[Congressional Record Volume 151, Number 109 (Tuesday, September 6, 2005)]
[Senate]
[Pages S9648-S9691]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ENZI (for himself and Mr. Kennedy):
  S. 1614. A bill to extend the authorization of programs under the 
Higher Education Act of 1965, and for other purposes; to the Committee 
on Health, Education, Labor, and Pensions.
  Mr. ENZI. Mr. President, I rise today to introduce the Higher 
Education Amendments of 2005.
  Education beyond high school and lifelong education opportunities are 
vital if we are to retain our competitive edge in the global economy 
and make every American a part of our Nation's success story. Our 
workforce needs education and training that will

[[Page S9649]]

meet the demands of tomorrow's workplace.
  Technology, demographics and diversity have brought far-reaching 
changes to the U.S. economy and the workplace, including an increased 
demand for a well-educated and highly skilled workforce. Those changes 
will continue and the need for skilled workers will only increase in 
the years to come.
  The reauthorization of the Higher Education Act is an important part 
of meeting these concerns. Today's students will become tomorrow's 
leaders, in the economy, in education, and in every other aspect of our 
society. A strong postsecondary education will be the key to their 
future success in those roles.
  I am pleased to be introducing this legislation with my distinguished 
colleague and ranking member of the Committee, Senator Kennedy. He and 
I both share a commitment to improving access and quality of 
postsecondary education for all students, and a strong interest in 
keeping America competitive in this global economy.
  The legislation we are introducing today will improve postsecondary 
education by strengthening the accreditation process, improving access 
through the use of technology, supporting student financial aid 
programs, reducing the need for remedial education, helping more 
students complete high school, and supporting transitions for all 
students from high school to college.
  Among the most important provisions of this bill is a program that 
would provide additional grant aid to those students with the greatest 
financial need. This legislation would also focus its resources on 
increasing the number of math and science graduates by providing 
additional grant aid for students in their third and fourth years of 
college.
  This legislation would also increase access to Federally guaranteed 
student loans, which would help ensure that students are not forced to 
take out higher interest loans from other sources. It would also expand 
the role of institutions and guaranty agencies in providing financial 
literacy to students, so they will make better choices regarding their 
financial future.
  In addition to these priorities, the bill would also help to address 
the Federal deficit in a meaningful way, by saving $7 billion over the 
next 5 years. Although we were forced to make some difficult choices in 
reaching this level of deficit reduction, I am pleased that we were 
also able to write good policy, provide increased support for students 
and put in place a program that will help strengthen America's place in 
the global marketplace our economy.
  I ask unanimous consent that the text of the bill be printed in the 
Record.

                                S. 1614

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Higher 
     Education Amendments of 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. References.
Sec. 3. General effective date.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Additional definitions.
Sec. 102. General definition of institution of higher education.
Sec. 103. Definition of institution of higher education for purposes of 
              title IV programs.
Sec. 104. Protection of student speech and association rights.
Sec. 105. National Advisory Committee on Institutional Quality and 
              Integrity.
Sec. 106. Drug and alcohol abuse prevention.
Sec. 107. Prior rights and obligations.
Sec. 108. Cost of higher education.
Sec. 109. Performance-based organization for the delivery of Federal 
              student financial assistance.
Sec. 110. Procurement flexibility.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement grants for States and 
              partnerships.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Program purpose.
Sec. 302. Definitions; eligibility.
Sec. 303. American Indian tribally controlled colleges and 
              universities.
Sec. 304. Alaska native and native Hawaiian-serving institutions.
Sec. 305. Native American-serving, nontribal institutions.
Sec. 306. Part B definitions.
Sec. 307. Grants to institutions.
Sec. 308. Allotments to institutions.
Sec. 309. Professional or graduate institutions.
Sec. 310. Authorization of appropriations.
Sec. 311. Technical corrections.

                      TITLE IV--STUDENT ASSISTANCE

  Part A--Grants to Students in Attendance at Institutions of Higher 
                               Education

Sec. 401. Federal Pell Grants.
Sec. 402. Federal trio programs.
Sec. 403. Gaining early awareness and readiness for undergraduate 
              programs.
Sec. 404. Academic achievement incentive scholarships.
Sec. 405. Federal supplemental educational opportunity grants.
Sec. 406. Leveraging Educational Assistance Partnership Program.
Sec. 407. Special programs for students whose families are engaged in 
              migrant and seasonal farmwork.
Sec. 408. Robert C. Byrd Honors Scholarship Program.
Sec. 409. Child care access means parents in school.
Sec. 410. Learning anytime anywhere partnerships.

             Part B--Federal Family Education Loan Program

Sec. 421. Extension of authorities.
Sec. 422. Federal payments to reduce student interest costs.
Sec. 423. Federal consolidation loans.
Sec. 424. Default Reduction Program.
Sec. 425. Reports to credit bureaus and institutions of higher 
              education.
Sec. 426. Common forms and formats.
Sec. 427. Student loan information by eligible borrowers.
Sec. 428. Consumer education information.
Sec. 429. Definition of eligible lender.
Sec. 430. Repayment by the Secretary of loans of bankrupt, deceased, or 
              disabled borrowers; treatment of borrowers attending 
              schools that fail to provide a refund, attending closed 
              schools, or falsely certified as eligible to borrow.

                  Part C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Allowance for books and supplies.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Job location and development programs.
Sec. 445. Work colleges.

          Part D--William D. Ford Federal Direct Loan Program

Sec. 451. Funds for administrative expenses.

                     Part E--Federal Perkins Loans

Sec. 461. Program authority.
Sec. 462. Terms of loans.
Sec. 463. Cancellation of loans for certain public service.

                         Part F--Need Analysis

Sec. 471. Cost of attendance.
Sec. 472. Definitions.

       Part G--General Provisions Relating to Student Assistance

Sec. 481. Definition of academic and award year.
Sec. 482. Compliance calendar.
Sec. 483. Forms and regulations.
Sec. 484. Student eligibility.
Sec. 485. Statute of limitations and state court judgments.
Sec. 486. Institutional refunds.
Sec. 487. Institutional and financial assistance for students.
Sec. 488. National student loan data system.
Sec. 489. Early awareness of financial aid eligibility and 
              demonstration program to provide early estimates and 
              early awards of financial aid.
Sec. 490. College Access Initiative.
Sec. 491. Program participation agreements.
Sec. 492. Regulatory relief and improvement.
Sec. 493. Transfer of allotments.
Sec. 494. Wage garnishment requirement.
Sec. 495. Purpose of administrative payments.
Sec. 496. Advisory Committee on Student Financial Assistance.
Sec. 497. Regional meetings.
Sec. 498. Year 2000 requirements at the Department.

                       Part H--Program Integrity

Sec. 499. Recognition of accrediting agency or association.
Sec. 499A. Administrative capacity standard.
Sec. 499B. Program review and data.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Definitions.
Sec. 502. Authorized activities.
Sec. 503. Duration of grant.
Sec. 504. Postbaccalaureate opportunities for Hispanic Americans.
Sec. 505. Applications.
Sec. 506. Cooperative arrangements.
Sec. 507. Authorization of appropriations.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Findings.
Sec. 602. Graduate and undergraduate language and area centers and 
              programs.
Sec. 603. Undergraduate international studies and foreign language 
              programs.

[[Page S9650]]

Sec. 604. Research; studies.
Sec. 605. Technological innovation and cooperation for foreign 
              information access.
Sec. 606. Selection of certain grant recipients.
Sec. 607. American overseas research centers.
Sec. 608. Authorization of appropriations for international and foreign 
              language studies.
Sec. 609. Centers for international business education.
Sec. 610. Education and training programs.
Sec. 611. Authorization of appropriations for business and 
              international education programs.
Sec. 612. Minority foreign service professional development program.
Sec. 613. Institutional development.
Sec. 614. Study abroad program.
Sec. 615. Advanced degree in international relations.
Sec. 616. Internships.
Sec. 617. Financial assistance.
Sec. 618. Report.
Sec. 619. Gifts and donations.
Sec. 620. Authorization of appropriations for the Institute for 
              International Public Policy.
Sec. 621. Definitions.
Sec. 622. Assessment and enforcement.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Purpose.
Sec. 702. Allocation of Jacob K. Javits Fellowships.
Sec. 703. Stipends.
Sec. 704. Authorization of appropriations for the Jacob K. Javits 
              Fellowship Program.
Sec. 705. Institutional eligibility under the Graduate Assistance in 
              Areas of National Need Program.
Sec. 706. Awards to graduate students.
Sec. 707. Additional assistance for cost of education.
Sec. 708. Authorization of appropriations for the Graduate Assistance 
              in Areas of National Need Program.
Sec. 709. Authorization of appropriations for the Thurgood Marshall 
              Legal Educational Opportunity Program.
Sec. 710. Fund for the improvement of postsecondary education.
Sec. 711. Special projects.
Sec. 712. Authorization of appropriations for the fund for the 
              improvement of postsecondary education.
Sec. 713. Authorization of appropriations for the urban community 
              service program.
Sec. 714. Grants authorized for demonstration projects to ensure 
              students with disabilities receive a quality higher 
              education.
Sec. 715. Applications for demonstration projects to ensure students 
              with disabilities receive a quality higher education.
Sec. 716. Authorization of appropriations for the demonstration 
              projects to ensure students with disabilities receive a 
              quality higher education.

                       TITLE VIII--MISCELLANEOUS

Sec. 801. Mathematics and Science Scholars Program.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               Part A--Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Agreement with Gallaudet University.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Cultural experiences grants.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Monitoring, evaluation, and reporting.
Sec. 908. Liaison for educational programs.
Sec. 909. Federal endowment programs for Gallaudet University and the 
              National Technical Institute for the Deaf.
Sec. 910. Oversight and effect of agreements.
Sec. 911. International students.
Sec. 912. Research priorities.
Sec. 913. Authorization of appropriations.

              Part B--United States Institute of Peace Act

Sec. 921. United States Institute of Peace Act.

            Part C--The Higher Education Amendments of 1998

Sec. 931. Repeals.
Sec. 932. Grants to States for workplace and community transition 
              training for incarcerated youth offenders.

                        Part D--Indian Education


              Subpart 1--Tribal Colleges and Universities

Sec. 941. Tribally Controlled College and University Assistance.


                   Subpart 2--Navajo Higher Education

Sec. 945. Short title.
Sec. 946. Reauthorization of the Navajo Community College Act.

                        TITLE X--RECONCILIATION

Sec. 1001. Provisional grant assistance program.
Sec. 1002. National SMART grants.
Sec. 1003. Loan limits.
Sec. 1004. PLUS loan interest rates and zero special allowance payment.
Sec. 1005. Reduction of lender insurance reimbursement rates.
Sec. 1006. Guaranty agency origination fee.
Sec. 1007. Deferment of student loans for military service.
Sec. 1008. Rehabilitation through consolidation.
Sec. 1009. Single holder rule.
Sec. 1010. Default reduction program.
Sec. 1011. Requirements for disbursements of student loans.
Sec. 1012. Special insurance and reinsurance rules.
Sec. 1013. School as lender moratorium.
Sec. 1014. Permanent reduction of special allowance payments for loans 
              from the proceeds of tax exempt issues.
Sec. 1015. Loan fees from lenders.
Sec. 1016. Origination fee.
Sec. 1017. Income contingent repayment for public sector employees.
Sec. 1018. Income protection allowance for dependent students.
Sec. 1019. Simplified need test and automatic zero improvements.
Sec. 1020. Loan forgiveness for teachers.

     SEC. 2. REFERENCES.

       Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Higher Education Act of 1965 (20 
     U.S.C. 1001 et seq.).

     SEC. 3. GENERAL EFFECTIVE DATE.

       Except as otherwise provided in this Act or the amendments 
     made by this Act, the amendments made by this Act shall take 
     effect on July 1, 2006.

                      TITLE I--GENERAL PROVISIONS

     SEC. 101. ADDITIONAL DEFINITIONS.

       (a) Amendment.--Section 103 (20 U.S.C. 1003) is amended--
       (1) by redesignating paragraphs (1) through (16) as 
     paragraphs (2) through (17), respectively; and
       (2) by inserting before paragraph (2) (as redesignated by 
     paragraph (1)) the following:
       ``(1) Authorizing committees.--The term `authorizing 
     committees' means the Committee on Health, Education, Labor, 
     and Pensions of the Senate and the Committee on Education and 
     the Workforce of the House of Representatives.''.
       (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et 
     seq.) is amended--
       (1) in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees'';
       (2) in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), by 
     striking ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``authorizing 
     committees'';
       (3) in section 206 (20 U.S.C. 1026)--
       (A) in the matter preceding paragraph (1) of subsection 
     (a), by striking ``, the Committee on Labor and Human 
     Resources of the Senate, and the Committee on Education and 
     the Workforce of the House of Representatives'' and inserting 
     ``and the authorizing committees''; and
       (B) in subsection (d), by striking ``Committee on Labor and 
     Human Resources of the Senate and the Committee on Education 
     and the Workforce of the House of Representatives'' and 
     inserting ``authorizing committees'';
       (4) in section 207(c)(1) (20 U.S.C. 1027(c)(1)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees'';
       (5) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by 
     striking ``to the Committee on Appropriations'' and all that 
     follows through ``House of Representatives'' and inserting 
     ``to the Committee on Appropriations of the Senate, the 
     Committee on Appropriations of the House of Representatives, 
     and the authorizing committees'';
       (6) in section 428 (20 U.S.C. 1078)--
       (A) in subsection (c)(9)(K), by striking ``House Committee 
     on Education and the Workforce and the Senate Committee on 
     Labor and Human Resources'' and inserting ``authorizing 
     committees'';
       (B) in the matter following paragraph (2) of subsection 
     (g), by striking ``Committee on Labor and Human Resources of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives'' and inserting ``authorizing 
     committees''; and
       (C) in subsection (n)(4), ``Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Labor and Human Resources of the Senate'' and inserting 
     ``authorizing committees'';
       (7) in section 428A (20 U.S.C. 1078-1)--
       (A) in the matter preceding subparagraph (A) of subsection 
     (a)(4), by striking ``Committee on Labor and Human Resources 
     of the Senate and the Committee on Education and the 
     Workforce of the House of Representatives'' and inserting 
     ``authorizing committees''; and
       (B) in subsection (c)--
       (i) in the matter preceding subparagraph (A) of paragraph 
     (2), by striking ``Chairperson'' and all that follows through 
     ``House of Representatives'' and inserting ``Chairpersons and 
     Ranking Members of the authorizing committees'';
       (ii) in paragraph (3), by striking ``Chairperson'' and all 
     that follows through ``House

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     of Representatives'' and inserting ``Chairpersons and Ranking 
     Members of the authorizing committees''; and
       (iii) in paragraph (5), by striking ``Chairperson'' and all 
     that follows through ``House of Representatives'' and 
     inserting ``Chairpersons and Ranking Members of the 
     authorizing committees'';
       (8) in the matter preceding paragraph (1) of section 
     428I(h) (20 U.S.C. 1078-9(h)), by striking ``Chairman'' and 
     all that follows through ``Education and Labor'' and 
     inserting ``Chairpersons of the authorizing committees'';
       (9) in section 432 (20 U.S.C. 1082)--
       (A) in subsection (f)(1)(C), by striking ``the Committee on 
     Education and the Workforce of the House of Representatives 
     or the Committee on Labor and Human Resources of the Senate'' 
     and inserting ``either of the authorizing committees''; and
       (B) in the matter following subparagraph (D) of subsection 
     (n)(3), by striking ``Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Labor and Human Resources of the Senate'' and inserting 
     ``authorizing committees'';
       (10) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), by 
     striking ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``authorizing 
     committees'';
       (11) in section 439 (20 U.S.C. 1087-2)--
       (A) in subsection (d)(1)(E)(iii), by striking ``advise the 
     Chairman'' and all that follows through ``House of 
     Representatives'' and inserting ``advise the Chairpersons and 
     Ranking Members of the authorizing committees'';
       (B) in subsection (r)--
       (i) in paragraph (3), by striking ``inform the Chairman'' 
     and all that follows through ``House of Representatives,'' 
     and inserting ``inform the Chairpersons and Ranking Members 
     of the authorizing committees'';
       (ii) in paragraph (5)(B), by striking ``plan, to the 
     Chairman'' and all that follows through ``Education and 
     Labor'' and inserting ``plan, to the Chairpersons and Ranking 
     Members of the authorizing committees'';
       (iii) in paragraph (6)(B)--

       (I) by striking ``plan, to the Chairman'' and all that 
     follows through ``House of Representatives'' and inserting 
     ``plan, to the Chairpersons and Ranking Members of the 
     authorizing committees''; and
       (II) by striking ``Chairmen and ranking minority members of 
     such Committees'' and inserting ``Chairpersons and Ranking 
     Members of the authorizing committees'';

       (iv) in paragraph (8)(C), by striking ``implemented to the 
     Chairman'' and all that follows through ``House of 
     Representatives, and'' and inserting ``implemented to the 
     Chairpersons and Ranking Members of the authorizing 
     committees, and to''; and
       (v) in the matter preceding subparagraph (A) of paragraph 
     (10), by striking ``days to the Chairman'' and all that 
     follows through ``Education and Labor'' and inserting ``days 
     to the Chairpersons and Ranking Members of the authorizing 
     committees''; and
       (C) in subsection (s)(2)--
       (i) in the matter preceding clause (i) of subparagraph (A), 
     by striking ``Treasury and to the Chairman'' and all that 
     follows through ``House of Representatives'' and inserting 
     ``Treasury and to the Chairpersons and Ranking Members of the 
     authorizing committees''; and
       (ii) in subparagraph (B), by striking ``Treasury and to the 
     Chairman'' and all that follows through ``House of 
     Representatives'' and inserting ``Treasury and to the 
     Chairpersons and Ranking Members of the authorizing 
     committees'';
       (12) in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees'';
       (13) in section 482(d) (20 U.S.C. 1089(d)), by striking 
     ``Committee on Labor and Human Resources of the Senate and 
     the Committee on Education and Labor of the House of 
     Representatives'' and inserting ``authorizing committees'';
       (14) in section 483(c) (20 U.S.C. 1090(c)), by striking 
     ``Committee on Labor and Human Resources of the Senate and 
     the Committee on Education and the Workforce of the House of 
     Representatives'' and inserting ``authorizing committees'';
       (15) in section 485 (20 U.S.C. 1092)--
       (A) in subsection (f)(5)(A), by striking ``Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Labor and Human Resources of the 
     Senate'' and inserting ``authorizing committees''; and
       (B) in subsection (g)(4)(B), by striking ``Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Labor and Human Resources of the 
     Senate'' and inserting ``authorizing committees'';
       (16) in section 486 (20 U.S.C. 1093)--
       (A) in subsection (e), by striking ``Committee on Labor and 
     Human Resources of the Senate and the Committee on Education 
     and the Workforce of the House of Representatives'' and 
     inserting ``authorizing committees''; and
       (B) in subsection (f)(3)--
       (i) in the matter preceding clause (i) of subparagraph (A), 
     by striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees''; and
       (ii) in the matter preceding clause (i) of subparagraph 
     (B), by striking ``Committee on Labor and Human Resources of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives'' and inserting ``authorizing 
     committees'';
       (17) in section 487A (20 U.S.C. 1094a)--
       (A) in subsection (a)(5), by striking ``Committee on Labor 
     and Human Resources of the Senate and the Committee on 
     Education and the Workforce of the House of Representatives'' 
     and inserting ``authorizing committees''; and
       (B) in subsection (b)(3)(B), in the matter preceding clause 
     (i)--
       (i) by striking ``Committee on Labor and Human Resources of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives'' and inserting ``authorizing 
     committees''; and
       (ii) by striking ``such Committees'' and inserting ``the 
     authorizing committees'';
       (18) in section 493A(a)(5) (20 U.S.C. 1098c(a)(5)), by 
     striking ``Chairperson of the Committee on Labor and Human 
     Resources of the Senate and the Chairperson of the Committee 
     on Education and the Workforce of the House of 
     Representatives'' and inserting ``Chairpersons of the 
     authorizing committees''; and
       (19) in section 498B(d) (20 U.S.C. 1099c-2(d))--
       (A) in paragraph (1), by striking ``Committee on Labor and 
     Human Resources of the Senate and the Committee on Education 
     and the Workforce of the House of Representatives'' and 
     inserting ``authorizing committees''; and
       (B) in paragraph (2), by striking ``Committee on Labor and 
     Human Resources of the Senate and the Committee on Education 
     and the Workforce of the House of Representatives'' and 
     inserting ``authorizing committees''.

     SEC. 102. GENERAL DEFINITION OF INSTITUTION OF HIGHER 
                   EDUCATION.

       Section 101 (20 U.S.C. 1001) is amended--
       (1) in subsection (a)(3), by inserting ``, or awards a 
     degree that is acceptable for admission to a graduate or 
     professional degree program, subject to the review and 
     approval by the Secretary'' after ``such a degree''; and
       (2) by striking subsection (b)(2) and inserting the 
     following:
       ``(2) a public or nonprofit private educational institution 
     in any State that, in lieu of the requirement in subsection 
     (a)(1), admits as regular students persons--
       ``(A) who meet the requirements of section 484(d)(3);
       ``(B) who are beyond the age of compulsory school 
     attendance in the State in which the institution is located; 
     or
       ``(C) who will be dually or concurrently enrolled in such 
     institution and a secondary school.''.

     SEC. 103. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR 
                   PURPOSES OF TITLE IV PROGRAMS.

       Section 102 (20 U.S.C. 1002) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (2)(A)(i) and inserting the 
     following:
       ``(i) in the case of a graduate medical school located 
     outside the United States--

       ``(I) at least 60 percent of those enrolled in, and at 
     least 60 percent of the graduates of, the graduate medical 
     school outside the United States were not persons described 
     in section 484(a)(5) in the year preceding the year for which 
     a student is seeking a loan under part B of title IV; and
       ``(II) at least 60 percent of the individuals who were 
     students or graduates of the graduate medical school outside 
     the United States or Canada (both nationals of the United 
     States and others) taking the examinations administered by 
     the Educational Commission for Foreign Medical Graduates 
     received a passing score in the year preceding the year for 
     which a student is seeking a loan under part B of title IV; 
     or'';

       (B) by striking paragraph (3) and inserting the following:
       ``(3) Limitations based on enrollment.--An institution 
     shall not be considered to meet the definition of an 
     institution of higher education in paragraph (1) if such 
     institution--
       ``(A) has a student enrollment in which more than 25 
     percent of the students are incarcerated, except that the 
     Secretary may waive the limitation contained in this 
     subparagraph for a nonprofit institution that provides a 2- 
     or 4-year program of instruction (or both) for which the 
     institution awards a bachelor's degree, or an associate's 
     degree or a postsecondary diploma, respectively; or
       ``(B) has a student enrollment in which more than 50 
     percent of the students do not have a secondary school 
     diploma or its recognized equivalent, and does not provide a 
     2- or 4-year program of instruction (or both) for which the 
     institution awards a bachelor's degree or an associate's 
     degree, respectively, except that the Secretary may waive the 
     limitation contained in this subparagraph if a nonprofit 
     institution demonstrates to the satisfaction of the Secretary 
     that the institution exceeds such limitation because the 
     institution serves, through contracts with Federal, State, or 
     local government agencies, significant numbers of students 
     who do not have a secondary school diploma or its recognized 
     equivalent.'';
       (C) by redesignating paragraphs (4), (5), and (6), as 
     paragraphs (5), (6), and (7), respectively; and

[[Page S9652]]

       (D) by inserting after paragraph (3) the following:
       ``(4) Limitations based on mode of delivery.--
       ``(A) In general.--An institution shall not be considered 
     to meet the definition of an institution of higher education 
     in paragraph (1) if such institution--
       ``(i) offers more than 50 percent of such institution's 
     courses by correspondence, unless the institution is an 
     institution that meets the definition in section 3(3)(C) of 
     the Carl D. Perkins Vocational and Technical Education Act of 
     1998; or
       ``(ii) enrolls 50 percent or more of the institution's 
     students in correspondence courses, unless the institution is 
     an institution that meets the definition in such section 
     3(3)(C), except that the Secretary, at the request of such 
     institution, may waive the applicability of this subparagraph 
     to such institution for good cause, as determined by the 
     Secretary in the case of an institution of higher education 
     that provides a 2- or 4-year program of instruction (or both) 
     for which the institution awards an associate or 
     baccalaureate degree, respectively.
       ``(B) Distance education program eligibility.--
     Notwithstanding subparagraph (A), an institution of higher 
     education, other than a foreign institution, that offers 
     education or training programs principally through distance 
     education shall be considered to meet the definition of an 
     institution of higher education in paragraph (1) if such 
     institution--
       ``(i) has been evaluated and determined (before or after 
     the date of enactment of the Higher Education Amendments of 
     2005) to have capability to effectively deliver distance 
     education programs by an accrediting agency or association 
     that--

       ``(I) is recognized by the Secretary under title IV; and
       ``(II) has evaluation of distance education programs within 
     the scope of its recognition, as described in section 
     496(n)(3);

       ``(ii) is otherwise eligible to participate in programs 
     authorized under title IV;
       ``(iii) has not had its participation in programs under 
     title IV suspended or terminated within the 5 years preceding 
     the year for which the determination is made;
       ``(iv) has not had, or failed to resolve, an audit finding 
     or program review finding under this Act during the 2 years 
     preceding the year for which the determination is made that, 
     following any appeal to the Secretary, resulted in the 
     institution being required to repay an amount that is equal 
     to or greater than 25 percent of the total funds the 
     institution received under the programs authorized under 
     title IV for the most recent award year; and
       ``(v) has met the requirements of section 487(d), if 
     applicable.
       ``(C) Definition.--
       ``(i) In general.--In this Act, except as otherwise 
     provided, the term `distance education' means a course or 
     program that uses 1 or more of the technologies described in 
     clause (ii) to--

       ``(I) deliver instruction to students who are separated 
     from the instructor; and
       ``(II) support regular and substantive interaction between 
     the students and the instructor, either synchronously or 
     asynchronously.

       ``(ii) Inclusions.--For the purposes of clause (i), the 
     technologies used may include--

       ``(I) the Internet;
       ``(II) one-way and two-way transmissions through open 
     broadcast, closed circuit, cable, microwave, broadband lines, 
     fiber optics, satellite, or wireless communications devices;
       ``(III) audio conferencing; or
       ``(IV) video cassette, DVDs, and CD-ROMs, provided that 
     they are used in a course in conjunction with the 
     technologies listed in subclauses (I) through (III).''; and

       (2) in subsection (b)(1)--
       (A) in subparagraph (D), by inserting ``and'' after the 
     semicolon;
       (B) in subparagraph (E), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (F).

     SEC. 104. PROTECTION OF STUDENT SPEECH AND ASSOCIATION 
                   RIGHTS.

       Section 112 (20 U.S.C. 1011a) is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' before ``It is the sense''; and
       (B) by adding at the end the following:
       ``(2) It is the sense of Congress that--
       ``(A) the diversity of institutions and educational 
     missions is one of the key strengths of American higher 
     education;
       ``(B) individual colleges and universities have different 
     missions and each institution should design its academic 
     program in accordance with its educational goals;
       ``(C) within the context of institutional mission, a 
     college should facilitate the free and open exchange of 
     ideas;
       ``(D) students should not be intimated, harassed, 
     discouraged from speaking out, or discriminated against;
       ``(E) students should be treated equally and fairly; and
       ``(F) nothing in this paragraph shall be construed to 
     modify, change, or infringe upon any constitutionally 
     protected religious liberty, freedom, expression, or 
     association.''; and
       (2) in subsection (b)(1), by inserting ``, provided that 
     the imposition of such sanction is done objectively and 
     fairly'' after ``higher education''.

     SEC. 105. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL 
                   QUALITY AND INTEGRITY.

       Section 114(g) (20 U.S.C. 1011c(g)) is amended by striking 
     ``September 30, 2004'' and inserting ``September 30, 2011''.

     SEC. 106. DRUG AND ALCOHOL ABUSE PREVENTION.

       Section 120 (20 U.S.C. 1011i) is amended by striking 
     subsections (e) and (f) and inserting the following:
       ``(e) Grants Directed at Reducing Higher Education Drug and 
     Alcohol Abuse.--
       ``(1) Authorization of program.--The Secretary may award 
     grants to eligible entities to enable the entities to reduce 
     the rate of drug abuse, underage alcohol use, and binge 
     drinking among students at institutions of higher education.
       ``(2) Applications.--An eligible entity that desires to 
     receive a grant under this subsection shall submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require. Each application shall include--
       ``(A) a description of how the eligible entity will work to 
     enhance an existing, or where none exists to build a, 
     statewide coalition;
       ``(B) a description of how the eligible entity will target 
     underage students in the State;
       ``(C) a description of how the eligible entity intends to 
     ensure that the statewide coalition is actually implementing 
     the purpose described in paragraph (1) and moving toward the 
     achievement indicators described in paragraph (4);
       ``(D) a list of the members of the statewide coalition or 
     interested parties involved in the work of the eligible 
     entity;
       ``(E) a description of how the eligible entity intends to 
     work with State agencies on substance abuse prevention and 
     education;
       ``(F) the anticipated impact of funds provided under this 
     subsection in reducing the rates of drug abuse and underage 
     alcohol use;
       ``(G) outreach strategies, including ways in which the 
     eligible entity proposes to--
       ``(i) reach out to students;
       ``(ii) promote the purpose described in paragraph (1);
       ``(iii) address the range of needs of the students and the 
     surrounding communities; and
       ``(iv) address community norms for underage students 
     regarding drug abuse and alcohol use; and
       ``(H) such additional information as required by the 
     Secretary.
       ``(3) Uses of funds.--Each eligible entity that receives a 
     grant under this subsection shall use the grant funds to 
     carry out the activities described in such entity's 
     application submitted pursuant to paragraph (2).
       ``(4) Accountability.--On the date on which the Secretary 
     first publishes a notice in the Federal Register soliciting 
     applications for grants under this subsection, the Secretary 
     shall include in the notice achievement indicators for the 
     program authorized under this subsection. The achievement 
     indicators shall be designed--
       ``(A) to measure the impact that the statewide coalitions 
     assisted under this subsection are having on the institutions 
     of higher education and the surrounding communities, 
     including changes in the number of alcohol and drug-related 
     abuse incidents of any kind (including violations, physical 
     assaults, sexual assaults, reports of intimidation, 
     disruptions of school functions, disruptions of student 
     studies, mental health referrals, illnesses, or deaths);
       ``(B) to measure the quality and accessibility of the 
     programs or information offered by the statewide coalitions; 
     and
       ``(C) to provide such other measures of program impact as 
     the Secretary determines appropriate.
       ``(5) Supplement not supplant.--Grant funds provided under 
     this subsection shall be used to supplement, and not 
     supplant, Federal and non-Federal funds available for 
     carrying out the activities described in this subsection.
       ``(6) Definitions.--In this subsection:
       ``(A) Eligible entity.--The term `eligible entity' means a 
     State, an institution of higher education, or a nonprofit 
     entity.
       ``(B) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101(a).
       ``(C) State.--The term `State' means each of the 50 States, 
     the District of Columbia, and the Commonwealth of Puerto 
     Rico.
       ``(D) Statewide coalition.--The term `statewide coalition' 
     means a coalition that--
       ``(i) includes--

       ``(I) institutions of higher education within a State; and
       ``(II) a nonprofit group, a community drug abuse or 
     underage drinking prevention coalition, or another substance 
     abuse prevention group within a State; and

       ``(ii) works toward lowering the alcohol abuse rate by 
     targeting underage students at institutions of higher 
     education throughout the State and in the surrounding 
     communities.
       ``(E) Surrounding community.--The term `surrounding 
     community' means the community--
       ``(i) that surrounds an institution of higher education 
     participating in a statewide coalition;
       ``(ii) where the students from the institution of higher 
     education take part in the community; and

[[Page S9653]]

       ``(iii) where students from the institution of higher 
     education live in off-campus housing.
       ``(7) Administrative expenses.--Not more than 5 percent of 
     a grant awarded under this subsection may be expended for 
     administrative expenses.
       ``(8) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as may be necessary for fiscal year 2006 and each 
     of the 5 succeeding fiscal years.''.

     SEC. 107. PRIOR RIGHTS AND OBLIGATIONS.

       Section 121(a) (20 U.S.C. 1011j(a)) is amended--
       (1) in paragraph (1), by striking ``1999'' and inserting 
     ``2006''; and
       (2) in paragraph (2), by striking ``1999'' and inserting 
     ``2006''.

     SEC. 108. COST OF HIGHER EDUCATION.

       Section 131 (20 U.S.C. 1015) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) College Consumer Information.--
       ``(1) In general.--The Secretary shall make available to 
     the public, on an annual basis, the information described in 
     paragraph (2), in a form that enables the public to compare 
     the information among institutions of higher education. Such 
     information shall be made available for each of the 
     categories described in paragraph (3) and updated regularly.
       ``(2) Information.--The information described in this 
     paragraph is the following:
       ``(A) Tuition and fees for a full-time undergraduate 
     student.
       ``(B) Cost of attendance for a full-time undergraduate 
     student.
       ``(C) The average annual cost of attendance for a full-time 
     undergraduate student for the 10 academic years preceding the 
     year for which the information is made available under this 
     subsection, or if data are not available for such 10 
     preceding academic years, data for as many of such 10 
     preceding academic years as are available.
       ``(D) The percentage of full-time undergraduate students 
     receiving financial assistance, including--
       ``(i) Federal grants;
       ``(ii) State and local grants;
       ``(iii) institutional grants; and
       ``(iv) loans to students.
       ``(E) The percentage of students successfully transferring 
     academic credit from another institution of higher education.
       ``(F) Information regarding students who have completed an 
     undergraduate certificate or degree program and who are 
     placed in employment.
       ``(G) Information regarding students who have completed an 
     undergraduate degree and who enroll in graduate education.
       ``(H) A ranking of the dollar and percentage increases in 
     tuition for all institutions of higher education for which 
     data are available, disaggregated by quartiles.
       ``(3) Categories.--The categories described in this 
     paragraph are as follows:
       ``(A) All institutions of higher education.
       ``(B) 4-year public, degree-granting, institutions of 
     higher education.
       ``(C) 2-year public, degree-granting, institutions of 
     higher education.
       ``(D) 4-year, nonprofit, private, degree-granting 
     institutions of higher education.
       ``(E) 2-year, nonprofit, private, degree-granting 
     institutions of higher education.
       ``(F) 4-year, for-profit, private, degree-granting 
     institutions of higher education.
       ``(G) 2-year, for-profit, private, degree-granting 
     institutions of higher education.
       ``(4) Standard definitions.--In carrying out this section, 
     the Secretary shall use the standard definitions developed 
     under subsection (a)(3).''; and
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``be conducted on an 
     annual basis and'' after ``Such study shall'';
       (B) in paragraph (2)--
       (i) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (C), by striking the period and 
     inserting a semicolon; and
       (iii) by adding at the end the following:
       ``(D) the average cost of attending an institution of 
     higher education, disaggregated by category, as described in 
     subsection (b)(3), of institution of higher education;
       ``(E) the average annual cost of attending an institution 
     of higher education for the 10 academic years preceding the 
     year for which the study is conducted (if available), 
     disaggregated by category, as described in subsection (b)(3), 
     of institution of higher education; and
       ``(F) the assistance provided to institutions of higher 
     education by each State, which information the Secretary 
     shall make available to the public.'';
       (C) in paragraph (3)--
       (i) in the paragraph heading, by striking ``Final'' and 
     inserting ``Annual'';
       (ii) by striking ``a report'' and inserting ``an annual 
     report''; and
       (iii) by striking ``not later than September 30, 2002''; 
     and
       (D) by striking paragraph (4) and inserting the following:
       ``(4) Higher education cost index.--The Bureau of Labor 
     Statistics, in consultation with the Commissioner of 
     Education Statistics, shall develop a higher education cost 
     index that tracks inflation changes in the relevant costs 
     associated with higher education.''.

     SEC. 109. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF 
                   FEDERAL STUDENT FINANCIAL ASSISTANCE.

       Section 141 (20 U.S.C. 1018) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``operational'' and 
     inserting ``administrative and oversight''; and
       (B) in paragraph (2)(D), by striking ``of the operational 
     functions'' and inserting ``and administration'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``the information 
     systems administered by the PBO, and other functions 
     performed by the PBO'' and inserting ``the Federal student 
     financial assistance programs authorized under title IV''; 
     and
       (ii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) assist the Chief Operating Officer in identifying 
     goals for--
       ``(i) the administration of the systems used to administer 
     the Federal student financial assistance programs authorized 
     under title IV; and
       ``(ii) the updating of such systems to current 
     technology.''; and
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``administration of the information and financial systems 
     that support'' and inserting ``the administration of 
     Federal'';
       (ii) in subparagraph (A)--

       (I) in the matter preceding clause (i), by striking ``of 
     the delivery system for Federal student assistance'' and 
     inserting ``for the Federal student assistance programs 
     authorized under title IV'';
       (II) by striking clauses (i) and (ii) and inserting the 
     following:

       ``(i) the collection, processing, and transmission of data 
     to students, institutions, lenders, State agencies, and other 
     authorized parties;
       ``(ii) the design and technical specifications for software 
     development and procurement for systems supporting the 
     student financial assistance programs authorized under title 
     IV;'';

       (III) in clause (iii), by striking ``delivery'' and 
     inserting ``administration'';
       (IV) in clause (iv)--

       (aa) by inserting ``the'' after ``supporting''; and
       (bb) by striking ``and'' after the semicolon;

       (V) in clause (v), by striking ``systems that support those 
     programs.'' and inserting ``the administration of the Federal 
     student assistance programs authorized under title IV; and''; 
     and
       (VI) by adding at the end the following:

       ``(vi) ensuring the integrity of the student assistance 
     programs authorized under title IV.''; and
       (iii) in subparagraph (B), by striking ``operations and 
     services'' and inserting ``activities and functions''; and
       (3) in subsection (c)--
       (A) in paragraph (1)(C)--
       (i) in clause (iii), by striking ``information and 
     delivery''; and
       (ii) in clause (iv)--

       (I) by striking ``Developing an'' and inserting 
     ``Developing''; and
       (II) by striking ``delivery and information system'' and 
     inserting ``systems'';

       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``the'' after ``PBO 
     and''; and
       (ii) in subparagraph (B), by striking ``Officer'' and 
     inserting ``Officers''; and
       (C) in paragraph (3), by inserting ``students,'' after 
     ``consult with'';
       (4) in subsection (d)--
       (A) in paragraph (1), by striking the second sentence; and
       (B) in paragraph (5)--
       (i) in subparagraph (B), by striking ``paragraph (2)'' and 
     inserting ``paragraph (4)''; and
       (ii) in subparagraph (C), by striking ``this'';
       (5) in subsection (f)--
       (A) in paragraph (2), by striking ``to borrowers'' and 
     inserting ``to students, borrowers,''; and
       (B) in paragraph (3)(A), by striking ``(1)(A)'' and 
     inserting ``(1)'';
       (6) in subsection (g)(3), by striking ``not more than 25'';
       (7) in subsection (h), by striking ``organizational 
     effectiveness'' and inserting ``effectiveness'';
       (8) by striking subsection (i);
       (9) by redesignating subsection (j) as subsection (i); and
       (10) in subsection (i) (as redesignated by paragraph (9)), 
     by striking ``, including transition costs''.

     SEC. 110. PROCUREMENT FLEXIBILITY.

       Section 142 (20 U.S.C. 1018a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``for information systems supporting the 
     programs authorized under title IV''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) through the Chief Operating Officer--
       ``(A) to the maximum extent practicable, utilize 
     procurement systems that streamline operations, improve 
     internal controls, and enhance management; and
       ``(B) assess the efficiency of such systems and assess such 
     systems' ability to meet PBO requirements.'';
       (2) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) Fee for service arrangements.--The Chief Operating 
     Officer shall, when appropriate and consistent with the 
     purposes of

[[Page S9654]]

     the PBO, acquire services related to the functions set forth 
     in section 141(b)(2) from any entity that has the capability 
     and capacity to meet the requirements set by the PBO. The 
     Chief Operating Officer is authorized to pay fees that are 
     equivalent to those paid by other entities to an organization 
     that provides services that meet the requirements of the PBO, 
     as determined by the Chief Operating Officer.'';
       (3) in subsection (d)(2)(B), by striking ``on Federal 
     Government contracts'';
       (4) in subsection (g)--
       (A) in paragraph (4)(A)--
       (i) in the subparagraph heading, by striking ``Sole 
     source.--'' and inserting ``Single-source basis.--''; and
       (ii) by striking ``sole-source'' and inserting ``single-
     source''; and
       (B) in paragraph (7), by striking ``sole-source'' and 
     inserting ``single-source'';
       (5) in subsection (h)(2)(A), by striking ``sole-source'' 
     and inserting ``single-source''; and
       (6) in subsection (l), by striking paragraph (3) and 
     inserting the following:
       ``(3) Single-source basis.--The term `single-source basis', 
     with respect to an award of a contract, means that the 
     contract is awarded to a source after soliciting an offer or 
     offers from, and negotiating with, only such source (although 
     such source is not the only source in the marketplace capable 
     of meeting the need) because such source is the most 
     advantageous source for purposes of the award.''.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

     SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                   PARTNERSHIPS.

       Part A of title II (20 U.S.C. 1021 et seq.) is amended to 
     read as follows:

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                              PARTNERSHIPS

     ``SEC. 201. PURPOSES; DEFINITIONS.

       ``(a) Purposes.--The purposes of this part are to--
       ``(1) improve student achievement;
       ``(2) improve the quality of the current and future 
     teaching force by improving the preparation of prospective 
     teachers and enhancing professional development activities;
       ``(3) hold institutions of higher education accountable for 
     preparing highly qualified teachers; and
       ``(4) recruit qualified individuals, including minorities 
     and individuals from other occupations, into the teaching 
     force.
       ``(b) Definitions.--In this part:
       ``(1) Arts and sciences.--The term `arts and sciences' 
     means--
       ``(A) when referring to an organizational unit of an 
     institution of higher education, any academic unit that 
     offers 1 or more academic majors in disciplines or content 
     areas corresponding to the academic subject areas in which 
     teachers provide instruction; and
       ``(B) when referring to a specific academic subject area, 
     the disciplines or content areas in which academic majors are 
     offered by the arts and sciences organizational unit.
       ``(2) Children from low-income families.--The term 
     `children from low-income families' means children as 
     described in section 1124(c)(1)(A) of the Elementary and 
     Secondary Education Act of 1965.
       ``(3) Early childhood education program.--The term `early 
     childhood education program' means a Head Start program or an 
     Early Head Start program carried out under the Head Start Act 
     (42 U.S.C. 9831 et seq.), a State licensed or regulated child 
     care program or school, or a State prekindergarten program 
     that serves children from birth through kindergarten and that 
     addresses the children's cognitive (including language, early 
     literacy, and pre-numeracy), social, emotional, and physical 
     development.
       ``(4) Early childhood educator.--The term `early childhood 
     educator' means an individual with primary responsibility for 
     the education of children in an early childhood education 
     program.
       ``(5) Educational service agency.--The term `educational 
     service agency' has the meaning given such term in section 
     9101 of the Elementary and Secondary Education Act of 1965.
       ``(6) Exemplary teacher.--The term `exemplary teacher' has 
     the meaning given such term in section 9101 of the Elementary 
     and Secondary Education Act of 1965.
       ``(7) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency or educational service agency--
       ``(A)(i) that serves not fewer than 10,000 children from 
     low-income families;
       ``(ii) for which not less than 20 percent of the children 
     served by the agency are children from low-income families; 
     or
       ``(iii) with a total of less than 600 students in average 
     daily attendance at the schools that are served by the agency 
     and all of whose schools are designated with a school locale 
     code of 7 or 8, as determined by the Secretary; and
       ``(B)(i) for which there is a high percentage of teachers 
     not teaching in the academic subject areas or grade levels in 
     which the teachers were trained to teach; or
       ``(ii) for which there is a high teacher turnover rate or a 
     high percentage of teachers with emergency, provisional, or 
     temporary certification or licensure.
       ``(8) Highly qualified.--The term `highly qualified' has 
     the meaning given such term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 and, with respect to 
     special education teachers, in section 602 of the Individuals 
     with Disabilities Education Act.
       ``(9) Professional development.--The term `professional 
     development' has the meaning given such term in section 9101 
     of the Elementary and Secondary Education Act of 1965.
       ``(10) Scientifically based reading research.--The term 
     `scientifically based reading research' has the meaning given 
     such term in section 1208 of the Elementary and Secondary 
     Education Act of 1965.
       ``(11) Scientifically based research.--The term 
     `scientifically based research' has the meaning given such 
     term in section 9101 of the Elementary and Secondary 
     Education Act of 1965.
       ``(12) Teacher mentoring.--The term `teacher mentoring' 
     means mentoring of teachers through an established or 
     implemented program--
       ``(A) that includes qualifications for mentors;
       ``(B) that provides training for mentors;
       ``(C) that provides regular and ongoing opportunities for 
     mentors and mentees to observe each other's teaching methods 
     in classroom settings during the school day;
       ``(D) in which the mentoring is provided by a colleague who 
     teaches in the same field, grade, or subject as the mentee; 
     and
       ``(E) that includes--
       ``(i) common planning time or regularly scheduled 
     collaboration with teachers in the teachers' same field, 
     grade, or subject area; and
       ``(ii) additional professional development opportunities.
       ``(13) Teaching skills.--The term `teaching skills' means 
     the ability to--
       ``(A) increase student achievement;
       ``(B) effectively convey and explain academic subject 
     matter;
       ``(C) employ strategies that--
       ``(i) are based on scientifically based research;
       ``(ii) are specific to academic subject matter; and
       ``(iii) focus on identification and tailoring of academic 
     instruction to students' specific learning needs, 
     particularly students with disabilities, students who are 
     limited English proficient, and students who are gifted and 
     talented;
       ``(D) conduct ongoing assessment of student learning;
       ``(E) effectively manage a classroom;
       ``(F) communicate and work with parents and guardians, and 
     involve parents and guardians in their children's education; 
     and
       ``(G) in the case of an early childhood educator, use age 
     appropriate strategies and practices for children in early 
     childhood education programs.

     ``SEC. 202. STATE GRANTS.

       ``(a) In General.--From amounts made available under 
     section 209(a)(1) for a fiscal year, the Secretary is 
     authorized to award grants under this section, on a 
     competitive basis, to eligible States to enable the eligible 
     States to carry out the activities described in subsections 
     (d) and (e).
       ``(b) Eligible State.--
       ``(1) Definition.--In this part, the term `eligible State' 
     means--
       ``(A) the Governor of a State; or
       ``(B) in the case of a State for which the constitution or 
     law of such State designates another individual, entity, or 
     agency in the State to be responsible for teacher 
     certification or licensure and preparation activity, such 
     individual, entity, or agency.
       ``(2) Consultation.--The Governor or the individual, 
     entity, or agency designated under paragraph (1)(B) shall 
     consult with the Governor, State board of education, State 
     educational agency, State agency for higher education, or 
     other applicable State entities (including the State agency 
     responsible for early childhood education), as appropriate, 
     with respect to the activities assisted under this section, 
     including the development of the grant application and 
     implementation of the activities.
       ``(3) Construction.--Nothing in this subsection shall be 
     construed to negate or supersede the legal authority under 
     State law of any State agency, State entity, or State public 
     official over programs that are under the jurisdiction of the 
     agency, entity, or official.
       ``(c) Application.--To be eligible to receive a grant under 
     this section, an eligible State shall submit an application 
     to the Secretary that--
       ``(1) meets the requirement of this section;
       ``(2) demonstrates that the eligible State is in full 
     compliance with--
       ``(A) sections 206(b) and 207; and
       ``(B) if applicable, sections 207(b) and 208, as such 
     sections were in effect on the day before the date of 
     enactment of the Higher Education Amendments of 2005;
       ``(3) includes a description of how the eligible State 
     intends to use funds provided under this section;
       ``(4) includes measurable objectives for the use of the 
     funds provided under this section;
       ``(5) describes how funded activities will--
       ``(A) reduce shortages, if any, of--
       ``(i) highly qualified general and special education 
     teachers, including in low-income urban and rural areas and 
     in high-need academic subject areas; and
       ``(ii) fully competent early childhood educators; and
       ``(B) be consistent with State, local, and other education 
     reform activities that promote effective teaching skills and 
     student academic achievement and consistent with

[[Page S9655]]

     State early learning standards for early childhood education 
     programs, including how funded activities will support 
     carrying out the applicable requirements of the eligible 
     State under sections 1111 and 1119 of the Elementary and 
     Secondary Education Act of 1965, and section 612(a)(14) of 
     the Individuals with Disabilities Education Act;
       ``(6) contains an assurance that the eligible State will 
     carry out each of the intended uses of grant funds described 
     in paragraph (3);
       ``(7) describes the eligible State's--
       ``(A) current capacity to measure the effectiveness of 
     teacher preparation programs and professional development 
     activities within the State using available statewide data;
       ``(B) activities to enhance or expand the integration of 
     existing data systems to better measure the effectiveness of 
     teacher preparation programs and professional development 
     activities within the State; or
       ``(C) if such data systems do not exist, plans for the 
     development of an integrated statewide data system to measure 
     the effectiveness of teacher preparation programs and 
     professional development activities within the State using 
     available statewide data; and
       ``(8) contains such other information and assurances as the 
     Secretary may require.
       ``(d) Required Uses of Funds.--An eligible State that 
     receives a grant under this section shall use the grant funds 
     to reform teacher preparation requirements, to coordinate 
     with State activities under section 2113(c) of the Elementary 
     and Secondary Education Act of 1965 and subsections (a) and 
     (b) of section 654 of the Individuals with Disabilities 
     Education Act, and to ensure that current and prospective 
     teachers are highly qualified, by carrying out each of the 
     following activities:
       ``(1) Reforms.--Ensuring that all teacher preparation 
     programs in the State are preparing current or prospective 
     teachers to become highly qualified, to understand 
     scientifically based research and its applicability, and to 
     use technology effectively, including use of instructional 
     techniques to improve student academic achievement, by 
     assisting such programs--
       ``(A) in retraining faculty;
       ``(B) in designing (or redesigning) teacher preparation 
     programs so that such programs--
       ``(i) are based on rigorous academic content and 
     scientifically based research (including scientifically based 
     reading research), and aligned with challenging State 
     academic content standards;
       ``(ii) promote effective teaching skills; and
       ``(iii) promote understanding of effective instructional 
     strategies for students with special needs, including 
     students with disabilities, students who are limited English 
     proficient, and students who are gifted and talented;
       ``(C) in ensuring collaboration with departments, programs, 
     or units outside of the teacher preparation program in 
     relevant academic content areas to ensure a successful 
     combination of training in both teaching and such content;
       ``(D) in developing high-quality, rigorous clinical 
     experiences (that include student teaching experience) in 
     which students participate while enrolled in a teacher 
     preparation program, lasting not less than 1 term, through 
     dissemination of best practices, technical assistance, or 
     other relevant activities; and
       ``(E) in collecting and using data, in collaboration with 
     institutions of higher education, schools, and local 
     educational agencies, on teacher retention rates, by school, 
     to evaluate and strengthen the effectiveness of the State's 
     teacher support system.
       ``(2) Certification or licensure requirements.--Reforming 
     teacher certification or licensure requirements to ensure 
     that--
       ``(A) teachers have the academic content knowledge and 
     teaching skills in the academic subject areas that the 
     teachers teach that are necessary to help students meet 
     challenging State student academic achievement standards;
       ``(B) such requirements are aligned with challenging State 
     academic content standards;
       ``(C) teacher certification and licensure assessments are--
       ``(i) used for purposes for which such assessments are 
     valid and reliable;
       ``(ii) consistent with relevant, professional, and 
     technical standards; and
       ``(iii) aligned with the reporting requirements of sections 
     205 and 206; and
       ``(D) such requirements for high-need academic subject 
     areas (such as reading, mathematics, science, and foreign 
     language, including less commonly taught languages) and high-
     need areas (such as special education, language instruction 
     educational programs, and early childhood education) exist 
     and reflect qualifications to help students meet high 
     standards, which may include the development of a State test 
     for such areas.
       ``(3) Evaluation.--
       ``(A) Annual evaluation.--An eligible State that receives a 
     grant under this section shall evaluate annually the 
     effectiveness of teacher preparation programs and 
     professional development activities within the State. To the 
     extent practicable, such evaluation shall examine--
       ``(i) teachers' contributions to improving student academic 
     achievement, as measured by State academic assessments 
     required under section 1111(b)(3) of the Elementary and 
     Secondary Education Act of 1965; and
       ``(ii) teacher mastery of the academic subject matter the 
     teachers teach.
       ``(B) Public reporting.--The eligible State shall make the 
     information described in subparagraph (A) (except such 
     information that is individually identifiable) widely 
     available through public means, such as posting on the 
     Internet, distribution to the media, and distribution through 
     public agencies.
       ``(C) Better measurement of effectiveness.--
       ``(i) In general.--An eligible State that receives a grant 
     under this section and does not have the capacity to measure 
     the effectiveness of teacher preparation programs and 
     professional development activities within the State using 
     available statewide data, shall use a portion of funds 
     received under this section to enhance or expand the 
     integration of existing data systems, as described in 
     subsection (c)(7)(B), or develop an integrated statewide data 
     system, as described in subsection (c)(7)(C), to better 
     measure the effectiveness of teacher preparation programs on 
     student learning and achievement, and the impact of pre-
     service and ongoing professional development on teacher 
     placement and retention.
       ``(ii) Technical quality; student privacy; funds from other 
     sources.--In carrying out clause (i), the eligible State 
     shall ensure--

       ``(I) the technical quality of the data system to maximize 
     the validity, reliability, and accessibility of the data;
       ``(II) that student privacy is protected and that 
     individually identifiable information about students, their 
     achievements, and their families remains confidential, in 
     accordance with the Family Educational Rights and Privacy Act 
     of 1974; and
       ``(III) that funds provided under this section are used to 
     supplement State efforts to enhance or expand the integration 
     of existing data systems or to develop an integrated 
     statewide data system.

       ``(e) Allowable Uses of Funds.--An eligible State that 
     receives a grant under this section may use the grant funds 
     to reform teacher preparation requirements, to coordinate 
     with State activities under section 2113(c) of the Elementary 
     and Secondary Education Act of 1965 and subsections (a) and 
     (b) of section 654 of the Individuals with Disabilities 
     Education Act, and to ensure that current and future teachers 
     are highly qualified, by carrying out any of the following 
     activities:
       ``(1) Alternatives to traditional preparation for teaching 
     and state certification or licensure.--Providing prospective 
     teachers with alternative routes to State certification or 
     licensure and alternative route programs to become highly 
     qualified teachers through--
       ``(A) innovative approaches that reduce unnecessary 
     barriers to State certification or licensure while producing 
     highly qualified teachers;
       ``(B) a selective means for admitting individuals into such 
     programs that includes passage of State approved teacher 
     examinations in appropriate subject areas;
       ``(C) programs that help prospective teachers develop 
     effective teaching skills and strategies through knowledge of 
     research-based information on the learning process and 
     learning practices;
       ``(D) programs that provide support to teachers during the 
     teachers' initial years in the profession; and
       ``(E) alternative routes to State certification or 
     licensure of teachers for qualified individuals, including 
     mid-career professionals from other occupations, 
     paraprofessionals, former military personnel, and recent 
     college graduates with records of academic distinction.
       ``(2) Innovative programs.--Planning and implementing 
     innovative programs to enhance the ability of institutions of 
     higher education, including charter colleges of education, or 
     university and local educational agency partnership schools, 
     to prepare highly qualified teachers, which programs shall--
       ``(A) permit flexibility in the manner in which the 
     institution of higher education meets State requirements as 
     long as graduates, during the graduates' initial years in the 
     profession, increase student academic achievement;
       ``(B) provide a description in the application of long-term 
     data gathered from teachers' performance over multiple years 
     in the classroom regarding the teachers' ability to increase 
     student academic achievement;
       ``(C) ensure high-quality preparation of teachers from 
     underrepresented groups;
       ``(D) create performance measures that can be used to 
     document the effectiveness of innovative methods for 
     preparing highly qualified teachers; and
       ``(E) develop frameworks for exemplary induction programs 
     informed by research and best practices.
       ``(3) Teacher recruitment and retention.--Undertaking 
     activities that develop and implement effective mechanisms to 
     ensure that local educational agencies and schools are able 
     to recruit and retain highly qualified teachers, which may 
     include the following activities:
       ``(A) Performance based compensation.--Assisting local 
     educational agencies in developing--
       ``(i) performance systems that reward teachers who increase 
     student academic achievement and take on additional 
     responsibilities, such as teacher mentoring and serving as 
     master teachers; and

[[Page S9656]]

       ``(ii) strategies that provide differential and bonus pay 
     in high-need local educational agencies to recruit and 
     retain--

       ``(I) principals;
       ``(II) highly qualified teachers who teach in high-need 
     academic subject areas (such as reading, mathematics, 
     science, and foreign language, including less commonly taught 
     languages);
       ``(III) highly qualified teachers who teach in schools 
     identified for school improvement under section 1116(b) of 
     the Elementary and Secondary Education Act of 1965;
       ``(IV) highly qualified special education teachers;
       ``(V) highly qualified teachers specializing in teaching 
     children who are limited English proficient; and
       ``(VI) highly qualified teachers in low-income urban and 
     rural schools or districts.

       ``(B) Additional mechanisms.--Developing and implementing 
     effective mechanisms to ensure that local educational 
     agencies and schools are able to--
       ``(i) address needs identified with respect to--

       ``(I) underrepresented groups;
       ``(II) high-need academic subject areas (such as reading, 
     mathematics, science, and foreign language, including less 
     commonly taught languages);
       ``(III) high-need areas (such as special education, 
     language instruction educational programs, and early 
     childhood education);
       ``(IV) high-need communities, such as rural and urban 
     areas;
       ``(V) high-need schools, including schools with high rates 
     of teacher turnover; and
       ``(VI) students with disabilities and students who are 
     limited English proficient;

       ``(ii) offer teacher mentoring for new teachers during such 
     teachers' initial years of teaching; and
       ``(iii) provide access to ongoing professional development 
     opportunities for teachers and administrators.
       ``(C) Teacher advancement.--Assisting local educational 
     agencies in developing teacher advancement and retention 
     initiatives that promote professional growth and emphasize 
     multiple career paths (such as paths to becoming a highly 
     qualified mentor teacher or exemplary teacher) and pay 
     differentiation.
       ``(D) Recruit qualified professionals.--Developing 
     recruitment programs or assisting local educational agencies 
     in--
       ``(i) recruiting qualified professionals from other fields, 
     including highly qualified paraprofessionals (as defined in 
     section 2102 of the Elementary and Secondary Education Act of 
     1965); and
       ``(ii) providing such professionals with alternative routes 
     to teacher certification or licensure.
       ``(E) Underrepresented populations.--Providing increased 
     opportunities for minorities, individuals with disabilities, 
     and other individuals underrepresented in the teaching 
     profession.
       ``(F) Rural education recruitment and retention programs.--
     Making grants to rural school districts, or a consortia of 
     rural school districts, to implement--
       ``(i) teacher recruitment strategies, which may include 
     tuition assistance, student loan forgiveness, housing 
     assistance, bonus pay, and other effective approaches;
       ``(ii) teacher retention strategies, such as mentoring 
     programs and ongoing opportunities for professional growth 
     and advancement; and
       ``(iii) partnerships with institutions of higher education 
     designed to--

       ``(I) prepare beginning teachers to teach; and
       ``(II) assist teachers (including teachers who teach 
     multiple subjects) to become highly qualified.

       ``(4) Teacher scholarships and support.--Providing--
       ``(A) scholarships to help students, such as individuals 
     who have been accepted by, or who are enrolled in, a program 
     of undergraduate education at an institution of higher 
     education, pay the costs of tuition, room, board, and other 
     expenses of completing a teacher preparation program, if--
       ``(i) the Secretary establishes such requirements as the 
     Secretary determines necessary to ensure that recipients of 
     scholarships under this section who complete teacher 
     preparation programs--

       ``(I) subsequently teach in an early childhood education 
     program or a high-need local educational agency for a period 
     of time equivalent to the period of time for which the 
     recipient received scholarship assistance, plus an additional 
     1 year; or
       ``(II) repay the amount of the scholarship if the recipient 
     does not teach as described in subclause (I); and

       ``(ii) the eligible State provides an assurance that the 
     eligible State will recruit minority students to become 
     highly qualified teachers;
       ``(B) support services, if needed, to enable scholarship 
     recipients to complete postsecondary education programs, or 
     to move from a career outside of the field of education into 
     a teaching career; and
       ``(C) follow-up services to former scholarship recipients 
     during the recipients' initial years of teaching.
       ``(5) Teacher removal.--Developing and implementing 
     effective mechanisms to ensure that local educational 
     agencies and schools are able to expeditiously remove 
     incompetent or unqualified teachers consistent with 
     procedures to ensure due process for the teachers.
       ``(6) Teacher effectiveness.--Developing--
       ``(A) systems to measure the effectiveness of teacher 
     preparation programs and professional development programs; 
     and
       ``(B) strategies to document gains in student academic 
     achievement or increases in teacher mastery of the academic 
     subject matter the teachers teach, as a result of such 
     programs.
       ``(7) Early childhood educators.--Developing strategies to 
     improve and expand teacher preparation programs for early 
     childhood educators to teach in early childhood education 
     programs.
       ``(8) Professional development.--Developing and enhancing 
     high-quality professional development, instructional 
     materials, and relevant training materials.
       ``(9) Technology.--Assisting teachers to use technology 
     effectively, including use for instructional techniques and 
     the collection, management, and analysis of data to improve 
     teaching, learning, and decision making for the purpose of 
     increasing student academic achievement.
       ``(10) Areas of instructional shortage.--Increasing the 
     number of--
       ``(A) teachers in the classroom providing instruction in 
     high-need academic subject areas (such as reading, 
     mathematics, science, and foreign language, including less 
     commonly taught languages) and high-need areas (such as 
     special education, language instruction educational programs, 
     and early childhood education); and
       ``(B) special education faculty dedicated to preparing 
     highly qualified special education teachers at institutions 
     of higher education.
       ``(11) Technical assistance.--Providing technical 
     assistance to low-performing programs of teacher preparation 
     within institutions of higher education identified under 
     section 207(a).
       ``(12) Evaluation support.--Performing data collection, 
     evaluation, and reporting to meet the requirements of 
     subsection (d)(3).
       ``(13) Professional advancement.--Developing a professional 
     advancement system to--
       ``(A) initiate or enhance a system in which highly 
     qualified teachers who pursue advanced licensure levels are 
     required to demonstrate increased competencies and undertake 
     increased responsibilities for increased compensation as the 
     teachers progress through levels established by the State; or
       ``(B) provide opportunities for professional growth, 
     including through--
       ``(i) a nationally recognized advance credentialing system; 
     or
       ``(ii) special certification in advanced placement or 
     international baccalaureate content, teaching gifted and 
     talented students, and pedagogy.
       ``(f) Supplement, Not Supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to carry out activities under this section.

     ``SEC. 203. PARTNERSHIP GRANTS.

       ``(a) Grants.--From amounts made available under section 
     209(a)(2) for a fiscal year, the Secretary is authorized to 
     award grants under this section, on a competitive basis, to 
     eligible partnerships to enable the eligible partnerships to 
     carry out the activities described in subsections (e) and 
     (f).
       ``(b) Definitions.--
       ``(1) Eligible partnership.--
       ``(A) In general.--In this part, the term `eligible 
     partnership' means an entity that shall include--
       ``(i) a partner institution;
       ``(ii) a school of arts and sciences;
       ``(iii) a high-need local educational agency and a school 
     or a consortium of schools served by the agency; and
       ``(iv) at least 1 individual or entity described in 
     subparagraph (B).
       ``(B) Additional individuals and entities.--In this part, 
     the term `eligible partnership' means an entity that shall 
     include at least 1 of the following:
       ``(i) A Governor.
       ``(ii) A State educational agency.
       ``(iii) A State board of education.
       ``(iv) A State agency for higher education.
       ``(v) A school or department within the partner institution 
     focusing on education, psychology, human development, or a 
     department with comparable expertise in the disciplines of 
     teaching, learning, and child and adolescent development.
       ``(vi) An institution of higher education or a department 
     within such institution, not described in subparagraph (A).
       ``(vii) A public charter school.
       ``(viii) A public or private elementary school or secondary 
     school.
       ``(ix) A public or private nonprofit educational 
     organization.
       ``(x) A business.
       ``(xi) A science-, mathematics-, or technology-oriented 
     entity.
       ``(xii) An early childhood education program.
       ``(xiii) A teacher organization.
       ``(xiv) An educational service agency.
       ``(xv) A consortium of local educational agencies.
       ``(xvi) A nonprofit telecommunications entity.
       ``(2) Partner institution.--In this section, the term 
     `partner institution' means an institution of higher 
     education, which may include a 2-year institution of higher 
     education offering a dual program with a 4-year

[[Page S9657]]

     institution of higher education, that has a teacher 
     preparation program--
       ``(A) whose graduates exhibit strong performance on State-
     determined qualifying assessments for new teachers through--
       ``(i) demonstrating that 80 percent or more of the 
     graduates of the program who intend to enter the field of 
     teaching have passed all of the applicable State 
     qualification assessments for new teachers, which shall 
     include an assessment of each prospective teacher's subject 
     matter knowledge in the content area in which the teacher 
     intends to teach; or
       ``(ii) being ranked among the highest-performing teacher 
     preparation programs in the State as determined by the 
     State--

       ``(I) using criteria consistent with the requirements for 
     the State report card under section 206(b); and
       ``(II) using the State report card on teacher preparation 
     required under section 206(b), after the first publication of 
     such report card and for every year thereafter; or

       ``(B) that requires all the students of the program to meet 
     high academic standards and participate in intensive clinical 
     experience, and--
       ``(i) in the case of secondary school candidates, to 
     successfully complete--

       ``(I) a major or its equivalent in coursework in the 
     academic subject area in which the candidate intends to 
     teach; or
       ``(II) a related major in the academic subject area in 
     which the candidate intends to teach;

       ``(ii) in the case of elementary school candidates, to 
     successfully complete--

       ``(I) an academic major or its equivalent in coursework in 
     the arts and sciences; or
       ``(II) a major in elementary education with a significant 
     amount of coursework in the arts and sciences; and

       ``(iii) in the case of early childhood educators, to become 
     fully competent and meet degree requirements, as established 
     by the State.
       ``(c) Application.--Each eligible partnership desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require. Each such 
     application shall contain--
       ``(1) a needs assessment of all the partners with respect 
     to the preparation, induction, and professional development 
     of early childhood educators, general and special education 
     teachers, and principals;
       ``(2) a description of the extent to which the teacher 
     preparation program of the eligible partnership prepares new 
     teachers with effective teaching skills;
       ``(3) a description of how the eligible partnership will 
     coordinate with other teacher preparation or professional 
     development programs, including those funded under the 
     Elementary and Secondary Education Act of 1965 and the 
     Individuals with Disabilities Education Act, and how the 
     activities of the eligible partnership will be consistent 
     with State, local, and other education reform activities that 
     promote student achievement;
       ``(4) a resource assessment that describes the resources 
     available to the eligible partnership, the intended use of 
     the grant funds (including a description of how the grant 
     funds will be fairly distributed), and the commitment of the 
     resources of the eligible partnership to the activities 
     assisted under this part, including financial support, 
     faculty participation, time commitments, and continuation of 
     the activities when the grant period ends;
       ``(5) a description of--
       ``(A) how the eligible partnership will meet the purposes 
     of this part;
       ``(B) how the eligible partnership will carry out the 
     activities required under subsection (e) and any permissible 
     activities under subsection (f);
       ``(C) the eligible partnership's evaluation plan pursuant 
     to section 205(b);
       ``(D) how the eligible partnership will align the teacher 
     preparation program with the challenging student academic 
     achievement standards, State early learning standards for 
     early childhood education programs (where applicable), and 
     challenging academic content standards, established by the 
     State in which the partnership is located;
       ``(E) how faculty of the teacher preparation program at the 
     partner institution will serve, over the period of the grant, 
     with highly qualified teachers in the classrooms of the high-
     need local educational agency included in the eligible 
     partnership;
       ``(F) how the eligible partnership will ensure that 
     teachers, principals, and superintendents in all schools 
     (including private schools, as appropriate) located in the 
     geographic areas served by an eligible partnership under this 
     section are provided information about the activities carried 
     out with funds under this section, including through 
     electronic means;
       ``(G) how the eligible partnership will design, implement, 
     or enhance the clinical program component, including 
     promoting close supervision of student teachers by faculty of 
     the teacher preparation program and mentor teachers while in 
     the program and during the student teachers' initial years of 
     teaching if hired by schools included in the eligible 
     partnership;
       ``(H) how the eligible partnership will develop or enhance 
     an induction program that includes high-quality professional 
     development to support new teachers during the teachers' 
     initial years of teaching that includes teacher mentoring and 
     collaborating with teachers in the same grade, department, or 
     field; and
       ``(I) how the eligible partnership will collect, analyze, 
     use, and disseminate data on the retention of all teachers in 
     schools located in the geographic areas served by the 
     eligible partnership to evaluate the effectiveness of its 
     teacher support system; and
       ``(6) an assurance that the eligible partnership will carry 
     out each of the activities described in paragraph (5).
       ``(d) Consultation.--
       ``(1) In general.--Members of an eligible partnership that 
     receives a grant under this section shall engage in regular 
     consultation throughout the development and implementation of 
     programs and activities under this section.
       ``(2) Regular communication.--To ensure timely and 
     meaningful consultation, regular communication shall occur 
     among all members of the eligible partnership, including the 
     high-need local educational agency. Such communication shall 
     continue throughout the implementation of the grant and the 
     assessment of programs and activities under this section.
       ``(3) Written consent.--The Secretary may approve changes 
     in grant activities only if a written consent signed by all 
     members of the eligible partnership is submitted to the 
     Secretary.
       ``(e) Required Uses of Funds.--An eligible partnership that 
     receives a grant under this section shall use the grant funds 
     to carry out each of the following activities:
       ``(1) Reforms.--Ensuring that each teacher preparation 
     program and each early childhood educator preparation 
     program, where applicable, of the eligible partnership that 
     is assisted under this section addresses the needs identified 
     in the needs assessment of the partnership and is preparing 
     current or prospective teachers to be highly qualified, and, 
     where applicable, early childhood educators to be fully 
     competent, to understand scientifically based research and 
     its applicability, and to use technology effectively, 
     including use of instructional techniques to improve student 
     academic achievement, and in the case of early childhood 
     educators, techniques to improve children's cognitive, 
     social, emotional, and physical development, by assisting 
     such programs--
       ``(A) in retraining faculty;
       ``(B) in designing (or redesigning) teacher preparation 
     programs so that such programs--
       ``(i) are based on rigorous academic content and 
     scientifically based research (including scientifically based 
     reading research), and aligned with challenging State 
     academic content standards and for early childhood educators, 
     aligned with State early learning standards;
       ``(ii) promote effective teaching skills;
       ``(iii) promote understanding of effective instructional 
     strategies for students with special needs, including 
     students with disabilities, students who are limited English 
     proficient, students who are gifted and talented, and 
     children in early childhood education programs; and
       ``(iv) promote high-quality mathematics, science, and 
     foreign language instruction, where applicable;
       ``(C) in ensuring collaboration with departments, programs, 
     or units outside of the teacher preparation program in all 
     academic content areas to ensure a successful combination of 
     training in both teaching and such content; and
       ``(D) in developing high-quality, rigorous clinical 
     experiences, lasting not less than 1 term, through 
     dissemination of best practices, technical assistance, or 
     other relevant activities.
       ``(2) Clinical experience and interaction.--Improving 
     sustained and high-quality preservice clinical experiences, 
     including--
       ``(A) providing teacher mentoring; and
       ``(B) substantially increasing interaction between faculty 
     at institutions of higher education and new and experienced 
     teachers, principals, and other administrators at elementary 
     schools or secondary schools, and providing support, 
     including preparation time and release time, for such 
     interaction.
       ``(3) Support programs for new teachers.--Creating a 
     program to support new teachers during the initial years of 
     teaching (for not less than 1 year and not more than 3 
     years). Such program shall promote effective teaching skills 
     and may include the following components:
       ``(A) Development of skills in educational interventions 
     based on scientifically based research.
       ``(B) Development of knowledge of scientifically based 
     research on teaching and learning.
       ``(C) Inclusion of faculty who model the integration of 
     research and practice in the classroom.
       ``(D) Opportunities for--
       ``(i) high-quality teacher mentoring; and
       ``(ii) additional professional development, dissemination 
     of evidence-based research on educational practices, and 
     professional development activities.
       ``(E) Interdisciplinary collaboration among exemplary 
     teachers, faculty, researchers, and other staff who prepare 
     new teachers on the learning process and the assessment of 
     learning.
       ``(f) Allowable Uses of Funds.--An eligible partnership 
     that receives a grant under this section may use the grant 
     funds to carry out any of the following activities that 
     address the needs identified in the needs assessment:

[[Page S9658]]

       ``(1) Alternatives to traditional preparation for teaching 
     and state certification or licensure.--The activity described 
     in section 202(e)(1).
       ``(2) Dissemination and coordination.--Broadly 
     disseminating information on effective practices used by the 
     eligible partnership, and coordinating with the activities of 
     the Governor, State board of education, State agency for 
     higher education, State agency responsible for early 
     childhood education, and State educational agency, as 
     appropriate.
       ``(3) Innovative programs.--Developing innovative programs 
     designed to provide graduates of programs funded under this 
     title with opportunities to continue their education through 
     supports and opportunities to improve instructional practices 
     in the initial years of teaching, including the following:
       ``(A) Internships.--
       ``(i) Teacher preparation enhancement internship.--
     Developing a 1-year paid internship program for students who 
     have completed a 4-year teacher preparation program, or 
     alternative routes to State certification or licensure 
     program, to enable such students to develop the skills and 
     experience necessary for success in teaching, including 
     providing intensive clinical training and combining in-
     service instruction in teacher methods and assessments with 
     classroom observations, experiences, and practices. Such 
     interns shall have a reduced teaching load and a mentor for 
     assistance in the classroom.
       ``(ii) Mid-career professional internships.--Developing a 
     1-year paid internship program for mid-career professionals 
     from other occupations, former military personnel, and recent 
     college graduates from fields other than teacher preparation 
     with records of academic distinction to enable such 
     individuals to develop the skills and experience necessary 
     for success in teaching, including providing intensive 
     clinical training and combining in-service instruction in 
     teacher methods and assessments with classroom observations, 
     experiences, and practices. Such interns shall have a reduced 
     teaching load and a mentor for assistance in the classroom.
       ``(B) Residency programs for new teachers.--Supporting 
     teachers in a residency program that provides an induction 
     period for all new general education and special education 
     teachers that includes--
       ``(i) a forum for information sharing among prospective 
     teachers, teachers, principals, administrators, and 
     participating faculty in the partner institution; and
       ``(ii) the application of scientifically based research on 
     teaching and learning generated by entities such as the 
     Institute of Education Sciences, and the National Research 
     Council of the National Academies.
       ``(C) Pathways for paraprofessionals to enter teaching.--
     Creating intensive programs to provide the coursework and 
     clinical experiences needed by highly qualified 
     paraprofessionals, as defined in section 2102 of the 
     Elementary and Secondary Education Act of 1965, to qualify 
     for State teacher certification or licensure.
       ``(4) Managerial and leadership skills.--Developing and 
     implementing proven mechanisms to provide principals and 
     superintendents with effective managerial, leadership, 
     curricula, and instructional skills that result in increased 
     student academic achievement.
       ``(5) Teacher scholarships and support.--Providing--
       ``(A) scholarships to help students, such as individuals 
     who have been accepted by, or who are enrolled in, a program 
     of undergraduate education at an institution of higher 
     education, pay the costs of tuition, room, board, and other 
     expenses of completing a teacher preparation program, if--
       ``(i) the Secretary establishes such requirements as the 
     Secretary determines necessary to ensure that recipients of 
     scholarships under this paragraph who complete teacher 
     preparation programs--

       ``(I) subsequently teach in a high-need local educational 
     agency for a period of time equivalent to the period of time 
     for which the recipient received the scholarship assistance, 
     plus an additional 1 year; or
       ``(II) repay the amount of the scholarship if the recipient 
     does not teach as described in subclause (I); and

       ``(ii) the eligible partnership provides an assurance that 
     the eligible partnership will recruit minority students to 
     become highly qualified teachers;
       ``(B) support services, if needed, to enable scholarship 
     recipients to complete postsecondary education programs, or 
     to transition from a career outside of the field of education 
     into a teaching career; and
       ``(C) follow-up services for former scholarship recipients 
     during the recipients' initial years of teaching.
       ``(6) Coordination with community colleges.--
       ``(A) Teacher preparation programs.--Coordinating with 2-
     year institutions of higher education to implement teacher 
     preparation programs, including through distance learning, 
     for the purposes of allowing prospective teachers--
       ``(i) to obtain a bachelor's degree and State certification 
     or licensure; and
       ``(ii) to become highly qualified teachers.
       ``(B) Professional development.--Coordinating with 2-year 
     institutions of higher education to provide professional 
     development that--
       ``(i) improves the academic content knowledge of teachers 
     in the academic subject areas in which the teachers are 
     certified or licensed to teach, or in which the teachers are 
     working toward certification or licensure to teach; and
       ``(ii) promotes effective teaching skills.
       ``(7) Clinical experience in science, mathematics, and 
     technology.--Creating opportunities for clinical experience 
     and training for teachers and prospective teachers through 
     participation with professionals in business, research, and 
     work environments in areas relating to science, mathematics, 
     and technology, including opportunities for using laboratory 
     equipment.
       ``(8) Professional development.--Creating opportunities for 
     enhanced and ongoing professional development for experienced 
     general education and special education teachers, early 
     childhood educators, principals, administrators, and faculty.
       ``(9) Technology.--The activity described in section 
     202(e)(9).
       ``(10) Areas of instructional shortage.--Increasing the 
     number of--
       ``(A) teachers in the classroom providing instruction in 
     high-need academic subject areas (such as reading, 
     mathematics, science, and foreign language, including less 
     commonly taught languages), and high-need areas (such as 
     special education, language instruction educational programs, 
     and early childhood education);
       ``(B) special education faculty dedicated to preparing 
     highly qualified special education teachers at institutions 
     of higher education; and
       ``(C) faculty at institutions of higher education with 
     expertise in instruction of students who are limited English 
     proficient.
       ``(11) Improving instruction.--Improving instruction by--
       ``(A) improving understanding and instruction in core 
     academic subjects and other, specialized courses, such as 
     geography, American history and government, and world 
     history; and
       ``(B) creating externships for teachers and prospective 
     teachers for field experience and training through 
     participation in business, research, and work environments in 
     high-need academic subject areas (such as reading, 
     mathematics, science, and foreign language, including less 
     commonly taught languages) and high-need areas (such as 
     special education, language instruction educational programs, 
     and early childhood education).
       ``(12) Graduate programs.--Developing, in collaboration 
     with departments, programs, or units of both academic content 
     and teacher education within a partner institution, master's 
     degree programs that meet the demonstrated needs of teachers 
     in the high-need local educational agency participating in 
     the eligible partnership for content expertise and teaching 
     skills.
       ``(13) Literacy teacher training.--Establishing and 
     implementing a program that strengthens content knowledge and 
     teaching skills of secondary school teachers in literacy 
     that--
       ``(A) provides teacher training and stipends for literacy 
     coaches who train classroom teachers to implement literacy 
     programs;
       ``(B) develops or redesigns rigorous research-based 
     curricula that are aligned with challenging State and local 
     academic content standards, and with postsecondary standards 
     for reading and writing;
       ``(C) provides training and stipends for teachers to tutor 
     students with intense individualized reading, writing, and 
     subject matter instruction during or beyond the school day;
       ``(D) provides opportunities for teachers to plan and 
     assess instruction with other teachers, school leaders, and 
     faculty at institutions of higher education; and
       ``(E) establishes an evaluation and accountability plan for 
     activities conducted under this paragraph to measure the 
     impact of such activities.
       ``(g) Construction.--Nothing in this section shall be 
     construed to prohibit an eligible partnership from using 
     grant funds to coordinate with the activities of eligible 
     partnerships in other States or on a regional basis through 
     Governors, State boards of education, State educational 
     agencies, State agencies responsible for early childhood 
     education, local educational agencies, or State agencies for 
     higher education.
       ``(h) Supplement, Not Supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to carry out activities under this section.

     ``SEC. 204. ADMINISTRATIVE PROVISIONS.

       ``(a) Duration; Number of Awards; Payments.--
       ``(1) Duration.--
       ``(A) Eligible states.--Grants awarded to eligible States 
     under this part shall be awarded for a period not to exceed 3 
     years.
       ``(B) Eligible partnerships.--Grants awarded to eligible 
     partnerships under this part shall be awarded for a period of 
     5 years.
       ``(2) Number of awards.--An eligible partnership may not 
     receive more than 1 grant during a 5-year period. Nothing in 
     this title shall be construed to prohibit an individual 
     member, that can demonstrate need, of an eligible partnership 
     that receives a grant under this title from entering into 
     another eligible partnership consisting of new members and 
     receiving a grant with such other eligible partnership before 
     the 5-year period described in the preceding sentence 
     applicable to the eligible partnership with which the 
     individual member has first partnered has expired.

[[Page S9659]]

       ``(3) Payments.--The Secretary shall make annual payments 
     of grant funds awarded under this part.
       ``(b) Peer Review.--
       ``(1) Panel.--The Secretary shall provide the applications 
     submitted under this part to a peer review panel for 
     evaluation. With respect to each application, the peer review 
     panel shall initially recommend the application for funding 
     or for disapproval.
       ``(2) Priority.--In recommending applications to the 
     Secretary for funding under this part, the panel shall--
       ``(A) with respect to grants under section 202, give 
     priority to eligible States--
       ``(i) that have innovative reforms to hold institutions of 
     higher education with teacher preparation programs 
     accountable for preparing teachers to become highly qualified 
     and have effective teaching skills;
       ``(ii) that have innovative efforts aimed at reducing the 
     shortage of highly qualified general and special education 
     teachers, including in low-income urban and rural areas and 
     in high-need academic subject areas (such as reading, 
     mathematics, science, and foreign language, including less 
     commonly taught languages); and
       ``(iii) whose awards promote an equitable geographic 
     distribution of grants among rural and urban areas; and
       ``(B) with respect to grants under section 203, give 
     priority--
       ``(i) to applications from broad-based eligible 
     partnerships that involve businesses and community 
     organizations; and
       ``(ii) to eligible partnerships so that the awards promote 
     an equitable geographic distribution of grants among rural 
     and urban areas.
       ``(3) Secretarial selection.--The Secretary shall 
     determine, based on the peer review process, which 
     applications shall receive funding and the amounts of the 
     grants. In determining grant amounts, the Secretary shall 
     take into account the total amount of funds available for all 
     grants under this part and the types of activities proposed 
     to be carried out.
       ``(c) Matching Requirements.--
       ``(1) State grants.--Each eligible State receiving a grant 
     under section 202 shall provide, from non-Federal sources, an 
     amount equal to 50 percent of the amount of the grant (in 
     cash or in kind) to carry out the activities supported by the 
     grant.
       ``(2) Partnership grants.--Each eligible partnership 
     receiving a grant under section 203 shall provide, from non-
     Federal sources (in cash or in kind), an amount equal to 25 
     percent of the amount of the grant for the first year of the 
     grant, 35 percent of the amount of the grant for the second 
     year of the grant, and 50 percent of the amount of the grant 
     for each succeeding year of the grant.
       ``(d) Limitation on Administrative Expenses.--An eligible 
     State or eligible partnership that receives a grant under 
     this part may use not more than 2 percent of the grant funds 
     for purposes of administering the grant.
       ``(e) Additional Activities.--The Secretary shall use funds 
     repaid pursuant to section 202(e)(4)(A)(i)(II) or section 
     203(f)(5)(A)(i)(II) to carry out additional activities under 
     section 202 or 203, respectively.

     ``SEC. 205. ACCOUNTABILITY AND EVALUATION.

       ``(a) State Grant Accountability Report.--An eligible State 
     that receives a grant under section 202 shall submit an 
     annual accountability report to the Secretary and the 
     authorizing committees. Such report shall include a 
     description of the degree to which the eligible State, in 
     using funds provided under such section, has made progress in 
     meeting the purposes of this part and substantial progress in 
     meeting the following goals, as applicable:
       ``(1) Student academic achievement.--Increasing student 
     academic achievement for all students as defined by the 
     eligible State.
       ``(2) Raising standards.--Raising the State academic 
     standards required to enter the teaching profession as a 
     highly qualified teacher, and where applicable, as a fully 
     competent early childhood educator.
       ``(3) Initial certification or licensure.--Increasing 
     success in the pass rates and scaled scores for initial State 
     teacher certification or licensure, or increasing the numbers 
     of qualified individuals being certified or licensed as 
     teachers through alternative routes to State certification or 
     licensure programs.
       ``(4) Percentage of highly qualified teachers.--Providing 
     data on the progress of the State towards meeting the highly 
     qualified teacher requirements under section 1119(a)(2) of 
     the Elementary and Secondary Education Act of 1965.
       ``(5) Decreasing teacher shortages.--Decreasing shortages 
     of--
       ``(A) highly qualified teachers in--
       ``(i) low-income urban and rural areas;
       ``(ii) high-need academic subject areas (such as reading, 
     mathematics, science, and foreign language, including less 
     commonly taught languages);
       ``(iii) special education; and
       ``(iv) high-need areas (such as special education, language 
     instruction educational programs, and early childhood 
     education); and
       ``(B) fully competent early childhood educators.
       ``(6) Increasing opportunities for professional 
     development.--Increasing opportunities for enhanced and 
     ongoing professional development that--
       ``(A) improves the academic content knowledge of teachers 
     in the academic subject areas in which the teachers are 
     certified or licensed to teach or in which the teachers are 
     working toward certification or licensure to teach; and
       ``(B) promotes effective teaching skills.
       ``(b) Eligible Partnership Evaluation.--Each eligible 
     partnership submitting an application for a grant under 
     section 203 shall establish and include in such application, 
     an evaluation plan that includes strong performance 
     objectives. The plan shall include objectives and measures 
     for increasing--
       ``(1) student achievement for all students as measured by 
     the eligible partnership;
       ``(2) teacher retention in the first 3 years of a teacher's 
     career;
       ``(3) success in the pass rates and scaled scores for 
     initial State certification or licensure of teachers;
       ``(4) the percentage of highly qualified teachers hired by 
     the high-need local educational agency participating in the 
     eligible partnership; and
       ``(5) the percentage of--
       ``(A) highly qualified teachers among underrepresented 
     groups, in high-need academic subject areas (such as reading, 
     mathematics, science, and foreign language, including less 
     commonly taught languages), in high-need areas (such as 
     special education, language instruction educational programs, 
     and early childhood education), and in high-need schools;
       ``(B) elementary school, middle school, and secondary 
     school classes taught by teachers who are highly qualified;
       ``(C) early childhood education program classes taught by 
     providers who are fully competent; and
       ``(D) highly qualified special education teachers.
       ``(c) Revocation of Grant.--
       ``(1) Eligible states.--If the Secretary determines that an 
     eligible State is not making substantial progress in meeting 
     the purposes, goals, objectives, and measures, as 
     appropriate, by the end of the second year of a grant under 
     this part, then the grant payment shall not be made for the 
     third year of the grant.
       ``(2) Eligible partnerships.--If the Secretary determines 
     that an eligible partnership is not making substantial 
     progress in meeting the purposes, goals, objectives, and 
     measures, as appropriate, by the end of the third year of a 
     grant under this part, then the grant payments shall not be 
     made for any succeeding year of the grant.
       ``(d) Evaluation and Dissemination.--The Secretary shall 
     evaluate the activities funded under this part and report the 
     Secretary's findings regarding the activities to the 
     authorizing committees. The Secretary shall broadly 
     disseminate--
       ``(1) successful practices developed by eligible States and 
     eligible partnerships under this part; and
       ``(2) information regarding such practices that were found 
     to be ineffective.

     ``SEC. 206. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE 
                   TEACHERS.

       ``(a) Institutional and Program Report Cards on the Quality 
     of Teacher Preparation.--
       ``(1) Report card.--Each institution of higher education 
     that conducts a traditional teacher preparation program or an 
     alternative routes to State certification or licensure 
     program and that enrolls students receiving Federal 
     assistance under this Act shall report annually to the State 
     and the general public, in a uniform and comprehensible 
     manner that conforms with the definitions and methods 
     established by the Secretary, both for traditional teacher 
     preparation programs and alternative routes to State 
     certification or licensure programs, the following 
     information:
       ``(A) Pass rates and scaled scores.--For the most recent 
     year for which the information is available for those 
     students who are enrolled in the traditional teacher 
     preparation program or alternative routes to State 
     certification or licensure program, or who have completed the 
     traditional teacher preparation program or alternative routes 
     to State certification or licensure program during the 2-year 
     period preceding such year, for each of the assessments used 
     for teacher certification or licensure by the State in which 
     the program is located--
       ``(i) the percentage of students who have completed 100 
     percent of the nonclinical coursework and taken the 
     assessment who pass such assessment;
       ``(ii) the percentage of all students who passed each such 
     assessment;
       ``(iii) the percentage of students taking an assessment who 
     completed the teacher preparation program after enrolling in 
     the program, which shall be made available widely and 
     publicly by the State;
       ``(iv) the average scaled score for all students who passed 
     each such assessment;
       ``(v) a comparison of the program's pass rates with the 
     average pass rates for programs in the State; and
       ``(vi) a comparison of the program's average scaled scores 
     with the average scaled scores for programs in the State.
       ``(B) Program information.--The criteria for admission into 
     the program, the number of students in the program 
     (disaggregated by race and gender), the average number of 
     hours of supervised clinical experience required for those in 
     the program, the number of full-time equivalent faculty and 
     students in the supervised clinical experience, and the total 
     number of students who have been certified or licensed as 
     teachers, disaggregated

[[Page S9660]]

     by subject and area of certification or licensure.
       ``(C) Statement.--In States that require approval or 
     accreditation of teacher preparation programs, a statement of 
     whether the institution's program is so approved or 
     accredited, and by whom.
       ``(D) Designation as low-performing.--Whether the program 
     has been designated as low-performing by the State under 
     section 207(a).
       ``(E) Use of technology.--A description of the activities 
     that prepare teachers to effectively integrate technology 
     into curricula and instruction and effectively use technology 
     to collect, manage, and analyze data in order to improve 
     teaching, learning, and decision making for the purpose of 
     increasing student academic achievement.
       ``(2) Report.--Each eligible partnership receiving a grant 
     under section 203 shall report annually on the progress of 
     the eligible partnership toward meeting the purposes of this 
     part and the objectives and measures described in section 
     205(b).
       ``(3) Fines.--The Secretary may impose a fine not to exceed 
     $25,000 on an institution of higher education for failure to 
     provide the information described in this subsection in a 
     timely or accurate manner.
       ``(4) Special rule.--In the case of an institution of 
     higher education that conducts a traditional teacher 
     preparation program or an alternative routes to State 
     certification or licensure program and has fewer than 10 
     scores reported on any single initial teacher certification 
     or licensure assessment during an academic year, the 
     institution shall collect and publish information, as 
     required under paragraph (1)(A), with respect to an average 
     pass rate and scaled score on each State certification or 
     licensure assessment taken over a 3-year period.
       ``(b) State Report Card on the Quality of Teacher 
     Preparation.--
       ``(1) In general.--Each State that receives funds under 
     this Act shall provide to the Secretary, annually, in a 
     uniform and comprehensible manner that conforms with the 
     definitions and methods established by the Secretary, a State 
     report card on the quality of teacher preparation in the 
     State, both for traditional teacher preparation programs and 
     for alternative routes to State certification or licensure 
     programs, which shall include not less than the following:
       ``(A) A description of reliability and validity of the 
     teacher certification and licensure assessments, and any 
     other certification and licensure requirements, used by the 
     State.
       ``(B) The standards and criteria that prospective teachers 
     must meet in order to attain initial teacher certification or 
     licensure and to be certified or licensed to teach particular 
     academic subject areas or in particular grades within the 
     State.
       ``(C) A description of how the assessments and requirements 
     described in subparagraph (A) are aligned with the State's 
     challenging academic content standards required under section 
     1111(b)(1) of the Elementary and Secondary Education Act of 
     1965 and State early learning standards for early childhood 
     education programs.
       ``(D) For each of the assessments used by the State for 
     teacher certification or licensure--
       ``(i) for each institution of higher education located in 
     the State and each entity located in the State that offers an 
     alternative route for teacher certification or licensure, the 
     percentage of students at such institution or entity who have 
     completed 100 percent of the nonclinical coursework and taken 
     the assessment who pass such assessment;
       ``(ii) the percentage of all such students at all such 
     institutions taking the assessment who pass such assessment; 
     and
       ``(iii) the percentage of students taking an assessment who 
     completed the teacher preparation program after enrolling in 
     the program, which shall be made available widely and 
     publicly by the State.
       ``(E) A description of alternative routes to State 
     certification or licensure in the State, if any, including, 
     for each of the assessments used by the State for teacher 
     certification or licensure--
       ``(i) the percentage of individuals participating in such 
     routes, or who have completed such routes during the 2-year 
     period preceding the date of the determination, who passed 
     each such assessment; and
       ``(ii) the average scaled score of individuals 
     participating in such routes, or who have completed such 
     routes during the period preceding the date of the 
     determination, who passed each such assessment.
       ``(F) A description of the State's criteria for assessing 
     the performance of teacher preparation programs within 
     institutions of higher education in the State. Such criteria 
     shall include indicators of the academic content knowledge 
     and teaching skills of students enrolled in such programs.
       ``(G) For each teacher preparation program in the State, 
     the criteria for admission into the program, the number of 
     students in the program (disaggregated by race and gender), 
     the average number of hours of supervised clinical experience 
     required for those in the program, and the number of full-
     time equivalent faculty, adjunct faculty, and students in 
     supervised clinical experience.
       ``(H) For the State as a whole, and for each teacher 
     preparation program in the State, the number of teachers 
     prepared, in the aggregate and reported separately by--
       ``(i) area of certification or licensure;
       ``(ii) academic major; and
       ``(iii) subject area for which the teacher has been 
     prepared to teach.
       ``(I) Using the data generated under subparagraphs (G) and 
     (H), a description of the extent to which teacher preparation 
     programs are helping to address shortages of highly qualified 
     teachers, by area of certification or licensure, subject, and 
     specialty, in the State's public schools, including those 
     areas described in section 205(a)(5).
       ``(J) A description of the activities that prepare teachers 
     to effectively integrate technology into curricula and 
     instruction and effectively use technology to collect, 
     manage, and analyze data in order to improve teaching, 
     learning, and decision making for the purpose of increasing 
     student academic achievement.
       ``(2) Prohibition against creating a national list.--The 
     Secretary shall not create a national list or ranking of 
     States or schools using the scaled scores provided under this 
     subsection.
       ``(c) Report of the Secretary on the Quality of Teacher 
     Preparation.--
       ``(1) Report card.--The Secretary shall provide to 
     Congress, and publish and make widely available, a report 
     card on teacher qualifications and preparation in the United 
     States, including all the information reported in 
     subparagraphs (A) through (J) of subsection (b)(1). Such 
     report shall identify States for which eligible States and 
     eligible partnerships received a grant under this part. Such 
     report shall be so provided, published, and made available 
     annually.
       ``(2) Report to congress.--The Secretary shall prepare and 
     submit a report to Congress that contains the following:
       ``(A) A comparison of States' efforts to improve the 
     quality of the current and future teaching force.
       ``(B) A comparison of eligible partnerships' efforts to 
     improve the quality of the current and future teaching force.
       ``(C) The national mean and median scaled scores and pass 
     rate on any standardized test that is used in more than 1 
     State for teacher certification or licensure.
       ``(3) Special rule.--In the case of a teacher preparation 
     program with fewer than 10 scores reported on any single 
     initial teacher certification or licensure assessment during 
     an academic year, the Secretary shall collect and publish 
     information, and make publicly available, with respect to an 
     average pass rate and scaled score on each State 
     certification or licensure assessment taken over a 3-year 
     period.
       ``(d) Coordination.--The Secretary, to the extent 
     practicable, shall coordinate the information collected and 
     published under this part among States for individuals who 
     took State teacher certification or licensure assessments in 
     a State other than the State in which the individual received 
     the individual's most recent degree.

     ``SEC. 207. STATE FUNCTIONS.

       ``(a) State Assessment.--In order to receive funds under 
     this Act, a State shall have in place a procedure to identify 
     and assist, through the provision of technical assistance, 
     low-performing programs of teacher preparation. Such State 
     shall provide the Secretary an annual list of such low-
     performing teacher preparation programs that includes an 
     identification of those programs at risk of being placed on 
     such list. Such levels of performance shall be determined 
     solely by the State and may include criteria based on 
     information collected pursuant to this part. Such assessment 
     shall be described in the report under section 206(b).
       ``(b) Termination of Eligibility.--Any program of teacher 
     preparation from which the State has withdrawn the State's 
     approval, or terminated the State's financial support, due to 
     the low performance of the program based upon the State 
     assessment described in subsection (a)--
       ``(1) shall be ineligible for any funding for professional 
     development activities awarded by the Department;
       ``(2) shall not be permitted to accept or enroll any 
     student that receives aid under title IV in the institution's 
     teacher preparation program; and
       ``(3) shall provide transitional support, including 
     remedial services if necessary, for students enrolled at the 
     institution at the time of termination of financial support 
     or withdrawal of approval.
       ``(c) Negotiated Rulemaking.--If the Secretary develops any 
     regulations implementing subsection (b)(2), the Secretary 
     shall submit such proposed regulations to a negotiated 
     rulemaking process, which shall include representatives of 
     States, institutions of higher education, and educational and 
     student organizations.
       ``(d) Application of the Requirements.--The requirements of 
     this section shall apply to both traditional teacher 
     preparation programs and alternative routes to State 
     certification and licensure programs.

     ``SEC. 208. GENERAL PROVISIONS.

       ``(a) Methods.--In complying with sections 206 and 207, the 
     Secretary shall ensure that States and institutions of higher 
     education use fair and equitable methods in reporting and 
     that the reporting methods do not allow identification of 
     individuals.
       ``(b) Special Rule.--For each State that does not use 
     content assessments as a means of ensuring that all teachers 
     teaching in core academic subjects within the State are 
     highly qualified not later than the end of the 2005-2006 
     school year, as required under section 1119 of the Elementary 
     and Secondary

[[Page S9661]]

     Education Act of 1965, and that each person employed as a 
     special education teacher in the State who teaches elementary 
     school, middle school, or secondary school is highly 
     qualified by such deadline, as required under section 
     612(a)(14)(C) of the Individuals with Disabilities Education 
     Act,--
       ``(1) the Secretary shall, to the extent practicable, 
     collect data comparable to the data required under this part 
     from States, local educational agencies, institutions of 
     higher education, or other entities that administer such 
     assessments to teachers or prospective teachers; and
       ``(2) notwithstanding any other provision of this part, the 
     Secretary shall use such data to carry out requirements of 
     this part related to assessments, pass rates, and scaled 
     scores.
       ``(c) Limitations.--
       ``(1) Federal control prohibited.--Nothing in this title 
     shall be construed to permit, allow, encourage, or authorize 
     any Federal control over any aspect of any private, 
     religious, or home school, whether or not a home school is 
     treated as a private school or home school under State law. 
     This section shall not be construed to prohibit private, 
     religious, or home schools from participation in programs or 
     services under this title.
       ``(2) No change in state control encouraged or required.--
     Nothing in this title shall be construed to encourage or 
     require any change in a State's treatment of any private, 
     religious, or home school, whether or not a home school is 
     treated as a private school or home school under State law.
       ``(3) National system of teacher certification or licensure 
     prohibited.--Nothing in this title shall be construed to 
     permit, allow, encourage, or authorize the Secretary to 
     establish or support any national system of teacher 
     certification or licensure.
       ``(d) Release of Information to Teacher Preparation 
     Programs.--
       ``(1) In general.--For the purpose of improving teacher 
     preparation programs, a State educational agency shall 
     provide to a teacher preparation program, upon the request of 
     the teacher preparation program, any and all pertinent 
     education-related information that--
       ``(A) may enable the teacher preparation program to 
     evaluate the effectiveness of the program's graduates or the 
     program itself; and
       ``(B) is possessed, controlled, or accessible by the State 
     educational agency.
       ``(2) Content of information.--The information described in 
     paragraph (1)--
       ``(A) shall include an identification of specific 
     individuals who graduated from the teacher preparation 
     program to enable the teacher preparation program to evaluate 
     the information provided to the program from the State 
     educational agency with the program's own data about the 
     specific courses taken by, and field experiences of, the 
     individual graduates; and
       ``(B) may include--
       ``(i) kindergarten through grade 12 academic achievement 
     and demographic data, without individual identifying 
     information, for students who have been taught by graduates 
     of the teacher preparation program; and
       ``(ii) teacher effectiveness evaluations for teachers who 
     graduated from the teacher preparation program.

     ``SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this part such sums as may be necessary for 
     fiscal year 2006 and each of the 5 succeeding fiscal years, 
     of which--
       ``(1) 50 percent shall be available for each fiscal year to 
     award grants under section 202; and
       ``(2) 50 percent shall be available for each fiscal year to 
     award grants under section 203.
       ``(b) Special Rule.--If the Secretary determines that there 
     is an insufficient number of meritorious applications for 
     grants under section 202 or 203 to justify awarding the full 
     amount described in paragraph (1) or (2) of subsection (a), 
     respectively, the Secretary may, after funding the 
     meritorious applications, use the remaining funds for grants 
     under the other such section.''.

                      TITLE III--INSTITUTIONAL AID

     SEC. 301. PROGRAM PURPOSE.

       Section 311 (20 U.S.C. 1057) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``351'' and inserting 
     ``391''; and
       (B) in paragraph (3)(F), by inserting ``, including 
     services that will assist in the education of special 
     populations'' before the period; and
       (2) in subsection (c)--
       (A) in paragraph (6), by inserting ``, including 
     innovative, customized, remedial education and English 
     language instruction courses designed to help retain students 
     and move the students rapidly into core courses and through 
     program completion'' before the period;
       (B) by redesignating paragraphs (7) through (12) as 
     paragraphs (8) through (13), respectively;
       (C) by inserting after paragraph (6) the following:
       ``(7) Education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents.''; and
       (D) in the matter preceding subparagraph (A) of paragraph 
     (13) (as redesignated by subparagraph (B)), by striking 
     ``subsection (c)'' and inserting ``subsection (b) and section 
     391''.

     SEC. 302. DEFINITIONS; ELIGIBILITY.

       Section 312 (20 U.S.C. 1058) is amended--
       (1) in subsection (b)(1)(A), by striking ``subsection (c) 
     of this section'' and inserting ``subsection (d)''; and
       (2) in subsection (d)(2), by striking ``subdivision'' and 
     inserting ``paragraph''.

     SEC. 303. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
                   UNIVERSITIES.

       Section 316 (20 U.S.C. 1059c) is amended--
       (1) by striking subsection (b)(3) and inserting the 
     following:
       ``(3) Tribal college or university.--The term `Tribal 
     College or University' means an institution that meets the 
     definition of a tribally controlled college or university in 
     section 2 of the Tribally Controlled College or University 
     Assistance Act of 1978 (25 U.S.C. 1801).'';
       (2) in subsection (c)(2)--
       (A) in subparagraph (B), by inserting before the semicolon 
     at the end the following: ``and the acquisition of real 
     property adjacent to the campus of the institution'';
       (B) by redesignating subparagraphs (G), (H), (I), (J), (K), 
     and (L) as subparagraphs (H), (I), (J), (K), (L), and (N), 
     respectively;
       (C) by inserting after subparagraph (F) the following:
       ``(G) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     parents of students;'';
       (D) in subparagraph (L) (as redesignated by subparagraph 
     (B)), by striking ``and'' after the semicolon;
       (E) by inserting after subparagraph (L) (as redesignated by 
     subparagraph (B)) the following:
       ``(M) developing or improving facilities for Internet use 
     or other distance learning academic instruction capabilities; 
     and''; and
       (F) in subparagraph (N) (as redesignated by subparagraph 
     (B)), by striking ``subparagraphs (A) through (K)'' and 
     inserting ``subparagraphs (A) through (M)''; and
       (3) by striking subsection (d) and inserting the following:
       ``(d) Application, Plan, and Allocation.--
       ``(1) Institutional eligibility.--To be eligible to receive 
     assistance under this section, a Tribal College or University 
     shall be an eligible institution under section 312(b).
       ``(2) Application.--
       ``(A) In general.--A Tribal College or University desiring 
     to receive assistance under this section shall submit an 
     application to the Secretary at such time, and in such 
     manner, as the Secretary may reasonably require.
       ``(B) Streamlined process.--The Secretary shall establish 
     application requirements in such a manner as to simplify and 
     streamline the process for applying for grants.
       ``(3) Allocations to institutions.--
       ``(A) Construction grants.--
       ``(i) In general.--Of the amount appropriated to carry out 
     this section for any fiscal year, the Secretary may reserve 
     30 percent for the purpose of awarding 1-year grants of not 
     less than $1,000,000 to address maintenance and renovation 
     needs at eligible institutions.
       ``(ii) Preference.--In providing grants under clause (i), 
     the Secretary shall give preference to eligible institutions 
     that have not yet received an award under this section.
       ``(B) Allotment of remaining funds.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Secretary shall distribute the remaining funds appropriated 
     for any fiscal year to each eligible institution as follows:

       ``(I) 60 percent of the remaining appropriated funds shall 
     be distributed among the eligible Tribal Colleges and 
     Universities on a pro rata basis, based on the respective 
     Indian student counts (as defined in section 2(a) of the 
     Tribally Controlled College or University Assistance Act of 
     1978 (25 U.S.C. 1801(a)) of the Tribal Colleges and 
     Universities; and
       ``(II) the remaining 40 percent shall be distributed in 
     equal shares to eligible Tribal Colleges and Universities.

       ``(ii) Minimum grant.--The amount distributed to a Tribal 
     College or University under clause (i) shall not be less than 
     $500,000.
       ``(4) Special rules.--
       ``(A) Concurrent funding.--For the purposes of this part, 
     no Tribal College or University that is eligible for and 
     receives funds under this section shall concurrently receive 
     funds under other provisions of this part or part B.
       ``(B) Exemption.--Section 313(d) shall not apply to 
     institutions that are eligible to receive funds under this 
     section.''.

     SEC. 304. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING 
                   INSTITUTIONS.

       Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--
       (1) in subparagraph (G), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (H), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(I) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents.''.

     SEC. 305. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

       (a) Grant Program Authorized.--Part A of title III (20 
     U.S.C. 1057 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 318. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

       ``(a) Program Authorized.--The Secretary shall provide 
     grants and related assistance

[[Page S9662]]

     to Native American-serving, nontribal institutions to enable 
     such institutions to improve and expand their capacity to 
     serve Native Americans.
       ``(b) Definitions.--In this section:
       ``(1) Native american.--The term `Native American' means an 
     individual who is of a tribe, people, or culture that is 
     indigenous to the United States.
       ``(2) Native american-serving, nontribal institution.--The 
     term `Native American-serving, nontribal institution' means 
     an institution of higher education that, at the time of 
     application--
       ``(A) has an enrollment of undergraduate students that is 
     not less than 10 percent Native American students; and
       ``(B) is not a Tribal College or University (as defined in 
     section 316).
       ``(c) Authorized Activities.--
       ``(1) Types of activities authorized.--Grants awarded under 
     this section shall be used by Native American-serving, 
     nontribal institutions to assist such institutions to plan, 
     develop, undertake, and carry out activities to improve and 
     expand such institutions' capacity to serve Native Americans.
       ``(2) Examples of authorized activities.--Such programs may 
     include--
       ``(A) the purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes;
       ``(B) renovation and improvement in classroom, library, 
     laboratory, and other instructional facilities;
       ``(C) support of faculty exchanges, and faculty development 
     and faculty fellowships to assist faculty in attaining 
     advanced degrees in the faculty's field of instruction;
       ``(D) curriculum development and academic instruction;
       ``(E) the purchase of library books, periodicals, 
     microfilm, and other educational materials;
       ``(F) funds and administrative management, and acquisition 
     of equipment for use in strengthening funds management;
       ``(G) the joint use of facilities such as laboratories and 
     libraries; and
       ``(H) academic tutoring and counseling programs and student 
     support services.
       ``(d) Application Process.--
       ``(1) Institutional eligibility.--A Native American-
     serving, nontribal institution desiring to receive assistance 
     under this section shall submit to the Secretary such 
     enrollment data as may be necessary to demonstrate that the 
     institution is a Native American-serving, nontribal 
     institution, along with such other information and data as 
     the Secretary may by regulation require.
       ``(2) Applications.--
       ``(A) Permission to submit applications.--Any institution 
     that is determined by the Secretary to be a Native American-
     serving, nontribal institution may submit an application for 
     assistance under this section to the Secretary.
       ``(B) Simplified and streamlined format.--The Secretary 
     shall, to the extent possible, prescribe a simplified and 
     streamlined format for applications under this section that 
     takes into account the limited number of institutions that 
     are eligible for assistance under this section.
       ``(C) Content.--An application submitted under subparagraph 
     (A) shall include--
       ``(i) a 5-year plan for improving the assistance provided 
     by the Native American-serving, nontribal institution to 
     Native Americans; and
       ``(ii) such other information and assurances as the 
     Secretary may require.
       ``(3) Special rules.--
       ``(A) Eligibility.--No Native American-serving, nontribal 
     institution that receives funds under this section shall 
     concurrently receive funds under other provisions of this 
     part or part B.
       ``(B) Exemption.--Section 313(d) shall not apply to 
     institutions that are eligible to receive funds under this 
     section.
       ``(C) Distribution.--In awarding grants under this section, 
     the Secretary shall, to the extent possible and consistent 
     with the competitive process under which such grants are 
     awarded, ensure maximum and equitable distribution among all 
     eligible institutions.''.
       (b) Authorization of Appropriations.--Section 399 (20 
     U.S.C. 1068h) is amended by adding at the end the following:
       ``(c) Minimum Grant Amount.--The minimum amount of a grant 
     under this title shall be $200,000.''.

     SEC. 306. PART B DEFINITIONS.

       Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting 
     ``, in consultation with the Commissioner for Education 
     Statistics'' before ``and the Commissioner''.

     SEC. 307. GRANTS TO INSTITUTIONS.

       Section 323(a) (20 U.S.C. 1062(a)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``360(a)(2)'' and inserting ``399(a)(2)'';
       (2) by redesignating paragraphs (7) through (12) as 
     paragraphs (8) through (13), respectively; and
       (3) by inserting after paragraph (6) the following:
       ``(7) Education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents.''.

     SEC. 308. ALLOTMENTS TO INSTITUTIONS.

       Section 324 (20 U.S.C. 1063) is amended by adding at the 
     end the following:
       ``(h) Special Rule on Eligibility.--Notwithstanding any 
     other provision of this section, a part B institution shall 
     not receive an allotment under this section unless the part B 
     institution provides data indicating that the part B 
     institution--
       ``(1) enrolled Federal Pell Grant recipients in the 
     preceding academic year;
       ``(2) in the preceding academic year, has graduated 
     students from a program of academic study that is licensed or 
     accredited by a nationally recognized accrediting agency or 
     association recognized by the Secretary pursuant to part H of 
     title IV where appropriate; and
       ``(3) where appropriate, has graduated students who, within 
     the past 5 years, enrolled in graduate or professional 
     school.''.

     SEC. 309. PROFESSIONAL OR GRADUATE INSTITUTIONS.

       Section 326 (20 U.S.C. 1063b) is amended--
       (1) in subsection (c)--
       (A) in paragraph (2), by inserting ``, and for the 
     acquisition and development of real property that is adjacent 
     to the campus for such construction, maintenance, renovation, 
     or improvement'' after ``services'';
       (B) by redesignating paragraphs (5) through (7) as 
     paragraphs (7) through (9), respectively;
       (C) by inserting after paragraph (4) the following:
       ``(5) tutoring, counseling, and student service programs 
     designed to improve academic success;
       ``(6) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents;'';
       (D) in paragraph (7) (as redesignated by subparagraph (B)), 
     by striking ``establish or improve'' and inserting 
     ``establishing or improving'';
       (E) in paragraph (8) (as redesignated by subparagraph 
     (B))--
       (i) by striking ``assist'' and inserting ``assisting''; and
       (ii) by striking ``and'' after the semicolon;
       (F) in paragraph (9) (as redesignated by subparagraph (B)), 
     by striking the period and inserting ``; and''; and
       (G) by adding at the end the following:
       ``(10) other activities proposed in the application 
     submitted under subsection (d) that--
       ``(A) contribute to carrying out the purposes of this part; 
     and
       ``(B) are approved by the Secretary as part of the review 
     and acceptance of such application.'';
       (2) in subsection (e)--
       (A) in paragraph (1)--
       (i) by inserting a colon after ``the following'';
       (ii) in subparagraph (Q), by striking ``and'' at the end;
       (iii) in subparagraph (R), by striking the period and 
     inserting a semicolon; and
       (iv) by adding at the end the following:
       ``(S) Alabama State University qualified graduate program;
       ``(T) Coppin State University qualified graduate program; 
     and
       ``(U) Prairie View A & M University qualified graduate 
     program.'';
       (B) in paragraph (2), by inserting ``in law or'' after 
     ``instruction'';
       (C) in paragraph (3), by striking ``1998'' and inserting 
     ``2006'';
       (3) in subsection (f)(3)--
       (A) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) The amount of non-Federal funds for the fiscal year 
     for which the determination is made that the institution or 
     program listed in subsection (e)--
       ``(i) allocates from institutional resources;
       ``(ii) secures from non-Federal sources, including amounts 
     appropriated by the State and amounts from the private 
     sector; and
       ``(iii) will utilize to match Federal funds awarded for the 
     fiscal year for which the determination is made under this 
     section to the institution or program.
       ``(B) The number of students enrolled in the qualified 
     graduate programs of the eligible institution or program, for 
     which the institution or program received and allocated 
     funding under this section in the preceding year.'';
       (B) in subparagraph (C), by striking ``(or the equivalent) 
     enrolled in the eligible professional or graduate school'' 
     and all that follows through the period and inserting 
     ``enrolled in the qualified programs or institutions listed 
     in paragraph (1).'';
       (C) in subparagraph (D)--
       (i) by striking ``students'' and inserting ``Black American 
     students or minority students''; and
       (ii) by striking ``institution'' and inserting 
     ``institution or program''; and
       (D) by striking subparagraph (E) and inserting the 
     following:
       ``(E) The percentage that the total number of Black 
     American students and minority students who receive their 
     first professional, master's, or doctoral degrees from the 
     institution or program in the academic year preceding the 
     academic year for which the determination is made, represents 
     of the total number of Black American students and minority 
     students in the United States who receive their first 
     professional, master's, or doctoral degrees in the 
     professions or disciplines related to the course of study at 
     such institution or program, respectively, in the preceding 
     academic year.''; and
       (4) in subsection (g), by striking ``1998'' and inserting 
     ``2006''.

     SEC. 310. AUTHORIZATION OF APPROPRIATIONS.

       Subsection (a) of section 399 (20 U.S.C. 1068h) is amended 
     to read as follows:
       ``(a) Authorizations.--
       ``(1) Part a.--(A) There are authorized to be appropriated 
     to carry out part A (other

[[Page S9663]]

     than section 316) such sums as may be necessary for fiscal 
     year 2006 and each of the 5 succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 316 such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.
       ``(C) There are authorized to be appropriated to carry out 
     section 317 such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.
       ``(D) There are authorized to be appropriated to carry out 
     section 318 such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.
       ``(2) Part b.--(A) There are authorized to be appropriated 
     to carry out part B (other than section 326) such sums as may 
     be necessary for fiscal year 2006 and each of the 5 
     succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 326 such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.
       ``(3) Part c.--There are authorized to be appropriated to 
     carry out part C such sums as may be necessary for fiscal 
     year 2006 and each of the 5 succeeding fiscal years.
       ``(4) Part d.--(A) There are authorized to be appropriated 
     to carry out part D (other than section 345(7), but including 
     section 347) such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 345(7) such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.
       ``(5) Part e.--There are authorized to be appropriated to 
     carry out part E such sums as may be necessary for fiscal 
     year 2006 and each of the 5 succeeding fiscal years.''.

     SEC. 311. TECHNICAL CORRECTIONS.

       Title III (20 U.S.C. 1051 et seq.) is further amended--
       (1) in section 342(5)(C) (20 U.S.C. 1066a(5)(C)), by 
     striking ``,,'' and inserting ``,'';
       (2) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
     ``Sale of Qualified Bonds.--'' before ``Notwithstanding'';
       (3) in the matter preceding clause (i) of section 365(9)(A) 
     (20 U.S.C. 1067k(9)(A)), by striking ``support'' and 
     inserting ``supports'';
       (4) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
     striking ``subparagraph (E)'' and inserting ``subparagraph 
     (D)'';
       (5) in the matter preceding subparagraph (A) of section 
     392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking ``eligible 
     institutions under part A institutions'' and inserting 
     ``eligible institutions under part A''; and
       (6) in the matter preceding paragraph (1) of section 396 
     (20 U.S.C. 1068e), by striking ``360'' and inserting ``399''.

                      TITLE IV--STUDENT ASSISTANCE

  PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER 
                               EDUCATION

     SEC. 401. FEDERAL PELL GRANTS.

       Section 401 (20 U.S.C. 1070a) is amended--
       (1) in subsection (a)(1)--
       (A) in the first sentence, by striking ``2004'' and 
     inserting ``2012''; and
       (B) in the second sentence, by striking ``,,'' and 
     inserting ``,'';
       (2) in subsection (b)--
       (A) by striking paragraph (2)(A) and inserting the 
     following:
       ``(2)(A) the amount of the Federal Pell Grant for a student 
     eligible under this part shall be--
       ``(i) $5,100 for academic year 2006-2007;
       ``(ii) $5,400 for academic year 2007-2008;
       ``(iii) $5,700 for academic year 2008-2009;
       ``(iv) $6,000 for academic year 2009-2010; and
       ``(v) $6,300 for academic year 2010-2011,

     less an amount equal to the amount determined to be the 
     expected family contribution with respect to that student for 
     that year.'';
       (B) by striking paragraph (3);
       (C) by redesignating paragraphs (4) through (8) as 
     paragraphs (3) through (7), respectively;
       (D) in paragraph (4) (as redesignated by subparagraph (C)), 
     by striking ``$400, except'' and all that follows through the 
     period and inserting ``10 percent of the maximum basic grant 
     level specified in the appropriate Appropriation Act for such 
     academic year.''; and
       (E) by striking paragraph (5) (as redesignated by 
     subparagraph (C)) and inserting the following:
       ``(5) In the case of a student who is enrolled, on at least 
     a half-time basis and for a period of more than 1 academic 
     year in a 2-year or 4-year program of instruction for which 
     an institution of higher education awards an associate or 
     baccalaureate degree, the Secretary shall allow such student 
     to receive not more than 2 Federal Pell Grants during a 
     single award year to permit such student to accelerate the 
     student's progress toward a degree by attending additional 
     sessions. In the case of a student receiving more than 1 
     Federal Pell Grant in a single award year, the total amount 
     of Federal Pell Grants awarded to such student for the award 
     year may exceed the basic grant level specified in the 
     appropriate Appropriation Act for such award year.''; and
       (3) in subsection (c), by adding at the end the following:
       ``(5) The period of time during which a student may receive 
     Federal Pell Grants shall not exceed 18 semesters, or an 
     equivalent period of time as determined by the Secretary 
     pursuant to regulations, which period shall--
       ``(A) be determined without regard to whether the student 
     is enrolled on a full-time basis during any portion of the 
     period of time; and
       ``(B) include any period of time for which the student 
     received a Federal Pell Grant prior to the date of enactment 
     of the Higher Education Amendments of 2005.''.

     SEC. 402. FEDERAL TRIO PROGRAMS.

       (a) Program Authority; Authorization of Appropriations.--
     Section 402A (20 U.S.C. 1070a-11) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``4'' and inserting ``5'';
       (ii) by striking subparagraph (A); and
       (iii) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) Minimum grants.--Unless the institution or agency 
     requests a smaller amount, an individual grant authorized 
     under this chapter shall be awarded in an amount that is not 
     less than $200,000, except that an individual grant 
     authorized under section 402G shall be awarded in an amount 
     that is not less than $170,000.'';
       (2) in subsection (c)--
       (A) in paragraph (2), by striking ``service delivery'' and 
     inserting ``high quality service delivery, as determined 
     under subsection (f),'';
       (B) in paragraph (3)(B), by striking ``is not required to'' 
     and inserting ``shall not''; and
       (C) in paragraph (5), by striking ``campuses'' and 
     inserting ``different campuses'';
       (3) in subsection (e), by striking ``(g)(2)'' each place 
     the term occurs and inserting ``(h)(4)'';
       (4) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively;
       (5) by inserting after subsection (e) the following:
       ``(f) Outcome Criteria.--
       ``(1) In general.--The Secretary, by regulation, shall 
     establish outcome criteria for measuring, annually and for 
     longer periods, the quality and effectiveness of programs 
     authorized under this chapter.
       ``(2) Use for prior experience determination.--The outcome 
     criteria under paragraph (1) shall be used to evaluate the 
     programs provided by a recipient of a grant under this 
     chapter, and the Secretary shall determine an eligible 
     entity's prior experience of high quality service delivery, 
     as required in subsection (c)(2), based on the outcome 
     criteria.
       ``(3) Consideration of relevant data.--The outcome criteria 
     under this subsection shall take into account data pertaining 
     to secondary school completion, postsecondary education 
     enrollment, and postsecondary education completion for low-
     income students, first generation college students, and 
     individuals with disabilities, in the schools and 
     institutions of higher education served by the program to be 
     evaluated.
       ``(4) Contents of outcome criteria.--The outcome criteria 
     shall include the following:
       ``(A) For programs authorized under section 402B, whether 
     the eligible entity met or exceeded the entity's objectives 
     established in the entity's application for such program 
     regarding--
       ``(i) the delivery of service to a total number of students 
     served by the program;
       ``(ii) the continued secondary school enrollment of such 
     students;
       ``(iii) the graduation of such students from secondary 
     school; and
       ``(iv) the enrollment of such students in an institution of 
     higher education.
       ``(B) For programs authorized under section 402C, whether 
     the eligible entity met or exceeded its objectives for such 
     program regarding--
       ``(i) the delivery of service to a total number of students 
     served by the program, as agreed upon by the entity and the 
     Secretary for the period;
       ``(ii) such students' school performance, as measured by 
     the grade point average, or its equivalent;
       ``(iii) such students' academic performance, as measured by 
     standardized tests, including tests required by the students' 
     State;
       ``(iv) the retention in, and graduation from, secondary 
     school of such students; and
       ``(v) the enrollment of such students in an institution of 
     higher education.
       ``(C) For programs authorized under section 402D--
       ``(i) whether the eligible entity met or exceeded the 
     entity's objectives regarding the retention in postsecondary 
     education of the students served by the program;
       ``(ii)(I) in the case of an entity that is an institution 
     of higher education offering a baccalaureate degree, the 
     extent to which the entity met or exceeded the entity's 
     objectives regarding such students' completion of the degree 
     programs in which such students were enrolled; or
       ``(II) in the case of an entity that is an institution of 
     higher education that does not offer a baccalaureate degree, 
     the extent to which the entity met or exceeded the entity's 
     objectives regarding--

       ``(aa) the completion of a degree or certificate by such 
     students; and
       ``(bb) the transfer of such students to institutions of 
     higher education that offer baccalaureate degrees;

       ``(iii) whether the entity met or exceeded the entity's 
     objectives regarding the delivery of service to a total 
     number of students, as agreed upon by the entity and the 
     Secretary for the period; and

[[Page S9664]]

       ``(iv) whether the applicant met or exceeded the entity's 
     objectives regarding such students remaining in good academic 
     standing.
       ``(D) For programs authorized under section 402E, whether 
     the entity met or exceeded the entity's objectives for such 
     program regarding--
       ``(i) the delivery of service to a total number of 
     students, as agreed upon by the entity and the Secretary for 
     the period;
       ``(ii) the provision of appropriate scholarly and research 
     activities for the students served by the program;
       ``(iii) the acceptance and enrollment of such students in 
     graduate programs; and
       ``(iv) the attainment of doctoral degrees by former program 
     participants.
       ``(E) For programs authorized under section 402F, whether 
     the entity met or exceeded the entity's objectives for such 
     program regarding--
       ``(i) the enrollment of students without a secondary school 
     diploma or its recognized equivalent, who were served by the 
     program, in programs leading to such diploma or equivalent;
       ``(ii) the enrollment of secondary school graduates who 
     were served by the program in programs of postsecondary 
     education;
       ``(iii) the delivery of service to a total number of 
     students, as agreed upon by the entity and the Secretary for 
     the period; and
       ``(iv) the provision of assistance to students served by 
     the program in completing financial aid applications and 
     college admission applications.'';
       (6) in subsection (g) (as redesignated by paragraph (4))--
       (A) in the first sentence, by striking ``$700,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.''; and
       (B) by striking the fourth sentence; and
       (7) in subsection (h) (as redesignated by paragraph (4))--
       (A) by redesignating paragraphs (1) through (4) as 
     paragraphs (3) through (6), respectively;
       (B) by inserting before paragraph (3) (as redesignated by 
     subparagraph (A)) the following:
       ``(1) Different campus.--The term `different campus' means 
     a site of an institution of higher education that--
       ``(A) is geographically apart from the main campus of the 
     institution;
       ``(B) is permanent in nature; and
       ``(C) offers courses in educational programs leading to a 
     degree, certificate, or other recognized educational 
     credential.
       ``(2) Different population.--The term `different 
     population' means a group of individuals, with respect to 
     whom an eligible entity desires to serve through an 
     application for a grant under this chapter, that--
       ``(A) is separate and distinct from any other population 
     that the entity has applied for a grant under this chapter to 
     serve; or
       ``(B) while sharing some of the same needs as another 
     population that the eligible entity has applied for a grant 
     under this chapter to serve, has distinct needs for 
     specialized services.'';
       (C) in paragraph (5) (as redesignated by subparagraph 
     (A))--
       (i) in subparagraph (A), by striking ``or'' after the 
     semicolon;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(C) was a member of a reserve component of the Armed 
     Forces called to active duty for a period of more than 180 
     days.''; and
       (D) in paragraph (6), by striking ``subparagraph (A) or (B) 
     of paragraph (3)'' and inserting ``subparagraph (A), (B), or 
     (C) of paragraph (5)''.
       (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``to identify qualified 
     youths with potential for education at the postsecondary 
     level and to encourage such youths'' and inserting ``to 
     encourage eligible youths'';
       (B) in paragraph (2), by inserting ``, and facilitate the 
     application for,'' after ``the availability of''; and
       (C) in paragraph (3), by striking ``, but who have the 
     ability to complete such programs, to reenter'' and inserting 
     ``to enter or reenter, and complete'';
       (2) by redesignating subsection (c) as subsection (d);
       (3) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--Any project assisted under this 
     section shall provide--
       ``(1) academic tutoring, or connections to high quality 
     academic tutoring services, to enable students to complete 
     secondary or postsecondary courses, which may include 
     instruction in reading, writing, study skills, mathematics, 
     science, and other subjects;
       ``(2) advice and assistance in secondary course selection 
     and, if applicable, initial postsecondary course selection;
       ``(3) assistance in preparing for college entrance 
     examinations and completing college admission applications;
       ``(4)(A) information on both the full range of Federal 
     student financial aid programs (including Federal Pell Grant 
     awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(5) guidance on and assistance in--
       ``(A) secondary school reentry;
       ``(B) alternative education programs for secondary school 
     dropouts that lead to the receipt of a regular secondary 
     school diploma;
       ``(C) entry into general educational development (GED) 
     programs; or
       ``(D) postsecondary education; and
       ``(6) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     their parents, including financial planning for postsecondary 
     education.
       ``(c) Permissible Services.--Any project assisted under 
     this section may provide services such as--
       ``(1) personal and career counseling or activities;
       ``(2) information and activities designed to acquaint 
     youths with the range of career options available to the 
     youths;
       ``(3) exposure to the campuses of institutions of higher 
     education, as well as cultural events, academic programs, and 
     other sites or activities not usually available to 
     disadvantaged youth;
       ``(4) workshops and counseling for families of students 
     served;
       ``(5) mentoring programs involving elementary or secondary 
     school teachers or counselors, faculty members at 
     institutions of higher education, students, or any 
     combination of such persons; and
       ``(6) programs and activities as described in subsection 
     (b) or paragraphs (1) through (5) of this subsection that are 
     specially designed for students who are limited English 
     proficient, students with disabilities, students who are 
     homeless children and youths (as such term is defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a)), or students who are in foster care or are 
     aging out of the foster care system.''; and
       (4) in the matter preceding paragraph (1) of subsection (d) 
     (as redesignated by paragraph (2)), by striking ``talent 
     search projects under this chapter'' and inserting ``projects 
     under this section''.
       (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is 
     amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--Any project assisted under this 
     section shall provide--
       ``(1) academic tutoring to enable students to complete 
     secondary or postsecondary courses, which may include 
     instruction in reading, writing, study skills, mathematics, 
     science, and other subjects;
       ``(2) advice and assistance in secondary and postsecondary 
     course selection;
       ``(3) assistance in preparing for college entrance 
     examinations and completing college admission applications;
       ``(4)(A) information on both the full range of Federal 
     student financial aid programs (including Federal Pell Grant 
     awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(5) guidance on and assistance in--
       ``(A) secondary school reentry;
       ``(B) alternative education programs for secondary school 
     dropouts that lead to the receipt of a regular secondary 
     school diploma;
       ``(C) entry into general educational development (GED) 
     programs; or
       ``(D) postsecondary education; and
       ``(6) education or counseling services designed to improve 
     the financial literacy and economic literacy of students, 
     including financial planning for postsecondary education.'';
       (2) in subsection (c)--
       (A) in the subsection heading, by striking ``Required 
     Services'' and inserting ``Additional Required Services for 
     Multiple-Year Grant Recipients''; and
       (B) by striking ``upward bound project assisted under this 
     chapter'' and inserting ``project assisted under this 
     section'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively;
       (4) by inserting after subsection (c) the following:
       ``(d) Permissible Services.--Any project assisted under 
     this section may provide such services as--
       ``(1) exposure to cultural events, academic programs, and 
     other activities not usually available to disadvantaged 
     youth;
       ``(2) information, activities and instruction designed to 
     acquaint youths participating in the project with the range 
     of career options available to the youths;
       ``(3) on-campus residential programs;
       ``(4) mentoring programs involving elementary school or 
     secondary school teachers or counselors, faculty members at 
     institutions of higher education, students, or any 
     combination of such persons;
       ``(5) work-study positions where youth participating in the 
     project are exposed to careers requiring a postsecondary 
     degree;
       ``(6) special services to enable veterans to make the 
     transition to postsecondary education; and
       ``(7) programs and activities as described in subsection 
     (b), subsection (c), or paragraphs (1) through (6) of this 
     subsection that are specially designed for students who are 
     limited English proficient, students with disabilities, 
     students who are homeless children and youths (as such term 
     is defined in section 725 of the McKinney-Vento Homeless

[[Page S9665]]

     Assistance Act (42 U.S.C. 11434a)), or students who are in 
     foster care or are aging out of the foster care system.'';
       (5) in the matter preceding paragraph (1) of subsection (e) 
     (as redesignated by paragraph (3)), by striking ``upward 
     bound projects under this chapter'' and inserting ``projects 
     under this section''; and
       (6) in subsection (f) (as redesignated by paragraph (3))--
       (A) by striking ``during June, July, and August'' each 
     place the term occurs and inserting ``during the summer 
     school recess, for a period not to exceed 3 months''; and
       (B) by striking ``(b)(10)'' and inserting ``(d)(5)''.
       (d) Student Support Services.--Section 402D (20 U.S.C. 
     1070a-14) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (B) by striking paragraph (3) and inserting the following:
       ``(3) to foster an institutional climate supportive of the 
     success of low-income and first generation college students, 
     students with disabilities, students who are limited English 
     proficient, students who are homeless children and youths (as 
     such term is defined in section 725 of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a)), and students who 
     are in foster care or are aging out of the foster care 
     system.''; and
       (C) by adding at the end the following:
       ``(4) to improve the financial literacy and economic 
     literacy of students, including--
       ``(A) basic personal income, household money management, 
     and financial planning skills; and
       ``(B) basic economic decisionmaking skills.'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (d) and (e);
       (3) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--A project assisted under this 
     section shall provide--
       ``(1) academic tutoring to enable students to complete 
     postsecondary courses, which may include instruction in 
     reading, writing, study skills, mathematics, science, and 
     other subjects;
       ``(2) advice and assistance in postsecondary course 
     selection;
       ``(3)(A) information on both the full range of Federal 
     student financial aid programs (including Federal Pell Grant 
     awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(4) education or counseling services designed to improve 
     the financial literacy and economic literacy of students, 
     including financial planning for postsecondary education;
       ``(5) activities designed to assist students participating 
     in the project in securing college admission and financial 
     assistance for enrollment in graduate and professional 
     programs; and
       ``(6) activities designed to assist students enrolled in 2-
     year institutions of higher education in securing admission 
     and financial assistance for enrollment in a 4-year program 
     of postsecondary education.
       ``(c) Permissible Services.--A project assisted under this 
     section may provide services such as--
       ``(1) consistent, individualized personal, career, and 
     academic counseling, provided by assigned counselors;
       ``(2) information, activities, and instruction designed to 
     acquaint youths participating in the project with the range 
     of career options available to the students;
       ``(3) exposure to cultural events and academic programs not 
     usually available to disadvantaged students;
       ``(4) activities designed to acquaint students 
     participating in the project with the range of career options 
     available to the students;
       ``(5) mentoring programs involving faculty or upper class 
     students, or a combination thereof;
       ``(6) securing temporary housing during breaks in the 
     academic year for students who are homeless children and 
     youths (as such term is defined in section 725 of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)) or 
     were formerly homeless children and youths and students who 
     are in foster care or are aging out of the foster care 
     system; and
       ``(7) programs and activities as described in subsection 
     (b) or paragraphs (1) through (5) of this subsection that are 
     specially designed for students who are limited English 
     proficient, students with disabilities, students who are 
     homeless children and youths (as such term is defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a)) or were formerly homeless children and 
     youths, or students who are in foster care or are aging out 
     of the foster care system.'';
       (4) in subsection (d)(1) (as redesignated by paragraph 
     (2)), by striking ``subsection (b)'' and inserting 
     ``subsection (c)''; and
       (5) in the matter preceding paragraph (1) of subsection (e) 
     (as redesignated by paragraph (2)), by striking ``student 
     support services projects under this chapter'' and inserting 
     ``projects under this section''.
       (e) Postbaccalaureate Achievement Program Authority.--
     Section 402E (20 U.S.C. 1070a-15) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading, by inserting ``Required'' 
     before ``Services'';
       (B) in the matter preceding paragraph (1), by striking ``A 
     postbaccalaureate achievement project assisted under this 
     section may provide services such as--'' and inserting ``A 
     project assisted under this section shall provide--'';
       (C) in paragraph (5), by inserting ``and'' after the 
     semicolon;
       (D) in paragraph (6), by striking the semicolon and 
     inserting a period; and
       (E) by striking paragraphs (7) and (8);
       (2) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Permissible Services.--A project assisted under this 
     section may provide services such as--
       ``(1) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     their parents, including financial planning for postsecondary 
     education;
       ``(2) mentoring programs involving faculty members at 
     institutions of higher education, students, or any 
     combination of such persons; and
       ``(3) exposure to cultural events and academic programs not 
     usually available to disadvantaged students.'';
       (4) in the matter preceding paragraph (1) of subsection (d) 
     (as redesignated by paragraph (2)), by striking 
     ``postbaccalaureate achievement'';
       (5) in the matter preceding paragraph (1) of subsection (f) 
     (as redesignated by paragraph (2)), by striking 
     ``postbaccalaureate achievement project'' and inserting 
     ``project under this section''; and
       (6) in subsection (g) (as redesignated by paragraph (2))--
       (A) by striking ``402A(f)'' and inserting ``402A(g)''; and
       (B) by striking ``1993 through 1997'' and inserting ``2006 
     through 2010''.
       (f) Educational Opportunity Centers.--Section 402F (20 
     U.S.C. 1070a-16) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) to improve the financial literacy and economic 
     literacy of students, including--
       ``(A) basic personal income, household money management, 
     and financial planning skills; and
       ``(B) basic economic decisionmaking skills.''; and
       (2) in subsection (b)--
       (A) by redesignating paragraphs (5) through (10) as 
     paragraphs (6) through (11), respectively;
       (B) by inserting after paragraph (4) the following:
       ``(5) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     their parents;'';
       (C) by striking paragraph (7) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(7) individualized personal, career, and academic 
     counseling;''; and
       (D) by striking paragraph (11) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(11) programs and activities as described in paragraphs 
     (1) through (10) that are specially designed for students who 
     are limited English proficient, students with disabilities, 
     or students who are homeless children and youths (as such 
     term is defined in section 725 of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11434a)), or programs and 
     activities for students who are in foster care or are aging 
     out of the foster care system.''.
       (g) Staff Development Activities.--Section 402G(b)(3) (20 
     U.S.C. 1070a-17(b)(3)) is amended by inserting ``, including 
     strategies for recruiting and serving students who are 
     homeless children and youths (as such term is defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a)) and students who are in foster care or are 
     aging out of the foster care system'' before the period at 
     the end.
       (h) Reports, Evaluations, and Grants for Project 
     Improvement and Dissemination.--Section 402H (20 U.S.C. 
     1070a-18) is amended--
       (1) by striking the section heading and inserting 
     ``REPORTS, EVALUATIONS, AND GRANTS FOR PROJECT IMPROVEMENT 
     AND DISSEMINATION.'';
       (2) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively; and
       (3) by inserting before subsection (b) (as redesignated by 
     paragraph (2)) the following:
       ``(a) Report to Congress.--At least once every 2-year 
     period, the Secretary shall prepare and submit to Congress a 
     report on the outcomes achieved by the programs authorized 
     under this chapter. Such report shall include a statement for 
     the preceding fiscal year specifying--
       ``(1) the number of grants awarded during each fiscal year, 
     and the number of individuals served by the programs carried 
     out under such grants;
       ``(2) the number of entities that received grants during 
     the fiscal year, including the number of entities that--

[[Page S9666]]

       ``(A) received a grant to carry out a program under this 
     chapter for the fiscal year; and
       ``(B) had not received funding for that particular program 
     during the previous grant cycle;
       ``(3) a comparison of the number and percentage of grant 
     awards made to entities described in paragraph (2), with the 
     number of such entities funded through discretionary grant 
     competitions conducted by the Secretary under this chapter in 
     the 3 grant cycles preceding the fiscal year;
       ``(4) information on the number of individuals served in 
     each program authorized under this chapter; and
       ``(5) information on the outcomes achieved by each program 
     authorized under this chapter, including the outcome criteria 
     described in section 402A(f) for each program.''.

     SEC. 403. GAINING EARLY AWARENESS AND READINESS FOR 
                   UNDERGRADUATE PROGRAMS.

       (a) Early Intervention and College Awareness Program 
     Authorized.--Section 404A (20 U.S.C. 1070a-21) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Program Authorized.--The Secretary is authorized, in 
     accordance with the requirements of this chapter, to 
     establish a program that encourages eligible entities to 
     provide support to eligible low-income students to assist the 
     students in obtaining a secondary school diploma (or its 
     recognized equivalent) and to prepare for and succeed in 
     postsecondary education, by providing--
       ``(1) financial assistance, academic support, additional 
     counseling, mentoring, outreach, and supportive services to 
     middle school and secondary school students to reduce--
       ``(A) the risk of such students dropping out of school; or
       ``(B) the need for remedial education for such students at 
     the postsecondary level; and
       ``(2) information to students and their parents about the 
     advantages of obtaining a postsecondary education and the 
     college financing options for the students and their 
     parents.'';
       (2) by striking subsection (b)(2)(A) and inserting the 
     following:
       ``(A) give priority to eligible entities that have a prior, 
     demonstrated commitment to early intervention leading to 
     college access through collaboration and replication of 
     successful strategies;''; and
       (3) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) a partnership--
       ``(A) consisting of--
       ``(i) 1 or more local educational agencies; and
       ``(ii) 1 or more degree granting institutions of higher 
     education; and
       ``(B) which may include not less than 2 other community 
     organizations or entities, such as businesses, professional 
     organizations, State agencies, institutions or agencies 
     sponsoring programs authorized under subpart 4, or other 
     public or private agencies or organizations.''.
       (b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is 
     amended--
       (1) by striking subsection (a) and inserting the 
     following:--
       ``(a) Funding Rules.--
       ``(1) Distribution.--In awarding grants from the amount 
     appropriated under section 404G for a fiscal year, the 
     Secretary shall take into consideration--
       ``(A) the geographic distribution of such awards; and
       ``(B) the distribution of such awards between urban and 
     rural applicants.
       ``(2) Special rule.--The Secretary shall annually 
     reevaluate the distribution of funds described in paragraph 
     (1) based on number, quality, and promise of the 
     applications.'';
       (2) by striking subsections (b), (e), and (f);
       (3) by redesignating subsections (c), (d), and (g) as 
     subsections (b), (c), and (d), respectively; and
       (4) by adding at the end the following:
       ``(e) Supplement, Not Supplant.--Grant funds awarded under 
     this chapter shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to carry out activities assisted under this 
     chapter.''.
       (c) Application.--Section 404C (20 U.S.C. 1070a-23) is 
     amended--
       (1) in the section heading, by striking ``ELIGIBLE ENTITY 
     PLANS'' and inserting ``APPLICATIONS'';
       (2) in subsection (a)--
       (A) in the subsection heading, by striking ``Plan'' and 
     inserting ``Application'';
       (B) in paragraph (1)--
       (i) by striking ``a plan'' and inserting ``an 
     application''; and
       (ii) by striking the second sentence; and
       (C) by striking paragraph (2) and inserting the following:
       ``(2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall be in such form, contain or be 
     accompanied by such information or assurances, and be 
     submitted at such time as the Secretary may require. Each 
     such application shall, at a minimum--
       ``(A) describe the activities for which assistance under 
     this chapter is sought, including how the eligible entity 
     will carry out the required activities described in section 
     404D(a);
       ``(B) describe how the eligible agency will meet the 
     requirements of section 404E;
       ``(C) provide assurances that adequate administrative and 
     support staff will be responsible for coordinating the 
     activities described in section 404D;
       ``(D) ensure that activities assisted under this chapter 
     will not displace an employee or eliminate a position at a 
     school assisted under this chapter, including a partial 
     displacement such as a reduction in hours, wages or 
     employment benefits;
       ``(E) describe, in the case of an eligible entity described 
     in section 404A(c)(2), how the eligible entity will define 
     the cohorts of the students served by the eligible entity 
     pursuant to section 404B(d), and how the eligible entity will 
     serve the cohort through grade 12, including--
       ``(i) how vacancies in the program under this chapter will 
     be filled; and
       ``(ii) how the eligible entity will serve students 
     attending different secondary schools;
       ``(F) describe how the eligible entity will coordinate 
     programs with other existing Federal, State, or local 
     programs to avoid duplication and maximize the number of 
     students served;
       ``(G) provide such additional assurances as the Secretary 
     determines necessary to ensure compliance with the 
     requirements of this chapter; and
       ``(H) provide information about the activities that will be 
     carried out by the eligible entity to support systemic 
     changes from which future cohorts of students will 
     benefit.'';
       (3) in the matter preceding subparagraph (A) of subsection 
     (b)(1)--
       (A) by striking ``a plan'' and inserting ``an 
     application''; and
       (B) by striking ``such plan'' and inserting ``such 
     application''; and
       (4) in subsection (c)(1), by striking the semicolon at the 
     end and inserting ``including--
       ``(A) the amount contributed to a student scholarship fund 
     established under section 404E; and
       ``(B) the amount of the costs of administering the 
     scholarship program under section 404E;''.
       (d) Activities.--Section 404D (20 U.S.C. 1070a-24) is 
     amended to read as follows:

     ``SEC. 404D. ACTIVITIES.

       ``(a) Required Activities.--Each eligible entity receiving 
     a grant under this chapter shall carry out the following:
       ``(1) Provide information regarding financial aid for 
     postsecondary education to participating students in the 
     cohort described in subsection 404B(d)(1)(A).
       ``(2) Encourage student enrollment in rigorous and 
     challenging curricula and coursework, in order to reduce the 
     need for remedial coursework at the postsecondary level.
       ``(3) Support activities designed to improve the number of 
     participating students who--
       ``(A) obtain a secondary school diploma; and
       ``(B) complete applications for and enroll in a program of 
     postsecondary education.
       ``(4) In the case of an eligible entity described in 
     section 404A(c)(1), provide for the scholarships described in 
     section 404E.
       ``(b) Optional Activities for States and Partnerships.--An 
     eligible entity that receives a grant under this chapter may 
     use grant funds to carry out 1 or more of the following 
     activities:
       ``(1) Providing tutoring and supporting mentors, including 
     adults or former participants of a program under this 
     chapter, for eligible students.
       ``(2) Conducting outreach activities to recruit priority 
     students described in subsection (d) to participate in 
     program activities.
       ``(3) Providing supportive services to eligible students.
       ``(4) Supporting the development or implementation of 
     rigorous academic curricula, which may include college 
     preparatory, Advanced Placement, or International 
     Baccalaureate programs, and providing participating students 
     access to rigorous core courses that reflect challenging 
     State academic standards.
       ``(5) Supporting dual or concurrent enrollment programs 
     between the secondary school and institution of higher 
     education partners of an eligible entity described in section 
     404A(c)(2), and other activities that support participating 
     students in--
       ``(A) achieving challenging academic standards;
       ``(B) successfully applying for postsecondary education;
       ``(C) successfully applying for student financial aid; and
       ``(D) developing graduation and career plans.
       ``(6) Providing support for scholarships described in 
     section 404E.
       ``(7) Introducing eligible students to institutions of 
     higher education, through trips and school-based sessions.
       ``(8) Providing an intensive extended school day, school 
     year, or summer program that offers--
       ``(A) additional academic classes; or
       ``(B) assistance with college admission applications.
       ``(9) Providing other activities designed to ensure 
     secondary school completion and postsecondary education 
     enrollment of at-risk children, such as--
       ``(A) the identification of at-risk children;
       ``(B) after-school and summer tutoring;
       ``(C) assistance to at-risk children in obtaining summer 
     jobs;
       ``(D) academic counseling;

[[Page S9667]]

       ``(E) volunteer and parent involvement;
       ``(F) encouraging former or current participants of a 
     program under this chapter to serve as peer counselors;
       ``(G) skills assessments;
       ``(H) personal counseling;
       ``(I) family counseling and home visits;
       ``(J) staff development; and
       ``(K) programs and activities described in this subsection 
     that are specially designed for students who are limited 
     English proficient.
       ``(10) Enabling eligible students to enroll in Advanced 
     Placement or International Baccalaureate courses, or college 
     entrance examination preparation courses.
       ``(11) Providing services to eligible students in the 
     participating cohort described in section 404B(d)(1)(A), 
     through the first year of attendance at an institution of 
     higher education.
       ``(c) Additional Optional Activities for States.--In 
     addition to the required activities described in subsection 
     (a) and the optional activities described in subsection (b), 
     an eligible entity described in section 404A(c)(1) receiving 
     funds under this chapter may use grant funds to carry out 1 
     or more of the following activities:
       ``(1) Providing technical assistance to--
       ``(A) middle schools or secondary schools that are located 
     within the State; or
       ``(B) partnerships described in section 404A(c)(2) that are 
     located within the State.
       ``(2) Providing professional development opportunities to 
     individuals working with eligible cohorts of students 
     described in section 404B(d)(1)(A).
       ``(3) Providing strategies and activities that align 
     efforts in the State to prepare eligible students for 
     attending and succeeding in postsecondary education, which 
     may include the development of graduation and career plans.
       ``(4) Disseminating information on the use of 
     scientifically based research and best practices to improve 
     services for eligible students.
       ``(5)(A) Disseminating information on effective coursework 
     and support services that assist students in obtaining the 
     goals described in subparagraph (B)(ii).
       ``(B) Identifying and disseminating information on best 
     practices with respect to--
       ``(i) increasing parental involvement; and
       ``(ii) preparing students, including students with 
     disabilities and students who are limited English proficient, 
     to succeed academically in, and prepare financially for, 
     postsecondary education.
       ``(6) Working to align State academic standards and 
     curricula with the expectations of postsecondary institutions 
     and employers.
       ``(7) Developing alternatives to traditional secondary 
     school that give students a head start on attaining a 
     recognized postsecondary credential (including an industry 
     certificate, an apprenticeship, or an associate's or a 
     bachelor's degree), including school designs that give 
     students early exposure to college-level courses and 
     experiences and allow students to earn transferable college 
     credits or an associate's degree at the same time as a 
     secondary school diploma.
       ``(8) Creating community college programs for drop-outs 
     that are personalized drop-out recovery programs that allow 
     drop-outs to complete a regular secondary school diploma and 
     begin college-level work.
       ``(d) Priority Students.--For eligible entities not using a 
     cohort approach, the eligible entity shall treat as priority 
     students any student in middle or secondary school who is 
     eligible--
       ``(1) to be counted under section 1124(c) of the Elementary 
     and Secondary Education Act of 1965;
       ``(2) for free or reduced price meals under the Richard B. 
     Russell National School Lunch Act;
       ``(3) for assistance under a State program funded under 
     part A or E of title IV of the Social Security Act (42 U.S.C. 
     601 et seq., 670 et seq.); or
       ``(4) for assistance under subtitle B of title VII of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et 
     seq.).
       ``(e) Allowable Providers.--In the case of eligible 
     entities described in section 404A(c)(1), the activities 
     required by this section may be provided by service providers 
     such as community-based organizations, schools, institutions 
     of higher education, public and private agencies, nonprofit 
     and philanthropic organizations, businesses, institutions and 
     agencies sponsoring programs authorized under subpart 4, and 
     other organizations the State determines appropriate.''.
       (e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-
     25) is amended--
       (1) by striking subsections (e) and (f);
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (d), (f), and (g), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Limitation.--
       ``(1) In general.--Subject to paragraph (2), each eligible 
     entity described in section 404A(c)(1) that receives a grant 
     under this chapter shall use not less than 25 percent and not 
     more than 50 percent of the grant funds for activities 
     described in section 404D(c), with the remainder of such 
     funds to be used for a scholarship program under this 
     section.
       ``(2) Exception.--Notwithstanding paragraph (1), the 
     Secretary may allow an eligible entity to use more than 50 
     percent of grant funds received under this chapter for such 
     activities, if the eligible entity demonstrates that the 
     eligible entity has another means of providing the students 
     with the financial assistance described in this section and 
     describes such means in the application submitted under 
     section 404C.
       ``(c) Notification of Eligibility.--Each eligible entity 
     providing scholarships under this section shall provide 
     information on the eligibility requirements for the 
     scholarships to all participating students upon the students' 
     entry into the programs assisted under this chapter.'';
       (4) in subsection (d) (as redesignated by paragraph (2)), 
     by striking ``the lesser of'' and all that follows through 
     the period at the end of paragraph (2) and inserting ``the 
     minimum Federal Pell Grant award under section 401 for such 
     award year.'';
       (5) by inserting after subsection (d) (as redesignated by 
     paragraph (2) and amended by paragraph (4)) the following:
       ``(e) Portability of Assistance.--
       ``(1) In general.--Each eligible entity described in 
     section 404A(c)(1) that receives a grant under this chapter 
     shall create or organize a trust for each cohort described in 
     section 404B(d)(1)(A) for which the grant is sought in the 
     application submitted by the entity, which trust shall be an 
     amount that is not less than the minimum scholarship amount 
     described in subsection (d), multiplied by the number of 
     students participating in the cohort.
       ``(2) Requirement for portability.--Funds contributed to 
     the trust for a cohort shall be available to a student in the 
     cohort when the student has--
       ``(A) completed a secondary school diploma, its recognized 
     equivalent, or other recognized alternative standard for 
     individuals with disabilities; and
       ``(B) enrolled in an institution of higher education.
       ``(3) Qualified educational expenses.--Funds available to 
     an eligible student from a trust may be used for--
       ``(A) tuition, fees, books, supplies, and equipment 
     required for the enrollment or attendance of the eligible 
     student at an institution of higher education; and
       ``(B) in the case of an eligible student with special 
     needs, expenses for special needs services which are incurred 
     in connection with such enrollment or attendance.
       ``(4) Return of funds.--
       ``(A) Redistribution.--
       ``(i) In general.--Trust funds that are not used by an 
     eligible student within 6 years of the student's scheduled 
     completion of secondary school may be redistributed by the 
     eligible entity to other eligible students.
       ``(ii) Return of excess to the secretary.--If, after 
     meeting the requirements of paragraph (1) and, if applicable, 
     redistributing excess funds in accordance with clause (i), an 
     eligible entity has funds remaining, the eligible entity 
     shall return excess funds to the Secretary for distribution 
     to other grantees under this chapter.
       ``(B) Nonparticipating entity.--Notwithstanding 
     subparagraph (A), in the case of an eligible entity described 
     in section 404A(c)(1)(A) that does not receive assistance 
     under this subpart for 6 fiscal years, the eligible entity 
     shall return any trust funds not awarded or obligated to 
     eligible students to the Secretary for distribution to other 
     grantees under this chapter.''; and
       (6) in subsection (g) (as redesignated by paragraph (2))--
       (A) in paragraph (2), by striking ``1993'' and inserting 
     ``2000''; and
       (B) in paragraph (4), by striking ``early intervention 
     component required under section 404D'' and inserting 
     ``activities required under section 404D(a)''.
       (f) Repeal of 21st Century Scholar Certificates.--Chapter 2 
     of subpart 2 of part A of title IV (20 U.S.C. 1070a-21 et 
     seq.) is further amended--
       (1) by striking section 404F; and
       (2) by redesignating sections 404G and 404H as sections 
     404F and 404G, respectively.
       (g) Authorization of Appropriations.--Section 404G (as 
     redesignated by subsection (f)) (20 U.S.C. 1070a-28) is 
     amended by striking ``$200,000,000 for fiscal year 1999'' and 
     all that follows through the period and inserting ``such sums 
     as may be necessary for fiscal year 2006 and each of the 5 
     succeeding fiscal years.''.
       (h) Conforming Amendments.--Chapter 2 of subpart 2 of part 
     A of title IV (20 U.S.C. 1070a-21 et seq.) is further 
     amended--
       (1) in section 404A(b)(1), by striking ``404H'' and 
     inserting ``404G'';
       (2) in section 404B(a)(1), by striking ``404H'' and 
     inserting ``404G''; and
       (3) in section 404F(c) (as redesignated by section 6(2)), 
     by striking ``404H'' and inserting ``404G''.

     SEC. 404. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.

       Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 
     1070a-31 et seq.) is repealed.

     SEC. 405. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY 
                   GRANTS.

       (a) Appropriations Authorized.--Section 413A(b)(1) (20 
     U.S.C. 1070b(b)(1)) is amended by striking ``$675,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.''.
       (b) Allocation of Funds.--
       (1) Allocation of funds.--Section 413D (20 U.S.C. 1070b-3) 
     is amended--
       (A) by striking subsection (a)(4); and
       (B) in subsection (c)(3)(D), by striking ``$450'' and 
     inserting ``$600''.

[[Page S9668]]

       (2) Technical correction.--Section 413D(a)(1) (20 U.S.C. 
     1070b-3(a)(1)) is amended by striking ``such institution'' 
     and all that follows through the period and inserting ``such 
     institution received under subsections (a) and (b) of this 
     section for fiscal year 1999 (as such subsections were in 
     effect with respect to allocations for such fiscal year).''.

     SEC. 406. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP 
                   PROGRAM.

       (a) Appropriations Authorized.--Section 415A(b)(1) (20 
     U.S.C. 1070c(b)(1)) is amended to read as follows:
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this subpart such sums as may be necessary for 
     fiscal year 2006 and each of the 5 succeeding fiscal 
     years.''.
       (b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b)) 
     is amended--
       (1) in the matter preceding subparagraph (A) of paragraph 
     (2), by striking ``not in excess of $5,000 per academic 
     year'' and inserting ``not to exceed the lesser of $12,500 or 
     the student's cost of attendance per academic year''; and
       (2) by striking paragraph (10) and inserting the following:
       ``(10) provides notification to eligible students that such 
     grants are--
       ``(A) Leveraging Educational Assistance Partnership grants; 
     and
       ``(B) funded by the Federal Government, the State, and 
     other contributing partners.''.
       (c) Grants for Access and Persistence.--Section 415E (20 
     U.S.C. 1070c-3a) is amended to read as follows:

     ``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.

       ``(a) Purpose.--It is the purpose of this section to expand 
     college access and increase college persistence by making 
     allotments to States to enable the States to--
       ``(1) expand and enhance partnerships with institutions of 
     higher education, early information and intervention, 
     mentoring, or outreach programs, private corporations, 
     philanthropic organizations, and other interested parties in 
     order to--
       ``(A) carry out activities under this section; and
       ``(B) provide coordination and cohesion among Federal, 
     State, and local governmental and private efforts that 
     provide financial assistance to help low-income students 
     attend an institution of higher education;
       ``(2) provide need-based grants for access and persistence 
     to eligible low-income students;
       ``(3) provide early notification to low-income students of 
     the students' eligibility for financial aid; and
       ``(4) encourage increased participation in early 
     information and intervention, mentoring, or outreach 
     programs.
       ``(b) Allotments to States.--
       ``(1) In general.--
       ``(A) Authorization.--From sums reserved under section 
     415A(b)(2) for each fiscal year, the Secretary shall make an 
     allotment to each State that submits an application for an 
     allotment in accordance with subsection (c) to enable the 
     State to pay the Federal share, as described in paragraph 
     (2), of the cost of carrying out the activities under 
     subsection (d).
       ``(B) Determination of allotment.--In making allotments 
     under subparagraph (A), the Secretary shall consider the 
     following:
       ``(i) Continuation of award.--If a State continues to meet 
     the specifications established in such State's application 
     under subsection (c), the Secretary shall make an allotment 
     to such State that is not less than the allotment made to 
     such State for the previous fiscal year.
       ``(ii) Priority.--The Secretary shall give priority in 
     making allotments to States that meet the requirements 
     described in paragraph (2)(A)(ii).
       ``(2) Federal share.--
       ``(A) In general.--The Federal share under this section 
     shall be determined in accordance with the following:
       ``(i) If a State applies for an allotment under this 
     section in partnership with--

       ``(I) any number of degree granting institutions of higher 
     education in the State whose combined full-time enrollment 
     represents less than a majority of all students attending 
     institutions of higher education in the State; and
       ``(II)(aa) philanthropic organizations that are located in, 
     or that provide funding in, the State; or
       ``(bb) private corporations that are located in, or that do 
     business in, the State,

     then the Federal share of the cost of carrying out the 
     activities under subsection (d) shall be equal to 50 percent.
       ``(ii) If a State applies for an allotment under this 
     section in partnership with--

       ``(I) any number of degree granting institutions of higher 
     education in the State whose combined full-time enrollment 
     represents a majority of all students attending institutions 
     of higher education in the State; and
       ``(II)(aa) philanthropic organizations that are located in, 
     or that provide funding in, the State; or
       ``(bb) private corporations that are located in, or that do 
     business in, the State,

     then the Federal share of the cost of carrying out the 
     activities under subsection (d) shall be equal to 57 percent.
       ``(B) Non-federal share.--
       ``(i) In general.--The non-Federal share under this section 
     may be provided in cash or in kind, fully evaluated and in 
     accordance with this subparagraph.
       ``(ii) In kind contribution.--For the purpose of 
     calculating the non-Federal share under this section, an in 
     kind contribution is a non-cash award that has monetary 
     value, such as provision of room and board and transportation 
     passes, and that helps a student meet the cost of attendance.
       ``(iii) Effect on need analysis.--For the purpose of 
     calculating a student's need in accordance with part F of 
     this title, an in-kind contribution described in clause (ii) 
     shall be considered a resource and not a reduction in the 
     cost of attendance.
       ``(c) Application for Allotment.--
       ``(1) In general.--
       ``(A) Submission.--A State that desires to receive an 
     allotment under this section on behalf of a partnership 
     described in paragraph (3) shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(B) Content.--An application submitted under subparagraph 
     (A) shall include the following:
       ``(i) A description of the State's plan for using the 
     allotted funds.
       ``(ii) Assurances that the State will provide the non-
     Federal share from State, institutional, philanthropic, or 
     private funds, of not less than the required share of the 
     cost of carrying out the activities under subsection (d), as 
     determined under subsection (b), in accordance with the 
     following:

       ``(I) The State shall specify the methods by which non-
     Federal share funds will be paid and include provisions 
     designed to ensure that funds provided under this section 
     will be used to supplement, and not supplant, Federal and 
     non-Federal funds available for carrying out the activities 
     under this title.
       ``(II) A State that uses non-Federal funds to create or 
     expand existing partnerships with nonprofit organizations or 
     community-based organizations in which such organizations 
     match State funds for student scholarships, may apply such 
     matching funds from such organizations toward fulfilling the 
     State's non-Federal share obligation under this clause.

       ``(iii) Assurances that early information and intervention, 
     mentoring, or outreach programs exist within the State or 
     that there is a plan to make such programs widely available.
       ``(iv) A description of the organizational structure that 
     the State has in place to administer the activities under 
     subsection (d), including a description of the system the 
     State will use to track the participation of students who 
     receive grants under this section to degree completion.
       ``(v) Assurances that the State has a method in place, such 
     as acceptance of the automatic zero expected family 
     contribution determination described in section 479, to 
     identify eligible low-income students and award State grant 
     aid to such students.
       ``(vi) Assurances that the State will provide notification 
     to eligible low-income students that grants under this 
     section are--

       ``(I) Leveraging Educational Assistance Partnership Grants; 
     and
       ``(II) funded by the Federal Government, the State, and 
     other contributing partners.

       ``(2) State agency.--The State agency that submits an 
     application for a State under section 415C(a) shall be the 
     same State agency that submits an application under paragraph 
     (1) for such State.
       ``(3) Partnership.--In applying for an allotment under this 
     section, the State agency shall apply for the allotment in 
     partnership with--
       ``(A) not less than 1 public and 1 private degree granting 
     institution of higher education that are located in the 
     State, if applicable;
       ``(B) new or existing early information and intervention, 
     mentoring, or outreach programs located in the State; and
       ``(C) not less than 1--
       ``(i) philanthropic organization located in, or that 
     provides funding in, the State; or
       ``(ii) private corporation located in, or that does 
     business in, the State.
       ``(4) Roles of partners.--
       ``(A) State agency.--A State agency that is in a 
     partnership receiving an allotment under this section--
       ``(i) shall--

       ``(I) serve as the primary administrative unit for the 
     partnership;
       ``(II) provide or coordinate non-Federal share funds, and 
     coordinate activities among partners;
       ``(III) encourage each institution of higher education in 
     the State to participate in the partnership;
       ``(IV) make determinations and early notifications of 
     assistance as described under subsection (d)(2); and
       ``(V) annually report to the Secretary on the partnership's 
     progress in meeting the purpose of this section; and

       ``(ii) may provide early information and intervention, 
     mentoring, or outreach programs.
       ``(B) Degree granting institutions of higher education.--A 
     degree granting institution of higher education that is in a 
     partnership receiving an allotment under this section--
       ``(i) shall--

       ``(I) recruit and admit participating qualified students 
     and provide such additional institutional grant aid to 
     participating students as agreed to with the State agency;
       ``(II) provide support services to students who receive 
     grants for access and persistence under this section and are 
     enrolled at such institution; and

[[Page S9669]]

       ``(III) assist the State in the identification of eligible 
     students and the dissemination of early notifications of 
     assistance as agreed to with the State agency; and

       ``(ii) may provide funding for early information and 
     intervention, mentoring, or outreach programs or provide such 
     services directly.
       ``(C) Programs.--An early information and intervention, 
     mentoring, or outreach program that is in a partnership 
     receiving an allotment under this section shall provide 
     direct services, support, and information to participating 
     students.
       ``(D) Philanthropic organization or private corporation.--A 
     philanthropic organization or private corporation that is in 
     a partnership receiving an allotment under this section shall 
     provide funds for grants for access and persistence for 
     participating students, or provide funds or support for early 
     information and intervention, mentoring, or outreach 
     programs.
       ``(d) Authorized Activities.--
       ``(1) In general.--
       ``(A) Establishment of partnership.--Each State receiving 
     an allotment under this section shall use the funds to 
     establish a partnership to award grants for access and 
     persistence to eligible low-income students in order to 
     increase the amount of financial assistance such students 
     receive under this subpart for undergraduate education 
     expenses.
       ``(B) Amount of grants.--
       ``(i) Partnerships with institutions serving less than a 
     majority of students in the state.--

       ``(I) In general.--In the case where a State receiving an 
     allotment under this section is in a partnership described in 
     subsection (b)(2)(B)(i), the amount of a grant for access and 
     persistence awarded by such State shall be not less than the 
     amount that is equal to the average undergraduate tuition and 
     mandatory fees at 4-year public institutions of higher 
     education in the State where the student resides (less any 
     other Federal or State sponsored grant amount, work study 
     amount, and scholarship amount received by the student), and 
     such amount shall be used toward the cost of attendance at an 
     institution of higher education, located in the State, that 
     is a partner in the partnership.
       ``(II) Cost of attendance.--A State that has a program, 
     apart from the partnership under this section, of providing 
     eligible low-income students with grants that are equal to 
     the average undergraduate tuition and mandatory fees at 4-
     year public institutions of higher education in the State, 
     may increase the amount of access and persistence grants 
     awarded by such State up to an amount that is equal to the 
     average cost of attendance at 4-year public institutions of 
     higher education in the State (less any other Federal or 
     State sponsored grant amount, work study amount, and 
     scholarship amount received by the student).

       ``(ii) Partnership with institutions serving the majority 
     of students in the state.--In the case where a State 
     receiving an allotment under this section is in a partnership 
     described in subsection (b)(2)(B)(ii), the amount of an 
     access and persistence grant awarded by such State shall be 
     not more than an amount that is equal to the average at 4-
     year public institutions of higher education in the State 
     where the student resides (less any other Federal or State 
     sponsored grant amount, college work study amount, and 
     scholarship amount received by the student), and such amount 
     shall be used by the student to attend an institution of 
     higher education, located in the State, that is a partner in 
     the partnership.
       ``(2) Early notification.--
       ``(A) In general.--Each State receiving an allotment under 
     this section shall annually notify low-income students, such 
     as students who are eligible to receive a free lunch under 
     the school lunch program established under the Richard B. 
     Russell National School Lunch Act, in grade 7 through grade 
     12 in the State, of the students' potential eligibility for 
     student financial assistance, including an access and 
     persistence grant, to attend an institution of higher 
     education.
       ``(B) Content of notice.--The notification under 
     subparagraph (A)--
       ``(i) shall include--

       ``(I) information about early information and intervention, 
     mentoring, or outreach programs available to the student;
       ``(II) information that a student's candidacy for an access 
     and persistence grant is enhanced through participation in an 
     early information and intervention, mentoring, or outreach 
     program;
       ``(III) an explanation that student and family eligibility 
     and participation in other Federal means-tested programs may 
     indicate eligibility for an access and persistence grant and 
     other student aid programs;
       ``(IV) a nonbinding estimation of the total amount of 
     financial aid a low-income student with a similar income 
     level may expect to receive, including an estimation of the 
     amount of an access and persistence grant and an estimation 
     of the amount of grants, loans, and all other available types 
     of aid from the major Federal and State financial aid 
     programs;
       ``(V) an explanation that in order to be eligible for an 
     access and persistence grant, at a minimum, a student shall--

       ``(aa) meet the requirement under paragraph (3);
       ``(bb) graduate from secondary school; and
       ``(cc) enroll at an institution of higher education that is 
     a partner in the partnership;

       ``(VI) information on any additional requirements (such as 
     a student pledge detailing student responsibilities) that the 
     State may impose for receipt of an access and persistence 
     grant under this section; and
       ``(VII) instructions on how to apply for an access and 
     persistence grant and an explanation that a student is 
     required to file a Free Application for Federal Student Aid 
     authorized under section 483(a) to be eligible for such grant 
     and assistance from other Federal and State financial aid 
     programs; and

       ``(ii) may include a disclaimer that access and persistence 
     grant awards are contingent upon--

       ``(I) a determination of the student's financial 
     eligibility at the time of the student's enrollment at an 
     institution of higher education that is a partner in the 
     partnership;
       ``(II) annual Federal and State appropriations; and
       ``(III) other aid received by the student at the time of 
     the student's enrollment at an institution of higher 
     education that is a partner in the partnership.

       ``(3) Eligibility.--In determining which students are 
     eligible to receive access and persistence grants, the State 
     shall ensure that each such student meets not less than 1 of 
     the following:
       ``(A) Meets not less than 2 of the following criteria, with 
     priority given to students meeting all of the following 
     criteria:
       ``(i) Has an expected family contribution equal to zero (as 
     described in section 479) or a comparable alternative based 
     upon the State's approved criteria in section 415C(b)(4).
       ``(ii) Has qualified for a free lunch, or at the State's 
     discretion a reduced price lunch, under the school lunch 
     program established under the Richard B. Russell National 
     School Lunch Act.
       ``(iii) Qualifies for the State's maximum undergraduate 
     award, as authorized under section 415C(b).
       ``(iv) Is participating in, or has participated in, a 
     Federal, State, institutional, or community early information 
     and intervention, mentoring, or outreach program, as 
     recognized by the State agency administering activities under 
     this section.
       ``(B) Is receiving, or has received, an access and 
     persistence grant under this section, in accordance with 
     paragraph (5).
       ``(4) Grant award.--Once a student, including those 
     students who have received early notification under paragraph 
     (2) from the State, applies for admission to an institution 
     that is a partner in the partnership, files a Free 
     Application for Federal Student Aid and any related existing 
     State form, and is determined eligible by the State under 
     paragraph (3), the State shall--
       ``(A) issue the student a preliminary access and 
     persistence grant award certificate with tentative award 
     amounts; and
       ``(B) inform the student that payment of the access and 
     persistence grant award amounts is subject to certification 
     of enrollment and award eligibility by the institution of 
     higher education.
       ``(5) Duration of award.--An eligible student that receives 
     an access and persistence grant under this section shall 
     receive such grant award for each year of such student's 
     undergraduate education in which the student remains eligible 
     for assistance under this title, including pursuant to 
     section 484(c), and remains financially eligible as 
     determined by the State, except that the State may impose 
     reasonable time limits to baccalaureate degree completion.
       ``(e) Use of Funds for Administrative Costs Prohibited.--A 
     State that receives an allotment under this section shall not 
     use any of the allotted funds to pay administrative costs 
     associated with any of the authorized activities described in 
     subsection (d).
       ``(f) Statutory and Regulatory Relief for Institutions of 
     Higher Education.--The Secretary may grant, upon the request 
     of an institution of higher education that is in a 
     partnership described in subsection (b)(2)(B)(ii) and that 
     receives an allotment under this section, a waiver for such 
     institution from statutory or regulatory requirements that 
     inhibit the ability of the institution to successfully and 
     efficiently participate in the activities of the partnership.
       ``(g) Applicability Rule.--The provisions of this subpart 
     which are not inconsistent with this section shall apply to 
     the program authorized by this section.
       ``(h) Maintenance of Effort Requirement.--Each State 
     receiving an allotment under this section for a fiscal year 
     shall provide the Secretary with an assurance that the 
     aggregate amount expended per student or the aggregate 
     expenditures by the State, from funds derived from non-
     Federal sources, for the authorized activities described in 
     subsection (d) for the preceding fiscal year were not less 
     than the amount expended per student or the aggregate 
     expenditure by the State for the activities for the second 
     preceding fiscal year.
       ``(i) Special Rule.--Notwithstanding subsection (h), for 
     purposes of determining a State's share of the cost of the 
     authorized activities described in subsection (d), the State 
     shall consider only those expenditures from non-Federal 
     sources that exceed the State's total expenditures for need-
     based grants, scholarships, and work-study assistance for 
     fiscal year 1999 (including any such assistance provided 
     under this subpart).
       ``(j) Reports.--Not later than 3 years after the date of 
     enactment of the Higher Education Amendments of 2005 and 
     annually thereafter, the Secretary shall submit a report 
     describing the activities and the impact

[[Page S9670]]

     of the partnerships under this section to the authorizing 
     committees.''.

     SEC. 407. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE 
                   ENGAGED IN MIGRANT AND SEASONAL FARMWORK.

       Section 418A (20 U.S.C. 1070d-2) is amended--
       (1) in subsection (a), by adding ``(including providing 
     outreach and technical assistance)'' after ``maintain and 
     expand'';
       (2) in subsection (b)--
       (A) in paragraph (1)(B)(i), by striking ``parents'' and 
     inserting ``immediate family'';
       (B) in paragraph (3)(B), by inserting ``(including 
     preparation for college entrance examinations)'' after 
     ``college program'';
       (C) in paragraph (5), by striking ``weekly'';
       (D) in paragraph (7), by striking ``and'' after the 
     semicolon;
       (E) in paragraph (8), by striking the period at the end and 
     inserting ``; and''; and
       (F) by adding at the end the following:
       ``(9) other activities to improve persistence and retention 
     in postsecondary education.'';
       (3) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (B)--

       (I) in the matter preceding clause (i), by inserting ``to 
     improve placement, persistence, and retention in 
     postsecondary education'' after ``services''; and
       (II) in clause (i), by striking ``and career'' and 
     inserting ``career, and economic education or personal 
     finance'';

       (ii) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (iii) by redesignating subparagraph (F) as subparagraph 
     (G); and
       (iv) by inserting after subparagraph (E) the following:
       ``(F) internships; and''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``, and coordinating such services, assistance, 
     and aid with other non-program services, assistance, and aid, 
     including services, assistance, and aid provided by 
     community-based organizations, which may include mentoring 
     and guidance; and''; and
       (iii) by adding at the end the following:
       ``(C) for students attending 2-year institutions of higher 
     education, encouraging the students to transfer to 4-year 
     institutions of higher education, where appropriate, and 
     monitoring the rate of transfer of such students.'';
       (4) in subsection (e), by striking ``section 402A(c)(1)'' 
     and inserting ``section 402A(c)(2)'';
       (5) in subsection (f)--
       (A) in paragraph (1), by striking ``$150,000'' and 
     inserting ``$180,000''; and
       (B) in paragraph (2), by striking ``$150,000'' and 
     inserting ``$180,000''; and
       (6) in subsection (h)--
       (A) in paragraph (1), by striking ``$15,000,000 for fiscal 
     year 1999'' and all that follows through the period and 
     inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.''; and
       (B) in paragraph (2), by striking ``$5,000,000 for fiscal 
     year 1999'' and all that follows through the period and 
     inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.''.

     SEC. 408. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

       Section 419K (20 U.S.C. 1070d-41) is amended by striking 
     ``$45,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 409. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

       (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
     1070e(b)(2)(B)) is amended--
       (1) by striking ``A grant'' and inserting the following:
       ``(i) In general.--Except as provided in clause (ii), a 
     grant''; and
       (2) by adding at the end the following:
       ``(ii) Increase trigger.--For any fiscal year for which the 
     amount appropriated under the authority of subsection (g) is 
     equal to or greater than $20,000,000, a grant under this 
     section shall be awarded in an amount that is not less than 
     $30,000.''.
       (b) Definition of Low-Income Student.--Paragraph (7) of 
     section 419N(b) (20 U.S.C. 1070e(b)) is amended to read as 
     follows:
       ``(7) Definition of low-income student.--For the purpose of 
     this section, the term `low-income student' means a student 
     who--
       ``(A) is eligible to receive a Federal Pell Grant for the 
     fiscal year for which the determination is made; or
       ``(B) would otherwise be eligible to receive a Federal Pell 
     Grant for the fiscal year for which the determination is 
     made, except that the student fails to meet the requirements 
     of--
       ``(i) section 401(c)(1) because the student is enrolled in 
     a graduate or first professional course of study; or
       ``(ii) section 484(a)(5) because the student is in the 
     United States for a temporary purpose.''.
       (c) Authorization of Appropriations.--Section 419N(g) (20 
     U.S.C. 1070e(g)) is amended by striking ``$45,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.''.

     SEC. 410. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

       Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.) 
     is repealed.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

     SEC. 421. EXTENSION OF AUTHORITIES.

       (a) Federal Insurance Limitations.--Section 424(a) (20 
     U.S.C. 1074(a)) is amended--
       (1) by striking ``2004'' and inserting ``2012''; and
       (2) by striking ``2008'' and inserting ``2016''.
       (b) Guaranteed Loans.--Section 428(a)(5) (20 U.S.C. 
     1078(a)(5)) is amended--
       (1) by striking ``2004'' and inserting ``2012''; and
       (2) by striking ``2008'' and inserting ``2016''.
       (3) Consolidation loans.--Section 428C(e) (20 U.S.C. 1078-
     3(e)) is amended by striking ``2004'' and inserting ``2012''.

     SEC. 422. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

       Section 428 (20 U.S.C. 1078) is amended--
       (1) in subsection (b)(1)--
       (A) in subparagraph (N)--
       (i) in clause (i), by striking ``or'' after the semicolon; 
     and
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) in the case of a student who is studying outside the 
     United States in a program of study abroad that is approved 
     for credit by the home institution at which such student is 
     enrolled, are, at the request of the student, disbursed 
     directly to the student by the means described in clause (i), 
     unless such student requests that the check be endorsed, or 
     the funds transfer be authorized, pursuant to an authorized 
     power-of-attorney; or
       ``(iii) in the case of a student who is studying outside 
     the United States in a program of study at an eligible 
     foreign institution, are, at the request of the foreign 
     institution, disbursed directly to the student by the means 
     described in clause (i);''; and
       (B) in subparagraph (Y)(i)(III), by inserting ``, except 
     that, if requested by an institution of higher education, the 
     lender shall confirm such status through use of the National 
     Student Loan Data System'' before the semicolon; and
       (2) in subsection (c)(2)(H)(i), by striking ``preclaims'' 
     and inserting ``default aversion''.

     SEC. 423. FEDERAL CONSOLIDATION LOANS.

       Section 428C(b)(1) (20 U.S.C. 1078-3(b)(1)) is amended--
       (1) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (2) by redesignating subparagraph (F) as subparagraph (G); 
     and
       (3) by inserting after subparagraph (E) the following:
       ``(F) that the lender will disclose, in a clear and 
     conspicuous manner, to borrowers who consolidate loans made 
     under part E of this title--
       ``(i) that once the borrower adds the borrower's Federal 
     Perkins Loan to a Federal Consolidation Loan, the borrower 
     will lose all interest-free periods that would have been 
     available, such as those periods when no interest accrues on 
     the Federal Perkins Loan while the borrower is enrolled in 
     school at least half-time, during the grace period, and 
     during periods when the borrower's student loan repayments 
     are deferred;
       ``(ii) that the borrower will no longer be eligible for 
     loan forgiveness of Federal Perkins Loans under any provision 
     of section 465; and
       ``(iii) the occupations described in section 465(a)(2), 
     individually and in detail, for which the borrower will lose 
     eligibility for Federal Perkins Loan forgiveness; and''.

     SEC. 424. DEFAULT REDUCTION PROGRAM.

       Section 428F (20 U.S.C. 1078-6) is amended by adding at the 
     end the following:
       ``(c) Financial and Economic Literacy.--Where appropriate 
     as determined by the institution of higher education in which 
     a borrower is enrolled, each program described in subsection 
     (b) shall include making available financial and economic 
     education materials for the borrower, including making the 
     materials available before, during, or after rehabilitation 
     of a loan.''.

     SEC. 425. REPORTS TO CREDIT BUREAUS AND INSTITUTIONS OF 
                   HIGHER EDUCATION.

       Section 430A(a) (20 U.S.C. 1080a(a)) is amended--
       (1) in the first sentence, by striking ``with credit bureau 
     organizations'' and inserting ``with each consumer reporting 
     agency that compiles and maintains files on consumers on a 
     nationwide basis (as defined in section 603(q) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681a(q))'';
       (2) by redesignating paragraphs (1), (2), and (3) as 
     paragraphs (2), (4), and (5), respectively;
       (3) by inserting before paragraph (2) (as redesignated by 
     paragraph (2)), the following:
       ``(1) the type of loan made, insured, or guaranteed under 
     this title;'';
       (4) by inserting after paragraph (2) (as redesignated by 
     paragraph (2)), the following:
       ``(3) information concerning the repayment status of the 
     loan, which information shall be included in the file of the 
     borrower, except that nothing in this paragraph shall be 
     construed to affect any otherwise applicable provision of the 
     Fair Credit Reporting Act (15 U.S.C. 1681 et seq.)'';
       (5) in paragraph (4) (as redesignated by paragraph (2)), by 
     striking ``and'' after the semicolon;
       (6) in paragraph (5) (as redesignated by paragraph (2)), by 
     striking the period and inserting ``; and''; and
       (7) by adding at the end the following:
       ``(6) any other information required to be reported by 
     Federal law.''.

[[Page S9671]]

     SEC. 426. COMMON FORMS AND FORMATS.

       Section 432(m)(1)(D)(i) (20 U.S.C. 1082(m)(1)(D)(i)) is 
     amended by adding at the end the following: ``Unless 
     otherwise notified by the Secretary, each institution of 
     higher education that participates in the program under this 
     part or part D may use a master promissory note for loans 
     under this part and part D.''.

     SEC. 427. STUDENT LOAN INFORMATION BY ELIGIBLE BORROWERS.

       Section 433 (20 U.S.C. 1083) is amended by adding at the 
     end the following:
       ``(f) Borrower Information and Privacy.--Each eligible 
     lender, guaranty agency, secondary market, consumer reporting 
     agency, or student loan servicer participating in a program 
     under this part shall not use, release, sell, transfer, or 
     give any student information, including the name, address, 
     social security number, or amount borrowed by a borrower or a 
     borrower's parent, for any purpose that is not related to the 
     processing of, the collecting of, the servicing of, or other 
     activities associated with the prevention of default on, 
     loans under this title.
       ``(g) Loan Benefit Disclosures.--
       ``(1) In general.--Each eligible lender, holder, or 
     servicer of a loan made, insured, or guaranteed under this 
     part shall provide the borrower with information on the loan 
     benefit repayment options the lender, holder, or servicer 
     offer, including information on reductions in interest 
     rates--
       ``(A) by repaying the loan by automatic payroll or checking 
     account deduction;
       ``(B) by completing a program of on-time repayment; and
       ``(C) under any other interest rate reduction program.
       ``(2) Information.--Such borrower information shall 
     include--
       ``(A) any limitations on such options;
       ``(B) explicit information on the reasons a borrower may 
     lose eligibility for such an option;
       ``(C) examples of the impact the interest rate reductions 
     will have on a borrower's time for repayment and amount of 
     repayment;
       ``(D) upon the request of the borrower, the effect the 
     reductions in interest rates will have with respect to the 
     borrower's payoff amount and time for repayment; and
       ``(E) information on borrower recertification 
     requirements.''.

     SEC. 428. CONSUMER EDUCATION INFORMATION.

       Part B (20 U.S.C. 1071 et seq.) is amended by inserting 
     after section 433 (20 U.S.C. 1083) the following:

     ``SEC. 433A. CONSUMER EDUCATION INFORMATION.

       ``Each guaranty agency participating in a program under 
     this part working with the institutions of higher education 
     served by such guaranty agency (or in the case of an 
     institution of higher education that provides loans 
     exclusively through part D, the institution working with a 
     guaranty agency or with the Secretary) shall develop and make 
     available a quality educational program and materials to 
     provide training for students in budgeting and financial 
     management, including debt management and other aspects of 
     financial literacy, such as the cost of using very high 
     interest loans to pay for postsecondary education, 
     particularly as budgeting and financial management relates to 
     student loan programs authorized by this title. Nothing in 
     this section shall be construed to prohibit a guaranty agency 
     from using an existing program or existing materials to meet 
     the requirement of this section. The activities described in 
     this section shall be considered default reduction activities 
     for the purposes of section 422.''.

     SEC. 429. DEFINITION OF ELIGIBLE LENDER.

       Section 435(d)(2) (20 U.S.C. 1085(d)(2)) is amended by 
     striking subparagraph (F) and inserting the following:
       ``(F) shall use the proceeds from special allowance 
     payments, interest payments from borrowers, proceeds from the 
     sale of a loan made, insured, or guaranteed under this part, 
     and all other proceeds related to such a loan that are 
     furnished to the eligible institution or any entity 
     affiliated (directly or indirectly) with the eligible 
     institution, for need based grant programs, except that such 
     payments and proceeds may be used for reasonable 
     reimbursement for direct administrative expenses;''.

     SEC. 430. REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, 
                   DECEASED, OR DISABLED BORROWERS; TREATMENT OF 
                   BORROWERS ATTENDING SCHOOLS THAT FAIL TO 
                   PROVIDE A REFUND, ATTENDING CLOSED SCHOOLS, OR 
                   FALSELY CERTIFIED AS ELIGIBLE TO BORROW.

       Section 437 (20 U.S.C. 1087) is amended--
       (1) in the section heading, by striking ``CLOSED SCHOOLS OR 
     FALSELY CERTIFIED AS ELIGIBLE TO BORROW'' and inserting 
     ``SCHOOLS THAT FAIL TO PROVIDE A REFUND, ATTENDING CLOSED 
     SCHOOLS, OR FALSELY CERTIFIED AS ELIGIBLE TO BORROW''; and
       (2) in the first sentence of subsection (c)(1), by 
     inserting ``or was falsely certified as a result of a crime 
     of identity theft'' after ``falsely certified by the eligible 
     institution''.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

     SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

       Section 441(b) (42 U.S.C. 2751(b)) is amended by striking 
     ``$1,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES.

       Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended 
     by striking ``$450'' and inserting ``$600''.

     SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

       Section 443(b)(2) (42 U.S.C. 2753(b)(2)) is amended--
       (1) by striking subparagraph (A);
       (2) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively; and
       (3) in subparagraph (A) (as redesignated by paragraph (2)), 
     by striking ``this subparagraph if'' and all that follows 
     through ``institution;'' and inserting ``this subparagraph 
     if--
       ``(i) the Secretary determines that enforcing this 
     subparagraph would cause hardship for students at the 
     institution; or
       ``(ii) the institution certifies to the Secretary that 15 
     percent or more of its total full-time enrollment 
     participates in community service activities described in 
     section 441(c) or tutoring and literacy activities described 
     in subsection (d) of this section;''.

     SEC. 444. JOB LOCATION AND DEVELOPMENT PROGRAMS.

       Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by 
     striking ``$50,000'' and inserting ``$75,000''.

     SEC. 445. WORK COLLEGES.

       Section 448(f) (42 U.S.C. 2756b(f)) is amended by striking 
     ``5,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.''.

          PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

     SEC. 451. FUNDS FOR ADMINISTRATIVE EXPENSES.

       Section 458 (20 U.S.C. 1087h) is amended--
       (1) in subsection (a)(1), in the matter following 
     subparagraph (B), by striking ``$617,000,000'' and all that 
     follows through the period and inserting ``$904,000,000 in 
     fiscal year 2006, $943,000,000 in fiscal year 2007, 
     $983,000,000 in fiscal year 2008, $1,023,000,000 in fiscal 
     year 2009, $1,064,000,000 in fiscal year 2010, and 
     $1,106,000,000 in fiscal year 2011.''; and
       (2) in subsection (c)(1), by striking subparagraphs (A) 
     through (E) and inserting the following:
       ``(A) for fiscal year 2006, shall not exceed $271,000,000;
       ``(B) for fiscal year 2007, shall not exceed $293,000,000;
       ``(C) for fiscal year 2008, shall not exceed $315,000,000;
       ``(D) for fiscal year 2009, shall not exceed $336,000,000;
       ``(E) for fiscal year 2010, shall not exceed $356,000,000; 
     and
       ``(F) for fiscal year 2011, shall not exceed 
     $378,000,000.''.

                     PART E--FEDERAL PERKINS LOANS

     SEC. 461. PROGRAM AUTHORITY.

       Section 461(b) (20 U.S.C. 1087aa(b)) is amended--
       (1) in paragraph (1), by striking ``$250,000,000 for fiscal 
     year 1999'' and all that follows through the period and 
     inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.''; and
       (2) in paragraph (2),--
       (A) by striking ``fiscal year 2003'' and inserting ``fiscal 
     year 2009''; and
       (B) by striking ``October 1, 2003'' and inserting ``October 
     1, 2009''.

     SEC. 462. TERMS OF LOANS.

       Section 464 (20 U.S.C. 1087dd) is amended--
       (1) in subsection (b)(1), by striking ``for an additional 
     loan under this part'' and inserting ``for additional aid 
     under this title''; and
       (2) in subsection (e), by striking ``written''.

     SEC. 463. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.

       Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B), by striking ``Head Start Act 
     which'' and inserting ``Head Start Act, or in a 
     prekindergarten or child care program that is licensed or 
     regulated by the State, that'';
       (B) in subparagraph (H), by striking ``or'' after the 
     semicolon;
       (C) in subparagraph (I), by striking the period and 
     inserting a semicolon; and
       (D) by inserting before the matter following subparagraph 
     (I) (as amended by subparagraph (C)) the following:
       ``(J) as a full-time faculty member at a tribally 
     controlled college or university, as that term is defined in 
     section 2 of the Tribally Controlled College or University 
     Assistance Act of 1978; or
       ``(K) as a librarian, if the librarian has a master's 
     degree in library science and is employed in--
       ``(i) an elementary school or secondary school library that 
     is eligible for assistance under title I of the Elementary 
     and Secondary Education Act of 1965; or
       ``(ii) a public library that serves a geographic area that 
     contains 1 or more schools eligible for assistance under 
     title I of the Elementary and Secondary Education Act of 
     1965.''; and
       (2) in paragraph (3)(A)(i), by striking ``or (I)'' and 
     inserting ``(I), (J), or (K)''.

                         PART F--NEED ANALYSIS

     SEC. 471. COST OF ATTENDANCE.

       Section 472 (20 U.S.C. 1087ll) is amended--
       (1) by striking paragraph (4) and inserting the following:

[[Page S9672]]

       ``(4) for less than half-time students (as determined by 
     the institution), tuition and fees and an allowance for 
     only--
       ``(A) books, supplies, and transportation (as determined by 
     the institution);
       ``(B) dependent care expenses (determined in accordance 
     with paragraph (8)); and
       ``(C) room and board costs (determined in accordance with 
     paragraph (3)), except that a student may receive an 
     allowance for such costs under this subparagraph for not more 
     than 3 semesters or the equivalent, of which not more than 2 
     semesters or the equivalent may be consecutive;'';
       (2) in paragraph (11), by striking ``and'' after the 
     semicolon;
       (3) in paragraph (12), by striking the period and inserting 
     ``; and''; and
       (4) by adding at the end the following:
       ``(13) at the option of the institution, for a student in a 
     program requiring professional licensure or certification, 
     the one time cost of obtaining the first professional 
     credentials (as determined by the institution).''.

     SEC. 472. DEFINITIONS.

       (a) Definitions.--Section 480 (20 U.S.C. 1087vv) is 
     amended--
       (1) in subsection (f)--
       (A) in paragraph (1), by inserting ``qualified education 
     benefits (except as provided in paragraph (3)),'' after ``tax 
     shelters,''; and
       (B) by adding at the end the following:
       ``(3) A qualified education benefit shall not be considered 
     an asset of a student for purposes of section 475.
       ``(4) In determining the value of assets in a determination 
     of need under this title (other than for subpart 4 of part 
     A), the value of a qualified education benefit shall be--
       ``(A) the refund value of any tuition credits or 
     certificates purchased under a qualified education benefit; 
     and
       ``(B) in the case of a program in which contributions are 
     made to an account that is established for the purpose of 
     meeting the qualified higher education expenses of the 
     designated beneficiary of the account, the current balance of 
     such account.
       ``(5) In this subsection:
       ``(A) Qualified education benefit.--The term `qualified 
     education benefit' means--
       ``(i) a qualified tuition program (as defined in section 
     529(b)(1)(A) of the Internal Revenue Code of 1986) or other 
     prepaid tuition plan offered by a State; and
       ``(ii) a Coverdell education savings account (as defined in 
     section 530(b)(1) of the Internal Revenue Code of 1986).
       ``(B) Qualified higher education expenses.--The term 
     `qualified higher education expenses' has the meaning given 
     the term in section 529(e) of the Internal Revenue Code of 
     1986.''; and
       (2) in subsection (j)--
       (A) in the subsection heading, by striking ``; Tuition 
     Prepayment Plans'';
       (B) by striking paragraph (2);
       (C) by redesignating paragraph (3) as paragraph (2); and
       (D) by inserting after paragraph (2) (as redesignated by 
     subparagraph (C)) the following paragraph:
       ``(3) Notwithstanding paragraph (1) and section 472, 
     assistance not received under this title may be excluded from 
     both estimated financial assistance and cost of attendance, 
     if that assistance is designated by the State providing that 
     assistance to offset a specific component of the cost of 
     attendance. If that assistance is excluded from estimated 
     financial assistance or cost of attendance, that assistance 
     shall be excluded from both calculations.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to determinations of need under part 
     F of title IV for academic years beginning on or after July 
     1, 2006.

       PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

     SEC. 481. DEFINITION OF ACADEMIC AND AWARD YEAR.

       The second sentence of section 481(a)(2) (20 U.S.C. 
     1088(a)(2)) is amended by inserting ``and that measures 
     program length in credit hours or clock hours'' after 
     ``baccalaureate degree''.

     SEC. 482. COMPLIANCE CALENDAR.

       Section 482 (20 U.S.C. 1089) is amended by adding at the 
     end the following:
       ``(a) Compliance Calendar.--Prior to the beginning of each 
     award year, the Secretary shall provide to institutions of 
     higher education a list of all the reports and disclosures 
     required under this Act. The list shall include--
       ``(1) the date each report or disclosure is required to be 
     completed and to be submitted, made available, or 
     disseminated;
       ``(2) the required recipients of each report or disclosure;
       ``(3) any required method for transmittal or dissemination 
     of each report or disclosure;
       ``(4) a description of the content of each report or 
     disclosure sufficient to allow the institution to identify 
     the appropriate individuals to be assigned the responsibility 
     for such report or disclosure;
       ``(5) references to the statutory authority, applicable 
     regulations, and current guidance issued by the Secretary 
     regarding each report or disclosure; and
       ``(6) any other information which is pertinent to the 
     content or distribution of the report or disclosure.''.

     SEC. 483. FORMS AND REGULATIONS.

       Section 483 (20 U.S.C. 1090) is amended--
       (1) by striking subsections (a) and (b), and inserting the 
     following:
       ``(a) Common Financial Aid Form Development and 
     Processing.--
       ``(1) In general.--The Secretary, in cooperation with 
     representatives of agencies and organizations involved in 
     student financial assistance, shall produce, distribute, and 
     process free of charge common financial reporting forms as 
     described in this subsection to be used to determine the need 
     and eligibility of a student for financial assistance under 
     parts A through E of this title (other than under subpart 4 
     of part A). The forms shall be made available to applicants 
     in both paper and electronic formats and shall be referred to 
     (except as otherwise provided in this subsection) as the 
     `Free Application for Federal Student Aid', or `FAFSA'.
       ``(2) Paper format.--
       ``(A) In general.--Subject to subparagraph (C), the 
     Secretary shall produce, distribute, and process common forms 
     in paper format to meet the requirements of paragraph (1). 
     The Secretary shall develop a common paper form for 
     applicants who do not meet the requirements of or do not wish 
     to use the process described in subparagraph (B).
       ``(B) EZ fafsa.--
       ``(i) In general.--The Secretary shall develop and use a 
     simplified paper application form, to be known as the `EZ 
     FAFSA', to be used for applicants meeting the requirements 
     under section 479(c).
       ``(ii) Reduced data requirements.--The EZ FAFSA shall 
     permit an applicant to submit for purposes of determining 
     financial need and eligibility, only the data elements 
     required to make a determination of student eligibility and 
     whether the applicant meets the requirements of section 
     479(c).
       ``(iii) State data.--The Secretary shall include on the EZ 
     FAFSA such data items as may be necessary to award State 
     financial assistance, as provided under paragraph (5), except 
     the Secretary shall not include a State's data if that State 
     does not permit its applicants for State assistance to use 
     the EZ FAFSA.
       ``(iv) Free availability and processing.--The provisions of 
     paragraph (6) shall apply to the EZ FAFSA, and the data 
     collected by means of the EZ FAFSA shall be available to 
     institutions of higher education, guaranty agencies, and 
     States in accordance with paragraph (9).
       ``(v) Testing.--The Secretary shall conduct appropriate 
     field testing on the EZ FAFSA.
       ``(C) Phasing out the full paper form for students who do 
     not meet the requirements of the ez fafsa.--
       ``(i) In general.--The Secretary shall make all efforts to 
     encourage all applicants to utilize the electronic forms 
     described in paragraph (3).
       ``(ii) Phaseout of full paper fafsa.--Not later than 5 
     years after the date of enactment of the Higher Education 
     Amendments of 2005, to the extent practicable, the Secretary 
     shall phase out the printing of the long paper form created 
     under subparagraph (A) and used by applicants who do not meet 
     the requirements of the EZ FAFSA described in subparagraph 
     (B).
       ``(iii) Availability of full paper fafsa.--

       ``(I) In general.--Both prior to and after the phaseout 
     described in clause (ii), the Secretary shall maintain on the 
     Internet printable versions of the paper forms described in 
     subparagraphs (A) and (B).
       ``(II) Accessibility.--The printable versions described in 
     subclause (I) shall be made easily accessible and 
     downloadable to students on the same Web site used to provide 
     students with the common electronic forms described in 
     paragraph (3).
       ``(III) Submission of forms.--The Secretary shall conduct a 
     study to determine the feasibility of using downloaded forms 
     to ensure sufficient quality to meet the processing 
     requirements of this section. Following the completion of the 
     study, the Secretary shall enable, to the extent practicable, 
     students to submit a form described in this clause that is 
     downloaded from the Internet and printed, in order to meet 
     the filing requirements of this section and to receive 
     financial assistance under this title.

       ``(iv) Use of savings.--

       ``(I) In general.--The Secretary shall utilize any realized 
     savings accrued by phasing out the full paper FAFSA and 
     moving more applicants to the common electronic forms, to 
     improve access to the electronic forms for applicants meeting 
     the requirements of section 479(c).
       ``(II) Report.--The Secretary shall report annually to the 
     authorizing committees on--

       ``(aa) the steps taken to improve access to the common 
     electronic forms for applicants meeting the requirements of 
     section 479(c); and
       ``(bb) the phaseout of the long common paper form described 
     in subparagraph (A).
       ``(3) Electronic format.--
       ``(A) In general.--The Secretary shall produce, distribute, 
     and process common forms in electronic format and make such 
     forms available through a broadly accessible website to meet 
     the requirements of paragraph (1). The Secretary shall 
     develop common electronic forms for applicants who do not 
     meet the requirements of subparagraph (B). The Secretary 
     shall include on the common electronic forms space for 
     information that needs to be submitted from the applicant to 
     be eligible for State financial assistance, as provided under 
     paragraph (5), except the Secretary shall not require 
     applicants to complete data required by any State other than 
     the applicant's State of residence. The Secretary shall use 
     all available technology to ensure that a student using a 
     common electronic form answers only the minimum number of 
     questions necessary.
       ``(B) Simplified electronic applications.--

[[Page S9673]]

       ``(i) In general.--The Secretary shall develop and use a 
     simplified electronic application form to be used by 
     applicants meeting the requirements of section 479(c) and an 
     additional, separate simplified electronic application form 
     to be used by applicants meeting the requirements under 
     section 479(b).
       ``(ii) Reduced data requirements.--The simplified 
     electronic application forms shall permit an applicant to 
     submit for purposes of determining financial need and 
     eligibility, only the data elements required to make a 
     determination of student eligibility and whether the 
     applicant meets the requirements under subsection (b) or (c) 
     of section 479.
       ``(iii) State data.--The Secretary shall include on the 
     simplified electronic application forms such data items as 
     may be necessary to award State financial assistance, as 
     provided under paragraph (5), except the Secretary shall not 
     require applicants to complete data required by any State 
     other than the applicant's State of residence and shall not 
     include a State's data if such State does not permit its 
     applicants for State assistance to use the simplified 
     electronic application form described in this subparagraph.
       ``(iv) Free availability and processing.--The provisions of 
     paragraph (6) shall apply to the simplified electronic 
     application forms, and the data collected by means of the 
     simplified electronic application forms shall be available to 
     institutions of higher education, guaranty agencies, and 
     States in accordance with paragraph (9).
       ``(v) Testing.--The Secretary shall conduct appropriate 
     field testing on the forms developed under this subparagraph.
       ``(C) Use of forms.--Nothing in this subsection shall be 
     construed to prohibit the use of the forms developed by the 
     Secretary pursuant to this paragraph by an eligible 
     institution, eligible lender, a guaranty agency, a State 
     grant agency, a private computer software provider, a 
     consortium of such entities, or such other entity as the 
     Secretary may designate. Data collected by the forms shall be 
     used only for the application, award, and administration of 
     aid awarded under this title, State aid, or aid awarded by 
     eligible institutions or such entities as the Secretary may 
     designate. No data collected by such electronic version of 
     the forms shall be used for making final aid awards under 
     this title until such data have been processed by the 
     Secretary or a contractor or designee of the Secretary, 
     except as may be permitted under this title.
       ``(D) Privacy.--The Secretary shall ensure that data 
     collection under this paragraph complies with section 552a of 
     title 5, United States Code, and that any entity using the 
     electronic version of the forms developed by the Secretary 
     pursuant to this paragraph shall maintain reasonable and 
     appropriate administrative, technical, and physical 
     safeguards to ensure the integrity and confidentiality of the 
     information, and to protect against security threats, or 
     unauthorized uses or disclosures of the information provided 
     on the electronic version of the forms.
       ``(E) Signature.--Notwithstanding any other provision of 
     this Act, the Secretary may permit an electronic form under 
     this paragraph to be submitted without a signature, if a 
     signature is subsequently submitted by the applicant or if 
     the applicant uses a personal identification number provided 
     by the Secretary under subparagraph (F).
       ``(F) Personal identification numbers authorized.--The 
     Secretary is authorized to assign to applicants personal 
     identification numbers--
       ``(i) to enable the applicants to use such numbers as a 
     signature for purposes of completing a form under this 
     paragraph; and
       ``(ii) for any purpose determined by the Secretary to 
     enable the Secretary to carry out this title.
       ``(4) Streamlined reapplication process.--
       ``(A) In general.--The Secretary shall develop streamlined 
     reapplication forms and processes, including both paper and 
     electronic reapplication processes, consistent with the 
     requirements of this subsection, for an applicant who applies 
     for financial assistance under this title in the next 
     succeeding academic year subsequent to an academic year in 
     which such applicant applied for financial assistance under 
     this title.
       ``(B) Mechanisms for reapplication.--The Secretary shall 
     develop appropriate mechanisms to support reapplication.
       ``(C) Identification of updated data.--The Secretary shall 
     determine, in cooperation with States, institutions of higher 
     education, and agencies and organizations involved in student 
     financial assistance, the data elements that can be updated 
     from the previous academic year's application.
       ``(D) Reduced data authorized.--Nothing in this title shall 
     be construed as limiting the authority of the Secretary to 
     reduce the number of data elements required of reapplicants.
       ``(E) Zero family contribution.--Applicants determined to 
     have a zero family contribution pursuant to section 479(c) 
     shall not be required to provide any financial data in a 
     reapplication form, except that which is necessary to 
     determine eligibility under such section.
       ``(5) State requirements.--
       ``(A) In general.--Except as provided in paragraphs 
     (2)(B)(iii), (3)(A), and (3)(B)(iii), the Secretary shall 
     include on the forms developed under this subsection, such 
     State-specific data items as the Secretary determines are 
     necessary to meet State requirements for need-based State 
     aid. Such items shall be selected in consultation with State 
     agencies in order to assist in the awarding of State 
     financial assistance in accordance with the terms of this 
     subsection, except as provided in paragraphs (2)(B)(iii), 
     (3)(A), and (3)(B)(iii). The number of such data items shall 
     not be less than the number included on the form for the 
     2005-2006 award year unless a State notifies the Secretary 
     that the State no longer requires those data items for the 
     distribution of State need-based aid.
       ``(B) Annual review.--The Secretary shall conduct an annual 
     review process to determine which data items the States 
     require to award need-based State aid.
       ``(C) Encourage use of forms.--The Secretary shall 
     encourage States to take such steps as are necessary to 
     encourage the use of simplified application forms, including 
     those described in paragraphs (2)(B) and (3)(B), for 
     applicants who meet the requirements of subsection (b) or (c) 
     of section 479.
       ``(D) Federal register notice.--The Secretary shall 
     publish, on an annual basis, a notice in the Federal Register 
     requiring States to inform the Secretary--
       ``(i) if the State plans to use the FAFSA to collect data 
     to determine eligibility for State need-based financial aid;
       ``(ii) of the State-specific data that the State requires 
     for delivery of State need-based financial aid; and
       ``(iii) if the State agency is unable to permit applicants 
     to utilize the simplified application forms described in 
     paragraph (2)(B) or (3)(B).
       ``(E) State notification to the secretary.--
       ``(i) In general.--Each State agency shall notify the 
     Secretary--

       ``(I) whether the State permits an applicant to file a form 
     described in paragraph (2)(B) or (3)(B) for purposes of 
     determining eligibility for State need-based financial aid; 
     and
       ``(II) of the State-specific data that the State requires 
     for delivery of State need-based financial aid.

       ``(ii) Acceptance of forms.--If a State does not permit an 
     applicant to file a form described in paragraph (2)(B) or 
     (3)(B) for purposes of determining eligibility for State 
     need-based financial aid, then the State shall notify the 
     Secretary if it is not permitted to do so because of State 
     law or agency policy. The notification shall include an 
     acknowledgment that State-specific questions will not be 
     included on a form described in paragraph (2)(B) or (3)(B).
       ``(iii) Lack of notification by the state.--If a State does 
     not notify the Secretary pursuant to clause (i), the 
     Secretary shall--

       ``(I) permit residents of that State to complete simplified 
     application forms under paragraphs (2)(B) and (3)(B); and
       ``(II) not require any resident of such State to complete 
     any data previously required by that State under this 
     section.

       ``(F) Restriction.--The Secretary shall not require 
     applicants to complete any financial or non-financial data 
     that are not required by the applicant's State, except as may 
     be required for applicants who use the paper forms described 
     in subparagraphs (A) and (B) of paragraph (2).
       ``(6) Charges to students and parents for use of forms 
     prohibited.--The common financial reporting forms prescribed 
     by the Secretary under this subsection shall be produced, 
     distributed, and processed by the Secretary, and no parent or 
     student shall be charged a fee by the Secretary, a 
     contractor, a third-party servicer or private software 
     provider, or any other public or private entity for the 
     collection, processing, or delivery of financial aid through 
     the use of such forms. The need and eligibility of a student 
     for financial assistance under parts A through E (other than 
     under subpart 4 of part A) may be determined only by using a 
     form developed by the Secretary pursuant to this subsection. 
     No student may receive financial assistance under parts A 
     through E (other than under subpart 4 of part A), except by 
     use of a form developed by the Secretary pursuant to this 
     subsection. No data collected on a paper or electronic form, 
     worksheet, or other document for which a fee is charged shall 
     be used to complete the form prescribed under this 
     subsection. No person, commercial entity, or other entity 
     shall request, obtain, or utilize an applicant's personal 
     identification number assigned under paragraph (3)(F) for 
     purposes of submitting an application on an applicant's 
     behalf.
       ``(7) Application processing cycle.--The Secretary shall--
       ``(A) enable students to submit forms created under this 
     subsection in order to meet the filing requirements of this 
     section and in order to receive financial assistance from 
     programs under this title; and
       ``(B) enable students to submit forms created under this 
     subsection and initiate the processing of such forms under 
     this subsection, as early as practicable prior to January 1 
     of the student's planned year of enrollment.
       ``(8) Early estimates.--The Secretary shall permit an 
     applicant to complete a form described in this subsection in 
     the years prior to enrollment in order to obtain from the 
     Secretary a nonbinding estimate of the applicant's expected 
     family contribution, as defined in section 473. Such 
     applicant shall be permitted to update information submitted 
     on a form described in this subsection

[[Page S9674]]

     using the process required under paragraph (4).
       ``(9) Distribution of data.--Institutions of higher 
     education, guaranty agencies, and States shall receive, 
     without charge, the data collected by the Secretary using the 
     form developed pursuant to this subsection for the purposes 
     of processing loan applications and determining need and 
     eligibility for institutional and State financial aid awards. 
     Entities designated by institutions of higher education, 
     guaranty agencies, or States to receive such data shall be 
     subject to all the requirements of this section, unless such 
     requirements are waived by the Secretary.
       ``(10) Third party servicers and private software 
     providers.--To the extent practicable and in a timely manner, 
     the Secretary shall provide, to private organizations and 
     consortia that develop software used by institutions of 
     higher education for the administration of funds under this 
     title, all the necessary specifications that the 
     organizations and consortia must meet for the software the 
     organizations and consortia develop, produce, and distribute 
     (including any diskette, modem, or network communications) 
     which are so used. The specifications shall contain record 
     layouts for required data. The Secretary shall develop in 
     advance of each processing cycle an annual schedule for 
     providing such specifications. The Secretary, to the extent 
     practicable, shall use means of providing such 
     specifications, including conferences and other meetings, 
     outreach, and technical support mechanisms (such as training 
     and printed reference materials). The Secretary shall, from 
     time to time, solicit from such organizations and consortia 
     means of improving the support provided by the Secretary.
       ``(11) Parent's social security number and birth date.--The 
     Secretary is authorized to include on the form developed 
     under this subsection space for the social security number 
     and birth date of parents of dependent students seeking 
     financial assistance under this title.'';
       (2) by redesignating subsections (c) through (e) as 
     subsections (b) through (d), respectively; and
       (3) in subsection (c) (as redesignated by paragraph (2)), 
     by striking ``that is authorized'' and all that follows 
     through the period at the end and inserting ``or other 
     appropriate provider of technical assistance and information 
     on postsecondary educational services that is authorized 
     under section 663(a) of the Individuals with Disabilities 
     Education Act. Not later than 2 years after the date of 
     enactment of the Higher Education Amendments of 2005, the 
     Secretary shall test and implement, to the extent 
     practicable, a toll-free telephone based system to permit 
     applicants who meet the requirements of 479(c) to submit an 
     application over such system.''.

     SEC. 484. STUDENT ELIGIBILITY.

       Section 484 (20 U.S.C. 1091) is amended--
       (1) in subsection (d), by adding at the end the following:
       ``(4) The student shall be determined by the institution of 
     higher education as having the ability to benefit from the 
     education or training offered by the institution of higher 
     education, upon satisfactory completion of 6 credit hours or 
     the equivalent coursework that are applicable toward a degree 
     or certificate offered by the institution of higher 
     education.'';
       (2) by striking subsection (l) and inserting the following:
       ``(l) Courses Offered Through Distance Education.--
       ``(1) Relation to correspondence courses.--
       ``(A) In general.--A student enrolled in a course of 
     instruction at an institution of higher education that is 
     offered predominately through distance education and leads to 
     a recognized certificate, or associate, baccalaureate, or 
     graduate degree, conferred by such institution, shall not be 
     considered to be enrolled in correspondence courses.
       ``(B) Exception.--An institution of higher education 
     referred to in subparagraph (A) shall not include an 
     institution or school described in section 3(3)(C) of the 
     Carl D. Perkins Vocational and Technical Education Act of 
     1998.
       ``(2) Restriction or reductions of financial aid.--A 
     student's eligibility to receive grants, loans, or work 
     assistance under this title shall be reduced if a financial 
     aid officer determines under the discretionary authority 
     provided in section 479A that telecommunications instruction 
     results in a substantially reduced cost of attendance to such 
     student.
       ``(3) Special rule.--For award years prior to the date of 
     enactment of this subsection, the Secretary shall not take 
     any compliance, disallowance, penalty, or other action 
     against a student or an eligible institution when such action 
     arises out of such institution's prior award of student 
     assistance under this title if the institution demonstrates 
     to the satisfaction of the Secretary that its course of 
     instruction would have been in conformance with the 
     requirements of this subsection.
       ``(4) Definition.--In this subsection, the term `distance 
     education' has the meaning given the term in section 102.''; 
     and
       (3) in subsection (r)--
       (A) in the matter preceding the table, by inserting ``of a 
     controlled substance, while such student is enrolled in an 
     institution of higher education and receiving financial 
     assistance under this title,'' after ``the possession'';
       (B) in the column heading of the first table, by inserting 
     ``while the student is enrolled in an institution of higher 
     education and receiving financial assistance under this 
     title'' after ``possession of a controlled substance''; and
       (C) by redesignating paragraph (3) as paragraph (4); and
       (D) by inserting after paragraph (2) the following:
       ``(2) Interaction with fafsa.--The Secretary shall not 
     require a student to provide information regarding the 
     student's possession of a controlled substance on the Free 
     Application for Federal Student Aid described in section 
     483(a).''.

     SEC. 485. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.

       Section 484A (20 U.S.C. 1091a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(3) in collecting any obligation arising from a loan made 
     under part E of this title, an institution of higher 
     education that has an agreement with the Secretary pursuant 
     to section 463(a) shall not be subject to a defense raised by 
     any borrower based on a claim of infancy.''; and
       (2) by adding at the end the following:
       ``(d) Special Rule.--This section shall not apply in the 
     case of a student who is deceased or to a deceased student's 
     estate or the estate of such student's family. If a student 
     is deceased, then the student's estate or the estate of the 
     student's family shall not be required to repay any financial 
     assistance under this title , including interest paid on the 
     student's behalf, collection costs, or other charges 
     specified in this title.''.

     SEC. 486. INSTITUTIONAL REFUNDS.

       Section 484B (20 U.S.C. 1091B) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding clause (i) of paragraph (2)(A), 
     by striking ``a leave of'' and inserting ``1 or more leaves 
     of''; and
       (B) in paragraph (3)(C)(i), by striking ``grant or loan 
     assistance under this title'' and inserting ``grant 
     assistance under subparts 1 and 3 of part A, or loan 
     assistance under parts B, D, and E,'';
       (2) in subsection (b), by adding at the end the following:
       ``(4) Time frame.--Not later than 45 days after the date of 
     an institution's determination that a student withdrew from 
     the institution, the institution shall--
       ``(A) return the amount required under paragraph (1);
       ``(B) notify the student of the applicable requirements 
     regarding the overpayment of grant and loan assistance and
       ``(C) notify the student of the student's eligibility for 
     post-withdrawal disbursements.'';
       (3) in subsection (c)(2)--
       (A) by striking the period at the end and inserting ``; 
     or'';
       (B) by striking ``may determine the appropriate'' and 
     inserting ``may determine--
       ``(A) the appropriate''; and
       (C) by adding at the end the following:
       ``(B) that the requirements of this section do not apply to 
     the student.''; and
       (4) in subsection (d)(2), by striking ``clock hours--'' and 
     all that follows through the period and inserting ``clock 
     hours scheduled to be completed by the student in that period 
     as of the day the student withdrew.''.

     SEC. 487. INSTITUTIONAL AND FINANCIAL ASSISTANCE FOR 
                   STUDENTS.

       Section 485 (20 U.S.C. 1092) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in subparagraph (N), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (O), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(P) student body diversity at the institution, including 
     information on the percentage of enrolled, full-time students 
     who are--
       ``(i) male;
       ``(ii) female;
       ``(iii) from a low-income background; and
       ``(iv) a self-identified member of a major racial or ethnic 
     group.'';
       (B) by striking paragraph (4) and inserting the following:
       ``(4) For purposes of this section, institutions may--
       ``(A) exclude from the information disclosed in accordance 
     with subparagraph (L) of paragraph (1) the completion or 
     graduation rates of students who leave school to serve in the 
     Armed Forces, on official church missions, or with a 
     recognized foreign aid service of the Federal Government; or
       ``(B) in cases where 20 percent or more of the students 
     described in subparagraph (A) are excluded in a reporting 
     year, include in such information on the completion or 
     graduation rates of students described in subparagraph (A) by 
     excluding from the calculation described in paragraph (3) the 
     time period such students were not enrolled due to their 
     service in the Armed Forces, on official church missions, or 
     with a recognized foreign aid service of the Federal 
     Government.''; and
       (C) by adding at the end the following:
       ``(7) The information disclosed under subparagraph (L) of 
     paragraph (1), or reported under subsection (e), shall 
     include information disaggregated by gender, by each major 
     racial and ethnic subgroup, and by low-income background 
     status as measured by Federal Pell Grant eligibility, if the 
     number of students in such subgroup or with such status is 
     sufficient to yield statistically reliable

[[Page S9675]]

     information and reporting would not reveal personally 
     identifiable information about an individual student. If such 
     number is not sufficient for such purposes, then the 
     institution shall note that the institution enrolled too few 
     of such students to so disclose or report with confidence and 
     confidentiality.'';
       (2) in subsection (b), by adding at the end the following:
       ``(3) Each eligible institution shall, during the exit 
     interview required by this subsection, provide to a borrower 
     of a loan made under part B, D, or E a clear and conspicuous 
     notice describing the general effects of using a 
     consolidation loan to discharge the borrower's student loans, 
     including--
       ``(A) the effects of consolidation on total interest to be 
     paid, fees to be paid, and length of repayment;
       ``(B) the effects of consolidation on a borrower's 
     underlying loan benefits, including loan forgiveness, 
     cancellation, and deferment;
       ``(C) the ability for the borrower to prepay the loan, pay 
     on a shorter schedule, and to change repayment plans, and 
     that borrower benefit programs may vary among different loan 
     holders;
       ``(D) the tax benefits for which the borrower may be 
     eligible; and
       ``(E) the consequences of default.'';
       (3) in subsection (d)(2)--
       (A) by inserting ``grant assistance, as well as State'' 
     after ``describing State''; and
       (B) by inserting ``and other means, including through the 
     Internet'' before the period at the end;
       (4) in subsection (e), by striking paragraph (3) and 
     inserting the following:
       ``(3) For purposes of this subsection, institutions may--
       ``(A) exclude from the reporting requirements under 
     paragraphs (1) and (2) the completion or graduation rates of 
     students and student athletes who leave school to serve in 
     the Armed Forces, on official church missions, or with a 
     recognized foreign aid service of the Federal Government; or
       ``(B) in cases where 20 percent or more of the students 
     described in subparagraph (A) are excluded in a reporting 
     year, include in such information on the completion or 
     graduation rates of students described in subparagraph (A) by 
     excluding from the calculation described in subsection (a)(3) 
     the time period such students were not enrolled due to their 
     service in the Armed Forces, on official church missions, or 
     with a recognized foreign aid service of the Federal 
     Government.'';
       (5) in the matter preceding subparagraph (A) of subsection 
     (f)(1), by inserting ``, other than a foreign institution of 
     higher education,'' after ``under this title''; and
       (6) by adding at the end the following:
       ``(h) Transfer of Credit Policies.--
       ``(1) Disclosure.--Each institution of higher education 
     participating in any program under this title shall publicly 
     disclose in a readable and comprehensible manner the 
     institution's transfer of credit policies which shall include 
     a statement of the institution's current transfer of credit 
     policies that includes, at a minimum--
       ``(A) a statement that transfer of credit shall not be 
     denied solely on the basis of the agency or association that 
     accredited such other institution of higher education, if 
     that agency or association is recognized by the Secretary 
     pursuant to section 496 to be a reliable authority as to the 
     quality of the education or training offered; and
       ``(B) a list of institutions of higher education with which 
     the institution has established an articulation agreement.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to--
       ``(A) authorize an officer or employee of the Department to 
     exercise any direction, supervision, or control over the 
     curriculum, program of instruction, administration, or 
     personnel of any institution of higher education, or over any 
     accrediting agency or association;
       ``(B) limit the application of the General Education 
     Provisions Act; or
       ``(C) create any legally enforceable right on the part of a 
     student to require an institution of higher education to 
     accept a transfer of credit from another institution.''.

     SEC. 488. NATIONAL STUDENT LOAN DATA SYSTEM.

       Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
       (1) by redesignating paragraphs (6) through (10) as 
     paragraphs (7) through (11), respectively;
       (2) in paragraph (5) (as added by Public Law 101-610), by 
     striking ``effectiveness.'' and inserting ``effectiveness;''; 
     and
       (3) by redesignating paragraph (5) (as added by Public Law 
     101-234) as paragraph (6).

     SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY AND 
                   DEMONSTRATION PROGRAM TO PROVIDE EARLY 
                   ESTIMATES AND EARLY AWARDS OF FINANCIAL AID.

       Part G of title IV (20 U.S.C. 1088 et seq.) is amended by 
     inserting after section 485C (20 U.S.C. 1092c) the following:

     ``SEC. 485D. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY AND 
                   DEMONSTRATION PROGRAM TO PROVIDE EARLY 
                   ESTIMATES AND EARLY AWARDS OF FINANCIAL AID.

       ``(a) In General.--The Secretary shall implement, in 
     cooperation with States, institutions of higher education, 
     secondary schools, middle schools, early intervention and 
     outreach programs under this title, other agencies and 
     organizations involved in student financial assistance and 
     college access, public libraries, community centers, 
     employers, and businesses, a comprehensive system of early 
     financial aid information in order to provide students and 
     families with early information about financial aid and early 
     estimates of such students' eligibility for financial aid 
     from multiple sources. Such system shall include the 
     activities described in subsections (b) and (c).
       ``(b) Communication of Availability of Aid and Aid 
     Eligibility.--
       ``(1) Students who receive benefits.--The Secretary shall--
       ``(A) make special efforts to notify students who receive 
     or are eligible to receive benefits under Federal means-
     tested benefit programs (including the school lunch program 
     established under the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1751 et seq.), the food stamp program 
     under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), and 
     other such programs as determined by the Secretary) of such 
     students' potential eligibility for a maximum Federal Pell 
     Grant under subpart 1 of part A; and
       ``(B) disseminate such informational materials as the 
     Secretary determines necessary.
       ``(2) Middle school students.--The Secretary, in 
     cooperation with States, institutions of higher education, 
     other organizations involved in college access and student 
     financial aid, middle schools, and programs under this title 
     that serve middle school students, shall make special efforts 
     to notify students and their parents of the availability of 
     financial aid under this title and, in accordance with 
     subsection (c), shall provide nonbinding estimates of grant, 
     work-study, and loan aid that an individual may be eligible 
     for under this title upon completion of an application form 
     under section 483(a). The Secretary shall ensure that such 
     information is as accurate as possible and that such 
     information is provided in an age-appropriate format using 
     dissemination mechanisms suitable for students in middle 
     school.
       ``(3) Secondary school students.--The Secretary, in 
     cooperation with States, institutions of higher education, 
     other organizations involved in college access and student 
     financial aid, secondary schools, and programs under this 
     title that serve secondary school students, shall make 
     special efforts to notify students in secondary school and 
     their parents, as early as possible but not later than such 
     students' junior year of secondary school, of the 
     availability of financial aid under this title and, in 
     accordance with subsection (c), shall provide nonbinding 
     estimates of the amounts of grant, work-study, and loan aid 
     that an individual may be eligible for under this title upon 
     completion of an application form under section 483(a). The 
     Secretary shall ensure that such information is as accurate 
     as possible and that such information is provided in an age-
     appropriate format using dissemination mechanisms suitable 
     for students in secondary school.
       ``(4) Adult learners.--The Secretary, in cooperation with 
     States, institutions of higher education, other organizations 
     involved in college access and student financial aid, 
     employers, workforce investment boards and public libraries, 
     shall make special efforts to provide individuals who would 
     qualify as independent students, as defined in section 
     480(d), with information regarding the availability of 
     financial aid under this title and, in accordance with 
     subsection (c), with nonbinding estimates of the amounts of 
     grant, work-study, and loan aid that an individual may be 
     eligible for under this title upon completion of an 
     application form under section 483(a). The Secretary shall 
     ensure that such information--
       ``(A) is as accurate as possible;
       ``(B) includes specific information regarding the 
     availability of financial aid for students qualified as 
     independent students, as defined in section 480(d); and
       ``(C) uses dissemination mechanisms suitable for adult 
     learners.
       ``(5) Public awareness campaign.--Not later than 2 years 
     after the date of enactment of the Higher Education 
     Amendments of 2005, the Secretary, in coordination with 
     States, institutions of higher education, early intervention 
     and outreach programs under this title, other agencies and 
     organizations involved in student financial aid, local 
     educational agencies, public libraries, community centers, 
     businesses, employers, employment services, workforce 
     investment boards, and movie theaters, shall implement a 
     public awareness campaign in order to increase national 
     awareness regarding the availability of financial aid under 
     this title. The public awareness campaign shall disseminate 
     accurate information regarding the availability of financial 
     aid under this title and shall be implemented, to the extent 
     practicable, using a variety of media, including print, 
     television, radio and the Internet. The Secretary shall 
     design and implement the public awareness campaign based upon 
     relevant independent research and the information and 
     dissemination strategies found most effective in implementing 
     paragraphs (1) through (4).
       ``(c) Availability of Nonbinding Estimates of Federal 
     Financial Aid Eligibility.--
       ``(1) In general.--The Secretary, in cooperation with 
     States, institutions of higher education, and other agencies 
     and organizations involved in student financial aid, shall 
     provide, via a printed form and the Internet or other 
     electronic means, the capability for individuals to determine 
     easily, by entering relevant data, nonbinding estimates of 
     amounts of grant and loan aid an individual

[[Page S9676]]

     may be eligible for under this title upon completion and 
     processing of an application and enrollment in an institution 
     of higher education.
       ``(2) Data elements.--The Secretary, in cooperation with 
     States, institutions of higher education, and other agencies 
     and organizations involved in student financial aid, shall 
     determine the data elements that are necessary to create a 
     simplified form that individuals can use to obtain easily 
     nonbinding estimates of the amounts of grant and loan aid an 
     individual may be eligible for under this title.
       ``(3) Qualification to use simplified application.--The 
     capability provided under this paragraph shall include the 
     capability to determine whether the individual is eligible to 
     submit a simplified application form under paragraph (2)(B) 
     or (3)(B) of section 483(a).''.

     SEC. 490. COLLEGE ACCESS INITIATIVE.

       Part G of title IV (20 U.S.C. 1088 et seq.) is further 
     amended by inserting after section 485D (as added by section 
     489) the following:

     ``SEC. 485E. COLLEGE ACCESS INITIATIVE.

       ``(a) State-by-State Information.--The Secretary shall 
     direct each guaranty agency with which the Secretary has an 
     agreement under section 428(c) to provide to the Secretary 
     the information necessary for the development of Internet Web 
     links and access for students and families to a comprehensive 
     listing of the postsecondary education opportunities 
     programs, publications, Internet Web sites, and other 
     services available in the States for which such agency serves 
     as the designated guarantor.
       ``(b) Guaranty Agency Activities.--
       ``(1) Plan and activity required.--Each guaranty agency 
     with which the Secretary has an agreement under section 
     428(c) shall develop a plan, and undertake the activity, 
     necessary to gather the information required under subsection 
     (a) and to make such information available to the public and 
     to the Secretary in a form and manner prescribed by the 
     Secretary.
       ``(2) Activities.--Each guaranty agency shall undertake 
     such activities as are necessary to promote access to 
     postsecondary education for students through providing 
     information on college planning, career preparation, and 
     paying for college that is limited or related to subsection 
     (a). The guaranty agency shall publicize such information and 
     coordinate such activities with other entities that provide 
     or distribute such information in the States for which such 
     guaranty agency serves as the designated guarantor.
       ``(3) Funding.--The activities required by this section may 
     be funded from the guaranty agency's Operating Fund 
     established pursuant to section 422B and to the extent funds 
     remain, from earnings on the restricted account established 
     pursuant to section 422(h)(4).
       ``(4) Rule of construction.--Nothing in this subsection 
     shall require a guaranty agency to duplicate any efforts 
     currently underway that meet the requirements of this 
     subsection.
       ``(c) Access to Information.--
       ``(1) Secretary's responsibility.--The Secretary shall 
     ensure the availability of the information provided, by the 
     guaranty agencies in accordance with this section, to 
     students, parents, and other interested individuals, through 
     Web links or other methods prescribed by the Secretary.
       ``(2) Guaranty agency responsibility.--The guaranty 
     agencies shall ensure that the information required by this 
     section is available without charge in printed format for 
     students and parents requesting such information.
       ``(3) Publicity.--Not later than 270 days after the date of 
     enactment of the Higher Education Amendments Act of 2005, the 
     Secretary and guaranty agencies shall publicize the 
     availability of the information required by this section, 
     with special emphasis on ensuring that populations that are 
     traditionally underrepresented in postsecondary education are 
     made aware of the availability of such information.''.

     SEC. 491. PROGRAM PARTICIPATION AGREEMENTS.

       Section 487 (20 U.S.C. 1094) is amended--
       (1) in subsection (a)--
       (A) in paragraph (23), by adding at the end the following:
       ``(D) An institution shall be considered in compliance with 
     the requirements of subparagraph (A) for any student to whom 
     the institution electronically transmits a message containing 
     a voter registration form acceptable for use in the State in 
     which the institution is located, or an Internet address 
     where such a form can be downloaded, if such information is 
     in an electronic message devoted solely to voter 
     registration.''; and
       (B) by adding at the end the following:
       ``(24) The institution will, as calculated in accordance 
     with subsection (f)(1), have not less than 10 percent of its 
     revenues from sources other than funds provided under this 
     title, or will be subject to the sanctions described in 
     subsection (f)(2).'';
       (2) by redesignating subsections (d) and (e) as subsection 
     (e) and (f), respectively;
       (3) by inserting after subsection (c) the following:
       ``(d) Institutional Requirements for Teach-Outs.--
       ``(1) In general.--In the event the Secretary initiates the 
     limitation, suspension, or termination of the participation 
     of an institution of higher education in any program under 
     this title under the authority of subsection (c)(1)(F) or 
     initiates an emergency action for termination under the 
     authority of subsection (c)(1)(G) and its prescribed 
     regulations, the Secretary shall require that institution to 
     prepare a teach-out plan for submission to the institution's 
     accrediting agency or association in compliance with section 
     496(c)(4), the Secretary's regulations on teach-out plans, 
     and the standards of the institution's accrediting agency or 
     association.
       ``(2) Teach-out plan defined.--In this subsection, the term 
     `teach-out plan' means a written plan that provides for the 
     equitable treatment of students if an institution of higher 
     education ceases to operate before all students have 
     completed their enrollment at the institution, and may 
     include, if required by the institution's accrediting agency 
     or association, an agreement between institutions for such a 
     teach-out plan.''; and
       (4) by adding at the end the following:
       ``(g) Implementation of Nontitle IV Revenue Requirement.--
       ``(1) Calculation.--In carrying out subsection (a)(24), an 
     institution shall use the cash basis of accounting and count 
     the following funds as from sources of funds other than funds 
     provided under this title:
       ``(A) Funds used by students from sources other than funds 
     received under this title to pay tuition, fees, and other 
     institutional charges to the institution, provided the 
     institution can reasonably demonstrate that such funds were 
     used for such purposes.
       ``(B) Funds used by the institution to satisfy matching-
     fund requirements for programs under this title.
       ``(C) Funds used by a student from savings plans for 
     educational expenses established by or on behalf of the 
     student and which qualify for special tax treatment under the 
     Internal Revenue Code of 1986.
       ``(D) Funds paid by a student, or on behalf of a student by 
     a party other than the institution, to the institution for an 
     education or training program that is not eligible for funds 
     under this title, provided that the program is approved or 
     licensed by the appropriate State agency or an accrediting 
     agency recognized by the Secretary.
       ``(E) Funds generated by the institution from institutional 
     activities that are necessary for the education and training 
     of the institution's students, if such activities are--
       ``(i) conducted on campus or at a facility under the 
     control of the institution;
       ``(ii) performed under the supervision of a member of the 
     institution's faculty; and
       ``(iii) required to be performed by all students in a 
     specific educational program at the institution.
       ``(F) Institutional aid, as follows:
       ``(i) In the case of loans made by the institution, only 
     the amount of loan repayments received by the institution 
     during the fiscal year for which the determination is made.
       ``(ii) In the case of scholarships provided by the 
     institution, only those scholarship funds provided by the 
     institution that are--

       ``(I) in the form of monetary aid or tuition discounts 
     based upon the academic achievements or financial need of 
     students; and
       ``(II) disbursed during the fiscal year for which the 
     determination is made from an established restricted account 
     and only to the extent that the funds in that account 
     represent designated funds from an outside source or income 
     earned on those funds.

       ``(iii) In the case of tuition discounts, only those 
     tuition discounts based upon the academic achievement or 
     financial need of students.
       ``(2) Sanctions.--
       ``(A) Failure to meet requirement for 1 year.--In addition 
     to such other means of enforcing the requirements of this 
     title as may be available to the Secretary, if an institution 
     fails to meet the requirements of subsection (a)(24) in any 
     year, the Secretary may impose 1 or both of the following 
     sanctions on the institution:
       ``(i) Place the institution on provisional certification in 
     accordance with section 498(h) until the institution 
     demonstrates, to the satisfaction of the Secretary, that it 
     is in compliance with subsection (a)(24).
       ``(ii) Require such other increased monitoring and 
     reporting requirements as the Secretary determines necessary 
     until the institution demonstrates, to the satisfaction of 
     the Secretary, that it is in compliance with subsection 
     (a)(24).
       ``(B) Failure to meet requirement for 3 years.--An 
     institution that fails to meet the requirements of subsection 
     (a)(24) for 2 consecutive years shall be ineligible to 
     participate in the programs authorized under this title.
       ``(3) Public availability of information.--The Secretary 
     shall make publicly available, through the means described in 
     subsection (b) of section 131, any institution that fails to 
     meet the requirements of subsection (a)(24) in any year as an 
     institution that is failing to meet the minimum non-Federal 
     source of revenue requirements of such subsection (a)(24).''.

     SEC. 492. REGULATORY RELIEF AND IMPROVEMENT.

       Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
       (1) in paragraph (1)-
       (A) by striking ``1998'' and inserting ``2005'' ; and
       (B) by striking ``1999'' and inserting ``2006''; and
       (2) by striking the matter preceding paragraph (2)(A) and 
     inserting the following:
       ``(2) Report.--The Secretary shall review and evaluate the 
     experience of institutions participating as experimental 
     sites and shall, on a biennial basis, submit a report

[[Page S9677]]

     based on the review and evaluation to the authorizing 
     committees. Such report shall include--''; and
       (3) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) by striking ``Upon the submission of the report 
     required by paragraph (2), the'' and inserting ``The''; and
       (ii) by inserting ``periodically'' after ``authorized to'';
       (B) by striking subparagraph (B);
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (D) in subparagraph (B) (as redesignated by subparagraph 
     (C))--
       (i) by inserting ``, including requirements related to the 
     award process and disbursement of student financial aid (such 
     as innovative delivery systems for modular or compressed 
     courses, or other innovative systems), verification of 
     student financial aid application data, entrance and exit 
     interviews, or other management procedures or processes as 
     determined in the negotiated rulemaking process under section 
     492,'' after ``requirements in this title''; and
       (ii) by inserting ``(other than an award rule related to an 
     experiment in modular or compressed schedules)'' after 
     ``award rules''; and
       (iii) by inserting ``unless the waiver of such provisions 
     is authorized by another provision under this title'' before 
     the period at the end.

     SEC. 493. TRANSFER OF ALLOTMENTS.

       Section 488 (20 U.S.C. 1095) is amended in the first 
     sentence--
       (1) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (2), by striking ``413D.'' and inserting 
     ``413D; and''; and
       (3) by adding at the end ``(3) transfer 25 percent of the 
     institution's allotment under section 413D to the 
     institution's allotment under section 442.''.

     SEC. 494. WAGE GARNISHMENT REQUIREMENT.

       Section 488A(a)(1) (20 U.S.C. 1095a(a)(1)) is amended by 
     striking ``10 percent'' and inserting ``15 percent''.

     SEC. 495. PURPOSE OF ADMINISTRATIVE PAYMENTS.

       Section 489(b) (20 U.S.C. 1096(b)) is amended by striking 
     ``offsetting the administrative costs of'' and inserting 
     ``administering''.

     SEC. 496. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

       Section 491 (20 U.S.C. 1098) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (C), by striking the period and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) to provide knowledge and understanding of early 
     intervention programs, and to make recommendations that will 
     result in early awareness by low- and moderate-income 
     students and families--
       ``(i) of their eligibility for assistance under this title; 
     and
       ``(ii) to the extent practicable, of their eligibility for 
     other forms of State and institutional need-based student 
     assistance; and
       ``(E) to make recommendations that will expand and improve 
     partnerships among the Federal Government, States, 
     institutions of higher education, and private entities to 
     increase the awareness and the total amount of need-based 
     student assistance available to low- and moderate-income 
     students.'';
       (2) in subsection (d)(6), by striking ``, but nothing'' and 
     all that follows through ``or analyses'';
       (3) in subsection (j)--
       (A) in paragraph (1)--
       (i) by inserting ``and simplification'' after 
     ``modernization'' each place the term appears; and
       (ii) by striking ``including'' and all that follows through 
     ``Department,''; and
       (B) by striking paragraphs (4) and (5) and inserting the 
     following:
       ``(4) conduct a review and analysis of regulations in 
     accordance with subsection (l); and
       ``(5) conduct a study in accordance with subsection (m).'';
       (4) in subsection (k), by striking ``2004'' and inserting 
     ``2010''; and
       (5) by adding at the end the following:
       ``(l) Review and Analysis of Regulations.--
       ``(1) Recommendations.--The Advisory Committee shall make 
     recommendations to the Secretary for consideration of future 
     legislative action regarding redundant or outdated 
     regulations under this title, consistent with the Secretary's 
     requirements under section 498B.
       ``(2) Review and analysis of regulations.--The Advisory 
     Committee shall conduct a review and analysis of the 
     regulations issued under this title that are in effect at the 
     time of the review and that apply to the operations or 
     activities of participants in the programs assisted under 
     this title. The review and analysis may include a 
     determination of whether the regulation is duplicative, is no 
     longer necessary, is inconsistent with other Federal 
     requirements, or is overly burdensome. In conducting the 
     review, the Advisory Committee shall pay specific attention 
     to evaluating ways in which regulations under this title 
     affecting institutions of higher education (other than 
     institutions described in section 102(a)(1)(C)), that have 
     received in each of the 2 most recent award years prior to 
     the date of enactment of the Higher Education Amendments of 
     2005 less than $200,000 in funds through this title, may be 
     improved, streamlined, or eliminated.
       ``(3) Consultation.--
       ``(A) In general.--In carrying out the review and analysis 
     under paragraph (2), the Advisory Committee shall consult 
     with the Secretary, relevant representatives of institutions 
     of higher education, and individuals who have expertise and 
     experience with the regulations issued under this title, in 
     accordance with subparagraph (B).
       ``(B) Review panels.--The Advisory Committee shall convene 
     not less than 2 review panels of representatives of the 
     groups involved in student financial assistance programs 
     under this title who have experience and expertise in the 
     regulations issued under this title to review the regulations 
     under this title, and to provide recommendations to the 
     Advisory Committee with respect to the review and analysis 
     under paragraph (2). The panels shall be made up of experts 
     in areas such as the operations of the financial assistance 
     programs, the institutional eligibility requirements for the 
     financial assistance programs, regulations not directly 
     related to the operations or the institutional eligibility 
     requirements of the financial assistance programs, and 
     regulations for dissemination of information to students 
     about the financial assistance programs.
       ``(4) Reports to congress.--The Advisory Committee shall 
     submit, not later than 2 years after the completion of the 
     negotiated rulemaking process required under section 492 
     resulting from the amendments to this Act made by the Higher 
     Education Amendments of 2005, a report to the authorizing 
     committees and the Secretary detailing the expert panels' 
     findings and recommendations with respect to the review and 
     analysis under paragraph (2).
       ``(5) Additional support.--The Secretary and the Inspector 
     General of the Department shall provide such assistance and 
     resources to the Advisory Committee as the Secretary and 
     Inspector General determine are necessary to conduct the 
     review required by this subsection.
       ``(m) Study of Innovative Pathways to Baccalaureate Degree 
     Attainment.--
       ``(1) Study required.--The Advisory Committee shall conduct 
     a study of the feasibility of increasing baccalaureate degree 
     attainment rates by reducing the costs and financial barriers 
     to attaining a baccalaureate degree through innovative 
     programs.
       ``(2) Scope of study.--The Advisory Committee shall examine 
     new and existing programs that promote baccalaureate degree 
     attainment through innovative ways, such as dual or 
     concurrent enrollment programs, changes made to the Federal 
     Pell Grant program, simplification of the needs analysis 
     process, compressed or modular scheduling, articulation 
     agreements, and programs that allow 2-year institutions of 
     higher education to offer baccalaureate degrees.
       ``(3) Required aspects of the study.--In performing the 
     study described in this subsection, the Advisory Committee 
     shall examine the following aspects of such innovative 
     programs:
       ``(A) The impact of such programs on baccalaureate 
     attainment rates.
       ``(B) The degree to which a student's total cost of 
     attaining a baccalaureate degree can be reduced by such 
     programs.
       ``(C) The ways in which low- and moderate-income students 
     can be specifically targeted by such programs.
       ``(D) The ways in which nontraditional students can be 
     specifically targeted by such programs.
       ``(E) The cost-effectiveness for the Federal Government, 
     States, and institutions of higher education to implement 
     such programs.
       ``(4) Consultation.--
       ``(A) In general.--In performing the study described in 
     this subsection the Advisory Committee shall consult with a 
     broad range of interested parties in higher education, 
     including parents, students, appropriate representatives of 
     secondary schools and institutions of higher education, 
     appropriate State administrators, administrators of dual 
     enrollment programs, and appropriate officials from the 
     Department.
       ``(B) Congressional consultation.--The Advisory Committee 
     shall consult on a regular basis with the authorizing 
     committees in carrying out the study required by this 
     section.
       ``(5) Reports to congress.--
       ``(A) Interim report.--The Advisory Committee shall prepare 
     and submit to the authorizing committees and the Secretary 1 
     interim report, not later than 1 year after the date of 
     enactment of the Higher Education Amendments of 2005, 
     describing the progress that has been made in conducting the 
     study required by this subsection and any preliminary 
     findings on the topics identified under paragraph (2).
       ``(B) Final report.--The Advisory Committee shall, not 
     later than 3 years after the date of enactment of the Higher 
     Education Amendments of 2005, prepare and submit to the 
     authorizing committees and the Secretary a final report on 
     the study, including recommendations for legislative, 
     regulatory, and administrative changes based on findings 
     related to the topics identified under paragraph (2).''.

     SEC. 497. REGIONAL MEETINGS.

       Section 492(a)(1) (20 U.S.C. 1098a(a)(1)) is amended by 
     inserting ``State student grant agencies,'' after 
     ``institutions of higher education,''.

     SEC. 498. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.

       (a) Repeal.--Section 493A (20 U.S.C. 1098c) is repealed.

[[Page S9678]]

       (b) Redesignation.--Section 493B (20 U.S.C. 1098d) is 
     redesignated as section 493A.

                       PART H--PROGRAM INTEGRITY

     SEC. 499. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

       Section 496 (200 U.S.C. 1099b) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (4) and inserting the following:
       ``(4)(A) such agency or association consistently applies 
     and enforces standards that respect the stated mission of the 
     institution of higher education, including religious 
     missions, and that ensure that the courses or programs of 
     instruction, training, or study offered by the institution of 
     higher education, including distance education courses or 
     programs, are of sufficient quality to achieve, for the 
     duration of the accreditation period, the stated objective 
     for which the courses or the programs are offered; and
       ``(B) if such agency or association has or seeks to include 
     within its scope of recognition the evaluation of the quality 
     of institutions or programs offering distance education, such 
     agency or association shall, in addition to meeting the other 
     requirements of this subpart, demonstrate to the Secretary 
     that--
       ``(i) the agency or association's standards effectively 
     address the quality of an institution's distance education in 
     the areas identified in section 496(a)(5), except that the 
     agency or association shall not be required to have separate 
     standards, procedures or policies for the evaluation of 
     distance education institutions or programs in order to meet 
     the requirements of this subparagraph; and
       ``(ii) the agency or association requires an institution 
     that offers distance education to have processes through 
     which the institution establishes that the student who 
     registers in a distance education course or program is the 
     same student who participates, completes and receives the 
     academic credit;'';
       (B) in paragraph (5), by striking subparagraph (A) and 
     inserting the following:
       ``(A) success with respect to student achievement in 
     relation to the institution's mission, including--
       ``(i) consideration of student academic achievement as 
     determined by the institution;
       ``(ii) student retention;
       ``(iii) course and program completion;
       ``(iv) as appropriate, State licensing examinations;
       ``(v) as appropriate, job placement rates; and
       ``(vi) as appropriate, other student performance 
     information selected by the institution, particularly that 
     information used by the institution to evaluate or strengthen 
     its programs;'';
       (C) by striking paragraph (6) and inserting the following:
       ``(6) such an agency or association shall establish and 
     apply review procedures throughout the accrediting process, 
     including evaluation and withdrawal proceedings which comply 
     with due process procedures that provide for--
       ``(A) adequate specification of requirements and 
     deficiencies at the institution of higher education or 
     program examined;
       ``(B) an opportunity for a written response by any such 
     institution to be included in the evaluation and withdrawal 
     proceedings prior to final action;
       ``(C) upon the written request of an institution, an 
     opportunity for the institution to appeal any adverse action, 
     including denial, withdrawal, suspension, or termination of 
     accreditation, or placement on probation of an institution, 
     at a hearing prior to such action becoming final, before an 
     appeals panel that--
       ``(i) shall not include current members of the agency or 
     association's underlying decision-making body that made the 
     adverse decision; and
       ``(ii) is subject to a conflict of interest policy; and
       ``(D) the right to representation by counsel for such an 
     institution;''; and
       (D) by striking paragraph (8) and inserting the following:
       ``(8) such agency or association shall make available to 
     the public and the State licensing or authorizing agency, and 
     submit to the Secretary, a summary of agency or association 
     actions, including--
       ``(A) the award of accreditation or reaccreditation of an 
     institution;
       ``(B) final denial, withdrawal, suspension, or termination 
     of accreditation, or placement on probation of an 
     institution, and any findings made in connection with the 
     action taken, together with the official comments of the 
     affected institution; and
       ``(C) any other adverse action taken with respect to an 
     institution.''; and
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``, including those 
     regarding distance education'' after ``their 
     responsibilities'';
       (B) by redesignating paragraphs (2) through (6) as 
     paragraphs (5) through (9);
       (C) by inserting after paragraph (1) (as amended by 
     subparagraph (A)) the following:
       ``(2) ensures that the agency or association's on-site 
     evaluation for accreditation or reaccreditation includes 
     review of the Federally required information the institution 
     or program provides its current and prospective students;
       ``(3) monitors the growth of programs at institutions that 
     are experiencing significant enrollment growth;
       ``(4) requires an institution to submit a teach-out plan 
     for approval to the accrediting agency upon the occurrence of 
     any of the following events:
       ``(A) The Department notifies the accrediting agency of an 
     action against the institution pursuant to section 487(d).
       ``(B) The accrediting agency acts to withdraw, terminate, 
     or suspend the accreditation of an institution.
       ``(C) The institution notifies the accrediting agency that 
     the institution intends to cease operations.'';
       (D) in paragraph (8) (as redesignated by subparagraph (B)), 
     by striking ``and'' after the semicolon;
       (E) in subparagraph (9) (as redesignated by subparagraph 
     (B)), by striking the period and inserting ``; and''; and
       (F) by adding at the end the following:
       ``(10) confirms, as a part of the agency or association's 
     review for accreditation or reaccreditation, that the 
     institution has transfer of credit policies--
       ``(A) that are publicly disclosed;
       ``(B) that do not deny transfer of credit based solely on 
     the accreditation of the sending institution, if the agency 
     or association accrediting the sending institution is 
     recognized by the Secretary pursuant to this section; and
       ``(C) in which acceptance or denial of transfer of credit 
     is decided according to criteria established in guidelines 
     developed by the institution's admissions committee.''.

     SEC. 499A. ADMINISTRATIVE CAPACITY STANDARD.

       Section 498 (20 U.S.C. 1099c) is amended--
       (1) in subsection (d)(1)(B), by inserting ``and'' after the 
     semicolon; and
       (2) by adding at the end the following:
       ``(k) Treatment of Teach-Outs at Additional Locations.--
       ``(1) In general.--A location of a closed institution of 
     higher education shall be eligible as an additional location 
     of an eligible institution of higher education, as defined 
     pursuant to regulations of the Secretary, for the purposes of 
     a teach-out, if such teach-out has been approved by the 
     institution's accrediting agency.
       ``(2) Special rule.--An institution of higher education 
     that conducts a teach-out through the establishment of an 
     additional location described in paragraph (1) shall be 
     permitted to establish a permanent additional location at a 
     closed institution and shall not be required--
       ``(A) to meet the requirements of sections 102(b)(1)(E) and 
     102(c)(1)(C) for such additional location; or
       ``(B) to assume the liabilities of the closed 
     institution.''.

     SEC. 499B. PROGRAM REVIEW AND DATA.

       Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--
       (1) in paragraph (4), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (5) by striking the period and inserting a 
     semicolon; and
       (3) by adding at the end the following:
       ``(6) provide to an institution of higher education an 
     adequate opportunity to review and respond to any program 
     review report or audit finding, and relevant materials 
     related to the report or finding, before any final program 
     review or audit determination is reached;
       ``(7) review and take into consideration an institution of 
     higher education's response in any final program review or 
     audit determination; and
       ``(8) maintain and preserve at all times the 
     confidentiality of any program review report or audit finding 
     until the requirements of paragraphs (6) and (7) are met, and 
     until a final program review or audit determination is 
     issued, other than to the extent required to comply with 
     paragraph (5), except that the Secretary shall promptly 
     disclose any and all program review reports and audit 
     findings to the institution of higher education under 
     review.''.

                    TITLE V--DEVELOPING INSTITUTIONS

     SEC. 501. DEFINITIONS.

       Section 502(a) (20 U.S.C. 1101a(a)) is amended--
       (1) in paragraph (5)--
       (A) in subparagraph (A), by inserting ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (C); and
       (2) by striking paragraph (7).

     SEC. 502. AUTHORIZED ACTIVITIES.

       Section 503(b) (20 U.S.C. 1101b(b)) is amended--
       (1) by redesignating paragraphs (6) through (14) as 
     paragraphs (8) through (16), respectively;
       (2) in paragraph (5), by inserting ``, including 
     innovative, customized remedial education and English 
     language instruction courses designed to help retain students 
     and move the students rapidly into core courses and through 
     program completion'' before the period at the end; and
       (3) by inserting after paragraph (5) the following:
       ``(6) Education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents.
       ``(7) Articulation agreements and student support programs 
     designed to facilitate the transfer from 2-year to 4-year 
     institutions.''.

     SEC. 503. DURATION OF GRANT.

       Section 504(a) (20 U.S.C. 1101c(a)) is amended to read as 
     follows:
       ``(a) Award Period.--The Secretary may award a grant to a 
     Hispanic-serving institution under this title for 5 years.''.

[[Page S9679]]

     SEC. 504. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                   AMERICANS.

       (a) Establishment of Program.--Title V (20 U.S.C. 1101 et 
     seq.) is amended--
       (1) by redesignating part B as part C;
       (2) by redesignating sections 511 through 518 as sections 
     521 through 528, respectively; and
       (3) by inserting after section 505 the following:

   ``PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                               AMERICANS

     ``SEC. 511. PROGRAM AUTHORITY AND ELIGIBILITY.

       ``(a) Program Authorized.--Subject to the availability of 
     funds appropriated to carry out this part, the Secretary 
     shall award grants, on a competitive basis, to eligible 
     institutions to enable the eligible institutions to carry out 
     the authorized activities described in section 512.
       ``(b) Eligibility.--For the purposes of this part, an 
     `eligible institution' means an institution of higher 
     education that--
       ``(1) is a Hispanic-serving institution (as defined in 
     section 502); and
       ``(2) offers a postbaccalaureate certificate or degree 
     granting program.

     ``SEC. 512. AUTHORIZED ACTIVITIES.

       ``Grants awarded under this part shall be used for 1 or 
     more of the following activities:
       ``(1) Purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes.
       ``(2) Construction, maintenance, renovation, and 
     improvement in classroom, library, laboratory, and other 
     instructional facilities, including purchase or rental of 
     telecommunications technology equipment or services.
       ``(3) Purchase of library books, periodicals, technical and 
     other scientific journals, microfilm, microfiche, and other 
     educational materials, including telecommunications program 
     materials.
       ``(4) Support for needy postbaccalaureate students, 
     including outreach, academic support services, mentoring, 
     scholarships, fellowships, and other financial assistance, to 
     permit the enrollment of such students in postbaccalaureate 
     certificate and degree granting programs.
       ``(5) Support of faculty exchanges, faculty development, 
     faculty research, curriculum development, and academic 
     instruction.
       ``(6) Creating or improving facilities for Internet or 
     other distance learning academic instruction capabilities, 
     including purchase or rental of telecommunications technology 
     equipment or services.
       ``(7) Collaboration with other institutions of higher 
     education to expand postbaccalaureate certificate and degree 
     offerings.
       ``(8) Other activities proposed in the application 
     submitted pursuant to section 513 that are approved by the 
     Secretary as part of the review and acceptance of such 
     application.

     ``SEC. 513. APPLICATION AND DURATION.

       ``(a) Application.--Any eligible institution may apply for 
     a grant under this part by submitting an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require. Such application shall demonstrate how the grant 
     funds will be used to improve postbaccalaureate education 
     opportunities for Hispanic and low-income students and will 
     lead to such students' greater financial independence.
       ``(b) Duration.--Grants under this part shall be awarded 
     for a period not to exceed 5 years.
       ``(c) Limitation.--The Secretary may not award more than 1 
     grant under this part in any fiscal year to any Hispanic-
     serving institution.''.

     SEC. 505. APPLICATIONS.

       Section 521(b)(1)(A) (as redesignated by section 504(a)(2)) 
     (20 U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection 
     (b)'' and inserting ``subsection (c)''.

     SEC. 506. COOPERATIVE ARRANGEMENTS.

       Section 524(a) (as redesignated by section 504(a)(2)) (20 
     U.S.C. 1103c(a)) is amended by striking ``section 503'' and 
     inserting ``sections 503 and 512''.

     SEC. 507. AUTHORIZATION OF APPROPRIATIONS.

       Section 528(a) (as redesignated by section 504(a)(2)) (20 
     U.S.C. 1103g(a)) is amended--
       (1) by inserting ``part A of'' after ``carry out'';
       (2) by striking ``$62,500,000 for fiscal year 1999'' and 
     all that follows through the period and inserting ``such sums 
     as may be necessary for fiscal year 2006 and each of the 5 
     succeeding fiscal years.'';
       (3) by striking ``(a) Authorizations.--There are'' and 
     inserting the following:
       ``(a) Authorizations.--
       ``(1) Part a.--There are''; and
       (4) by adding at the end the following:
       ``(2) Part b.--There are authorized to be appropriated to 
     carry out part B of this title such sums as may be necessary 
     for fiscal year 2006 and each of the 5 succeeding fiscal 
     years.''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

     SEC. 601. FINDINGS.

       Section 601 (20 U.S.C. 1121) is amended--
       (1) in the section heading, by striking ``AND PURPOSES'' 
     and inserting ``; PURPOSES; CONSULTATION; SURVEY''
       (2) in subsection (a)(3), by striking ``post-Cold War'';
       (3) in subsection (b)(1)(D), by inserting ``, including 
     through linkages with overseas institutions'' before the 
     semicolon; and
       (4) by adding at the end the following:
       ``(c) Consultation.--The Secretary shall, prior to 
     requesting applications for funding under this title during 
     each grant cycle, consult with and receive recommendations 
     regarding national need for expertise in foreign languages 
     and world regions from the head official, or a designee of 
     such head official, of the National Security Council, the 
     Department of Homeland Security, the Department of Defense, 
     the Department of State, the Federal Bureau of Investigation, 
     the Department of Labor, and the Department of Commerce, and 
     the Director of National Intelligence. These entities shall 
     provide information to the Secretary regarding how they 
     utilize services provided by grantees under this title. The 
     Secretary shall take into account such recommendations and 
     information when requesting applications for funding under 
     this title, and shall make available to applicants a list of 
     areas identified as areas of national need.
       ``(d) Survey.--The Secretary shall assist grantees in 
     developing a survey to administer to students who have 
     participated in programs under this title to determine 
     postparticipation placement. All grantees, where applicable, 
     shall administer such survey not less often than annually and 
     report such data to the Secretary.''.

     SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA 
                   CENTERS AND PROGRAMS.

       Section 602 (20 U.S.C. 1122) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)--
       (i) in subparagraph (G), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (H), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(I) support for instructors of the less commonly taught 
     languages.''; and
       (B) in paragraph (4)--
       (i) by redesignating subparagraphs (C) through (E) as 
     subparagraphs (D) through (F), respectively;
       (ii) by inserting after subparagraph (B) the following:
       ``(C) Programs of linkage or outreach between or among--
       ``(i) foreign language, area studies, or other 
     international fields; and
       ``(ii) State educational agencies or local educational 
     agencies.''; and
       (iii) in subparagraph (F) (as redesignated by clause (i)), 
     by striking ``and (D)'' and inserting ``(D), and (E)'';
       (2) in subsection (b)--
       (A) in the subsection heading, by striking ``Graduate''; 
     and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Eligible students.--A student receiving a stipend 
     described in paragraph (1) shall be engaged--
       ``(A) in an instructional program with stated performance 
     goals for functional foreign language use or in a program 
     developing such performance goals, in combination with area 
     studies, international studies, or the international aspects 
     of a professional studies program; and
       ``(B)(i) in the case of an undergraduate student, in the 
     intermediate or advanced study of a less commonly taught 
     language; or
       ``(ii) in the case of a graduate student, in graduate study 
     in connection with a program described in subparagraph (A), 
     including--
       ``(I) predissertation level study;
       ``(II) preparation for dissertation research;
       ``(III) dissertation research abroad; or
       ``(IV) dissertation writing.'';
       (3) by striking subsection (d) and inserting the following:
       ``(d) Allowances.--
       ``(1) Graduate level recipients.--A stipend awarded to a 
     graduate level recipient may include allowances for 
     dependents and for travel for research and study in the 
     United States and abroad.
       ``(2) Undergraduate level recipients.--A stipend awarded to 
     an undergraduate level recipient may include an allowance for 
     educational programs in the United States or educational 
     programs abroad that--
       ``(A) are closely linked to the overall goals of the 
     recipient's course of study; and
       ``(B) have the purpose of promoting foreign language 
     fluency and knowledge of foreign cultures.''; and
       (4) by adding at the end the following:
       ``(e) Application.--Each institution or combination of 
     institutions desiring a grant under this section shall submit 
     an application to the Secretary at such time, in such manner, 
     and accompanied by such information and assurances as the 
     Secretary may require. Each application shall include an 
     explanation of how the activities funded by the grant will 
     reflect diverse and balanced perspectives and generate debate 
     on world regions and international affairs. Each application 
     shall also describe how the applicant will address disputes 
     regarding diversity and balance of activities funded under 
     the application. Each application shall also include a 
     description of how the applicant will encourage government 
     service in areas of national need as identified by the 
     Secretary.''.

     SEC. 603. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN 
                   LANGUAGE PROGRAMS.

       Section 604 (20 U.S.C. 1124) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)--
       (i) by redesignating subparagraphs (I) through (M) as 
     subparagraphs (J) through (N), respectively; and

[[Page S9680]]

       (ii) by inserting after subparagraph (H) the following:
       ``(I) providing subgrants to undergraduate students for 
     educational programs abroad that--
       ``(i) are closely linked to the overall goals of the 
     program for which the grant is awarded; and
       ``(ii) have the purpose of promoting foreign language 
     fluency and knowledge of foreign cultures;''; and
       (B) in paragraph (7)--
       (i) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (D), by striking the period at the end 
     and inserting a semicolon; and
       (iii) by adding at the end the following:
       ``(E) an explanation of how the activities funded by the 
     grant will reflect diverse and balanced perspectives and 
     generate debate on world regions and international affairs, 
     where applicable;
       ``(F) a description of how the applicant will address 
     disputes regarding diversity and balance of activities funded 
     under the application; and
       ``(G) a description of how the applicant will encourage 
     government service in areas of national need as identified by 
     the Secretary.''; and
       (2) in subsection (c)--
       (A) by striking ``Funding Support.--The Secretary'' and 
     inserting ``Funding Rules.--
       ``(1) The secretary.--The Secretary'';
       (B) by striking ``10'' and inserting ``20''; and
       (C) by adding at the end the following:
       ``(2) Grantees.--Of the total amount of grant funds awarded 
     to a grantee under this section, the grantee may use not more 
     than 10 percent of such funds for the activity described in 
     subsection (a)(2)(I).''.

     SEC. 604. RESEARCH; STUDIES.

       Section 605(a) (20 U.S.C. 1125(a)) is amended--
       (1) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(10) evaluation of the extent to which programs assisted 
     under this title reflect diverse and balanced perspectives 
     and generate debate on world regions and international 
     affairs;
       ``(11) the systematic collection, analysis, and 
     dissemination of data that contribute to achieving the 
     purposes of this part; and
       ``(12) support for programs or activities to make data 
     collected, analyzed, or disseminated under this section 
     publicly available and easy to understand.''.

     SEC. 605. TECHNOLOGICAL INNOVATION AND COOPERATION FOR 
                   FOREIGN INFORMATION ACCESS.

       Section 606 (20 U.S.C. 1126) is amended--
       (1) in subsection (a)--
       (A) by striking ``new electronic technologies'' and insert 
     ``electronic technologies'';
       (B) by inserting ``from foreign sources'' after 
     ``disseminate information'';
       (C) by striking ``Authority.--The Secretary'' and insert 
     ``Authority.--
       ``(1) In general.--The Secretary''; and
       (D) by adding at the end the following:
       ``(2) Partnerships with not-for-profit educational 
     organizations.--The Secretary may award grants under this 
     section to carry out the activities authorized under this 
     section to the following:
       ``(A) An institution of higher education.
       ``(B) A public or nonprofit private library.
       ``(C) A consortium of an institution of higher education 
     and 1 or more of the following:
       ``(i) Another institution of higher education.
       ``(ii) A library.
       ``(iii) A not-for-profit educational organization.'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``to facilitate access 
     to'' and inserting ``to acquire, facilitate access to,'';
       (B) in paragraph (2), by inserting ``or standards for'' 
     after ``means of'';
       (C) in paragraph (6), by striking ``and'' after the 
     semicolon;
       (D) in paragraph (7), by striking the period and inserting 
     a semicolon; and
       (E) by adding at the end the following:
       ``(8) to establish linkages to facilitate carrying out the 
     activities described in this subsection between--
       ``(A) the institutions of higher education, libraries, and 
     consortia receiving grants under this section; and
       ``(B) institutions of higher education, not-for-profit 
     educational organizations, and libraries overseas; and
       ``(9) to carry out other activities that the Secretary 
     determines are consistent with the purpose of the grants or 
     contracts awarded under this section.''; and
       (3) in subsection (c), by striking ``institution or 
     consortium'' and inserting ``institution of higher education, 
     library, or consortium''.

     SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.

       Section 607 (20 U.S.C. 1127) is amended--
       (1) in subsection (a), by striking ``evaluates the 
     applications for comprehensive and undergraduate language and 
     area centers and programs.'' and inserting ``evaluates--
       ``(1) the applications for comprehensive foreign language 
     and area or international studies centers and programs; and
       ``(2) the applications for undergraduate foreign language 
     and area or international studies centers and programs.''; 
     and
       (2) in subsection (b), by adding at the end the following: 
     ``The Secretary shall also consider an applicant's record of 
     sending students into public service and an applicant's 
     stated efforts to increase the number of students that go 
     into public service.''.

     SEC. 607. AMERICAN OVERSEAS RESEARCH CENTERS.

       Section 609 (20 U.S.C. 1128a) is amended by adding at the 
     end the following:
       ``(e) Application.--Each center desiring a grant under this 
     section shall submit an application to the Secretary at such 
     time, in such manner, and accompanied by such information and 
     assurances as the Secretary may require. Each application 
     shall include how the activities funded by the grant will 
     reflect diverse and balanced perspectives and generate debate 
     on world regions and international affairs, where applicable. 
     Each application shall also describe how the applicant will 
     address disputes regarding diversity and balance of 
     activities funded under the application.''.

     SEC. 608. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL 
                   AND FOREIGN LANGUAGE STUDIES.

       Section 610 (20 U.S.C. 1128b) is amended by striking 
     ``$80,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 609. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.

       Section 612(f) (20 U.S.C. 1130-1(f)) is amended--
       (1) in paragraph (3), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(5) assurances that activities funded by the grant will 
     reflect diverse and balanced perspectives and generate debate 
     on world regions and international affairs, where 
     applicable.''.

     SEC. 610. EDUCATION AND TRAINING PROGRAMS.

       Section 613(c) (20 U.S.C. 1130a(c)) is amended by adding at 
     the end the following: ``Each such application shall include 
     an assurance that, where applicable, the activities funded by 
     the grant will reflect diverse and balanced perspectives on 
     world regions and international affairs.''.

     SEC. 611. AUTHORIZATION OF APPROPRIATIONS FOR BUSINESS AND 
                   INTERNATIONAL EDUCATION PROGRAMS.

       Section 614 (20 U.S.C. 1130b) is amended--
       (1) in subsection (a), by striking ``$11,000,000 for fiscal 
     year 1999'' and all that follows through ``fiscal years'' and 
     inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years''; and
       (2) in subsection (b), by striking ``$7,000,000 for fiscal 
     year 1999'' and all that follows through ``fiscal years,'' 
     and inserting ``such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years''.

     SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT 
                   PROGRAM.

       Section 621 (20 U.S.C. 1131) is amended--
       (1) in subsection (c), by adding at the end the following: 
     ``Each application shall include a description of how the 
     activities funded by the grant will reflect diverse and 
     balanced perspectives on world regions and international 
     affairs, where applicable.''; and
       (2) in subsection (e)--
       (A) by striking ``Match Required.--The eligible'' and 
     inserting ``Matching Funds.--
       ``(1) In general.--Subject to paragraph (2), the 
     eligible''; and
       (B) by adding at the end the following:
       ``(2) Waiver.--The Secretary may waive the requirement of 
     paragraph (1) for an eligible recipient if the Secretary 
     determines such waiver is appropriate.''.

     SEC. 613. INSTITUTIONAL DEVELOPMENT.

       Section 622 (20 U.S.C. 1131-1) is amended--
       (1) in subsection (a)--
       (A) by striking ``Tribally Controlled Colleges or 
     Universities'' and inserting ``tribally controlled colleges 
     or universities''; and
       (B) by striking ``international affairs programs.'' and 
     inserting ``international affairs, international business, 
     and foreign language study programs, including the teaching 
     of foreign languages, at such colleges, universities, and 
     institutions, respectively, through increased collaboration 
     with institutions of higher education that receive funding 
     under this title.''; and
       (2) in subsection (c)--
       (A) by striking paragraphs (1) and (3); and
       (B) by redesignating paragraphs (2) and (4) as paragraphs 
     (1) and (2), respectively.

     SEC. 614. STUDY ABROAD PROGRAM.

       Section 623(a) (20 U.S.C. 1131a(a)) is amended--
       (1) by striking ``as defined in section 322 of this Act''; 
     and
       (2) by striking ``tribally controlled Indian community 
     colleges as defined in the Tribally Controlled Community 
     College Assistance Act of 1978'' and inserting ``tribally 
     controlled colleges or universities''.

     SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.

       Section 624 (20 U.S.C. 1131b) is amended--
       (1) in the section heading, by striking ``MASTERS'' and 
     inserting ``ADVANCED'';
       (2) in the first sentence, by inserting ``, and in 
     exceptional circumstances, a doctoral degree,'' after 
     ``masters degree'';
       (3) in the second sentence, by striking ``masters degree'' 
     and inserting ``advanced degree''; and

[[Page S9681]]

       (4) in the fourth sentence, by striking ``United States'' 
     and inserting ``United States.''.

     SEC. 616. INTERNSHIPS.

       Section 625 (20 U.S.C. 1131c) is amended--
       (1) in subsection (a)--
       (A) by striking ``as defined in section 322 of this Act'';
       (B) by striking ``tribally controlled Indian community 
     colleges as defined in the Tribally Controlled Community 
     College Assistance Act of 1978'' and inserting ``tribally 
     controlled colleges or universities'';
       (C) by striking ``an international'' and inserting 
     ``international,''; and
       (D) by striking ``the United States Information Agency'' 
     and inserting ``the Department of State''; and
       (2) in subsection (c)(1)--
       (A) in subparagraph (E), by inserting ``and'' after the 
     semicolon;
       (B) in subparagraph (F), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (G).

     SEC. 617. FINANCIAL ASSISTANCE.

       Part C of title VI (20 U.S.C. 1131 et seq.) is further 
     amended--
       (1) by redesignating sections 626, 627, and 628 as sections 
     627, 628, and 629, respectively; and
       (2) by inserting after section 625 the following:

     ``SEC. 626. FINANCIAL ASSISTANCE.

       ``(a) Authority.--The Institute may provide financial 
     assistance, in the form of summer stipends described in 
     subsection (b) and Ralph Bunche scholarship assistance 
     described in subsection (c), to needy students to facilitate 
     the participation of the students in the Institute's programs 
     under this part.
       ``(b) Summer Stipends.--
       ``(1) Requirements.--A student receiving a summer stipend 
     under this section shall use such stipend to defray the 
     student's cost of participation in a summer institute program 
     funded under this part, including the costs of travel, 
     living, and educational expenses necessary for the student's 
     participation in such program.
       ``(2) Amount.--A summer stipend awarded to a student under 
     this section shall not exceed $3,000 per summer.
       ``(c) Ralph Bunche Scholarship.--
       ``(1) Requirements.--A student receiving a Ralph Bunche 
     scholarship under this section--
       ``(A) shall be a full-time student at an institution of 
     higher education who is accepted into a program funded under 
     this part; and
       ``(B) shall use such scholarship to pay costs related to 
     the cost of attendance, as defined in section 472, at the 
     institution of higher education in which the student is 
     enrolled.
       ``(2) Amount and duration.--A Ralph Bunche scholarship 
     awarded to a student under this section shall not exceed 
     $5,000 per academic year.''.

     SEC. 618. REPORT.

       Section 627 (as redesignated by section 617(1)) (20 U.S.C. 
     1131d) is amended by striking ``annually'' and inserting 
     ``biennially''.

     SEC. 619. GIFTS AND DONATIONS.

       Section 628 (as redesignated by section 617(1)) (20 U.S.C. 
     1131e) is amended by striking ``annual report described in 
     section 626'' and inserting ``biennial report described in 
     section 627''.

     SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE 
                   FOR INTERNATIONAL PUBLIC POLICY.

       Section 629 (as redesignated by section 617(1)) (20 U.S.C. 
     1131f) is amended by striking ``$10,000,000 for fiscal year 
     1999'' and all that follows through the period and inserting 
     ``such sums as may be necessary for fiscal year 2006 and each 
     of the 5 succeeding fiscal years.''.

     SEC. 621. DEFINITIONS.

       Section 631 (20 U.S.C. 1132) is amended--
       (1) by redesignating paragraphs (2), (3), (4), (5), (6), 
     (7), (8), and (9), as paragraphs (8), (5), (9), (2), (11), 
     (3), (7), and (4), respectively;
       (2) in paragraph (2), as redesignated by paragraph (1), by 
     striking ``comprehensive language and area center'' and 
     inserting ``comprehensive foreign language and area or 
     international studies center'';
       (3) in paragraph (11), as redesignated by paragraph (1), by 
     striking ``undergraduate language and area center'' and 
     inserting ``undergraduate foreign language and area or 
     international studies center'';
       (4) in paragraph (3), as redesignated by paragraph (1), by 
     striking the first occurrence of the term ``critical 
     languages'' and inserting ``critical foreign languages'';
       (5) in paragraph (7), as redesignated by paragraph (1), by 
     striking ``and'' after the semicolon;
       (6) in paragraph (4), as redesignated by paragraph (1), by 
     striking the period at the end and inserting a semicolon;
       (7) by inserting after paragraph (5), as redesignated by 
     paragraph (1), the following:
       ``(6) the term `historically Black college and university' 
     has the meaning given the term `part B institution' in 
     section 322;''; and
       (8) by inserting after paragraph (9), as redesignated by 
     paragraph (1), the following:
       ``(10) the term `tribally controlled college or university' 
     has the meaning given the term in section 2 of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801); and''.

     SEC. 622. ASSESSMENT AND ENFORCEMENT.

       Part D of title VI (20 U.S.C. 1132) is amended by adding at 
     the end the following:

     ``SEC. 632. ASSESSMENT; ENFORCEMENT; RULE OF CONSTRUCTION.

       ``(a) In General.--The Secretary is authorized to assess 
     and ensure compliance with all the conditions and terms of 
     grants provided under this title. If a complaint regarding 
     activities funded under this title is not resolved under the 
     process outlined in the relevant grantee's application, and 
     such complaint is filed with the Department, the Secretary 
     shall be notified, and is authorized, when circumstances 
     warrant, to immediately suspend future funding for the grant 
     pending resolution of such dispute. Such resolution shall not 
     exceed 60 days. The Secretary shall take the outcomes of such 
     complaints into account when determining the renewal of 
     grants.
       ``(b) Rule of Construction.--Nothing in this title shall be 
     construed to authorize the Secretary to mandate, direct, or 
     control an institution of higher education's specific 
     instructional content, curriculum, or program of instruction.

     ``SEC. 633. EVALUATION, OUTREACH, AND INFORMATION.

       ``The Secretary may use not more than 1 percent of the 
     funds made available under this title to carry out program 
     evaluation, national outreach, and information dissemination 
     activities relating to the programs authorized under this 
     title.''.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

     SEC. 701. PURPOSE.

       Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended 
     by inserting ``, including those areas critical to United 
     States national and homeland security needs such as 
     mathematics, science, and engineering'' before the semicolon 
     at the end.

     SEC. 702. ALLOCATION OF JACOB K. JAVITS FELLOWSHIPS.

       Section 702(a)(1) (20 U.S.C. 1134a(a)(1)) is amended to 
     read as follows:
       ``(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 institutions, 
     as defined in section 365.''.

     SEC. 703. STIPENDS.

       Section 703(a) (20 U.S.C. 1134b(a)) is amended by striking 
     ``graduate fellowships'' and inserting ``Graduate Research 
     Fellowship Program''.

     SEC. 704. AUTHORIZATION OF APPROPRIATIONS FOR THE JACOB K. 
                   JAVITS FELLOWSHIP PROGRAM.

       Section 705 (20 U.S.C. 1134d) is amended by striking 
     ``$30,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years to carry out this subpart.''.

     SEC. 705. INSTITUTIONAL ELIGIBILITY UNDER THE GRADUATE 
                   ASSISTANCE IN AREAS OF NATIONAL NEED PROGRAM.

       Section 712(b) (20 U.S.C. 1135a(b)) is amended to read as 
     follows:
       ``(b) Designation of Areas of National Need.--After 
     consultation with appropriate Federal and nonprofit agencies 
     and organizations, including the National Science Foundation, 
     the Department of Defense, the Department of Homeland 
     Security, the National Academy of Sciences, and the Bureau of 
     Labor Statistics, the Secretary shall designate areas of 
     national need. In making such designations, the Secretary 
     shall take into consideration--
       ``(1) the extent to which the interest in the area is 
     compelling;
       ``(2) the extent to which other Federal programs support 
     postbaccalaureate study in the area concerned;
       ``(3) an assessment of how the program may achieve the most 
     significant impact with available resources; and
       ``(4) an assessment of current and future professional 
     workforce needs of the United States.''.

     SEC. 706. AWARDS TO GRADUATE STUDENTS.

       Section 714 (20 U.S.C. 1135c) is amended--
       (1) in subsection (b)--
       (A) by striking ``1999-2000'' and inserting ``2006-2007''; 
     and
       (B) by striking ``graduate fellowships'' and inserting 
     ``Graduate Research Fellowship Program''; and
       (2) in subsection (c)--
       (A) by striking ``716(a)'' and inserting ``715(a)''; and
       (B) by striking ``714(b)(2)'' and inserting ``713(b)(2)''.

     SEC. 707. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION.

       Section 715(a)(1) (20 U.S.C. 1135d(a)(1)) is amended--
       (1) by striking ``1999-2000'' and inserting ``2006-2007''; 
     and
       (2) by striking ``1998-1999'' and inserting ``2005-2006''.

[[Page S9682]]

     SEC. 708. AUTHORIZATION OF APPROPRIATIONS FOR THE GRADUATE 
                   ASSISTANCE IN AREAS OF NATIONAL NEED PROGRAM.

       Section 716 (20 U.S.C. 1135e) is amended by striking 
     ``$35,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years to carry out this subpart.''.

     SEC. 709. AUTHORIZATION OF APPROPRIATIONS FOR THE THURGOOD 
                   MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

       Section 721(h) (20 U.S.C. 1136(h)) is amended by striking 
     ``$5,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 710. FUND FOR THE IMPROVEMENT OF POSTSECONDARY 
                   EDUCATION.

       Section 741(a) (20 U.S.C. 1138(a)) is amended--
       (1) by striking paragraph (3) and inserting the following:
       ``(3) the establishment and continuation of institutions, 
     programs, consortia, collaborations, and other joint efforts 
     based on the technology of communications, including those 
     efforts that utilize distance education and technological 
     advancements to educate and train postsecondary students 
     (including health professionals serving medically underserved 
     populations);'';
       (2) in paragraph (7), by striking ``and'' after the 
     semicolon;
       (3) in paragraph (8), by striking the period at the end and 
     inserting a semicolon; and
       (4) by adding at the end the following:
       ``(9) the introduction of reforms in remedial education, 
     including English language instruction, to customize remedial 
     courses to student goals and help students progress rapidly 
     from remedial courses into core courses and through program 
     completion; and
       ``(10) the creation of consortia that join diverse 
     institutions of higher education for the purpose of 
     integrating curricular and co-curricular interdisciplinary 
     study.''.

     SEC. 711. SPECIAL PROJECTS.

       Section 744(c) (20 U.S.C. 1138c) is amended to read as 
     follows:
       ``(c) Areas of National Need.--Areas of national need shall 
     include, at a minimum, the following:
       ``(1) Institutional restructuring to improve learning and 
     promote productivity, efficiency, quality improvement, and 
     cost and price control.
       ``(2) Improvements in academic instruction and student 
     learning, including efforts designed to assess the learning 
     gains made by postsecondary students.
       ``(3) Articulation between 2- and 4-year institutions of 
     higher education, including developing innovative methods for 
     ensuring the successful transfer of students from 2- to 4-
     year institutions of higher education.
       ``(4) Development, evaluation and dissemination of model 
     programs, including model core curricula that--
       ``(A) provide students with a broad and integrated 
     knowledge base;
       ``(B) include, at a minimum, broad survey courses in 
     English literature, American and world history, American 
     political institutions, economics, philosophy, college-level 
     mathematics, and the natural sciences; and
       ``(C) include sufficient study of a foreign language to 
     lead to reading and writing competency in the foreign 
     language.
       ``(5) International cooperation and student exchanges among 
     postsecondary educational institutions.''.

     SEC. 712. AUTHORIZATION OF APPROPRIATIONS FOR THE FUND FOR 
                   THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

       Section 745 (20 U.S.C. 1138d) is amended by striking 
     ``$30,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 713. AUTHORIZATION OF APPROPRIATIONS FOR THE URBAN 
                   COMMUNITY SERVICE PROGRAM.

       Section 759 (20 U.S.C. 1139h) is amended by striking 
     ``$20,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years to carry out this part.''.

     SEC. 714. GRANTS AUTHORIZED FOR DEMONSTRATION PROJECTS TO 
                   ENSURE STUDENTS WITH DISABILITIES RECEIVE A 
                   QUALITY HIGHER EDUCATION.

       Section 762 (20 U.S.C. 1140a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by striking ``to teach students 
     with disabilities'' and inserting ``to teach and meet the 
     academic and programmatic needs of students with disabilities 
     in order to improve retention and completion of postsecondary 
     education'';
       (ii) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (F), respectively;
       (iii) by inserting after subparagraph (A) the following:
       ``(B) Effective transition practices.--The development of 
     innovative and effective teaching methods and strategies to 
     ensure the successful transition of students with 
     disabilities from secondary school to postsecondary 
     education.'';
       (iv) in subparagraph (C), as redesignated by clause (ii), 
     by striking the period at the end and inserting ``, including 
     data on the postsecondary education of and impact on 
     subsequent employment of students with disabilities. Such 
     research, information, and data shall be made publicly 
     available and accessible.'';
       (v) by inserting after subparagraph (C), as redesignated by 
     clause (ii), the following:
       ``(D) Distance learning.--The development of innovative and 
     effective teaching methods and strategies to provide faculty 
     and administrators with the ability to provide accessible 
     distance education programs or classes that would enhance 
     access of students with disabilities to higher education, 
     including the use of accessible curriculum and electronic 
     communication for instruction and advisement.
       ``(E) Disability career pathways.--Training and providing 
     support to secondary and postsecondary staff to encourage 
     interest in, enhance awareness and understanding of, provide 
     educational opportunities in, teach practical skills related 
     to, and offer work-based opportunities in, disability related 
     fields, among students, including students with disabilities. 
     Such training and support may include developing means to 
     offer students credit-bearing, college-level coursework, and 
     career and educational counseling.''; and
       (vi) by adding at the end the following:
       ``(G) Accessibility of education.--Making postsecondary 
     education more accessible to students with disabilities 
     through curriculum development.''; and
       (B) in paragraph (3), by striking ``subparagraphs (A) 
     through (C)'' and inserting ``subparagraphs (A) through 
     (G)''; and
       (2) by adding at the end the following:
       ``(d) Report.--The Secretary shall prepare and disseminate 
     a report reviewing the activities of the demonstration 
     projects authorized under this part and providing guidance 
     and recommendations on how successful projects can be 
     replicated.''.

     SEC. 715. APPLICATIONS FOR DEMONSTRATION PROJECTS TO ENSURE 
                   STUDENTS WITH DISABILITIES RECEIVE A QUALITY 
                   HIGHER EDUCATION.

       Section 763 (20 U.S.C. 1140b) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) a description of how such institution plans to 
     address the activities allowed under this part;'';
       (2) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (3) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(4) a description of the extent to which the institution 
     will work to replicate the research based and best practices 
     of institutions of higher education with demonstrated success 
     in serving students with disabilities.''.

     SEC. 716. AUTHORIZATION OF APPROPRIATIONS FOR THE 
                   DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH 
                   DISABILITIES RECEIVE A QUALITY HIGHER 
                   EDUCATION.

       Section 765 (20 U.S.C. 1140d) is amended by striking 
     ``$10,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.''.

                       TITLE VIII--MISCELLANEOUS

     SEC. 801. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.

       The Act (20 U.S.C. 1001 et seq.) is amended by adding at 
     the end the following:

                      ``TITLE VIII--MISCELLANEOUS

           ``PART A--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

     ``SEC. 811. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.

       ``(a) Program Authorized.--The Secretary is authorized to 
     award grants to States, on a competitive basis, to enable the 
     States to award eligible students, who complete a rigorous 
     secondary school curriculum in mathematics and science, 
     scholarships for undergraduate study.
       ``(b) Eligible Students.--A student is eligible for a 
     scholarship under this section if the student is a full-time 
     undergraduate student in the student's first and second year 
     of study who has completed a rigorous secondary school 
     curriculum in mathematics and science.
       ``(c) Rigorous Curriculum.--Each participating State shall 
     determine the requirements for a rigorous secondary school 
     curriculum in mathematics and science described in subsection 
     (b).
       ``(d) Priority for Scholarships.--The Governor of a State 
     may set a priority for awarding scholarships under this 
     section for particular eligible students, such as students 
     attending schools in high-need areas, students who are from 
     groups underrepresented in the fields of mathematics, 
     science, and engineering, students served by local 
     educational agencies that do not meet or exceed State 
     standards in mathematics and science, or students with 
     regional or geographic needs as determined appropriate by the 
     Governor.
       ``(e) Amount and Duration of Scholarship.--The Secretary 
     shall award a grant under this section--
       ``(1) in an amount that does not exceed $1,000; and
       ``(2) for not more than 2 years of undergraduate study.
       ``(f) Matching Requirement.--In order to receive a grant 
     under this section, a State

[[Page S9683]]

     shall provide matching funds for the scholarships awarded 
     under this section in an amount equal to 50 percent of the 
     Federal funds received.
       ``(g) Authorization.--There are authorized to be 
     appropriated to carry out this section such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.

              ``PART B--POSTSECONDARY EDUCATION ASSESSMENT

     ``SEC. 821. POSTSECONDARY EDUCATION ASSESSMENT.

       ``(a) Contract for Assessment.--The Secretary shall enter 
     into a contract, with an independent, bipartisan organization 
     with specific expertise in public administration and 
     financial management, to carry out an independent assessment 
     of the cost factors associated with the cost of tuition at 
     institutions of higher education.
       ``(b) Timeframe.--The Secretary shall enter into the 
     contract described in subsection (a) not later than 90 days 
     after the date of enactment of the Higher Education 
     Amendments of 2005.
       ``(c) Matters Assessed.--The assessment described in 
     subsection (a) shall--
       ``(1) examine the key elements driving the cost factors 
     associated with the cost of tuition at institutions of higher 
     education during academic year 2000 and succeeding academic 
     years;
       ``(2) identify and evaluate measures being used to control 
     postsecondary education costs;
       ``(3) identify and evaluate effective measures that may be 
     utilized to control postsecondary education costs in the 
     future; and
       ``(4) identify systemic approaches to monitor future 
     postsecondary education costs trends and postsecondary 
     education cost control mechanisms.

 ``PART C--JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR INDUSTRIES

     ``SEC. 831. JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR 
                   INDUSTRIES.

       ``(a) Grants Authorized.--The Secretary is authorized to 
     award grants, on a competitive basis, to eligible 
     partnerships to enable the eligible partnerships to provide 
     relevant job skill training in high-growth industries or 
     occupations.
       ``(b) Definitions.--In this section:
       ``(1) Eligible partnership.--The term `eligible 
     partnership' means a partnership--
       ``(A) between an institution of higher education and a 
     local board (as such term is defined in section 101 of the 
     Workforce Investment Act of 1998); or
       ``(B) if an institution of higher education is located 
     within a State that does not operate local boards, between 
     the institution of higher education and a State board (as 
     such term is defined in section 101 of the Workforce 
     Investment Act of 1998).
       ``(2) Nontraditional student.--The term `nontraditional 
     student' means a student who--
       ``(A) is independent, as defined in section 480(d);
       ``(B) attends an institution of higher education--
       ``(i) on less than a full-time basis;
       ``(ii) via evening, weekend, modular, or compressed 
     courses; or
       ``(iii) via distance learning methods; or
       ``(C) has delayed enrollment at an institution of higher 
     education.
       ``(3) Institution of higher education.--The term 
     `institution of higher education' means an institution of 
     higher education, as defined in section 101(b), that offers a 
     1- or 2-year program of study leading to a degree or 
     certificate.
       ``(c) Application.--
       ``(1) In general.--Each eligible partnership that desires a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such additional information as the Secretary may require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall include a description of--
       ``(A) how the eligible partnership, through the institution 
     of higher education, will provide relevant job skill training 
     for students to enter high-growth occupations or industries;
       ``(B) local high-growth occupations or industries; and
       ``(C) the need for qualified workers to meet the local 
     demand of high-growth occupations or industries.
       ``(d) Award Basis.--In awarding grants under this section, 
     the Secretary shall--
       ``(1) ensure an equitable distribution of grant funds under 
     this section among urban and rural areas of the United 
     States; and
       ``(2) take into consideration the capability of the 
     institution of higher education--
       ``(A) to offer relevant, high quality instruction and job 
     skill training for students entering a high-growth occupation 
     or industry;
       ``(B) to involve the local business community and to place 
     graduates in the community in employment in high-growth 
     occupations or industries;
       ``(C) to provide secondary students with dual-enrollment or 
     concurrent enrollment options;
       ``(D) to serve nontraditional or low-income students, or 
     adult or displaced workers; and
       ``(E) to serve students from rural or remote communities.
       ``(e) Use of Funds.--Grant funds provided under this 
     section may be used--
       ``(1) to expand or create academic programs or programs of 
     training that provide relevant job skill training for high-
     growth occupations or industries;
       ``(2) to purchase equipment which will facilitate the 
     development of academic programs or programs of training that 
     provide training for high-growth occupations or industries;
       ``(3) to support outreach efforts that enable students to 
     attend institutions of higher education with academic 
     programs or programs of training focused on high-growth 
     occupations or industries;
       ``(4) to expand or create programs for distance, evening, 
     weekend, modular, or compressed learning opportunities that 
     provide relevant job skill training in high-growth 
     occupations or industries;
       ``(5) to build partnerships with local businesses in high-
     growth occupations or industries;
       ``(6) to support curriculum development related to 
     entrepreneurial training; and
       ``(7) for other uses that the Secretary determines to be 
     consistent with the intent of this section.
       ``(f) Requirements.--
       ``(1) Fiscal agent.--For the purpose of this section, the 
     institution of higher education in an eligible partnership 
     shall serve as the fiscal agent and grant recipient for the 
     eligible partnership.
       ``(2) Duration.--The Secretary shall award grants under 
     this section for periods that may not exceed 5 years.
       ``(3) Supplement, not supplant.--Funds made available under 
     this section shall be used to supplement and not supplant 
     other Federal, State, and local funds available to the 
     eligible partnership for carrying out the activities 
     described in subsection (e).
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this part such 
     sums as may be necessary for fiscal year 2006 and each of the 
     5 succeeding fiscal years.

   ``PART D--GRANT PROGRAM TO INCREASE STUDENT RETENTION AND PROMOTE 
                        ARTICULATION AGREEMENTS

     ``SEC. 841. GRANT PROGRAM TO INCREASE STUDENT RETENTION AND 
                   PROMOTE ARTICULATION AGREEMENTS.

       ``(a) Authorization of Program.--The Secretary shall award 
     grants, on a competitive basis, to eligible institutions to 
     enable the institutions to--
       ``(1) focus on increasing traditional and nontraditional 
     student retention at such institutions; and
       ``(2) promote articulation agreements among different 
     institutions that will increase the likelihood of progression 
     of students at such institutions to baccalaureate degrees.
       ``(b) Definition of Eligible Institution.--In this section, 
     the term `eligible institution' means an institution of 
     higher education (as defined in section 101(a)) where not 
     less than 40 percent of such institution's student body 
     receives financial aid under subpart 1 of part A of title IV.
       ``(c) Application.--An eligible institution 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, including the 
     number of students proposed to be served and a description of 
     the services that will be provided.
       ``(d) Mandatory Activities.--An eligible institution that 
     receives a grant under this section shall use the grant funds 
     to carry out each of the following:
       ``(1) Offering counseling and advisement services to help 
     students adapt to postsecondary education and select 
     appropriate coursework.
       ``(2) Making mentors available to students who are at risk 
     for not completing a degree.
       ``(3) Providing detailed assistance to students who request 
     help in understanding--
       ``(A) the options for financing their education, including 
     information on grants, loans, and loan repayment programs;
       ``(B) the process of applying for financial assistance;
       ``(C) the outcome of their financial assistance 
     application; and
       ``(D) any unanticipated problems related to financing their 
     education that arise.
       ``(4) Offering tutoring to students at risk of dropping out 
     of school with any course or subject.
       ``(5) Designing and implementing innovative ways to improve 
     retention in and completion of courses, such as enrolling 
     students in cohorts, providing counseling, or creating bridge 
     programs that customize courses to the needs of special 
     population students.
       ``(6) Conducting outreach activities so that all students 
     know that these services are available and are aware of how 
     to access the services.
       ``(7) Creating articulation agreements to promote smooth 
     transition from two year to four year programs.
       ``(8) Making services listed in paragraphs (1) through (5) 
     available in students' native languages, if it is not 
     English, if the percentage of students needing translation 
     services in a specific language exceeds 5 percent.
       ``(e) Permissible Activities.--An eligible institution that 
     receives a grant under this section may use grant funds to 
     carry out any of the following activities:
       ``(1) Designing innovative course schedules to meet the 
     needs of working adults, such as online, modular, compressed, 
     or other alternative methods.
       ``(2) Offering childcare during the hours when students 
     have class or are studying.
       ``(3) Providing transportation assistance to students that 
     helps such students manage their schedules.

[[Page S9684]]

       ``(4) Partnering with local businesses to create flexible 
     work-hour programs so that students can balance work and 
     school.
       ``(5) Offering time management or financial literacy 
     seminars to help students improve their management skills.
       ``(6) Improving professional development to align 
     instruction with innovative program designs.
       ``(7) Any other activities the Secretary believes will 
     promote retention of students attending eligible 
     institutions.
       ``(f) Technical Assistance.--The Secretary may enter into a 
     contract with a private entity to provide such technical 
     assistance to grantees under this section as the Secretary 
     determines appropriate.
       ``(g) Evaluation.--The Secretary shall conduct an 
     evaluation of program impacts under the demonstration 
     program, and shall disseminate to the public the findings 
     from the evaluation and information on best practices.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this and such sums as may be 
     necessary for fiscal year 2006 and each of the 5 succeeding 
     fiscal years.

                 ``PART E--AMERICAN HISTORY FOR FREEDOM

     ``SEC. 851. AMERICAN HISTORY FOR FREEDOM.

       ``(a) Grants Authorized.--The Secretary is authorized to 
     award 3-year grants, on a competitive basis, to eligible 
     institutions to establish or strengthen postsecondary 
     academic programs or centers that promote and impart 
     knowledge of--
       ``(1) traditional American history;
       ``(2) the history and nature of, and threats to, free 
     institutions; or
       ``(3) the history and achievements of Western civilization.
       ``(b) Definitions.--In this section:
       ``(1) Eligible institution.--The term `eligible 
     institution' means an institution of higher education as 
     defined in section 101.
       ``(2) Free institution.--The term `free institution' means 
     an institution that emerged out of Western civilization, such 
     as democracy, constitutional government, individual rights, 
     market economics, religious freedom and religious tolerance, 
     and freedom of thought and inquiry.
       ``(3) Traditional american history.--The term `traditional 
     American history' means--
       ``(A) the significant constitutional, political, 
     intellectual, economic, and foreign policy trends and issues 
     that have shaped the course of American history; and
       ``(B) the key episodes, turning points, and leading figures 
     involved in the constitutional, political, intellectual, 
     diplomatic, and economic history of the United States.
       ``(c) Application.--
       ``(1) In general.--Each eligible institution that desires a 
     grant under this part shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such additional information as the Secretary may require.
       ``(2) Contents.--Each application submitted under 
     subsection (a) shall include a description of --
       ``(A) how funds made available under this part will be used 
     for the activities set forth under subsection (e), including 
     how such activities will increase knowledge with respect to 
     traditional American history, free institutions, or Western 
     civilization;
       ``(B) how the eligible institution will ensure that 
     information about the activities funded under this part is 
     widely disseminated pursuant to subsection (e)(1)(B);
       ``(C) any activities to be undertaken pursuant to 
     subsection (e)(2)(A), including identification of entities 
     intended to participate;
       ``(D) how funds made available under this part shall be 
     used to supplement and not supplant non-Federal funds 
     available for the activities described in subsection (e); and
       ``(E) such fiscal controls and accounting procedures as may 
     be necessary to ensure proper disbursement of and accounting 
     for funding made available to the eligible institution under 
     this part.
       ``(d) Award Basis.--In awarding grants under this part, the 
     Secretary shall take into consideration the capability of the 
     eligible institution to--
       ``(1) increase access to quality programming that expands 
     knowledge of traditional American history, free institutions, 
     or Western civilization;
       ``(2) involve personnel with strong expertise in 
     traditional American history, free institutions, or Western 
     civilization; and
       ``(3) sustain the activities funded under this part after 
     the grant has expired.
       ``(e) Use of Funds.--
       ``(1) Required use of funds.--Funds provided under this 
     part shall be used to--
       ``(A) establish or strengthen academic programs or centers 
     focused on traditional American history, free institutions, 
     or Western civilization, which may include--
       ``(i) design and implementation of programs of study, 
     courses, lecture series, seminars, and symposia;
       ``(ii) development, publication, and dissemination of 
     instructional materials;
       ``(iii) research;
       ``(iv) support for faculty teaching in undergraduate and, 
     if applicable, graduate programs;
       ``(v) support for graduate and postgraduate fellowships, if 
     applicable; or
       ``(vi) teacher preparation initiatives that stress content 
     mastery regarding traditional American history, free 
     institutions, or Western civilization; and
       ``(B) conduct outreach activities to ensure that 
     information about the activities funded under this part is 
     widely disseminated--
       ``(i) to undergraduate students (including students 
     enrolled in teacher education programs, if applicable);
       ``(ii) to graduate students (including students enrolled in 
     teacher education programs), if applicable;
       ``(iii) to faculty;
       ``(iv) to local educational agencies; and
       ``(v) within the local community.
       ``(2) Allowable uses of funds.--Funds provided under this 
     part may be used to support--
       ``(A) collaboration with entities such as--
       ``(i) local educational agencies, for the purpose of 
     providing elementary, middle and secondary school teachers an 
     opportunity to enhance their knowledge of traditional 
     American history, free institutions, or Western civilization; 
     and
       ``(ii) nonprofit organizations whose mission is consistent 
     with the purpose of this part, such as academic 
     organizations, museums, and libraries, for assistance in 
     carrying out activities described under subsection (a); and
       ``(B) other activities that meet the purposes of this part.
       ``(f) Authorization of Appropriations.--For the purpose of 
     carrying out this part, there are authorized to be 
     appropriated such sums as may be necessary for fiscal year 
     2006 and each of the 5 succeeding fiscal years.

                      ``PART F--TEACH FOR AMERICA

     ``SEC. 861. TEACH FOR AMERICA.

       ``(a) Definitions.--
       ``(1) In general.--The terms `highly qualified', `local 
     educational agency', and `Secretary' have the meanings given 
     the terms in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801).
       ``(2) Grantee.--The term `grantee' means Teach For America, 
     Inc.
       ``(3) High need.--The term `high need', when used with 
     respect to a local educational agency, means a local 
     educational agency experiencing a shortage of highly 
     qualified teachers.
       ``(b) Grants Authorized.--The Secretary is authorized to 
     award a grant to Teach For America, Inc., the national 
     teacher corps of outstanding recent college graduates who 
     commit to teach for 2 years in underserved communities in the 
     United States, to implement and expand its program of 
     recruiting, selecting, training, and supporting new teachers.
       ``(c) Requirements.--In carrying out the grant program 
     under subsection (b), the Secretary shall enter into an 
     agreement with the grantee under which the grantee agrees to 
     use the grant funds provided under this section--
       ``(1) to provide highly qualified teachers to high need 
     local educational agencies in urban and rural communities;
       ``(2) to pay the cost of recruiting, selecting, training, 
     and supporting new teachers; and
       ``(3) to serve a substantial number and percentage of 
     underserved students.
       ``(d) Authorized Activities.--
       ``(1) In general.--Grant funds provided under this section 
     shall be used by the grantee to carry out each of the 
     following activities:
       ``(A) Recruiting and selecting teachers through a highly 
     selective national process.
       ``(B) Providing preservice training to the teachers through 
     a rigorous summer institute that includes hands-on teaching 
     experience and significant exposure to education coursework 
     and theory.
       ``(C) Placing the teachers in schools and positions 
     designated by partner local educational agencies as high need 
     placements serving underserved students.
       ``(D) Providing ongoing professional development activities 
     for the teachers' first 2 years in the classroom, including 
     regular classroom observations and feedback, and ongoing 
     training and support.
       ``(2) Limitation.--The grantee shall use all grant funds 
     received under this section to support activities related 
     directly to the recruitment, selection, training, and support 
     of teachers as described in subsection (a).
       ``(e) Reports and Evaluations.--
       ``(1) Annual report.--The grantee shall provide to the 
     Secretary an annual report that includes--
       ``(A) data on the number and quality of the teachers 
     provided to local educational agencies through a grant under 
     this section;
       ``(B) an externally conducted analysis of the satisfaction 
     of local educational agencies and principals with the 
     teachers so provided; and
       ``(C) comprehensive data on the background of the teachers 
     chosen, the training the teachers received, the placement 
     sites of the teachers, the professional development of the 
     teachers, and the retention of the teachers.
       ``(2) Study.--
       ``(A) In general.--From funds appropriated under subsection 
     (f), the Secretary shall provide for a study that examines 
     the achievement levels of the students taught by the teachers 
     assisted under this section.
       ``(B) Achievement gains compared.--The study shall compare, 
     within the same schools, the achievement gains made by 
     students taught by teachers who are assisted under this 
     section with the achievement gains made by students taught by 
     teachers who are not assisted under this section.
       ``(3) Requirements.--The Secretary shall provide for such a 
     study not less than once every 3 years, and each such study 
     shall include multiple placement sites and multiple schools 
     within placement sites.

[[Page S9685]]

       ``(4) Peer review standards.--Each such study shall meet 
     the peer review standards of the education research 
     community.
       ``(f) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section such sums as may be necessary for 
     fiscal year 2006 and each of the 5 succeeding fiscal years.
       ``(2) Limitation.--The grantee shall not use more than 25 
     percent of Federal funds from any source for administrative 
     costs.

               ``PART G--PATSY T. MINK FELLOWSHIP PROGRAM

     ``SEC. 1. PATSY T. MINK FELLOWSHIP PROGRAM.

       ``(a) Purpose.--
       ``(1) In general.--It is the purpose of this section 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.
       ``(2) Designation.--Each recipient of a fellowship award 
     from an eligible institution receiving a grant under this 
     section shall be known as a `Patsy T. Mink Graduate Fellow'.
       ``(b) Definitions.--In this section, 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.
       ``(c) Program Authorized.--
       ``(1) Grants by secretary.--
       ``(A) 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 section.
       ``(B) Priority consideration.--In awarding grants under 
     this section, 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 section to those eligible 
     institutions with a demonstrated record of producing 
     minorities and women who have earned such degrees.
       ``(2) Applications.--
       ``(A) In general.--An eligible institution 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.
       ``(B) Applications made on behalf.--
       ``(i) 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.

       ``(ii) Nonprofit organizations.--Nothing in this paragraph 
     shall be construed to permit the Secretary to award a grant 
     under this section to an entity other than an eligible 
     institution.
       ``(3) Selection of applications.--In awarding grants under 
     subsection (a), the Secretary shall--
       ``(A) take into account--
       ``(i) the number and distribution of minority and female 
     faculty nationally;
       ``(ii) the current and projected need for highly trained 
     individuals in all areas of the higher education 
     professoriate; and
       ``(iii) 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
       ``(B) 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, such as mathematics, science, 
     technology, and engineering.
       ``(4) Distribution and amounts of grants.--
       ``(A) Equitable distribution.--In awarding grants under 
     this section, 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 section and that demonstrate an ability to achieve the 
     purpose of this section.
       ``(B) Special rule.--To the maximum extent practicable, the 
     Secretary shall use not less than 30 percent of the amount 
     appropriated pursuant to subsection (f) to award grants to 
     eligible institutions that--
       ``(i) are eligible for assistance under title III or title 
     V; or
       ``(ii) have formed a consortium that includes both non-
     minority serving institutions and minority serving 
     institutions.
       ``(C) Allocation.--In awarding grants under this section, 
     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 section.
       ``(D) Number of fellowship awards.--An eligible institution 
     that receives a grant under this section shall make not less 
     than 15 fellowship awards.
       ``(E) Reallotment.--If the Secretary determines that an 
     eligible institution awarded a grant under this section 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 section.
       ``(5) Institutional allowance.--
       ``(A) In general.--
       ``(i) Number of allowances.--In awarding grants under this 
     section, the Secretary shall pay to each eligible institution 
     awarded a grant, for each individual awarded a fellowship by 
     such institution under this section, an institutional 
     allowance.
       ``(ii) 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.
       ``(B) 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.
       ``(C) 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.
       ``(D) Use for overhead prohibited.--Funds made available 
     under this section may not be used for general operational 
     overhead of the academic department or institution receiving 
     funds under this section.
       ``(d) Fellowship Recipients.--
       ``(1) Authorization.--An eligible institution that receives 
     a grant under this section 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--
       ``(A) intend to pursue a career in instruction at--
       ``(i) an institution of higher education (as the term is 
     defined in section 101);
       ``(ii) an institution of higher education (as the term is 
     defined in section 102(a)(1));
       ``(iii) an institution of higher education outside the 
     United States (as the term is described in section 
     102(a)(2)); or
       ``(iv) a proprietary institution of higher education (as 
     the term is defined in section 102(b)); and
       ``(B) sign an agreement with the Secretary agreeing--
       ``(i) to begin employment at an institution described in 
     paragraph (1) not later than 3 years after receiving the 
     doctoral degree or highest possible degree available, which 
     3-year period may be extended by the Secretary for 
     extraordinary circumstances; and
       ``(ii) to be employed by such institution for 1 year for 
     each year of fellowship assistance received under this 
     section.
       ``(2) Failure to comply.--If an individual who receives a 
     fellowship award under this section fails to comply with the 
     agreement signed pursuant to subsection (a)(2), then the 
     Secretary shall do 1 or both of the following:
       ``(A) 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.
       ``(B) Impose a fine or penalty in an amount to be 
     determined by the Secretary.
       ``(3) Waiver and modification.--
       ``(A) Regulations.--The Secretary shall promulgate 
     regulations setting forth criteria to be considered in 
     granting a waiver for the service requirement under 
     subsection (a)(2).
       ``(B) Content.--The criteria under paragraph (1) shall 
     include whether compliance with the service requirement by 
     the fellowship recipient would be--
       ``(i) inequitable and represent an extraordinary hardship; 
     or
       ``(ii) deemed impossible because the individual is 
     permanently and totally disabled at the time of the waiver 
     request.
       ``(4) Amount of fellowship awards.--Fellowship awards under 
     this section 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.
       ``(5) Academic progress required.--An individual student 
     shall not be eligible to receive a fellowship award--
       ``(A) 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

[[Page S9686]]

       ``(B) 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.
       ``(e) Rule of Construction.--Nothing in this section shall 
     be construed to require an eligible institution that receives 
     a grant under this section--
       ``(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 
     section; or
       ``(2) to hire a Patsy T. Mink Fellow who completes this 
     program and seeks employment at such institution.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary for fiscal year 2006 for each of the 5 
     succeeding fiscal years.

       ``PART H--STUDY ON COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

     ``SEC. 1. STUDY ON COLLEGE ENROLLMENT BY SECONDARY SCHOOLS.

       ``The Secretary shall contract with a not-for-profit 
     organization, with demonstrated expertise in increasing 
     college enrollment rates in low-income communities 
     nationwide, to make publicly available year-to-year college 
     enrollment rate trends by secondary schools, in full 
     compliance with the Family Educational Rights and Privacy Act 
     of 1974 (FERPA).''.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

     SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

       Section 104 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4304) is amended--
       (1) by striking the heading and inserting ``LAURENT CLERC 
     NATIONAL DEAF EDUCATION CENTER'';
       (2) in subsection (a)(1)(A), by inserting ``the Laurent 
     Clerc National Deaf Education Center (referred to in this 
     section as the `Clerc Center') to carry out'' after 
     ``maintain and operate''; and
       (3) in subsection (b)--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (1), by striking ``elementary and secondary education 
     programs'' and inserting ``Clerc Center'';
       (B) in paragraph (2), by striking ``elementary and 
     secondary education programs'' and inserting ``Clerc 
     Center''; and
       (C) by adding at the end the following:
       ``(5) The University, for purposes of the elementary and 
     secondary education programs carried out at the Clerc Center, 
     shall--
       ``(A)(i) select challenging academic content standards, 
     challenging student academic achievement standards, and 
     academic assessments of a State, adopted and implemented, as 
     appropriate, pursuant to paragraphs (1) and (3) of section 
     1111(b) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6311(b)(1) and (3)) and approved by the Secretary; 
     and
       ``(ii) implement such standards and assessments for such 
     programs by not later than the beginning of the 2008-2009 
     academic year;
       ``(B) annually determine whether such programs at the Clerc 
     Center are making adequate yearly progress, as determined 
     according to the definition of adequate yearly progress 
     defined (pursuant to section 1111(b)(2)(C) of such Act (20 
     U.S.C. 6311(b)(2)(C))) by the State that has adopted and 
     implemented the standards and assessments selected under 
     subparagraph (A)(i); and
       ``(C) publicly report the results of the academic 
     assessments implemented under subparagraph (A) and whether 
     the programs at the Clerc Center are making adequate yearly 
     progress, as determined under subparagraph (B).''.

     SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.

       Section 105(b)(4) of the Education of the Deaf Act of 1986 
     (20 U.S.C. 4305(b)(4)) is amended--
       (1) by striking ``the Act of March 3, 1931 (40 U.S.C. 276a-
     276a-5) commonly referred to as the Davis-Bacon Act'' and 
     inserting ``subchapter IV of chapter 31 of title 40, United 
     States Code, commonly referred to as the Davis-Bacon Act''; 
     and
       (2) by striking ``section 2 of the Act of June 13, 1934 (40 
     U.S.C. 276c)'' and inserting ``section 3145 of title 40, 
     United States Code''.

     SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR 
                   THE DEAF.

       Section 112 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4332) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in the first sentence--

       (I) by striking ``an institution of higher education'' and 
     inserting ``the Rochester Institute of Technology, Rochester, 
     New York''; and
       (II) by striking ``of a'' and inserting ``of the''; and

       (ii) by striking the second sentence;
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following:
       ``(2) Notwithstanding the requirement under paragraph (1), 
     if the Secretary or the Rochester Institute of Technology 
     terminates the agreement under paragraph (1), the Secretary 
     shall consider proposals from other institutions of higher 
     education and enter into an agreement with 1 of such 
     institutions for the establishment and operation of a 
     National Technical Institution for the Deaf.''; and
       (2) in subsection (b)--
       (A) in paragraph (3), by striking ``Committee on Education 
     and Labor of the House of Representatives and to the 
     Committee on Labor and Human Resources of the Senate'' and 
     inserting ``Committee on Education and the Workforce of the 
     House of Representatives and to the Committee on Health, 
     Education, Labor, and Pensions of the Senate''; and
       (B) in paragraph (5)--
       (i) by striking ``the Act of March 3, 1931 (40 U.S.C. 276a-
     276a-5) commonly referred to as the Davis-Bacon Act'' and 
     inserting ``subchapter IV of chapter 31 of title 40, United 
     States Code, commonly referred to as the Davis-Bacon Act''; 
     and
       (ii) by striking ``section 2 of the Act of June 13, 1934 
     (40 U.S.C. 276c)'' and inserting ``section 3145 of title 40, 
     United States Code''.

     SEC. 904. CULTURAL EXPERIENCES GRANTS.

       (a) Cultural Experiences Grants.--Title I of the Education 
     of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended 
     by adding at the end the following:

                        ``PART C--OTHER PROGRAMS

     ``SEC. 121. CULTURAL EXPERIENCES GRANTS.

       ``(a) In General.--The Secretary shall, on a competitive 
     basis, make grants to, and enter into contracts and 
     cooperative agreements with, eligible entities to support the 
     activities described in subsection (b).
       ``(b) Activities.--In carrying out this section, the 
     Secretary shall support activities providing cultural 
     experiences, through appropriate nonprofit organizations with 
     a demonstrated proficiency in providing such activities, 
     that--
       ``(1) enrich the lives of deaf and hard-of-hearing children 
     and adults;
       ``(2) increase public awareness and understanding of 
     deafness and of the artistic and intellectual achievements of 
     deaf and hard-of-hearing persons; or
       ``(3) promote the integration of hearing, deaf, and hard-
     of-hearing persons through shared cultural, educational, and 
     social experiences.
       ``(c) Applications.--An eligible entity that desires to 
     receive a grant, or enter into a contract or cooperative 
     agreement, 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.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2006 and each of the 
     5 succeeding fiscal years.''.
       (b) Conforming Amendment.--The title heading of title I of 
     the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et 
     seq.) is amended by adding at the end ``; OTHER PROGRAMS''.

     SEC. 905. AUDIT.

       Section 203 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4353) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking the second sentence and 
     inserting the following: ``The institution of higher 
     education that the Secretary has an agreement with under 
     section 112 shall have an annual independent financial and 
     compliance audit made of NTID programs and activities. The 
     audit shall follow the cycle of the Federal fiscal year.'';
       (B) in paragraph (2), by striking ``sections'' and all that 
     follows through the period and inserting ``sections 102(b), 
     105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) 
     through (f) of section 207, and subsections (b) and (c) of 
     section 209.''; and
       (C) in paragraph (3), by inserting ``and the Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Health, Education, Labor, and Pensions 
     of the Senate'' after ``Secretary''; and
       (2) in subsection (c)(2)(A), by striking ``Committee on 
     Education and Labor of the House of Representatives and the 
     Committee on Labor and Human Resources of the Senate'' and 
     inserting ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate''.

     SEC. 906. REPORTS.

       Section 204 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4354) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``Committee on Education and Labor of the House of 
     Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Health, Education, Labor, and Pensions 
     of the Senate'';
       (2) in paragraph (1), by striking ``preparatory,'';
       (3) in paragraph (2)(C), by striking ``upon graduation/
     completion'' and inserting ``on the date that is 1 year after 
     the date of graduation or completion''; and
       (4) in paragraph (3)(B), by striking ``of the institution 
     of higher education'' and all that follows through the period 
     and inserting ``of NTID programs and activities.''.

     SEC. 907. MONITORING, EVALUATION, AND REPORTING.

       Section 205 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4355) is amended--
       (1) in subsection (b), by striking ``The Secretary, as part 
     of the annual report required under section 426 of the 
     Department of Education Organization Act, shall include a 
     description of'' and inserting ``The Secretary

[[Page S9687]]

     shall annually transmit information to Congress on''; and
       (2) in subsection (c), by striking ``fiscal years 1998 
     through 2003'' and inserting ``fiscal years 2006 through 
     2010''.

     SEC. 908. LIAISON FOR EDUCATIONAL PROGRAMS.

       Section 206(a) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4356(a)) is amended by striking ``Not later than 30 
     days after the date of enactment of this Act, the'' and 
     inserting ``The''.

     SEC. 909. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY 
                   AND THE NATIONAL TECHNICAL INSTITUTE FOR THE 
                   DEAF.

       Section 207(h) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4357(h)) is amended by striking ``fiscal years 1998 
     through 2003'' each place it appears and inserting ``fiscal 
     years 2006 through 2010''.

     SEC. 910. OVERSIGHT AND EFFECT OF AGREEMENTS.

       Section 208(a) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4359(a)) is amended by striking ``Committee on Labor 
     and Human Resources of the Senate and the Committee on 
     Education and the Workforce of the House of Representatives'' 
     and inserting ``Committee on Education and the Workforce of 
     the House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate''.

     SEC. 911. INTERNATIONAL STUDENTS.

       Section 209 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4359a) is amended--
       (1) in subsection (a)--
       (A) by striking ``preparatory, undergraduate,'' and 
     inserting ``undergraduate'';
       (B) by striking ``Effective with'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), 
     effective with''; and
       (C) by adding at the end the following:
       ``(2) Distance learning.--International students who 
     participate in distance learning courses that are at NTID or 
     the University and who are residing outside of the United 
     States shall--
       ``(A) not be counted as international students for purposes 
     of the cap on international students under paragraph (1), 
     except that in any school year no United States citizen who 
     applies to participate in distance learning courses that are 
     at the University or NTID shall be denied participation in 
     such courses because of the participation of an international 
     student in such courses; and
       ``(B) not be charged a tuition surcharge, as described in 
     subsection (b).''; and
       (2) by striking subsections (b), (c), and (d), and 
     inserting the following:
       ``(b) Tuition Surcharge.--Except as provided in subsections 
     (a)(2)(B) and (c), the tuition for postsecondary 
     international students enrolled in the University (including 
     undergraduate and graduate students) or NTID shall include, 
     for academic year 2007-2008 and any succeeding academic year, 
     a surcharge of--
       ``(1) 100 percent for a postsecondary international student 
     from a non-developing country; and
       ``(2) 50 percent for a postsecondary international student 
     from a developing country.
       ``(c) Reduction of Surcharge.--
       ``(1) In general.--Beginning with the academic year 2007-
     2008, the University or NTID may reduce the surcharge--
       ``(A) under subsection (b)(1) to 50 percent if--
       ``(i) a student described under subsection (b)(1) 
     demonstrates need; and
       ``(ii) such student has made a good faith effort to secure 
     aid through such student's government or other sources; and
       ``(B) under subsection (b)(2) to 25 percent if--
       ``(i) a student described under subsection (b)(2) 
     demonstrates need; and
       ``(ii) such student has made a good faith effort to secure 
     aid through such student's government or other sources.
       ``(2) Development of sliding scale.--The University and 
     NTID shall develop a sliding scale model that--
       ``(A) will be used to determine the amount of a tuition 
     surcharge reduction pursuant to paragraph (1); and
       ``(B) shall be approved by the Secretary.
       ``(d) Definition.--In this section, the term `developing 
     country' means a country with a per-capita income of not more 
     than $4,825, measured in 1999 United States dollars, as 
     adjusted by the Secretary to reflect inflation since 1999.''.

     SEC. 912. RESEARCH PRIORITIES.

       Section 210(b) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4359b(b)) is amended by striking ``Committee on Labor 
     and Human Resources of the Senate'' and inserting ``Committee 
     on Health, Education, Labor, and Pensions of the Senate''.

     SEC. 913. AUTHORIZATION OF APPROPRIATIONS.

       Section 212 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4360a) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``fiscal years 1998 through 2003'' and 
     inserting ``fiscal years 2006 through 2011''; and
       (2) in subsection (b), by striking ``fiscal years 1998 
     through 2003'' and inserting ``fiscal years 2006 through 
     2011''.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

     SEC. 921. UNITED STATES INSTITUTE OF PEACE ACT.

       (a) Powers and Duties.--Section 1705(b)(3) of the United 
     States Institute of Peace Act (22 U.S.C. 4604(b)(3)) is 
     amended by striking ``the Arms Control and Disarmament 
     Agency,''.
       (b) Board of Directors.--Section 1706 of the United States 
     Institute of Peace Act (22 U.S.C. 4605) is amended--
       (1) by striking ``(b)(5)'' each place the term appears and 
     inserting ``(b)(4)''; and
       (2) in subsection (e), by adding at the end the following:
       ``(5) The term of a member of the Board shall not commence 
     until the member is confirmed by the Senate and sworn in as a 
     member of the Board.''.
       (c) Funding.--Section 1710 of the United States Institute 
     of Peace Act (22 U.S.C. 4609) is amended by adding at the end 
     the following:
       ``(d) Extension.--Any authorization of appropriations made 
     for the purposes of carrying out this title shall be extended 
     in the same manner as applicable programs are extended under 
     section 422 of the General Education Provisions Act.''.

            PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998

     SEC. 931. REPEALS.

       The following provisions of title VIII of the Higher 
     Education Amendments of 1998 (Public Law 105-244) are 
     repealed:
       (1) Part A.
       (2) Part C (20 U.S.C. 1070 note).
       (3) Part F (20 U.S.C. 1862 note).
       (4) Part J.
       (5) Section 861.
       (6) Section 863.

     SEC. 932. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY 
                   TRANSITION TRAINING FOR INCARCERATED YOUTH 
                   OFFENDERS.

       Section 821(b) of the Higher Education Amendment of 1988 is 
     amended by striking ``25'' and inserting ``35''.

                        PART D--INDIAN EDUCATION

              Subpart 1--Tribal Colleges and Universities

     SEC. 941. TRIBALLY CONTROLLED COLLEGE AND UNIVERSITY 
                   ASSISTANCE.

       (a) Clarification of the Definition of National Indian 
     Organization.--Section 2(a)(6) of the Tribally Controlled 
     College or University Assistance Act of 1978 (25 U.S.C. 
     1801(a)(6)) is amended by striking ``in the field of Indian 
     education'' and inserting ``in the fields of tribally 
     controlled colleges and universities and Indian higher 
     education''.
       (b) Indian Student Count.--Section 2(a) of the Tribally 
     Controlled College or University Assistance Act (25 U.S.C. 
     1801(a)) is amended--
       (1) by redesignating paragraphs (7) and (8) as paragraphs 
     (8) and (9), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) `Indian student' means a student who is--
       ``(A) a member of an Indian tribe; or
       ``(B) a biological child of a member of an Indian tribe, 
     living or deceased;''.
       (c) Continuing Education.--Section 2(b) of the Tribally 
     Controlled College or University Assistance Act (25 U.S.C. 
     1801(b)) is amended by striking paragraph (5) and inserting 
     the following:
       ``(5) Determination of credits.--Eligible credits earned in 
     a continuing education program--
       ``(A) shall be determined as 1 credit for every 10 contact 
     hours in the case of an institution on a quarter system, or 
     15 contact hours in the case of an institution on a semester 
     system, of participation in an organized continuing education 
     experience under responsible sponsorship, capable direction, 
     and qualified instruction, as described in the criteria 
     established by the International Association for Continuing 
     Education and Training; and
       ``(B) shall be limited to 10 percent of the Indian student 
     count of a tribally controlled college or university.''.
       (d) Accreditation Requirement.--Section 103 of the Tribally 
     Controlled College or University Assistance Act (25 U.S.C. 
     1804) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (3), the following:
       ``(4)(A) is accredited by a nationally recognized 
     accrediting agency or association determined by the Secretary 
     of Education to be a reliable authority with regard to the 
     quality of training offered; or
       ``(B) is, according to such an agency or association, 
     making reasonable progress toward accreditation.''.
       (e) Technical Assistance Contract Awards.--Section 105 of 
     the Tribally Controlled College or University Assistance Act 
     (25 U.S.C. 1805) is amended in the second sentence by 
     striking ``In the awarding of contracts for technical 
     assistance, preference shall be given'' and inserting ``The 
     Secretary shall direct that contracts for technical 
     assistance be awarded''.
       (f) Title I Reauthorization.--Section 110(a) of the 
     Tribally Controlled College or University Assistance Act of 
     1978 (25 U.S.C. 1810(a)) is amended--
       (1) in paragraphs (1), (2), (3), and (4), by striking 
     ``1999'' and inserting ``2006'';
       (2) in paragraphs (1), (2), and (3), by striking ``4 
     succeeding'' and inserting ``5 succeeding'';
       (3) in paragraph (2), by striking ``$40,000,000'' and 
     inserting ``such sums as may be necessary'';

[[Page S9688]]

       (4) in paragraph (3), by striking ``$10,000,000'' and 
     inserting ``such sums as may be necessary''; and
       (5) in paragraph (4), by striking ``succeeding 4'' and 
     inserting ``5 succeeding''.
       (g) Title III Reauthorization.--Section 306(a) of the 
     Tribally Controlled College or University Assistance Act of 
     1978 (25 U.S.C. 1836(a)) is amended--
       (1) by striking ``1999'' and inserting ``2006''; and
       (2) by striking ``4 succeeding'' and inserting ``5 
     succeeding''.
       (h) Title IV Reauthorization.--Section 403 of the Tribal 
     Economic Development and Technology Related Education 
     Assistance Act of 1990 (25 U.S.C. 1852) is amended--
       (1) by striking ``$2,000,000 for fiscal year 1999'' and 
     inserting ``such sums as may be necessary for fiscal year 
     2006''; and
       (2) by striking ``4 succeeding'' and inserting ``5 
     succeeding''.

                   Subpart 2--Navajo Higher Education

     SEC. 945. SHORT TITLE.

       This subpart may be cited as the ``Navajo Nation Higher 
     Education Act of 2005''.

     SEC. 946. REAUTHORIZATION OF THE NAVAJO COMMUNITY COLLEGE 
                   ACT.

       Section 5(a)(1) of the Navajo Community College Act (25 
     U.S.C. 640c-1(a)(1)) is amended by striking ``$2,000,000'' 
     and all that follows through ``years'' and inserting ``such 
     sums as may be necessary for fiscal year 2006 and each of the 
     5 succeeding fiscal years''.

                        TITLE X--RECONCILIATION

     SEC. 1001. PROVISIONAL GRANT ASSISTANCE PROGRAM.

       (a) Amendment.--Subpart 1 of part A of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1070a) is amended by 
     adding at the end the following:

     ``SEC. 401A. PROVISIONAL GRANT ASSISTANCE PROGRAM.

       ``(a) Grants.--
       ``(1) In general.--From amounts appropriated under 
     subsection (c) for a fiscal year and subject to subsection 
     (b), the Secretary shall award grants to students (which 
     shall be known as `ProGAP awards') in the same manner as the 
     Secretary awards grants to students under section 401, except 
     that the Secretary shall determine the amount of a grant 
     under this section for an academic year by--
       ``(A) determining the total number of students eligible for 
     a grant under section 401 for the academic year, and the 
     amount that each of those students are eligible to receive 
     under section 401 calculated on the basis of the maximum 
     grant level specified in the appropriate Appropriation Act 
     for section 401 for the academic year;
       ``(B) determining the amount each of those students would 
     receive under section 401 if the grant award under section 
     401 were calculated on the basis of the sum of the total 
     amount appropriated to carry out section 401 and the total 
     amount appropriated to carry out this section for the 
     academic year; and
       ``(C) awarding to each of those students the amount by 
     which the amount determined under subparagraph (B) exceeds 
     the amount determined under subparagraph (A).
       ``(2) Students with the greatest need.--The Secretary shall 
     ensure grants are awarded under this section to students with 
     the greatest need as determined under paragraph (1).
       ``(b) Cost of Attendance Limitation.--A grant awarded under 
     this section for an academic year shall be awarded in an 
     amount that does not exceed--
       ``(1) the student's cost of attendance for the academic 
     year; less
       ``(2) an amount equal to the expected family contribution 
     for that student for the academic year.
       ``(c) Authorization and Appropriation of Funds.--There are 
     authorized to be appropriated, and there are appropriated, 
     out of any money in the Treasury not otherwise appropriated, 
     for the Department of Education to carry out this section and 
     section 401B--
       ``(1) $965,000,000 for fiscal year 2006;
       ``(2) $971,000,000 for fiscal year 2007;
       ``(3) $971,000,000 for fiscal year 2008;
       ``(4) $972,000,000 for fiscal year 2009; and
       ``(5) $972,000,000 for fiscal year 2010.
       ``(d) Sunset Provision.--This section shall be effective 
     with respect to amounts appropriated for fiscal year 2006 and 
     each of the 4 succeeding fiscal years.''.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the amounts appropriated to carry out sections 401A and 
     401B of the Higher Education Act of 1965 are the result of 
     the savings generated by the amendments made by this title.

     SEC. 1002. NATIONAL SMART GRANTS.

       Subpart 1 of part A of title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a) is further amended by adding after 
     section 401A (as added by section 1001):

     ``SEC. 401B. NATIONAL SMART GRANTS.

       ``(a) Grants Authorized.--From amounts appropriated under 
     section 401A(c) for a fiscal year, the Secretary shall award 
     grants to eligible students to assist the eligible students 
     in paying their college education expenses.
       ``(b) Designation.--A grant under this section shall be 
     known as a `National Science and Mathematics Access to Retain 
     Talent Grant' or a `National SMART Grant'.
       ``(c) Definition of Eligible Student.--In this section the 
     term `eligible student' means a student who, for the academic 
     year for which the determination is made--
       ``(1) is eligible for a Federal Pell Grant; and
       ``(2) is in the student's 3rd or 4th year at an institution 
     of higher education majoring in--
       ``(A) mathematics, science, technology, or engineering (as 
     determined by the Secretary pursuant to regulations); or
       ``(B) a foreign language that the Secretary, in 
     consultation with the Director of National Intelligence, 
     determines is critical to the national security of the United 
     States.
       ``(d) Grant Amount.--The Secretary shall award a grant 
     under this section in an amount that does not exceed $1,500 
     for an academic year.
       ``(e) Funding Rule.--The Secretary shall use not more than 
     $200,000,000 of the funds appropriated under section 401A(c) 
     for each of the fiscal years 2006 through 2010 to carry out 
     this section.
       ``(f) Unobligated Funds Available for Federal Grant 
     Assistance.--The Secretary shall make any funds made 
     available under subsection (e) for a fiscal year that remain 
     unobligated at the end of the fiscal year available to carry 
     out section 401A.
       ``(g) Matching Assistance.--An institution of higher 
     education may, from funds provided from private sources, 
     provide additional assistance to a student receiving a grant 
     under this section, except that the total assistance provided 
     under this title to a student shall not exceed the student's 
     cost of attendance.''.

     SEC. 1003. LOAN LIMITS.

       (a) Federal Insurance Limits.--Section 425(a)(1)(A) of the 
     Higher Education Act of 1965 (20 U.S.C. 1075(a)(1)(A)) is 
     amended--
       (1) in clause (i)(I), by striking ``$2,625'' and inserting 
     ``$3,500''; and
       (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
     ``$4,500''.
       (b) Guarantee Limits.--Section 428(b)(1)(A) of the Higher 
     Education Act of 1965 (20 U.S.C. 1078(b)(1)(A)) is amended--
       (1) in clause (i)(I), by striking ``$2,625'' and inserting 
     ``$3,500''; and
       (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
     ``$4,500''.
       (c) Federal Plus Loans.--Section 428B of the Higher 
     Education Act of 1965 (20 U.S.C. 1078-2) is amended--
       (1) in subsection (a)(1)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``Parents'' and inserting ``A graduate or professional 
     student or the parents'';
       (B) in subparagraph (A), by striking ``the parents'' and 
     inserting ``the graduate or professional student or the 
     parents''; and
       (C) in subparagraph (B), by striking ``the parents'' and 
     inserting ``the graduate or professional student or the 
     parents'';
       (2) in subsection (b), by striking ``any parent'' and 
     inserting ``any graduate or professional student or any 
     parent'';
       (3) in subsection (c)(2), by striking ``parent'' and 
     inserting ``graduate or professional student or parent''; and
       (4) in subsection (d)(1), by striking ``the parent'' and 
     inserting ``the graduate or professional student or the 
     parent''.
       (d) Unsubsidized Stafford Loans for Graduate or 
     Professional Students.--Section 428H(d)(2) of the Higher 
     Education Act of 1965 (20 U.S.C. 1078-8(d)(2)) is amended--
       (1) in subparagraph (C), by striking ``$10,000'' and 
     inserting ``$12,000''; and
       (2) in subparagraph (D)--
       (A) in clause (i), by striking ``$5,000'' and inserting 
     ``$7,000''; and
       (B) in clause (ii), by striking ``$5,000'' and inserting 
     ``$7,000''.

     SEC. 1004. PLUS LOAN INTEREST RATES AND ZERO SPECIAL 
                   ALLOWANCE PAYMENT.

       (a) PLUS Loans.--Section 427A(l)(2) of the Higher Education 
     Act of 1965 (20 U.S.C. 1077a(l)(2)) is amended by striking 
     ``7.9 percent'' and inserting ``8.5 percent''.
       (b) Conforming Amendments for Special Allowances.--
       (1) Amendments.--Subparagraph (I) of section 438(b)(2) of 
     the Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)) is 
     amended--
       (A) in clause (iii), by striking ``, subject to clause (v) 
     of this subparagraph'';
       (B) in clause (iv), by striking ``, subject to clause (vi) 
     of this subparagraph''; and
       (C) by striking clauses (v), (vi), and (vii) and inserting 
     the following:
       ``(v) Recapture of excess interest.--

       ``(I) Excess credited.--With respect to a loan on which the 
     applicable interest rate is determined under section 427A(l) 
     and for which the first disbursement of principal is made on 
     or after April 1, 2006, if the applicable interest rate for 
     any 3-month period exceeds the special allowance support 
     level applicable to such loan under this subparagraph for 
     such period, then an adjustment shall be made by calculating 
     the excess interest in the amount computed under subclause 
     (II) of this clause, and by crediting the excess interest to 
     the Government not less often than annually.
       ``(II) Calculation of excess.--The amount of any adjustment 
     of interest on a loan to be made under this subsection for 
     any quarter shall be equal to--

       ``(aa) the applicable interest rate minus the special 
     allowance support level determined under this subparagraph; 
     multiplied by
       ``(bb) the average daily principal balance of the loan (not 
     including unearned interest added to principal) during such 
     calendar quarter; divided by
       ``(cc) four.

       ``(III) Special allowance support level.--For purposes of 
     this clause, the term `special allowance support level' 
     means, for any loan, a number expressed as a percentage equal 
     to the sum of the rates determined under subclauses (I) and 
     (III) of clause (i),

[[Page S9689]]

     and applying any substitution rules applicable to such loan 
     under clauses (ii), (iii), and (iv) in determining such 
     sum.''.

       (2) Effective date.--The amendments made by this subsection 
     shall not apply with respect to any special allowance payment 
     made under section 438 of the Higher Education Act of 1965 
     (20 U.S.C 1087-1) before April 1, 2006.

     SEC. 1005. REDUCTION OF LENDER INSURANCE REIMBURSEMENT RATES.

       (a) Amendment.--Subparagraph (G) of section 428(b)(1) of 
     the Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)) is 
     amended to read as follows:
       ``(G) insures 97 percent of the unpaid principal of loans 
     insured under the program;''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to any loan made, insured, or 
     guaranteed under part B of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1071 et seq.) for which the first 
     disbursement is made on or after January 1, 2006.

     SEC. 1006. GUARANTY AGENCY ORIGINATION FEE.

       (a) Amendment.--Section 428(b)(1)(H) of the Higher 
     Education Act of 1965 (20 U.S.C. 1078(b)(1)(H)) is amended to 
     read as follows:
       ``(H) provides for the collection, and the deposit in the 
     Federal Fund established under section 422A(a), of a guaranty 
     agency origination fee of 1.0 percent of each disbursement of 
     the proceeds of the loan, which fee may be provided from 
     funds in the guaranty agency's operating fund under section 
     422B or from other non-Federal funds;''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective with respect to any loan guaranteed under 
     part B of title IV of the Higher Education Act of 1965 on or 
     after April 1, 2006.

     SEC. 1007. DEFERMENT OF STUDENT LOANS FOR MILITARY SERVICE.

       (a) Federal Family Education Loans.--Section 428(b)(1)(M) 
     of the Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) 
     is amended--
       (1) by striking ``or'' at the end of clause (ii);
       (2) by redesignating clause (iii) as clause (iv); and
       (3) by inserting after clause (ii) the following new 
     clause:
       ``(iii) not in excess of 3 years during which the 
     borrower--

       ``(I) is serving on active duty during a war or other 
     military operation or national emergency; or
       ``(II) is performing qualifying National Guard duty during 
     a war or other military operation or national emergency; 
     or''.

       (b) Direct Loans.--Section 455(f)(2) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087e(f)(2)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) not in excess of 3 years during which the borrower--
       ``(i) is serving on active duty during a war or other 
     military operation or national emergency; or
       ``(ii) is performing qualifying National Guard duty during 
     a war or other military operation or national emergency; 
     or''.
       (c) Perkins Loans.--Section 464(c)(2)(A) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)) is 
     amended--
       (1) by redesignating clauses (iii) and (iv) as clauses (iv) 
     and (v), respectively; and
       (2) by inserting after clause (ii) the following new 
     clause:
       ``(iii) not in excess of 3 years during which the 
     borrower--

       ``(I) is serving on active duty during a war or other 
     military operation or national emergency; or
       ``(II) is performing qualifying National Guard duty during 
     a war or other military operation or national emergency;''.

       (d) Definitions.--Section 481 of the Higher Education Act 
     of 1965 (20 U.S.C. 1088) is amended by adding at the end the 
     following new subsection:
       ``(d) Definitions for Military Deferments.--For purposes of 
     parts B, D, and E of this title:
       ``(1) Active duty.--The term `active duty' has the meaning 
     given such term in section 101(d)(1) of title 10, United 
     States Code, except that such term does not include active 
     duty for training or attendance at a service school.
       ``(2) Military operation.--The term `military operation' 
     means a contingency operation as such term is defined in 
     section 101(a)(13) of title 10, United States Code.
       ``(3) National emergency.--The term `national emergency' 
     means the national emergency by reason of certain terrorist 
     attacks declared by the President on September 14, 2001, or 
     subsequent national emergencies declared by the President by 
     reason of terrorist attacks.
       ``(4) Serving on active duty.--The term `serving on active 
     duty during a war or other military operation or national 
     emergency' means service by an individual who is--
       ``(A) a Reserve of an Armed Force ordered to active duty 
     under section 12301(a), 12301(g), 12302, 12304, or 12306 of 
     title 10, United States Code, or any retired member of an 
     Armed Force ordered to active duty under section 688 of such 
     title, for service in connection with a war or other military 
     operation or national emergency, regardless of the location 
     at which such active duty service is performed; and
       ``(B) any other member of an Armed Force on active duty in 
     connection with such emergency or subsequent actions or 
     conditions who has been assigned to a duty station at a 
     location other than the location at which such member is 
     normally assigned.
       ``(5) Qualifying national guard duty.--The term `qualifying 
     National Guard duty during a war or other military operation 
     or national emergency' means service as a member of the 
     National Guard on full-time National Guard duty (as defined 
     in section 101(d)(5) of title 10, United States Code) under a 
     call to active service authorized by the President or the 
     Secretary of Defense for a period of more than 30 consecutive 
     days under section 502(f) of title 32, United States Code, in 
     connection with a war, other military operation, or a 
     national emergency declared by the President and supported by 
     Federal funds.''.
       (e) Rule of Construction.--Nothing in the amendments made 
     by this section shall be construed to authorize any refunding 
     of any repayment of a loan.
       (f) Effective Date.--The amendments made by this section 
     shall apply with respect to loans for which the first 
     disbursement is made on or after July 1, 2001.

     SEC. 1008. REHABILITATION THROUGH CONSOLIDATION.

       Section 428(c) of the Higher Education Act of 1965 (20 
     U.S.C 1078(c)) is amended--
       (1) in paragraph (2)(A)--
       (A) by inserting ``(i)'' after ``including''; and
       (B) by inserting before the semicolon at the end the 
     following: ``and (ii) requirements establishing procedures to 
     preclude consolidation lending from being an excessive 
     proportion of guaranty agency recoveries on defaulted loans 
     under this part'';
       (2) in paragraph (2)(D), by striking ``paragraph (6)'' and 
     inserting ``paragraph (6)(A)''; and
       (3) in paragraph (6)--
       (A) by inserting ``(A)'' before ``For the purposes of 
     paragraph (2)(D),'';
       (B) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively; and
       (C) by adding at the end the following new subparagraphs:
       ``(B) Guaranty agency obligations.--A guaranty agency 
     shall--
       ``(i) on or after October 1, 2006--
       ``(I) not charge the borrower collection costs in an amount 
     in excess of 18.5 percent of the outstanding principal and 
     interest of a defaulted loan that is paid off through 
     consolidation by the borrower under this title; and
       ``(II) remit to the Secretary a portion of the collection 
     charge under subclause (I) equal to 8.5 percent of the 
     outstanding principal and interest of such defaulted loan; 
     and
       ``(ii) on and after October 1, 2009, remit to the Secretary 
     the entire amount charged under clause (i)(I) with respect to 
     each defaulted loan that is paid off with excess 
     consolidation proceeds.
       ``(C) Excess consolidation proceeds.--For purposes of 
     subparagraph (B), the term `excess consolidation proceeds' 
     means, with respect to any guaranty agency for any Federal 
     fiscal year beginning on or after October 1, 2009, the 
     proceeds of consolidation of defaulted loans under this title 
     that exceed 45 percent of the agency's total collections on 
     defaulted loans in such Federal fiscal year.''.

     SEC. 1009. SINGLE HOLDER RULE.

       Subparagraph (A) of section 428C(b)(1) of the Higher 
     Education Act of 1965 (20 U.S.C. 1078-3(b)(1)) is amended by 
     striking ``and (i)'' and all that follows through ``so 
     selected for consolidation)''.

     SEC. 1010. DEFAULT REDUCTION PROGRAM.

       Section 428F(a)(1) of the Higher Education Act of 1965 (20 
     U.S.C. 1078-6(a)(1)) is amended--
       (1) in subparagraph (A), by striking ``consecutive payments 
     for 12 months'' and inserting ``9 payments made within 20 
     days of the due date during 10 consecutive months'';
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) A guaranty agency may charge the borrower and retain 
     collection costs in an amount not to exceed 18.5 percent of 
     the outstanding principal and interest at the time of sale of 
     a loan rehabilitated under subparagraph (A).''.

     SEC. 1011. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.

       Section 428G of the Higher Education Act of 1965 (20 U.S.C. 
     1078-7) is amended--
       (1) in subsection (a)(3), by adding at the end the 
     following: ``Notwithstanding section 422(d) of the Higher 
     Education Amendments of 1998, this paragraph shall be 
     effective beginning on the date of enactment of the Higher 
     Education Amendments of 2005.''; and
       (2) in subsection (b)(1), by adding at the end the 
     following: ``Notwithstanding section 422(d) of the Higher 
     Education Amendments of 1998, the second sentence of this 
     paragraph shall be effective beginning on the date of 
     enactment of the Higher Education Amendments of 2005.''.

     SEC. 1012. SPECIAL INSURANCE AND REINSURANCE RULES.

       (a) Repeal.--Section 428I of the Higher Education Act of 
     1965 (20 U.S.C. 1078-9) is repealed.
       (b) Conforming Amendments.--Part A of title IV of the 
     Higher Education Act of 1965 (20 U.S.C.1070 et seq.) is 
     amended--
       (1) in section 428(c)(1)--
       (A) by striking subparagraph (D); and
       (B) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (D) and (E), respectively; and

[[Page S9690]]

       (2) in section 438(b)(5), by striking the matter following 
     subparagraph (B).

     SEC. 1013. SCHOOL AS LENDER MORATORIUM.

       Section 435(d)(2) of the Higher Education Act of 1965 (20 
     U.S.C. 1085(d)(2)) is amended--
       (1) in subparagraph (E), by striking ``and'' after the 
     semicolon; and
       (2) by inserting before the matter following subparagraph 
     (F) the following:
       ``(G) shall have met the requirements of subparagraphs (A) 
     through (F), and made loans under this part, on or before 
     August 31, 2005;
       ``(H) shall hold each loan the eligible institution makes 
     under this part to a student enrolled at the eligible 
     institution until the student enters into a grace period 
     described in section 427(a)(2)(B) or 428(b)(7);
       ``(I) shall use the proceeds from the sale of a loan made 
     under this part, for need based grant aid programs, except 
     that such proceeds--
       ``(i) shall not be used to provide a grant to a student for 
     an academic year in an amount that is more than the student's 
     cost of attendance for the academic year; and
       ``(ii) shall supplement and not supplant other Federal, 
     State, and institutional grant aid; and
       ``(J) shall not be a foundation or alumni organization;''.

     SEC. 1014. PERMANENT REDUCTION OF SPECIAL ALLOWANCE PAYMENTS 
                   FOR LOANS FROM THE PROCEEDS OF TAX EXEMPT 
                   ISSUES.

       (a) Technical Clarification.--The matter preceding 
     paragraph (1) of section 2 of the Taxpayer-Teacher Protection 
     Act of 2004 (Public Law 108-409; 118 Stat. 2299) is amended 
     by inserting ``of the Higher Education Act of 1965'' after 
     ``Section 438(b)(2)(B)''. The amendment made by the preceding 
     sentence shall be effective as if enacted on October 30, 
     2004.
       (b) Amendment.--Section 438(b)(2)(B) of the Higher 
     Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(B)) is 
     amended--
       (1) in clause (iv), by striking ``and before January 1, 
     2006,''; and
       (2) in clause (v)(II)--
       (A) in item (aa), by striking ``and before January 1, 
     2006,'';
       (B) in item (bb), by striking ``and before January 1, 
     2006,''; and
       (C) in item (cc), by striking ``and before January 1, 
     2006,''.

     SEC. 1015. LOAN FEES FROM LENDERS.

       (a) Amendment.--Paragraph (2) of section 438(d)(2) (20 
     U.S.C. 1087-1(d)) is amended to read as follows:
       ``(2) Amount of loan fees.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     with respect to any loan made under this part for which the 
     first disbursement was made on or after October 1, 1993, the 
     amount of the loan fee that shall be deducted under paragraph 
     (1) shall be equal to 0.50 percent of the principal amount of 
     the loan.
       ``(B) Consolidation loans.--With respect to any loan made 
     under section 428C on or after April 1, 2006, the amount of 
     the loan fee that shall be deducted under paragraph (1) shall 
     be equal to 1.0 percent of the principal amount of the 
     loan.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to any loan made, insured, or 
     guaranteed under part B of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1071 et seq.) for which the first 
     disbursement is made on or after April 1, 2006.

     SEC. 1016. ORIGINATION FEE.

       Section 455(c) of the Higher Education Act of 1965 (20 
     U.S.C. 1087e(c)) is amended--
       (1) by striking ``shall'' and inserting ``is authorized 
     to''; and
       (2) by striking ``4.0 percent of the principal amount of 
     loan'' and inserting ``not less than 1 percent and not more 
     than 3 percent of the principal amount of the loan, except 
     that the Secretary shall charge the borrower of a Federal 
     Direct PLUS Loan an origination fee of 4.0 percent of the 
     principal amount of the loan.''.

     SEC. 1017. INCOME CONTINGENT REPAYMENT FOR PUBLIC SECTOR 
                   EMPLOYEES.

       Section 455(e) of the Higher Education Act of 1965 (20 
     U.S.C. 1087e(e)) is amended by adding at the end the 
     following:
       ``(7) Repayment plan for public sector employees.--
       ``(A) In general.--The Secretary shall forgive the balance 
     due on any loan made under this part for a borrower--
       ``(i) who has made 120 payments on such loan pursuant to 
     income contingent repayment; and
       ``(ii) who is employed, and was employed for the 10-year 
     period in which the borrower made the 120 payments described 
     in clause (i), in a public sector job.
       ``(B) Public sector job.--In this paragraph, the term 
     `public sector job' means a full-time job in emergency 
     management, government, public safety, law enforcement, 
     public health, education (including early childhood 
     education), or public interest legal services (including 
     prosecution or public defense).
       ``(8) Return to standard repayment.--A borrower who is 
     repaying a loan made under this part pursuant to income 
     contingent repayment may choose, at any time, to terminate 
     repayment pursuant to income contingent repayment and repay 
     such loan under the standard repayment plan.''.

     SEC. 1018. INCOME PROTECTION ALLOWANCE FOR DEPENDENT 
                   STUDENTS.

       (a) Amendment.--Section 475(g)(2)(D) (20 U.S.C. 
     1087oo(g)(2)(D)) is amended by striking ``$2,200'' and 
     inserting ``$3,000''.
       (b) Effective Date.--The amendment made by paragraph (1) 
     shall apply with respect to determinations of need for 
     periods of enrollment beginning on or after July 1, 2006.

     SEC. 1019. SIMPLIFIED NEED TEST AND AUTOMATIC ZERO 
                   IMPROVEMENTS.

       Section 479(c) of the Higher Education Act of 1965 (20 
     U.S.C. 10877ss(c)) is amended--
       (1) in paragraph (1), by striking subparagraph (B) and 
     inserting the following:
       ``(B) the sum of the adjusted gross income of the parents 
     is less than or equal to $20,000; or'';
       (2) in paragraph (2), by striking subparagraph (B) and 
     inserting the following:
       ``(B) the sum of the adjusted gross income of the student 
     and spouse (if appropriate) is less than or equal to 
     $20,000.''.

     SEC. 1020. LOAN FORGIVENESS FOR TEACHERS.

       Section 3(b)(3) of the Taxpayer-Teacher Protection Act of 
     2004 (20 U.S.C. 1078-10 note) is amended by striking ``, and 
     before October 1, 2005''.

  Mr. KENNEDY. Mr. President, I rise today to join my chairman, Senator 
Enzi, in the introduction of a bill that will bring much needed relief 
to students and families struggling to pay for college. We plan to 
report out this bill from our Committee later this week. The assistance 
it contains can not come soon enough.
  In today's global economy, a college degree is more valuable than 
ever. Students and workers must have the skills they need to succeed. 
When I graduated from high school, good jobs were available to high 
school graduates. Today, that is not the case. More and more jobs--
particularly jobs that can reasonably support a family--require men and 
women to have a college degree or certificate, and the best jobs 
require advanced degrees.
  But today, many families across America are facing a combination of 
hope and anxiety as their children go back to college--hope that their 
children will do well and anxiety about rising costs that are swamping 
family budgets.
  Public tuition is up 35 percent over the last 4 years. Nationally, 
last year, almost 200,000 qualified students didn't go to college at 
all because they couldn't afford the high cost. According to new data 
from the Congressional Advisory Committee on Student Financial 
Assistance, the poorest students face an average unmet financial need 
of nearly $6,000.
  Many who find a way to go to college are borrowing more heavily than 
ever. In 1990, only 16 percent of students took out a college loan. 
Today, it is 52 percent. Thirty years ago, the typical student aid 
package was 60 percent grants and 40 percent loans. Today, it is the 
reverse--40 percent grants and 60 percent loans. The average 
undergraduate now has $17,000 in college debt.
  Families across the country are dedicating larger and larger portions 
of their income to send their children to college. In Massachusetts, 
after taking the average financial aid package into consideration, a 
family making the average salary must contribute 31 percent of their 
income to cover the costs of sending one child to college for just one 
year. In some States, the percentage is even higher. Families are 
struggling to pay for college and as a result the doors of college are 
barred for too many students.
  Congress can do more to ease the squeeze, and this bill is an 
important step in the right direction. Many of us would like to do 
more, and we are concerned that $7 billion in this bill will be 
dedicated to Reconciliation, which will be used to pay for tax cuts for 
the wealthy.
  Nevertheless, the assistance in this bill for students and for their 
families is substantial. It provides at least $5.5 billion for 
additional grant aid to the students who need it the most. It improves 
the existing student loan programs by making important changes to 
create real competition between the various programs and keeping the 
cost of loans affordable. It also strengthens the act's graduate 
studies program, and expands access to loans and grant aid for these 
students.
  The bill also strengthens programs to prepare students to go to 
college and stay in college, such as GEAR UP and TRIO. We extend and 
improve programs to support minorities, such as the Hispanic Serving 
Institution Program, the Tribal College Program and the Historically 
Black Colleges and Universities Program. A new program supports 
institutions serving large numbers of Native American students.

[[Page S9691]]

  We are making small improvements in getting qualified young people to 
college, but we still have much to do to keep them enrolled and earn a 
degree. The committee has made an effort to address the retention issue 
by including programs to help students succeed in college.
  We also continue our focus on teacher preparation by strengthening 
partnerships with the K-12 systems who hire the teachers, and giving 
priority to preparing teachers for shortage subjects such as special 
education and math and science.
  As the bill recognizes, to help the Nation compete in today's global 
economy, we must strengthen the teaching of math and science in schools 
and colleges. It is shameful that America is now ranked only 29th in 
the industrial world in math education, and that we have fallen from 
third in the world to 15th in producing scientists and engineers.
  The bill provides strong incentives for math and science graduates to 
teach for at least 5 years in the schools that need them most. We also 
create a new scholarship program for low income students, pursuing 
careers in math, science, technology and engineering, and high need 
foreign languages.
  From our earliest days as a nation, education has been the engine of 
the American dream, and we can't let it stall. A larger share of our 
population needs to participate in postsecondary education. We looked 
at ways to expand access to working adults through modular and 
compressed coursework, and to students with disabilities who can 
benefit from taking courses rather than taking standardized tests.
  Our goal is to give all students and their parents the support they 
need to benefit from education and keep our country strong in the years 
ahead.

                          ____________________