[Congressional Record Volume 155, Number 53 (Monday, March 30, 2009)]
[House]
[Pages H4093-H4100]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 HIGHER EDUCATION TECHNICAL CORRECTIONS

  Mr. HINOJOSA. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1777) to make technical corrections to the Higher Education 
Act of 1965, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1777

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

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.
Sec. 2. References.
Sec. 3. Effective date.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. General provisions.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Institutional aid.
Sec. 302. Multiagency study of minority science programs.

                      TITLE IV--STUDENT ASSISTANCE

Sec. 401. Grants to students in attendance at institutions of higher 
              education.
Sec. 402. Federal Family Education Loan Program.
Sec. 403. Federal work-study programs.
Sec. 404. Federal Direct Loan Program.
Sec. 405. Federal Perkins Loans.
Sec. 406. Need analysis.
Sec. 407. General provisions of title IV.
Sec. 408. Program integrity.
Sec. 409. PLUS loan auction extension.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Developing institutions.

[[Page H4094]]

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. International education programs.

           TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT

Sec. 701. Graduate and postsecondary improvement programs.

                    TITLE VIII--ADDITIONAL PROGRAMS

Sec. 801. Additional programs.
Sec. 802. Amendments to other higher education Acts.

     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. EFFECTIVE DATE.

       Except as otherwise provided in this Act, the amendments 
     made by this Act shall take effect as if enacted on the date 
     of the enactment of the Higher Education Opportunity Act 
     (Public Law 110-315).

                      TITLE I--GENERAL PROVISIONS

     SEC. 101. GENERAL PROVISIONS.

       (a) Higher Education Opportunity Act.--Section 101(b) of 
     Higher Education Opportunity Act (Public Law 110-315) is 
     amended by striking ``July 1, 2010'' and inserting ``the date 
     of the enactment of this Act''.
       (b) Higher Education Act of 1965.--
       (1) Amendments.--Title I (20 U.S.C. 1001 et seq.) is 
     amended--
       (A) in section 102(a)(2)(A)(iii) (20 U.S.C. 
     1002(a)(2)(A)(iii)), as added by section 102(a)(1)(D) of the 
     Higher Education Opportunity Act (Public Law 110-315), in the 
     matter preceding subclause (I), by striking ``States--'' and 
     inserting ``States (other than a public or private nonprofit 
     nursing school located outside of the United States that was 
     participating in the program under part B of title IV on 
     August 13, 2008)--'';
       (B) in section 102(a)(2)(D) (20 U.S.C. 1002(a)(2)(D)), by 
     striking ``under part B'' and inserting ``under part B of 
     title IV'';
       (C) in section 111(b) (20 U.S.C. 1011(b)), by striking 
     ``With'' and inserting ``with'';
       (D) in section 131(a)(3)(A)(iii)(I) (20 U.S.C. 
     1015(a)(3)(A)(iii)(I)), by striking ``section 
     428(a)(2)(C)(i)'' and inserting ``section 428(a)(2)(C)(ii)'';
       (E) in section 136(d)(1) (20 U.S.C. 1015e(d)(1)), by 
     striking ``(Family Educational Rights and Privacy Act of 
     1974)'' and inserting ``(commonly known as the `Family 
     Educational Rights and Privacy Act of 1974')'';
       (F) in section 141 (20 U.S.C. 1018)--
       (i) in the matter preceding subparagraph (A) of subsection 
     (c)(3), by striking ``under this title'' and inserting 
     ``under title IV''; and
       (ii) in subsection (d)(3), by striking ``appropriate 
     committees of Congress'' and inserting ``authorizing 
     committees''; and
       (G) in section 153(a)(1)(B)(iii)(V) (20 U.S.C. 
     1019b(a)(1)(B)(iii)(V)), by striking ``borrowers who take out 
     loans under'' each place the term appears and inserting 
     ``borrowers of loans made under''.
       (2) Effective date.--The amendment made by paragraph (1)(A) 
     of subsection (b) shall be effective as if enacted as part of 
     the amendment in section 102(a)(1)(D) of the Higher Education 
     Opportunity Act (Public Law 110-315), and shall take effect 
     on July 1, 2010.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

     SEC. 201. TEACHER QUALITY ENHANCEMENT.

       Title II (20 U.S.C. 1021 et seq.) is amended--
       (1) in section 202 (20 U.S.C. 1022a)--
       (A) in subsection (b)(6)(E)(ii), by striking ``section 
     1111(b)(2)'' and inserting ``section 1111(b)(1)''; and
       (B) in subsection (i)(3), by striking ``consent of'' and 
     inserting ``consent to''; and
       (2) in section 231(a)(1) (20 U.S.C. 1032(a)(1)), by 
     striking ``serve graduate'' and inserting ``assist in the 
     graduation of''.

                      TITLE III--INSTITUTIONAL AID

     SEC. 301. INSTITUTIONAL AID.

       Title III (20 U.S.C. 1051 et seq.) is amended--
       (1) in section 316 (20 U.S.C. 1059c)--
       (A) in subsection (a), by striking ``Indian Tribal'' and 
     inserting ``Tribal'';
       (B) in subsection (b)--
       (i) in paragraph (1), by striking ``the Tribally Controlled 
     College or University Assistance Act of 1978'' and inserting 
     ``the Tribally Controlled Colleges and Universities 
     Assistance Act of 1978'';
       (ii) in paragraph (2), by striking ``the Tribally 
     Controlled College or University Assistance Act of 1978'' and 
     inserting ``the Tribally Controlled Colleges and Universities 
     Assistance Act of 1978''; and
       (iii) in paragraph (3)(A), by striking ``the Navajo 
     Community College Assistance Act of 1978'' and inserting 
     ``the Navajo Community College Act''; and
       (C) in subsection (d)(4)(A), by striking ``part B'' and 
     inserting ``part B of this title'';
       (2) in section 318 (20 U.S.C. 1059e)--
       (A) by amending subsection (b)(1)(F) to read as follows:
       ``(F) is not receiving assistance under--
       ``(i) part B of this title;
       ``(ii) part A of title V; or
       ``(iii) an annual authorization of appropriations under the 
     Act of March 2, 1867 (14 Stat. 438; 20 U.S.C. 123).''; and
       (B) in subsection (i), by striking ``part B, or'' and 
     inserting ``part B of this title, or'';
       (3) in section 319(d)(3)(A) (20 U.S.C. 1059f(d)(3)(A)), by 
     striking ``part B, or'' and inserting ``part B of this title, 
     or'';
       (4) in section 320(d)(3)(A) (20 U.S.C. 1059g(d)(3)(A)), by 
     striking ``part B, or'' and inserting ``part B of this title, 
     or'';
       (5) in section 323(a) (20 U.S.C. 1062(a)), by striking ``in 
     any fiscal year'' and inserting ``for any fiscal year'';
       (6) in section 324(d) (20 U.S.C. 1063(d))--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (B) by striking ``Notwithstanding subsections (a)'' and 
     inserting ``(1) Notwithstanding subsections (a)''; and
       (C) by adding at the end the following:
       ``(2) If the amount appropriated pursuant to section 
     399(a)(2)(A) for any fiscal year is not sufficient to pay the 
     minimum allotment required by paragraph (1) of this 
     subsection to all part B institutions, the amount of such 
     minimum allotments shall be ratably reduced. If additional 
     sums become available for such fiscal year, such reduced 
     allocations shall be increased on the same basis as the basis 
     on which they were reduced (until the amount allotted equals 
     the minimum allotment required by paragraph (1)).'';
       (7) in section 351(a) (20 U.S.C. 1067a(a))--
       (A) by striking ``section 304(a)(1)'' and inserting 
     ``section 303(a)(1)''; and
       (B) by striking ``of 1979'';
       (8) in section 355(a) (20 U.S.C. 1067e(a)), by striking 
     ``302'' and inserting ``312'';
       (9) in section 371(c) (20 U.S.C. 1067q(c))--
       (A) in paragraph (3)(D), by striking ``402A(g)'' and 
     inserting ``402A(h)'';
       (B) in paragraph (4), by striking ``402A(g)'' and inserting 
     ``402A(h)''; and
       (C) in paragraph (9)--
       (i) in subparagraph (C)(iii), by striking ``402A(g)'' and 
     inserting ``402A(h)''; and
       (ii) by amending subparagraph (F) to read as follows:
       ``(F) is not receiving assistance under--
       ``(i) part B of this title;
       ``(ii) part A of title V; or
       ``(iii) an annual authorization of appropriations under the 
     Act of March 2, 1867 (14 Stat. 438; 20 U.S.C. 123).''; and
       (10) in section 392(a)(6) (20 U.S.C. 1068a(a)(6)), by 
     striking ``College or University'' and inserting ``Colleges 
     and Universities''.

     SEC. 302. MULTIAGENCY STUDY OF MINORITY SCIENCE PROGRAMS.

       Section 1024 (20 U.S.C. 1067d) is repealed.

                      TITLE IV--STUDENT ASSISTANCE

     SEC. 401. GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF 
                   HIGHER EDUCATION.

       (a) Amendments.--Part A of title IV (20 U.S.C. 1070 et 
     seq.) is amended--
       (1) in section 400(b) (20 U.S.C. 1070(b)), by striking ``1 
     through 8'' and inserting ``1 through 9'';
       (2) in section 401 (20 U.S.C. 1070a)--
       (A) in the second sentence of subsection (a)(1), by 
     striking ``manner,,'' and inserting ``manner,'';
       (B) in subsection (b)(1), by striking ``section 401'' and 
     inserting ``this section''; and
       (C) in subsection (b)(9)(A)--
       (i) in clause (vi), by striking ``$105,000,000'' and 
     inserting ``$140,000,000''; and
       (ii) in clause (viii), by striking ``$4,400,000,000'' and 
     inserting ``$4,470,000,000'';
       (3) by striking paragraph (4) of section 401(f) (20 U.S.C. 
     1070a(f)), as added by section 401(c) of the Higher Education 
     Opportunity Act (Public Law 110-315);
       (4) in section 402A (20 U.S.C. 1070a-11)--
       (A) in subsection (b)(1), by striking ``organizations 
     including'' and inserting ``organizations, including''; and
       (B) in subsection (c)(8)(C)(iv)(I), by inserting ``to be'' 
     after ``determined'';
       (5) in section 402E(d)(2)(C) (20 U.S.C. 1070a-15(d)(2)(C)), 
     by striking ``320.'' and inserting ``320'';
       (6) in section 419C(b)(1) (20 U.S.C. 1070d-33(b)(1)), by 
     inserting ``and'' after the semicolon at the end; and
       (7) in section 419D(d) (20 U.S.C. 1070d-34(d)), by striking 
     ``1134'' and inserting ``134''.
       (b) Higher Education Opportunity Act.--Section 404 of the 
     Higher Education Opportunity Act (Public Law 110-315) is 
     amended by adding at the end the following new subsection:
       ``(i) Effective Date.--The amendments made by subsection 
     (e) of this section shall apply only with respect to grant 
     awards made on or after the date of enactment of this Act.''.

     SEC. 402. FEDERAL FAMILY EDUCATION LOAN PROGRAM.

       (a) Amendment to Provision Amended by the College Cost 
     Reduction and Access Act.--
       (1) In general.--Section 428(b)(1)(G)(i) (20 U.S.C. 
     1078(b)(1)(G)(i)), as amended by section 303 of the College 
     Cost Reduction and Access Act (Public Law 110-84), is amended 
     by striking ``or 439(q)''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective as if enacted as part of the amendment in 
     section 303(a) of the College Cost Reduction and Access Act 
     (Public Law 110-84), and shall take effect on October 1, 
     2012, and apply with respect to loans made on or after such 
     date.
       (b) Entrance Counseling Functions.--
       (1) Guaranty agencies.--Section 428(b)(3) (20 U.S.C. 
     1078(b)(3)) is amended--
       (A) in subparagraph (C), by inserting ``or 485(l)'' after 
     ``section 485(b)''; and
       (B) in subparagraph (D), by inserting ``or 485(l)'' after 
     ``section 485(b)''.
       (2) Eligible lenders.--Section 435(d)(5) (20 U.S.C. 
     1085(d)(5)) is amended--

[[Page H4095]]

       (A) in subparagraph (E), by inserting ``or 485(l)'' after 
     ``section 485(b)''; and
       (B) in subparagraph (F), by inserting ``or 485(l)'' after 
     ``section 485(b)''.
       (c) Amendment to Provision Amended by the Higher Education 
     Opportunity Act.--
       (1) In general.--Section 428C(c)(3)(A) (20 U.S.C. 1078-
     3(c)(3)(A)), as amended by section 425 of the Higher 
     Education Opportunity Act (Public Law 110-315), is amended by 
     striking ``section 493C'' and inserting ``section 493C,''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective as if enacted as part of the amendment in 
     section 425(d)(1) of the Higher Education Opportunity Act 
     (Public Law 110-315), and shall take effect on July 1, 2009.
       (d) Rehabilitation of Student Loans.--
       (1) Section 428F (20 U.S.C. 1078-6) is amended--
       (A) in subsection (a)--
       (i) by amending paragraph (1) to read as follows:
       ``(1) Sale or assignment of loan.--
       ``(A) In general.--Each guaranty agency, upon securing 9 
     payments made within 20 days of the due date during 10 
     consecutive months of amounts owed on a loan for which the 
     Secretary has made a payment under paragraph (1) of section 
     428(c), shall--
       ``(i) if practicable, sell the loan to an eligible lender; 
     or
       ``(ii) on or before September 30, 2011, assign the loan to 
     the Secretary if--

       ``(I) the Secretary has determined that market conditions 
     unduly limit a guaranty agency's ability to sell loans under 
     clause (i); and
       ``(II) the guaranty agency has been unable to sell loans 
     under clause (i).

       ``(B) Monthly payments.--Neither the guaranty agency nor 
     the Secretary shall demand from a borrower as monthly 
     payments amounts described in subparagraph (A) more than is 
     reasonable and affordable based on the borrower's total 
     financial circumstances.
       ``(C) Consumer reporting agencies.--
       ``(i) Notice of sale or assignment.--Upon the sale or 
     assignment of a loan under this paragraph, the guaranty 
     agency or other holder of the loan shall report that sale or 
     assignment to any consumer reporting agency to which the 
     guaranty agency or other holder reported the default of the 
     loan, and request that the record of default be removed from 
     the borrower's credit history.
       ``(ii) Removal from credit reports.--Notwithstanding 
     paragraphs (4) and (5) of section 605(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681c(a)(4) and (5)) and section 
     430A(f) of this Act, no consumer reporting agency shall 
     include adverse information on any loan sold or assigned 
     under this paragraph (or any defaulted loan held by the 
     Secretary, on which the borrower has made 9 payments within 
     20 days of the due date during 10 consecutive months of 
     amounts owed on the defaulted loan), in a report regarding a 
     borrower whose loan is reported sold or assigned by the 
     guaranty agency (or a borrower of a defaulted loan who is 
     reported by the Secretary as having made such payments). The 
     consumer reporting agency shall, within 10 days of receiving 
     such notice from the guaranty agency (or the Secretary, as 
     the case may be) of such sale or assignment, exclude such 
     adverse information from any reports.
       ``(D) Duties upon sale.--With respect to a loan sold under 
     subparagraph (A)(i)--
       ``(i) the guaranty agency--

       ``(I) shall repay the Secretary 81.5 percent of the amount 
     of the principal balance outstanding at the time of such 
     sale, multiplied by the reinsurance percentage in effect when 
     payment under the guaranty agreement was made with respect to 
     the loan; and
       ``(II) may, in order to defray collection costs--

       ``(aa) charge to the borrower an amount of not to exceed 
     18.5 percent of the outstanding principal and interest at the 
     time of the loan sale; and
       ``(bb) retain such amount from the proceeds of the loan 
     sale; and
       ``(ii) the Secretary shall reinstate the Secretary's 
     obligation to--

       ``(I) reimburse the guaranty agency for the amount that the 
     agency may, in the future, expend to discharge its guaranty 
     obligation; and
       ``(II) pay to the holder of such loan a special allowance 
     pursuant to section 438.

       ``(E) Duties upon assignment.--With respect to a loan 
     assigned under subparagraph (A)(ii)--
       ``(i) the guaranty agency shall add to the principal and 
     interest outstanding at the time of the assignment of such 
     loan an amount equal to the amount described in subparagraph 
     (D)(i)(II); and
       ``(ii) the Secretary shall pay the guaranty agency, for 
     deposit in the agency's Operating Fund established pursuant 
     to section 422B, an amount equal to the amount added to the 
     principal and interest outstanding at the time of the 
     assignment in accordance with clause (i).
       ``(F) Eligible lender limitation.--A loan shall not be sold 
     to an eligible lender under subparagraph (A)(i) if such 
     lender has been found by the guaranty agency or the Secretary 
     to have substantially failed to exercise the due diligence 
     required of lenders under this part.
       ``(G) Default due to error.--A loan that does not meet the 
     requirements of subparagraph (A) may also be eligible for 
     sale or assignment under this paragraph upon a determination 
     that the loan was in default due to clerical or data 
     processing error and would not, in the absence of such error, 
     be in a delinquent status.'';
       (ii) in paragraph (2)--

       (I) by striking ``paragraph (1) of this subsection'' and 
     inserting ``paragraph (1)(A)(i)''; and
       (II) by striking ``paragraph (1)(B)(ii) of this 
     subsection'' and inserting ``paragraph (1)(D)(ii)(I)'';

       (iii) in paragraph (3)--

       (I) by striking ``sold under paragraph (2)'' and inserting 
     ``sold or assigned under paragraph (1)(A)''; and
       (II) by striking ``sale.'' and inserting ``sale or 
     assignment.'';

       (iv) in paragraph (4), by striking ``which is sold under 
     paragraph (1) of this subsection'' and inserting ``that is 
     sold or assigned under paragraph (1)''; and
       (v) in paragraph (5), by inserting ``(whether by loan sale 
     or assignment)'' after ``rehabilitating a loan''; and
       (B) in subsection (b), in the first sentence, by inserting 
     ``or assigned to the Secretary'' after ``sold to an eligible 
     lender''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall be effective on the date of enactment of this Act, and 
     shall apply to any loan on which monthly payments described 
     in section 428F(a)(1)(A) were paid before, on, or after such 
     date of enactment.
       (e) Repayment in Full for Death and Disability.--
       (1) In general.--Section 437(a)(1) (20 U.S.C. 1087(a)(1)), 
     as amended by section 437 of the Higher Education Opportunity 
     Act (Public Law 110-315), is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     ``Secretary),, or if'' and inserting ``Secretary), or if''; 
     and
       (B) in subparagraph (B), by inserting ``the reinstatement 
     and resumption to be'' after ``determines''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall be effective as if enacted as part of the amendments in 
     section 437(a) of the Higher Education Opportunity Act 
     (Public Law 110-315), and shall take effect on July 1, 2010.
       (f) Other Amendments.--Part B of title IV (20 U.S.C. 1071 
     et seq.) is further amended--
       (1) in section 428 (20 U.S.C. 1078)--
       (A) in subsection (a)(2)(A)(i)(II), by striking ``and'' 
     after the semicolon at the end;
       (B) in subsection (b)--
       (i) in the matter following subclause (II) of paragraph 
     (1)(M)(i), by inserting ``section'' before ``428B'';
       (ii) in paragraph (3)(A)(i), by striking ``any institution 
     of higher education or the employees of an institution of 
     higher education'' and inserting ``any institution of higher 
     education, any employee of an institution of higher 
     education, or any individual or entity'';
       (iii) in paragraph (4), by striking ``For the purpose of 
     paragraph (1)(M)(i)(III) of this subsection,'' and inserting 
     ``With respect to the graduate fellowship program referred to 
     in paragraph (1)(M)(i)(II),''; and
       (iv) in paragraph (7)--

       (I) in subparagraph (B), by striking ``clause (i) or (ii) 
     of''; and
       (II) in subparagraph (D), by striking ``subparagraph 
     (A)(i)'' and inserting ``subparagraph (A)''; and

       (C) in subsection (c)(9)(K), by striking ``3 months'' and 
     inserting ``6 months'';
       (2) in section 428B(e) (20 U.S.C. 1078-2(e))--
       (A) in paragraph (3)(B), by striking ``subsection 
     (c)(5)(B)'' and inserting ``subsection (d)(5)(B)''; and
       (B) by repealing paragraph (5);
       (3) in section 428C (20 U.S.C. 1078-3)--
       (A) in subsection (a)(4)(E), by striking ``subpart II of 
     part B'' and inserting ``part E'';
       (B) in subsection (c)(2), by striking ``subsection 
     (b)(2)(F)'' and inserting ``subsection (b)(2)'';
       (C) in subsection (d)(3)(D), by striking ``loan insurance 
     fund'' and inserting ``loan insurance account''; and
       (D) in subsection (f)(3), by striking ``subsection (a)'' 
     and inserting ``this subsection'';
       (4) in section 428G(c) (20 U.S.C. 1078-7(c))--
       (A) in paragraph (1), by striking ``section 
     428(a)(2)(A)(i)(III)'' and inserting ``section 
     428(a)(2)(A)(i)(II)''; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) notwithstanding subsection (a)(2), may, with the 
     permission of the borrower, be disbursed by the lender on a 
     weekly or monthly basis, provided that the proceeds of the 
     loan are disbursed by the lender in substantially equal 
     weekly or monthly installments, as the case may be, over the 
     period of enrollment for which the loan is made.'';
       (5) in section 428H (20 U.S.C. 1078-8)--
       (A) in subsection (d), by amending the text of the header 
     of paragraph (2) to read as follows: ``Limits for graduate, 
     professional, and independent postbaccalaureate students''; 
     and
       (B) by amending paragraph (6) to read as follows:
       ``(6) Repayment period.--For purposes of calculating the 
     repayment period under section 428(b)(9), such period shall 
     commence at the time the first payment of principal is due 
     from the borrower.'';
       (6) in section 428J (20 U.S.C. 1078-10)--
       (A) in subsection (c)(1), by adding at the end the 
     following: ``No borrower may receive a reduction of loan 
     obligations under both this section and section 460.''; and
       (B) in subsection (g)(2)--
       (i) in subparagraph (B), by inserting ``or'' after the 
     semicolon at the end;
       (ii) by striking subparagraph (C);

[[Page H4096]]

       (iii) by redesignating subparagraph (D) as subparagraph 
     (C); and
       (iv) in subparagraph (C), as redesignated by clause (iii), 
     by striking ``12571'' and inserting ``12601'';
       (7) in section 428K(g)(9)(B) (20 U.S.C. 1078-11(g)(9)(B)), 
     by striking ``under subsection (ll)(3) of such section (42 
     U.S.C. 1395x(ll)(3))'' and inserting ``under subsection 
     (ll)(4) of such section (42 U.S.C. 1395x(ll)(4))'';
       (8) in section 430A(f) (20 U.S.C. 1080A(f)), by striking 
     ``(6)'' each place it appears and inserting ``(5)'';
       (9) in section 432 (20 U.S.C. 1082)--
       (A) in subsection (b), by striking ``section 1078 of this 
     title'' and inserting ``section 428''; and
       (B) in subsection (m)(1)(B)--
       (i) in clause (i), by inserting ``and'' after the semicolon 
     at the end; and
       (ii) in clause (ii), by striking ``; and'' and inserting a 
     period;
       (10) in section 435 (20 U.S.C. 1085)--
       (A) in subsection (a)(2)(C)(ii), by striking ``a tribally 
     controlled community college within the meaning of section 
     2(a)(4) of the Tribally Controlled Community College 
     Assistance Act of 1978'' and inserting ``a tribally 
     controlled college or university, as defined in section 
     2(a)(4) of the Tribally Controlled Colleges and Universities 
     Assistance Act of 1978'';
       (B) in subsection (d)--
       (i) in paragraph (1)--

       (I) in subparagraph (A)(ii)(III), by striking ``section 
     501(1) of such Code'' and inserting ``section 501(a) of such 
     Code''; and
       (II) in subparagraph (G), by striking ``sections 428A(d), 
     428B(d), and 428C,'' and inserting ``sections 428B(d) and 
     428C,'';

       (ii) in paragraph (2)(A)(vi), by striking ``section 
     435(m)'' and inserting ``subsection (m)'';
       (iii) in paragraph (3), by striking ``section 435(m)'' and 
     inserting ``subsection (m)''; and
       (iv) in paragraph (5)(A), by striking ``to any institution 
     of higher education or any employee of an institution of 
     higher education in order to secure applicants for loans 
     under this part'' and inserting ``to any institution of 
     higher education, any employee of an institution of higher 
     education, or any individual or entity in order to secure 
     applicants for loans under this part'';
       (C) in subsection (o)(1)(A)(ii), by striking ``Service'' 
     and inserting ``Services''; and
       (D) in subsection (p)(1), by striking ``section 771'' and 
     inserting ``section 781'';
       (11) in section 438(b)(2) (20 U.S.C. 1087-1(b)(2))--
       (A) in the second sentence of subparagraph (A), by striking 
     ``427A(f)'' and inserting ``427A(i)'';
       (B) in the first sentence of subparagraph (B)(i), by 
     striking ``1954'' and inserting ``1986''; and
       (C) in the second sentence of subparagraph (F), by striking 
     ``427A(f)'' and inserting ``427A(i)''; and
       (12) in section 439(r)(2)(A)(i) (20 U.S.C. 1087-
     2(r)(2)(A)(i)), by striking ``appoint'' and all that follows 
     through ``to conduct'' and inserting ``appoint and fix the 
     compensation of such auditors and examiners as may be 
     necessary to conduct''.

     SEC. 403. FEDERAL WORK-STUDY PROGRAMS.

       Section 443 (42 U.S.C. 2753) is amended--
       (1) in subsection (b)(2), by striking ``section 443'' and 
     inserting ``this section'';
       (2) in subsection (d)(1), by striking ``subsection 
     (b)(2)(B)'' and inserting ``subsection (b)(2)(A)''; and
       (3) in subsection (e)(1), by striking ``in accordance with 
     such subsection''.

     SEC. 404. FEDERAL DIRECT LOAN PROGRAM.

       (a) Temporary Authority to Purchase Loans.--Section 459A 
     (20 U.S.C. 1087i-1) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), in the matter preceding subparagraph 
     (A), by striking ``purchase of loans under this section'' and 
     inserting ``purchase of loans under paragraph (1)''; and
       (B) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Temporary authority to purchase rehabilitated 
     loans.--
       ``(A) Authority.--In addition to the authority described in 
     paragraph (1), the Secretary, in consultation with the 
     Secretary of the Treasury, is authorized to purchase, or 
     enter into forward commitments to purchase, from any eligible 
     lender (as defined in section 435(d)(1)), loans that such 
     lender purchased under section 428F on or after October 1, 
     2003, and before July 1, 2010, and that are not in default, 
     on such terms as the Secretary, the Secretary of the 
     Treasury, and the Director of the Office of Management and 
     Budget jointly determine are in the best interest of the 
     United States, except that any purchase under this section 
     shall not result in any net cost to the Federal Government 
     (including the cost of servicing the loans purchased), as 
     determined jointly by the Secretary, the Secretary of the 
     Treasury, and the Director of the Office of Management and 
     Budget.
       ``(B) Federal register notice.--The Secretary, the 
     Secretary of the Treasury, and the Director of the Office of 
     Management and Budget, shall jointly publish a notice in the 
     Federal Register prior to any purchase of loans under this 
     paragraph that--
       ``(i) establishes the terms and conditions governing the 
     purchases authorized by this paragraph;
       ``(ii) includes an outline of the methodology and factors 
     that the Secretary, the Secretary of the Treasury, and the 
     Director of the Office of Management and Budget, will jointly 
     consider in evaluating the price at which to purchase loans 
     rehabilitated pursuant to section 428F(a); and
       ``(iii) describes how the use of such methodology and 
     consideration of such factors used to determine purchase 
     price will ensure that loan purchases do not result in any 
     net cost to the Federal Government (including the cost of 
     servicing the loans purchased).''; and
       (2) by amending subsection (b) to read as follows:
       ``(b) Proceeds.--The Secretary shall require, as a 
     condition of any purchase under subsection (a), that the 
     funds paid by the Secretary to any eligible lender under this 
     section shall be used--
       ``(1) to ensure continued participation of such lender in 
     the Federal student loan programs authorized under part B of 
     this title; and
       ``(2)(A) in the case of loans purchased pursuant to 
     subsection (a)(1), to originate new Federal loans to 
     students, as authorized under part B of this title; or
       ``(B) in the case of loans purchased pursuant to subsection 
     (a)(3), to originate such new Federal loans to students, or 
     to purchase loans in accordance with section 428F(a).''.
       (b) Other Amendments.--Part D of title IV (20 U.S.C. 1087a 
     et seq.) is amended--
       (1) by repealing paragraph (3) of section 453(c) (20 U.S.C. 
     1087c(c));
       (2) in section 455 (20 U.S.C. 1087e)--
       (A) in subsection (d)(1)(C), by striking 
     ``428(b)(9)(A)(v)'' and inserting ``428(b)(9)(A)(iv)'';
       (B) in subsection (h), by striking ``(except as authorized 
     under section 457(a)(1))''; and
       (C) in subsection (k)(1)(B), by striking ``, or in a notice 
     under section 457(a)(1),'';
       (3) by repealing section 457 (20 U.S.C. 1087g); and
       (4) in section 460 (20 U.S.C. 1087j)--
       (A) in subsection (c)(1), by adding at the end the 
     following: ``No borrower may receive a reduction of loan 
     obligations under both this section and section 428J.''; and
       (B) in subsection (g)(2)--
       (i) by striking subparagraph (A);
       (ii) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (A) through (C), respectively; and
       (iii) in subparagraph (C), as redesignated by clause (ii), 
     by striking ``12571'' and inserting ``12601''.

     SEC. 405. FEDERAL PERKINS LOANS.

       Part E of title IV (20 U.S.C. 1087aa et seq.) is amended--
       (1) in section 462(a)(1) (20 U.S.C. 1087bb(a)(1)), by 
     striking subparagraph (A) and inserting the following:
       ``(A) 100 percent of the amount 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), multiplied by'';
       (2) in section 463(c) (20 U.S.C. 1087cc(c))--
       (A) in paragraph (2)--
       (i) by moving the margins of subparagraph (A) 2 ems to the 
     left; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) information concerning the repayment and collection 
     of any such loan, including information concerning the status 
     of such loan; and''; and
       (B) in paragraph (3), by striking ``(6)'' each place it 
     appears and inserting ``(5)'';
       (3) in the first sentence of the matter preceding paragraph 
     (1) of section 463A(a) (20 U.S.C. 1087cc-1(a)), by striking 
     ``, in order to carry out the provisions of section 
     463(a)(8),'';
       (4) in section 464 (20 U.S.C. 1087dd)--
       (A) in subsection (c)--
       (i) in paragraph (1)(D)--

       (I) by striking ``(I)'' and inserting ``(i)''; and
       (II) by striking ``(II)'' and inserting ``(ii)''; and

       (ii) in paragraph (2)(A)(iii)--

       (I) by aligning the margin of the matter preceding 
     subclause (I) with the margins of clause (ii);
       (II) by aligning the margins of subclauses (I) and (II) 
     with the margins of clause (i)(I); and
       (III) by aligning the margins of the matter following 
     subclause (ii) with the margins of the matter following 
     subclause (II) of clause (i); and

       (B) in subsection (g)(5), by striking ``credit bureaus'' 
     and inserting ``consumer reporting agencies'';
       (5) in section 465(a)(6) (20 U.S.C. 1087ee(a)(6)), by 
     striking ``12571'' and inserting ``12601'';
       (6) in section 467(b) (20 U.S.C. 1087gg(b)), by striking 
     ``paragraph (5)(A), (5)(B)(i), or (6)'' and inserting 
     ``paragraph (4) or (5)''; and
       (7) in section 469(c) (20 U.S.C. 1087ii(c)), by striking 
     ``and the term'' and all that follows through the period at 
     the end and inserting ``and the term `early intervention 
     services' has the meaning given the term in section 632 of 
     such Act.''.

     SEC. 406. NEED ANALYSIS.

       (a) Amendments.--Part F of title IV (20 U.S.C. 1087kk et 
     seq.) is amended--
       (1) in section 473 (20 U.S.C. 1087mm)--
       (A) by striking ``For the purpose of this title, except 
     subpart 2 of part A,'' and inserting ``(a) In General.--For 
     the purpose of this title, other than subpart 2 of part A, 
     and except as provided in subsection (b),''; and
       (B) by adding at the end the following:
       ``(b) Special Rule.--

[[Page H4097]]

       ``(1) In general.--Notwithstanding any other provision of 
     this title, the family contribution of each student described 
     in paragraph (2) shall be deemed to be zero for the academic 
     year for which the determination is made.
       ``(2) Applicability.--Paragraph (1) shall apply to any 
     dependent or independent student with respect to 
     determinations of need for academic year 2009-2010 and 
     succeeding academic years--
       ``(A) who is eligible to receive a Federal Pell Grant for 
     the academic year for which the determination is made;
       ``(B) whose parent or guardian was a member of the Armed 
     Forces of the United States and died as a result of 
     performing military service in Iraq or Afghanistan after 
     September 11, 2001; and
       ``(C) who, at the time of the parent or guardian's death, 
     was--
       ``(i) less than 24 years of age; or
       ``(ii) was enrolled at an institution of higher education 
     on not less than a part-time basis.
       ``(3) Information.--Notwithstanding any other provision of 
     law, the Secretary of Veterans Affairs and the Secretary of 
     Defense, as appropriate, shall provide the Secretary of 
     Education with information necessary to determine which 
     students meet the requirements of paragraph (2).'';
       (2) in section 475(c)(5)(B) (20 U.S.C. 1087oo(c)(5)(B)), by 
     inserting ``of 1986'' after ``Code'';
       (3) in section 477(b)(5)(B) (20 U.S.C. 1087qq(b)(5)(B)), by 
     inserting ``of 1986'' after ``Code'';
       (4) in section 479 (20 U.S.C. 1087ss)--
       (A) in subsection (b) (as amended by section 602 of the 
     College Cost Reduction and Access Act (110-84))--
       (i) in paragraph (1)(A)(i), by amending subclause (III) to 
     read as follows:

       ``(III) include at least one parent who is a dislocated 
     worker; or'';

       (ii) in paragraph (1)(B)(i), by amending subclause (III) to 
     read as follows:

       ``(III) is a dislocated worker or is married to a 
     dislocated worker; or''; and

       (B) in subsection (c) (as amended by such section 602)--
       (i) in paragraph (1)(A), by amending clause (iii) to read 
     as follows:
       ``(iii) include at least one parent who is a dislocated 
     worker; or''; and
       (ii) in paragraph (2)(A), by amending clause (iii) to read 
     as follows:
       ``(iii) is a dislocated worker or is married to a 
     dislocated worker; or'';
       (5) in section 479C (20 U.S.C. 1087uu-1)--
       (A) in paragraph (1), by striking ``under'' and all that 
     follows through ``; and'' and inserting ``under Public Law 
     98-64 (25 U.S.C. 11a et seq.; 97 Stat. 365) (commonly known 
     as the `Per Capita Act ' or Public Law 93-134 (25 U.S.C. 1401 
     et seq.; 87 Stat. 466)(commonly known as the `Indian Tribal 
     Judgment Funds Use or Distribution Act'); and''; and
       (B) in paragraph (2)--
       (i) by striking ``Alaskan'' and inserting ``Alaska'';
       (ii) by inserting ``(43 U.S.C. 1601 et seq.)'' before ``or 
     the''; and
       (iii) by inserting ``of 1980 (25 U.S.C. 1721 et seq.)'' 
     after ``Maine Indian Claims Settlement Act'';
       (6) in section 480(a)(2) (20 U.S.C. 1087vv(a)(2)), by 
     striking ``12571'' and inserting ``12511'';
       (7) in section 480(c)(2) (20 U.S.C. 1087vv(c)(2))--
       (A) in the matter preceding subparagraph (A), by striking 
     ``the following'' and inserting ``benefits under the 
     following provisions of law''; and
       (B) by striking subparagraphs (A) through (J) and inserting 
     the following:
       ``(A) Chapter 103 of title 10, United States Code (Senior 
     Reserve Officers' Training Corps).
       ``(B) Chapter 1606 of title 10, United States Code 
     (Selected Reserve Educational Assistance Program).
       ``(C) Chapter 1607 of title 10, United States Code 
     (Educational Assistance Program for Reserve Component Members 
     Supporting Contingency Operations and Certain Other 
     Operations).
       ``(D) Chapter 30 of title 38, United States Code (All-
     Volunteer Force Educational Assistance Program, also known as 
     the `Montgomery GI Bill--active duty').
       ``(E) Chapter 31 of title 38, United States Code (Training 
     and Rehabilitation for Veterans with Service-Connected 
     Disabilities).
       ``(F) Chapter 32 of title 38, United States Code (Post-
     Vietnam Era Veterans' Educational Assistance Program).
       ``(G) Chapter 33 of title 38, United States Code (post-9/11 
     educational assistance).
       ``(H) Chapter 35 of title 38, United States Code 
     (Survivors' and Dependents Educational Assistance Program).
       ``(I) Section 903 of the Department of Defense 
     Authorization Act, 1981 (10 U.S.C. 2141 note) (Educational 
     Assistance Pilot Program).
       ``(J) Section 156(b) of the `Joint Resolution making 
     further continuing appropriations and providing for 
     productive employment for the fiscal year 1983, and for other 
     purposes' (42 U.S.C. 402 note) (Restored Entitlement Program 
     for Survivors, also known as `Quayle benefits').''; and
       (8) in section 480(j)(1) (20 U.S.C. 1087vv(j)(1)), by 
     striking ``12571'' and inserting ``12511''.
       (b) Effective Date.--The amendments made by paragraph 
     (1)(B) of subsection (a) shall take effect on July 1, 2009, 
     and the amendments made by paragraph (4) of such subsection 
     shall be effective as if enacted as part of the amendments in 
     section 602(a) of the College Cost Reduction and Access Act 
     (Public Law 110-84).
       (c) Higher Education Opportunity Act.--Section 473(f) of 
     the Higher Education Opportunity Act (Public Law 110-315) is 
     amended by inserting ``, except that the amendments made in 
     subsection (e) shall take effect on July 1, 2009'' before the 
     period at the end.

     SEC. 407. GENERAL PROVISIONS OF TITLE IV.

       (a) Delayed Implementation of EZ FAFSA.--Notwithstanding 
     any other provision of law, the Secretary of Education shall 
     be required to carry out the requirements under the following 
     provisions of section 483 of the Higher Education Act of 1965 
     (20 U.S.C. 1090) only for academic year 2010-2011 and 
     subsequent academic years:
       (1) In subsection (a) of such section--
       (A) subparagraphs (A)(i) and (B) of paragraph (2);
       (B) in paragraph (3)--
       (i) the second sentence of subparagraph (A);
       (ii) clauses (i) and (ii) of subparagraph (B); and
       (iii) subparagraph (C);
       (C) paragraph (4)(A)(iv); and
       (D) paragraph (5)(E).
       (2) Subsection (h) of such section.
       (b) Other Amendments.--Part G of title IV (20 U.S.C. 1088 
     et seq.) is amended--
       (1) in the matter preceding paragraph (1) of section 481(c) 
     (20 U.S.C. 1088(c)), by striking ``or any State, or private, 
     profit or nonprofit organization'' and inserting ``any State, 
     or any private, for-profit or nonprofit organization,'';
       (2) in section 482(b) (20 U.S.C. 1089(b)), by striking 
     ``413D(e), 442(e), or 462(j)'' and inserting ``413D(d), 
     442(d), or 462(i)'';
       (3) in section 483 (20 U.S.C. 1090)--
       (A) in subsection (a)(3)(C), by inserting ``that'' after 
     ``except''; and
       (B) in subsection (e)(8)(A), by striking ``identify'' and 
     inserting ``determine'';
       (4) in section 484 (20 U.S.C. 1091)--
       (A) in the matter preceding subparagraph (A) of subsection 
     (a)(4), by striking ``certification,,'' and inserting 
     ``certification,'';
       (B) in subsection (b)(1)(B)--
       (i) by striking ``have (A)'' and inserting ``have (i)''; 
     and
       (ii) by striking ``and (B)'' and inserting ``and (ii)'';
       (C) in subsection (f)(1), by striking ``part B'' and all 
     that follows through ``part E'' in each place that the phrase 
     occurs and inserting ``part B, part D, or part E'';
       (D) in subsection (h)--
       (i) in paragraph (2), by striking ``(h)(4)(A)(i)'' and 
     inserting ``(g)(4)(A)(i)''; and
       (ii) in paragraph (3), by striking ``(h)(4)(B)(i)'' and 
     inserting ``(g)(4)(B)(i)''; and
       (E) in subsection (n), by striking ``section 1113 of Public 
     Law 97-252'' and inserting ``section 12(f) of the Military 
     Selective Service Act (50 U.S.C. App. 462(f))'';
       (5) in section 485 (20 U.S.C. 1092)--
       (A) in subsection (a)--
       (i) in paragraph (1)--

       (I) the matter preceding subparagraph (A), by striking 
     ``also referred to as the Family Educational Rights and 
     Privacy Act of 1974'' and inserting ``commonly known as the 
     `Family Educational Rights and Privacy Act of 1974' ''; and
       (II) in subparagraph (I), by striking ``handicapped 
     students'' and inserting ``students with disabilities'';

       (ii) in paragraph (4)(B), by inserting ``during which'' 
     after ``time period''; and
       (iii) in the matter preceding subclause (I) of paragraph 
     (7)(B)(iv), by inserting ``education'' after ``higher'';
       (B) in subsection (e)(3)(B), by inserting ``during which'' 
     after ``time period'';
       (C) in subsection (f)--
       (i) in the matter preceding subparagraph (A) of paragraph 
     (1), by inserting ``of'' after ``foreign institution''; and
       (ii) in paragraphs (3), (4)(A), (5), and (8)(A), by 
     striking ``under this title'' each place it appears and 
     inserting ``under this title, other than a foreign 
     institution of higher education,'';
       (D) in subsection (g)(2), by striking ``subparagraph (G)'' 
     and inserting ``paragraph (1)(G)'';
       (E) in subsection (i)--
       (i) in paragraph (2), by striking ``eligible institution 
     participating in any program under this title'' and inserting 
     ``institution described in paragraph (1)'';
       (ii) in paragraph (3), in the matter preceding subparagraph 
     (A), by striking ``eligible institution participating in any 
     program under this title'' and inserting ``institution 
     described in paragraph (1)''; and
       (iii) in paragraph (5)(B), by striking ``the Family 
     Educational Rights and Privacy Act of 1974'' and inserting 
     ``commonly known as the `Family Educational Rights and 
     Privacy Act of 1974' '';
       (F) in subsection (k)(2), by inserting ``section'' before 
     ``484(r)(1)''; and
       (G) in the matter preceding clause (i) of subsection 
     (l)(1)(A), by striking ``subparagraph (B)'' and inserting 
     ``paragraph (2)'';
       (6) in section 485A (20 U.S.C. 1092a)--
       (A) in subsection (a)--
       (i) by striking ``or defined in subpart I of part C of 
     title VII of the Public Health Service Act'' and inserting 
     ``or an eligible lender as defined in section 719 of the 
     Public Health Service Act (42 U.S.C. 292o)''; and
       (ii) by striking ``under subpart I of part C of title VII 
     of the Public Health Service Act (known as Health Education 
     Assistance Loans)'' and inserting ``under part A of title

[[Page H4098]]

     VII of the Public Health Service Act (42 U.S.C. 292 et 
     seq.)'';
       (B) in subsection (b), by striking ``subpart I of part C of 
     title VII of the Public Health Service Act'' and inserting 
     ``part A of title VII of the Public Health Service Act (42 
     U.S.C. 292 et seq.)'';
       (C) in subsection (e)--
       (i) by striking ``Health Education Assistance Loan'' and 
     inserting ``loan under part A of title VII of the Public 
     Health Service Act (42 U.S.C. 292 et seq.)''; and
       (ii) in paragraph (2), by striking ``733(e)(3)'' and 
     inserting ``707(e)(3)''; and
       (D) in subsection (f)--
       (i) in paragraph (1)--

       (I) in the second sentence, by striking ``subpart I of part 
     C of title VII of the Public Health Service Act'' and 
     inserting ``part A of title VII of the Public Health Service 
     Act (42 U.S.C. 292 et seq.)''; and
       (II) in the fourth sentence, by striking ``728(a)'' and 
     inserting ``710''; and

       (ii) in paragraph (2), by striking ``subpart I of part C of 
     title VII of the Public Health Service Act'' and inserting 
     ``part A of title VII of the Public Health Service Act (42 
     U.S.C. 292 et seq.)'';
       (7) in section 485B (20 U.S.C. 1092b)--
       (A) in subsection (a)(5), by striking ``))'' and inserting 
     ``)''; and
       (B) in subsection (d)(3)(D), by striking ``the Family 
     Educational Rights and Privacy Act of 1974'' and inserting 
     ``commonly known as the `Family Educational Rights and 
     Privacy Act of 1974' '';
       (8) in section 487 (20 U.S.C. 1094)--
       (A) in subsection (a)(23)(A), by inserting ``of 1993'' 
     after ``Registration Act'';
       (B) in subsection (c)(1)--
       (i) in subparagraph (A)(i), by striking ``students 
     receives'' and inserting ``students receive'';
       (ii) in subparagraph (F), by striking ``paragraph (2)(B)'' 
     and inserting ``paragraph (3)(B)''; and
       (iii) in subparagraph (H), by striking ``paragraph (2)(B)'' 
     and inserting ``paragraph (3)(B)'';
       (C) in subsection (f)(1), by striking ``496(c)(4)'' and 
     inserting ``496(c)(6)''; and
       (D) in subsection (g)(1), by striking ``subsection (f)(2)'' 
     and inserting ``subsection (e)(2)'';
       (9) in section 489(a) (20 U.S.C. 1096(a))--
       (A) in the third sentence, by striking ``has agreed to 
     assign under section 463(a)(6)(B)'' and inserting ``has 
     referred under section 463(a)(4)(B)''; and
       (B) in the fourth sentence, by striking ``484(h)'' and 
     inserting ``484(g)'';
       (10) in section 491(l)(2)(A) (20 U.S.C. 1098(l)(2)(A)), by 
     inserting ``the'' after ``enactment of''; and
       (11) in section 492(a) (20 U.S.C. 1098a(a))--
       (A) in paragraph (1), by striking ``regulations'' and all 
     that follows through ``The'' and inserting ``regulations for 
     this title. The''; and
       (B) in paragraph (2), by striking ``Issues'' and all that 
     follows through ``provide'' and inserting ``Issues.--The 
     Secretary shall provide''.

     SEC. 408. PROGRAM INTEGRITY.

       Part H of title IV (20 U.S.C. 1099a et seq.) is amended--
       (1) in section 496(a)(6)(G) (20 U.S.C. 1099b(a)(6)(G)), by 
     striking the period at the end and inserting a semicolon; and
       (2) in section 498(c)(2) (20 U.S.C. 1099c(c)(2)), by 
     striking ``for profit'' and inserting ``for-profit''.

     SEC. 409. PLUS LOAN AUCTION EXTENSION.

       (a) Extension.--Section 499 (20 U.S.C. 1099d) is amended by 
     striking ``2009'' each place it appears and inserting 
     ``2010''.
       (b) Technical Amendment.--Section 499(b)(1) (20 U.S.C. 
     1099d(b)(1)) is amended by striking ``Communication'' and 
     inserting ``Communications''.
       (c) Timing of Reports.--Section 499(d)(1) (20 U.S.C. 
     1099d(d)(1)) is amended--
       (1) in subparagraph (A), by striking ``2010'' and inserting 
     ``2011'';
       (2) in subparagraph (B), by striking ``2012'' and inserting 
     ``2013''; and
       (3) in subparagraph (C), by striking ``2013'' and inserting 
     ``2014''.

                    TITLE V--DEVELOPING INSTITUTIONS

     SEC. 501. DEVELOPING INSTITUTIONS.

       Section 502(b)(2) (20 U.S.C. 1101a(b)(2)) is amended by 
     striking ``which determination'' and inserting ``which the 
     determination''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

     SEC. 601. INTERNATIONAL EDUCATION PROGRAMS.

       (a) Higher Education Act of 1965.--Title VI (20 U.S.C. 1121 
     et seq.) is amended--
       (1) in section 604(a) (20 U.S.C. 1124(a))--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (2), by inserting ``the'' before ``Federal''; and
       (B) in paragraph (7)(D), by striking ``institution, 
     combination'' and inserting ``applicant, consortium,''; and
       (2) in section 622(a) (20 U.S.C. 1131-1(a)), by inserting a 
     period after ``title''.
       (b) Higher Education Opportunity Act.--The matter preceding 
     paragraph (1) of section 621 of the Higher Education 
     Opportunity Act (Public Law 110-315) is amended by striking 
     ``Section 631 (20 U.S.C. 1132)'' and inserting ``Section 
     631(a) (20 U.S.C. 1132(a))''.

           TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT

     SEC. 701. GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS.

       Title VII (20 U.S.C. 1133 et seq.) is amended--
       (1) in the matter preceding paragraph (1) of section 721(d) 
     (20 U.S.C. 1136(d)), by striking ``services through'' and all 
     that follows through ``resource centers'' and inserting 
     ``services through pre-college programs, undergraduate prelaw 
     information resource centers'';
       (2) in section 723(b)(1)(P) (20 U.S.C. 1136a(b)(1)(P)), by 
     striking ``Sate'' and inserting ``State'';
       (3) in section 744(c)(6)(C) (20 U.S.C. 1138c(c)(6)(C)), by 
     inserting ``of the National Academies'' after ``Institute of 
     Medicine'';
       (4) in section 760(1)(D) (20 U.S.C. 1140(1)(D)), by 
     inserting ``with nondisabled students'' after ``disabilities 
     to participate'';
       (5) in section 772 (20 U.S.C. 1140l)--
       (A) in subsection (a)(2)(A), by striking ``with in'' and 
     inserting ``with''; and
       (B) in the matter preceding subclause (I) of subsection 
     (b)(1)(C)(ii), by striking ``subparagraph (C)'' and inserting 
     ``clause (i)'';
       (6) in section 781 (20 U.S.C. 1141)--
       (A) in subsection (c)(1), by striking ``Service'' each 
     place the term appears and inserting ``Services'';
       (B) in the matter preceding paragraph (1) of subsection 
     (e)--
       (i) by striking ``(as defined'' and all that follows 
     through ``this Act)'' and inserting ``(as described in 
     section 435(p))''; and
       (ii) by striking ``435(j)'' and inserting ``428(b)'';
       (C) in subsection (g)(2), by striking ``Service'' and 
     inserting ``Services''; and
       (D) in subsection (i)--
       (i) in paragraph (1)(D), by striking ``consortia'' and 
     inserting ``consortium''; and
       (ii) in paragraph (2)--

       (I) in the paragraph heading, by striking ``consortia'' and 
     inserting ``consortium''; and
       (II) by striking ``consortia'' each place the term appears 
     and inserting ``consortium''.

                    TITLE VIII--ADDITIONAL PROGRAMS

     SEC. 801. ADDITIONAL PROGRAMS.

       Title VIII (20 U.S.C. 1161a et seq.) is amended--
       (1) in section 802(d)(2)(D) (20 U.S.C. 1161b(d)(2)(D)), by 
     striking ``regulation'' and inserting ``regulations'';
       (2) in section 804(d) (20 U.S.C. 1161d(d)(2))--
       (A) in the heading, by striking ``Definition'' and 
     inserting ``Definitions''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Public health service act.--The terms `accredited' 
     and `school of nursing' have the meanings given those terms 
     in section 801 of the Public Health Service Act (42 U.S.C. 
     296).'';
       (3) in section 808(a)(1) (20 U.S.C. 1161h(a)(1)), by 
     striking ``the Family Education Rights and Privacy Act of 
     1974'' and inserting ``section 444 of the General Education 
     Provisions Act (commonly known as the `Family Educational 
     Rights and Privacy Act of 1974')'';
       (4) in section 819(b)(3) (20 U.S.C. 1161j(b)(3)), by 
     inserting a period after ``101(a)'';
       (5) in section 820 (20 U.S.C. 1161k)--
       (A) in subsection (d)(5), by inserting ``the'' before 
     ``grant'';
       (B) in subsection (f)(2), by striking ``subpart'' each 
     place the term appears and inserting ``section''; and
       (C) in subsection (h), by striking ``use'' and inserting 
     ``used'';
       (6) in section 821 (20 U.S.C. 1161l)--
       (A) in subsection (a)(1), by striking ``subsection (g)'' 
     and inserting ``subsection (f)''; and
       (B) in subsection (c)(1)(B), by striking ``within'' and 
     inserting ``in'';
       (7) in section 824(f)(3) (20 U.S.C. 1161l-3(f)(3))--
       (A) in subparagraph (A), by inserting ``a'' after 
     ``submitting''; and
       (B) in subparagraph (C), by striking ``pursing'' and 
     inserting ``pursuing'';
       (8) in section 825(a) (20 U.S.C. 1161l-4(a)), by striking 
     ``the Family Educational Rights and Privacy Act of 1974'' and 
     inserting ``commonly known as the `Family Educational Rights 
     and Privacy Act of 1974' '';
       (9) in section 826(3) (20 U.S.C. 1161l-5(3)), by striking 
     ``the Family Educational Rights and Privacy Act of 1974'' and 
     inserting ``commonly known as the `Family Educational Rights 
     and Privacy Act of 1974' '';
       (10) in section 830(a)(1)(B) (20 U.S.C. 1161m(a)(1)(B)), by 
     striking ``of for'' and inserting ``of'';
       (11) in section 833(e)(1) (20 U.S.C. 1161n-2(e)(1))--
       (A) in the matter preceding subparagraph (A), by striking 
     ``because of'' and inserting ``based on''; and
       (B) in subparagraph (D), by striking ``section'' and 
     inserting ``part'';
       (12) in section 841(c)(1) (20 U.S.C. 1161o(c)(1)), by 
     striking ``486A(d)'' and inserting ``486A(b)(1)'';
       (13) in section 851(j) (20 U.S.C. 1161p(j)), by inserting 
     ``to be appropriated'' after ``authorized''; and
       (14) in section 894(b)(2) (20 U.S.C. 1161y(b)(2)), by 
     striking ``the Family Educational Rights and Privacy Act of 
     1974'' and inserting ``commonly known as the `Family 
     Educational Rights and Privacy Act of 1974' ''.

     SEC. 802. AMENDMENTS TO OTHER HIGHER EDUCATION ACTS.

       (a) Higher Education Amendments of 1998.--Section 841(c) of 
     the Higher Education Amendments of 1998 (20 U.S.C. 1153(c)) 
     is amended by inserting ``this section'' after ``to carry 
     out''.
       (b) Education of the Deaf Act of 1986.--Section 203(b)(2) 
     of the Education of the Deaf

[[Page H4099]]

     Act of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking 
     ``and subsections (b) and (c) of section 209.'' and inserting 
     ``and subsections (a), (b), and (c) of section 209.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Hinojosa) and the gentleman from Kentucky (Mr. Guthrie) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Texas (Mr. Hinojosa).


                             General Leave

  Mr. HINOJOSA. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days during which Members may revise and extend 
and insert extraneous material on H.R. 1777 into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. HINOJOSA. Mr. Speaker, I yield myself as much time as I may 
consume.
  I rise today in support of H.R. 1777, a bill to make technical 
corrections to the Higher Education Act.
  Last year we enacted the first reauthorization of the Higher 
Education Act in 10 years. As the administration has moved swiftly to 
implement the new law, embarking on a new round of negotiated 
rulemaking, we have identified areas of the law needing technical 
corrections or clarifications that require our action today.
  While many of the provisions of this bill make minor corrections, 
there are several amendments included in H.R. 1777 that are of 
particular importance because of the profound impact that they will 
have on students and families.

                              {time}  1630

  I would like to highlight three areas that deserve special attention, 
Mr. Speaker.
  First, H.R. 1777 will head off a looming logjam in the PLUS Loan 
Program for parents. The College Cost Reduction and Access Act included 
a program to pilot using an auction mechanism for setting the rate of 
return for lenders in the PLUS Loan Program for parents. The auction is 
scheduled to go into effect this year. Given our fiscal climate, there 
is concern that there will not be enough bidders to hold the auction. 
This means that families accepting parent loans in their financial aid 
packages cannot complete the applications until the lenders are 
identified through the auction process. H.R. 1777 will delay the 
auction for another year, thereby ensuring that parents face no delay 
in the application process for PLUS Loans due to the uncertainty 
surrounding bids.
  H.R. 1777 also makes two important changes to ensure that veterans 
get the full amount of educational assistance that Congress intended. 
This legislation clarifies that GI Bill benefits are to be exempted for 
consideration in calculating eligibility for student financial aid. 
Additionally, it ensures that this exemption is in place for the 
upcoming academic year.
  Finally, H.R. 1777 will ensure that the Federal Government keeps its 
promise to borrowers who seek to rehabilitate their student loans. In 
the Higher Education Act, Congress provided an avenue for borrowers who 
have defaulted on their student loans to restore their credit and to 
rehabilitate their defaulted loans.
  After nine on-time payments, a borrower in default may rehabilitate 
the loan and may clean up his credit rating. This policy is a win-win. 
It helps borrowers establish regular payment histories, and it restores 
their credit while helping the Federal Government collect unpaid 
student loans.
  Guaranty agencies, such as the Texas Guaranty Student Loan 
Corporation in my own home State of Texas, have been working diligently 
with defaulted borrowers to help them restore their credit and to 
return their loans to good standing. Unfortunately, the last step in 
the rehabilitation process occurs when the guaranty agency sells the 
rehabilitated loan to a lender. Because of our financial crisis, there 
are no buyers for these loans. This means that, despite doing 
everything that was required of them, borrowers cannot get the benefit 
of rehabilitating their loans.
  This legislation will fix that problem by allowing guaranty agencies 
to assign or to sell loans that meet the rehabilitation requirements to 
the Department of Education. This bill also ensures that the record of 
default is removed from the borrower's credit rating.
  According to the Department of Education, without this change this 
year, approximately 160,000 borrowers will be denied the rehabilitation 
benefits that they have earned. Last month alone, Texas estimates that 
over 4,500 borrowers met the rehabilitation requirements but could not 
complete the process because of the lack of a lender. Today, 19 of the 
35 guaranty agencies report having no lender willing or able to buy 
rehabilitation loans. These include our largest agencies that serve 
Texas, that serve California, New York, Florida, Illinois, and many 
other States.
  We made a commitment to these borrowers, telling them that, if they 
stepped up and made the on-time payments, the Federal Government would 
help them restore their credit. We must keep that commitment by passing 
H.R. 1777.
  In closing, Mr. Speaker, I would like to thank our committee 
chairman, Representative George Miller, and our good friend and 
colleague, Ranking Member Buck McKeon, along with our ranking member on 
the subcommittee, my friend and colleague, Representative Brett Guthrie 
of Kentucky, for expediting this legislation and for helping us make 
these needed corrections in a bipartisan manner. I urge all of my 
colleagues to vote ``yes'' on H.R. 1777.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GUTHRIE. Mr. Speaker, I rise in support of this legislation, and 
I yield to the gentleman from California as much time as he may 
consume.
  Mr. McKEON. Mr. Speaker, I rise in support of this legislation, and I 
thank Ranking Member Guthrie for yielding the time.
  Last August, President Bush signed into law the first comprehensive 
renewal in a decade of the Federal higher education programs. That 
legislation was a product of years of effort by both Republicans and 
Democrats. It was and is a good product, but as the implementation of 
the law has gone forward, it has become clear that minor technical 
changes are needed to ensure a smooth transition process. We are making 
those changes today. As we address these minor changes, we also need to 
act quickly to correct two major challenges in the Federal student loan 
programs.
  The first challenge is a byproduct of the global credit crisis. 
Student loan borrowers, like many Americans in this struggling economy, 
can sometimes fall behind on their bills. Before they fall behind, the 
Higher Education Act helps borrowers through loan deferments, 
forbearances and income-contingent or income-based repayment. For those 
borrowers who have defaulted, it provides a process for loan 
rehabilitation. Student loan borrowers who have defaulted can rebuild 
their credit and can get their loans back in good standing by making 
nine on-time payments. At the end of the process, the loan is sold to a 
lender, and a borrower's credit is wiped clean. Unfortunately, the 
global credit crunch has prevented many student loan lenders from being 
able to repurchase these rehabilitated loans, and when these loans are 
not purchased, the borrower's credit is not restored.
  With this legislation, we are incorporating rehabilitated loans into 
the emergency student loan liquidity measures enacted last year. It is 
a simple fix that will get credit flowing and that will help borrowers 
who are doing their best to get their credit back in good standing and 
make good on the loans they owe. These borrowers have done the right 
thing by getting themselves back on track. They should not be denied an 
opportunity to clean up their credit simply because of the current 
economic situation.
  The second change we are making is just as urgent, and truth be told, 
it is one that could have been avoided. I am speaking not of a 
byproduct of a short-circuited credit market but, rather, of the 
inevitable product of shortsighted policy. Two-and-half years ago, the 
majority wrung billions from the Federal student loan program in order 
to make good on a campaign promise of higher Pell Grant funding and of 
lower student loan interest rates. These were laudable goals, to be 
sure, but those of us who have been here for a long time

[[Page H4100]]

know that a good sound bite does not always make for good policy. Such 
is the case here.
  In order to pay for these particular campaign promises, at least 
temporarily, for parents of college students, the majority replaced a 
functioning lending system with an untested, highly controversial 
auction scheme. At the time, we warned that an auction would undercut 
loan accessibility for parents. We warned that the U.S. Department of 
Education was ill-equipped to implement such a complex and convoluted 
system. We warned that lenders were unlikely to participate in such a 
system and that, if they did, only a few were likely to bid, giving 
them near-monopoly control of the market. I wish it were not the case, 
but unfortunately, our worst predictions are coming true.
  Several large lenders are choosing not to participate in this 
troubled initiative. The National Association of Student Financial Aid 
Administrators has weighed in with serious concerns. Financial aid 
administrators will soon be assembling financial aid packages for the 
coming academic year, and NASFAA warns that current economic conditions 
could cause the pilot program to harm parent borrowers.
  If the Department were to move forward, the few willing participants 
would be a virtual monopoly, and with so few participants, they may not 
be able to handle all of the loan volume necessary to ensure that all 
parents who are eligible for loans actually receive them. We cannot 
allow this to happen, so we are postponing the auction for 1 year in 
order to ensure that parents will not fall victim to the shortsighted 
policy that was enacted just 2\1/2\ years ago.
  I support this legislation because the changes are necessary, but I 
hope this will serve as a lesson in going forward. Undercutting a 
successful, longstanding student loan program in order to achieve 
political goals was not a good idea in 2006, and it is not a good idea 
today.
  Mr. HINOJOSA. Mr. Speaker, I would like to ask the gentleman from 
Kentucky if he has any further speakers.
  Mr. GUTHRIE. Mr. Speaker, I do not have any further speakers.
  Mr. HINOJOSA. In that case, Mr. Speaker, I yield back the balance of 
my time.
  Mr. GUTHRIE. Mr. Speaker, I yield myself the balance of my time.
  I support this legislation, and I urge my colleagues to do the same. 
We have worked with the majority to address pressing matters that 
impact students and families. This bill will ensure the smooth 
implementation of the bipartisan higher education reforms enacted last 
year. It will help student loan borrowers who have fallen behind to 
rebuild their damaged credit, and it will postpone a student loan 
auction that, whether or not it was a good idea 2\1/2\ years ago, 
simply does not make sense in the current economic climate.
  I thank the majority for working with us. I have particularly enjoyed 
working with my colleague, Mr. Hinojosa from Texas, and I appreciate 
him for working on these important matters and timely changes. I urge 
my colleagues to join me in voting ``yes.''
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Hinojosa) that the House suspend the rules 
and pass the bill, H.R. 1777.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________