II 110th CONGRESS 1st Session S. 938 IN THE SENATE OF THE UNITED STATES March 20, 2007 Mr. Reed (for himself, Ms. Collins, Mr. Kennedy, Mrs. Murray, Mr. Dodd, and Mr. Sanders) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Higher Education Act of 1965 to expand college access and increase college persistence, and for other purposes.

1.

Short title

This Act may be cited as the Accessing College through Comprehensive Early Outreach and State Partnerships Act.

2.

Grants for access and persistence

(a)

Authorization of Appropriations

Section 415A(b) of the Higher Education Act of 1965 (20 U.S.C. 1070c(b)) is amended by striking paragraphs (1) and (2) and inserting the following: (1)

In general

There are authorized to be appropriated to carry out this subpart $500,000,000 for fiscal year 2008, and such sums as may be necessary for each of the 5 succeeding fiscal years. (2)

Reservation

For any fiscal year for which the amount appropriated under paragraph (1) exceeds $30,000,000, the excess amount shall be available to carry out section 415E. . (b)

Applications for Leveraging Educational Assistance Partnership Programs

Section 415C(b) of the Higher Education Act of 1965 (20 U.S.C. 1070c–2(b)) is amended— (1)in paragraph (2), by striking $5,000 and inserting $12,500; (2)in paragraph (9), by striking and after the semicolon; (3)in paragraph (10), by striking the period at the end and inserting ; and; and (4)by adding at the end the following: (11)provides notification to eligible students that such grants are— (A)Leveraging Educational Assistance Partnership Grants; and (B)funded by the Federal Government and the State. . (c)

Grants for Access and Persistence

Section 415E of the Higher Education Act of 1965 (20 U.S.C. 1070c–3a) is amended to read as follows:

415E.

Grants for access and persistence

(a)

Purpose

It is the purpose of this section to expand college access and increase college persistence by making allotments to States to enable the States to— (1)expand and enhance partnerships with institutions of higher education, early information and intervention, mentoring, or outreach programs, private corporations, philanthropic organizations, and other interested parties to carry out activities under this section and to provide coordination and cohesion among Federal, State, and local governmental and private efforts that provide financial assistance to help low-income students attend college; (2)provide need-based access and persistence grants to eligible low-income students; (3)provide early notification to low-income students of their eligibility for financial aid; and (4)encourage increased participation in early information and intervention, mentoring, or outreach programs. (b)

Allotments to States

(1)

In general

(A)

Authorization

From sums reserved under section 415A(b)(2) for each fiscal year, the Secretary shall make an allotment to each State that submits an application for an allotment in accordance with subsection (c) to enable the State to pay the Federal share of the cost of carrying out the activities under subsection (d). (B)

Determination of allotment

In making allotments under subparagraph (A), the Secretary shall consider the following: (i)

Continuation of award

If a State continues to meet the specifications established in its application under subsection (c), the Secretary shall make an allotment to such State that is not less than the allotment made to such State for the previous fiscal year. (ii)

Priority

The Secretary shall give priority in making allotments to States that meet the requirements under paragraph (2)(B)(ii). (2)

Federal share

(A)

In general

The Federal share of the cost of carrying out the activities under subsection (d) for any fiscal year shall not exceed 66.66 percent. (B)

Different percentages

The Federal share under this section shall be determined in accordance with the following: (i)If a State applies for an allotment under this section in partnership with any number of degree granting institutions of higher education in the State whose combined full-time enrollment represents less than a majority of all students attending institutions of higher education in the State, and philanthropic organizations that are located in, or that provide funding in, the State or private corporations that are located in, or that do business in, the State, then the Federal share of the cost of carrying out the activities under subsection (d) shall be equal to 57 percent. (ii)If a State applies for an allotment under this section in partnership with any number of degree granting institutions of higher education in the State whose combined full-time enrollment represents a majority of all students attending institutions of higher education in the State, philanthropic organizations that are located in, or that provide funding in, the State, and private corporations that are located in, or that do business in, the State, then the Federal share of the cost of carrying out the activities under subsection (d) shall be equal to 66.66 percent. (C)

Non-Federal share

(i)

In general

The non-Federal share under this section may be provided in cash or in kind, fairly evaluated. (ii)

In kind contribution

For the purpose of calculating the non-Federal share under this subparagraph, an in kind contribution is a non-cash contribution that— (I)has monetary value, such as the provision of— (aa)room and board; or (bb)transportation passes; and (II)helps a student meet the cost of attendance at an institution of higher education. (iii)

Effect on needs analysis

For the purpose of calculating a student's need in accordance with part F, an in kind contribution described in clause (ii) shall not be considered an asset or income of the student or the student's parent. (c)

Application for Allotment

(1)

In general

(A)

Submission

A State that desires to receive an allotment under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. (B)

Content

An application submitted under subparagraph (A) shall include the following: (i)A description of the State’s plan for using the allotted funds. (ii)Assurances that the State will provide matching funds, from State, institutional, philanthropic, or private funds, of not less than 33.33 percent of the cost of carrying out the activities under subsection (d). Matching funds from philanthropic organizations used to provide early information and intervention, mentoring, or outreach programs may be in cash or in kind. The State shall specify the methods by which matching funds will be paid and include provisions designed to ensure that funds provided under this section will be used to supplement, and not supplant, Federal and non-Federal funds available for carrying out the activities under this title. A State that uses non-Federal funds to create or expand existing partnerships with nonprofit organizations or community-based organizations in which such organizations match State funds for student scholarships, may apply such matching funds from such organizations toward fulfilling the State’s matching obligation under this clause. (iii)Assurances that early information and intervention, mentoring, or outreach programs exist within the State or that there is a plan to make such programs widely available. (iv)A description of the organizational structure that the State has in place to administer the activities under subsection (d). (v)A description of the steps the State will take to ensure students who receive grants under this section persist to degree completion. (vi)Assurances that the State has a method in place, such as acceptance of the automatic zero expected family contribution determination described in section 479(c), to identify eligible low-income students and award State grant aid to such students. (vii)Assurances that the State will provide notification to eligible low-income students that grants under this section are— (I)Leveraging Educational Assistance Partnership Grants; and (II)funded by the Federal Government and the State. (2)

State agency

The State agency that submits an application for a State under section 415C(a) shall be the same State agency that submits an application under paragraph (1) for such State. (3)

Partnership

In applying for an allotment under this section, the State agency shall apply for the allotment in partnership with— (A)not less than 1 public and 1 private degree granting institution of higher education that are located in the State; (B)new or existing early information and intervention, mentoring, or outreach programs located in the State; and (C)not less than 1— (i)philanthropic organization located in, or that provides funding in, the State; or (ii)private corporation located in, or that does business in, the State. (4)

Roles of partners

(A)

State agency

A State agency that is in a partnership receiving an allotment under this section— (i)shall— (I)serve as the primary administrative unit for the partnership; (II)provide or coordinate matching funds, and coordinate activities among partners; (III)encourage each institution of higher education in the State to participate in the partnership; (IV)make determinations and early notifications of assistance as described under subsection (d)(2); and (V)annually report to the Secretary on the partnership’s progress in meeting the purpose of this section; and (ii)may provide early information and intervention, mentoring, or outreach programs. (B)

Degree granting institutions of higher education

A degree granting institution of higher education that is in a partnership receiving an allotment under this section— (i)shall— (I)recruit and admit participating qualified students and provide such additional institutional grant aid to participating students as agreed to with the State agency; (II)provide support services to students who receive an access and persistence grant under this section and are enrolled at such institution; and (III)assist the State in the identification of eligible students and the dissemination of early notifications of assistance as agreed to with the State agency; and (ii)may provide funding for early information and intervention, mentoring, or outreach programs or provide such services directly. (C)

Programs

An early information and intervention, mentoring, or outreach program that is in a partnership receiving an allotment under this section shall provide direct services, support, and information to participating students. (D)

Philanthropic organization or private corporation

A philanthropic organization or private corporation that is in a partnership receiving an allotment under this section shall provide funds for access and persistence grants for participating students, or provide funds or support for early information and intervention, mentoring, or outreach programs. (d)

Authorized Activities

(1)

In general

(A)

Establishment of partnership

Each State receiving an allotment under this section shall use the funds to establish a partnership to award access and persistence grants to eligible low-income students in order to increase the amount of financial assistance such students receive under this subpart for undergraduate education expenses. (B)

Amount

(i)

Partnerships with institutions serving less than a majority of students in the state

(I)

In general

In the case where a State receiving an allotment under this section is in a partnership described in subsection (b)(2)(B)(i), the amount of an access and persistence grant awarded by such State shall be not less than the amount that is equal to the average undergraduate tuition and mandatory fees at 4-year public institutions of higher education in the State where the student resides (less any other Federal or State sponsored grant amount, college work study amount, and scholarship amount received by the student) and such amount shall be used toward the cost of attendance at an institution of higher education, located in the State, that is a partner in the partnership. (II)

Cost of attendance

A State that has a program, apart from the partnership under this section, of providing eligible low-income students with grants that are equal to the average undergraduate tuition and mandatory fees at 4-year public institutions of higher education in the State, may increase the amount of access and persistence grants awarded by such State up to an amount that is equal to the average cost of attendance at 4-year public institutions of higher education in the State (less any other Federal or State sponsored grant amount, college work study amount, and scholarship amount received by the student). (ii)

Partnership with institutions serving the majority of students in the state

In the case where a State receiving an allotment under this section is in a partnership described in subsection (b)(2)(B)(ii), the amount of an access and persistence grant awarded by such State shall be not less than the average cost of attendance at 4-year public institutions of higher education in the State where the student resides (less any other Federal or State sponsored grant amount, college work study amount, and scholarship amount received by the student) and such amount shall be used by the student to attend an institution of higher education, located in the State, that is a partner in the partnership. (2)

Early notification

(A)

In general

Each State receiving an allotment under this section shall annually notify low-income students, such as students who are eligible to receive a free lunch under the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.), in grade 7 through grade 12 in the State of their potential eligibility for student financial assistance, including an access and persistence grant, to attend an institution of higher education. (B)

Content of notice

The notification under subparagraph (A)— (i)shall include— (I)information about early information and intervention, mentoring, or outreach programs available to the student; (II)information that a student’s candidacy for an access and persistence grant is enhanced through participation in an early information and intervention, mentoring, or outreach program; (III)an explanation that student and family eligibility and participation in other Federal means-tested programs may indicate eligibility for an access and persistence grant and other student aid programs; (IV)a nonbinding estimation of the total amount of financial aid a low-income student with a similar income level may expect to receive, including an estimation of the amount of an access and persistence grant and an estimation of the amount of grants, loans, and all other available types of aid from the major Federal and State financial aid programs; (V)an explanation that in order to be eligible for an access and persistence grant, at a minimum, a student shall meet the requirement under paragraph (3), graduate from secondary school, and enroll at an institution of higher education that is a partner in the partnership; (VI)information on any additional requirements (such as a student pledge detailing student responsibilities) that the State may impose for receipt of an access and persistence grant under this section; and (VII)instructions on how to apply for an access and persistence grant and an explanation that a student is required to file a Free Application for Federal Student Aid authorized under section 483(a) to be eligible for such grant and assistance from other Federal and State financial aid programs; and (ii)may include a disclaimer that access and persistence grant awards are contingent upon— (I)a determination of the student’s financial eligibility at the time of the student’s enrollment at an institution of higher education that is a partner in the partnership; (II)annual Federal and State appropriations; and (III)other aid received by the student at the time of the student’s enrollment at an institution of higher education that is a partner in the partnership. (3)

Eligibility

In determining which students are eligible to receive access and persistence grants, the State shall ensure that each such student meets not less than 1 of the following: (A)Meets not less than 2 of the following criteria, with priority given to students meeting all of the following criteria: (i)Has an expected family contribution equal to zero (as described in section 479) or a comparable alternative based upon the State’s approved criteria in section 415C(b)(4). (ii)Has qualified for a free lunch, or at the State’s discretion a reduced price lunch, under the school lunch program established under the Richard B. Russell National School Lunch Act. (iii)Qualifies for the State’s maximum undergraduate award, as authorized under section 415C(b). (iv)Is participating in, or has participated in, a Federal, State, institutional, or community early information and intervention, mentoring, or outreach program, as recognized by the State agency administering activities under this section. (B)Is receiving, or has received, an access and persistence grant under this section, in accordance with paragraph (5). (4)

Grant award

Once a student, including those students who have received early notification under paragraph (2) from the State, applies for admission to an institution that is a partner in the partnership, files a Free Application for Federal Student Aid and any related existing State form, and is determined eligible by the State under paragraph (3), the State shall— (A)issue the student a preliminary access and persistence grant award certificate with tentative award amounts; and (B)inform the student that payment of the access and persistence grant award amounts is subject to certification of enrollment and award eligibility by the institution of higher education. (5)

Duration of award

An eligible student that receives an access and persistence grant under this section shall receive such grant award for each year of such student’s undergraduate education in which the student remains eligible for assistance under this title, including pursuant to section 484(c), and remains financially eligible as determined by the State, except that the State may impose reasonable time limits to baccalaureate degree completion. (e)

Administrative Cost Allowance

A State that receives an allotment under this section may reserve not more than 3.5 percent of the funds made available annually through the allotment for State administrative functions required to carry out this section. (f)

Statutory and Regulatory Relief for Institutions of Higher Education

The Secretary may grant, upon the request of an institution of higher education that is in a partnership described in subsection (b)(2)(B)(ii) and that receives an allotment under this section, a waiver for such institution from statutory or regulatory requirements that inhibit the ability of the institution to successfully and efficiently participate in the activities of the partnership. (g)

Applicability Rule

The provisions of this subpart which are not inconsistent with this section shall apply to the program authorized by this section. (h)

Maintenance of Effort Requirement

Each State receiving an allotment under this section for a fiscal year shall provide the Secretary an assurance that the aggregate amount expended per student or the aggregate expenditures by the State, from funds derived from non-Federal sources, for the authorized activities described in subsection (d) for the preceding fiscal year were not less than the amount expended per student or the aggregate expenditure by the State for the activities for the second preceding fiscal year. (i)

Special Rule

Notwithstanding subsection (h), for purposes of determining a State’s share of the cost of the authorized activities described in subsection (d), the State shall consider only those expenditures from non-Federal sources that exceed its total expenditures for need-based grants, scholarships, and work-study assistance for fiscal year 1999 (including any such assistance provided under this subpart). (j)

Reports

Not later than 3 years after the date of enactment of the Accessing College through Comprehensive Early Outreach and State Partnerships Act, and annually thereafter, the Secretary shall submit a report describing the activities and the impact of the partnerships under this section to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and Labor of the House of Representatives.

. (d)

Continuation and Transition

During the 2-year period commencing on the date of enactment of this Act, the Secretary shall continue to award grants under section 415E of the Higher Education Act of 1965 (20 U.S.C. 1070c–3a), as such section existed on the day before the date of enactment of this Act, to States that choose to apply for grants under such predecessor section. (e)

Implementation and Evaluation

Section 491(j) of the Higher Education Act of 1965 (20 U.S.C. 1098(j)) is amended— (1)in paragraph (4), by striking and after the semicolon; (2)by redesignating paragraph (5) as paragraph (6); and (3)by inserting after paragraph (4) (as amended by paragraph (1)) the following: (5)not later than 6 months after the date of enactment of the Accessing College through Comprehensive Early Outreach and State Partnerships Act, advise the Secretary on means to implement the activities under section 415E, and the Advisory Committee shall continue to monitor, evaluate, and make recommendations on the progress of partnerships that receive allotments under such section; and .