[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2984 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 2984

To amend the Higher Education Act of 1965 to provide greater access to 
   higher education for America's students, to eliminate educational 
 barriers for participation in a public service career, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2018

  Mr. Cardin 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 provide greater access to 
   higher education for America's students, to eliminate educational 
 barriers for participation in a public service career, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening American Communities 
Act of 2018''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to provide greater access to higher 
education for America's students, to eliminate educational barriers for 
participation in a public service career by providing an opportunity 
for potential public servants to obtain an undergraduate education, and 
to establish an accelerated form of the public service loan forgiveness 
program for more immediate loan forgiveness for existing public 
servants holding Federal Direct Stafford Loans, Federal Direct 
Unsubsidized Stafford Loans, and Federal Direct PLUS Loans.

                   TITLE I--AMERICA'S COLLEGE PROMISE

SEC. 101. SHORT TITLE.

    This title may be cited as the ``America's College Promise Act of 
2018''.

SEC. 102. PURPOSE.

    The purpose of this title is to help all individuals of the United 
States earn the education and skills the individuals need--
            (1) by making 2 years of community college free, through a 
        new partnership with States and Indian Tribes to help the 
        States and Indian Tribes--
                    (A) waive resident community college tuition and 
                fees for eligible students;
                    (B) maintain State and Indian Tribe support for 
                higher education; and
                    (C) promote key reforms to improve student 
                outcomes; and
            (2) through a new partnership with minority-serving 
        institutions to--
                    (A) encourage eligible students to enroll and 
                successfully complete a baccalaureate degree at 
                participating institutions; and
                    (B) promote key reforms to improve student 
                outcomes.

    Subtitle A--STATE AND INDIAN TRIBE GRANTS FOR COMMUNITY COLLEGES

SEC. 111. IN GENERAL.

    From amounts appropriated under section 117(a) for any fiscal year, 
the Secretary shall award grants to eligible States and Indian Tribes 
to pay the Federal share of expenditures needed to carry out the 
activities and services described in section 115.

SEC. 112. FEDERAL SHARE; NON-FEDERAL SHARE.

    (a) Federal Share.--
            (1) Formula.--Subject to paragraph (2), the Federal share 
        of a grant under this subtitle shall be based on a formula, 
        determined by the Secretary, that--
                    (A) accounts for the State or Indian Tribe's share 
                of eligible students; and
                    (B) provides, for each eligible student in the 
                State or Indian Tribe, a per-student amount that is--
                            (i) not less than 300 percent of the per-
                        student amount of the State or Indian Tribe 
                        share, determined under subsection (b), subject 
                        to clause (ii); and
                            (ii) not greater than 75 percent of--
                                    (I) for the 2018-2019 award year, 
                                the average resident community college 
                                tuition and fees per student in all 
                                States for the most recent year for 
                                which data are available; and
                                    (II) for each subsequent award 
                                year, the average resident community 
                                college tuition and fees per student in 
                                all States calculated under this 
                                subclause for the preceding year, 
                                increased by the lesser of--
                                            (aa) the percentage by 
                                        which the average resident 
                                        community college tuition and 
                                        fees per student in all States 
                                        for the most recent year for 
                                        which data are available 
                                        increased as compared to such 
                                        average for the preceding year; 
                                        or
                                            (bb) 3 percent.
            (2) Exception for certain indian tribes.--In any case in 
        which not less than 75 percent of the students at the community 
        colleges operated or controlled by an Indian Tribe are low-
        income students, the amount of the Federal share for such 
        Indian Tribe shall be not less than 95 percent of the total 
        amount needed to waive tuition and fees for all eligible 
        students enrolled in such community colleges.
    (b) State or Tribal Share.--
            (1) Formula.--
                    (A) In general.--The State or Tribal share of a 
                grant under this subtitle for each fiscal year shall be 
                the amount needed to pay 25 percent of the average 
                community college resident tuition and fees per student 
                in all States in the 2018-2019 award year for all 
                eligible students in the State or Indian Tribe, 
                respectively, for such fiscal year, except as provided 
                in subparagraph (B).
                    (B) Exception for certain indian tribes.--In a case 
                in which not less than 5 percent of the students at the 
                community colleges operated or controlled by an Indian 
                Tribe are low-income students, the amount of such 
                Indian Tribe's tribal share shall not exceed 5 percent 
                of the total amount needed to waive tuition and fees 
                for all eligible students enrolled in such community 
                colleges.
            (2) Need-based aid.--A State or Indian Tribe may include 
        any need-based financial aid provided through State or Tribal 
        funds to eligible students as part of the State or Tribal 
        share.
            (3) No in-kind contributions.--A State or Indian Tribe 
        shall not include in-kind contributions for purposes of the 
        State or Tribal share described in paragraph (1).

SEC. 113. ELIGIBILITY.

    To be eligible for a grant under this subtitle, a State or Indian 
Tribe shall agree to waive community college resident tuition and fees 
for all eligible students for each year of the grant.

SEC. 114. APPLICATIONS.

    (a) Submission.--For each fiscal year for which a State or Indian 
Tribe desires a grant under this subtitle, an application shall be 
submitted to the Secretary at such time, in such manner, and containing 
such information as the Secretary may require. Such application shall 
be submitted by--
            (1) in the case of a State, the Governor, the State agency 
        with jurisdiction over higher education, or another agency 
        designated by the Governor to administer the program under this 
        subtitle; or
            (2) in the case of an Indian Tribe, the governing body of 
        such Tribe.
    (b) Contents.--Each State or Indian Tribe application shall 
include, at a minimum--
            (1) an estimate of the number of eligible students in the 
        State or Indian Tribe and the cost of waiving community college 
        resident tuition and fees for all eligible students for each 
        fiscal year covered by the grant, with annual increases of an 
        amount that shall not exceed 3 percent of the prior year's 
        average resident community college tuition and fees;
            (2) an assurance that all community colleges in the State 
        or under the jurisdiction of the Indian Tribe, respectively, 
        will waive resident tuition and fees for eligible students in 
        programs that are--
                    (A) academic programs with credits that can fully 
                transfer via articulation agreement toward a 
                baccalaureate degree or postbaccalaureate degree at any 
                public institution of higher education in the State; or
                    (B) occupational skills training programs that lead 
                to a recognized postsecondary credential that is in an 
                in-demand industry sector or occupation in the State;
            (3) a description of the promising and evidence-based 
        institutional reforms and innovative practices to improve 
        student outcomes, including completion or transfer rates, that 
        have been or will be adopted by the participating community 
        colleges, such as--
                    (A) providing comprehensive academic and student 
                support services, including mentoring and advising, 
                especially for low-income, first-generation, adult, and 
                other underrepresented students;
                    (B) providing accelerated learning opportunities, 
                such as dual or concurrent enrollment programs, 
                including early college high school programs;
                    (C) advancing competency-based education;
                    (D) strengthening remedial education, especially 
                for low-income, first-generation, adult and other 
                underrepresented students;
                    (E) implementing course redesigns of high-
                enrollment courses to improve student outcomes and 
                reduce cost; or
                    (F) utilizing career pathways or degree pathways;
            (4) a description of how the State or Indian Tribe will 
        promote alignment between its public secondary school and 
        postsecondary education systems, including between 2-year and 
        4-year public institutions of higher education and with 
        minority-serving institutions described in section 371(a) of 
        the Higher Education Act of 1965 (20 U.S.C. 1067q(a)), to 
        expand awareness of and access to postsecondary education, 
        reduce the need for remediation and repeated coursework, and 
        improve student outcomes;
            (5) a description of how the State or Indian Tribe will 
        ensure that programs leading to a recognized postsecondary 
        credential meet the quality criteria established by the State 
        under section 123(a) of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3153(a)) or other quality criteria 
        determined appropriate by the State or Indian Tribe;
            (6) an assurance that all participating community colleges 
        in the State or under the authority of the Indian Tribe have 
        entered into program participation agreements under section 487 
        of the Higher Education Act of 1965 (20 U.S.C. 1094); and
            (7) an assurance that, for each year of the grant, the 
        State or Indian Tribe will notify each eligible student of the 
        student's remaining eligibility for assistance under this 
        subtitle.

SEC. 115. ALLOWABLE USES OF FUNDS.

    (a) In General.--A State or Indian Tribe shall use a grant under 
this subtitle only to provide funds to participating community colleges 
to waive resident tuition and fees for eligible students who are 
enrolled in--
            (1) academic programs with credits that can fully transfer 
        via articulation agreement toward a baccalaureate degree or 
        postbaccalaureate degree at any public institution of higher 
        education in the State; or
            (2) occupational skills training programs that lead to a 
        recognized postsecondary credential that is in an in-demand 
        industry sector or occupation in the State.
    (b) Additional Uses.--If a State or Indian Tribe demonstrates to 
the Secretary that it has grant funds remaining after meeting the 
demand for activities described in subsection (a), the State or Indian 
Tribe may use those funds to carry out one or more of the following:
            (1) Expanding the waiver of resident tuition and fees at 
        community college to students who are returning students or 
        otherwise not enrolling in postsecondary education for the 
        first time, and who meet the student eligibility requirements 
        of clauses (i) through (v) of section 116(5)(A).
            (2) Expanding the scope and capacity of high-quality 
        academic and occupational skills training programs at community 
        colleges.
            (3) Improving postsecondary education readiness in the 
        State or Indian Tribe, through outreach and early intervention.
            (4) Expanding access to dual or concurrent enrollment 
        programs, including early college high school programs.
            (5) Improving affordability at 4-year public and private, 
        nonprofit institutions of higher education.
    (c) Use of Funds for Administrative Purposes.--A State or Indian 
Tribe that receives a grant under this subtitle may not use any funds 
provided under this subtitle for administrative purposes relating to 
the grant under this subtitle.
    (d) Maintenance of Effort Required.--
            (1) In general.--A State or Indian Tribe that receives a 
        grant under this subtitle shall provide, with respect to a 
        fiscal year--
                    (A) for public and private, nonprofit institutions 
                of higher education in such State or Indian tribe an 
                amount that is equal to or greater than the amount 
                provided for non-capital and non-direct research and 
                development expenses or costs by such State or Indian 
                tribe to such institutions of higher education during 
                the preceding fiscal year for which satisfactory data 
                are available; and
                    (B) for student financial aid for paying costs 
                associated with public and private, nonprofit 
                postsecondary education in such State or Indian tribe 
                an amount that is equal to or greater than the amount 
                provided for student financial aid for paying costs 
                associated with public and private, nonprofit 
                postsecondary education by such State or Indian tribe 
                in the preceding fiscal year for which satisfactory 
                data are available.
            (2) Adjustments for biennial appropriations.--The Secretary 
        shall take into consideration any adjustments to the 
        calculations under paragraph (1) that may be required to 
        accurately reflect funding levels in States or Indian tribes 
        with biennial appropriation cycles.
            (3) Waiver.--The Secretary shall waive the requirements of 
        paragraph (1) if the Secretary determines that such a waiver 
        would be equitable due to exceptional or uncontrollable 
        circumstances, such as a natural disaster or a precipitous and 
        unforeseen decline in the financial resources of a State or 
        Indian tribe, as appropriate.
            (4) Violation of maintenance of effort.--Notwithstanding 
        any other provision of law, the Secretary shall withhold from 
        any State or Indian tribe that violates paragraph (1) and does 
        not receive a waiver pursuant to paragraph (3) any amount that 
        would otherwise be available to the State or Indian tribe under 
        this Act until such State or Indian tribe has made significant 
        efforts to correct such violation.
    (e) Annual Report.--
            (1) In general.--A State or Indian Tribe receiving a grant 
        under this subtitle shall submit an annual report to the 
        Secretary describing the uses of grant funds under this 
        subtitle, the progress made in fulfilling the requirements of 
        the grant, and rates of graduation, transfer and attainment of 
        recognized postsecondary credentials at participating community 
        colleges, and including any other information as the Secretary 
        may require.
            (2) Inclusion in hea annual report.--At the discretion of 
        the Secretary, the information required in the report under 
        paragraph (1) may be included in an annual report on higher 
        education required under the Higher Education Act of 1965 (20 
        U.S.C. 1001 et seq.).
    (f) Reporting by Secretary.--The Secretary annually shall--
            (1) compile and analyze the information described in 
        subsection (e); and
            (2) prepare and submit a report to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Education and the Workforce of the House of Representatives 
        containing the analysis described in paragraph (1) and an 
        identification of State and Indian Tribe best practices for 
        achieving the purpose of this subtitle.
    (g) Technical Assistance.--The Secretary shall provide technical 
assistance to eligible States and Indian Tribes concerning best 
practices regarding the promising and evidence-based institutional 
reforms and innovative practices to improve student outcomes as 
described in section 114(b)(3) and shall disseminate such best 
practices among the States and Indian Tribes.
    (h) Continuation of Funding.--
            (1) In general.--A State or Indian Tribe receiving a grant 
        under this subtitle for a fiscal year may continue to receive 
        funding under this title for future fiscal years conditioned on 
        the availability of budget authority and on meeting the 
        requirements of the grant, as determined by the Secretary.
            (2) Discontinuation.--The Secretary may discontinue funding 
        of the Federal share of a grant under this subtitle if the 
        State or Indian Tribe has violated the terms of the grant or is 
        not making adequate progress in implementing the reforms 
        described in the application submitted under section 114.

SEC. 116. DEFINITIONS.

    In this subtitle:
            (1) Career pathway.--The term ``career pathway'' has the 
        meaning given the term in section 3 of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3102).
            (2) Community college.--The term ``community college'' 
        means a public institution of higher education at which the 
        highest degree that is predominantly awarded to students is an 
        associate's degree, including 2-year tribally controlled 
        colleges under section 316 of the Higher Education Act of 1965 
        (20 U.S.C. 1059c) and public 2-year State institutions of 
        higher education.
            (3) Dual or concurrent enrollment program.--The term ``dual 
        or concurrent enrollment program'' has the meaning given the 
        term in section 8101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7801).
            (4) Early college high school.--The term ``early college 
        high school'' has the meaning given the term in section 8101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (5) Eligible student.--
                    (A) Definition.--The term ``eligible student'' 
                means a student who--
                            (i)(I) enrolls in a community college after 
                        the date of enactment of this Act; or
                            (II) is enrolled in a community college as 
                        of the date of enactment of this Act;
                            (ii) attends the community college on not 
                        less than a half-time basis;
                            (iii) is maintaining satisfactory progress, 
                        as defined in section 484(c) of the Higher 
                        Education Act of 1965 (20 U.S.C. 1091(c)), in 
                        the student's course of study;
                            (iv) qualifies for resident tuition, as 
                        determined by the State or Indian Tribe; and
                            (v) is enrolled in an eligible program 
                        described in section 114(b)(2).
                    (B) Special rule.--An otherwise eligible student 
                shall lose eligibility 3 calendar years after first 
                receiving benefits under this subtitle.
            (6) In-demand industry sector or occupation.--The term 
        ``in-demand industry sector or occupation'' has the meaning 
        given the term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (7) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term (without regard to capitalization) in 
        section 102(2) of the Federally Recognized Indian Tribe List 
        Act of 1994 (25 U.S.C. 5130(2)).
            (8) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (9) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' has the meaning as 
        described in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (11) State.--The term ``State'' has the meaning given the 
        term in section 103 of the Higher Education Act of 1965 (20 
        U.S.C. 1003).

SEC. 117. APPROPRIATIONS.

    (a) Authorization and Appropriations.--For the purpose of making 
grants under this subtitle, there are authorized to be appropriated, 
and there are appropriated--
            (1) $1,515,150,000 for fiscal year 2018;
            (2) $3,352,200,000 for fiscal year 2019;
            (3) $4,277,940,000 for fiscal year 2020;
            (4) $5,988,450,000 for fiscal year 2021;
            (5) $7,837,710,000 for fiscal year 2022;
            (6) $8,974,350,000 for fiscal year 2023;
            (7) $11,302,020,000 for fiscal year 2024;
            (8) $14,451,090,000 for fiscal year 2025;
            (9) $15,077,130,000 for fiscal year 2026; and
            (10) $15,729,810,000 for fiscal year 2027 and each 
        succeeding fiscal year.
    (b) Availability.--Funds appropriated under subsection (a) shall 
remain available to the Secretary until expended.
    (c) Insufficient Funds.--If the amount appropriated under 
subsection (a) for a fiscal year is not sufficient to award each 
participating State and Indian Tribe a grant under this subtitle that 
is equal to the minimum amount of the Federal share described in 
section 112(a), the Secretary may ratably reduce the amount of each 
such grant or take other actions necessary to ensure an equitable 
distribution of such amount.

  Subtitle B--GRANTS TO HISTORICALLY BLACK COLLEGES AND UNIVERSITIES, 
   HISPANIC-SERVING INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN 
      PACIFIC ISLANDER-SERVING INSTITUTIONS, TRIBAL COLLEGES AND 
   UNIVERSITIES, ALASKA NATIVE-SERVING INSTITUTIONS, NATIVE HAWAIIAN-
  SERVING INSTITUTIONS, PREDOMINANTLY BLACK INSTITUTIONS, AND NATIVE 
                AMERICAN-SERVING NONTRIBAL INSTITUTIONS

SEC. 121. PATHWAYS TO STUDENT SUCCESS FOR HISTORICALLY BLACK COLLEGES 
              AND UNIVERSITIES.

    (a) In General.--From amounts appropriated under section 124(a) for 
any fiscal year, the Secretary shall award grants to participating 4-
year historically Black colleges or universities that meet the 
requirements of subsection (b) to--
            (1) encourage students to enroll and successfully complete 
        a bachelor's degree at institutions eligible under subsection 
        (b);
            (2) provide incentives to community college students to 
        transfer to institutions eligible under subsection (b) through 
        strong transfer pathways to complete a bachelor's degree 
        program; and
            (3) support institutions eligible under subsection (b) to 
        better serve new and existing students by engaging in reforms 
        and innovations designed to improve completion rates and other 
        student outcomes.
    (b) Eligibility.--To be eligible to receive a grant under the 
program under this section, an institution shall be a historically 
Black college or university that--
            (1) has a student body of which not less than 35 percent 
        are low-income students;
            (2) commits to maintaining or adopting and implementing 
        promising and evidence-based institutional reforms and 
        innovative practices to improve the completion rates and other 
        student outcomes, such as--
                    (A) providing comprehensive academic and student 
                support services, including mentoring and advising;
                    (B) providing accelerated learning opportunities 
                and degree pathways, such as dual or concurrent 
                enrollment programs and pathways to graduate and 
                professional degree programs;
                    (C) advancing distance and competency-based 
                education;
                    (D) partnering with employers, industry, nonprofit 
                associations, and other groups to provide opportunities 
                to advance learning outside the classroom, including 
                work-based learning opportunities such as internships 
                or apprenticeships or programs designed to improve 
                inter-cultural development and personal growth, such as 
                foreign exchange and study abroad programs;
                    (E) reforming remedial education, especially for 
                low-income students, first generation college students, 
                adult students, and other underrepresented students; or
                    (F) implementing course redesigns of high-
                enrollment courses to improve student outcomes and 
                reduce cost;
            (3) sets performance goals for improving student outcomes 
        for the duration of the grant; and
            (4) if receiving a grant for transfer students, has 
        articulation agreements with community colleges at the 
        national, State, or local level to ensure that community 
        college credits can fully transfer to the institution.
    (c) Grant Amount.--
            (1) Initial amount.--For the first year that an eligible 
        institution, as described in subsection (b), participates in 
        the grant program under this section and subject to paragraph 
        (3), such eligible institution shall receive a grant in an 
        amount based on the product of--
                    (A) the actual cost of tuition and fees at the 
                eligible institution in such year (referred to in this 
                section as the per-student rebate); multiplied by
                    (B) the number of eligible students enrolled in the 
                eligible institution for the preceding year.
            (2) Subsequent increases.--For each succeeding year after 
        the first year of the grant program under this section, each 
        eligible institution, as described in subsection (b), that 
        participate in the grant program shall receive a grant in the 
        amount determined under paragraph (1) for such year, except 
        that in no case shall the amount of the per-student rebate for 
        an eligible institution increase by more than 3 percent as 
        compared to the amount of such rebate for the preceding year.
            (3) Limitations.--
                    (A) Maximum per-student rebate.--No eligible 
                institution, as described in subsection (b), 
                participating in the grant program under this section 
                shall receive a per-student rebate amount for any year 
                that is greater than the national average of annual 
                tuition and fees at public 4-year institutions of 
                higher education for such year, as determined by the 
                Secretary.
                    (B) First year tuition and fees.--During the first 
                year of participation in the grant program under this 
                section, no eligible institution, as described in 
                subsection (b), may increase tuition and fees at a rate 
                greater than any annual increase at the eligible 
                institution in the previous 5 years.
    (d) Application.--An eligible institution, as described in 
subsection (b), that desires a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    (e) Use of Funds.--Funds awarded under this section to an eligible 
institution, as described in subsection (b), shall be used to waive or 
significantly reduce tuition and fees for eligible students in an 
amount of not more than up to the annual per-student rebate amount for 
each student, for not more than the first 60 credits an eligible 
student enrolls in the eligible institution.

SEC. 122. PATHWAYS TO STUDENT SUCCESS FOR HISPANIC-SERVING 
              INSTITUTIONS, ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
              ISLANDER-SERVING INSTITUTIONS, TRIBAL COLLEGES AND 
              UNIVERSITIES, ALASKA NATIVE-SERVING INSTITUTIONS, NATIVE 
              HAWAIIAN-SERVING INSTITUTIONS, PREDOMINANTLY BLACK 
              INSTITUTIONS, AND NATIVE AMERICAN-SERVING NONTRIBAL 
              INSTITUTIONS.

    (a) In General.--From amounts appropriated under section 124(a) for 
any fiscal year, the Secretary shall award grants to eligible 4-year 
minority-serving institutions to--
            (1) encourage students to enroll and successfully complete 
        a bachelor's degree at institutions eligible under subsection 
        (b);
            (2) provide incentives to community college students to 
        transfer to institutions eligible under subsection (b) through 
        strong transfer pathways to complete a bachelor's degree 
        program; and
            (3) support institutions eligible under subsection (b) to 
        better serve new and existing students by engaging in reforms 
        and innovations designed to improve completion rates and other 
        student outcomes.
    (b) Institutional Eligibility.--To be eligible to participate and 
receive a grant under this section, an institution shall be a minority-
serving institution with respect to which the majority of degrees 
awarded are baccalaureate degrees or higher that--
            (1) has a student body of which not less than 35 percent 
        are low-income students;
            (2) commits to maintaining or adopting and implementing 
        promising and evidence-based institutional reforms and 
        innovative practices to improve the completion rates and other 
        student outcomes, such as--
                    (A) providing comprehensive academic and student 
                support services, including mentoring and advising;
                    (B) providing accelerated learning opportunities 
                and degree pathways, such as dual or concurrent 
                enrollment programs and pathways to graduate and 
                professional degree programs;
                    (C) advancing distance and competency-based 
                education;
                    (D) partnering with employers, industry, nonprofit 
                associations, and other groups to provide opportunities 
                to advance learning outside the classroom, including 
                work-based learning opportunities such as internships 
                or apprenticeships or programs designed to improve 
                inter-cultural development and personal growth, such as 
                foreign exchange and study abroad programs;
                    (E) reforming remedial education, especially for 
                low-income students, first generation college students, 
                adult students, and other underrepresented students; 
                and
                    (F) implementing course redesigns of high-
                enrollment courses to improve student outcomes and 
                reduce cost;
            (3) sets performance goals for improving student outcomes 
        for the duration of the grant; and
            (4) if receiving a grant for transfer students, has 
        articulation agreements with community colleges at the 
        national, State, or local levels to ensure that community 
        college credits can fully transfer to the institution.
    (c) Grant Amount.--
            (1) Initial amount.--For the first year that an eligible 
        institution, as described in subsection (b), participates in 
        the grant program under this section and subject to paragraph 
        (3), such eligible institution shall receive a grant in an 
        amount based on the product of--
                    (A) the actual cost of tuition and fees at the 
                eligible institution in such year (referred to in this 
                section as the per-student rebate); multiplied by
                    (B) the number of eligible students enrolled in the 
                eligible institution for the preceding year.
            (2) Subsequent increases.--For each succeeding year after 
        the first year of the grant program under this section, each 
        eligible institution, as described in subsection (b), that 
        participate in the grant program shall receive a grant in the 
        amount determined under paragraph (1) for such year, except 
        that in no case shall the amount of the per-student rebate 
        increase by more than 3 percent as compared to the amount of 
        such rebate for the preceding year.
            (3) Limitations.--
                    (A) Maximum per-student rebate.--No eligible 
                institution, as described in subsection (b), 
                participating in the grant program under this section 
                shall receive a per-student rebate amount for a grant 
                year greater than the national average of public 4-year 
                institutional tuition and fees, as determined by the 
                Secretary.
                    (B) First year tuition and fees.--During the first 
                year of participation in the grant program under this 
                section, no eligible institution, as described in 
                subsection (b), may increase tuition and fees at a rate 
                greater than any annual increase made by the 
                institution in the previous 5 years.
    (d) Application.--An eligible institution, as described in 
subsection (b), shall submit an application to the Secretary at such 
time, in such a manner, and containing such information as determined 
by the Secretary.
    (e) Use of Funds.--Funds awarded under this section to an eligible 
institution, as described in subsection (b), shall be used to waive or 
significantly reduce tuition and fees for eligible students in an 
amount of not more than up to the annual per-student rebate amount for 
each student, for not more than the first 60 credits an eligible 
student enrolls in the eligible institution.

SEC. 123. DEFINITIONS.

    In this subtitle:
            (1) Eligible student.--
                    (A) Definition.--The term ``eligible student'' 
                means a student, regardless of age, who--
                            (i)(I) enrolls in a historically Black 
                        college or university, or minority-serving 
                        institution; or
                            (II) transfers from a community college 
                        into a historically Black college or 
                        university, or minority-serving institution;
                            (ii) attends the historically Black college 
                        or university, or minority serving institution, 
                        on at least a half-time basis; and
                            (iii) is maintaining satisfactory progress, 
                        as defined in section 484(c) of the Higher 
                        Education Act of 1965 (20 U.S.C. 1091(c)), in 
                        the student's course of study.
                    (B) Special rule.--An otherwise eligible student 
                shall lose eligibility 3 calendar years after first 
                receiving benefits under this subtitle.
            (2) Historically black college or university.--The term 
        ``historically Black college or university'' means a part B 
        institution described in section 322(2) of the Higher Education 
        Act of 1965 (20 U.S.C. 1061(2)).
            (3) Low-income student.--The term ``low-income student''--
                    (A) shall include any student eligible for a 
                Federal Pell Grant under section 401 of the Higher 
                Education Act of 1965 (20 U.S.C. 1070a); and
                    (B) may include a student ineligible for a Federal 
                Pell Grant under section 401 of the Higher Education 
                Act of 1965 (20 U.S.C. 1070a) who is determined by the 
                institution of higher education in which the student is 
                enrolled to be a low-income student based on an 
                analysis of the student's ability to afford the cost of 
                attendance at the institution.
            (4) Minority-serving institution.--The term ``minority-
        serving institution'' means any public or nonprofit institution 
        of higher education--
                    (A) described in paragraphs (2) through (7) of 
                section 371(a) of the Higher Education Act of 1965 (20 
                U.S.C. 1067q(a)); and
                    (B) designated as a minority-serving institution by 
                the Secretary.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.

SEC. 124. APPROPRIATIONS.

    (a) Authorization and Appropriations for HBCU and MSI Grants.--For 
the purpose of carrying out sections 121 and 122, there are authorized 
to be appropriated, and there are appropriated--
            (1) $61,050,000 for fiscal year 2018;
            (2) $199,800,000 for fiscal year 2019;
            (3) $1,189,920,000 for fiscal year 2020;
            (4) $1,237,650,000 for fiscal year 2021;
            (5) $1,287,600,000 for fiscal year 2022;
            (6) $1,338,660,000 for fiscal year 2023;
            (7) $1,359,750,000 for fiscal year 2024;
            (8) $1,449,660,000 for fiscal year 2025;
            (9) $1,508,490,000 for fiscal year 2026; and
            (10) $1,569,540,000 for fiscal year 2027 and each 
        succeeding fiscal year.
    (b) Availability.--Funds appropriated under subsection (a) are to 
remain available to the Secretary until expended.
    (c) Insufficient Funds.--If the amount appropriated under 
subsection (a) for a fiscal year is not sufficient to award each 
participating institution in the grant programs under sections 121 and 
122 a grant under this subtitle that is equal to 100 percent of the 
grant amount determined under sections 121(c) and 122(c), as 
applicable, the Secretary may ratably reduce the amount of each such 
grant or take other actions necessary to ensure an equitable 
distribution of such amount.

       TITLE II--NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM

SEC. 201. NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM.

    Part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.) is amended by adding at the end the following:

     ``Subpart 11--National Public Service Education Grant Program

``SEC. 420T. NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Cost of attendance.--
                    ``(A) In general.--The term `cost of attendance' 
                means tuition, fees, on-campus room and board, books 
                and supplies, personal expenses, and transportation.
                    ``(B) On-campus room and board.--The term `on-
                campus room and board' means--
                            ``(i) the cost to a student of a double 
                        room on campus; and
                            ``(ii) the cost of a resident student meal 
                        plan.
            ``(2) Eligible institution.--The term `eligible 
        institution' means a public 4-year institution of higher 
        education or a private, nonprofit 4-year institution of higher 
        education.
            ``(3) Eligible student.--The term `eligible student' means 
        a student who--
                    ``(A) has received an associate's degree or has 
                earned not less than 60 credits toward a baccalaureate 
                degree;
                    ``(B) is enrolled, at an eligible institution 
                awarded a grant under this section, on a full-time 
                basis in a course of study that will lead to employment 
                in a public service job; and
                    ``(C) has submitted a Free Application for Federal 
                Student Aid (FAFSA) to the Department.
            ``(4) Public service job.--The term `public service job' 
        has the meaning given the term in section 455(m)(3)(B).
    ``(b) Establishment of Program.--The Secretary shall establish a 
National Public Service Education Grant program to assist in paying for 
the cost of attendance for an undergraduate education to students who 
commit to work for not less than 3 years in a public service job upon 
completion of their baccalaureate degree.
    ``(c) Grants From the Department to Eligible Institutions.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible institutions to enable the eligible institutions to 
        award grants to eligible students who commit to work for not 
        less than 3 years in a public service job upon completion of 
        their baccalaureate degree.
            ``(2) Duration.--Grants awarded to eligible institutions 
        under this subsection shall be 5 years in duration. Subject to 
        subsection (e), such a grant may be extended for additional 5-
        year periods.
            ``(3) Amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall award a grant to 
                an eligible institution under this subsection for a 
                fiscal year in an amount equal to the lesser of--
                            ``(i) the average annual cost of in-State 
                        tuition, fees, and on-campus room and board in 
                        the State in which the institution is located 
                        at a public 4-year institution of higher 
                        education during the fiscal year multiplied by 
                        the number of eligible students enrolled at the 
                        institution who apply for a grant under this 
                        section during the fiscal year; or
                            ``(ii) the actual annual cost of tuition, 
                        fees, and on-campus room and board at the 
                        eligible institution during the fiscal year 
                        multiplied by the number of eligible students 
                        enrolled at the institution who apply for a 
                        grant under this section during the fiscal 
                        year.
                    ``(B) Nontraditional calendar.--The calculation of 
                the cost of tuition, fees, and on-campus room and board 
                under subparagraph (A) with respect to an eligible 
                student who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period shall be the cost of the cost of tuition, fees, 
                and on-campus room and board for such summer or other 
                nontraditional period.
            ``(4) Applications.--The Secretary shall design an 
        application for eligible institutions to participate in the 
        grant program under this subsection that includes a description 
        of how the eligible institution, if awarded a grant under this 
        subsection, will provide services to students as follows:
                    ``(A) Provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students.
                    ``(B) Provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years.
                    ``(C) Foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
    ``(d) Grants to Eligible Students.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall award grants to eligible 
        students enrolled at the institution.
            ``(2) Application.--An eligible student who desires to 
        receive a grant under this section shall submit an application 
        to the eligible institution that includes the following:
                    ``(A) An agreement to work for not less than 3 
                years in a public service job upon completion of their 
                baccalaureate degree.
                    ``(B) Information that demonstrates that the 
                student is an eligible student for purposes of section 
                484.
                    ``(C) Information that demonstrates that the 
                student has received counseling from the Department 
                that explains the terms and conditions of the grant 
                award.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
            ``(3) Grant amount.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an eligible institution shall award a 
                grant to an eligible student enrolled at the 
                institution for an academic year in an amount equal to 
                the total grant amount received by the eligible 
                institution under subsection (c) for the fiscal year 
                preceding the academic year divided by the number of 
                students to whom the eligible institution awards grants 
                under this subsection for such academic year.
                    ``(B) Nontraditional calendar.--An eligible 
                institution shall award a grant to an eligible student 
                who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period in an amount, from the total grant amount 
                received by the eligible institution under subsection 
                (c), that is prorated to reflect the cost of tuition, 
                fees, and on-campus room and board for such summer or 
                other nontraditional period.
            ``(4) Cost of attendance beyond grant amount.--
                    ``(A) Amounts not covered by npseg grants.--
                            ``(i) Public institutions.--
                                    ``(I) In general.--An eligible 
                                institution that is a public 
                                institution of higher education shall 
                                cover the excess costs to meet the 
                                difference between the in-State 
                                tuition, fees, and on-campus room and 
                                board at the institution and the amount 
                                awarded to the eligible student through 
                                the grant award under paragraph (3), 
                                through a combination of grant and 
                                work-study awards under this title for 
                                which the eligible student may be 
                                eligible, campus-based aid programs, 
                                State-based merit or need-based aid, or 
                                other institutional-based merit- or 
                                need-based aid. An eligible institution 
                                that is a public institution of higher 
                                education may cover, with respect to an 
                                eligible student, any amounts of the 
                                cost of attendance that are in excess 
                                of the total amount awarded to the 
                                eligible student through the grant 
                                award under paragraph (3) and the 
                                amount of excess costs provided under 
                                this subclause based on the 
                                demonstrated financial need of the 
                                student.
                                    ``(II) Student contribution.--The 
                                eligible student shall be responsible 
                                for any amounts of the cost of 
                                attendance that are in excess of the 
                                total amount awarded to the eligible 
                                student through the grant award under 
                                paragraph (3) and the amount of excess 
                                costs provided under subclause (I). The 
                                eligible student may be eligible for 
                                Federal student aid in accordance with 
                                subparagraph (B) for the remaining cost 
                                of attendance amount for which the 
                                student is responsible.
                            ``(ii) Private institution.--
                                    ``(I) Matching amount.--
                                            ``(aa) In general.--An 
                                        eligible institution that is a 
                                        private, nonprofit institution 
                                        of higher education shall--

                                                    ``(AA) with respect 
                                                to an eligible student 
                                                described in item (bb), 
                                                cover excess costs 
                                                toward meeting an 
                                                eligible student's cost 
                                                of attendance in an 
                                                amount equal to or 
                                                greater than the amount 
                                                of the grant award to 
                                                the eligible student 
                                                described in paragraph 
                                                (3); and

                                                    ``(BB) with respect 
                                                to an eligible student 
                                                not described in item 
                                                (bb), not be obligated 
                                                to provide additional 
                                                institutional-based 
                                                financial aid to such 
                                                student.

                                            ``(bb) Eligible students.--
                                        An eligible student is 
                                        described in this item if the 
                                        student's (or the student's 
                                        parents' in the case of a 
                                        dependent student) adjusted 
                                        gross income for the taxable 
                                        year that is 1 year prior to 
                                        the taxable year that ends 
                                        immediately prior to the 
                                        beginning of the first award 
                                        year of the program under this 
                                        section is equal to or less 
                                        than $125,000, indexed for 
                                        inflation by regulation of the 
                                        Secretary.
                                            ``(cc) Source of aid.--The 
                                        required amount described in 
                                        item (aa)(AA) may be provided 
                                        through a combination of grant 
                                        and work-study awards under 
                                        this title for which the 
                                        eligible student may be 
                                        eligible, campus-based aid 
                                        programs, State-based merit or 
                                        need-based aid, or other 
                                        institutional-based merit- or 
                                        need-based aid.
                                    ``(II) Student contribution.--The 
                                eligible student shall be responsible 
                                for any amounts of the cost of 
                                attendance that are in excess of the 
                                total amount awarded to that eligible 
                                student through the grant award under 
                                paragraph (3) and the amount of excess 
                                costs provided under subclause (I). The 
                                eligible student may be eligible for 
                                Federal student aid in accordance with 
                                subparagraph (B) for the remaining cost 
                                of attendance amount for which the 
                                student is responsible.
                            ``(iii) Student choice.--An eligible 
                        student who receives a Federal work-study award 
                        by an eligible institution to meet the cost of 
                        attendance beyond a grant awarded under this 
                        section may choose to decline the Federal work-
                        study award and take out a Federal Direct 
                        Unsubsidized Stafford Loan. An eligible 
                        institution shall be considered to have met the 
                        institution's responsibilities if a student 
                        chooses to take out such a loan in lieu of a 
                        Federal work-study award.
                    ``(B) First dollar award.--An eligible institution 
                shall consider the grant award under this subsection as 
                the first dollar award, to be available prior to other 
                funds awarded by the Department of Education under this 
                title, the State involved, or the institution.
                    ``(C) Housing.--An eligible student who receives a 
                grant under this subsection may use the grant amounts 
                for off-campus housing but the student may not use such 
                grant amounts for any amounts for such off-campus 
                housing that are in excess of the cost of on-campus 
                room and board.
            ``(5) Classes in nontraditional calendars.--An eligible 
        student who receives a grant under this subsection may use the 
        grant amounts for enrollment during any period of study.
    ``(e) Institutional Accountability.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall--
                    ``(A) provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students;
                    ``(B) provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years; and
                    ``(C) foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
            ``(2) Biennial report.--
                    ``(A) In general.--Each eligible institution that 
                receives a grant under subsection (c) shall submit a 
                biennial report to the Secretary describing the 
                following:
                            ``(i) Academic and student support services 
                        offered to eligible students awarded grants 
                        under this section.
                            ``(ii) Such students' progress towards 
                        baccalaureate degree completion and graduation.
                            ``(iii) Outreach to potential public 
                        service job employers for the eligible students 
                        awarded grants under this section.
                    ``(B) Continuing grant awards to eligible 
                institutions.--The Secretary may continue grant awards 
                to an eligible institution under subsection (c) after 
                the initial 5-year grant period for additional 5-year 
                periods if--
                            ``(i) the institution complies with the 
                        requirements of paragraph (1); and
                            ``(ii) the eligible students awarded grants 
                        under this section who are enrolled at the 
                        institution have a baccalaureate degree 
                        graduation rate that meets or exceeds a rate 
                        determined appropriate by the Secretary.
                    ``(C) Discontinuing grant awards to eligible 
                institutions.--
                            ``(i) In general.--The Secretary may 
                        discontinue grant awards to an eligible 
                        institution under subsection (c) after the 
                        initial 5-year grant period based on the 
                        outcome of the biennial reports under 
                        subparagraph (A).
                            ``(ii) Notification.--Prior to the 
                        Secretary discontinuing a grant award under 
                        clause (i), the Secretary shall notify the 
                        institution, prior to the start of the 5th year 
                        of the 5-year grant period, in a publically 
                        available format, that the institution is, or 
                        is potentially, out of compliance with the 
                        requirements of the grant award and may have 
                        the institution's grant awards discontinued.
                            ``(iii) Modifications.--In the 5th year of 
                        the 5-year grant period, an eligible 
                        institution may make modifications to the 
                        institution's grant program and appeal to the 
                        Secretary for a renewal of the institution's 
                        grant.
                            ``(iv) Decision.--The Secretary, prior to 
                        the conclusion of the 5-year grant period, 
                        shall render a decision on whether to continue 
                        grant awards to an eligible institution.
                            ``(v) Remaining responsibility.--If the 
                        Secretary discontinues grant awards to an 
                        eligible institution under subsection (c), the 
                        institution shall be responsible for 
                        maintaining academic and student support 
                        services and providing the full remaining costs 
                        for eligible students awarded a grant under 
                        this section prior to such discontinuation to 
                        receive their baccalaureate degree debt free.
            ``(3) Institutional prohibitions.--Each eligible 
        institution that receives a grant under subsection (c) may 
        not--
                    ``(A) use grant funds for administrative purposes; 
                or
                    ``(B) establish different tuition prices between 
                eligible students who receive grants under this section 
                and students who do not receive grants under this 
                section for pursing the same course of study.
    ``(f) Student Accountability.--
            ``(1) Enrollment; gpa; service.--
                    ``(A) In general.--An eligible student awarded a 
                grant under this section shall--
                            ``(i) maintain full-time enrollment in 
                        order to complete the student's baccalaureate 
                        degree in not more than 2 years; and
                            ``(ii) maintain satisfactory academic 
                        progress, defined as a 3.0 grade point average 
                        (GPA) or higher, and meet all other 
                        institutional standards for academic progress.
                    ``(B) Two weeks of service.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, an eligible 
                        student awarded a grant under this section 
                        shall serve for 80 hours as a participant in a 
                        Corporation for National and Community Service 
                        national service project for each year the 
                        eligible student receives the grant. The 
                        eligible institution shall assist in placing 
                        the eligible student in such a project relevant 
                        to the eligible student's course of study. Such 
                        required hours may be completed at any point 
                        during the student's enrollment but shall be 
                        completed prior to the date the eligible 
                        student receives the student's baccalaureate 
                        degree.
                            ``(ii) Other project.--If an eligible 
                        student resides in an area without a local 
                        Corporation for National and Community Service 
                        national service project available, the student 
                        may instead participate in a service project 
                        with a community action agency, a local 
                        government agency, or an organization described 
                        in section 501(c)(3) of the Internal Revenue 
                        Code of 1986.
                            ``(iii) Medical exemption.--The Secretary 
                        may grant an eligible student a medical 
                        exemption from the service commitment under 
                        this subparagraph if the student becomes 
                        medically unable to complete the service 
                        commitment over the course of the academic 
                        year. An eligible student granted such an 
                        exemption shall complete the service commitment 
                        upon recovery without risking eligibility 
                        status in the grant program under this section.
            ``(2) Satisfactory progress.--
                    ``(A) After one year.--In the case in which an 
                eligible student awarded a grant under this section 
                does not maintain satisfactory academic progress, as 
                described in paragraph (1)(A)(ii), after the first 
                academic year for which the student received the grant, 
                the student shall--
                            ``(i) serve an additional year in a public 
                        service job beyond the 3-year commitment upon 
                        receiving the student's baccalaureate degree; 
                        and
                            ``(ii) receive additional academic supports 
                        from the eligible institution in which the 
                        student is enrolled.
                    ``(B) After two years.--In the case in which an 
                eligible student awarded a grant under this section 
                does not receive a baccalaureate degree after the 
                second academic year for which the student received the 
                grant, the total of the grant award amount and 
                remaining funds provided by the institution shall be 
                treated as a Federal Direct Unsubsidized Stafford Loan 
                under part D of title IV, and shall be subject to 
                repayment, as described in paragraph (4).
                    ``(C) Appeals.--In the case in which an eligible 
                student awarded a grant under this section does not 
                maintain satisfactory academic progress, as described 
                in paragraph (1)(A)(ii), after the first academic year 
                for which the student received the grant, the student 
                may appeal the decision to serve an additional year, as 
                described in subparagraph (A)(i). The appeal shall be 
                made in writing to the eligible institution and include 
                an academic plan approved by the student's adviser. The 
                academic plan shall show a clear pathway to graduation 
                within 1 year.
            ``(3) Public service job work obligation.--
                    ``(A) In general.--Except as provided in paragraph 
                (2)(A)(i) and subparagraph (C), an eligible student 
                awarded a grant under this section shall work for not 
                less than 3 years in a public service job after 
                receiving the student's baccalaureate degree. Such 3 
                years (or 4 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) may be consecutive or 
                nonconsecutive but shall be completed not later than 5 
                years (or 6 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) after the date the student 
                receives the student's baccalaureate degree.
                    ``(B) Notification.--An eligible student awarded a 
                grant under this section shall notify the Department, 
                utilizing a form designed by the Secretary, of the 
                student's compliance or noncompliance with subparagraph 
                (A) annually until such student completes the student's 
                work obligation.
                    ``(C) Deferment for graduate school.--The work 
                obligation described in subparagraph (A) of an eligible 
                student awarded a grant under this section who enrolls 
                as a full-time student in a post-baccalaureate degree 
                program not later than 3 years after the date the 
                student receives the student's baccalaureate degree 
                shall be deferred during the period of such full-time 
                enrollment. Any years of service completed prior to 
                full-time enrollment in a post-baccalaureate degree 
                program shall count toward such work obligation.
            ``(4) Repayment for noncompliance.--In the event that an 
        eligible student awarded a grant under this section fails or 
        refuses to comply with the work obligation as described in 
        paragraph (3), or the student does not receive a baccalaureate 
        degree after the second academic year for which the student 
        received the grant, as described in paragraph (2)(B), the sum 
        of the amounts of any grants received by the student shall, 
        upon a determination of such a failure or refusal in such 
        service obligation or failure to receive a baccalaureate 
        degree, be treated as a Federal Direct Unsubsidized Stafford 
        Loan under part D of title IV, and shall be subject to 
        repayment, together with interest thereon accruing from the 
        date of the grant award, in accordance with terms and 
        conditions specified by the Secretary in regulations under this 
        section.
            ``(5) Medical exemption.--The Secretary may grant an 
        eligible student awarded a grant under this section a medical 
        exemption--
                    ``(A) from the requirement of maintaining 
                satisfactory academic progress under paragraph 
                (1)(A)(ii); or
                    ``(B) from a term or condition of the work 
                obligation of the student if the student becomes 
                medically unable to complete the student's studies or 
                public service job work obligation.

``SEC. 420U. NATIONAL PUBLIC SERVICE EDUCATION GRANT PROGRAM FOR 
              MINORITY-SERVING INSTITUTIONS AND HBCUS.

    ``(a) Definitions.--In this section:
            ``(1) Eligible institution.--The term `eligible 
        institution' means a minority-serving institution or 
        historically black college or university that is a public 4-
        year institution of higher education or a private, nonprofit 4-
        year institution of higher education.
            ``(2) Eligible student.--The term `eligible student' means 
        a student who--
                    ``(A) has received an associate's degree or has 
                earned not less than 60 credits toward a baccalaureate 
                degree;
                    ``(B) is enrolled, at an eligible institution 
                awarded a grant under this section, on a full-time 
                basis in a course of study that will lead to employment 
                in a public service job; and
                    ``(C) has submitted a Free Application for Federal 
                Student Aid (FAFSA) to the Department.
            ``(3) Historically black college or university.--The term 
        `historically black college or university' means a part B 
        institution described in section 322(2).
            ``(4) Minority-serving institution.--The term `minority-
        serving institution' means any public or nonprofit institution 
        of higher education--
                    ``(A) described in paragraphs (2) through (7) of 
                section 371(a); and
                    ``(B) designated as a minority-serving institution 
                by the Secretary.
            ``(5) On-campus room and board.--The term `on-campus room 
        and board' means--
                    ``(A) the cost to a student of a double room on 
                campus; and
                    ``(B) the cost of a resident student meal plan.
            ``(6) Public service job.--The term `public service job' 
        has the meaning given the term in section 455(m)(3)(B).
    ``(b) Establishment of Program.--The Secretary shall establish a 
National Public Service Education Grant program for eligible 
institutions to provide a debt-free undergraduate education to students 
who commit to work for not less than 3 years in a public service job 
upon completion of their baccalaureate degree.
    ``(c) Grants From the Department to Eligible Institutions.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible institutions to enable the eligible institutions to 
        award grants to eligible students who commit to work for not 
        less than 3 years in a public service job upon completion of 
        their baccalaureate degree.
            ``(2) Duration.--Grants awarded to eligible institutions 
        under this subsection shall be 5 years in duration. Subject to 
        subsection (e), such a grant may be extended for additional 5-
        year periods.
            ``(3) Amounts.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall award a grant to 
                an eligible institution under this subsection for a 
                fiscal year in an amount equal to the actual annual 
                cost of in-State tuition, fees, and on-campus room and 
                board at the eligible institution during the fiscal 
                year multiplied by the number of eligible students 
                enrolled at the institution who apply for a grant under 
                this section during the fiscal year.
                    ``(B) Nontraditional calendar.--The calculation of 
                the cost of tuition, fees, and on-campus room and board 
                under subparagraph (A) with respect to an eligible 
                student who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period shall be the cost of the cost of tuition, fees, 
                and on-campus room and board for such summer or other 
                nontraditional period.
            ``(4) Applications.--The Secretary shall design an 
        application for eligible institutions to participate in the 
        grant program under this subsection that includes a description 
        of how the eligible institution, if awarded a grant under this 
        subsection, will provide services to students as follows:
                    ``(A) Provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students.
                    ``(B) Provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years.
                    ``(C) Foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
    ``(d) Grants to Eligible Students.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall award grants to eligible 
        students enrolled at the institution.
            ``(2) Application.--An eligible student who desires to 
        receive a grant under this section shall submit an application 
        to the eligible institution that includes the following:
                    ``(A) An agreement to work for not less than 3 
                years in a public service job upon completion of their 
                baccalaureate degree.
                    ``(B) Information that demonstrates that the 
                student is an eligible student for purposes of section 
                484.
                    ``(C) Information that demonstrates that the 
                student has received counseling from the Department 
                that explains the terms and conditions of the grant 
                award.
                    ``(D) Any additional information determined 
                necessary by the Secretary.
            ``(3) Grant amount.--
                    ``(A) In general.--An eligible institution shall 
                award a grant to an eligible student enrolled at the 
                institution for an academic year in an amount equal to 
                the total grant amount received by the eligible 
                institution under subsection (c) for the fiscal year 
                preceding the academic year divided by the number of 
                students to whom the eligible institution awards grants 
                under this subsection for such academic year.
                    ``(B) Nontraditional calendar.--An eligible 
                institution shall award a grant to an eligible student 
                who applies for a grant under this section for 
                enrollment during the summer or other nontraditional 
                period in an amount, from the total grant amount 
                received by the eligible institution under subsection 
                (c), that is prorated to reflect the cost of tuition, 
                fees, and on-campus room and board for such summer or 
                other nontraditional period.
            ``(4) Cost of attendance beyond grant amount.--
                    ``(A) Amounts not covered by npseg grants.--
                            ``(i) Public institution.--An eligible 
                        institution that is a public institution of 
                        higher education may cover, with respect to an 
                        eligible student, any amounts of the cost of 
                        attendance that are in excess of the total 
                        amount awarded to the eligible student through 
                        the grant award under paragraph (3), based on 
                        the demonstrated financial need of the student. 
                        For the remaining costs, the eligible student 
                        enrolled at an eligible institution that is a 
                        public institution shall be responsible for any 
                        amounts of the cost of attendance that are in 
                        excess of the total amount awarded to that 
                        eligible student through the grant award under 
                        paragraph (3) and any amount provided pursuant 
                        to the preceding sentence. The eligible student 
                        may be eligible for Federal student aid in 
                        accordance with subparagraph (B) for the 
                        remaining cost of attendance amount for which 
                        the student is responsible.
                            ``(ii) Private institution.--
                                    ``(I) In general.--An eligible 
                                institution that is a private, 
                                nonprofit institution of higher 
                                education shall--
                                            ``(aa) with respect to an 
                                        eligible student described in 
                                        subclause (II), cover excess 
                                        costs toward meeting an 
                                        eligible student's cost of 
                                        attendance in an amount equal 
                                        to or greater than the amount 
                                        of the grant award to the 
                                        eligible student described in 
                                        paragraph (3); and
                                            ``(bb) with respect to an 
                                        eligible student not described 
                                        in subclause (II), not be 
                                        obligated to provide additional 
                                        institutional-based financial 
                                        aid to such student.
                                    ``(II) Eligible students.--An 
                                eligible student is described in this 
                                subclause if the student's (or the 
                                student's parents' in the case of a 
                                dependent student) adjusted gross 
                                income for the taxable year that is 1 
                                year prior to the taxable year that 
                                ends immediately prior to the beginning 
                                of the first award year of the program 
                                under this section is equal to or less 
                                than $125,000, indexed for inflation by 
                                regulation of the Secretary.
                                    ``(III) Source of aid.--The 
                                required amount described in subclause 
                                (I)(aa) may be provided through a 
                                combination of grant and work-study 
                                awards under this title for which the 
                                eligible student may be eligible, 
                                campus-based aid programs, State-based 
                                merit or need-based aid, or other 
                                institutional-based merit- or need-
                                based aid.
                                    ``(IV) Student contribution.--The 
                                eligible student shall be responsible 
                                for any amounts of the cost of 
                                attendance that are in excess of the 
                                total amount awarded to that eligible 
                                student through the grant award under 
                                paragraph (3) and the amount of excess 
                                costs provided under subclause (I). The 
                                eligible student may be eligible for 
                                Federal student aid in accordance with 
                                subparagraph (B) for the remaining cost 
                                of attendance amount for which the 
                                student is responsible.
                            ``(iii) Student choice.--An eligible 
                        student who receives a Federal work-study award 
                        by an eligible institution to meet the cost of 
                        attendance beyond a grant awarded under this 
                        section may choose to decline the Federal work-
                        study award and take out a Federal Direct 
                        Unsubsidized Stafford Loan. An eligible 
                        institution shall be considered to have met the 
                        institution's responsibilities if a student 
                        chooses to take out such a loan in lieu of a 
                        Federal work-study award.
                    ``(B) First dollar award.--In calculating an 
                eligible student's financial need to cover excess costs 
                described in subparagraph (A), the eligible institution 
                shall consider the grant award under this subsection as 
                the first dollar award, to be available prior to other 
                funds awarded by the Department of Education under this 
                title, the State involved, or the institution. If a 
                grant awarded to an eligible student under this section 
                is equal to the cost of tuition, fees, and on-campus 
                room and board for such student, the eligible 
                institution shall not be required to provide additional 
                institutional scholarship or grant based aid to the 
                eligible student.
                    ``(C) Housing.--An eligible student who receives a 
                grant under this subsection may use the grant amounts 
                for off-campus housing but the student may not use such 
                grant amounts for any amounts for such off-campus 
                housing that are in excess of the cost of on-campus 
                room and board.
            ``(5) Classes in nontraditional calendars.--An eligible 
        student who receives a grant under this subsection may use the 
        grant amounts for enrollment during any period of study.
    ``(e) Institutional Accountability.--
            ``(1) In general.--Each eligible institution that receives 
        a grant under subsection (c) shall--
                    ``(A) provide comprehensive academic and student 
                support services for eligible students awarded grants 
                under this section, including mentoring and advising, 
                particularly for first-generation and minority 
                students;
                    ``(B) provide accelerated learning opportunities 
                for eligible students awarded grants under this section 
                to receive their baccalaureate degree and any required 
                certificate or license to work in their respective 
                public service job in less than 2 years if an eligible 
                student seeks to complete the degree in less than 2 
                years; and
                    ``(C) foster opportunities for eligible students 
                awarded grants under this section to connect with 
                potential public service job employers through the 
                Corporation for National and Community Service.
            ``(2) Biennial report.--
                    ``(A) In general.--Each eligible institution that 
                receives a grant under subsection (c) shall submit a 
                biennial report to the Secretary describing the 
                following:
                            ``(i) Academic and student support services 
                        offered to eligible students awarded grants 
                        under this section.
                            ``(ii) Such students' progress towards 
                        baccalaureate degree completion and graduation.
                            ``(iii) Outreach to potential public 
                        service job employers for the eligible students 
                        awarded grants under this section.
                    ``(B) Continuing grant awards to eligible 
                institutions.--The Secretary may continue grant awards 
                to an eligible institution under subsection (c) after 
                the initial 5-year grant period for additional 5-year 
                periods if--
                            ``(i) the institution complies with the 
                        requirements of paragraph (1); and
                            ``(ii) the eligible students awarded grants 
                        under this section who are enrolled at the 
                        institution have a baccalaureate degree 
                        graduation rate that meets or exceeds a rate 
                        determined appropriate by the Secretary.
                    ``(C) Discontinuing grant awards to eligible 
                institutions.--
                            ``(i) In general.--The Secretary may 
                        discontinue grant awards to an eligible 
                        institution under subsection (c) after the 
                        initial 5-year grant period based on the 
                        outcome of the biennial reports under 
                        subparagraph (A).
                            ``(ii) Notification.--Prior to the 
                        Secretary discontinuing a grant award under 
                        clause (i), the Secretary shall notify the 
                        institution, prior to the start of the 5th year 
                        of the 5-year grant period, in a publically 
                        available format, that the institution is, or 
                        is potentially, out of compliance with the 
                        requirements of the grant award and may have 
                        the institution's grant awards discontinued.
                            ``(iii) Modifications.--In the 5th year of 
                        the 5-year grant period, an eligible 
                        institution may make modifications to the 
                        institution's grant program and appeal to the 
                        Secretary for a renewal of the institution's 
                        grant.
                            ``(iv) Decision.--The Secretary, prior to 
                        the conclusion of the 5-year grant period, 
                        shall render a decision on whether to continue 
                        grant awards to an eligible institution.
                            ``(v) Remaining responsibility.--If the 
                        Secretary discontinues grant awards to an 
                        eligible institution under subsection (c), the 
                        institution shall be responsible for 
                        maintaining academic and student support 
                        services and providing the full remaining costs 
                        for eligible students awarded a grant under 
                        this section prior to such discontinuation to 
                        receive their baccalaureate degree debt free.
            ``(3) Institutional prohibitions.--Each eligible 
        institution that receives a grant under subsection (c) may 
        not--
                    ``(A) use grant funds for administrative purposes; 
                or
                    ``(B) establish different tuition prices between 
                eligible students who receive grants under this section 
                and students who do not receive grants under this 
                section for pursing the same course of study.
    ``(f) Student Accountability.--
            ``(1) Enrollment; gpa; service.--
                    ``(A) In general.--An eligible student awarded a 
                grant under this section shall--
                            ``(i) maintain full-time enrollment in 
                        order to complete the student's baccalaureate 
                        degree in not more than 2 years; and
                            ``(ii) maintain satisfactory academic 
                        progress, defined as a 3.0 grade point average 
                        (GPA) or higher, and meet all other 
                        institutional standards for academic progress.
                    ``(B) Two weeks of service.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, an eligible 
                        student awarded a grant under this section 
                        shall serve for 80 hours as a participant in a 
                        Corporation for National and Community Service 
                        national service project for each year the 
                        eligible student receives the grant. The 
                        eligible institution shall assist in placing 
                        the eligible student in such a project relevant 
                        to the eligible student's course of study. Such 
                        required hours may be completed at any point 
                        during the student's enrollment but shall be 
                        completed prior to the date the eligible 
                        student receives the student's baccalaureate 
                        degree.
                            ``(ii) Other project.--If an eligible 
                        student resides in an area without a local 
                        Corporation for National and Community Service 
                        national service project available, the student 
                        may instead participate in a service project 
                        with a community action agency, a local 
                        government agency, or an organization described 
                        in section 501(c)(3) of the Internal Revenue 
                        Code of 1986.
                            ``(iii) Medical exemption.--The Secretary 
                        may grant an eligible student a medical 
                        exemption from the service commitment under 
                        this subparagraph if the student becomes 
                        medically unable to complete the service 
                        commitment over the course of the academic 
                        year. An eligible student granted such an 
                        exemption shall complete the service commitment 
                        upon recovery without risking eligibility 
                        status in the grant program under this section.
            ``(2) Satisfactory progress.--
                    ``(A) After one year.--In the case in which an 
                eligible student awarded a grant under this section 
                does not maintain satisfactory academic progress, as 
                described in paragraph (1)(A)(ii), after the first 
                academic year for which the student received the grant, 
                the student shall--
                            ``(i) serve an additional year in a public 
                        service job beyond the 3-year commitment upon 
                        receiving the student's baccalaureate degree; 
                        and
                            ``(ii) receive additional academic supports 
                        from the eligible institution in which the 
                        student is enrolled.
                    ``(B) After two years.--In the case in which an 
                eligible student awarded a grant under this section 
                does not receive a baccalaureate degree after the 
                second academic year for which the student received the 
                grant, the total of the grant award amount and 
                remaining funds provided by the institution shall be 
                treated as a Federal Direct Unsubsidized Stafford Loan 
                under part D of title IV, and shall be subject to 
                repayment, as described in paragraph (4).
                    ``(C) Appeals.--In the case in which an eligible 
                student awarded a grant under this section does not 
                maintain satisfactory academic progress, as described 
                in paragraph (1)(A)(ii), after the first academic year 
                for which the student received the grant, the student 
                may appeal the decision to serve an additional year, as 
                described in subparagraph (A)(i). The appeal shall be 
                made in writing to the eligible institution and include 
                an academic plan approved by the student's adviser. The 
                academic plan shall show a clear pathway to graduation 
                within 1 year.
            ``(3) Public service job work obligation.--
                    ``(A) In general.--Except as provided in paragraph 
                (2)(A)(i) and subparagraph (C), an eligible student 
                awarded a grant under this section shall work for not 
                less than 3 years in a public service job after 
                receiving the student's baccalaureate degree. Such 3 
                years (or 4 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) may be consecutive or 
                nonconsecutive but shall be completed not later than 5 
                years (or 6 years, in the case of a scenario described 
                in paragraph (2)(A)(i)) after the date the student 
                receives the student's baccalaureate degree.
                    ``(B) Notification.--An eligible student awarded a 
                grant under this section shall notify the Department, 
                utilizing a form designed by the Secretary, of the 
                student's compliance or noncompliance with subparagraph 
                (A) annually until such student completes the student's 
                work obligation.
                    ``(C) Deferment for graduate school.--The work 
                obligation described in subparagraph (A) of an eligible 
                student awarded a grant under this section who enrolls 
                as a full-time student in a post-baccalaureate degree 
                program not later than 3 years after the date the 
                student receives the student's baccalaureate degree 
                shall be deferred during the period of such full-time 
                enrollment. Any years of service completed prior to 
                full-time enrollment in a post-baccalaureate degree 
                program shall count toward such work obligation.
            ``(4) Repayment for noncompliance.--In the event that an 
        eligible student awarded a grant under this section fails or 
        refuses to comply with the work obligation as described in 
        paragraph (3), or the student does not receive a baccalaureate 
        degree after the second academic year for which the student 
        received the grant, as described in paragraph (2)(B), the sum 
        of the amounts of any grants received by the student shall, 
        upon a determination of such a failure or refusal in such 
        service obligation or failure to meet satisfactory academic 
        progress, be treated as a Federal Direct Unsubsidized Stafford 
        Loan under part D of title IV, and shall be subject to 
        repayment, together with interest thereon accruing from the 
        date of the grant award, in accordance with terms and 
        conditions specified by the Secretary in regulations under this 
        section.
            ``(5) Medical exemption.--The Secretary may grant an 
        eligible student awarded a grant under this section a medical 
        exemption--
                    ``(A) from the requirement of maintaining 
                satisfactory academic progress under paragraph 
                (1)(A)(ii); or
                    ``(B) from a term or condition of the work 
                obligation of the student if the student becomes 
                medically unable to complete the student's studies or 
                public service job work obligation.''.

      TITLE III--DEBT-FREE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM

SEC. 301. DEBT-FREE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.

    (a) In General.--Section 455(m) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(m)) is amended by adding at the end the following:
            ``(5) Debt-free public service loan forgiveness program.--
                    ``(A) In general.--Beginning after the date of 
                enactment of the Strengthening American Communities Act 
                of 2018, after the conclusion of each employment period 
                in a public service job, as described in subparagraph 
                (B), the Secretary shall cancel the percent specified 
                in such subparagraph of the total amount due on any 
                eligible Federal Direct Loan made after the date of 
                enactment of the Strengthening American Communities Act 
                of 2018 for a borrower who--
                            ``(i) is employed in such public service 
                        job;
                            ``(ii) submits an employment certification 
                        form described in subparagraph (C);
                            ``(iii) is enrolled in a repayment plan 
                        described in paragraph (1)(A); and
                            ``(iv) notifies the Department that the 
                        borrower seeks loan cancellation under this 
                        paragraph.
                    ``(B) Percent amount.--The percent of a loan that 
                shall be canceled under subparagraph (A) is as follows:
                            ``(i) In the case of a borrower who 
                        completes 2 years of employment in a public 
                        service job, 15 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(ii) In the case of a borrower who 
                        completes 4 years of employment in a public 
                        service job, 15 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(iii) In the case of a borrower who 
                        completes 6 years of employment in a public 
                        service job, 20 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(iv) In the case of a borrower who 
                        completes 8 years of employment in a public 
                        service job, 20 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                            ``(v) In the case of a borrower who 
                        completes 10 years of employment in a public 
                        service job, 30 percent of the total amount due 
                        on the eligible Federal Direct Loan on the date 
                        the borrower commenced employment in such 
                        public service job.
                    ``(C) Employment certification form.--
                            ``(i) In general.--In order to receive loan 
                        cancellation under this paragraph, a borrower 
                        shall submit to the Secretary an employment 
                        certification form that is developed by the 
                        Secretary and includes at least self-
                        certification of employment, a separate part 
                        for employer certification that indicates the 
                        dates of employment, and any additional 
                        information required by the Secretary.
                            ``(ii) Deferment.--If a borrower submits to 
                        the Secretary the employment certification form 
                        described in clause (i), during the period in 
                        which the borrower is employed in a public 
                        service job for which loan cancellation is 
                        eligible under this paragraph, the borrower's 
                        eligible Federal Direct Loan shall be placed in 
                        deferment.
                    ``(D) Interest canceled.--If a portion of a loan is 
                canceled under this paragraph for any year, the entire 
                amount of interest on such loan that accrues for such 
                year shall be canceled.
                    ``(E) No retroactivity.--A borrower may not receive 
                credit for purposes of loan forgiveness under this 
                paragraph for years of employment in a public service 
                job that occurred before the date of enactment of the 
                Strengthening American Communities Act of 2018.
                    ``(F) Leaving public service.--
                            ``(i) In general.--If a borrower who 
                        receives loan cancellation under this paragraph 
                        leaves the public service job, either 
                        voluntarily or involuntarily, for which the 
                        borrower received loan cancellation before the 
                        total amount due on the eligible Federal Direct 
                        Loan is cancelled under this paragraph, such 
                        borrower shall retain eligibility for 
                        accelerated loan cancellation under this 
                        paragraph for such eligible Federal Direct Loan 
                        if the borrower commences employment in a 
                        public service job not later than 3 years after 
                        the date the borrower left the public service 
                        job for which the borrower received loan 
                        cancellation.
                            ``(ii) Eligibility status.--If a borrower 
                        described in clause (i) commences employment in 
                        a public service job within the time period 
                        described in clause (i), such borrower shall 
                        resume eligibility for accelerated loan 
                        cancellation under this paragraph for such 
                        eligible Federal Direct Loan. Such borrower 
                        upon resumption of eligibility shall be 
                        considered to have completed the number of 
                        years of employment in a public service job at 
                        the last completed loan cancellation period 
                        described in subparagraph (B) for such 
                        borrower, even if the borrower had actually 
                        completed an additional year of employment in a 
                        public service job.
                            ``(iii) Loss of eligibility.--If a borrower 
                        described in clause (i) does not commence 
                        employment in a public service job within the 
                        time period described in clause (i), such 
                        borrower shall no longer be eligible for loan 
                        cancellation under this paragraph but may be 
                        eligible for loan cancellation for such loan 
                        under paragraph (1).''.
    (b) Notification of Program.--The Secretary of Education, in order 
to inform public servants of the benefits of the debt-free public 
service loan cancellation program established under section 455(m)(5) 
of the Higher Education Act of 1965 (20 U.S.C. 1087e(m))--
            (1) shall make guidance publicly available to the employers 
        of public servants to make public servants aware of such 
        program; and
            (2) is encouraged to work in partnership with State 
        licensing agencies to make recently licensed public servants 
        aware of such program.
                                 <all>