1.This Act may be cited as the
College Affordability and Creating
Chances for Educational Success for Students Act of
2007
.
<enum>I</enum><header display-inline="yes-display-inline">College Access tax credit act</header>
<section commented="no" display-inline="no-display-inline" id="id0BA666B17FEB4CF6890BA502E28C54AA" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This title may be cited as the
<quote><short-title>College ACCESS Tax Credit
Act</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id1FB01D6E085A43C7A130590563305573" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">College affordability and creating chances
for educational success for students (ACCESS) credit</header>
<subsection commented="no" display-inline="no-display-inline" id="id432C3407A8FB48B185D8A5F7E7E37197"><enum>(a)</enum><header display-inline="yes-display-inline">Allowance of credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="id15A7B332F2A843799AEE34D2471314AB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 36 as section 37 and by inserting after
section 35 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idF24C766251544CDBA34EFED540AD134A" style="OLC">
<section commented="no" display-inline="no-display-inline" id="idF558A3A496E54B249F0514C12F7D0EEA" section-type="subsequent-section"><enum>36.</enum><header display-inline="yes-display-inline">College affordability and creating chances
for educational success for students (ACCESS) credit</header>
<subsection commented="no" display-inline="no-display-inline" id="idCAF33FB82DF2447691695B02569CC63A"><enum>(a)</enum><header display-inline="yes-display-inline">Allowance of credit</header><text display-inline="yes-display-inline">There shall be allowed as a credit against
the tax imposed by this subtitle for any taxable year an amount equal to the
qualified tuition and related expenses paid by the taxpayer during the taxable
year (for education furnished during any academic period beginning in such
taxable year).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idF14E79771BD54952B6DC177CC2C94031"><enum>(b)</enum><header display-inline="yes-display-inline">Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="idAEF9F1E3919F433C99730A5F13638C1B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The credit allowed under this section shall
not exceed $3,000 with respect to any student for any taxable year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id575BBA4191FC411BA0342DEEFF3556EB"><enum>(2)</enum><header display-inline="yes-display-inline">Lifetime limitation</header><text display-inline="yes-display-inline">The credit allowed under this section with
respect to any student shall not exceed—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB4D8BA5E9C85481595C63AA732FE87F8"><enum>(A)</enum><text display-inline="yes-display-inline">the excess (if any) of —</text>
<clause commented="no" display-inline="no-display-inline" id="idE9B4FF234AAB459589F48DAB040D581C"><enum>(i)</enum><text display-inline="yes-display-inline">$12,000 with respect to education furnished
prior to the date such student receives a baccalaureate degree, over</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id11DDD11D51EE4CE082C6E3972492544D"><enum>(ii)</enum><text display-inline="yes-display-inline">the aggregate credit allowed under this
section with respect to such education for all prior taxable years, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE0846DC943334B81B33B0603CF82D01E"><enum>(B)</enum><text display-inline="yes-display-inline">the excess (if any) of—</text>
<clause commented="no" display-inline="no-display-inline" id="id58412F1CE3664641984249DE65C8131E"><enum>(i)</enum><text display-inline="yes-display-inline">$6,000 with respect to education furnished
after to the date such student receives a baccalaureate degree, over</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4B964BC447ED4A2B8454869481D298B8"><enum>(ii)</enum><text display-inline="yes-display-inline">the aggregate credit allowed under this
section with respect to such education for all prior taxable years.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id76CAD70ACBA4429481470BDB793711DC"><enum>(3)</enum><header display-inline="yes-display-inline">Limitation based on modified adjusted gross
income</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idEB4E707AEE9B43AAB271522D82DD7837"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The amount which would (but for this
subsection) be taken into account under subsection (a) for the taxable year
shall be reduced (but not below zero) by the amount determined under
subparagraph (B).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC7BFCB2595574DDC9FD257F6C4166E7E"><enum>(B)</enum><header display-inline="yes-display-inline">Amount of reduction</header><text display-inline="yes-display-inline">The amount determined under this
subparagraph is the amount which bears the same ratio to the amount which would
be so taken into account as—</text>
<clause commented="no" display-inline="no-display-inline" id="IDd2e838c50c624ee89b3ade880c0c012b"><enum>(i)</enum><text display-inline="yes-display-inline">the excess of—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDb6192b20f08e4619bd1c1db0ecde6246"><enum>(I)</enum><text display-inline="yes-display-inline">the taxpayer's modified adjusted gross
income for such taxable year, over</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID9b55f40348f8481d976c6a211891f59a"><enum>(II)</enum><text display-inline="yes-display-inline">$65,000 ($130,000 in the case of a joint
return), bears to</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDca5f326819854709880cb52ad4d090de"><enum>(ii)</enum><text display-inline="yes-display-inline">$18,500 ($37,000 in the case of a joint
return).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3F07BE1EFF96403CA3457115B1F6E323"><enum>(C)</enum><header display-inline="yes-display-inline">Modified adjusted gross
income</header><text display-inline="yes-display-inline">The term
<term>modified adjusted gross income</term> means the adjusted gross income of
the taxpayer for the taxable year increased by any amount excluded from gross
income under section 911, 931, or 933.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7D805D869D6A458493DDB4BA5868FA16"><enum>(4)</enum><header display-inline="yes-display-inline">Denial of credit if student convicted of a
felony drug offense</header><text display-inline="yes-display-inline">The
credit under subsection (a) shall not be allowed for qualified tuition and
related expenses for the enrollment or attendance of a student for any academic
period if such student has been convicted of a Federal or State felony offense
consisting of the possession or distribution of a controlled substance before
the end of the taxable year with or within which such period ends.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID38dc97b7f8cc4daba4b9733d6e436b7f"><enum>(c)</enum><header display-inline="yes-display-inline">Election not To have section
apply</header><text display-inline="yes-display-inline">A taxpayer may elect
not to have this section apply with respect to the qualified tuition and
related expenses of an individual for any taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID7f69026b46fb4b099acc911c954aefe4"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the terms
<term>qualified tuition and related expenses</term> and <term>eligible
educational institution</term> shall have the meaning give such terms under
section 25A(d).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID804a6d7df8ab4c7d8ed131f7e70501ea"><enum>(e)</enum><header display-inline="yes-display-inline">Special rules</header><text display-inline="yes-display-inline">For purposes of this section, rules similar
to the rules of paragraphs (1) through (7) of section 25A shall apply.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idF7273562A9194CB5AC84C3E2B110D67B"><enum>(f)</enum><header display-inline="yes-display-inline">Inflation adjustment</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID2dad95c235de4af0807abdf898eb7b30"><enum>(1)</enum><header display-inline="yes-display-inline">Dollar limitation on amount of
credit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDb4664a258d6b4b93bb87d5e4c4fb9d55"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of a taxable year beginning
after 2007, the $3,000 amount under subsection (b)(1) shall be increased by an
amount equal to—</text>
<clause commented="no" display-inline="no-display-inline" id="ID4a4ad8eb6ea347f394bef655ca38e62b"><enum>(i)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID9c6ec9c47bcd4403af51ee2bf6fa977c"><enum>(ii)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which the taxable year begins,
determined by substituting <quote>calendar year 2006</quote> for
<quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDc357d78cfe744dd290ac5c9ae4c10681"><enum>(B)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If any amount as adjusted under
subparagraph (A) is not a multiple of $100, such amount shall be rounded to the
next lowest multiple of $100.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID7944092076b1487899f4c9a31cd154d1"><enum>(2)</enum><header display-inline="yes-display-inline">Income limits</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDb90fa31a9f9b402ead4a2245d891a830"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of a taxable year beginning
after 2007, each of the dollar amounts in subsection (b)(2)(B) shall each be
increased by an amount equal to—</text>
<clause commented="no" display-inline="no-display-inline" id="IDd277308cc2ad42898d6fd3ce264bb0f5"><enum>(i)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDefcef7c706a34f46a95970287b6497ac"><enum>(ii)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which the taxable year begins,
determined by substituting <quote>calendar year 2006</quote> for
<quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDec8e0e5b861446179088ae0cde5536f8"><enum>(B)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If any amount as adjusted under
subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to
the next lowest multiple of $1,000.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID0e41472213114f2d93777149f8acb542"><enum>(g)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out this section,
including regulations providing for a recapture of the credit allowed under
this section in cases where there is a refund in a subsequent taxable year of
any amount which was taken into account in determining the amount of such
credit.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5A2FA875C3A048CF8B7C545D41BD2B1D"><enum>(2)</enum><header display-inline="yes-display-inline">Refundability of credit</header><text display-inline="yes-display-inline">Paragraph (2) of section 1324(b) of title
31, United States Code, is amended by inserting before the period <quote>or
enacted by the College ACCESS Tax Credit Act</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4764BFDEB4F94F1D80FCE2B278044FCD"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID977BFEF5B0BC4CC291EF425096A8E5F4"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 135(d)(2) of
the Internal Revenue Code of 1986 is amended by striking <quote>section
25A</quote> and inserting <quote>sections 25A and 36</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idECE9939FC5EA4DB283690B15070A0141"><enum>(B)</enum><text display-inline="yes-display-inline">Section 529 of such Code is amended by
striking <quote>the credit allowed to the taxpayer or any other person under
section 25A</quote> in subclause (II) of subsection (c)(3)(B)(v) and inserting
<quote>any credit allowed to the taxpayer or any other person under sections
25A and 36</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id01C9BC7C45BD4D8881500D13187D9A4B"><enum>(C)</enum><text display-inline="yes-display-inline">Section 530 of such Code is amended by
striking <quote>the credit allowed to the taxpayer or any other person under
section 25A</quote> in subclause (II) of subsection (d)(2)(C)(i) and inserting
<quote>any credit allowed to the taxpayer or any other person under sections
25A and 36</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDE6D237BE98F46A88A313C08DA8E7DCA"><enum>(D)</enum><text display-inline="yes-display-inline">Subparagraph (J) of section 6213(g)(2) of
such Code is amended by striking <quote>section 25A(g)(1)</quote> and inserting
<quote>section 25A(g)(1) or 36(e)(1)</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB5F96724712D47EABB63300C0235877B"><enum>(E)</enum><text display-inline="yes-display-inline">Section 6501(m) of such Code is amended by
inserting <quote>36(c),</quote> before <quote>, 40(f)</quote></text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0D32A99948064AE4A85B0F3679ACBE73"><enum>(F)</enum><text display-inline="yes-display-inline">The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is amended by striking the item
relating to section 36 and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id1D79B1085F1C476EBBBFAA81C22093B5" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 36. College affordability
and creating chances for educational success for students (ACCESS)
credit.</toc-entry>
<toc-entry bold="off" level="section">Sec. 37. Overpayments of
tax.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB6EEAF1E97D24B3CB80A3CFFFCC36A71"><enum>(b)</enum><header display-inline="yes-display-inline">Repeal of Hope Scholarship credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7C0730FE763B4223A2B2C08244FEFD77"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 25A of the
Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idE6B9CAD2A6D84B729A332FD68E12EC4C" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id450AAEBDD9B1437B987720E1E420BEF8"><enum>(a)</enum><header display-inline="yes-display-inline">Allowance of credit</header><text display-inline="yes-display-inline">In the case of an individual, there shall
be allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to 20 percent of so much of the qualified tuition and
related expenses paid by the taxpayer during the taxable year (for education
furnished during any academic period beginning in such taxable year) as does
not exceed
$10,000.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD168EE54B8B74A56A4BE9585C07623C6"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id6D539CD54D60456B960441F5DFA5932E"><enum>(A)</enum><text display-inline="yes-display-inline">Section 25A of such Code is amended by
striking subsections (b) and (c) and by redesignating subsections (d), (e),
(f), (g), (h), and (i) as subsections (b), (c), (d), (e), (f), and (g).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD8263B149866465AAD98AF1FADD7EC9C"><enum>(B)</enum><text display-inline="yes-display-inline">Section 25A(e) of such Code, as
redesignated by subparagraph (A), is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id0D243B063DA446D5B72B2AB3C3C0957C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id052BA364F5994AD488A3C18DEAB27A37"><enum>(8)</enum><header display-inline="yes-display-inline">Coordination with college affordability and
creating chances for educational success for students (ACCESS)
credit</header><text display-inline="yes-display-inline">The qualified tuition
and related expenses with respect to an individual for whom a credit under
section 36 is allowed for the taxable year shall not be taken into account
under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCC95BE4EAFC34E4C8F19F7088D72180B"><enum>(9)</enum><header display-inline="yes-display-inline">Certain expenses eligible</header><text display-inline="yes-display-inline">For purposes of this section, qualified
tuition and related expenses shall include expenses described in subsection
(d)(1) with respect to any course of instruction at an eligible educational
institution to acquire or improve job skills of the
individual.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC492B510DA4143BFA5A4062A2F84C743"><enum>(C)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 25A(e) of such
Code, as redesignated by subparagraph (A), is amended by striking <quote>before
the application of subsections (b), (c), and (d)</quote> and inserting
<quote>before the application of subsection (b) and paragraphs (8) and (9) of
this subsection</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5344BB2CEE69413DA8A1B5C4815948DC"><enum>(D)</enum><text display-inline="yes-display-inline">Section 25A(f) of such Code, as
redesignated by subparagraph (A), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id6F7A46F920B14D7E89045EE087060879" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idE356BA8732F2474983D84526A369C371"><enum>(f)</enum><header display-inline="yes-display-inline">Inflation adjustment</header>
<paragraph commented="no" display-inline="no-display-inline" id="id0A7A5C5F411E450A9D8F6FDEBECF7C21"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of a taxable year beginning
after 2001, the $40,000 and $80,000 amounts in subsection (b)(2) shall each be
increased by an amount equal to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB324BE751B0A40F1955A6411FBFFF474"><enum>(A)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAD6FEF8F6EBC4E728D87123F4306171E"><enum>(B)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which the taxable year begins,
determined by substituting <quote>calendar year 2000</quote> for
<quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5B3CFF7EFF5142BB892FCC9ED1416D55"><enum>(2)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If any amount as adjusted under
subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to
the next lowest multiple of
$1,000.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id95FE284B27F341EAAA7E2DC6A9EB64FF"><enum>(E)</enum><text display-inline="yes-display-inline">The heading for section 25A of such Code is
amended—</text>
<clause commented="no" display-inline="no-display-inline" id="id0EA097F5A6CF4873B6F4F43BECA11675"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="section" style="OLC">Hope and</header-in-text></quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id872E8EA6F6F746649DB6ECF15EEE0CC8"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="section" style="OLC">credits</header-in-text></quote> and inserting
<quote><header-in-text level="section" style="OLC">credit</header-in-text></quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1639F512BFF54B8AB83399A7FD928E8B"><enum>(F)</enum><text display-inline="yes-display-inline">The item relating to section 25A in the
table of sections for subpart A of part IV of subchapter A of chapter 1 of such
Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id73897FF7B0CE48118BAFB2D5EBCD3E21" style="OLC">
<toc>
<toc-entry bold="off" level="section">25A. Lifetime Learning
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6C69687B6CD047B7BA90E8EEFCCC19AF"><enum>(G)</enum><clause commented="no" display-inline="yes-display-inline" id="idA81B5DDE415048FE9ADFC1C3FD3415BF"><enum>(i)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 72(t)(7) of
such Code is amended by striking <quote>section 25A(g)(2)</quote> and inserting
<quote>section 25A(e)(2)</quote>.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDD7F9C5388F5E491585058858691F8923" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">Section 221(d) of such Code is
amended—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID5B6B80DC4A5F4CD09D9DEBBAB2DBB4A5"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>section
25A(g)(2)</quote> in paragraph (2)(B) and inserting <quote>section
25A(e)(2)</quote>,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDDDF89E33797A48578CCA8AF259ABF36E"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>section
25A(f)(2)</quote> in paragraph (2)(B) and inserting <quote>section
25A(d)(2)</quote>, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDA3EC4D0A3520482F9211AC64B4299957"><enum>(III)</enum><text display-inline="yes-display-inline">by striking <quote>section
25A(b)(3)</quote> in paragraph (3) and inserting <quote>section
25A(b)(3)(B)</quote>.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID66B91154843449E1AD47A0003021BF3D" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">Section 529 of such Code is amended—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID9BF039D3331847E7A07730998E83F6AA"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>section
25A(g)(2)</quote> in subclause (I) of subsection (c)(3)(B)(v) and inserting
<quote>section 25A(e)(2)</quote>, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDDB9F0F978C134DD39470597827E4C889"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>section
25A(b)(3)</quote> in clause (i) of subsection (e)(3)(B) and inserting
<quote>section 25A(b)(3)(A)</quote>.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID573DF98F3556415DA53DADDD222E2479" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">Section 530 of such Code is amended—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDC0DAC60D18E14D208BADE759976A056F"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>section
25A(g)(2)</quote> in subclause (I) of subsection (d)(2)(C)(i) and inserting
<quote>section 25A(e)(2)</quote>, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID9CC2F2F598894027BC645EDA3E202E54"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>section
25A(g)(2)</quote> in clause (iii) of subsection (d)(4)(B) and inserting
<quote>section 25A(e)(2)</quote>.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDD7F528479F8E4B7D869509AA5E1460F3" indent="up1"><enum>(v)</enum><text display-inline="yes-display-inline">Subsection (e) of section 6050S of such
Code is amended by striking <quote>(g)(2) thereof</quote> and inserting
<quote>(e)(2) thereof</quote>.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDDD46E97BD46D40A39F3928776E17BF65" indent="up1"><enum>(vi)</enum><text display-inline="yes-display-inline">Subparagraph (J) of section 6213(g)(2) of
such Code, as amended by subsection 9a)(3), is amended by striking
<quote>section 25A(g)(1)</quote> and inserting <quote>section
25A(e)(1)</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id44A3058172594C2082425004334B4638"><enum>(c)</enum><header display-inline="yes-display-inline">Repeal of deduction for qualified tuition
and related expenses</header>
<paragraph commented="no" display-inline="no-display-inline" id="id571F3C0CBD514536B2B33511C9029590"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Part VII of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by striking section 222.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8399A4480DB24D569DC2D337CDA16DC8"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id42CF19810EDB424EB984AF37B910A6C2"><enum>(A)</enum><text display-inline="yes-display-inline">The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by striking the item relating
to section 222.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id300BBEA976874ED2AD7BDFF36C9121D5"><enum>(B)</enum><text display-inline="yes-display-inline">The following sections of the Internal
Revenue Code of 1986 are each amended by striking <quote>222,</quote>:</text>
<clause commented="no" display-inline="no-display-inline" id="id0FEB77271C444BDA9A6BD8C3762CE115"><enum>(i)</enum><text display-inline="yes-display-inline">Section 86(b)(2)(A).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idF1EC54909CFE46329FFC35C72E08FC57"><enum>(ii)</enum><text display-inline="yes-display-inline">Section 135(c)(4)(A).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idBE1BB6A626C84B0CB043F73B1895093C"><enum>(iii)</enum><text display-inline="yes-display-inline">Section 137(b)(3)(A).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idFD98FB4F45AF4FB4AB2A10B57699E798"><enum>(iv)</enum><text display-inline="yes-display-inline">Section 199(d)(2)(A).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id49BDD711B09844F3B693B3DFA2B799D2"><enum>(v)</enum><text display-inline="yes-display-inline">Section 219(g)(3)(A)(ii).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idB998DA2FFC014E04A81AA42679A521EC"><enum>(vi)</enum><text display-inline="yes-display-inline">Section 221(b)(2)(C)(i).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF208DEEED2B34C2C8BB0BEB038C1C839"><enum>(C)</enum><text display-inline="yes-display-inline">Section 469(i)(3)(F)(iii) of such Code is
amended by striking <quote>221, and 222</quote> and inserting <quote>and
221</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID92F327A6FA8F46018657447989573E42"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to expenses paid after December 31, 2006, for
education furnished in academic periods beginning after such date.</text>
</subsection></section><enum>II</enum><header display-inline="yes-display-inline">Early Federal Pell Grant Commitment
Demonstration Program</header>
<section commented="no" display-inline="no-display-inline" id="S1" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Early Federal Pell Grant commitment
demonstration program</header><text display-inline="no-display-inline">Subpart
1 of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a et
seq.) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC6790FB9ED4B4027A17B1FB8F3083BD0" style="OLC">
<section commented="no" display-inline="no-display-inline" id="idD6CA2F830FE040379842620EBE5ED440" section-type="subsequent-section"><enum>401B.</enum><header display-inline="yes-display-inline">Early Federal Pell Grant commitment
demonstration program</header>
<subsection commented="no" display-inline="no-display-inline" id="id0D82DD5498474217BDA3B89CFA1EFC59"><enum>(a)</enum><header display-inline="yes-display-inline">Demonstration program authority</header>
<paragraph commented="no" display-inline="no-display-inline" id="id37A65AB3437C4EE79DFAD418D1AB449C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary is authorized to carry out an
Early Federal Pell Grant Commitment Demonstration Program under which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4E22257F28944BB587CE571156DE6501"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary awards grants to 4 State
educational agencies, in accordance with paragraph (2), to pay the
administrative expenses incurred in participating in the demonstration program
under this section; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id29E907FB2DA742D4A40069F48F674041"><enum>(B)</enum><text display-inline="yes-display-inline">the Secretary awards Federal Pell Grants to
participating students in accordance with this section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id692DBEF2411E46DBA9F72DE89576D3FA"><enum>(2)</enum><header display-inline="yes-display-inline">Grants</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idBDC3385AED2F4A1A8FBD4F73B6CBDC03"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">From amounts appropriated under subsection
(g) for a fiscal year, the Secretary is authorized to award grants to 4 State
educational agencies to enable the State educational agencies to pay the
administrative expenses incurred in participating in a demonstration program
under which students in 8th grade who are eligible for a free or reduced price
meal receive a commitment to receive a Federal Pell Grant early in their
academic careers.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2133FEDA27DF443EA705D0D0B46B2F52"><enum>(B)</enum><header display-inline="yes-display-inline">Equal amounts</header><text display-inline="yes-display-inline">The Secretary shall award grants under this
section in equal amounts to each of the 4 participating State educational
agencies.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id435C672394D340FAAAFA9EF6A4EC3000"><enum>(b)</enum><header display-inline="yes-display-inline">Demonstration project
requirements</header><text display-inline="yes-display-inline">Each of the 4
demonstration projects assisted under this section shall meet the following
requirements:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id89935C44C0C1459DA941C770F14F9387"><enum>(1)</enum><header display-inline="yes-display-inline">Participants</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idB48F47232B264BACB9653DAA19137674"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The State educational agency shall make
participation in the demonstration project available to 2 cohorts of students,
which shall consist of—</text>
<clause commented="no" display-inline="no-display-inline" id="id1A5B142D933D4E70AB4AAB26185E1623"><enum>(i)</enum><text display-inline="yes-display-inline">1 cohort of 8th grade students who begin
the participation in academic year 2007–2008; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7F655E59D978496D8186F20D551F22E3"><enum>(ii)</enum><text display-inline="yes-display-inline">1 cohort of 8th grade students who begin
the participation in academic year 2008–2009.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9CF4109D097B431E98F7CDB3810CBB4B"><enum>(B)</enum><header display-inline="yes-display-inline">Students in each cohort</header><text display-inline="yes-display-inline">Each cohort of students shall consist of
not more than 10,000 8th grade students who qualify for a free or reduced price
meal under the Richard B. Russell National School Lunch Act or the Child
Nutrition Act of 1966.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFADEDD55D1454AF2BE110C176808C13A"><enum>(2)</enum><header display-inline="yes-display-inline">Student data</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAA9AFDC74A5544679B157E84D050B158"><enum>(3)</enum><header display-inline="yes-display-inline">Federal Pell Grant commitment</header><text display-inline="yes-display-inline">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 student is in attendance
at an institution of higher education as an undergraduate, if the student
applies for Federal financial aid (via the FAFSA) during the student's senior
year of secondary school and during succeeding years.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0BCE11BB8B204415895B52222BA499B0"><enum>(4)</enum><header display-inline="yes-display-inline">Applicability of Federal Pell Grant
requirements</header><text display-inline="yes-display-inline">The requirements
of section 401 shall apply to Federal Pell Grants awarded pursuant to this
section, except that the amount of each participating student's Federal Pell
Grant only shall be calculated by deeming such student to have an expected
family contribution equal to zero.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8C3092DFDEE841909979B8E255B13E4A"><enum>(5)</enum><header display-inline="yes-display-inline">Application process</header><text display-inline="yes-display-inline">The Secretary shall establish an
application process to select State educational agencies to participate in the
demonstration program and State educational agencies shall establish an
application process to select local educational agencies within the State to
participate in the demonstration project.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1C4C06291DFD472F9B6550A9365E99AF"><enum>(6)</enum><header display-inline="yes-display-inline">Local educational agency
participation</header><text display-inline="yes-display-inline">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 meal under the Richard B. Russell National
School Lunch Act or the Child Nutritional Act of 1966, shall be eligible to
participate in the demonstration project.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6BBFF9D017604AE9BB6BF560DFE3C7B5"><enum>(c)</enum><header display-inline="yes-display-inline">State educational agency
applications</header>
<paragraph commented="no" display-inline="no-display-inline" id="idBA051B17AD9F473EB745A0B436DC4BD8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB74CEBCC6653428292932594BB62EDE0"><enum>(2)</enum><header display-inline="yes-display-inline">Contents</header><text display-inline="yes-display-inline">Each application shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idBAB75E1A5E93487CAAB6D48E6423F988"><enum>(A)</enum><text display-inline="yes-display-inline">a description of the proposed targeted
information campaign for the demonstration project and a copy of the plan
described in subsection (f)(2);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFB41D7C5433B498F830884A2A6214E18"><enum>(B)</enum><text display-inline="yes-display-inline">a description of the student population
that will receive an early commitment to receive a Federal Pell Grant under
this section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3BEC2DD652E04B2C82515C69AA491764"><enum>(C)</enum><text display-inline="yes-display-inline">an assurance that the State educational
agency will fully cooperate with the ongoing evaluation of the demonstration
project; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8364F1D60D194E3488C7B5A28614AA52"><enum>(D)</enum><text display-inline="yes-display-inline">such other information as the Secretary may
require.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id10CE7FFB514A4E8CBBE80A20509A1C09"><enum>(d)</enum><header display-inline="yes-display-inline">Selection considerations</header>
<paragraph commented="no" display-inline="no-display-inline" id="id00C40DDC255F4EA2877764225FCD26C5"><enum>(1)</enum><header display-inline="yes-display-inline">Selection of State educational
agencies</header><text display-inline="yes-display-inline">In selecting State
educational agencies to participate in the demonstration program, the Secretary
shall consider—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id75F5044940B342B7A501C4375BAE22D0"><enum>(A)</enum><text display-inline="yes-display-inline">the number and quality of State educational
agency applications received;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3939034C9D354BEDB4EC82920135761A"><enum>(B)</enum><text display-inline="yes-display-inline">the Department's capacity to oversee and
monitor each State educational agency's participation in the demonstration
program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4766876F69DA4B5EBD734E9329C0F8FB"><enum>(C)</enum><text display-inline="yes-display-inline">a State educational agency's—</text>
<clause commented="no" display-inline="no-display-inline" id="idF296BE96A5024B58B2AF5C5413A0692F"><enum>(i)</enum><text display-inline="yes-display-inline">financial responsibility;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id67627DC8AD704F40BDA7D3901B069A01"><enum>(ii)</enum><text display-inline="yes-display-inline">administrative capability;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id608E7C35C1E44910A88D1C1F3A13F16C"><enum>(iii)</enum><text display-inline="yes-display-inline">commitment to focusing State resources, in
addition to any resources provided under part A of title I of the Elementary
and Secondary Education Act of 1965, on students who receive assistance under
such part A;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id84B92F3B1E6F403E87F1F1B15D691F41"><enum>(iv)</enum><text display-inline="yes-display-inline">the ability and plans of a State
educational agency to run an effective and thorough targeted information
campaign for students served by local educational agencies eligible to
participate in the demonstration project; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idF584B4C5BA7A4D6A85E816A000DC0BCE"><enum>(v)</enum><text display-inline="yes-display-inline">ensuring the participation in the
demonstration program of a diverse group of students with respect to ethnicity
and gender.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5C15727A71184F12ACCF508FDD071F83"><enum>(2)</enum><header display-inline="yes-display-inline">Local educational agency</header><text display-inline="yes-display-inline">In selecting local educational agencies to
participate in a demonstration project under this section, the State
educational agency shall consider—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id7C8C29F3F32949529D5CCCE8DDBFEF3F"><enum>(A)</enum><text display-inline="yes-display-inline">the number and quality of local educational
agency applications received;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3360C7E7045A4313AC8A0F8B367F6D54"><enum>(B)</enum><text display-inline="yes-display-inline">the State educational agency's capacity to
oversee and monitor each local educational agency's participation in the
demonstration project;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF328C3759DA6426DA23650E955F8FE6F"><enum>(C)</enum><text display-inline="yes-display-inline">a local educational agency's—</text>
<clause commented="no" display-inline="no-display-inline" id="id986557CB09784ED1837E2E843276AEFE"><enum>(i)</enum><text display-inline="yes-display-inline">financial responsibility;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id3FDF597147C84162958B600FB646A9D4"><enum>(ii)</enum><text display-inline="yes-display-inline">administrative capability;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idDC29DC6ADEE2492391D3FF7B4009F764"><enum>(iii)</enum><text display-inline="yes-display-inline">commitment to focusing local resources, in
addition to any resources provided under part A of title I of the Elementary
and Secondary Education Act of 1965, on students who receive assistance under
such part A;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idA35041E8EE344BF983BCFACE1DE63A9E"><enum>(iv)</enum><text display-inline="yes-display-inline">the ability and plans of a local
educational agency to run an effective and thorough targeted information
campaign for students served by the local educational agency; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id0136E03BA8A040068CEA98664FAC12CC"><enum>(v)</enum><text display-inline="yes-display-inline">ensuring the participation in the
demonstration project of a diverse group of students with respect to ethnicity
and gender.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID7178082fde7d4f7c98a776281087d397"><enum>(e)</enum><header display-inline="yes-display-inline">Evaluation</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDbe3dc3fbe751452b9acbf6e14451d32c"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">From amounts appropriated under section (g)
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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDff1ecc1a08ae4a8ea0a190a1f2360b24"><enum>(2)</enum><header display-inline="yes-display-inline">Competitive basis</header><text display-inline="yes-display-inline">The grant or contract shall be awarded on a
competitive basis.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID41f04cccd79b4a99b59736eefdb90e7c"><enum>(3)</enum><header display-inline="yes-display-inline">Matters evaluated</header><text display-inline="yes-display-inline">The evaluation described in this subsection
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8fc15a31d0174d1189ef3ef493608f5d"><enum>(A)</enum><text display-inline="yes-display-inline">determine the number of individuals who
were encouraged by the demonstration program to pursue higher education;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9fa4d892cc244f3b83cd1c34ce3b0328"><enum>(B)</enum><text display-inline="yes-display-inline">identify the barriers to the effectiveness
of the demonstration program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf154ef54879e4a08ae8a7c92ea89b09d"><enum>(C)</enum><text display-inline="yes-display-inline">assess the cost-effectiveness of the
demonstration program in improving access to higher education;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDeee8316178824ce8aa9abb739014b029"><enum>(D)</enum><text display-inline="yes-display-inline">identify the reasons why participants in
the demonstration program either received or did not receive a Federal Pell
Grant;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID49886516dc524667b734270f43d14243"><enum>(E)</enum><text display-inline="yes-display-inline">identify intermediate outcomes (relative to
postsecondary education attendance), such as whether participants—</text>
<clause commented="no" display-inline="no-display-inline" id="idB9A989711A9D4C759C220C1F533A278D"><enum>(i)</enum><text display-inline="yes-display-inline">were more likely to take a college-prep
curriculum while in secondary school;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8217A7F1D2894BF2916CE4FE960630A8"><enum>(ii)</enum><text display-inline="yes-display-inline">submitted any college applications;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id6363BFD78CA14358AD92B378EE8988B0"><enum>(iii)</enum><text display-inline="yes-display-inline">took the PSAT, SAT, or ACT;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9b290febfb624119bb89ae1ff7f43eb1"><enum>(F)</enum><text display-inline="yes-display-inline">identify the number of individuals
participating in the demonstration program who pursued an associate's degree or
a bachelor's degree, as well as other forms of postsecondary education;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDaad1c7cd106e484dbdc07aceb3245d98"><enum>(G)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA19C9AF29762425FB5AED3720B71763F"><enum>(H)</enum><text display-inline="yes-display-inline">identify the impact on the parents of
students eligible to participate in the demonstration program.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID237551c687e4455e9c12e03b446378c7"><enum>(4)</enum><header display-inline="yes-display-inline">Dissemination</header><text display-inline="yes-display-inline">The findings of the evaluation shall be
widely disseminated to the public by the organization conducting the evaluation
as well as by the Secretary.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID72cb09360d7640bbb517491904e27e35"><enum>(f)</enum><header display-inline="yes-display-inline">Targeted information campaign</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID4c9dc93eaa0a4020b0c4b7b7302f53df"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 program assisted under this
section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8f4fbefe6a9e408397aba87bec4be011"><enum>(2)</enum><header display-inline="yes-display-inline">Plan</header><text display-inline="yes-display-inline">Each State educational agency receiving a
grant under this section shall include in the application submitted under
subsection (c) a written plan for their proposed targeted information campaign.
The plan shall include the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0ede20e4bab64710bfd1e2ec02f9a7d0"><enum>(A)</enum><header display-inline="yes-display-inline">Outreach</header><text display-inline="yes-display-inline">Outreach to students and their families, at
a minimum, at the beginning and end of each academic year of the demonstration
project.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8560599f3b9543cc911fee202c217821"><enum>(B)</enum><header display-inline="yes-display-inline">Distribution</header><text display-inline="yes-display-inline">How the State educational agency plans to
provide the outreach described in subparagraph (A) and to provide the
information described in subparagraph (C).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4173489b92bb47a88f1f357dad1807e9"><enum>(C)</enum><header display-inline="yes-display-inline">Information</header><text display-inline="yes-display-inline">The annual provision by the State
educational agency to all students and families participating in the
demonstration program of information regarding—</text>
<clause commented="no" display-inline="no-display-inline" id="ID3e98138266f04d81bcd6929ecf94251c"><enum>(i)</enum><text display-inline="yes-display-inline">the estimated statewide average higher
education institution cost data for each academic year, which cost data shall
be disaggregated by—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDc58ccb11573b44beabb1f811517172ba"><enum>(I)</enum><text display-inline="yes-display-inline">type of institution, including—</text>
<item commented="no" display-inline="no-display-inline" id="ID8562e61d684248ed97e5d012e82d4f0c"><enum>(aa)</enum><text display-inline="yes-display-inline">2-year public colleges;</text>
</item><item commented="no" display-inline="no-display-inline" id="ID2482ade61baf4a09bb6425617307a7e8"><enum>(bb)</enum><text display-inline="yes-display-inline">4-year public colleges; and</text>
</item><item commented="no" display-inline="no-display-inline" id="IDb33f7acd5c454dfdb116051082b6b3d0"><enum>(cc)</enum><text display-inline="yes-display-inline">4-year private colleges;</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="ID45c86c24747b4b92b24808bbae745042"><enum>(II)</enum><text display-inline="yes-display-inline">by component, including—</text>
<item commented="no" display-inline="no-display-inline" id="ID4a9c2a697ee74e839e83525eda53edc8"><enum>(aa)</enum><text display-inline="yes-display-inline">tuition and fees; and</text>
</item><item commented="no" display-inline="no-display-inline" id="IDdb241d07d68744b4bed6e77b2c94dfa2"><enum>(bb)</enum><text display-inline="yes-display-inline">room and board;</text>
</item></subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID12253871c3c843fdad547127251f4657"><enum>(ii)</enum><text display-inline="yes-display-inline">Federal Pell Grants, including—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID31a72114c38c413a93ecc242ac156821"><enum>(I)</enum><text display-inline="yes-display-inline">the maximum Federal Pell Grant for each
academic year;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDcaacb4124a6e471a91ee5cf9bb98e13e"><enum>(II)</enum><text display-inline="yes-display-inline">when and how to apply for a Federal Pell
Grant; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDd7705f8996904d48a20b7d251607445a"><enum>(III)</enum><text display-inline="yes-display-inline">what the application process for a Federal
Pell Grant requires;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID35278f29718e4ae6b4cc60365a0136c4"><enum>(iii)</enum><text display-inline="yes-display-inline">State-specific college savings
programs;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID28dfea491c0b46678e512d79443efa0b"><enum>(iv)</enum><text display-inline="yes-display-inline">State-based merit aid;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID52e678562eda47459948cc5bf454cf81"><enum>(v)</enum><text display-inline="yes-display-inline">State-based financial aid; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id282B205A218E4E07B0C14DDC399E2AC3"><enum>(vi)</enum><text display-inline="yes-display-inline">Federal financial aid available to
students, including eligibility criteria for the Federal financial aid and an
explanation of the Federal financial aid programs.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFC79DBABDA444BA4AC38953F4EB1CDF0"><enum>(3)</enum><header display-inline="yes-display-inline">Cohorts</header><text display-inline="yes-display-inline">The information described in paragraph
(2)(C) shall be provided to 2 cohorts of students annually for the duration of
the students' participation in the demonstration program. The 2 cohorts shall
consist of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idDCD9EEF1145A4DA8B7CDC278131B6ABD"><enum>(A)</enum><text display-inline="yes-display-inline">1 cohort of 8th grade students who begin
the participation in academic year 2007–2008; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA28F4AF38AD54FB088800027D2F331E5"><enum>(B)</enum><text display-inline="yes-display-inline">1 cohort of 8th grade students who begin
the participation in academic year 2008–2009.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID85ef863fb6ff489fbb6616e2aee05699"><enum>(4)</enum><header display-inline="yes-display-inline">Reservation</header><text display-inline="yes-display-inline">Each State educational agency receiving a
grant under this section shall reserve $200,000 of the grant funds received
each fiscal year for each of the 2 cohorts of students (for a total reservation
of $400,000 each fiscal year) served by the State to carry out their targeted
information campaign described in this subsection.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6B68846BE8BA49EF8EAA1F67C7184581"><enum>(g)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to carry out this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA51136358F264A14B797243DE271EEBB"><enum>(1)</enum><text display-inline="yes-display-inline">$1,300,000 for fiscal year 2008, of
which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id5DFDBF21C28E49DF9872343441B9B40C"><enum>(A)</enum><text display-inline="yes-display-inline">$500,000 shall be available to carry out
subsection (e); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6C8E7C4655694168977DF15ABF21A076"><enum>(B)</enum><text display-inline="yes-display-inline">$800,000 shall be available to carry out
subsection (f)(2)(C);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id343D2DFA6C114FFA9D49BE9DD42E3093"><enum>(2)</enum><text display-inline="yes-display-inline">$1,600,000 for fiscal year 2009, of which
$1,600,000 shall be available to carry out subsection (f)(2)(C);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8C81B46059304DDDAEBF6DC4DECE7D76"><enum>(3)</enum><text display-inline="yes-display-inline">$1,600,000 for fiscal year 2010, of which
$1,600,000 shall be available to carry out subsection (f)(2)(C);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id16E9B7A986694947B01400738C094B3E"><enum>(4)</enum><text display-inline="yes-display-inline">$2,100,000 for fiscal year 2011, of
which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2F171F3EEC1D417EB6C42D2E7292E34D"><enum>(A)</enum><text display-inline="yes-display-inline">$500,000 shall be available to carry out
subsection (e); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id69EA56DF2A864B0AB4205614F6BA146C"><enum>(B)</enum><text display-inline="yes-display-inline">$1,600,000 shall be available to carry out
subsection (f)(2)(C);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4E451FFEB09E4C4093ED7197444530AD"><enum>(5)</enum><text display-inline="yes-display-inline">$1,600,000 for fiscal year 2012, of which
$1,600,000 shall be available to carry out subsection (f)(2)(C);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5B03CDC18450416D8E3B70CD087F966D"><enum>(6)</enum><text display-inline="yes-display-inline">$14,600,000 for fiscal year 2013, of
which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id7FD3D6E0549D4FCFBA4058B00D893EC3"><enum>(A)</enum><text display-inline="yes-display-inline">$800,000 shall be available to carry out
subsection (f)(2)(C); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC3D7810D9BB0469E9E62AE343C78B0AD"><enum>(B)</enum><text display-inline="yes-display-inline">$13,800,000 shall be available for Federal
Pell Grants provided in accordance with this section; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2C1094E989484437A161DC3D7501A531"><enum>(7)</enum><text display-inline="yes-display-inline">$13,800,000 for fiscal year 2014, of which
$13,800,000 shall be available for Federal Pell Grants provided in accordance
with this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header display-inline="yes-display-inline">Increase in Federal Pell Grant maximum
award</header>
<section commented="no" display-inline="no-display-inline" id="id2E4357B9F6084C94B93405D24836F565" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Increase of maximum Federal Pell Grant
amount</header><text display-inline="no-display-inline">Section 401(b)(2)(A) of
the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(2)(A)) is amended by
striking clauses (i) through (v) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id2357E465E65E452B9BDD7825F9B8A513" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="id8FD9B4CD6CB04DE7888ADB20C32353AB" indent="up2"><enum>(i)</enum><text display-inline="yes-display-inline">$5,100 for academic year 2007–2008;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id79D9E255AAAA4CD1B68F7C7A8F73C843" indent="up2"><enum>(ii)</enum><text display-inline="yes-display-inline">$5,400 for academic year 2008–2009;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id48FE26C3B0A245D1B20EF947E189894F" indent="up2"><enum>(iii)</enum><text display-inline="yes-display-inline">$5,700 for academic year 2009–2010;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7A5F0BF96926493CA323AA99F678A029" indent="up2"><enum>(iv)</enum><text display-inline="yes-display-inline">$6,000 for academic year 2010–2011;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idDA70CB0105BF41F2BAF2D96526632B78" indent="up2"><enum>(v)</enum><text display-inline="yes-display-inline">$6,300 for academic year
2011–2012,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section>