1.
(a)This Act may be cited
as the Higher Education Access Act of
2007
.
(b)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.).
<enum>I</enum><header>Grants to
students in attendance at institutions of higher education</header>
<section commented="no" id="ID2028CDE3D47549C98E01E5CE8422E50A"><enum>101.</enum><header>Tuition
sensitivity</header>
<subsection commented="no" id="id872FE86F84A84108A2B8C39F517AC1BF"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 401(b) (20 U.S.C. 1070a(b)) is
amended by striking paragraph (3).</text>
</subsection><subsection id="id56E0E6531CF14E3B9991B019C08B4303"><enum>(b)</enum><header>Authorization
and appropriation of funds</header><text>There is authorized to be
appropriated, and there is appropriated, out of any money in the Treasury not
otherwise appropriated, for the Department of Education to carry out the
amendment made by subsection (a), $5,000,000 for fiscal year 2008.</text>
</subsection></section><section commented="no" id="id7BDF02FDB4414E2E8FC4B40A3049AC96"><enum>102.</enum><header>Promise
grants</header>
<subsection commented="no" id="ID7F41D5E754AE473BA10A299A41AF2ACF"><enum>(a)</enum><header>Amendment</header><text>Subpart
1 of part A of title IV (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="id3411BBF5E34A4F519C03568D19FC0297" style="OLC">
<section commented="no" id="IDC8757F88E4E34C26A1E6D8BDEDA1325A"><enum>401B.</enum><header>Promise
grants</header>
<subsection commented="no" id="IDD8EE491F78C34E0C9104E496C8A625BA"><enum>(a)</enum><header>Grants</header>
<paragraph commented="no" id="ID6D111973A8F8488295E0DCC781C39D55"><enum>(1)</enum><header>In
general</header><text>From amounts appropriated under subsection (e) for a
fiscal year and subject to subsection (b), the Secretary shall award grants to
students in the same manner as the Secretary awards Federal Pell Grants to
students under section 401, except that—</text>
<subparagraph commented="no" id="IDB00304EB170A45B9BA38A1FE1E40BA99"><enum>(A)</enum><text>at the beginning
of each award year, the Secretary shall establish a maximum and minimum award
level based on amounts made available under subsection (e);</text>
</subparagraph><subparagraph commented="no" id="ID89A487D08D5F408BAE26518EF7972F20"><enum>(B)</enum><text>the Secretary
shall only award grants under this section to students eligible for a Federal
Pell Grant for the award year; and</text>
</subparagraph><subparagraph commented="no" id="IDD2E5B7E26E09405BADE7C6FE8C2AAB0D"><enum>(C)</enum><text>when determining
eligibility for the awards under this section, the Secretary shall consider
only those students who submitted a Free Application for Federal Student Aid or
other common reporting form under section 483 as of July 1 of the award year
for which the determination is made.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID5F8FF0E718DF47B485C60C8ABA468D66"><enum>(2)</enum><header>Students with
the greatest need</header><text>The Secretary shall ensure grants are awarded
under this section to students with the greatest need as determined in
accordance with section 471.</text>
</paragraph></subsection><subsection commented="no" id="ID07F9DEB2F8874AE1A3C848D96D5E1CBC"><enum>(b)</enum><header>Cost of
Attendance Limitation</header><text>A grant awarded under this section for an
award year shall be awarded in an amount that does not exceed—</text>
<paragraph commented="no" id="IDDFF449B362414EF583F4168BFD084802"><enum>(1)</enum><text>the student’s
cost of attendance for the award year; less</text>
</paragraph><paragraph commented="no" id="ID58AAAFAEF4B7483CAAF13CE9EF4CD592"><enum>(2)</enum><text>an amount equal
to the sum of—</text>
<subparagraph commented="no" id="id9504E6373D984A4095B268B549FA47A0"><enum>(A)</enum><text>the expected
family contribution for the student for the award year; and</text>
</subparagraph><subparagraph commented="no" id="idC772F8C3224444BEB6303634CCB7C6A1"><enum>(B)</enum><text>any Federal Pell
Grant award received by the student for the award year.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="ID9606D2FC6DB0495A977ACB9D1B064D60"><enum>(c)</enum><header>Supplement Not
Supplant</header><text>Grants awarded from funds made available under
subsection (e) shall be used to supplement, and not supplant, other Federal,
State, or institutional grant funds.</text>
</subsection><subsection commented="no" id="IDBAF53C590B0E4DBA9C10F02E92A16F16"><enum>(d)</enum><header>Use of Excess
Funds</header>
<paragraph commented="no" id="ID42C0A570C24146BEA5D08B4B031F0808"><enum>(1)</enum><header>Fifteen percent
or less</header><text>If, at the end of a fiscal year, the funds available for
making grant payments under this section exceed the amount necessary to make
the grant payments required under this section to eligible students by 15
percent or less, then all of the excess funds shall remain available for making
grant payments under this section during the next succeeding fiscal
year.</text>
</paragraph><paragraph commented="no" id="IDFC16E7BF696D449A976F431743768099"><enum>(2)</enum><header>More than
fifteen percent</header><text>If, at the end of a fiscal year, the funds
available for making grant payments under this section exceed the amount
necessary to make the grant payments required under this section to eligible
students by more than 15 percent, then all of such funds shall remain available
for making such grant payments but grant payments may be made under this
paragraph only with respect to awards for that fiscal year.</text>
</paragraph></subsection><subsection commented="no" id="ID65B7CB66256A4F8D80C86A00F48EC427"><enum>(e)</enum><header>Authorization
and appropriation of funds</header>
<paragraph commented="no" id="idC272919804794656939538F8E93F9A7F"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated, and there are
appropriated, out of any money in the Treasury not otherwise appropriated, for
the Department of Education to carry out this section—</text>
<subparagraph commented="no" id="IDE9CDF4664FB24933B36B26B96012F428"><enum>(A)</enum><text>$2,620,000,000
for fiscal year 2008;</text>
</subparagraph><subparagraph commented="no" id="ID7091EC103D8A422AAE5429A6916F727A"><enum>(B)</enum><text>$3,040,000,000
for fiscal year 2009;</text>
</subparagraph><subparagraph commented="no" id="IDB256BAF1EB4B45BF8584C4B2874AE334"><enum>(C)</enum><text>$3,460,000,000
for fiscal year 2010;</text>
</subparagraph><subparagraph commented="no" id="ID04781502B9F840919FB7AD1D9A8FA440"><enum>(D)</enum><text>$3,900,000,000
for fiscal year 2011;</text>
</subparagraph><subparagraph commented="no" id="idD8314A00D10A47108DDC10E2A64B8A93"><enum>(E)</enum><text>$4,020,000,000
for fiscal year 2012;</text>
</subparagraph><subparagraph id="ID2b33bcdc464b44a1a8c36cb54ba990a1"><enum>(F)</enum><text>$10,000,000 for
fiscal year 2013; and</text>
</subparagraph><subparagraph id="ID562e7f8b07e44e738e4206bc3846c256"><enum>(G)</enum><text>$3,200,000,000
for each of the fiscal years 2014 through 2017.</text>
</subparagraph></paragraph><paragraph id="id6A1324C15AD447B8882E539D7F99E98D"><enum>(2)</enum><header>Availability of
funds</header><text>Funds appropriated under paragraph (1) for a fiscal year
shall remain available through the last day of the fiscal year immediately
succeeding the fiscal year for which the funds are
appropriated.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idAE0AC77D9AC64D1EB886BB3B1CA49D75"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect on
July 1, 2008.</text>
</subsection></section><enum>II</enum><header>Student loan
benefits, terms, and conditions</header>
<section commented="no" display-inline="no-display-inline" id="idAD92088479E04DC382DD4D7760908676" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Deferments</header>
<subsection commented="no" display-inline="no-display-inline" id="id5F170EA57FEB49309BCDC99DDFF6858C"><enum>(a)</enum><header display-inline="yes-display-inline">FISL</header><text display-inline="yes-display-inline">Section 427(a)(2)(C)(iii) (20 U.S.C.
1077(a)(2)(C)(iii)) is amended by striking <quote>3 years</quote> and inserting
<quote>6 years</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6A85838EE00849C88C1981BCDF044CD4"><enum>(b)</enum><header display-inline="yes-display-inline">Interest subsidies</header><text display-inline="yes-display-inline">Section 428(b)(1)(M)(iv) (20 U.S.C.
1078(b)(1)(M)(iv)) is amended by striking <quote>3 years</quote> and inserting
<quote>6 years</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id0C34B6AA15D34F2D89419EE30583D541"><enum>(c)</enum><header display-inline="yes-display-inline">Direct loans</header><text display-inline="yes-display-inline">Section 455(f)(2)(D) (20 U.S.C.
1087e(f)(2)(D)) is amended by striking <quote>3 years</quote> and inserting
<quote>6 years</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3E5D0DD8A2154EF4820B42FD5510E880"><enum>(d)</enum><header display-inline="yes-display-inline">Perkins</header><text display-inline="yes-display-inline">Section 464(c)(2)(A)(iv) (20 U.S.C.
1087dd(c)(2)(A)(iv)) is amended by striking <quote>3 years</quote> and
inserting <quote>6 years</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD8B070CBA66B4D1DB142AB9CAD78BD11"><enum>(e)</enum><header>Effective date
and applicability</header><text>The amendments made by this section shall take
effect on July 1, 2008, and shall only apply with respect to the loans made to
a borrower of a loan under title IV of the Higher Education Act of 1965 who
obtained the borrower's first loan under such title prior to October 1,
2012.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id80BAC03EF37747E996F8DACC547AC484"><enum>202.</enum><header>Student loan
deferment for certain members of the Armed Forces</header>
<subsection commented="no" id="id9FE24B8E557E4E7594591FDE4371AC8E"><enum>(a)</enum><header>Federal Family
Education Loans</header><text display-inline="yes-display-inline">Section
428(b)(1)(M)(iii) (20 U.S.C. 1078(b)(1)(M)(iii)) is amended—</text>
<paragraph commented="no" id="idEF1F53B56C8E4A2FB18C9479342F8357"><enum>(1)</enum><text>in the matter
preceding subclause (I), by striking <quote>not in excess of 3
years</quote>;</text>
</paragraph><paragraph commented="no" id="id5DAA2E5B00EA4C4CB022CA5DA54E93A7"><enum>(2)</enum><text>in subclause
(II), by striking <quote>; or</quote> and inserting a comma; and</text>
</paragraph><paragraph commented="no" id="id02F359BAC7FE4939A4DB8988926ABD32"><enum>(3)</enum><text>by adding at the
end the following:</text>
<continuation-text commented="no" continuation-text-level="paragraph" indent="clause"><quote>and for the 180-day period following the
demobilization date for the service described in subclause (I) or (II);
or</quote>.</continuation-text></paragraph></subsection><subsection commented="no" id="id96D5D2CEF9AA448B83399E773866BCDD"><enum>(b)</enum><header>Direct
loans</header><text>Section 455(f)(2)(C) (20 U.S.C. 1087e(f)(2)(C)) is
amended—</text>
<paragraph commented="no" id="id9FB06D6C37564924BE4B2527737835E0"><enum>(1)</enum><text>in the matter
preceding clause (i), by striking <quote>not in excess of 3
years</quote>;</text>
</paragraph><paragraph commented="no" id="idC0CA8DF9EF8D45F38DE3D6FE0B9C8FA4"><enum>(2)</enum><text>in clause (ii),
by striking <quote>; or</quote> and inserting a comma; and</text>
</paragraph><paragraph commented="no" id="id83C36724BEE742A9804E40A9209BA477"><enum>(3)</enum><text>by adding at the
end the following:</text>
<continuation-text continuation-text-level="paragraph" indent="subparagraph"><quote>and for the 180-day period following the
demobilization date for the service described in clause (i) or (ii);
or</quote>.</continuation-text></paragraph></subsection><subsection commented="no" id="idCF2885F70E06447EA524AC5D064906A1"><enum>(c)</enum><header>Perkins
loans</header><text>Section 464(c)(2)(A)(iii) (20 U.S.C. 1087dd(c)(2)(A)(iii))
is amended—</text>
<paragraph commented="no" id="idB57D9BF73C6C48B08EAA991786B0C36D"><enum>(1)</enum><text>in the matter
preceding subclause (I), by striking <quote>not in excess of 3
years</quote>;</text>
</paragraph><paragraph commented="no" id="id23E8C1AC1B5C4F10BCF8E03001A9CCE3"><enum>(2)</enum><text>in subclause
(II), by striking the semicolon and inserting a comma; and</text>
</paragraph><paragraph commented="no" id="id2D58F4E5BE7A48079B2F59DF61FE22B2"><enum>(3)</enum><text>by adding at the
end the following:</text>
<continuation-text commented="no" continuation-text-level="paragraph" indent="subparagraph"><quote>and for the 180-day period following the
demobilization date for the service described in subclause (I) or
(II);</quote>.</continuation-text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idFC2CF208DFBC4979ADE445920BEECC06"><enum>(d)</enum><header>Applicability</header><text>Section
8007(f) of the Higher Education Reconciliation Act of 2005 (20 U.S.C. 1078
note) is amended by striking <quote>loans for which</quote> and all that
follows through the period at the end and inserting <quote>all loans under
title IV of the Higher Education Act of 1965.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id270A0553458745EFB9180A2A80E90F55"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
July 1, 2008.</text>
</subsection></section><section commented="no" id="idD14C5D2F77E7408585284CA91E646E16"><enum>203.</enum><header>Income-based
repayment plans</header>
<subsection commented="no" id="id1F5A797307184FE4AA4ECD135554D51B"><enum>(a)</enum><header>FFEL</header><text>Section
428 (as amended by sections 201(b) and 202(a)) (20 U.S.C. 1078) is further
amended—</text>
<paragraph commented="no" id="idECD69E27954A4AB0AA043089CAB06282"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph commented="no" id="id68E8E11804C74127861E38B347574E2D"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause commented="no" id="id75911B498B2A46CAB9C136F3D9578122"><enum>(i)</enum><text>in subparagraph
(D), by striking <quote>income contingent</quote> and inserting
<quote>income-based</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id590CA41EC00C48F2BF0603B9D50AA95A"><enum>(ii)</enum><text>in subparagraph
(E)(i), by striking <quote>income-sensitive</quote> and inserting
<quote>income-based</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" id="id53B9D0EBEC13460F9A06E001F39682B9"><enum>(B)</enum><text>by striking
clause (iii) of paragraph (9)(A) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idDE42D7F559E84206A0C134DC79B2FC28" style="OLC">
<clause commented="no" id="id67751C1F2E124D588D6EC41884B30A2D"><enum>(iii)</enum><text>an income-based
repayment plan, with parallel terms, conditions, and benefits as the
income-based repayment plan described in subsections (e) and (d)(1)(D) of
section 455, except that—</text>
<subclause commented="no" id="id15B80B5B65694153AAF6DAE89F2CA2D0"><enum>(I)</enum><text>the plan
described in this clause shall not be available to a borrower of an excepted
PLUS loan (as defined in section 455(e)(10)) or of a loan made under 428C that
includes an excepted PLUS loan;</text>
</subclause><subclause commented="no" id="id77AFD05E5D9F4A378F92EB0348629B0D"><enum>(II)</enum><text>in lieu of the
process of obtaining Federal income tax returns and information from the
Internal Revenue Service, as described in section 455(e)(1), the borrower shall
provide the lender with a copy of the Federal income tax return and return
information for the borrower (and, if applicable, the borrower's spouse) for
the purposes described in section 455(e)(1), and the lender shall determine the
repayment obligation on the loan, in accordance with the procedures developed
by the Secretary;</text>
</subclause><subclause commented="no" id="id3F2499968A2A4704A63490332A067314"><enum>(III)</enum><text>in lieu of the
requirements of section 455(e)(3), in the case of a borrower who chooses to
repay a loan made, insured, or guaranteed under this part pursuant to
income-based repayment and for whom the adjusted gross income is unavailable or
does not reasonably reflect the borrower's current income, the borrower shall
provide the lender with other documentation of income that the Secretary has
determined is satisfactory for similar borrowers of loans made under part
D;</text>
</subclause><subclause commented="no" id="idCA6E114479FB4216AADD8EFCA2EB094C"><enum>(IV)</enum><text>the Secretary
shall pay any interest due and not paid for under the repayment schedule
described in section 455(e)(4) for a loan made, insured, or guaranteed under
this part in the same manner as the Secretary pays any such interest under
section 455(e)(6) for a Federal Direct Stafford Loan;</text>
</subclause><subclause commented="no" id="id74EA839BF45640E79CFC20CDAE32291A"><enum>(V)</enum><text>the Secretary
shall assume the obligation to repay an outstanding balance of principal and
interest due on all loans made, insured, or guaranteed under this part (other
than an excepted PLUS Loan or a loan under section 428C that includes an
excepted PLUS loan), for a borrower who satisfies the requirements of
subparagraphs (A) and (B) of section 455(e)(7), in the same manner as the
Secretary cancels such outstanding balance under section 455(e)(7); and</text>
</subclause><subclause commented="no" id="idB88969CFC07E40E79C50AAA1E5D58CAD"><enum>(VI)</enum><text>in lieu of the
notification requirements under section 455(e)(8), the lender shall notify a
borrower of a loan made, insured, or guaranteed under this part who chooses to
repay such loan pursuant to income-based repayment of the terms and conditions
of such plan, in accordance with the procedures established by the Secretary,
including notification that—</text>
<item commented="no" id="id6C79535F7C564395A5B01256903427B0"><enum>(aa)</enum><text>the borrower
shall be responsible for providing the lender with the information necessary
for documentation of the borrower's income, including income information for
the borrower's spouse (as applicable); and</text>
</item><item commented="no" id="id31061D508FA94683A5A12A26B429AC3F"><enum>(bb)</enum><text>if the borrower
considers that special circumstances warrant an adjustment, as described in
section 455(e)(8)(B), the borrower may contact the lender, and the lender shall
determine whether such adjustment is appropriate, in accordance with the
criteria established by the Secretary;
and</text>
</item></subclause></clause><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="id16003D08F9C445F9BEC3BB0677979E7F"><enum>(2)</enum><text>in subsection
(e)—</text>
<subparagraph commented="no" id="id084AB4106E4249AF9F892216945FFD27"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">Income-sensitive</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">Income-based</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" id="idBE825ED2CD994C74B21F6A3902003E16"><enum>(B)</enum><text>in paragraph
(1)—</text>
<clause commented="no" id="idD43499F627E64CA1A448A1E50F069015"><enum>(i)</enum><text>by striking
<quote>income-sensitive repayment</quote> and inserting <quote>income-based
repayment</quote>; and</text>
</clause><clause commented="no" id="idD95CDA14F4E84082BB74EDF89FBB1F0F"><enum>(ii)</enum><text>by inserting
<quote>and for the public service loan forgiveness program under section
455(m), in accordance with section 428C(b)(5)</quote> before the semicolon;
and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEE37AEA6A9DC4DE09F242195F54CD337"><enum>(C)</enum><text>in paragraphs (2)
and (3), by striking <quote>income-sensitive</quote> each place the term occurs
and inserting <quote>income-based</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="id48E22EA7416B44A7B18058C01E9A8B96"><enum>(3)</enum><text>in subsection
(m)—</text>
<subparagraph commented="no" id="id5F22BD79755D45959AE8CC052D427CC4"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">Income Contingent</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">Income-Based</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" id="id2658C5F891A347509F4CCEB99B87BC6E"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>income contingent repayment plan</quote> and all that
follows through the period at the end and inserting <quote>income-based
repayment plan as described in subsection (b)(9)(A)(iii) and section
455(d)(1)(D).</quote>; and</text>
</subparagraph><subparagraph commented="no" id="id88F44873E5584BF0854C2C4EB14C0E4B"><enum>(C)</enum><text>in the paragraph
heading of paragraph (2), by striking <quote><header-in-text level="paragraph" style="OLC">income contingent</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">income-based</header-in-text></quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF269A8D306564FA9A0A1CF00DF70EE9C"><enum>(b)</enum><header>Consolidation
loans</header><text>Section 428C (20 U.S.C. 1078–3) is amended—</text>
<paragraph commented="no" id="idF20F6564B0D247C991E1BEEF25641B3E"><enum>(1)</enum><text>in subsection
(a)(3)(B)(i)(V), by striking <quote>for the purposes of obtaining an income
contingent repayment plan,</quote> and inserting <quote>for the purpose of
using the public service loan forgiveness program under section
455(m),</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idECA99A79E7B549DD86D3914E35CFD3E0"><enum>(2)</enum><text>in subsection
(b)(5)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id7E2014BC23E14E5383A79F2DC03DE2AF"><enum>(A)</enum><text>in the first
sentence, by striking <quote>, or is unable to obtain a consolidation loan with
income-sensitive repayment terms acceptable to the borrower from such a
lender,</quote> and inserting <quote>, or chooses to obtain a consolidation
loan for the purposes of using the public service loan forgiveness program
offered under section 455(m),</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF933B405CD834DF58949C120A955158A"><enum>(B)</enum><text>in the second
sentence, by striking <quote>income contingent repayment under part D of this
title</quote> and inserting <quote>income-based repayment</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="idF2727B6B745144C2AD6A552B8F09CE73"><enum>(3)</enum><text>in subsection
(c)—</text>
<subparagraph commented="no" id="id1F0080BEE188465491459C08B11406F4"><enum>(A)</enum><text>in paragraph
(2)(A)—</text>
<clause commented="no" id="id54006CBC69B7408FAE429A0A606A4BA9"><enum>(i)</enum><text>in the first
sentence, by striking <quote>of graduated or income-sensitive repayment
schedules, established by the lender in accordance with the regulations of the
Secretary.</quote> and inserting <quote>of graduated repayment schedules,
established by the lender in accordance with the regulations of the Secretary,
and income-based repayment schedules, established pursuant to regulations by
the Secretary.</quote>; and</text>
</clause><clause commented="no" id="idB1770798F5DA41339DE8AF86122B7A49"><enum>(ii)</enum><text>in the second
sentence, by striking <quote>Except as required</quote> and all that follows
through <quote>subsection (b)(5),</quote> and inserting <quote>Except as
required by such income-based repayment schedules,</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7C183CC94D4C4461964B638AA2CC5B9D"><enum>(B)</enum><text>in paragraph
(3)(B), by striking <quote>income contingent repayment offered by the Secretary
under subsection (b)(5)</quote> and inserting <quote>income-based
repayment</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idD4F282ED0E264D2CA80E3F7698E571C7"><enum>(c)</enum><header>Direct
loans</header><text display-inline="yes-display-inline">Section 455 (as amended
by sections 201(c) and 202(b)) (20 U.S.C. 1087e) is further amended—</text>
<paragraph commented="no" id="idC61B8BA76B9E4E24B41D7D7A9B5CAA1D"><enum>(1)</enum><text>in subsection
(d)—</text>
<subparagraph commented="no" id="idF97F33713C1F46B4A8AEEEEA11633F90"><enum>(A)</enum><text>in paragraph
(1)(D)—</text>
<clause commented="no" id="idE21965D36AB947CCA9F18B40E88BC3A2"><enum>(i)</enum><text>by striking
<quote>income contingent repayment plan</quote> and inserting
<quote>income-based repayment plan</quote>; and</text>
</clause><clause commented="no" id="idBD353D1D23574B15829A539117847160"><enum>(ii)</enum><text>by striking
<quote>a Federal Direct PLUS loan</quote> and inserting <quote>an excepted PLUS
loan or any Federal Direct Consolidation Loan that includes an excepted PLUS
loan (as defined in subsection (e)(10))</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" id="id903BEE93FC0A4D90B3CA937828E0D8A8"><enum>(B)</enum><text>in paragraph
(5)(B), by striking <quote>income contingent</quote> and inserting
<quote>income-based</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="idDD4877DA439343CF8865892E36DC3740"><enum>(2)</enum><text>in subsection
(e)—</text>
<subparagraph commented="no" id="id704E986747B348C5B6116A1BB2782C96"><enum>(A)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">Income Contingent</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">Income-based</header-in-text></quote>;</text>
</subparagraph><subparagraph commented="no" id="idEDE3EF5D6CEC4348A0382AFDFC13DA6E"><enum>(B)</enum><text>in paragraphs
(1), (2), and (3), by striking <quote>income contingent</quote> each place the
term appears and inserting <quote>income-based</quote>;</text>
</subparagraph><subparagraph commented="no" id="id37FD05A1DA034D73A5A7580911841710"><enum>(C)</enum><text>in paragraph
(4)—</text>
<clause commented="no" id="id9D44BB40F74B40C780B7319B6716BB0F"><enum>(i)</enum><text>by striking
<quote>Income contingent</quote> and inserting <quote>Income-based</quote>;
and</text>
</clause><clause commented="no" id="idF32EDE2673314B33863490E96BDAFB45"><enum>(ii)</enum><text>by striking
<quote>Secretary.</quote> and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="idA7DE4720CAFC47C1B6CC5616B36FF93B" style="OLC">
<text>Secretary, except that the monthly
required payment under such schedule shall not exceed 15 percent of the result
obtained by calculating the amount by which—</text><subparagraph commented="no" id="id0BA7012561054E5CADBE60D041A8AB5B"><enum>(A)</enum><text>the borrower's
adjusted gross income; exceeds</text>
</subparagraph><subparagraph commented="no" id="id8936F87D726E476FBEA58B999EF093BC"><enum>(B)</enum><text>150 percent of
the poverty line applicable to the borrower's family size, as determined under
section 673(2) of the Community Service Block Grant Act,</text>
<continuation-text continuation-text-level="subparagraph" indent="paragraph">divided by
12.</continuation-text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id82B22D57C02B433282E1C6EFF6F619F3"><enum>(D)</enum><text>in paragraph (5),
by striking <quote>income contingent</quote> and inserting
<quote>income-based</quote>;</text>
</subparagraph><subparagraph id="id5EA7A9465CEC487AB369B8BBF434D146"><enum>(E)</enum><text>by redesignating
paragraph (6) as paragraph (8);</text>
</subparagraph><subparagraph id="id7D7750109FDF4F7EAB05E33DD0CFEC48"><enum>(F)</enum><text>by inserting
after paragraph (5) the following:</text>
<quoted-block display-inline="no-display-inline" id="id9D310B92B744426B9C549E16D88B82CE" style="OLC">
<paragraph id="id6F9F96E087454F84B6E1D2C4475DA148"><enum>(6)</enum><header>Treatment of
interest</header><text>In the case of a Federal Direct Stafford Loan, any
interest due and not paid for under paragraph (2) shall be paid by the
Secretary.</text>
</paragraph><paragraph id="id606A19EA62E7494CB8056511066B13C4"><enum>(7)</enum><header>Loan
forgiveness</header><text>The Secretary shall cancel the obligation to repay an
outstanding balance of principal and interest due on all loans made under this
part, or assume the obligation to repay an outstanding balance of principal and
interest due on all loans made, insured, or guaranteed under part B, (other
than an excepted PLUS Loan, or any Federal Direct Consolidation Loan or loan
under section 428C that includes an excepted PLUS loan) to a borrower
who—</text>
<subparagraph id="id6B4E219F12624F20AA8DE2FB0AD028FB"><enum>(A)</enum><text>makes the
election under this subsection or under section 428(b)(9)(A)(iii); and</text>
</subparagraph><subparagraph id="id4832ACBD85624A9DA12037AF5A5B97B1"><enum>(B)</enum><text>for a period of
time prescribed by the Secretary not to exceed 25 years (including any period
during which the borrower is in deferment due to an economic hardship described
in section 435(o)), meets 1 of the following requirements with respect to each
payment made during such period:</text>
<clause id="idA6969C52766F4AC59BEBA4DCF6499B0D"><enum>(i)</enum><text>Has made the
payment under this subsection or section 428(b)(9)(A)(iii).</text>
</clause><clause id="id715C2958FACD4860A4651938C8398878"><enum>(ii)</enum><text>Has made the
payment under a standard repayment plan under section 428(b)(9)(A)(i) or
455(d)(1)(A).</text>
</clause><clause id="id4EA5BD48149F4E119D9A9D12DC08FF35"><enum>(iii)</enum><text>Has made a
payment that counted toward the maximum repayment period under income-sensitive
repayment under section 428(b)(9)(A)(iii) or income contingent repayment under
section 455(d)(1)(D), as each such section was in effect on June 30,
2008.</text>
</clause><clause id="id5C7C0BE896014CEFB8797FF42118D391"><enum>(iv)</enum><text>Has made a
reduced payment of not less than the amount required under subsection (e),
pursuant to a forbearance agreement under section 428(c)(3)(A)(i) for a
borrower described in
428(c)(3)(A)(i)(II).</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idB726D3293D71477C9ED905EEEDECF7B2"><enum>(G)</enum><text>in the matter
preceding subparagraph (A) of paragraph (8) (as redesignated by subparagraph
(E)), by striking <quote>income contingent</quote> and inserting
<quote>income-based</quote>; and</text>
</subparagraph><subparagraph id="id9FC3F20E05784D2D97B0FD8CACE204D9"><enum>(H)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6C4C3D279846493E9B25E7E566B4605E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idE02D331569CD4E268BE8654A8B1105C3"><enum>(9)</enum><header display-inline="yes-display-inline">Return to standard repayment</header><text display-inline="yes-display-inline">A borrower who is repaying a loan made
under this part pursuant to income-based repayment may choose, at any time, to
terminate repayment pursuant to income-based repayment and repay such loan
under the standard repayment plan.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id24F58AE676C34D38AE181BAAD34EF644"><enum>(10)</enum><header>Definition of
excepted PLUS loan</header><text>In this subsection, the term <term>excepted
PLUS loan</term> means a Federal Direct PLUS loan or a loan under section 428B
that is made, insured, or guaranteed on behalf of a dependent
student.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" id="idF1E5BB86ACFF46F9993B3FC50CFC4949"><enum>(d)</enum><header>Conforming
amendments and technical corrections</header><text>The Act (20 U.S.C. 1001 et
seq.) is further amended—</text>
<paragraph commented="no" id="id82BD41F838B54A4AACB4A8F50A62120C"><enum>(1)</enum><text>in section
427(a)(2)(H) (20 U.S.C. 1077(a)(2)(H))—</text>
<subparagraph commented="no" id="idC8D65C09082A44589AE0F4CBB709AF15"><enum>(A)</enum><text>by striking
<quote>or income-sensitive</quote>; and</text>
</subparagraph><subparagraph commented="no" id="id82BAA4FE35DA484DA9A9076A8B6E3552"><enum>(B)</enum><text>by inserting
<quote>or income-based repayment schedule established pursuant to regulations
by the Secretary</quote> before the semicolon at the end; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC3FB0848775D4CFDA1F14F0188879C75"><enum>(2)</enum><text display-inline="yes-display-inline">in section 455(d)(1)(C) (20 U.S.C.
1087e(d)(1)(C)), by striking <quote>428(b)(9)(A)(v)</quote> and inserting
<quote>428(b)(9)(A)(iv)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE557B14ACE8943518C9C41B0034056D5"><enum>(e)</enum><header>Transition
provision</header><text>A student who, as of June 30, 2008, elects to repay a
loan under part B or part D of the Higher Education Act of 1965 (20 U.S.C. 1071
et seq., 1087a et seq.) through an income-sensitive repayment plan under
section 428(b)(9)(A)(iii) of such Act (20 U.S.C. 1078(b)(9)(A)(iii)) or an
income contingent repayment plan under section 455(d)(1)(D) of such Act (20
U.S.C. 1087e(d)(1)(D)) (as each such section was in effect on the day before
the date of enactment of this Act) shall have the option to continue repayment
under such section (as such section was in effect on such day), or may elect,
beginning on July 1, 2008, to use the income-based repayment plan under section
428(b)(9)(A)(iii) or 455(d)(1)(D) (as applicable) of the Higher Education Act
of 1965, as amended by this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idBB5B1C6971AD4F6BB2071E1881C2BF96"><enum>(f)</enum><header>Effective date
and applicability</header><text>The amendments made by this section shall take
effect on July 1, 2008, and shall only apply with respect to a borrower of a
loan under title IV of the Higher Education Act of 1965 who obtained the
borrower's first loan under such title prior to October 1, 2012.</text>
</subsection></section><enum>III</enum><header>Federal family
education loan program</header>
<section commented="no" id="H4F58E833C36C41BCB6D4BEF1B9869D9"><enum>301.</enum><header>Reduction of
lender insurance percentage</header>
<subsection commented="no" id="H914632D970744654845B092CCE3566F1"><enum>(a)</enum><header>Amendment</header><text>Section
428(b)(1)(G) (20 U.S.C. 1078(b)(1)(G)) is amended—</text>
<paragraph commented="no" id="id0BE6D5566B6440E6871BBF11EEC550FB"><enum>(1)</enum><text>in the matter
preceding clause (i), by striking <quote>insures 98 percent</quote> and
inserting <quote>insures 97 percent</quote>;</text>
</paragraph><paragraph commented="no" id="id3648842C769E4B94AEC0BE6370952DB6"><enum>(2)</enum><text>in clause (i), by
inserting <quote>and</quote> after the semicolon;</text>
</paragraph><paragraph commented="no" id="id738F0850A2F84447AFD72DFF3936473F"><enum>(3)</enum><text>by striking
clause (ii); and</text>
</paragraph><paragraph commented="no" id="id430B98081DFF44B88A40B767BB8DB46D"><enum>(4)</enum><text>by redesignating
clause (iii) as clause (ii).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA5C7141B2A7248A083A3A086956068DF"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect with
respect to loans made on or after October 1, 2007.</text>
</subsection></section><section commented="no" id="H38813425D7B34821A2F8557C397BF189"><enum>302.</enum><header>Guaranty agency
collection retention</header><text display-inline="no-display-inline">Clause
(ii) of section 428(c)(6)(A) (20 U.S.C. 1078(c)(6)(A)(ii)) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H6AE4CB6624F240279B86F8D1EC599F51" style="OLC">
<clause commented="no" id="HF49F249A086749D28B79C7DEC35F16E4" indent="up1"><enum>(ii)</enum><text>an amount equal to 24 percent of
such payments for use in accordance with section 422B, except that—</text>
<subclause commented="no" id="H0BF8D2D537B54DCE84AD24000028EBF1"><enum>(I)</enum><text>beginning October 1, 2003 and ending
September 30, 2007, this subparagraph shall be applied by substituting
<quote>23 percent</quote> for <quote>24 percent</quote>; and</text>
</subclause><subclause commented="no" id="H88915B9C90DC4BA895234FAA6585358F"><enum>(II)</enum><text>beginning October 1, 2007, this
subparagraph shall be applied by substituting <quote>16 percent</quote> for
<quote>24
percent</quote>.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idAC4F3E773DE54E4382BE13C7FDACAB1A"><enum>303.</enum><header>Elimination of
exceptional performer status for lenders</header>
<subsection commented="no" id="ID0797b47722bd4d5790e63654798e92a6"><enum>(a)</enum><header>Elimination of
status</header><text>Part B of title IV (20 U.S.C. 1071 et seq.) is amended by
striking section 428I (20 U.S.C. 1078–9).</text>
</subsection><subsection commented="no" id="ID28e930f7f53a413392ab2f96b9462315"><enum>(b)</enum><header>Conforming
amendments</header><text>Part B of title IV is further amended—</text>
<paragraph commented="no" id="IDbf562218e0f0487eaa65664b8843b9aa"><enum>(1)</enum><text>in section
428(c)(1) (20 U.S.C. 1078(c)(1))—</text>
<subparagraph commented="no" id="ID24087543317d4d6a8f97c14c28c0ce0b"><enum>(A)</enum><text>by striking
subparagraph (D); and</text>
</subparagraph><subparagraph commented="no" id="ID831205daeb074b56afaa8d1e41af7af0"><enum>(B)</enum><text>by redesignating
subparagraphs (E) through (H) as subparagraphs (D) through (G), respectively;
and</text>
</subparagraph></paragraph><paragraph commented="no" id="ID64105e87a09843f5a7d968196d49daab"><enum>(2)</enum><text>in section
438(b)(5) (20 U.S.C. 1087–1(b)(5)), by striking the matter following
subparagraph (B).</text>
</paragraph></subsection><subsection commented="no" id="IDa1267ab063a047058fad2a1463b8b674"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by subsections (a) and (b) shall take
effect on October 1, 2007, except that section 428I of the Higher Education Act
of 1965 (as in effect on the day before the date of enactment of this Act)
shall apply to eligible lenders that received a designation under subsection
(a) of such section prior to October 1, 2007, for the remainder of the year for
which the designation was made.</text>
</subsection></section><section id="ID41F97385B9F64319B6454DCDE81D5968"><enum>304.</enum><header>Definitions</header>
<subsection id="id88AC7AEA2DEB4F6F87BE33E12419813D"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 435 (20 U.S.C. 1085) is
amended—</text>
<paragraph id="idBF3E120463D24233A3B149BBB99A6684"><enum>(1)</enum><text>in subsection
(o)(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD886E7004F0F442E979DBD1A87AE435F"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)(ii), by striking
<quote>100 percent of the poverty line for a family of 2</quote> and inserting
<quote>150 percent of the poverty line applicable to the borrower's family
size</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCEBB454338B84C039349690263F97522"><enum>(B)</enum><text>in subparagraph
(B)(ii), by striking <quote>to a family of two</quote> and inserting <quote>to
the borrower's family size</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id015B6A575B114A68B116D25E13CE024D"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idF9FB1822BC7642BFAF36B3C884B0843E" style="OLC">
<subsection id="idFC3BA08BCC434A819155E6A121384295"><enum>(p)</enum><header>Eligible
not-for-profit holder</header>
<paragraph id="ID3177cab6d89043e4b03ec5dd40b6e09f"><enum>(1)</enum><header>Definition of
eligible not-for-profit holder</header><text>The term <term>eligible
not-for-profit holder</term> means an eligible lender under subsection (d)
(except for an eligible lender described in subsection (d)(1)(E)) that requests
a special allowance payment under section 438(b)(2)(I)(vi)(II) and that
is—</text>
<subparagraph commented="no" id="id3F71F4782346433ABAD40760C7E44A70"><enum>(A)</enum><text>a State of the
United States, or a political subdivision thereof, or an authority, agency, or
other instrumentality thereof (including such entities that are eligible to
issue bonds described in section 1.103–1 of title 26, Code of Federal
Regulations, or section 144(b) of the Internal Revenue Code of 1986);</text>
</subparagraph><subparagraph id="IDa7fccb84388c46e18714cf6329b4c61a"><enum>(B)</enum><text>an entity
described in section 150(d)(2) of such Code that has not made the election
described in section 150(d)(3) of such Code;</text>
</subparagraph><subparagraph id="ID063a9f131c934203884feab652f76bdf"><enum>(C)</enum><text>an entity
described in section 501(c)(3) of such Code; or</text>
</subparagraph><subparagraph id="id8769BD02DEB243049C908B1779842CED"><enum>(D)</enum><text>a trustee acting
as an eligible lender on behalf of an entity described in subparagraph (A),
(B), or (C),</text>
</subparagraph><continuation-text continuation-text-level="paragraph">except
that no entity described in subparagraph (A), (B), or (C) shall be owned or
controlled in whole or in part by a for-profit entity.</continuation-text></paragraph><paragraph id="ID11e3138804cc435593de200b76656ff4"><enum>(2)</enum><header>Prohibition</header><text>In
the case of a loan for which the special allowance payment is calculated under
section 438(b)(2)(I)(vi)(II) and that is sold by the eligible not-for-profit
holder holding the loan to a for-profit entity or to an entity that is not an
eligible not-for-profit holder, the special allowance payment for such loan
shall, beginning on the date of the sale, no longer be calculated under section
438(b)(2)(I)(vi)(II) and shall be calculated under section 438(b)(2)(I)(vi)(I)
instead.</text>
</paragraph><paragraph id="idF1573E63B6BC4BB0BEF609DB370A74F7"><enum>(3)</enum><header>Regulations</header><text>Not
later than 1 year after the date of enactment of the
<short-title>Higher Education Access Act of
2007</short-title>, the Secretary shall promulgate regulations in accordance
with the provisions of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF7EB6E16B839485B9E5F08199011D792"><enum>(b)</enum><header>Applicability</header><text>The
amendment made by subsection (a)(1) shall only apply with respect to any
borrower of a loan under title IV of the Higher Education Act of 1965 who
obtained the borrower's first loan under such title prior to October 1,
2012.</text>
</subsection></section><section id="IDFD267BF7AD9743009B4AD47C9B4B742B"><enum>305.</enum><header>Special
allowances</header>
<subsection commented="no" display-inline="no-display-inline" id="id3EC71A01394B4875AB9E8009CBEF337A"><enum>(a)</enum><header>Reduction of
lender special allowance payments</header><text display-inline="yes-display-inline">Section 438(b)(2)(I) (20 U.S.C.
1087–1(b)(2)(I)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idE2D8FADE79EC4177BB043751E782A959"><enum>(1)</enum><text>in clause (i), by
striking <quote>(iii), and (iv)</quote> and inserting <quote>(iii), (iv), and
(vi)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id27B3A72445FA4CA6BA67B06F56282A2C"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id496A8071366349DBAD214B94EE13EDA7" style="OLC">
<clause commented="no" id="id24D7D98A96A84182A6D1ADA7B1079C66"><enum>(vi)</enum><header>Reduction for
loans disbursed on or after October 1, 2007</header><text>With respect to a
loan on which the applicable interest rate is determined under section 427A(l)
and for which the first disbursement of principal is made on or after October
1, 2007, the special allowance payment computed pursuant to this subparagraph
shall be computed—</text>
<subclause commented="no" id="idAEFC6CCEF26948CBB60378B1277A6518"><enum>(I)</enum><text>for loans held by
an eligible lender not described in subclause (II)—</text>
<item commented="no" id="id05973BD1A49F4C6D83C72AA226674F83"><enum>(aa)</enum><text>by substituting
<quote>1.24 percent</quote> for <quote>1.74 percent</quote> in clause
(ii);</text>
</item><item commented="no" id="id248AC964B82547E6A5EC158A925FC146"><enum>(bb)</enum><text>by substituting
<quote>1.84 percent</quote> for <quote>2.34 percent</quote> each place the term
appears in this subparagraph;</text>
</item><item commented="no" id="id84A2D7B12D314FF39835C4C594311A1E"><enum>(cc)</enum><text>by substituting
<quote>1.84 percent</quote> for <quote>2.64 percent</quote> in clause (iii);
and</text>
</item><item commented="no" id="idC58479F0AF544FD8ABB3ACD1329FA97B"><enum>(dd)</enum><text>by substituting
<quote>2.14 percent</quote> for <quote>2.64 percent</quote> in clause (iv);
and</text>
</item></subclause><subclause commented="no" id="ID670fe7bad41343fdba03f41f33af27f0"><enum>(II)</enum><text>for loans held
by an eligible not-for-profit holder—</text>
<item commented="no" id="IDeb0c1061a9d34b238a89986a06e4e05e"><enum>(aa)</enum><text>by substituting
<quote>1.99 percent</quote> for <quote>2.34 percent</quote> each place the term
appears in this subparagraph;</text>
</item><item commented="no" id="ID754384843b4040bdadb75005fa647986"><enum>(bb)</enum><text>by substituting
<quote>1.39 percent</quote> for <quote>1.74 percent</quote> in clause
(ii);</text>
</item><item commented="no" id="id797CC34905D1405EBD74F8E4033CE63B"><enum>(cc)</enum><text>by substituting
<quote>1.99 percent</quote> for <quote>2.64 percent</quote> in clause (iii);
and</text>
</item><item commented="no" id="idD2D0DE416BCB44D0896043AE2D211C6B"><enum>(dd)</enum><text>by substituting
<quote>2.29 percent</quote> for <quote>2.64 percent</quote> in clause
(iv).</text>
</item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idFC43B0F2B994458BBBB7731D9FD61AF9"><enum>(b)</enum><header>Increased loan
fees from lenders</header><text display-inline="yes-display-inline">Paragraph
(2) of section 438(d) (20 U.S.C. 1087–1(d)(2)) is amended to read as
follows:</text>
<quoted-block id="idA22B27B495D14FBAB430B6DDF50C8A18">
<paragraph commented="no" id="id835FAF5746B54E139283D7938709674A"><enum>(2)</enum><header>Amount of loan
fees</header><text>The amount of the loan fee which shall be deducted under
paragraph (1), but which may not be collected from the borrower, shall be equal
to 1.0 percent of the principal amount of the loan with respect to any loan
under this part for which the first disbursement was made on or after October
1,
2007.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>IV</enum><header>William D. Ford
Federal direct loan program</header>
<section commented="no" display-inline="no-display-inline" id="idA4C74A0C097140108F89B36622DCF0A7" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Loan forgiveness for public service
employees</header><text display-inline="no-display-inline">Section 455 (as
amended by sections 201(c), 202(b), and 203(c)) (20 U.S.C. 1087e) is further
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idFD3D202BD70948948E4278B086B5D25A" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id28DCF79C7AF54CA79F576564DBE7EA1E"><enum>(m)</enum><header display-inline="yes-display-inline">Repayment plan for public service
employees</header>
<paragraph commented="no" display-inline="no-display-inline" id="id2DAC2587791C44678F9824B14A2531AF"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Secretary shall cancel the balance of
interest and principal due, in accordance with paragraph (2), on any eligible
Federal Direct Loan not in default for an eligible borrower who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB16B02312E764A70ACBF1F7CCB9F4BE2"><enum>(A)</enum><text display-inline="yes-display-inline">has made 120 monthly payments on the
Federal Direct Loan after October 1, 2007, pursuant to any combination
of—</text>
<clause commented="no" display-inline="no-display-inline" id="idE9FB4EC8AA8046D3A50A97CD9FE608E0"><enum>(i)</enum><text display-inline="yes-display-inline">payments under an income-based repayment
plan under section 455(d)(1)(D);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id92CF4DD8107D4DA3A8EF0203A21105FF"><enum>(ii)</enum><text>payments under a
standard repayment plan under section 455(d)(1)(A); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id091DAB5BBDA247B69A26FD590766B337"><enum>(iii)</enum><text>monthly
payments under a repayment plan under section 455(d)(1) of not less than the
monthly amount calculated under section 455(d)(1)(A); and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE9B36B3899FB4B688D19B25B07018DCD"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id14EC69BF38E34C75A0DC7B0284DD9215"><enum>(i)</enum><text display-inline="yes-display-inline">is employed in a public service job at the
time of such forgiveness; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idCC1678212FC740CE80168E12B17FFAD7" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">has been employed in a public service job
during the period in which the borrower makes each of the 120 payments
described in subparagraph (A).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id711B2A9819844F04ABC084AE543FCDD3"><enum>(2)</enum><header>Loan
cancellation amount</header><text>After the conclusion of the employment period
described in paragraph (1), the Secretary shall cancel the obligation to repay,
for each year during such period described in paragraph (1)(B)(ii) for which
the eligible borrower submits documentation to the Secretary that the
borrower's annual adjusted gross income or annual earnings were less than or
equal to $65,000, <fraction>1/10</fraction> of the amount of the balance of
principal and interest due as of the time of such cancellation, on the eligible
Federal Direct Loans made to the borrower under this part.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6B3370786A164036BAD31BC7E9C25DCA"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text>In this
subsection:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idF753AA8BF0D6409298496F5AFECAC0FB"><enum>(A)</enum><header display-inline="yes-display-inline">Eligible borrower</header><text>The term
<term>eligible borrower</term> means a borrower who submits documentation to
the Secretary that the borrower's annual adjusted gross income or annual
earnings is less than or equal to $65,000.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8AF60294B69D461ABD56BCE33EB3E932"><enum>(B)</enum><header>Eligible
Federal Direct Loan</header><text>The term <term>eligible Federal Direct
Loan</term> means a Federal Direct Stafford Loan, Federal Direct PLUS Loan,
Federal Direct Unsubsidized Loan, or a Federal Direct Consolidation Loan if
such consolidation loan was obtained by the borrower under section 428C(b)(5)
or in accordance with section 428C(a)(3)(B)(i)(V).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD063FA8C696F4439941F4E65D81F80B9"><enum>(C)</enum><header display-inline="yes-display-inline">Public service job</header><text display-inline="yes-display-inline">In this paragraph, the term <term>public
service job</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="id10A8A4537A564F8FB1FFCEB274D97695"><enum>(i)</enum><text display-inline="yes-display-inline">a full-time job in public emergency
management, government, public safety, public law enforcement, public health,
public education, public early childhood education, public child care, social
work in a public child or family service agency, public services for
individuals with disabilities, public services for the elderly, public interest
legal services (including prosecution or public defense), public library
sciences, public school library sciences, or other public school-based
services; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id939C8A6D51C34A09A51A543813B1F131"><enum>(ii)</enum><text display-inline="yes-display-inline">teaching as a full-time faculty member at a
Tribal College or University as defined in section
316(b).</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="id387957490F704D83A2BEE63EAEDAA0E7"><enum>402.</enum><header>Unit cost
calculation for guaranty agency account maintenance fees</header><text display-inline="no-display-inline">Section 458(b) (20 U.S.C. 1087h(b)) is
amended—</text>
<paragraph commented="no" id="ID50c0b59d543944ff8fa251b8719bfc77"><enum>(1)</enum><text>by striking
<quote>Account</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id683ACF42F05E4CA0A9F2456EACD38D7E" style="OLC">
<paragraph commented="no" id="idE450040F7AE14B3AA1E190A691363A92"><enum>(1)</enum><header>For fiscal
years 2006 and 2007</header><text>For each of the fiscal years 2006 and 2007,
account</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="IDd0ef002a1f494d049f46f5837de45517"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB1DECB6F2E0B4663A6BE283DD394E65A" style="OLC">
<paragraph commented="no" id="IDd06acab06a87414cac18d0fefcdf193b"><enum>(2)</enum><header>For fiscal year
2008 and succeeding fiscal years</header>
<subparagraph commented="no" id="id63BCB33C043F45B8A7D34C87A59C997C"><enum>(A)</enum><header>In
general</header><text>For fiscal year 2008 and each succeeding fiscal year, the
Secretary shall calculate the account maintenance fees payable to guaranty
agencies under subsection (a)(3), on a per-loan cost basis in accordance with
subparagraph (B).</text>
</subparagraph><subparagraph commented="no" id="id3AC677FB91DE4343BFB784DF594A73FA"><enum>(B)</enum><header>Amount
determination</header><text>To determine the amount that shall be paid under
subsection (a)(3) per outstanding loan guaranteed by a guaranty agency for
fiscal year 2008 and succeeding fiscal years, the Secretary shall—</text>
<clause commented="no" id="id27618A74E7F746078FE18E8D57ECA05A"><enum>(i)</enum><text>establish the
per-loan cost basis amount by dividing the total amount of account maintenance
fees paid under subsection (a)(3) for fiscal year 2006 by the number of loans
under part B that were outstanding for that fiscal year; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idB103B6088DCD43A9B78A3567729822AC"><enum>(ii)</enum><text>for subsequent
fiscal years, adjust the amount determined under clause (i) as the Secretary
determines necessary to account for
inflation.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>V</enum><header>Federal Perkins
Loans</header>
<section id="id86ECF8434ABD4810AA09CED223B5D238"><enum>501.</enum><header>Distribution
of late collections</header><text display-inline="no-display-inline">Section
466(b) (20 U.S.C. 1087ff(b)) is amended by striking <quote>March 31,
2012</quote> and inserting <quote>September 30, 2012</quote>.</text>
</section><enum>VI</enum><header>Need
analysis</header>
<section commented="no" display-inline="no-display-inline" id="ID3563B0650E7347E2BA3B4B3C3F2665ED" section-type="subsequent-section"><enum>601.</enum><header display-inline="yes-display-inline">Support for working students</header>
<subsection commented="no" display-inline="no-display-inline" id="ID82009475420B434C8AD80D78C9EB3F4A"><enum>(a)</enum><header display-inline="yes-display-inline">Dependent Students</header><text display-inline="yes-display-inline">Subparagraph (D) of section 475(g)(2) (20
U.S.C. 1087oo(g)(2)(D)) is amended to read as follows:</text>
<quoted-block act-name="Higher Education Act of 1965" display-inline="no-display-inline" id="ID7CF5140C481F478EBA6237FB57BE4696" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="IDDB1B5BA98A854D6F9F4D67C3944495AC"><enum>(D)</enum><text>an income
protection allowance of the following amount (or a successor amount prescribed
by the Secretary under section 478):</text>
<clause commented="no" display-inline="no-display-inline" id="id1000EEA851704161983C035997C8A5C2"><enum>(i)</enum><text display-inline="yes-display-inline">for academic year 2009–2010, $3,750;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idDF4E79A41F404CDBB292AF4AECD0A9E4"><enum>(ii)</enum><text display-inline="yes-display-inline">for academic year 2010–2011, $4,500;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7F3ACE48F69642159E150CE5E96EA6B3"><enum>(iii)</enum><text display-inline="yes-display-inline">for academic year 2011–2012, $5,250;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idE8358DF3AC0F4F109AB9DED6077F6E23"><enum>(iv)</enum><text display-inline="yes-display-inline">for academic year 2012–2013,
$6,000;</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID963FC0C5A6744BEC8B3E108609C620D9"><enum>(b)</enum><header display-inline="yes-display-inline">Independent Students Without Dependents
Other Than a Spouse</header><text display-inline="yes-display-inline">Clause
(iv) of section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended to read
as follows:</text>
<quoted-block act-name="Higher Education Act of 1965" display-inline="no-display-inline" id="IDBE8D4AE866904726AF55EF4503E7CF4C" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="ID4E8A8B5A49E144D792611A77F3A6A7FC"><enum>(iv)</enum><text display-inline="yes-display-inline">an income protection allowance of the
following amount (or a successor amount prescribed by the Secretary under
section 478):</text>
<subclause commented="no" display-inline="no-display-inline" id="ID6EE20A1FD5244985B4920DB4FE1AEDD3"><enum>(I)</enum><text display-inline="yes-display-inline">for single or separated students, or
married students where both are enrolled pursuant to subsection (a)(2)—</text>
<item commented="no" display-inline="no-display-inline" id="id46898BF6808A4407B403AA4163E3DD82"><enum>(aa)</enum><text display-inline="yes-display-inline">for academic year 2009–2010, $7,000;</text>
</item><item commented="no" display-inline="no-display-inline" id="idD893922AD1D14758A858035847F6EE6E"><enum>(bb)</enum><text display-inline="yes-display-inline">for academic year 2010–2011, $7,780;</text>
</item><item commented="no" display-inline="no-display-inline" id="idCE861B3D438D4731BB3581700A72BAC3"><enum>(cc)</enum><text display-inline="yes-display-inline">for academic year 2011–2012, $8,550;
and</text>
</item><item commented="no" display-inline="no-display-inline" id="id31E5BEC3C60C4106B019A9C180706958"><enum>(dd)</enum><text display-inline="yes-display-inline">for academic year 2012–2013, $9,330;
and</text>
</item></subclause><subclause commented="no" display-inline="no-display-inline" id="ID738725BB5D3741E48DBCE1458AA558C5"><enum>(II)</enum><text display-inline="yes-display-inline">for married students where 1 is enrolled
pursuant to subsection (a)(2)—</text>
<item commented="no" display-inline="no-display-inline" id="idFE4C1F75717948DAA93CD86F0A6671AD"><enum>(aa)</enum><text display-inline="yes-display-inline">for academic year 2009–2010,
$11,220;</text>
</item><item commented="no" display-inline="no-display-inline" id="id36B8FF0929EE4CBB8E251FD165FDF69D"><enum>(bb)</enum><text display-inline="yes-display-inline">for academic year 2010–2011,
$12,460;</text>
</item><item commented="no" display-inline="no-display-inline" id="id7EA7812B895244A9914B9DC9F6FD951B"><enum>(cc)</enum><text display-inline="yes-display-inline">for academic year 2011–2012, $13,710;
and</text>
</item><item commented="no" display-inline="no-display-inline" id="id7EFFCF96B27E421ABA9375FB573151CF"><enum>(dd)</enum><text display-inline="yes-display-inline">for academic year 2012–2013,
$14,960;</text>
</item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDB7A5DF7182C04D17B7EE9372310C0BFA"><enum>(c)</enum><header display-inline="yes-display-inline">Independent Students With Dependents Other
Than a Spouse</header><text display-inline="yes-display-inline">Paragraph (4)
of section 477(b) (20 U.S.C. 1087qq(b)(4)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idCAD4DFB8BAFB45B682882758C917C6B6" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="IDB2ED97E99ABB4FDEAB49CE9BBC4CE23B"><enum>(4)</enum><header display-inline="yes-display-inline">Income protection allowance</header><text display-inline="yes-display-inline">The income protection allowance is
determined by the tables described in subparagraphs (A) through (D) (or a
successor table prescribed by the Secretary under section 478).</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id36EE4072B4A54EC7A7012C6C3420546D"><enum>(A)</enum><header>Academic year
2009–2010</header><text>For academic year 2009–2010, the income protection
allowance is determined by the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="1" rule-weights="4.4.4.4.4.0" table-template-name="Generic: 1 text, 5 num" table-type="">
<ttitle>Income Protection Allowance</ttitle>
<tgroup cols="6" fnote-size="8" grid-typeface="1.1" rowsep="1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="fig" colname="column1" colwidth="92.25pt" min-data-value="10"></colspec><colspec coldef="fig" colname="column2" colwidth="76.25pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column3" colwidth="72.75pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column4" colwidth="73.50pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column5" colwidth="72.00pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column6" colwidth="74.25pt" min-data-value="7"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="1" namest="column1">Family Size</entry><entry align="center" colname="column2" morerows="0" nameend="column6" namest="column2">Number in College</entry>
</row>
<row><entry align="center" colname="column2" morerows="0" namest="column2">1</entry><entry align="center" colname="column3" morerows="0" namest="column3">2</entry><entry align="center" colname="column4" morerows="0" namest="column4">3</entry><entry align="center" colname="column5" morerows="0" namest="column5">4</entry><entry align="center" colname="column6" morerows="0" namest="column6">5</entry>
</row>
</thead><tfoot>
<row><entry nameend="column6" namest="column1">NOTE: For each
additional family member, add $4,240.<linebreak></linebreak>For each additional college
student, subtract $3,020.</entry>
</row></tfoot>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">2</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$17,720</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">$14,690</entry><entry colname="column4" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">3</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">22,060</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">19,050</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">$16,020</entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">4</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">27,250</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">24,220</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">21,210</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">$18,170</entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">5</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">32,150</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">29,120</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">26,100</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">23,070</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="0">$20,060</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="1" stub-definition="txt-ldr">6</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="1">37,600</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="1">34,570</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="1">31,570</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="1">28,520</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="1">25,520</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC194E135B6B84790A45F3379D61BEE1D"><enum>(B)</enum><header>Academic year
2010–2011</header><text>For academic year 2010–2011, the income protection
allowance is determined by the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="1" rule-weights="4.4.4.4.4.0" table-template-name="Generic: 1 text, 5 num" table-type="">
<ttitle>Income Protection Allowance</ttitle>
<tgroup cols="6" fnote-size="8" grid-typeface="1.1" rowsep="1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="fig" colname="column1" colwidth="90.00pt" min-data-value="10"></colspec><colspec coldef="fig" colname="column2" colwidth="79.25pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column3" colwidth="69.00pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column4" colwidth="75.00pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column5" colwidth="77.25pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column6" colwidth="70.50pt" min-data-value="7"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="1" namest="column1">Family Size</entry><entry align="center" colname="column2" morerows="0" nameend="column6" namest="column2">Number in College</entry>
</row>
<row><entry align="center" colname="column2" morerows="0" namest="column2">1</entry><entry align="center" colname="column3" morerows="0" namest="column3">2</entry><entry align="center" colname="column4" morerows="0" namest="column4">3</entry><entry align="center" colname="column5" morerows="0" namest="column5">4</entry><entry align="center" colname="column6" morerows="0" namest="column6">5</entry>
</row>
</thead><tfoot>
<row><entry nameend="column6" namest="column1">NOTE: For each
additional family member, add $4,710.<linebreak></linebreak>For each additional college
student, subtract $3,350.</entry>
</row></tfoot>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">2</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$19,690</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">$16,330</entry><entry colname="column4" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">3</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">24,510</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">21,160</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">$17,800</entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">4</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">30,280</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">26,910</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">23,560</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">$20,190</entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">5</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">35,730</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">32,350</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">29,000</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">25,640</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="0">$22,290</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="1" stub-definition="txt-ldr">6</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="1">41,780</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="1">38,410</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="1">35,080</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="1">31,690</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="1">28,350</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2F6DB832DCED4F26AD3CF2BE64190922"><enum>(C)</enum><header>Academic year
2011–2012</header><text>For academic year 2011–2012, the income protection
allowance is determined by the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="1" rule-weights="4.4.4.4.4.0" table-template-name="Generic: 1 text, 5 num" table-type="">
<ttitle>Income Protection Allowance</ttitle>
<tgroup cols="6" fnote-size="8" grid-typeface="1.1" rowsep="1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="fig" colname="column1" colwidth="94.50pt" min-data-value="10"></colspec><colspec coldef="fig" colname="column2" colwidth="74.00pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column3" colwidth="71.25pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column4" colwidth="75.75pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column5" colwidth="72.75pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column6" colwidth="69.75pt" min-data-value="7"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="1" namest="column1">Family Size</entry><entry align="center" colname="column2" morerows="0" nameend="column6" namest="column2">Number in College</entry>
</row>
<row><entry align="center" colname="column2" morerows="0" namest="column2">1</entry><entry align="center" colname="column3" morerows="0" namest="column3">2</entry><entry align="center" colname="column4" morerows="0" namest="column4">3</entry><entry align="center" colname="column5" morerows="0" namest="column5">4</entry><entry align="center" colname="column6" morerows="0" namest="column6">5</entry>
</row>
</thead><tfoot>
<row><entry nameend="column6" namest="column1">NOTE: For each
additional family member, add $5,180.<linebreak></linebreak>For each additional college
student, subtract $3,690.</entry>
</row></tfoot>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">2</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$21,660</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">$17,960</entry><entry colname="column4" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">3</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">26,960</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">23,280</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">$19,580</entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">4</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">33,300</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">29,600</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">25,920</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">$22,210</entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">5</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">39,300</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">35,590</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">31,900</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">28,200</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="0">$24,520</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="1" stub-definition="txt-ldr">6</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="1">45,950</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="1">42,250</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="1">38,580</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="1">34,860</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="1">31,190</entry>
</row>
</tbody>
</tgroup>
</table>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3D4500A20BAD4EB3B515FC8E2A548BFD"><enum>(D)</enum><header>Academic year
2012–2013</header><text>For academic year 2012–2013, the income protection
allowance is determined by the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="1" rule-weights="4.4.4.4.4.0" table-template-name="Generic: 1 text, 5 num" table-type="">
<ttitle>Income Protection Allowance</ttitle>
<tgroup cols="6" fnote-size="8" grid-typeface="1.1" rowsep="1" thead-tbody-ldg-size="10.10.12" ttitle-size="10"><colspec align="center" coldef="fig" colname="column1" colwidth="95.25pt" min-data-value="10"></colspec><colspec coldef="fig" colname="column2" colwidth="68.00pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column3" colwidth="75.00pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column4" colwidth="76.50pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column5" colwidth="75.00pt" min-data-value="7"></colspec><colspec coldef="fig" colname="column6" colwidth="71.25pt" min-data-value="7"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="1" namest="column1">Family Size</entry><entry align="center" colname="column2" morerows="0" nameend="column6" namest="column2">Number in College</entry>
</row>
<row><entry align="center" colname="column2" morerows="0" namest="column2">1</entry><entry align="center" colname="column3" morerows="0" namest="column3">2</entry><entry align="center" colname="column4" morerows="0" namest="column4">3</entry><entry align="center" colname="column5" morerows="0" namest="column5">4</entry><entry align="center" colname="column6" morerows="0" namest="column6">5</entry>
</row>
</thead><tfoot>
<row><entry nameend="column6" namest="column1">NOTE: For each
additional family member, add $5,660.<linebreak></linebreak>For each additional college
student, subtract $4,020.</entry>
</row></tfoot>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">2</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">$23,630</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">$19,590</entry><entry colname="column4" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">3</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">29,420</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">25,400</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">$21,360</entry><entry colname="column5" leader-modify="clr-ldr" rowsep="0"></entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">4</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">36,330</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">32,300</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">28,280</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">$24,230</entry><entry colname="column6" leader-modify="clr-ldr" rowsep="0"></entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-ldr">5</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">42,870</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="0">38,820</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="0">34,800</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="0">30,770</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="0">$26,750</entry>
</row>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="1" stub-definition="txt-ldr">6</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="1">50,130</entry><entry align="right" colname="column3" leader-modify="clr-ldr" rowsep="1">46,100</entry><entry align="right" colname="column4" leader-modify="clr-ldr" rowsep="1">42,090</entry><entry align="right" colname="column5" leader-modify="clr-ldr" rowsep="1">38,030</entry><entry align="right" colname="column6" leader-modify="clr-ldr" rowsep="1">34,020</entry>
</row>
</tbody>
</tgroup></table>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2812902276CE4CA9A20ED2B164D994BF"><enum>(d)</enum><header>Updated tables
and amounts</header><text>Section 478(b) (20 U.S.C. 1087rr(b)) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idBF7595D24DA54350A4648A7373997666"><enum>(1)</enum><text>by striking
paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id90142EFA6E464A2E8ED3281B760C7F35" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id44668464D4654434902E15F3F516FBA7"><enum>(1)</enum><header>Revised
tables</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id8ABDF0330EB44CB697AFEC5C25054433"><enum>(A)</enum><header>In
general</header><text>For each academic year after academic year 2008–2009, the
Secretary shall publish in the Federal Register a revised table of income
protection allowances for the purpose of such sections, subject to
subparagraphs (B) and (C).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2C2B398574334C0FACD1579068D62A10"><enum>(B)</enum><header>Table for
independent students</header>
<clause commented="no" display-inline="no-display-inline" id="id08874C3B902E4237A0D57CA9DA4E3E9F"><enum>(i)</enum><header>Academic years
2009–2010 through 2012–2013</header><text>For each of the academic years
2009–2010 through 2012–2013, the Secretary shall not develop a revised table of
income protection allowances under section 477(b)(4) and the table specified
for such academic year under subparagraphs (A) through (D) of such section
shall apply.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD0456DA3450A4F439231BB270D1CB77A"><enum>(ii)</enum><header>Other academic
years</header><text>For each academic year after academic year 2012–2013, the
Secretary shall develop the revised table of income protection allowances by
increasing each of the dollar amounts contained in the table of income
protection allowances under section 477(b)(4)(D) by a percentage equal to the
estimated percentage increase in the Consumer Price Index (as determined by the
Secretary) between December 2011 and the December next preceding the beginning
of such academic year, and rounding the result to the nearest $10.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB13A1798411141C887B173E4435D2D3B"><enum>(C)</enum><header>Table for
parents</header><text display-inline="yes-display-inline">For each academic
year after academic year 2008–2009, the Secretary shall develop the revised
table of income protection allowances under section 475(c)(4) by increasing
each of the dollar amounts contained in the table by a percentage equal to the
estimated percentage increase in the Consumer Price Index (as determined by the
Secretary) between December 1992 and the December next preceding the beginning
of such academic year, and rounding the result to the nearest
$10.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9EDE8A76152B4491A536C63FDE4B2F1C"><enum>(2)</enum><text>in paragraph (2),
by striking <quote>shall be developed</quote> and all that follows through the
period at the end and inserting <quote>shall be developed for each academic
year after academic year 2012–2013, by increasing each of the dollar amounts
contained in such section for academic year 2012–2013 by a percentage equal to
the estimated percentage increase in the Consumer Price Index (as determined by
the Secretary) between December 2011 and the December next preceding the
beginning of such academic year, and rounding the result to the nearest
$10.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id46899107A77E4DF49508C1DDA8680162"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
July 1, 2009.</text>
</subsection></section><section commented="no" id="id7AC3DC64079147CA9D13C64D8556787B"><enum>602.</enum><header>Automatic zero
improvements</header>
<subsection commented="no" id="id18BB48E9416B4ADBA849B17DFD2259AB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 479(c) (20
U.S.C. 1087ss(c)) is amended—</text>
<paragraph commented="no" id="ID605a25b806af49fd98c79dca29b6c67a"><enum>(1)</enum><text>in paragraph
(1)(B), by striking <quote>20,000</quote> and inserting <quote>$30,000</quote>;
and</text>
</paragraph><paragraph commented="no" id="IDa7ee9211c19049eeb87cdc31b85c9474"><enum>(2)</enum><text>in paragraph
(2)(B), by striking <quote>$20,000</quote> and inserting
<quote>$30,000</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id18608C62EFC44DF0BCA0C3E3C897A8A8"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
July 1, 2009.</text>
</subsection></section><section id="IDB5549C0439A54840B21550EF9CDAF9BE"><enum>603.</enum><header>Discretion of
student financial aid administrators</header><text display-inline="no-display-inline">The third sentence of section 479A(a) (20
U.S.C. 1087tt(a)) is amended—</text>
<paragraph id="ID5D3204ED483B46059ADF85A50D970FFF"><enum>(1)</enum><text>by inserting
<quote>or an independent student</quote> after <quote>family member</quote>;
and</text>
</paragraph><paragraph id="ID7E1408EEA2DF4F3BB0AE880FF2080828"><enum>(2)</enum><text>by inserting
<quote>a change in housing status that results in homelessness (as defined in
section 103 of the McKinney-Vento Homeless Assistance Act),</quote> after
<quote>under section 487,</quote>.</text>
</paragraph></section><section id="idB7010A951955401FA9E5197AE8303C92"><enum>604.</enum><header>Definitions</header>
<subsection id="idD2B40CC415BF49C888DDEFC11373395C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 480 (20
U.S.C. 1087vv) is amended—</text>
<paragraph commented="no" id="idD5B915530C204FB3897E3C849D9168BE"><enum>(1)</enum><text>in subsection
(a)(2)—</text>
<subparagraph commented="no" id="id294F1D791B1D47608891DB7EB0FF08D3"><enum>(A)</enum><text>by striking
<quote>and no portion</quote> and inserting <quote>no portion</quote>;
and</text>
</subparagraph><subparagraph commented="no" id="id3A55EE5BB36742ED944E609599E60BF5"><enum>(B)</enum><text>by inserting
<quote>and no distribution from any qualified education benefit described in
subsection (f)(3) that is not subject to Federal income tax,</quote> after
<quote>1986,</quote>;</text>
</subparagraph></paragraph><paragraph id="idF6981538C99A4A829DD631E0D72C1A1D"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph id="idA204038E34304A8496716427E816154D"><enum>(A)</enum><text>by redesignating
paragraphs (1), (2), (3) through (6), and (7) as subparagraphs (A), (B), (D)
through (G), and (I), respectively, and indenting appropriately;</text>
</subparagraph><subparagraph id="idEB286AC33E614AD7AFD705F59A88A708"><enum>(B)</enum><text>by striking
<quote><header-in-text level="subsection" style="OLC">Independent
student</header-in-text>.—The term</quote> and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="id6C064B220C28430792D035F5A883C06B" style="OLC">
<text><header-in-text level="subsection" style="OLC">Independent student</header-in-text>.—</text><paragraph id="id107CF25A9F334D01A9667F0D07EF6824"><enum>(1)</enum><header>Definition</header><text>The
term</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idE84C98BC86874D2A9143E775C0AC140C"><enum>(C)</enum><text>by striking
subparagraph (B) (as redesignated by subparagraph (A)) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="idC089C5ECCEAE41C4976BE39A5DFC728D" style="OLC">
<subparagraph id="id9B62138220B54AF6AB8B97B785A4C8A6"><enum>(B)</enum><text>is an orphan, in
foster care, or a ward of the court, or was in foster care or a ward of the
court until the individual reached the age of 18;</text>
</subparagraph><subparagraph id="id6A4B4CA7ACC24D1BBA93C6156EF3EF19"><enum>(C)</enum><text>is an emancipated
minor or is in legal guardianship as determined by a court of competent
jurisdiction in the individual’s State of legal
residence;</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id8B6A3470B128471086452A1BC047D542"><enum>(D)</enum><text>in subparagraph
(G) (as redesignated by subparagraph (A)), by striking <quote>or</quote> after
the semicolon;</text>
</subparagraph><subparagraph id="idA2B69154C6274763B2BC1B27A1C0A3E4"><enum>(E)</enum><text>by inserting
after subparagraph (G) (as redesignated by subparagraph (A)) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idB71F5DB9A45843D9B73C1E5D709AF63F" style="OLC">
<subparagraph id="id00FB761869794F8BB53A533E4623038E"><enum>(H)</enum><text>has been verified
as an unaccompanied youth who is a homeless child or youth (as such terms are
defined in section 725 of the McKinney-Vento Homeless Assistance Act) during
the school year in which the application is submitted, by—</text>
<clause id="idE7BBB35DCCCA4C21A81B548B8DA9A2D6"><enum>(i)</enum><text>a
local educational agency homeless liaison, designated pursuant to section
722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act;</text>
</clause><clause id="id72D98B74C20943C18395B9602A747B47"><enum>(ii)</enum><text>the director of
a program funded under the Runaway and Homeless Youth Act or a designee of the
director; or</text>
</clause><clause id="id85741548B9C24602981A091BEB5CBABD"><enum>(iii)</enum><text>the director of
a program funded under subtitle B of title IV of the McKinney-Vento Homeless
Assistance Act (relating to emergency shelter grants) or a designee of the
director; or</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id346F6514619248A7B539A89107EA55EA"><enum>(F)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id900C86826E3A43B8B6EA63CBFBBDC51D" style="OLC">
<paragraph id="ID430ce8dc9848478690281b4c96824b52"><enum>(2)</enum><header>Simplifying the
dependency override process</header><text>A financial aid administrator may
make a determination of independence under paragraph (1)(I) based upon a
documented determination of independence that was previously made by another
financial aid administrator under such paragraph in the same award
year.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="id6945F2E9AE92476898316EB5B97FA6CE"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<subparagraph commented="no" id="idB4BD84F6D9D643F8B6C86DB66EF11EF5"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking
<quote>and</quote> after the semicolon;</text>
</subparagraph><subparagraph commented="no" id="idE6C188427489493F9F1DC71858361436"><enum>(B)</enum><text>in paragraph (4),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph commented="no" id="id1F3A9F6F268E4CB28C934794CD8EE358"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id85DE3B7FF46B43CCA7392FC9CBF896C9" style="OLC">
<paragraph commented="no" id="id8EC17FDCBDB84FE89149896AC7A475CB"><enum>(5)</enum><text>special combat
pay.</text>
</paragraph><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idA92384E109DC4663BE7F42172740A107"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (f), by striking paragraph
(3) and inserting the following:</text>
<quoted-block id="id607CC65737D546BBA9CAD9B652B662C2" style="OLC">
<paragraph id="id213018CDC38847C19435B2969163A8E8"><enum>(3)</enum><text>A qualified
education benefit shall be considered an asset of—</text>
<subparagraph id="id81ED8FC42D234CF6A6D918A626A7DED5"><enum>(A)</enum><text>the student if
the student is an independent student; or</text>
</subparagraph><subparagraph id="id2FA2BF98D99F449FA14173C33B98A1FA"><enum>(B)</enum><text>the parent if the
student is a dependent student, regardless of whether the owner of the account
is the student or the parent.</text>
</subparagraph></paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idED823426CF564553B6FB4E083279F6BF"><enum>(5)</enum><text>in subsection
(j)—</text>
<subparagraph commented="no" id="id2E127B2481034037B7CB619C24B80E7B"><enum>(A)</enum><text>in paragraph (2),
by inserting <quote>, or a distribution that is not includable in gross income
under section 529 of such Code, under another prepaid tuition plan offered by a
State, or under a Coverdell education savings account under section 530 of such
Code,</quote> after <quote>1986</quote>; and</text>
</subparagraph><subparagraph commented="no" id="idA118ADDCA2C440E0AF352645FF4FC3C7"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id647B772A1C96425CA61EDD5F056495D4" style="OLC">
<paragraph commented="no" id="id4B479A0451824623AD8C9D271EB3361B" indent="up1"><enum>(4)</enum><text>Notwithstanding paragraph (1),
special combat pay shall not be treated as estimated financial assistance for
purposes of section 471(3).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="idC3BF105F913749ACA94636DC0835B38E"><enum>(6)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id82551A7AAFE84C26AB8126874D723FEC" style="OLC">
<subsection commented="no" id="idAAEACE9A79A84ABD852A54106CE08974"><enum>(n)</enum><header>Special combat
pay</header><text>The term <term>special combat pay</term> means pay received
by a member of the Armed Forces because of exposure to a hazardous
situation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idAEF03A315ACA486CAFB32CFCEFB39F1F"><enum>605.</enum><header>Authorization
and appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated, and there are appropriated, out of any money in
the Treasury not otherwise appropriated, $10,000,000 for fiscal year 2008 for
the Department of Education to pay the estimated increase in costs in the
Federal Pell Grant program under section 401 of the Higher Education Act of
1965 (20 U.S.C. 1070a) resulting from the amendments made by sections 603 and
604 for award year 2007–2008.</text>
</section><enum>VII</enum><header>General
provisions relating to student assistance</header>
<section id="id6659AAEAC4FD4DD6A83C63BED33F8557"><enum>701.</enum><header>Student
eligibility</header>
<subsection id="id6FB0412C12614DEEA3468AED6CC33861"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 484(r) (20 U.S.C. 1091(r)) is
amended—</text>
<paragraph id="idAFC2479E6CA946739EAD18945C20A854"><enum>(1)</enum><text>in the table in
paragraph (1), by inserting <quote>while such student is enrolled in an
institution of higher education and receiving financial assistance under this
title</quote> after <quote>of a controlled substance</quote> each place the
term appears;</text>
</paragraph><paragraph id="idC5F0773C3B3B42FE8F44B6F523F84D37"><enum>(2)</enum><text>by redesignating
paragraph (3) as paragraph (4); and</text>
</paragraph><paragraph id="idB4314251F5604F0B8F7B2C1ECDF47103"><enum>(3)</enum><text>by inserting
after paragraph (2) the following:</text>
<quoted-block display-inline="no-display-inline" id="id5FFF1D25E1ED4D65841CF87DE6FCB9DA" style="OLC">
<paragraph id="id156AD61611D34894B82512219FFBEBC4"><enum>(4)</enum><header>Interaction
with FAFSA</header><text>The Secretary shall not require a student to provide
information regarding the student's possession or sale of a controlled
substance on the Free Application for Federal Student Aid (FAFSA) or any other
common financial reporting form described in section
483(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID1be5b7cc10c64de2bcd3f87b2c7a222a"><enum>(b)</enum><header>Authorization
and appropriations</header><text>There are authorized to be appropriated, and
there are appropriated, out of any money in the Treasury not otherwise
appropriated, $5,000,000 for fiscal year 2008 for the Department of Education
to pay the estimated increase in costs in the Federal Pell Grant program under
section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) resulting
from the amendments made by subsection (a) for award year 2007–2008.</text>
</subsection></section><enum>VIII</enum><header>Miscellaneous</header>
<section commented="no" id="id5C92D008245E4053952B6765FA3B7F7C"><enum>801.</enum><header>Competitive
loan auction pilot program</header><text display-inline="no-display-inline">Title IV (20 U.S.C. 1070 et seq.) is further
amended by adding at the end the following:</text>
<quoted-block act-name="" display-inline="no-display-inline" id="idE77EBAF9226946BB8A394906DA1BD611" style="OLC">
<part id="id591FE463FCC3486B9B522BEC24E4C316"><enum>I</enum><header>Competitive loan
auction pilot program; State grant program</header>
<section commented="no" id="id47AA040B464643FFB2A6551BD5B8A8AC"><enum>499.</enum><header>Competitive
loan auction pilot program</header>
<subsection commented="no" id="id08404FAAEB374AEAA6B6CA9C7F842254"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph commented="no" id="idCCC9FC0AEFEA42AA8272CA26BFFDDBC3"><enum>(1)</enum><header>Eligible
Federal PLUS Loan</header><text>The term <term>eligible Federal PLUS
Loan</term> means a loan described in section 428B made to a parent of a
dependent student.</text>
</paragraph><paragraph commented="no" id="idB05A892FDC7145C5B42CF72765773AC9"><enum>(2)</enum><header>Eligible
lender</header><text>The term <term>eligible lender</term> has the meaning
given the term in section 435.</text>
</paragraph></subsection><subsection commented="no" id="id1454254E49C2473287CACCAEE3F806BD"><enum>(b)</enum><header>Pilot
program</header><text display-inline="yes-display-inline">The Secretary shall
carry out a pilot program under which the Secretary establishes a mechanism for
an auction of eligible Federal PLUS Loans in accordance with this subsection.
The pilot program shall meet the following requirements:</text>
<paragraph commented="no" id="idE747189F66E248A7962AF65ED6843C50"><enum>(1)</enum><header>Planning and
implementation</header><text display-inline="yes-display-inline">During the
period beginning on the date of enactment of this section and ending on June
30, 2009, the Secretary shall plan and implement the pilot program under this
subsection.</text>
</paragraph><paragraph commented="no" id="id033A929B4787417CA6FE5893C6E9B1FD"><enum>(2)</enum><header>Origination and
disbursement; applicability of section 428B</header><text>Beginning on July 1,
2009, the Secretary shall arrange for the origination and disbursement of all
eligible Federal PLUS Loans in accordance with the provisions of this
subsection and the provisions of section 428B that are not inconsistent with
this subsection.</text>
</paragraph><paragraph commented="no" id="id6EFBD2FD6C6C458481A8A6B36EB1BE6E"><enum>(3)</enum><header>Loan
origination mechanism</header><text>The Secretary shall establish a loan
origination auction mechanism that meets the following requirements:</text>
<subparagraph commented="no" id="idC830AA1D68AB43E2B71E3D635856CC00"><enum>(A)</enum><header>Auction</header><text>The
Secretary administers an auction under this paragraph for each State under
which eligible lenders compete to originate eligible Federal PLUS Loans under
this paragraph at all institutions of higher education within the State.</text>
</subparagraph><subparagraph commented="no" id="idFE34FCC8A2F04C54B57C9339C978F59C"><enum>(B)</enum><header>Prequalification
process</header><text>The Secretary establishes a prequalification process for
eligible lenders desiring to participate in an auction under this paragraph
that contains, at a minimum—</text>
<clause commented="no" id="id6F935AF411F84DB7851BFB9CDE6698B1"><enum>(i)</enum><text>a set of borrower
benefits and servicing requirements each eligible lender shall meet in order to
participate in such an auction; and</text>
</clause><clause commented="no" id="id7A034DA450F140569F60ECB21BD2FEEF"><enum>(ii)</enum><text>an assessment of
each such eligible lender's capacity, including capital capacity, to
participate effectively.</text>
</clause></subparagraph><subparagraph commented="no" id="idA6D0FC701F3D4150B3F901D26FEF1DD3"><enum>(C)</enum><header>Timing and
origination</header><text>Each State auction takes place every 2 years, and the
eligible lenders with the winning bids for the State are the only eligible
lenders permitted to originate eligible Federal PLUS Loans made under this
paragraph for the cohort of students at the institutions of higher education
within the State until the students graduate from or leave the institutions of
higher education.</text>
</subparagraph><subparagraph commented="no" id="id5110EA106F954C25AA303708B3C7E692"><enum>(D)</enum><header>Bids</header><text>Each
eligible lender's bid consists of the amount of the special allowance payment
(including the recapture of excess interest) the eligible lender proposes to
accept from the Secretary with respect to the eligible Federal PLUS Loans made
under this paragraph in lieu of the amount determined under section
438(b)(2)(I).</text>
</subparagraph><subparagraph commented="no" id="id84725E7B8D7E4C84A2C67D523C2349B7"><enum>(E)</enum><header>Maximum
bid</header><text>The maximum bid allowable under this paragraph shall not
exceed the amount of the special allowance payable on eligible Federal PLUS
Loans made under this paragraph computed under section 438(b)(2)(I) (other than
clauses (ii), (iii), (iv), and (vi) of such section), except that for purposes
of the computation under this subparagraph, section 438(b)(2)(I)(i)(III) shall
be applied by substituting <quote>1.74 percent</quote> for <quote>2.34
percent</quote>.</text>
</subparagraph><subparagraph commented="no" id="idECDDC89D22904321894C568C20CE4E20"><enum>(F)</enum><header>Winning
bids</header><text>The winning bids for each State auction shall be the 2 bids
containing the lowest and the second lowest proposed special allowance
payments, subject to subparagraph (E).</text>
</subparagraph><subparagraph commented="no" id="id7914BCCFF1434F2188D3BF9B144AD1EC"><enum>(G)</enum><header>Agreement with
Secretary</header><text>Each eligible lender having a winning bid under
subparagraph (F) enters into an agreement with the Secretary under which the
eligible lender—</text>
<clause commented="no" id="id82A0A1398A004D90A548E2208DB3069F"><enum>(i)</enum><text>agrees to
originate eligible Federal PLUS Loans under this paragraph to each borrower
who—</text>
<subclause commented="no" id="idB7AC85C8ABBB47F4AF270F8718D31768"><enum>(I)</enum><text>seeks an eligible
Federal PLUS Loan under this paragraph to enable a dependent student to attend
an institution of higher education within the State;</text>
</subclause><subclause commented="no" id="id3670E935AEE742D1ADDE0FCA97463BB5"><enum>(II)</enum><text>is eligible for
an eligible Federal PLUS Loan; and</text>
</subclause><subclause commented="no" id="id7E425EF056CF4F76B7E0370987BE1641"><enum>(III)</enum><text>elects to
borrow from the eligible lender; and</text>
</subclause></clause><clause commented="no" id="id467DF4E70BA041709D6E5B53F861B4A0"><enum>(ii)</enum><text>agrees to accept
a special allowance payment (including the recapture of excess interest) from
the Secretary with respect to the eligible Federal PLUS Loans originated under
clause (i) in the amount proposed in the second lowest winning bid described in
subparagraph (F) for the applicable State auction.</text>
</clause></subparagraph><subparagraph commented="no" id="idD013238B1642426EBEA5CA72B5EC1FCA"><enum>(H)</enum><header>Sealed bids;
confidentiality</header><text>All bids are sealed and the Secretary keeps the
bids confidential, including following the announcement of the winning
bids.</text>
</subparagraph><subparagraph commented="no" id="IDba6293f39d2c48489b470032d48426df"><enum>(I)</enum><header>Eligible lender
of last resort</header>
<clause commented="no" id="id95ABF12345CF451DB5CDECD817CAD597"><enum>(i)</enum><header>In
general</header><text>In the event that there is no winning bid under
subparagraph (F), the students at the institutions of higher education within
the State that was the subject of the auction shall be served by an eligible
lender of last resort, as determined by the Secretary.</text>
</clause><clause commented="no" id="ID0c31ee90c7224cd68fb816d2d9b2c443"><enum>(ii)</enum><header>Determination
of eligible lender of last resort</header><text>Prior to the start of any
auction under this paragraph, eligible lenders that desire to serve as an
eligible lender of last resort shall submit an application to the Secretary at
such time and in such manner as the Secretary may determine. Such application
shall include an assurance that the eligible lender will meet the
prequalification requirements described in subparagraph (B).</text>
</clause><clause commented="no" id="ID83a5a4fb413e4418b92b5070a15c8b72"><enum>(iii)</enum><header>Geographic
location</header><text>The Secretary shall identify an eligible lender of last
resort for each State.</text>
</clause><clause commented="no" id="ID893721f6d44a42f7956c970931f76ffd"><enum>(iv)</enum><header>Notification
timing</header><text>The Secretary shall not identify any eligible lender of
last resort until after the announcement of all the winning bids for a State
auction for any year.</text>
</clause></subparagraph><subparagraph commented="no" id="id023D299E571F49B0830B63F76F98A0AB"><enum>(J)</enum><header>Guarantee
against losses</header><text>The Secretary guarantees the eligible Federal PLUS
Loans made under this paragraph against losses resulting from the default of a
parent borrower in an amount equal to 99 percent of the unpaid principal and
interest due on the loan.</text>
</subparagraph><subparagraph commented="no" id="id3460821BDD1141B29486C86DAAF5ADFC"><enum>(K)</enum><header>Loan
fees</header><text>The Secretary shall not collect a loan fee under section
438(d) with respect to an eligible Federal Plus Loan originated under this
paragraph.</text>
</subparagraph><subparagraph commented="no" id="IDd4ff176aedab4eb68c82a892d2e1fd8e"><enum>(L)</enum><header>Consolidation</header>
<clause commented="no" id="ID89788218638c4c4f9173d1c8b01e6ef0"><enum>(i)</enum><header>In
general</header><text>An eligible lender who is permitted to originate eligible
Federal PLUS Loans for a borrower under this paragraph shall have the option to
consolidate such loans into 1 loan.</text>
</clause><clause commented="no" id="ID7ba8eb25a0f24d93a6e97a4ecf40e426"><enum>(ii)</enum><header>Notification</header><text>In
the event a borrower with eligible Federal PLUS Loans made under this paragraph
wishes to consolidate the loans, the borrower shall notify the eligible lender
who originated the loans under this paragraph.</text>
</clause><clause commented="no" id="IDb6b4d7138a9c49df9bf74a6f6d2ff6b6"><enum>(iii)</enum><header>Limitation on
eligible lender option to consolidate</header><text>The option described in
clause (i) shall not apply if—</text>
<subclause commented="no" id="IDc21ad5e1bd374dcfb591facf20a5043e"><enum>(I)</enum><text>the borrower
includes in the notification in clause (ii) verification of consolidation terms
and conditions offered by an eligible lender other than the eligible lender
described in clause (i); and</text>
</subclause><subclause commented="no" id="IDb6d42aa564ff469ebce52b15fa93d649"><enum>(II)</enum><text>not later than
10 days after receiving such notification from the borrower, the eligible
lender described in clause (i) does not agree to match such terms and
conditions, or provide more favorable terms and conditions to such borrower
than the offered terms and conditions described in subclause (I).</text>
</subclause></clause><clause commented="no" id="ID8be9ac3453d94051a9af385c06dc5c50"><enum>(iv)</enum><header>Consolidation
of additional loans</header><text>If a borrower has a Federal Direct PLUS Loan
or a loan made on behalf of a dependent student under section 428B and seeks to
consolidate such loan with an eligible Federal PLUS Loan made under this
paragraph, then the eligible lender that originated the borrower's loan under
this paragraph may include in the consolidation under this subparagraph a
Federal Direct PLUS Loan or a loan made on behalf of a dependent student under
section 428B, but only if—</text>
<subclause commented="no" id="idE8BEB128D1564C38BA851239699356E3"><enum>(I)</enum><text>in the case of a
Federal Direct PLUS Loan, the eligible lender agrees, not later than 10 days
after the borrower requests such consolidation from the lender, to match the
consolidation terms and conditions that would otherwise be available to the
borrower if the borrower consolidated such loans in the loan program under part
D; or</text>
</subclause><subclause commented="no" id="id73843109E42A4224A918E8A66DB77780"><enum>(II)</enum><text>in the case of a
loan made on behalf of a dependent student under section 428B, the eligible
lender agrees, not later than 10 days after the borrower requests such
consolidation from the lender, to match the consolidation terms and conditions
offered by an eligible lender other than the eligible lender that originated
the borrower’s loans under this paragraph.</text>
</subclause></clause><clause commented="no" id="IDbda5093e03f048fc87c4dcbbe22d9916"><enum>(v)</enum><header>Special
allowance on consolidation loans that include loans made under this
paragraph</header><text>The applicable special allowance payment for loans
consolidated under this paragraph shall be equal to the lesser of—</text>
<subclause commented="no" id="id987AC2AF45CB4C24AE963EE85DC3B602"><enum>(I)</enum><text>the weighted
average of the special allowance payment on such loans, except that such
weighted average shall exclude the special allowance payment for any Federal
Direct PLUS Loan included in the consolidation; or</text>
</subclause><subclause commented="no" id="id23428F22658A4005ABC691251CC69D38"><enum>(II)</enum><text>the result
of—</text>
<item commented="no" id="id142B361A068D4301B6E70A8B97387D18"><enum>(aa)</enum><text>the average of
the bond equivalent rates of the quotes of the 3-month commercial paper
(financial) rates in effect for each of the days in such quarter as reported by
the Federal Reserve in Publication H–15 (or its successor) for such 3-month
period; plus</text>
</item><item commented="no" id="id002888659398412CB0228EAF5AFB1913"><enum>(bb)</enum><text>1.59
percent.</text>
</item></subclause></clause><clause commented="no" id="idAB15611F02C74D8496F8FBE590213E18"><enum>(vi)</enum><header>Interest
payment rebate fee</header><text>Any loan under section 428C consolidated under
this paragraph shall not be subject to the interest payment rebate fee under
section 428C(f).</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7A8684F8F29340B084DDF3F028274B1E"><enum>(c)</enum><header>College access
partnership grant program</header>
<paragraph id="ID5d877f7e13ce46928e7862da7f43f503"><enum>(1)</enum><header>Purpose</header><text>It
is the purpose of this subsection to make payments to States to assist the
States in carrying out the activities and services described in paragraph (7)
in order to increase access to higher education for students in the
State.</text>
</paragraph><paragraph id="IDbd892bc4349f4d258969d43229ef18a4"><enum>(2)</enum><header>Authorization
and appropriations</header><text>There are authorized to be appropriated, and
there are appropriated, $25,000,000 for each of the fiscal years 2008 and 2009
to carry out this subsection.</text>
</paragraph><paragraph id="idF1A4D48BD4EA4BCEA62162FD2FC20EFC"><enum>(3)</enum><header>Program
authorized</header>
<subparagraph id="idFE19AAB9071A4319BC3332D035E12EF2"><enum>(A)</enum><header>Grants
authorized</header><text>From amounts appropriated under paragraph (2), the
Secretary shall award grants, from allotments under paragraph (4), to States
having applications approved under paragraph (5), to enable the State to pay
the Federal share of the costs of carrying out the activities and services
described in paragraph (7).</text>
</subparagraph><subparagraph id="id4549AC6161ED45F399217B28057C0382"><enum>(B)</enum><header>Federal share;
non-Federal share</header>
<clause id="IDe6bef72355e44c798f24ffc3e49c4242"><enum>(i)</enum><header>Federal
share</header><text>The amount of the Federal share under this subsection for a
fiscal year shall be equal to <fraction>2/3</fraction> of the costs of the
activities and services described in paragraph (7).</text>
</clause><clause id="IDc9df0d9ded904069875445edd8339237"><enum>(ii)</enum><header>Non-Federal
share</header><text>The amount of the non-Federal share under this subsection
shall be equal to <fraction>1/3</fraction> of the costs of the activities and
services described in paragraph (7). The non-Federal share may be in cash or
in-kind, and may be provided from a combination of State resources and
contributions from private organizations in the State.</text>
</clause></subparagraph><subparagraph id="id28D3BA623B4D480BB0C7709F85441863"><enum>(C)</enum><header>Reduction for
failure to pay non-Federal share</header><text>If a State fails to provide the
full non-Federal share required under this paragraph, the Secretary shall
reduce the amount of the grant payment under this subsection
proportionately.</text>
</subparagraph><subparagraph id="IDcde914653e1a4ddcb88e1c61699dcbf5"><enum>(D)</enum><header>Temporary
ineligibility for subsequent payments</header>
<clause id="id6939A6706B1A40B3A7A05BE1E07B3C37"><enum>(i)</enum><header>In
general</header><text>The Secretary shall determine a State to be temporarily
ineligible to receive a grant payment under this subsection for a fiscal year
if—</text>
<subclause id="IDaa8098bc2e2d43c2a1687f343e9e1475"><enum>(I)</enum><text>the State fails
to submit an annual report pursuant to paragraph (9) for the preceding fiscal
year; or</text>
</subclause><subclause id="ID956faacbbbcf44c2a2668a8eba2e6dde"><enum>(II)</enum><text>the Secretary
determines, based on information in such annual report, that the State is not
effectively meeting the conditions described under paragraph (8) and the goals
of the application under paragraph (5).</text>
</subclause></clause><clause id="IDbe0d0799b9fc432e9f795a4cfa7e21ec"><enum>(ii)</enum><header>Reinstatement</header><text>If
the Secretary determines a State is ineligible under clause (i), the Secretary
may enter into an agreement with the State setting forth the terms and
conditions under which the State may regain eligibility to receive payments
under this subsection.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="ID060e6da890f44b20bb1d9f416a0abb7d"><enum>(4)</enum><header>Determination
of allotment</header>
<subparagraph commented="no" id="id60FA5EE763AD40D4802E00BA827E9454"><enum>(A)</enum><header>Amount of
allotment</header><text>Subject to subparagraph (B), in making grant payments
to States under this subsection, the allotment to each State for a fiscal year
shall be equal to the sum of—</text>
<clause commented="no" id="id76EFCF3D9C644666AAF4630C1B4F9B3B"><enum>(i)</enum><text>the amount that
bears the same relation to 50 percent of the amount appropriated under
paragraph (2) for such fiscal year as the number of residents in the State aged
5 through 17 who are living below the poverty line applicable to the resident's
family size (as determined under section 673(2) of the Community Service Block
Grant Act) bears to the total number of such residents in all States;
and</text>
</clause><clause commented="no" id="idA2A8085ED980423AA42109A639AE0F00"><enum>(ii)</enum><text>the amount that
bears the same relation to 50 percent of the amount appropriated under
paragraph (2) for such fiscal year as the number of residents in the State aged
15 through 44 who are living below the poverty line applicable to the
individual's family size (as determined under section 673(2) of the Community
Service Block Grant Act) bears to the total number of such residents in all
States.</text>
</clause></subparagraph><subparagraph commented="no" id="idFBB22019950940B2BBD420CBE408399B"><enum>(B)</enum><header>Minimum
amount</header><text>No State shall receive an allotment under this subsection
for a fiscal year in an amount that is less than <fraction>1/2</fraction> of 1
percent of the total amount appropriated under paragraph (2) for such fiscal
year.</text>
</subparagraph></paragraph><paragraph id="IDba84bc3956ad4720b97c5dfbfb949802"><enum>(5)</enum><header>Submission and
contents of application</header>
<subparagraph id="ID0d89763a1ea645ccb5fefe76dc62e9db"><enum>(A)</enum><header>In
general</header><text>For each fiscal year for which a State desires a grant
payment under paragraph (3), the State agency with jurisdiction over higher
education, or another agency designated by the Governor of the State to
administer the program under this subsection, shall submit an application to
the Secretary at such time, in such manner, and containing the information
described in subparagraph (B).</text>
</subparagraph><subparagraph id="ID01be3618d3d64d27aec516192f452f3f"><enum>(B)</enum><header>Application</header><text>An
application submitted under subparagraph (A) shall include the
following:</text>
<clause id="ID272a37707b7b46c59edc3cb09aab77e7"><enum>(i)</enum><text>A
description of the State’s capacity to administer the grant under this
subsection and report annually to the Secretary on the activities and services
described in paragraph (7).</text>
</clause><clause id="ID862fdcba27304c54a0e008a71ebfee74"><enum>(ii)</enum><text>A description of
the State’s plan for using the grant funds to meet the requirements of
paragraphs (7) and (8), including plans for how the State will make special
efforts to provide such benefits to students in the State that are
underrepresented in postsecondary education.</text>
</clause><clause id="ID7ab903abefed4ae8a2f9ebec8739a6d9"><enum>(iii)</enum><text>A description
of how the State will provide or coordinate the non-Federal share from State
and private funds, if applicable.</text>
</clause><clause id="IDb21f0f94c47b4b7b84e84228d26f0575"><enum>(iv)</enum><text>A description of
the existing structure that the State has in place to administer the activities
and services under paragraph (7) or the plan to develop such administrative
capacity.</text>
</clause></subparagraph></paragraph><paragraph id="ID750d3b04df8b4787babd7e6a0d225885"><enum>(6)</enum><header>Payment to
eligible nonprofit organizations</header><text>A State receiving a payment
under this subsection may elect to make a payment to 1 or more eligible
nonprofit organizations, including an eligible not-for-profit holder (as
defined in section 438(p)), or a partnership of such organizations, in the
State in order to carry out activities or services described in paragraph (7),
if the eligible nonprofit organization or partnership—</text>
<subparagraph id="id55E398B859274406A9697A8F92146BE5"><enum>(A)</enum><text>was in existence
on the day before the date of enactment of the
<short-title>Higher Education Access Act of
2007</short-title>; and</text>
</subparagraph><subparagraph id="id5DCEEBA035294FCF9FDB4727A22F7CB7"><enum>(B)</enum><text>as of the day of
such payment, is participating in activities and services related to increasing
access to higher education, such as those activities and services described in
paragraph (7).</text>
</subparagraph></paragraph><paragraph id="ID1fadbb2690b847faa2e90a3294a5fadd"><enum>(7)</enum><header>Allowable
uses</header>
<subparagraph id="id68F73EB1E9894F2DBE7567A4830CAAFB"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (C), a State may use a grant
payment under this subsection only for the following activities and services,
pursuant to the conditions under paragraph (8):</text>
<clause id="IDee356eadcaad4765942887b9ab5567c8"><enum>(i)</enum><text>Information for
students and families regarding—</text>
<subclause id="idEFFE46A6E0A44A9FB3AE784E7E397F1F"><enum>(I)</enum><text>the benefits of a
postsecondary education;</text>
</subclause><subclause id="id2D9EBD704FDB4D1F86DBF5014F9F7F1D"><enum>(II)</enum><text>postsecondary
education opportunities;</text>
</subclause><subclause id="idBBD7FC16D5704F3682796EC9337BF1B8"><enum>(III)</enum><text>planning for
postsecondary education; and</text>
</subclause><subclause id="id90A2A73F65DA42BEA26088F2D9D3036B"><enum>(IV)</enum><text>career
preparation.</text>
</subclause></clause><clause id="IDafc61d711c894b1aa55460eb55497ffa"><enum>(ii)</enum><text>Information on
financing options for postsecondary education and activities that promote
financial literacy and debt management among students and families.</text>
</clause><clause id="IDcc33b2ec8b0d4d6aae73f7b0d650c5b2"><enum>(iii)</enum><text>Outreach
activities for students who may be at risk of not enrolling in or completing
postsecondary education.</text>
</clause><clause id="IDfbf6b5f834bd4e098390eef308d7d7ab"><enum>(iv)</enum><text>Assistance in
completion of the Free Application for Federal Student Aid or other common
financial reporting form under section 483(a).</text>
</clause><clause id="IDda5f4c81e8aa47dd9996d89f8a6cc213"><enum>(v)</enum><text>Need-based grant
aid for students.</text>
</clause><clause id="ID7870c7f3f3924a13b0681a766e40083f"><enum>(vi)</enum><text>Professional
development for guidance counselors at middle schools and secondary schools,
and financial aid administrators and college admissions counselors at
institutions of higher education, to improve such individuals’ capacity to
assist students and parents with—</text>
<subclause id="id63AD6CA4A4AF4FCB887156B47162DA90"><enum>(I)</enum><text>understanding—</text>
<item id="id1DE215F3263248919C20CF587BFE246F"><enum>(aa)</enum><text>entrance
requirements for admission to institutions of higher education; and</text>
</item><item id="id1DC771CD0EFF491FB3C78DFBABE24BED"><enum>(bb)</enum><text>State
eligibility requirements for Academic Competitiveness Grants or National SMART
Grants under section 401A, and other financial assistance that is dependent
upon a student's coursework;</text>
</item></subclause><subclause id="id73D14E6107A548E6AAB859A3C7F012F4"><enum>(II)</enum><text>applying to
institutions of higher education;</text>
</subclause><subclause id="id47EFA8D6DC2846CEB43256A7E3769600"><enum>(III)</enum><text>applying for
Federal student financial assistance and other State, local, and private
student financial assistance and scholarships;</text>
</subclause><subclause id="idA8BA4DE3F6304E0AA4B24F267E683B27"><enum>(IV)</enum><text>activities that
increase students’ ability to successfully complete the coursework required for
a postsecondary degree, including activities such as tutoring or mentoring;
and</text>
</subclause><subclause id="id90F266A23A134E6E9B53FF84EDBFB46B"><enum>(V)</enum><text>activities to
improve secondary school students' preparedness for postsecondary entrance
examinations.</text>
</subclause></clause><clause id="IDa9dcd33965e24ed7aa31d0d9911565f0"><enum>(vii)</enum><text>Student loan
cancellation or repayment (as applicable), or interest rate reductions, for
borrowers who are employed in a high-need geographical area or a high-need
profession in the State, as determined by the State.</text>
</clause></subparagraph><subparagraph id="id10652642F01A45F1BA972ABC4D5FF3F6"><enum>(B)</enum><header>Prohibited
uses</header><text>Funds made available under this subsection shall not be used
to promote any lender's loans.</text>
</subparagraph><subparagraph commented="no" id="IDe04160eb92564b6cb0579797c3b8ea5c"><enum>(C)</enum><header>Use of funds
for administrative purposes</header><text>A State may use not more than 2
percent of the total amount of the Federal share and non-Federal share provided
under this subsection for administrative purposes relating to the grant under
this subsection.</text>
</subparagraph></paragraph><paragraph id="ID29a3c4c7563747df9fa9d97dcf68d848"><enum>(8)</enum><header>Special
conditions</header>
<subparagraph id="IDdf4947c9d45d4e4da9cc5d2b5bec3f4c"><enum>(A)</enum><header>Availability to
students and families</header><text>A State receiving a grant payment under
this subsection shall—</text>
<clause id="id81809F6FD8414F9B8113C239CE962646"><enum>(i)</enum><text>make the
activities and services described in clauses (i) through (vi) of paragraph
(7)(A) that are funded under the payment available to all qualifying students
and families in the State;</text>
</clause><clause id="ID83115cc1e4ed4683a857698247d3e69c"><enum>(ii)</enum><text>allow students
and families to participate in the activities and services without regard
to—</text>
<subclause id="id890FC8CFDAF2415C84FC3F27ECF3B9A2"><enum>(I)</enum><text>the postsecondary
institution in which the student enrolls;</text>
</subclause><subclause id="id45D1B205613642D38F93EA5DC9CED5C3"><enum>(II)</enum><text>the type of
student loan the student receives;</text>
</subclause><subclause id="idF6BBDEC4B9CB4716AAC30E1866369399"><enum>(III)</enum><text>the servicer of
such loan; or</text>
</subclause><subclause id="id42AE9E6FAA1140D5B29B9A95B204B5B4"><enum>(IV)</enum><text>the student's
academic performance;</text>
</subclause></clause><clause id="IDf67a9249daaa418b88d8d7b974eb6ddd"><enum>(iii)</enum><text>not charge any
student or parent a fee or additional charge to participate in the activities
or services; and</text>
</clause><clause id="ID864330ba470e423aa206b86aefd1aeac"><enum>(iv)</enum><text>in the case of
an activity providing grant aid, not require a student to meet any condition
other than eligibility for Federal financial assistance under this title,
except as provided for in the loan cancellation or repayment or interest rate
reductions described in paragraph (7)(A)(vii).</text>
</clause></subparagraph><subparagraph id="IDc3223377e662431ca419311a4297c36f"><enum>(B)</enum><header>Priority</header><text>A
State receiving a grant payment under this subsection shall, in carrying out
any activity or service described in paragraph (7)(A) with the grant funds,
prioritize students and families who are living below the poverty line
applicable to the individual's family size (as determined under section 673(2)
of the Community Service Block Grant Act).</text>
</subparagraph><subparagraph id="IDc3ca7dc5db5f4e829f066968d410a3b6"><enum>(C)</enum><header>Disclosures</header>
<clause id="IDe94b4952af534fd09e1a2149b86330d1"><enum>(i)</enum><header>Organizational
disclosures</header><text>In the case of a State that has chosen to make a
payment to an eligible not-for-profit holder in the State in accordance with
paragraph (6), the holder shall clearly and prominently indicate the name of
the holder and the nature of its work in connection with any of the activities
carried out, or any information or services provided, with such funds.</text>
</clause><clause id="IDfa9f3ca11fb143ef9d34d5a331d97e4c"><enum>(ii)</enum><header>Informational
disclosures</header><text>Any information about financing options for higher
education provided through an activity or service funded under this subsection
shall—</text>
<subclause id="id3AA8BDAF6BEC429F906875E2576BB8CA"><enum>(I)</enum><text>include
information to students and the students' parents of the availability of
Federal, State, local, institutional, and other grants and loans for
postsecondary education; and</text>
</subclause><subclause id="id6CC70E4C30604C4FB8632733428C7395"><enum>(II)</enum><text>present
information on financial assistance for postsecondary education that is not
provided under this title in a manner that is clearly distinct from information
on student financial assistance under this title.</text>
</subclause></clause></subparagraph><subparagraph id="ID45072277938e493d9adc78a5f33448a3"><enum>(D)</enum><header>Coordination</header><text>A
State receiving a grant payment under this subsection shall attempt to
coordinate the activities carried out with the payment with any existing
activities that are similar to such activities, and with any other entities
that support the existing activities in the State.</text>
</subparagraph></paragraph><paragraph id="ID0253715dcff84b41a8a272714b8b52da"><enum>(9)</enum><header>Report</header><text>A
State receiving a payment under this subsection shall prepare and submit an
annual report to the Secretary on the program under this subsection and on the
implementation of the activities and services described in paragraph (7). The
report shall include—</text>
<subparagraph id="IDa4bf34b67ca54dcd916b638c3d3d8555"><enum>(A)</enum><text>each activity or
service that was provided to students and families over the course of the
year;</text>
</subparagraph><subparagraph id="ID13c220d35b8040be8c0a410313fc2694"><enum>(B)</enum><text>the cost of
providing each activity or service;</text>
</subparagraph><subparagraph id="ID4e07abe192b642dca6f2551af6dfe57a"><enum>(C)</enum><text>the number, and
percentage, if feasible and applicable, of students who received each activity
or service; and</text>
</subparagraph><subparagraph id="id4F225690D5224D33B2F8E7A99A4FE88D"><enum>(D)</enum><text>the total
contributions from private organizations included in the State's non-Federal
share for the fiscal year.</text>
</subparagraph></paragraph><paragraph id="id0AC2ACF8E28B44A38C7B8500D514307F"><enum>(10)</enum><header>Sunset</header><text>The
authority provided to carry out this subsection shall expire on September 30,
2009.</text>
</paragraph></subsection><subsection id="IDbc96d939977e4dec94d3d55fc21dc40a"><enum>(d)</enum><header>Financial
literacy program established</header>
<paragraph id="id3323EE84E9F548BA93D6C0F602DB8606"><enum>(1)</enum><header>Definition of
eligible entity</header><text>In this subsection, the term <term>eligible
entity</term> means a nonprofit or for-profit organization, or a consortium of
such organizations, with a demonstrated record of effectiveness in providing
financial literacy services to students at the secondary and postsecondary
level.</text>
</paragraph><paragraph id="ID2eb0e2e891ef4e53bf9b6f75d60ed367"><enum>(2)</enum><header>Program
established</header><text>From amounts appropriated under paragraph (6), the
Secretary shall award grants to eligible entities to enable the eligible
entities to increase the financial literacy of students who are enrolled or
will enroll in an institution of higher education, including providing
instruction to students on topics such as the understanding of loan terms and
conditions, the calculation of interest rates, refinancing of debt, debt
management, and future savings for education, health care and long-term care,
and retirement.</text>
</paragraph><paragraph id="IDaece6681d6584867b430b37dd9e93c02"><enum>(3)</enum><header>Grant period;
renewability</header><text>Each grant under this subsection shall be awarded
for one 5-year period, and may not be renewed.</text>
</paragraph><paragraph id="IDd47828c6588542ddbbd681058d8b8638"><enum>(4)</enum><header>Matching
requirements</header><text>Each eligible entity that receives a grant under
this subsection shall provide, from non-Federal sources, an amount (which may
be provided in cash or in kind) to carry out the activities supported by the
grant equal to 100 percent of the amount received under the grant.</text>
</paragraph><paragraph id="ID805f0f0b0e7941379fabd9f2801bf4d2"><enum>(5)</enum><header>Applications</header><text>An
eligible entity desiring a grant under this subsection shall submit an
application to the Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require. Such application shall
include the following:</text>
<subparagraph id="ID3b50d826e3814e44a9da02abe0cb98de"><enum>(A)</enum><text>A detailed
description of the eligible entity’s plans for providing financial literacy
activities and the students and schools the grant will target.</text>
</subparagraph><subparagraph id="IDc6265a81f1144fb190b20cbaa5e39088"><enum>(B)</enum><text>The eligible
entity’s plan for using the matching grant funds, including how the funds will
be used to provide financial literacy programs to students.</text>
</subparagraph><subparagraph id="IDb74a61cf5ae0422a8c96a19dc032870f"><enum>(C)</enum><text>A plan to ensure
the viability of the work of the eligible entity beyond the grant
period.</text>
</subparagraph><subparagraph id="ID415cc66dd8054ec9bc3b567c59967fbf"><enum>(D)</enum><text>A detailed
description of the activities that carry out this subsection and that are
conducted by the eligible entity at the time of the application, and how the
matching grant funds will assist the eligible entity with expanding and
enhancing such activities.</text>
</subparagraph><subparagraph id="ID84c5b7c35f43489b94b6ca7e253b5066"><enum>(E)</enum><text>A description of
the strategies that will be used to target activities under the grant to
students in secondary school and enrolled in institutions of higher education
who are historically underrepresented in institutions of higher education and
who may benefit from the activities of the eligible entity.</text>
</subparagraph></paragraph><paragraph id="ID0a7d6aad94a5474697a3c7aa9603a1cf"><enum>(6)</enum><header>Authorization
and appropriations</header><text>There are authorized to be appropriated, and
there are appropriated, $10,000,000 for each of the fiscal years 2008 and 2009
to carry out this subsection.</text>
</paragraph></subsection><subsection id="ID5862867dcfc944e29c4d51887175fb4e"><enum>(e)</enum><header>Secondary
school graduation and college enrollment program</header>
<paragraph id="ID556d6c3f0c3c45d09bddf9240290c3a9"><enum>(1)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="id1F91DC5D7AF24471BC175F90DF157C43"><enum>(A)</enum><header>Eligible local
educational agency</header>
<clause id="id66E1B68C68CB43C1AC357D738F40B382"><enum>(i)</enum><header>In
general</header><text>The term <term>eligible local educational agency</term>
means a local educational agency with a secondary school graduation rate of 70
percent or less—</text>
<subclause id="IDf11dadbfb95043fb9dd09fed66bbaec9"><enum>(I)</enum><text>in the aggregate;
or</text>
</subclause><subclause id="ID9b6f0cd9874d467cbe17386af9f051a7"><enum>(II)</enum><text>applicable to 2
or more subgroups of secondary school students served by the local educational
agency that are described in clause (ii).</text>
</subclause></clause><clause id="id8A897051DB394C268ECF743DD62840BE"><enum>(ii)</enum><header>Subgroups</header><text>A
subgroup referred to in clause (i)(II) is—</text>
<subclause id="ID4909be353ee24239b4f27458ac51b70c"><enum>(I)</enum><text>a subgroup of
economically disadvantaged students; or</text>
</subclause><subclause id="IDaf5e209aab7d47b789c2b35c9f4fd55a"><enum>(II)</enum><text>a subgroup of
students from a major racial or ethnic group.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7d9419b0c6bb404e87c2c29dd5897da1"><enum>(B)</enum><header display-inline="yes-display-inline">Eligible entity</header><text display-inline="yes-display-inline">The term <term>eligible entity</term> means
a consortium of a nonprofit organization and an institution of higher education
with a demonstrated record of effectiveness in raising secondary school
graduation rates and postsecondary enrollment rates.</text>
</subparagraph></paragraph><paragraph id="IDc8230444cccc40e2916688e82c71ece0"><enum>(2)</enum><header>Program
established</header><text>From amounts appropriated under paragraph (7), the
Secretary shall award grants to eligible entities to enable the eligible
entities to carry out activities that—</text>
<subparagraph id="id6129378F14A74FD3BF4A80C0DA22DEF4"><enum>(A)</enum><text>create models of
excellence for academically rigorous secondary schools, including early college
secondary schools;</text>
</subparagraph><subparagraph id="id6D4D8AE5F83F44808B24A5DA76CC8AB7"><enum>(B)</enum><text>increase
secondary school graduation rates;</text>
</subparagraph><subparagraph id="idCC615A34DF3541D6AFED60481B050329"><enum>(C)</enum><text>raise the rate of
students who enroll in an institution of higher education;</text>
</subparagraph><subparagraph id="idF1AA327575CB44069AB3EE63699D24B4"><enum>(D)</enum><text>improve
instruction and access to supports for struggling secondary school
students;</text>
</subparagraph><subparagraph id="id568AB32AE299488D9502591828099159"><enum>(E)</enum><text>create,
implement, and utilize early warning systems to help identify students at risk
of dropping out of secondary school; and</text>
</subparagraph><subparagraph id="idA3470FF712C1430AA3D880D68098360E"><enum>(F)</enum><text>improve
communication between parents, students, and schools concerning requirements
for secondary school graduation, postsecondary education enrollment, and
financial assistance available for attending postsecondary education.</text>
</subparagraph></paragraph><paragraph id="ID3f0294f654ca43049f3da60dcefb6c88"><enum>(3)</enum><header>Use of
funds</header><text>An eligible entity that receives a grant under this
subsection shall use the funds—</text>
<subparagraph id="IDbeae39d3904545779787f01effceefa0"><enum>(A)</enum><text>to implement a
college-preparatory curriculum for all students in a secondary school served by
the eligible local educational agency that is, at a minimum, aligned with a
rigorous secondary school program of study;</text>
</subparagraph><subparagraph id="ID6a3776d14b5d4bc6a7bdcb1c21fb4da6"><enum>(B)</enum><text>to implement
accelerated academic catch-up programs, for students who enter secondary school
not meeting the proficient levels of student academic achievement on the State
academic assessments for mathematics, reading or language arts, or science
under section 1111(b)(3) of the Elementary and Secondary Education Act of 1965,
that enable such students to meet the proficient levels of achievement and
remain on track to graduate from secondary school on time with a regular
secondary school diploma;</text>
</subparagraph><subparagraph id="ID709742e60d5444be917f26cfa55d5c1c"><enum>(C)</enum><text>to implement an
early warning system to quickly identify students at risk of dropping out of
secondary school, including systems that track student absenteeism; and</text>
</subparagraph><subparagraph id="ID7866db032e2c4230995ba7378df5bd2a"><enum>(D)</enum><text>to implement a
comprehensive postsecondary education guidance program that—</text>
<clause id="IDeaf0bd8793ad40edbcbe164bb70d0e0a"><enum>(i)</enum><text>will ensure that
all students are regularly notified throughout the students' time in secondary
school of secondary school graduation requirements and postsecondary education
entrance requirements; and</text>
</clause><clause id="ID401048f4310c41868c93b84340719281"><enum>(ii)</enum><text>provides
guidance and assistance to students in applying to an institution of higher
education and in applying for Federal financial assistance and other State,
local, and private financial assistance and scholarships.</text>
</clause></subparagraph></paragraph><paragraph id="IDc9dd88951b5a4868a6f961dd9fe40388"><enum>(4)</enum><header>Grant period;
renewability</header><text>Each grant under this subsection shall be awarded
for one 5-year period, and may not be renewed.</text>
</paragraph><paragraph id="IDe260a1fb08964fa78ed4e13dc94e413b"><enum>(5)</enum><header>Matching
requirements</header><text>Each eligible entity that receives a grant under
this subsection shall provide, from non-Federal sources, an amount (which may
be provided in cash or in-kind) to carry out the activities supported by the
grant equal to 100 percent of the amount received under the grant.</text>
</paragraph><paragraph id="ID0f5f577c98de4be690b94e751877b66a"><enum>(6)</enum><header>Applications</header><text>An
eligible entity desiring a grant under this subsection shall submit an
application to the Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.</text>
</paragraph><paragraph id="ID6c83429bac684956a52b469e236ad715"><enum>(7)</enum><header>Authorization
and appropriations</header><text>There are authorized to be appropriated, and
there are appropriated, $25,000,000 for each of the fiscal years 2008 and 2009
to carry out this
subsection.</text>
</paragraph></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</section>
July 10, 2007
Read twice and placed on the calendar