[Congressional Record Volume 151, Number 75 (Wednesday, June 8, 2005)]
[Senate]
[Pages S6235-S6238]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself, Mr. Durbin, and Ms. Stabenow):
  S. 1204. A bill to encourage students to pursue graduate education 
and to assist students in affording graduate education; to the 
Committee on Finance.
  Mr. DODD. Mr. President, I rise today with Senators Durbin and 
Stabenow to introduce GRAD, the Getting Results for Advanced Degrees 
Act. The purpose of this bill is to encourage students to pursue 
graduate education and to assist them in affording it.
  The percentage of individuals pursuing graduate education has 
increased dramatically in recent decades as individuals seek the 
education and skills needed to participate in a global economy. In the 
last 25 years alone, graduate enrollment in the United States has 
increased by 38 percent bringing the number of graduate students in 
this country to 1.85 million.
  The benefits of graduate education for our country are enormous. This 
year's graduate and professional students are the doctors, scientists, 
and inventors of tomorrow. Their ideas and innovations will be the 
basis of America's economic strength in the years to come. The benefits 
for individuals are significant as well. The median earnings of a 
worker with a master's degree are twice that of a high school graduate 
and $10,000 more than an individual with a bachelor's degree. The 
median earnings of a worker with a doctoral degree are 2\1/2\ times 
that of a high school graduate, $30,000 more than an individual with a 
bachelor's degree and $20,000 more than someone with a master's. An 
individual with a professional degree can expect to make three times 
the amount of a high school graduate, almost double the amount of an 
individual with a bachelor's, $35,000 more than individuals with a 
master's and $15,000 more than someone with a doctoral degree. Clearly, 
one's earning power increases, in some cases exponentially, with 
increasing education.
  Despite the immediate and long-term benefits of graduate education 
for individuals and our Nation as a whole, graduate education is, for 
many, financially out of reach. In 2002-03 the average graduate school 
tuition at public institutions was $4,855 and $15,279 at private 
institutions. The average debt reported by graduate students today is 
$45,900. For medical students it is $115,000, for dental students it is 
$122,000 and for law students it is $86,000. These are astounding 
figures.
  To increase access to graduate education, I have put together a 
series of proposals that will make graduate and professional school 
more accessible affordable for all qualified applicants, the Getting 
Results for Advanced Degrees Act. First, the GRAD Act raises the 
authorization levels of GAANN, the Graduate Assistance in Areas of 
National Need Program and the Jacob Javits Fellowship Program so that 
there are more opportunities at more universities for students to 
pursue advanced degrees. GAANN supports graduate study in areas of 
national need such as chemistry, computer science, engineering, and 
physics, while the Jacob Javits Program helps support graduate study in 
the arts, humanities and social sciences.
  To encourage greater participation by minority students in advanced 
programs the GRAD Act creates the Patsy T. Mink Fellowship Program. 
Named for former Congresswoman Patsy Mink, the first woman of Asian 
descent and the first woman of color to serve in the U.S. Congress, 
this program would offer assistance to underrepresented minorities 
pursuing doctoral degrees. It is fitting that such a program be named 
after Congresswoman Mink, a long-time champion for immigrants, 
minorities, women and children. I can think of no better tribute to her 
lifetime achievements than this program.
  To help students afford the costs of graduation education, the GRAD 
Act expands the tax-exempt status of scholarships to treat reasonable 
room-and-board allowances as part of permitted higher education 
expenses. GRAD revises the cost of attendance calculations for 
financial aid for students with dependents to reflect the true cost-of-
living expenses for themselves and the families that they support. GRAD 
also increases the unsubsidized Stafford loan limit for graduate and 
professional students from $10,000 to $12,000 so they are less likely 
to have to turn to more expensive private loans.
  Mr. President, the Getting Results for Advanced Degrees Act will help 
students meet the financial challenges faced in pursuing graduate 
studies. The act strengthens programs that support graduate students in 
areas of vital importance to our nation and makes assistance available 
to underrepresented minority students pursuing a doctoral degree. By 
helping students to pursue and afford graduate education, the GRAD Act 
will help individuals, families and the nation as a whole recognize and 
achieve the important benefits of graduate education.
  I hope my colleagues will join me in support of graduate education by 
supporting this bill. By working together, I believe that the Senate 
can act to ensure that more individuals are able to pursue graduate 
education and assist our nation in meeting the challenges faced in a 
global economy. I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1204

       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 ``Getting Results for Advanced 
     Degrees Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) From 1976 to 2000, graduate enrollment in the United 
     States increased 38 percent. In the fall of 2000, there were 
     1,850,000 graduate students enrolled in the United States.
       (2) In 2003, 84 percent of graduate students in the United 
     States were citizens of the

[[Page S6236]]

     United States or resident aliens, and 16 percent were 
     temporary residents who were foreign or international 
     students.
       (3) In a 2002 borrower's survey, the average debt reported 
     by graduate students was $45,900.
       (4) In 1999-2000, 60 percent of all graduate and first-
     professional students, and 82 percent of those enrolled full-
     time and full-year, received some type of financial aid, 
     including grants, loans, assistantships, or work study. The 
     average amount of aid received by aided full-time, full-year 
     students was approximately $19,500 per year.
       (5) Annual aid in the form of grants to full-time, full-
     year recipients was awarded in larger average amounts to 
     doctoral students ($13,400) than to either master's students 
     ($7,600) or first-professional students ($6,900). First-
     professional students took out larger loans on average 
     overall ($20,100) than did their counterparts at the master's 
     level ($14,800) and doctoral level ($14,100).
       (6) Median annual earnings in 2003 increased with 
     educational attainment. There was a substantial earnings 
     differential from the highest to the lowest levels of 
     attainment:
       (A) The median earnings of workers who had a master's 
     degree were almost twice those of high school graduates and 
     $10,000 more than those of individuals with a bachelor's 
     degree.
       (B) The median earnings of workers who had a doctoral 
     degree were 2\1/2\ times those of high school graduates, 
     $30,000 more than those of individuals with a bachelor's 
     degree, and $20,000 more than those of individuals with a 
     master's degree.
       (C) The median earnings of workers with a professional 
     degree were more than 3 times those of high school graduates, 
     almost double those of individuals with a bachelor's degree, 
     $35,000 more than those of individuals with a master's 
     degree, and $15,000 more than those of individuals with a 
     doctoral degree.

     SEC. 3. JACOB K. JAVITS FELLOWSHIP PROGRAM.

       (a) Criteria for Awards.--Section 701(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1134(a)) is amended by 
     striking ``, financial need,''.
       (b) Qualifications of Board.--Section 702(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1134a(a)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) Appointment.--
       ``(A) In general.--The Secretary shall appoint a Jacob K. 
     Javits Fellows Program Fellowship Board (referred to in this 
     subpart as the `Board') consisting of 9 individuals 
     representative of both public and private institutions of 
     higher education who are especially qualified to serve on the 
     Board.
       ``(B) Qualifications.--In making appointments under 
     subparagraph (A), the Secretary shall--
       ``(i) give due consideration to the appointment of 
     individuals who are highly respected in the academic 
     community;
       ``(ii) assure that individuals appointed to the Board are 
     broadly representative of a range of disciplines in graduate 
     education in arts, humanities, and social sciences;
       ``(iii) appoint members to represent the various geographic 
     regions of the United States; and
       ``(iv) include representatives from minority serving 
     institutions.''.
       (c) Amount of Stipends.--Section 703(a) of the Higher 
     Education Act of 1965 (20 U.S.C. 1134b(a)) is amended by 
     striking ``graduate fellowships,'' and all that follows 
     through the period and inserting ``Graduate Research 
     Fellowship Program.''.
       (d) Authorization of Appropriations.--Section 705 of the 
     Higher Education Act of 1965 (20 U.S.C. 1134d) is amended by 
     striking ``$30,000,000 for fiscal year 1999'' and inserting 
     ``$35,000,000 for fiscal year 2006''.

     SEC. 4. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

       (a) Application Contents.--Section 713(b)(5) of the Higher 
     Education Act of 1965 (20 U.S.C. 1135b(b)(5)) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively.
       (b) Amount of Stipends.--Section 714(b) of the Higher 
     Education Act of 1965 (20 U.S.C. 1135c(b)) is amended by 
     striking ``graduate fellowships,'' and all that follows 
     through the period and inserting ``Graduate Research 
     Fellowship Program.''.
       (c) Authorization of Appropriations.--Section 716 of the 
     Higher Education Act of 1965 (20 U.S.C. 1135e) is amended by 
     striking ``$35,000,000 for fiscal year 1999'' and inserting 
     ``$50,000,000 for fiscal year 2006''.
       (d) Technical Amendments.--Section 714(c) of the Higher 
     Education Act of 1965 (20 U.S.C. 1135c(c)) is amended--
       (1) by striking ``716(a)'' and inserting ``715(a)''; and
       (2) by striking ``714(b)(2)'' and inserting ``713(b)(2)''.

     SEC. 5. PATSY T. MINK FELLOWSHIP PROGRAM.

       Part A of title VII of the Higher Education Act of 1965 (20 
     U.S.C. 1134 et seq.) is amended--
       (1) by redesignating subpart 4 as subpart 5;
       (2) by redesignating section 731 as section 740;
       (3) in section 740 (as redesignated by paragraph (2))--
       (A) in the section heading, by striking ``AND 3.'' and 
     inserting ``3, AND 4.'';
       (B) in subsection (a), by striking ``and 3'' and inserting 
     ``3, and 4'';
       (C) in subsection (b), by striking ``and 3'' and inserting 
     ``3, and 4''; and
       (D) in subsection (d), by striking ``or 3'' and inserting 
     ``3, or 4''; and
       (4) by inserting after subpart 3 the following:

             ``Subpart 4--Patsy T. Mink Fellowship Program

     ``SEC. 731. PURPOSE AND DESIGNATION.

       ``(a) Purpose.--It is the purpose of this subpart to 
     provide, through eligible institutions, a program of 
     fellowship awards to assist highly qualified minorities and 
     women to acquire the doctoral degree, or highest possible 
     degree available, in academic areas in which such individuals 
     are underrepresented for the purpose of enabling such 
     individuals to enter the higher education professoriate.
       ``(b) Designation.--Each recipient of a fellowship award 
     from an eligible institution receiving a grant under this 
     subpart shall be known as a `Patsy T. Mink Graduate Fellow'.

     ``SEC. 732. DEFINITION OF ELIGIBLE INSTITUTION.

       ``In this subpart, the term `eligible institution' means an 
     institution of higher education, or a consortium of such 
     institutions, that offers a program of postbaccalaureate 
     study leading to a graduate degree.

     ``SEC. 733. PROGRAM AUTHORIZED.

       ``(a) Grants by Secretary.--
       ``(1) In general.--The Secretary shall award grants to 
     eligible institutions to enable such institutions to make 
     fellowship awards to individuals in accordance with the 
     provisions of this subpart.
       ``(2) Priority consideration.--In awarding grants under 
     this subpart, the Secretary shall consider the eligible 
     institution's prior experience in producing doctoral degree, 
     or highest possible degree available, holders who are 
     minorities and women, and shall give priority consideration 
     in making grants under this subpart to those eligible 
     institutions with a demonstrated record of producing 
     minorities and women who have earned such degrees.
       ``(b) Applications.--
       ``(1) In general.--An eligible institution that desires a 
     grant under this subpart shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(2) Applications made on behalf.--
       ``(A) In general.--The following entities may submit an 
     application on behalf of an eligible institution:
       ``(i) A graduate school or department of such institution.
       ``(ii) A graduate school or department of such institution 
     in collaboration with an undergraduate college or university 
     of such institution.
       ``(iii) An organizational unit within such institution that 
     offers a program of postbaccalaureate study leading to a 
     graduate degree, including an interdisciplinary or an 
     interdepartmental program.
       ``(iv) A nonprofit organization with a demonstrated record 
     of helping minorities and women earn postbaccalaureate 
     degrees.
       ``(B) Nonprofit organizations.--Nothing in this paragraph 
     shall be construed to permit the Secretary to award a grant 
     under this subpart to an entity other than an eligible 
     institution.
       ``(c) Selection of Applications.--In awarding grants under 
     subsection (a), the Secretary shall--
       ``(1) take into account--
       ``(A) the number and distribution of minority and female 
     faculty nationally;
       ``(B) the current and projected need for highly trained 
     individuals in all areas of the higher education 
     professoriate; and
       ``(C) the present and projected need for highly trained 
     individuals in academic career fields in which minorities and 
     women are underrepresented in the higher education 
     professoriate; and
       ``(2) consider the need to prepare a large number of 
     minorities and women generally in academic career fields of 
     high national priority, especially in areas in which such 
     individuals are traditionally underrepresented in college and 
     university faculties.
       ``(d) Distribution and Amounts of Grants.--
       ``(1) Equitable distribution.--In awarding grants under 
     this subpart, the Secretary shall, to the maximum extent 
     feasible, ensure an equitable geographic distribution of 
     awards and an equitable distribution among public and 
     independent eligible institutions that apply for grants under 
     this subpart and that demonstrate an ability to achieve the 
     purpose of this subpart.
       ``(2) Special rule.--To the maximum extent practicable, the 
     Secretary shall use not less than 50 percent of the amount 
     appropriated pursuant to section 736 to award grants to 
     eligible institutions that--
       ``(A) are eligible for assistance under title III or title 
     V; or
       ``(B) have formed a consortium that includes both non-
     minority serving institutions and minority serving 
     institutions.
       ``(3) Allocation.--In awarding grants under this subpart, 
     the Secretary shall allocate appropriate funds to those 
     eligible institutions whose applications indicate an ability 
     to significantly increase the numbers of minorities and women 
     entering the higher education professoriate and that commit 
     institutional resources to the attainment of the purpose of 
     this subpart.
       ``(4) Number of fellowship awards.--An eligible institution 
     that receives a grant under this subpart shall make not less 
     than 15 fellowship awards.

[[Page S6237]]

       ``(5) Reallotment.--If the Secretary determines that an 
     eligible institution awarded a grant under this subpart is 
     unable to use all of the grant funds awarded to the 
     institution, the Secretary shall reallot, on such date during 
     each fiscal year as the Secretary may fix, the unused funds 
     to other eligible institutions that demonstrate that such 
     institutions can use any reallocated grant funds to make 
     fellowship awards to individuals under this subpart.
       ``(e) Institutional Allowance.--
       ``(1) In general.--
       ``(A) Number of allowances.--In awarding grants under this 
     subpart, the Secretary shall pay to each eligible institution 
     awarded a grant, for each individual awarded a fellowship by 
     such institution under this subpart, an institutional 
     allowance.
       ``(B) Amount.--Except as provided in paragraph (3), an 
     institutional allowance shall be in an amount equal to, for 
     academic year 2006-2007 and succeeding academic years, the 
     amount of institutional allowance made to an institution of 
     higher education under section 715 for such academic year.
       ``(2) Use of funds.--Institutional allowances may be 
     expended in the discretion of the eligible institution and 
     may be used to provide, except as prohibited under paragraph 
     (4), academic support and career transition services for 
     individuals awarded fellowships by such institution.
       ``(3) Reduction.--The institutional allowance paid under 
     paragraph (1) shall be reduced by the amount the eligible 
     institution charges and collects from a fellowship recipient 
     for tuition and other expenses as part of the recipient's 
     instructional program.
       ``(4) Use for overhead prohibited.--Funds made available 
     under this subpart may not be used for general operational 
     overhead of the academic department or institution receiving 
     funds under this subpart.

     ``SEC. 734. FELLOWSHIP RECIPIENTS.

       ``(a) Authorization.--An eligible institution that receives 
     a grant under this subpart shall use the grant funds to make 
     fellowship awards to minorities and women who are enrolled at 
     such institution in a doctoral degree, or highest possible 
     degree available, program and--
       ``(1) intend to pursue a career in instruction at--
       ``(A) an institution of higher education (as the term is 
     defined in section 101);
       ``(B) an institution of higher education (as the term is 
     defined in section 102(a)(1));
       ``(C) an institution of higher education outside the United 
     States (as the term is described in section 102(a)(2)); or
       ``(D) a proprietary institution of higher education (as the 
     term is defined in section 102(b)); and
       ``(2) sign an agreement with the Secretary agreeing to 
     begin employment at an institution described in paragraph (1) 
     not later than 5 years after receiving the doctoral degree or 
     highest possible degree available, and to be employed by such 
     institution for 1 year for each year of fellowship assistance 
     received under this subpart.
       ``(b) Failure To Comply.--If an individual who receives a 
     fellowship award under this subpart fails to comply with the 
     agreement signed pursuant to subsection (a)(2), then the 
     Secretary shall do 1 or both of the following:
       ``(1) Require the individual to repay all or the applicable 
     portion of the total fellowship amount awarded to the 
     individual by converting the balance due to a loan at the 
     interest rate applicable to loans made under part B of title 
     IV.
       ``(2) Impose a fine or penalty in an amount to be 
     determined by the Secretary.
       ``(c) Waiver and Modification.--
       ``(1) Regulations.--The Secretary shall promulgate 
     regulations setting forth criteria to be considered in 
     granting a waiver for the service requirement under 
     subsection (a)(2).
       ``(2) Content.--The criteria under paragraph (1) shall 
     include whether compliance with the service requirement by 
     the fellowship recipient would be--
       ``(A) inequitable and represent a substantial hardship; or
       ``(B) deemed impossible because the individual is 
     permanently and totally disabled at the time of the waiver 
     request.
       ``(d) Amount of Fellowship Awards.--Fellowship awards under 
     this subpart shall consist of a stipend in an amount equal to 
     the level of support provided to the National Science 
     Foundation graduate fellows, except that such stipend shall 
     be adjusted as necessary so as not to exceed the fellow's 
     tuition and fees or demonstrated need (as determined by the 
     institution of higher education where the graduate student is 
     enrolled), whichever is greater.
       ``(e) Academic Progress Required.--An individual student 
     shall not be eligible to receive a fellowship award--
       ``(1) except during periods in which such student is 
     enrolled, and such student is maintaining satisfactory 
     academic progress in, and devoting essentially full time to, 
     study or research in the pursuit of the degree for which the 
     fellowship support was awarded; and
       ``(2) if the student is engaged in gainful employment, 
     other than part-time employment in teaching, research, or 
     similar activity determined by the eligible institution to be 
     consistent with and supportive of the student's progress 
     toward the appropriate degree.

     ``SEC. 735. RULE OF CONSTRUCTION.

       ``Nothing in this subpart shall be construed to require an 
     eligible institution that receives a grant under this 
     subpart--
       ``(1) to grant a preference or to differentially treat any 
     applicant for a faculty position as a result of the 
     institution's participation in the program under this 
     subpart; or
       ``(2) to hire a Patsy T. Mink Fellow who completes this 
     program and seeks employment at such institution.

     ``SEC. 736. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     subpart $25,000,000 for fiscal year 2006 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years.''.

     SEC. 6. COST OF ATTENDANCE FOR STUDENTS WITH 1 OR MORE 
                   DEPENDENTS.

       Section 472 of the Higher Education Act of 1965 (20 U.S.C. 
     1087ll) is amended by striking paragraph (8) and inserting 
     the following:
       ``(8) for a student with 1 or more dependents--
       ``(A) an allowance based on the estimated actual expenses 
     incurred for such dependent care, based on the number and age 
     of such dependents, except that--
       ``(i) such allowance shall not exceed the reasonable cost 
     in the community in which such student resides for the kind 
     of care provided; and
       ``(ii) the period for which dependent care is required 
     includes class-time, study-time, field work, internships, and 
     commuting time; and
       ``(B) if the student is a graduate student, an allowance 
     based on the estimated actual living expenses incurred for 
     such dependents, based on the number and age of such 
     dependents, including--
       ``(i) room and board for such dependents; and
       ``(ii) health insurance for such dependents;''.

     SEC. 7. UNSUBSIDIZED STAFFORD LOAN LIMITS FOR GRADUATE AND 
                   PROFESSIONAL STUDENTS.

       Section 428H(d)(2)(C) of the Higher Education Act of 1965 
     (20 U.S.C. 1078-8(d)(2)(C)) is amended by striking 
     ``$10,000'' and inserting ``$12,000''.

     SEC. 8. ALLOWANCE OF ROOM, BOARD, AND SPECIAL NEEDS SERVICES 
                   IN THE CASE OF SCHOLARSHIPS AND TUITION 
                   REDUCTION PROGRAMS WITH RESPECT TO HIGHER 
                   EDUCATION.

       (a) In General.--Paragraph (1) of section 117(b) of the 
     Internal Revenue Code of 1986 (defining qualified 
     scholarship) is amended by inserting before the period at the 
     end the following: ``or, in the case of enrollment or 
     attendance at an eligible educational institution, for 
     qualified higher education expenses''.
       (b) Definitions.--Subsection (b) of section 117 of such 
     Code is amended by adding at the end the following new 
     paragraph:
       ``(3) Qualified higher education expenses; eligible 
     educational institution.--The terms `qualified higher 
     education expenses' and `eligible educational institution' 
     have the meanings given such terms in section 529(e).''.
       (c) Tuition Reduction Programs.--Paragraph (5) of section 
     117(d) of such Code (relating to special rules for teaching 
     and research assistants) is amended by striking ``shall be 
     applied as if it did not contain the phrase `(below the 
     graduate level)'.'' and inserting ``shall be applied--
       ``(A) as if it did not contain the phrase `(below the 
     graduate level)', and
       ``(B) by substituting `qualified higher education expenses' 
     for `tuition' the second place it appears.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to expenses paid after December 31, 2004 (in 
     taxable years ending after such date), for education 
     furnished in academic periods beginning after such date.

     SEC. 9. PROGRAM FUNDING THROUGH TAX-EXEMPT SECURITIES.

       (a) Special Allowances.--
       (1) Technical correction.--Section 2 of the Taxpayer-
     Teacher Protection Act of 2004 (Public Law 108-409; 118 Stat. 
     2299) is amended in the matter preceding paragraph (1) by 
     inserting ``of the Higher Education Act of 1965'' after 
     ``Section 438(b)(2)(B)''.
       (2) In general.--Section 438(b)(2)(B) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(B)) (as amended 
     by section 2 of the Taxpayer-Teacher Protection Act of 2004) 
     is amended--
       (A) in clause (iv), by striking ``1993, or refunded after 
     September 30, 2004, and before January 1, 2006, the'' and 
     inserting ``1993, or refunded on or after the date of 
     enactment of the Taxpayer-Teacher Protection Act of 2004, 
     the''; and
       (B) by striking clause (v) and inserting the following:
       ``(v) Notwithstanding clauses (i) and (ii), the quarterly 
     rate of the special allowance shall be the rate determined 
     under subparagraph (A), (E), (F), (G), (H), or (I) of this 
     paragraph, or paragraph (4), as the case may be, for loans--

       ``(I) originated, transferred, or purchased on or after the 
     date of enactment of the Taxpayer-Teacher Protection Act of 
     2004;
       ``(II) financed by an obligation that has matured, been 
     retired, or defeased on or after the date of enactment of the 
     Taxpayer-Teacher Protection Act of 2004;
       ``(III) which the special allowance was determined under 
     such subparagraphs or paragraph, as the case may be, on or 
     after the date of enactment of the Taxpayer-Teacher 
     Protection Act of 2004;
       ``(IV) for which the maturity date of the obligation from 
     which funds were obtained for such loans was extended on or 
     after the date of enactment of the Taxpayer-Teacher 
     Protection Act of 2004; or

[[Page S6238]]

       ``(V) sold or transferred to any other holder on or after 
     the date of enactment of the Taxpayer-Teacher Protection Act 
     of 2004.''.

       (3) Rule of construction.--Nothing in the amendment made by 
     paragraph (2) shall be construed to abrogate a contractual 
     agreement between the Federal Government and a student loan 
     provider.
       (b) Available Funds From Reduced Expenditures.--Any funds 
     available to the Secretary of Education as a result of 
     reduced expenditures under section 438 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087-1) secured by the 
     enactment of subsection (a) shall be used by the Secretary to 
     carry out the programs and activities authorized under this 
     Act.
                                 ______