpose of this section is to encourage 
qualified individuals to enter and continue employment as civil legal 
assistance attorneys.
    ``(b) Definitions.--In this section:
        ``(1) Civil legal assistance attorney.--The term `civil legal 
    assistance attorney' means an attorney who--
            ``(A) is a full-time employee of--
                ``(i) a nonprofit organization that provides legal 
            assistance with respect to civil matters to low-income 
            individuals without a fee; or
                ``(ii) a protection and advocacy system or client 
            assistance program that provides legal assistance with 
            respect to civil matters and receives funding under--

                    ``(I) subtitle C of title I of the Developmental 
                Disabilities Assistance and Bill of Rights Act of 2000 
                (42 U.S.C. 15041 et seq.);
                    ``(II) section 112 or 509 of the Rehabilitation Act 
                of 1973 (29 U.S.C. 732, 794e);
                    ``(III) part A of title I of the Protection and 
                Advocacy for Individuals with Mental Illness Act (42 
                U.S.C. 10801 et seq.);
                    ``(IV) section 5 of the Assistive Technology Act of 
                1998 (29 U.S.C. 3004);
                    ``(V) section 1150 of the Social Security Act (42 
                U.S.C. 1320b-21);
                    ``(VI) section 1253 of the Public Health Service 
                Act (42 U.S.C. 300d-53); or
                    ``(VII) section 291 of the Help America Vote Act of 
                2002 (42 U.S.C. 15461);

            ``(B) as such employee, provides civil legal assistance as 
        described in subparagraph (A) on a full-time basis; and
            ``(C) is continually licensed to practice law.
        ``(2) Student loan.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the term `student loan' means--
                ``(i) subject to clause (ii), a loan made, insured, or 
            guaranteed under this part, part D, or part E; and
                ``(ii) a loan made under section 428C or 455(g), to the 
            extent that such loan was used to repay--

                    ``(I) a Federal Direct Stafford Loan, a Federal 
                Direct Unsubsidized Stafford Loan, or a Federal Direct 
                PLUS Loan;
                    ``(II) a loan made under section 428, 428B, or 
                428H; or
                    ``(III) a loan made under part E.

            ``(B) Exclusion of parent plus loans.--The term `student 
        loan' does not include any of the following loans:
                ``(i) A loan made to the parents of a dependent student 
            under section 428B.
                ``(ii) A Federal Direct PLUS Loan made to the parents 
            of a dependent student.
                ``(iii) A loan made under section 428C or 455(g), to 
            the extent that such loan was used to repay--

                    ``(I) a loan made to the parents of a dependent 
                student under section 428B; or
                    ``(II) a Federal Direct PLUS Loan made to the 
                parents of a dependent student.

    ``(c) Program Authorized.--From amounts appropriated under 
subsection (i) for a fiscal year, the Secretary shall carry out a 
program of assuming the obligation to repay a student loan, by direct 
payments on behalf of a borrower to the holder of such loan, in 
accordance with subsection (d), for any borrower who--
        ``(1) is employed as a civil legal assistance attorney; and
        ``(2) is not in default on a loan for which the borrower seeks 
    repayment.
    ``(d) Terms of Agreement.--
        ``(1) In general.--To be eligible to receive repayment benefits 
    under subsection (c), a borrower shall enter into a written 
    agreement with the Secretary that specifies that--
            ``(A) the borrower will remain employed as a civil legal 
        assistance attorney for a required period of service of not 
        less than three years, unless involuntarily separated from that 
        employment;
            ``(B) if the borrower is involuntarily separated from 
        employment on account of misconduct, or voluntarily separates 
        from employment, before the end of the period specified in the 
        agreement, the borrower will repay the Secretary the amount of 
        any benefits received by such employee under this agreement;
            ``(C) if the borrower is required to repay an amount to the 
        Secretary under subparagraph (B) and fails to repay such 
        amount, a sum equal to that amount shall be recoverable by the 
        Federal Government from the employee by such methods as are 
        provided by law for the recovery of amounts owed to the Federal 
        Government;
            ``(D) the Secretary may waive, in whole or in part, a right 
        of recovery under this subsection if it is shown that recovery 
        would be contrary to the public interest; and
            ``(E) the Secretary shall make student loan payments under 
        this section for the period of the agreement, subject to the 
        availability of appropriations.
        ``(2) Repayments.--
            ``(A) In general.--Any amount repaid by, or recovered from, 
        an individual under this subsection shall be credited to the 
        appropriation account from which the amount involved was 
        originally paid.
            ``(B) Merger.--Any amount credited under subparagraph (A) 
        shall be merged with other sums in such account and shall be 
        available for the same purposes and period, and subject to the 
        same limitations, if any, as the sums with which the amount was 
        merged.
        ``(3) Limitations.--
            ``(A) Student loan payment amount.--Student loan repayments 
        made by the Secretary under this section shall be made subject 
        to such terms, limitations, or conditions as may be mutually 
        agreed upon by the borrower and the Secretary in an agreement 
        under paragraph (1), except that the amount paid by the 
        Secretary under this section shall not exceed--
                ``(i) $6,000 for any borrower in any calendar year; or
                ``(ii) an aggregate total of $40,000 in the case of any 
            borrower.
            ``(B) Beginning of payments.--Nothing in this section shall 
        authorize the Secretary to pay any amount to reimburse a 
        borrower for any repayments made by such borrower prior to the 
        date on which the Secretary entered into an agreement with the 
        borrower under this subsection.
    ``(e) Additional Agreements.--
        ``(1) In general.--On completion of the required period of 
    service under an agreement under subsection (d), the borrower and 
    the Secretary may, subject to paragraph (2), enter into an 
    additional agreement in accordance with subsection (d).
        ``(2) Term.--An agreement entered into under paragraph (1) may 
    require the borrower to remain employed as a civil legal assistance 
    attorney for less than three years.
    ``(f) Award Basis; Priority.--
        ``(1) Award basis.--Subject to paragraph (2), the Secretary 
    shall provide repayment benefits under this section on a first-
    come, first-served basis, and subject to the availability of 
    appropriations.
        ``(2) Priority.--The Secretary shall give priority in providing 
    repayment benefits under this section in any fiscal year to a 
    borrower who--
            ``(A) has practiced law for five years or less and, for not 
        less than 90 percent of the time in such practice, has served 
        as a civil legal assistance attorney;
            ``(B) received repayment benefits under this section during 
        the preceding fiscal year; and
            ``(C) has completed less than three years of the first 
        required period of service specified for the borrower in an 
        agreement entered into under subsection (d).
    ``(g) Ineligibility for Double Benefits.--No borrower may, for the 
same service, receive a reduction of loan obligations under both this 
section and section 428K or 455(m).
    ``(h) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out this section.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for fiscal year 2009 
and such sums as may be necessary for each of the five succeeding 
fiscal years.''.
    SEC. 432. REPORTS TO CONSUMER REPORTING AGENCIES AND INSTITUTIONS 
      OF HIGHER EDUCATION.
    (a) In General.--Section 430A (20 U.S.C. 1080a) is amended--
        (1) in the section heading, by striking ``credit bureaus'' and 
    inserting ``consumer reporting agencies'';
        (2) in subsection (a)--
            (A) in the matter preceding paragraph (1)--
                (i) in the first sentence--

                    (I) by striking ``the Secretary,'' and inserting 
                ``the Secretary and''; and
                    (II) by striking ``agreements with credit bureau 
                organizations'' and inserting ``an agreement with each 
                consumer reporting agency'';

                (ii) in the second sentence--

                    (I) by striking ``such organizations'' each place 
                the term occurs and inserting ``such consumer reporting 
                agencies''; and
                    (II) by striking ``insurance), by'' and inserting 
                ``insurance) or by''; and

                (iii) in the third sentence--

                    (I) by striking ``Secretary,'' and inserting 
                ``Secretary or''; and
                    (II) by striking ``organizations'' and inserting 
                ``consumer reporting agencies'';

            (B) by redesignating paragraphs (1), (2), and (3) as 
        paragraphs (2), (4), and (5), respectively;
            (C) by inserting before paragraph (2) (as redesignated by 
        subparagraph (B)), the following:
        ``(1) that the loan is an education loan (as such term is 
    defined in section 151);''; and
            (D) by inserting after paragraph (2) (as redesignated by 
        subparagraph (B)) the following:
        ``(3) information concerning the repayment status of the loan 
    for inclusion in the file of the borrower, except that nothing in 
    this subsection shall be construed to affect any otherwise 
    applicable provision of the Fair Credit Reporting Act (15 U.S.C. 
    1681 et seq.);'';
        (3) in subsection (b)--
            (A) by striking ``organizations'' and inserting ``consumer 
        reporting agencies''; and
            (B) by striking ``subsection (a)(2)'' and inserting 
        ``subsection (a)(4)'';
        (4) in subsection (c)--
            (A) in paragraph (2), by striking ``organizations'' and 
        inserting ``consumer reporting agencies''; and
            (B) in paragraph (4)--
                (i) by striking ``subsection (a)(2)'' and inserting 
            ``subsection (a)(4)''; and
                (ii) in subparagraph (A), by striking ``credit bureau 
            organizations'' and inserting ``consumer reporting 
            agencies''; and
        (5) in subsection (d), by striking ``credit bureau 
    organization'' and inserting ``consumer reporting agency''.
    (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et seq.) is 
further amended--
        (1) in section 427(a)(2)(G) (20 U.S.C. 1077(a)(2)(G))--
            (A) in clause (i), by striking ``credit bureau 
        organizations'' and inserting ``consumer reporting agencies''; 
        and
            (B) in clause (ii), by striking ``organizations'' and 
        inserting ``consumer reporting agencies'';
        (2) in section 428(c)(3)(A)(iii) (20 U.S.C. 
    1078(c)(3)(A)(iii)), by striking ``credit bureau organization'' and 
    inserting ``consumer reporting agency'';
        (3) in section 428C(b)(4)(E) (20 U.S.C. 1078-3(b)(4)(E))--
            (A) in clause (i), by striking ``credit bureau 
        organizations'' and inserting ``consumer reporting agencies''; 
        and
            (B) in clause (ii), by striking ``organizations'' and 
        inserting ``consumer reporting agencies'';
        (4) in section 437(c)(5) (20 U.S.C. 1087(c)(5)), by striking 
    ``credit bureaus'' and inserting ``consumer reporting agencies'';
        (5) in section 463(c) (20 U.S.C. 1087cc(c))--
            (A) in the subsection heading, by striking ``Credit Bureau 
        Organizations'' and inserting ``Consumer Reporting Agencies'';
            (B) in paragraph (1), by striking ``credit bureau 
        organizations'' and inserting ``consumer reporting agencies'';
            (C) in paragraph (2), by striking ``organizations'' and 
        inserting ``consumer reporting agencies'';
            (D) in paragraph (4)(A), by striking ``credit bureau 
        organization'' each place the term occurs and inserting 
        ``consumer reporting agency''; and
            (E) in paragraph (5)--
                (i) by striking ``credit bureau organizations'' and 
            inserting ``consumer reporting agencies''; and
                (ii) by striking ``such organizations'' and inserting 
            ``such consumer reporting agencies'';
        (6) in section 463A(a)(11) (20 U.S.C. 1087cc-1(a)(11)), by 
    striking ``credit bureau or credit'' and inserting ``consumer''; 
    and
        (7) in section 464 (20 U.S.C. 10877dd)--
            (A) in subsection (c)(1)(I), by striking ``credit bureau 
        organizations'' and inserting ``consumer reporting agencies''; 
        and
            (B) in subsection (h)(1)(A), by striking ``credit bureau 
        organization or credit'' and inserting ``consumer''.
    SEC. 433. LEGAL POWERS AND RESPONSIBILITIES.
    (a) Settlement of Claims.--Section 432(b) (20 U.S.C. 1082(b)) is 
amended by adding at the end the following: ``The Secretary may not 
enter into any settlement of any claim under this title that exceeds 
$1,000,000 unless--
        ``(1) the Secretary requests a review of the proposed 
    settlement of such claim by the Attorney General; and
        ``(2) the Attorney General responds to such request, which may 
    include, at the Attorney General's discretion, a written opinion 
    related to such proposed settlement.''.
    (b) Common Forms and Formats.--Section 432(m)(1)(D)(i) (20 U.S.C. 
1082(m)(1)(D)(i)) is amended by adding at the end the following: 
``Unless otherwise notified by the Secretary, each institution of 
higher education that participates in the program under this part or 
part D may use a master promissory note for loans under this part and 
part D.''.
    SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
    (a) Amendment.--Section 433 (20 U.S.C. 1083) is amended to read as 
follows:
    ``SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
    ``(a) Required Disclosure Before Disbursement.--Each eligible 
lender, at or prior to the time such lender disburses a loan that is 
insured or guaranteed under this part (other than a loan made under 
section 428C), shall provide thorough and accurate loan information on 
such loan to the borrower in simple and understandable terms. Any 
disclosure required by this subsection may be made by an eligible 
lender by written or electronic means, including as part of the 
application material provided to the borrower, as part of the 
promissory note evidencing the loan, or on a separate written form 
provided to the borrower. Each lender shall provide to each borrower a 
telephone number, and may provide an electronic address, through which 
additional loan information can be obtained. The disclosure shall 
include--
        ``(1) a statement prominently and clearly displayed and in bold 
    print that the borrower is receiving a loan that must be repaid;
        ``(2) the name of the eligible lender, and the address to which 
    communications and payments should be sent;
        ``(3) the principal amount of the loan;
        ``(4) the amount of any charges, such as the origination fee 
    and Federal default fee, and whether those fees will be--
            ``(A) collected by the lender at or prior to the disbursal 
        of the loan;
            ``(B) deducted from the proceeds of the loan;
            ``(C) paid separately by the borrower; or
            ``(D) paid by the lender;
        ``(5) the stated interest rate on the loan;
        ``(6) for loans made under section 428H or to a student 
    borrower under section 428B, an explanation--
            ``(A) that the borrower has the option to pay the interest 
        that accrues on the loan while the borrower is a student at an 
        institution of higher education; and
            ``(B) if the borrower does not pay such interest while 
        attending an institution, when and how often interest on the 
        loan will be capitalized;
        ``(7) for loans made to a parent borrower on behalf of a 
    student under section 428B, an explanation--
            ``(A) that the parent has the option to defer payment on 
        the loan while the student is enrolled on at least a half-time 
        basis in an institution of higher education;
            ``(B) if the parent does not pay the interest on the loan 
        while the student is enrolled in an institution, when and how 
        often interest on the loan will be capitalized; and
            ``(C) that the parent may be eligible for a deferment on 
        the loan if the parent is enrolled on at least a half-time 
        basis in an institution of higher education;
        ``(8) the yearly and cumulative maximum amounts that may be 
    borrowed;
        ``(9) a statement of the total cumulative balance, including 
    the loan being disbursed, owed by the borrower to that lender, and 
    an estimate of the projected monthly payment, given such cumulative 
    balance;
        ``(10) an explanation of when repayment of the loan will be 
    required and when the borrower will be obligated to pay interest 
    that accrues on the loan;
        ``(11) a description of the types of repayment plans that are 
    available for the loan;
        ``(12) a statement as to the minimum and maximum repayment 
    terms which the lender may impose, and the minimum annual payment 
    required by law;
        ``(13) an explanation of any special options the borrower may 
    have for loan consolidation or other refinancing of the loan;
        ``(14) a statement that the borrower has the right to prepay 
    all or part of the loan, at any time, without penalty;
        ``(15) a statement summarizing circumstances in which repayment 
    of the loan or interest that accrues on the loan may be deferred;
        ``(16) a statement summarizing the circumstances in which a 
    borrower may obtain forbearance on the loan;
        ``(17) a description of the options available for forgiveness 
    of the loan, and the requirements to obtain loan forgiveness;
        ``(18) a definition of default and the consequences to the 
    borrower if the borrower defaults, including a statement that the 
    default will be reported to a consumer reporting agency; and
        ``(19) an explanation of any cost the borrower may incur during 
    repayment or in the collection of the loan, including fees that the 
    borrower may be charged, such as late payment fees and collection 
    costs.
    ``(b) Required Disclosure Before Repayment.--Each eligible lender 
shall, at or prior to the start of the repayment period on a loan made, 
insured, or guaranteed under section 428, 428B, or 428H, disclose to 
the borrower by written or electronic means the information required 
under this subsection in simple and understandable terms. Each eligible 
lender shall provide to each borrower a telephone number, and may 
provide an electronic address, through which additional loan 
information can be obtained. The disclosure required by this subsection 
shall be made not less than 30 days nor more than 150 days before the 
first payment on the loan is due from the borrower. The disclosure 
shall include--
        ``(1) the name of the eligible lender or loan servicer, and the 
    address to which communications and payments should be sent;
        ``(2) the scheduled date upon which the repayment period is to 
    begin or the deferment period under section 428B(d)(1) is to end, 
    as applicable;
        ``(3) the estimated balance owed by the borrower on the loan or 
    loans covered by the disclosure (including, if applicable, the 
    estimated amount of interest to be capitalized) as of the scheduled 
    date on which the repayment period is to begin or the deferment 
    period under 428B(d)(1) is to end, as applicable;
        ``(4) the stated interest rate on the loan or loans, or the 
    combined interest rate of loans with different stated interest 
    rates;
        ``(5) information on loan repayment benefits offered for the 
    loan or loans, including--
            ``(A) whether the lender offers any benefits that are 
        contingent on the repayment behavior of the borrower, such as--
                ``(i) a reduction in interest rate if the borrower 
            repays the loan by automatic payroll or checking account 
            deduction;
                ``(ii) a reduction in interest rate if the borrower 
            makes a specified number of on-time payments; and
                ``(iii) other loan repayment benefits for which the 
            borrower could be eligible that would reduce the amount of 
            repayment or the length of the repayment period;
            ``(B) if the lender provides a loan repayment benefit--
                ``(i) any limitations on such benefit;
                ``(ii) explicit information on the reasons a borrower 
            may lose eligibility for such benefit;
                ``(iii) for a loan repayment benefit that reduces the 
            borrower's interest rate--

                    ``(I) examples of the impact the interest rate 
                reduction would have on the length of the borrower's 
                repayment period and the amount of repayment; and
                    ``(II) upon the request of the borrower, the effect 
                the reduction in interest rate would have with respect 
                to the borrower's payoff amount and time for repayment; 
                and

                ``(iv) whether and how the borrower can regain 
            eligibility for a benefit if a borrower loses a benefit;
        ``(6) a description of all the repayment plans that are 
    available to the borrower and a statement that the borrower may 
    change from one plan to another during the period of repayment;
        ``(7) the repayment schedule for all loans covered by the 
    disclosure, including--
            ``(A) the date the first installment is due; and
            ``(B) the number, amount, and frequency of required 
        payments, which shall be based on a standard repayment plan or, 
        in the case of a borrower who has selected another repayment 
        plan, on the repayment plan selected by the borrower;
        ``(8) an explanation of any special options the borrower may 
    have for loan consolidation or other refinancing of the loan and of 
    the availability and terms of such other options;
        ``(9) except as provided in subsection (d)--
            ``(A) the projected total of interest charges which the 
        borrower will pay on the loan or loans, assuming that the 
        borrower makes payments exactly in accordance with the 
        repayment schedule; and
            ``(B) if the borrower has already paid interest on the loan 
        or loans, the amount of interest paid;
        ``(10) the nature of any fees which may accrue or be charged to 
    the borrower during the repayment period;
        ``(11) a statement that the borrower has the right to prepay 
    all or part of the loan or loans covered by the disclosure at any 
    time without penalty;
        ``(12) a description of the options by which the borrower may 
    avoid or be removed from default, including any relevant fees 
    associated with such options; and
        ``(13) additional resources, including nonprofit organizations, 
    advocates, and counselors (including the Student Loan Ombudsman of 
    the Department) of which the lender is aware, where borrowers may 
    receive advice and assistance on loan repayment.
    ``(c) Separate Notification.--Each eligible lender shall, at the 
time such lender notifies a borrower of approval of a loan which is 
insured or guaranteed under this part, provide the borrower with a 
separate notification which summarizes, in simple and understandable 
terms, the rights and responsibilities of the borrower with respect to 
the loan, including a statement of the consequences of defaulting on 
the loan and a statement that each borrower who defaults will be 
reported to a consumer reporting agency. The requirement of this 
subsection shall be in addition to the information required by 
subsection (a) of this section.
    ``(d) Special Disclosure Rules on PLUS Loans, and Unsubsidized 
Loans.--Loans made under sections 428B and 428H shall not be subject to 
the disclosure of projected monthly payment amounts required under 
subsection (b)(7) if the lender, in lieu of such disclosure, provides 
the borrower with sample projections of monthly repayment amounts, 
assuming different levels of borrowing and interest accruals resulting 
from capitalization of interest while the borrower, or the student on 
whose behalf the loan is made, is in school, in simple and 
understandable terms. Such sample projections shall disclose the cost 
to the borrower of--
        ``(1) capitalizing the interest; and
        ``(2) paying the interest as the interest accrues.
    ``(e) Required Disclosures During Repayment.--
        ``(1) Pertinent information about a loan provided on a periodic 
    basis.--Each eligible lender shall provide the borrower of a loan 
    made, insured, or guaranteed under this part with a bill or 
    statement (as applicable) that corresponds to each payment 
    installment time period in which a payment is due and that 
    includes, in simple and understandable terms--
            ``(A) the original principal amount of the borrower's loan;
            ``(B) the borrower's current balance, as of the time of the 
        bill or statement, as applicable;
            ``(C) the interest rate on such loan;
            ``(D) the total amount the borrower has paid in interest on 
        the loan;
            ``(E) the aggregate amount the borrower has paid for the 
        loan, including the amount the borrower has paid in interest, 
        the amount the borrower has paid in fees, and the amount the 
        borrower has paid against the balance;
            ``(F) a description of each fee the borrower has been 
        charged for the most recently preceding installment time 
        period;
            ``(G) the date by which the borrower needs to make a 
        payment in order to avoid additional fees and the amount of 
        such payment and the amount of such fees;
            ``(H) the lender's or loan servicer's address and toll-free 
        phone number for payment and billing error purposes; and
            ``(I) a reminder that the borrower has the option to change 
        repayment plans, a list of the names of the repayment plans 
        available to the borrower, a link to the appropriate page of 
        the Department's website to obtain a more detailed description 
        of the repayment plans, and directions for the borrower to 
        request a change in repayment plan.
        ``(2) Information provided to a borrower having difficulty 
    making payments.--Each eligible lender shall provide to a borrower 
    who has notified the lender that the borrower is having difficulty 
    making payments on a loan made, insured, or guaranteed under this 
    part with the following information in simple and understandable 
    terms:
            ``(A) A description of the repayment plans available to the 
        borrower, including how the borrower should request a change in 
        repayment plan.
            ``(B) A description of the requirements for obtaining 
        forbearance on a loan, including expected costs associated with 
        forbearance.
            ``(C) A description of the options available to the 
        borrower to avoid defaulting on the loan, and any relevant fees 
        or costs associated with such options.
        ``(3) Required disclosures during delinquency.--Each eligible 
    lender shall provide to a borrower who is 60 days delinquent in 
    making payments on a loan made, insured, or guaranteed under this 
    part with a notice, in simple and understandable terms, of the 
    following:
            ``(A) The date on which the loan will default if no payment 
        is made.
            ``(B) The minimum payment the borrower must make to avoid 
        default.
            ``(C) A description of the options available to the 
        borrower to avoid default, and any relevant fees or costs 
        associated with such options, including a description of 
        deferment and forbearance and the requirements to obtain each.
            ``(D) Discharge options to which the borrower may be 
        entitled.
            ``(E) Additional resources, including nonprofit 
        organizations, advocates, and counselors (including the Student 
        Loan Ombudsman of the Department), of which the lender is 
        aware, where the borrower can receive advice and assistance on 
        loan repayment.
    ``(f) Cost of Disclosure and Consequences of Nondisclosure.--
        ``(1) No cost to borrowers.--The information required under 
    this section shall be available without cost to the borrower.
        ``(2) Consequences of nondisclosure.--The failure of an 
    eligible lender to provide information as required by this section 
    shall not--
            ``(A) relieve a borrower of the obligation to repay a loan 
        in accordance with the loan's terms; or
            ``(B) provide a basis for a claim for civil damages.
        ``(3) Rule of construction.--Nothing in this section shall be 
    construed as subjecting the lender to the Truth in Lending Act with 
    regard to loans made under this part.
        ``(4) Actions by the secretary.--The Secretary may limit, 
    suspend, or terminate the continued participation of an eligible 
    lender in making loans under this part for failure by that lender 
    to comply with this section.''.
    (b) Effective Dates.--
        (1) Regular disclosure requirements and disclosure requirements 
    to borrowers having difficulty making payments.--Paragraphs (1) and 
    (2) of section 433(e) of the Higher Education Act of 1965, as 
    amended by subsection (a), shall apply with respect to loans for 
    which the first payment is due on or after July 1, 2009.
        (2) Disclosure requirements for borrowers with delinquent 
    loans.--Section 433(e)(3) of the Higher Education Act of 1965, as 
    amended by subsection (a), shall apply with respect to loans that 
    become delinquent on or after July 1, 2009.
    SEC. 435. CONSUMER EDUCATION INFORMATION.
    Part B (20 U.S.C. 1071 et seq.) is amended by inserting after 
section 433 (20 U.S.C. 1083) the following:
``SEC. 433A. CONSUMER EDUCATION INFORMATION.
    ``(a) In General.--Each guaranty agency participating in a program 
under this part, working with the institutions of higher education 
served by such guaranty agency, shall develop and make available high-
quality educational programs and materials to provide training for 
students and families in budgeting and financial management, including 
debt management and other aspects of financial literacy, such as the 
cost of using high interest loans to pay for postsecondary education, 
particularly as budgeting and financial management relates to student 
loan programs authorized by this title. Such programs and materials 
shall be in formats that are simple and understandable to students and 
families, and shall be provided before, during, and after the students' 
enrollment in an institution of higher education. The activities 
described in this section shall be considered default reduction 
activities for the purposes of section 422.
    ``(b) Rule of Construction.--Nothing in this section shall be 
construed to prohibit--
        ``(1) a guaranty agency from using existing activities, 
    programs, and materials in meeting the requirements of this 
    section;
        ``(2) a guaranty agency from providing programs or materials 
    similar to the programs or materials described in subsection (a) to 
    an institution of higher education that provides loans exclusively 
    through part D; or
        ``(3) a lender or loan servicer from providing outreach or 
    financial aid literacy information in accordance with subsection 
    (a).''.
    SEC. 436. DEFINITIONS OF ELIGIBLE INSTITUTION AND ELIGIBLE LENDER.
    (a) Participation Rate Index.--
        (1) Amendments.--Section 435(a) (20 U.S.C. 1085(a)) is 
    amended--
            (A) in paragraph (2)--
                (i) in subparagraph (A)(ii), by striking ``paragraph 
            (4)'' and inserting ``paragraph (5)''; and
                (ii) in subparagraph (B)--

                    (I) by striking ``and'' at the end of clause (ii); 
                and
                    (II) by striking clause (iii) and inserting the 
                following:

                ``(iii) 25 percent for fiscal year 1994 through fiscal 
            year 2011; and
                ``(iv) 30 percent for fiscal year 2012 and any 
            succeeding fiscal year.'';
            (B) by redesignating paragraph (6) as paragraph (8), and 
        redesignating paragraphs (3) through (5) as paragraphs (4) 
        through (6), respectively;
            (C) by inserting after paragraph (2) the following new 
        paragraph:
        ``(3) Appeals for regulatory relief.--An institution whose 
    cohort default rate, calculated in accordance with subsection (m), 
    is equal to or greater than the threshold percentage specified in 
    paragraph (2)(B)(iv) for any two consecutive fiscal years may, not 
    later than 30 days after the date the institution receives 
    notification from the Secretary, file an appeal demonstrating 
    exceptional mitigating circumstances, as defined in paragraph (5). 
    The Secretary shall issue a decision on any such appeal not later 
    than 45 days after the date of submission of the appeal. If the 
    Secretary determines that the institution demonstrates exceptional 
    mitigating circumstances, the Secretary may not subject the 
    institution to provisional certification based solely on the 
    institution's cohort default rate.'';
            (D) in paragraph (5)(A) (as redesignated by subparagraph 
        (B)), by striking ``For purposes of paragraph (2)(A)(ii)'' and 
        all that follows through ``following criteria:'' and inserting 
        ``For purposes of this subsection, an institution of higher 
        education shall be treated as having exceptional mitigating 
        circumstances that make application of paragraph (2) 
        inequitable, and that provide for regulatory relief under 
        paragraph (3), if such institution, in the opinion of an 
        independent auditor, meets the following criteria:'';
            (E) by inserting after paragraph (6) (as redesignated by 
        subparagraph (B)) the following:
        ``(7) Default prevention and assessment of eligibility based on 
    high default rates.--
            ``(A) First year.--
                ``(i) In general.--An institution whose cohort default 
            rate is equal to or greater than the threshold percentage 
            specified in paragraph (2)(B)(iv) in any fiscal year shall 
            establish a default prevention task force to prepare a plan 
            to--

                    ``(I) identify the factors causing the 
                institution's cohort default rate to exceed such 
                threshold;
                    ``(II) establish measurable objectives and the 
                steps to be taken to improve the institution's cohort 
                default rate; and
                    ``(III) specify actions that the institution can 
                take to improve student loan repayment, including 
                appropriate counseling regarding loan repayment 
                options.

                ``(ii) Technical assistance.--Each institution subject 
            to this subparagraph shall submit the plan under clause (i) 
            to the Secretary, who shall review the plan and offer 
            technical assistance to the institution to promote improved 
            student loan repayment.
            ``(B) Second consecutive year.--
                ``(i) In general.--An institution whose cohort default 
            rate is equal to or greater than the threshold percentage 
            specified in paragraph (2)(B)(iv) for two consecutive 
            fiscal years, shall require the institution's default 
            prevention task force established under subparagraph (A) to 
            review and revise the plan required under such 
            subparagraph, and shall submit such revised plan to the 
            Secretary.
                ``(ii) Review by the secretary.--The Secretary shall 
            review each revised plan submitted in accordance with this 
            subparagraph, and may direct that such plan be amended to 
            include actions, with measurable objectives, that the 
            Secretary determines, based on available data and analyses 
            of student loan defaults, will promote student loan 
            repayment.''; and
            (F) in paragraph (8)(A) (as redesignated by subparagraph 
        (B)) by striking ``0.0375'' and inserting ``0.0625''.
        (2) Effective date.--The amendment made by paragraph (1)(F) 
    shall take effect for fiscal years beginning on or after October 1, 
    2011.
    (b) Types of Lenders.--Section 435(d)(1)(A)(ii) (20 U.S.C. 
1085(d)(1)(A)(ii)) is amended--
        (1) by striking ``part, or (III)'' and inserting ``part, 
    (III)''; and
        (2) by inserting before the semicolon at the end the following: 
    ``, or (IV) it is a National or State chartered bank, or a credit 
    union, with assets of less than $1,000,000,000''.
    (c) Disqualification.--Paragraph (5) of section 435(d) (20 U.S.C. 
1085(d)(5)) is amended to read as follows:
        ``(5) Disqualification for use of certain incentives.--The term 
    `eligible lender' does not include any lender that the Secretary 
    determines, after notice and opportunity for a hearing, has--
            ``(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 payment or reimbursement, 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 schools or postsecondary institutions, or 
        to family members 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 student 
        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 such institution of higher education is required 
        to perform under this title, except that a lender shall be 
        permitted to perform functions on behalf of such institution in 
        accordance with section 485(b);
            ``(F) paid, on behalf of an institution of higher 
        education, another person to perform any function that such 
        institution of higher education is required to perform under 
        this title, except that a lender shall be permitted to perform 
        functions on behalf of such institution in accordance with 
        section 485(b);
            ``(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;
            ``(H) offered, directly or indirectly, loans under this 
        part as an inducement to a prospective borrower to purchase a 
        policy of insurance or other product; or
            ``(I) engaged in fraudulent or misleading advertising.
    It shall not be a violation of this paragraph for a lender to 
    provide technical assistance to institutions of higher education 
    comparable to the kinds of technical assistance provided to 
    institutions of higher education by the Department.''.
    (d) School as Lender Program Audit.--Section 435(d) (20 U.S.C. 
1085(d)) is further amended by adding at the end the following:
        ``(8) School as lender program audit.--Each institution serving 
    as an eligible lender under paragraph (1)(E), and each eligible 
    lender serving as a trustee for an institution of higher education 
    or an organization affiliated with an institution of higher 
    education, shall annually complete and submit to the Secretary a 
    compliance audit to determine whether--
            ``(A) the institution or lender is using all proceeds from 
        special allowance payments and interest payments from 
        borrowers, interest subsidies received from the Department, and 
        any proceeds from the sale or other disposition of loans, for 
        need-based grant programs, in accordance with paragraph 
        (2)(A)(viii);
            ``(B) the institution or lender is using not more than a 
        reasonable portion of the proceeds described in paragraph 
        (2)(A)(viii) for direct administrative expenses; and
            ``(C) the institution or lender is ensuring that the 
        proceeds described in paragraph (2)(A)(viii) are being used to 
        supplement, and not to supplant, Federal and non-Federal funds 
        that would otherwise be used for need-based grant programs.''.
    (e) Cohort Default Rates.--
        (1) Amendments.--Section 435(m) (20 U.S.C. 1085(m)) is 
    amended--
            (A) in paragraph (1)--
                (i) in the first sentence of subparagraph (A), by 
            striking ``end of the following fiscal year'' and inserting 
            ``end of the second fiscal year following the fiscal year 
            in which the students entered repayment'';
                (ii) in subparagraph (B), by striking ``such fiscal 
            year'' and inserting ``such second fiscal year'';
                (iii) in subparagraph (C), by striking ``end of the 
            fiscal year immediately following the year in which they 
            entered repayment'' and inserting ``end of the second 
            fiscal year following the year in which they entered 
            repayment'';
            (B) in paragraph (2)(C)--
                (i) by striking ``end of such following fiscal year is 
            not considered as in default for the purposes of this 
            subsection'' and inserting ``end of the second fiscal year 
            following the year in which the loan entered repayment is 
            not considered as in default for purposes of this 
            subsection''; and
                (ii) by striking ``such following fiscal year'' and 
            inserting ``such second fiscal year''; and
            (C) in paragraph (4)--
                (i) by amending the paragraph heading to read as 
            follows: ``Collection and reporting of cohort default rates 
            and life of cohort default rates.--''; and
                (ii) by amending subparagraph (A) to read as follows:
        ``(A) The Secretary shall publish not less often than once 
    every fiscal year a report showing cohort default data and life of 
    cohort default rates for each category of institution, including: 
    (i) four-year public institutions; (ii) four-year private nonprofit 
    institutions; (iii) two-year public institutions; (iv) two-year 
    private nonprofit institutions; (v) four-year proprietary 
    institutions; (vi) two-year proprietary institutions; and (vii) 
    less than two-year proprietary institutions. For purposes of this 
    subparagraph, for any fiscal year in which one or more current and 
    former students at an institution enter repayment on loans under 
    section 428, 428B, or 428H, received for attendance at the 
    institution, the Secretary shall publish the percentage of those 
    current and former students who enter repayment on such loans (or 
    on the portion of a loan made under section 428C that is used to 
    repay any such loans) received for attendance at the institution in 
    that fiscal year who default before the end of each succeeding 
    fiscal year.''.
        (2) Effective date and transition.--
            (A) Effective date.--The amendments made by paragraph (1) 
        shall take effect for purposes of calculating cohort default 
        rates for fiscal year 2009 and succeeding fiscal years.
            (B) Transition.--Notwithstanding subparagraph (A), the 
        method of calculating cohort default rates under section 435(m) 
        of the Higher Education Act of 1965 as in effect on the day 
        before the date of enactment of this Act shall continue in 
        effect, and the rates so calculated shall be the basis for any 
        sanctions imposed on institutions of higher education because 
        of their cohort default rates, until three consecutive years of 
        cohort default rates calculated in accordance with the 
        amendments made by paragraph (1) are available.
    SEC. 437. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF DISABILITY.
    (a) FFEL and Direct Loans.--Section 437(a) (20 U.S.C. 1087(a)) is 
amended--
        (1) by striking ``(a) Repayment in Full for Death and 
    Disability.--If a'' and inserting the following:
    ``(a) Repayment in Full for Death and Disability.--
        ``(1) In general.--If a'';
        (2) by inserting ``, or if a student borrower who has received 
    such a loan is unable to engage in any substantial gainful activity 
    by reason of any medically determinable physical or mental 
    impairment that can be expected to result in death, has lasted for 
    a continuous period of not less than 60 months, or can be expected 
    to last for a continuous period of not less than 60 months'' after 
    ``of the Secretary),''; and
        (3) by adding at the end the following: ``The Secretary may 
    develop such safeguards as the Secretary determines necessary to 
    prevent fraud and abuse in the discharge of liability under this 
    subsection. Notwithstanding any other provision of this subsection, 
    the Secretary may promulgate regulations to reinstate the 
    obligation of, and resume collection on, loans discharged under 
    this subsection in any case in which--
            ``(A) a borrower received a discharge of liability under 
        this subsection and after the discharge the borrower--
                ``(i) receives a loan made, insured, or guaranteed 
            under this title; or
                ``(ii) has earned income in excess of the poverty line; 
            or
            ``(B) the Secretary determines necessary.''.
    (b) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a)) 
is further amended by adding at the end the following:
        ``(2) Disability determinations.--A borrower who has been 
    determined by the Secretary of Veterans Affairs to be unemployable 
    due to a service-connected condition and who provides documentation 
    of such determination to the Secretary of Education, shall be 
    considered permanently and totally disabled for the purpose of 
    discharging such borrower's loans under this subsection, and such 
    borrower shall not be required to present additional documentation 
    for purposes of this subsection.''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect on July 1, 2010.
    SEC. 438. CONFORMING AMENDMENTS FOR REPEAL OF SECTION 439.
    (a) Part B Amendments.--Part B of title IV (20 U.S.C. 1071 et seq.) 
is amended--
        (1) in section 422A(d)(1) (20 U.S.C. 1072a(d)(1)), by striking 
    ``437, and 439(q)'' and inserting ``and 437'';
        (2) in section 428 (20 U.S.C. 1078)--
            (A) in subsection (b)(1)(G)(i), by striking ``or 439(q)'';
            (B) by striking subsection (h); and
            (C) in subsection (j)(2)--
                (i) by inserting ``and'' at the end of subparagraph 
            (C);
                (ii) by striking ``; and'' at the end of subparagraph 
            (D) and inserting a period; and
                (iii) by striking subparagraph (E); and
        (3) in section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)), by 
    striking ``428C, and 439(q),'' and inserting ``and 428C,''.
    (b) Federal Deposit Insurance Act.--Section 18(s)(4)(C)(ii)(I) of 
the Federal Deposit Insurance Act (12 U.S.C. 1828(s)(4)(C)(ii)(I)) is 
amended by striking ``as amended'' and inserting ``as such section 
existed on the day before the date of the repeal of such section''.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

    SEC. 441. AUTHORIZATION OF APPROPRIATIONS.
    Section 441 (42 U.S.C. 2751) is amended--
        (1) in subsection (b), by striking ``$1,000,000,000 for fiscal 
    year 1999'' and all that follows through the period and inserting 
    ``such sums as may be necessary for fiscal year 2009 and each of 
    the five succeeding fiscal years.''; and
        (2) in subsection (c)(1), by inserting ``emergency preparedness 
    and response,'' after ``public safety,''.
    SEC. 442. ALLOWANCE FOR 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. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
    Section 443 (42 U.S.C. 2753) is amended--
        (1) in subsection (b)(2)--
            (A) by striking subparagraph (A); and
            (B) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively; and
        (2) by adding at the end the following new subsection:
    ``(e) Civic Education and Participation Activities.--
        ``(1) Use of funds.--Funds granted to an institution under this 
    section may be used in accordance with such subsection to 
    compensate (including compensation for time spent in training and 
    travel directly related to civic education and participation 
    activities) students employed in projects that--
            ``(A) teach civics in schools;
            ``(B) raise awareness of government functions or resources; 
        or
            ``(C) increase civic participation.
        ``(2) Priority for schools.--To the extent practicable, an 
    institution shall--
            ``(A) give priority to the employment of students 
        participating in projects that educate or train the public 
        about evacuation, emergency response, and injury prevention 
        strategies relating to natural disasters, acts of terrorism, 
        and other emergency situations; and
            ``(B) ensure that any student compensated with the funds 
        described in paragraph (1) receives appropriate training to 
        carry out the educational services required.
        ``(3) Federal share.--The Federal share of the compensation of 
    work-study students compensated under this subsection may exceed 75 
    percent.''.
    SEC. 444. FLEXIBLE USE OF FUNDS.
    Section 445 (42 U.S.C. 2755) is amended by adding at the end the 
following new subsection:
    ``(d) Flexibility in the Event of a Major Disaster.--
        ``(1) In general.--In the event of a major disaster, an 
    eligible institution located in any area affected by such major 
    disaster, as determined by the Secretary, may make payments under 
    this part to disaster-affected students, for the period of time 
    (not to exceed one academic year) in which the disaster-affected 
    students were prevented from fulfilling the students' work-study 
    obligations as described in paragraph (2)(A)(iii), as follows:
            ``(A) Payments may be made under this part to disaster-
        affected students in an amount equal to or less than the amount 
        of wages such students would have been paid under this part had 
        the students been able to complete the work obligation 
        necessary to receive work study funds.
            ``(B) Payments shall not be made to any student who was not 
        eligible for work study or was not completing the work 
        obligation necessary to receive work study funds under this 
        part prior to the occurrence of the major disaster.
            ``(C) Any payments made to disaster-affected students under 
        this subsection shall meet the matching requirements of section 
        443, unless such matching requirements are waived by the 
        Secretary.
        ``(2) Definitions.--In this subsection:
            ``(A) The term `disaster-affected student' means a student 
        enrolled at an eligible institution who--
                ``(i) received a work-study award under this section 
            for the academic year during which a major disaster 
            occurred;
                ``(ii) earned Federal work-study wages from such 
            eligible institution for such academic year;
                ``(iii) was prevented from fulfilling the student's 
            work-study obligation for all or part of such academic year 
            due to such major disaster; and
                ``(iv) was unable to be reassigned to another work-
            study job.
            ``(B) The term `major disaster' has the meaning given such 
        term in section 102(2) of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).''.
    SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.
    Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by striking 
``$50,000'' and inserting ``$75,000''.
    SEC. 446. ADDITIONAL FUNDS FOR OFF-CAMPUS COMMUNITY SERVICE.
    Section 447 (42 U.S.C. 2756a) is amended--
        (1) by striking ``Each institution participating'' and 
    inserting ``(a) Community Service-Learning.--Each institution 
    participating''; and
        (2) by adding at the end the following new subsection:
    ``(b) Off-Campus Community Service.--
        ``(1) Grants authorized.--In addition to funds made available 
    under section 443(b)(2)(A), the Secretary is authorized to award 
    grants to institutions participating under this part to supplement 
    off-campus community service employment.
        ``(2) Use of funds.--An institution shall ensure that funds 
    granted to such institution under this subsection are used in 
    accordance with section 443(b)(2)(A) to recruit and compensate 
    students (including compensation for time spent in training and for 
    travel directly related to such community service).
        ``(3) Priority.--In awarding grants under this subsection, the 
    Secretary shall give priority to applications that support 
    postsecondary students assisting with early childhood education 
    activities and activities in preparation for emergencies and 
    natural disasters.
        ``(4) Authorization of appropriations.--There are authorized to 
    be appropriated to carry out this subsection such sums as may be 
    necessary for fiscal year 2009 and each of the five succeeding 
    fiscal years.''.
    SEC. 447. 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 striking subsection (e) and inserting the following:
    ``(e) Definitions.--For the purpose of this section--
        ``(1) the term `work college' means an eligible institution 
    that--
            ``(A) has been a public or private nonprofit, four-year, 
        degree-granting institution with a commitment to community 
        service;
            ``(B) has operated a comprehensive work-learning-service 
        program for at least two years;
            ``(C) requires 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 
        five hours each week, or at least 80 hours during each period 
        of enrollment, except summer school, unless the student is 
        engaged in an institutionally organized or approved study 
        abroad or externship program; and
            ``(D) provides students participating in the comprehensive 
        work-learning-service program with the opportunity to 
        contribute to their education and to the welfare of the 
        community as a whole; and
        ``(2) the term `comprehensive student work-learning-service 
    program' means a student work-learning-service program that--
            ``(A) 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
        (3) in subsection (f), by striking ``$5,000,000'' and all that 
    follows through the period and inserting ``such sums as may be 
    necessary for fiscal year 2009 and each of the five succeeding 
    fiscal years.''.

                  PART D--FEDERAL DIRECT STUDENT LOAN

    SEC. 451. TERMS AND CONDITIONS OF LOANS.
    (a) Income-Based Repayment.--Section 455(d)(1) (20 U.S.C. 
1087e(d)(1)) is amended--
        (1) in subparagraph (C), by striking ``and'' after the 
    semicolon;
        (2) in subparagraph (D), by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following:
            ``(E) beginning on July 1, 2009, an income-based repayment 
        plan that enables borrowers who have a partial financial 
        hardship to make a lower monthly payment in accordance with 
        section 493C, except that the plan described in this 
        subparagraph shall not be available to the borrower of a 
        Federal Direct PLUS Loan made on behalf of a dependent student 
        or a Federal Direct Consolidation Loan, if the proceeds of such 
        loan were used to discharge the liability on such Federal 
        Direct PLUS Loan or a loan under section 428B made on behalf of 
        a dependent student.''.
    (b) Public Service Job Definition.--
        (1) In general.--Section 455(m)(3)(B) (20 U.S.C. 
    1087e(m)(3)(B)) is amended to read as follows:
            ``(B) Public service job.--The term `public service job' 
        means--
                ``(i) a full-time job in emergency management, 
            government (excluding time served as a member of Congress), 
            military service, public safety, law enforcement, public 
            health (including nurses, nurse practitioners, nurses in a 
            clinical setting, and full-time professionals engaged in 
            health care practitioner occupations and health care 
            support occupations, as such terms are defined by the 
            Bureau of Labor Statistics), public education, social work 
            in a public child or family service agency, public interest 
            law services (including prosecution or public defense or 
            legal advocacy on behalf of low-income communities at a 
            nonprofit organization), early childhood education 
            (including licensed or regulated childcare, Head Start, and 
            State funded prekindergarten), public service for 
            individuals with disabilities, public service for the 
            elderly, public library sciences, school-based library 
            sciences and other school-based services, or at an 
            organization that is described in section 501(c)(3) of the 
            Internal Revenue Code of 1986 and exempt from taxation 
            under section 501(a) of such Code; or
                ``(ii) teaching as a full-time faculty member at a 
            Tribal College or University as defined in section 316(b) 
            and other faculty teaching in high-needs subject areas or 
            areas of shortage (including nurse faculty, foreign 
            language faculty, and part-time faculty at community 
            colleges), as determined by the Secretary.''.
        (2) Ineligibility for double benefits.--Section 455(m) (20 
    U.S.C. 1087e(m)) is further amended by adding at the end the 
    following:
        ``(4) Ineligibility for double benefits.--No borrower may, for 
    the same service, receive a reduction of loan obligations under 
    both this subsection and section 428J, 428K, 428L, or 460.''.
    (c) Identity Fraud Protection.--Section 455 (as amended by this 
section) (20 U.S.C. 1087e) is amended by adding at the end the 
following:
    ``(n) Identity Fraud Protection.--The Secretary shall take such 
steps as may be necessary to ensure that monthly Federal Direct Loan 
statements and other publications of the Department do not contain more 
than four digits of the Social Security number of any individual.''.
    (d) No Accrual of Interest for Active Duty Service Members.--
Section 455 (as amended by this section) (20 U.S.C. 1087e) is further 
amended by adding at the end the following:
    ``(o) No Accrual of Interest for Active Duty Service Members.--
        ``(1) In general.--Notwithstanding any other provision of this 
    part and in accordance with paragraphs (2) and (4), interest shall 
    not accrue for an eligible military borrower on a loan made under 
    this part for which the first disbursement is made on or after 
    October 1, 2008.
        ``(2) Consolidation loans.--In the case of any consolidation 
    loan made under this part that is disbursed on or after October 1, 
    2008, interest shall not accrue pursuant to this subsection only on 
    such portion of such loan as was used to repay a loan made under 
    this part for which the first disbursement is made on or after 
    October 1, 2008.
        ``(3) Eligible military borrower.--In this subsection, the term 
    `eligible military borrower' means an individual who--
            ``(A)(i) is serving on active duty during a war or other 
        military operation or national emergency; or
            ``(ii) is performing qualifying National Guard duty during 
        a war or other military operation or national emergency; and
            ``(B) is serving in an area of hostilities in which service 
        qualifies for special pay under section 310 of title 37, United 
        States Code.
        ``(4) Limitation.--An individual who qualifies as an eligible 
    military borrower under this subsection may receive the benefit of 
    this subsection for not more than 60 months.''.
    (e) Disclosures.--Section 455 (as amended by this section) (20 
U.S.C. 1087e) is further amended by adding at the end the following:
    ``(p) Disclosures.--Each institution of higher education with which 
the Secretary has an agreement under section 453, and each contractor 
with which the Secretary has a contract under section 456, shall, with 
respect to loans under this part and in accordance with such 
regulations as the Secretary shall prescribe, comply with each of the 
requirements under section 433 that apply to a lender with respect to a 
loan under part B.''.
    SEC. 452. FUNDS FOR ADMINISTRATIVE EXPENSES.
    Section 458(a) (20 U.S.C. 1087h(a)) is amended--
        (1) in paragraph (2)--
            (A) in the heading of such paragraph, by striking ``2011'' 
        and inserting ``2014''; and
            (B) by striking ``2011'' and inserting ``2014''; and
        (2) in paragraph (3), by striking ``2011'' and inserting 
    ``2014''.
    SEC. 453. GUARANTY AGENCY RESPONSIBILITIES AND PAYMENTS; REPORTS 
      AND COST ESTIMATES.
    Section 459A of the Higher Education Act of 1965 (20 U.S.C. 1087i-
1) is amended--
        (1) by redesignating subsection (d) as subsection (f); and
        (2) by inserting after subsection (c) the following:
    ``(d) Guaranty Agency Responsibilities and Payments.--
Notwithstanding any other provision of this Act, beginning on the date 
on which the Secretary purchases a loan under this section--
        ``(1) the guaranty agency that insured such loan shall cease to 
    have any obligations, responsibilities, or rights (including rights 
    to any payment) under this Act for any activity related to the 
    administration of such loan that is carried out or required to be 
    carried out on or after the date of such purchase; and
        ``(2) the insurance issued by such agency pursuant to section 
    428(b) for such loan shall cease to be effective with respect to 
    any default on such loan that occurs on or after the date of such 
    purchase.
    ``(e) Reports and Cost Estimates.--The Secretary shall prepare, 
transmit to the authorizing committees, and make available to the 
public, the following:
        ``(1) Quarterly reports.--
            ``(A) Contents.--Not later than 60 days after the end of 
        each quarter during the period beginning July 1, 2008, and 
        ending September 30, 2009, a quarterly report on--
                ``(i) the number of loans the Secretary has agreed to 
            purchase, or has purchased, using the authority provided 
            under this section, and the total amount of outstanding 
            principal and accrued interest of such loans, during such 
            period; and
                ``(ii) the number of loans in which the Secretary has 
            purchased a participation interest, and the total amount of 
            outstanding principal and accrued interest of such loans, 
            during such period.
            ``(B) Disaggregated information.--For each quarterly 
        report, the information described in clauses (i) and (ii) of 
        subparagraph (A) shall be disaggregated by lender and, for each 
        lender, by category of institution (using the categories 
        described in section 132(d)) and type of loan.
        ``(2) Estimates of purchase program costs.--Not later than 
    February 15, 2010, an estimate of the costs associated with the 
    program of purchasing loans described in paragraph (1)(A)(i) during 
    the period beginning July 1, 2008, and ending September 30, 2009, 
    and an estimate of the costs associated with the program of 
    purchasing a participation interest in loans described in paragraph 
    (1)(A)(ii) during such period. Each such estimate shall--
            ``(A) contain the same level of detail, and be reported in 
        a similar manner, as the budget estimates provided for the loan 
        program under part B and the direct student loan program under 
        this part in the President's annual budget submission to 
        Congress, except that current and future administrative costs 
        shall also be reported;
            ``(B) include an estimate of the gross and net outlays that 
        have been, or will be, incurred by the Federal Government 
        (including subsidy and administrative costs, and any payments 
        made by the Department to lenders, trusts, or other entities 
        related to such activities) in purchasing such loans or 
        purchasing a participation interest in such loans during such 
        period (as applicable); and
            ``(C) include a comparison of--
                ``(i) the average amount of the gross and net outlays 
            (including costs and payments) described in subparagraph 
            (B) for each $100 of loans purchased or for which a 
            participation interest was purchased (as applicable) during 
            such period, disaggregated by type of loan; with
                ``(ii) the average amount of such gross and net outlays 
            (including costs and payments) to the Federal Government 
            for each $100 of comparable loans made under this part and 
            part B during such period, disaggregated by part and by 
            type of loan.
        ``(3) Annual cost estimates.--Not later than February 15 of the 
    fiscal year following each of the fiscal years 2008, 2009, and 
    2010, an annual estimate of the costs associated with the program 
    of purchasing loans described in paragraph (1)(A)(i), and an annual 
    estimate of the costs associated with the program of purchasing a 
    participation interest in loans described in paragraph (1)(A)(ii), 
    that includes the information described in paragraph (2) for such 
    fiscal year.''.
    SEC. 454. LOAN CANCELLATION FOR TEACHERS.
    (a) In General.--Section 460 (20 U.S.C. 1087j) is amended--
        (1) in subsection (b)(1)(A)(i)--
            (A) by inserting ``or location'' after ``a school''; and
            (B) by inserting ``or locations'' after ``schools''; and
        (2) in subsection (c)(3)(B)(iii), by inserting ``or, in the 
    case of a teacher who is employed by an educational service agency, 
    as certified by the chief administrative officer of such agency,'' 
    after ``borrower is employed,''.
    (b) Prevention of Double Benefits.--Section 460(g)(2) (20 U.S.C. 
1087j(g)(2)) is amended to read as follows:
        ``(2) Prevention of double benefits.--No borrower may, for the 
    same voluntary service, receive a benefit under both this section 
    and--
            ``(A) section 428J;
            ``(B) section 428K;
            ``(C) section 455(m); or
            ``(D) subtitle D of title I of the National and Community 
        Service Act of 1990 (42 U.S.C. 12571 et seq.).''.
    (c) Technical Amendments.--Section 460(b) (as amended by subsection 
(a)(1)) (20 U.S.C. 1087j(b)) is further amended--
        (1) by striking paragraph (2);
        (2) by striking ``Program Authorized.--'' and all that follows 
    through ``The Secretary shall'' and inserting ``Program 
    Authorized.--The Secretary shall'';
        (3) by redesignating subparagraph (B) as paragraph (2), and 
    adjusting the margin accordingly; and
        (4) by redesignating subparagraph (A) as paragraph (1), by 
    redesignating clauses (i) and (ii) of such paragraph (as so 
    redesignated) as subparagraphs (A) and (B), respectively, and by 
    adjusting the margins accordingly.
    (d) Conforming Amendments.--Section 460 (20 U.S.C. 1087j) is 
further amended--
        (1) in subsection (c)(1), by striking ``(b)(1)(A)'' and 
    inserting ``(b)(1)'';
        (2) in subsection (c)(3)--
            (A) in subparagraph (A)(i), by striking ``(b)(1)'' and 
        inserting ``(b)''; and
            (B) in subparagraph (B)(i), by striking ``(b)(1)'' and 
        inserting ``(b)''; and
        (3) in subsection (g)(3), by striking ``(b)(1)(A)(ii)'' and 
    inserting ``(b)(1)(B)''.

                     PART E--FEDERAL PERKINS LOANS

    SEC. 461. EXTENSION OF AUTHORITY.
    Section 461(b) (20 U.S.C. 1087aa(b)) is amended--
        (1) in paragraph (1), by striking ``$250,000,000 for fiscal 
    year 1999'' and all that follows through the period and inserting 
    ``$300,000,000 for fiscal year 2009 and for each of the five 
    succeeding fiscal years.''; and
        (2) in paragraph (2), by striking ``2003'' each place it 
    appears and inserting ``2015''.
    SEC. 462. ALLOWANCE FOR 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. 463. AGREEMENTS WITH INSTITUTIONS.
    (a) Transfers for Collection.--Section 463(a)(4)(B) (20 U.S.C. 
1087cc(a)(4)(B)) is amended to read as follows:
            ``(B) if the institution is not one described in 
        subparagraph (A), the Secretary may allow such institution to 
        refer such note or agreement to the Secretary, without 
        recompense, except that, once every six months, any sums 
        collected on such a loan (less an amount not to exceed 30 
        percent of any such sums collected to cover the Secretary's 
        collection costs) shall be repaid to such institution and 
        treated as an additional capital contribution under section 
        462;''.
    (b) Revise Authority To Prescribe Additional Fiscal Controls.--
Section 463(a)(9) (20 U.S.C. 1087cc(a)(9)) is amended by inserting ``, 
except that nothing in this paragraph shall be construed to permit the 
Secretary to require the assignment of loans to the Secretary other 
than as is provided for in paragraphs (4) and (5)'' before the period.
    SEC. 464. PERKINS 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) Discharge and Cancellation Rights in Cases of Disability.--
        (1) Amendment.--Section 464 (20 U.S.C. 1087dd(c)) is further 
    amended--
            (A) in subsection (c)(1)(F), by striking ``canceled upon 
        the death'' and all that follows through the semicolon and 
        inserting ``cancelled--
                ``(i) upon the death of the borrower;
                ``(ii) if the borrower becomes permanently and totally 
            disabled as determined in accordance with regulations of 
            the Secretary;
                ``(iii) if the borrower is unable to engage in any 
            substantial gainful activity by reason of any medically 
            determinable physical or mental impairment that can be 
            expected to result in death, has lasted for a continuous 
            period of not less than 60 months, or can be expected to 
            last for a continuous period of not less than 60 months; or
                ``(iv) if the borrower is determined by the Secretary 
            of Veterans Affairs to be unemployable due to a service-
            connected disability;''; and
            (B) by adding at the end the following:
    ``(k) The Secretary may develop such additional safeguards as the 
Secretary determines necessary to prevent fraud and abuse in the 
cancellation of liability under subsection (c)(1)(F). Notwithstanding 
subsection (c)(1)(F), the Secretary may promulgate regulations to 
resume collection on loans cancelled under subsection (c)(1)(F) in any 
case in which--
        ``(1) a borrower received a cancellation of liability under 
    subsection (c)(1)(F) and after the cancellation the borrower--
            ``(A) receives a loan made, insured, or guaranteed under 
        this title; or
            ``(B) has earned income in excess of the poverty line; or
        ``(2) the Secretary determines necessary.''.
        (2) Effective date.--The amendments made by paragraph (1) shall 
    take effect on July 1, 2008.
    (c) Forbearance.--Section 464 (20 U.S.C. 1087dd) is further 
amended--
        (1) in subsection (e)--
            (A) in the matter preceding paragraph (1), by striking ``, 
        upon written request,'' and inserting ``, as documented in 
        accordance with paragraph (2),'';
            (B) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively;
            (C) by inserting ``(1)'' after ``Forbearance.--''; and
            (D) by adding at the end the following:
    ``(2) For the purpose of paragraph (1), the terms of forbearance 
agreed to by the parties shall be documented by--
        ``(A) confirming the agreement of the borrower by notice to the 
    borrower from the institution of higher education; and
        ``(B) recording the terms in the borrower's file.'';
        (2) in subsection (h)(1)(A), by striking ``12 ontime'' and 
    inserting ``9 on-time''; and
        (3) in subsection (j)(2), by striking ``(e)(3)'' and inserting 
    ``(e)(1)(C)''.
    SEC. 465. CANCELLATION FOR PUBLIC SERVICE.
    Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
        (1) in paragraph (2)--
            (A) by striking subparagraph (A) and inserting the 
        following:
        ``(A) as a full-time teacher for service in an academic year 
    (including such a teacher employed by an educational service 
    agency)--
            ``(i) in a public or other nonprofit private elementary 
        school or secondary school, which, for the purpose of this 
        paragraph and for that year--
                ``(I) has been determined by the Secretary (pursuant to 
            regulations of the Secretary and after consultation with 
            the State educational agency of the State in which the 
            school is located) to be a school in which the number of 
            children meeting a measure of poverty under section 
            1113(a)(5) of the Elementary and Secondary Education Act of 
            1965, exceeds 30 percent of the total number of children 
            enrolled in such school; and
                ``(II) is in the school district of a local educational 
            agency which is eligible in such year for assistance 
            pursuant to part A of title I of the Elementary and 
            Secondary Education Act of 1965; or
            ``(ii) in one or more public, or nonprofit private, 
        elementary schools or secondary schools or locations operated 
        by an educational service agency that have been determined by 
        the Secretary (pursuant to regulations of the Secretary and 
        after consultation with the State educational agency of the 
        State in which the educational service agency operates) to be a 
        school or location at which the number of children taught who 
        meet a measure of poverty under section 1113(a)(5) of the 
        Elementary and Secondary Education Act of 1965, exceeds 30 
        percent of the total number of children taught at such school 
        or location;'';
            (B) in subparagraph (B), by striking ``Head Start Act 
        which'' and inserting ``Head Start Act, or in a prekindergarten 
        or child care program that is licensed or regulated by the 
        State, that'';
            (C) in subparagraph (C), by inserting ``, including a 
        system administered by an educational service agency'' after 
        ``secondary school system'';
            (D) by striking subparagraph (F) and inserting the 
        following:
        ``(F) as a full-time law enforcement officer or corrections 
    officer for service to local, State, or Federal law enforcement or 
    corrections agencies, or as a full-time attorney employed in a 
    defender organization established in accordance with section 
    3006A(g)(2) of title 18, United States Code;'';
            (E) in subparagraph (H), by striking ``or'' after the 
        semicolon;
            (F) in subparagraph (I), by striking the period and 
        inserting a semicolon; and
            (G) by inserting before the matter following subparagraph 
        (I) the following:
        ``(J) as a full-time fire fighter for service to a local, 
    State, or Federal fire department or fire district;
        ``(K) as a full-time faculty member at a Tribal College or 
    University, as that term is defined in section 316;
        ``(L) as a librarian, if the librarian has a master's degree in 
    library science and is employed in--
            ``(i) an elementary school or secondary school that is 
        eligible for assistance under part A of title I of the 
        Elementary and Secondary Education Act of 1965; or
            ``(ii) a public library that serves a geographic area that 
        contains one or more schools eligible for assistance under part 
        A of title I of the Elementary and Secondary Education Act of 
        1965; or
        ``(M) as a full-time speech language pathologist, if the 
    pathologist has a masters degree and is working exclusively with 
    schools that are eligible for assistance under title I of the 
    Elementary and Secondary Education Act of 1965.''; and
        (2) in paragraph (3)(A)--
            (A) in clause (i)--
                (i) by inserting ``(D),'' after ``(C),''; and
                (ii) by striking ``or (I)'' and inserting ``(I), (J), 
            (K), (L), or (M)'';
            (B) in clause (ii), by inserting ``or'' after the 
        semicolon;
            (C) by striking clause (iii); and
            (D) by redesignating clause (iv) as clause (iii).
    SEC. 466. SENSE OF CONGRESS REGARDING FEDERAL PERKINS LOANS.
    It is the sense of Congress that the Federal Perkins Loan Program, 
which provides low-interest loans to help needy students finance the 
costs of postsecondary education, is an important part of Federal 
student aid, and should remain a campus-based aid program at colleges 
and universities.

                         PART F--NEED ANALYSIS

    SEC. 471. COST OF ATTENDANCE.
    (a) Amendments.--Section 472(3) (20 U.S.C. 1087ll(3)) is amended--
        (1) in subparagraph (B), by striking ``and'' after the 
    semicolon;
        (2) by redesignating subparagraph (C) as subparagraph (D); and
        (3) by inserting after subparagraph (B), as amended by 
    paragraph (1), the following:
            ``(C) for students who live in housing located on a 
        military base or for which a basic allowance is provided under 
        section 403(b) of title 37, United States Code, shall be an 
        allowance based on the expenses reasonably incurred by such 
        students for board but not for room; and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on July 1, 2010.
    SEC. 472. DISCRETION TO MAKE ADJUSTMENTS.
    (a) Amendments.--Section 479A(a) (as amended by Public Law 110-84) 
(20 U.S.C. 1087tt(a)) is amended--
        (1) by striking ``medical or dental expenses'' and inserting 
    ``medical, dental, or nursing home expenses'';
        (2) by inserting ``or dependent care'' after ``child care'';
        (3) by inserting ``student or'' before ``family member who is a 
    dislocated worker''; and
        (4) by striking the second to last sentence and inserting the 
    following: ``In addition, nothing in this title shall be 
    interpreted as limiting the authority of the student financial aid 
    administrator in such cases (1) to request and use supplementary 
    information about the financial status or personal circumstances of 
    eligible applicants in selecting recipients and determining the 
    amount of awards under this title, or (2) to offer a dependent 
    student financial assistance under section 428H or a Federal Direct 
    Unsubsidized Stafford Loan without requiring the parents of such 
    student to file the financial aid form prescribed under section 483 
    if the student financial aid administrator verifies that the parent 
    or parents of such student have ended financial support of such 
    student and refuse to file such form.''.
    (b) Effective Date Amendment to the College Cost Reduction and 
Access Act.--Section 603(b) of the College Cost Reduction and Access 
Act (Public Law 110-84) is amended by striking ``July 1, 2009'' and 
inserting ``the date of enactment of the Higher Education Opportunity 
Act''.
    SEC. 473. DEFINITIONS.
    (a) Total Income.--Section 480(a) (as amended by Public Law 110-84) 
(20 U.S.C. 1087vv(a)) is amended--
        (1) in paragraph (1)--
            (A) by inserting ``(A)'' after ``(1)'';
            (B) by inserting ``subparagraph (B) and'' after ``provided 
        in''; and
            (C) by adding at the end the following new subparagraph:
    ``(B) Notwithstanding section 478(a), the Secretary may provide for 
the use of data from the second preceding tax year when and to the 
extent necessary to carry out the simplification of applications 
(including simplification for a subset of applications) used for the 
estimation and determination of financial aid eligibility. Such 
simplification may include the sharing of data between the Internal 
Revenue Service and the Department, pursuant to the consent of the 
taxpayer.''; and
        (2) in paragraph (2), by inserting ``no portion of veterans' 
    education benefits received by an individual,'' after ``any program 
    by an individual,''.
    (b) Untaxed Income and Benefits.--Section 480(b)(1)(E) (as amended 
by Public Law 110-84) (20 U.S.C. 1087vv(b)(1)(E)) is amended by 
inserting ``, except that the value of on-base military housing or the 
value of basic allowance for housing determined under section 403(b) of 
title 37, United States Code, received by the parents, in the case of a 
dependent student, or the student or student's spouse, in the case of 
an independent student, shall be excluded'' before the semicolon.
    (c) Independent Student.--Section 480(d)(1) (as amended by Public 
Law 110-84) (20 U.S.C. 1087vv(d)(1)) is amended--
        (1) by striking subparagraph (B) and inserting the following:
            ``(B) is an orphan, in foster care, or a ward of the court, 
        or was an orphan, in foster care, or a ward of the court at any 
        time when the individual was 13 years of age or older;''; and
        (2) by striking subparagraph (C) and inserting the following:
            ``(C) is, or was immediately prior to attaining the age of 
        majority, an emancipated minor or in legal guardianship as 
        determined by a court of competent jurisdiction in the 
        individual's State of legal residence;''.
    (d) Treatment of Cooperative Education Work Income.--Section 480(e) 
(as amended by Public Law 110-84) (20 U.S.C. 1087vv(e)) is amended--
        (1) by redesignating paragraphs (2) through (5) as paragraphs 
    (3) through (6), respectively; and
        (2) by inserting after paragraph (1) the following new 
    paragraph:
        ``(2) any income earned from work under a cooperative education 
    program offered by an institution of higher education;''.
    (e) Other Financial Assistance.--Section 480(j)(1) (20 U.S.C. 
1087vv(j)(1)) is amended--
        (1) by striking ``veterans' education benefits as defined in 
    subsection (c), and''; and
        (2) by inserting before the period at the end the following: 
    ``, but excluding veterans' education benefits as defined in 
    subsection (c)''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on July 1, 2010.

       PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

    SEC. 481. DEFINITIONS.
    Section 481 (20 U.S.C. 1088) is amended--
        (1) in subsection (a)(2)(B), by inserting ``and that measures 
    program length in credit hours or clock hours'' after 
    ``baccalaureate degree''; and
        (2) by adding at the end the following:
    ``(e) Consumer Reporting Agency.--For purposes of this title, the 
term `consumer reporting agency' has the meaning given the term 
`consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis' in Section 603(p) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(p)).
    ``(f) Definition of Educational Service Agency.--For purposes of 
parts B, D, and E, the term `educational service agency' has the 
meaning given the term in section 9101 of the Elementary and Secondary 
Education Act of 1965.''.
    SEC. 482. MASTER CALENDAR.
    (a) Amendment.--Section 482 (20 U.S.C. 1089) is amended--
        (1) in subsection (a)(1), by striking subparagraphs (B) and (C) 
    and inserting the following:
            ``(B) by March 1: proposed modifications, updates, and 
        notices pursuant to sections 478 and 483(a)(5) published in the 
        Federal Register;
            ``(C) by June 1: final modifications, updates, and notices 
        pursuant to sections 478 and 483(a)(5) published in the Federal 
        Register;''; and
        (2) by adding at the end the following:
    ``(e) Compliance Calendar.--Prior to the beginning of each award 
year, the Secretary shall provide to institutions of higher education a 
list of all the reports and disclosures required under this Act. The 
list shall include--
        ``(1) the date each report or disclosure is required to be 
    completed and to be submitted, made available, or disseminated;
        ``(2) the required recipients of each report or disclosure;
        ``(3) any required method for transmittal or dissemination of 
    each report or disclosure;
        ``(4) a description of the content of each report or disclosure 
    sufficient to allow the institution to identify the appropriate 
    individuals to be assigned the responsibility for such report or 
    disclosure;
        ``(5) references to the statutory authority, applicable 
    regulations, and current guidance issued by the Secretary regarding 
    each report or disclosure; and
        ``(6) any other information which is pertinent to the content 
    or distribution of the report or disclosure.''.
    (b) Effective Date.--The amendment made by subsection (a)(1) shall 
take effect on July 1, 2010.
    SEC. 483. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS AND PROCESSES.
    (a) Common Financial Aid Form Development and Processing.--Section 
483 (20 U.S.C. 1090) is amended--
        (1) in subsection (a), by striking paragraphs (1) through (7) 
    and inserting 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). The 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'. The Secretary 
    shall work to make the FAFSA consumer-friendly and to make 
    questions on the FAFSA easy for students and families to read and 
    understand, and shall ensure that the FAFSA is available in formats 
    accessible to individuals with disabilities.
        ``(2) Paper format.--
            ``(A) In general.--The Secretary shall develop, make 
        available, and process--
                ``(i) a paper version of EZ FAFSA, as described in 
            subparagraph (B); and
                ``(ii) a paper version of the other forms described in 
            this subsection, in accordance with subparagraph (C), for 
            any applicant who does not meet the requirements of or does 
            not wish to use the process described in subparagraph (B).
            ``(B) EZ fafsa.--
                ``(i) In general.--The Secretary shall develop and use, 
            after appropriate field testing, a simplified paper form, 
            to be known as the EZ FAFSA, to be used for applicants 
            meeting the requirements of subsection (b) or (c) of 
            section 479.
                ``(ii) Reduced data requirements.--The EZ FAFSA 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 
            EZ FAFSA such data items as may be necessary to award State 
            financial assistance, as provided under paragraph (5), 
            except that the Secretary shall not include a State's data 
            if that State does not permit the State's resident 
            applicants to use the EZ FAFSA for State assistance.
                ``(iv) Free availability and processing.--The 
            provisions of paragraph (6) shall apply to the EZ FAFSA, 
            and the data collected by means of the EZ FAFSA shall be 
            available to institutions of higher education, guaranty 
            agencies, and States in accordance with paragraph (10).
            ``(C) Promoting the use of electronic fafsa.--
                ``(i) In general.--The Secretary shall make all efforts 
            to encourage all applicants to utilize the electronic 
            version of the forms described in paragraph (3).
                ``(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, 
            accessible, and downloadable to students on the same 
            website used to provide students with the electronic 
            version of the forms described in paragraph (3).
                ``(iii) Requests for printed copy.--The Secretary shall 
            provide a printed copy of the full paper version of FAFSA 
            upon request.
                ``(iv) Reporting requirement.--The Secretary shall 
            maintain data, and periodically report to Congress, on the 
            impact of the digital divide on students completing 
            applications for aid under this title. The Secretary shall 
            report on the steps taken to eliminate the digital divide 
            and reduce production of the paper form described in 
            subparagraph (A). The Secretary's report shall specifically 
            address the impact of the digital divide on the following 
            student populations:

                    ``(I) Independent students.
                    ``(II) Traditionally underrepresented students.
                    ``(III) Dependent students.

        ``(3) Electronic format.--
            ``(A) In general.--The Secretary shall produce, distribute, 
        and process forms in electronic format to meet the requirements 
        of paragraph (1). The Secretary shall develop an electronic 
        version of the forms for applicants who do not meet the 
        requirements of subsection (b) or (c) of section 479.
            ``(B) Simplified applications: fafsa on the web.--
                ``(i) In general.--The Secretary shall develop and use 
            a simplified electronic version of the form to be used by 
            applicants meeting the requirements under subsection (b) or 
            (c) of section 479.
                ``(ii) Reduced data requirements.--The simplified 
            electronic version of the 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) 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.
            ``(C) State data.--The Secretary shall include on the 
        electronic version of the forms such items as may be necessary 
        to determine eligibility for State financial assistance, as 
        provided under paragraph (5), except the Secretary shall not 
        require an applicant to enter data pursuant to this 
        subparagraph that are required by any State other than the 
        applicant's State of residence.
            ``(D) Availability and processing.--The data collected by 
        means of the simplified electronic version of the forms shall 
        be available to institutions of higher education, guaranty 
        agencies, and States in accordance with paragraph (10).
            ``(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, except 
        as may be permitted under this title.
            ``(F) Signature.--Notwithstanding any other provision of 
        this Act, the Secretary may continue to permit an electronic 
        version of the form under this paragraph to be submitted 
        without a signature, if a signature is subsequently submitted 
        by the applicant or if the applicant uses a personal 
        identification number provided by the Secretary under 
        subparagraph (G).
            ``(G) Personal identification numbers authorized.--The 
        Secretary may continue to assign to an applicant a personal 
        identification number--
                ``(i) to enable the applicant to use such number as a 
            signature for purposes of completing an electronic version 
            of a form developed under this paragraph; and
                ``(ii) for any purpose determined by the Secretary to 
            enable the Secretary to carry out this title.
            ``(H) Personal identification number improvement.--The 
        Secretary shall continue to work with the Commissioner of 
        Social Security to minimize the time required for an applicant 
        to obtain a personal identification number when applying for 
        aid under this title through an electronic version of a form 
        developed under this paragraph.
        ``(4) Streamlining.--
            ``(A) Streamlined reapplication process.--
                ``(i) In general.--The Secretary shall continue to 
            streamline reapplication forms and processes for an 
            applicant who applies for financial assistance under this 
            title in the next succeeding academic year subsequent to an 
            academic year for which such applicant applied for 
            financial assistance under this title.
                ``(ii) Updating of data elements.--The Secretary shall 
            determine, in cooperation with States, institutions of 
            higher education, agencies, and organizations involved in 
            student financial assistance, the data elements that may be 
            transferred from the previous academic year's application 
            and those data elements that shall be updated.
                ``(iii) 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.
                ``(iv) 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 data that are necessary to 
            determine eligibility under such section.
            ``(B) Reduction of data elements.--
                ``(i) Reduction encouraged.--Of the number of data 
            elements on the FAFSA used for the 2009-2010 award year, 
            the Secretary, in cooperation with representatives of 
            agencies and organizations involved in student financial 
            assistance and consistent with efforts under subsection 
            (c), shall continue to reduce the number of such data 
            elements required to be entered by all applicants, with the 
            goal of reducing such number by 50 percent.
                ``(ii) Report.--The Secretary shall submit a report on 
            the process of this reduction to each of the authorizing 
            committees by June 30, 2011.
        ``(5) State requirements.--
            ``(A) In general.--Except as provided in paragraphs 
        (2)(B)(iii), (3)(B), and (4)(A)(ii), 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 need-based State aid. 
        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. The 
        number of such data items shall not be less than the number 
        included on the form for the 2008-2009 award year unless a 
        State notifies the Secretary that the State no longer requires 
        those data items for the distribution of State need-based aid.
            ``(B) Annual review.--The Secretary shall conduct an annual 
        review to determine--
                ``(i) which data items each State requires to award 
            need-based State aid; and
                ``(ii) if the State will permit an applicant to file a 
            form described in paragraph (2)(B) or (3)(B).
            ``(C) Federal register notice.--Beginning with the forms 
        developed under paragraphs (2)(B) and (3)(B) for the award year 
        2010-2011, 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 forms described in 
            paragraphs (2)(B) and (3)(B); and
                ``(ii) of the State-specific nonfinancial data that the 
            State agency requires for delivery of State need-based 
            financial aid.
            ``(D) Use of simplified forms encouraged.--The Secretary 
        shall encourage States to take such steps as are necessary to 
        encourage the use of simplified forms under this subsection, 
        including those forms described in paragraphs (2)(B) and 
        (3)(B), for applicants who meet the requirements of subsection 
        (b) or (c) of section 479.
            ``(E) Consequences if state does not accept simplified 
        forms.--If a State does not permit an applicant to file a form 
        described in paragraph (2)(B) or (3)(B) for purposes of 
        determining eligibility for State need-based financial aid, the 
        Secretary may determine that State-specific questions for such 
        State will not be included on a form described in paragraph 
        (2)(B) or (3)(B). If the Secretary makes such determination, 
        the Secretary shall advise the State of the Secretary's 
        determination.
            ``(F) Lack of state response to request for information.--
        If a State does not respond to the Secretary's request for 
        information under subparagraph (B), the Secretary shall--
                ``(i) permit residents of that State to complete 
            simplified forms under paragraphs (2)(B) and (3)(B); and
                ``(ii) not require any resident of such State to 
            complete any data items previously required by that State 
            under this section.
            ``(G) Restriction.--The Secretary shall, to the extent 
        practicable, not require applicants to complete any financial 
        or nonfinancial data items that are not required--
                ``(i) by the applicant's State; or
                ``(ii) by the Secretary.
        ``(6) Charges to students and parents for use of forms 
    prohibited.--The need and eligibility of a student for financial 
    assistance under parts A through E (other than under subpart 4 of 
    part A) may be determined only by using a form developed by the 
    Secretary under this subsection. Such forms shall be produced, 
    distributed, and processed by the Secretary, and no parent or 
    student shall be charged a fee by the Secretary, a contractor, a 
    third-party servicer or private software provider, or any other 
    public or private entity for the collection, processing, or 
    delivery of financial aid through the use of such forms. No data 
    collected on a form for which a fee is charged shall be used to 
    complete the form prescribed under this section, except that a 
    Federal or State income tax form prepared by a paid income tax 
    preparer or preparer service for the primary purpose of filing a 
    Federal or State income tax return may be used to complete the form 
    prescribed under this section.
        ``(7) Restrictions on use of pin.--No person, commercial 
    entity, or other entity may request, obtain, or utilize an 
    applicant's personal identification number assigned under paragraph 
    (3)(G) for purposes of submitting a form developed under this 
    subsection on an applicant's behalf.
        ``(8) Application processing cycle.--The Secretary shall enable 
    students to submit forms developed under this subsection and 
    initiate the processing of such forms under this subsection, as 
    early as practicable prior to January 1 of the student's planned 
    year of enrollment.
        ``(9) Early estimates.--The Secretary shall continue to--
            ``(A) permit applicants to enter data in such forms as 
        described in this subsection in the years prior to enrollment 
        in order to obtain a non-binding estimate of the applicant's 
        family contribution (as defined in section 473);
            ``(B) permit applicants to update information submitted on 
        forms described in this subsection, without needing to re-enter 
        previously submitted information;
            ``(C) develop a means to inform applicants, in the years 
        prior to enrollment, of student aid options for individuals in 
        similar financial situations;
            ``(D) develop a means to provide a clear and conspicuous 
        notice that the applicant's expected family contribution is 
        subject to change and may not reflect the final expected family 
        contribution used to determine Federal student financial aid 
        award amounts under this title; and
            ``(E) consult with representatives of States, institutions 
        of higher education, and other individuals with experience or 
        expertise in student financial assistance application processes 
        in making updates to forms used to provide early estimates 
        under this paragraph.
        ``(10) Distribution of data.--Institutions of higher education, 
    guaranty agencies, and States shall receive, without charge, the 
    data collected by the Secretary using a form developed under this 
    subsection for the purposes of processing loan applications and 
    determining need and eligibility for institutional and State 
    financial aid awards. Entities designated by institutions of higher 
    education, guaranty agencies, or States to receive such data shall 
    be subject to all the requirements of this section, unless such 
    requirements are waived by the Secretary.
        ``(11) Third party servicers and private software providers.--
    To the extent practicable and in a timely manner, the Secretary 
    shall provide, to private organizations and consortia that develop 
    software used by institutions of higher education for the 
    administration of funds under this title, all the necessary 
    specifications that the organizations and consortia must meet for 
    the software the organizations and consortia develop, produce, and 
    distribute (including any diskette, modem, or network 
    communications) to be so used. The specifications shall contain 
    record layouts for required data. The Secretary shall develop in 
    advance of each processing cycle an annual schedule for providing 
    such specifications. The Secretary, to the extent practicable, 
    shall use multiple means of providing such specifications, 
    including conferences and other meetings, outreach, and technical 
    support mechanisms (such as training and printed reference 
    materials). The Secretary shall, from time to time, solicit from 
    such organizations and consortia means of improving the support 
    provided by the Secretary.
        ``(12) Parent's social security number and birth date.--The 
    Secretary is authorized to include space on the forms developed 
    under this subsection for the social security number and birth date 
    of parents of dependent students seeking financial assistance under 
    this title.'';
        (2) by striking subsections (b) and (e);
        (3) by redesignating subsections (c) and (d) (as amended by 
    section 103(b)(10)) as subsections (b) and (c), respectively;
        (4) in subsection (c) (as redesignated by paragraph (3)), by 
    striking ``that is authorized'' and all that follows through the 
    period at the end and inserting ``or other appropriate provider of 
    technical assistance and information on postsecondary educational 
    services for individuals with disabilities, including the National 
    Technical Assistance Center under section 777. The Secretary shall 
    continue to implement, to the extent practicable, a toll-free 
    telephone based system to permit applicants who meet the 
    requirements of subsection (b) or (c) of section 479 to submit an 
    application over such system.''; and
        (5) by adding at the end the following:
    ``(d) Assistance in Preparation of Financial Aid Application.--
        ``(1) Preparation authorized.--Notwithstanding any provision of 
    this Act, an applicant may use a preparer for consultative or 
    preparation services for the completion of a form developed under 
    subsection (a) if the preparer satisfies the requirements of this 
    subsection.
        ``(2) Preparer identification required.--If an applicant uses a 
    preparer for consultative or preparation services for the 
    completion of a form developed under subsection (a), and for which 
    a fee is charged, the preparer shall--
            ``(A) include, at the time the form is submitted to the 
        Department, the name, address or employer's address, social 
        security number or employer identification number, and 
        organizational affiliation of the preparer on the applicant's 
        form; and
            ``(B) be subject to the same penalties as an applicant for 
        purposely giving false or misleading information in the 
        application.
        ``(3) Additional requirements.--A preparer that provides 
    consultative or preparation services pursuant to this subsection 
    shall--
            ``(A) clearly inform each individual upon initial contact, 
        including contact through the Internet or by telephone, that 
        the FAFSA and EZ FAFSA are free forms that may be completed 
        without professional assistance via paper or electronic version 
        of the forms that are provided by the Secretary;
            ``(B) include in any advertising clear and conspicuous 
        information that the FAFSA and EZ FAFSA are free forms that may 
        be completed without professional assistance via paper or 
        electronic version of the forms that are provided by the 
        Secretary;
            ``(C) if advertising or providing any information on a 
        website, or if providing services through a website, include on 
        the website a link to the website that provides the electronic 
        version of the forms developed under subsection (a); and
            ``(D) not produce, use, or disseminate any other form for 
        the purpose of applying for Federal student financial aid other 
        than the form developed by the Secretary under subsection (a).
        ``(4) Special rule.--Nothing in this Act shall be construed to 
    limit preparers of the forms required under this title that meet 
    the requirements of this subsection from collecting source 
    information from a student or parent, including Internal Revenue 
    Service tax forms, in providing consultative and preparation 
    services in completing the forms.
    ``(e) Early Application and Estimated Award Demonstration 
Program.--
        ``(1) Purpose and objectives.--The purpose of the demonstration 
    program under this subsection is to measure the benefits, in terms 
    of student aspirations and plans to attend an institution of higher 
    education, and any adverse effects, in terms of program costs, 
    integrity, distribution, and delivery of aid under this title, of 
    implementing an early application system for all dependent students 
    that allows dependent students to apply for financial aid using 
    information from two years prior to the year of enrollment. 
    Additional objectives associated with implementation of the 
    demonstration program are the following:
            ``(A) To measure the feasibility of enabling dependent 
        students to apply for Federal, State, and institutional 
        financial aid in their junior year of secondary school, using 
        information from two years prior to the year of enrollment, by 
        completing any of the forms under this subsection.
            ``(B) To identify whether receiving final financial aid 
        award estimates not later than the fall of the senior year of 
        secondary school provides students with additional time to 
        compete for the limited resources available for State and 
        institutional financial aid and positively impacts the college 
        aspirations and plans of these students.
            ``(C) To measure the impact of using income information 
        from the years prior to enrollment on--
                ``(i) eligibility for financial aid under this title 
            and for other State and institutional aid; and
                ``(ii) the cost of financial aid programs under this 
            title.
            ``(D) To effectively evaluate the benefits and adverse 
        effects of the demonstration program on program costs, 
        integrity, distribution, and delivery of financial aid.
        ``(2) Program authorized.--Not later than two years after the 
    date of enactment of the Higher Education Opportunity Act, the 
    Secretary shall implement an early application demonstration 
    program enabling dependent students who wish to participate in the 
    program--
            ``(A) to complete an application under this subsection 
        during the academic year that is two years prior to the year 
        such students plan to enroll in an institution of higher 
        education; and
            ``(B) based on the application described in subparagraph 
        (A), to obtain, not later than one year prior to the year of 
        the students' planned enrollment, information on eligibility 
        for Federal Pell Grants, Federal student loans under this 
        title, and State and institutional financial aid for the 
        student's first year of enrollment in the institution of higher 
        education.
        ``(3) Early application and estimated award.--For all dependent 
    students selected for participation in the demonstration program 
    who submit a completed FAFSA, or, as appropriate, an EZ FAFSA, two 
    years prior to the year such students plan to enroll in an 
    institution of higher education, the Secretary shall, not later 
    than one year prior to the year of such planned enrollment--
            ``(A) provide each student who completes an early 
        application with an estimated determination of such student's--
                ``(i) expected family contribution for the first year 
            of the student's enrollment in an institution of higher 
            education; and
                ``(ii) Federal Pell Grant award for the first such 
            year, based on the maximum Federal Pell Grant award at the 
            time of application; and
            ``(B) remind the students of the need to update the 
        students' information during the calendar year of enrollment 
        using the expedited reapplication process provided for in 
        subsection (a)(4)(A).
        ``(4) Participants.--The Secretary shall include as 
    participants in the demonstration program--
            ``(A) States selected through the application process 
        described in paragraph (5);
            ``(B) institutions of higher education within the selected 
        States that are interested in participating in the 
        demonstration program, and that can make estimates or 
        commitments of institutional student financial aid, as 
        appropriate, to students the year before the students' planned 
        enrollment date; and
            ``(C) secondary schools within the selected States that are 
        interested in participating in the demonstration program, and 
        that can commit resources to--
                ``(i) advertising the availability of the program;
                ``(ii) identifying students who might be interested in 
            participating in the program;
                ``(iii) encouraging such students to apply; and
                ``(iv) participating in the evaluation of the program.
        ``(5) Applications.--Each State that is interested in 
    participating in the demonstration program shall submit an 
    application to the Secretary at such time, in such form, and 
    containing such information as the Secretary shall require. The 
    application shall include--
            ``(A) information on the amount of the State's need-based 
        student financial assistance available, and the eligibility 
        criteria for receiving such assistance;
            ``(B) a commitment to make, not later than the year before 
        the dependent students participating in the demonstration 
        program plan to enroll in an institution of higher education, 
        an estimate of the award of State financial aid to such 
        dependent students;
            ``(C) a plan for recruiting institutions of higher 
        education and secondary schools with different demographic 
        characteristics to participate in the program;
            ``(D) a plan for selecting institutions of higher education 
        and secondary schools to participate in the program that--
                ``(i) demonstrate a commitment to encouraging students 
            to submit a FAFSA, or, as appropriate, an EZ FAFSA, two 
            years before the students' planned date of enrollment in an 
            institution of higher education;
                ``(ii) serve different populations of students;
                ``(iii) in the case of institutions of higher 
            education--

                    ``(I) to the extent possible, are of varying types 
                and sectors; and
                    ``(II) commit to making, not later than the year 
                prior to the year that dependent students participating 
                in the demonstration program plan to enroll in the 
                institution--

                        ``(aa) estimated institutional awards to 
                    participating dependent students; and
                        ``(bb) estimated grants or other financial aid 
                    available under this title (including supplemental 
                    grants under subpart 3 of part A), for all 
                    participating dependent students, along with 
                    information on State awards, as provided to the 
                    institution by the State;
            ``(E) a commitment to participate in the evaluation 
        conducted by the Secretary; and
            ``(F) such other information as the Secretary may require.
        ``(6) Special provisions.--
            ``(A) Discretion of student financial aid administrators.--
        A financial aid administrator at an institution of higher 
        education participating in a demonstration program under this 
        subsection may use the discretion provided under section 479A 
        as necessary for students participating in the demonstration 
        program.
            ``(B) Waivers.--The Secretary is authorized to waive, for 
        an institution of higher education participating in the 
        demonstration program, any requirements under this title, or 
        regulations prescribed under this title, that will make the 
        demonstration program unworkable, except that the Secretary 
        shall not waive any provisions with respect to the maximum 
        award amounts for grants and loans under this title.
        ``(7) Outreach.--The Secretary shall make appropriate efforts 
    to notify States of the demonstration program under this 
    subsection. Upon determination of participating States, the 
    Secretary shall continue to make efforts to notify institutions of 
    higher education and dependent students within participating States 
    of the opportunity to participate in the demonstration program and 
    of the participation requirements.
        ``(8) Evaluation.--The Secretary shall conduct a rigorous 
    evaluation of the demonstration program to measure the program's 
    benefits and adverse effects, as the benefits and effects relate to 
    the purpose and objectives of the program described in paragraph 
    (1). In conducting the evaluation, the Secretary shall--
            ``(A) identify whether receiving financial aid estimates 
        one year prior to the year in which the student plans to enroll 
        in an institution of higher education, has a positive impact on 
        the higher education aspirations and plans of such student;
            ``(B) measure the extent to which using a student's income 
        information from the year that is two years prior to the 
        student's planned enrollment date had an impact on the ability 
        of States and institutions of higher education to make 
        financial aid awards and commitments;
            ``(C) determine what operational changes are required to 
        implement the program on a larger scale;
            ``(D) identify any changes to Federal law that are 
        necessary to implement the program on a permanent basis;
            ``(E) identify the benefits and adverse effects of 
        providing early estimates on program costs, program operations, 
        program integrity, award amounts, distribution, and delivery of 
        aid; and
            ``(F) examine the extent to which estimated awards differ 
        from actual awards made to students participating in the 
        program.
        ``(9) Consultation.--The Secretary shall consult, as 
    appropriate, with the Advisory Committee on Student Financial 
    Assistance established under section 491 on the design, 
    implementation, and evaluation of the demonstration program.
    ``(f) Reduction of Income and Asset Information to Determine 
Eligibility for Student Financial Aid.--
        ``(1) Continuation of current fafsa simplification efforts.--
    The Secretary shall continue to examine--
            ``(A) how the Internal Revenue Service can provide to the 
        Secretary income and other data needed to compute an expected 
        family contribution for taxpayers and dependents of taxpayers, 
        and when in the application cycle the data can be made 
        available;
            ``(B) whether data provided by the Internal Revenue Service 
        can be used to--
                ``(i) prepopulate the electronic version of the FAFSA 
            with student and parent taxpayer data; or
                ``(ii) generate an expected family contribution without 
            additional action on the part of the student and taxpayer; 
            and
            ``(C) whether the data elements collected on the FAFSA that 
        are needed to determine eligibility for student aid, or to 
        administer the Federal student financial aid programs under 
        this title, but are not needed to compute an expected family 
        contribution, such as information regarding the student's 
        citizenship or permanent residency status, registration for 
        selective service, or driver's license number, can be reduced 
        without adverse effects.
        ``(2) Report on fafsa simplification efforts to date.--Not 
    later than 90 days after the date of enactment of the Higher 
    Education Opportunity Act, the Secretary shall provide a written 
    report to the authorizing committees on the work the Department has 
    done with the Secretary of the Treasury regarding--
            ``(A) how the expected family contribution of a student can 
        be calculated using substantially less income and asset 
        information than was used on March 31, 2008;
            ``(B) the extent to which the reduced income and asset 
        information will result in a redistribution of Federal grants 
        and subsidized loans under this title, State aid, or 
        institutional aid, or in a change in the composition of the 
        group of recipients of such aid, and the amount of such 
        redistribution;
            ``(C) how the alternative approaches for calculating the 
        expected family contribution will--
                ``(i) rely mainly, in the case of students and parents 
            who file income tax returns, on information available on 
            the 1040, 1040EZ, and 1040A; and
                ``(ii) include formulas for adjusting income or asset 
            information to produce similar results to the existing 
            approach with less data;
            ``(D) how the Internal Revenue Service can provide to the 
        Secretary of Education income and other data needed to compute 
        an expected family contribution for taxpayers and dependents of 
        taxpayers, and when in the application cycle the data can be 
        made available;
            ``(E) whether data provided by the Internal Revenue Service 
        can be used to--
                ``(i) prepopulate the electronic version of the FAFSA 
            with student and parent taxpayer data; or
                ``(ii) generate an expected family contribution without 
            additional action on the part of the student and taxpayer;
            ``(F) the extent to which the use of income data from two 
        years prior to a student's planned enrollment date will change 
        the expected family contribution computed in accordance with 
        part F, and potential adjustments to the need analysis formula 
        that will minimize the change; and
            ``(G) the extent to which the data elements collected on 
        the FAFSA on March 31, 2008, that are needed to determine 
        eligibility for student aid or to administer the Federal 
        student financial aid programs, but are not needed to compute 
        an expected family contribution, such as information regarding 
        the student's citizenship or permanent residency status, 
        registration for selective service, or driver's license number, 
        can be reduced without adverse effects.
        ``(3) Study.--
            ``(A) Formation of study group.--Not later than 90 days 
        after the date of enactment of the Higher Education Opportunity 
        Act, the Comptroller General shall convene a study group the 
        membership of which shall include the Secretary of Education, 
        the Secretary of the Treasury, the Director of the Office of 
        Management and Budget, the Director of the Congressional Budget 
        Office, representatives of institutions of higher education 
        with expertise in Federal and State financial aid assistance, 
        State chief executive officers of higher education with a 
        demonstrated commitment to simplifying the FAFSA, and such 
        other individuals as the Comptroller General and the Secretary 
        of Education may designate.
            ``(B) Study required.--The Comptroller General, in 
        consultation with the study group convened under subparagraph 
        (A) shall--
                ``(i) review and build on the work of the Secretary of 
            Education and the Secretary of the Treasury, and 
            individuals with expertise in analysis of financial need, 
            to assess alternative approaches for calculating the 
            expected family contribution under the statutory need 
            analysis formula in effect on the day before the date of 
            enactment of the Higher Education Opportunity Act and under 
            a new calculation that will use substantially less income 
            and asset information than was used for the 2008-2009 
            FAFSA;
                ``(ii) conduct an additional analysis if necessary; and
                ``(iii) make recommendations to the authorizing 
            committees.
            ``(C) Objectives of study.--The objectives of the study 
        required under subparagraph (B) are--
                ``(i) to determine methods to shorten the FAFSA and 
            make the FAFSA easier and less time-consuming to complete, 
            thereby increasing higher education access for low-income 
            students;
                ``(ii) to identify changes to the statutory need 
            analysis formula that will be necessary to reduce the 
            amount of financial information students and families need 
            to provide to receive a determination of eligibility for 
            student financial aid without causing significant 
            redistribution of Federal grants and subsidized loans under 
            this title; and
                ``(iii) to review State and institutional needs and 
            uses for data collected on the FAFSA, and to determine the 
            best means of addressing such needs in the case of 
            modification of the FAFSA as described in clause (i), or 
            modification of the need analysis formula as described in 
            clause (ii).
            ``(D) Required subjects of study.--The study required under 
        subparagraph (B) shall examine--
                ``(i) with respect to simplification of the financial 
            aid application process using the statutory requirements 
            for need analysis--

                    ``(I) additional steps that can be taken to 
                simplify the financial aid application process for 
                students who (or, in the case of dependent students, 
                whose parents) are not required to file a Federal 
                income tax return for the prior taxable year;
                    ``(II) information on State use of information 
                provided on the FAFSA, including--

                        ``(aa) whether a State uses, as of the time of 
                    the study, or can use, a student's expected family 
                    contribution based on data from two years prior to 
                    the student's planned enrollment date;
                        ``(bb) the extent to which States and 
                    institutions will accept the data provided by the 
                    Internal Revenue Service to prepopulate the 
                    electronic version of the FAFSA to determine the 
                    distribution of State and institutional student 
                    financial aid funds;
                        ``(cc) what data are used by States, as of the 
                    time of the study, to determine eligibility for 
                    State student financial aid, and whether the data 
                    are used for merit- or need-based aid;
                        ``(dd) whether State data are required by State 
                    law, State regulations, or policy directives; and
                        ``(ee) the extent to which any State-specific 
                    information requirements can be met by completion 
                    of a State application linked to the electronic 
                    version of the FAFSA; and

                    ``(III) information on institutional needs, 
                including the extent to which institutions of higher 
                education are already using supplemental forms to 
                collect additional data from students and their 
                families to determine eligibility for institutional 
                funds; and

                ``(ii) ways to reduce the amount of financial 
            information students and families need to provide to 
            receive a determination of eligibility for student 
            financial aid, taking into account--

                    ``(I) the amount of redistribution of Federal 
                grants and subsidized loans under this title caused by 
                such a reduction, and the benefits to be gained by 
                having an application process that will be easier for 
                students and their families;
                    ``(II) students and families who do not file income 
                tax returns;
                    ``(III) the extent to which the full array of 
                income and asset information collected on the FAFSA, as 
                of the time of the study, plays an important role in 
                the awarding of need-based State financial aid, and 
                whether the State can use an expected family 
                contribution generated by the FAFSA, instead of income 
                and asset information or a calculation with reduced 
                data elements, to support determinations of eligibility 
                for such State aid programs and, if not, what 
                additional information will be needed or what changes 
                to the FAFSA will be required; and
                    ``(IV) information on institutional needs, 
                including the extent to which institutions of higher 
                education are already using supplemental forms to 
                collect additional data from students and their 
                families to determine eligibility for institutional 
                funds; and
                    ``(V) changes to this Act or other laws that will 
                be required to implement a modified need analysis 
                system.

        ``(4) Consultation.--The Secretary shall consult with the 
    Advisory Committee on Student Financial Assistance established 
    under section 491 as appropriate in carrying out this subsection.
        ``(5) Reports.--
            ``(A) Reports on study.--The Secretary shall prepare and 
        submit to the authorizing committees--
                ``(i) not later than one year after the date of 
            enactment of the Higher Education Opportunity Act, an 
            interim report on the progress of the study required under 
            paragraph (3) that includes any preliminary recommendations 
            by the study group established under such paragraph; and
                ``(ii) not later than two years after the date of 
            enactment of the Higher Education Opportunity Act, a final 
            report on the results of the study required under paragraph 
            (3) that includes recommendations by the study group 
            established under such paragraph.
            ``(B) Reports on fafsa simplification efforts.--The 
        Secretary shall report to the authorizing committees, from time 
        to time, on the progress of the simplification efforts under 
        this subsection.
    ``(g) Addressing the Digital Divide.--The Secretary shall utilize 
savings accrued by moving more applicants to the electronic version of 
the forms described in subsection (a)(3) to improve access to the 
electronic version of the forms described in such subsection for 
applicants meeting the requirements of subsection (b) or (c) of section 
479.
    ``(h) Adjustments.--The Secretary shall disclose, on the form 
notifying a student of the student's expected family contribution, that 
the student may, on a case-by-case basis, qualify for an adjustment 
under section 479A to the cost of attendance or the values of the data 
items required to calculate the expected contribution for the student 
or parent. Such disclosure shall specify--
        ``(1) the special circumstances under which a student or family 
    member may qualify for such adjustment; and
        ``(2) additional information regarding the steps a student or 
    family member may take in order to seek an adjustment under section 
    479A.''.
    SEC. 484. MODEL INSTITUTION FINANCIAL AID OFFER FORM.
    (a) Model Format.--The Secretary of Education shall--
        (1) not later than six months after the date of enactment of 
    the Higher Education Opportunity Act, convene a group of students, 
    families of students, secondary school guidance counselors, 
    representatives of institutions of higher education (including 
    financial aid administrators, registrars, and business officers), 
    and nonprofit consumer groups for the purpose of offering 
    recommendations for improvements that--
            (A) can be made to financial aid offer forms; and
            (B) include the information described in subsection (b);
        (2) develop a model format for financial aid offer forms based 
    on the recommendations of the group; and
        (3) not later than one year after the date of enactment of the 
    Higher Education Opportunity Act--
            (A) submit recommendations to the authorizing committees 
        (as defined in section 103 of the Higher Education Act of 1965 
        (20 U.S.C. 1003); and
            (B) make the recommendations and model format widely 
        available.
    (b) Contents.--The recommendations developed under subsection (a) 
for model financial aid offer forms shall include, in a consumer-
friendly manner that is simple and understandable, the following:
        (1) Information on the student's cost of attendance, including 
    the following:
            (A) Tuition and fees.
            (B) Room and board costs.
            (C) Books and supplies.
            (D) Transportation.
        (2) The amount of financial aid that the student does not have 
    to repay, such as scholarships, grants, and work-study assistance, 
    offered to the student for such year, and the conditions of such 
    financial aid.
        (3) The types and amounts of loans under part B, D, or E of 
    title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
    seq., 1087a et seq., 1087aa et seq.) for which the student is 
    eligible for such year, and the applicable terms and conditions of 
    such loans.
        (4) The net amount that the student, or the student's family on 
    behalf of the student, will have to pay for the student to attend 
    the institution for such year, equal to--
            (A) the cost of attendance for the student for such year; 
        minus
            (B) the amount of financial aid described in paragraphs (2) 
        and (3) that is offered in the financial aid offer form.
        (5) Where a student or the student's family can seek additional 
    information regarding the financial aid offered.
        (6) Any other information the Secretary of Education determines 
    necessary so that students and parents can make informed student 
    loan borrowing decisions.
    SEC. 485. STUDENT ELIGIBILITY.
    (a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
        (1) in subsection (a)--
            (A) in paragraph (4)(B), by striking ``number,'' and all 
        that follows through the semicolon and inserting ``number;''; 
        and
            (B) in paragraph (5)--
                (i) by inserting ``or'' after ``a permanent resident of 
            the United States,''; and
                (ii) by striking ``citizen or permanent resident'' and 
            all that follows through the semicolon and inserting 
            ``citizen or permanent resident;'';
        (2) in subsection (b)(1), by inserting ``, or under section 
    428H pursuant to an exercise of discretion under section 479A'' 
    after ``428C'';
        (3) in subsection (d), by adding at the end the following:
        ``(4) The student shall be determined by the institution of 
    higher education as having the ability to benefit from the 
    education or training offered by the institution of higher 
    education upon satisfactory completion of six credit hours or the 
    equivalent coursework that are applicable toward a degree or 
    certificate offered by the institution of higher education.'';
        (4) by striking subsection (j);
        (5) by striking subsection (l) and inserting the following:
    ``(l) Courses Offered Through Distance Education.--
        ``(1) Relation to correspondence courses.--
            ``(A) In general.--A student enrolled in a course of 
        instruction at an institution of higher education that is 
        offered principally through distance education and leads to a 
        recognized certificate, or recognized associate, recognized 
        baccalaureate, or recognized graduate degree, conferred by such 
        institution, shall not be considered to be enrolled in 
        correspondence courses.
            ``(B) Exception.--An institution of higher education 
        referred to in subparagraph (A) shall not include an 
        institution or school described in section 3(3)(C) of the Carl 
        D. Perkins Career and Technical Education Act of 2006.
        ``(2) Reductions of financial aid.--A student's eligibility to 
    receive grants, loans, or work assistance under this title shall be 
    reduced if a financial aid officer determines under the 
    discretionary authority provided in section 479A that distance 
    education results in a substantially reduced cost of attendance to 
    such student.
        ``(3) Special rule.--For award years beginning prior to July 1, 
    2008, the Secretary shall not take any compliance, disallowance, 
    penalty, or other action based on a violation of this subsection 
    against a student or an eligible institution when such action 
    arises out of such institution's prior award of student assistance 
    under this title if the institution demonstrates to the 
    satisfaction of the Secretary that its course of instruction would 
    have been in conformance with the requirements of this 
    subsection.'';
        (6) by striking subsection (q) and inserting the following:
    ``(q) Use of Income Data.--
        ``(1) Matching with irs.--The Secretary, in cooperation with 
    the Secretary of the Treasury, is authorized to obtain from the 
    Internal Revenue Service such information reported on Federal 
    income tax returns by applicants, or by any other person whose 
    financial information is required to be provided on the Federal 
    student financial aid application, as the Secretary determines is 
    necessary for the purpose of--
            ``(A) prepopulating the Federal student financial aid 
        application described in section 483; or
            ``(B) verifying the information reported on such student 
        financial aid applications.
        ``(2) Consent.--The Secretary may require that applicants for 
    financial assistance under this title provide a consent to the 
    disclosure of the data described in paragraph (1) as a condition of 
    the student receiving assistance under this title. The parents of 
    an applicant, in the case of a dependent student, or the spouse of 
    an applicant, in the case of an applicant who is married but files 
    separately, may also be required to provide consent as a condition 
    of the student receiving assistance under this title.'';
        (7) in subsection (r)(2)--
            (A) in subparagraph (A), by striking ``or'' at the end of 
        clause (ii);
            (B) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (C) by inserting after subparagraph (A) the following new 
        subparagraph:
            ``(B) the student successfully passes two unannounced drug 
        tests conducted by a drug rehabilitation program that complies 
        with such criteria as the Secretary shall prescribe in 
        regulations for purposes of subparagraph (A)(i); or'';
        (8) by adding at the end the following:
    ``(s) Students With Intellectual Disabilities.--
        ``(1) Definitions.--In this subsection the terms `comprehensive 
    transition and postsecondary program for students with intellectual 
    disabilities' and `student with an intellectual disability' have 
    the meanings given the terms in section 760.
        ``(2) Requirements.--Notwithstanding subsections (a), (c), and 
    (d), in order to receive any grant or work assistance under section 
    401, subpart 3 of part A, or part C, a student with an intellectual 
    disability shall--
            ``(A) be enrolled or accepted for enrollment in a 
        comprehensive transition and postsecondary program for students 
        with intellectual disabilities at an institution of higher 
        education;
            ``(B) be maintaining satisfactory progress in the program 
        as determined by the institution, in accordance with standards 
        established by the institution; and
            ``(C) meet the requirements of paragraphs (3), (4), (5), 
        and (6) of subsection (a).
        ``(3) Authority.--Notwithstanding any other provision of law 
    unless such provision is enacted with specific reference to this 
    section, the Secretary is authorized to waive any statutory 
    provision applicable to the student financial assistance programs 
    under section 401, subpart 3 of part A, or part C (other than a 
    provision of part F related to such a program), or any 
    institutional eligibility provisions of this title, as the 
    Secretary determines necessary to ensure that programs enrolling 
    students with intellectual disabilities otherwise determined to be 
    eligible under this subsection may receive such financial 
    assistance.
        ``(4) Regulations.--Notwithstanding regulations applicable to 
    grant or work assistance awards made under section 401, subpart 3 
    of part A, and part C (other than a regulation under part F related 
    to such an award), including with respect to eligible programs, 
    instructional time, credit status, and enrollment status as 
    described in section 481, the Secretary shall promulgate 
    regulations allowing programs enrolling students with intellectual 
    disabilities otherwise determined to be eligible under this 
    subsection to receive such awards.''; and
        (9) by adding after subsection (s) (as added by paragraph (7)) 
    the following:
    ``(t) Data Analysis on Access to Federal Student Aid For Certain 
Populations.--
        ``(1) Development of the system.--Within one year of enactment 
    of the Higher Education Opportunity Act, the Secretary shall 
    analyze data from the FAFSA containing information regarding the 
    number, characteristics, and circumstances of students denied 
    Federal student aid based on a drug conviction while receiving 
    Federal aid.
        ``(2) Results from analysis.--The results from the analysis of 
    such information shall be made available on a continuous basis via 
    the Department website and the Digest of Education Statistics.
        ``(3) Data updating.--The data analyzed under this subsection 
    shall be updated at the beginning of each award year and at least 
    one additional time during such award year.
        ``(4) Report to congress.--The Secretary shall prepare and 
    submit to the authorizing committees, in each fiscal year, a report 
    describing the results obtained by the establishment and operation 
    of the data system authorized by this subsection.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on July 1, 2010, except that the amendments made by 
paragraphs (3), (4), and (8) of such subsection shall take effect on 
the date of enactment of this Act.
    SEC. 486. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.
    Section 484A (20 U.S.C. 1091a) is amended--
        (1) in subsection (b)--
            (A) in paragraph (1), by striking ``and'' after the 
        semicolon;
            (B) in paragraph (2), by striking the period and inserting 
        ``; and''; and
            (C) by adding at the end the following:
        ``(3) in collecting any obligation arising from a loan made 
    under part E, an institution of higher education that has an 
    agreement with the Secretary pursuant to section 463(a) shall not 
    be subject to a defense raised by any borrower based on a claim of 
    infancy.''; and
        (2) by adding at the end the following:
    ``(d) Special Rule.--This section shall not apply in the case of a 
student who is deceased, or to a deceased student's estate or the 
estate of such student's family. If a student is deceased, then the 
student's estate or the estate of the student's family shall not be 
required to repay any financial assistance under this title, including 
interest paid on the student's behalf, collection costs, or other 
charges specified in this title.''.
    SEC. 487. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.
    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 484B the following:
``SEC. 484C. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.
    ``(a) Definition of Service in the Uniformed Services.--In this 
section, the term `service in the uniformed services' means service 
(whether voluntary or involuntary) on active duty in the Armed Forces, 
including such service by a member of the National Guard or Reserve, 
for a period of more than 30 days under a call or order to active duty 
of more than 30 days.
    ``(b) Discrimination Against Students Who Serve in the Uniformed 
Services Prohibited.--A person who is a member of, applies to be a 
member of, performs, has performed, applies to perform, or has an 
obligation to perform, service in the uniformed services shall not be 
denied readmission to an institution of higher education on the basis 
of that membership, application for membership, performance of service, 
application for service, or obligation.
    ``(c) Readmission Procedures.--
        ``(1) In general.--Any student whose absence from an 
    institution of higher education is necessitated by reason of 
    service in the uniformed services shall be entitled to readmission 
    to the institution of higher education if--
            ``(A) the student (or an appropriate officer of the Armed 
        Forces or official of the Department of Defense) gives advance 
        written or verbal notice of such service to the appropriate 
        official at the institution of higher education;
            ``(B) the cumulative length of the absence and of all 
        previous absences from that institution of higher education by 
        reason of service in the uniformed services does not exceed 
        five years; and
            ``(C) except as otherwise provided in this section, the 
        student submits a notification of intent to reenroll in the 
        institution of higher education in accordance with the 
        provisions of paragraph (4).
        ``(2) Exceptions.--
            ``(A) Military necessity.--No notice is required under 
        paragraph (1)(A) if the giving of such notice is precluded by 
        military necessity, such as--
                ``(i) a mission, operation, exercise, or requirement 
            that is classified; or
                ``(ii) a pending or ongoing mission, operation, 
            exercise, or requirement that may be compromised or 
            otherwise adversely affected by public knowledge.
            ``(B) Failure to give advance notice.--Any student (or an 
        appropriate officer of the Armed Forces or official of the 
        Department of Defense) who did not give advance written or 
        verbal notice of service to the appropriate official at the 
        institution of higher education in accordance with paragraph 
        (1)(A) may meet the notice requirement by submitting, at the 
        time the student seeks readmission, an attestation to the 
        student's institution of higher education that the student 
        performed service in the uniformed services that necessitated 
        the student's absence from the institution of higher education.
        ``(3) Applicability.--This section shall apply to a student who 
    is absent from an institution of higher education by reason of 
    service in the uniformed services if such student's cumulative 
    period of service in the Armed Forces (including the National Guard 
    or Reserve), with respect to the institution of higher education 
    for which a student seeks readmission, does not exceed five years, 
    except that any such period of service shall not include any 
    service--
            ``(A) that is required, beyond five years, to complete an 
        initial period of obligated service;
            ``(B) during which such student was unable to obtain orders 
        releasing such student from a period of service in the 
        uniformed services before the expiration of such five-year 
        period and such inability was through no fault of such student; 
        or
            ``(C) performed by a member of the Armed Forces (including 
        the National Guard and Reserves) who is--
                ``(i) ordered to or retained on active duty under 
            section 688, 12301(a), 12301(g), 12302, 12304, or 12305 of 
            title 10, United States Code, or under section 331, 332, 
            359, 360, 367, or 712 of title 14, United States Code;
                ``(ii) ordered to or retained on active duty (other 
            than for training) under any provision of law because of a 
            war or national emergency declared by the President or the 
            Congress, as determined by the Secretary concerned;
                ``(iii) ordered to active duty (other than for 
            training) in support, as determined by the Secretary 
            concerned, of an operational mission for which personnel 
            have been ordered to active duty under section 12304 of 
            title 10, United States Code;
                ``(iv) ordered to active duty in support, as determined 
            by the Secretary concerned, of a critical mission or 
            requirement of the Armed Forces (including the National 
            Guard or Reserve); or
                ``(v) called into Federal service as a member of the 
            National Guard under chapter 15 of title 10, United States 
            Code, or section 12406 of title 10, United States Code.
        ``(4) Notification of intent to return.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        a student referred to in subsection (a) shall, upon the 
        completion of a period of service in the uniformed services, 
        notify the institution of higher education of the student's 
        intent to return to the institution not later than three years 
        after the completion of the period of service.
            ``(B) Hospitalization or convalescence.--A student who is 
        hospitalized for or convalescing from an illness or injury 
        incurred in or aggravated during the performance of service in 
        the uniformed services shall notify the institution of higher 
        education of the student's intent to return to the institution 
        not later than two years after the end of the period that is 
        necessary for recovery from such illness or injury.
            ``(C) Special rule.--A student who fails to apply for 
        readmission within the period described in this section shall 
        not automatically forfeit such eligibility for readmission to 
        the institution of higher education, but shall be subject to 
        the institution of higher education's established leave of 
        absence policy and general practices.
        ``(5) Documentation.--
            ``(A) In general.--A student who submits an application for 
        readmission to an institution of higher education under this 
        section shall provide to the institution of higher education 
        documentation to establish that--
                ``(i) the student has not exceeded the service 
            limitations established under this section; and
                ``(ii) the student's eligibility for readmission has 
            not been terminated due to an exception in subsection (d).
            ``(B) Prohibited documentation demands.--An institution of 
        higher education may not delay or attempt to avoid a 
        readmission of a student under this section by demanding 
        documentation that does not exist, or is not readily available, 
        at the time of readmission.
        ``(6) No change in academic status.--A student who is 
    readmitted to an institution of higher education under this section 
    shall be readmitted with the same academic status as such student 
    had when such student last attended the institution of higher 
    education.
    ``(d) Exception From Readmission Eligibility.--A student's 
eligibility for readmission to an institution of higher education under 
this section by reason of such student's service in the uniformed 
services terminates upon the occurrence of any of the following events:
        ``(1) A separation of such person from the Armed Forces 
    (including the National Guard and Reserves) with a dishonorable or 
    bad conduct discharge.
        ``(2) A dismissal of such person permitted under section 
    1161(a) of title 10, United States Code.
        ``(3) A dropping of such person from the rolls pursuant to 
    section 1161(b) of title 10, United States Code.''.
    SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
      STUDENTS.
    (a) Information Dissemination Activities.--Section 485(a) (20 
U.S.C. 1092(a)) is amended--
        (1) in paragraph (1)--
            (A) in subparagraph (G)--
                (i) by striking ``program, and'' and inserting 
            ``program,''; and
                (ii) by inserting ``, and (iv) any plans by the 
            institution for improving the academic program of the 
            institution'' after ``instructional personnel''; and
            (B) by striking subparagraph (M) and inserting the 
        following:
            ``(M) the terms and conditions of the loans that students 
        receive under parts B, D, and E;'';
            (C) in subparagraph (N), by striking ``and'' after the 
        semicolon;
            (D) in subparagraph (O), by striking the period and 
        inserting a semicolon; and
            (E) by adding at the end the following:
            ``(P) institutional policies and sanctions related to 
        copyright infringement, including--
                ``(i) an annual disclosure that explicitly informs 
            students that unauthorized distribution of copyrighted 
            material, including unauthorized peer-to-peer file sharing, 
            may subject the students to civil and criminal liabilities;
                ``(ii) a summary of the penalties for violation of 
            Federal copyright laws; and
                ``(iii) a description of the institution's policies 
            with respect to unauthorized peer-to-peer file sharing, 
            including disciplinary actions that are taken against 
            students who engage in unauthorized distribution of 
            copyrighted materials using the institution's information 
            technology system;
            ``(Q) student body diversity at the institution, including 
        information on the percentage of enrolled, full-time students 
        who--
                ``(i) are male;
                ``(ii) are female;
                ``(iii) receive a Federal Pell Grant; and
                ``(iv) are a self-identified member of a major racial 
            or ethnic group;
            ``(R) the placement in employment of, and types of 
        employment obtained by, graduates of the institution's degree 
        or certificate programs, gathered from such sources as alumni 
        surveys, student satisfaction surveys, the National Survey of 
        Student Engagement, the Community College Survey of Student 
        Engagement, State data systems, or other relevant sources;
            ``(S) the types of graduate and professional education in 
        which graduates of the institution's four-year degree programs 
        enrolled, gathered from such sources as alumni surveys, student 
        satisfaction surveys, the National Survey of Student 
        Engagement, State data systems, or other relevant sources;
            ``(T) the fire safety report prepared by the institution 
        pursuant to subsection (i);
            ``(U) the retention rate of certificate- or degree-seeking, 
        first-time, full-time, undergraduate students entering such 
        institution; and
            ``(V) institutional policies regarding vaccinations.''; and
        (2) by striking paragraph (4) and inserting the following:
        ``(4) For purposes of this section, institutions may--
            ``(A) exclude from the information disclosed in accordance 
        with subparagraph (L) of paragraph (1) the completion or 
        graduation rates of students who leave school to serve in the 
        Armed Forces, on official church missions, or with a recognized 
        foreign aid service of the Federal Government; or
            ``(B) in cases where the students described in subparagraph 
        (A) represent 20 percent or more of the certificate- or degree-
        seeking, full-time, undergraduate students at the institution, 
        recalculate the completion or graduation rates of such students 
        by excluding from the calculation described in paragraph (3) 
        the time period such students were not enrolled due to their 
        service in the Armed Forces, on official church missions, or 
        with a recognized foreign aid service of the Federal 
        Government.''; and
        (3) by adding at the end the following:
        ``(7)(A)(i) Subject to clause (ii), the information 
    disseminated under paragraph (1)(L), or reported under subsection 
    (e), shall be disaggregated by gender, by each major racial and 
    ethnic subgroup, by recipients of a Federal Pell Grant, by 
    recipients of a loan made under part B or D (other than a loan made 
    under section 428H or a Federal Direct Unsubsidized Stafford Loan) 
    who did not receive a Federal Pell Grant, and by recipients of 
    neither a Federal Pell Grant nor a loan made under part B or D 
    (other than a loan made under section 428H or a Federal Direct 
    Unsubsidized Stafford Loan), if the number of students in such 
    subgroup or with such status is sufficient to yield statistically 
    reliable information and reporting will not reveal personally 
    identifiable information about an individual student. If such 
    number is not sufficient for such purposes, then the institution 
    shall note that the institution enrolled too few of such students 
    to so disclose or report with confidence and confidentiality.
        ``(ii) The requirements of clause (i) shall not apply to two-
    year, degree-granting institutions of higher education until 
    academic year 2011-2012.
        ``(B)(i) In order to assist two-year degree-granting 
    institutions of higher education in meeting the requirements of 
    paragraph (1)(L) and subsection (e), the Secretary, in consultation 
    with the Commissioner for Education Statistics, shall, not later 
    than 90 days after the date of enactment of the Higher Education 
    Opportunity Act, convene a group of representatives from diverse 
    institutions of higher education, experts in the field of higher 
    education policy, state higher education officials, students, and 
    other stakeholders in the higher education community, to develop 
    recommendations regarding the accurate calculation and reporting of 
    the information required to be disseminated or reported under 
    paragraph (1)(L) and subsection (e) by two-year, degree-granting 
    institutions of higher education. In developing such 
    recommendations, the group of representatives shall consider the 
    mission and role of two-year degree-granting institutions of higher 
    education, and may recommend additional or alternative measures of 
    student success for such institutions in light of the mission and 
    role of such institutions.
        ``(ii) The Secretary shall widely disseminate the 
    recommendations required under this subparagraph to two-year, 
    degree-granting institutions of higher education, the public, and 
    the authorizing committees not later than 18 months after the first 
    meeting of the group of representatives convened under clause (i).
        ``(iii) The Secretary shall use the recommendations from the 
    group of representatives convened under clause (i) to provide 
    technical assistance to two-year, degree-granting institutions of 
    higher education in meeting the requirements of paragraph (1)(L) 
    and subsection (e).
        ``(iv) The Secretary may modify the information required to be 
    disseminated or reported under paragraph (1)(L) or subsection (e) 
    by a two-year, degree-granting institution of higher--
            ``(I) based on the recommendations received under this 
        subparagraph from the group of representatives convened under 
        clause (i);
            ``(II) to include additional or alternative measures of 
        student success if the goals of the provisions of paragraph 
        (1)(L) and subsection (e) can be met through additional means 
        or comparable alternatives; and
            ``(III) during the period beginning on the date of 
        enactment of the Higher Education Opportunity Act, and ending 
        on June 30, 2011.''.
    (b) Exit Counseling.--Subsection (b)(1)(A) of section 485 (20 
U.S.C. 1092(b)(1)(A)) is amended to read as follows:
    ``(b) Exit Counseling for Borrowers.--(1)(A) Each eligible 
institution shall, through financial aid offices or otherwise, provide 
counseling to borrowers of loans that are made, insured, or guaranteed 
under part B (other than loans made pursuant to section 428C or loans 
under section 428B made on behalf of a student) or made under part D 
(other than Federal Direct Consolidation Loans or Federal Direct PLUS 
Loans made on behalf of a student) or made under part E of this title 
prior to the completion of the course of study for which the borrower 
enrolled at the institution or at the time of departure from such 
institution. The counseling required by this subsection shall include--
        ``(i) information on the repayment plans available, including a 
    description of the different features of each plan and sample 
    information showing the average anticipated monthly payments, and 
    the difference in interest paid and total payments, under each 
    plan;
        ``(ii) debt management strategies that are designed to 
    facilitate the repayment of such indebtedness;
        ``(iii) an explanation that the borrower has the options to 
    prepay each loan, pay each loan on a shorter schedule, and change 
    repayment plans;
        ``(iv) for any loan forgiveness or cancellation provision of 
    this title, a general description of the terms and conditions under 
    which the borrower may obtain full or partial forgiveness or 
    cancellation of the principal and interest, and a copy of the 
    information provided by the Secretary under section 485(d);
        ``(v) for any forbearance provision of this title, a general 
    description of the terms and conditions under which the borrower 
    may defer repayment of principal or interest or be granted 
    forbearance, and a copy of the information provided by the 
    Secretary under section 485(d);
        ``(vi) the consequences of defaulting on a loan, including 
    adverse credit reports, delinquent debt collection procedures under 
    Federal law, and litigation;
        ``(vii) information on the effects of using a consolidation 
    loan under section 428C or a Federal Direct Consolidation Loan to 
    discharge the borrower's loans under parts B, D, and E, including 
    at a minimum--
            ``(I) the effects of consolidation on total interest to be 
        paid, fees to be paid, and length of repayment;
            ``(II) the effects of consolidation on a borrower's 
        underlying loan benefits, including grace periods, loan 
        forgiveness, cancellation, and deferment opportunities;
            ``(III) the option of the borrower to prepay the loan or to 
        change repayment plans; and
            ``(IV) that borrower benefit programs may vary among 
        different lenders;
        ``(viii) a general description of the types of tax benefits 
    that may be available to borrowers; and
        ``(ix) a notice to borrowers about the availability of the 
    National Student Loan Data System and how the system can be used by 
    a borrower to obtain information on the status of the borrower's 
    loans; and''.
    (c) Departmental Publication of Descriptions of Assistance 
Programs.--Section 485(d) (20 U.S.C. 1092(d)) is amended--
        (1) in paragraph (1)--
            (A) by inserting after ``under this title.'' the following: 
        ``Such information shall also include information on the 
        various payment options available for student loans, including 
        income-sensitive and income-based repayment plans for loans 
        made, insured, or guaranteed under part B and income-contingent 
        and income-based repayment plans for loans made under part 
        D.''; and
            (B) by inserting after ``tax-exempt organization.'' the 
        following: ``The Secretary shall also provide information on 
        loan forbearance, including the increase in debt that results 
        from capitalization of interest.''; and
        (2) by adding at the end the following:
    ``(4) The Secretary shall widely publicize the location of the 
information described in paragraph (1) among the public, eligible 
institutions, and eligible lenders, and promote the use of such 
information by prospective students, enrolled students, families of 
prospective and enrolled students, and borrowers.''.
    (d) Disclosure of Athletically Related Graduation Rates.--Section 
485(e)(3) (20 U.S.C. 1092(e)(3)) is amended to read as follows:
        ``(3) For purposes of this subsection, institutions may--
            ``(A) exclude from the reporting requirements under 
        paragraphs (1) and (2) the completion or graduation rates of 
        students and student athletes who leave school to serve in the 
        Armed Forces, on official church missions, or with a recognized 
        foreign aid service of the Federal Government; or
            ``(B) in cases where the students described in subparagraph 
        (A) represent 20 percent or more of the certificate- or degree-
        seeking, full-time, undergraduate students at the institution, 
        calculate the completion or graduation rates of such students 
        by excluding from the calculations described in paragraph (1) 
        the time period such students were not enrolled due to their 
        service in the Armed Forces, on official church missions, or 
        with a recognized foreign aid service of the Federal 
        Government.''.
    (e) Criminal Offenses Reported.--Section 485(f) (20 U.S.C. 1092(f)) 
is amended--
        (1) in paragraph (1)--
            (A) in the matter preceding subparagraph (A), by inserting 
        ``, other than a foreign institution higher education,'' after 
        ``under this title'';
            (B) in subparagraph (C), by striking clauses (i) and (ii) 
        and inserting the following:
                ``(i) the law enforcement authority of campus security 
            personnel;
                ``(ii) the working relationship of campus security 
            personnel with State and local law enforcement agencies, 
            including whether the institution has agreements with such 
            agencies, such as written memoranda of understanding, for 
            the investigation of alleged criminal offenses; and
                ``(iii) policies which encourage accurate and prompt 
            reporting of all crimes to the campus police and the 
            appropriate law enforcement agencies.'';
            (C) in subparagraph (F)(ii)--
                (i) by striking ``clause (i), and'' and inserting 
            ``clause (i), of larceny-theft, simple assault, 
            intimidation, and destruction, damage, or vandalism of 
            property, and of''; and
                (ii) by inserting a comma after ``any person''; and
            (D) by adding at the end the following new subparagraph:
            ``(J) A statement of current campus policies regarding 
        immediate emergency response and evacuation procedures, 
        including the use of electronic and cellular communication (if 
        appropriate), which policies shall include procedures to--
                ``(i) immediately notify the campus community upon the 
            confirmation of a significant emergency or dangerous 
            situation involving an immediate threat to the health or 
            safety of students or staff occurring on the campus, as 
            defined in paragraph (6), unless issuing a notification 
            will compromise efforts to contain the emergency;
                ``(ii) publicize emergency response and evacuation 
            procedures on an annual basis in a manner designed to reach 
            students and staff; and
                ``(iii) test emergency response and evacuation 
            procedures on an annual basis.'';
        (2) by redesignating paragraph (15) as paragraph (18); and
        (3) by inserting after paragraph (14) the following:
        ``(15) The Secretary shall annually report to the authorizing 
    committees regarding compliance with this subsection by 
    institutions of higher education, including an up-to-date report on 
    the Secretary's monitoring of such compliance.
        ``(16) The Secretary may seek the advice and counsel of the 
    Attorney General concerning the development, and dissemination to 
    institutions of higher education, of best practices information 
    about campus safety and emergencies.
        ``(17) Nothing in this subsection shall be construed to permit 
    an institution, or an officer, employee, or agent of an 
    institution, participating in any program under this title to 
    retaliate, intimidate, threaten, coerce, or otherwise discriminate 
    against any individual with respect to the implementation of any 
    provision of this subsection.''.
    (f) Report.--Section 485(g)(4) (20 U.S.C. 1092(g)(4)) is amended--
        (1) by striking subparagraph (B);
        (2) by redesignating subparagraphs (C) and (D) as subparagraphs 
    (B) and (C), respectively;
        (3) in subparagraph (B) (as redesignated by paragraph (2)), by 
    striking ``and the report to Congress described in subparagraph 
    (B)''; and
        (4) in subparagraph (C) (as redesignated by paragraph (2)), by 
    striking ``the information reported under subparagraph (B) and''.
    (g) Additional Requirements.--Section 485 (20 U.S.C. 1092) is 
further amended by adding at the end the following new subsections:
    ``(h) Transfer of Credit Policies.--
        ``(1) Disclosure.--Each institution of higher education 
    participating in any program under this title shall publicly 
    disclose, in a readable and comprehensible manner, the transfer of 
    credit policies established by the institution which shall include 
    a statement of the institution's current transfer of credit 
    policies that includes, at a minimum--
            ``(A) any established criteria the institution uses 
        regarding the transfer of credit earned at another institution 
        of higher education; and
            ``(B) a list of institutions of higher education with which 
        the institution has established an articulation agreement.
        ``(2) Rule of construction.--Nothing in this subsection shall 
    be construed to--
            ``(A) authorize the Secretary or the National Advisory 
        Committee on Institutional Quality and Integrity to require 
        particular policies, procedures, or practices by institutions 
        of higher education with respect to transfer of credit;
            ``(B) 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;
            ``(C) limit the application of the General Education 
        Provisions Act; or
            ``(D) create any legally enforceable right on the part of a 
        student to require an institution of higher education to accept 
        a transfer of credit from another institution.
    ``(i) Disclosure of Fire Safety Standards and Measures.--
        ``(1) Annual fire safety reports on student housing required.--
    Each eligible institution participating in any program under this 
    title that maintains on-campus student housing facilities shall, on 
    an annual basis, publish a fire safety report, which shall contain 
    information with respect to the campus fire safety practices and 
    standards of that institution, including--
            ``(A) statistics concerning the following in each on-campus 
        student housing facility during the most recent calendar years 
        for which data are available:
                ``(i) the number of fires and the cause of each fire;
                ``(ii) the number of injuries related to a fire that 
            result in treatment at a medical facility;
                ``(iii) the number of deaths related to a fire; and
                ``(iv) the value of property damage caused by a fire;
            ``(B) a description of each on-campus student housing 
        facility fire safety system, including the fire sprinkler 
        system;
            ``(C) the number of regular mandatory supervised fire 
        drills;
            ``(D) policies or rules on portable electrical appliances, 
        smoking, and open flames (such as candles), procedures for 
        evacuation, and policies regarding fire safety education and 
        training programs provided to students, faculty, and staff; and
            ``(E) plans for future improvements in fire safety, if 
        determined necessary by such institution.
        ``(2) Report to the secretary.--Each eligible institution 
    participating in any program under this title shall, on an annual 
    basis, submit to the Secretary a copy of the statistics required to 
    be made available under paragraph (1)(A).
        ``(3) Current information to campus community.--Each eligible 
    institution participating in any program under this title shall--
            ``(A) make, keep, and maintain a log, recording all fires 
        in on-campus student housing facilities, including the nature, 
        date, time, and general location of each fire; and
            ``(B) make annual reports to the campus community on such 
        fires.
        ``(4) Responsibilities of the secretary.--The Secretary shall--
            ``(A) make the statistics submitted under paragraph (1)(A) 
        to the Secretary available to the public; and
            ``(B) in coordination with nationally recognized fire 
        organizations and representatives of institutions of higher 
        education, representatives of associations of institutions of 
        higher education, and other organizations that represent and 
        house a significant number of students--
                ``(i) identify exemplary fire safety policies, 
            procedures, programs, and practices, including the 
            installation, to the technical standards of the National 
            Fire Protection Association, of fire detection, prevention, 
            and protection technologies in student housing, 
            dormitories, and other buildings;
                ``(ii) disseminate the exemplary policies, procedures, 
            programs and practices described in clause (i) to the 
            Administrator of the United States Fire Administration;
                ``(iii) make available to the public information 
            concerning those policies, procedures, programs, and 
            practices that have proven effective in the reduction of 
            fires; and
                ``(iv) develop a protocol for institutions to review 
            the status of their fire safety systems.
        ``(5) Rules of construction.--Nothing in this subsection shall 
    be construed to--
            ``(A) authorize the Secretary to require particular 
        policies, procedures, programs, or practices by institutions of 
        higher education with respect to fire safety, other than with 
        respect to the collection, reporting, and dissemination of 
        information required by this subsection;
            ``(B) affect section 444 of the General Education 
        Provisions Act (the Family Educational Rights and Privacy Act 
        of 1974) or the regulations issued under section 264 of the 
        Health Insurance Portability and Accountability Act of 1996 (42 
        U.S.C. 1320d-2 note);
            ``(C) create a cause of action against any institution of 
        higher education or any employee of such an institution for any 
        civil liability; or
            ``(D) establish any standard of care.
        ``(6) Compliance report.--The Secretary shall annually report 
    to the authorizing committees regarding compliance with this 
    subsection by institutions of higher education, including an up-to-
    date report on the Secretary's monitoring of such compliance.
        ``(7) Evidence.--Notwithstanding any other provision of law, 
    evidence regarding compliance or noncompliance with this subsection 
    shall not be admissible as evidence in any proceeding of any court, 
    agency, board, or other entity, except with respect to an action to 
    enforce this subsection.
    ``(j) Missing Person Procedures.--
        ``(1) Option and procedures.--Each institution of higher 
    education that provides on-campus housing and participates in any 
    program under this title shall--
            ``(A) establish a missing student notification policy for 
        students who reside in on-campus housing that--
                ``(i) informs each such student that such student has 
            the option to identify an individual to be contacted by the 
            institution not later than 24 hours after the time that the 
            student is determined missing in accordance with official 
            notification procedures established by the institution 
            under subparagraph (B);
                ``(ii) provides each such student a means to register 
            confidential contact information in the event that the 
            student is determined to be missing for a period of more 
            than 24 hours;
                ``(iii) advises each such student who is under 18 years 
            of age, and not an emancipated individual, that the 
            institution is required to notify a custodial parent or 
            guardian not later 24 hours after the time that the student 
            is determined to be missing in accordance with such 
            procedures;
                ``(iv) informs each such residing student that the 
            institution will notify the appropriate law enforcement 
            agency not later than 24 hours after the time that the 
            student is determined missing in accordance with such 
            procedures; and
                ``(v) requires, if the campus security or law 
            enforcement personnel has been notified and makes a 
            determination that a student who is the subject of a 
            missing person report has been missing for more than 24 
            hours and has not returned to the campus, the institution 
            to initiate the emergency contact procedures in accordance 
            with the student's designation; and
            ``(B) establish official notification procedures for a 
        missing student who resides in on-campus housing that--
                ``(i) includes procedures for official notification of 
            appropriate individuals at the institution that such 
            student has been missing for more than 24 hours;
                ``(ii) requires any official missing person report 
            relating to such student be referred immediately to the 
            institution's police or campus security department; and
                ``(iii) if, on investigation of the official report, 
            such department determines that the missing student has 
            been missing for more than 24 hours, requires--

                    ``(I) such department to contact the individual 
                identified by such student under subparagraph (A)(i);
                    ``(II) if such student is under 18 years of age, 
                and not an emancipated individual, the institution to 
                immediately contact the custodial parent or legal 
                guardian of such student; and
                    ``(III) if subclauses (I) or (II) do not apply to a 
                student determined to be a missing person, inform the 
                appropriate law enforcement agency.

        ``(2) Rule of construction.--Nothing in this subsection shall 
    be construed--
            ``(A) to provide a private right of action to any person to 
        enforce any provision of this subsection; or
            ``(B) to create a cause of action against any institution 
        of higher education or any employee of the institution for any 
        civil liability.
    ``(k) Notice to Students Concerning Penalties for Drug 
Violations.--
        ``(1) Notice upon enrollment.--Each institution of higher 
    education shall provide to each student, upon enrollment, a 
    separate, clear, and conspicuous written notice that advises the 
    student of the penalties under section 484(r).
        ``(2) Notice after loss of eligibility.--An institution of 
    higher education shall provide in a timely manner to each student 
    who has lost eligibility for any grant, loan, or work-study 
    assistance under this title as a result of the penalties listed 
    under 484(r)(1) a separate, clear, and conspicuous written notice 
    that notifies the student of the loss of eligibility and advises 
    the student of the ways in which the student can regain eligibility 
    under section 484(r)(2).
    ``(l) Entrance Counseling for Borrowers.--
        ``(1) Disclosure required prior to disbursement.--
            ``(A) In general.--Each eligible institution shall, at or 
        prior to the time of a disbursement to a first-time borrower of 
        a loan made, insured, or guaranteed under part B (other than a 
        loan made pursuant to section 428C or a loan made on behalf of 
        a student pursuant to section 428B) or made under part D (other 
        than a Federal Direct Consolidation Loan or a Federal Direct 
        PLUS loan made on behalf of a student), ensure that the 
        borrower receives comprehensive information on the terms and 
        conditions of the loan and of the responsibilities the borrower 
        has with respect to such loan in accordance with subparagraph 
        (B). Such information--
                ``(i) shall be provided in a simple and understandable 
            manner; and
                ``(ii) may be provided--

                    ``(I) during an entrance counseling session 
                conduction in person;
                    ``(II) on a separate written form provided to the 
                borrower that the borrower signs and returns to the 
                institution; or
                    ``(III) online, with the borrower acknowledging 
                receipt of the information.

            ``(B) Use of interactive programs.--The Secretary shall 
        encourage institutions to carry out the requirements of 
        subparagraph (A) through the use of interactive programs that 
        test the borrower's understanding of the terms and conditions 
        of the borrower's loans under part B or D, using simple and 
        understandable language and clear formatting.
        ``(2) Information to be provided.--The information to be 
    provided to the borrower under paragraph (1)(A) shall include the 
    following:
            ``(A) To the extent practicable, the effect of accepting 
        the loan to be disbursed on the eligibility of the borrower for 
        other forms of student financial assistance.
            ``(B) An explanation of the use of the master promissory 
        note.
            ``(C) Information on how interest accrues and is 
        capitalized during periods when the interest is not paid by 
        either the borrower or the Secretary.
            ``(D) In the case of a loan made under section 428B or 
        428H, a Federal Direct PLUS Loan, or a Federal Direct 
        Unsubsidized Stafford Loan, the option of the borrower to pay 
        the interest while the borrower is in school.
            ``(E) The definition of half-time enrollment at the 
        institution, during regular terms and summer school, if 
        applicable, and the consequences of not maintaining half-time 
        enrollment.
            ``(F) An explanation of the importance of contacting the 
        appropriate offices at the institution of higher education if 
        the borrower withdraws prior to completing the borrower's 
        program of study so that the institution can provide exit 
        counseling, including information regarding the borrower's 
        repayment options and loan consolidation.
            ``(G) Sample monthly repayment amounts based on--
                ``(i) a range of levels of indebtedness of--

                    ``(I) borrowers of loans under section 428 or 428H; 
                and
                    ``(II) as appropriate, graduate borrowers of loans 
                under section 428, 428B, or 428H; or

                ``(ii) the average cumulative indebtedness of other 
            borrowers in the same program as the borrower at the same 
            institution.
            ``(H) The obligation of the borrower to repay the full 
        amount of the loan, regardless of whether the borrower 
        completes or does not complete the program in which the 
        borrower is enrolled within the regular time for program 
        completion.
            ``(I) The likely consequences of default on the loan, 
        including adverse credit reports, delinquent debt collection 
        procedures under Federal law, and litigation.
            ``(J) Information on the National Student Loan Data System 
        and how the borrower can access the borrower's records.
            ``(K) The name of and contact information for the 
        individual the borrower may contact if the borrower has any 
        questions about the borrower's rights and responsibilities or 
        the terms and conditions of the loan.''.
    SEC. 489. NATIONAL STUDENT LOAN DATA SYSTEM.
    Section 485B (20 U.S.C. 1092b) is amended--
        (1) in subsection (a)--
            (A) by redesignating paragraphs (6) through (10) as 
        paragraphs (7) through (11), respectively;
            (B) in paragraph (5) (as added by Public Law 101-610), by 
        striking ``effectiveness.'' and inserting ``effectiveness;''; 
        and
            (C) by redesignating paragraph (5) (as added by Public Law 
        101-234) as paragraph (6);
        (2) by redesignating subsections (d) through (g) as subsections 
    (e) through (h), respectively; and
        (3) by inserting after subsection (c) the following:
    ``(d) Principles for Administering the Data System.--In managing 
the National Student Loan Data System, the Secretary shall take actions 
necessary to maintain confidence in the data system, including, at a 
minimum--
        ``(1) ensuring that the primary purpose of access to the data 
    system by guaranty agencies, eligible lenders, and eligible 
    institutions of higher education is for legitimate program 
    operations, such as the need to verify the eligibility of a 
    student, potential student, or parent for loans under part B, D, or 
    E;
        ``(2) prohibiting nongovernmental researchers and policy 
    analysts from accessing personally identifiable information;
        ``(3) creating a disclosure form for students and potential 
    students that is distributed when such students complete the common 
    financial reporting form under section 483, and as a part of the 
    exit counseling process under section 485(b), that--
            ``(A) informs the students that any title IV grant or loan 
        the students receive will be included in the National Student 
        Loan Data System, and instructs the students on how to access 
        that information;
            ``(B) describes the categories of individuals or entities 
        that may access the data relating to such grant or loan through 
        the data system, and for what purposes access is allowed;
            ``(C) defines and explains the categories of information 
        included in the data system;
            ``(D) provides a summary of the provisions of section 444 
        of the General Education Provisions Act (the Family Educational 
        Rights and Privacy Act of 1974) and other applicable Federal 
        privacy statutes, and a statement of the students' rights and 
        responsibilities with respect to such statutes;
            ``(E) explains the measures taken by the Department to 
        safeguard the students' data; and
            ``(F) includes other information as determined appropriate 
        by the Secretary;
        ``(4) requiring guaranty agencies, eligible lenders, and 
    eligible institutions of higher education that enter into an 
    agreement with a potential student, student, or parent of such 
    student regarding a loan under part B, D, or E, to inform the 
    student or parent that such loan shall be--
            ``(A) submitted to the data system; and
            ``(B) accessible to guaranty agencies, eligible lenders, 
        and eligible institutions of higher education determined by the 
        Secretary to be authorized users of the data system;
        ``(5) regularly reviewing the data system to--
            ``(A) delete inactive users from the data system;
            ``(B) ensure that the data in the data system are not being 
        used for marketing purposes; and
            ``(C) monitor the use of the data system by guaranty 
        agencies and eligible lenders to determine whether an agency or 
        lender is accessing the records of students in which the agency 
        or lender has no existing financial interest; and
        ``(6) developing standardized protocols for limiting access to 
    the data system that include--
            ``(A) collecting data on the usage of the data system to 
        monitor whether access has been or is being used contrary to 
        the purposes of the data system;
            ``(B) defining the steps necessary for determining whether, 
        and how, to deny or restrict access to the data system; and
            ``(C) determining the steps necessary to reopen access to 
        the data system following a denial or restriction of access.''; 
        and
        (4) by striking subsection (e) (as redesignated by paragraph 
    (1)) and inserting the following:
    ``(e) Reports to Congress.--
        ``(1) Annual report.--Not later than September 30 of each 
    fiscal year, the Secretary shall prepare and submit to the 
    authorizing committees a report describing--
            ``(A) the effectiveness of existing privacy safeguards in 
        protecting student and parent information in the data system;
            ``(B) the success of any new authorization protocols in 
        more effectively preventing abuse of the data system;
            ``(C) the ability of the Secretary to monitor how the 
        system is being used, relative to the intended purposes of the 
        data system; and
            ``(D) any protocols developed under subsection (d)(6) 
        during the preceding fiscal year.
        ``(2) Study.--
            ``(A) In general.--The Secretary shall conduct a study 
        regarding--
                ``(i) available mechanisms for providing students and 
            parents with the ability to opt in or opt out of allowing 
            eligible lenders to access their records in the National 
            Student Loan Data System; and
                ``(ii) appropriate protocols for limiting access to the 
            data system, based on the risk assessment required under 
            subchapter III of chapter 35 of title 44, United States 
            Code.
            ``(B) Submission of study.--Not later than three years 
        after the date of enactment of the Higher Education Opportunity 
        Act, the Secretary shall prepare and submit a report on the 
        findings of the study under subparagraph (A) to the authorizing 
        committees.''.
    SEC. 490. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
    Part G of title IV (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 485D (20 U.S.C. 1092c) the following:
``SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.
    ``(a) In General.--The Secretary shall implement, in cooperation 
with States, institutions of higher education, secondary schools, early 
intervention and outreach programs under this title, other agencies and 
organizations involved in student financial assistance and college 
access, public libraries, community centers, employers, and businesses, 
a comprehensive system of early financial aid information in order to 
provide students and families with early information about financial 
aid and early estimates of such students' eligibility for financial aid 
from multiple sources. Such system shall include the activities 
described in subsection (b).
    ``(b) Communication of Availability of Aid and Aid Eligibility.--
        ``(1) Students who receive benefits.--The Secretary shall--
            ``(A) make special efforts to notify students who receive 
        or are eligible to receive benefits under a Federal means-
        tested benefit program (including the supplemental nutrition 
        assistance program under the Food and Nutrition Act of 2008 (7 
        U.S.C. 2011 et seq.)), or another such benefit program as 
        determined by the Secretary, of such students' potential 
        eligibility for a maximum Federal Pell Grant under subpart 1 of 
        part A; and
            ``(B) disseminate such informational materials, that are 
        part of the system described in subsection (a), as the 
        Secretary determines necessary.
        ``(2) Secondary school students.--The Secretary, in cooperation 
    with States, institutions of higher education, other organizations 
    involved in college access and student financial aid, secondary 
    schools, and programs under this title that serve secondary school 
    students, shall make special efforts to notify students in 
    secondary school and their families, as early as possible but not 
    later than such students' junior year of secondary school, of the 
    availability of financial aid under this title and shall provide 
    nonbinding estimates of the amounts of grant and loan aid that an 
    individual may be eligible for under this title upon completion of 
    an application form under section 483(a). The Secretary shall 
    ensure that such information is as accurate as possible and that 
    such information is provided in an age-appropriate format using 
    dissemination mechanisms suitable for students in secondary school.
        ``(3) Adult learners.--The Secretary, in cooperation with 
    States, institutions of higher education, other organizations 
    involved in college access and student financial aid, employers, 
    workforce investment boards, and public libraries, shall make 
    special efforts to provide individuals who would qualify as 
    independent students, as defined in section 480(d), with 
    information regarding the availability of financial aid under this 
    title and with nonbinding estimates of the amounts of grant and 
    loan aid that an individual may be eligible for under this title 
    upon completion of an application form under section 483(a). The 
    Secretary shall ensure that such information--
            ``(A) is as accurate as possible;
            ``(B) includes specific information regarding the 
        availability of financial aid for students qualified as 
        independent students, as defined in section 480(d); and
            ``(C) uses dissemination mechanisms suitable for adult 
        learners.
        ``(4) Public awareness campaign.--Not later than two years 
    after the date of enactment of the Higher Education Opportunity 
    Act, the Secretary, in coordination with States, institutions of 
    higher education, early intervention and outreach programs under 
    this title, other agencies and organizations involved in college 
    access and student financial aid, secondary schools, organizations 
    that provide services to individuals that are or were homeless, to 
    individuals in foster care, or to other disconnected individuals, 
    local educational agencies, public libraries, community centers, 
    businesses, employers, employment services, workforce investment 
    boards, and movie theaters, shall implement a public awareness 
    campaign in order to increase national awareness regarding the 
    availability of financial aid under this title. The public 
    awareness campaign shall disseminate accurate information regarding 
    the availability of financial aid under this title and shall be 
    implemented, to the extent practicable, using a variety of media, 
    including print, television, radio, and the Internet. The Secretary 
    shall design and implement the public awareness campaign based upon 
    relevant independent research and the information and dissemination 
    strategies found most effective in implementing paragraphs (1) 
    through (3).''.
    SEC. 491. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
    Section 486(f)(3) (20 U.S.C. 1093(f)(3)) is amended--
        (1) in subparagraph (B), by redesignating clauses (i) and (ii) 
    as subparagraphs (A) and (B), respectively, and adjusting the 
    margins accordingly; and
        (2) by striking ``Reports.--'' and all that follows through 
    ``House of Representatives on an annual basis'' and inserting 
    ``Annual reports.--The Secretary shall provide reports to the 
    authorizing committees on an annual basis''.
    SEC. 492. ARTICULATION AGREEMENTS.
    Part G of title IV is further amended by inserting after section 
486 (20 U.S.C. 1093) the following new section:
``SEC. 486A. ARTICULATION AGREEMENTS.
    ``(a) Definition.--In this section, the term `articulation 
agreement' means an agreement between or among institutions of higher 
education that specifies the acceptability of courses in transfer 
toward meeting specific degree or program requirements.
    ``(b) Program To Encourage Articulation Agreements.--
        ``(1) Program established.--The Secretary shall carry out a 
    program for States, in cooperation with public institutions of 
    higher education, to develop, enhance, and implement comprehensive 
    articulation agreements between or among such institutions in a 
    State, and (to the extent practicable) across State lines, by 2010. 
    Such articulation agreements shall be made widely and publicly 
    available on the websites of States and such institutions. In 
    developing, enhancing, and implementing articulation agreements, 
    States and public institutions of higher education may employ 
    strategies, where applicable, including--
            ``(A) common course numbering;
            ``(B) a general education core curriculum;
            ``(C) management systems regarding course equivalency, 
        transfer of credit, and articulation; and
            ``(D) other strategies identified by the Secretary.
        ``(2) Technical assistance provided.--The Secretary shall 
    provide technical assistance to States and public institutions of 
    higher education for the purposes of developing and implementing 
    articulation agreements in accordance with this subsection.
        ``(3) 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 articulation agreements.''.
    SEC. 493. PROGRAM PARTICIPATION AGREEMENTS.
    (a) Program Participation Agreement Requirements.--
        (1) Voter registration; 90-10 rule; code of conduct; 
    disciplinary proceedings; preferred lender lists; private education 
    loan certification; copyrighted material.--
            (A) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
        amended--
                (i) in paragraph (23)--

                    (I) by moving subparagraph (C) two ems to the left; 
                and
                    (II) by adding at the end the following:

            ``(D) The institution shall be considered in compliance 
        with the requirements of subparagraph (A) for each 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, if such 
        information is in an electronic message devoted exclusively to 
        voter registration.''; and
                (ii) by adding at the end the following:
        ``(24) In the case of a proprietary institution of higher 
    education (as defined in section 102(b)), such institution will 
    derive not less than ten percent of such institution's revenues 
    from sources other than funds provided under this title, as 
    calculated in accordance with subsection (d)(1), or will be subject 
    to the sanctions described in subsection (d)(2).
        ``(25) In the case of an institution that participates in a 
    loan program under this title, the institution will--
            ``(A) develop a code of conduct with respect to such loans 
        with which the institution's officers, employees, and agents 
        shall comply, that--
                ``(i) prohibits a conflict of interest with the 
            responsibilities of an officer, employee, or agent of an 
            institution with respect to such loans; and
                ``(ii) at a minimum, includes the provisions described 
            in subsection (e);
            ``(B) publish such code of conduct prominently on the 
        institution's website; and
            ``(C) administer and enforce such code by, at a minimum, 
        requiring that all of the institution's officers, employees, 
        and agents with responsibilities with respect to such loans be 
        annually informed of the provisions of the code of conduct.
        ``(26) The institution will, upon written request, disclose to 
    the alleged victim of any crime of violence (as that term is 
    defined in section 16 of title 18, United States Code), or a 
    nonforcible sex offense, the report on the 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 as a result of such crime or 
    offense, the next of kin of such victim shall be treated as the 
    alleged victim for purposes of this paragraph.
        ``(27) In the case of an institution that has entered into a 
    preferred lender arrangement, the institution will at least 
    annually compile, maintain, and make available for students 
    attending the institution, and the families of such students, a 
    list, in print or other medium, of the specific lenders for loans 
    made, insured, or guaranteed under this title or private education 
    loans that the institution recommends, promotes, or endorses in 
    accordance with such preferred lender arrangement. In making such 
    list, the institution shall comply with the requirements of 
    subsection (h).
        ``(28)(A) The institution will, upon the request of an 
    applicant for a private education loan, provide to the applicant 
    the form required under section 128(e)(3) of the Truth in Lending 
    Act (15 U.S.C. 1638(e)(3)), and the information required to 
    complete such form, to the extent the institution possesses such 
    information.
        ``(B) For purposes of this paragraph, the term `private 
    education loan' has the meaning given such term in section 140 of 
    the Truth in Lending Act.
        ``(29) The institution certifies that the institution--
            ``(A) has developed plans to effectively combat the 
        unauthorized distribution of copyrighted material, including 
        through the use of a variety of technology-based deterrents; 
        and
            ``(B) will, to the extent practicable, offer alternatives 
        to illegal downloading or peer-to-peer distribution of 
        intellectual property, as determined by the institution in 
        consultation with the chief technology officer or other 
        designated officer of the institution.''.
            (B) Effective date.--The amendment made by subparagraph (A) 
        with respect to section 487(a)(26) of the Higher Education Act 
        of 1965 (as added by subparagraph (A)) shall apply with respect 
        to any disciplinary proceeding conducted by an institution on 
        or after the day that is one year after the date of enactment 
        of this Act.
    (b) Audits; Financial Responsibility; Enforcement of Standards.--
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 receives less than $500,000 in loans under 
this title during the award year preceding the audit period''.
    (c) Implementation of Non-Title IV Revenue Requirement; Code of 
Conduct; Institutional Requirements for Teach-Outs; Inspector General 
Report on Gift Ban Violations; Preferred Lender List Requirements.--
Section 487 (20 U.S.C. 1094) is further amended--
        (1) by redesignating subsections (d) and (e) as subsections (i) 
    and (j), respectively; and
        (2) by inserting after subsection (c) the following:
    ``(d) Implementation of Non-Title IV Revenue Requirement.--
        ``(1) Calculation.--In making calculations under subsection 
    (a)(24), a proprietary institution of higher education shall--
            ``(A) use the cash basis of accounting, except in the case 
        of loans described in subparagraph (D)(i) that are made by the 
        proprietary institution of higher education;
            ``(B) consider as revenue only those funds generated by the 
        institution from--
                ``(i) tuition, fees, and other institutional charges 
            for students enrolled in programs eligible for assistance 
            under this title;
                ``(ii) activities conducted by the institution that are 
            necessary for the education and training of the 
            institution's students, if such activities are--

                    ``(I) conducted on campus or at a facility 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; and

                ``(iii) 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, if the program--

                    ``(I) is approved or licensed by the appropriate 
                State agency;
                    ``(II) is accredited by an accrediting agency 
                recognized by the Secretary; or
                    ``(III) provides an industry-recognized credential 
                or certification;

            ``(C) presume that any funds for a program under this title 
        that are disbursed or delivered to or on behalf of a student 
        will be used to pay the student's tuition, fees, or other 
        institutional charges, regardless of whether the institution 
        credits those funds to the student's account or pays those 
        funds directly to the student, except to the extent that the 
        student's tuition, fees, or other institutional charges are 
        satisfied by--
                ``(i) grant funds provided by non-Federal public 
            agencies or private sources independent of the institution;
                ``(ii) funds provided under a contractual arrangement 
            with a Federal, State, or local government agency for the 
            purpose of providing job training to low-income individuals 
            who are in need of that training;
                ``(iii) 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; or
                ``(iv) institutional scholarships described in 
            subparagraph (D)(iii);
            ``(D) include institutional aid as revenue to the school 
        only as follows:
                ``(i) in the case of loans made by a proprietary 
            institution of higher education on or after July 1, 2008 
            and prior to July 1, 2012, the net present value of such 
            loans made by the institution during the applicable 
            institutional fiscal year accounted for on an accrual basis 
            and estimated in accordance with generally accepted 
            accounting principles and related standards and guidance, 
            if the loans--

                    ``(I) are bona fide as evidenced by enforceable 
                promissory notes;
                    ``(II) are issued at intervals related to the 
                institution's enrollment periods; and
                    ``(III) are subject to regular loan repayments and 
                collections;

                ``(ii) in the case of loans made by a proprietary 
            institution of higher education on or after July 1, 2012, 
            only the amount of loan repayments received during the 
            applicable institutional fiscal year, excluding repayments 
            on loans made and accounted for as specified in clause (i); 
            and
                ``(iii) in the case of scholarships provided by a 
            proprietary institution of higher education, only those 
            scholarships provided by the institution in the form of 
            monetary aid or tuition discounts based upon the academic 
            achievements or financial need of students, disbursed 
            during each fiscal year from an established restricted 
            account, and only to the extent that funds in that account 
            represent designated funds from an outside source or from 
            income earned on those funds;
            ``(E) in the case of each student who receives a loan on or 
        after July 1, 2008, and prior to July 1, 2011, that is 
        authorized under section 428H or that is a Federal Direct 
        Unsubsidized Stafford Loan, treat as revenue received by the 
        institution from sources other than funds received under this 
        title, the amount by which the disbursement of such loan 
        received by the institution exceeds the limit on such loan in 
        effect on the day before the date of enactment of the Ensuring 
        Continued Access to Student Loans Act of 2008; and
            ``(F) exclude from revenues--
                ``(i) the amount of funds the institution received 
            under part C, unless the institution used those funds to 
            pay a student's institutional charges;
                ``(ii) the amount of funds the institution received 
            under subpart 4 of part A;
                ``(iii) the amount of funds provided by the institution 
            as matching funds for a program under this title;
                ``(iv) the amount of funds provided by the institution 
            for a program under this title that are required to be 
            refunded or returned; and
                ``(v) the amount charged for books, supplies, and 
            equipment, unless the institution includes that amount as 
            tuition, fees, or other institutional charges.
        ``(2) Sanctions.--
            ``(A) Ineligibility.--A proprietary institution of higher 
        education that fails to meet a requirement of subsection 
        (a)(24) for two consecutive institutional fiscal years shall be 
        ineligible to participate in the programs authorized by this 
        title for a period of not less than two institutional fiscal 
        years. To regain eligibility to participate in the programs 
        authorized by this title, a proprietary institution of higher 
        education shall demonstrate compliance with all eligibility and 
        certification requirements under section 498 for a minimum of 
        two institutional fiscal years after the institutional fiscal 
        year in which the institution became ineligible.
            ``(B) Additional enforcement.--In addition to such other 
        means of enforcing the requirements of this title as may be 
        available to the Secretary, if a proprietary institution of 
        higher education fails to meet a requirement of subsection 
        (a)(24) for any institutional fiscal year, then the 
        institution's eligibility to participate in the programs 
        authorized by this title becomes provisional for the two 
        institutional fiscal years after the institutional fiscal year 
        in which the institution failed to meet the requirement of 
        subsection (a)(24), except that such provisional eligibility 
        shall terminate--
                ``(i) on the expiration date of the institution's 
            program participation agreement under this subsection that 
            is in effect on the date the Secretary determines that the 
            institution failed to meet the requirement of subsection 
            (a)(24); or
                ``(ii) in the case that the Secretary determines that 
            the institution failed to meet a requirement of subsection 
            (a)(24) for two consecutive institutional fiscal years, on 
            the date the institution is determined ineligible in 
            accordance with subparagraph (A).
        ``(3) Publication on college navigator website.--The Secretary 
    shall publicly disclose on the College Navigator website--
            ``(A) the identity of any proprietary institution of higher 
        education that fails to meet a requirement of subsection 
        (a)(24); and
            ``(B) the extent to which the institution failed to meet 
        such requirement.
        ``(4) Report to congress.--Not later than July 1, 2009, and 
    July 1 of each succeeding year, the Secretary shall submit to the 
    authorizing committees a report that contains, for each proprietary 
    institution of higher education that receives assistance under this 
    title, as provided in the audited financial statements submitted to 
    the Secretary by each institution pursuant to the requirements of 
    subsection (a)(24)--
            ``(A) the amount and percentage of such institution's 
        revenues received from sources under this title; and
            ``(B) the amount and percentage of such institution's 
        revenues received from other sources.
    ``(e) Code of Conduct Requirements.--An institution of higher 
education's code of conduct, as required under subsection (a)(25), 
shall include the following requirements:
        ``(1) Ban on revenue-sharing arrangements.--
            ``(A) Prohibition.--The institution shall not enter into 
        any revenue-sharing arrangement with any lender.
            ``(B) Definition.--For purposes of this paragraph, the term 
        `revenue-sharing arrangement' means an arrangement between an 
        institution and a lender under which--
                ``(i) a lender provides or issues a loan that is made, 
            insured, or guaranteed under this title to students 
            attending the institution or to the families of such 
            students; and
                ``(ii) the institution recommends the lender or the 
            loan products of the lender and in exchange, the lender 
            pays a fee or provides other material benefits, including 
            revenue or profit sharing, to the institution, an officer 
            or employee of the institution, or an agent.
        ``(2) Gift ban.--
            ``(A) Prohibition.--No officer or employee of the 
        institution who is employed in the financial aid office of the 
        institution or who otherwise has responsibilities with respect 
        to education loans, or agent who has responsibilities with 
        respect to education loans, shall solicit or accept any gift 
        from a lender, guarantor, or servicer of education loans.
            ``(B) Definition of gift.--
                ``(i) In general.--In this paragraph, the term `gift' 
            means any gratuity, favor, discount, entertainment, 
            hospitality, loan, or other item having a monetary value of 
            more than a de minimus amount. The term includes a gift of 
            services, transportation, lodging, or meals, whether 
            provided in kind, by purchase of a ticket, payment in 
            advance, or reimbursement after the expense has been 
            incurred.
                ``(ii) Exceptions.--The term `gift' shall not include 
            any of the following:

                    ``(I) Standard material, activities, or programs on 
                issues related to a loan, default aversion, default 
                prevention, or financial literacy, such as a brochure, 
                a workshop, or training.
                    ``(II) Food, refreshments, training, or 
                informational material furnished to an officer or 
                employee of an institution, or to an agent, as an 
                integral part of a training session that is designed to 
                improve the service of a lender, guarantor, or servicer 
                of education loans to the institution, if such training 
                contributes to the professional development of the 
                officer, employee, or agent.
                    ``(III) Favorable terms, conditions, and borrower 
                benefits on an education loan provided to a student 
                employed by the institution if such terms, conditions, 
                or benefits are comparable to those provided to all 
                students of the institution.
                    ``(IV) Entrance and exit counseling services 
                provided to borrowers to meet the institution's 
                responsibilities for entrance and exit counseling as 
                required by subsections (b) and (l) of section 485, as 
                long as--

                        ``(aa) the institution's staff are in control 
                    of the counseling, (whether in person or via 
                    electronic capabilities); and
                        ``(bb) such counseling does not promote the 
                    products or services of any specific lender.

                    ``(V) Philanthropic contributions to an institution 
                from a lender, servicer, or guarantor of education 
                loans that are unrelated to education loans or any 
                contribution from any lender, guarantor, or servicer 
                that is not made in exchange for any advantage related 
                to education loans.
                    ``(VI) State education grants, scholarships, or 
                financial aid funds administered by or on behalf of a 
                State.

                ``(iii) Rule for gifts to family members.--For purposes 
            of this paragraph, a gift to a family member of an officer 
            or employee of an institution, to a family member of an 
            agent, or to any other individual based on that 
            individual's relationship with the officer, employee, or 
            agent, shall be considered a gift to the officer, employee, 
            or agent if--

                    ``(I) the gift is given with the knowledge and 
                acquiescence of the officer, employee, or agent; and
                    ``(II) the officer, employee, or agent has reason 
                to believe the gift was given because of the official 
                position of the officer, employee, or agent.

        ``(3) Contracting arrangements prohibited.--
            ``(A) Prohibition.--An officer or employee who is employed 
        in the financial aid office of the institution or who otherwise 
        has responsibilities with respect to education loans, or an 
        agent who has responsibilities with respect to education loans, 
        shall not accept from any lender or affiliate of any lender any 
        fee, payment, or other financial benefit (including the 
        opportunity to purchase stock) as compensation for any type of 
        consulting arrangement or other contract to provide services to 
        a lender or on behalf of a lender relating to education loans.
            ``(B) Exceptions.--Nothing in this subsection shall be 
        construed as prohibiting--
                ``(i) an officer or employee of an institution who is 
            not employed in the institution's financial aid office and 
            who does not otherwise have responsibilities with respect 
            to education loans, or an agent who does not have 
            responsibilities with respect to education loans, from 
            performing paid or unpaid service on a board of directors 
            of a lender, guarantor, or servicer of education loans;
                ``(ii) an officer or employee of the institution who is 
            not employed in the institution's financial aid office but 
            who has responsibility with respect to education loans as a 
            result of a position held at the institution, or an agent 
            who has responsibility with respect to education loans, 
            from performing paid or unpaid service on a board of 
            directors of a lender, guarantor, or servicer of education 
            loans, if the institution has a written conflict of 
            interest policy that clearly sets forth that officers, 
            employees, or agents must recuse themselves from 
            participating in any decision of the board regarding 
            education loans at the institution; or
                ``(iii) an officer, employee, or contractor of a 
            lender, guarantor, or servicer of education loans from 
            serving on a board of directors, or serving as a trustee, 
            of an institution, if the institution has a written 
            conflict of interest policy that the board member or 
            trustee must recuse themselves from any decision regarding 
            education loans at the institution.
        ``(4) Interaction with borrowers.--The institution shall not--
            ``(A) for any first-time borrower, assign, through award 
        packaging or other methods, the borrower's loan to a particular 
        lender; or
            ``(B) refuse to certify, or delay certification of, any 
        loan based on the borrower's selection of a particular lender 
        or guaranty agency.
        ``(5) Prohibition on offers of funds for private loans.--
            ``(A) Prohibition.--The institution shall not request or 
        accept from any lender any offer of funds to be used for 
        private education loans (as defined in section 140 of the Truth 
        in Lending Act), including funds for an opportunity pool loan, 
        to students in exchange for the institution providing 
        concessions or promises regarding providing the lender with--
                ``(i) a specified number of loans made, insured, or 
            guaranteed under this title;
                ``(ii) a specified loan volume of such loans; or
                ``(iii) a preferred lender arrangement for such loans.
            ``(B) Definition of opportunity pool loan.--In this 
        paragraph, the term `opportunity pool loan' means a private 
        education loan made by a lender to a student attending the 
        institution or the family member of such a student that 
        involves a payment, directly or indirectly, by such institution 
        of points, premiums, additional interest, or financial support 
        to such lender for the purpose of such lender extending credit 
        to the student or the family.
        ``(6) Ban on staffing assistance.--
            ``(A) Prohibition.--The institution shall not request or 
        accept from any lender any assistance with call center staffing 
        or financial aid office staffing.
            ``(B) Certain assistance permitted.--Nothing in paragraph 
        (1) shall be construed to prohibit the institution from 
        requesting or accepting assistance from a lender related to--
                ``(i) professional development training for financial 
            aid administrators;
                ``(ii) providing educational counseling materials, 
            financial literacy materials, or debt management materials 
            to borrowers, provided that such materials disclose to 
            borrowers the identification of any lender that assisted in 
            preparing or providing such materials; or
                ``(iii) staffing services on a short-term, nonrecurring 
            basis to assist the institution with financial aid-related 
            functions during emergencies, including State-declared or 
            federally declared natural disasters, federally declared 
            national disasters, and other localized disasters and 
            emergencies identified by the Secretary.
        ``(7) Advisory board compensation.--Any employee who is 
    employed in the financial aid office of the institution, or who 
    otherwise has responsibilities with respect to education loans or 
    other student financial aid of the institution, and who serves on 
    an advisory board, commission, or group established by a lender, 
    guarantor, or group of lenders or guarantors, shall be prohibited 
    from receiving anything of value from the lender, guarantor, or 
    group of lenders or guarantors, except that the employee may be 
    reimbursed for reasonable expenses incurred in serving on such 
    advisory board, commission, or group.
    ``(f) Institutional Requirements for Teach-Outs.--
        ``(1) In general.--In the event the Secretary initiates the 
    limitation, suspension, or termination of the participation of an 
    institution of higher education in any program under this title 
    under the authority of subsection (c)(1)(F) or initiates an 
    emergency action under the authority of subsection (c)(1)(G) and 
    its prescribed regulations, the Secretary shall require that 
    institution to prepare a teach-out plan for submission to the 
    institution's accrediting agency or association in compliance with 
    section 496(c)(4), the Secretary's regulations on teach-out plans, 
    and the standards of the institution's accrediting agency or 
    association.
        ``(2) Teach-out plan defined.--In this subsection, the term 
    `teach-out plan' means a written plan that provides for the 
    equitable treatment of students if an institution of higher 
    education ceases to operate before all students have completed 
    their program of study, and may include, if required by the 
    institution's accrediting agency or association, an agreement 
    between institutions for such a teach-out plan.
    ``(g) Inspector General Report on Gift Ban Violations.--The 
Inspector General of the Department shall--
        ``(1) submit an annual report to the authorizing committees 
    identifying all violations of an institution's code of conduct that 
    the Inspector General has substantiated during the preceding year 
    relating to the gift ban provisions described in subsection (f)(2); 
    and
        ``(2) make the report available to the public through the 
    Department's website.
    ``(h) Preferred Lender List Requirements.--
        ``(1) In general.--In compiling, maintaining, and making 
    available a preferred lender list as required under subsection 
    (a)(27), the institution will--
            ``(A) clearly and fully disclose on such preferred lender 
        list--
                ``(i) not less than the information required to be 
            disclosed under section 153(a)(2)(A);
                ``(ii) why the institution has entered into a preferred 
            lender arrangement with each lender on the preferred lender 
            list, particularly with respect to terms and conditions or 
            provisions favorable to the borrower; and
                ``(iii) that the students attending the institution, or 
            the families of such students, do not have to borrow from a 
            lender on the preferred lender list;
            ``(B) ensure, through the use of the list of lender 
        affiliates provided by the Secretary under paragraph (2), 
        that--
                ``(i) there are not less than three lenders of loans 
            made under part B that are not affiliates of each other 
            included on the preferred lender list and, if the 
            institution recommends, promotes, or endorses private 
            education loans, there are not less than two lenders of 
            private education loans that are not affiliates of each 
            other included on the preferred lender list; and
                ``(ii) the preferred lender list under this paragraph--

                    ``(I) specifically indicates, for each listed 
                lender, whether the lender is or is not an affiliate of 
                each other lender on the preferred lender list; and
                    ``(II) if a lender is an affiliate of another 
                lender on the preferred lender list, describes the 
                details of such affiliation;

            ``(C) prominently disclose the method and criteria used by 
        the institution in selecting lenders with which to enter into 
        preferred lender arrangements to ensure that such lenders are 
        selected on the basis of the best interests of the borrowers, 
        including--
                ``(i) payment of origination or other fees on behalf of 
            the borrower;
                ``(ii) highly competitive interest rates, or other 
            terms and conditions or provisions of loans under this 
            title or private education loans;
                ``(iii) high-quality servicing for such loans; or
                ``(iv) additional benefits beyond the standard terms 
            and conditions or provisions for such loans;
            ``(D) exercise a duty of care and a duty of loyalty to 
        compile the preferred lender list under this paragraph without 
        prejudice and for the sole benefit of the students attending 
        the institution, or the families of such students;
            ``(E) not deny or otherwise impede the borrower's choice of 
        a lender or cause unnecessary delay in loan certification under 
        this title for those borrowers who choose a lender that is not 
        included on the preferred lender list; and
            ``(F) comply with such other requirements as the Secretary 
        may prescribe by regulation.
        ``(2) Lender affiliates list.--
            ``(A) In general.--The Secretary shall maintain and 
        regularly update a list of lender affiliates of all eligible 
        lenders, and shall provide such list to institutions for use in 
        carrying out paragraph (1)(B).
            ``(B) Use of most recent list.--An institution shall use 
        the most recent list of lender affiliates provided by the 
        Secretary under subparagraph (A) in carrying out paragraph 
        (1)(B).''.
    (d) Definitions.--Section 487(i) (as redesignated by subsection 
(c)(1)) (20 U.S.C. 1087(i)) is further amended--
        (1) by striking ``(i) Definition of Eligible Institution.--For 
    the purpose of this section, the'' and inserting the following:
    ``(i) Definitions.--For the purpose of this section:
        ``(1) Agent.--The term `agent' has the meaning given the term 
    in section 151.
        ``(2) Affiliate.--The term `affiliate' means a person that 
    controls, is controlled by, or is under common control with another 
    person. A person controls, is controlled by, or is under common 
    control with another person if--
            ``(A) the person directly or indirectly, or acting through 
        one or more others, owns, controls, or has the power to vote 
        five percent or more of any class of voting securities of such 
        other person;
            ``(B) the person controls, in any manner, the election of a 
        majority of the directors or trustees of such other person; or
            ``(C) 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's education loans.
        ``(3) Education loan.--The term `education loan' has the 
    meaning given the term in section 151.
        ``(4) Eligible institution.--The''; and
        (2) by adding at the end the following new paragraph:
        ``(5) Officer.--The term `officer' has the meaning given the 
    term in section 151.
        ``(6) Preferred lender arrangement.--The term `preferred lender 
    arrangement' has the meaning given the term in section 151.''.
    SEC. 494. REGULATORY RELIEF AND IMPROVEMENT.
    Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
        (1) by amending paragraph (1) to read as follows:
        ``(1) In general.--The Secretary shall continue the voluntary 
    participation of any experimental sites in existence as of July 1, 
    2007, unless the Secretary determines that such site's 
    participation has not been successful in carrying out the purposes 
    of this section. Any activities approved by the Secretary prior to 
    such date that have not been successful in carrying out the 
    purposes of this section shall be discontinued not later than June 
    30, 2009.'';
        (2) in paragraph (2), by striking the matter preceding 
    subparagraph (A) and inserting the following:
        ``(2) Report.--The Secretary shall review and evaluate the 
    experience of institutions participating as experimental sites and 
    shall, on a biennial basis, submit a report based on the review and 
    evaluation to the authorizing committees. Such report shall 
    include--''; and
        (3) in paragraph (3)--
            (A) in subparagraph (A)--
                (i) by striking ``Upon the submission of the report 
            required by paragraph (2), the'' and inserting ``The''; and
                (ii) by inserting ``periodically'' after ``authorized 
            to'';
            (B) by striking subparagraph (B);
            (C) by redesignating subparagraph (C) as subparagraph (B); 
        and
            (D) in subparagraph (B) (as redesignated by subparagraph 
        (C))--
                (i) by inserting ``, including requirements related to 
            the award process and disbursement of student financial aid 
            (such as innovative delivery systems for modular or 
            compressed courses, or other innovative systems), 
            verification of student financial aid application data, 
            entrance and exit interviews, or other management 
            procedures or processes as determined in the negotiated 
            rulemaking process under section 492'' after ``requirements 
            in this title'';
                (ii) by inserting ``(other than an award rule related 
            to an experiment in modular or compressed schedules)'' 
            after ``award rules''; and
                (iii) by inserting ``unless the waiver of such 
            provisions is authorized by another provision under this 
            title'' before the period at the end.
SEC. 494A. TRANSFER OF ALLOTMENTS.
    Section 488 (20 U.S.C. 1095) is amended in the first sentence--
        (1) in paragraph (1), by striking ``and'' after the semicolon;
        (2) in paragraph (2), by striking ``413D.'' and inserting 
    ``413D or 462 (or both); and''; and
        (3) by adding at the end ``(3) transfer 25 percent of the 
    institution's allotment under section 413D to the institution's 
    allotment under section 442.''.
SEC. 494B. PURPOSE OF ADMINISTRATIVE PAYMENTS.
    Section 489(b)(1) (20 U.S.C. 1096(b)(1)) is amended by striking 
``offsetting the administrative costs of'' and inserting 
``administering''.
SEC. 494C. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
    (a) Amendments.--Section 491 (20 U.S.C. 1098) is amended--
        (1) in subsection (a)(2)--
            (A) in subparagraph (B), by striking ``and'' after the 
        semicolon;
            (B) in subparagraph (C), by striking the period and 
        inserting a semicolon; and
            (C) by adding at the end the following:
            ``(D) to provide knowledge and understanding of early 
        intervention programs, and to make recommendations that will 
        result in early awareness by low- and moderate-income students 
        and families--
                ``(i) of their eligibility for assistance under this 
            title; and
                ``(ii) to the extent practicable, of their eligibility 
            for other forms of State and institutional need-based 
            student assistance;
            ``(E) to make recommendations that will expand and improve 
        partnerships among the Federal Government, States, institutions 
        of higher education, and private entities to increase the 
        awareness and the total amount of need-based student assistance 
        available to low- and moderate-income students; and
            ``(F) to collect information on Federal regulations, and on 
        the impact of Federal regulations on student financial 
        assistance and on the cost of receiving a postsecondary 
        education, and to make recommendations to help streamline the 
        regulations for institutions of higher education from all 
        sectors.'';
        (2) by striking subsection (c) and inserting the following new 
    subsection:
    ``(c) Membership.--(1) The Advisory Committee shall consist of 11 
members appointed as follows:
        ``(A) Four members shall be appointed by the President pro 
    tempore of the Senate, of whom two members shall be appointed from 
    recommendations by the Majority Leader of the Senate, and two 
    members shall be appointed from recommendations by the Minority 
    Leader of the Senate.
        ``(B) Four members shall be appointed by the Speaker of the 
    House of Representatives, of whom two members shall be appointed 
    from recommendations by the Majority Leader of the House of 
    Representatives, and two members shall be appointed from 
    recommendations by the Minority Leader of the House of 
    Representatives.
        ``(C) Three members shall be appointed by the Secretary, of 
    whom at least one member shall be a student.
    ``(2) Each member of the Advisory Committee, with the exception of 
a student member, shall be appointed on the basis of technical 
qualifications, professional experience, and demonstrated knowledge in 
the fields of higher education, student financial aid, financing post-
secondary education, and the operations and financing of student loan 
guarantee agencies.
    ``(3) The appointment of a member under subparagraph (A) or (B) of 
paragraph (1) shall be effective upon publication of such appointment 
in the Congressional Record.'';
        (3) in subsection (d)--
            (A) in paragraph (6), by striking ``, but nothing in this 
        section shall authorize the committee to perform such studies, 
        surveys, or analyses'';
            (B) in paragraph (8), by striking ``and'' after the 
        semicolon;
            (C) by redesignating paragraph (9) as paragraph (11); and
            (D) by inserting after paragraph (8) (as amended by 
        subparagraph (B)) the following:
        ``(9) provide an annual report to the authorizing committees 
    that provides analyses and policy recommendations regarding--
            ``(A) the adequacy of need-based grant aid for low- and 
        moderate-income students; and
            ``(B) the postsecondary enrollment and graduation rates of 
        low- and moderate-income students;
        ``(10) develop and maintain an information clearinghouse to 
    help institutions of higher education understand the regulatory 
    impact of the Federal Government on institutions of higher 
    education from all sectors, in order to raise awareness of 
    institutional legal obligations and provide information to improve 
    compliance with, and to reduce the duplication and inefficiency of, 
    Federal regulations; and'';
        (4) in subsection (e)--
            (A) in the matter preceding subparagraph (A) of paragraph 
        (1), by striking ``3'' and inserting ``4''; and
            (B) in paragraph (2), by striking ``A member of the 
        Advisory Committee shall'' and all that follows through ``on 
        the Advisory Committee.'' and inserting ``A member of the 
        Advisory Committee serving on the date of enactment of the 
        Higher Education Opportunity Act shall be permitted to serve 
        the duration of the member's term, regardless of whether the 
        member was previously appointed to more than one term.'';
        (5) in subsection (j)--
            (A) in paragraph (1)--
                (i) by inserting ``and simplifications'' after 
            ``delivery processes''; and
                (ii) by striking ``including the implementation of a 
            performance-based organization within the Department, and 
            report to Congress regarding such modernization on not less 
            than an annual basis,''; and
            (B) by striking paragraphs (4) and (5) and inserting the 
        following:
        ``(4) conduct a review and analysis of regulations in 
    accordance with subsection (l); and
        ``(5) conduct a study in accordance with subsection (m).'';
        (6) in subsection (k), by striking ``2004'' and inserting 
    ``2014''; and
        (7) by adding at the end the following:
    ``(l) Review and Analysis of Regulations.--
        ``(1) Recommendations.--The Advisory Committee shall make 
    recommendations to the Secretary and the authorizing committees for 
    consideration of future legislative action regarding redundant or 
    outdated regulations consistent with the Secretary's requirements 
    under section 498B.
        ``(2) Review and analysis of regulations.--
            ``(A) Review of current regulations.--To meet the 
        requirements of subsection (d)(10), the Advisory Committee 
        shall conduct a review and analysis of the regulations issued 
        by Federal agencies that are in effect at the time of the 
        review and that apply to the operations or activities of 
        institutions of higher education from all sectors. The review 
        and analysis may include a determination of whether the 
        regulation is duplicative, is no longer necessary, is 
        inconsistent with other Federal requirements, or is overly 
        burdensome. In conducting the review, the Advisory Committee 
        shall pay specific attention to evaluating ways in which 
        regulations under this title affecting institutions of higher 
        education (other than institutions described in section 
        102(a)(1)(C)), that have received in each of the two most 
        recent award years prior to the date of enactment of Higher 
        Education Opportunity Act less than $200,000 in funds through 
        this title, may be improved, streamlined, or eliminated.
            ``(B) Review and collection of future regulations.--The 
        Advisory Committee shall--
                ``(i) monitor all Federal regulations, including 
            notices of proposed rulemaking, for their impact or 
            potential impact on higher education; and
                ``(ii) provide a succinct description of each 
            regulation or proposed regulation that is generally 
            relevant to institutions of higher education from all 
            sectors.
            ``(C) Maintenance of public website.--The Advisory 
        Committee shall develop and maintain an easy to use, 
        searchable, and regularly updated website that--
                ``(i) provides information collected in subparagraph 
            (B);
                ``(ii) provides an area for the experts and members of 
            the public to provide recommendations for ways in which the 
            regulations may be streamlined; and
                ``(iii) publishes the study conducted by the National 
            Research Council of the National Academy of Sciences under 
            section 1106 of the Higher Education Opportunity Act.
        ``(3) Consultation.--
            ``(A) In general.--In carrying out the review, analysis, 
        and development of the website required under paragraph (2), 
        the Advisory Committee shall consult with the Secretary, other 
        Federal agencies, relevant representatives of institutions of 
        higher education, individuals who have expertise and experience 
        with Federal regulations, and the review panels described in 
        subparagraph (B).
            ``(B) Review panels.--The Advisory Committee shall convene 
        not less than two review panels of representatives of the 
        groups involved in higher education, including individuals 
        involved in student financial assistance programs under this 
        title, who have experience and expertise in the regulations 
        issued by the Federal Government that affect all sectors of 
        higher education, in order to review the regulations and to 
        provide recommendations to the Advisory Committee with respect 
        to the review and analysis under paragraph (2). The panels 
        shall be made up of experts in areas such as the operations of 
        the financial assistance programs, the institutional 
        eligibility requirements for the financial assistance programs, 
        regulations not directly related to the operations or the 
        institutional eligibility requirements of the financial 
        assistance programs, and regulations for dissemination of 
        information to students about the financial assistance 
        programs.
        ``(4) Periodic updates to the authorizing committees.--The 
    Advisory Committee shall--
            ``(A) submit, not later than two years after the completion 
        of the negotiated rulemaking process required under section 492 
        resulting from the amendments to this Act made by the Higher 
        Education Opportunity Act, a report to the authorizing 
        committees and the Secretary detailing the review panels' 
        findings and recommendations with respect to the review of 
        regulations; and
            ``(B) provide periodic updates to the authorizing 
        committees regarding--
                ``(i) the impact of all Federal regulations on all 
            sectors of higher education; and
                ``(ii) suggestions provided through the website for 
            streamlining or eliminating duplicative regulations.
        ``(5) Additional support.--The Secretary and the Inspector 
    General of the Department shall provide such assistance and 
    resources to the Advisory Committee as the Secretary and Inspector 
    General determine are necessary to conduct the review and analysis 
    required by this subsection.
    ``(m) Study of Innovative Pathways to Baccalaureate Degree 
Attainment.--
        ``(1) Study required.--The Advisory Committee shall conduct a 
    study of the feasibility of increasing baccalaureate degree 
    attainment rates by reducing the costs and financial barriers to 
    attaining a baccalaureate degree through innovative programs.
        ``(2) Scope of study.--The Advisory Committee shall examine new 
    and existing programs that promote baccalaureate degree attainment 
    through innovative ways, such as dual or concurrent enrollment 
    programs, changes made to the Federal Pell Grant program, 
    simplification of the needs analysis process, compressed or modular 
    scheduling, articulation agreements, and programs that allow two-
    year institutions of higher education to offer baccalaureate 
    degrees.
        ``(3) Required aspects of the study.--In performing the study 
    described in this subsection, the Advisory Committee shall examine 
    the following aspects of such innovative programs:
            ``(A) The impact of such programs on baccalaureate 
        attainment rates.
            ``(B) The degree to which a student's total cost of 
        attaining a baccalaureate degree can be reduced by such 
        programs.
            ``(C) The ways in which low- and moderate-income students 
        can be specifically targeted by such programs.
            ``(D) The ways in which nontraditional students can be 
        specifically targeted by such programs.
            ``(E) The cost-effectiveness for the Federal Government, 
        States, and institutions of higher education to implement such 
        programs.
        ``(4) Consultation.--
            ``(A) In general.--In performing the study described in 
        this subsection, the Advisory Committee shall consult with a 
        broad range of interested parties in higher education, 
        including parents, students, appropriate representatives of 
        secondary schools and institutions of higher education, 
        appropriate State administrators, administrators of dual or 
        concurrent enrollment programs, and appropriate Department 
        officials.
            ``(B) Consultation with the authorizing committees.--The 
        Advisory Committee shall consult on a regular basis with the 
        authorizing committees in carrying out the study required by 
        this subsection.
        ``(5) Reports to authorizing committees.--
            ``(A) Interim report.--The Advisory Committee shall prepare 
        and submit to the authorizing committees and the Secretary an 
        interim report, not later than one year after the date of 
        enactment of the Higher Education Opportunity Act, describing 
        the progress made in conducting the study required by this 
        subsection and any preliminary findings on the topics 
        identified under paragraph (2).
            ``(B) Final report.--The Advisory Committee shall, not 
        later than three years after the date of enactment of the 
        Higher Education Opportunity Act, prepare and submit to the 
        authorizing committees and the Secretary a final report on the 
        study, including recommendations for legislative, regulatory, 
        and administrative changes based on findings related to the 
        topics identified under paragraph (2).''.
    (b) Conforming Amendments.--Subsections (a)(1), (b), and (d)(6) of 
section 491 (20 U.S.C. 1098) are each amended by striking ``Congress'' 
and inserting ``authorizing committees''.
SEC. 494D. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.
    (a) Regional Meetings.--Section 492(a) (20 U.S.C. 1098a(a)) is 
amended--
        (1) in paragraph (1), by inserting ``State student grant 
    agencies,'' after ``institutions of higher education,''; and
        (2) in paragraph (2), by striking ``, as amended by the Higher 
    Education Amendments of 1998''.
    (b) Negotiated Rulemaking.--Section 492(b)(1) (20 U.S.C. 
1098a(b)(1)) is amended--
        (1) in the first sentence, by striking ``as amended by the 
    Higher Education Amendments of 1998''; and
        (2) in the third sentence--
            (A) by striking ``To the extent possible, the Secretary'' 
        and inserting ``The Secretary''; and
            (B) by inserting ``with demonstrated expertise or 
        experience in the relevant subjects under negotiation,'' after 
        ``select individuals''.
SEC. 494E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.
    Section 493A (20 U.S.C. 1098c) is repealed.
SEC. 494F. TECHNICAL AMENDMENT OF INCOME-BASED REPAYMENT.
    Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amended by striking 
``or is already in default'' and inserting ``or had been in default''.

                       PART H--PROGRAM INTEGRITY

    SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.
    Section 496 (20 U.S.C. 1099b) is amended--
        (1) in subsection (a)--
            (A) by striking paragraph (4) and inserting the following:
        ``(4)(A) such agency or association consistently applies and 
    enforces standards that respect the stated mission of the 
    institution of higher education, including religious missions, and 
    that ensure that the courses or programs of instruction, training, 
    or study offered by the institution of higher education, including 
    distance education or correspondence courses or programs, are of 
    sufficient quality to achieve, for the duration of the 
    accreditation period, the stated objective for which the courses or 
    the programs are offered; and
        ``(B) if such agency or association has or seeks to include 
    within its scope of recognition the evaluation of the quality of 
    institutions or programs offering distance education or 
    correspondence education, such agency or association shall, in 
    addition to meeting the other requirements of this subpart, 
    demonstrate to the Secretary that--
            ``(i) the agency or association's standards effectively 
        address the quality of an institution's distance education or 
        correspondence education in the areas identified in paragraph 
        (5), except that--
                ``(I) the agency or association shall not be required 
            to have separate standards, procedures, or policies for the 
            evaluation of distance education or correspondence 
            education institutions or programs in order to meet the 
            requirements of this subparagraph; and
                ``(II) in the case that the agency or association is 
            recognized by the Secretary, the agency or association 
            shall not be required to obtain the approval of the 
            Secretary to expand its scope of accreditation to include 
            distance education or correspondence education, provided 
            that the agency or association notifies the Secretary in 
            writing of the change in scope; and
            ``(ii) the agency or association requires an institution 
        that offers distance education or correspondence education to 
        have processes through which the institution establishes that 
        the student who registers in a distance education or 
        correspondence education course or program is the same student 
        who participates in and completes the program and receives the 
        academic credit;'';
            (B) in paragraph (5), by amending subparagraph (A) to read 
        as follows:
            ``(A) success with respect to student achievement in 
        relation to the institution's mission, which may include 
        different standards for different institutions or programs, as 
        established by the institution, including, as appropriate, 
        consideration of State licensing examinations, consideration of 
        course completion, and job placement rates;'';
            (C) 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, which comply with due 
    process procedures that provide--
            ``(A) for adequate written specification of--
                ``(i) requirements, including clear standards for an 
            institution of higher education or program to be 
            accredited; and
                ``(ii) identified deficiencies at the institution or 
            program examined;
            ``(B) for sufficient opportunity for a written response, by 
        an institution or program, regarding any deficiencies 
        identified by the agency or association to be considered by the 
        agency or association--
                ``(i) within a timeframe determined by the agency or 
            association; and
                ``(ii) prior to final action in the evaluation and 
            withdrawal proceedings;
            ``(C) upon the written request of an institution or 
        program, for an opportunity for the institution or program to 
        appeal any adverse action under this section, including denial, 
        withdrawal, suspension, or termination of accreditation, taken 
        against the institution or program, prior to such action 
        becoming final at a hearing before an appeals panel that--
                ``(i) shall not include current members of the agency's 
            or association's underlying decisionmaking body that made 
            the adverse decision; and
                ``(ii) is subject to a conflict of interest policy;
            ``(D) for the right to representation and participation by 
        counsel for an institution or program during an appeal of the 
        adverse action;
            ``(E) for a process, in accordance with written procedures 
        developed by the agency or association, through which an 
        institution or program, before a final adverse action based 
        solely upon a failure to meet a standard or criterion 
        pertaining to finances, may on one occasion seek review of 
        significant financial information that was unavailable to the 
        institution or program prior to the determination of the 
        adverse action, and that bears materially on the financial 
        deficiencies identified by the agency or association;
            ``(F) in the case that the agency or association determines 
        that the new financial information submitted by the institution 
        or program under subparagraph (E) meets the criteria of 
        significance and materiality described in such subparagraph, 
        for consideration by the agency or association of the new 
        financial information prior to the adverse action described in 
        such subparagraph becoming final; and
            ``(G) that any determination by the agency or association 
        made with respect to the new financial information described in 
        subparagraph (E) shall not be separately appealable by the 
        institution or program.'';
        (2) in subsection (c)--
            (A) in paragraph (1), by inserting ``, including those 
        regarding distance education'' after ``their 
        responsibilities'';
            (B) by redesignating paragraphs (2) through (6) as 
        paragraphs (4) through (8);
            (C) by inserting after paragraph (1) (as amended by 
        subparagraph (A)) the following:
        ``(2) monitors the growth of programs at institutions that are 
    experiencing significant enrollment growth;
        ``(3) requires an institution to submit for approval to the 
    accrediting agency a teach-out plan upon the occurrence of any of 
    the following events:
            ``(A) the Department notifies the accrediting agency of an 
        action against the institution pursuant to section 487(f);
            ``(B) the accrediting agency acts to withdraw, terminate, 
        or suspend the accreditation of the institution; or
            ``(C) the institution notifies the accrediting agency that 
        the institution intends to cease operations;'';
            (D) by striking paragraph (7) (as redesignated by 
        subparagraph (B)) and inserting the following:
        ``(7) makes available to the public and the State licensing or 
    authorizing agency, and submits to the Secretary, a summary of 
    agency or association actions, including--
            ``(A) the award of accreditation or reaccreditation of an 
        institution;
            ``(B) final denial, withdrawal, suspension, or termination 
        of accreditation of an institution, and any findings made in 
        connection with the action taken, together with the official 
        comments of the affected institution; and
            ``(C) any other adverse action taken with respect to an 
        institution or placement on probation of an institution;'';
            (E) in paragraph (8) (as redesignated by subparagraph (B)), 
        by striking the period and inserting ``; and''; and
            (F) by adding at the end the following:
        ``(9) confirms, as a part of the agency's or association's 
    review for accreditation or reaccreditation, that the institution 
    has transfer of credit policies--
            ``(A) that are publicly disclosed; and
            ``(B) that include a statement of the criteria established 
        by the institution regarding the transfer of credit earned at 
        another institution of higher education.'';
        (3) in subsection (g), by adding at the end the following: 
    ``Nothing in this section shall be construed to permit the 
    Secretary to establish any criteria that specifies, defines, or 
    prescribes the standards that accrediting agencies or associations 
    shall use to assess any institution's success with respect to 
    student achievement.'';
        (4) in subsection (o), by adding at the end the following: 
    ``Notwithstanding any other provision of law, the Secretary shall 
    not promulgate any regulation with respect to the standards of an 
    accreditation agency or association described in subsection 
    (a)(5).''; and
        (5) by adding at the end the following new subsection:
    ``(p) Rule of Construction.--Nothing in subsection (a)(5) shall be 
construed to restrict the ability of--
        ``(1) an accrediting agency or association to set, with the 
    involvement of its members, and to apply, accreditation standards 
    for or to institutions or programs that seek review by the agency 
    or association; or
        ``(2) an institution to develop and use institutional standards 
    to show its success with respect to student achievement, which 
    achievement may be considered as part of any accreditation review.
    ``(q) Review of Scope Changes.--The Secretary shall require a 
review, at the next available meeting of the National Advisory 
Committee on Institutional Quality and Integrity, of any change in 
scope undertaken by an agency or association under subsection 
(a)(4)(B)(i)(II) if the enrollment of an institution that offers 
distance education or correspondence education that is accredited by 
such agency or association increases by 50 percent or more within any 
one institutional fiscal year.''.
    SEC. 496. ELIGIBILITY AND CERTIFICATION PROCEDURES.
    Section 498 (20 U.S.C. 1099c) is amended--
        (1) in subsection (d)(1)(B), by inserting ``and'' after the 
    semicolon; and
        (2) by adding at the end the following:
    ``(k) Treatment of Teach-Outs at Additional Locations.--
        ``(1) In general.--A location of a closed institution of higher 
    education shall be eligible as an additional location of an 
    eligible institution of higher education, as defined pursuant to 
    regulations of the Secretary, for the purposes of a teach-out 
    described in section 487(f), if such teach-out has been approved by 
    the institution's accrediting agency.
        ``(2) Special rule.--An institution of higher education that 
    conducts a teach-out through the establishment of an additional 
    location described in paragraph (1) shall be permitted to establish 
    a permanent additional location at a closed institution and shall 
    not be required--
            ``(A) to meet the requirements of sections 102(b)(1)(E) and 
        102(c)(1)(C) for such additional location; or
            ``(B) to assume the liabilities of the closed 
        institution.''.
    SEC. 497. PROGRAM REVIEW AND DATA.
    Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--
        (1) in paragraph (4), by striking ``and'' after the semicolon;
        (2) in paragraph (5) by striking the period and inserting a 
    semicolon; and
        (3) by adding at the end the following:
        ``(6) provide to an institution of higher education an adequate 
    opportunity to review and respond to any program review report and 
    relevant materials related to the report before any final program 
    review report is issued;
        ``(7) review and take into consideration an institution of 
    higher education's response in any final program review report or 
    audit determination, and include in the report or determination--
            ``(A) a written statement addressing the institution of 
        higher education's response;
            ``(B) a written statement of the basis for such report or 
        determination; and
            ``(C) a copy of the institution's response; and
        ``(8) maintain and preserve at all times the confidentiality of 
    any program review report until the requirements of paragraphs (6) 
    and (7) are met, and until a final program review is issued, other 
    than to the extent required to comply with paragraph (5), except 
    that the Secretary shall promptly disclose any and all program 
    review reports to the institution of higher education under 
    review.''.
    SEC. 498. REVIEW OF REGULATIONS.
    Section 498B (20 U.S.C. 1099c-2) is amended by striking subsection 
(d).

             PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM

    SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION.
    Section 499 (20 U.S.C. 1099d) is amended--
        (1) in subsection (b)(3)--
            (A) in subparagraph (B)--
                (i) in clause (i), by striking ``and'' after the 
            semicolon;
                (ii) in clause (ii), by striking the period at the end 
            of the sentence and inserting ``; and''; and
                (iii) by adding at the end the following:
                ``(iii) a commitment from such eligible lender that, if 
            the lender has a winning bid under subparagraph (F), the 
            lender will enter into the agreement required under 
            subparagraph (G).'';
            (B) by striking subparagraph (G) and inserting the 
        following:
            ``(G) Agreement with secretary; compliance.--
                ``(i) Agreement.--Each eligible lender having a winning 
            bid under subparagraph (F) shall enter into an agreement 
            with the Secretary under which the eligible lender--

                    ``(I) agrees to originate eligible Federal PLUS 
                Loans under this paragraph to each borrower who--

                        ``(aa) seeks an eligible Federal PLUS Loan 
                    under this paragraph to enable a dependent student 
                    to attend an institution of higher education within 
                    the State;
                        ``(bb) is eligible for an eligible Federal PLUS 
                    Loan; and
                        ``(cc) elects to borrow from the eligible 
                    lender; and

                    ``(II) agrees to accept a special allowance payment 
                (after the application of section 438(b)(2)(I)(v)) from 
                the Secretary with respect to the eligible Federal PLUS 
                Loans originated under subclause (I) in the amount 
                proposed in the second lowest winning bid described in 
                subparagraph (F) for the applicable State auction.

                ``(ii) Compliance.--If an eligible lender with a 
            winning bid under subparagraph (F) fails to enter into the 
            agreement required under clause (i), or fails to comply 
            with the terms of such agreement, the Secretary may 
            sanction such eligible lender through one or more of the 
            following:

                    ``(I) The assessment of a penalty on such eligible 
                lender for any eligible Federal PLUS Loans that such 
                eligible lender fails to originate under this paragraph 
                in accordance with the agreement required under clause 
                (i), in the amount of the additional costs (including 
                the amounts of any increase in special allowance 
                payments) incurred by the Secretary in obtaining 
                another eligible lender to originate such eligible 
                Federal PLUS Loans. The Secretary shall collect such 
                penalty by--

                        ``(aa) reducing the amount of any payments 
                    otherwise due to such eligible lender from the 
                    Secretary by the amount of the penalty; or
                        ``(bb) requesting any other Federal agency to 
                    reduce the amount of any payments due to such 
                    eligible lender from such agency by the amount of 
                    the penalty, in accordance with section 3716 of 
                    title 31, United States Code.

                    ``(II) A prohibition of bidding by such lender in 
                other auctions under this section.
                    ``(III) The limitation, suspension, or termination 
                of such eligible lender's participation in the loan 
                program under part B.
                    ``(IV) Any other enforcement action the Secretary 
                is authorized to take under part B.''; and

            (C) by striking subparagraph (J) and inserting the 
        following:
            ``(J) Guarantee against losses.--Each eligible Federal PLUS 
        Loan originated under this paragraph shall be insured by a 
        guaranty agency in accordance with part B, except that, 
        notwithstanding section 428(b)(1)(G), such insurance shall be 
        in an amount equal to 99 percent of the unpaid principal and 
        interest due on the loan.''; and
        (2) by adding at the end the following new subsections:
    ``(c) Required Initial Evaluation.--The Secretary and Secretary of 
the Treasury shall jointly conduct an evaluation, in consultation with 
the Office of Management and Budget, the Congressional Budget Office, 
and the Comptroller General, of the pilot program carried out by the 
Secretary under this section. The evaluation shall determine--
        ``(1) the extent of the savings to the Federal Government that 
    are generated through the pilot program, compared to the cost the 
    Federal Government would have incurred in operating the PLUS loan 
    program under section 428B in the absence of the pilot program;
        ``(2) the number of lenders that participated in the pilot 
    program, and the extent to which the pilot program generated 
    competition among lenders to participate in the auctions under the 
    pilot program;
        ``(3) the number and volume of loans made under the pilot 
    program in each State;
        ``(4) the effect of the transition to and operation of the 
    pilot program on the ability of--
            ``(A) lenders participating in the pilot program to 
        originate loans made through the pilot program smoothly and 
        efficiently;
            ``(B) institutions of higher education participating in the 
        pilot program to disburse loans made through the pilot program 
        smoothly and efficiently; and
            ``(C) parents to obtain loans made through the pilot 
        program in a timely and efficient manner;
        ``(5) the differential impact, if any, of the auction among the 
    States, including between rural and non-rural States; and
        ``(6) the feasibility of using the mechanism piloted to operate 
    the other loan programs under part B of this title.
    ``(d) Reports.--
        ``(1) In general.--The Secretary and the Secretary of the 
    Treasury shall submit to the authorizing committees--
            ``(A) not later than September 1, 2010, a preliminary 
        report regarding the findings of the evaluation described in 
        subsection (c);
            ``(B) not later than September 1, 2012, an interim report 
        regarding such findings; and
            ``(C) not later than September 1, 2013, a final report 
        regarding such findings.
        ``(2) Contents.--The Secretary shall include, in each report 
    required under subparagraphs (A), (B), and (C) of paragraph (1), 
    any recommendations, that are based on the findings of the 
    evaluation under subsection (c), for--
            ``(A) improving the operation and administration of the 
        auction; and
            ``(B) improving the operation and administration of other 
        loan programs under part B.''.

                    TITLE V--DEVELOPING INSTITUTIONS

    SEC. 501. AUTHORIZED ACTIVITIES.
    Section 503(b) (20 U.S.C. 1101b(b)) is amended--
        (1) by redesignating paragraphs (6), (7), (8), (9), (10), (11), 
    (12), (13), and (14), as paragraphs (7), (8), (9), (10), (11), 
    (12), (13), (14), and (16), respectively;
        (2) in paragraph (5), by inserting ``, including innovative and 
    customized instruction courses (which may include remedial 
    education and English language instruction) designed to help retain 
    students and move the students rapidly into core courses and 
    through program completion'' before the period at the end;
        (3) by inserting after paragraph (5) the following:
        ``(6) Articulation agreements and student support programs 
    designed to facilitate the transfer from two-year to four-year 
    institutions.'';
        (4) by inserting after paragraph (14) (as redesignated by 
    paragraph (1)) the following:
        ``(15) Providing education, counseling services, or financial 
    information designed to improve the financial literacy and economic 
    literacy of students or the students' families, especially with 
    regard to student indebtedness and student assistance programs 
    under title IV.''; and
        (5) in paragraph (11) (as redesignated by paragraph (1)), by 
    striking ``distance learning academic instruction capabilities'' 
    and inserting ``distance education technologies''.
    SEC. 502. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.
    (a) Amendments.--Title V (20 U.S.C. 1101 et seq.) 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 the following:

   ``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 of higher education 
    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 grants, 
on a competitive basis, to eligible institutions to enable the eligible 
institutions to carry out the authorized activities described in 
section 513.
    ``(b) Eligibility.--For the purposes of this part, an `eligible 
institution' means an institution of higher education that--
        ``(1) is a Hispanic-serving institution (as defined in section 
    502); and
        ``(2) offers a postbaccalaureate certificate or 
    postbaccalaureate 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 low-income 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 postbaccalaureate 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 education technologies, including purchase or rental of 
    telecommunications technology equipment or services.
        ``(7) Collaboration with other institutions of higher education 
    to expand postbaccalaureate certificate and postbaccalaureate 
    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 the Secretary may require. Such application 
shall demonstrate how the grant funds will be used to improve 
postbaccalaureate education opportunities for Hispanic and low-income 
students.
    ``(b) Duration.--Grants under this part shall be awarded for a 
period not to exceed five years.
    ``(c) Limitation.--The Secretary may not award more than one grant 
under this part in any fiscal year to any Hispanic-serving 
institution.''.
    (b) Conforming Amendments.--Title V (20 U.S.C. 1101 et seq.) is 
amended--
        (1) in section 502--
            (A) in subsection (a)(2)(A)(ii), by striking ``section 
        512(b)'' and inserting ``section 522(b)''; and
            (B) in subsection (b)(2), by striking ``section 512(a)'' 
        and inserting ``section 522(a)'';
        (2) in section 521(c)(6) (as redesignated by subsection 
    (a)(2)), by striking ``section 516'' and inserting ``section 526''; 
    and
        (3) in section 526 (as redesignated by subsection (a)(2)), by 
    striking ``section 518'' and inserting ``section 528''.
    SEC. 503. APPLICATIONS.
    Section 521(b)(1)(A) (as redesignated by section 502(a)(2)) (20 
U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection (b)'' and 
inserting ``subsection (c)''.
    SEC. 504. COOPERATIVE ARRANGEMENTS.
    Section 524(a) (as redesignated by section 502(a)(2)) (20 U.S.C. 
1103c(a)) is amended by striking ``section 503'' and inserting 
``sections 503 and 513''.
    SEC. 505. AUTHORIZATION OF APPROPRIATIONS.
    Section 528(a) (as redesignated by section 502(a)(2)) (20 U.S.C. 
1103g(a)) is amended to read as follows:
    ``(a) Authorizations.--
        ``(1) Parts a and c.--There are authorized to be appropriated 
    to carry out parts A and C $175,000,000 for fiscal year 2009 and 
    such sums as may be necessary for each of the five succeeding 
    fiscal years.
        ``(2) Part b.--There are authorized to be appropriated to carry 
    out part B $100,000,000 for fiscal year 2009 and such sums as may 
    be necessary for each of the five succeeding fiscal years.''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

    SEC. 601. FINDINGS; PURPOSES; CONSULTATION; SURVEY.
    Section 601 (20 U.S.C. 1121) is amended--
        (1) in the section heading, by striking ``and purposes'' and 
    inserting ``; purposes; consultation; survey'';
        (2) in subsection (a)(3), by striking ``post-Cold War'';
        (3) in subsection (b)(1)(D), by inserting ``, including through 
    linkages with overseas institutions'' before the semicolon; and
        (4) by adding at the end the following:
    ``(c) Consultation.--
        ``(1) In general.--The Secretary shall, prior to requesting 
    applications for funding under this title during each grant cycle, 
    consult with and receive recommendations regarding national need 
    for expertise in foreign languages and world regions from the head 
    officials of a wide range of Federal agencies.
        ``(2) Considering recommendations; providing information.--The 
    Secretary--
            ``(A) may take into account the recommendations described 
        in paragraph (1); and
            ``(B) shall--
                ``(i) provide information collected under paragraph (1) 
            when requesting applications for funding under this title; 
            and
                ``(ii) make available to applicants a list of areas 
            identified as areas of national need.
    ``(d) Survey.--The Secretary shall assist grantees in developing a 
survey to administer to students who have completed programs under this 
title to determine postgraduate employment, education, or training. All 
grantees, where applicable, shall administer such survey once every two 
years and report survey results to the Secretary.''.
    SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND 
      PROGRAMS.
    Section 602 (20 U.S.C. 1122) is amended--
        (1) in subsection (a)--
            (A) 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.'';
            (B) in paragraph (2)--
                (i) by striking ``and'' at the end of subparagraph (G);
                (ii) by striking the period at the end of subparagraph 
            (H) and inserting a semicolon; and
                (iii) by inserting after subparagraph (H) the following 
            new subparagraphs:
            ``(I) supporting instructors of the less commonly taught 
        languages; and
            ``(J) projects that support students in the science, 
        technology, engineering, and mathematics fields to achieve 
        foreign language proficiency.''; and
            (C) in paragraph (4)--
                (i) in subparagraph (C)--

                    (I) by striking ``Programs of linkage or outreach'' 
                and inserting ``Partnerships or programs of linkage and 
                outreach''; and
                    (II) by inserting ``, including Federal or State 
                scholarship programs for students in related areas'' 
                before the period at the end;

                (ii) 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)'';

                (iii) by redesignating subparagraphs (C) through (E) 
            (as so amended) as subparagraphs (D) through (F), 
            respectively; and
                (iv) by inserting after subparagraph (B) the following:
            ``(C) Programs of linkage or outreach between or among--
                ``(i) postsecondary programs or departments in foreign 
            language, area studies, or other international fields; and
                ``(ii) State educational agencies or local educational 
            agencies.'';
        (2) in subsection (b)--
            (A) in the subsection heading, by striking ``Graduate''; 
        and
            (B) by striking paragraph (2) and inserting the following:
        ``(2) Eligible students.--A student receiving a stipend 
    described in paragraph (1) shall be engaged--
            ``(A) in an instructional program with stated performance 
        goals for functional foreign language use or in a program 
        developing such performance goals, in combination with area 
        studies, international studies, or the international aspects of 
        a professional studies program; and
            ``(B)(i) in the case of an undergraduate student, in the 
        intermediate or advanced study of a less commonly taught 
        language; or
            ``(ii) in the case of a graduate student, in graduate study 
        in connection with a program described in subparagraph (A), 
        including--
                ``(I) predissertation level study;
                ``(II) preparation for dissertation research;
                ``(III) dissertation research abroad; or
                ``(IV) dissertation writing.''; and
        (3) by striking subsection (d) and inserting the following:
    ``(d) Allowances.--
        ``(1) Graduate level recipients.--A stipend awarded to a 
    graduate level recipient may include allowances for dependents and 
    for travel for research and study in the United States and abroad.
        ``(2) Undergraduate level recipients.--A stipend awarded to an 
    undergraduate level recipient may include an allowance for 
    educational programs in the United States or educational programs 
    abroad that--
            ``(A) are closely linked to the overall goals of the 
        recipient's course of study; and
            ``(B) have the purpose of promoting foreign language 
        fluency and knowledge of foreign cultures.
    ``(e) Application.--Each institution of higher education or 
consortium of such institutions desiring a grant under this section 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information and assurances as the 
Secretary may require. Each such application shall include--
        ``(1) an explanation of how the activities funded by the grant 
    will reflect diverse perspectives and a wide range of views and 
    generate debate on world regions and international affairs; and
        ``(2) a description of how the applicant will encourage 
    government service in areas of national need, as identified by the 
    Secretary, as well as in areas of need in the education, business, 
    and nonprofit sectors.''.
    SEC. 603. 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''.
    SEC. 604. 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), by amending clause (ii) to read as 
        follows:
                ``(ii) pre-service teacher training and in-service 
            teacher professional development;'';
            (B) by redesignating subparagraphs (I) through (M) as 
        subparagraphs (J) through (N), respectively; and
            (C) by inserting after subparagraph (H) the following new 
        subparagraph:
            ``(I) the provision of grants for educational programs 
        abroad that--
                ``(i) are closely linked to the program's overall 
            goals; and
                ``(ii) have the purpose of promoting foreign language 
            fluency and knowledge of world regions;'';
        (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)(7)--
            (A) in subparagraph (C), by striking ``and'' after the 
        semicolon;
            (B) in subparagraph (D), by striking the period at the end 
        and inserting a semicolon; and
            (C) by adding at the end the following:
            ``(E) a description of how the applicant will provide 
        information to students regarding federally funded scholarship 
        programs in related areas;
            ``(F) an explanation of how the activities funded by the 
        grant will reflect diverse perspectives and a wide range of 
        views and generate debate on world regions and international 
        affairs, where applicable; and
            ``(G) a description of how the applicant will encourage 
        service in areas of national need, as identified by the 
        Secretary.''; and
        (6) in subsection (c)--
            (A) by striking ``(c) Funding Support.--The Secretary'' and 
        inserting the following:
    ``(c) Funding Support.--
        ``(1) In general.--The Secretary'';
            (B) by striking ``10'' and inserting ``20''; and
            (C) by adding at the end the following:
        ``(2) Grantees.--Of the total amount of grant funds awarded to 
    a grantee under this section, the grantee may use not more than ten 
    percent of such funds for the activity described in subsection 
    (a)(2)(I).''.
    SEC. 605. RESEARCH; STUDIES.
    Section 605(a) (20 U.S.C. 1125(a)) is amended--
        (1) in paragraph (8), by striking ``and'' after the semicolon;
        (2) in paragraph (9), by striking the period and inserting a 
    semicolon; and
        (3) by adding at the end the following:
        ``(10) evaluation of the extent to which programs assisted 
    under this title reflect diverse perspectives and a wide range of 
    views and generate debate on world regions and international 
    affairs, as described in the grantee's application;
        ``(11) the systematic collection, analysis, and dissemination 
    of data that contribute to achieving the purposes of this part; and
        ``(12) support for programs or activities to make data 
    collected, analyzed, or disseminated under this section publicly 
    available and easy to understand.''.
    SEC. 606. 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 ``or partnerships between such 
        institutions and other such institutions, libraries, or 
        nonprofit educational organizations'';
            (B) by striking ``new electronic technologies'' and 
        inserting ``electronic technologies'';
            (C) by inserting ``from foreign sources'' after 
        ``disseminate information'';
            (D) by striking ``(a) Authority.-- The Secretary'' and 
        inserting the following:
    ``(a) Authority.--
        ``(1) In general.--The Secretary''; and
            (E) by adding at the end the following:
        ``(2) Grant recipients.--The Secretary may award grants under 
    this section to carry out the activities authorized under this 
    section to the following:
            ``(A) An institution of higher education.
            ``(B) A public or nonprofit private library.
            ``(C) A partnership of an institution of higher education 
        and one or more of the following:
                ``(i) Another institution of higher education.
                ``(ii) A library.
                ``(iii) A nonprofit educational organization.'';
        (2) in subsection (b)--
            (A) in paragraph (1), by striking ``to facilitate access 
        to'' and inserting ``to acquire, facilitate access to,'';
            (B) in paragraph (3), by inserting ``or standards for'' 
        after ``means of'';
            (C) in paragraph (6), by striking ``and'' after the 
        semicolon;
            (D) in paragraph (7), by striking the period and inserting 
        a semicolon; and
            (E) by adding at the end the following:
        ``(8) to establish linkages to facilitate carrying out the 
    activities described in this subsection between--
            ``(A) the institutions of higher education, libraries, and 
        partnerships receiving grants under this section; and
            ``(B) institutions of higher education, nonprofit 
        educational organizations, and libraries overseas; and
        ``(9) to carry out other activities that the Secretary 
    determines are consistent with the purpose of the grants awarded 
    under this section.''; and
        (3) in subsection (c), by striking ``institution or 
    consortium'' and inserting ``institution of higher education, 
    library, or partnership''.
    SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS.
    Section 607 (20 U.S.C. 1127) is amended--
        (1) in subsection (a), by striking ``evaluates the applications 
    for comprehensive and undergraduate language and area centers and 
    programs.'' and inserting ``evaluates--
        ``(1) the applications for comprehensive foreign language and 
    area or international studies centers and programs; and
        ``(2) the applications for undergraduate foreign language and 
    area or international studies centers and programs.''; and
        (2) in subsection (b), by adding at the end the following: ``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 needs, and generate information for and disseminate 
    information to the public. The Secretary shall also consider an 
    applicant's record of placing students into postgraduate 
    employment, education, or training in areas of national need and an 
    applicant's stated efforts to increase the number of such students 
    that go into such placements.''.
    SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.
    Section 609 (20 U.S.C. 1128a) is amended by adding at the end the 
following:
    ``(e) Application.--Each center desiring to receive a grant or 
contract under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information and assurances as the Secretary may require.''.
    SEC. 609. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL AND 
      FOREIGN LANGUAGE STUDIES.
    Section 610 (20 U.S.C. 1128b) is amended--
        (1) by striking ``$80,000,000'' and inserting ``such sums as 
    may be necessary'';
        (2) by striking ``1999'' and inserting ``2009''; and
        (3) by striking ``4'' and inserting ``five''.
    SEC. 610. CONFORMING AMENDMENTS.
    (a) Sections 603(a), 604(a)(5), and 612 (20 U.S.C. 1123(a), 
1124(a)(5), 1130-1) are each amended by striking ``combinations'' each 
place it appears and inserting ``consortia''.
    (b) Section 612 (20 U.S.C. 1130-1) is further amended by striking 
``combination'' each place it appears and inserting ``consortium''.
    SEC. 611. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
    (a) Centers for International Business Education.--Section 612 (20 
U.S.C. 1130-1) is amended--
        (1) in subsection (a)--
            (A) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (B) by inserting before paragraph (2) (as redesignated by 
        subparagraph (A)) the following:
        ``(1) Purpose.--The purpose of this section is to coordinate 
    the programs of the Federal Government in the areas of research, 
    education, and training in international business and trade 
    competitiveness.'';
        (2) in subsection (c)(2)----
            (A) in subparagraph (E), 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'';
            (B) by striking ``and'' at the end of subparagraph (E);
            (C) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (D) by inserting the following new subparagraph after 
        subparagraph (E):
            ``(F) programs encouraging the advancement and 
        understanding of technology-related disciplines, including 
        manufacturing software systems and technology management; 
        and''; and
        (3) in subsection (f)(3), by inserting ``, and that diverse 
    perspectives will be made available to students in programs under 
    this section'' before the semicolon.
    (b) Education and Training Programs.--Section 613(c) (20 U.S.C. 
1130a(c)) is amended by adding at the end the following: ``Each such 
application shall include an assurance that, where applicable, the 
activities funded by the grant will reflect diverse perspectives and a 
wide range of views on world regions and international affairs.''.
    (c) Authorization of Appropriations.--Section 614 (20 U.S.C. 1130b) 
is amended--
        (1) in subsection (a)--
            (A) by striking ``$11,000,000'' and inserting ``such sums 
        as may be necessary'';
            (B) by striking ``1999'' and inserting ``2009''; and
            (C) by striking ``4'' and inserting ``five''; and
        (2) in subsection (b)--
            (A) by striking ``$7,000,000'' and inserting ``such sums as 
        may be necessary'';
            (B) by striking ``1999'' and inserting ``2009''; and
            (C) by striking ``4'' and inserting ``five''.
    SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT 
      PROGRAM.
    Section 621 (20 U.S.C. 1131) is amended--
        (1) in subsection (a), by striking the second sentence 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.'';
        (2) in subsection (b)(1)--
            (A) by striking subparagraph (B);
            (B) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (C) by inserting after subparagraph (A) the following:
            ``(B) A tribally controlled college or university or Alaska 
        Native or Native Hawaiian-serving institution eligible for 
        assistance under part A or B of title III, or an institution 
        eligible for assistance under title V.
            ``(C) An institution of higher education that serves 
        substantial numbers of underrepresented minority students.''; 
        and
        (3) in subsection (c)--
            (A) by striking ``(c) Application.--Each'' and inserting 
        the following:
    ``(c) Application.--
        ``(1) In general.--Each''; and
            (B) by adding at the end the following:
        ``(2) Content of application.--Each application submitted under 
    paragraph (1) shall include a description of how the activities 
    funded by the grant will reflect diverse perspectives and a wide 
    range of views and generate debate on world regions and 
    international affairs, where applicable.''.
    SEC. 613. INSTITUTIONAL DEVELOPMENT.
    Section 622 (20 U.S.C. 1131-1) is amended--
        (1) in subsection (a)--
            (A) by striking ``Tribally Controlled Colleges or 
        Universities'' and inserting ``tribally controlled colleges or 
        universities''; and
            (B) by striking ``international affairs programs.'' and 
        inserting ``international affairs, international business, and 
        foreign language study programs, including the teaching of 
        foreign languages, at such colleges, universities, and 
        institutions, respectively, which may include collaboration 
        with institutions of higher education that receive funding 
        under this title''; and
        (2) in subsection (c)--
            (A) by striking paragraphs (1) and (3);
            (B) by redesignating paragraphs (2) and (4) as paragraphs 
        (1) and (2), respectively; and
            (C) in paragraph (1) (as redesignated by subparagraph (B)), 
        by inserting ``and'' after the semicolon.
    SEC. 614. STUDY ABROAD PROGRAM.
    Section 623(a) (20 U.S.C. 1131a(a)) is amended--
        (1) by striking ``as defined in section 322 of this Act''; and
        (2) by striking ``tribally controlled Indian community colleges 
    as defined in the Tribally Controlled Community College Assistance 
    Act of 1978'' and inserting ``tribally controlled colleges or 
    universities, Alaska Native-serving, Native Hawaiian-serving, and 
    Hispanic-serving institutions''.
    SEC. 615. 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''.
    SEC. 616. INTERNSHIPS.
    Section 625 (20 U.S.C. 1131c) is amended--
        (1) in subsection (a)--
            (A) by striking ``as defined in section 322 of this Act'';
            (B) by striking ``tribally controlled Indian community 
        colleges as defined in the Tribally Controlled Community 
        College Assistance Act of 1978'' and inserting ``tribally 
        controlled colleges or universities, Alaska Native-serving, 
        Native Hawaiian-serving, and Hispanic-serving institutions'';
            (C) by striking ``an international'' and inserting 
        ``international,''; and
            (D) by striking ``the United States Information Agency'' 
        and inserting ``the Department of State'';
        (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) in subsection (c)(1)--
            (A) in subparagraph (E), by inserting ``and'' after the 
        semicolon;
            (B) in subparagraph (F), by striking ``; and'' and 
        inserting a period; and
            (C) by striking subparagraph (G).
    SEC. 617. FINANCIAL ASSISTANCE.
    Part C of title VI (20 U.S.C. 1131 et seq.) is further amended--
        (1) by redesignating sections 626, 627, and 628 as sections 
    627, 628, and 629, respectively; and
        (2) by inserting after section 625 the following:
    ``SEC. 626. FINANCIAL ASSISTANCE.
    ``(a) Authority.--The Institute may provide financial assistance, 
in the form of summer stipends described in subsection (b) and Ralph 
Bunche scholarship assistance described in subsection (c), to low-
income students to facilitate the participation of the students in the 
Institute's programs under this part.
    ``(b) Summer Stipends.--
        ``(1) Requirements.--A student receiving a summer stipend under 
    this section shall use such stipend to defray the student's cost of 
    participation in a summer institute program funded under this part, 
    including the costs of travel, living, and educational expenses 
    necessary for the student's participation in such program.
        ``(2) Amount.--A summer stipend awarded to a student under this 
    section shall not exceed $3,000 per summer.
    ``(c) Ralph Bunche Scholarship.--
        ``(1) Requirements.--A student receiving a Ralph Bunche 
    scholarship under this section--
            ``(A) shall be a full-time student at an institution of 
        higher education who is accepted into a program funded under 
        this part; and
            ``(B) shall use such scholarship to pay costs related to 
        the cost of attendance, as defined in section 472, at the 
        institution of higher education in which the student is 
        enrolled.
        ``(2) Amount and duration.--A Ralph Bunche scholarship awarded 
    to a student under this section shall not exceed $5,000 per 
    academic year.''.
    SEC. 618. REPORT.
    Section 627 (as redesignated by section 617(1)) (20 U.S.C. 1131d) 
is amended by striking ``annually prepare a report'' and inserting 
``prepare a report once every two years''.
    SEC. 619. GIFTS AND DONATIONS.
    Section 628 (as redesignated by section 617(1)) (20 U.S.C. 1131e) 
is amended by striking ``annual report described in section 626'' and 
inserting ``report described in section 627''.
    SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE FOR 
      INTERNATIONAL PUBLIC POLICY.
    Section 629 (as redesignated by section 617(1)) (20 U.S.C. 1131f) 
is amended--
        (1) by striking ``$10,000,000'' and inserting ``such sums as 
    may be necessary'';
        (2) by striking ``1999'' and inserting ``2009''; and
        (3) by striking ``4 succeeding'' and inserting ``five 
    succeeding''.
    SEC. 621. DEFINITIONS.
    Section 631 (20 U.S.C. 1132) is amended--
        (1) by striking paragraph (7);
        (2) by redesignating paragraphs (2), (3), (4), (5), (6), (8), 
    and (9), as paragraphs (7), (4), (8), (2), (10), (6), and (3), 
    respectively;
        (3) in paragraph (2), as redesignated by paragraph (2), by 
    striking ``comprehensive language and area center'' and inserting 
    ``comprehensive foreign language and area or international studies 
    center'';
        (4) in paragraph (3), as redesignated by paragraph (2), by 
    striking the period at the end and inserting a semicolon;
        (5) by inserting after paragraph (4), as redesignated by 
    paragraph (2), the following:
        ``(5) the term `historically Black college and university' has 
    the meaning given the term `part B institution' in section 322;'';
        (6) in paragraph (6), as redesignated by paragraph (2), by 
    striking ``and'' after the semicolon;
        (7) by inserting after paragraph (8), as redesignated by 
    paragraph (2), the following:
        ``(9) the term `tribally controlled college or university' has 
    the meaning given the term in section 2 of the Tribally Controlled 
    Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801); 
    and''; and
        (8) in paragraph (10), as redesignated by paragraph (2)--
            (A) by striking ``undergraduate language and area center'' 
        and inserting ``undergraduate foreign language and area or 
        international studies center''; and
            (B) by striking the semicolon and inserting a period.
    SEC. 622. NEW PROVISIONS.
    Part D of title VI (20 U.S.C. 1132) is amended by adding at the end 
the following:
    ``SEC. 632. SPECIAL RULE.
    ``The Secretary may waive or reduce the non-Federal share required 
under this title 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.''.
    ``SEC. 633. RULE OF CONSTRUCTION.
    ``Nothing in this title shall be construed to authorize the 
Secretary to mandate, direct, or control an institution of higher 
education's specific instructional content, curriculum, or program of 
instruction.
    ``SEC. 634. ASSESSMENT.
    ``The Secretary is authorized to assess and ensure compliance with 
all the conditions and terms of grants provided under this title.
    ``SEC. 635. EVALUATION, OUTREACH, AND INFORMATION.
    ``The Secretary may use not more than one percent of the funds made 
available under this title to carry out program evaluation, national 
outreach, and information dissemination activities relating to the 
programs authorized under this title.
    ``SEC. 636. REPORT.
    ``The Secretary shall, in consultation and collaboration with the 
Secretary of State, the Secretary of Defense, and the heads of other 
relevant Federal agencies, submit a report once every two years that 
identifies areas of national need in foreign language, area, and 
international studies as such studies relate to government, education, 
business, and nonprofit needs, and a plan to address those needs. The 
report shall be provided to the authorizing committees and made 
available to the public.
    ``SEC. 637. SCIENCE AND TECHNOLOGY ADVANCED FOREIGN LANGUAGE 
      EDUCATION GRANT PROGRAM.
    ``(a) Purpose.--It is the purpose of this section to support 
programs in institutions of higher education that--
        ``(1) encourage students to develop--
            ``(A) an understanding of science and technology; and
            ``(B) foreign language proficiency;
        ``(2) foster future international scientific collaboration;
        ``(3) provide for professional development opportunities for 
    elementary school and secondary school teachers of critical foreign 
    languages to increase the number of highly qualified teachers in 
    critical foreign languages; and
        ``(4) increase the number of United States students who achieve 
    the highest level of proficiency in foreign languages critical to 
    the security and competitiveness of the Nation.
    ``(b) Development.--The Secretary shall develop a program for the 
awarding of grants to institutions of higher education that develop 
innovative programs for the teaching of foreign languages, which may 
include the preparation of teachers to teach foreign languages.
    ``(c) Regulations and Requirements.--The Secretary shall promulgate 
regulations for the awarding of grants under subsection (b). Such 
regulations may require institutions of higher education to use grant 
funds for, among other things--
        ``(1) the development of an on-campus cultural awareness 
    program by which students attend classes taught in a foreign 
    language and study the science and technology developments and 
    practices in a non-English speaking country;
        ``(2) immersion programs where students take science or 
    technology related course work in a non-English speaking country;
        ``(3) other programs, such as summer workshops, that emphasize 
    the intense study of a foreign language and science technology;
        ``(4) if applicable, recruiting highly qualified teachers in 
    critical foreign languages, and providing professional development 
    activities for such teachers at the elementary school and secondary 
    school levels; and
        ``(5) providing innovative opportunities for students that will 
    allow for critical language learning, such as immersion 
    environments, intensive study opportunities, internships, and 
    distance learning.
    ``(d) Grant Distribution.--In distributing grants to institutions 
of higher education under this section, the Secretary shall give 
priority to--
        ``(1) institutions that have programs focusing on curricula 
    that combine the study of foreign languages and the study of 
    science and technology and produce graduates who have both skills; 
    and
        ``(2) institutions teaching critical foreign languages.
    ``(e) Report on Best Practices.--Not later than one year after the 
date of enactment of this section, the Secretary shall--
        ``(1) conduct a study to identify the best practices to 
    strengthen the role of institutions of higher education that 
    receive funding under title III or title V in increasing the 
    critical foreign language education efforts in the United States; 
    and
        ``(2) submit a report on the results of such study to the 
    authorizing committees.
    ``(f) Appropriations Authorized.--There are authorized to be 
appropriated to carry out this section, such sums as may be necessary 
for fiscal year 2009 and for each subsequent fiscal year.
    ``SEC. 638. REPORTING BY INSTITUTIONS.
    ``(a) Applicability.--The data requirement in subsection (b) shall 
apply to an institution of higher education that receives funds for a 
center or program under this title if--
        ``(1) the amount of the contribution (including cash and the 
    fair market value of any property) received from any foreign 
    government or from a foreign private sector corporation or 
    foundation during any fiscal year exceeds $250,000 in the 
    aggregate; and
        ``(2) the aggregate contribution, or a significant part of the 
    aggregate contribution, is to be used by a center or program 
    receiving funds under this title.
    ``(b) Data Required.--The Secretary shall require an institution of 
higher education referred to in subsection (a) to report information 
listed in subsection (a) to the Secretary consistent with the 
requirements of section 117.''.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

    SEC. 701. PURPOSE.
    Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended by 
inserting ``, including those areas critical to United States national 
and homeland security needs, such as science, technology, engineering, 
and mathematics'' before the semicolon.
    SEC. 702. JACOB K. JAVITS FELLOWSHIP PROGRAM.
    (a) 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 for not more than 12 months (in any other case), but 
without payment of the stipend.''.
    (b) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C. 
1134a(a)(1)) is amended to read as follows:
        ``(1) Appointment.--
            ``(A) In general.--The Secretary shall appoint a Jacob K. 
        Javits Fellows Program Fellowship Board (referred to in this 
        subpart as the `Board') consisting of 9 individuals 
        representative of both public and private institutions of 
        higher education who are especially qualified to serve on the 
        Board.
            ``(B) Qualifications.--In making appointments under 
        subparagraph (A), the Secretary shall--
                ``(i) give due consideration to the appointment of 
            individuals who are highly respected in the academic 
            community;
                ``(ii) appoint members who represent the various 
            geographic regions of the United States;
                ``(iii) ensure that individuals appointed to the Board 
            are broadly representative of a range of disciplines in 
            graduate education in arts, humanities, and social 
            sciences; and
                ``(iv) ensure that such individuals include 
            representatives from institutions that are eligible for one 
            or more of the grants under title III or V.''.
    (c) Stipends.--
        (1) Section 703 (20 U.S.C. 1134b) is amended--
            (A) in subsection (a)--
                (i) by striking ``1999-2000'' and inserting ``2009-
            2010''; and
                (ii) by striking ``Foundation graduate fellowships'' 
            and inserting ``Foundation Graduate Research Fellowship 
            Program for such academic year''; and
            (B) in subsection (b), by striking paragraph (1)(A) and 
        inserting the following:
        ``(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 academic year 2009-2010 and succeeding academic 
    years, the same amount as the institutional payment made for 
    academic year 2008-2009, adjusted for academic year 2009-2010 and 
    annually thereafter in accordance with inflation as determined by 
    the Department of Labor's Consumer Price Index for the previous 
    calendar year.''.
    (d) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d) 
is amended by striking ``fiscal year 1999'' and all that follows 
through the period at the end and inserting ``fiscal year 2009 and each 
of the five succeeding fiscal years to carry out this subpart.''.
    SEC. 703. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.
    (a) Institutional Eligibility.--Section 712 (20 U.S.C. 1135a) is 
amended by striking subsection (b) and inserting the following:
    ``(b) Designation of Areas of National Need.--After consultation 
with appropriate Federal and nonprofit agencies and organizations, 
including the National Science Foundation, the Department of Defense, 
the Department of Homeland Security, the National Academy of Sciences, 
and the Bureau of Labor Statistics, the Secretary shall designate areas 
of national need. In making such designations, the Secretary shall take 
into consideration--
        ``(1) the extent to which the interest in the area is 
    compelling;
        ``(2) the extent to which other Federal programs support 
    postbaccalaureate study in the area concerned;
        ``(3) an assessment of how the program may achieve the most 
    significant impact with available resources; and
        ``(4) an assessment of current (as of the time of the 
    designation) and future professional workforce needs of the United 
    States.''.
    (b) Awards to Graduate Students.--Section 714(b) (20 U.S.C. 
1135c(b)) is amended--
        (1) by striking ``1999-2000'' and inserting ``2009-2010''; and
        (2) by striking ``Foundation graduate fellowships'' and 
    inserting ``Foundation Graduate Research Fellowship Program for 
    such academic year''.
    (c) Additional Assistance.--Section 715(a)(1) (20 U.S.C. 
1135d(a)(1)) is amended--
        (1) by striking ``1999-2000'' and inserting ``2009-2010''; and
        (2) by striking ``1998-1999'' and inserting ``2008-2009''.
    (d) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e) 
is amended by striking ``fiscal year 1999'' and all that follows 
through the period at the end and inserting ``fiscal year 2009 and each 
of the five succeeding fiscal years to carry out this subpart.''.
    (e) Technical Amendments.--Subpart 2 of part A of title VII (as 
amended by this section) (20 U.S.C. 113 et seq.) is further amended--
        (1) in section 711(a)(1) (20 U.S.C. 1135(a)(1)), by inserting 
    ``, including a master's or doctoral degree,'' after ``leading to a 
    graduate degree'';
        (2) in section 712(a) (20 U.S.C. 1135a(a)), by inserting ``, 
    including a master's or doctoral degree,'' after ``leading to a 
    graduate degree'';
        (3) in section 713(b)(5)(C) (20 U.S.C. 1135b(b)(5)(C)), by 
    inserting ``at the institution'' before the semicolon; and
        (4) in section 714(c) (20 U.S.C. 1135c(c))--
            (A) by striking ``716(a)'' and inserting ``715(a)''; and
            (B) by striking ``714(b)(2)'' and inserting ``713(b)(2)''.
    SEC. 704. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.
    (a) Program Authority.--
        (1) Section 721(a) (20 U.S.C. 1136(a)) is amended--
            (A) by inserting ``secondary school and'' after 
        ``disadvantaged''; and
            (B) by inserting ``and admission to law practice'' before 
        the period at the end.
    (b) Eligibility.--Section 721(b) (20 U.S.C. 1136(b)) is amended in 
the matter preceding paragraph (1), by inserting ``secondary school 
student or'' before ``college student''.
    (c)  Contract and Grant Purposes.--Section 721(c) (20 U.S.C. 
1136(c)) is amended--
        (1) in paragraph (1), by inserting ``secondary school and'' 
    before ``college students'';
        (2) by striking paragraph (2) and inserting the following:
        ``(2) to prepare such students for successful completion of a 
    baccalaureate degree and for study at accredited law schools, and 
    to assist them with the development of analytical skills, writing 
    skills, and study methods to enhance the students' success in, and 
    promote the students' admission to and completion of, law 
    school;'';
        (3) in paragraph (4), by striking ``and'' after the semicolon; 
    and
        (4) by striking paragraph (5) and inserting the following:
        ``(5) to motivate and prepare such students--
            ``(A) with respect to law school studies and practice in 
        low-income communities; and
            ``(B) to provide legal services to low-income individuals 
        and families; and
        ``(6) to award Thurgood Marshall Fellowships to eligible law 
    school students--
            ``(A) who participated in summer institutes under 
        subsection (d)(6) and who are enrolled in an accredited law 
        school; or
            ``(B) who have successfully completed a comparable summer 
        institute program that is certified by the Council on Legal 
        Education Opportunity.''.
    (d) Services Provided.--Section 721(d) (20 U.S.C. 1136(d)) is 
amended--
        (1) in the matter preceding paragraph (1), by inserting ``pre-
    college programs, undergraduate'' before ``pre-law'';
        (2) in paragraph (1)--
            (A) in subparagraph (B), by inserting ``law school'' before 
        ``graduation''; and
            (B) by striking subparagraph (D) and inserting the 
        following:
            ``(D) pre-college and undergraduate preparatory courses in 
        analytical and writing skills, study methods, and course 
        selection;'';
        (3) by redesignating paragraphs (2) through (6) as paragraphs 
    (3) through (7), respectively;
        (4) by inserting after paragraph (1) the following:
        ``(2) summer academic programs for secondary school students 
    who have expressed interest in a career in the law;''; and
        (5) in paragraph (7) (as redesignated by paragraph (3)), by 
    inserting ``and Associates'' after ``Thurgood Marshall Fellows''.
    (e) Duration.--Section 721(e)(1) (20 U.S.C. 1136(e)(1)) is amended 
by inserting ``, including before and during undergraduate study'' 
before the semicolon.
    (f) Subcontracts and Subgrants.--Section 721(f) (20 U.S.C. 1136(f)) 
is amended--
        (1) by inserting ``national and State bar associations,'' after 
    ``agencies and organizations,''; and
        (2) by striking ``and organizations.'' and inserting 
    ``organizations, and associations.''.
    (g) Stipends.--Section 721(g) (20 U.S.C. 1136(g)) is amended to 
read as follows:
    ``(g) Fellowships and Stipends.--The Secretary shall annually 
establish the maximum fellowship to be awarded, and the maximum stipend 
to be paid (including allowances for participant travel and for the 
travel of the dependents of the participant), to Thurgood Marshall 
Fellows or Associates for the period of participation in summer 
institutes, midyear seminars, and bar preparation seminars. A Thurgood 
Marshall Fellow or Associate may be eligible for such a fellowship or 
stipend only if the Fellow or Associate maintains satisfactory academic 
progress toward the Juris Doctor or Bachelor of Laws degree, as 
determined by the respective institutions (except with respect to a law 
school graduate enrolled in a bar preparation course).''.
    (h) Authorization of Appropriations.--Section 721(h) (20 U.S.C. 
1136(h)) is amended by striking ``fiscal year 1999'' and all that 
follows through the period at the end and inserting ``fiscal year 2009 
and each of the five succeeding fiscal years.''.
    (i) Repeal of Continuation Awards.--Subsection (e) of section 731 
(20 U.S.C. 1137(e)) is repealed.
    SEC. 705. SENSE OF CONGRESS.
    It is the sense of Congress that--
        (1) addressing the under-representation of women and minorities 
    in the higher education professoriate will require consistent 
    inter-institutional cooperation, data gathering, analysis, and 
    self-evaluation; and
        (2) institutions eligible for funds under part A of title VII 
    of the Higher Education Act of 1965 (20 U.S.C. 1134 et seq.) should 
    be encouraged to consider the feasibility and potential design of 
    an inter-institution monitoring organization addressing under-
    representation by race, ethnicity, and gender in postsecondary 
    faculty and administrators.
    SEC. 706. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK COLLEGES 
      AND UNIVERSITIES AND PREDOMINANTLY BLACK INSTITUTIONS.
    (a) Technical Amendments.--Part A of title VII (as amended by this 
title) (20 U.S.C. 1134 et seq.) is further amended--
        (1) by redesignating subpart 4 as subpart 5;
        (2) in the heading of section 731, by striking ``subparts 1, 2, 
    and 3'' and inserting ``subparts 1 through 4''; and
        (3) in section 731--
            (A) in subsections (a) and (b), by striking ``subparts 1, 
        2, and 3'' each place the term appears and inserting ``subparts 
        1 through 4''; and
            (B) in subsection (d), by striking ``subpart 1, 2, or 3'' 
        and inserting ``subpart 1, 2, 3, or 4''.
    (b) Master's Degree Programs.--Part A of title VII (as amended by 
this title) (20 U.S.C. 1134 et seq.) is further amended by inserting 
after subpart 3 the following:

``Subpart 4--Masters Degree Programs at Historically Black Colleges and 
           Universities and Predominantly Black Institutions

    ``SEC. 723. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK COLLEGES 
      AND UNIVERSITIES.
    ``(a) Grant Program Authorized.--
        ``(1) In general.--Subject to the availability of funds 
    appropriated to carry out this section, the Secretary shall award 
    program grants to each of the institutions listed in subsection 
    (b)(1) that is determined by the Secretary to be making a 
    substantial contribution to graduate education opportunities at the 
    masters level in mathematics, engineering, the physical or natural 
    sciences, computer science, information technology, nursing, allied 
    health, or other scientific disciplines for Black Americans.
        ``(2) Assurance of non-federal matching funds.--No grant in 
    excess of $1,000,000 may be made under this section unless the 
    institution provides assurances that 50 percent of the cost of the 
    purposes for which the grant is made will be paid from non-Federal 
    sources, except that no institution shall be required to match any 
    portion of the first $1,000,000 of the institution's award from the 
    Secretary. After funds are made available to each eligible 
    institution under the funding rules described in subsection (f), 
    the Secretary shall distribute, on a pro rata basis, any amounts 
    which were not so made available (by reason of the failure of an 
    institution to comply with the matching requirements of this 
    paragraph) among the institutions that have complied with such 
    matching requirement.
        ``(3) Minimum award.--Subject to subsections (f) and (g), the 
    amount awarded to each eligible institution listed in subsection 
    (b)(1) for a fiscal year shall be not less than $500,000.
        ``(4) Duration of grants.--A grant awarded under this section 
    shall be for a period of not more than six years, but may be 
    periodically renewed for a period to be determined by the 
    Secretary.
    ``(b) Institutional Eligibility.--
        ``(1) In general.--Institutions eligible for grants under 
    subsection (a) are the following:
            ``(A) Albany State University.
            ``(B) Alcorn State University.
            ``(C) Claflin University.
            ``(D) Coppin State University.
            ``(E) Elizabeth City State University.
            ``(F) Fayetteville State University.
            ``(G) Fisk University.
            ``(H) Fort Valley State University.
            ``(I) Grambling State University.
            ``(J) Kentucky State University.
            ``(K) Mississippi Valley State University.
            ``(L) Savannah State University.
            ``(M) South Carolina State University.
            ``(N) University of Arkansas, Pine Bluff.
            ``(O) Virginia State University.
            ``(P) West Virginia Sate University.
            ``(Q) Wilberforce University.
            ``(R) Winston-Salem State University.
        ``(2) Qualified masters degree program.--
            ``(A) In general.--For the purposes of this section, the 
        term `qualified masters degree program' means a masters degree 
        program that provides a program of instruction in mathematics, 
        engineering, the physical or natural sciences, computer 
        science, information technology, nursing, allied health, or 
        other scientific disciplines in which African Americans are 
        underrepresented and has students enrolled in such program of 
        instruction at the time of application for a grant under this 
        section.
            ``(B) Enrollment exception.--Notwithstanding the enrollment 
        requirement contained in subparagraph (A), an institution may 
        use an amount equal to not more than 10 percent of the 
        institution's grant under this section for the development of a 
        new qualified masters degree program.
        ``(3) Institutional choice.--The president or chancellor of the 
    institution may decide which graduate school or qualified masters 
    degree program will receive funds under the grant in any one fiscal 
    year, if the allocation of funds among the schools or programs is 
    delineated in the application for funds submitted to the Secretary 
    under this section.
        ``(4) One grant per institution.--The Secretary shall not award 
    more than one grant under this section in any fiscal year to any 
    institution of higher education.
    ``(c) Application.--An eligible institution listed in subsection 
(b)(1) desiring a grant under this section shall submit an application 
at such time, in such manner, and containing such information as the 
Secretary may require. The application shall--
        ``(1) demonstrate how the grant funds under this section will 
    be used to improve graduate educational opportunities for Black and 
    low-income students, and lead to greater financial independence; 
    and
        ``(2) provide, in the case of applications for grants in excess 
    of $1,000,000, the assurances required under subsection (a)(2) and 
    specify the manner in which the eligible institution is going to 
    pay the non-Federal share of the cost of the application.
    ``(d) Uses of Funds.--A grant under this section may be used for--
        ``(1) purchase, rental, or lease of scientific or laboratory 
    equipment for educational purposes, including instructional and 
    research purposes;
        ``(2) construction, maintenance, renovation, and improvement in 
    classroom, library, laboratory, 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) scholarships, fellowships, and other financial assistance 
    for needy graduate students to permit the enrollment of the 
    students in, and completion of, a masters degree in mathematics, 
    engineering, the physical or natural sciences, computer science, 
    information technology, nursing, allied health, or other scientific 
    disciplines in which African Americans are underrepresented;
        ``(5) establishing or improving a development office to 
    strengthen and increase contributions from alumni and the private 
    sector;
        ``(6) assisting in the establishment or maintenance of an 
    institutional endowment to facilitate financial independence 
    pursuant to section 331;
        ``(7) funds and administrative management, and the acquisition 
    of equipment, including software, for use in strengthening funds 
    management and management information systems;
        ``(8) acquisition of real property that is adjacent to the 
    campus in connection with the construction, renovation, or 
    improvement of, or an addition to, campus facilities;
        ``(9) education or financial information designed to improve 
    the financial literacy and economic literacy of students or the 
    students' families, especially with regard to student indebtedness 
    and student assistance programs under title IV;
        ``(10) tutoring, counseling, and student service programs 
    designed to improve academic success;
        ``(11) faculty professional development, faculty exchanges, and 
    faculty participation in professional conferences and meetings; and
        ``(12) other activities proposed in the application submitted 
    under subsection (c) that--
            ``(A) contribute to carrying out the purposes of this 
        section; and
            ``(B) are approved by the Secretary as part of the review 
        and acceptance of such application.
    ``(e) Interaction With Other Grant Programs.--No institution that 
is eligible for and receives an award under section 326, 512, or 724 
for a fiscal year shall be eligible to apply for a grant, or receive 
grant funds, under this section for the same fiscal year.
    ``(f) Funding Rule.--Subject to subsection (g), of the amount 
appropriated to carry out this section for any fiscal year--
        ``(1) the first $9,000,000 (or any lesser amount appropriated) 
    shall be available only for the purposes of making minimum grants 
    under subsection (a)(3) to eligible institutions listed in 
    subparagraphs (A) through (R) of subsection (b)(1), except that if 
    the amount appropriated is not sufficient to pay the minimum grant 
    awards to all such eligible institutions, the amount of the minimum 
    award to each such eligible institution shall be ratably reduced;
        ``(2) after the application of paragraph (1), an amount shall 
    be available for the purpose of making minimum grants under 
    subsection (a)(3) to eligible institutions listed in subsection 
    (b)(1) that do not receive a grant under paragraph (1), if any, 
    except that if the amount appropriated is not sufficient to pay the 
    minimum grant awards to all such eligible institutions, the amount 
    of the minimum award to each such eligible institution shall be 
    ratably reduced; and
        ``(3) any amount in excess of $9,000,000 shall be made 
    available to each of the eligible institutions identified in 
    subparagraphs (A) through (R) of subsection (b)(1), pursuant to a 
    formula developed by the Secretary that uses the following 
    elements:
            ``(A) The ability of the institution to match Federal funds 
        with non-Federal funds.
            ``(B) The number of students enrolled in the qualified 
        masters degree program at the eligible institution in the 
        previous academic year.
            ``(C) The average cost of attendance per student, for all 
        full-time students enrolled in the qualified masters degree 
        program at such institution.
            ``(D) The number of students in the previous year who 
        received a degree in the qualified masters degree program at 
        such institution.
            ``(E) The contribution, on a percent basis, of the programs 
        for which the institution is eligible to receive funds under 
        this section to the total number of African Americans receiving 
        masters degrees in the disciplines related to the programs for 
        the previous year.
    ``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and (3) 
of subsection (f), no eligible institution identified in subsection 
(b)(1) that receives a grant under this section for fiscal year 2009 
and that is eligible to receive a grant for a subsequent fiscal year 
shall receive a grant amount for any such subsequent fiscal year that 
is less than the grant amount received for fiscal year 2009, unless--
        ``(1) the amount appropriated is not sufficient to provide such 
    grant amounts to all such institutions and programs that received 
    grants under this section for such fiscal year and that are 
    eligible to receive a grant in such subsequent fiscal year; or
        ``(2) the institution cannot provide sufficient matching funds 
    to meet the requirements of this section.
    ``SEC. 724. MASTERS DEGREE PROGRAMS AT PREDOMINANTLY BLACK 
      INSTITUTIONS.
    ``(a) Grant Program Authorized.--
        ``(1) In general.--Subject to the availability of funds 
    appropriated to carry out this section, the Secretary shall award 
    program grants to each of the institutions listed in subsection 
    (b)(1) that is determined by the Secretary to be making a 
    substantial contribution to graduate education opportunities at the 
    masters level in mathematics, engineering, the physical or natural 
    sciences, computer science, information technology, nursing, allied 
    health, or other scientific disciplines for Black Americans.
        ``(2) Assurance of non-federal matching funds.--No grant in 
    excess of $1,000,000 may be made under this section unless the 
    institution provides assurances that 50 percent of the cost of the 
    purposes for which the grant is made will be paid from non-Federal 
    sources, except that no institution shall be required to match any 
    portion of the first $1,000,000 of the institution's award from the 
    Secretary. After funds are made available to each eligible 
    institution under the funding rules described in subsection (f), 
    the Secretary shall distribute, on a pro rata basis, any amounts 
    which were not so made available (by reason of the failure of an 
    institution to comply with the matching requirements of this 
    paragraph) among the institutions that have complied with such 
    matching requirement.
        ``(3) Minimum award.--Subject to subsections (f) and (g), the 
    amount awarded to each eligible institution listed in subsection 
    (b)(1) for a fiscal year shall be not less than $500,000.
        ``(4) Duration of grants.--A grant awarded under this section 
    shall be for a period of not more than six years, but may be 
    periodically renewed for a period to be determined by the 
    Secretary.
    ``(b) Institutional Eligibility.--
        ``(1) In general.--Institutions eligible for grants under 
    subsection (a) are the following:
            ``(A) Chicago State University.
            ``(B) Columbia Union College.
            ``(C) Long Island University, Brooklyn campus.
            ``(D) Robert Morris College.
            ``(E) York College, The City University of New York.
        ``(2) Qualified masters degree program.--
            ``(A) In general.--For the purposes of this section, the 
        term `qualified masters degree program' means a masters degree 
        program that provides a program of instruction in mathematics, 
        engineering, the physical or natural sciences, computer 
        science, information technology, nursing, allied health, or 
        other scientific disciplines in which African Americans are 
        underrepresented and has students enrolled in such program of 
        instruction at the time of application for a grant under this 
        section.
            ``(B) Enrollment exception.--Notwithstanding the enrollment 
        requirement contained in subparagraph (A), an institution may 
        use an amount equal to not more than 10 percent of the 
        institution's grant under this section for the development of a 
        new qualified masters degree program.
        ``(3) Institutional choice.--The president or chancellor of the 
    institution may decide which graduate school or qualified masters 
    degree program will receive funds under the grant in any one fiscal 
    year, if the allocation of funds among the schools or programs is 
    delineated in the application for funds submitted to the Secretary 
    under this section.
        ``(4) One grant per institution.--The Secretary shall not award 
    more than one grant under this section in any fiscal year to any 
    institution of higher education.
    ``(c) Application.--An eligible institution listed in subsection 
(b)(1) desiring a grant under this section shall submit an application 
at such time, in such manner, and containing such information as the 
Secretary may require. The application shall--
        ``(1) demonstrate how the grant funds under this section will 
    be used to improve graduate educational opportunities for Black and 
    low-income students and lead to greater financial independence; and
        ``(2) provide, in the case of applications for grants in excess 
    of $1,000,000, the assurances required under subsection (a)(2) and 
    specify the manner in which the eligible institution is going to 
    pay the non-Federal share of the cost of the application.
    ``(d) Uses of Funds.--A grant under this section may be used for--
        ``(1) purchase, rental, or lease of scientific or laboratory 
    equipment for educational purposes, including instructional and 
    research purposes;
        ``(2) construction, maintenance, renovation, and improvement in 
    classroom, library, laboratory, 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) scholarships, fellowships, and other financial assistance 
    for needy graduate students to permit the enrollment of the 
    students in, and completion of, a masters degree in mathematics, 
    engineering, the physical or natural sciences, computer science, 
    information technology, nursing, allied health, or other scientific 
    disciplines in which African Americans are underrepresented;
        ``(5) establishing or improving a development office to 
    strengthen and increase contributions from alumni and the private 
    sector;
        ``(6) assisting in the establishment or maintenance of an 
    institutional endowment to facilitate financial independence 
    pursuant to section 331;
        ``(7) funds and administrative management, and the acquisition 
    of equipment, including software, for use in strengthening funds 
    management and management information systems;
        ``(8) acquisition of real property that is adjacent to the 
    campus in connection with the construction, renovation, or 
    improvement of, or an addition to, campus facilities;
        ``(9) education or financial information designed to improve 
    the financial literacy and economic literacy of students or the 
    students' families, especially with regard to student indebtedness 
    and student assistance programs under title IV;
        ``(10) tutoring, counseling, and student service programs 
    designed to improve academic success;
        ``(11) faculty professional development, faculty exchanges, and 
    faculty participation in professional conferences and meetings; and
        ``(12) other activities proposed in the application submitted 
    under subsection (c) that--
            ``(A) contribute to carrying out the purposes of this 
        section; and
            ``(B) are approved by the Secretary as part of the review 
        and acceptance of such application.
    ``(e) Interaction With Other Grant Programs.--No institution that 
is eligible for and receives an award under section 326, 512, or 723 
for a fiscal year shall be eligible to apply for a grant, or receive 
grant funds, under this section for the same fiscal year.
    ``(f) Funding Rule.--Subject to subsection (g), of the amount 
appropriated to carry out this section for any fiscal year--
        ``(1) the first $2,500,000 (or any lesser amount appropriated) 
    shall be available only for the purposes of making minimum grants 
    under subsection (a)(3) to eligible institutions listed in 
    subparagraphs (A) through (E) of subsection (b)(1), except that if 
    the amount appropriated is not sufficient to pay the minimum grant 
    awards to all such eligible institutions, the amount of the minimum 
    award to each such eligible institution shall be ratably reduced;
        ``(2) after the application of paragraph (1), an amount shall 
    be available for the purpose of making minimum grants under 
    subsection (a)(3) to eligible institutions described in subsection 
    (b)(1) that do not receive a grant under paragraph (1), if any, 
    except that if the amount appropriated is not sufficient to pay the 
    minimum grant awards to all such eligible institutions, the amount 
    of the minimum award to each such eligible institution shall be 
    ratably reduced; and
        ``(3) any amount in excess of $2,500,000 shall be made 
    available to each of the eligible institutions identified in 
    subparagraphs (A) through (E) of subsection (b)(1), pursuant to a 
    formula developed by the Secretary that uses the following 
    elements:
            ``(A) The ability of the institution to match Federal funds 
        with non-Federal funds.
            ``(B) The number of students enrolled in the qualified 
        masters degree program at the eligible institution in the 
        previous academic year.
            ``(C) The average cost of attendance per student, for all 
        full-time students enrolled in the qualified masters degree 
        program at such institution.
            ``(D) The number of students in the previous year who 
        received a degree in the qualified masters degree program at 
        such institution.
            ``(E) The contribution, on a percent basis, of the programs 
        for which the institution is eligible to receive funds under 
        this section to the total number of African Americans receiving 
        masters degrees in the disciplines related to the programs for 
        the previous year.
    ``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and (3) 
of subsection (f), no eligible institution identified in subsection 
(b)(1) that receives a grant under this section for fiscal year 2009 
and that is eligible to receive a grant in a subsequent fiscal year 
shall receive a grant amount in any such subsequent fiscal year that is 
less than the grant amount received for fiscal year 2009, unless--
        ``(1) the amount appropriated is not sufficient to provide such 
    grant amounts to all such institutions and programs that received 
    grants under this section for such fiscal year and that are 
    eligible to receive a grant in such subsequent fiscal year; or
        ``(2) the institution cannot provide sufficient matching funds 
    to meet the requirements of this section.
    ``SEC. 725. AUTHORIZATION OF APPROPRIATIONS.
    ``(a) Masters Degree Programs at Historically Black Colleges and 
Universities.--There are authorized to be appropriated to carry out 
section 723 such sums as may be necessary for fiscal year 2009 and each 
of the five succeeding fiscal years.
    ``(b) Masters Degree Programs at Predominantly Black 
Institutions.--There are authorized to be appropriated to carry out 
section 724 such sums as may be necessary for fiscal year 2009 and each 
of the five succeeding fiscal years.''.
    SEC. 707. 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 striking paragraphs (1) through (3) and inserting the 
    following:
        ``(1) the encouragement of reform and improvement of, and 
    innovation in, postsecondary education and the provision of 
    educational opportunity for all students, including nontraditional 
    students;
        ``(2) the creation of institutions, programs, and joint efforts 
    involving paths to career and professional training, including--
            ``(A) efforts that provide academic credit for programs; 
        and
            ``(B) combinations of academic and experiential learning;
        ``(3) the establishment and continuation of institutions, 
    programs, consortia, collaborations, and other joint efforts based 
    on communications technology, including those efforts that utilize 
    distance education and technological advancements to educate and 
    train postsecondary students (including health professionals 
    serving medically underserved populations);'';
        (2) by striking paragraph (6) and inserting the following:
        ``(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;'';
        (3) in paragraph (7), by striking ``and'' after the semicolon;
        (4) in paragraph (8), by striking the period at the end and 
    inserting a semicolon; and
        (5) by adding at the end the following:
        ``(9) the introduction of reforms in remedial education, 
    including English language instruction, to customize remedial 
    courses to student goals and help students progress rapidly from 
    remedial courses into core courses and through postsecondary 
    program completion;
        ``(10) the provision of support and assistance to partnerships 
    between institutions of higher education and secondary schools with 
    a significant population of students identified as late-entering 
    limited English proficient students, to establish programs that--
            ``(A) result in increased secondary school graduation rates 
        of limited English proficient students; and
            ``(B) increase the number of participating late-entering 
        limited English proficient students who pursue postsecondary 
        education;
        ``(11) the creation of consortia that join diverse institutions 
    of higher education to design and offer curricular and cocurricular 
    interdisciplinary programs at the undergraduate and graduate 
    levels, sustained for not less than a 5 year period, that--
            ``(A) focus on poverty and human capability; and
            ``(B) include--
                ``(i) a service-learning component; and
                ``(ii) the delivery of educational services through 
            informational resource centers, summer institutes, midyear 
            seminars, and other educational activities that stress the 
            effects of poverty and how poverty can be alleviated 
            through different career paths;
        ``(12) the provision of support and assistance for 
    demonstration projects to provide comprehensive support services to 
    ensure that homeless students, or students who were in foster care 
    or were a ward of the court at any time before the age of 13, 
    enroll and succeed in postsecondary education, including providing 
    housing to such students during periods when housing at the 
    institution of higher education is closed or generally unavailable 
    to other students; and
        ``(13) the support of efforts to work with institutions of 
    higher education, and nonprofit organizations, that seek to promote 
    cultural diversity in the entertainment media industry, including 
    through the training of students in production, marketing, and 
    distribution of culturally relevant content.''.
    (b) Center for Best Practices To Support Single Parent Students.--
Section 741 (20 U.S.C. 1138) is further amended by adding at the end 
the following:
    ``(c) Center for Best Practices To Support Single Parent 
Students.--
        ``(1) Program authorized.--The Secretary is authorized to award 
    one grant or contract to an institution of higher education to 
    enable such institution to establish and maintain a center to study 
    and develop best practices for institutions of higher education to 
    support single parents who are also students attending such 
    institutions.
        ``(2) Institution requirements.--The Secretary shall award the 
    grant or contract under this subsection to a four-year institution 
    of higher education that has demonstrated expertise in the 
    development of programs to assist single parents who are students 
    at institutions of higher education, as shown by the institution's 
    development of a variety of targeted services to such students, 
    including on-campus housing, child care, counseling, advising, 
    internship opportunities, financial aid, and financial aid 
    counseling and assistance.
        ``(3) Center activities.--The center funded under this section 
    shall--
            ``(A) assist institutions implementing innovative programs 
        that support single parents pursuing higher education;
            ``(B) study and develop an evaluation protocol for such 
        programs that includes quantitative and qualitative 
        methodologies;
            ``(C) provide appropriate technical assistance regarding 
        the replication, evaluation, and continuous improvement of such 
        programs; and
            ``(D) develop and disseminate best practices for such 
        programs.''.
    (c) Prohibition.--Section 741 (20 U.S.C. 1138) is further amended 
by adding after subsection (c) (as added by subsection (b) of this 
section) the following:
    ``(d) Prohibition.--
        ``(1) In general.--No funds made available under this part 
    shall be used to provide direct financial assistance in the form of 
    grants or scholarships to students who do not meet the requirements 
    of section 484(a).
        ``(2) Rule of construction.--Nothing in this subsection shall 
    be construed to prevent a student who does not meet the 
    requirements of section 484(a) from participating in programs 
    funded under this part.''.
    (d) Priority.--Section 741 (20 U.S.C. 1138) is further amended by 
adding after subsection (d) (as added by subsection (c) of this 
section) the following:
    ``(e) Priority.--In making grants under this part to any 
institution of higher education after the date of enactment of the 
Higher Education Opportunity Act, the Secretary may give priority to 
institutions that meet or exceed the most current version of ASHRAE/IES 
Standard 90.1 (as such term is used in section 342(a)(6) of the Energy 
Policy and Conservation Act (42 U.S.C. 6313(a)(6)) for any new 
facilities construction or major renovation of the institution after 
such date, except that this subsection shall not apply with respect to 
barns or greenhouses or similar structures owned by the institution.''.
    (e) Scholarship Program for Family Members of Veterans or Members 
of the Military.--Section 741 (20 U.S.C. 1138) is further amended by 
adding after subsection (e) (as added by subsection (d) of this 
section) the following:
    ``(f) Scholarship Program for Family Members of Veterans or Members 
of the Military.--
        ``(1) Authorization.--The Secretary shall enter into a contract 
    with a nonprofit organization with demonstrated success in carrying 
    out the activities described in this subsection to carry out a 
    program to provide postsecondary education scholarships for 
    eligible students.
        ``(2) Definition of eligible student.--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 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--

                    ``(I) served or performed, as described in clause 
                (i), since September 11, 2001; and
                    ``(II) died, or has been disabled, as a result of 
                such service or performance; or

            ``(B) an independent student who--
                ``(i) is a spouse of 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);

                ``(ii) was (at the time of death of the veteran) a 
            spouse of a veteran who--

                    ``(I) served or performed, as described in clause 
                (i), since September 11, 2001; and
                    ``(II) died as a result of such service or 
                performance; or

                ``(iii) is a spouse of a veteran who--

                    ``(I) served or performed, as described in clause 
                (i), since September 11, 2001; and
                    ``(II) has been disabled as a result of such 
                service or performance.

        ``(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 
    award year shall be the lesser of $5,000, or the student's cost of 
    attendance (as defined in section 472).
        ``(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 
    the nonprofit organization receiving a contract under this 
    subsection may use not more than one percent of such amounts for 
    the administrative costs of the contract.''.
    (f) Areas of National Need.--Section 744(c) (20 U.S.C. 1138c(c)) is 
amended to read as follows:
    ``(c) Areas of National Need.--Areas of national need shall 
include, at a minimum, the following:
        ``(1) Institutional restructuring to improve learning and 
    promote productivity, efficiency, quality improvement, and cost 
    reduction.
        ``(2) Improvements in academic instruction and student 
    learning, including efforts designed to assess the learning gains 
    made by postsecondary students.
        ``(3) Articulation between two- and four-year institutions of 
    higher education, including developing innovative methods for 
    ensuring the successful transfer of students from two- to four-year 
    institutions of higher education.
        ``(4) Development, evaluation, and dissemination of model 
    courses, including model courses that--
            ``(A) provide students with a broad and integrated 
        knowledge base;
            ``(B) include, at a minimum, broad survey courses in 
        English literature, American and world history, American 
        political institutions, economics, philosophy, college-level 
        mathematics, and the natural sciences; and
            ``(C) include study of a foreign language that leads to 
        reading and writing competency in the foreign language.
        ``(5) International cooperation and student exchanges among 
    postsecondary educational institutions.
        ``(6) Support of centers to incorporate education in quality 
    and safety into the preparation of medical and nursing students, 
    through grants to medical schools, nursing schools, and osteopathic 
    schools. Such grants shall be used to assist in providing courses 
    of instruction that specifically equip students to--
            ``(A) understand the causes of, and remedies for, medical 
        error, medically induced patient injuries and complications, 
        and other defects in medical care;
            ``(B) engage effectively in personal and systemic efforts 
        to continually reduce medical harm; and
            ``(C) improve patient care and outcomes, as recommended by 
        the Institute of Medicine.''.
    (g) Authorization of Appropriations for the Fund for the 
Improvement of Postsecondary Education.--Section 745 (20 U.S.C. 1138d) 
is amended by striking ``$30,000,000 for fiscal year 1999'' and all 
that follows through the period at the end and inserting ``such sums as 
may be necessary for fiscal year 2009 and each of the five succeeding 
fiscal years.''.
    (h) Technical FIPSE Amendments.--Part B of title VII (20 U.S.C. 
1138 et seq.) is further amended--
        (1) in section 742 (20 U.S.C. 1138a)--
            (A) in subsection (b)--
                (i) by striking ``(b) Membership.--'' and all that 
            follows through ``The Secretary'' and inserting ``(b) 
            Membership.--The Secretary''; and
                (ii) by striking paragraph (2);
            (B) in subsection (c), by striking ``and the Director'' 
        each place the term appears; and
            (C) in subsection (d), by striking ``Director'' and 
        inserting ``Secretary'';
        (2) in section 743 (20 U.S.C. 1138b)--
            (A) by striking ``(a) Technical Employees.--''; and
            (B) by striking subsection (b); and
        (3) in section 744(a) (20 U.S.C. 1138c(a)), by striking 
    ``Director'' each place the term appears and inserting 
    ``Secretary''.
    SEC. 708. REPEAL OF THE URBAN COMMUNITY SERVICE PROGRAM.
    Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.
    SEC. 709. PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A 
      QUALITY HIGHER EDUCATION.
    Title VII (20 U.S.C. 1133 et seq.) is further amended--
        (1) by redesignating section 771 (20 U.S.C. 1141) as section 
    781; and
        (2) by striking part D of title VII (20 U.S.C. 1140 et seq.) 
    and inserting the following:

``PART D--PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A QUALITY 
                            HIGHER EDUCATION

    ``SEC. 760. DEFINITIONS.
    ``In this part:
        ``(1) Comprehensive transition and postsecondary program for 
    students with intellectual disabilities.--The term `comprehensive 
    transition and postsecondary program for students with intellectual 
    disabilities' means a degree, certificate, or nondegree program 
    that is--
            ``(A) offered by an institution of higher education;
            ``(B) designed to support students with intellectual 
        disabilities who are seeking to continue academic, career and 
        technical, and independent living instruction at an institution 
        of higher education in order to prepare for gainful employment;
            ``(C) includes an advising and curriculum structure; and
            ``(D) requires students with intellectual disabilities to 
        participate on not less than a half-time basis, as determined 
        by the institution, with such participation focusing on 
        academic components and occurring through one or more of the 
        following activities:
                ``(i) Regular enrollment in credit-bearing courses with 
            nondisabled students offered by the institution.
                ``(ii) Auditing or participating in courses with 
            nondisabled students offered by the institution for which 
            the student does not receive regular academic credit.
                ``(iii) Enrollment in noncredit-bearing, nondegree 
            courses with nondisabled students.
                ``(iv) Participation in internships or work-based 
            training in settings with nondisabled individuals.
        ``(2) Student with an intellectual disability.--The term 
    `student with an intellectual disability' means a student--
            ``(A) with mental retardation or a cognitive impairment, 
        characterized by significant limitations in--
                ``(i) intellectual and cognitive functioning; and
                ``(ii) adaptive behavior as expressed in conceptual, 
            social, and practical adaptive skills; and
            ``(B) who is currently, or was formerly, eligible for a 
        free appropriate public education under the Individuals with 
        Disabilities Education Act.

 ``Subpart 1--Demonstration Projects to Support Postsecondary Faculty, 
   Staff, and Administrators in Educating Students With Disabilities

    ``SEC. 761. PURPOSE.
    ``It is the purpose of this subpart to support model demonstration 
projects to provide technical assistance or professional development 
for postsecondary faculty, staff, and administrators in institutions of 
higher education to enable such faculty, staff, and administrators to 
provide students with disabilities with a quality postsecondary 
education.
    ``SEC. 762. GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS 
      AUTHORIZED.
    ``(a) Competitive Grants, Contracts, and Cooperative Agreements 
Authorized.--
        ``(1) In general.--From amounts appropriated under section 765, 
    the Secretary may award grants, contracts, and cooperative 
    agreements, on a competitive basis, to institutions of higher 
    education to enable the institutions to carry out the activities 
    under subsection (b).
        ``(2) Awards for professional development and technical 
    assistance.--Not less than two grants, contracts, cooperative 
    agreements, or a combination of such awards shall be awarded to 
    institutions of higher education that provide professional 
    development and technical assistance in order for students with 
    learning disabilities to receive a quality postsecondary education.
    ``(b) Duration; Activities.--
        ``(1) Duration.--A grant, contract, or cooperative agreement 
    under this subpart shall be awarded for a period of three years.
        ``(2) Authorized activities.--A grant, contract, or cooperative 
    agreement awarded under this subpart shall be used to carry out one 
    or more of the following activities:
            ``(A) Teaching methods and strategies.--The development of 
        innovative, effective, and efficient teaching methods and 
        strategies, consistent with the principles of universal design 
        for learning, to provide postsecondary faculty, staff, and 
        administrators with the skills and supports necessary to teach 
        and meet the academic and programmatic needs of students with 
        disabilities, in order to improve the retention of such 
        students in, and the completion by such students of, 
        postsecondary education. Such methods and strategies may 
        include in-service training, professional development, 
        customized and general technical assistance, workshops, summer 
        institutes, distance learning, and training in the use of 
        assistive and educational technology.
            ``(B) Effective transition practices.--The development of 
        innovative and effective teaching methods and strategies to 
        provide postsecondary faculty, staff, and administrators with 
        the skill and supports necessary to ensure the successful and 
        smooth transition of students with disabilities from secondary 
        school to postsecondary education.
            ``(C) Synthesizing research and information.--The synthesis 
        of research and other information related to the provision of 
        postsecondary educational services to students with 
        disabilities, including data on the impact of a postsecondary 
        education on subsequent employment of students with 
        disabilities. Such research, information, and data shall be 
        made publicly available and accessible.
            ``(D) Distance learning.--The development of innovative and 
        effective teaching methods and strategies to provide 
        postsecondary faculty, staff, and administrators with the 
        ability to provide accessible distance education programs or 
        classes that would enhance the access of students with 
        disabilities to postsecondary education, including the use of 
        accessible curricula and electronic communication for 
        instruction and advising.
            ``(E) Disability career pathways.--
                ``(i) In general.--The provision of information, 
            training, and technical assistance to secondary and 
            postsecondary faculty, staff, and administrators with 
            respect to disability-related fields that would enable such 
            faculty, staff, and administrators to--

                    ``(I) encourage interest and participation in such 
                fields, among students with disabilities and other 
                students;
                    ``(II) enhance awareness and understanding of such 
                fields among students with disabilities and other 
                students;
                    ``(III) provide educational opportunities in such 
                fields for students with disabilities and other 
                students;
                    ``(IV) teach practical skills related to such 
                fields to students with disabilities and other 
                students; and
                    ``(V) offer work-based opportunities in such fields 
                to students with disabilities and other students.

                ``(ii) Development.--The training and support described 
            in subclauses (I) through (V) of clause (i) may include 
            offering students--

                    ``(I) credit-bearing postsecondary-level 
                coursework; and
                    ``(II) career and educational counseling.

            ``(F) Professional development and training sessions.--The 
        conduct of professional development and training sessions for 
        postsecondary faculty, staff, and administrators from other 
        institutions of higher education to enable such individuals to 
        meet the educational needs of students with disabilities.
            ``(G) Accessibility of education.--Making postsecondary 
        education more accessible to students with disabilities through 
        curriculum development, consistent with the principles of 
        universal design for learning.
        ``(3) Mandatory evaluation and dissemination.--An institution 
    of higher education awarded a grant, contract, or cooperative 
    agreement under this subpart shall evaluate and disseminate to 
    other institutions of higher education, the information obtained 
    through the activities described in subparagraphs (A) through (G) 
    of paragraph (2).
    ``(c) Considerations in Making Awards.--In awarding grants, 
contracts, or cooperative agreements under this subpart, the Secretary 
shall consider the following:
        ``(1) Geographic distribution.--Providing an equitable 
    geographic distribution of such awards.
        ``(2) Rural and urban areas.--Distributing such awards to urban 
    and rural areas.
        ``(3) Range and type of institution.--Ensuring that the 
    activities to be assisted are developed for a range of types and 
    sizes of institutions of higher education.
        ``(4) Prior experience or exceptional programs.--Distributing 
    the awards to institutions of higher education with demonstrated 
    prior experience in, or exceptional programs for, meeting the 
    postsecondary educational needs of students with disabilities.
    ``(d) Reports.--
        ``(1) Initial report.--Not later than one year after the date 
    of enactment of the Higher Education Opportunity Act, the Secretary 
    shall prepare and submit to the authorizing committees, and make 
    available to the public, a report on all demonstration projects 
    awarded grants under this part for any of fiscal years 1999 through 
    2008, including a review of the activities and program performance 
    of such demonstration projects based on existing information as of 
    the date of the report.
        ``(2) Subsequent report.--Not later than three years after the 
    date of the first award of a grant under this subpart after the 
    date of enactment of the Higher Education Opportunity Act, the 
    Secretary shall prepare and submit to the authorizing committees, 
    and make available to the public, a report that--
            ``(A) reviews the activities and program performance of the 
        demonstration projects authorized under this subpart; and
            ``(B) provides guidance and recommendations on how 
        effective projects can be replicated.
    ``SEC. 763. APPLICATIONS.
    ``Each institution of higher education desiring to receive a grant, 
contract, or cooperative agreement under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may require. Each 
application shall include--
        ``(1) a description of the activities authorized under this 
    subpart that the institution proposes to carry out, and how such 
    institution plans to conduct such activities in order to further 
    the purpose of this subpart;
        ``(2) a description of how the institution consulted with a 
    broad range of people within the institution to develop activities 
    for which assistance is sought;
        ``(3) a description of how the institution will coordinate and 
    collaborate with the office that provides services to students with 
    disabilities within the institution; and
        ``(4) a description of the extent to which the institution will 
    work to replicate the research-based and best practices of 
    institutions of higher education with demonstrated effectiveness in 
    serving students with disabilities.
    ``SEC. 764. RULE OF CONSTRUCTION.
    ``Nothing in this subpart shall be construed to impose any 
additional duty, obligation, or responsibility on an institution of 
higher education or on the institution's faculty, administrators, or 
staff than is required under section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794) and the Americans with Disabilities Act of 1990 
(42 U.S.C. 12101 et seq.).
    ``SEC. 765. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this subpart 
such sums as may be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

    ``Subpart 2--Transition Programs for Students With Intellectual 
                   Disabilities Into Higher Education

    ``SEC. 766. PURPOSE.
    ``It is the purpose of this subpart to support model demonstration 
programs that promote the successful transition of students with 
intellectual disabilities into higher education.
    ``SEC. 767. MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY 
      PROGRAMS FOR STUDENTS WITH INTELLECTUAL DISABILITIES.
    ``(a) Grants Authorized.--
        ``(1) In general.--From amounts appropriated under section 
    769(a), the Secretary shall annually award grants, on a competitive 
    basis, to institutions of higher education (or consortia of 
    institutions of higher education), to enable the institutions or 
    consortia to create or expand high quality, inclusive model 
    comprehensive transition and postsecondary programs for students 
    with intellectual disabilities.
        ``(2) Administration.--The program under this section shall be 
    administered by the office in the Department that administers other 
    postsecondary education programs.
        ``(3) Duration of grants.--A grant under this section shall be 
    awarded for a period of 5 years.
    ``(b) Application.--An institution of higher education (or a 
consortium) desiring a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    ``(c) Award Basis.--In awarding grants under this section, the 
Secretary shall--
        ``(1) provide for an equitable geographic distribution of such 
    grants;
        ``(2) provide grant funds for model comprehensive transition 
    and postsecondary programs for students with intellectual 
    disabilities that will serve areas that are underserved by programs 
    of this type; and
        ``(3) give preference to applications submitted under 
    subsection (b) that agree to incorporate into the model 
    comprehensive transition and postsecondary program for students 
    with intellectual disabilities carried out under the grant one or 
    more of the following elements:
            ``(A) The formation of a partnership with any relevant 
        agency serving students with intellectual disabilities, such as 
        a vocational rehabilitation agency.
            ``(B) In the case of an institution of higher education 
        that provides institutionally owned or operated housing for 
        students attending the institution, the integration of students 
        with intellectual disabilities into the housing offered to 
        nondisabled students.
            ``(C) The involvement of students attending the institution 
        of higher education who are studying special education, general 
        education, vocational rehabilitation, assistive technology, or 
        related fields in the model program.
    ``(d) Use of Funds.--An institution of higher education (or 
consortium) receiving a grant under this section shall use the grant 
funds to establish a model comprehensive transition and postsecondary 
program for students with intellectual disabilities that--
        ``(1) serves students with intellectual disabilities;
        ``(2) provides individual supports and services for the 
    academic and social inclusion of students with intellectual 
    disabilities in academic courses, extracurricular activities, and 
    other aspects of the institution of higher education's regular 
    postsecondary program;
        ``(3) with respect to the students with intellectual 
    disabilities participating in the model program, provides a focus 
    on--
            ``(A) academic enrichment;
            ``(B) socialization;
            ``(C) independent living skills, including self-advocacy 
        skills; and
            ``(D) integrated work experiences and career skills that 
        lead to gainful employment;
        ``(4) integrates person-centered planning in the development of 
    the course of study for each student with an intellectual 
    disability participating in the model program;
        ``(5) participates with the coordinating center established 
    under section 777(b) in the evaluation of the model program;
        ``(6) partners with one or more local educational agencies to 
    support students with intellectual disabilities participating in 
    the model program who are still eligible for special education and 
    related services under the Individuals with Disabilities Education 
    Act, including the use of funds available under part B of such Act 
    to support the participation of such students in the model program;
        ``(7) plans for the sustainability of the model program after 
    the end of the grant period; and
        ``(8) creates and offers a meaningful credential for students 
    with intellectual disabilities upon the completion of the model 
    program.
    ``(e) Matching Requirement.--An institution of higher education (or 
consortium) that receives a grant under this section shall provide 
matching funds toward the cost of the model comprehensive transition 
and postsecondary program for students with intellectual disabilities 
carried out under the grant. Such matching funds may be provided in 
cash or in-kind, and shall be in an amount of not less than 25 percent 
of the amount of such costs.
    ``(f) Report.--Not later than five years after the date of the 
first grant awarded under this section, the Secretary shall prepare and 
disseminate a report to the authorizing committees and to the public 
that--
        ``(1) reviews the activities of the model comprehensive 
    transition and postsecondary programs for students with 
    intellectual disabilities funded under this section; and
        ``(2) provides guidance and recommendations on how effective 
    model programs can be replicated.
    ``SEC. 768. RULE OF CONSTRUCTION.
    ``Nothing in this subpart shall be construed to reduce or expand--
        ``(1) the obligation of a State or local educational agency to 
    provide a free appropriate public education, as defined in section 
    602 of the Individuals with Disabilities Education Act; or
        ``(2) eligibility requirements under any Federal, State, or 
    local disability law, including the Americans with Disabilities Act 
    of 1990 (42 U.S.C. 12101 et seq.), the Rehabilitation Act of 1973 
    (29 U.S.C. 701 et seq.), or the Developmental Disabilities 
    Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15001 et 
    seq.).
    ``SEC. 769. AUTHORIZATION OF APPROPRIATIONS AND RESERVATION.
    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this subpart such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.
    ``(b) Reservation of Funds.--For any fiscal year for which 
appropriations are made for this subpart, the Secretary shall reserve 
funds to enter into a cooperative agreement to establish the 
coordinating center under section 777(b), in an amount that is--
        ``(1) not less than $240,000 for any year in which the amount 
    appropriated to carry out this subpart is $8,000,000 or less; or
        ``(2) equal to 3 percent of the amount appropriated to carry 
    out this subpart for any year in which such amount appropriated is 
    greater than $8,000,000.

 ``Subpart 3--Commission on Accessible Materials; Programs to Support 
                      Improved Access to Materials

    ``SEC. 771. DEFINITION OF STUDENT WITH A PRINT DISABILITY.
    ``In this subpart, the term `student with a print disability' means 
a student with a disability who experiences barriers to accessing 
instructional material in nonspecialized formats, including an 
individual described in section 121(d)(2) of title 17, United States 
Code.
    ``SEC. 772. ESTABLISHMENT OF ADVISORY COMMISSION ON ACCESSIBLE 
      INSTRUCTIONAL MATERIALS IN POSTSECONDARY EDUCATION FOR STUDENTS 
      WITH DISABILITIES.
    ``(a) Establishment.--
        ``(1) In general.--The Secretary shall establish a commission 
    to be known as the Advisory Commission on Accessible Instructional 
    Materials in Postsecondary Education for Students with Disabilities 
    (in this section referred to as the `Commission').
        ``(2) Membership.--
            ``(A) Total number of members.--The Commission shall 
        include not more than 19 members, who shall be appointed by the 
        Secretary in accordance with in subparagraphs (B) and (C).
            ``(B) Members of the commission.--The Commission members 
        shall include one representative from each of the following 
        categories:
                ``(i) The Office of Postsecondary Education of the 
            Department.
                ``(ii) The Office of Special Education and 
            Rehabilitative Services of the Department.
                ``(iii) The Office for Civil Rights of the Department.
                ``(iv) The Library of Congress National Digital 
            Information and Infrastructure Preservation Program 
            Copyright Working Group.
                ``(v) The Association on Higher Education and 
            Disability.
                ``(vi) The Association of American Publishers.
                ``(vii) The Association of American University Presses.
                ``(viii) The National Council on Disability.
                ``(ix) Recording for the Blind and Dyslexic.
                ``(x) National organizations representing individuals 
            with visual impairments.
                ``(xi) National organizations representing individuals 
            with learning disabilities.
            ``(C) Additional members of the commission.--The Commission 
        members shall include two representatives from each of the 
        following categories:
                ``(i) Staff from institutions of higher education with 
            demonstrated experience teaching or supporting students 
            with print disabilities, including representatives from 
            both two-year and four-year institutions of higher 
            education of different sizes.
                ``(ii) Producers of accessible materials, publishing 
            software, and supporting technologies in specialized 
            formats, such as Braille, audio or synthesized speech, and 
            digital media.
                ``(iii) Individuals with visual impairments, including 
            not less than one currently enrolled postsecondary student.
                ``(iv) Individuals with dyslexia or other learning 
            disabilities related to reading, including not less than 
            one currently enrolled postsecondary student.
            ``(D) Timing.--The Secretary shall appoint the members of 
        the Commission not later than 60 days after the Commission is 
        established under paragraph (1).
        ``(3) Chairperson and vice chairperson.--The Commission shall 
    select a chairperson and vice chairperson from among the members of 
    the Commission.
        ``(4) Meetings.--
            ``(A) In general.--The Commission shall meet at the call of 
        the Chairperson.
            ``(B) First meeting.--Not later than 60 days after the 
        appointment of the members of the Commission under paragraph 
        (2)(D), the Commission shall hold the Commission's first 
        meeting.
        ``(5) Quorum.--A majority of the members of the Commission 
    shall constitute a quorum, but a lesser number of members may hold 
    hearings.
    ``(b) Duties of the Commission.--
        ``(1) Study.--
            ``(A) In general.--The Commission shall conduct a 
        comprehensive study to--
                ``(i) assess the barriers and systemic issues that may 
            affect, and technical solutions available that may improve, 
            the timely delivery and quality of accessible instructional 
            materials for postsecondary students with print 
            disabilities, as well as the effective use of such 
            materials by faculty and staff; and
                ``(ii) make recommendations related to the development 
            of a comprehensive approach to improve the opportunities 
            for postsecondary students with print disabilities to 
            access instructional materials in specialized formats in a 
            timeframe comparable to the availability of instructional 
            materials for postsecondary nondisabled students.
            ``(B) Existing information.--To the extent practicable, in 
        carrying out the study under this paragraph, the Commission 
        shall identify and use existing research, recommendations, and 
        information.
            ``(C) Recommendations.--
                ``(i) In general.--The Commission shall develop 
            recommendations--

                    ``(I) to inform Federal regulations and 
                legislation;
                    ``(II) to support the model demonstration programs 
                authorized under section 773;
                    ``(III) to identify best practices in systems for 
                collecting, maintaining, processing, and disseminating 
                materials in specialized formats to students with print 
                disabilities at costs comparable to instructional 
                materials for postsecondary nondisabled students;
                    ``(IV) to improve the effective use of such 
                materials by faculty and staff, while complying with 
                applicable copyright law; and
                    ``(V) to modify the definitions of instructional 
                materials, authorized entities, and eligible students, 
                as such terms are used in applicable Federal law, for 
                the purpose of improving services to students with 
                disabilities.

                ``(ii) Considerations.--In developing the 
            recommendations under subparagraph (C), the Commission 
            shall consider--

                    ``(I) how students with print disabilities may 
                obtain instructional materials in accessible formats--

                        ``(aa) within a timeframe comparable to the 
                    availability of instructional materials for 
                    nondisabled students; and
                        ``(bb) to the maximum extent practicable, at 
                    costs comparable to the costs of such materials for 
                    nondisabled students;

                    ``(II) the feasibility and technical parameters of 
                establishing standardized electronic file formats, such 
                as the National Instructional Materials Accessibility 
                Standard as defined in section 674(e)(3) of the 
                Individuals with Disabilities Education Act, to be 
                provided by publishers of instructional materials to 
                producers of materials in specialized formats, 
                institutions of higher education, and eligible 
                students;
                    ``(III) the feasibility of establishing a national 
                clearinghouse, repository, or file-sharing network for 
                electronic files in specialized formats and files used 
                in producing instructional materials in specialized 
                formats, and a list of possible entities qualified to 
                administer such clearinghouse, repository, or network;
                    ``(IV) the feasibility of establishing market-based 
                solutions involving collaborations among publishers of 
                instructional materials, producers of materials in 
                specialized formats, and institutions of higher 
                education;
                    ``(V) solutions utilizing universal design; and
                    ``(VI) solutions for low-incidence, high-cost 
                requests for instructional materials in specialized 
                formats.

        ``(2) Report.--Not later than one year after the Commission's 
    first meeting, the Commission shall submit a report to the 
    Secretary and the authorizing committees detailing the findings and 
    recommendations of the study conducted under paragraph (1).
        ``(3) Dissemination of information.--In carrying out the study 
    under paragraph (1), the Commission shall disseminate information 
    concerning the issues that are the subject of the study through--
            ``(A) the National Technical Assistance Center established 
        under subpart 4; and
            ``(B) other means, as determined by the Commission.
    ``(c) Termination of the Commission.--The Commission shall 
terminate on the date that is 90 days after the date on which the 
Commission submits the report under subsection (b)(2) to the Secretary 
and the authorizing committees.
    ``SEC. 773. MODEL DEMONSTRATION PROGRAMS TO SUPPORT IMPROVED ACCESS 
      TO POSTSECONDARY INSTRUCTIONAL MATERIALS FOR STUDENTS WITH PRINT 
      DISABILITIES.
    ``(a) Purpose.--It is the purpose of this section to support model 
demonstration programs for the purpose of encouraging the development 
of systems to improve the quality of postsecondary instructional 
materials in specialized formats and such materials' timely delivery to 
postsecondary students with print disabilities, including systems to 
improve efficiency and reduce duplicative efforts across multiple 
institutions of higher education.
    ``(b) Definition of Eligible Partnership.--In this section, the 
term `eligible partnership' means a partnership that--
        ``(1) shall include--
            ``(A) an institution of higher education with demonstrated 
        expertise in meeting the needs of students with print 
        disabilities, including the retention of such students in, and 
        such students' completion of, postsecondary education; and
            ``(B) a public or private entity, other than an institution 
        of higher education, with--
                ``(i) demonstrated expertise in developing accessible 
            instructional materials in specialized formats for 
            postsecondary students with print disabilities; and
                ``(ii) the technical development expertise necessary 
            for the efficient dissemination of such materials, 
            including procedures to protect against copyright 
            infringement with respect to the creation, use, and 
            distribution of instructional materials in specialized 
            formats; and
        ``(2) may include representatives of the publishing industry.
    ``(c) Program Authorized.--From amounts appropriated under section 
775, the Secretary shall award grants or contracts, on a competitive 
basis, to not less than one eligible partnership to enable the eligible 
partnership to support the activities described in subsection (f) and, 
as applicable, subsection (g).
    ``(d) Application.--An eligible partnership that desires a grant or 
contract under this section shall submit an application at such time, 
in such manner, and in such format as the Secretary may prescribe. The 
application shall include information on how the eligible partnership 
will implement activities under subsection (f) and, as applicable, 
subsection (g).
    ``(e) Priority.--In awarding grants or contracts under this 
section, the Secretary shall give priority to any applications that 
include the development and implementation of the procedures and 
approaches described in paragraphs (2) and (3) of subsection (g).
    ``(f) Required Activities.--An eligible partnership that receives a 
grant or contract under this section shall use the grant or contract 
funds to carry out the following:
        ``(1) Supporting the development and implementation of the 
    following:
            ``(A) Processes and systems to help identify, and verify 
        eligibility of, postsecondary students with print disabilities 
        in need of instructional materials in specialized formats.
            ``(B) Procedures and systems to facilitate and simplify 
        request methods for accessible instructional materials in 
        specialized formats from eligible students described in 
        subparagraph (A), which may include a single point-of-entry 
        system.
            ``(C) Procedures and systems to coordinate among 
        institutions of higher education, publishers of instructional 
        materials, and entities that produce materials in specialized 
        formats, to efficiently facilitate--
                ``(i) requests for such materials;
                ``(ii) the responses to such requests; and
                ``(iii) the delivery of such materials.
            ``(D) Delivery systems that will ensure the timely 
        provision of instructional materials in specialized formats to 
        eligible students, which may include electronic file 
        distribution.
            ``(E) Systems to reduce duplicative conversions and improve 
        sharing of the same instructional materials in specialized 
        formats for multiple eligible students at multiple institutions 
        of higher education.
            ``(F) Procedures to protect against copyright infringement 
        with respect to the development, use, and distribution of 
        instructional materials in specialized formats while 
        maintaining accessibility for eligible students, which may 
        include digital technologies such as watermarking, 
        fingerprinting, and other emerging approaches.
            ``(G) Awareness, outreach, and training activities for 
        faculty, staff, and students related to the acquisition and 
        dissemination of instructional materials in specialized formats 
        and instructional materials utilizing universal design.
        ``(2) Providing recommendations on how effective procedures and 
    systems described in paragraph (1) may be disseminated and 
    implemented on a national basis.
    ``(g) Authorized Approaches.--An eligible partnership that receives 
a grant or contract under this section may use the grant or contract 
funds to support the development and implementation of the following:
        ``(1) Approaches for the provision of instructional materials 
    in specialized formats limited to instructional materials used in 
    smaller categories of postsecondary courses, such as introductory, 
    first-, and second-year courses.
        ``(2) Approaches supporting a unified search for instructional 
    materials in specialized formats across multiple databases or lists 
    of available materials.
        ``(3) Market-based approaches for making instructional 
    materials in specialized formats directly available to eligible 
    students at prices comparable to standard instructional materials.
    ``(h) Report.--Not later than three years after the date of the 
first grant or contract awarded under this section, the Secretary shall 
submit to the authorizing committees a report that includes--
        ``(1) the number of grants and contracts and the amount of 
    funds distributed under this section;
        ``(2) a summary of the purposes for which the grants and 
    contracts were provided and an evaluation of the progress made 
    under such grants and contracts;
        ``(3) a summary of the activities implemented under subsection 
    (f) and, as applicable, subsection (g), including data on the 
    number of postsecondary students with print disabilities served and 
    the number of instructional material requests executed and 
    delivered in specialized formats; and
        ``(4) an evaluation of the effectiveness of programs funded 
    under this section.
    ``(i) Model Expansion.--The Secretary may, on the basis of the 
reports under subsection (h) and section 772(b)(2) and any evaluations 
of the projects funded under this section, expand the program under 
this section to additional grant or contract recipients that use other 
programmatic approaches and serve different geographic regions, if the 
Secretary finds that the models used under this section--
        ``(1) are effective in improving the timely delivery and 
    quality of materials in specialized formats; and
        ``(2) provide adequate protections against copyright 
    infringement.
    ``SEC. 774. RULE OF CONSTRUCTION.
    ``Nothing in this subpart shall be construed to limit or preempt 
any State law requiring the production or distribution of postsecondary 
instructional materials in accessible formats to students with 
disabilities.
    ``SEC. 775. AUTHORIZATION OF APPROPRIATIONS.
    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart such sums as may be necessary for fiscal year 2009 and 
each of the five succeeding fiscal years.
    ``(b) Priority.--For the first fiscal year for which funds are made 
available under this section, the Secretary shall give priority to 
allocating funding for the purposes of section 772.

 ``Subpart 4--National Technical Assistance Center; Coordinating Center

    ``SEC. 776. PURPOSE.
    ``It is the purpose of this subpart to provide technical assistance 
and information on best and promising practices to students with 
disabilities, the families of students with disabilities, and entities 
awarded grants, contracts, or cooperative agreements under subpart 1, 
2, or 3 to improve the postsecondary recruitment, transition, 
retention, and completion rates of students with disabilities.
    ``SEC. 777. NATIONAL TECHNICAL ASSISTANCE CENTER; COORDINATING 
      CENTER.
    ``(a) National Center.--
        ``(1) In general.--From amounts appropriated under section 778, 
    the Secretary shall award a grant to, or enter into a contract or 
    cooperative agreement with, an eligible entity to provide for the 
    establishment and support of a National Center for Information and 
    Technical Support for Postsecondary Students with Disabilities (in 
    this subsection referred to as the `National Center'). The National 
    Center shall carry out the duties set forth in paragraph (4).
        ``(2) Administration.--The program under this section shall be 
    administered by the office in the Department that administers other 
    postsecondary education programs.
        ``(3) Eligible entity.--In this subpart, the term `eligible 
    entity' means an institution of higher education, a nonprofit 
    organization, or partnership of two or more such institutions or 
    organizations, with demonstrated expertise in--
            ``(A) supporting students with disabilities in 
        postsecondary education;
            ``(B) technical knowledge necessary for the dissemination 
        of information in accessible formats;
            ``(C) working with diverse types of institutions of higher 
        education, including community colleges; and
            ``(D) the subjects supported by the grants, contracts, or 
        cooperative agreements authorized in subparts 1, 2, and 3.
        ``(4) Duties.--The duties of the National Center shall include 
    the following:
            ``(A) Assistance to students and families.--The National 
        Center shall provide information and technical assistance to 
        students with disabilities and the families of students with 
        disabilities to support students across the broad spectrum of 
        disabilities, including--
                ``(i) information to assist individuals with 
            disabilities who are prospective students of an institution 
            of higher education in planning for postsecondary education 
            while the students are in secondary school;
                ``(ii) information and technical assistance provided to 
            individualized education program teams (as defined in 
            section 614(d)(1) of the Individuals with Disabilities 
            Education Act) for secondary school students with 
            disabilities, and to early outreach and student services 
            programs, including programs authorized under subparts 2, 
            4, and 5 of part A of title IV, to support students across 
            a broad spectrum of disabilities with the successful 
            transition to postsecondary education;
                ``(iii) research-based supports, services, and 
            accommodations which are available in postsecondary 
            settings, including services provided by other agencies 
            such as vocational rehabilitation;
                ``(iv) information on student mentoring and networking 
            opportunities for students with disabilities; and
                ``(v) effective recruitment and transition programs at 
            postsecondary educational institutions.
            ``(B) Assistance to institutions of higher education.--The 
        National Center shall provide information and technical 
        assistance to faculty, staff, and administrators of 
        institutions of higher education to improve the services 
        provided to, the accommodations for, the retention rates of, 
        and the completion rates of, students with disabilities in 
        higher education settings, which may include--
                ``(i) collection and dissemination of best and 
            promising practices and materials for accommodating and 
            supporting students with disabilities, including practices 
            and materials supported by the grants, contracts, or 
            cooperative agreements authorized under subparts 1, 2, and 
            3;
                ``(ii) development and provision of training modules 
            for higher education faculty on exemplary practices for 
            accommodating and supporting postsecondary students with 
            disabilities across a range of academic fields, which may 
            include universal design for learning and practices 
            supported by the grants, contracts, or cooperative 
            agreements authorized under subparts 1, 2, and 3; and
                ``(iii) development of technology-based tutorials for 
            higher education faculty and staff, including new faculty 
            and graduate students, on best and promising practices 
            related to support and retention of students with 
            disabilities in postsecondary education.
            ``(C) Information collection and dissemination.--The 
        National Center shall be responsible for building, maintaining, 
        and updating a database of disability support services 
        information with respect to institutions of higher education, 
        or for expanding and updating an existing database of 
        disabilities support services information with respect to 
        institutions of higher education. Such database shall be 
        available to the general public through a website built to high 
        technical standards of accessibility practicable for the broad 
        spectrum of individuals with disabilities. Such database and 
        website shall include available information on--
                ``(i) disability documentation requirements;
                ``(ii) support services available;
                ``(iii) links to financial aid;
                ``(iv) accommodations policies;
                ``(v) accessible instructional materials;
                ``(vi) other topics relevant to students with 
            disabilities; and
                ``(vii) the information in the report described in 
            subparagraph (E).
            ``(D) Disability support services.--The National Center 
        shall work with organizations and individuals with proven 
        expertise related to disability support services for 
        postsecondary students with disabilities to evaluate, improve, 
        and disseminate information related to the delivery of high 
        quality disability support services at institutions of higher 
        education.
            ``(E) Review and report.--Not later than three years after 
        the establishment of the National Center, and every two years 
        thereafter, the National Center shall prepare and disseminate a 
        report to the Secretary and the authorizing committees 
        analyzing the condition of postsecondary success for students 
        with disabilities. Such report shall include--
                ``(i) a review of the activities and the effectiveness 
            of the programs authorized under this part;
                ``(ii) annual enrollment and graduation rates of 
            students with disabilities in institutions of higher 
            education from publicly reported data;
                ``(iii) recommendations for effective postsecondary 
            supports and services for students with disabilities, and 
            how such supports and services may be widely implemented at 
            institutions of higher education;
                ``(iv) recommendations on reducing barriers to full 
            participation for students with disabilities in higher 
            education; and
                ``(v) a description of strategies with a demonstrated 
            record of effectiveness in improving the success of such 
            students in postsecondary education.
            ``(F) Staffing of the center.--In hiring employees of the 
        National Center, the National Center shall consider the 
        expertise and experience of prospective employees in providing 
        training and technical assistance to practitioners.
    ``(b) Coordinating Center.--
        ``(1) Definition of eligible entity.--In this subsection, the 
    term `eligible entity' means an entity, or a partnership of 
    entities, that has demonstrated expertise in the fields of--
            ``(A) higher education;
            ``(B) the education of students with intellectual 
        disabilities;
            ``(C) the development of comprehensive transition and 
        postsecondary programs for students with intellectual 
        disabilities; and
            ``(D) evaluation and technical assistance.
        ``(2) In general.--From amounts appropriated under section 778, 
    the Secretary shall enter into a cooperative agreement, on a 
    competitive basis, with an eligible entity for the purpose of 
    establishing a coordinating center for institutions of higher 
    education that offer inclusive comprehensive transition and 
    postsecondary programs for students with intellectual disabilities, 
    including institutions participating in grants authorized under 
    subpart 2, to provide--
            ``(A) recommendations related to the development of 
        standards for such programs;
            ``(B) technical assistance for such programs; and
            ``(C) evaluations for such programs.
        ``(3) Administration.--The program under this subsection shall 
    be administered by the office in the Department that administers 
    other postsecondary education programs.
        ``(4) Duration.--The Secretary shall enter into a cooperative 
    agreement under this subsection for a period of five years.
        ``(5) Requirements of cooperative agreement.--The eligible 
    entity entering into a cooperative agreement under this subsection 
    shall establish and maintain a coordinating center that shall--
            ``(A) serve as the technical assistance entity for all 
        comprehensive transition and postsecondary programs for 
        students with intellectual disabilities;
            ``(B) provide technical assistance regarding the 
        development, evaluation, and continuous improvement of such 
        programs;
            ``(C) develop an evaluation protocol for such programs that 
        includes qualitative and quantitative methodologies for 
        measuring student outcomes and program strengths in the areas 
        of academic enrichment, socialization, independent living, and 
        competitive or supported employment;
            ``(D) assist recipients of grants under subpart 2 in 
        efforts to award a meaningful credential to students with 
        intellectual disabilities upon the completion of such programs, 
        which credential shall take into consideration unique State 
        factors;
            ``(E) develop recommendations for the necessary components 
        of such programs, such as--
                ``(i) academic, vocational, social, and independent 
            living skills;
                ``(ii) evaluation of student progress;
                ``(iii) program administration and evaluation;
                ``(iv) student eligibility; and
                ``(v) issues regarding the equivalency of a student's 
            participation in such programs to semester, trimester, 
            quarter, credit, or clock hours at an institution of higher 
            education, as the case may be;
            ``(F) analyze possible funding streams for such programs 
        and provide recommendations regarding the funding streams;
            ``(G) develop model memoranda of agreement for use between 
        or among institutions of higher education and State and local 
        agencies providing funding for such programs;
            ``(H) develop mechanisms for regular communication, 
        outreach and dissemination of information about comprehensive 
        transition and postsecondary programs for students with 
        intellectual disabilities under subpart 2 between or among such 
        programs and to families and prospective students;
            ``(I) host a meeting of all recipients of grants under 
        subpart 2 not less often than once each year; and
            ``(J) convene a workgroup to develop and recommend model 
        criteria, standards, and components of such programs as 
        described in subparagraph (E), that are appropriate for the 
        development of accreditation standards, which workgroup shall 
        include--
                ``(i) an expert in higher education;
                ``(ii) an expert in special education;
                ``(iii) a disability organization that represents 
            students with intellectual disabilities;
                ``(iv) a representative from the National Advisory 
            Committee on Institutional Quality and Integrity; and
                ``(v) a representative of a regional or national 
            accreditation agency or association.
        ``(6) Report.--Not later than five years after the date of the 
    establishment of the coordinating center under this subsection, the 
    coordinating center shall report to the Secretary, the authorizing 
    committees, and the National Advisory Committee on Institutional 
    Quality and Integrity on the recommendations of the workgroup 
    described in paragraph (5)(J).
    ``SEC. 778. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this subpart 
such sums as may be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.''.
    SEC. 710. SUBGRANTS TO NONPROFIT ORGANIZATIONS.
    Section 781 (as redesignated by section 709(1)) (20 U.S.C. 1141) is 
amended--
        (1) in subsection (a), by striking the second sentence and 
    inserting the following: ``In addition to the amount authorized and 
    appropriated under the preceding sentence, there are authorized to 
    be appropriated to carry out this section such sums as may be 
    necessary for fiscal year 2009 and each of the five succeeding 
    fiscal years.'';
        (2) in subsection (b)(1), by inserting ``, subject to the 
    availability of appropriations,'' after ``the Secretary shall''; 
    and
        (3) in subsection (e), by inserting after ``of this Act)'' the 
    following: ``, or those nonprofit organizations that have 
    agreements with the Secretary under section 435(j)''.

                    TITLE VIII--ADDITIONAL PROGRAMS

    SEC. 801. ADDITIONAL PROGRAMS.
    The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is 
further amended by adding at the end the following new title:

                   ``TITLE VIII--ADDITIONAL PROGRAMS

                         ``PART A--PROJECT GRAD

    ``SEC. 801. PROJECT GRAD.
    ``(a) Purposes.--The purposes of this section are--
        ``(1) to provide support and assistance to programs 
    implementing integrated education reform services in order to 
    improve secondary school graduation, postsecondary program 
    attendance, and postsecondary completion rates for low-income 
    students; and
        ``(2) to promote the establishment of new programs to implement 
    such integrated education reform services.
    ``(b) Definitions.--In this section:
        ``(1) Low-income student.--The term `low-income student' means 
    a student who is determined by a local educational agency to be 
    from a low-income family using the measures described in section 
    1113(a)(5) of the Elementary and Secondary Education Act of 1965.
        ``(2) Feeder pattern.--The term `feeder pattern' means a 
    secondary school and the elementary schools and middle schools that 
    channel students into that secondary school.
    ``(c) Contract Authorized.--From the amount appropriated to carry 
out this section, the Secretary is authorized to award a five-year 
contract to Project GRAD USA (referred to in this section as the 
`contractor'), a nonprofit education organization that has as its 
primary purpose the improvement of secondary school graduation and 
postsecondary attendance and completion rates for low-income students. 
Such contract shall be used to carry out the requirements of subsection 
(d) and to implement and sustain integrated education reform services 
through subcontractor activities described in subsection (e)(3) at 
existing Project GRAD program sites and to promote the expansion to new 
sites.
    ``(d) Requirements of Contract.--The Secretary shall enter into an 
agreement with the contractor that requires that the contractor shall--
        ``(1) enter into subcontracts with nonprofit educational 
    organizations that serve a substantial number or percentage of low-
    income students (referred to in this subsection as 
    `subcontractors'), under which the subcontractors agree to 
    implement the Project GRAD programs described in subsection (e) and 
    provide matching funds for such programs;
        ``(2) directly carry out--
            ``(A) activities to implement and sustain the literacy, 
        mathematics, classroom management, social service, and 
        postsecondary access programs further described in subsection 
        (e)(3);
            ``(B) activities to build the organizational and management 
        capacity of the subcontractors to effectively implement and 
        sustain the programs;
            ``(C) activities for the purpose of improving and expanding 
        the programs, including activities--
                ``(i) to further articulate a program for one or more 
            grade levels and across grade levels;
                ``(ii) to tailor a program for a particular target 
            audience; and
                ``(iii) to provide tighter integration across programs;
            ``(D) activities for the purpose of implementing new 
        Project GRAD program sites;
            ``(E) activities for the purpose of promoting greater 
        public awareness of integrated education reform services to 
        improve secondary school graduation and postsecondary 
        attendance rates for low-income students; and
            ``(F) other activities directly related to improving 
        secondary school graduation and postsecondary attendance and 
        completion rates for low-income students; and
        ``(3) use contract funds available under this section to pay--
            ``(A) the amount determined under subsection (f); and
            ``(B) costs associated with carrying out the activities and 
        providing the services, as provided in paragraph (2) of this 
        subsection.
    ``(e) Supported Programs.--
        ``(1) Designation.--The subcontractor programs referred to in 
    this subsection shall be known as Project GRAD programs.
        ``(2) Feeder patterns.--Each subcontractor shall implement a 
    Project GRAD program and shall, with the agreement of the 
    contractor--
            ``(A) identify or establish not less than one feeder 
        pattern of public schools; and
            ``(B) provide the integrated educational reform services 
        described in paragraph (3) at each identified feeder pattern.
        ``(3) Integrated education reform services.--The services 
    provided through a Project GRAD program may include--
            ``(A) research-based programs in reading, mathematics, and 
        classroom management;
            ``(B) campus-based social services programs, including a 
        systematic approach to increase family and community 
        involvement in the schools served by the Project GRAD program;
            ``(C) a postsecondary access program that includes--
                ``(i) providing postsecondary scholarships for students 
            who meet established criteria;
                ``(ii) proven approaches for increasing student and 
            family postsecondary awareness; and
                ``(iii) assistance for students in applying for higher 
            education financial aid; and
            ``(D) such other services identified by the contractor as 
        necessary to increase secondary school graduation and 
        postsecondary attendance and completion rates.
    ``(f) Use of Funds.--Of the funds made available to carry out this 
section, not more than five percent of such funds, or $4,000,000, 
whichever is less, shall be used by the contractor to pay for 
administration of the contract.
    ``(g) Contribution and Matching Requirement.--
        ``(1) In general.--The contractor shall provide to each 
    subcontractor an average of $200 for each student served by the 
    subcontractor in the Project GRAD program, adjusted to take into 
    consideration--
            ``(A) the resources or funds available in the area where 
        the subcontractor will implement the Project GRAD program; and
            ``(B) the need for the Project GRAD program in such area to 
        improve student outcomes, including reading and mathematics 
        achievement, secondary school graduation, and postsecondary 
        attendance and completion rates.
        ``(2) Matching requirement.--Each subcontractor shall provide 
    funds for the Project GRAD program in an amount that is equal to 
    the amount received by the subcontractor from the contractor. Such 
    matching funds may be provided in cash or in kind, fairly 
    evaluated.
        ``(3) Waiver authority.--The contractor may waive, in whole or 
    in part, the requirement of paragraph (2) for a subcontractor, if 
    the subcontractor--
            ``(A) demonstrates that the subcontractor would not 
        otherwise be able to participate in the program; and
            ``(B) enters into an agreement with the contractor with 
        respect to the amount to which the waiver will apply.
    ``(h) Evaluation.--
        ``(1) Evaluation by the secretary.--The Secretary shall select 
    an independent entity to evaluate, every three years, the 
    performance of students who participate in a Project GRAD program 
    under this section. The evaluation shall--
            ``(A) be conducted using a rigorous research design for 
        determining the effectiveness of the Project GRAD programs 
        funded under this section; and
            ``(B) compare reading and mathematics achievement, 
        secondary school graduation, and postsecondary attendance and 
        completion rates of students who participate in a Project GRAD 
        program funded under this section with those indicators for 
        students of similar backgrounds who do not participate in such 
        program.
        ``(2) Evaluation by contractor and subcontractors.--The 
    contractor shall require each subcontractor to prepare an in-depth 
    report of the results and the use of funds of each Project GRAD 
    program funded under this section that includes--
            ``(A) data on the reading and mathematics achievement of 
        students involved in the Project GRAD program;
            ``(B) data on secondary school graduation and postsecondary 
        attendance and completion rates; and
            ``(C) such financial reporting as required by the Secretary 
        to review the effectiveness and efficiency of the program.
        ``(3) Availability of evaluations.--Copies of any evaluation or 
    report prepared under this subsection shall be made available to--
            ``(A) the Secretary; and
            ``(B) the authorizing committees.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

           ``PART B--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

    ``SEC. 802. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.
    ``(a) Program Authorized.--From the amounts appropriated under 
subsection (f), the Secretary is authorized to award grants to States, 
on a competitive basis, to enable the States to encourage students to 
pursue a rigorous course of study, beginning in secondary school and 
continuing through the students' postsecondary education, in science, 
technology, engineering, mathematics, or a health-related field.
    ``(b) Applications.--
        ``(1) In general.--A State that desires 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. A State may submit an application to receive a grant 
    under subsection (c) or (d), or both.
        ``(2) Contents of application.--Each application shall include 
    a description of--
            ``(A) the program or programs for which the State is 
        applying;
            ``(B) if applicable, the priority set by the Governor 
        pursuant to subsection (c)(4) or (d)(3); and
            ``(C) how the State will meet the requirements of 
        subsection (e).
    ``(c) Mathematics and Science Scholars Program.--
        ``(1) Grant for scholarships.--The Secretary shall award grants 
    under this subsection to provide scholarship support to eligible 
    students.
        ``(2) Eligible students.--A student is eligible for a 
    scholarship under this subsection if the student--
            ``(A) meets the requirements of section 484(a);
            ``(B) is a full-time student in the student's first year of 
        undergraduate study; and
            ``(C) has completed a rigorous secondary school curriculum 
        in mathematics and science.
        ``(3) Rigorous curriculum.--Each participating State shall 
    determine the requirements for a rigorous secondary school 
    curriculum in mathematics and science described in paragraph 
    (2)(C).
        ``(4) Priority for scholarships.--The Governor of a State may 
    set a priority for awarding scholarships under this subsection for 
    particular eligible students, such as students attending schools in 
    high-need local educational agencies (as defined in section 200), 
    students who are from groups underrepresented in the fields of 
    mathematics, science, and engineering, students served by local 
    educational agencies that do not meet or exceed State standards in 
    mathematics and science, or other high-need students.
        ``(5) Amount and duration of scholarship.--The Secretary shall 
    award a grant under this subsection to provide scholarships--
            ``(A) in an amount that does not exceed $5,000 per student; 
        and
            ``(B) for not more than one year of undergraduate study.
    ``(d) STEM or Health-Related Scholars Program.--
        ``(1) Grant for scholarships.--The Secretary shall award grants 
    under this subsection to provide scholarship support to eligible 
    students.
        ``(2) Eligible students.--A student is eligible for scholarship 
    under this subsection if the student--
            ``(A) meets the requirements of section 484(a);
            ``(B) is a full-time student who has completed at least the 
        first year of undergraduate study;
            ``(C) is enrolled in a program of undergraduate instruction 
        leading to a bachelor's degree with a major in science, 
        technology, engineering, mathematics, or a health-related 
        field; and
            ``(D) has obtained a cumulative grade point average of at 
        least a 3.0 (or the equivalent as determined under regulation 
        prescribed by the Secretary) at the end of the most recently 
        completed term.
        ``(3) Priority for scholarships.--The Governor of a State may 
    set a priority for awarding scholarships under this subsection for 
    students agreeing to work in areas of science, technology, 
    engineering, mathematics, or health-related fields.
        ``(4) Amount and duration of scholarship.--The Secretary shall 
    award a grant under this subsection to provide scholarships--
            ``(A) in an amount that does not exceed $5,000 per student 
        for an academic year; and
            ``(B) in an aggregate amount that does not exceed $20,000 
        per student.
    ``(e) Matching Requirement.--In order to receive a grant under this 
section, a State shall provide matching funds for the scholarships 
awarded under this section in an amount equal to 50 percent of the 
Federal funds received.
    ``(f) Authorization.--There are authorized to be appropriated to 
carry out this section such sums as may be necessary for fiscal year 
2009 and each of the five succeeding fiscal years.
    ``(g) Definition.--The term `Governor' means the chief executive 
officer of a State.

  ``PART C--BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL TRAINING IN 
                 HIGH-GROWTH OCCUPATIONS OR INDUSTRIES

    ``SEC. 803. BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL TRAINING 
      IN HIGH-GROWTH OCCUPATIONS OR INDUSTRIES.
    ``(a) Purpose.--The purpose of this section is to provide grants to 
institutions of higher education partnering with employers to--
        ``(1) provide relevant job skill training in high-growth and 
    high-wage industries or occupations to nontraditional students; and
        ``(2) strengthen ties between degree credit offerings at 
    institutions of higher education and business and industry 
    workforce needs.
    ``(b) Authorization.--
        ``(1) In general.--From the amounts appropriated under 
    subsection (k), the Secretary shall award grants, on a competitive 
    basis, to eligible partnerships for the purpose provided in 
    subsection (a).
        ``(2) Duration.--The Secretary shall award grants under this 
    section for a period of not less than 36 months and not more than 
    60 months.
        ``(3) Supplement, not supplant.--Funds made available under 
    this section shall be used to supplement, and not supplant, other 
    Federal, State, and local funds available to the eligible 
    partnership for carrying out the activities described in subsection 
    (c).
    ``(c) Use of Funds.--In consultation with all of the members of an 
eligible partnership, grant funds provided under this section may be 
used to--
        ``(1) expand or create for-credit academic programs or programs 
    of training that provide relevant job skill training for high-
    growth and high-wage occupations or industries, including offerings 
    connected to registered apprenticeship programs and entrepreneurial 
    training opportunities;
        ``(2) in consultation with faculty in the appropriate 
    departments of an institution of higher education, adapt college 
    offerings to the schedules and needs of working students, such as 
    the creation of evening, weekend, modular, compressed, or distance 
    learning formats;
        ``(3) purchase equipment that will facilitate the development 
    of academic programs or programs of training that provide training 
    for high-growth and high-wage occupations or industries;
        ``(4) strengthen outreach efforts that enable students, 
    including students with limited English proficiency, to attend 
    institutions of higher education with academic programs or programs 
    of training focused on high-growth and high-wage occupations or 
    industries;
        ``(5) expand worksite learning and training opportunities, 
    including registered apprenticeships as appropriate; and
        ``(6) support other activities the Secretary determines to be 
    consistent with the purpose of this section.
    ``(d) Application.--
        ``(1) In general.--Each eligible partnership that desires a 
    grant under this section shall submit an application to the 
    Secretary at such time, in such manner, and accompanied by such 
    additional information as the Secretary may require.
        ``(2) Contents.--Each application submitted under paragraph (1) 
    shall include a description of--
            ``(A) how the eligible partnership, through the institution 
        of higher education, will provide relevant job skill training 
        for students to enter high-growth and high-wage occupations or 
        industries; and
            ``(B) how the eligible partnership has consulted with 
        employers and, where applicable, labor organizations to 
        identify local high-growth and high-wage occupations or 
        industries.
    ``(e) Award Basis.--In awarding grants under this section, the 
Secretary shall--
        ``(1) give priority to applications focused on serving 
    nontraditional students;
        ``(2) ensure an equitable distribution of grant funds under 
    this section among urban and rural areas of the United States; and
        ``(3) take into consideration the capability of an institution 
    of higher education that is participating in an eligible 
    partnership to--
            ``(A) offer one- or two-year high-quality programs of 
        instruction and job skill training for students entering a 
        high-growth and high-wage occupation or industry;
            ``(B) involve the local business community, and to place 
        graduates in employment in high-growth and high-wage 
        occupations or industries in the community; and
            ``(C) serve adult workers or displaced workers.
    ``(f) Administrative Costs.--A grantee under this section may use 
not more than five percent of the grant amount to pay administrative 
costs associated with activities funded by the grant.
    ``(g) Technical Assistance.--The Secretary shall provide technical 
assistance to grantees under this section throughout the grant period.
    ``(h) Evaluation.--The Secretary shall conduct an evaluation of the 
effectiveness of the program under this section based on performance 
standards developed in consultation with the Department of Labor, and 
shall disseminate to the public the findings of such evaluation and 
information related to promising practices developed under this 
section.
    ``(i) Report to Congress.--Not later than 36 months after the first 
grant is awarded under this section, the Comptroller General shall 
report to the authorizing committees recommendations--
        ``(1) for changes to this Act and related Acts, such as the 
    Carl D. Perkins Career and Technical Education Act of 2006 and the 
    Workforce Investment Act of 1998 (including titles I and II), to 
    help create and sustain business and industry workforce 
    partnerships at institutions of higher education; and
        ``(2) for other changes to this Act and related Acts to 
    otherwise strengthen the links between business and industry 
    workforce needs, workforce development programs, and other degree 
    credit offerings at institutions of higher education.
    ``(j) Definitions.--In this section:
        ``(1) Eligible partnership.--
            ``(A) In general.--The term `eligible partnership' means a 
        partnership that includes--
                ``(i) one or more institutions of higher education, one 
            of which serves as the fiscal agent and grant recipient for 
            the eligible partnership;
                ``(ii) except as provided in subparagraph (B), an 
            employer, group of employers, local board (as such term is 
            defined in section 101 of the Workforce Investment Act of 
            1998 (29 U.S.C. 2801)), or workforce intermediary, or any 
            combination thereof; and
                ``(iii) where applicable, one or more labor 
            organizations that represent workers locally in the 
            businesses or industries that are the focus of the 
            partnership, including as a result of such an 
            organization's representation of employees at a worksite at 
            which the partnership proposes to conduct activities under 
            this section.
            ``(B) State and local boards.--Notwithstanding subparagraph 
        (A), if an institution of higher education that is 
        participating in an eligible partnership under this section is 
        located in a State that does not operate local boards, an 
        eligible partnership may include a State board (as such term is 
        defined in section 101 of the Workforce Investment Act of 1998 
        (29 U.S.C. 2801)).
            ``(C) Rule of construction.--Nothing in this subsection 
        shall be construed to prohibit an eligible partnership that is 
        in existence on the date of enactment of the Higher Education 
        Opportunity Act from applying for a grant under this section.
        ``(2) Nontraditional student.--The term `nontraditional 
    student' means a student--
            ``(A) who is an independent student, as defined in section 
        480(d);
            ``(B) who attends an institution of higher education--
                ``(i) on less than a full-time basis;
                ``(ii) via evening, weekend, modular, or compressed 
            courses; or
                ``(iii) via distance education methods; and
            ``(C) who--
                ``(i) enrolled for the first time in an institution of 
            higher education three or more years after completing high 
            school; or
                ``(ii) works full-time.
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

          ``PART D--CAPACITY FOR NURSING STUDENTS AND FACULTY

    ``SEC. 804. CAPACITY FOR NURSING STUDENTS AND FACULTY.
    ``(a) Authorization.--From the amounts appropriated under 
subsection (f), the Secretary shall award grants to institutions of 
higher education that offer--
        ``(1) an accredited registered nursing program at the 
    baccalaureate or associate degree level to enable such program to 
    expand the faculty and facilities of such program to accommodate 
    additional students in such program; or
        ``(2) an accredited graduate-level nursing program to 
    accommodate advanced practice degrees for registered nurses or to 
    accommodate students enrolled in such program to become teachers of 
    nursing students.
    ``(b) Determination of Number of Students and Application.--Each 
institution of higher education that offers a program described in 
subsection (a) that desires to receive a grant under this section 
shall--
        ``(1) determine, for the four academic years preceding the 
    academic year for which the determination is made, the average 
    number of matriculated nursing program students, in each of the 
    institution's accredited associate, baccalaureate, or advanced 
    nursing degree programs at such institution for such academic 
    years;
        ``(2) submit an application to the Secretary at such time, in 
    such manner, and accompanied by such information as the Secretary 
    may require, including the average number in each of the 
    institution's accredited nursing programs determined under 
    paragraph (1); and
        ``(3) with respect to the partnerships described in subsection 
    (c)(2)(B), provide assurances that--
            ``(A) the individuals enrolled in the program will--
                ``(i) be registered nurses in pursuit of a master's or 
            doctoral degree in nursing; and
                ``(ii) have a contractual obligation with the hospital 
            or health facility that is in partnership with the 
            institution of higher education;
            ``(B) the hospital or health facility of employment will be 
        the clinical site for the accredited school of nursing program, 
        if the program requires a clinical site;
            ``(C) individuals enrolled in the program will--
                ``(i) maintain their employment on at least a part-time 
            basis with the hospital or health facility that allowed 
            them to participate in the program; and
                ``(ii) receive an income from the hospital or health 
            facility, as at least a part-time employee, and release 
            times or flexible schedules, to accommodate their program 
            requirements, as necessary; and
            ``(D) upon completion of the program, recipients of 
        scholarships described in subsection (c)(2)(B)(ii)(III) will be 
        required to teach for two years in an accredited school of 
        nursing for each year of support the individual received under 
        this section.
    ``(c) Grant Amount; Award Basis.--
        ``(1) Grant amount.--For each academic year after academic year 
    2009-2010, the Secretary is authorized to provide to each 
    institution of higher education awarded a grant under this section 
    an amount that is equal to $3,000 multiplied by the number by 
    which--
            ``(A) the number of matriculated nursing program students 
        at such institution for such academic year, exceeds
            ``(B) the average number determined with respect to such 
        institution under subsection (b)(1).
        ``(2) Distribution of grants among different degree programs.--
            ``(A) In general.--Subject to subparagraph (D), from the 
        funds available to award grants under this section for each 
        fiscal year, the Secretary shall--
                ``(i) use 20 percent of such funds to award grants 
            under this section to institutions of higher education for 
            the purpose of accommodating advanced practice degrees or 
            students in accredited graduate-level nursing programs;
                ``(ii) use 40 percent of such funds to award grants 
            under this section to institutions of higher education for 
            the purpose of expanding accredited registered nurse 
            programs at the baccalaureate degree level; and
                ``(iii) use 40 percent of such funds to award grants 
            under this section to institutions of higher education for 
            the purpose of expanding accredited registered nurse 
            programs at the associate degree level.
            ``(B) Optional uses of funds.--Grants awarded under this 
        section may be used to support partnerships with hospitals or 
        health facilities to--
                ``(i) improve the alignment between nursing education 
            and the emerging challenges of health care delivery by--

                    ``(I) the purchase of distance learning 
                technologies and expanding methods of delivery of 
                instruction to include alternatives to onsite learning; 
                and
                    ``(II) the collection, analysis, and dissemination 
                of data on educational outcomes and best practices 
                identified through the activities described in this 
                section; and

                ``(ii) ensure that students can earn a salary while 
            obtaining an advanced degree in nursing with the goal of 
            becoming nurse faculty by--

                    ``(I) funding release time for qualified nurses 
                enrolled in the graduate nursing program;
                    ``(II) providing for faculty salaries; or
                    ``(III) providing scholarships to qualified nurses 
                in pursuit of an advanced degree with the goal of 
                becoming faculty members in an accredited nursing 
                program.

            ``(C) Considerations in making awards.--In awarding grants 
        under this section, the Secretary shall consider the following:
                ``(i) Geographic distribution.--Providing an equitable 
            geographic distribution of such grants.
                ``(ii) Urban and rural areas.--Distributing such grants 
            to urban and rural areas.
                ``(iii) Range and type of institution.--Ensuring that 
            the activities to be assisted are developed for a range of 
            types and sizes of institutions of higher education, 
            including institutions providing alternative methods of 
            delivery of instruction in addition to on-site learning.
            ``(D) Distribution of excess funds.--If, for a fiscal year, 
        funds described in clause (i), (ii), or (iii) of subparagraph 
        (A) remain available after the Secretary awards grants under 
        this section to all applicants for the particular category of 
        accredited nursing programs described in such clause, the 
        Secretary shall use equal amounts of the remaining funds to 
        award grants under this section to applicants that applied 
        under the other categories of nursing programs.
            ``(E) Limitation.--Of the amount appropriated to carry out 
        this section, the Secretary may award not more than ten percent 
        of such amount for the optional purposes under subparagraph 
        (B).
    ``(d) Definition.--For purposes of this section:
        ``(1) Health facility.--The term `health facility' means an 
    Indian health service center, a Native Hawaiian health center, a 
    hospital, a federally qualified health center, a rural health 
    clinic, a nursing home, a home health agency, a hospice program, a 
    public health clinic, a State or local department of public health, 
    a skilled nursing facility, or an ambulatory surgical center.
        ``(2) Accredited.--The terms `accredited school of nursing' and 
    `accredited nursing program' have the meaning given those terms in 
    section 801 of the Public Health Service Act (42 U.S.C. 296).
    ``(e) Prohibition.--
        ``(1) In general.--Funds provided under this section may not be 
    used for the construction of new facilities.
        ``(2) Rule of construction.--Nothing in paragraph (1) shall be 
    construed to prohibit funds provided under this section from being 
    used for the repair or renovation of facilities.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

                 ``PART E--AMERICAN HISTORY FOR FREEDOM

    ``SEC. 805. AMERICAN HISTORY FOR FREEDOM.
    ``(a) Grants Authorized.--From the amounts appropriated under 
subsection (f), the Secretary is authorized to award three-year grants, 
on a competitive basis, to eligible institutions to establish or 
strengthen postsecondary academic programs or centers that promote and 
impart knowledge of--
        ``(1) traditional American history;
        ``(2) the history and nature of, and threats to, free 
    institutions; or
        ``(3) the history and achievements of Western civilization.
    ``(b) Definitions.--In this section:
        ``(1) Eligible institution.--The term `eligible institution' 
    means an institution of higher education as defined in section 101.
        ``(2) Free institution.--The term `free institution' means an 
    institution that emerged out of Western civilization, such as 
    democracy, constitutional government, individual rights, market 
    economics, religious freedom and religious tolerance, and freedom 
    of thought and inquiry.
        ``(3) Traditional american history.--The term `traditional 
    American history' means--
            ``(A) the significant constitutional, political, 
        intellectual, economic, and foreign policy trends and issues 
        that have shaped the course of American history; and
            ``(B) the key episodes, turning points, and leading figures 
        involved in the constitutional, political, intellectual, 
        diplomatic, and economic history of the United States.
    ``(c) Application.--
        ``(1) In general.--Each eligible institution that desires 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 reasonably require.
        ``(2) Contents.--Each application submitted under paragraph (1) 
    shall include a description of--
            ``(A) how funds made available under this section will be 
        used for the activities set forth under subsection (e), 
        including how such activities will increase knowledge with 
        respect to traditional American history, free institutions, or 
        Western civilization;
            ``(B) how the eligible institution will ensure that 
        information about the activities funded under this section is 
        widely disseminated pursuant to subsection (e)(1)(B);
            ``(C) any activities to be undertaken pursuant to 
        subsection (e)(2)(A), including identification of entities 
        intended to participate;
            ``(D) how funds made available under this section shall be 
        used to supplement and not supplant non-Federal funds available 
        for the activities described in subsection (e); and
            ``(E) such fiscal controls and accounting procedures as may 
        be necessary to ensure proper disbursement of and accounting 
        for funding made available to the eligible institution under 
        this section.
    ``(d) Award Basis.--In awarding grants under this section, the 
Secretary shall take into consideration the capability of the eligible 
institution to--
        ``(1) increase access to quality programming that expands 
    knowledge of traditional American history, free institutions, or 
    Western civilization;
        ``(2) involve personnel with strong expertise in traditional 
    American history, free institutions, or Western civilization; and
        ``(3) sustain the activities funded under this section after 
    the grant has expired.
    ``(e) Use of Funds.--
        ``(1) Required use of funds.--Funds provided under this section 
    shall be used to--
            ``(A) establish or strengthen academic programs or centers 
        focused on traditional American history, free institutions, or 
        Western civilization, which may include--
                ``(i) design and implementation of programs of study, 
            courses, lecture series, seminars, and symposia;
                ``(ii) development, publication, and dissemination of 
            instructional materials;
                ``(iii) research;
                ``(iv) support for faculty teaching in undergraduate 
            and, if applicable, graduate programs;
                ``(v) support for graduate and postgraduate 
            fellowships, if applicable; or
                ``(vi) teacher preparation initiatives that stress 
            content mastery regarding traditional American history, 
            free institutions, or Western civilization; and
            ``(B) conduct outreach activities to ensure that 
        information about the activities funded under this section is 
        widely disseminated--
                ``(i) to undergraduate students (including students 
            enrolled in teacher education programs, if applicable);
                ``(ii) to graduate students (including students 
            enrolled in teacher education programs, if applicable);
                ``(iii) to faculty;
                ``(iv) to local educational agencies; and
                ``(v) within the local community.
        ``(2) Allowable uses of funds.--Funds provided under this 
    section may be used to support--
            ``(A) collaboration with entities such as--
                ``(i) local educational agencies, for the purpose of 
            providing elementary and secondary school teachers an 
            opportunity to enhance their knowledge of traditional 
            American history, free institutions, or Western 
            civilization; and
                ``(ii) nonprofit organizations whose mission is 
            consistent with the purpose of this section, such as 
            academic organizations, museums, and libraries, for 
            assistance in carrying out activities described under 
            subsection (a); and
            ``(B) other activities that meet the purposes of this 
        section.
    ``(f) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary for fiscal year 2009 and each of the five succeeding 
fiscal years.

                      ``PART F--TEACH FOR AMERICA

    ``SEC. 806. TEACH FOR AMERICA.
    ``(a) Definitions.--For purposes of this section:
        ``(1) Grantee.--The term `grantee' means Teach For America, 
    Inc.
        ``(2) Highly qualified.--The term `highly qualified' has the 
    meaning given the term in section 9101 of the Elementary and 
    Secondary Education Act of 1965 or section 602 of the Individuals 
    with Disabilities Education Act.
        ``(3) High-need local educational agency.--The term `high-need 
    local educational agency' has the meaning given such term in 
    section 200.
    ``(b) Grants Authorized.--From the amounts appropriated under 
subsection (f), the Secretary is authorized to award a five-year grant 
to Teach For America, Inc., the national teacher corps of outstanding 
recent college graduates who commit to teach for two years in 
underserved communities in the United States, to implement and expand 
its program of recruiting, selecting, training, and supporting new 
teachers.
    ``(c) Requirements.--In carrying out the grant program under 
subsection (b), the Secretary shall enter into an agreement with the 
grantee under which the grantee agrees to use the grant funds provided 
under this section to--
        ``(1) provide highly qualified teachers to high-need local 
    educational agencies in urban and rural communities;
        ``(2) pay the costs of recruiting, selecting, training, and 
    supporting new teachers; and
        ``(3) serve a substantial number and percentage of underserved 
    students.
    ``(d) Authorized Activities.--
        ``(1) In general.--Grant funds provided under this section 
    shall be used by the grantee to carry out each of the following 
    activities:
            ``(A) Recruiting and selecting teachers through a highly 
        selective national process.
            ``(B) Providing preservice training to such teachers 
        through a rigorous summer institute that includes hands-on 
        teaching experience and significant exposure to education 
        coursework and theory.
            ``(C) Placing such teachers in schools and positions 
        designated by high-need local educational agencies as high-need 
        placements serving underserved students.
            ``(D) Providing ongoing professional development activities 
        for such teachers' first two years in the classroom, including 
        regular classroom observations and feedback, and ongoing 
        training and support.
        ``(2) Limitation.--The grantee shall use all grant funds 
    received under this section to support activities related directly 
    to the recruitment, selection, training, and support of teachers as 
    described in subsection (b), except that funds may be used for non-
    programmatic costs in accordance with subsection (f)(2).
    ``(e) Reports and Evaluations.--
        ``(1) Annual report.--The grantee shall provide to the 
    Secretary an annual report that includes--
            ``(A) data on the number and quality of the teachers 
        provided to local educational agencies through a grant under 
        this section;
            ``(B) an externally conducted analysis of the satisfaction 
        of local educational agencies and principals with the teachers 
        so provided; and
            ``(C) comprehensive data on the background of the teachers 
        chosen, the training such teachers received, the placement 
        sites of such teachers, the professional development of such 
        teachers, and the retention of such teachers.
        ``(2) Study.--
            ``(A) In general.--From funds appropriated under subsection 
        (f), the Secretary shall provide for a study that examines the 
        achievement levels of the students taught by the teachers 
        assisted under this section.
            ``(B) Student achievement gains compared.--The study shall 
        compare, within the same schools, the achievement gains made by 
        students taught by teachers who are assisted under this section 
        with the achievement gains made by students taught by teachers 
        who are not assisted under this section.
            ``(C) Requirements.--The Secretary shall provide for such a 
        study not less than once every three years, and each such study 
        shall include multiple placement sites and multiple schools 
        within placement sites.
            ``(D) Peer review standards.--Each such study shall meet 
        the peer review standards of the education research community. 
        Further, the peer review standards shall ensure that reviewers 
        are practicing researchers and have expertise in assessment 
        systems, accountability, psychometric measurement and 
        statistics, and instruction.
        ``(3) Accounting, financial reporting, and internal control 
    systems.--
            ``(A) In general.--The grantee shall contract with an 
        independent auditor to conduct a comprehensive review of the 
        grantee's accounting, financial reporting, and internal control 
        systems. Such review shall assess whether that grantee's 
        accounting, financial reporting, and internal control systems 
        are designed to--
                ``(i) provide information that is complete, accurate, 
            and reliable;
                ``(ii) reasonably detect and prevent material 
            misstatements, as well as fraud, waste, and abuse; and
                ``(iii) provide information to demonstrate the 
            grantee's compliance with related Federal programs, as 
            applicable.
            ``(B) Review requirements.--Not later than 90 days after 
        the grantee receives funds to carry out this section for the 
        first fiscal year in which funds become available to carry out 
        this section after the date of enactment of the Higher 
        Education Opportunity Act, the independent auditor shall 
        complete the review required by this paragraph.
            ``(C) Report.--Not later than 120 days after the grantee 
        receives funds to carry out this section for the first fiscal 
        year in which funds become available to carry out this section 
        after the date of enactment of the Higher Education Opportunity 
        Act, the independent auditor shall submit a report to the 
        authorizing committees and the Secretary of the findings of the 
        review required under this paragraph, including any 
        recommendations of the independent auditor, as appropriate, 
        with respect to the grantee's accounting, financial reporting, 
        and internal control systems.
    ``(f) Authorization of Appropriations.--
        ``(1) In general.--The amount authorized to be appropriated to 
    carry out this section shall not exceed--
            ``(A) $20,000,000 for fiscal year 2009;
            ``(B) $25,000,000 for fiscal year 2010; and
            ``(C) such sums as may be necessary for each of the four 
        succeeding fiscal years.
        ``(2) Limitation.--The grantee shall not use more than 5 
    percent of Federal funds made available under this section for non-
    programmatic costs to carry out this section.

               ``PART G--PATSY T. MINK FELLOWSHIP PROGRAM

    ``SEC. 807. PATSY T. MINK FELLOWSHIP PROGRAM.
    ``(a) Purpose; Designation.--
        ``(1) In general.--It is the purpose of this section to 
    provide, through eligible institutions, a program of fellowship 
    awards to assist highly qualified minorities and women to acquire 
    the doctoral degree, or highest possible degree available, in 
    academic areas in which such individuals are underrepresented for 
    the purpose of enabling such individuals to enter the higher 
    education professoriate.
        ``(2) Designation.--Each recipient of a fellowship award from 
    an eligible institution receiving a grant under this section shall 
    be known as a `Patsy T. Mink Graduate Fellow'.
    ``(b) Eligible Institution.--In this section, the term `eligible 
institution' means an institution of higher education, or a consortium 
of such institutions, that offers a program of postbaccalaureate study 
leading to a graduate degree.
    ``(c) Program Authorized.--
        ``(1) Grants by secretary.--
            ``(A) In general.--From the amounts appropriated under 
        subsection (f), the Secretary shall award grants to eligible 
        institutions to enable such institutions to make fellowship 
        awards to individuals in accordance with the provisions of this 
        section.
            ``(B) Priority consideration.--In awarding grants under 
        this section, the Secretary shall consider the eligible 
        institution's prior experience in producing doctoral degree, or 
        highest possible degree available, holders who are minorities 
        and women, and shall give priority consideration in making 
        grants under this section to those eligible institutions with a 
        demonstrated record of producing minorities and women who have 
        earned such degrees.
        ``(2) Applications.--
            ``(A) In general.--An eligible institution that desires 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.
            ``(B) Applications made on behalf.--The following entities 
        may submit an application on behalf of an eligible institution:
                ``(i) A graduate school or department of such 
            institution.
                ``(ii) A graduate school or department of such 
            institution in collaboration with an undergraduate college 
            or school of such institution.
                ``(iii) An organizational unit within such institution 
            that offers a program of postbaccalaureate study leading to 
            a graduate degree, including an interdisciplinary or an 
            interdepartmental program.
            ``(C) Partnership.--In developing a grant application and 
        carrying out the grant activities authorized under this 
        section, an eligible institution may partner with a nonprofit 
        organization with a demonstrated record of helping minorities 
        and women earn postbaccalaureate degrees.
        ``(3) Selection of applications.--In awarding grants under 
    paragraph (1), the Secretary shall--
            ``(A) take into account--
                ``(i) the number and distribution of minority and 
            female faculty nationally;
                ``(ii) the current and projected need for highly 
            trained individuals in all areas of the higher education 
            professoriate; and
                ``(iii) the present and projected need for highly 
            trained individuals in academic career fields in which 
            minorities and women are underrepresented in the higher 
            education professoriate; and
            ``(B) consider the need to prepare a large number of 
        minorities and women generally in academic career fields of 
        high national priority, especially in areas in which such 
        individuals are traditionally underrepresented in college and 
        university faculty.
        ``(4) Distribution and amounts of grants.--
            ``(A) Equitable distribution.--In awarding grants under 
        this section, the Secretary shall, to the maximum extent 
        feasible, ensure an equitable geographic distribution of awards 
        and an equitable distribution among public and private eligible 
        institutions that apply for grants under this section and that 
        demonstrate an ability to achieve the purpose of this section.
            ``(B) Special rule.--To the maximum extent practicable, the 
        Secretary shall use not less than 30 percent of the amount 
        appropriated pursuant to subsection (f) to award grants to 
        eligible institutions that are eligible for assistance under 
        title III or title V, or to consortia of eligible institutions 
        that include at least one eligible institution that is eligible 
        for assistance under title III or title V.
            ``(C) Allocation.--In awarding grants under this section, 
        the Secretary shall allocate appropriate funds to those 
        eligible institutions whose applications indicate an ability to 
        significantly increase the numbers of minorities and women 
        entering the higher education professoriate and that commit 
        institutional resources to the attainment of the purpose of 
        this section.
            ``(D) Number of fellowship awards.--An eligible institution 
        that receives a grant under this section shall make not less 
        than ten fellowship awards.
            ``(E) Insufficient funds.--If the amount appropriated is 
        not sufficient to permit all grantees under this section to 
        provide the minimum number of fellowships required by 
        subparagraph (D), the Secretary may, after awarding as many 
        grants to support the minimum number of fellowships as such 
        amount appropriated permits, award grants that do not require 
        the grantee to award the minimum number of fellowships required 
        by such subparagraph.
        ``(5) Institutional allowance.--
            ``(A) In general.--
                ``(i) Number of allowances.--In awarding grants under 
            this section, the Secretary shall pay to each eligible 
            institution awarded a grant, for each individual awarded a 
            fellowship by such institution under this section, an 
            institutional allowance.
                ``(ii) Amount.--Except as provided in subparagraph (C), 
            for academic year 2009-2010 and succeeding academic years, 
            an institutional allowance under this paragraph shall be in 
            an amount equal to the amount of institutional allowance 
            made to an institution of higher education under section 
            715 for such academic year.
            ``(B) Use of funds.--Institutional allowances may be 
        expended at the discretion of the eligible institution and may 
        be used to provide, except as prohibited under subparagraph 
        (D), academic support and career transition services for 
        individuals awarded fellowships by such institution.
            ``(C) Reduction.--The institutional allowance paid under 
        subparagraph (A) shall be reduced by the amount the eligible 
        institution charges and collects from a fellowship recipient 
        for tuition and other expenses as part of the recipient's 
        instructional program.
            ``(D) Use for overhead prohibited.--Funds made available 
        under this section may not be used for general operational 
        overhead of the academic department or institution receiving 
        funds under this section.
    ``(d) Fellowship Recipients.--
        ``(1) Authorization.--An eligible institution that receives a 
    grant under this section shall use the grant funds to make 
    fellowship awards to minorities and women who are enrolled at such 
    institution in a doctoral degree program, or program for the 
    highest possible degree available, and--
            ``(A) intend to pursue a career in instruction at--
                ``(i) an institution of higher education (as the term 
            is defined in section 101);
                ``(ii) an institution of higher education (as the term 
            is defined in section 102(a)(1)); and
                ``(iii) a proprietary institution of higher education 
            (as the term is defined in section 102(b)); and
            ``(B) sign an agreement with the Secretary agreeing--
                ``(i) to begin employment at an institution described 
            in subparagraph (A) not later than three years after 
            receiving the doctoral degree or highest possible degree 
            available, which three-year period may be extended by the 
            Secretary for extraordinary circumstances; and
                ``(ii) to be employed by such institution for one year 
            for each year of fellowship assistance received under this 
            section.
        ``(2) Repayment for failure to comply.--In the event that any 
    recipient of a fellowship under this section fails or refuses to 
    comply with the agreement signed pursuant to paragraph (1)(B), the 
    sum of the amounts of any fellowship received by such recipient 
    shall, upon a determination of such a failure or refusal to comply, 
    be treated as a Federal Direct Unsubsidized Stafford Loan under 
    part D of title IV, and shall be subject to repayment, together 
    with interest thereon accruing from the date of the grant award, in 
    accordance with terms and conditions specified by the Secretary in 
    regulations under this section.
        ``(3) Waiver and modification.--
            ``(A) Regulations.--The Secretary shall promulgate 
        regulations setting forth criteria to be considered in granting 
        a waiver for the service requirement under paragraph (1)(B).
            ``(B) Content.--The criteria under subparagraph (A) shall 
        include whether compliance with the service requirement by the 
        fellowship recipient would be--
                ``(i) inequitable and represent an extraordinary 
            hardship; or
                ``(ii) deemed impossible because the individual is 
            permanently and totally disabled at the time of the waiver 
            request.
        ``(4) Amount of fellowship awards.--Fellowship awards under 
    this section shall consist of a stipend in an amount equal to the 
    level of support provided to fellows under the National Science 
    Foundation Graduate Research Fellowship Program, except that such 
    stipend shall be adjusted as necessary so as not to exceed the 
    fellow's tuition and fees or demonstrated need (as determined by 
    the institution of higher education where the graduate student is 
    enrolled), whichever is greater.
        ``(5) Academic progress required.--An individual student shall 
    not be eligible to receive a fellowship award--
            ``(A) except during periods in which such student is 
        enrolled, and such student is maintaining satisfactory academic 
        progress in, and devoting essentially full time to, study or 
        research in the pursuit of the degree for which the fellowship 
        support was awarded; and
            ``(B) if the student is engaged in gainful employment, 
        other than part-time employment in teaching, research, or 
        similar activity determined by the eligible institution to be 
        consistent with and supportive of the student's progress toward 
        the appropriate degree.
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to require an eligible institution that receives a grant 
under this section--
        ``(1) to grant a preference to or to differentially treat any 
    applicant for a faculty position as a result of the institution's 
    participation in the program under this section; or
        ``(2) to hire a Patsy T. Mink Fellow who completes this program 
    and seeks employment at such institution.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

      ``PART H--IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

    ``SEC. 808. IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS.
    ``(a) In General.--From the amounts appropriated under subsection 
(c), the Secretary shall award a grant to one nonprofit organization 
described in subsection (b) to enable the nonprofit organization--
        ``(1) to make publicly available the year-to-year postsecondary 
    education enrollment rate trends of secondary school students, 
    disaggregated by secondary school, in compliance with the Family 
    Education Rights and Privacy Act of 1974;
        ``(2) to identify not less than 50 urban local educational 
    agencies and five States with significant rural populations, each 
    serving a significant population of low-income students, and to 
    carry out a comprehensive assessment in the agencies and States of 
    the factors known to contribute to improved postsecondary education 
    enrollment rates, which factors shall include--
            ``(A) the local educational agency's and State's leadership 
        strategies and capacities;
            ``(B) the secondary school curriculum and class offerings 
        of the local educational agency and State;
            ``(C) the professional development used by the local 
        educational agency and the State to assist teachers, guidance 
        counselors, and administrators in supporting the transition of 
        secondary students to postsecondary education;
            ``(D) secondary school student attendance and other factors 
        demonstrated to be associated with enrollment into 
        postsecondary education;
            ``(E) the use of data systems by the local educational 
        agency and the State to measure postsecondary education 
        enrollment rates and the incentives in place to motivate the 
        efforts of faculty and students to improve student and 
        schoolwide outcomes; and
            ``(F) strategies to mobilize student leaders to build a 
        college-bound culture; and
        ``(3) to provide comprehensive services to improve the 
    schoolwide postsecondary education enrollment rates of each of not 
    less than ten local educational agencies and States, with the 
    federally funded portion of each project declining by not less than 
    20 percent each year beginning in the second year of the 
    comprehensive services, that--
            ``(A) participated in the needs assessment described in 
        paragraph (2); and
            ``(B) demonstrated a willingness and commitment to 
        improving the postsecondary education enrollment rates of the 
        local educational agency or State, respectively.
    ``(b) Grant Recipient Criteria.--The recipient of the grant awarded 
under subsection (a) shall be a nonprofit organization with 
demonstrated expertise--
        ``(1) in increasing schoolwide postsecondary enrollment rates 
    in low-income communities nationwide by providing curriculum, 
    training, and technical assistance to secondary school staff and 
    student peer influencers; and
        ``(2) in a postsecondary education transition data management 
    system.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

``PART I--EARLY CHILDHOOD EDUCATION PROFESSIONAL DEVELOPMENT AND CAREER 
                               TASK FORCE

    ``SEC. 811. PURPOSE.
    ``The purposes of this part are--
        ``(1) to improve the quality of the early childhood education 
    workforce by creating a statewide early childhood education 
    professional development and career task force for early childhood 
    education program staff, directors, administrators, and faculty; 
    and
        ``(2) to create--
            ``(A) a coherent system of core competencies, pathways to 
        qualifications, credentials, degrees, quality assurances, 
        access, and outreach, for early childhood education program 
        staff, directors, administrators, and faculty that is linked to 
        compensation commensurate with experience and qualifications;
            ``(B) articulation agreements that enable early childhood 
        education professionals to transition easily among degrees; and
            ``(C) compensation initiatives for individuals working in 
        an early childhood education program that reflect the 
        individuals' credentials, degrees, and experience.
    ``SEC. 812. DEFINITION OF EARLY CHILDHOOD EDUCATION PROGRAM.
    ``In this part, the term `early childhood education program' 
means--
        ``(1) a Head Start program or an Early Head Start program 
    carried out under the Head Start Act (42 U.S.C. 9831 et seq.), 
    including a migrant or seasonal Head Start program or an Indian 
    Head Start program;
        ``(2) a State licensed or regulated child care program; or
        ``(3) a State prekindergarten program or a program authorized 
    under section 619 or part C of the Individuals with Disabilities 
    Education Act, that serves children from birth through age six and 
    that addresses the children's cognitive (including language, early 
    literacy, and pre-numeracy), social, emotional, and physical 
    development.
    ``SEC. 813. GRANTS AUTHORIZED.
    ``(a) In General.--From the amounts appropriated under section 818, 
the Secretary is authorized to award grants to States in accordance 
with the provisions of this part to enable such States--
        ``(1) to establish a State Task Force described in section 814; 
    and
        ``(2) to support activities of the State Task Force described 
    in section 815.
    ``(b) Competitive Basis.--Grants under this part shall be awarded 
on a competitive basis.
    ``(c) Equitable Geographic Distribution.--In awarding grants under 
this part, the Secretary shall take into consideration providing an 
equitable geographic distribution of such grants.
    ``(d) Duration.--Grants under this part shall be awarded for a 
period of five years.
    ``SEC. 814. STATE TASK FORCE ESTABLISHMENT.
    ``(a) State Task Force Established.--The Governor of a State 
receiving a grant under this part shall establish, or designate an 
existing entity to serve as, the State Early Childhood Education 
Professional Development and Career Task Force (hereafter in this part 
referred to as the `State Task Force').
    ``(b) Membership.--The State Task Force shall include a 
representative of a State agency, an institution of higher education 
(including an associate or a baccalaureate degree granting institution 
of higher education), an early childhood education program, a nonprofit 
early childhood organization, a statewide early childhood workforce 
scholarship or supplemental initiative, the State Head Start 
collaboration director, and any other entity or individual the Governor 
determines appropriate.
    ``SEC. 815. STATE TASK FORCE ACTIVITIES.
    ``(a) Activities.--The State Task Force shall--
        ``(1) coordinate and communicate regularly with the State 
    Advisory Council on Early Care and Education (hereafter in this 
    part referred to as `State Advisory Council') or a similar State 
    entity charged with creating a comprehensive system of early care 
    and education in the State, for the purposes of--
            ``(A) integrating recommendations for early childhood 
        professional development and career activities into the plans 
        of the State Advisory Council; and
            ``(B) assisting in the implementation of professional 
        development and career activities that are consistent with the 
        plans described in subparagraph (A);
        ``(2) conduct a review of opportunities for and barriers to 
    high-quality professional development, training, and higher 
    education degree programs, in early childhood development and 
    learning, including a periodic statewide survey concerning the 
    demographics of individuals working in early childhood education 
    programs in the State, which survey shall include information 
    disaggregated by--
            ``(A) race, gender, and ethnicity;
            ``(B) compensation levels;
            ``(C) type of early childhood education program setting;
            ``(D) specialized knowledge of child development;
            ``(E) years of experience in an early childhood education 
        program;
            ``(F) attainment of--
                ``(i) academic credit for coursework;
                ``(ii) an academic degree;
                ``(iii) a credential;
                ``(iv) licensure; or
                ``(v) certification in early childhood education; and
            ``(G) specialized knowledge in the education of children 
        with limited English proficiency and students with 
        disabilities; and
        ``(3) develop a plan for a comprehensive statewide professional 
    development and career system for individuals working in early 
    childhood education programs or for early childhood education 
    providers, which plan may include--
            ``(A) methods of providing outreach to early childhood 
        education program staff, directors, and administrators, 
        including methods for how outreach is provided to non-English 
        speaking providers, in order to enable the providers to be 
        aware of opportunities and resources under the statewide plan;
            ``(B) developing a unified data collection and 
        dissemination system for early childhood education training, 
        professional development, and higher education programs;
            ``(C) increasing the participation of early childhood 
        educators in high-quality training and professional development 
        by assisting in paying the costs of enrollment in and 
        completion of such training and professional development 
        courses;
            ``(D) increasing the participation of early childhood 
        educators in undergraduate and graduate education programs 
        leading to degrees in early childhood education by providing 
        assistance to pay the costs of enrollment in and completion of 
        such programs, which assistance--
                ``(i) shall only be provided to an individual who--

                    ``(I) in the case of an individual pursuing an 
                undergraduate or graduate degree, enters into an 
                agreement under which the individual agrees to work, 
                for a reasonable number of years after receiving such a 
                degree, in an early childhood education program that is 
                located in a low-income area; and
                    ``(II) has a family income equal to or less than 
                the annually adjusted national median family income as 
                determined by the Bureau of the Census; and

                ``(ii) shall be provided in an amount that does not 
            exceed $17,500;
            ``(E) supporting professional development activities and a 
        career lattice for a variety of early childhood professional 
        roles with varying professional qualifications and 
        responsibilities for early childhood education personnel, 
        including strategies to enhance the compensation of such 
        personnel;
            ``(F) supporting articulation agreements between two- and 
        four-year public and private institutions of higher education 
        and mechanisms to transform other training, professional 
        development, and experience into academic credit;
            ``(G) developing mentoring and coaching programs to support 
        new educators in and directors of early childhood education 
        programs;
            ``(H) providing career development advising with respect to 
        the field of early childhood education, including informing an 
        individual regarding--
                ``(i) entry into and continuing education requirements 
            for professional roles in the field;
                ``(ii) available financial assistance for postsecondary 
            education; and
                ``(iii) professional development and career advancement 
            in the field;
            ``(I) enhancing the capacity and quality of faculty and 
        coursework in postsecondary programs that lead to an associate, 
        baccalaureate, or graduate degree in early childhood education;
            ``(J) consideration of the availability of on-line graduate 
        level professional development offered by institutions of 
        higher education with experience and demonstrated expertise in 
        establishing programs in child development, in order to improve 
        the skills and expertise of individuals working in early 
        childhood education programs; and
            ``(K) developing or enhancing a system of quality assurance 
        with respect to the early childhood education professional 
        development and career system, including standards or 
        qualifications for individuals and entities who offer training 
        and professional development in early childhood education.
    ``(b) Public Hearings.--The State Task Force shall hold public 
hearings and provide an opportunity for public comment on the 
activities described in the statewide plan described in subsection 
(a)(3).
    ``(c) Periodic Review.--The State Task Force shall meet 
periodically to review implementation of the statewide plan and to 
recommend any changes to the statewide plan the State Task Force 
determines necessary.
    ``SEC. 816. STATE APPLICATION AND REPORT.
    ``(a) In General.--Each State desiring a grant under this part 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Secretary may 
reasonably require. Each such application shall include a description 
of--
        ``(1) the membership of the State Task Force;
        ``(2) the activities for which the grant assistance will be 
    used;
        ``(3) other Federal, State, local, and private resources that 
    will be available to support the activities of the State Task Force 
    described in section 815;
        ``(4) the availability within the State of training, early 
    childhood educator preparation, professional development, 
    compensation initiatives, and career systems, related to early 
    childhood education; and
        ``(5) the resources available within the State for such 
    training, educator preparation, professional development, 
    compensation initiatives, and career systems.
    ``(b) Report to the Secretary.--Not later than two years after 
receiving a grant under this part, a State shall submit a report to the 
Secretary that shall describe--
        ``(1) other Federal, State, local, and private resources that 
    will be used in combination with a grant under this section to 
    develop or expand the State's early childhood education 
    professional development and career activities;
        ``(2) the ways in which the State Advisory Council (or similar 
    State entity) will coordinate the various State and local 
    activities that support the early childhood education professional 
    development and career system; and
        ``(3) the ways in which the State Task Force will use funds 
    provided under this part and carry out the activities described in 
    section 815.
    ``SEC. 817. EVALUATIONS.
    ``(a) State Evaluation.--Each State receiving a grant under this 
part shall--
        ``(1) evaluate the activities that are assisted under this part 
    in order to determine--
            ``(A) the effectiveness of the activities in achieving 
        State goals;
            ``(B) the impact of a career lattice for individuals 
        working in early childhood education programs;
            ``(C) the impact of the activities on licensing or 
        regulating requirements for individuals in the field of early 
        childhood development;
            ``(D) the impact of the activities, and the impact of the 
        statewide plan described in section 815(a)(3), on the quality 
        of education, professional development, and training related to 
        early childhood education programs that are offered in the 
        State;
            ``(E) the change in compensation and retention of 
        individuals working in early childhood education programs 
        within the State resulting from the activities; and
            ``(F) the impact of the activities on the demographic 
        characteristics of individuals working in early childhood 
        education programs; and
        ``(2) submit a report at the end of the grant period to the 
    Secretary regarding the evaluation described in paragraph (1).
    ``(b) Secretary's Evaluation.--Not later than September 30, 2013, 
the Secretary, in consultation with the Secretary of Health and Human 
Services, shall prepare and submit to the authorizing committees an 
evaluation of the State reports submitted under subsection (a)(2).
    ``SEC. 818. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

 ``PART J--IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS 
  EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE HAWAIIAN STUDENTS

    ``SEC. 819. IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND 
      MATHEMATICS EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE 
      HAWAIIAN STUDENTS.
    ``(a) Purpose.--The purposes of this section are--
        ``(1) to develop or expand programs for the development of 
    professionals in the fields of science, technology, engineering, 
    and mathematics; and
        ``(2) to focus resources on meeting the educational and 
    cultural needs of Alaska Natives and Native Hawaiians.
    ``(b) Definitions.--In this section:
        ``(1) Alaska native.--The term `Alaska Native' has the meaning 
    given such term in section 7306 of the Elementary and Secondary 
    Education Act of 1965.
        ``(2) Eligible partnership.--The term `eligible partnership' 
    means a partnership that includes--
            ``(A) one or more colleges, schools, or departments of 
        engineering;
            ``(B) one or more colleges of science or mathematics;
            ``(C) one or more institutions of higher education that 
        offer two-year degrees; and
            ``(D) one or more private entities that--
                ``(i) conduct career awareness activities showcasing 
            local technology professionals;
                ``(ii) encourage students to pursue education in 
            science, technology, engineering, and mathematics from 
            elementary school through postsecondary education, and 
            careers in those fields, with the assistance of local 
            technology professionals;
                ``(iii) develop internships, apprenticeships, and 
            mentoring programs in partnership with relevant industries; 
            and
                ``(iv) assist with placement of interns and 
            apprentices.
        ``(3) Institution of higher education.--The term `institution 
    of higher education' has the meaning given such term in section 
    101(a)
        ``(4) Native hawaiian.--The term `Native Hawaiian' has the 
    meaning given the term in section 7207 of the Elementary and 
    Secondary Education Act of 1965.
    ``(c) Grant Authorized.--From the amounts appropriated to carry out 
this section under subsection (i), the Secretary is authorized to award 
a grant to an eligible partnership to enable the eligible partnership 
to expand programs for the development of science, technology, 
engineering, or mathematics professionals, from elementary school 
through postsecondary education, including existing programs for Alaska 
Native and Native Hawaiian students.
    ``(d) Uses of Funds.--Grant funds under this section shall be used 
for one or more of the following:
        ``(1) Development or implementation of cultural, social, or 
    educational transition programs to assist students to transition 
    into college life and academics in order to increase such students' 
    retention rates in the fields of science, technology, engineering, 
    or mathematics, with a focus on Alaska Native or Native Hawaiian 
    students.
        ``(2) Development or implementation of academic support or 
    supplemental educational programs to increase the graduation rates 
    of students in the fields of science, technology, engineering, or 
    mathematics, with a focus on Alaska Native and Native Hawaiian 
    students.
        ``(3) Development or implementation of internship programs, 
    carried out in coordination with educational institutions and 
    private entities, to prepare students for careers in the fields of 
    science, technology, engineering, or mathematics, with a focus on 
    programs that serve Alaska Native or Native Hawaiian students.
        ``(4) Such other activities as are consistent with the purpose 
    of this section.
    ``(e) Application.--Each eligible partnership that desires 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.
    ``(f) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an eligible partnership that, on the 
day before the date of enactment of the Higher Education Opportunity 
Act, provides one or more programs in which 30 percent or more of the 
program participants are Alaska Native or Native Hawaiian.
    ``(g) Period of Grant.--A grant under this section shall be awarded 
for a period of five years.
    ``(h) Evaluation and Report.--Each eligible partnership that 
receives a grant under this section shall conduct an evaluation to 
determine the effectiveness of the programs funded under the grant and 
shall provide a report regarding the evaluation to the Secretary not 
later than six months after the end of the grant period.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

  ``PART K--PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE AND SUCCESS

    ``SEC. 820. PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE AND 
      SUCCESS.
    ``(a) Grants Authorized.--From the amounts appropriated under 
subsection (i), the Secretary is authorized to award grants in 
accordance with this section, on a competitive basis, to eligible 
institutions to enable the institutions to develop programs to increase 
the persistence and success of low-income college students.
    ``(b) Applications.--
        ``(1) In general.--An eligible institution seeking 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. An eligible institution may submit an 
    application to receive a grant under subsection (c) or (d) or both.
        ``(2) Evaluation condition.--Each eligible institution seeking 
    a grant under this section shall agree to participate in the 
    evaluation described in subsection (f).
        ``(3) Priority for replication of evidence-based policies and 
    practices.--In awarding grants for the program under subsection 
    (d), the Secretary shall give priority to applications submitted by 
    eligible institutions that propose to replicate policies and 
    practices that have proven effective in increasing persistence and 
    degree completion by low-income students or students in need of 
    developmental education.
    ``(c) Pilot Program To Increase Persistence and Success in 
Community Colleges.--
        ``(1) Definitions.--In this subsection:
            ``(A) Eligible institution.--The term `eligible 
        institution' means an institution of higher education, as 
        defined in section 101, that provides a one- or two-year 
        program of study leading to a degree or certificate.
            ``(B) Eligible student.--The term `eligible student' means 
        a student who--
                ``(i) is eligible to receive assistance under section 
            401;
                ``(ii) is enrolled at least half-time;
                ``(iii) is not younger than age 19;
                ``(iv) is the parent of at least one dependent child, 
            which dependent child is age 18 or younger;
                ``(v) has a secondary school diploma or its recognized 
            equivalent; and
                ``(vi) does not have a degree or certificate from an 
            institution of higher education.
        ``(2) Uses of funds.--
            ``(A) Support.--The Secretary shall award grants under this 
        subsection to eligible institutions to enable such institutions 
        to provide additional monetary and nonmonetary support to 
        eligible students to enable the eligible students to maintain 
        enrollment and complete degree or certificate programs.
            ``(B) Required uses.--Each eligible institution receiving a 
        grant under this subsection shall use the grant funds--
                ``(i) to provide scholarships in accordance with 
            paragraph (3); and
                ``(ii) to provide counseling services in accordance 
            with paragraph (4) .
            ``(C) Allowable uses of funds.--Grant funds provided under 
        this subsection may be used--
                ``(i) to conduct outreach to make students aware of the 
            scholarships and counseling services available under this 
            subsection and to encourage the students to participate in 
            the program assisted under this subsection; and
                ``(ii) to provide incentives of $20 or less to 
            applicants who complete the process of applying for 
            assistance under this subsection, as compensation for the 
            student's time.
        ``(3) Scholarship requirements.--
            ``(A) In general.--Each scholarship awarded under this 
        subsection shall--
                ``(i) be awarded for one academic year consisting of 
            two semesters or the equivalent;
                ``(ii) require the student to maintain, during the 
            scholarship period, at least half-time enrollment and at 
            least a 2.0 grade point average or the equivalent;
                ``(iii) be awarded in the amount of $1,000 for each of 
            two semesters (prorated for quarters or other equivalents), 
            or $2,000 for an academic year;
                ``(iv) not exceed the student's cost of attendance, as 
            defined in section 472; and
                ``(v) be paid, for each of the two semesters, in 
            increments of--

                    ``(I) $250 upon enrollment (prorated for quarters 
                or other equivalents);
                    ``(II) $250 upon passing midterm examinations or 
                comparable assessments (prorated for quarters or other 
                equivalents); and
                    ``(III) $500 upon passing courses (prorated for 
                quarters or other equivalents).

            ``(B) Number.--An eligible institution may award an 
        eligible student not more than two scholarships under this 
        subsection.
        ``(4) Counseling services.--
            ``(A) In general.--Each eligible institution receiving a 
        grant under this subsection shall use the grant funds to 
        provide students at the institution with a counseling staff 
        dedicated to students participating in the program under this 
        subsection. Each such counselor shall--
                ``(i) have a caseload of less than 125 students;
                ``(ii) use a proactive, team-oriented approach to 
            counseling;
                ``(iii) hold a minimum of two meetings with each 
            student each semester; and
                ``(iv) provide referrals to and follow-up with other 
            student services staff, including financial aid and career 
            services.
            ``(B) Counseling services availability.--The counseling 
        services provided under this subsection shall be available to 
        participating students during the daytime and evening hours.
    ``(d) Student Success Grant Pilot Program.--
        ``(1) Definitions.--
            ``(A) Eligible institution.--In this subsection, the term 
        `eligible institution' means an institution of higher education 
        in which, during the three-year period preceding the year in 
        which the institution is applying for a grant under this 
        subsection, an average of not less than 50 percent of the 
        institution's entering first-year students are assessed as 
        needing developmental courses to bring reading, writing, or 
        mathematics skills up to college level.
            ``(B) Eligible student.--In this subsection, the term 
        `eligible student' means a student who--
                ``(i) is eligible to receive assistance under section 
            401;
                ``(ii) is a first-year student at the time of entering 
            the program;
                ``(iii) is assessed as needing developmental education 
            to bring reading, writing, or mathematics skills up to 
            college level; and
                ``(iv) is selected by an eligible institution to 
            participate in the program.
        ``(2) Student success grant amount.--The Secretary shall award 
    grants under this subsection to eligible institutions in an amount 
    equal to $1,500 multiplied by the number of students the 
    institution selects to participate in the program in such year. An 
    institution shall not select more than 200 students to participate 
    in the program under this subsection during such year.
        ``(3) Required uses.--An eligible institution that receives a 
    grant under this subsection shall use the grant funds to assign a 
    student success coach to each first-year student participating in 
    the program to provide intensive career and academic advising, 
    ongoing personal help in navigating college services (such as 
    financial aid and registration), and assistance in connecting to 
    community resources that can help students overcome family and 
    personal challenges to success. Student success coaches--
            ``(A) shall work with not more than 50 new students during 
        any academic period;
            ``(B) may be employees of academic departments, student 
        services offices, community-based organizations, or other 
        entities as determined appropriate by the institution; and
            ``(C) shall meet with each eligible student selected for 
        the program before registration for courses.
        ``(4) Allowable uses.--An eligible institution that receives a 
    grant under this subsection may use the grant funds to provide 
    services and program innovations for students participating in the 
    program, including the following:
            ``(A) College and career success courses provided at no 
        charge to participating students. These courses may cover 
        college success topics, including how to take notes, how to 
        study, how to take tests, and how to budget time, and may also 
        include a substantial career exploration component. 
        Institutions may use such courses to help students develop a 
        college and career success plan, so that by the end of the 
        first semester the students have a clear sense of their career 
        goals and what classes to take to achieve such goals.
            ``(B) Work-study jobs with private employers in the 
        students' fields of study.
            ``(C) Learning communities that ensure that students 
        participating in the program are clustered together for at 
        least two courses beginning in the first semester after 
        enrolling and have other opportunities to create and maintain 
        bonds that allow them to provide academic and social support to 
        each other.
            ``(D) Curricular redesign, which may include such 
        innovations as blended or accelerated remediation classes that 
        help student success grant recipients to attain college-level 
        reading, writing, or math skills (or a combination thereof) 
        more rapidly than traditional remediation formats allow, and 
        intensive skills refresher classes, offered prior to each 
        semester, to help students who have tested into remedial 
        coursework to reach entry level assessment scores for the 
        postsecondary programs they wish to enter.
            ``(E) Instructional support, such as learning labs, 
        supplemental instruction, and tutoring.
            ``(F) Assistance with support services, such as child care 
        and transportation.
        ``(5) Required non-federal share.--Each institution 
    participating in the program under this subsection shall provide a 
    non-Federal share of 25 percent of the amount of grant to carry out 
    the activities of the program. The non-Federal share under this 
    subsection may be provided in cash or in kind.
    ``(e) Period of Grant.--The Secretary may award a grant under 
subsection (c) or (d) of this section for a period of five years.
    ``(f) Technical Assistance and Evaluation.--
        ``(1) Contractor.--From the funds appropriated under this 
    section, the Secretary shall enter into a contract with one or more 
    private, nonprofit entities to provide technical assistance to 
    grantees and to conduct the evaluations required under paragraph 
    (3).
        ``(2) Evaluations.--The evaluations required under paragraph 
    (3) shall be conducted by entities that are capable of designing 
    and carrying out independent evaluations that identify the impact 
    of the activities carried out by eligible institutions under this 
    subpart on improving persistence and success of student 
    participants under this subpart.
        ``(3) Conduct of evaluations.--The Secretary shall conduct an 
    evaluation of the impact of the persistence and success grant 
    programs as follows:
            ``(A) Program to increase persistence in community 
        colleges.--The evaluation of the program under subsection (c) 
        shall be conducted using a random assignment research design 
        with the following requirements:
                ``(i) When students are recruited for the program, all 
            students will be told about the program and the evaluation.
                ``(ii) Baseline data will be collected from all 
            applicants for assistance under subsection (c).
                ``(iii) Students will be assigned randomly to two 
            groups, which will consist of--

                    ``(I) a program group that will receive the 
                scholarship and the additional counseling services; and
                    ``(II) a control group that will receive whatever 
                regular financial aid and counseling services are 
                available to all students at the institution of higher 
                education.

            ``(B) Student success grant program.--Eligible institutions 
        receiving a grant to carry out the program under subsection (d) 
        shall work with the evaluator to track persistence and 
        completion outcomes for students in such program, specifically 
        the proportion of these students who take and complete 
        developmental education courses, the proportion who take and 
        complete college-level coursework, and the proportion who 
        complete certificates and degrees. The data shall be broken 
        down by gender, race, ethnicity, and age and the evaluator 
        shall assist institutions in analyzing these data to compare 
        program participants to comparable nonparticipants, using 
        statistical techniques to control for differences in the 
        groups.
    ``(g) Report.--The Secretary shall--
        ``(1) provide a report to the authorizing committees that 
    includes the evaluation and information on best practices and 
    lessons learned during the pilot programs described in this 
    section; and
        ``(2) disseminate the report to the public by making the report 
    available on the Department's website.
    ``(h) Supplement Not Supplant.--Funds made available under this 
section shall be use to supplement and not supplant other Federal, 
State, and local funds available to the institution to carrying out the 
activities described in subsections (c) and (d).
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years. The 
Secretary may use not more than two percent of the amounts appropriated 
to provide the technical assistance and conduct the evaluations 
required under subsection (f).

        ``PART L--STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT

    ``SEC. 821. STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT.
    ``(a) Grants Authorized.--
        ``(1) In general.--From the amounts appropriated under 
    subsection (g), the Secretary is authorized to award grants, on a 
    competitive basis, to institutions of higher education or consortia 
    of institutions of higher education to enable institutions of 
    higher education or consortia to pay the Federal share of the cost 
    of carrying out the authorized activities described in subsection 
    (c).
        ``(2) Consultation with the attorney general and the secretary 
    of homeland security.--Where appropriate, the Secretary shall award 
    grants under this section in consultation with the Attorney General 
    and the Secretary of Homeland Security.
        ``(3) Duration.--The Secretary shall award each grant under 
    this section for a period of two years.
        ``(4) Limitation on institutions and consortia.--An institution 
    of higher education or consortium shall be eligible for only one 
    grant under this section.
    ``(b) Federal Share; Non-Federal Share.--
        ``(1) In general.--The Federal share of the activities 
    described in subsection (c) shall be 50 percent.
        ``(2) Non-federal share.--An institution of higher education or 
    consortium that receives a grant under this section shall provide 
    the non-Federal share, which may be provided from State and local 
    resources dedicated to emergency preparedness and response.
    ``(c) Authorized Activities.--Each institution of higher education 
or consortium receiving a grant under this section may use the grant 
funds to carry out one or more of the following:
        ``(1) Developing and implementing a state-of-the-art emergency 
    communications system for each campus of an institution of higher 
    education or consortium, in order to contact students via cellular, 
    text message, or other state-of-the-art communications methods when 
    a significant emergency or dangerous situation occurs. An 
    institution or consortium using grant funds to carry out this 
    paragraph shall also, in coordination with the appropriate State 
    and local emergency management authorities--
            ``(A) develop procedures that students, employees, and 
        others on a campus of an institution of higher education or 
        consortium will be directed to follow in the event of a 
        significant emergency or dangerous situation; and
            ``(B) develop procedures the institution of higher 
        education or consortium shall follow to inform, within a 
        reasonable and timely manner, students, employees, and others 
        on a campus in the event of a significant emergency or 
        dangerous situation, which procedures shall include the 
        emergency communications system described in this paragraph.
        ``(2) Supporting measures to improve safety at the institution 
    of higher education or consortium, such as--
            ``(A) security assessments;
            ``(B) security training of personnel and students at the 
        institution of higher education or consortium;
            ``(C) where appropriate, coordination of campus 
        preparedness and response efforts with local law enforcement, 
        local emergency management authorities, and other agencies, to 
        improve coordinated responses in emergencies among such 
        entities;
            ``(D) establishing a hotline that allows a student or staff 
        member at an institution or consortium to report another 
        student or staff member at the institution or consortium who 
        the reporting student or staff member believes may be a danger 
        to the reported student or staff member or to others; and
            ``(E) acquisition and installation of access control, video 
        surveillance, intrusion detection, and perimeter security 
        technologies and systems.
        ``(3) Coordinating with appropriate local entities for the 
    provision of mental health services for students and staff of the 
    institution of higher education or consortium, including mental 
    health crisis response and intervention services for students and 
    staff affected by a campus or community emergency.
    ``(d) Application.--Each institution of higher education or 
consortium desiring a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    ``(e) Technical Assistance.--The Secretary shall coordinate 
technical assistance provided by State and local emergency management 
agencies, the Department of Homeland Security, and other agencies as 
appropriate, to institutions of higher education or consortia that 
request assistance in developing and implementing the activities 
assisted under this section.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part such sums as may be necessary for 
fiscal year 2009 and each of the five succeeding fiscal years.
    ``SEC. 822. MODEL EMERGENCY RESPONSE POLICIES, PROCEDURES, AND 
      PRACTICES.
    ``The Secretary, in consultation with the Attorney General and the 
Secretary of Homeland Security, shall continue to--
        ``(1) advise institutions of higher education on model 
    emergency response policies, procedures, and practices; and
        ``(2) disseminate information concerning those policies, 
    procedures, and practices.
    ``SEC. 823. PREPARATION FOR FUTURE DISASTERS PLAN BY THE SECRETARY.
    ``The Secretary shall continue to coordinate with the Secretary of 
Homeland Security and other appropriate agencies to develop and 
maintain procedures to address the preparedness, response, and recovery 
needs of institutions of higher education in the event of a natural or 
manmade disaster with respect to which the President has declared a 
major disaster or emergency (as such terms are defined in section 824).
    ``SEC. 824. EDUCATION DISASTER AND EMERGENCY RELIEF LOAN PROGRAM.
    ``(a) Program Authorized.--The Secretary, in consultation with the 
Secretary of Homeland Security, is authorized to establish an Education 
Disaster and Emergency Relief Loan Program for institutions of higher 
education impacted by a major disaster or emergency declared by the 
President.
    ``(b) Use of Assistance.--The Secretary shall, subject to the 
availability of appropriations, provide loans under this section to 
institutions of higher education after the declaration of a major 
disaster or emergency by the President. Loan funds provided under this 
section may be used for construction, replacement, renovation, and 
operations costs resulting from a major disaster or emergency declared 
by the President.
    ``(c) Application Requirements.--To be considered for a loan under 
this section, an institution of higher education shall--
        ``(1) submit a financial statement and other appropriate data, 
    documentation, or evidence requested by the Secretary that 
    indicates that the institution incurred losses resulting from the 
    impact of a major disaster or emergency declared by the President, 
    and the monetary amount of such losses;
        ``(2) demonstrate that the institution had appropriate 
    insurance policies prior to the major disaster or emergency and 
    filed claims, as appropriate, related to the major disaster or 
    emergency; and
        ``(3) demonstrate that the institution attempted to minimize 
    the cost of any losses by pursuing collateral source compensation 
    from the Federal Emergency Management Agency prior to seeking a 
    loan under this section, except that an institution of higher 
    education shall not be required to receive collateral source 
    compensation from the Federal Emergency Management Agency prior to 
    being eligible for a loan under this section.
    ``(d) Audit.--The Secretary may audit a financial statement 
submitted under subsection (c) and an institution of higher education 
shall provide any information that the Secretary determines necessary 
to conduct such an audit.
    ``(e) Reduction in Loan Amounts.--To determine the amount of a loan 
to make available to an institution of higher education under this 
section, the Secretary shall calculate the monetary amount of losses 
incurred by such institution as a result of a major disaster or 
emergency declared by the President, and shall reduce such amount by 
the amount of collateral source compensation the institution has 
already received from insurance, the Federal Emergency Management 
Agency, and the Small Business Administration.
    ``(f) Establishment of Loan Program.--Prior to disbursing any loans 
under this section, the Secretary shall prescribe regulations that 
establish the Education Disaster and Emergency Relief Loan Program, 
including--
        ``(1) terms for the loan program;
        ``(2) procedures for an application for a loan;
        ``(3) minimum requirements for the loan program and for 
    receiving a loan, including--
            ``(A) online forms to be used in submitting request for a 
        loan;
            ``(B) information to be included in such forms; and
            ``(C) procedures to assist in filing and pursing a loan; 
        and
        ``(4) any other terms and conditions the Secretary may 
    prescribe after taking into consideration the structure of other 
    existing capital financing loan programs under this Act.
    ``(g) Definitions.--In this section:
        ``(1) Institution affected by a gulf hurricane disaster.--The 
    term `institution affected by a Gulf hurricane disaster' means an 
    institution of higher education that--
            ``(A) is located in an area affected by a Gulf hurricane 
        disaster; and
            ``(B) is able to demonstrate that the institution--
                ``(i) incurred physical damage resulting from the 
            impact of a Gulf hurricane disaster; and
                ``(ii) was not able to fully reopen in existing 
            facilities or to fully reopen to the pre-hurricane levels 
            for 30 days or more on or after August 29, 2005.
        ``(2) Area affected by a gulf hurricane disaster; gulf 
    hurricane disaster.--The terms `area affected by a Gulf hurricane 
    disaster' and `Gulf hurricane disaster' have the meanings given 
    such terms in section 209 of the Higher Education Hurricane Relief 
    Act of 2005 (Public Law 109-148, 119 Stat. 2808).
        ``(3) Emergency.--The term `emergency' has the meaning given 
    such term in section 102(1) of the Robert T. Stafford Disaster 
    Relief and Emergency Assistance Act (42 U.S.C. 5122(1)).
        ``(4) Institutions of higher education.--The term `institution 
    of higher education' has the meaning given such term in section 
    101.
        ``(5) Major disaster.--The term `major disaster' has the 
    meaning given the term in section 102(2) of the Robert T. Stafford 
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).
    ``(h) Effective Date.--Loans provided to institutions of higher 
education pursuant to this section shall be available only with respect 
to major disasters or emergencies declared by the President that occur 
after the date of the enactment of the Higher Education Opportunity 
Act, except that loans may be provided pursuant to this section to an 
institution affected by a Gulf hurricane disaster with respect to such 
disaster.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.
    ``SEC. 825. GUIDANCE ON MENTAL HEALTH DISCLOSURES FOR STUDENT 
      SAFETY.
    ``(a) Guidance.--The Secretary shall continue to provide guidance 
that clarifies the role of institutions of higher education with 
respect to the disclosure of education records, including to a parent 
or legal guardian of a dependent student, in the event that such 
student demonstrates that the student poses a significant risk of harm 
to himself or herself or to others, including a significant risk of 
suicide, homicide, or assault. Such guidance shall further clarify that 
an institution of higher education that, in good faith, discloses 
education records or other information in accordance with the 
requirements of this Act and section 444 of the General Education 
Provisions Act (the Family Educational Rights and Privacy Act of 1974) 
shall not be liable to any person for that disclosure.
    ``(b) Information to Congress.--The Secretary shall provide an 
update to the authorizing committees on the Secretary's activities 
under subsection (a) not later than 180 days after the date of 
enactment of the Higher Education Opportunity Act.
    ``SEC. 826. RULE OF CONSTRUCTION.
    ``Nothing in this part shall be construed--
        ``(1) to provide a private right of action to any person to 
    enforce any provision of this section;
        ``(2) to create a cause of action against any institution of 
    higher education or any employee of the institution for any civil 
    liability; or
        ``(3) to affect section 444 of the General Education Provisions 
    Act (the Family Educational Rights and Privacy Act of 1974) or the 
    regulations issued under section 264 of the Health Insurance 
    Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
    note).

                         ``PART M--LOW TUITION

    ``SEC. 830. INCENTIVES AND REWARDS FOR LOW TUITION.
    ``(a) Rewards for Low Tuition.--
        ``(1) Grants.--From funds made available under subsection (e), 
    the Secretary shall award grants to institutions of higher 
    education that, for academic year 2009-2010 or any succeeding 
    academic year--
            ``(A) have an annual tuition and fee increase, expressed as 
        a percentage change, for the most recent academic year for 
        which satisfactory data is available, that is in the lowest 20 
        percent of such increases for each category described in 
        subsection (b);
            ``(B) are public institutions of higher education that have 
        tuition and fees that are in the lowest quartile of for 
        institutions in each category described in subsection (b)(1), 
        (b)(4), or (b)(7); or
            ``(C) are public institutions of higher education that have 
        a tuition and fee increase of less than $600 for a first-time, 
        full-time undergraduate student.
        ``(2) Use of funds.--Funds awarded to an institution of higher 
    education under paragraph (1) shall be distributed by the 
    institution in the form of need-based grant aid to students who are 
    eligible for Federal Pell Grants, except that no student shall 
    receive an amount under this section that would cause the amount of 
    total financial aid received by such student to exceed the cost of 
    attendance of the institution.
    ``(b) Categories of Institutions.--The categories of institutions 
described in subsection (a) shall be the following:
        ``(1) four-year public institutions of higher education;
        ``(2) four-year private, nonprofit institutions of higher 
    education;
        ``(3) four-year private, for-profit institutions of higher 
    education;
        ``(4) two-year public institutions of higher education;
        ``(5) two-year private, nonprofit institutions of higher 
    education;
        ``(6) two-year private, for-profit institutions of higher 
    education;
        ``(7) less than two-year public institutions of higher 
    education;
        ``(8) less than two-year private, nonprofit institutions of 
    higher education; and
        ``(9) less than two-year private, for-profit institutions of 
    higher education.
    ``(c) Rewards for Guaranteed Tuition.--
        ``(1) Bonus.--For each institution of higher education that the 
    Secretary determines complies with the requirements of paragraph 
    (2) or (3) of this subsection, the Secretary shall provide to such 
    institution a bonus amount. Such institution shall award the bonus 
    amount in the form of need-based aid first to students who are 
    eligible for Federal Pell Grants who were in attendance at the 
    institution during the award year that such institution satisfied 
    the eligibility criteria for maintaining low tuition and fees, then 
    to students who are eligible for Federal Pell Grants who were not 
    in attendance at the institution during such award year.
        ``(2) Four-year institutions.--An institution of higher 
    education that provides a program of instruction for which it 
    awards a bachelor's degree complies with the requirements of this 
    paragraph if--
            ``(A) for a public institution of higher education, such 
        institution's tuition and fees are in the lowest quartile of 
        institutions in the same category as described under subsection 
        (b); or
            ``(B) for any institution of higher education, such 
        institution guarantees that for any academic year (or the 
        equivalent) beginning on or after July 1, 2009, and for each of 
        the four succeeding continuous academic years, the tuition and 
        fees charged to an undergraduate student will not exceed--
                ``(i) for a public institution of higher education, 
            $600 per year for a full-time undergraduate student; or
                ``(ii) for any other institution of higher education--

                    ``(I) the amount that the student was charged for 
                an academic year at the time the student first enrolled 
                in the institution of higher education, plus
                    ``(II) the percentage change in tuition and fees at 
                the institution for the three most recent academic 
                years for which data is available, multiplied by the 
                amount determined under subclause (I).

        ``(3) Less-than four-year institutions.--An institution of 
    higher education that does not provide a program of instruction for 
    which it awards a bachelor's degree complies with the requirements 
    of this paragraph if--
            ``(A) for a public institution of higher education, such 
        institution's tuition is in the lowest quartile of institutions 
        in the same category as described under subsection (b); or
            ``(B) for any institution of higher education, such 
        institution guarantees that for any academic year (or the 
        equivalent) beginning on or after July 1, 2009, and for each of 
        the 1.5 succeeding continuous academic years, the tuition and 
        fees charged to an undergraduate student will not exceed--
                ``(i) for a public institution of higher education, 
            $600 per year for a full-time undergraduate student; or
                ``(ii) for any other institution of higher education--

                    ``(I) the amount that the student was charged for 
                an academic year at the time the student first enrolled 
                in the institution of higher education, plus
                    ``(II) the percentage change in tuition and fees at 
                the institution for the three most recent academic 
                years for which data is available, multiplied by the 
                amount determined under subclause (I).

    ``(d) Definitions.--In this section, the terms `tuition and fees' 
and `net price' have the meaning given to such terms in section 132 of 
this Act.
    ``(e) Authorization.--There are authorized to be appropriated to 
carry out this section such sums as may be necessary for fiscal year 
2009 and each of the five succeeding fiscal years.

                    ``PART N--COOPERATIVE EDUCATION

    ``SEC. 831. STATEMENT OF PURPOSE; DEFINITION.
    ``(a) Purpose.--It is the purpose of this part to award grants to 
institutions of higher education or consortia of such institutions to 
encourage such institutions to develop and make available to their 
students work experience that will aid such students in future careers 
and will enable such students to support themselves financially while 
in school.
    ``(b) Definition.--In this part the term `cooperative education' 
means the provision of alternating or parallel periods of academic 
study and public or private employment to give students work 
experiences related to their academic or occupational objectives and an 
opportunity to earn the funds necessary for continuing and completing 
their education.
    ``SEC. 832. RESERVATIONS.
    ``(a) Reservations.--Of the amount appropriated to carry out this 
part in each fiscal year--
        ``(1) not less than 50 percent shall be available for awarding 
    grants to institutions of higher education and consortia of such 
    institutions described in section 833(a)(1)(A) for cooperative 
    education under section 833;
        ``(2) not less than 25 percent shall be available for awarding 
    grants to institutions of higher education described in section 
    833(a)(1)(B) for cooperative education under section 833;
        ``(3) not to exceed 11 percent shall be available for 
    demonstration projects under paragraph (1) of section 834(a);
        ``(4) not to exceed 11 percent shall be available for training 
    and resource centers under paragraph (2) of section 834(a); and
        ``(5) not to exceed 3 percent shall be available for research 
    under paragraph (3) of section 834(a).
    ``(b) Availability of Appropriations.--Amounts appropriated under 
this part shall not be used for the payment of compensation of students 
for employment by employers participating in a program under this part.
    ``SEC. 833. GRANTS FOR COOPERATIVE EDUCATION.
    ``(a) Grants Authorized.--
        ``(1) In general.--The Secretary is authorized, from the amount 
    available to carry out this section under section 835 in each 
    fiscal year and in accordance with the provisions of this part--
            ``(A) to award grants to institutions of higher education 
        or consortia of such institutions that have not received a 
        grant under this paragraph in the ten-year period preceding the 
        date for which a grant under this section is requested to pay 
        the Federal share of the cost of planning, establishing, 
        expanding, or carrying out programs of cooperative education by 
        such institutions or consortia of institutions; and
            ``(B) to award grants to institutions of higher education 
        that are operating an existing cooperative education program as 
        determined by the Secretary to pay the Federal share of the 
        cost of planning, establishing, expanding, or carrying out 
        programs of cooperative education by such institutions.
        ``(2) Program requirement.--Cooperative education programs 
    assisted under this section shall provide alternating or parallel 
    periods of academic study and of public or private employment, 
    giving students work experience related to their academic or 
    occupational objectives and the opportunity to earn the funds 
    necessary for continuing and completing their education.
        ``(3) Amount of grants.--
            ``(A) The amount of each grant awarded pursuant to 
        paragraph (1)(A) to any institution of higher education or 
        consortia of such institutions in any fiscal year shall not 
        exceed $500,000.
            ``(B)(i) Except as provided in clauses (ii) and (iii), the 
        Secretary shall award grants in each fiscal year to each 
        institution of higher education described in paragraph (1)(B) 
        that has an application approved under subsection (b) in an 
        amount that bears the same ratio to the amount reserved 
        pursuant to section 832(a)(2) for such fiscal year as the 
        number of unduplicated students placed in cooperative education 
        jobs during the preceding fiscal year by such institution of 
        higher education (other than cooperative education jobs under 
        section 834 and as determined by the Secretary) bears to the 
        total number of all such students placed in such jobs during 
        the preceding fiscal year by all such institutions.
            ``(ii) No institution of higher education shall receive a 
        grant pursuant to paragraph (1)(B) in any fiscal year in an 
        amount that exceeds 25 percent of such institution's 
        cooperative education program's personnel and operating budget 
        for the preceding fiscal year.
            ``(iii) The minimum annual grant amount that an institution 
        of higher education is eligible to receive under paragraph 
        (1)(B) is $1,000 and the maximum annual grant amount is 
        $75,000.
        ``(4) Limitation.--The Secretary shall not award grants 
    pursuant to subparagraphs (A) and (B) of paragraph (1) to the same 
    institution of higher education or consortia of such institution in 
    any one fiscal year.
        ``(5) Uses.--Grants awarded under paragraph (1)(B) shall be 
    used exclusively--
            ``(A) to expand the quality of and participation in a 
        cooperative education program;
            ``(B) for outreach to potential participants in new 
        curricular areas; and
            ``(C) for outreach to potential participants including 
        underrepresented and nontraditional populations.
    ``(b) Applications.--Each institution of higher education or 
consortium of such institutions desiring to receive a grant under this 
section shall submit an application to the Secretary at such time and 
in such manner as the Secretary shall prescribe. Each such application 
shall--
        ``(1) set forth the program or activities for which a grant is 
    authorized under this section;
        ``(2) specify each portion of such program or activities which 
    will be performed by a nonprofit organization or institution other 
    than the applicant, and the amount of grant funds to be used for 
    such program or activities;
        ``(3) provide that the applicant will expend, during the fiscal 
    year for which the grant is awarded for the purpose of such program 
    or activities, not less than the amount expended for such purpose 
    during the previous fiscal year;
        ``(4) describe the plans which the applicant will carry out to 
    assure, and contain a formal statement of the institution's 
    commitment that assures, that the applicant will continue the 
    cooperative education program beyond the five-year period of 
    Federal assistance described in subsection (c)(1) at a level that 
    is not less than the total amount expended for such program during 
    the first year such program was assisted under this section;
        ``(5) provide that, in the case of an institution of higher 
    education that provides a two-year program that is acceptable for 
    full credit toward a bachelor's degree, the cooperative education 
    program will be available to students who are certificate or 
    associate degree candidates and who carry at least one-half of the 
    normal full-time academic workload;
        ``(6) provide that the applicant will--
            ``(A) make such reports as may be necessary to ensure that 
        the applicant is complying with the provisions of this section, 
        including reports for the second and each succeeding fiscal 
        year for which the applicant receives a grant with respect to 
        the impact of the cooperative education program in the previous 
        fiscal year, including--
                ``(i) the number of unduplicated student applicants in 
            the cooperative education program;
                ``(ii) the number of unduplicated students placed in 
            cooperative education jobs;
                ``(iii) the number of employers who have hired 
            cooperative education students;
                ``(iv) the income for students derived from working in 
            cooperative education jobs; and
                ``(v) the increase or decrease in the number of 
            unduplicated students placed in cooperative education jobs 
            in each fiscal year compared to the previous fiscal year; 
            and
            ``(B) keep such records as may be necessary to ensure that 
        the applicant is complying with the provisions of this part, 
        including the notation of cooperative education employment on 
        the student's transcript;
        ``(7) describe the extent to which programs in the academic 
    disciplines for which the application is made have satisfactorily 
    met the needs of public and private sector employers;
        ``(8) describe the extent to which the institution is committed 
    to extending cooperative education on an institution-wide basis for 
    all students who can benefit;
        ``(9) describe the plans that the applicant will carry out to 
    evaluate the applicant's cooperative education program at the end 
    of the grant period;
        ``(10) provide for such fiscal control and fund accounting 
    procedures as may be necessary to ensure proper disbursement of, 
    and accounting for, Federal funds paid to the applicant under this 
    part;
        ``(11) demonstrate a commitment to serving underserved 
    populations at the institution; and
        ``(12) include such other information as may be necessary to 
    carry out the provisions of this part.
    ``(c) Duration of Grants; Federal Share.--
        ``(1) Duration of grants.--No individual institution of higher 
    education may receive, individually or as a participant in a 
    consortium of such institutions--
            ``(A) a grant pursuant to subsection (a)(1)(A) for more 
        than five fiscal years; or
            ``(B) a grant pursuant to subsection (a)(1)(B) for more 
        than five fiscal years.
        ``(2) Federal share.--The Federal share of a grant under 
    subsection (a)(1)(A) may not exceed--
            ``(A) 85 percent of the cost of carrying out the program or 
        activities described in the application in the first year the 
        applicant receives a grant under this section;
            ``(B) 70 percent of such cost in the second such year;
            ``(C) 55 percent of such cost in the third such year;
            ``(D) 40 percent of such cost in the fourth such year; and
            ``(E) 25 percent of such cost in the fifth such year.
        ``(3) Special rule.--Notwithstanding any other provision of 
    law, the Secretary may not waive the provisions of paragraphs (1) 
    and (2).
    ``(d) Maintenance of Effort.--If the Secretary determines that a 
recipient of funds under this section has failed to maintain the fiscal 
effort described in subsection (b)(3), then the Secretary may elect not 
to make grant payments under this section to such recipient.
    ``(e) Factors for Special Consideration of Applications.--
        ``(1) In general.--In approving applications under this 
    section, the Secretary shall give special consideration to 
    applications from institutions of higher education or consortia of 
    such institutions for programs that show the greatest promise of 
    success because of--
            ``(A) the extent to which programs in the academic 
        discipline with respect to which the application is made have 
        satisfactorily met the needs of public and private sector 
        employers;
            ``(B) the strength of the commitment of the institution of 
        higher education or consortium of such institutions to 
        cooperative education as demonstrated by the plans and 
        formalized institutional commitment statement which such 
        institution or consortium has made to continue the program 
        after the termination of Federal financial assistance;
            ``(C) the extent to which the institution or consortium of 
        institutions is committed to extending cooperative education 
        for students who can benefit; and
            ``(D) such other factors as are consistent with the 
        purposes of this section.
        ``(2) Additional special consideration.--The Secretary shall 
    also give special consideration to applications from institutions 
    of higher education or consortia of such institutions that 
    demonstrate a commitment to serving underserved populations 
    attending such institutions.
    ``SEC. 834. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND 
      RESOURCE CENTERS; AND RESEARCH.
    ``(a) Authorization.--From the amounts appropriated under section 
835, the Secretary is authorized, in accordance with the provisions of 
this section, to make grants and enter into contracts--
        ``(1) from the amounts available in each fiscal year under 
    section 832(a)(3), for the conduct of demonstration projects 
    designed to demonstrate or determine the effectiveness of 
    innovative methods of cooperative education;
        ``(2) from the amounts available in each fiscal year under 
    section 832(a)(4), for the conduct of training and resource centers 
    designed to--
            ``(A) train personnel in the field of cooperative 
        education;
            ``(B) improve materials used in cooperative education 
        programs if such improvement is conducted in conjunction with 
        other activities described in this paragraph;
            ``(C) provide technical assistance to institutions of 
        higher education to increase the potential of the institution 
        to continue to conduct a cooperative education program without 
        Federal assistance;
            ``(D) encourage model cooperative education programs that 
        furnish education and training in occupations in which there is 
        a national need;
            ``(E) support partnerships under which an institution 
        carrying out a comprehensive cooperative education program 
        joins with one or more institutions of higher education in 
        order to--
                ``(i) assist the institution that is not the 
            institution carrying out the cooperative education program 
            to develop and expand an existing program of cooperative 
            education; or
                ``(ii) establish and improve or expand comprehensive 
            cooperative education programs; and
            ``(F) encourage model cooperative education programs in the 
        fields of science and mathematics for women and minorities who 
        are underrepresented in such fields; and
        ``(3) from the amounts available in each fiscal year under 
    section 832(a)(5), for the conduct of research relating to 
    cooperative education.
    ``(b) Administrative Provision.--
        ``(1) In general.--To carry out this section, the Secretary 
    may--
            ``(A) make grants to or contracts with institutions of 
        higher education or consortia of such institutions; and
            ``(B) make grants to or contracts with other public or 
        private nonprofit agencies or organizations, whenever such 
        grants or contracts will contribute to the objectives of this 
        section.
        ``(2) Limitation.--
            ``(A) Contracts with institutions of higher education.--The 
        Secretary may use not more than three percent of the amount 
        appropriated to carry out this section in each fiscal year to 
        enter into contracts described in paragraph (1)(A).
            ``(B) Contracts with other agencies or organizations.--The 
        Secretary may use not more than three percent of the amount 
        appropriated to carry out this section in each fiscal year to 
        enter into contracts described in paragraph (1)(B).
    ``(c) Supplement Not Supplant.--A recipient of a grant or contract 
under this section may use the funds provided only to supplement funds 
made available from non-Federal sources to carry out the activities 
supported by such grant or contract, and in no case to supplant such 
funds from non-Federal sources.
    ``SEC. 835. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

                  ``PART O--COLLEGE PARTNERSHIP GRANTS

    ``SEC. 841. COLLEGE PARTNERSHIP GRANTS AUTHORIZED.
    ``(a) Grants Authorized.--From the amount appropriated to carry out 
this section, the Secretary shall award grants to eligible partnerships 
for the purposes of developing and implementing articulation 
agreements.
    ``(b) Eligible Partnerships.--For purposes of this part, an 
eligible partnership shall include at least two institutions of higher 
education, or a system of institutions of higher education, and may 
include either or both of the following:
        ``(1) A consortia of institutions of higher education.
        ``(2) A State higher education agency.
    ``(c) Priority.--The Secretary shall give priority to eligible 
partnerships that--
        ``(1) are located in a State that has employed strategies 
    described in section 486A(d); or
        ``(2) include--
            ``(A) one or more junior or community colleges (as defined 
        by section 312(f)) that award associate's degrees; and
            ``(B) one or more institutions of higher education that 
        offer a baccalaureate or post-baccalaureate degree not awarded 
        by the institutions described in subparagraph (A) with which it 
        is partnered.
    ``(d) Mandatory Use of Funds.--Grants awarded under this part shall 
be used for--
        ``(1) the development of policies and programs to expand 
    opportunities for students to earn bachelor's degrees, by 
    facilitating the transfer of academic credits between institutions 
    and expanding articulation and guaranteed transfer agreements 
    between institutions of higher education, including through common 
    course numbering and general education core curriculum;
        ``(2) academic program enhancements; and
        ``(3) programs to identify and remove barriers that inhibit 
    student transfers, including technological and informational 
    programs.
    ``(e) Optional Use of Funds.--Grants awarded under this part may be 
used for--
        ``(1) support services to students participating in the 
    program, such as tutoring, mentoring, and academic and personal 
    counseling; and
        ``(2) any service that facilitates the transition of students 
    between the partner institutions.
    ``(f) Prohibition.--No funds provided under this section shall be 
used to financially compensate an institution for the purposes of 
entering into an articulation agreement or for accepting students 
transferring into such institution.
    ``(g) Applications.--Any eligible partnership that desires to 
obtain a grant under this section shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information or assurances as the Secretary may require.
    ``(h) Definition.--For purposes of this section, the term 
`articulation agreement' means an agreement between institutions of 
higher education that specifies the acceptability of courses in 
transfer toward meeting specific degree requirements.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

                       ``PART P--JOBS TO CAREERS

    ``SEC. 851. GRANTS TO CREATE BRIDGES FROM JOBS TO CAREERS.
    ``(a) Purpose.--The purpose of this section is to provide grants on 
a competitive basis to institutions of higher education for the purpose 
of improving developmental education to help students move more rapidly 
into for-credit occupational courses and into better jobs that may 
require a certificate or degree.
    ``(b) Authorization of Program.--From amounts appropriated to carry 
out this section, the Secretary shall award grants, on a competitive 
basis, to institutions of higher education, as defined in section 
101(a), to create workforce bridge programs between developmental 
courses and for-credit courses in occupational certificate programs 
that are articulated to degree programs. Such workforce bridge programs 
shall focus on--
        ``(1) improving developmental education, including English 
    language instruction, by customizing developmental education to 
    student career goals; and
        ``(2) helping students move rapidly from developmental 
    coursework into for-credit occupational courses and through program 
    completion.
    ``(c) Application.--An institution of higher education desiring a 
grant under this section shall submit an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may reasonably require.
    ``(d) Priorities.--The Secretary shall give priority to 
applications that--
        ``(1) are from institutions of higher education in which not 
    less than 50 percent of the institution's entering first-year 
    students who are subject to mandatory assessment are assessed as 
    needing developmental courses to bring reading, writing, or 
    mathematics skills up to college level; and
        ``(2) propose to replicate practices that have proven effective 
    with adults, or propose to collaborate with adult education 
    providers.
    ``(e) Required Activity.--An institution of higher education that 
receives a grant under this section shall use the grant funds to create 
workforce bridge programs to customize developmental education 
curricula, including English language instruction, to reflect the 
content of for-credit occupational certificate or degree programs, or 
clusters of such programs, in which developmental education students 
are enrolled or plan to enroll. Such workforce bridge programs shall 
integrate the curricula and the instruction of the developmental and 
college-level coursework.
    ``(f) Permissible Activities.--An institution of higher education 
that receives a grant under this section may use the grant funds to 
carry out one or more of the following activities:
        ``(1) Designing and implementing innovative ways to improve 
    retention in and completion of developmental education courses, 
    including enrolling students in cohorts, accelerating course 
    content, dually enrolling students in developmental and college-
    level courses, tutoring, providing counseling and other supportive 
    services, and giving small, material incentives for attendance and 
    performance.
        ``(2) In consultation with faculty in the appropriate 
    departments, reconfiguring courses offered on-site during standard 
    academic terms for modular, compressed, or other alternative 
    schedules, or for distance-learning formats, to meet the needs of 
    working adults.
        ``(3) Developing counseling strategies that address the needs 
    of students in remedial education courses, and including counseling 
    students on career options and the range of programs available, 
    such as certificate programs that are articulated to degree 
    programs and programs designed to facilitate transfer to four-year 
    institutions of higher education.
        ``(4) Improving the quality of teaching in remedial courses 
    through professional development, reclassification of such teaching 
    positions, or other means the institution of higher education 
    determines appropriate.
        ``(5) Any other activities the institution of higher education 
    and the Secretary determine will promote retention of, and 
    completion by, students attending institutions of higher education.
    ``(g) Grant Period.--Grants made under this section shall be for a 
period of not less than three years and not more than five years.
    ``(h) Technical Assistance.--The Secretary shall provide technical 
assistance to recipients of, and applicants for, grants under this 
section.
    ``(i) Report and Summary.--Each institution of higher education 
that receives a grant under this section shall report to the Secretary 
on the effectiveness of the program in enabling students to move 
rapidly from developmental coursework into for-credit occupational 
courses and through program completion. The Secretary shall summarize 
the reports, identify best practices, and disseminate the information 
from such summary and identification to the public.
    ``(j) Authorization of Appropriations.--There are authorized to 
carry out this section such sums as may be necessary for fiscal year 
2009 and each of the five succeeding fiscal years.

   ``PART Q--RURAL DEVELOPMENT GRANTS FOR RURAL-SERVING COLLEGES AND 
                              UNIVERSITIES

    ``SEC. 861. GRANTS TO RURAL-SERVING INSTITUTIONS OF HIGHER 
      EDUCATION.
    ``(a) Purposes.--The purposes of this section are--
        ``(1) to increase enrollment and graduation rates of secondary 
    school graduates and nontraditional students from rural areas at 
    two-year and four-year institutions of higher education, and their 
    articulation from two-year degree programs into four-year degree 
    programs; and
        ``(2) to promote economic growth and development in rural 
    America through partnership grants to consortia of rural-serving 
    institutions of higher education, local educational agencies, and 
    regional employers.
    ``(b) Definitions.--For the purposes of this section:
        ``(1) Rural-serving institution of higher education.--The term 
    `rural-serving institution of higher education' means an 
    institution of higher education that primarily serves rural areas.
        ``(2) Rural area.--The term `rural area' means an area that is 
    defined, identified, or otherwise recognized as rural by a 
    governmental agency of the State in which the area is located.
        ``(3) Nontraditional student.--The term `nontraditional 
    student' means an individual who--
            ``(A) delays enrollment in an institution of higher 
        education by three or more years after secondary school 
        graduation;
            ``(B) attends an institution of higher education part-time; 
        or
            ``(C) attends an institution of higher education and--
                ``(i) works full-time;
                ``(ii) is an independent student, as defined in section 
            480;
                ``(iii) has one or more dependents other than a spouse;
                ``(iv) is a single parent; or
                ``(v) does not have a secondary school diploma or the 
            recognized equivalent of such a diploma.
        ``(4) Regional employer.--The term `regional employer' means an 
    employer within a rural area.
    ``(c) Partnership.--
        ``(1) Required partners.--A rural-serving institution of higher 
    education, or a consortium of rural-serving institutions of higher 
    education, that receives a grant under this section shall carry out 
    the activities of the grant in partnership with--
            ``(A) one or more local educational agencies serving a 
        rural area; and
            ``(B) one or more regional employers or local boards (as 
        such term is defined in section 101 of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2801)) serving a rural area.
        ``(2) Optional partners.--A rural-serving institution of higher 
    education, or a consortium of rural-serving institutions of higher 
    education, that receives a grant under this section, may carry out 
    the activities of the grant in partnership with--
            ``(A) an educational service agency (as defined in section 
        9101 of the Elementary and Secondary Education Act of 1965); or
            ``(B) a nonprofit organization with demonstrated expertise 
        in rural education at the secondary and postsecondary levels.
    ``(d) Grants Authorized.--
        ``(1) In general.--From amounts made available under subsection 
    (g), the Secretary is authorized to award grants, on a competitive 
    basis, to eligible rural-serving institutions of higher education 
    or a consortium of such institutions, to carry out the activities 
    described in subsection (f).
        ``(2) Duration.--A grant awarded under this section shall be 
    awarded for a period not to exceed three years.
        ``(3) Maximum and minimum grants.--No grant awarded under this 
    section shall be less than $200,000.
        ``(4) Special considerations.--In awarding grants under this 
    section, the Secretary shall give special consideration to 
    applications that demonstrate the most potential and propose the 
    most promising and innovative approaches for--
            ``(A) increasing the percentage of graduates of rural 
        secondary schools attending rural-serving institutions of 
        higher education;
            ``(B) meeting the employment needs of regional employers 
        with graduates of rural-serving institutions of higher 
        education; and
            ``(C) improving the health of the regional economy of a 
        rural area through a partnership of local educational agencies 
        serving the rural area, rural-serving institutions of higher 
        education, and regional employers.
        ``(5) Limitation.--A rural-serving institution of higher 
    education shall not receive more than one grant under this section.
    ``(e) Applications.--Each rural-serving institution of higher 
education desiring a grant under this section shall submit to the 
Secretary an application at such time, in such manner, and containing 
such information as the Secretary may reasonably require.
    ``(f) Required Use of Funds.--A rural-serving institution of higher 
education that receives a grant under this section shall use grant 
funds for at least three of the following four purposes:
        ``(1) To improve postsecondary enrollment rates for rural 
    secondary school students at rural-serving institutions of higher 
    education, which may include--
            ``(A) programs to provide students and families with 
        counseling related to applying for postsecondary education, and 
        Federal and State financial assistance for postsecondary 
        education;
            ``(B) programs that provide students and families of rural 
        high schools access and exposure to campuses, classes, 
        programs, and internships of rural-serving institutions of 
        higher education, including covering the cost of transportation 
        to and from such institutions; and
            ``(C) other initiatives that assist students and families 
        in applying for and developing interest in attending rural-
        serving institutions of higher education.
        ``(2) To increase enrollment rates of nontraditional students 
    in degree programs at rural-serving institutions of higher 
    education, which may include--
            ``(A) programs to provide nontraditional students with 
        counseling related to applying for postsecondary education, and 
        Federal and State financial assistance for postsecondary 
        education;
            ``(B) community outreach initiatives to encourage 
        nontraditional students to enroll in a rural-serving 
        institution of higher education; and
            ``(C) programs to improve the enrollment of nontraditional 
        students in two-year degree programs and the transition of 
        nontraditional students articulating from two-year degree 
        programs to four-year degree programs.
        ``(3) To create or strengthen academic programs at rural-
    serving institutions of higher education to prepare graduates to 
    enter into high-need occupations in the regional and local 
    economies.
        ``(4) To provide additional career training to students of 
    rural-serving institutions of higher education in fields relevant 
    to the regional economy.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as many be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

            ``PART R--CAMPUS-BASED DIGITAL THEFT PREVENTION

    ``SEC. 871. CAMPUS-BASED DIGITAL THEFT PREVENTION.
    ``(a) Program Authority.--From the amounts appropriated under 
subsection (d), the Secretary may make grants to institutions of higher 
education, or consortia of such institutions, and enter into contracts 
with such institutions, consortia, and other organizations, to develop, 
implement, operate, improve, and disseminate programs of prevention, 
education, and cost-effective technological solutions, to reduce and 
eliminate the illegal downloading and distribution of intellectual 
property. Such grants or contracts may also be used for the support of 
higher education centers that will provide training, technical 
assistance, evaluation, dissemination, and associated services and 
assistance to the higher education community as determined by the 
Secretary and institutions of higher education.
    ``(b) Awards.--Grants and contracts shall be awarded under this 
section on a competitive basis.
    ``(c) Applications.--An institution of higher education or a 
consortium of such institutions that desires to receive a grant or 
contract under this section shall submit an application to the 
Secretary at such time, in such manner, and containing or accompanied 
by such information as the Secretary may reasonably require by 
regulation.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

                ``PART S--TRAINING FOR REALTIME WRITERS

    ``SEC. 872. PROGRAM TO PROMOTE TRAINING AND JOB PLACEMENT OF 
      REALTIME WRITERS.
    ``(a) Authorization of Grant Program.--
        ``(1) In general.--From the amounts appropriated to carry out 
    this section, the Secretary shall award grants, on a competitive 
    basis, to eligible entities under paragraph (2) to promote training 
    and placement of individuals, including individuals who have 
    completed a court reporting training program, as realtime writers 
    in order to meet the requirements for closed captioning of video 
    programming set forth in section 713 of the Communications Act of 
    1934 (47 U.S.C. 613) and the rules prescribed thereunder.
        ``(2) Eligible entities.--For purposes of this section, an 
    eligible entity is a court reporting program that--
            ``(A) has a curriculum capable of training realtime writers 
        qualified to provide captioning services;
            ``(B) is accredited by an accrediting agency or association 
        recognized by the Secretary; and
            ``(C) is participating in student aid programs under title 
        IV.
        ``(3) Priority in grants.--In determining whether to make 
    grants under this section, the Secretary shall give a priority to 
    eligible entities that, as determined by the Secretary--
            ``(A) possess the most substantial capability to increase 
        their capacity to train realtime writers;
            ``(B) demonstrate the most promising collaboration with 
        educational institutions, businesses, labor organizations, or 
        other community groups having the potential to train or provide 
        job placement assistance to realtime writers; or
            ``(C) propose the most promising and innovative approaches 
        for initiating or expanding training or job placement 
        assistance efforts with respect to realtime writers.
        ``(4) Duration of grant.--A grant under this section shall be 
    for a period of up to five years.
        ``(5) Maximum amount of grant.--The amount of a grant provided 
    under this subsection to an eligible entity may not exceed 
    $1,500,000 for the period of the grant.
    ``(b) Application.--
        ``(1) In general.--To receive a grant under subsection (a), an 
    eligible entity shall submit an application to the Secretary at 
    such time and in such manner as the Secretary may require. The 
    application shall contain the information set forth under paragraph 
    (2).
        ``(2) Information.--Information in the application of an 
    eligible entity for a grant under subsection (a) shall include the 
    following:
            ``(A) A description of the training and assistance to be 
        funded using the grant amount, including how such training and 
        assistance will increase the number of realtime writers.
            ``(B) A description of performance measures to be utilized 
        to evaluate the progress of individuals receiving such training 
        and assistance in matters relating to enrollment, completion of 
        training, and job placement and retention.
            ``(C) A description of the manner in which the eligible 
        entity will ensure that recipients of scholarships, if any, 
        funded by the grant will be employed and retained as realtime 
        writers.
            ``(D) A description of the manner in which the eligible 
        entity intends to continue providing the training and 
        assistance to be funded by the grant after the end of the grant 
        period, including any partnerships or arrangements established 
        for that purpose.
            ``(E) A description of how the eligible entity will work 
        with local boards (as defined in section 101 of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2801)) to ensure that 
        training and assistance to be funded with the grant will 
        further local workforce goals, including the creation of 
        educational opportunities for individuals who are from 
        economically disadvantaged backgrounds or are displaced 
        workers.
            ``(F) Additional information, if any, on the eligibility of 
        the eligible entity for priority in the making of grants under 
        subsection (a)(3).
            ``(G) Such other information as the Secretary may require.
    ``(c) Use of Funds.--
        ``(1) In general.--An eligible entity receiving a grant under 
    subsection (a) shall use the grant amount for purposes relating to 
    the recruitment, training and assistance, and job placement of 
    individuals, including individuals who have completed a court 
    reporting training program, as realtime writers, including--
            ``(A) recruitment;
            ``(B) subject to paragraph (2), the provision of 
        scholarships;
            ``(C) distance learning;
            ``(D) further developing and implementing both English and 
        Spanish curricula to more effectively train individuals in 
        realtime writing skills, and education in the knowledge 
        necessary for the delivery of high quality closed captioning 
        services;
            ``(E) mentoring students to ensure successful completion of 
        the realtime training and providing assistance in job 
        placement;
            ``(F) encouraging individuals with disabilities to pursue a 
        career in realtime writing; and
            ``(G) the employment and payment of personnel for the 
        purposes described in this paragraph.
        ``(2) Scholarships.--
            ``(A) Amount.--The amount of a scholarship under paragraph 
        (1)(B) shall be based on the amount of need of the scholarship 
        recipient for financial assistance, as determined in accordance 
        with part F of title IV.
            ``(B) Agreement.--Each recipient of a scholarship under 
        paragraph (1)(B) shall enter into an agreement with the school 
        in which the recipient is enrolled to provide realtime writing 
        services for the purposes described in subsection (a)(1) for a 
        period of time appropriate (as determined by the Secretary) for 
        the amount of the scholarship received.
            ``(C) Coursework and employment.--The Secretary shall 
        establish requirements for coursework and employment for 
        recipients of scholarships under paragraph (1)(B), including 
        requirements for repayment of scholarship amounts in the event 
        of failure to meet such requirements for coursework and 
        employment. The Secretary may waive, in whole or in part, the 
        requirements for repayment of scholarship amounts on the basis 
        of economic conditions which may affect the ability of 
        scholarship recipients to find work as realtime writers.
        ``(3) Administrative costs.--The recipient of a grant under 
    this section may not use more than five percent of the grant amount 
    to pay administrative costs associated with activities funded by 
    the grant. The Secretary shall use not more than five percent of 
    the amount available for grants under this section in any fiscal 
    year for administrative costs of the program.
        ``(4) Supplement not supplant.--Grant amounts under this 
    section shall supplement and not supplant other Federal or non-
    Federal funds of the grant recipient for purposes of promoting the 
    training and placement of individuals as realtime writers.
    ``(d) Report.--
        ``(1) In general.--Each eligible entity receiving a grant under 
    subsection (a) shall submit to the Secretary, at the end of the 
    grant period, a report on the activities of such entity with 
    respect to the use of grant amounts during the grant period.
        ``(2) Report information.--Each report of an eligible entity 
    under paragraph (1) shall include--
            ``(A) an assessment by the entity of the effectiveness of 
        activities carried out using such funds in increasing the 
        number of realtime writers, using the performance measures 
        submitted by the eligible entity in the application for the 
        grant under subsection (b)(2); and
            ``(B) a description of the best practices identified by the 
        eligible entity for increasing the number of individuals who 
        are trained, employed, and retained in employment as realtime 
        writers.
        ``(3) Summaries.--The Secretary shall summarize the reports 
    submitted under paragraph (2) and make such summary available on 
    the Department's website.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

      ``PART T--CENTERS OF EXCELLENCE FOR VETERAN STUDENT SUCCESS

    ``SEC. 873. MODEL PROGRAMS FOR CENTERS OF EXCELLENCE FOR VETERAN 
      STUDENT SUCCESS.
    ``(a) Purpose.--It is the purpose of this section to encourage 
model programs to support veteran student success in postsecondary 
education by coordinating services to address the academic, financial, 
physical, and social needs of veteran students.
    ``(b) Grants Authorized.--
        ``(1) In general.--Subject to the availability of 
    appropriations under subsection (f), the Secretary shall award 
    grants to institutions of higher education to develop model 
    programs to support veteran student success in postsecondary 
    education.
        ``(2) Grant period.--A grant awarded under this section shall 
    be awarded for a period of three years.
    ``(c) Use of Grants.--
        ``(1) Required activities.--An institution of higher education 
    receiving a grant under this section shall use such grant to carry 
    out a model program that includes--
            ``(A) establishing a Center of Excellence for Veteran 
        Student Success on the campus of the institution to provide a 
        single point of contact to coordinate comprehensive support 
        services for veteran students;
            ``(B) establishing a veteran student support team, 
        including representatives from the offices of the institution 
        responsible for admissions, registration, financial aid, 
        veterans benefits, academic advising, student health, personal 
        or mental health counseling, career advising, disabilities 
        services, and any other office of the institution that provides 
        support to veteran students on campus;
            ``(C) providing a coordinator whose primary responsibility 
        is to coordinate the model program carried out under this 
        section;
            ``(D) monitoring the rates of veteran student enrollment, 
        persistence, and completion; and
            ``(E) developing a plan to sustain the Center of Excellence 
        for Veteran Student Success after the grant period.
        ``(2) Other authorized activities.--An institution of higher 
    education receiving a grant under this section may use such grant 
    to carry out any of the following activities with respect to 
    veteran students:
            ``(A) Outreach and recruitment of such students.
            ``(B) Supportive instructional services for such students, 
        which may include--
                ``(i) personal, academic, and career counseling, as an 
            ongoing part of the program;
                ``(ii) tutoring and academic skill-building instruction 
            assistance, as needed; and
                ``(iii) assistance with special admissions and transfer 
            of credit from previous postsecondary education or 
            experience.
            ``(C) Assistance in obtaining student financial aid.
            ``(D) Housing support for veteran students living in 
        institutional facilities and commuting veteran students.
            ``(E) Cultural events, academic programs, orientation 
        programs, and other activities designed to ease the transition 
        to campus life for veteran students.
            ``(F) Support for veteran student organizations and veteran 
        student support groups on campus.
            ``(G) Coordination of academic advising and admissions 
        counseling with military bases and national guard units in the 
        area.
            ``(H) Other support services the institution determines to 
        be necessary to ensure the success of veterans in achieving 
        educational and career goals.
    ``(d) Application; Selection.--
        ``(1) Application.--To be considered for a grant under this 
    section, an institution of higher education shall submit to the 
    Secretary an application at such time, in such manner, and 
    accompanied by such information as the Secretary may require.
        ``(2) Selection considerations.--In awarding grants under this 
    section, the Secretary shall consider--
            ``(A) the number of veteran students enrolled at an 
        institution of higher education; and
            ``(B) the need for model programs to address the needs of 
        veteran students at a wide range of institutions of higher 
        education, including the need to provide--
                ``(i) an equitable distribution of such grants to 
            institutions of higher education of various types and 
            sizes;
                ``(ii) an equitable geographic distribution of such 
            grants; and
                ``(iii) an equitable distribution of such grants among 
            rural and urban areas.
    ``(e) Evaluation and Accountability Plan.--The Secretary shall 
develop an evaluation and accountability plan for model programs funded 
under this section to objectively measure the impact of such programs, 
including a measure of whether postsecondary education enrollment, 
persistence, and completion for veterans increases as a result of such 
programs.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

              ``PART U--UNIVERSITY SUSTAINABILITY PROGRAMS

    ``SEC. 881. SUSTAINABILITY PLANNING GRANTS AUTHORIZED.
    ``(a) Program Authorized.--
        ``(1) In general.--From the amounts appropriated to carry out 
    this section, the Secretary, in consultation with the Administrator 
    of the Environmental Protection Agency, shall make grants to 
    eligible entities to establish sustainability programs to design 
    and implement sustainability practices, including in the areas of 
    energy management, greenhouse gas emissions reductions, green 
    building, waste management, purchasing, transportation, and toxics 
    management, and other aspects of sustainability that integrate 
    campus operations with multidisciplinary academic programs and are 
    applicable to the private and government sectors.
        ``(2) Period of grant.--The provision of payments under a grant 
    under paragraph (1) shall extend over a period of not more than 
    four fiscal years.
        ``(3) Definition of eligible entity.--For purposes of this 
    part, the term `eligible entity' means--
            ``(A) an institution of higher education; or
            ``(B) a nonprofit consortium, association, alliance, or 
        collaboration operating in partnership with one or more 
        institutions of higher education that received funds for the 
        implementation of work associated with sustainability programs 
        under this part.
    ``(b) Applications.--
        ``(1) In general.--To receive a grant under subsection (a)(1), 
    an eligible entity shall submit an application to the Secretary at 
    such time, in such form, and containing such information as the 
    Secretary may reasonably require.
        ``(2) Assurances.--Such application shall include assurances 
    that the eligible entity--
            ``(A) has developed a plan, including an evaluation 
        component, for the program component established pursuant to 
        subsection (c);
            ``(B) shall use Federal funds received from a grant under 
        subsection (a) to supplement, not supplant, non-Federal funds 
        that would otherwise be available for projects funded under 
        this section;
            ``(C) shall provide, with respect to any fiscal year in 
        which such entity receives funds from a grant under subsection 
        (a)(1), non-Federal funds or an in-kind contribution in an 
        amount equal to 20 percent of funds from such grant, for the 
        purpose of carrying out the program component established 
        pursuant to subsection (c); and
            ``(D) shall collaborate with business, government, and the 
        nonprofit sectors in the development and implementation of its 
        sustainability plan.
    ``(c) Use of Funds.--
        ``(1) Individual institutions.--Grants made under subsection 
    (a) may be used by an eligible entity that is an individual 
    institution of higher education for the following purposes:
            ``(A) To develop and implement administrative and 
        operations practices at an institution of higher education that 
        test, model, and analyze principles of sustainability.
            ``(B) To establish multidisciplinary education, research, 
        and outreach programs at an institution of higher education 
        that address the environmental, social, and economic dimensions 
        of sustainability.
            ``(C) To support research and teaching initiatives that 
        focus on multidisciplinary and integrated environmental, 
        economic, and social elements.
            ``(D) To establish initiatives in the areas of energy 
        management, greenhouse gas emissions reductions, green 
        building, waste management, purchasing, toxics management, 
        transportation, and other aspects of sustainability.
            ``(E) To support student, faculty, and staff work at an 
        institution of higher education to implement, research, and 
        evaluate sustainable practices.
            ``(F) To expand sustainability literacy on campus.
            ``(G) To integrate sustainability curricula in all programs 
        of instruction, particularly in business, architecture, 
        technology, manufacturing, engineering, and science programs.
        ``(2) Partnerships.--Grants made under subsection (a) may be 
    used by an eligible entity that is a nonprofit consortium, 
    association, alliance, or collaboration operating in partnership 
    with one or more institutions of higher education for the following 
    purposes:
            ``(A) To conduct faculty, staff and administrator training 
        on the subjects of sustainability and institutional change.
            ``(B) To compile, evaluate, and disseminate best practices, 
        case studies, guidelines and standards regarding 
        sustainability.
            ``(C) To conduct efforts to engage external stakeholders 
        such as business, alumni, and accrediting agencies in the 
        process of building support for research, education, and 
        technology development for sustainability.
            ``(D) To conduct professional development programs for 
        faculty in all disciplines to enable faculty to incorporate 
        sustainability content in their courses.
            ``(E) To create the analytical tools necessary for 
        institutions of higher education to assess and measure their 
        individual progress toward fully sustainable campus operations 
        and fully integrating sustainability into the curriculum.
            ``(F) To develop educational benchmarks for institutions of 
        higher education to determine the necessary rigor and 
        effectiveness of academic sustainability programs.
    ``(d) Reports.--An eligible entity that receives a grant under 
subsection (a) shall submit to the Secretary, for each fiscal year in 
which the entity receives amounts from such grant, a report that 
describes the work conducted pursuant to subsection (c), research 
findings and publications, administrative savings experienced, and an 
evaluation of the program.
    ``(e) Allocation Requirement.--The Secretary may not make grants 
under subsection (a) to any eligible entity in a total amount that is 
less than $250,000 or more than $2,000,000.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

               ``PART V--MODELING AND SIMULATION PROGRAMS

    ``SEC. 891. MODELING AND SIMULATION.
    ``(a) Purpose; Definition.--
        ``(1) Purpose.--The purpose of this section is to promote the 
    study of modeling and simulation at institutions of higher 
    education, through the collaboration with new and existing 
    programs, and specifically to promote the use of technology in such 
    study through the creation of accurate models that can simulate 
    processes or recreate real life, by--
            ``(A) establishing a task force at the Department of 
        Education to raise awareness of and define the study of 
        modeling and simulation;
            ``(B) providing grants to institutions of higher education 
        to develop new modeling and simulation degree programs; and
            ``(C) providing grants for institutions of higher education 
        to enhance existing modeling and simulation degree programs.
        ``(2) Definition.--In this section, the term `modeling and 
    simulation' means a field of study related to the application of 
    computer science and mathematics to develop a level of 
    understanding of the interaction of the parts of a system and of a 
    system as a whole.
    ``(b) Establishment of Task Force.--
        ``(1) In general.--Subject to the availability of 
    appropriations, the Secretary shall establish a task force within 
    the Department to study modeling and simulation and to support the 
    development of the modeling and simulation field. The activities of 
    such task force shall include--
            ``(A) helping to define the study of modeling and 
        simulation (including the content of modeling and simulation 
        classes and programs);
            ``(B) identifying best practices for such study;
            ``(C) identifying core knowledge and skills that 
        individuals who participate in modeling and simulation programs 
        should acquire; and
            ``(D) providing recommendations to the Secretary with 
        respect to--
                ``(i) the information described in subparagraphs (A) 
            through (C); and
                ``(ii) a system by which grants under this section will 
            be distributed.
        ``(2) Task force membership.--The membership of the task force 
    under this subsection shall be composed of representatives from--
            ``(A) institutions of higher education with established 
        modeling and simulation degree programs;
            ``(B) the National Science Foundation;
            ``(C) Federal Government agencies that use modeling and 
        simulation extensively, including the Department of Defense, 
        the National Institutes of Health, the Department of Homeland 
        Security, the Department of Health and Human Services, the 
        Department of Energy, and the Department of Transportation;
            ``(D) private industries with a primary focus on modeling 
        and simulation;
            ``(E) national modeling and simulation organizations; and
            ``(F) the Office of Science and Technology Policy.
    ``(c) Enhancing Modeling and Simulation at Institutions of Higher 
Education.--
        ``(1) Enhancement grants authorized.--
            ``(A) In general.--The Secretary is authorized to award 
        grants, on a competitive basis, to eligible institutions to 
        enhance modeling and simulation degree programs at such 
        eligible institutions.
            ``(B) Duration of grant.--A grant awarded under this 
        subsection shall be awarded for a three-year period, and such 
        grant period may be extended for not more than two years if the 
        Secretary determines that an eligible institution has 
        demonstrated success in enhancing the modeling and simulation 
        degree program at such eligible institution.
            ``(C) Minimum grant amount.--Subject to the availability of 
        appropriations, a grant awarded to an eligible institution 
        under this subsection shall not be less than $750,000.
            ``(D) Non-federal share.--Each eligible institution 
        receiving a grant under this subsection shall provide, from 
        non-Federal sources, in cash or in-kind, an amount equal to 25 
        percent of the amount of the grant to carry out the activities 
        supported by the grant. The Secretary may waive the non-Federal 
        share requirement under this subparagraph for an eligible 
        institution if the Secretary determines a waiver to be 
        appropriate based on the financial ability of the institution.
        ``(2) Eligible institutions.--For the purposes of this 
    subsection, an eligible institution is an institution of higher 
    education that--
            ``(A) has an established modeling and simulation degree 
        program, including a major, minor, or career-track program; or
            ``(B) has an established modeling and simulation 
        certificate or concentration program.
        ``(3) Application.--To be considered for a grant under this 
    subsection, an eligible institution shall submit to the Secretary 
    an application at such time, in such manner, and containing such 
    information as the Secretary may require. Such application shall 
    include--
            ``(A) a letter from the president or provost of the 
        eligible institution that demonstrates the institution's 
        commitment to the enhancement of the modeling and simulation 
        program at the institution of higher education;
            ``(B) an identification of designated faculty responsible 
        for the enhancement of the institution's modeling and 
        simulation program; and
            ``(C) a detailed plan for how the grant funds will be used 
        to enhance the modeling and simulation program of the 
        institution.
        ``(4) Uses of funds.--A grant awarded under this subsection 
    shall be used by an eligible institution to carry out the plan 
    developed in accordance with paragraph (3)(C) to enhance modeling 
    and simulation programs at the institution, which may include--
            ``(A) in the case of an institution that is eligible under 
        paragraph (2)(B), activities to assist in the establishment of 
        a major, minor, or career-track modeling and simulation program 
        at the eligible institution;
            ``(B) expanding the multidisciplinary nature of the 
        institution's modeling and simulation programs;
            ``(C) recruiting students into the field of modeling and 
        simulation through the provision of fellowships or 
        assistantships;
            ``(D) creating new courses to complement existing courses 
        and reflect emerging developments in the modeling and 
        simulation field;
            ``(E) conducting research to support new methodologies and 
        techniques in modeling and simulation; and
            ``(F) purchasing equipment necessary for modeling and 
        simulation programs.
    ``(d) Establishing Modeling and Simulation Programs.--
        ``(1) Establishment grants authorized.--
            ``(A) In general.--The Secretary is authorized to award 
        grants to institutions of higher education to establish a 
        modeling and simulation program, including a major, minor, 
        career-track, certificate, or concentration program.
            ``(B) Duration of grant.--A grant awarded under this 
        subsection shall be awarded for a three-year period, and such 
        grant period may be extended for not more than two years if the 
        Secretary determines that an eligible institution has 
        demonstrated success in establishing a modeling and simulation 
        degree program at such eligible institution.
            ``(C) Minimum grant amount.--Subject to the availability of 
        appropriations, a grant awarded to an eligible institution 
        under this subsection shall not be less than $750,000.
            ``(D) Non-federal share.--Each eligible institution 
        receiving a grant under this subsection shall provide, from 
        non-Federal sources, in cash or in-kind, an amount equal to 25 
        percent of the amount of the grant to carry out the activities 
        supported by the grant. The Secretary may waive the non-Federal 
        share requirement under this subparagraph for an eligible 
        institution if the Secretary determines a waiver to be 
        appropriate based on the financial ability of the institution.
        ``(2) Application.--To apply for a grant under this subsection, 
    an eligible institution shall submit to the Secretary an 
    application at such time, in such manner, and containing such 
    information as the Secretary may require. Such application shall 
    include--
            ``(A) a letter from the president or provost of the 
        eligible institution that demonstrates the institution's 
        commitment to the establishment of a modeling and simulation 
        program at the institution of higher education;
            ``(B) a detailed plan for how the grant funds will be used 
        to establish a modeling and simulation program at the 
        institution; and
            ``(C) a description of how the modeling and simulation 
        program established under this subsection will complement 
        existing programs and fit into the institution's current 
        program and course offerings.
        ``(3) Uses of funds.--A grant awarded under this subsection may 
    be used by an eligible institution to--
            ``(A) establish, or work toward the establishment of, a 
        modeling and simulation program, including a major, minor, 
        career-track, certificate, or concentration program at the 
        eligible institution;
            ``(B) provide adequate staffing to ensure the successful 
        establishment of the modeling and simulation program, which may 
        include the assignment of full-time dedicated or supportive 
        faculty; and
            ``(C) purchase equipment necessary for a modeling and 
        simulation program.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years. Of 
the amounts authorized to be appropriated for each fiscal year--
        ``(1) $1,000,000 is authorized to carry out the activities of 
    the task force established pursuant to subsection (b); and
        ``(2) of the amount remaining after the allocation for 
    paragraph (1)--
            ``(A) 50 percent is authorized to carry out the grant 
        program under subsection (c); and
            ``(B) 50 percent is authorized to carry out the grant 
        program under subsection (d).

                       ``PART W--PATH TO SUCCESS

    ``SEC. 892. PATH TO SUCCESS.
    ``(a) Purpose.--The purpose of this section is to encourage 
community supported programs that--
        ``(1) leverage and enhance community support for at-risk young 
    adults by facilitating the transition of such young adults who are 
    eligible individuals into productive learning environments where 
    such young adults can obtain the life, social, academic, career, 
    and technical skills and credentials necessary to strengthen the 
    Nation's workforce;
        ``(2) provide counseling, as appropriate, for eligible 
    individuals participating in the programs to allow the eligible 
    individuals to build a relationship with one or more guidance 
    counselors during the period that the individuals are enrolled in 
    the programs, including providing referrals and connections to 
    community resources that help eligible individuals transition back 
    into the community with the necessary life, social, academic, 
    career, and technical skills after being in detention, or 
    incarcerated, particularly resources related to health, housing, 
    job training, and workplace readiness;
        ``(3) provide training and education for eligible individuals 
    participating in the programs, to allow such individuals to assist 
    community officials and law enforcement agencies with the 
    deterrence and prevention of gang and youth violence by 
    participating in seminars, training, and workshops throughout the 
    community; and
        ``(4) provide each eligible individual participating in the 
    programs with individual attention based on a curriculum that 
    matches the interests and abilities of the individual to the 
    resources of the program.
    ``(b) Reentry Education Program.--
        ``(1) Grant program established.--From the amounts appropriated 
    under subsection (g), the Secretary is authorized to award grants 
    to community colleges to enter into and maintain partnerships with 
    juvenile detention centers and secure juvenile justice residential 
    facilities to provide assistance, services, and education to 
    eligible individuals who reenter the community and pursue, in 
    accordance with the requirements of this section, at least one of 
    the following:
            ``(A) A certificate of completion for a specialized area of 
        study, such as career and technical training and other 
        alternative postsecondary educational programs.
            ``(B) An associate's degree.
        ``(2) Grant period.--A grant awarded under this part shall be 
    for one four-year period, and may be renewed for an additional 
    period as the Secretary determines to be appropriate.
        ``(3) Application.--A community college desiring 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 shall require. Such application shall 
    include--
            ``(A) an assessment of the existing community resources 
        available to serve at-risk youth;
            ``(B) a detailed description of the program and activities 
        the community college will carry out with such grant; and
            ``(C) a proposed budget describing how the community 
        college will use the funds made available by such grant.
        ``(4) Priority.--In awarding grants under this part, the 
    Secretary shall give priority to community colleges that propose to 
    serve the highest number of priority individuals, and, among such 
    community colleges, shall give priority to community colleges that 
    the Secretary determines will best carry out the purposes of this 
    part, based on the applications submitted in accordance with 
    paragraph (3).
    ``(c) Allowable Uses of Funds.--A community college awarded a grant 
under this part may use such grant to--
        ``(1) pay for tuition and transportation costs of eligible 
    individuals;
        ``(2) establish and carry out an education program that 
    includes classes for eligible individuals that--
            ``(A) provide marketable life and social skills to such 
        individuals;
            ``(B) meet the education program requirements under 
        subsection (d), including as appropriate, courses necessary for 
        the completion of a secondary school diploma or the recognized 
        equivalent;
            ``(C) promote the civic engagement of such individuals; and
            ``(D) facilitate a smooth reentry of such individuals into 
        the community;
        ``(3) create and carry out a mentoring program that is--
            ``(A) specifically designed to help eligible individuals 
        with the potential challenges of the transitional period from 
        detention to release;
            ``(B) created in consultation with guidance counselors, 
        academic advisors, law enforcement officials, and other 
        community resources; and
            ``(C) administered by a program coordinator, selected and 
        employed by the community college, who shall oversee each 
        individual's development and shall serve as the immediate 
        supervisor and reporting officer to whom the academic advisors, 
        guidance counselors, and volunteers shall report regarding the 
        progress of each such individual;
        ``(4) facilitate employment opportunities for eligible 
    individuals by entering into partnerships with public and private 
    entities to provide opportunities for internships, apprenticeships, 
    and permanent employment, as possible, for such individuals; and
        ``(5) provide training for eligible individuals participating 
    in the programs, to allow such individuals to assist community 
    officials and law enforcement agencies with the deterrence and 
    prevention of gang and youth violence by participating in seminars 
    and workshop series throughout the community.
    ``(d) Education Program Requirements.--An education program 
established and carried out under subsection (c) shall--
        ``(1) include classes that are required for completion of a 
    certificate, diploma, or degree described in subparagraph (A) or 
    (B) of subsection (b)(1), including as appropriate courses 
    necessary for the completion of a secondary school diploma or the 
    recognized equivalent;
        ``(2) provide a variety of academic programs, with various 
    completion requirements, to accommodate the diverse academic 
    backgrounds, learning styles, and academic and career interests of 
    the eligible individuals who participate in the education program;
        ``(3) offer flexible academic programs that are designed to 
    improve the academic development and achievement of eligible 
    individuals, and to avoid high attrition rates for such 
    individuals; and
        ``(4) provide for a uniquely designed education plan for each 
    eligible individual participating in the program, which shall 
    require such individual to receive, at a minimum, a certificate or 
    degree described in subparagraph (A) or (B) of subsection (b)(1) to 
    successfully complete such program.
    ``(e) Reports.--Each community college awarded a grant under this 
part shall submit to the Secretary a report--
        ``(1) documenting the results of the program carried out with 
    such grant; and
        ``(2) evaluating the effectiveness of activities carried out 
    through such program.
    ``(f) Definitions.--In this section:
        ``(1) Community college.--The term `community college' has the 
    meaning given the term `junior or community college' in section 
    312(f).
        ``(2) Eligible individual.--The term `eligible individual' 
    means an individual who--
            ``(A) is 16 to 25 years of age (inclusive); and
            ``(B)(i) has been convicted of a criminal offense; and
            ``(ii) is detained in, or has been released from, a 
        juvenile detention center or secure juvenile justice 
        residential facility.
        ``(3) Gang-related offense.--
            ``(A) In general.--The term `gang-related offense' means an 
        offense that involves the circumstances described in 
        subparagraph (B) and that is--
                ``(i) a Federal or State felony involving a controlled 
            substance (as defined in section 102 of the Controlled 
            Substances Act (21 U.S.C. 802)) for which the maximum 
            penalty is not less than five years;
                ``(ii) a Federal or State crime of violence that has as 
            an element the use or attempted use of physical force 
            against the person of another for which the maximum penalty 
            is not less than six months; or
                ``(iii) a conspiracy to commit an offense described in 
            clause (i) or (ii).
            ``(B) Circumstances.--The circumstances described in this 
        subparagraph are that the offense described in subparagraph (A) 
        was committed by a person who--
                ``(i) participates in a criminal street gang (as 
            defined in section 521(a) of title 18, United States Code) 
            with knowledge that such gang's members engage in or have 
            engaged in a continuing series of offenses described in 
            subparagraph (A); and
                ``(ii) intends to promote or further the felonious 
            activities of the criminal street gang or maintain or 
            increase the person's position in the gang.
        ``(4) Priority individual.--The term `priority individual' 
    means an individual who--
            ``(A) is an eligible individual;
            ``(B) has been convicted of a gang-related offense; and
            ``(C) has served or is serving a period of detention in a 
        juvenile detention center or secure juvenile justice 
        residential facility for such offense.
        ``(5) Guidance counselor.--The term `guidance counselor' means 
    an individual who works with at-risk youth on a one-on-one basis, 
    to establish a supportive relationship with such at-risk youth and 
    to provide such at-risk youth with academic assistance and exposure 
    to new experiences that enhance their ability to become responsible 
    citizens.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

   ``PART X--SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT PROGRAM

    ``SEC. 893. SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT 
      PROGRAM.
    ``(a) In General.--From the amounts appropriated under subsection 
(g), the Secretary of Health and Human Services shall award competitive 
grants to eligible entities for the purpose of improving public health 
preparedness through increasing the number of veterinarians in the 
workforce.
    ``(b) Eligible Entities.--To be eligible to receive a grant under 
subsection (a), an entity shall--
        ``(1) be--
            ``(A) a public or other nonprofit school of veterinary 
        medicine that is accredited by a nationally recognized 
        accrediting agency or association recognized by the Secretary 
        of Education pursuant to part H of title IV;
            ``(B) a public or nonprofit, department of comparative 
        medicine, department of veterinary science, school of public 
        health, or school of medicine that is accredited by a 
        nationally recognized accrediting agency or association 
        recognized by the Secretary of Education pursuant to part H of 
        title IV and that offers graduate training for veterinarians in 
        a public health practice area as determined by the Secretary of 
        Health and Human Services; or
            ``(C) a public or nonprofit entity that--
                ``(i) conducts recognized residency training programs 
            for veterinarians that are approved by a veterinary 
            specialty organization that is recognized by the American 
            Veterinary Medical Association; and
                ``(ii) offers postgraduate training for veterinarians 
            in a public health practice area as determined by the 
            Secretary of Health and Human Services; and
        ``(2) prepare and submit to the Secretary of Health and Human 
    Services an application, at such time, in such manner, and 
    containing such information as the Secretary of Health and Human 
    Services may require.
    ``(c) Consideration of Applications.--The Secretary of Health and 
Human Services shall establish procedures to ensure that applications 
under subsection (b)(2) are rigorously reviewed and that grants are 
competitively awarded based on--
        ``(1) the ability of the applicant to increase the number of 
    veterinarians who are trained in specified public health practice 
    areas as determined by the Secretary of Health and Human Services;
        ``(2) the ability of the applicant to increase capacity in 
    research on high priority disease agents; or
        ``(3) any other consideration the Secretary of Health and Human 
    Services determines necessary.
    ``(d) Preference.--In awarding grants under subsection (a), the 
Secretary of Health and Human Services shall give preference to 
applicants that demonstrate a comprehensive approach by involving more 
than one school of veterinary medicine, department of comparative 
medicine, department of veterinary science, school of public health, 
school of medicine, or residency training program that offers 
postgraduate training for veterinarians in a public health practice 
area as determined by the Secretary of Health and Human Services.
    ``(e) Use of Funds.--Amounts received under a grant under this 
section shall be used by a grantee to increase the number of 
veterinarians in the workforce through paying costs associated with the 
expansion of academic programs at schools of veterinary medicine, 
departments of comparative medicine, departments of veterinary science, 
or entities offering residency training programs, or academic programs 
that offer postgraduate training for veterinarians or concurrent 
training for veterinary students in specific areas of specialization, 
which costs may include minor renovation and improvement in classrooms, 
libraries, and laboratories.
    ``(f) Definition of Public Health Practice Area.--In this section, 
the term `public health practice area' includes the areas of 
bioterrorism and emergency preparedness, environmental health, food 
safety and food security, regulatory medicine, diagnostic laboratory 
medicine, and biomedical research.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years. 
Amounts appropriated under this subsection shall remain available until 
expended.

  ``PART Y--EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM

    ``SEC. 894. EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION 
      PROGRAM.
    ``(a) Demonstration Program Authority.--
        ``(1) In general.--The Secretary is authorized to carry out an 
    Early Federal Pell Grant Commitment Demonstration Program under 
    which--
            ``(A) the Secretary awards grants to four State educational 
        agencies, in accordance with paragraph (2), to pay the 
        administrative expenses incurred in participating in the 
        demonstration program under this section; and
            ``(B) the Secretary awards Federal Pell Grants to 
        participating students in accordance with this section and 
        consistent with section 401.
        ``(2) Grants.--
            ``(A) In general.--From amounts appropriated under 
        subsection (h) for a fiscal year, the Secretary is authorized 
        to award grants to four State educational agencies to enable 
        the State educational agencies to pay the administrative 
        expenses incurred in participating in the demonstration program 
        under this section by carrying out a demonstration project 
        under which eighth grade students described in subsection 
        (b)(1)(B) receive a commitment early in the students' academic 
        careers to receive a Federal Pell Grant.
            ``(B) Equal amounts.--The Secretary shall award grants 
        under this section in equal amounts to each of the four 
        participating State educational agencies.
    ``(b) Demonstration Project Requirements.--Each of the four 
demonstration projects assisted under this section shall meet the 
following requirements:
        ``(1) Participants.--
            ``(A) In general.--The State educational agency shall make 
        participation in the demonstration project available to two 
        cohorts of students, which shall consist of--
                ``(i) one cohort of eighth grade students who begin 
            participating in the first academic year for which funds 
            have been appropriated to carry out this section; and
                ``(ii) one cohort of eighth grade students who begin 
            participating in the academic year succeeding the academic 
            year described in clause (i).
            ``(B) Students in each cohort.--Each cohort of students 
        shall consist of not more than 10,000 eighth grade students who 
        qualify for a free or reduced price school lunch under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.) or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.).
        ``(2) Student data.--The State educational agency shall ensure 
    that student data from local educational agencies serving students 
    who participate in the demonstration project, as well as student 
    data from local educational agencies serving a comparable group of 
    students who do not participate in the demonstration project, are 
    available for evaluation of the demonstration project, and are made 
    available in accordance with the requirements of section 444 of the 
    General Education Provisions Act (the Family Educational Rights and 
    Privacy Act of 1974).
        ``(3) Federal pell grant commitment.--Each student who 
    participates in the demonstration project receives a commitment 
    from the Secretary to receive a Federal Pell Grant during the first 
    academic year that the student is in attendance at an institution 
    of higher education as an undergraduate, provided that the student 
    applies for Federal financial aid (via the FAFSA or EZ FAFSA) for 
    such academic year.
        ``(4) Application process.--Each State educational agency shall 
    establish an application process to select local educational 
    agencies within the State to participate in the demonstration 
    project in accordance with subsection (d)(2).
        ``(5) Local educational agency participation.--Subject to the 
    10,000 statewide student limitation described in paragraph (1), a 
    local educational agency serving students, not less than 50 percent 
    of whom are eligible for a free or reduced price school lunch under 
    the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
    seq.) or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
    shall be eligible to participate in the demonstration project.
    ``(c) State Educational Agency Applications.--
        ``(1) In general.--Each State educational agency 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.--Each application shall include--
            ``(A) a description of the proposed targeted information 
        campaign for the demonstration project and a copy of the plan 
        described in subsection (f)(2);
            ``(B) a description of the student population that will 
        receive an early commitment to receive a Federal Pell Grant 
        under this section;
            ``(C) an assurance that the State educational agency will 
        fully cooperate with the ongoing evaluation of the 
        demonstration project; and
            ``(D) such other information as the Secretary may require.
    ``(d) Selection Considerations.--
        ``(1) Selection of state educational agencies.--In selecting 
    State educational agencies to participate in the demonstration 
    program under this section, the Secretary shall consider--
            ``(A) the number and quality of State educational agency 
        applications received;
            ``(B) a State educational agency's--
                ``(i) financial responsibility;
                ``(ii) administrative capability;
                ``(iii) commitment to focusing resources, in addition 
            to any resources provided on students who receive 
            assistance under part A of title I of the Elementary and 
            Secondary Education Act of 1965;
                ``(iv) ability and plans to run an effective and 
            thorough targeted information campaign for students served 
            by local educational agencies eligible to participate in 
            the demonstration project; and
                ``(v) ability to ensure the participation in the 
            demonstration project of a diverse group of students, 
            including with respect to ethnicity and gender.
        ``(2) Local educational agency.--In selecting local educational 
    agencies to participate in a demonstration project under this 
    section, the State educational agency shall consider--
            ``(A) the number and quality of local educational agency 
        applications received;
            ``(B) a local educational agency's--
                ``(i) financial responsibility;
                ``(ii) administrative capability;
                ``(iii) commitment to focusing resources on students 
            who receive assistance under part A of title I of the 
            Elementary and Secondary Education Act of 1965;
                ``(iv) ability and plans to run an effective and 
            thorough targeted information campaign for students served 
            by the local educational agency; and
                ``(v) ability to ensure the participation in the 
            demonstration project of a diverse group of students.
    ``(e) Evaluation.--
        ``(1) In general.--From amounts appropriated under subsection 
    (h) for a fiscal year, the Secretary shall reserve not more than 
    $1,000,000 to award a grant or contract to an organization outside 
    the Department for an independent evaluation of the impact of the 
    demonstration program assisted under this section.
        ``(2) Competitive basis.--The grant or contract shall be 
    awarded on a competitive basis.
        ``(3) Matters evaluated.--The evaluation described in this 
    subsection shall--
            ``(A) determine the number of students who were encouraged 
        by the demonstration program to pursue higher education;
            ``(B) identify the barriers to the effectiveness of the 
        demonstration program;
            ``(C) assess the cost-effectiveness of the demonstration 
        program in improving access to higher education;
            ``(D) identify the reasons why participants in the 
        demonstration program either received or did not receive a 
        Federal Pell Grant;
            ``(E) identify intermediate outcomes related to 
        postsecondary education attendance, such as whether 
        participants--
                ``(i) were more likely to take a college-preparatory 
            curriculum while in secondary school;
                ``(ii) submitted any applications to institutions of 
            higher education; and
                ``(iii) took the PSAT, SAT, or ACT;
            ``(F) identify the number of students participating in the 
        demonstration program who pursued an associate's degree or a 
        bachelor's degree, or other postsecondary education;
            ``(G) compare the findings of the demonstration program 
        with respect to participants to comparison groups (of similar 
        size and demographics) that did not participate in the 
        demonstration program; and
            ``(H) identify the impact of the demonstration program on 
        the parents of students eligible to participate in the program.
        ``(4) Dissemination.--The findings of the evaluation shall be 
    reported to the Secretary, who shall widely disseminate the 
    findings to the public.
    ``(f) Targeted Information Campaign.--
        ``(1) In general.--Each State educational agency receiving a 
    grant under this section shall, in cooperation with the 
    participating local educational agencies within the State and the 
    Secretary, develop a targeted information campaign for the 
    demonstration project assisted under this section.
        ``(2) Plan.--Each State educational agency receiving a grant 
    under this section shall include in the application submitted under 
    subsection (c) a written plan for the State educational agency 
    proposed targeted information campaign. The plan shall include the 
    following:
            ``(A) Outreach.--A description of the outreach to students 
        and the students' families at the beginning and end of each 
        academic year of the demonstration project, at a minimum.
            ``(B) Distribution.--A description of how the State 
        educational agency plans to provide the outreach described in 
        subparagraph (A) and to provide the information described in 
        subparagraph (C).
            ``(C) Information.--The annual provision by the State 
        educational agency to all students and families participating 
        in the demonstration project of information regarding--
                ``(i) the estimated statewide average cost of 
            attendance for an institution of higher education for each 
            academic year, which cost data shall be disaggregated by--

                    ``(I) type of institution, including--

                        ``(aa) two-year public degree-granting 
                    institutions of higher education;
                        ``(bb) four-year public degree-granting 
                    institutions of higher education; and
                        ``(cc) four-year private degree-granting 
                    institutions of higher education;

                    ``(II) component, including--

                        ``(aa) tuition and fees; and
                        ``(bb) room and board;
                ``(ii) Federal Pell Grants, including--

                    ``(I) the maximum Federal Pell Grant for each award 
                year;
                    ``(II) when and how to apply for a Federal Pell 
                Grant; and
                    ``(III) what the application process for a Federal 
                Pell Grant requires;

                ``(iii) State-specific postsecondary education savings 
            programs;
                ``(iv) State merit-based financial aid;
                ``(v) State need-based financial aid; and
                ``(vi) Federal financial aid available to students, 
            including eligibility criteria for such aid and an 
            explanation of the Federal financial aid programs under 
            title IV, such as the Student Guide published by the 
            Department (or any successor to such document).
        ``(3) Cohorts.--The information described in paragraph (2)(C) 
    shall be provided annually to the two successive cohorts of 
    students described in subsection (b)(1)(A) for the duration of the 
    students' participation in the demonstration project.
        ``(4) Reservation.--Each State educational agency receiving a 
    grant under this section shall reserve not more than 15 percent of 
    the grant funds received each fiscal year to carry out the targeted 
    information campaign described in this subsection.
    ``(g) Supplement, Not Supplant.--A State educational agency shall 
use grant funds received under this section only to supplement the 
funds that would, in the absence of such grant funds, be made available 
from non-Federal sources for students participating in the 
demonstration project under this section, and not to supplant such 
funds.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

        ``PART Z--HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL ARCHIVES

    ``SEC. 895. HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL ARCHIVES.
    ``(a) Grants Authorized.--From the amounts appropriated under 
subsection (c), the Secretary is authorized to award a grant to the 
University of Hawaii Academy for Creative Media for the establishment, 
maintenance, and periodic modernization of the Henry Kuualoha Giugni 
Kupuna Memorial Archives at the University of Hawaii.
    ``(b) Use of Funds.--The Henry Kuualoha Giugni Kupuna Memorial 
Archives shall use the grant funds received under this section--
        ``(1) to facilitate the acquisition of a secure web-accessible 
    repository of Native Hawaiian historical data rich in ethnic and 
    cultural significance to the United States for preservation and 
    access by future generations;
        ``(2) to award scholarships to facilitate access to 
    postsecondary education for students who cannot afford such 
    education;
        ``(3) to support programmatic efforts associated with the web-
    based media projects of the archives;
        ``(4) to create educational materials, from the contents of the 
    archives, that are applicable to a broad range of indigenous 
    students, such as Native Hawaiians, Alaskan Natives, and Native 
    American Indians;
        ``(5) to develop outreach initiatives that introduce the 
    archival collections to elementary schools and secondary schools;
        ``(6) to develop supplemental web-based resources that define 
    terms and cultural practices innate to Native Hawaiians;
        ``(7) to rent, lease, purchase, maintain, or repair educational 
    facilities to house the archival collections;
        ``(8) to rent, lease, purchase, maintain, or repair computer 
    equipment for use by elementary schools and secondary schools in 
    accessing the archival collections;
        ``(9) to provide preservice and in-service teacher training to 
    develop a core group of kindergarten through grade 12 teachers who 
    are able to provide instruction in a way that is relevant to the 
    unique background of indigenous students, such as Native Hawaiians, 
    Alaskan Natives, and Native American Indians, in order to--
            ``(A) facilitate greater understanding by teachers of the 
        unique background of indigenous students; and
            ``(B) improve student achievement; and
        ``(10) to increase the economic and financial literacy of 
    postsecondary education students through the dissemination of best 
    practices used at other institutions of higher education regarding 
    debt and credit management and economic decisionmaking.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.

           ``PART AA--MASTERS AND POSTBACCALAUREATE PROGRAMS

    ``SEC. 897. MASTERS DEGREE PROGRAMS.
    ``In addition to any amounts appropriated under section 725, there 
are authorized to be appropriated, and there are appropriated, out of 
any funds in the Treasury not otherwise appropriated, $11,500,000 for 
fiscal year 2009 and for each of the five succeeding fiscal years to 
carry out subpart 4 of part A of title VII in order to provide grants 
under sections 723 and 724, in the minimum amount authorized under such 
sections, to all institutions eligible for grants under such sections.
    ``SEC. 898. POSTBACCALAUREATE PROGRAMS.
    ``In addition to any amounts appropriated under part B of title V, 
there are authorized to be appropriated, and there are appropriated, 
out of any funds in the Treasury not otherwise appropriated, 
$11,500,000 for fiscal year 2009 and for each of the five succeeding 
fiscal years to carry out part B of title V.''.
    SEC. 802. NATIONAL CENTER FOR RESEARCH IN ADVANCED INFORMATION AND 
      DIGITAL TECHNOLOGIES.
    (a) Establishment.--There shall be established, during the first 
fiscal year for which appropriations are made available under 
subsection (c), a nonprofit corporation to be known as the National 
Center for Research in Advanced Information and Digital Technologies, 
which shall not be an agency or establishment of the Federal 
Government. The Center shall be subject to the provisions of this 
section, and, to the extent consistent with this section, to the 
District of Columbia Nonprofit Corporation Act (sec. 29-501 et seq., 
D.C. Official Code).
    (b) Purpose.--The purpose of the Center shall be to support a 
comprehensive research and development program to harness the 
increasing capacity of advanced information and digital technologies to 
improve all levels of learning and education, formal and informal, in 
order to provide Americans with the knowledge and skills needed to 
compete in the global economy.
    (c) Funding.--
        (1) Authorization of appropriations.--There are authorized to 
    be appropriated to the Center such sums as may be necessary for 
    fiscal year 2009 and each of the five succeeding fiscal years.
        (2) Additional funds.--The Center is authorized--
            (A) to accept funds from any Federal agency or entity;
            (B) to accept, hold, administer, and spend any gift, 
        devise, or bequest of real or personal property made to the 
        Center; and
            (C) to enter into competitive contracts with individuals, 
        public or private organizations, professional societies, and 
        government agencies for the purpose of carrying out the 
        functions of the Center.
        (3) Prohibition.--The Center shall not accept gifts, devises, 
    or bequests from a foreign government or foreign source.
    (d) Board of Directors; Vacancies; Compensation.--
        (1) In general.--A Board of the Center shall be established to 
    oversee the administration of the Center.
        (2) Initial composition.--The initial Board shall consist of 
    nine members to be appointed by the Secretary of Education from 
    recommendations received from the Speaker of the House of 
    Representatives, the Minority Leader of the House of 
    Representatives, the majority leader of the Senate, and the 
    minority leader of the Senate, who--
            (A) reflect representation from the public and private 
        sectors;
            (B) shall provide, as nearly as practicable, a broad 
        representation of various regions of the United States, various 
        professions and occupations, and various kinds of talent and 
        experience appropriate to the functions and responsibilities of 
        the Center;
            (C) shall not be in a position to benefit financially 
        directly from the contracts and grants to eligible institutions 
        under subsection (f)(2); and
            (D) may not be officers or employees of the Federal 
        Government or a Members of Congress serving at the time of such 
        appointment.
        (3) Vacancies and subsequent appointments.--To the extent not 
    inconsistent with paragraph (2), in the case of a vacancy on the 
    Board due to death, resignation, or removal, the vacancy shall be 
    filled through nomination and selection by the sitting members of 
    the Board after--
            (A) taking into consideration the composition of the Board; 
        and
            (B) soliciting recommendations from the public.
        (4) Compensation.--Members of the Board shall serve without 
    compensation but may be reimbursed for reasonable expenses for 
    transportation, lodging, and other expenses directly related to 
    their duties as members of the Board.
        (5) Organization and operation.--The Board shall incorporate 
    and operate the Center in accordance with the laws governing tax 
    exempt organizations in the District of Columbia.
    (e) Director and Staff.--
        (1) Director.--The Board shall appoint a Director of the Center 
    after conducting a national, competitive search to find an 
    individual with the appropriate expertise, experience, and 
    knowledge to oversee the operations of the Center.
        (2) Staff.--In accordance with procedures established by the 
    Board, the Director shall employ individuals to carry out the 
    functions of the Center.
        (3) Compensation.--In no case shall the Director or any 
    employee of the Center receive annual compensation that exceeds an 
    amount equal to the annual rate payable for level II of the 
    Executive Schedule under section 5313 of title 5, United States 
    Code.
    (f) Center Activities.--
        (1) Uses of funds.--The Director, after consultation with the 
    Board, shall use the funds made available to the Center--
            (A) to support research to improve education, teaching, and 
        learning that is in the public interest, but that is determined 
        unlikely to be undertaken entirely with private funds;
            (B) to support--
                (i) precompetitive research, development, and 
            demonstrations;
                (ii) assessments of prototypes of innovative digital 
            learning and information technologies, as well as the 
            components and tools needed to create such technologies; 
            and
                (iii) pilot testing and evaluation of prototype systems 
            described in clause (ii); and
            (C) to encourage the widespread adoption and use of 
        effective, innovative digital approaches to improving 
        education, teaching, and learning.
        (2) Contracts and grants.--
            (A) In general.--To carry out the activities described in 
        paragraph (1), the Director, with the agreement of two-thirds 
        of the members of the Board, may award, on a competitive basis, 
        contracts and grants to four-year institutions of higher 
        education, museums, libraries, nonprofit organizations, public 
        institutions with or without for-profit partners, for-profit 
        organizations, and consortia of any such entities.
            (B) Public domain.--
                (i) In general.--The research and development 
            properties and materials associated with any project funded 
            by a grant or contract under this section shall be freely 
            and nonexclusively available to the general public in a 
            timely manner, consistent with regulations prescribed by 
            the Secretary of Education.
                (ii) Exemption.--The Director may waive the 
            requirements of clause (i) with respect to a project funded 
            by a grant or contract under this section if--

                    (I) the Director and the Board (by a unanimous vote 
                of the Board members) determine that the general public 
                will benefit significantly due to the project not being 
                freely and nonexclusively available to the general 
                public in a timely manner; and
                    (II) the Board issues a public statement as to the 
                specific reasons of the determination under subclause 
                (I).

            (C) Peer review.--Proposals for grants or contracts shall 
        be evaluated on the basis of comparative merit by panels of 
        experts who represent diverse interests and perspectives, and 
        who are appointed by the Director based on recommendations from 
        the fields served and from the Board.
    (g) Accountability and Reporting.--
        (1) Report.--
            (A) In general.--Not later than December 30 of each year 
        beginning in fiscal year 2009, the Director shall prepare and 
        submit to the Secretary of Education and the authorizing 
        committees a report that contains the information described in 
        subparagraph (B) with respect to the preceding fiscal year.
            (B) Contents.--A report under subparagraph (A) shall 
        include--
                (i) a comprehensive and detailed report of the Center's 
            operations, activities, financial condition, and 
            accomplishments, and such recommendations as the Director 
            determines appropriate;
                (ii) evidence of coordination with the Department of 
            Education, the National Science Foundation, Office of the 
            Director of Defense Research and Engineering in the 
            Department of Defense, and other related Federal agencies 
            to carry out the operations and activities of the Center;
                (iii) a comprehensive and detailed inventory of funds 
            distributed from the Center during the fiscal year for 
            which the report is being prepared; and
                (iv) an independent audit of the Center's finances and 
            operations, and of the implementation of the goals 
            established by the Board.
            (C) Statement of the board.--Each report under subparagraph 
        (A) shall include a statement from the Board containing--
                (i) a clear description of the plans and priorities of 
            the Board for the subsequent year for activities of the 
            Center; and
                (ii) an estimate of the funds that will be expended by 
            the Center for such year.
        (2) Testimony.--The Director and principal officers of the 
    Center shall testify before the authorizing committees and the 
    Committees on Appropriations of the House of Representatives and 
    the Senate, upon request of such committees, with respect to--
            (A) any report required under paragraph (1)(A); and
            (B) any other matter that such committees may determine 
        appropriate.
    (h) Use of Funds Subject to Appropriations.--The authority to award 
grants, enter into contracts, or otherwise expend funds under this 
section is subject to the availability of amounts deposited into the 
Center under subsection (c), or amounts otherwise appropriated for such 
purposes by an Act of Congress.
    (i) Definitions.--For purposes of this section:
        (1) Authorizing committees.--The term ``authorizing 
    committees'' has the meaning given the term in section 103 of the 
    Higher Education Act of 1965 (20 U.S.C. 1003).
        (2) Board.--The term ``Board'' means the Board of the Center 
    appointed under subsection (d)(1).
        (3) Center.--The term ``Center'' means the National Center for 
    Research in Advanced Information and Digital Technologies 
    established under subsection (a).
        (4) Director.--The term ``Director'' means the Director of the 
    Center appointed under subsection (e)(1).
    SEC. 803. ESTABLISHMENT OF PILOT PROGRAM FOR COURSE MATERIAL 
      RENTAL.
    (a) Pilot Grant Program.--From the amounts appropriated pursuant to 
subsection (e), the Secretary of Education (referred to in this section 
as the ``Secretary'') shall make grants on a competitive basis to not 
more than ten institutions of higher education to support pilot 
programs that expand the services of bookstores to provide the option 
for students to rent course materials in order to achieve savings for 
students.
    (b) Application.--An institution of higher education that desires 
to obtain a grant under this section shall submit an application to the 
Secretary at such time, in such form, and containing or accompanied by 
such information, agreements, and assurances as the Secretary may 
reasonably require.
    (c) Use of Funds.--The funds made available by a grant under this 
section may be used for--
        (1) purchase of course materials that the entity will make 
    available by rent to students;
        (2) any equipment or software necessary for the conduct of a 
    rental program;
        (3) hiring staff needed for the conduct of a rental program, 
    with priority given to hiring enrolled undergraduate students; and
        (4) building or acquiring extra storage space dedicated to 
    course materials for rent.
    (d) Evaluation and Report.--
        (1) Evaluations by recipients.--After a period of time to be 
    determined by the Secretary, each institution of higher education 
    that receives a grant under this section shall submit a report to 
    the Secretary on the effectiveness of their rental programs in 
    reducing textbook costs for students.
        (2) Report to congress.--Not later than September 30, 2010, the 
    Secretary shall submit a report to Congress on the effectiveness of 
    the textbook rental pilot programs under this section, and identify 
    the best practices developed in such pilot programs. Such report 
    shall contain an estimate by the Secretary of the savings achieved 
    by students who participate in such pilot programs.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal years 2009 and 2010.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

    SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.
    Section 104 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4304) is amended--
        (1) by striking the section heading and inserting ``laurent 
    clerc national deaf education center'';
        (2) in subsection (a)(1)(A), by inserting ``the Laurent Clerc 
    National Deaf Education Center (referred to in this section as the 
    `Clerc Center') to carry out'' after ``maintain and operate''; and
        (3) in subsection (b)--
            (A) in the matter preceding subparagraph (A) of paragraph 
        (1), by striking ``elementary and secondary education 
        programs'' and inserting ``Clerc Center'';
            (B) in paragraph (2)--
                (i) by striking ``elementary and secondary education 
            programs'' and inserting ``Clerc Center''; and
                (ii) by striking ``section 618(a)(1)(A)'' and inserting 
            ``section 618(a)(1)'';
            (C) in paragraph (4), in subparagraph (C)--
                (i) by moving the margins 2 ems to the left;
                (ii) in clause (i), by striking ``(6)'' and inserting 
            ``(8)''; and
                (iii) in clause (vi), by striking ``(m)'' and inserting 
            ``(o)''; and
            (D) by adding at the end the following:
    ``(5) The University, for purposes of the elementary and secondary 
education programs carried out at the Clerc Center, shall--
        ``(A)(i) select challenging academic content standards, 
    challenging student academic achievement standards, and academic 
    assessments of a State, adopted and implemented, as appropriate, 
    pursuant to paragraphs (1) and (3) of section 1111(b) of the 
    Elementary and Secondary Education Act of 1965 (20 U.S.C. 
    6311(b)(1) and (3)) and approved by the Secretary; and
        ``(ii) implement such standards and assessments for such 
    programs by not later than the beginning of the 2009-2010 academic 
    year;
        ``(B) annually determine whether such programs at the Clerc 
    Center are making adequate yearly progress, as determined according 
    to the definition of adequate yearly progress defined (pursuant to 
    section 1111(b)(2)(C) of such Act (20 U.S.C. 6311(b)(2)(C))) by the 
    State that has adopted and implemented the standards and 
    assessments selected under subparagraph (A)(i); and
        ``(C) publicly report the results of the academic assessments 
    implemented under subparagraph (A), except where such reporting 
    would not yield statistically reliable information or would reveal 
    personally identifiable information about an individual student, 
    and whether the programs at the Clerc Center are making adequate 
    yearly progress, as determined under subparagraph (B).''.
    SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.
    Section 105(b)(4) of the Education of the Deaf Act of 1986 (20 
U.S.C. 4305(b)(4)) is amended--
        (1) by striking ``the Act of March 3, 1931 (40 U.S.C. 276a-
    276a-5) commonly referred to as the Davis-Bacon Act'' and inserting 
    ``subchapter IV of chapter 31 of title 40, United States Code, 
    commonly referred to as the Davis-Bacon Act''; 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. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE 
      DEAF.
    Section 112 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4332) is amended--
        (1) in subsection (a)(1), by striking the second sentence; and
        (2) in subsection (b)--
            (A) in paragraph (3), by striking ``Committee on Labor and 
        Human Resources of the Senate'' and inserting ``Committee on 
        Health, Education, Labor, and Pensions of the Senate''; and
            (B) in paragraph (5)--
                (i) by striking ``the Act of March 3, 1931 (40 U.S.C. 
            276a--276a-5) commonly referred to as the Davis-Bacon Act'' 
            and inserting ``subchapter IV of chapter 31 of title 40, 
            United States Code, commonly referred to as the Davis-Bacon 
            Act''; and
                (ii) 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. 904. CULTURAL EXPERIENCES GRANTS.
    (a) Cultural Experiences Grants.--Title I of the Education of the 
Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the 
end the following:

                        ``PART C--OTHER PROGRAMS

    ``SEC. 121. CULTURAL EXPERIENCES GRANTS.
    ``(a) In General.--The Secretary is authorized to, on a competitive 
basis, make grants to, and enter into contracts and cooperative 
agreements with, eligible entities to support the activities described 
in subsection (b).
    ``(b) Activities.--In carrying out this section, the Secretary 
shall support activities providing cultural experiences, through 
appropriate nonprofit organizations with a demonstrated proficiency in 
providing such activities, that--
        ``(1) enrich the lives of deaf and hard-of-hearing children and 
    adults;
        ``(2) increase public awareness and understanding of deafness 
    and of the artistic and intellectual achievements of deaf and hard-
    of-hearing persons; or
        ``(3) promote the integration of hearing, deaf, and hard-of-
    hearing persons through shared cultural, educational, and social 
    experiences.
    ``(c) Applications.--An eligible entity that desires to receive a 
grant, or enter into a contract or cooperative agreement, 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.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal years.''.
    (b) Conforming Amendment.--The title heading of title I of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended 
by adding at the end the following: ``; OTHER PROGRAMS''.
    SEC. 905. AUDIT.
    Section 203 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4353) is amended--
        (1) in subsection (b)--
            (A) in paragraph (2), by striking ``sections'' and all that 
        follows through the period 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 (b) and (c) of 
        section 209.''; and
            (B) in paragraph (3), by inserting ``and the Committee on 
        Education and Labor of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of the 
        Senate'' after ``Secretary''; and
        (2) in subsection (c)(2)(A), by striking ``Committee on Labor 
    and Human Resources of the Senate'' and inserting ``Committee on 
    Health, Education, Labor, and Pensions of the Senate''.
    SEC. 906. REPORTS.
    Section 204 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4354) is amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``Committee on Labor and Human Resources of the Senate'' and 
    inserting ``Committee on Health, Education, Labor, and Pensions of 
    the Senate'';
        (2) in paragraph (1), by striking ``preparatory,'';
        (3) in paragraph (2)(C), by striking ``upon graduation/
    completion'' and inserting ``on the date that is one year after the 
    date of graduation or completion''; and
        (4) in paragraph (3)(B), by striking ``of the institution of 
    higher education'' and all that follows through ``section 203'' and 
    inserting ``of NTID programs and activities''.
    SEC. 907. MONITORING, EVALUATION, AND REPORTING.
    Section 205 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4355) is amended--
        (1) in the first sentence of subsection (a), by striking 
    ``preparatory,'';
        (2) in subsection (b), by striking ``The Secretary, as part of 
    the annual report required under section 426 of the Department of 
    Education Organization Act, shall include a description of'' and 
    inserting ``The Secretary shall annually transmit information to 
    Congress on''; and
        (3) in subsection (c), by striking ``fiscal years 1998 through 
    2003'' and inserting ``fiscal years 2009 through 2014''.
    SEC. 908. 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. 909. 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 by striking ``fiscal years 1998 through 2003'' both 
places it appears and inserting ``fiscal years 2009 through 2014''.
    SEC. 910. 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 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. 911. INTERNATIONAL STUDENTS.
    Section 209 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4359a) is amended--
        (1) in subsection (a)--
            (A) by striking ``preparatory, undergraduate,'' and 
        inserting ``undergraduate'';
            (B) by striking ``Effective with'' and inserting the 
        following:
        ``(1) In general.--Except as provided in paragraph (2), 
    effective with''; and
            (C) by adding at the end the following:
        ``(2) Distance learning.--International students who 
    participate in distance learning courses that are at the University 
    or the NTID, who are residing outside of the United States, and are 
    not enrolled in a degree program at the University or the NTID 
    shall--
            ``(A) not be counted as international students for purposes 
        of the cap on international students under paragraph (1), 
        except that in any school year no United States citizen who 
        applies to participate in distance learning courses that are at 
        the University or NTID shall be denied participation in such 
        courses because of the participation of an international 
        student in such courses; and
            ``(B) not be charged a tuition surcharge, as described in 
        subsection (b).''; and
        (2) by striking subsections (b), (c), and (d), and inserting 
    the following:
    ``(b) Tuition Surcharge.--Except as provided in subsections 
(a)(2)(B) and (c), the tuition for postsecondary international students 
enrolled in the University (including undergraduate and graduate 
students) or NTID shall include, for academic year 2009-2010 and any 
succeeding academic year, a surcharge of--
        ``(1) 100 percent for a postsecondary international student 
    from a non-developing country; and
        ``(2) 50 percent for a postsecondary international student from 
    a developing country, or a country that was a developing country 
    for any academic year during the student's period of uninterrupted 
    enrollment in a degree program at the University or NTID, except 
    that such a surcharge shall not be adjusted retroactively.
    ``(c) Reduction of Surcharge.--
        ``(1) In general.--Beginning with the academic year 2009-2010, 
    the University or NTID may reduce the surcharge--
            ``(A) under subsection (b)(1) from 100 percent to not less 
        than 50 percent if--
                ``(i) a student described under subsection (b)(1) 
            demonstrates need; and
                ``(ii) such student has made a good-faith effort to 
            secure aid through such student's government or other 
            sources; and
            ``(B) under subsection (b)(2) from 50 percent to not less 
        than 25 percent if--
                ``(i) a student described under subsection (b)(2) 
            demonstrates need; and
                ``(ii) such student has made a good faith effort to 
            secure aid through such student's government or other 
            sources.
        ``(2) Development of sliding scale.--The University and NTID 
    shall develop a sliding scale model that--
            ``(A) will be used to determine the amount of a tuition 
        surcharge reduction pursuant to paragraph (1); and
            ``(B) shall be approved by the Secretary.
    ``(d) Definition.--In this section, the term `developing country' 
means a country with a per-capita income of not more than $5,345, 
measured in 2005 United States dollars, as adjusted by the Secretary to 
reflect inflation since 2005.''.
    SEC. 912. 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 Education and the 
Workforce 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''.
    SEC. 913. NATIONAL STUDY ON THE EDUCATION OF THE DEAF.
    (a) Conduct of Study.--Subsection (a)(1) of section 211 of the 
Education of the Deaf Act of 1986 (20 U.S.C. 4360) is amended by 
inserting after ``The Secretary shall'' the following: ``establish a 
commission on the education of the deaf (in this section referred to as 
the `commission') to''.
    (b) Public Input and Consultation.--Subsection (b) of such section 
is amended by striking ``Secretary'' each place the term appears and 
inserting ``commission''.
    (c) Report.--Subsection (c) of such section is amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``Secretary'' and all that follows through ``1998'' and inserting 
    ``commission shall report to the Secretary and Congress not later 
    than 18 months after the date of the enactment of the Higher 
    Education Opportunity Act''; and
        (2) in paragraph (1)--
            (A) by striking ``recommendations,'' and inserting 
        ``recommendations relating to educated-related factors that 
        contribute to successful postsecondary education experiences 
        and employment for individuals who are deaf,''; and
            (B) by striking ``Secretary'' and inserting ``commission''.
    (d) Authorization of Appropriations.--Subsection (d) of such 
section is amended by striking ``$1,000,000 for each of the fiscal 
years 1999 and 2000'' and inserting ``such sums as may be necessary for 
each of the fiscal years 2009 and 2010''.
    SEC. 914. AUTHORIZATION OF APPROPRIATIONS.
    Section 212 of the Education of the Deaf Act of 1986 (20 U.S.C. 
4360a) is amended--
        (1) in subsection (a), in the matter preceding paragraph (1), 
    by striking ``fiscal years 1998 through 2003'' and inserting 
    ``fiscal years 2009 through 2014''; and
        (2) in subsection (b), by striking ``fiscal years 1998 through 
    2003'' and inserting ``fiscal years 2009 through 2014''.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

    SEC. 921. UNITED STATES INSTITUTE OF PEACE ACT.
    (a) Powers and Duties.--Section 1705(b)(3) of the United States 
Institute of Peace Act (22 U.S.C. 4604(b)(3)) is amended by striking 
``the Arms Control and Disarmament Agency,''.
    (b) Board of Directors.--
        (1) Amendments.--Section 1706 of the United States Institute of 
    Peace Act (22 U.S.C. 4605) is amended--
            (A) by striking ``(b)(5)'' each place the term appears and 
        inserting ``(b)(4)''; and
            (B) in subsection (e), by adding at the end the following:
        ``(5) The term of a member of the Board shall not commence 
    until the member is confirmed by the Senate and sworn in as a 
    member of the Board.''.
        (2) Effective date.--The amendments made by paragraph (1) shall 
    take effect as if enacted on June 1, 2007, and shall apply to any 
    member of the Board of Directors of the Institute of Peace 
    confirmed by the Senate and sworn in as a member of the Board of 
    Directors on or after such date.
    (c) Funding.--Section 1710 of the United States Institute of Peace 
Act (22 U.S.C. 4609) is amended--
        (1) in subsection (a)(1), by striking ``to be appropriated'' 
    and all that follows through the period at the end and inserting 
    ``to be appropriated such sums as may be necessary for fiscal years 
    2009 through 2014.''; and
        (2) by adding at the end the following:
    ``(d) Extension.--Any authorization of appropriations made for the 
purposes of carrying out this title shall be extended in the same 
manner as applicable programs are extended under section 422 of the 
General Education Provisions Act.''.

 PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998; THE HIGHER EDUCATION 
                           AMENDMENTS OF 1992

    SEC. 931. REPEALS.
    The following provisions of title VIII of the Higher Education 
Amendments of 1998 (Public Law 105-244) are repealed:
        (1) Part A.
        (2) Part C (20 U.S.C. 1070 note).
        (3) Part F (20 U.S.C. 1862 note).
        (4) Part J.
        (5) Section 861.
        (6) Section 863.
    SEC. 932. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
      TRAINING FOR INCARCERATED INDIVIDUALS.
    Section 821 of the Higher Education Amendments of 1998 (20 U.S.C. 
1151) is amended to read as follows:
    ``SEC. 821. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
      TRAINING FOR INCARCERATED INDIVIDUALS.
    ``(a) Definition.--In this section, the term `incarcerated 
individual' means a male or female offender who is--
        ``(1) 35 years of age or younger; and
        ``(2) incarcerated in a State prison, including a prerelease 
    facility.
    ``(b) Grant Program.--The Secretary of Education (in this section 
referred to as the `Secretary')--
        ``(1) shall establish a program in accordance with this section 
    to provide grants to the State correctional education agencies in 
    the States to assist and encourage incarcerated individuals who 
    have obtained a secondary school diploma or its recognized 
    equivalent to acquire educational and job skills through--
            ``(A) coursework to prepare such individuals to pursue a 
        postsecondary education certificate, an associate's degree, or 
        bachelor's degree while in prison;
            ``(B) the pursuit of a postsecondary education certificate, 
        an associate's degree, or bachelor's degree while in prison; 
        and
            ``(C) employment counseling and other related services, 
        which start during incarceration and end not later than two 
        years after release from incarceration; and
        ``(2) may establish such performance objectives and reporting 
    requirements for State correctional education agencies receiving 
    grants under this section as the Secretary determines are necessary 
    to assess the effectiveness of the program under this section.
    ``(c) Application.--To be eligible for a grant under this section, 
a State correctional education agency shall submit to the Secretary a 
proposal for an incarcerated individual program that--
        ``(1) identifies the scope of the problem, including the number 
    of incarcerated individuals in need of postsecondary education and 
    career and technical training;
        ``(2) lists the accredited public or private educational 
    institution or institutions that will provide postsecondary 
    educational services;
        ``(3) lists the cooperating agencies, public and private, or 
    businesses that will provide related services, such as counseling 
    in the areas of career development, substance abuse, health, and 
    parenting skills;
        ``(4) describes specific performance objectives and evaluation 
    methods (in addition to, and consistent with, any objectives 
    established by the Secretary under subsection (b)(2)) that the 
    State correctional education agency will use in carrying out its 
    proposal, including--
            ``(A) specific and quantified student outcome measures that 
        are referenced to outcomes for non-program participants with 
        similar demographic characteristics; and
            ``(B) measures, consistent with the data elements and 
        definitions described in subsection (d)(1)(A), of--
                ``(i) program completion, including an explicit 
            definition of what constitutes a program completion within 
            the proposal;
                ``(ii) knowledge and skill attainment, including 
            specification of instruments that will measure knowledge 
            and skill attainment;
                ``(iii) attainment of employment both prior to and 
            subsequent to release;
                ``(iv) success in employment indicated by job retention 
            and advancement; and
                ``(v) recidivism, including such subindicators as time 
            before subsequent offense and severity of offense;
        ``(5) describes how the proposed program is to be integrated 
    with existing State correctional education programs (such as adult 
    education, graduate education degree programs, and career and 
    technical training) and State industry programs;
        ``(6) describes how the proposed program will--
            ``(A) deliver services under this section; and
            ``(B) utilize technology to deliver such services; and
        ``(7) describes how incarcerated individuals will be selected 
    so that only those eligible under subsection (e) will be enrolled 
    in postsecondary programs.
    ``(d) Program Requirements.--Each State correctional education 
agency receiving a grant under this section shall--
        ``(1) annually report to the Secretary regarding--
            ``(A) the results of the evaluations conducted using data 
        elements and definitions provided by the Secretary for the use 
        of State correctional education programs;
            ``(B) any objectives or requirements established by the 
        Secretary pursuant to subsection (b)(2);
            ``(C) the additional performance objectives and evaluation 
        methods contained in the proposal described in subsection 
        (c)(4) as necessary to document the attainment of project 
        performance objectives;
            ``(D) how the funds provided under this section are being 
        allocated among postsecondary preparatory education, 
        postsecondary academic programs, and career and technical 
        education programs; and
            ``(E) the service delivery methods being used for each 
        course offering; and
        ``(2) provide for each student eligible under subsection (e) 
    not more than--
            ``(A) $3,000 annually for tuition, books, and essential 
        materials; and
            ``(B) $300 annually for related services such as career 
        development, substance abuse counseling, parenting skills 
        training, and health education.
    ``(e) Student Eligibility.--An incarcerated individual who has 
obtained a secondary school diploma or its recognized equivalent shall 
be eligible for participation in a program receiving a grant under this 
section if such individual--
        ``(1) is eligible to be released within seven years (including 
    an incarcerated individual who is eligible for parole within such 
    time);
        ``(2) is 35 years of age or younger; and
        ``(3) has not been convicted of--
            ``(A) a `criminal offense against a victim who is a minor' 
        or a `sexually violent offense', as such terms are defined in 
        the Jacob Wetterling Crimes Against Children and Sexually 
        Violent Offender Registration Act (42 U.S.C. 14071 et seq.); or
            ``(B) murder, as described in section 1111 of title 18, 
        United States Code.
    ``(f) Length of Participation.--A State correctional education 
agency receiving a grant under this section shall provide educational 
and related services to each participating incarcerated individual for 
a period not to exceed seven years, not more than two years of which 
may be devoted to study in a graduate education degree program or to 
coursework to prepare such individuals to take college level courses. 
Educational and related services shall start during the period of 
incarceration in prison or prerelease, and the related services may 
continue for not more than two years after release from confinement.
    ``(g) Education Delivery Systems.--State correctional education 
agencies and cooperating institutions shall, to the extent practicable, 
use high-tech applications in developing programs to meet the 
requirements and goals of this section.
    ``(h) Allocation of Funds.--From the funds appropriated pursuant to 
subsection (i) for each fiscal year, the Secretary shall allot to each 
State an amount that bears the same relationship to such funds as the 
total number of students eligible under subsection (e) in such State 
bears to the total number of such students in all States.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal years 2009 through 2014.''.
    SEC. 933. UNDERGROUND RAILROAD EDUCATIONAL AND CULTURAL PROGRAM.
    Section 841 of the Higher Education Amendments of 1998 (20 U.S.C. 
1153) is amended--
        (1) in subsection (a), by inserting ``, including the lessons 
    to be drawn from such history'' after ``Railroad'';
        (2) in subsection (b)--
            (A) by striking paragraphs (1) and (2) and inserting the 
        following:
        ``(1) to establish a facility to--
            ``(A) house, display, interpret, and communicate 
        information regarding the artifacts and other materials related 
        to the history of the Underground Railroad, including the 
        lessons to be drawn from such history;
            ``(B) maintain such artifacts and materials; and
            ``(C) make the efforts described in subparagraph (A) 
        available, including through electronic means, to elementary 
        and secondary schools, institutions of higher education, and 
        the general public;
        ``(2) to demonstrate substantial public and private support for 
    the operation of the facility through the implementation of a 
    public-private partnership between one or more State or local 
    public entities and one or more private entities, which public-
    private partnership shall provide matching funds from non-federal 
    sources for the support of the facility in an amount equal to or 
    greater than four times the amount of the grant awarded under this 
    section;'';
            (B) in paragraph (4)--
                (i) by inserting ``and maintain'' after ``establish''; 
            and
                (ii) by inserting ``including the lessons to be drawn 
            from the history of the Underground Railroad,'' after 
            ``States,''; and
            (C) in paragraph (5)--
                (i) by inserting ``and maintain'' after ``establish''; 
            and
                (ii) by inserting ``, including the lessons to be drawn 
            from such history'' after ``Railroad''; and
        (3) in subsection (c), by striking ``this section'' and all 
    that follows through the period at the end and inserting 
    ``$3,000,000 for fiscal year 2009 and each of the five succeeding 
    fiscal years.''.
    SEC. 934. OLYMPIC SCHOLARSHIPS.
    Section 1543(d) of the Higher Education Amendments of 1992 (20 
U.S.C. 1070 note) is amended--
        (1) by striking ``1999'' and inserting ``2009''; and
        (2) by striking ``4'' and inserting ``five''.
    SEC. 935. ESTABLISHMENT OF A DEPUTY ASSISTANT SECRETARY FOR 
      INTERNATIONAL AND FOREIGN LANGUAGE EDUCATION.
    Section 205 of the Department of Education Organization Act (20 
U.S.C. 3415) is amended to read as follows:


                   ``office of postsecondary education

    ``Sec. 205.  (a) There shall be in the Department an Office of 
Postsecondary Education, to be administered by the Assistant Secretary 
for Postsecondary Education appointed under section 202(b). The 
Assistant Secretary shall administer such functions affecting 
postsecondary education, both public and private, as the Secretary 
shall delegate, and shall serve as the principal adviser to the 
Secretary on matters affecting postsecondary education.
    ``(b) The Assistant Secretary for Postsecondary Education shall 
appoint a Deputy Assistant Secretary for International and Foreign 
Language Education to perform such functions affecting postsecondary, 
international, and foreign language education as the Secretary may 
prescribe. The Deputy Assistant Secretary for International and Foreign 
Language Education shall--
        ``(1) be an individual with extensive background and experience 
    in international and foreign language education;
        ``(2) have responsibility for encouraging and promoting the 
    study of foreign languages and the study of the cultures of other 
    countries at the elementary, secondary, and postsecondary levels in 
    the United States; and
        ``(3) coordinate with related international and foreign 
    language education programs of other Federal agencies.''.

    PART D--TRIBAL COLLEGE AND UNIVERSITIES; NAVAJO HIGHER EDUCATION

              Subpart 1--Tribal Colleges and Universities

    SEC. 941. REAUTHORIZATION OF THE TRIBALLY CONTROLLED COLLEGE OR 
      UNIVERSITY ASSISTANCE ACT OF 1978.
    (a) Clarification of the Definition of National Indian 
Organization.--Section 2(a)(6) of the Tribally Controlled College or 
University Assistance Act of 1978 (25 U.S.C. 1801(a)(6)) is amended by 
striking ``in the field of Indian education'' and inserting ``in the 
fields of tribally controlled colleges and universities and Indian 
higher education''.
    (b) Indian Student Count.--Section 2(a) of the Tribally Controlled 
College or University Assistance Act of 1978 (25 U.S.C. 1801(a)) is 
amended--
        (1) by redesignating paragraphs (7) and (8) as paragraphs (8) 
    and (9), respectively; and
        (2) by inserting after paragraph (6) the following:
        ``(7) `Indian student' means a student who is--
            ``(A) a member of an Indian tribe; or
            ``(B) a biological child of a member of an Indian tribe, 
        living or deceased;''.
    (c) Continuing Education.--Section 2(b) of the Tribally Controlled 
College or University Assistance Act of 1978 (25 U.S.C. 1801(b)) is 
amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``paragraph (7) of subsection (a)'' and inserting ``subsection 
    (a)(8)'';
        (2) by striking paragraph (5) and inserting the following:
        ``(5) Eligible credits earned in a continuing education 
    program--
            ``(A) shall be determined as one credit for every ten 
        contact hours in the case of an institution on a quarter 
        system, or 15 contact hours in the case of an institution 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
            ``(B) shall be limited to ten percent of the Indian student 
        count of a tribally controlled college or university.''; and
        (3) by striking paragraph (6).
    (d) Accreditation Requirement.--Section 103 of the Tribally 
Controlled College or University Assistance Act of 1978 (25 U.S.C. 
1804) is amended--
        (1) in paragraph (2), by striking ``and'' at the end;
        (2) in paragraph (3), by striking the period at the end and 
    inserting ``; and''; and
        (3) by inserting after paragraph (3), the following:
        ``(4)(A) is accredited by a nationally recognized accrediting 
    agency or association determined by the Secretary of Education to 
    be a reliable authority with regard to the quality of training 
    offered; or
        ``(B) according to such an agency or association, is making 
    reasonable progress toward accreditation.''.
    (e) Technical Assistance Contracts.--Section 105 of the Tribally 
Controlled College or University Assistance Act of 1978 (25 U.S.C. 
1805) is amended--
        (1) by striking the section designation and heading and all 
    that follows through ``The Secretary shall'' and inserting the 
    following:
    ``SEC. 105. TECHNICAL ASSISTANCE CONTRACTS.
    ``(a) Technical Assistance.--
        ``(1) In general.--The Secretary shall'';
        (2) in the second sentence, by striking ``In the awarding of 
    contracts for technical assistance, preference shall be given'' and 
    inserting the following:
        ``(2) Designated organization.--The Secretary shall require 
    that a contract for technical assistance under paragraph (1) shall 
    be awarded''; and
        (3) in the third sentence, by striking ``No authority'' and 
    inserting the following:
    ``(b) Effect of Section.--No authority''.
    (f) Amount of Grants.--Section 108(a) of the Tribally Controlled 
College or University Assistance Act of 1978 (25 U.S.C. 1808(a)) is 
amended--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B), respectively, and indenting the subparagraphs 
    appropriately;
        (2) by striking ``(a) Except as provided in section 111,'' and 
    inserting the following:
    ``(a) Requirement.--
        ``(1) In general.--Except as provided in paragraph (2) and 
    section 111,'';
        (3) in paragraph (1) (as redesignated by paragraphs (1) and 
    (2))--
            (A) in the matter preceding subparagraph (A) (as 
        redesignated by paragraph (1))--
                (i) by striking ``him'' and inserting ``the 
            Secretary''; and
                (ii) by striking ``product of'' and inserting ``product 
            obtained by multiplying'';
            (B) in subparagraph (A) (as redesignated by paragraph (1)), 
        by striking ``section 2(a)(7)'' and inserting ``section 
        2(a)(8)''; and
            (C) in subparagraph (B) (as redesignated by paragraph (1)), 
        by striking ``$6,000,'' and inserting ``$8,000, as adjusted 
        annually for inflation.''; and
        (4) by striking ``except that no grant shall exceed the total 
    cost of the education program provided by such college or 
    university.'' and inserting the following:
        ``(2) Exception.--The amount of a grant under paragraph (1) 
    shall not exceed an amount equal to the total cost of the education 
    program provided by the applicable tribally controlled college or 
    university.''.
    (g) General Provisions Reauthorization.--Section 110(a) of the 
Tribally Controlled College or University Assistance Act of 1978 (25 
U.S.C. 1810(a)) is amended--
        (1) in paragraphs (1), (2), (3), and (4), by striking ``1999'' 
    and inserting ``2009'';
        (2) in paragraphs (1), (2), and (3), by striking ``4 
    succeeding'' and inserting ``five succeeding'';
        (3) in paragraph (2), by striking ``$40,000,000'' and inserting 
    ``such sums as may be necessary'';
        (4) in paragraph (3), by striking ``$10,000,000'' and inserting 
    ``such sums as may be necessary''; and
        (5) in paragraph (4), by striking ``succeeding 4'' and 
    inserting ``five succeeding''.
    (h) Endowment Program Reauthorization.--Section 306(a) of the 
Tribally Controlled College or University Assistance Act of 1978 (25 
U.S.C. 1836(a)) is amended--
        (1) by striking ``1999'' and inserting ``2009''; and
        (2) by striking ``4 succeeding'' and inserting ``five 
    succeeding''.
    (i) Tribal Economic Development 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 ``$2,000,000 for fiscal year 1999'' and 
    inserting ``such sums as may be necessary for fiscal year 2009''; 
    and
        (2) by striking ``4 succeeding'' and inserting ``five 
    succeeding''.
    (j) Tribally Controlled Postsecondary Career and Technical 
Institutions.--
        (1) In general.--The Tribally Controlled College or University 
    Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended by 
    adding at the end the following:

   ``TITLE V--TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL 
                              INSTITUTIONS

    ``SEC. 501. DEFINITION OF TRIBALLY CONTROLLED POSTSECONDARY CAREER 
      AND TECHNICAL INSTITUTION.
    ``In this title, the term `tribally controlled postsecondary career 
and technical institution' has the meaning given the term in section 3 
of the Carl D. Perkins Career and Technical Education Act of 2006 (20 
U.S.C. 2302).
    ``SEC. 502. TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL 
      INSTITUTIONS PROGRAM.
    ``(a) In General.--Subject to the availability of appropriations, 
for fiscal year 2009 and each fiscal year thereafter, the Secretary 
shall--
        ``(1) subject to subsection (b), select two tribally controlled 
    postsecondary career and technical institutions to receive 
    assistance under this title; and
        ``(2) provide funding to the selected tribally controlled 
    postsecondary career and technical institutions to pay the costs 
    (including institutional support costs) of operating postsecondary 
    career and technical education programs for Indian students at the 
    tribally controlled postsecondary career and technical 
    institutions.
    ``(b) Selection of Certain Institutions.--
        ``(1) Requirement.--For each fiscal year during which the 
    Secretary determines that a tribally controlled postsecondary 
    career and technical institution described in paragraph (2) meets 
    the definition referred to in section 501, the Secretary shall 
    select that tribally controlled postsecondary career and technical 
    institution under subsection (a)(1) to receive funding under this 
    section.
        ``(2) Institutions.--The two tribally controlled postsecondary 
    career and technical institutions referred to in paragraph (1) 
    are--
            ``(A) the United Tribes Technical College; and
            ``(B) the Navajo Technical College.
    ``(c) Method of Payment.--For each applicable fiscal year, the 
Secretary shall provide funding under this section to each tribally 
controlled postsecondary career and technical institution selected for 
the fiscal year under subsection (a)(1) in a lump sum payment for the 
fiscal year.
    ``(d) Distribution.--
        ``(1) In general.--For fiscal year 2009 and each fiscal year 
    thereafter, of amounts made available pursuant to section 504, the 
    Secretary shall distribute to each tribally controlled 
    postsecondary career and technical institution selected for the 
    fiscal year under subsection (a)(1) an amount equal to the greater 
    of--
            ``(A) the total amount appropriated for the tribally 
        controlled postsecondary career and technical institution for 
        fiscal year 2006; or
            ``(B) the total amount appropriated for the tribally 
        controlled postsecondary career and technical institution for 
        fiscal year 2008.
        ``(2) Excess amounts.--If, for any fiscal year, the amount made 
    available pursuant to section 504 exceeds the sum of the amounts 
    required to be distributed under paragraph (1) to the tribally 
    controlled postsecondary career and technical institutions selected 
    for the fiscal year under subsection (a)(1), the Secretary shall 
    distribute to each tribally controlled postsecondary career and 
    technical institution selected for that fiscal year a portion of 
    the excess amount, to be determined by--
            ``(A) dividing the excess amount by the aggregate Indian 
        student count (as defined in section 117(h) of the Carl D. 
        Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
        2327(h)) of such institutions for the prior academic year; and
            ``(B) multiplying the quotient described in subparagraph 
        (A) by the Indian student count of each such institution for 
        the prior academic year.
    ``SEC. 503. APPLICABILITY OF OTHER LAWS.
    ``(a) In General.--Paragraphs (4) and (8) of subsection (a), and 
subsection (b), of section 2, sections 105, 108, 111, 112 and 113, and 
titles II, III, and IV shall not apply to this title.
    ``(b) Indian Self-Determination and Education Assistance.--Funds 
made available pursuant to this title shall be subject to the Indian 
Self-Determination and Education Assistance Act (25 U.S.C. 450 et 
seq.).
    ``(c) Election to Receive.--A tribally controlled postsecondary 
career and technical institution selected for a fiscal year under 
section 502(b) may elect to receive funds pursuant to section 502 in 
accordance with an agreement between the tribally controlled 
postsecondary career and technical institution and the Secretary under 
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450 et seq.) if the agreement is in existence on the date of enactment 
of the Higher Education Opportunity Act.
    ``(d) Other Assistance.--Eligibility for, or receipt of, assistance 
under this title shall not preclude the eligibility of a tribally 
controlled postsecondary career and technical institution to receive 
Federal financial assistance under--
        ``(1) any program under the Higher Education Act of 1965 (20 
    U.S.C. 1001 et seq.);
        ``(2) any program under the Carl D. Perkins Career and 
    Technical Education Act of 2006; or
        ``(3) any other applicable program under which a benefit is 
    provided for--
            ``(A) institutions of higher education;
            ``(B) community colleges; or
            ``(C) postsecondary educational institutions.
    ``SEC. 504. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated such sums as are 
necessary for fiscal year 2009 and each fiscal year thereafter to carry 
out this title.''.
        (2) Conforming amendments.--Section 117 of the Carl D. Perkins 
    Career and Technical Education Act of 2006 (20 U.S.C. 2327) is 
    amended--
            (A) by striking subsection (a) and inserting the following:
    ``(a) Grant Program.--Subject to the availability of 
appropriations, the Secretary shall make grants under this section, to 
provide basic support for the education and training of Indian 
students, to tribally controlled postsecondary career and technical 
institutions that are not receiving Federal assistance as of the date 
on which the grant is provided under--
        ``(1) title I of the Tribally Controlled Colleges and 
    Universities Assistance Act of 1978 (25 U.S.C. 1802 et seq.); or
        ``(2) the Navajo Community College Act (25 U.S.C. 640a et 
    seq.).''; and
            (B) by striking subsection (d) and inserting the following:
    ``(d) Applications.--To be eligible to receive a grant under this 
section, a tribally controlled postsecondary career and technical 
institution that is not receiving Federal assistance under title I of 
the Tribally Controlled Colleges and Universities Assistance Act of 
1978 (25 U.S.C. 1802 et seq.) or the Navajo Community College Act (25 
U.S.C. 640a et seq.) shall submit to the Secretary an application at 
such time, in such manner, and containing such information as the 
Secretary may require.''.
    (k) Short Title.--
        (1) In general.--The first section of the Tribally Controlled 
    College or University Assistance Act of 1978 (25 U.S.C. 1801 note; 
    Public Law 95-471) is amended to read as follows:
``SECTION 1. SHORT TITLE.
    ``This Act may be cited as the `Tribally Controlled Colleges and 
Universities Assistance Act of 1978'.''.
        (2) Technical amendments.--
            (A) Equity in educational land-grant status act of 1994.--
        Section 533(c)(4)(A) of the Equity in Educational Land-Grant 
        Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
        ``Tribally Controlled College or University Assistance Act of 
        1978'' and inserting ``Tribally Controlled Colleges and 
        Universities Assistance Act of 1978''.
            (B) National museum of the american indian act.--Section 
        10(b)(2) of the National Museum of the American Indian Act (20 
        U.S.C. 80q-8(b)(2)) is amended by striking ``tribally 
        controlled community colleges (as defined in section 2 of the 
        Tribally Controlled Community College Assistance Act of 1978)'' 
        and inserting ``tribally controlled colleges or universities 
        (as defined in section 2(a) of the Tribally Controlled Colleges 
        and Universities Assistance Act of 1978)''.
            (C) Individuals with disabilities education act.--Section 
        602(17)(B) of the Individuals with Disabilities Education Act 
        (20 U.S.C. 1401(17)(B)) is amended--
                (i) by striking ``community college'' and inserting 
            ``college or university''; and
                (ii) by striking ``the Tribally Controlled College or 
            University Assistance Act of 1978'' and inserting ``the 
            Tribally Controlled Colleges and Universities Assistance 
            Act of 1978''.
            (D) Carl d. perkins career and technical education act of 
        2006.--The Carl D. Perkins Career and Technical Education Act 
        of 2006 (20 U.S.C. 2301 et seq.) is amended--
                (i) in section 3(33) (20 U.S.C. 2302(33)), by striking 
            ``the Tribally Controlled College or University Assistance 
            Act of 1978'' and inserting ``the Tribally Controlled 
            Colleges and Universities Assistance Act of 1978'';
                (ii) in section 117 (20 U.S.C. 2327), by striking ``the 
            Tribally Controlled College or University Assistance Act of 
            1978'' each place the term appears and inserting ``the 
            Tribally Controlled Colleges and Universities Assistance 
            Act of 1978''; and
                (iii) in section 203(a)(1)(B)(i)(I)(bb)(AA) (20 U.S.C. 
            2373(a)(1)(B)(i)(I)(bb)(AA)), by striking ``the Tribally 
            Controlled College or University Assistance Act of 1978'' 
            and inserting ``the Tribally Controlled Colleges and 
            Universities Assistance Act of 1978''.
            (E) Omnibus education reconciliation act of 1981.--Section 
        528 of the Omnibus Education Reconciliation Act of 1981 (20 
        U.S.C. 3489) is amended by striking ``the Tribally Controlled'' 
        and all that follows through ``1978'' and inserting ``the 
        Tribally Controlled Colleges and Universities Assistance Act of 
        1978''.
            (F) Elementary and secondary education act of 1965.--The 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 
        et seq.) is amended--
                (i) in section 3301(3) (20 U.S.C. 7011(3)), by striking 
            ``the Tribally Controlled College or University Assistance 
            Act of 1978'' and inserting ``the Tribally Controlled 
            Colleges and Universities Assistance Act of 1978''; and
                (ii) in section 7134(b)(1)(A) (20 U.S.C. 
            7454(b)(1)(A)), by striking ``the Tribally Controlled 
            College or University Assistance Act of 1978'' and 
            inserting ``the Tribally Controlled Colleges and 
            Universities Assistance Act of 1978''.
            (G) Augustus f. hawkins-robert t. stafford elementary and 
        secondary school improvement amendments of 1988.--Section 
        5404(a)(1) of the Augustus F. Hawkins-Robert T. Stafford 
        Elementary and Secondary School Improvement Amendments of 1988 
        (25 U.S.C. 13d-2(a)(1)) is amended by striking ``the Tribally 
        Controlled'' and all that follows through ``1978'' and 
        inserting ``the Tribally Controlled Colleges and Universities 
        Assistance Act of 1978''.
            (H) Indian self-determination and education assistance 
        act.--Section 403(b)(4)(A) of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 458cc(b)(4)(A)) is amended 
        by striking ``the Tribally Controlled'' and all that follows 
        through ``1978'' and inserting ``the Tribally Controlled 
        Colleges and Universities Assistance Act of 1978''.
            (I) Indian health care improvement act.--The Indian Health 
        Care Improvement Act (25 U.S.C. 1601 et seq.) is amended--
                (i) in section 113(b)(1) (25 U.S.C. 1616f(b)(1)), by 
            striking ``tribally-controlled'' and all that follows 
            through ``1978)'' and inserting ``tribally controlled 
            colleges or universities (within the meaning of section 
            2(a)(4) of the Tribally Controlled Colleges and 
            Universities Act of 1978)'';
                (ii) in section 115(e) (25 U.S.C. 1616h(e)(2))--

                    (I) in paragraph (1)(A), by striking ``a tribally 
                controlled community college'' and inserting ``a junior 
                or community college that is a tribally controlled 
                college or university''; and
                    (II) by striking paragraph (2) and inserting the 
                following:

        ``(2) The term `tribally controlled college or university' has 
    the meaning given to such term by section 2(a)(4) of the Tribally 
    Controlled Colleges and Universities Assistance Act of 1978.''; and
                (iii) by striking paragraph (3) of section 711(g) (25 
            U.S.C. 1665j(g)) and inserting the following:
        ``(3) The term `tribally controlled community college' means a 
    community college that is a tribally controlled college or 
    university, as such term is defined in section 2(a)(4) of the 
    Tribally Controlled Colleges and Universities Assistance Act of 
    1978.''.
            (J) Indian child protection and family violence prevention 
        act.--Section 411(d)(5)(C) of the Indian Child Protection and 
        Family Violence Prevention Act (25 U.S.C. 3210(d)(5)(C)) is 
        amended by striking ``tribally controlled'' and all that 
        follows through the semicolon at the end and inserting 
        ``tribally controlled college or university (within the meaning 
        of section 2 of the Tribally Controlled Colleges and 
        Universities Assistance Act of 1978);''.
            (K) Assistive technology act of 1998.--Section 3(11) of the 
        Assistive Technology Act of 1998 (29 U.S.C. 3002(11)) is 
        amended by striking ``the Tribally Controlled College or 
        University Assistance Act of 1978'' and inserting ``the 
        Tribally Controlled Colleges and Universities Assistance Act of 
        1978''.
            (L) Atomic energy act of 1954.--Section 244(a)(3) of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2015c(a)(3)) is amended by 
        striking ``the Tribally Controlled College or University 
        Assistance Act of 1978'' and inserting ``the Tribally 
        Controlled Colleges and Universities Assistance Act of 1978''.
            (M) Department of energy science education enhancement 
        act.--Section 3167(a)(5) of the Department of Energy Science 
        Education Enhancement Act (42 U.S.C. 7381c-1(a)(5)) is amended 
        by striking ``the Tribally Controlled College Assistance Act of 
        1978'' and inserting ``the Tribally Controlled Colleges and 
        Universities Assistance Act of 1978''.
            (N) ED 1.0 act.--The ED 1.0 Act (47 U.S.C. 902 note) is 
        amended in subsection (a)(2)(C) by striking ``the Tribally 
        Controlled College or University Assistance Act of 1978'' and 
        inserting ``the Tribally Controlled Colleges and Universities 
        Assistance Act of 1978''.

                   Subpart 2--Navajo Higher Education

    SEC. 945. SHORT TITLE.
    This subpart may be cited as the ``Navajo Nation Higher Education 
Act of 2008''.
    SEC. 946. REAUTHORIZATION OF NAVAJO COMMUNITY COLLEGE ACT.
    (a) Purpose.--Section 2 of the Navajo Community College Act (25 
U.S.C. 640a) is amended--
        (1) by striking ``Navajo Tribe of Indians'' and inserting 
    ``Navajo Nation''; and
        (2) by striking ``the Navajo Community College'' and inserting 
    ``Dine College''.
    (b) Grants.--Section 3 of the Navajo Community College Act (25 
U.S.C. 640b) is amended--
        (1) in the first sentence--
            (A) by inserting ``the'' before ``Interior'';
            (B) by striking ``Navajo Tribe of Indians'' and inserting 
        ``Navajo Nation''; and
            (C) by striking ``the Navajo Community College'' and 
        inserting ``Dine College''; and
        (2) in the second sentence--
            (A) by striking ``Navajo Tribe'' and inserting ``Navajo 
        Nation''; and
            (B) by striking ``Navajo Indians'' and inserting ``Navajo 
        people''.
    (c) Study of Facilities Needs.--Section 4 of the Navajo Community 
College Act (25 U.S.C. 640c) is amended--
        (1) in subsection (a)--
            (A) in the first sentence--
                (i) by striking ``the Navajo Community College'' and 
            inserting ``Dine College''; and
                (ii) by striking ``August 1, 1979'' and inserting 
            ``October 31, 2010''; and
            (B) in the second sentence, by striking ``Navajo Tribe'' 
        and inserting ``Navajo Nation'';
        (2) in subsection (b), by striking ``the date of enactment of 
    the Tribally Controlled Community College Assistance Act of 1978'' 
    and inserting ``October 1, 2007''; and
        (3) in subsection (c), in the first sentence, by striking ``the 
    Navajo Community College'' and inserting ``Dine College''.
    (d) Authorization of Appropriations.--Section 5 of the Navajo 
Community College Act (25 U.S.C. 640c-1) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), by striking ``$2,000,000'' and all 
        that follows through the end of the paragraph and inserting 
        ``such sums as are necessary for fiscal years 2009 through 
        2014.''; and
            (B) by adding at the end the following:
    ``(3) Sums described in paragraph (2) shall be used to provide 
grants for construction activities, including the construction of 
buildings, water and sewer facilities, roads, information technology 
and telecommunications infrastructure, classrooms, and external 
structures (such as walkways).'';
        (2) in subsection (b)(1)--
            (A) in the matter preceding subparagraph (A)--
                (i) by striking ``the Navajo Community College'' and 
            inserting ``Dine College''; and
                (ii) by striking ``, for each fiscal year'' and all 
            that follows through ``for--'' and inserting ``such sums as 
            are necessary for fiscal years 2009 through 2014 to pay the 
            cost of--'';
            (B) in subparagraph (A)--
                (i) by striking ``college'' and inserting ``College'';
                (ii) in clauses (i) and (iii), by striking the commas 
            at the ends of the clauses and inserting semicolons; and
                (iii) in clause (ii), by striking ``, and'' at the end 
            and inserting ``; and'';
            (C) in subparagraph (B), by striking the comma at the end 
        and inserting a semicolon;
            (D) in subparagraph (C), by striking ``, and'' at the end 
        and inserting a semicolon;
            (E) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (F) by adding at the end the following:
            ``(E) improving and expanding the College, including by 
        providing, for the Navajo people and others in the community of 
        the College--
                ``(i) higher education programs;
                ``(ii) career and technical education;
                ``(iii) activities relating to the preservation and 
            protection of the Navajo language, philosophy, and culture;
                ``(iv) employment and training opportunities;
                ``(v) economic development and community outreach; and
                ``(vi) a safe learning, working, and living 
            environment.''; and
        (3) in subsection (c), by striking ``the Navajo Community 
    College'' and inserting ``Dine College''.
    (e) Effect on Other Laws.--Section 6 of the Navajo Community 
College Act (25 U.S.C. 640c-2) is amended--
        (1) by striking ``the Navajo Community College'' each place it 
    appears and inserting ``Dine College''; and
        (2) in subsection (b), by striking ``college'' and inserting 
    ``College''.
    (f) Payments; Interest.--Section 7 of the Navajo Community College 
Act (25 U.S.C. 640c-3) is amended by striking ``the Navajo Community 
College'' each place it appears and inserting ``Dine College''.

       PART E--OMNIBUS CRIME CONTROL AND SAFE STREETS ACT OF 1968

    SEC. 951. SHORT TITLE.
    This part may be cited as the ``John R. Justice Prosecutors and 
Defenders Incentive Act of 2008''.
    SEC. 952. LOAN REPAYMENT FOR PROSECUTORS AND DEFENDERS.
    Title I of the Omnibus Crime Control and Safe Streets Act of 1968 
(42 U.S.C. 3711 et seq.) is amended by inserting after part II (42 
U.S.C. 3797cc et seq.) the following:

     ``PART JJ--LOAN REPAYMENT FOR PROSECUTORS AND PUBLIC DEFENDERS

``SEC. 3001. GRANT AUTHORIZATION.
    ``(a) Purpose.--The purpose of this section is to encourage 
qualified individuals to enter and continue employment as prosecutors 
and public defenders.
    ``(b) Definitions.--In this section:
        ``(1) Prosecutor.--The term `prosecutor' means a full-time 
    employee of a State or unit of local government who--
            ``(A) is continually licensed to practice law; and
            ``(B) prosecutes criminal or juvenile delinquency cases at 
        the State or unit of local government level (including 
        supervision, education, or training of other persons 
        prosecuting such cases).
        ``(2) Public defender.--The term `public defender' means an 
    attorney who--
            ``(A) is continually licensed to practice law; and
            ``(B) is--
                ``(i) a full-time employee of a State or unit of local 
            government who provides legal representation to indigent 
            persons in criminal or juvenile delinquency cases 
            (including supervision, education, or training of other 
            persons providing such representation);
                ``(ii) a full-time employee of a nonprofit organization 
            operating under a contract with a State or unit of local 
            government, who devotes substantially all of the employee's 
            full-time employment to providing legal representation to 
            indigent persons in criminal or juvenile delinquency cases 
            (including supervision, education, or training of other 
            persons providing such representation); or
                ``(iii) employed as a full-time Federal defender 
            attorney in a defender organization established pursuant to 
            subsection (g) of section 3006A of title 18, United States 
            Code, that provides legal representation to indigent 
            persons in criminal or juvenile delinquency cases.
        ``(3) Student loan.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the term `student loan' means--
                ``(i) a loan made, insured, or guaranteed under part B 
            of title IV of the Higher Education Act of 1965 (20 U.S.C. 
            1071 et seq.);
                ``(ii) a loan made under part D or E of title IV of the 
            Higher Education Act of 1965 (20 U.S.C. 1087a et seq. and 
            1087aa et seq.); and
                ``(iii) a loan made under section 428C or 455(g) of the 
            Higher Education Act of 1965 (20 U.S.C. 1078-3 and 
            1087e(g)).
            ``(B) Exclusion of parent plus loans.--The term `student 
        loan' does not include any of the following loans:
                ``(i) A loan made to the parents of a dependent student 
            under section 428B of the Higher Education Act of 1965 (20 
            U.S.C. 1078-2).
                ``(ii) A Federal Direct PLUS Loan made to the parents 
            of a dependent student.
                ``(iii) A loan made under section 428C or 455(g) of the 
            Higher Education Act of 1965 (20 U.S.C. 1078-3 and 
            1087e(g)) to the extent that such loan was used to repay a 
            loan described in clause (i) or (ii).
    ``(c) Program Authorized.--The Attorney General shall establish a 
program by which the Department of Justice shall assume the obligation 
to repay a student loan, by direct payments on behalf of a borrower to 
the holder of such loan, in accordance with subsection (d), for any 
borrower who--
        ``(1) is employed as a prosecutor or public defender; and
        ``(2) is not in default on a loan for which the borrower seeks 
    forgiveness.
    ``(d) Terms of Agreement.--
        ``(1) In general.--To be eligible to receive repayment benefits 
    under subsection (c), a borrower shall enter into a written 
    agreement that specifies that--
            ``(A) the borrower will remain employed as a prosecutor or 
        public defender for a required period of service of not less 
        than three years, unless involuntarily separated from that 
        employment;
            ``(B) if the borrower is involuntarily separated from 
        employment on account of misconduct, or voluntarily separates 
        from employment, before the end of the period specified in the 
        agreement, the borrower will repay the Attorney General the 
        amount of any benefits received by such employee under this 
        section;
            ``(C) if the borrower is required to repay an amount to the 
        Attorney General under subparagraph (B) and fails to repay such 
        amount, a sum equal to that amount shall be recoverable by the 
        Federal Government from the employee (or such employee's 
        estate, if applicable) by such methods as are provided by law 
        for the recovery of amounts owed to the Federal Government;
            ``(D) the Attorney General may waive, in whole or in part, 
        a right of recovery under this subsection if it is shown that 
        recovery would be against equity and good conscience or against 
        the public interest; and
            ``(E) the Attorney General shall make student loan payments 
        under this section for the period of the agreement, subject to 
        the availability of appropriations.
        ``(2) Repayments.--
            ``(A) In general.--Any amount repaid by, or recovered from, 
        an individual or the estate of an individual under this 
        subsection shall be credited to the appropriation account from 
        which the amount involved was originally paid.
            ``(B) Merger.--Any amount credited under subparagraph (A) 
        shall be merged with other sums in such account and shall be 
        available for the same purposes and period, and subject to the 
        same limitations, if any, as the sums with which the amount was 
        merged.
        ``(3) Limitations.--
            ``(A) Student loan payment amount.--Student loan repayments 
        made by the Attorney General under this section shall be made 
        subject to such terms, limitations, or conditions as may be 
        mutually agreed upon by the borrower and the Attorney General 
        in an agreement under paragraph (1), except that the amount 
        paid by the Attorney General under this section shall not 
        exceed--
                ``(i) $10,000 for any borrower in any calendar year; or
                ``(ii) an aggregate total of $60,000 in the case of any 
            borrower.
            ``(B) Beginning of payments.--Nothing in this section shall 
        authorize the Attorney General to pay any amount to reimburse a 
        borrower for any repayments made by such borrower prior to the 
        date on which the Attorney General entered into an agreement 
        with the borrower under this subsection.
    ``(e) Additional Agreements.--
        ``(1) In general.--On completion of the required period of 
    service under an agreement under subsection (d), the borrower and 
    the Attorney General may, subject to paragraph (2), enter into an 
    additional agreement in accordance with subsection (d).
        ``(2) Term.--An agreement entered into under paragraph (1) may 
    require the borrower to remain employed as a prosecutor or public 
    defender for less than three years.
    ``(f) Award Basis; Priority.--
        ``(1) Award basis.--Subject to paragraph (2), the Attorney 
    General shall provide repayment benefits under this section--
            ``(A) giving priority to borrowers who have the least 
        ability to repay their loans, except that the Attorney General 
        shall determine a fair allocation of repayment benefits among 
        prosecutors and public defenders, and among employing entities 
        nationwide; and
            ``(B) subject to the availability of appropriations.
        ``(2) Priority.--The Attorney General shall give priority in 
    providing repayment benefits under this section in any fiscal year 
    to a borrower who--
            ``(A) received repayment benefits under this section during 
        the preceding fiscal year; and
            ``(B) has completed less than three years of the first 
        required period of service specified for the borrower in an 
        agreement entered into under subsection (d).
    ``(g) Regulations.--The Attorney General is authorized to issue 
such regulations as may be necessary to carry out the provisions of 
this section.
    ``(h) Report by Inspector General.--Not later than three years 
after the date of the enactment of this section, the Inspector General 
of the Department of Justice shall submit to Congress a report on--
        ``(1) the cost of the program authorized under this section; 
    and
        ``(2) the impact of such program on the hiring and retention of 
    prosecutors and public defenders.
    ``(i) GAO Study.--Not later than one year after the date of the 
enactment of this section, the Comptroller General shall conduct a 
study of, and report to Congress on, the impact that law school 
accreditation requirements and other factors have on the costs of law 
school and student access to law school, including the impact of such 
requirements on racial and ethnic minorities.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 2009 
and such sums as may be necessary for each of the five succeeding 
fiscal years.''.

        PART F--INSTITUTIONAL LOAN REPAYMENT ASSISTANCE PROGRAMS

    SEC. 961. INSTITUTIONAL LOAN FORGIVENESS PROGRAMS.
    Notwithstanding any other provision of law--
        (1) a public or private institution of higher education may 
    provide an officer or employee of any branch of the United States 
    Government, of any independent agency of the United States, or of 
    the District of Columbia, who is a current or former student of 
    such institution, financial assistance for the purpose of repaying 
    a student loan or providing forbearance of student loan repayment 
    if--
            (A) such repayment or forbearance is provided to such 
        officer or employee in accordance with a written, published 
        policy of the institution relating to repaying or providing 
        forbearance, respectively, for students or former students who 
        perform public service; and
            (B) in the case of a former student of the institution of 
        higher education, the policy described in subparagraph (A) was 
        in effect at the institution of higher education on the day 
        before the date such officer or employee graduated from or 
        otherwise ceased being a student at such institution; and
        (2) an officer or employee of any branch of the United States 
    Government, of any independent agency of the United States, or of 
    the District of Columbia may receive repayment or forbearance 
    permitted under paragraph (1).

 PART G--MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS TECHNOLOGY 
                          OPPORTUNITY PROGRAM

    SEC. 971. MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS 
      TECHNOLOGY OPPORTUNITY PROGRAM.
    Section 5 of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3704) is amended by inserting after subsection (b) the 
following:
    ``(c) Minority Serving Institution Digital and Wireless Technology 
Opportunity Program.--
        ``(1) In general.--The Secretary shall establish a Minority 
    Serving Institution Digital and Wireless Technology Opportunity 
    Program that awards grants, cooperative agreements, and contracts 
    to eligible institutions to enable the eligible institutions in 
    acquiring, and augmenting the institutions' use of, digital and 
    wireless networking technologies to improve the quality and 
    delivery of educational services at eligible institutions.
        ``(2) Application and review procedures.--
            ``(A) In general.--To be eligible to receive a grant, 
        cooperative agreement, or contract under this subsection, an 
        eligible institution shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require. Such application, at 
        a minimum, shall include a description of how the funds will be 
        used, including a description of any digital and wireless 
        networking technology to be acquired, and a description of how 
        the institution will ensure that digital and wireless 
        networking technology will be made accessible to, and employed 
        by, students, faculty, and administrators. The Secretary, 
        consistent with subparagraph (C) and in consultation with the 
        advisory council established under subparagraph (B), shall 
        establish procedures to review such applications. The Secretary 
        shall publish the application requirements and review criteria 
        in the Federal Register, along with a statement describing the 
        availability of funds.
            ``(B) Advisory council.--The Secretary shall establish an 
        advisory council to advise the Secretary on the best approaches 
        to encourage maximum participation by eligible institutions in 
        the program established under paragraph (1), and on the 
        procedures to review applications submitted to the program. In 
        selecting the members of the advisory council, the Secretary 
        shall consult with representatives of appropriate 
        organizations, including representatives of eligible 
        institutions, to ensure that the membership of the advisory 
        council includes representatives of minority businesses and 
        eligible institution communities. The Secretary shall also 
        consult with experts in digital and wireless networking 
        technology to ensure that such expertise is represented on the 
        advisory council.
            ``(C) Review panels.--Each application submitted under this 
        subsection by an eligible institution shall be reviewed by a 
        panel of individuals selected by the Secretary to judge the 
        quality and merit of the proposal, including the extent to 
        which the eligible institution can effectively and successfully 
        utilize the proposed grant, cooperative agreement, or contract 
        to carry out the program described in paragraph (1). The 
        Secretary shall ensure that the review panels include 
        representatives of minority serving institutions and others who 
        are knowledgeable about eligible institutions and technology 
        issues. The Secretary shall ensure that no individual assigned 
        under this subsection to review any application has a conflict 
        of interest with regard to that application. The Secretary 
        shall take into consideration the recommendations of the review 
        panel in determining whether to award a grant, cooperative 
        agreement, or contract to an eligible institution.
        ``(3) Awards.--
            ``(A) Limitation.--An eligible institution that receives a 
        grant, cooperative agreement, or contract under this subsection 
        that exceeds $2,500,000 shall not be eligible to receive 
        another grant, cooperative agreement, or contract under this 
        subsection.
            ``(B) Consortia.--Grants, cooperative agreements, and 
        contracts may only be awarded to eligible institutions. 
        Eligible institutions may seek funding under this subsection 
        for consortia, which may include other eligible institutions, a 
        State or a State educational agency, local educational 
        agencies, institutions of higher education, community-based 
        organizations, national nonprofit organizations, or businesses, 
        including minority businesses.
            ``(C) Planning grants.--The Secretary may provide funds to 
        develop strategic plans to implement grants, cooperative 
        agreements, or contracts awarded under this subsection.
            ``(D) Institutional diversity.--In awarding grants, 
        cooperative agreements, and contracts to eligible institutions, 
        the Secretary shall ensure, to the extent practicable, that 
        awards are made to all types of institutions eligible for 
        assistance under this subsection.
            ``(E) Need.--In awarding funds under this subsection, the 
        Secretary shall give priority to the eligible institution with 
        the greatest demonstrated need for assistance.
        ``(4) Authorized activities.--An eligible institution may use a 
    grant, cooperative agreement, or contract awarded under this 
    subsection--
            ``(A) to acquire equipment, instrumentation, networking 
        capability, hardware and software, digital network technology, 
        wireless technology, and infrastructure to further the 
        objective of the program described in paragraph (1);
            ``(B) to develop and provide training, education, and 
        professional development programs, including faculty 
        development, to increase the use of, and usefulness of, digital 
        and wireless networking technology;
            ``(C) to provide teacher education, including the provision 
        of preservice teacher training and in-service professional 
        development at eligible institutions, library and media 
        specialist training, and preschool and teacher aid 
        certification to individuals who seek to acquire or enhance 
        technology skills in order to use digital and wireless 
        networking technology in the classroom or instructional 
        process, including instruction in science, mathematics, 
        engineering, and technology subjects;
            ``(D) to obtain capacity-building technical assistance, 
        including through remote technical support, technical 
        assistance workshops, and distance learning services; or
            ``(E) to foster the use of digital and wireless networking 
        technology to improve research and education, including 
        scientific, mathematics, engineering, and technology 
        instruction.
        ``(5) Information dissemination.--The Secretary shall convene 
    an annual meeting of eligible institutions receiving grants, 
    cooperative agreements, or contracts under this subsection to 
    foster collaboration and capacity-building activities among 
    eligible institutions.
        ``(6) Matching requirement.--The Secretary may not award a 
    grant, cooperative agreement, or contract to an eligible 
    institution under this subsection unless such institution agrees 
    that, with respect to the costs incurred by the institution in 
    carrying out the program for which the grant, cooperative 
    agreement, or contract was awarded, such institution shall make 
    available, directly, or through donations from public or private 
    entities, non-Federal contributions in an amount equal to 25 
    percent of the grant, cooperative agreement, or contract awarded by 
    the Secretary, or $500,000, whichever is the lesser amount. The 
    Secretary shall waive the matching requirement for any institution 
    or consortium with no endowment, or an endowment that has a current 
    dollar value lower than $50,000,000.
        ``(7) Annual report and assessments.--
            ``(A) Annual report required from recipients.--Each 
        eligible institution that receives a grant, cooperative 
        agreement, or contract awarded under this subsection shall 
        provide an annual report to the Secretary on its use of the 
        grant, cooperative agreement, or contract.
            ``(B) Independent assessments.--
                ``(i) Contract to conduct assessments.--Not later than 
            6 months after the date of enactment of this subsection, 
            the Secretary shall enter into a contract with the National 
            Academy of Public Administration to conduct periodic 
            assessments of the program established under paragraph (1). 
            The assessments shall be conducted once every 3 years 
            during the 10-year period following the date of enactment 
            of this subsection.
                ``(ii) Evaluations and recommendations.--The 
            assessments described in clause (i) shall include--

                    ``(I) an evaluation of the effectiveness of the 
                program established under paragraph (1) in improving 
                the education and training of students, faculty, and 
                staff at eligible institutions that have been awarded 
                grants, cooperative agreements, or contracts under the 
                program;
                    ``(II) an evaluation of the effectiveness of the 
                program in improving access to, and familiarity with, 
                digital and wireless networking technology for 
                students, faculty, and staff at all eligible 
                institutions;
                    ``(III) an evaluation of the procedures established 
                under paragraph (2)(A); and
                    ``(IV) recommendations for improving the program, 
                including recommendations concerning the continuing 
                need for Federal support.

                ``(iii) Review of reports.--In carrying out the 
            assessments under this subparagraph, the National Academy 
            of Public Administration shall review the reports submitted 
            to the Secretary under subparagraph (A).
                ``(iv) Report to congress.--Upon completion of each 
            assessment under this subparagraph, the Secretary shall 
            transmit the assessment to Congress along with a summary of 
            the Secretary's plans, if any, to implement the 
            recommendations of the National Academy of Public 
            Administration.
        ``(8) Definitions.--In this subsection:
            ``(A) Digital and wireless networking technology.--The term 
        `digital and wireless networking technology' means computer and 
        communications equipment and software that facilitates the 
        transmission of information in a digital format.
            ``(B) Eligible institution.--The term `eligible 
        institution' means an institution that is--
                ``(i) a part B institution, as defined in section 
            322(2) of the Higher Education Act of 1965 (20 U.S.C. 
            1061(2)), an institution identified in subparagraph (A), 
            (B), or (C) of section 326(e)(1) of such Act (20 U.S.C. 
            1063b(e)(1)(A), (B), or (C)), or a consortium of 
            institutions described in this clause;
                ``(ii) a Hispanic-serving institution, as defined in 
            section 502(a)(5) of the Higher Education Act of 1965 (20 
            U.S.C. 1101a(a)(5));
                ``(iii) a Tribal College or University, as defined in 
            section 316(b)(3) of the Higher Education Act of 1965 (20 
            U.S.C. 1059c(b)(3));
                ``(iv) an Alaska Native-serving institution, as defined 
            in section 317(b) of the Higher Education Act of 1965 (20 
            U.S.C. 1059d(b));
                ``(v) a Native Hawaiian-serving institution, as defined 
            in section 317(b) of the Higher Education Act of 1965 (20 
            U.S.C. 1059d(b));
                ``(vi) a Predominately Black Institution, as defined in 
            section 318 of the Higher Education Act of 1965 (20 U.S.C. 
            1059e);
                ``(vii) a Native American-serving, nontribal 
            institution, as defined in section 319 of the Higher 
            Education Act of 1965 (20 U.S.C. 1059f);
                ``(viii) an Asian American and Native American Pacific 
            Islander-serving institution, as defined in section 320 of 
            the Higher Education Act of 1965 (20 U.S.C. 1059g); or
                ``(ix) a minority institution, as defined in section 
            365 of the Higher Education Act of 1965 (20 U.S.C. 1067k), 
            with an enrollment of needy students, as defined in section 
            312(d) of the Higher Education Act of 1965 (20 U.S.C. 
            1058(d)).
            ``(C) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            ``(D) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).
            ``(E) Minority business.--The term `minority business' 
        includes HUBZone small business concerns (as defined in section 
        3(p) of the Small Business Act (15 U.S.C. 632(p))).
            ``(F) Minority individual.--The term `minority individual' 
        means an American Indian, Alaskan Native, Black (not of 
        Hispanic origin), Hispanic (including persons of Mexican, 
        Puerto Rican, Cuban, and Central or South American origin), or 
        Pacific Islander individual.
            ``(G) State.--The term `State' has the meaning given the 
        term in section 9101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7801).
            ``(H) State educational agency.--The term `State 
        educational agency' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801).''.
    SEC. 972. AUTHORIZATION OF APPROPRIATIONS.
    There are authorized to be appropriated to the Secretary of 
Commerce to carry out section 5(c) of the Stevenson-Wydler Technology 
Innovation Act of 1980 such sums as may be necessary for each of the 
fiscal years 2009 through 2012.

               TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

SEC. 1001. SHORT TITLE.
    This title may be cited as the ``Private Student Loan Transparency 
and Improvement Act of 2008''.
SEC. 1002. REGULATIONS.
    Not later than 365 days after the date of enactment of this Act, 
the Board of Governors of the Federal Reserve System shall issue 
regulations in final form to implement paragraphs (1), (2), (3), (4), 
(6), (7), and (8) of section 128(e) and section 140(c) of the Truth in 
Lending Act, as added by this title, which regulations shall become 
effective not later than 6 months after their date of issuance.
SEC. 1003. EFFECTIVE DATES.
    (a) In General.--Except as provided in subsection (b) and as 
otherwise provided in this title, this title and the amendments made by 
this title shall become effective on the date of enactment of this Act.
    (b) Effect Notwithstanding Regulations.--Paragraphs (1), (2), (3), 
(4), (6), (7), and (8) of section 128(e) and section 140(c) of the 
Truth in Lending Act, as added by this title, shall become effective on 
the earlier of the date on which regulations issued under section 1002 
become effective or 18 months after the date of enactment of this Act.

Subtitle A--Preventing Unfair and Deceptive Private Educational Lending 
            Practices and Eliminating Conflicts of Interest

SEC. 1011. AMENDMENT TO THE TRUTH IN LENDING ACT.
    (a) Preventing Unfair and Deceptive Private Educational Lending 
Practices and Conflicts of Interest.--Chapter 2 of the Truth in Lending 
Act (15 U.S.C. 1631 et seq.) is amended by adding at the end the 
following new section:
``Sec. 140. Preventing unfair and deceptive private educational lending 
   practices and eliminating conflicts of interest
    ``(a) Definitions.--As used in this section--
        ``(1) the term `covered educational institution'--
            ``(A) means any educational institution that offers a 
        postsecondary educational degree, certificate, or program of 
        study (including any institution of higher education); and
            ``(B) includes an agent, officer, or employee of the 
        educational institution;
        ``(2) the term `gift'--
            ``(A)(i) means any gratuity, favor, discount, 
        entertainment, hospitality, loan, or other item having more 
        than a de minimis monetary value, including services, 
        transportation, lodging, or meals, whether provided in kind, by 
        purchase of a ticket, payment in advance, or reimbursement 
        after the expense has been incurred; and
            ``(ii) includes an item described in clause (i) provided to 
        a family member of an officer, employee, or agent of a covered 
        educational institution, or to any other individual based on 
        that individual's relationship with the officer, employee, or 
        agent, if--
                ``(I) the item is provided with the knowledge and 
            acquiescence of the officer, employee, or agent; and
                ``(II) the officer, employee, or agent has reason to 
            believe the item was provided because of the official 
            position of the officer, employee, or agent; and
            ``(B) does not include--
                ``(i) standard informational material related to a 
            loan, default aversion, default prevention, or financial 
            literacy;
                ``(ii) food, refreshments, training, or informational 
            material furnished to an officer, employee, or agent of a 
            covered educational institution, as an integral part of a 
            training session or through participation in an advisory 
            council that is designed to improve the service of the 
            private educational lender to the covered educational 
            institution, if such training or participation contributes 
            to the professional development of the officer, employee, 
            or agent of the covered educational institution;
                ``(iii) favorable terms, conditions, and borrower 
            benefits on a private education loan provided to a student 
            employed by the covered educational institution, if such 
            terms, conditions, or benefits are not provided because of 
            the student's employment with the covered educational 
            institution;
                ``(iv) the provision of financial literacy counseling 
            or services, including counseling or services provided in 
            coordination with a covered educational institution, to the 
            extent that such counseling or services are not undertaken 
            to secure--

                    ``(I) applications for private education loans or 
                private education loan volume;
                    ``(II) applications or loan volume for any loan 
                made, insured, or guaranteed under title IV of the 
                Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
                or
                    ``(III) the purchase of a product or service of a 
                specific private educational lender;

                ``(v) philanthropic contributions to a covered 
            educational institution from a private educational lender 
            that are unrelated to private education loans and are not 
            made in exchange for any advantage related to private 
            education loans; or
                ``(vi) State education grants, scholarships, or 
            financial aid funds administered by or on behalf of a 
            State;
        ``(3) the term `institution of higher education' has the same 
    meaning as in section 102 of the Higher Education Act of 1965 (20 
    U.S.C. 1002);
        ``(4) the term `postsecondary educational expenses' means any 
    of the expenses that are included as part of the cost of attendance 
    of a student, as defined under section 472 of the Higher Education 
    Act of 1965 (20 U.S.C. 1087ll);
        ``(5) the term `preferred lender arrangement' has the same 
    meaning as in section 151 of the Higher Education Act of 1965;
        ``(6) the term `private educational lender' means--
            ``(A) a financial institution, as defined in section 3 of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813) that 
        solicits, makes, or extends private education loans;
            ``(B) a Federal credit union, as defined in section 101 of 
        the Federal Credit Union Act (12 U.S.C. 1752) that solicits, 
        makes, or extends private education loans; and
            ``(C) any other person engaged in the business of 
        soliciting, making, or extending private education loans;
        ``(7) the term `private education loan'--
            ``(A) means a loan provided by a private educational lender 
        that--
                ``(i) is not made, insured, or guaranteed under of 
            title IV of the Higher Education Act of 1965 (20 U.S.C. 
            1070 et seq.); and
                ``(ii) is issued expressly for postsecondary 
            educational expenses to a borrower, regardless of whether 
            the loan is provided through the educational institution 
            that the subject student attends or directly to the 
            borrower from the private educational lender; and
            ``(B) does not include an extension of credit under an open 
        end consumer credit plan, a reverse mortgage transaction, a 
        residential mortgage transaction, or any other loan that is 
        secured by real property or a dwelling; and
        ``(8) the term `revenue sharing' means an arrangement between a 
    covered educational institution and a private educational lender 
    under which--
            ``(A) a private educational lender provides or issues 
        private education loans with respect to students attending the 
        covered educational institution;
            ``(B) the covered educational institution recommends to 
        students or others the private educational lender or the 
        private education loans of the private educational lender; and
            ``(C) the private educational lender pays a fee or provides 
        other material benefits, including profit sharing, to the 
        covered educational institution in connection with the private 
        education loans provided to students attending the covered 
        educational institution or a borrower acting on behalf of a 
        student.
    ``(b) Prohibition on Certain Gifts and Arrangements.--A private 
educational lender may not, directly or indirectly--
        ``(1) offer or provide any gift to a covered educational 
    institution in exchange for any advantage or consideration provided 
    to such private educational lender related to its private education 
    loan activities; or
        ``(2) engage in revenue sharing with a covered educational 
    institution.
    ``(c) Prohibition on Co-Branding.--A private educational lender may 
not use the name, emblem, mascot, or logo of the covered educational 
institution, or other words, pictures, or symbols readily identified 
with the covered educational institution, in the marketing of private 
education loans in any way that implies that the covered educational 
institution endorses the private education loans offered by the private 
educational lender.
    ``(d) Advisory Board Compensation.--Any person who is employed in 
the financial aid office of a covered educational institution, or who 
otherwise has responsibilities with respect to private education loans 
or other financial aid of the institution, and who serves on an 
advisory board, commission, or group established by a private 
educational lender or group of such lenders shall be prohibited from 
receiving anything of value from the private educational lender or 
group of lenders. Nothing in this subsection prohibits the 
reimbursement of reasonable expenses incurred by an employee of a 
covered educational institution as part of their service on an advisory 
board, commission, or group described in this subsection.
    ``(e) Prohibition on Prepayment or Repayment Fees or Penalty.--It 
shall be unlawful for any private educational lender to impose a fee or 
penalty on a borrower for early repayment or prepayment of any private 
education loan.''.
    (b) Conforming Amendment to Truth in Lending Act.--Section 103(f) 
of the Truth in Lending Act (15 U.S.C. 1602(f)) is amended by adding at 
the end the following: ``The term `creditor' includes a private 
educational lender (as that term is defined in section 140) for 
purposes of this title.''.
    (c) Disclosures of Reimbursements for Service on Advisory Boards.--
        Section 485 of the Higher Education Act of 1965 (20 U.S.C. 
    1092), as amended by this Act, is further amended by adding at the 
    end the following:
    ``(m) Disclosures of Reimbursements for Service on Advisory 
Boards.--
        ``(1) Disclosure.--Each institution of higher education 
    participating in any program under this title shall report, on an 
    annual basis, to the Secretary, any reasonable expenses paid or 
    provided under section 140(d) of the Truth in Lending Act to any 
    employee who is employed in the financial aid office of the 
    institution, or who otherwise has responsibilities with respect to 
    education loans or other financial aid of the institution. Such 
    reports shall include--
            ``(A) the amount for each specific instance of reasonable 
        expenses paid or provided;
            ``(B) the name of the financial aid official, other 
        employee, or agent to whom the expenses were paid or provided;
            ``(C) the dates of the activity for which the expenses were 
        paid or provided; and
            ``(D) a brief description of the activity for which the 
        expenses were paid or provided.
        ``(2) Report to congress.--The Secretary shall summarize the 
    information received from institutions of higher education under 
    paragraph (1) in a report and transmit such report annually to the 
    authorizing committees.''.
SEC. 1012. CIVIL LIABILITY.
    (a) In General.--Section 130 of the Truth in Lending Act (15 U.S.C. 
1640) is amended--
        (1) in subsection (a)--
            (A) in paragraph (3), by inserting ``or 128(e)(7)'' after 
        ``section 125''; and
            (B) in the fourth sentence of the undesignated matter at 
        the end--
                (i) by striking ``125 or'' and inserting ``125,''; and
                (ii) by inserting ``of subparagraphs (A), (B), (D), 
            (F), or (J) of section 128(e)(2) (for purposes of paragraph 
            (2) or (4) of section 128(e)), or paragraph (4)(C), (6), 
            (7), or (8) of section 128(e),'' before ``or for failing'';
        (2) in subsection (e), by inserting before the first period the 
    following: ``or, in the case of a violation involving a private 
    education loan (as that term is defined in section 140(a)), 1 year 
    from the date on which the first regular payment of principal is 
    due under the loan''; and
        (3) by adding at the end the following:
    ``(j) Private Educational Lender.--A private educational lender (as 
that term is defined in section 140(a)) has no liability under this 
section for failure to comply with section 128(e)(3)).''.
    (b) Effective Date.--The amendments made by this section shall have 
the same effective date as provisions referred to in section 1003(b).
SEC. 1013. CLERICAL AMENDMENT.
    The table of sections for chapter 2 of title I of the Truth in 
Lending Act (15 U.S.C. 1631 et seq.) is amended by adding at the end 
the following:

``140. Preventing unfair and deceptive private educational lending 
          practices and eliminating conflicts of interest.''.

      Subtitle B--Improved Disclosures for Private Education Loans

SEC. 1021. PRIVATE EDUCATION LOAN DISCLOSURES AND LIMITATIONS.
    (a) Truth in Lending Act.--Section 128 of the Truth in Lending Act 
(15 U.S.C. 1638) is amended by adding at the end the following:
    ``(e) Terms and Disclosure With Respect to Private Education 
Loans.--
        ``(1) Disclosures required in private education loan 
    applications and solicitations.--In any application for a private 
    education loan, or a solicitation for a private education loan 
    without requiring an application, the private educational lender 
    shall disclose to the borrower, clearly and conspicuously--
            ``(A) the potential range of rates of interest applicable 
        to the private education loan;
            ``(B) whether the rate of interest applicable to the 
        private education loan is fixed or variable;
            ``(C) limitations on interest rate adjustments, both in 
        terms of frequency and amount, or the lack thereof, if 
        applicable;
            ``(D) requirements for a co-borrower, including any changes 
        in the applicable interest rates without a co-borrower;
            ``(E) potential finance charges, late fees, penalties, and 
        adjustments to principal, based on defaults or late payments of 
        the borrower;
            ``(F) fees or range of fees applicable to the private 
        education loan;
            ``(G) the term of the private education loan;
            ``(H) whether interest will accrue while the student to 
        whom the private education loan relates is enrolled at a 
        covered educational institution;
            ``(I) payment deferral options;
            ``(J) general eligibility criteria for the private 
        education loan;
            ``(K) an example of the total cost of the private education 
        loan over the life of the loan--
                ``(i) which shall be calculated using the principal 
            amount and the maximum rate of interest actually offered by 
            the private educational lender; and
                ``(ii) calculated both with and without capitalization 
            of interest, if an option exists for postponing interest 
            payments;
            ``(L) that a covered educational institution may have 
        school-specific education loan benefits and terms not detailed 
        on the disclosure form;
            ``(M) that the borrower may qualify for Federal student 
        financial assistance through a program under title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), in lieu 
        of, or in addition to, a loan from a non-Federal source;
            ``(N) the interest rates available with respect to such 
        Federal student financial assistance through a program under 
        title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
        seq.);
            ``(O) that, as provided in paragraph (6)--
                ``(i) the borrower shall have the right to accept the 
            terms of the loan and consummate the transaction at any 
            time within 30 calendar days (or such longer period as the 
            private educational lender may provide) following the date 
            on which the application for the private education loan is 
            approved and the borrower receives the disclosure documents 
            required under this subsection for the loan; and
                ``(ii) except for changes based on adjustments to the 
            index used for a loan, the rates and terms of the loan may 
            not be changed by the private educational lender during the 
            period described in clause (i);
            ``(P) that, before a private education loan may be 
        consummated, the borrower must obtain from the relevant 
        institution of higher education the form required under 
        paragraph (3), and complete, sign, and return such form to the 
        private educational lender;
            ``(Q) that the consumer may obtain additional information 
        concerning such Federal student financial assistance from their 
        institution of higher education, or at the website of the 
        Department of Education; and
            ``(R) such other information as the Board shall prescribe, 
        by rule, as necessary or appropriate for consumers to make 
        informed borrowing decisions.
        ``(2) Disclosures at the time of private education loan 
    approval.--Contemporaneously with the approval of a private 
    education loan application, and before the loan transaction is 
    consummated, the private educational lender shall disclose to the 
    borrower, clearly and conspicuously--
            ``(A) the applicable rate of interest in effect on the date 
        of approval;
            ``(B) whether the rate of interest applicable to the 
        private education loan is fixed or variable;
            ``(C) limitations on interest rate adjustments, both in 
        terms of frequency and amount, or the lack thereof, if 
        applicable;
            ``(D) the initial approved principal amount;
            ``(E) applicable finance charges, late fees, penalties, and 
        adjustments to principal, based on borrower defaults or late 
        payments, including limitations on the discharge of a private 
        education loan in bankruptcy;
            ``(F) fees or range of fees applicable to the private 
        education loan;
            ``(G) the maximum term under the private education loan 
        program;
            ``(H) an estimate of the total amount for repayment, at 
        both the interest rate in effect on the date of approval and at 
        the maximum possible rate of interest offered by the private 
        educational lender and applicable to the borrower, to the 
        extent that such maximum rate may be determined, or if not, a 
        good faith estimate thereof;
            ``(I) any principal and interest payments required while 
        the student for whom the private education loan is intended is 
        enrolled at a covered educational institution and unpaid 
        interest that will accrue during such enrollment;
            ``(J) payment deferral options applicable to the borrower;
            ``(K) whether monthly payments are graduated;
            ``(L) that, as provided in paragraph (6)--
                ``(i) the borrower shall have the right to accept the 
            terms of the loan and consummate the transaction at any 
            time within 30 calendar days (or such longer period as the 
            private educational lender may provide) following the date 
            on which the application for the private education loan is 
            approved and the borrower receives the disclosure documents 
            required under this subsection for the loan; and
                ``(ii) except for changes based on adjustments to the 
            index used for a loan, the rates and terms of the loan may 
            not be changed by the private educational lender during the 
            period described in clause (i);
            ``(M) that the borrower --
                ``(i) may qualify for Federal financial assistance 
            through a program under title IV of the Higher Education 
            Act of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in 
            addition to, a loan from a non-Federal source; and
                ``(ii) may obtain additional information concerning 
            such assistance from their institution of higher education 
            or the website of the Department of Education;
            ``(N) the interest rates available with respect to such 
        Federal financial assistance through a program under title IV 
        of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
            ``(O) the maximum monthly payment, calculated using the 
        maximum rate of interest actually offered by the private 
        educational lender and applicable to the borrower, to the 
        extent that such maximum rate may be determined, or if not, a 
        good faith estimate thereof; and
            ``(P) such other information as the Board shall prescribe, 
        by rule, as necessary or appropriate for consumers to make 
        informed borrowing decisions.
        ``(3) Self-certification of information.--
            ``(A) In general.--Before a private educational lender may 
        consummate a private education loan with respect to a student 
        attending an institution of higher education, the lender shall 
        obtain from the applicant for the private education loan the 
        form developed by the Secretary of Education under section 155 
        of the Higher Education Act of 1965, signed by the applicant, 
        in written or electronic form.
            ``(B) Rule of construction.--No other provision of this 
        subsection shall be construed to require a private educational 
        lender to perform any additional duty under this paragraph, 
        other than collecting the form required under subparagraph (A).
        ``(4) Disclosures at the time of private education loan 
    consummation.--Contemporaneously with the consummation of a private 
    education loan, a private educational lender shall make to the 
    borrower each of the disclosures described in--
            ``(A) paragraph (2)(A) (adjusted, as necessary, for the 
        rate of interest in effect on the date of consummation, based 
        on the index used for the loan);
            ``(B) subparagraphs (B) through (K) and (M) through (P) of 
        paragraph (2); and
            ``(C) paragraph (7).
        ``(5) Format of disclosures.--
            ``(A) Model form.--Not later than 2 years after the date of 
        enactment of this subsection, the Board shall, based on 
        consumer testing, and in consultation with the Secretary of 
        Education, develop and issue model forms that may be used, at 
        the option of the private educational lender, for the provision 
        of disclosures required under this subsection.
            ``(B) Format.--Model forms developed under this paragraph 
        shall--
                ``(i) be comprehensible to borrowers, with a clear 
            format and design;
                ``(ii) provide for clear and conspicuous disclosures;
                ``(iii) enable borrowers easily to identify material 
            terms of the loan and to compare such terms among private 
            education loans; and
                ``(iv) be succinct, and use an easily readable type 
            font.
            ``(C) Safe harbor.--Any private educational lender that 
        elects to provide a model form developed under this subsection 
        that accurately reflects the practices of the private 
        educational lender shall be deemed to be in compliance with the 
        disclosures required under this subsection.
        ``(6) Effective period of approved rate of interest and loan 
    terms.--
            ``(A) In general.--With respect to a private education 
        loan, the borrower shall have the right to accept the terms of 
        the loan and consummate the transaction at any time within 30 
        calendar days (or such longer period as the private educational 
        lender may provide) following the date on which the application 
        for the private education loan is approved and the borrower 
        receives the disclosure documents required under this 
        subsection for the loan, and the rates and terms of the loan 
        may not be changed by the private educational lender during 
        that period.
            ``(B) Prohibition on changes.--Except for changes based on 
        adjustments to the index used for a loan, the rates and terms 
        of the loan may not be changed by the private educational 
        lender prior to the earlier of--
                ``(i) the date of acceptance of the terms of the loan 
            and consummation of the transaction by the borrower, as 
            described in subparagraph (A); or
                ``(ii) the expiration of the period described in 
            subparagraph (A).
        ``(7) Right to cancel.--With respect to a private education 
    loan, the borrower may cancel the loan, without penalty to the 
    borrower, at any time within 3 business days of the date on which 
    the loan is consummated, and the private educational lender shall 
    disclose such right to the borrower in accordance with paragraph 
    (4).
        ``(8) Prohibition on disbursement.--No funds may be disbursed 
    with respect to a private education loan until the expiration of 
    the 3-day period described in paragraph (7).
        ``(9) Board regulations.--In issuing regulations under this 
    subsection, the Board shall prevent, to the extent possible, 
    duplicative disclosure requirements for private educational lenders 
    that are otherwise required to make disclosures under this title, 
    except that in any case in which the disclosure requirements of 
    this subsection differ or conflict with the disclosure requirements 
    of any other provision of this title, the requirements of this 
    subsection shall be controlling.
        ``(10) Definitions.--For purposes of this subsection, the terms 
    `covered educational institution', `private educational lender', 
    and `private education loan' have the same meanings as in section 
    140.
        ``(11) Duties of lenders participating in preferred lender 
    arrangements.--Each private educational lender that has a preferred 
    lender arrangement with a covered educational institution shall 
    annually, by a date determined by the Board, in consultation with 
    the Secretary of Education, provide to the covered educational 
    institution such information as the Board determines to include in 
    the model form developed under paragraph (5) for each type of 
    private education loan that the lender plans to offer to students 
    attending the covered educational institution, or to the families 
    of such students, for the next award year (as that term is defined 
    in section 481 of the Higher Education Act of 1965).''.
    (b) Self-Certification Form.--Part E of title I of the Higher 
Education Act of 1965, as added by this Act, is further amended by 
inserting after section 154 the following:
    ``SEC. 155. SELF-CERTIFICATION FORM FOR PRIVATE EDUCATION LOANS.
    ``(a) In General.--The Secretary, in consultation with the Board of 
Governors of the Federal Reserve System, shall develop the self-
certification form for private education loans that shall be used to 
satisfy the requirements of section 128(e)(3) of the Truth in Lending 
Act. Such form shall--
        ``(1) be developed in a standardized format;
        ``(2) be made available to the applicant by the relevant 
    institution of higher education, in written or electronic form, 
    upon request of the applicant;
        ``(3) contain only disclosures that--
            ``(A) the applicant may qualify for Federal student 
        financial assistance through a program under title IV of this 
        Act, or State or institutional student financial assistance, in 
        place of, or in addition to, a private education loan;
            ``(B) the applicant is encouraged to discuss the 
        availability of Federal, State, and institutional student 
        financial assistance with financial aid officials at the 
        applicant's institution of higher education;
            ``(C) a private education loan may affect the applicant's 
        eligibility for free or low-cost Federal, State or 
        institutional student financial assistance; and
            ``(D) the information that the applicant is required to 
        provide on the form is available from officials at the 
        financial aid office of the institution of higher education;
        ``(4) include a place to provide information on--
            ``(A) the applicant's cost of attendance at the institution 
        of higher education, as determined by the institution under 
        Part F of title IV;
            ``(B) the applicant's expected family contribution, as 
        determined under Part F of title IV, as applicable, for 
        students who have completed the free application for Federal 
        student aid;
            ``(C) the applicant's estimated financial assistance, as 
        determined by the institution, in accordance with title IV, as 
        applicable;
            ``(D) the difference between the amounts under 
        subparagraphs (A) and (C), as applicable; and
            ``(E) the sum of the amounts under subparagraphs (B) and 
        (D), as applicable; and
        ``(5) include a place for the applicant's signature, in written 
    or electronic form.
    ``(b) Limit on Liability.--Nothing in this section shall be 
construed to create a private right of action against an institution of 
higher education with respect to the form developed under subsection 
(a).''.
SEC. 1022. APPLICATION OF TRUTH IN LENDING ACT TO ALL PRIVATE EDUCATION 
LOANS.
    Section 104(3) of the Truth in Lending Act (15 U.S.C. 1603(3)) is 
amended by inserting ``and other than private education loans (as that 
term is defined in section 140(a))'' after ``consumer''.

                   Subtitle C--College Affordability

SEC. 1031. COMMUNITY REINVESTMENT ACT CREDIT FOR LOW-COST LOANS.
    (a) In General.--Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903) is amended by adding at the end the following new 
subsection:
    ``(d) Low-Cost Education Loans.--In assessing and taking into 
account, under subsection (a), the record of a financial institution, 
the appropriate Federal financial supervisory agency shall consider, as 
a factor, low-cost education loans provided by the financial 
institution to low-income borrowers.''.
    (b) Regulations Required.--Not later than 1 year after the date of 
enactment of this Act, each appropriate Federal financial supervisory 
agency shall issue rules in final form to implement section 804(d) of 
the Community Reinvestment Act of 1977, as added by this section.

          Subtitle D--Financial Literacy; Studies and Reports

SEC. 1041. DEFINITIONS.
    As used in this subtitle--
        (1) the terms ``covered educational institution'', ``private 
    educational lender'', and ``private education loan'' have the same 
    meanings as in section 140 of the Truth in Lending Act, as added by 
    this Act;
        (2) the term ``historically Black colleges and universities'' 
    means a ``part B institution'', within the meaning of section 322 
    of the Higher Education Act of 1965 (20 U.S.C. 1061)); and
        (3) the term ``land-grant colleges and universities'' has the 
    same meaning as in section 1404 of the National Agricultural 
    Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
    3103).
SEC. 1042. COORDINATED EDUCATION EFFORTS.
    (a) In General.--The Secretary of the Treasury (in this section 
referred to as the ``Secretary''), in coordination with the Secretary 
of Education, the Secretary of Agriculture (with respect to land-grant 
colleges and universities), and any other appropriate agency that is a 
member of the Financial Literacy and Education Commission established 
under the Financial Literacy and Education Improvement Act (20 U.S.C. 
9701 et seq.), shall seek to enhance financial literacy among students 
at covered educational institutions through--
        (1) the development of initiatives, programs, and curricula 
    that improve student awareness of the short- and long-term costs 
    associated with education loans and other debt assumed while in 
    college, their repayment obligations, and their rights as 
    borrowers; and
        (2) assisting such students in navigating the financial aid 
    process.
    (b) Duties.--For purposes of this section, the Secretary, working 
in conjunction with the Secretary of Education, the Secretary of 
Agriculture, and the Financial Literacy and Education Commission, 
shall--
        (1) identify programs that promote or enhance financial 
    literacy for college students, with specific emphasis on programs 
    that impart the knowledge and ability for students to best navigate 
    the financial aid process, including those that involve 
    partnerships between nonprofit organizations, colleges and 
    universities, State and local governments, and student 
    organizations;
        (2) evaluate the effectiveness of such programs in terms of 
    measured results, including positive behavioral change among 
    college students;
        (3) promote the programs identified as being the most 
    effective; and
        (4) encourage covered educational institutions to implement 
    financial education programs for their students, including those 
    that have the highest evaluations.
    (c) Report.--
        (1) In general.--Not later than 2 years after the date of 
    enactment of this Act, the Financial Literacy and Education 
    Commission shall submit a report to the Committee on Banking, 
    Housing, and Urban Affairs and the Committee on Health Education, 
    Labor, and Pensions of the Senate and the Committee on Financial 
    Services and the Committee on Education and Labor of the House of 
    Representatives on the state of financial education among students 
    at covered educational institutions.
        (2) Content.--The report required by this subsection shall 
    include a description of progress made in enhancing financial 
    education with respect to student understanding of financial aid, 
    including the programs and evaluations required by this section.
        (3) Appearance before congress.--The Secretary shall, upon 
    request, provide testimony before the Committee on Banking, 
    Housing, and Urban Affairs of the Senate and the Committee on 
    Financial Services of the House of Representatives concerning the 
    report required by this subsection.

                     TITLE XI--STUDIES AND REPORTS

SEC. 1101. STUDY ON FOREIGN GRADUATE MEDICAL SCHOOLS.
    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall--
        (1) complete a study that examines the performance of students 
    from the United States receiving Federal student financial aid to 
    attend graduate medical schools located outside of the United 
    States;
        (2) provide data and make recommendations to the National 
    Committee on Foreign Medical Education and Accreditation in a 
    timely manner so as to assist the Secretary of Education in the 
    Department of Education's review required under section 102 of the 
    Higher Education Act of 1965 (20 U.S.C. 1002); and
        (3) submit to the authorizing committees a report setting forth 
    the conclusions of the study.
    (b) Contents.--The study conducted under this section shall include 
the following:
        (1) The amount of Federal student financial aid dollars that 
    are spent on graduate medical schools located outside of the United 
    States every year, and the percentage of overall student aid such 
    amount represents.
        (2) The percentage of students of such medical schools who pass 
    the examination sponsored by the Federation of State Medical Boards 
    of the United States, Inc., and the National Board of Medical 
    Examiners the first time.
        (3) The percentage of students of such medical schools who pass 
    the United States medical licensing examination after taking such 
    examinations multiple times, disaggregated by the number of times 
    the students had to take the examinations to pass.
        (4) The percentage of recent graduates of such medical schools 
    practicing medicine in the United States, and a description of 
    where the students are practicing and what types of medicine the 
    students are practicing.
        (5) The rate of graduates of such medical schools who lose 
    malpractice lawsuits or have the graduates' medical licenses 
    revoked, as compared to graduates of graduate medical schools 
    located in the United States.
        (6) Recommendations regarding the percentage passing rate of 
    the United States medical licensing examination that the United 
    States should require of graduate medical schools located outside 
    of the United States for Federal student financial aid purposes.
SEC. 1102. EMPLOYMENT OF POSTSECONDARY EDUCATION GRADUATES.
    (a) Study, Assessments, and Recommendations.--The Comptroller 
General of the United States shall--
        (1) conduct a study of--
            (A) the information that States have on the employment of 
        students who have completed postsecondary education programs;
            (B) the feasibility of collecting information on students 
        who complete all types of postsecondary education programs 
        (including two- and four-year degree, certificate, 
        professional, and graduate programs) at all types of 
        institutions of higher education (including public, private 
        nonprofit, and for-profit schools), regarding--
                (i) employment, including--

                    (I) the type of job obtained not later than six 
                months after the completion of the degree, certificate, 
                or program;
                    (II) whether such job was related to the course of 
                study;
                    (III) the starting salary for such job; and
                    (IV) the student's satisfaction with the student's 
                preparation for such job and guidance provided with 
                respect to securing the job; and

                (ii) for recipients of Federal student aid, the type of 
            assistance received, so that the information can be used to 
            evaluate various education programs;
            (C) the evaluation systems used by other industries to 
        identify successful programs and challenges, set priorities, 
        monitor performance, and make improvements;
            (D) the best means of collecting information from or 
        regarding recent postsecondary graduates, including--
                (i) whether a national website would be the most 
            effective way to collect information;
                (ii) whether postsecondary education graduates could be 
            encouraged to voluntarily submit information by allowing a 
            graduate to access aggregated information about other 
            graduates (such as graduates from the graduate's school, 
            with the graduate's degree, or in the graduate's area) if 
            the graduate completes an online questionnaire;
                (iii) whether employers could be encouraged to submit 
            information by allowing an employer to access aggregated 
            information about graduates (such as institutions of higher 
            education attended, degrees, or starting pay) if the 
            employer completes an online questionnaire to evaluate the 
            employer's satisfaction with the graduates the employer 
            hires; and
                (iv) whether postsecondary institutions that receive 
            Federal funds or whose students have received Federal 
            student financial aid could be required to submit 
            aggregated information about the graduates of the 
            institutions; and
            (E) the best means of displaying employment information; 
        and
        (2) provide assessments and recommendations regarding--
            (A) whether successful State cooperative relationships 
        between higher education system offices and State agencies 
        responsible for employment statistics can be encouraged and 
        replicated in other States;
            (B) whether there is value in collecting additional 
        information from, or about, the employment experience of 
        individuals who have recently completed a postsecondary 
        educational program;
            (C) the most promising ways of obtaining and displaying or 
        disseminating such information;
            (D) if a website is used for such information, whether the 
        website should be run by a governmental agency or contracted 
        out to an independent education or employment organization;
            (E) whether a voluntary information system would work, both 
        from the graduates' and employers' perspectives;
            (F) the value of such information to future students, 
        institutions, accrediting agencies or associations, 
        policymakers, and employers, including how the information 
        would be used and the practical applications of the 
        information;
            (G) whether the request for such information is duplicative 
        of information that is already being collected; and
            (H) whether the National Postsecondary Student Aid Survey 
        conducted by the National Center for Education Statistics could 
        be amended to collect such information.
    (b) Reports.--
        (1) Preliminary report.--Not later than one year after the date 
    of enactment of this Act, the Comptroller General of the United 
    States shall submit to the authorizing committees a preliminary 
    report regarding the study, assessments, and recommendations 
    described in subsection (a).
        (2) Final report.--Not later than two years after the date of 
    enactment of this Act, the Comptroller General of the United States 
    shall submit to the authorizing committees a final report regarding 
    such study, assessments, and recommendations.
SEC. 1103. STUDY ON IPEDS.
    The Comptroller General of the United States shall--
        (1) conduct a study on the time and cost burdens to 
    institutions of higher education associated with completing the 
    Integrated Postsecondary Education Data System (referred to in this 
    section as the ``IPEDS'') survey, which shall--
            (A) report on the time and cost burden of completing the 
        IPEDS survey for four-year, two-year, and less than two-year 
        institutions of higher education;
            (B) present recommendations for reducing such burden; and
            (C) report on the feasibility of collecting additional data 
        from institutions for use in IPEDS, including information on 
        the percentage of enrolled undergraduate students who graduate 
        within two years (in the case of two-year institutions), and 
        four, five, and six years (in the case of two- and four-year 
        institutions), disaggregated by race and ethnic background and 
        by income categories;
        (2) not later than one year after the date of enactment of this 
    Act, submit to the authorizing committees a preliminary report 
    regarding the findings of the study described in paragraph (1); and
        (3) not later than two years after the date of enactment of 
    this Act, submit to the authorizing committees a final report 
    regarding such findings.
SEC. 1104. REPORT AND STUDY ON ARTICULATION AGREEMENTS.
    (a) Study Required.--The Secretary of Education shall conduct a 
study to review the articulation agreements at State-supported college 
and university systems, including junior or community colleges, as well 
as those at other institutions of higher education. Such study shall 
consider--
        (1) the extent to which States and institutions have developed 
    and implemented articulation agreements;
        (2) with respect to the articulation agreements developed--
            (A) the number and types of institutions participating in 
        articulation agreements;
            (B) the cost-savings to the participating institutions and 
        to the students;
            (C) what strategies are being employed, including common 
        course numbering, general education core curriculum, and 
        management systems;
            (D) the effective use of technologies to contain costs, 
        maintain quality of instruction, and inform students; and
            (E) a description of the students to whom the articulation 
        agreements are offered and, to the extent practicable, a 
        description of the students who take advantage of the 
        articulation agreements;
        (3) best practices and innovative strategies employed to 
    implement effective articulation agreements; and
        (4) barriers to the implementation of articulation agreements, 
    including technological and informational barriers.
    (b) Report.--The Secretary of Education shall submit to the 
authorizing committees an interim report on the study required by 
subsection (a) not later than two years after the date of enactment of 
this Act and a final report on such study not later than January 1, 
2013.
SEC. 1105. REPORT ON PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION.
    (a) In General.--Not later than two years after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct an analysis of proprietary institutions of higher 
education subject to section 487(a)(24) of the Higher Education Act of 
1965 (20 U.S.C. 1094(a)(24)) and shall submit to the authorizing 
committees a report that provides the results of the analysis.
    (b) Contents of Report.--The report shall provide--
        (1) the number of institutions subject to section 487(a)(24) of 
    the Higher Education Act of 1965 (20 U.S.C. 1094(a)(24));
        (2) the number and percentage of such institutions each year 
    that do not comply with such section;
        (3) the number of such institutions that are in compliance with 
    such section at the time of submission of the report; and
        (4) in the case of institutions that are in compliance with 
    such section at the time of submission of the report, information 
    on the extent to which such institutions' revenue is derived from 
    funds provided under title IV of the Higher Education Act of 1965 
    (20 U.S.C. 1070 et seq.), including information on the number of 
    such institutions that derive not less than 85 percent of their 
    revenues from funds provided under such title.
SEC. 1106. ANALYSIS OF FEDERAL REGULATIONS ON INSTITUTIONS OF HIGHER 
EDUCATION.
    The Secretary of Education shall enter into an agreement with the 
National Research Council of the National Academy of Sciences for the 
conduct of a study to ascertain the amount and scope of all Federal 
regulations and reporting requirements with which institutions of 
higher education must comply. The study shall be completed not later 
than two years after the date of enactment of this Act, and shall 
include information describing--
        (1) by agency, the number of Federal regulations and reporting 
    requirements affecting institutions of higher education;
        (2) by agency, the estimated time required and costs to 
    institutions of higher education (disaggregated by types of 
    institutions) to comply with the regulations and reporting 
    requirements described in paragraph (1); and
        (3) by agency, recommendations for consolidating, streamlining, 
    and eliminating redundant and burdensome Federal regulations and 
    reporting requirements affecting institutions of higher education.
SEC. 1107. INDEPENDENT EVALUATION OF DISTANCE EDUCATION PROGRAMS.
    (a) Independent Evaluation.--The Secretary of Education shall enter 
into an agreement with the National Research Council of the National 
Academy of Sciences to conduct a 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 can be assessed, which may include elements such 
    as subject matter, interactivity, and student outcomes;
        (2) identification of distance education program success, with 
    respect to student achievement, in relation to the mission of the 
    institution of higher education;
        (3) identification of the benefits and limitations of distance 
    education programs and campus-based programs for different students 
    (including classification of types of students by age category) by 
    assessing access, job placement rates, graduation rates, and other 
    factors related to persistence, completion, and cost; and
        (4) identification and analysis of factors that may make direct 
    comparisons of distance education programs and campus-based 
    education programs difficult.
    (b) Scope.--The National Research Council 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 contract under subsection (a) 
shall require that the National Research Council submit to the 
authorizing committees--
        (1) an interim report regarding the evaluation under subsection 
    (a) not later than June 30, 2009; and
        (2) a final report regarding such evaluation not later than 
    June 30, 2010.
SEC. 1108. REVIEW OF COSTS AND BENEFITS OF ENVIRONMENTAL, HEALTH, AND 
SAFETY STANDARDS.
    (a) Review of Standards.--The Secretary of Education shall enter 
into an agreement with the National Research Council of the National 
Academy of Sciences to conduct a national study that--
        (1) reviews, analyzes, and compares existing standards in 
    environmental, health, and safety areas, for the regulation of--
            (A) industrial research and development facilities; and
            (B) research and teaching laboratories and facilities at 
        institutions of higher education; and
        (2) based upon the review in paragraph (1), develops 
    recommended frameworks for alternative regulatory standards, if 
    any, for research and teaching laboratories and facilities at 
    institutions of higher education that--
            (A) maintain the overall level of protection of the 
        environment, and of the health and safety of those using such 
        laboratories and facilities;
            (B) reflect the need to ensure consistent application of 
        Federal laws; and
            (C) take into account the educational and research 
        activities of institutions of higher education.
    (b) Report.--The National Research Council shall report to Congress 
regarding the recommended frameworks for alternative regulatory 
standards developed under subsection (a). Such report shall contain 
recommendations for statutory or regulatory changes needed to implement 
the different standards described in subsection (a), and the projected 
costs and benefits resulting from the adoption of such standards.
SEC. 1109. STUDY OF MINORITY MALE ACADEMIC ACHIEVEMENT.
    (a) Study Required.--The Secretary of Education shall carry out the 
following:
        (1) Commission and ensure the conduct of a national study of 
    underrepresented minority males (particularly African American, 
    Hispanic American, Native American, Native Hawaiian, and Alaska 
    Native males) completing high school, and entering and graduating 
    from colleges and universities in accordance with the following:
            (A) The data comprising the study shall focus primarily on 
        African American, Hispanic American, Native American, Native 
        Hawaiian, and Alaska Native males and shall utilize existing 
        data sources.
            (B) The study shall focus on high school completion and 
        preparation for college, success on the SAT and ACT, and 
        minority male access to college, including the financing of 
        college, and college persistence and graduation.
            (C) The implementation of the study shall be in four stages 
        based on the recommendations of the Commissioner for Education 
        Statistics.
        (2) Make specific recommendations to the authorizing committees 
    and States on new approaches to increase--
            (A) the number of minority males successfully preparing 
        themselves for college study;
            (B) the number of minority males graduating from high 
        school and entering college; and
            (C) the number of minority males graduating from college 
        and entering careers in which they are underrepresented.
    (b) Submission of the Report.--Not later than four years after the 
date of enactment of this Act, the Secretary of Education shall submit 
a report on the study required by subsection (a)(1), together with the 
recommendations required by subsection (a)(2), to the authorizing 
committees.
SEC. 1110. STUDY ON BIAS IN STANDARDIZED TESTS.
    (a) Study.--The Secretary of Education shall enter into an 
agreement with the Board on Testing and Assessment of the National 
Academy of Sciences for the conduct of a study to identify any race, 
ethnicity, or gender bias in the content and construction of 
standardized tests that are used for admission to institutions of 
higher education.
    (b) Report.--Not later than two years after the date of enactment 
of this Act, the Secretary of Education shall issue an interim report 
to the authorizing committees related to the progress of the study 
under subsection (a).
SEC. 1111. ENDOWMENT REPORT.
    (a) Analysis of Endowments.--The Comptroller General of the United 
States shall conduct a study on the amounts, uses, and public purposes 
of the endowments of institutions of higher education. The study shall 
include information (disaggregated by types of institutions) 
describing--
        (1) the average and range of--
            (A) the outstanding balance of such endowments; and
            (B) the growth of such endowments over the last 20 years;
        (2) the amount and percentage of endowment assets distributed 
    on an annual basis for spending on education;
        (3) the amount and percentage of endowment assets distributed 
    on an annual basis for financial aid or for the purpose of reducing 
    the costs of tuition, fees, textbooks, and room and board; and
        (4) the extent to which the funds in such endowments are 
    restricted, and the restrictions placed upon such funds.
    (b) Submission of Report.--The Comptroller General of the United 
States shall submit a report on the study required by subsection (a) to 
the authorizing committees not later than 18 months after the date of 
enactment of this Act.
SEC. 1112. STUDY OF CORRECTIONAL POSTSECONDARY EDUCATION.
    (a) Study Required.--The Secretary of Education, in consultation 
with the Secretary of Labor and the Attorney General, shall--
        (1) conduct a longitudinal study to assess the effects of 
    correctional postsecondary education that--
            (A) employs rigorous empirical methods that control for 
        self-selection bias;
            (B) measures a range of outcomes, including those related 
        to employment and earnings, recidivism, engaged citizenship, 
        impact on families of the incarcerated, and impact on the 
        culture of the correctional institution;
            (C) examines different delivery systems of postsecondary 
        education, such as on-site and distance learning; and
            (D) includes a projected cost-benefit analysis of the 
        Federal investment in terms of reduction of future offending, 
        reduction of future prison costs (construction and 
        operational), increased tax payments by formerly incarcerated 
        individuals, a reduction of welfare and other social service 
        costs for successful formerly incarcerated individuals, and 
        increased costs from the employment of formerly incarcerated 
        individuals; and
        (2) make specific recommendations to the authorizing committees 
    and the relevant State agencies responsible for correctional 
    education, such as the State superintendents of education and State 
    secretaries of corrections, on best approaches to increase 
    correctional education and its effectiveness.
    (b) Submission of Reports.--Not later than three years after the 
date of enactment of this Act, the Secretary of Education shall submit 
an interim report on the progress of the study required by subsection 
(a)(1) to the authorizing committees. Not later than seven years after 
the date of enactment of this Act, the Secretary of Education shall 
submit a final report, together with the recommendations required by 
subsection (a)(2), to the authorizing committees.
SEC. 1113. STUDY OF AID TO LESS-THAN-HALF-TIME STUDENTS.
    (a) Study Required.--The Secretary shall conduct a study on making 
and expanding the student aid available under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.) to less-than-half-time 
students. The Secretary shall submit a report on the results of such 
study, including the Secretary's recommendations, to the authorizing 
committees not later than one year after the date of enactment of this 
Act.
    (b) Subjects for Study.--The study required by this section shall, 
at a minimum, examine the following:
        (1) The existing sources of Federal aid for less-than-half-time 
    students seeking a college degree or certificate.
        (2) The demand for Federal aid for less-than-half-time students 
    and whether the demand is satisfied by existing sources of Federal 
    aid, taking into consideration not only the number of less-than-
    half-time students currently seeking a college degree or 
    certificate, but also any increase in the number of less-than-half-
    time students that may result from an expansion of Federal aid for 
    less-than-half-time students seeking a college degree or 
    certificate.
        (3) The potential costs to the Federal Government and the 
    potential benefits that could be received by students resulting 
    from expanding Federal aid for less-than-half-time students seeking 
    a college degree or certificate.
        (4) The barriers to expanding Federal aid for less-than-half-
    time students, including identifying--
            (A) statutory and regulatory barriers, such as student 
        eligibility, institutional eligibility, needs analysis, program 
        integrity, and award amounts; and
            (B) other factors that may limit participation in an 
        expanded Federal aid program for less-than-half-time students.
    (c) Recommendations To Be Provided.--The Secretary's 
recommendations under this section shall include recommendations for 
designing a demonstration student loan program tailored to less-than-
half-time students. The recommendations shall include any required 
statutory or regulatory modifications, as well as proposed 
accountability mechanisms to protect students, institutions, and the 
Federal investment in higher education.
    (d) Definitions.--In this section--
        (1) the term ``Secretary'' means the Secretary of Education; 
    and
        (2) the term ``less-than-half-time student'' means a student 
    who is carrying less than one-half the normal full-time work load 
    for the course of study that the student is pursuing, as determined 
    by the institution such student is attending.
SEC. 1114. STUDY ON REGIONAL SENSITIVITY IN THE NEEDS ANALYSIS FORMULA.
    (a) Study.--The Comptroller General of the United States shall 
conduct a study to review the methodology that is used to determine the 
expected family contribution under part F of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087kk et seq.).
    (b) Study Components.--The study conducted under subsection (a) 
shall identify and evaluate the needs analysis formula under part F of 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.) 
and examine the need for regional sensitivity in need analysis. The 
study shall include--
        (1) the factors that are used to determine a student's expected 
    family contribution under part F of title IV of the Higher 
    Education Act of 1965;
        (2) the varying allowances that are made in calculating the 
    expected family contribution;
        (3) the effects of the income protection allowance on all aid 
    recipients; and
        (4) options for modifying the income protection allowance to 
    reflect the significant differences in the cost of living in 
    various parts of the United States.
    (c) Report.--Not later than one year after the date of enactment of 
this Act, the Comptroller General of the United States shall report to 
the authorizing committees on the results of the study conducted under 
this section.
SEC. 1115. STUDY OF THE IMPACT OF STUDENT LOAN DEBT ON PUBLIC SERVICE.
    (a) Study.--The Secretary of Education, in consultation with the 
Office of Management and Budget, is authorized to coordinate with an 
organization with expertise in the field of public service, such as the 
National Academy of Public Administrators or the American Society for 
Public Administration, to coordinate with interested parties to conduct 
a study of how student loan debt levels impact the decisions of 
graduates of postsecondary and graduate education programs to enter 
into public service careers. Such study shall include--
        (1) an assessment of the challenges to recruiting and retaining 
    well-qualified public servants, including the impact of student 
    loan debt;
        (2) an evaluation of existing Federal programs to recruit and 
    retain well-qualified public servants;
        (3) an evaluation of whether additional Federal programs could 
    increase the number of graduates of postsecondary and graduate 
    education programs who enter careers in public service; and
        (4) recommendations for programs that could encourage new 
    graduates of postsecondary and graduate education programs to enter 
    public service careers.
    (b) Report.--Not later than one year after the date of enactment of 
this Act, the Secretary of Education, in consultation with the Office 
of Management and Budget, shall submit to the authorizing committees a 
report related to the findings of the study conducted under subsection 
(a).
SEC. 1116. STUDY ON TEACHING STUDENTS WITH READING DISABILITIES.
    (a) Independent Evaluation.--The Secretary of Education shall enter 
into an agreement with the Center for Education of the National 
Academies for a scientifically-based study of the quality of teacher 
education programs--
        (1) to determine if teachers are adequately prepared to meet 
    the needs of students with reading and language processing 
    disabilities, including dyslexia; and
        (2) to determine the extent to which teacher education programs 
    are based on the essential components of reading instruction and 
    scientifically valid research.
    (b) Components.--The study conducted under subsection (a) shall be 
designed to provide statistically reliable information on--
        (1) the number, type of courses, and credit hours required to 
    meet the requirements of reading degree programs of teacher 
    education programs; and
        (2) the extent to which the content of the reading degree 
    programs are based on--
            (A) the essential components of reading instruction and 
        scientifically valid research, including phonemic awareness, 
        phonics, fluency, vocabulary, and comprehension; and
            (B) early intervention strategies based on scientific 
        evidence concerning challenges to the development of language 
        processing capacity, including dyslexia, and the extent to 
        which such strategies are effective in preventing reading 
        failure before it occurs.
    (c) Scope.--The Director of the Center for Education of the 
National Academy of Sciences shall select for participation in the 
study under subsection (a) a diverse group of institutions of higher 
education with respect to size, mission, and geographic distribution.
    (d) Interim and Final Reports.--The Director of the Center for 
Education of the National Academy of Sciences shall submit to the 
authorizing committees and the Secretary of Education--
        (1) an interim report regarding the study under subsection (a) 
    not later than one year after the date the Center for Education of 
    the National Academies enters into an agreement with the Secretary 
    of Education under this section; and
        (2) a final report summarizing the findings, conclusions, and 
    recommendations of such study not later than two years after the 
    date the Center for Education of the National Academies enters into 
    such agreement.
    (e) Task Force.--
        (1) Establishment.--Upon submission of the final report under 
    subsection (d)(2), the Secretary of Education shall establish a 
    task force to make policy recommendations to the Secretary 
    regarding the findings of the report.
        (2) Membership.--The membership of the task force established 
    under paragraph (1) shall include chief State school officers, 
    State reading consultants, master teachers, national reading 
    experts, and researchers with expertise in relevant fields.
        (3) Public hearings.--The task force established under 
    paragraph (1) shall hold public hearings to provide an opportunity 
    for public comment on the recommendations made under paragraph (1).
SEC. 1117. REPORT ON INCOME CONTINGENT REPAYMENT THROUGH THE INCOME TAX 
WITHHOLDING SYSTEM.
    (a) Report.--Not later than one year after the date of enactment of 
this Act, the Secretary of Education and the Secretary of the Treasury 
shall conduct a study to determine the feasibility and benefits of 
developing a system through which a borrower who is repaying a loan 
through the income contingent repayment plan or the income-based 
repayment program may make payments on the loan using the income tax 
withholding system (referred to in this section as ``direct IDEA 
loans''). The goal of this program would be to--
        (1) streamline the repayment process and provide greater 
    flexibility for borrowers electing to use the direct IDEA loan;
        (2) reduce the number of loan defaults by borrowers; and
        (3) reduce the redundancy in reporting information pertaining 
    to income contingent repayment and income-based repayment to the 
    Department of Education, institutions, and applicants.
    (b) Evaluations.--In conducting the study under subsection (a), the 
Secretary of Education and the Secretary of the Treasury shall 
evaluate--
        (1) the feasibility of implementing direct IDEA loans by the 
    Department of Education and the Department of the Treasury;
        (2) any advantages or disadvantages of direct IDEA loans on 
    borrowers and taxpayers;
        (3) the program structure necessary to administer direct IDEA 
    loans; and
        (4) whether the repayment programs that implement income 
    contingent and income-based repayment collected through revenue 
    services, such as programs in England, Australia, and New Zealand, 
    could be effective in collecting loan payments under the income 
    contingent and income-based repayment options in the United States.
    (c) Recommendations.--Not later than one year after the date of 
enactment of this Act, the Secretary of Education and the Secretary of 
the Treasury shall provide a report on the study conducted under 
subsection (a) to Congress. The report shall include recommendations 
based on the factors examined in subsection (b) for implementing direct 
IDEA loans, including the necessary statutory changes needed to 
implement such repayment option.
SEC. 1118. DEVELOPING ADDITIONAL MEASURES OF DEGREE COMPLETION.
    (a) In General.--The Secretary of Education, in coordination with 
the Commissioner for Education Statistics and after consultation with 
representatives from diverse institutions of higher education, 
students, experts in the field of higher education policy, State higher 
education officials, and other stakeholders in the higher education 
community, shall issue a report with recommendations to Congress about 
alternatives ways to measure and report degree or program completion 
rates for institutions of higher education receiving funds under title 
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
    (b) Measures to Take Into Consideration.--The alternative measures 
described in subsection (a) shall consider--
        (1) the number of degrees awarded and the increase in number of 
    degrees awarded disaggregated by race, ethnicity, gender, and 
    income for all students who have earned a degree; and
        (2) the increase in degrees awarded in high-need fields such as 
    science, technology, engineering, mathematics, education, and 
    nursing.
SEC. 1119. STUDY ON THE FINANCIAL AND COMPLIANCE AUDITS OF THE FEDERAL 
STUDENT LOAN PROGRAM.
    (a) In General.--Not later than one year after the date of 
enactment of this Act, the Comptroller General of the United States 
shall complete a study to examine all the financial and compliance 
audits and reviews required or conducted as part of the proper 
management of the Federal student loan programs under parts B and D of 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq. 
and 1087a et seq.), whether each such audit or review is required under 
a law or is otherwise performed in order to evaluate a program.
    (b) Content of Study.--
        (1) Comparison of audits and reviews under parts b and d of 
    title iv.--As part of the study under subsection (a), the 
    Comptroller General of the United States shall compare the audits 
    and reviews of programs under parts B and D of title IV of the 
    Higher Education Act of 1965 (20 U.S.C. 1071 et seq. and 1087a et 
    seq.) for purposes of--
            (A) determining whether such audits and reviews are 
        comparable among programs;
            (B) determining whether such audits and reviews result in a 
        level of protection of borrower interests and of Federal fiscal 
        interests that is comparable for each program; and
            (C) determining the extent to which the Department of 
        Education ensures timely submission of required financial and 
        compliance audits and reviews and compliance with statutory and 
        regulatory requirements.
        (2) Additional content of study.--The study under subsection 
    (a) shall--
            (A) provide a list of the financial and compliance audits 
        and reviews required or conducted as part of the proper 
        management of the Federal student loan programs under parts B 
        and D of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1071 et seq. and 1087a et seq.);
            (B) determine the frequency of each audit and review;
            (C) provide a list of the entities and activities that are 
        the subject of each audit and review, including institutions of 
        higher education, servicers, secondary markets, guaranty 
        agencies, the Department of Education and the contractors of 
        the Department of Education, and any other entities that are 
        required to participate in the audit or review;
            (D) determine the degree of individual borrower level 
        reconciliation required under Federal student loan programs 
        under such parts B and D of title IV;
            (E) make recommendations with respect to such audits and 
        reviews to ensure--
                (i) such audits and reviews are comparable among 
            Federal student loan programs under such parts B and D of 
            title IV; and
                (ii) a level of protection of borrower interests and of 
            Federal fiscal interests that is comparable for Federal 
            student loan programs under such parts B and D of title IV, 
            to the extent such comparability does not exist; and
            (F) assess the extent to which the Department of Education 
        makes appropriate use of such financial and compliance audits 
        and reviews in the Department's administration and oversight of 
        the Federal student loan programs under such parts B and D of 
        title IV.
SEC. 1120. SUMMIT ON SUSTAINABILITY.
    Not later than September 30, 2010, the Secretary of Education, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall convene a summit of higher education experts working in 
the area of sustainable operations and programs, representatives from 
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 administrative and academic 
    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;
        (4) identify opportunities for partnerships involving 
    institutions of higher education and the Federal Government to 
    expand sustainable operations and academic programs focused on 
    environmental and economic sustainability; and
        (5) charge the summit participants or steering committee to 
    submit a set of recommendations for addressing sustainability 
    through institutions of higher education.
SEC. 1121. NURSING SCHOOL CAPACITY.
    (a) Findings.--Congress finds the following:
        (1) Researchers in the field of public health have identified 
    the need for a national study to identify constraints encountered 
    by schools of nursing in graduating the number of nurses sufficient 
    to meet the health care needs of the United States.
        (2) The shortage of qualified registered nurses has adversely 
    affected the health care system of the United States.
        (3) Individual States have had varying degrees of success with 
    programs designed to increase the recruitment and retention of 
    nurses.
        (4) Schools of nursing have been unable to provide a sufficient 
    number of qualified graduates to meet the workforce needs.
        (5) Many nurses are approaching the age of retirement, and the 
    problem worsens each year.
        (6) In 2004, an estimated 125,000 applications from qualified 
    applicants were rejected by schools of nursing, due to a shortage 
    of faculty and a lack of capacity for additional students.
    (b) Study With Respect to Constraints With Respect to Schools of 
Nursing.--
        (1) In general.--The Secretary shall enter into an agreement 
    with the Institute of Medicine of the National Academy of Sciences 
    to conduct a study for the purpose of--
            (A) identifying constraints encountered by schools of 
        nursing in admitting and graduating the number of registered 
        nurses necessary to ensure patient safety and meet the need for 
        quality assurance in the provision of health care; and
            (B) developing recommendations to alleviate the constraints 
        on a short-term and long-term basis.
        (2) Certain components.--The Secretary shall ensure that the 
    agreement under paragraph (1) provides that the study under such 
    paragraph will include information on the following:
            (A) The trends in applications for attendance at schools of 
        nursing that are relevant to the purpose of the study, 
        including trends regarding applicants who are accepted for 
        enrollment and applicants who are not accepted, particularly 
        qualified applicants who are not accepted.
            (B) The number and demographic characteristics of entry-
        level and graduate students currently enrolled in schools of 
        nursing, the retention rates at the schools, and the number of 
        recent graduates from the schools, as compared to previous 
        years and to the projected need for registered nurses based on 
        two-year, five-year, and ten-year projections.
            (C) The number and demographic characteristics of nurses 
        who pursue graduate education in nursing and non-nursing 
        programs but do not pursue faculty positions in schools of 
        nursing, the reasons for not pursuing faculty positions, 
        including any regulatory barriers to choosing to pursue such 
        positions, and the effect of such decisions on the ability of 
        the schools to obtain adequate numbers of faculty members.
            (D) The extent to which--
                (i) entry-level graduates of the schools of nursing are 
            satisfied with their educational preparation, including 
            their participation in nurse externships, internships, and 
            residency programs; and
                (ii) such entry-level graduates are able to effectively 
            transition into the nursing workforce.
            (E) The satisfaction of nurse managers and administrators 
        with respect to the preparation and performance levels of 
        entry-level graduates from the schools after one year, three 
        years, and five years of practice, respectively.
            (F) The extent to which the current salary, benefit 
        structures, and characteristics of the workplace, including the 
        number of nurses who are presently serving in faculty 
        positions, influence the career path of nurses who have pursued 
        graduate education.
            (G) The extent to which the use of innovative technologies 
        for didactic and clinical nursing education might provide for 
        an increase in the ability of schools of nursing to train 
        qualified nurses.
        (3) Recommendations.--The Institute of Medicine may include in 
    the recommendations developed under paragraph (1)(B) 
    recommendations for legislative or administrative changes at the 
    Federal or State level, and measures that can be taken in the 
    private sector--
            (A) to facilitate the recruitment of students into the 
        nursing profession;
            (B) to facilitate the retention of nurses in the workplace; 
        and
            (C) to improve the resources and ability of the education 
        and health care systems to prepare a sufficient number of 
        qualified registered nurses.
        (4) Methodology of study.--
            (A) Scope.--The Secretary shall ensure that the agreement 
        under paragraph (1) provides that the study under such 
        paragraph will consider the perspectives of--
                (i) nurses and physicians in each of the various types 
            of inpatient, outpatient, and residential facilities in the 
            health care delivery system;
                (ii) faculty and administrators of schools of nursing;
                (iii) providers of health plans or health insurance; 
            and
                (iv) consumers.
            (B) Consultation with relevant organization.--The Secretary 
        shall ensure that the agreement under paragraph (1) provides 
        that relevant agencies and organizations with expertise on the 
        nursing shortage will be consulted with respect to the study 
        under such paragraph, including the following:
                (i) The Agency for Healthcare Research and Quality.
                (ii) The American Academy of Nursing.
                (iii) The American Association of Colleges of Nursing.
                (iv) The American Nurses Association.
                (v) The American Organization of Nurse Executives.
                (vi) The National Institute of Nursing Research.
                (vii) The National League for Nursing.
                (viii) The National Organization for Associate Degree 
            Nursing.
                (ix) The National Student Nurses Association.
        (5) Report.--The Secretary shall ensure that the agreement 
    under paragraph (1) provides that, not later than 18 months after 
    the date of enactment of this section, the Institute of Medicine 
    shall submit a report providing the findings and recommendations 
    made in the study under this section to the Secretary and the 
    authorizing committees.
        (6) Other organization.--If the Institute of Medicine declines 
    to conduct the study under paragraph (1), the Secretary may enter 
    into an agreement with another appropriate private entity to 
    conduct the study.
    (c) Definitions.--In this section:
        (1) Terms in public health service act.--The terms ``collegiate 
    school of nursing'', ``associate degree school of nursing'', and 
    ``diploma school of nursing'' have the meanings given to such terms 
    in section 801 of the Public Health Service Act (42 U.S.C. 296).
        (2) School of nursing.--The term ``school of nursing'' means a 
    collegiate school of nursing, an associate degree school of 
    nursing, or a diploma school of nursing in a State.
        (3) Secretary.--The term ``Secretary'' means the Secretary of 
    Education.
SEC. 1122. STUDY AND REPORT ON NONINDIVIDUAL INFORMATION.
    (a) Definitions.--In this section:
        (1) Historically black college or university.--The term 
    ``historically Black college or university'' has the meaning given 
    the term ``part B institution'' in section 322 of the Higher 
    Education Act of 1965 (20 U.S.C. 1061).
        (2) Truth in lending act.--The terms ``covered educational 
    institution'' and ``private education loan'' have the meanings 
    given the terms in section 140 of the Truth in Lending Act, as 
    added by title X.
    (b) Study.--The Comptroller General of the United States shall 
conduct a study--
        (1) on the impact on and benefits to borrowers of the inclusion 
    of nonindividual factors, including cohort default rate, 
    accreditation, and graduation rate at institutions of higher 
    education, used in the underwriting criteria to determine the 
    pricing of private education loans;
        (2) to examine whether and to what extent the inclusion of such 
    nonindividual factors--
            (A) increases access to private education loans for 
        borrowers who lack credit history or results in less favorable 
        rates for such borrowers; and
            (B) affects the types of private education loan products 
        and rates available at certain institutions of higher 
        education, including a comparison of such impact--
                (i) on private and public institutions; and
                (ii) on historically Black colleges and universities 
            and institutions of higher education; and
        (3) to assess the extent to which the use of such nonindividual 
    factors in underwriting may have a disparate impact on the pricing 
    of private education loans, based on gender, race, income level, 
    and covered educational institution.
    (c) Report.--Not later than one year after the date of enactment of 
this Act, the Comptroller General of the United States shall submit a 
report to the Committee on Banking, Housing, and Urban Affairs and the 
Committee on Health, Education, Labor, and Pensions of the Senate and 
the Committee on Financial Services of the House of Representatives on 
the results of the study required by this section.
SEC. 1123. FEASIBILITY STUDY FOR STUDENT LOAN CLEARINGHOUSE.
    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study of the feasibility of developing a national 
student loan clearinghouse on the website of the Department of 
Education that would provide for one or more of the following:
        (1) A registry of real-time information on Federal student 
    loans (including loans under parts B and D of title IV of the 
    Higher Education Act of 1965 (20 U.S.C. 1071 et seq. and 1087a et 
    seq.) and private education loans (as defined in section 140 of the 
    Truth in Lending Act)), for both undergraduate and graduate 
    students, and parents of students, for use by prospective borrowers 
    or any person desiring information regarding available interest 
    rates, fees, and other terms from lenders.
        (2) A mechanism whereby prospective borrowers could be matched 
    with lenders that offer highly competitive products and loan 
    servicing quality, including any procedures and safeguards 
    necessary to minimize potentially adverse effects of multiple 
    inquiries into participating borrowers' credit histories recorded 
    by consumer reporting agencies.
        (3) Options concerning the establishment and ongoing 
    maintenance of such a system, including whether such a system 
    should be operated by one or more entities, and methods to finance 
    such a system at no or minimal cost to consumers and the 
    Government.
        (4) Other features that could help prospective borrowers make 
    informed decisions in selecting lenders from whom to obtain Federal 
    and private education loans.
    (b) Consultation.--In conducting the study under subsection (a), 
the Comptroller General of the United States shall consult with--
        (1) the Secretary of Education;
        (2) the Federal Trade Commission;
        (3) representatives of student loan borrowers;
        (4) representatives from institutions of higher education, 
    including financial aid administrators, registrars, business 
    officers, and student affairs officials;
        (5) Federal and private educational lenders (as defined in 
    section 140 of the Truth in Lending Act), loan servicers, and 
    guaranty agencies; and
        (6) other appropriate entities with relevant experience.
    (c) Report.--Not later than two years after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
to the authorizing committees a report on the study conducted under 
subsection (a).
SEC. 1124. STUDY ON DEPARTMENT OF EDUCATION OVERSIGHT OF INCENTIVE 
COMPENSATION BAN.
    (a) In General.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General of the United States 
shall--
        (1) conduct a study of efforts by the Secretary of Education to 
    enforce the provisions of section 487(a)(20) of the Higher 
    Education Act of 1965 (20 U.S.C. 1094(a)(20)); and
        (2) submit to the authorizing committees a report that provides 
    the results of such study.
    (b) Content of Report.--The report submitted under subsection (a) 
shall include--
        (1) an analysis of the nature, extent, and effectiveness of the 
    Secretary of Education's activities to enforce the provisions of 
    section 487(a)(20) of the Higher Education Act of 1965 (20 U.S.C. 
    1094(a)(20));
        (2) the number of institutions of higher education for which 
    investigations were initiated by the Secretary for potential 
    violations of such section since 1998;
        (3) in cases where violations of such section by institutions 
    of higher education were substantiated by the Secretary--
            (A) the names of such institutions;
            (B) the nature of the violations; and
            (C) the penalty, if any, imposed by the Secretary for such 
        violations;
        (4) an analysis of the impact of the ``safe harbor'' 
    regulations under section 668.14(b)(22)(ii)(A) through (L) of title 
    34, Code of Federal Regulations, promulgated under such section 
    487(a)(20), on the number and nature of cases examined by the 
    Secretary for potential violations of such section 487(a)(20), 
    including whether the number of cases examined by the Secretary has 
    increased or decreased since such regulations went into effect;
        (5) information on the extent to which the Secretary has 
    considered efforts by States to examine unethical or unlawful 
    student recruitment or admissions practices by institutions of 
    higher education, including practices that violate the provisions 
    of such section 487(a)(20); and
        (6) information on the extent to which the Secretary reviews 
    publicly-available documents, such as filings to the Securities and 
    Exchange Commission, to monitor the compliance of institutions of 
    higher education with the provisions of such section 487(a)(20).
SEC. 1125. DEFINITION OF AUTHORIZING COMMITTEES.
    For purposes of this title, the term ``authorizing committees'' has 
the meaning given such term in section 103 of the Higher Education Act 
of 1965, as amended by this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.