[Congressional Record Volume 161, Number 109 (Tuesday, July 14, 2015)]
[Senate]
[Pages S5078-S5080]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2243. Mr. COONS (for himself and Mr. Rubio) submitted an amendment
intended to be proposed to amendment SA 2089 submitted by Mr. Alexander
(for himself and Mrs. Murray) to the bill S. 1177, to reauthorize the
Elementary and Secondary Education Act of 1965 to ensure that every
child achieves; which was ordered to lie on the table; as follows:
At the end of the bill, add the following:
PART C--AMERICAN DREAM ACCOUNTS
SEC. 10301. SHORT TITLE.
This part may be cited as the ``American Dream Accounts
Act''.
SEC. 10302. DEFINITIONS.
In this part:
(1) American dream account.--The term ``American Dream
Account'' means a personal online account for low-income
students that monitors higher education readiness and
includes a college savings account.
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means the Committee on
Health, Education, Labor, and Pensions, the Committee on
Appropriations, and the Committee on Finance of the Senate,
and the Committee on Education and the Workforce, the
Committee on Appropriations, and the Committee on Ways and
Means of the House of Representatives, as well as any other
Committee of the Senate or House of Representatives that the
Secretary determines appropriate.
(3) Charter school.--The term ``charter school'' has the
meaning given such term in section 5110 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7221i).
(4) College savings account.--The term ``college savings
account'' means a trust created or organized exclusively for
the purpose of paying the qualified expenses of only an
individual who, when the trust is created or organized, has
not obtained 18 years of age, if the written governing
instrument creating the trust contains the following
requirements:
(A) The trustee is a Federally insured financial
institution, or a State insured financial institution if a
Federally insured financial institution is not available.
(B) The assets of the trust will be invested in accordance
with the direction of the individual or of a parent or
guardian of the individual, after consultation with the
entity providing the initial contribution to the trust or, if
applicable, a matching or other contribution for the
individual.
(C) The assets of the trust will not be commingled with
other property except in a common trust fund or common
investment fund.
(D) Any amount in the trust that is attributable to an
account seed or matched deposit may be paid or distributed
from the trust only for the purpose of paying qualified
expenses of the individual.
(5) Dual or concurrent enrollment program.--The term ``dual
or concurrent enrollment program'' means a program of study--
(A) provided by an institution of higher education through
which a student who has not graduated from high school with a
regular high school diploma (as defined in section
200.19(b)(1)(iv) of title 34, Code of Federal Regulations, as
such section was in effect on November 28, 2008) is able to
earn postsecondary credit; and
(B) that shall consist of not less than 2 postsecondary
credit-bearing courses and support and academic services that
help a student persist and complete such courses.
(6) Early college high school program.--The term ``early
college high school program'' means a formal partnership
between at least 1 local educational agency and at least 1
institution of higher education that allows participants, who
are primarily low-income students, to simultaneously complete
requirements toward earning a regular high school diploma (as
defined in section 200.19(b)(1)(iv) of title 34, Code of
Federal Regulations, as such section was in effect on
November 28, 2008) and earn not less than 12 transferable
credits as part of an organized course of study toward a
postsecondary degree or credential.
(7) Eligible entity.--The term ``eligible entity'' means--
(A) a State educational agency;
(B) a local educational agency, including a charter school
that operates as its own local educational agency;
(C) a charter management organization or charter school
authorizer;
(D) an institution of higher education or a Tribal College
or University;
(E) a nonprofit organization;
(F) an entity with demonstrated experience in educational
savings or in assisting low-income students to prepare for,
and attend, an institution of higher education;
(G) a consortium of 2 or more of the entities described in
subparagraphs (A) through (F); or
(H) a consortium of 1 or more of the entities described in
subparagraphs (A) through (F) and a public school, a charter
school, a school operated by the Bureau of Indian Affairs, or
a tribally controlled school.
(8) Institution of higher education.--The term
``institution of higher education'' has the meaning given
such term in section 101(a) of the Higher Education Act of
1965 (20 U.S.C. 1001(a)).
(9) Local educational agency.--The term ``local educational
agency'' has the meaning given such term in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(10) Low-income student.--The term ``low-income student''
means a student who is eligible to receive a free or reduced
price lunch under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.).
(11) Parent.--The term ``parent'' has the meaning given
such term in section 9101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801).
(12) Qualified expenses.--The term ``qualified expenses''
means, with respect to an individual, expenses that--
(A) are incurred after the individual receives a secondary
school diploma or its recognized equivalent; and
(B) are associated with attending an institution of higher
education, including--
(i) tuition and fees;
(ii) room and board;
(iii) textbooks;
(iv) supplies and equipment; and
(v) Internet access.
(13) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(14) State educational agency.--The term ``State
educational agency'' has the meaning given such term in
section 9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
(15) Tribal college or university.--The term ``Tribal
College or University'' has the meaning given such term in
section 316(b) of the Higher Education Act of 1965 (20 U.S.C.
1059c(b)).
(16) Tribally controlled school.--The term ``tribally
controlled school'' has the meaning given such term in
section 5212 of the Tribally Controlled Schools Act of 1988
(25 U.S.C. 2511).
SEC. 10303. GRANT PROGRAM.
(a) Program Authorized.--The Secretary shall establish a
pilot program and award 10 grants to eligible entities to
enable such eligible entities to establish and administer
American Dream Accounts for a group of low-income students.
(b) Reservation.--From the amounts appropriated each fiscal
year to carry out this part, the Secretary shall reserve not
more than 5 percent of such amount to carry out the
evaluation activities described in section 10306.
(c) Duration.--A grant awarded under this part shall be for
a period of not more than 3 years. The Secretary may extend
such grant for an additional 2-year period if the Secretary
determines that the eligible entity has demonstrated
significant progress, based on the factors described in
section 10304(b)(11).
SEC. 10304. APPLICATIONS; PRIORITY.
(a) In General.--Each eligible entity desiring a grant
under this part shall submit an application to the Secretary
at such time, in such manner, and containing such information
as the Secretary may require.
(b) Contents.--At a minimum, the application described in
subsection (a) shall include the following:
(1) A description of the characteristics of a group of not
less than 30 low-income public school students who--
(A) are, at the time of the application, attending a grade
not higher than grade 9; and
(B) will, under the grant, receive an American Dream
Account.
(2) A description of how the eligible entity will engage,
and provide support (such as tutoring and mentoring for
students, and training for teachers and other stakeholders)
either online or in person, to--
(A) the students in the group described in paragraph (1);
(B) the family members and teachers of such students; and
(C) other stakeholders such as school administrators and
school counselors.
(3) An identification of partners who will assist the
eligible entity in establishing and sustaining American Dream
Accounts.
(4) A description of what experience the eligible entity or
the partners of the eligible entity have in managing college
savings accounts, preparing low-income students for
[[Page S5079]]
postsecondary education, managing online systems, and
teaching financial literacy.
(5) A demonstration that the eligible entity has sufficient
resources to provide an initial deposit into the college
savings account portion of each American Dream Account.
(6) A description of how the eligible entity will help
increase the value of the college savings account portion of
each American Dream Account, such as by providing matching
funds or incentives for academic achievement.
(7) A description of how the eligible entity will notify
each participating student in the group described in
paragraph (1), on a semiannual basis, of the current balance
and status of the college savings account portion of the
American Dream Account of the student.
(8) A plan that describes how the eligible entity will
monitor participating students in the group described in
paragraph (1) to ensure that the American Dream Account of
each student will be maintained if a student in such group
changes schools before graduating from secondary school.
(9) A plan that describes how the American Dream Accounts
will be managed for not less than 1 year after a majority of
the students in the group described in paragraph (1) graduate
from secondary school.
(10) A description of how the eligible entity will
encourage students in the group described in paragraph (1)
who fail to graduate from secondary school to continue their
education.
(11) A description of how the eligible entity will evaluate
the grant program, including by collecting, as applicable,
the following data about the students in the group described
in paragraph (1) during the grant period, or until the time
of graduation from a secondary school, whichever comes first,
and, if sufficient grant funds are available, after the grant
period:
(A) Attendance rates.
(B) Progress reports.
(C) Grades and course selections.
(D) The student graduation rate, as defined as the
percentage of students who graduate from secondary school
with a regular diploma in the standard number of years.
(E) Rates of student completion of the Free Application for
Federal Student Aid described in section 483 of the Higher
Education Act of 1965 (20 U.S.C. 1090).
(F) Rates of enrollment in an institution of higher
education.
(G) Rates of completion at an institution of higher
education.
(12) A description of what will happen to the funds in the
college savings account portion of the American Dream
Accounts that are dedicated to participating students
described in paragraph (1) who have not matriculated at an
institution of higher education at the time of the conclusion
of the period of American Dream Account management described
in paragraph (9), including how the eligible entity will give
students this information.
(13) A description of how the eligible entity will ensure
that participating students described in paragraph (1) will
have access to the Internet.
(14) A description of how the eligible entity will take
into consideration how funds in the college savings account
portion of American Dream Accounts will affect participating
families' eligibility for public assistance.
(c) Priority.--In awarding grants under this part, the
Secretary shall give priority to applications from eligible
entities that--
(1) are described in subparagraph (G) or (H) of section
10302(7);
(2) serve the largest number of low-income students;
(3) in the case of an eligible entity described in
subparagraph (A) or (B) of section 10302(7), provide
opportunities for participating students described in
subsection (b)(1) to participate in a dual or concurrent
enrollment program or early college high school program at no
cost to the student or the student's family; or
(4) as of the time of application, have been awarded a
grant under chapter 2 of subpart 2 of part A of title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070a-21 et seq.)
(commonly referred to as the ``GEAR UP program'').
SEC. 10305. AUTHORIZED ACTIVITIES.
(a) In General.--An eligible entity that receives a grant
under this part shall use such grant funds to establish an
American Dream Account for each participating student
described in section 10304(b)(1), that will be used to--
(1) open a college savings account for such student;
(2) monitor the progress of such student online, which--
(A) shall include monitoring student data relating to--
(i) grades and course selections;
(ii) progress reports; and
(iii) attendance and disciplinary records; and
(B) may also include monitoring student data relating to a
broad range of information, provided by teachers and family
members, related to postsecondary education readiness,
access, and completion;
(3) provide opportunities for such students, either online
or in person, to learn about financial literacy, including
by--
(A) assisting such students in financial planning for
enrollment in an institution of higher education;
(B) assisting such students in identifying and applying for
financial aid (such as loans, grants, and scholarships) for
an institution of higher education; and
(C) enhancing student understanding of consumer, economic,
and personal finance concepts;
(4) provide opportunities for such students, either online
or in person, to learn about preparing for enrollment in an
institution of higher education, including by providing
instruction to students about--
(A) choosing the appropriate courses to prepare for
postsecondary education;
(B) applying to an institution of higher education;
(C) building a student portfolio, which may be used when
applying to an institution of higher education;
(D) selecting an institution of higher education;
(E) choosing a major for the student's postsecondary
program of education or a career path; and
(F) adapting to life at an institution of higher education;
and
(5) provide opportunities for such students, either online
or in person, to identify skills or interests, including
career interests.
(b) Access to American Dream Account.--
(1) In general.--Subject to paragraphs (3) and (4), and in
accordance with applicable Federal laws and regulations
relating to privacy of information and the privacy of
children, an eligible entity that receives a grant under this
part shall allow vested stakeholders, as described in
paragraph (2), to have secure access, through an Internet
website, to an American Dream Account.
(2) Vested stakeholders.--The vested stakeholders that an
eligible entity shall permit to access an American Dream
Account are individuals (such as the student's teachers,
school counselors, school administrators, or other
individuals) that are designated, in accordance with section
444 of the General Education Provisions Act (20 U.S.C. 1232g,
commonly known as the ``Family Educational Rights and Privacy
Act of 1974''), by the parent of a participating student in
whose name such American Dream Account is held, as having
permission to access the account. A student's parent may
withdraw such designation from an individual at any time.
(3) Exception for college savings account.--An eligible
entity that receives a grant under this part shall not be
required to give vested stakeholders, as described in
paragraph (2), access to the college savings account portion
of a student's American Dream Account.
(4) Adult students.--Notwithstanding paragraphs (1), (2),
and (3), if a participating student is age 18 or older, an
eligible entity that receives a grant under this part shall
not provide access to such participating student's American
Dream Account without the student's consent, in accordance
with section 444 of the General Education Provisions Act (20
U.S.C. 1232g, commonly known as the ``Family Educational
Rights and Privacy Act of 1974'').
(5) Input of student information.--Student data collected
pursuant to subsection (a)(2)(A) shall be entered into an
American Dream Account only by a school administrator or the
designee of such administrator.
(c) Prohibition on Use of Student Information.--An eligible
entity that receives a grant under this part shall not use
any student-level information or data for the purpose of
soliciting, advertising, or marketing any financial or non-
financial consumer product or service that is offered by such
eligible entity, or on behalf of any other person.
(d) Prohibition on the Use of Grant Funds.--An eligible
entity shall not use grant funds provided under this part to
provide any deposits into a college savings account portion
of a student's American Dream Account.
SEC. 10306. REPORTS AND EVALUATIONS.
(a) In General.--Not later than 1 year after the Secretary
has disbursed grants under this part, and annually thereafter
until each grant disbursed under this part has ended, the
Secretary shall prepare and submit a report to the
appropriate committees of Congress, which shall include an
evaluation of the effectiveness of the grant program
established under this part.
(b) Contents.--The report described in subsection (a)
shall--
(1) list the grants that have been awarded under section
10303(a);
(2) include the number of students who have an American
Dream Account established through a grant awarded under
section 10303(a);
(3) provide data (including the interest accrued on college
savings accounts that are part of an American Dream Account)
in the aggregate, regarding students who have an American
Dream Account established through a grant awarded under
section 10303(a), as compared to similarly situated students
who do not have an American Dream Account;
(4) identify best practices developed by the eligible
entities receiving grants under this part;
(5) identify any issues related to student privacy and
stakeholder accessibility to American Dream Accounts;
(6) provide feedback from participating students and the
parents of such students about the grant program, including--
(A) the impact of the program;
(B) aspects of the program that are successful;
(C) aspects of the program that are not successful; and
[[Page S5080]]
(D) any other data required by the Secretary; and
(7) provide recommendations for expanding the American
Dream Accounts program.
SEC. 10307. ELIGIBILITY TO RECEIVE FEDERAL STUDENT FINANCIAL
AID.
Notwithstanding any other provision of law, any funds that
are in the college savings account portion of a student's
American Dream Account shall not affect such student's
eligibility to receive Federal student financial aid,
including any Federal student financial aid under the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.), and shall not
be considered in determining the amount of any such Federal
student aid.
SEC. 10308. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part such sums as may be necessary for fiscal year 2016 and
each of the 4 succeeding fiscal years.
______